Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q1 2023 Earnings Presentation
19 slides from Fulton Financial's earnings presentation, Apr 19, 2023
Slide 1: First Quarter 2023 Results
FIRST QUARTER 2023 RESULTS NASDAQ: FULT Data as of or for the period ended March 31, 2023 unless otherwise noted
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "m
Slide 3: Income Statement Summary
INCOME STATEMENT SUMMARY 1Q23 4Q22 1Q22 (dollars in thousands, except per-share data) Net interest income $215,587 $225,911 $161,310 Provision for credit losses 24,544 14,513 (6,950) Non-interest income 51,730 54,322 55,237 Securities gains (losses) 23 (1) 19 Non-interest expense 159,616 166,568 145
Slide 4: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Net Interest Income & Net Interest Margin Average Interest-Earning Assets & Yields (DOLLARS IN MILLIONS) (DOLLARS IN BILLIONS) 4.50% $5 $5 8.00% $5 $5 $20 $6 $250 $20 $20 $20 6.00% $18 $19 4.73% $15 4.36% 4.25% 3.83% $226 2.98% 3.24% 4.00% $225 $10 $216 $216 $5 2.00% 4
Slide 5: Asset Quality
ASSET QUALITY (DOLLARS IN MILLIONS) Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans $25 $25 $200 0.98% $19 0.87% 0.92% $20 0.85% 0.80% 1.00% $15 $193 $15 $175 $174 $172 $10 $165 $150 $161 0.50% $5 $2 $125 $— $100 0.00% $(5) 1Q22 2Q22 3Q22 4Q22 1Q23 $(10) $(7) (2) 1Q22 2Q22 3Q
Slide 6: Loan Mix Is Diversified and Granular with Office Loans Representing 3.4% of Total Loans
LOAN MIX IS DIVERSIFIED AND GRANULAR WITH OFFICE LOANS REPRESENTING 3.4% OF TOTAL LOANS 6
Slide 7: The Office Portfolio Is Granular, Diversified, and Tenured
THE OFFICE PORTFOLIO IS GRANULAR, DIVERSIFIED, AND TENURED 7
Slide 8: Non-Interest Income
NON-INTEREST INCOME(1) Three months ended March 31, 2023 (percent of total non-interest income) 1Q23 4Q22 Change (dollars in thousands) n Wealth Management $18,062 $17,531 $531 6% n Commercial Banking 17,513 18,604 (1,091) n Consumer Banking 11,217 12,075 (858) n Mortgage Banking 1,970 2,140 (170) 3
Slide 9: Non-Interest Expense
(1) NON-INTEREST EXPENSE Three months ended March 31, 2023 1Q23 4Q22 Change (percent of total non-interest expense) (dollars in thousands) n Salaries and Benefits $89,283 $92,733 ($3,450) n Data Processing and Software 15,796 15,448 348 19% n Occupancy 14,438 14,061 377 n Other Outside Services 10,1
Slide 10: Capital Position Remains Strong
(1) CAPITAL POSITION REMAINS STRONG (as of March 31, 2023) (dollars in millions) 17.5% 15.0% 13.5% 12.5% $675 10.7% 9.8% 10.0% 9.3% $498 $647 $1,120 7.5% 5.0% 2.5% —% Tier 1 Leverage CE Tier 1 Tier 1 Risk-Based Total Risk-Based Regulatory Minimums Excess(2) (1) Regulatory capital ratios and excess c
Slide 11: Capital Ratios Adjusted for Unrealized Losses on Investment Securities
CAPITAL RATIOS ADJUSTED FOR UNREALIZED LOSSES ON INVESTMENT SECURITIES - RATIOS REMAIN STRONG(1) (as of March 31, 2023) (dollars in millions) 12.5% | | 10.0% | 8.1% 8.2% | 7.5% $782 $271 | | 6.7% | 5.0% | | | 2.5% | | —% | Tier 1 Leverage(3) CE Tier 1(3) TCE(4) (2) n Regulatory Minimums n Excess (1)
Slide 12: A Committed and Healthy Liquidity Profile with Significant Coverage
A COMMITTED AND HEALTHY LIQUIDITY PROFILE WITH SIGNIFICANT COVERAGE 12
Slide 13: A Granular, Tenured and Diversified Deposit Portfolio
A GRANULAR, TENURED AND DIVERSIFIED DEPOSIT PORTFOLIO 13
Slide 14: 2023 Outlook
2023 OUTLOOK Net interest income: $850 - $870 million(1) Non-interest income: $220 - $230 million(2) Provision for credit losses: $55 - $70 million Non-interest expense: $645 - $660 million(3) Effective tax rate: 18.5% +/-(4) (1) Assumes Fed Funds Rate increase of 25 bps in May 2023. Updated as of 1
Slide 15: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-GAAP
Slide 16: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Three months ended (dollars in thousands) Mar 31 Dec 31 Mar 31 2023 2022 2022 Operating return on average assets Net income $68,314 $81,833 $64,288 Plus: Core deposit intangible amortization 514 514 — Plus: Merger-related expenses — 1,894 401 Less: Tax impact of adjustments (
Slide 17: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Three months ended (dollars in thousands) Mar 31 Dec 31 Mar 31 2023 2022 2022 Return on average common shareholders' equity (tangible) Net income available to common shareholders $65,752 $79,271 $61,726 Plus: Intangible amortization 674 688 176 Plus: Merger-related expenses —
Slide 18: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION (dollars in thousands) Three months ended Mar 31 Dec 31 Mar 31 Efficiency ratio 2023 2022 2022 Non-interest expense $159,616 $168,462 $145,978 Less: Amortization of tax credit investments — (696) (696) Less: Merger-related expenses — (1,894) (401) Less: Intangible amortizatio
Slide 19: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Three months ended (dollars in thousands) Mar 31 2023 Adjusted tangible common equity to tangible assets (TCE Ratio) Shareholders' equity $ 2,618,998 Less: Preferred stock (192,878) Less: Goodwill and intangible assets (563,502) Less: Unrealized gain/(loss) - HTM (121,513) Le