Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q2 2018 Earnings Presentation
13 slides from Fulton Financial's earnings presentation, Jul 17, 2018
Slide 1: 2018 Second Quarter Results
2018 SECOND QUARTER RESULTS NASDAQ: FULT D A T A A S O F J U N E 3 0 , 2 0 1 8 U N L E S S O T H E R W I S E N O T E D
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: Second Quarter Results
SECOND QUARTER RESULTS Net income per diluted share: $0.20 in 2Q18, 28.6% decrease from 1Q18 and 23.1% decrease from 2Q17. Pre-Provision Net Revenue(1): $73.4 million, 18.2% increase from 1Q18 and 16.7% increase from 2Q17 Linked Quarter Loan and Core Deposit Growth: 0.7% increase in average loans, w
Slide 4: Income Statement Summary
Change from 2Q18 1Q18 2Q17 INCOME STATEMENT SUMMARY (dollars in thousands, except per-share data) Net Interest Income 156,067 $ 4,749 $ 1 4,504 Provision for Credit Losses 3 3,117 N e t In c2om9e,o1f 4$375.2 mil lio n , 2 8 .9 % d e2cr6ea,s4e f1ro7m 1Q18 and 22.6% Non-Interest Income 4 9,090 de c
Slide 5: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Net Interest Income & Net Interest Margin Average Interest-Earning Assets & Yields ($ IN MILLIONS) ($ IN BILLIONS) $20.0 6.00% 3.93% 4.04% $15.0 3.78% 3.80% 3.83% 4.00% $15.8 $15.6 $15.7 $10.0 $15.1 $15.4 2.00% $5.0 ~ $730 million $2.8 $3.1 $3.2 $2.9 $3.0 $- 0.00% 2Q17
Slide 6: Asset Quality
ASSET QUALITY ($ IN MILLIONS) Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans $160.0 2.00% $40.0 $135.7 $136.5 $134.8 $134.6 $33.1 $123.7 $120.0 1.50% $30.0 $20.0 $80.0 1.00% 0.88% 0.88% 0.85% 0.86% $40.0 0.78% 0.50% $10.0 $6.7 $6.7 $5.1 $4.0 $- $0.0 0.00% 2Q17 3Q17 4Q17 1Q18
Slide 7: Non-Interest Income
NON-INTEREST INCOME ($ IN MILLIONS) Non-Interest Income, Excluding Securities Gains Mortgage Banking Income & Spreads $7.0 4.00% $6.1 $6.0 3.50% $5.2 $4.8 3.00% $5.0 $4.4 $4.2 2.50% $4.0 2.00% $3.0 1.50% $2.0 1.62% 1.44% 1.36% 1.30% 1.00% 1.11% $1.0 0.50% $60.0 $- 0.00% 2Q17(2) ~ $373Q01 7 4Q17 1Q18
Slide 8: Non-Interest Expenses
NON-INTEREST EXPENSES ($ IN MILLIONS) Non-Interest Expense & Efficiency Ratio (1) Salaries and Employee Benefits & Staffing $80.0 $75.8 3,700 $74.5 $72.9 $73.5 $74.9 $160.0 80.0% $70.0 3,600 $60.0 3,580 3,550 3,500 $140.0 70.0% $50.0 3,400 $40.0 67.5% 65.3% ~ $730 3,300 $120.0 64.2% 63.3% 60.0% $30.
Slide 9: Profitability & Capital
PROFITABILITY & CAPITAL ROA(1) ROE and ROE (tangible)(2) 1.20% 0.98% 1.01% 1.00% 0.94% 11.52% 11.85% 12.00% 11.06% 0.80% 0.67% 0.70% 0.60% 8.76% 9.02% 8.36% 7.91% 8.23% 0.40% 8.00% 6.03% 6.28% 0.20% 0.00% 4.00% 2Q17 3Q17 4Q17(3) 1Q18 2Q18 Tangible Common Equity Ratio(2) 0.00% Net Income Per Diluted
Slide 10: 2018 Outlook
2018 OUTLOOK Changes from the outlook as of the end of the first quarter of 2018 have been underlined. • Loans & Deposits: Average annual loan and core deposit growth rates in the low to mid single- digits • Asset Quality: Provision will reflect impacts of changes in asset quality measures, risk rat
Slide 11: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Note: The Corporation has presented the following non-GAAP (Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financia
Slide 12: Non-GAAP Reconciliation (Continued)
NON-GAAP RECONCILIATION (CONTINUED) Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 2017 2017 2017 2018 2018 Tangible Common Equity to Tangible Assets (TCE Ratio) (dollars in thousands) Shareholders' equity $ 2,191,770 $ 2,225,786 $ 2 ,229,857 $ 2,235,493 $ 2,245,785 Less: Intangible assets (531,556) ( 531,556)
Slide 13: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION www.fult.com