Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q4 2015 Earnings Presentation
15 slides from Fulton Financial's earnings presentation, Jan 19, 2016
Slide 1: 2015 and Fourth Quarter Results
D A T A A S O F D E C E M B E R 3 1 , 2 0 1 5 U N L E S S O T H E R W I S E N O T E D 2015 AND FOURTH QUARTER RESULTS
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements with respect to Fulton Financial 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 wor
Slide 3: 2015 Highlights
2015 HIGHLIGHTS Diluted Earnings Per Share • $0.22 diluted earnings per share in 4Q15, $0.85 YTD Loan and Core Deposit Growth • 3.5% increase in average loans and 8.9% increase in average core deposits • Ending loans increased 5.5% in 2015, with more than 75% of this growth occurring in the last six
Slide 4: Income Statement Summary – Annual Comparison
INCOME STATEMENT SUMMARY – ANNUAL COMPARISON Note: ROA is return an average assets determined by dividing net income for the period indicated by average assets (1) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “N
Slide 5: Income Statement Summary – Quarterly Comparison
INCOME STATEMENT SUMMARY – QUARTERLY COMPARISON Net Income of $38.5 million; a 12.5% increase from 3Q15 and a 1.5% increase from 4Q14 Net Interest Income From 3Q15: Increase of 1.7% due to a 1.5% increase in average earning assets and a 1 bp improvement in net interest margin (NIM) From 4Q14:
Slide 6: Net Interest Income and Margin – Quarter Comparison
NET INTEREST INCOME AND MARGIN – QUARTER COMPARISON Net Interest Income & Net Interest Margin ~ $730 million ~ $610 million $128.0 $123.6 $122.9 $125.7 $127.8 3.31% 3.27% 3.20% 3.18% 3.19% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 Q4 2014 Q1 2015 Q2 2015
Slide 7: Asset Quality – Annual Comparison
ASSET QUALITY – ANNUAL COMPARISON ($ IN MILLIONS) Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans Net Charge-offs (NCOs) and NCOs to Average Loans Allowance for Credit Losses (Allowance) to NPLs & Loans 7
Slide 8: Non-Interest Income – Quarter Comparison
NON-INTEREST INCOME – QUARTER COMPARISON ($ IN MILLIONS) Non-interest Income, Excluding Securities Gains ~ $730 million ~ $610 million $41.3 $40.6 $44.1 $43.0 $45.1 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Mortgage Banking Income & Spreads
Slide 9: Non-Interest Expenses – Quarter Comparison
NON-INTEREST EXPENSES – QUARTER COMPARISON ($ IN MILLIONS) Non-interest Expense & Efficiency Ratio (1) ~ $730 million ~ $610 million $117.7 $118.5 $118.4 $119.3 $118.4 67.5% 70.2% 68.9% 68.8% 66.6% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 Q
Slide 10: Compliance & Risk Management
COMPLIANCE & RISK MANAGEMENT $1.8 $2.1 $3.2 $4.3 $4.6 $1.4 $8.2 $4.8 $0.4 $1.5 13 26 30 45 47 0 5 10 15 20 25 30 35 40 45 50 $- $3.0 $6.0 $9.0 $12.0 2011 2012 2013 2014 2015 (Projected) Salaries & Benefits Expense Outside Consulting Services# Temporary Employee Expense Staffing $0.8 YTD Sep 15: $3.1
Slide 11: Profitability & Capital – Annual Comparison
PROFITABILITY & CAPITAL – ANNUAL COMPARISON ROA ROE (tangible) (1) Tangible Common Equity Ratio (1) Diluted Earnings Per Common Share Note: ROA is return an average assets determined by dividing net income for the period indicated by average assets (1) Non-GAAP based financial measure. Please refer
Slide 12: 2016 Outlook
2016 OUTLOOK • Loans & Deposits: Annual average growth rate in the mid- to high-single digits • Net Interest Margin: Stable on an annual basis, with modest volatility (+/- 0 to 3 basis points) on a quarterly basis • Asset Quality: Provision driven primarily by loan growth • Non-Interest Income (Excl
Slide 13: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION D ec 31, Sep 30, Jun 30, M ar 31, D ec 31, 2015 2015 2015 2015 2014 2015 2014 Eff iciency rat io Non-interest expense 118,439$ 124,889$ 118,354$ 118,478$ 117,720$ 480,160$ 459,246$ Less: Intangible amortization (6) (5) (106) (130) (315) (247) (1,259) Less: Loss on redemption
Slide 14: Non-GAAP Reconciliation (Con't)
NON-GAAP RECONCILIATION (CON’T) D ec 31, D ec 31, D ec 31, D ec 31, 2015 2014 2013 2012 T angible C o mmo n Equity to T angible A ssets (T C E R atio ) Shareholders' equity 2,037,214$ 1,996,665$ 2,063,187$ 2,081,656$ Less: Intangible assets (531,556) (531,803) (533,076) (535,563) Tangible shareholde
Slide 15: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION www.fult.com