Slide 1: Investor Presentation
D A T A A S O F M A R C H 3 1 , 2 0 1 6 U N L E S S O T H E R W I S E N O T E D INVESTOR PRESENTATION
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: Why Fulton?
WHY FULTON? • Risk Management Foundation • Management Depth and Experience • Stability of Geographic Markets / Franchise Value • Strong Capital & Reserves • Commitment to Enhancing Shareholder Value • Relationship Banking Strategy / Customer Experience • Quality Loan Growth / Solid Asset Quality • A
Slide 4: A Valuable Franchise
A VALUABLE FRANCHISE • 243 community banking offices across the Mid-Atlantic • Asset size: $18.1 billion • 3,700+ team members (3,480 FTEs (1)) • Market capitalization: $2.3 billion (2) 4 (1) Full-time equivalent employees. (2) Based on shares outstanding and the closing price as of March 31, 2016.
Slide 5: Strong Position in Attractive Markets
STRONG POSITION IN ATTRACTIVE MARKETS 5 Note: Data as of June 30, 2015 per Federal Deposit Insurance Corporation (FDIC) Summary of Deposits. Household Income Data as of June 30, 2015 per SNL Financial LC. (1) Median HH Income, 2016 – 2021 Projected Population Change and 2016 – 2021 Projected HH Inco
Slide 6: Deep Executive Management Team
Name Position Years at Fulton Years in Financial Services Prior Experience E. Philip Wenger Chairman, President & CEO 36 36 Various roles since joining in 1979 Patrick Barrett (1) Senior EVP & CFO 2 23 SunTrust, JPMorgan, Deloitte Touche Tomatsu Craig Roda Senior EVP/ Community Banking 37 37 Various
Slide 7: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS Diluted Earnings Per Share: $0.22 in 1Q16, unchanged from 4Q15 and 1Q15 Pre-Provision Net Revenue(1): $50.8 million, 6.6% decrease from 4Q15 and 11.2% increase from 1Q15 Linked Quarter Loan and Core Deposit Growth: 1.4% increase in average loans, while average core deposits
Slide 8: Income Statement Summary
INCOME STATEMENT SUMMARY Net Income of $38.3 million; a 0.7% decrease from 4Q15 and a 4.4% decrease from 1Q15. Earnings per share unchanged due to net impact of share repurchases. Net Interest Income From 4Q15: Increase of 1.0% due to a 1.0% increase in average earning assets and a 4 bp improv
Slide 9: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Net Interest Income & Net Interest Margin ~ $730 million ~ $610 million $123.6 $122.9 $125.7 $127.8 $129.1 3.27% 3.20% 3.18% 3.19% 3.23% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2
Slide 10: Loan Portfolio Composition & Yield
LOAN PORTFOLIO COMPOSITION & YIELD 10 Note: Loan portfolio composition is based on average balances for the years ended December 31, 2011 to 2015, and quarter ended March 31, 2016.. (1) Presented on a fully-taxable equivalent basis. $4.6 $4.9 $5.1 $5.2 $5.5 $3.6 $3.7 $3.7 $3.9 $4.1 $1.6 $1.7 $1.7 $1
Slide 11: Deposit Portfolio Composition
DEPOSIT PORTFOLIO COMPOSITION 11 Note: Deposit composition is based on average balances for the periods indicated. Average demand and savings up 9.9% compared to the three months ended March 31, 2015; while total deposits are up 6.2%. 20% 28% 24% 18% 10% Time Deposits Non-Int DDA Int DDA Money Mkt S
Slide 12: Interest Rate Sensitivity Simulation
1) A variety of interest rate scenarios are used to measure the effects of sudden and gradual movements upward and downward in the yield curve. These results are compared to the results obtained in a flat or unchanged interest rate scenario. Simulation of net interest income is used primarily to mea
Slide 13: Asset Quality
ASSET QUALITY ($ IN MILLIONS) 13 Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans 120.34% 113.34% 116.81% 118.37% 121.05% 1.37% 1.28% 1.25% 1.24% 1.20% 0.00% 1.00% 2.00% 3.00% 0.00% 25.00% 50.00% 75.00% 100.00% 125.00% 150.00% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Allowance/
Slide 14: Non-Interest Income
NON-INTEREST INCOME ($ IN MILLIONS) Non-interest Income, Excluding Securities Gains ~ $730 million ~ $610 million $40.6 $44.1 $43.0 $45.1 $42.2 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Mortgage Banking Income & Spreads Other Non-interest I
Slide 15: Non-Interest Expenses
NON-INTEREST EXPENSES ($ IN MILLIONS) Non-interest Expense & Efficiency Ratio (1) ~ $730 million ~ $610 million $118.5 $118.4 $119.3 $118.4 $120.4 70.2% 68.9% 68.8% 66.6% 68.3% 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 Q1 2015 Q2 2015 Q3 201
Slide 16: Compliance & Risk Management
$1.8 $2.1 $3.2 $4.3 $1.0 $4.6 $1.4 $8.2 $4.5 $0.9 $0.4 $1.4 $0.2 13 26 30 45 47 51 0 10 20 30 40 50 60 $- $3.0 $6.0 $9.0 $12.0 2011 2012 2013 2014 2015 Q1 2016 Salaries & Benefits Expense Outside Consulting Services(1) Temporary Employee Expense Staffing $0.8$0.1 COMPLIANCE & RISK MANAGEMENT (1) Rep
Slide 17: Profitability & Capital
PROFITABILITY & CAPITAL 17 ROA(1) ROE (tangible)(2) Tangible Common Equity Ratio(2) Diluted Earnings Per Common Share 10.96% 9.83% 9.11% 10.16% 10.07% 0.00% 4.00% 8.00% 12.00% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 0.95% 0.86% 0.78% 0.86% 0.86% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% Q1 2015 Q2 2
Slide 18: Stock Repurchase Programs
STOCK REPURCHASE PROGRAMS June 2012 to April 2016 Repurchase Programs (1) Shares Repurchased 31.3 million % of Outstanding Shares 15.4% (2) Amount Repurchased $368 million Average Purchase Price $11.75 18 demand and savings (1) Share repurchases completed from June 2012 through April 30, 2016. (2) T
Slide 19: Average Assets and ROA, by Bank
AVERAGE ASSETS AND ROA, BY BANK Three Months Ended Mar 31, 2016 Return on Average Assets (1) Average Assets ($ Millions) 2016 2015 Fulton Bank, N.A. $9,852 1.05% 1.16% Lafayette Ambassador Bank 1,532 0.95% 1.09% The Columbia Bank 2,119 0.82% 0.72% Fulton Bank of New Jersey 3,708 0.68% 0.81% FNB Bank
Slide 20: 2016 Outlook
2016 OUTLOOK • Loans & Deposits: Annual average growth rate in the mid- to high-single digits • Net Interest Margin: Stable on an annual basis, with modest volatility (+/- 0 to 3 basis points) on a quarterly basis • Asset Quality: Provision driven primarily by loan growth • Non-Interest Income (Excl
Slide 21: Appendix
APPENDIX
Slide 22: Average Loan Portfolio and Yields
AVERAGE LOAN PORTFOLIO AND YIELDS 22 Note: Yields presented on a fully taxable-equivalent basis, using a 35% federal tax rate and statutory interest expense disallowances. Balance Yield Q4 2015 Q1 2015 Q4 2015 Q1 2015 Comm'l Mort 5,488$ 4.03% 122$ 324$ (0.02%) (0.19%) Commercial 4,095 3.79% 60 325 0
Slide 23: Average Customer Funding and Rates
AVERAGE CUSTOMER FUNDING AND RATES 23 Balance Rate Q4 2015 Q1 2015 Q4 2015 Q1 2015 Nonint DDA 3,968$ - % (31)$ 306$ - % - % Int DDA 3,438 0.17% 26 302 0.04% 0.04% Savings/MMDA 3,933 0.18% 29 416 0.01% 0.05% CD's 2,868 1.04% (36) (194) 0.01% 0.02% Total Deposits 14,207 0.30% (12) 830 0.01% 0.00% Cash
Slide 24: Ending Loan Distribution by State
ENDING LOAN DISTRIBUTION BY STATE MARCH 31, 2016 24 Comm'l Consumer Comm'l Mortgage Constr. Res. Mtg. & Other Total (in thousands) Pennsylvania 2,909,286$ 2,825,883$ 467,374$ 643,825$ 1,277,447$ 8,123,815$ New Jersey 532,373 1,421,717 168,568 234,563 366,832 2,724,053 Maryland 337,977 590,546 60,214
Slide 25: Non-Performing Loans
NON-PERFORMING LOANS(1) MARCH 31, 2016 25 Comm'l Consumer Ending Loans NPLs/Loans Comm'l Mortgage Constr. Res. Mtg. & Other Total NPLs by State by State Pennsylvania 21,078$ 18,007$ 8,269$ 9,463$ 6,847$ 63,664$ 8,123,815$ 0.78% New Jersey 7,755 18,522 1,079 6,687 6,929 40,972 2,724,053 1.50% Marylan
Slide 26: Net Charge-Offs (Recoveries)
NET CHARGE-OFFS (RECOVERIES) THREE MONTHS ENDED MARCH 31, 2016 26 Comm'l Consumer Average Loans Charge-Offs to Comm'l Mortgage Constr. Res. Mtg. & Other Total by State Average Loans Pennsylvania 3,685$ (283)$ 109$ 322$ 1,675$ 5,508$ 8,127,417$ 0.07% New Jersey 322 47 (128) 425 514 1,180 2,732,108 0.
Slide 27: Investment Portfolio
INVESTMENT PORTFOLIO MARCH 31, 2016 27 Weighted Avg. Remaining Life Amortized Unrealized Estimated (in years) Cost Gain (Loss) Fair Value (dollars in millions) Collateralized mortgage obligations 3.9 782$ -$ 782$ Mortgage-backed securities 5.1 1,170 19 1,189 State and municipal securities 6.6 307 7
Slide 28: A Sustainable Payout
A SUSTAINABLE PAYOUT $0.20 $0.30 $0.32 $0.34 $0.38 $0.09 2.04% 3.12% 2.44% 2.75% 2.92% 2.69% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% $0.00 $0.04 $0.08 $0.12 $0.16 $0.20 $0.24 $0.28 $0.32 $0.36 $0.40 2011 2012 2013 2014 2015 Q1 2016 Cash Dividend Yield 28 (1) Annualized dividend rate per sh
Slide 29: Non-Interest Income (Excluding Securities Gains)
NON-INTEREST INCOME (EXCLUDING SECURITIES GAINS) 29 Q1 2016 Q4 2015 Q1 2015 Q4 2015 Q1 2015 Invt Mgt & Trust 10,988$ 10,919$ 10,889$ 69$ 99$ Overdraft & NSF Fees 5,272 5,694 4,801 (422) 471 Mortgage Banking Income 4,030 4,318 4,688 (288) (658) Service Charges 3,820 3,877 3,551 (57) 269 Merchant Fees
Slide 30: Non-Interest Expense
NON-INTEREST EXPENSE 30 Q1 2016 Q4 2015 Q1 2015 Q4 2015 Q1 2015 Salaries & Benefits 69,372$ 65,467$ 64,990$ 3,905$ 4,382$ Occupancy & Equipment 15,591 15,192 17,650 399 (2,059) Data Proc. & Software 9,321 9,195 8,086 126 1,235 Outside Services 6,056 6,537 5,750 (481) 306 FDIC Insurance 2,949 2,896 2
Slide 31: 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 32: Non-GAAP Reconciliation (Con't)
NON-GAAP RECONCILIATION (CON’T) 32 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 2015 2015 2015 2015 2016 Tangible Common Equity to Tangible Assets (TCE Ratio) Shareholders' equity 2,031,513$ 2,024,817$ 2,025,904$ 2,041,894$ 2,073,309$ Less: Intangible assets (531,672) (531,567) (531,562) (531,556) (531,556) T
Slide 33: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION www.fult.com