Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Investor Presentation (May 2013)
71 slides from Fulton Financial's investor presentation, May 20, 2013
Slide 1: Investor Presentation
Investor Presentation Data as of March 31, 2013 (unless otherwise noted) Ticker Symbol: FULT (NASDAQ)
Slide 2: 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 words such as “may,” “should
Slide 3: About Us
About Us § Mid-Atlantic financial holding company § 6 community banks / 5 states § Fulton Financial Advisors § Fulton Mortgage Company § 270 community banking offices § Asset size as of March 31, 2013: $16.7 billion § 3,800 team members as of March 31, 2013 (3,580 FTEs) § Shares outstanding as of Ma
Slide 4: Fulton Financial Corporation banks
i The Columbia Bank Bi FNB Bank Bi Fulton Bank Hi Fulton Bank of New Jersey BB Lafayette Ambassador Bank BF Swineford National Bank FULTON FINANCIAL CORPORATION
Slide 5: Corporate Priorities
1. Earnings Per Share (EPS) Growth 2. Quality Loan Growth 3. Improve Asset Quality 4. Core Deposit / Household Growth 5. Spread Management / Net Interest Margin 6. Expense Management 7. Increase Return on Average Assets (ROA) & Return on Average Equity (ROE) Corporate Priorities
Slide 6: Priorities: EPS
Priorities: EPS 1. EPS Growth ü Q1 2013 Diluted EPS : 20 cents Up 5.3% compared to Q1 2012 Flat compared to Q4 2012
Slide 7: Diluted Earnings Per Share (Quarterly)
Diluted Earnings Per Share (Quarterly)
Slide 8: Income Statement Summary
Income Statement Summary N/M- Not meaningful
Slide 9: 2. Quality Loan Growth
2. Quality Loan Growth ü Average loans up 2% linked quarter Priorities: Earning Asset Growth
Slide 10: Average loans by type
Qi 2013 Q4 2012 $ % (dollars in millions) Comm'l Mort $ 4,667 $ 4,623 $ 44 1% Commercial 3,663 3,559 104 3% Home Equity 1,662 1,612 50 3% Resid Mort 1,283 1,224 59 5% Construction 591 594 (3) -1% Consumer/ Other 391 391 # 0% Total Loans $ 12,257 $ 12,003 $ 254 2% FULTON FINANCIAL CORPORATION
Slide 11: Period-end loans by type
Q1 2013 Q4 2012 $ % (dollars in millions) Comm'l Mort $ 4,730 $ 4,664 $ 66 1% Commercial 3,658 3,612 46 1% Home Equity 1,689 1,632 57 4% Resid Mort 1,303 1,258 45 4% Construction 598 584 14 2% Consumer/ Other 398 397 1 0% Total Loans $ 12,377 $ 12,147 $ 230 2% FULTON FINANCIAL CORPORATION
Slide 12: Peer Group
International Bancshares Corp. People’s United Financial, Inc. Prosperity Bancshares, Inc. Susquehanna Bancshares, Inc. TCF Financial Corporation UMB Financial Corporation Umpqua Holdings Corporation Valley National Bancorp Webster Financial Corporation Wintrust Financial Corporation Associated Banc
Slide 13: Change in average loans vs peers
Note : 2006 through 2012 represents year-over-year change in average loans. YTD 3/31 represents March 31, 2013 over December 31, 2012 change in average loans. * Comprised of the 50 largest publicly traded domestic banks/thrifts in assets size as of December 31,2012. Excludes credit card companies. S
Slide 14: 3. Improve Asset Quality
3. Improve Asset Quality Priorities: Credit Metrics
Slide 15: Credit metrics vs peers
* Comprised of the 50 largest publicly traded domestic banks/thrifts in assets size as of December 31,2012. Excludes credit card companies. Source: SNL Financial LC
Slide 16: Credit metrics vs peers
* Comprised of the 50 largest publicly traded domestic banks/thrifts in assets size as of December 31,2012. Excludes credit card companies. Source: SNL Financial LC
Slide 17: Non-performing Loans (3/31/13)
Non-performing Loans* (3/31/13) * Includes loans > 90 days past due and accruing and non-accrual loans.
Slide 18: Delinquency rates by loan type
March 31, 2013 December 31, 2012 290 Days Total 290 Days Total Commercial Mortgage 1.25% 1.64% 1.22% 1.68% Commercial Loans 1.67% 2.02% 1.85% 2.31% Construction Loans 5.34% 5.51% 5.48% 5.71% Residential Mortgage 2.79% 4.86% 2.74% 5.29% Home Equity 1.03% 1.72% 1.06% 1.83% Consumer, leasing and other
Slide 19: Provision for Credit Losses (Quarterly)
Provision for Credit Losses (Quarterly, in Millions of Dollars)
Slide 20: 4. Core Deposit / Household Growth
4. Core Deposit / Household Growth 2012 Net Account Lift (#): 2.8% Priorities: Deposits
Slide 21: Deposit Composition
Deposit Composition Note : Deposit composition is based on quarterly average balances for the periods indicated.
Slide 22: Priorities: Deposits
Priorities: Deposits (1) Annual retail customer satisfaction surveys conducted by FFC’s Marketing Research Group. Areas covered: Overall Customer Satisfaction and likelihood to recommend the bank; Customer experience; Specific issues of problems experience by customers; Motivating factors to bank wi
Slide 23: 5. Spread Management / Net Interest Margin
5. Spread Management / Net Interest Margin § Q1 2013 Net Interest Margin (fully-taxable equivalent): 3.55% ü Yield on average interest-earning assets: 4.13% ü Cost of average interest-bearing liabilities: 0.78% Priorities: Margin
Slide 24: Net Interest Margin (Quarterly)
Net Interest Margin (Quarterly) Note : Fully-taxable equivalent * Comprised of the 50 largest publicly traded domestic banks/thrifts in assets size as of December 31,2012. Excludes credit card companies. Source: SNL Financial LC
Slide 25: 6. Expense Management
6. Expense Management Priorities: Efficiency
Slide 26: Non-interest expense detail
Q1 2013 Q4 2012 $ % (dollars in thousands) Salaries & Benefits $ 61,212 $ 61,303 $ (91) 0% Occupancy & Equip. 15,752 15,235 517 3% Data Proc. & Software 6,651 6,275 376 6% Professional Fees 3,047 3,228 (181) -6% Outside Services 2,860 4,138 (1,278) -31% OREO & Repo Expense 2,854 2,474 380 15% FDIC I
Slide 27: More Efficient Than Peers
More Efficient Than Peers (1) (1) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Reconciliation” at the end of this presentation. * Comprised of the 50 largest publicly traded domestic banks/thrifts in a
Slide 28: 7. Increase ROA and ROE
ROA Q1 2013: 0.96% Q4 2012: 0.99% Priorities: ROA and ROE ROE (Tangible) (1) Q1 2013: 10.43% Q4 2012: 10.53% (1) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Reconciliation at the end of this presentat
Slide 29: Return on Average Assets by Bank
Return on Average Assets and Average Assets, by Bank
Slide 30: Return on Average Assets (ROA) Growth
Return on Average Assets (ROA) Growth Note : 2006 through 2012 represents year-over-year ROA growth. YTD 3/31 represents March 31, 2013 over March 31, 2012 ROA growth. * Comprised of the 50 largest publicly traded domestic banks/thrifts in assets size as of December 31,2012. Excludes credit card com
Slide 31: Total Risk-Based Capital Ratio
Total Risk-Based Capital Ratio
Slide 32: Capital ratios vs well-capitalized
Well- FULT Capitalized Total Risk-Based Capital Ratio 15.18% 10.00% Tier 1 Risk-Based Capital Ratio 12.98% 6.00% Tier 1 Leverage Ratio 10.58% 5.00% FULTON FINANCIAL CORPORATION
Slide 33: Capital Adequacy vs. Basel III (3/31/13)
Capital Adequacy vs. Basel III (3/31/13)
Slide 34: Tangible Book Value Per Share
Tangible Book Value Per Share (1) CAGR (2) = 9.6% (1) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Reconciliation” at the end of this presentation. (2) Compounded annual growth rate from March 31, 2010
Slide 35: Price Multiple vs. Peer Group
Price Multiple vs. Peer Group Notes : Peer Tangible Book Value and LTM EPS data as of 3/31/2013. Source: SNL Financial LC FULT Tangible Book Value and LTM EPS data as of 3/31/2013. (1) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure o
Slide 36: FULT - Cash Dividend and Yield
FULT - Cash Dividend and Yield (1) CAGR (2) = 27.8% (1) Annualized dividend rate per share divided by period-end stock price. (2) Compounded annual growth rate in cash dividend from March 31, 2009 to March 31, 2013.
Slide 37: Stock Repurchase Program
§ New program authorized: January, 2013 § Purchase of up to 8 million shares through June 30, 2013 § About 4 % of outstanding shares § Shares repurchased through May 13, 2013: 6.0 million § Average purchase price: $ 11.08 Stock Repurchase Program
Slide 38: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION
Slide 39: Deposits by type
Q1 2013 Q4 2012 $ % (dollars in millions) Nonint DDA $ 2,969 $ 2,955 $ 14 0% Int DDA 2,706 2,684 22 1% Savings/MMDA 3,334 3,399 (65) -2% Total Core Deposits 9,009 9,038 (29) 0% CD's 3,321 3,473 (152) 4% Cash Management 277 316 (39) -12% Total Deposits $ 12,607 $ 12,827 $ (220) -2% FULTON FINANCIAL C
Slide 40: Compounded annual growth rate
CAGR (1) = 7.2% (1) Compounded annual growth rate from year-ended December 31, 2003 to year-ended December 31, 2012.
Slide 41: Non-interest income detail
Q1 2013 Q4 2012 $ % (dollars in thousands) Invt Mgt & Trust $ 10,096 $ 9,611 $ 485 5% Mort. Banking Income 8,173 12,813 (4,641) -36% Overdraft & NSF Fees 7,461 8,716 (1,255) -14% Service Charges 3,818 4,109 (291) -7% Merchant Fees 3,074 3,109 (35) -1% Cash Mgt Fees 2,832 2,816 16 1% Debit Card Fees
Slide 42: Interest Rates
Interest Rates (1) Fully-taxable equivalent
Slide 43: Interest Rate Shocks (3/31/13)
Interest Rate Shocks (3/31/13) Rate Change % Change +400 bps 65,850 $ million 12.7% +300 bps 45,182 $ million 8.7% +200 bps 27,711 $ million 5.4% +100 bps 7,322 $ million 1.4% -100 bps (18,327) $ million -3.5% 1.06 Net Interest Income Change (annual) 6-Month Cumulative GAP:
Slide 44: $800 2.00% $700 9666 1.75% $600 1.50% > 3p $500 125% 2? F g=
$800 2.00% $700 9666 1.75% $600 1.50% > 3p $500 125% 2? F g= 5400 1.00% & a 5 8 =‘ $3200 075% = Slead = $200 0.50% & $100 0.25% $0 0.00% 202013 302013 402013 102014 FULTON FINANCIAL CORPORATION
Slide 45: Summary of Larger Loans (3/31/13)
§ 57 relationships with commitments to lend $20 million or more § Maximum individual commitment: $39 million § Maximum commitment to any one builder/developer relationship: $28 million § Maximum commitment to any one development project: $15 million § Loans and corresponding relationships are within
Slide 46: Net Charge-offs (Recoveries) (YTD March 2013)
Net Charge-offs (Recoveries) (YTD March 2013)
Slide 47: Net charge-offs vs peers
* Comprised of the 50 largest publicly traded domestic banks/thrifts in assets size as of December 31,2012. Excludes credit card companies. Source: SNL Financial LC
Slide 48: Allowance for Loan Losses to Non-accrual Loans
Allowance for Loan Losses to Non-accrual Loans * Comprised of the 50 largest publicly traded domestic banks/thrifts in assets size as of December 31,2012. Excludes credit card companies. Source: SNL Financial LC
Slide 49: Commercial Loans by Industry (3/31/13)
Commercial Loans by Industry (3/31/13)
Slide 50: Loan Distribution by State (3/31/13)
Loan Distribution by State (3/31/13)
Slide 51: Residential Mortgages (3/31/13)
Residential Mortgages (3/31/13) (1) NPL - Non-performing loans. Includes accruing loans > 90 days past due and non-accrual loans.
Slide 52: Fulton Mortgage Company
Fulton Mortgage Company § Applications $701 million vs. $729 million (End Q1 2013 vs. End Q4 2012) § Pipeline $386 million vs. $463 million (End Q1 2013 vs. End Q4 2012) § 37% purchase / 63% refinancing (Q1 2013)
Slide 53: Fulton Mortgage Company
Fulton Mortgage Company 69% Available for Sale GOS Spread 1.58% GOS Spread 1.66% GOS Spread GOS Spread 1.62% 70% Available for Sale 86% Available for Sale 88% Available for Sale 82% Available for Sale GOS Spread 2.37% 81% Available for Sale ($ in thousands)
Slide 54: Residential Mortgage Repurchase Activity
Residential Mortgage Repurchase Activity Year to date through March 31, 2013: § Servicing Retained § Repurchased $1,274,000. § Servicing Released § Repurchased $ 0
Slide 55: Commercial Loans (3/31/13)
Commercial Loans (3/31/13) (1) NPL - Non-performing loans. Includes accruing loans > 90 days past due and non-accrual loans.
Slide 56: Commercial Mortgages (3/31/13)
Commercial Mortgages (3/31/13) (1) NPL - Non-performing loans. Includes accruing loans > 90 days past due and non-accrual loans.
Slide 57: Construction Loans (3/31/13)
Construction Loans (3/31/13) (1) NPL - Non-performing loans. Includes accruing loans > 90 days past due and non-accrual loans.
Slide 58: Construction Loans by Type (3/31/13)
Construction Loans by Type (3/31/13)
Slide 59: Construction Exposure (3/31/13)
Construction Exposure (in millions, 3/31/13) Construction Loans / Total Loans 10.5% 8.2% 6.7% 5.1% 4.8%
Slide 60: Commercial and commercial mortgage delinquency
Commercial Commercial Mortgage Total Outstanding Delinquency rate March 31, December 31, 2013 2012 (dollars in thousands) $ 102,405 $ 81,978 46,959 47,637 $ 149,364 $ 129,615 0.0% 2.7% FULTON FINANCIAL CORPORATION
Slide 61: Troubled debt restructurings
Note : Excludes non-accrual troubled debt restructurings.
Slide 62: Investment Portfolio (3-31-13)
Investment Portfolio (3-31-13) Book Yield (monthly) 2.78%
Slide 63: Projected Investment Security Cash Flows
Projected Investment Security Cash Flows
Slide 64: Investment MBS & CMO Cash Flows (2012-2013)
Investment MBS & CMO Cash Flows (2012-2013) Book Price $102.12
Slide 65: Investment Portfolio - Transactions (1st Quarter 2013)
Investment Portfolio - Transactions (1 st Quarter 2013) ($ in Thousands) Does not include $1.1 million bank stock gains for the first quarter of 2013 or $64,000 of gains related to 2012 sales
Slide 66: Projected FHLB Advance Maturities
Projected FHLB Advance Maturities
Slide 67: Non-GAAP Reconciliation
Non-GAAP Reconciliation Note : The Corporation has presented the following non-GAAP (Generally Accepted Accounting Principals) financial measures because it believes that they provide useful and comparative information to assess trends in the Corporation's quarterly results of operations. Presentati
Slide 68: Non-GAAP Reconciliation (con't)
Non-GAAP Reconciliation (con’t)
Slide 69: Non-GAAP Reconciliation (con't)
Non-GAAP Reconciliation (con’t)
Slide 70: Non-GAAP Reconciliation (con't)
Non-GAAP Reconciliation (con’t)
Slide 71: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com