Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q1 2020 Earnings Presentation
17 slides from Fulton Financial's earnings presentation, Apr 22, 2020
Slide 1: 2020 First Quarter Results
2020 FIRST QUARTER RESULTS NASDAQ: FULT Data as of March 31, 2020 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: It's Personal: COVID-19 assistance programs for customers
IT’S PERSONAL Some of the COVID-19 assistance programs being offered to our customers: CONSUMER COMMERCIAL • Temporary forbearance up to six • SBA Paycheck Protection Program (PPP) months on residential mortgage loans • Small Business Unsecured Line of Credit and closed-end consumer loans with intro
Slide 4: COVID-19 Impact: Commercial & Consumer
COVID-19 IMPACT: COMMERCIAL & CONSUMER Commercial Portfolio Ending Commitments Balances P&I Deferrals %(1) ($s in MMs) ($s in MMs) C&I Portfolio $ 10,491 $ 6,885 13.5% CRE Portfolio 6,211 5,382 13.8% Commercial Portfolio $ 16,702 $ 12,266 13.6% Consumer Portfolio Ending Commitments Balances FICO LTV
Slide 5: Paycheck Protection Program (PPP)
PAYCHECK PROTECTION PROGRAM (“PPP”) PPP Results as of April 20, 2020 • Over 500 Fulton team members re-deployed to help support this effort • Focus has been initially on existing Fulton customers • Results to date: o Applications confirmed: ~6,500 o Dollars confirmed: ~$1.7 billion o Average Fee: ~3
Slide 6: COVID-19 Impact on Business Sectors
COVID-19 IMPACT ON BUSINESS SECTORS Limited exposure to some of the asset classes that were hit hardest initially from COVID-19, such as hotels, restaurants, energy and entertainment. Most of the loans are secured by real estate or other forms of collateral, which should help mitigate losses in the
Slide 7: Income Statement Summary
INCOME STATEMENT SUMMARY Change from 1Q20 4Q19 1Q19 (dollars in thousands, except per-share data) Net Interest Income $ 160,746 $ 1,476 $ (2,569) Provision for Credit Losses 44,030 23,500 38,930 Non-Interest Income 54,598 (683) 7,912 Securities Gains 46 46 (19) Non-Interest Expense 142,552 3,578 4,7
Slide 8: 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 5.00% $180.0 4.00% 4.00% $15 4.35% 4.37% 4.25% 4.07% 3.97% 3.00% $10 $17 3.75% $16 $16 $16 $17 2.00% $163 $165 $5 $161 $161 1.00% $159 $160.0 3.50% $3
Slide 9: Adoption of CECL
ADOPTION OF CECL(1) Three Months Ended March 31, 2020 (in thousands) Allowance for Credit Losses Rollforward (1) Balance at beginning of period, December 31, 2019 $ 166,208 Impact of adopting CECL 58,349 Loans charged-off (14,003) Recoveries of loans previously charged off 2,887 Net loans charged of
Slide 10: Asset Quality
ASSET QUALITY ($ IN MILLIONS) Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans $160.0 $147.7 2.00% $141.2 $50.0 $138.7 $136.0 $139.9 $44.0 $40.0 $120.0 1.50% $30.0 $80.0 1.00% $20.5 $20.0 0.90% 0.85% 0.81% 0.84% 0.82% $40.0 0.50% $10.0 $5.1 $5.0 $2.2 $0.0 0.00% $- 1Q19 2Q19 3Q
Slide 11: Non-Interest Income
NON-INTEREST INCOME(1) Three months ended March 31, 2020 (percent of total non-interest income) 1Q20 4Q19 Change 6% (in thousands) 11% n Wealth management $ 15,055 $ 14,419 $ 636 21% n Mortgage banking 6,234 5,076 1,158 n Consumer banking 11,239 12,429 (1,190) n Commercial banking 18,419 20,140 (1,7
Slide 12: Non-Interest Expenses
NON-INTEREST EXPENSES Three months ended March 31, 2020 (percent of total non-interest expense) 1Q20 4Q19 Change 20% (in thousands) n Salaries and benefits $ 80,228 $ 76,975 $ 3,253 n Occupancy 13,486 13,080 406 6% n Data Processing and software 11,645 11,468 177 56% n Other outside services 7,881 8
Slide 13: Liquidity Position
LIQUIDITY POSITION COMMENTARY AVAILABLE LIQUIDITY . Liquidity remains strong and diverse As of March 31, 2020 (in thousands) . Continue efforts to increase Cash On-Hand $272,501 capacity with the FHLB and Federal Federal Reserve Capacity 465,000 Reserve Outstanding Loans - . Sitting on excess cash r
Slide 14: Capital Position
CAPITAL POSITION COMMENTARY CAPITAL RATIOS(1) . Capital remains strong 13.8% 14.00% . Suspended share repurchases 12.00% $630 in Mid-March 10.00% 9.4% 9.4% $170 7.9% . Dividend elected to remain at 8.00% $450 $0.13 quarterly $650 6.00% . Internal stress analyses 4.00% indicate sufficient capital 2.0
Slide 15: Q2 2020 Outlook
Q2 2020 OUTLOOK All previous guidance for 2020 has been withdrawn due to the impact from COVID-19. At this time, select guidance will be provided on the following areas as it relates to the second quarter of 2020: • Loans: Current approved PPP applications ~ $1.7 billion. Expect the PPP loan growth
Slide 16: 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 17: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Three Months Ended Mar 31 Dec 31 Mar 31 2019 2019 2020 Efficiency ratio (dollars in thousands) Non-interest expense $ 137,824 $ 138,974 $ 142,552 Less: Intangible amortization (107) (142) (132) Less: Amortization of tax credit investments (1,491) (1,505) (1,450) Less: Loss on