Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Shareholder Meeting (May 2016)
70 slides from Fulton Financial's shareholder meeting presentation, May 16, 2016
Slide 1: Annual Shareholders' Meeting May 16, 2016
Annual Shareholders’ Meeting May 16, 2016 Exhibit 99.1
Slide 2: Reminder: Vote your shares
Reminder: If you have not yet voted your shares, please do so now by visiting the Judge of Election table at the side of the room.
Slide 3: 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 4: Rules of Conduct
Rules of Conduct Cameras, recording devices and cell phones are not permitted to be used in the meeting. The display of placards and/or signs is prohibited. Questions from shareholders should be directed to the Chairperson of the meeting during the Question and Answer (Q&A) period. During the Q&A pe
Slide 5: Welcome and Opening Remarks
Welcome and Opening remarks Phil Wenger, Chairman, President and CEO
Slide 6: Today's agenda
Today’s agenda Business Meeting Proposals: Election of Directors Say on Pay Ratification of appointment of independent auditor Introductions Results of Voting Conclusion of Business Meeting Management Presentation Questions and Answers
Slide 7: Board of Directors
Board of Directors
Slide 8: Board of Directors: Lisa Crutchfield
Board of Directors Lisa Crutchfield
Slide 9: Board of Directors: Denise L. Devine
Board of Directors Denise L. Devine
Slide 10: Board of Directors: Patrick J. Freer
Board of Directors Patrick J. Freer
Slide 11: Board of Directors: George W. Hodges
Board of Directors George W. Hodges
Slide 12: Board of Directors: Albert Morrison III
Board of Directors Albert Morrison III
Slide 13: Board of Directors: Rob Moxley
Board of Directors Rob Moxley
Slide 14: Board of Directors: R. Scott Smith, Jr.
Board of Directors R. Scott Smith, Jr.
Slide 15: Board of Directors: Ron Spair
BOARD OF DIRECTORS Palen Ron Spair
Slide 16: Board of Directors: Mark Strauss
Board of Directors Mark Strauss
Slide 17: Board of Directors: Ernest J. Waters
Board of Directors Ernest J. Waters
Slide 18: Senior Management
Senior Management
Slide 19: Senior Management: Pat Barrett
Senior Management Pat Barrett
Slide 20: Senior Management: Phil Rohrbaugh
Senior Management Phil Rohrbaugh
Slide 21: Senior Management: Craig Roda
Senior Management Craig Roda
Slide 22: Senior Management: Meg Mueller
Senior Management Meg Mueller
Slide 23: Senior Management: Curt Myers
Senior Management Curt Myers
Slide 24: Senior Management: Angie Sargent
Senior Management Angie Sargent
Slide 25: Community Banking Leadership
Community Banking Leadership
Slide 26: Community Banking Leadership: Gerry Nau
Community Banking Leadership Gerry Nau North-central and North-eastern Pennsylvania
Slide 27: Community Banking Leadership: Jeff Rush
Community Banking Leadership Jeff Rush Southcentral/Southeastern Pennsylvania and Delaware
Slide 28: Community Banking Leadership: John Scaldara
Community Banking Leadership John Scaldara Maryland and Virginia
Slide 29: Community Banking Leadership: Angela Snyder
Community Banking Leadership Angela Snyder New Jersey
Slide 30: Jill Carson, Fulton Mortgage Company
Jill Carson Fulton Mortgage Company
Slide 31: Dave Hanson, Fulton Financial Advisors
Dave Hanson Fulton Financial Advisors/ Clermont Wealth Strategies
Slide 32: Report of the Judge of Election
Report of the Judge of Election
Slide 33: Annual Shareholders' Meeting May 16, 2016
Annual Shareholders’ Meeting May 16, 2016
Slide 34: A Look Back and a Look Ahead
Phil Wenger, Chairman, President and CEO A Look Back and a Look Ahead
Slide 35: A Valuable Franchise
A VALUABLE FRANCHISE FULTON FINANCIAL ‘CORPORATION. @ the Columbia Bank Gi FNB Ban @ Fulton oak I Fulton Bank of New Jersey G Lafayette Ambassador Bank B Swineford National Bank
Slide 36: Basic Facts
Banking offices: 243 Asset size: $18.1 billion Team members: 3,681 Shares outstanding:173.4 million Market capitalization:$2.3 billion Book value per share: $11.96 Tangible book value per share*: $8.89 Basic FacTS (at 3/31/16) *Non-GAAP based financial measure. For a reconciliation to the most compa
Slide 37: Financial Performance
Financial Performance
Slide 38: 2015 Highlights
2015 Highlights Progress in strengthening franchise Strong commercial loan and core deposit growth Improved asset quality Solid fee income Continued focus on efficiency Active capital management
Slide 39: Diluted Earnings Per Share
DILUTED EARNINGS PER SHARE ooo
Slide 40: Return on Average Assets & Tangible Equity
Return on AVERAGE Assets & Tangible Equity Note: Return an average assets determined by dividing net income for the period indicated by average assets. Return an tangible equity is a non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on
Slide 41: Average Loan and Average Deposit Growth
Average Loan and average Deposit Growth Note: 2011 through 2015 represents December year-over-year change in average loans and average deposits See “Appendix” for listing of Peer Group banks. Comprised of the 50 largest publicly traded domestic banks/thrifts in assets size as of December 31, 2015. E
Slide 42: Market Disruption
Market disruption Competitors acquired by larger banks Provides us with an opportunity to gain business FFC branches located in disrupted markets saw meaningfully higher rates of new consumer household growth than our branches in other markets.
Slide 43: Non-Performing Loans & NPLs to Loans
Non-Performing Loans (NPLs) & NPLs to Loans ($ in Millions) Note: NPLs consist of nonaccrual loans and accruing loans 90 days or more past due.
Slide 44: Provision for Credit Losses
Provision for credit losses ($ in Millions)
Slide 45: Net Interest Margin
NET INTEREST MARGIN Note: Fully-taxable equivalent. See “Appendix” for listing of Peer Group banks. Comprised of the 50 largest publicly traded domestic banks/thrifts in assets size as of December 31, 2015. Excludes credit card companies. Source: SNL Financial LC
Slide 46: Efficiency Ratio
Efficiency ratio Note: The efficiency ratio is a non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slides titled “Non-GAAP Reconciliation” at the end of this presentation. See “Appendix” for listing of Peer Group banks. Comprised
Slide 47: Capital Strength
Capital Strength Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slides titled “Non-GAAP Reconciliation” at the end of this presentation. Regulatory Capital Ratios & TCE Ratio
Slide 48: Capital Deployment
Capital Deployment Increased quarterly dividend by $0.01 per share Declared a special dividend of $0.02 per share Repurchased 31.3 million shares of our stock – June 2012 through April 2016 Remaining authorization to repurchase up to $38.8 million in shares through December 2016
Slide 49: A Sustainable Payout
A Sustainable Payout Annualized dividend rate per share divided by period-end stock price. Compounded annual growth rate from December 31, 2011 to December 31, 2015. Cash Dividend Per Common Share & Yield CAGR (2) = 17.4%
Slide 50: First Quarter 2016 Performance
First Quarter 2016 Performance Diluted earnings per share: $0.22 (flat linked-quarter and year-over-year) Pre-provision net revenue*: increased $5.1 million (11.2%) year-over-year Return on assets: 0.86% Return on tangible equity*: 10.07% Average loans: increased 5.8% from 1st quarter 2015 Average c
Slide 51: Fulton Financial Stock Performance and Analysts' Recommendations
Fulton financial stock performance and analysts’ recommendations
Slide 52: Stock Performance
Stock Performance Stock Price Change FULT Peer (1) Large Banks (2) December 31, 2014 – December 31, 2015 5.26% -3.38% -1.04% December 31, 2012 – December 31, 2015 35.38% 26.11% 46.37% (1) Median price change of Peer Group banks; See “Appendix” for listing of Peer Group banks Median price change of L
Slide 53: Analysts' Earnings Estimates – 2016
Analysts’ Earnings Estimates – 2016 Peer Group Average change (2): 6.93% Median change (2): 7.06% Notes: 2016 mean analyst estimates as of May 12, 2016. Average and median change above represents peer percent changes, excluding Fulton Source: SNL Financial LC Rank Company HQ State 2016 Median EPS Es
Slide 54: Analysts' Recommendations
Analysts’ Recommendations (as of 4/30/16) Barclays Equal Weight Boenning & ScattergoodNeutral FBR & Co. Market Perform J.P. MorganNeutral Jefferies Hold Keefe, Bruyette &WoodsMarket Perform Merion Capital GroupNeutral Piper JaffrayNeutral Raymond JamesMarket Perform Sandler O’NeillHold Standard & Po
Slide 55: Looking Ahead
Looking ahead
Slide 56: Our Priorities
Our Priorities Growth Digital capabilities Data architecture and business intelligence Fair and Responsible banking strategy Leadership and development programs for our team Consumer, commercial and micro-business strategies Operating model/Charter consolidation Compliance/Risk management
Slide 57: Industry-wide Regulatory Landscape
Industry-wide Regulatory Landscape The regulatory burden will continue to increase in complexity and scope as Fulton grows. Source: Bankingcomplianceindex.com
Slide 58: Regulatory and Compliance Infrastructure
Identify Measure & Report Control Monitor Assess Reg. Change Mgmt. Complaint Mgmt. Risk Assessment Monitoring & Testing Audit Issue/Action Plan Mgmt. Policy Governance Training Vendor Mgmt Reporting Frameworks, Functions/Departments, Roles and Responsibilities have been established with growth in mi
Slide 59: Our Future Goal: One Bank
Our future GOAL: One bank
Slide 60: Three Main Business Areas
Three main business areas Focused on the needs of specific customer segments Consumer Commercial Shared Services
Slide 61: Activities to Achieve Growth
Activities to achieve growth Customer segmentation Process improvements Added/enhanced specialty business lines and products
Slide 62: Enhancing the Digital Channel
Our biggest opportunity to acquire, cross-sell and retain NEW customers Enhancing the digital channel for consumers New Website Online deposit products, account openings and loan applications Enhanced Digital Account Management and New Payment Options Persuasive content and information to encourage
Slide 63: Annual Shareholders' Meeting May 16, 2016
Annual Shareholders’ Meeting May 16, 2016
Slide 64: Questions & Answers
QUESTIONS & ANSWERS May 16, 2016
Slide 65: Annual Shareholders' Meeting May 16, 2016
Annual Shareholders’ Meeting May 16, 2016
Slide 66: Appendix
Appendix
Slide 67: Non-GAAP Reconciliation: Efficiency Ratio and ROE
2015 2014 2013 2012 2011 Efficiency ratio Non-interest expense 480,160 $ 459,246 $ 461,433 $ 449,294 $ 416,242 $ Less: Intangible amortization (247) (1,259) (2,438) (3,031) (4,257) Less: Loss on redemption of TruPS (5,626) - - - - Numerator 474,287 $ 457,987 $ 458,995 $ 446,263 $ 411,985 $ Net inter
Slide 68: Non-GAAP Reconciliation
Non-GAAP Reconciliation Mar 31, Mar 31, Dec 31, 2016 2015 2015 Return on Average Shareholders' Equity (ROE) (Tangible) Net income 38,257 $ 40,036 $ 38,535 $ Plus: Intangible amortization, net of tax - 85 4 Numerator 38,257 $ 40,121 $ 38,539 $ Average shareholders' equity 2,058,799 $ 2,015,963 $ 2,03
Slide 69: Non-GAAP Reconciliation (Con't)
Non-GAAP Reconciliation (Con’T)
Slide 70: Peer Group
Peer Group* *Fulton’s Peer group as of December 31, 2015. Peer comparisons for all historical periods included within this presentation have been updated based on the above peer group for all periods presented. Associated Banc-Corp BancorpSouth, Inc. BOK Financial Corporation Commerce Bancshares, In