Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — B. Riley & Co. New York Bank Conference 2008
39 slides from Fulton Financial's conference presentation, Nov 17, 2008
Slide 1: Fulton Financial Corporation
Fulton Financial Corporation B. Riley & Co. New York Bank Conference November 18, 2008
Slide 2: Forward-Looking Statement
Forward-Looking Statement The following presentation may contain forward-looking statements about Fulton Financial Corporation’s financial condition, business, strategies, products and services. Forward-looking statements are encouraged by the Private Securities Litigation Reform Act of 1995. Such f
Slide 3: Presentation Outline
Presentation Outline Corporate Overview Strategy Quarterly Commentary Loan Summary Financial Performance
Slide 4: Fulton Financial Profile
Fulton Financial Profile Mid-Atlantic regional financial holding company A family of 10 community banks in 5 states Fulton Financial Advisors / Fulton Mortgage Co. 267 community banking offices Asset size: $16 billion 3900 Team Members Market capitalization: $ 1.8 billion Book value (9/30/08) : $9.1
Slide 5: Strategic Plan
Strategic Plan Superior Employee Engagement Superior Customer Experience Superior Operating Efficiency Superior Financial Results
Slide 6: Capital (as of 09/30/08)
Capital (as of 09/30/08) Total Capital (GAAP): $1.6 billion Total Regulatory Capital: $1.5 billion Ratios: Total Risk-Based Capital 11.90% Tier 1 Risk-Based Capital 9.10% Leverage Capital 7.50% Tangible Common Equity 6.20%
Slide 7: Capital Purchase Program
Capital Purchase Program Balance sheet strength Market share opportunities Meet needs of strong new customers Maintain strength relative to peers Potential acquisitions
Slide 8: Fulton affiliate banks
Ol The Bank The Columbia Bank 1 Delaware National Bank By FNB Bank Fulton Bank BD Hagerstown Trust In Lafayette Ambassador Bank Il The Peoples Bank of Elkton I Skylands Community Bank I Swineford National Bank Virginia, gg? ‘FULTON FINANCIAL ‘CORPORATION
Slide 9: Affiliate Consolidation- Maryland
Affiliate Consolidation- Maryland Hagerstown Trust and Peoples Bank of Elkton Divisions of The Columbia Bank Q3/09 Statewide $2.4 billion franchise Leverage brand and marketing resources After conversion: Total of 8 affiliate banks, previous high of 15
Slide 10: Q3/08 Quarterly Comments
Q3/08 Quarterly Comments Reported EPS of 17 cents Good performance relative to peers
Slide 11: Q3/08 Quarterly Comments
Q3/08 Quarterly Comments Market share opportunities Good new net account growth Customer funding a challenge Strong deposit-related account fee income
Slide 12: Q3/08 Quarterly Comments
Q3/08 Quarterly Comments Strong loan demand Strong loan growth Disciplined underwriting Building a quality base for the future
Slide 13: Delinquency Trends
Delinquency Trends Residential Mortgage Delinquency: 5.76 5.50 5.49 6.49 Total 2.81 2.58 3.14 3.52 90 Days 0.73 1.04 .96 0.72 60 Days 2.22 1.88 1.39 2.26 30 Days 9/30/2008 6/30/2008 3/31/2008 12/31/2007 Direct Consumer Delinquency: .92 .81 .77 .85 Total .35 .32 .32 .26 90 Days .18 .14 .13 .14 60 Day
Slide 14: Q3/08 Quarterly Comments
Q3/08 Quarterly Comments Market-provided opportunity to improve loan yields More competitive deposit pricing Margin stability Yield curve
Slide 15: Summary of Larger Loans relationships with commitments to lend
Summary of Larger Loans 46 relationships with commitments to lend of $20 million or more Maximum individual commitment of $33 million Average commercial lending relationship size is $ 428,577 Loans and corresponding relationships are within Fulton’s geographic market area
Slide 16: Loan Diversification (as of 09/30/08)
Loan Diversification (as of 09/30/08) 8% 14% 11% 33% 30% 4% Commercial Commercial Mortgage Res Mtg Home Equity Construction Consumer and other
Slide 17: Commercial Loan Concentration by Industry (as of 09/30/08)
Commercial Loan Concentration by Industry (as of 09/30/08) Industry % Construction 24.7 RE - Investor - Owned 24.0 Services 14.5 Manufacturing 7.1 Retail 6.0 Health Care 5.6 Agriculture 5.1 Wholesale 4.4 Other 2.9 Financial Services 2.4 Arts and Entertainment 2.1 Transportation 1.2 100.0
Slide 18: Loan Distribution by Affiliate
Loan Distribution by Affiliate 08 v. 07 % Aver Bal Growth Growth (dollars in thousands) Pennsylvania 6,166,700 $ 401,700 $ 7% New Jersey 2,367,300 229,500 11% Maryland 1,584,900 32,100 2% Virginia 1,108,300 162,200 17% Delaware 337,600 25,400 8%
Slide 19: Overall Survey Results
Overall Survey Results Quality & Improvement* Commitment (-) Immediate Supervisor* Job Itself* Service Climate* Company Image* Training & Development* Organizational Leadership (-) Work Processes* Communication* Pay and Benefits* Teamwork & Collaboration* Categories above 65% are considered strength
Slide 20: Superior Customer Satisfaction
Superior Customer Satisfaction *Retail: 90% extremely/very satisfied Commercial: 90% extremely/very satisfied * Compared to national average of 63% Source: American Banker/Gallup Consumer Survey
Slide 21: Status of the Corporation
Status of the Corporation Capital strong Financial performance compares well to peers Quality loan growth Market opportunities Investing for the future – branches, technology, training
Slide 22: ‘FULTON FINANCIAL
‘FULTON FINANCIAL ‘CORPORATION
Slide 23: Peer Comparisons
Peer Comparisons Quarter ended 9-30-08 EPS decrease of 11% Peer median decrease of 24% 6 th out of 24 peer banks Peer median decrease of 72% 7 th out of top 50 banks Nine months ended 9-30-08 EPS decrease of 17% Peer median decrease of 18% 12 th out of 24 peer banks Top 50 median decrease of 44% 12
Slide 24: Peer Group
Peer Group International Bancshares Corporation Old National Bancorp South Financial Group, Inc. Susquehanna Bancshares, Inc. TCF Financial Corporation Trustmark Corporation UMB Financial Corporation United Bankshares, Inc. Valley National Bancorp Whitney Holding Corporation Wilmington Trust Corpora
Slide 25: Income Statement Summary (Nine Months Ended September 30th)
Income Statement Summary (Nine Months Ended September 30 th ) $ % (dollars in thousands) Net Interest Income 391,810 $ 365,090 $ 26,720 $ 7% Loan Loss Provision (54,630) (8,260) (46,370) 561% Other Income 116,440 110,540 5,900 5% Credit Card Sale Gain 13,910 - 13,910 nm Securities Gains (29,900) 2,2
Slide 26: Income Statement Summary (Nine Months Ended September 30th)
Income Statement Summary (Nine Months Ended September 30 th ) $ % (dollars in thousands) Net Interest Income 391,810 $ 365,090 $ 26,720 $ 7% Loan Loss Provision (54,630) (8,260) (46,370) 561% Other Income 116,440 110,540 5,900 5% Credit Card Sale Gain 13,910 - 13,910 nm Securities Gains (29,900) 2,2
Slide 27: Income Statement Summary (Nine Months Ended September 30th)
Income Statement Summary (Nine Months Ended September 30 th ) $ % (dollars in thousands) Net Interest Income 391,810 $ 365,090 $ 26,720 $ 7% Loan Loss Provision (54,630) (8,260) (46,370) 561% Other Income 116,440 110,540 5,900 5% Credit Card Sale Gain 13,910 - 13,910 nm Securities Gains (29,900) 2,2
Slide 28: Income Statement Summary (Nine Months Ended September 30th)
Income Statement Summary (Nine Months Ended September 30 th ) $ % (dollars in thousands) Net Interest Income 391,810 $ 365,090 $ 26,720 $ 7% Loan Loss Provision (54,630) (8,260) (46,370) 561% Other Income 116,440 110,540 5,900 5% Credit Card Sale Gain 13,910 - 13,910 nm Securities Gains (29,900) 2,2
Slide 29: Income Statement Summary (Nine Months Ended September 30th)
Income Statement Summary (Nine Months Ended September 30 th ) $ % (dollars in thousands) Net Interest Income 391,810 $ 365,090 $ 26,720 $ 7% Loan Loss Provision (54,630) (8,260) (46,370) 561% Other Income 116,440 110,540 5,900 5% Credit Card Sale Gain 13,910 - 13,910 nm Securities Gains (29,900) 2,2
Slide 30: Income Statement Summary (Nine Months Ended September 30th)
Income Statement Summary (Nine Months Ended September 30 th ) $ % (dollars in thousands) Net Interest Income 391,810 $ 365,090 $ 26,720 $ 7% Loan Loss Provision (54,630) (8,260) (46,370) 561% Other Income 116,440 110,540 5,900 5% Credit Card Sale Gain 13,910 - 13,910 nm Securities Gains (29,900) 2,2
Slide 31: Income Statement Summary (Nine Months Ended September 30th)
Income Statement Summary (Nine Months Ended September 30 th ) $ % (dollars in thousands) Net Interest Income 391,810 $ 365,090 $ 26,720 $ 7% Loan Loss Provision (54,630) (8,260) (46,370) 561% Other Income 116,440 110,540 5,900 5% Credit Card Sale Gain 13,910 - 13,910 nm Securities Gains (29,900) 2,2
Slide 32: Average Loans (Nine Months Ended September 30th)
Average Loans (Nine Months Ended September 30th) $ % (dollars in millions) Commercial 3,510 $ 3,160 $ $ 11% Comm'l Mort 3,690 3,300 12% Resid Mort 23% Home Equity 1,570 1,440 9% Construction 1,300 1,390 (90) -6% Cons./Other (100) -17% Total Loans 11,470 $ 10,620 $ 8%
Slide 33: Average Loans (Linked Quarter)
Average Loans (Linked Quarter) 3rd Q 08 2nd Q 08 $ % (dollars in millions) Commercial 3,560 $ 3,510 $ $ 1% Comm'l Mort 3,820 3,700 3% Resid Mort 7% Home Equity 1,620 1,570 3% Construction 1,290 1,290 - 0% Cons./Other - 0% Total Loans 11,700 $ 11,420 $ 2%
Slide 34: Net Interest Margin
Net Interest Margin 3.69 3.65 3.32 3.25 3.50 3.75 4.00 4.25 4.50 4.75 FFC Peer Top 50
Slide 35: Net Charge-Offs To Loans
Net Charge-Offs To Loans 0.52 0.75 0.29 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 FFC Peer Top 50
Slide 36: Investment Portfolio (as of 09/30/08)
Investment Portfolio (as of 09/30/08) (in millions) Mortgage-backed securities 1,193.4 $ Collateralized mortgage obligations 521.5 Municipal bonds 511.6 Corporate debt securities 170.1 Auction rate securities 157.0 FHLB and FRB stock 106.1 U.S. Treasuries and agencies 90.2 Bank stocks 55.5 Other inv
Slide 37: Efficiency Ratio
Efficiency Ratio 56.2 60.5 61.5 50.0 52.0 54.0 56.0 58.0 60.0 62.0 64.0 FFC Peer Top 50
Slide 38: Other Expense (Nine Months Ended September 30th)
Other Expense (Nine Months Ended September 30 st ) $ % (dollars in thousands) Salaries & Benefits 164,790 $ 164,350 $ $ 0% Occupancy & Equip. 40,910 40,550 1% Operating Risk Loss 19,110 26,460 (7,350) -28% Data Proc. & Software 13,810 13,230 4% Marketing 9,520 7,870 1,650 21% Supplies & Postage 8,52
Slide 39: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com
Fulton Financial — B. Riley & Co. New York Bank Conference 2008 on 6ix