Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Investor Presentation (June 2022)
27 slides from Fulton Financial's investor presentation, Jun 14, 2022
Slide 1: Fulton Financial Corporation Investor Presentation
FULTON FINANCIAL CORPORATION INVESTOR PRESENTATION Data as of or for the periods ended March 31, 2022 unless otherwise noted
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation may contain forward-looking statements with respect to the financial condition, results of operations and business of Fulton Financial Corporation (the “Corporation”). Do not unduly rely on forward-looking statements. Forward-looking statements can be i
Slide 3: Deep Executive Bench With Continuity; Compelling Markets and Opportunities
Deep Executive Bench With Continuity; Compelling Markets and Opportunities 3 (1) Includes years of service in public accounting and investment banking as a financial services industry specialist. (2) Includes years of service in public accounting as a financial services industry specialist. Name Pos
Slide 4: A Valuable Franchise, Well Positioned with Strong Liquidity, Solid Capital and Disciplined Credit Culture
4 (1) As of March 31, 2022 (2) Data as of June 30, 2021 per S&P Global Market Intelligence ; Map includes counties with a financial center and/or a loan production office (“LPO”), and incorporated cities in MD and VA with a financial center and/or LPO and removes online only bank deposits. Market ex
Slide 5: Strong Position In Attractive & Stable Markets
Strong Position In Attractive & Stable Markets 5 Note: Data as of June 30, 2021 per S&P Global Market Intelligence; FDIC Summary of Deposits. (1) Median HH Income, 2021 – 2026 Projected Population Change and Projected HH Income Change are weighted by deposits in each MSA. Fulton Financial Corporatio
Slide 6: Extending Footprint Into Fast-Growing Urban Markets
Extending Footprint Into Fast-Growing Urban Markets 6 Philadelphia is a natural fill-in opportunity within our current footprint o Opened 3 financial centers in 2019 o 1 financial center opened in 1Q22 and 1 financial center targeted to open in 1Q23 Philadelphia Market: o The announced acquisiti
Slide 7: Enhanced Suite of Products and Embedded Value from Technology Spending
Enhanced Suite of Products and Embedded Value from Technology Spending Leading Technology Partners Well-positioned to compete in and serve our market • Significant technology spend over previous five years • 30+ FTE’s hired to build out data and analytics capabilities Investment in Best-In-Class Tec
Slide 8: Granular, Well-Diversified Loan Portfolio
Granular, Well-Diversified Loan Portfolio 8 $6.3 $6.5 $6.9 $7.1 $7.3 $4.3 $4.5 $5.5 $5.1 $4.2 $1.5 $1.4 $1.3 $1.1 $1.1 $2.1 $2.4 $2.9 $3.5 $3.9$1.0 $0.9 $1.0 $1.1 $1.1 $0.6 $0.7 $0.7 $0.7 $0.7 4.38% 4.55% 3.63% 3.46% 3.32% 3.00% 3.50% 4.00% 4.50% 5.00% $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $2
Slide 9: Attractive Core Deposit Profile
Attractive Core Deposit Profile 9 Solid growth in core deposits, particularly noninterest-bearing deposits Deposits costs remain at historically low levels Excess liquidity provides the ability to manage deposit costs in a rising rate environment $2.7 $2.9 $2.5 $1.9 $1.7 $4.3 $4.2 $5.7 $7.2 $7
Slide 10: Solid Asset Quality And Reserves
10 Solid Asset Quality And Reserves Commentary Non-Performing Loans (NPLs) & Allowance for Credit Losses (ACL)/Loans ($ in millions) N o n -P e rf o rm in g L o a n s $139.2 $141.2 $147.1 $152.1 $161.0 1.05% 0.97% 1.47% 1.36% 1.32% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% $0.0 $25.0 $50.0 $75.0 $100.0 $1
Slide 11: Prudent Expense Management, Selective Investment In Technology
Prudent Expense Management, Selective Investment In Technology, Coupled with Some Inflationary Headwinds Near Term, Offset by Benefits of Rising Interest Rates 11 ~ $730 million ~ $610 million Historically, the build out of risk and compliance as well as continued investments in technology and inf
Slide 12: Strong Capital Position
12 Strong Capital Position Dividend increased from $0.14 to $0.15 in the first quarter of 2022. Raised $375 million of tier-2 qualifying subordinated debt in Q1 2020 and $200 million in tier-1 qualifying non-cumulative perpetual preferred stock in Q4 2020. The Corporation's board of directors
Slide 13: Recent Financial Performance & Highlights
RECENT FINANCIAL PERFORMANCE & HIGHLIGHTS
Slide 14: Income Statement Summary
(1) ROA is return an average assets determined by dividing net income for the period indicated by average assets, annualized. (2) ROE is return on average shareholders’ equity determined by dividing net income for the period indicated by average shareholders’ equity, annualized. (3) Non-GAAP financi
Slide 15: Net Interest Income And Margin
Net Interest Income And Margin 15 ~ $730 million ~ $610 million (1) Using a 21% federal tax rate and statutory interest expense disallowances. (1)
Slide 16: Asset Quality
Asset Quality 16 ($ IN MILLIONS) (1) The allowance for credit losses (“ACL”) relates specifically to "Loans, net of unearned income" and does not include the ACL related to off-balance-sheet credit exposures. (2) Non-GAAP financial measure. Please refer to the calculation and management's reasons fo
Slide 17: Non-Interest Income
17 Non-Interest Income(1) (1) Excludes investment securities gains.
Slide 18: Non-interest Expense
Non-interest Expense Three months ended March 31, 2022 (percent of total non-interest expense) HH Salaries and Benefits jcoupancy ata Processing and Software Other Outside Services Debt Extinguishment Other 1022 4Q21, Change (dollars in thousands) Salaries and Benefits $84,464 $85,506 ($1,042) Occup
Slide 19: 2022 Outlook
2022 Outlook Net interest income: $690 -$705 million Non-interest income: $225 - $235 million'2) Non-interest expense: $595 - $605 million!) Effective tax rate: 17.0% - 17.5%'4) ) assumes Fed Funds Rate increases of: 50 bps in May 2022, 25 bps in June 2022, 25 bps in July 2022 and 25 bps in Septembe
Slide 20: Appendix
APPENDIX
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation 21 Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-G
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation 22 (dollars in thousands) Mar 31 2016 2017 2018 2019 2020 2021 2022 Efficiency ratio Non-interest expense $489,519 $525,579 $546,104 $567,736 $579,440 $617,830 $145,978 Less : Amortizati on of tax credi t inves tments - (11,028) (11,449) (6,021) (6,126) (6,187) (696) Less : I
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation (dollars in thousands) Three months ended Mar 31 Dec 31 Mar 31 Efficiency ratio 2022 2021 2021 Non-interest expense $145,978 $154,019 $178,384 Less: Amortization of tax credit investments (696) (1,547) (1,531) Less: Intangible amortization (176) (146) (115) Less: Merger-relat
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation 24 (dollars in thousands) Mar 31 2016 2017 2018 2019 2020 2021 2022 Non-interest expense to total average assets Non-interest expense $489,519 $525,579 $546,104 $567,736 $579,440 $617,830 $145,978 Les s: Amortization of ta x credit investments - (11,028) (11,449) (6,021) (6,1
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation 25 (dollars in thousands), except per share data Mar 31 Mar 31 Mar 31 Mar 31 Mar 31 Mar 31 2017 2018 2019 2020 2021 2022 Tangible book value per share Shareholders ' equity $2,154,683 $2,235,493 $2,301,019 $2,285,748 $2,629,655 $2,569,535 Less : Goodwi l l a nd inta ngible a
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation 26 (dollars in thousands)
Slide 27: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION www.fultonbank.com ‘CORPORATION