Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q2 2022 Earnings Presentation
12 slides from Fulton Financial's earnings presentation, Jul 19, 2022
Slide 1: Second Quarter 2022 Results
SECOND QUARTER 2022 RESULTS NASDAQ: FULT Data as of or for the period ended June 30, 2022 unless otherwise noted
Slide 2: Forward-looking statements disclaimer
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 "may," "should," "will," "cou
Slide 3: Income Statement Summary
(1) Non-GAAP 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. INCOME STATEMENT SUMMARY 3 2Q22 1Q22 2Q21 (dollars in thousands, except per-share data) Net Interest Income $
Slide 4: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Net Interest Income & Net Interest Margin Average Interest-Earning Assets & Yields Average Deposits and Borrowings & Cost of Funds ($ IN MILLIONS) ($ IN BILLIONS) ($ IN BILLIONS) 4 $22 $22 $22 $21 $22 $1 $1 $1 $1 $1 0.25% 0.22% 0.21% 0.21% 0.20% 0.15% 0.12% 0.11% 0.11%
Slide 5: Asset Quality
ASSET QUALITY ($ IN MILLIONS) Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans Net Charge-offs (NCOs) and NCOs to Average Loans ACL(1) to NPLs & Loans 51. The allowance for credit losses (“ACL”) relates specifically to "Loans, net of unearned income" and does not include the A
Slide 6: Non-Interest Income
NON-INTEREST INCOME(1) (1) Excluding investment securities gains Three months ended June 30, 2022 (percent of total non-interest income) 6 Non-interest income increased 6% from 1Q22(1) Increases in: n Commercial banking primarily due to a increase in customer interest rate swap fee income and mercha
Slide 7: Non-Interest Expense
NON-INTEREST EXPENSE(1) Three months ended June 30, 2022 (percent of total non-interest expense) 7 57% 9% 10% 6% 18% Salaries and Benefits Occupancy Data Processing and Software Other Outside Services Other 2Q22 1Q22 Change (dollars in thousands) n Salaries and Benefits $85,404 $84,464 $940 n Data P
Slide 8: Capital Position Remains Strong
CAPITAL POSITION REMAINS STRONG(1) 8 1. Regulatory capital ratios and excess capital amounts as of June 30, 2022 are preliminary. 2. Excesses shown are to regulatory minimums, including the 250 basis point capital conservation buffer, except for Tier 1 Leverage which is the well-capitalized minimum.
Slide 9: 2022 Outlook
2022 OUTLOOK(5) 9 Net interest income: $745 - $760 million(1) Non-interest income: $220 - $230 million(2) Non-interest expense: $600 - $610 million(3) Effective tax rate: 18.0% +/-(4) (1) Assumes Fed Funds Rate increases of: 75 bps in July 2022, 25 bps in September 2022 and 25 bps in December 2022.
Slide 10: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 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-GAAP
Slide 11: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 11 Three months ended June 30 Mar 31 Jun 30 Return on average common shareholders' equity (tangible) 2022 2022 2021 Net income available to common shareholders $67,427 $61,726 $62,402 Plus: Merger-related expenses, net of tax 811 317 — Plus: Intangible amortization, net of ta
Slide 12: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 12 (dollars in thousands) Three months ended June 30 Mar 31 Jun 30 Efficiency ratio 2022 2022 2021 Non-interest expense $149,730 $145,978 $140,831 Less: Amortization of tax credit investments (696) (696) (1,563) Less: Intangible amortization (177) (176) (178) Less: Merger-rel