Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Investor Presentation (May 2009)
42 slides from Fulton Financial's investor presentation, May 13, 2009
Slide 1: Fulton Financial Corporation Investor Presentation
Fulton Financial Corporation Investor Presentation May 2009 (Data as of March 31, 2009)
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 Franchise and Markets Capital Credit First Quarter Performance Summary
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 Company 268 community banking offices Asset size: $ 16.5 billion 3900 Team Members Market capitalization: $ 1.2 billion Book value per common
Slide 5: Capital
Capital With CPP Without CPP GAAP Capital $1.86 billion $1.48 billion Total Risk-Based Capital $1.85 billion $1.48 billion Ratios: With CPP Without CPP Total Risk-Based Capital 14.00% 11.10% Tier 1 Risk-Based Capital 11.20% 8.40% Leverage Capital 9.50% 7.10% Tangible Common Equity 5.90% 5.90% Tangib
Slide 6: Superior Customer Experience
Superior Customer Experience Care, Listen, Understand and Deliver
Slide 7: Superior Customer Satisfaction
Superior Customer Satisfaction *Retail: 90% extremely/very satisfied Commercial: 90% extremely/very satisfied * Compared to national average of 63% Source: American Banker/Gallup Consumer Survey
Slide 8: Customers' satisfaction with FFC Attribute Q4/2007 Q4/2008
Customers’ satisfaction with FFC Attribute Q4/2007 Q4/2008 Employees are friendly and helpful 9.6 9.6 Bank seems easy to work with 9.5 9.6 Employees are knowledgeable 9.3 9.4 Wait times are brief 9.2 9.3 Wide range of products and services 9.1 9.3 Listens to my needs 9.1 9.3 Convenient branches and
Slide 9: A Valuable Geographic Franchise
A Valuable Geographic Franchise
Slide 10: Serving PA's Strongest Markets
Serving PA’s Strongest Markets* *Source: SNL, Median HH Income, 2008 data County Rank Branches Projected Population Change 2008-2013 (%) Median HH Income 2008 ($) Projected HH Income Change 2008-2013 (%) Chester, PA 7.96 87,480 22.46 Montgomery, PA 2.34 79,875 22.45 Bucks, PA 3.78 79,610 22.28 Delaw
Slide 11: FFC Affiliates in Affluent Markets
FFC Affiliates in Affluent Markets* *Source: SNL Financial, 2008 County Branches National Ranking Ranking in State Median HH Ranking Hunterdon, NJ #3 #1 $109,245 Morris, NJ #7 #2 $103,406 Somerset, NJ #8 #3 $102,548 Howard, MD #9 #1 $101,251 Montgomery, MD #22 #2 $91,571
Slide 12: Loan Distribution by State (First Quarter)
Loan Distribution by State (First Quarter) Average % of 09 v. 08 % Balance Total Growth Growth (dollars in thousands) Pennsylvania 6,466,000 $ 53.7% 440,000 $ 7% New Jersey 2,496,000 20.7% 186,000 8% Maryland 1,592,000 13.2% 30,000 2% Virginia 1,140,000 9.5% 74,000 7% Delaware 347,000 2.9% 16,000 5%
Slide 13: Residential Mortgage and HE Loans
Residential Mortgage and HE Loans Q1 2009 % of Avg. Bal. Total Pennsylvania 1,375,000 $ 51.8% Maryland 459,000 17.3% New Jersey 459,000 17.3% Virginia 204,000 7.7% Delaware 159,000 6.0% 2,656,000 $ (dollars in thousands)
Slide 14: Commercial Loans by Industry
Commercial Loans by Industry Industry % Services 17.3 Manufacturing 13.4 RE - Rental and Leasing 12.4 Construction 11.2 Agriculture 8.8 Retail 8.8 Wholesale 8.5 Other 6.1 Health Care 5.9 Financial Services 3.1 Transportation 2.4 Arts and Entertainment 2.1 100.0
Slide 15: Commercial Loans by State
Commercial Loans by State Q1 2009 % of Avg. Bal. Total Pennsylvania 2,354,000 $ 63.9% Maryland 444,000 12.1% New Jersey 548,000 14.9% Virginia 306,000 8.3% Delaware 30,000 0.8% 3,682,000 $ (dollars in thousands)
Slide 16: Construction Loans by State (March 31, 2009)
Construction Loans by State (March 31, 2009) Ending % of NPL Specific Balance Total Balance Allocations (dollars in thousands) Pennsylvania 330,000 $ 27.4% 3,910 $ 2,170 $ Maryland 322,000 26.7% 39,760 17,890 New Jersey 242,000 20.1% 20,180 4,660 Virginia 295,000 24.5% 29,570 7,220 Delaware 17,000 1
Slide 17: CRE Loans by State (March 31, 2009)
CRE Loans by State (March 31, 2009) Ending % of NPL Specific Balance Total Balance Allocations (dollars in thousands) Pennsylvania 2,084,000 $ 51.2% 21,110 $ 9,170 $ New Jersey 1,183,000 29.1% 23,490 4,160 Maryland 345,000 8.5% 9,850 Virginia 328,000 8.1% 4,040 1,120 Delaware 128,000 3.1% 1,410 1,43
Slide 18: Loan Delinquency (Key Sectors)
Loan Delinquency (Key Sectors) Category Total (%) 3/31/08 90-Days 3/31/08 Total (%) 3/31/09 90-Days 3/31/09 Commercial Loans 1.48 .99 2.26 1.59 Consumer Direct .77 .33 1.27 0.54 Commercial Mortgage 1.38 .83 1.88 1.27 Residential Mortgage 5.49 3.14 6.88 3.20 Construction 3.30 2.05 8.78 7.65 Total Por
Slide 19: Net Charge-offs (Q1 2009)
Net Charge-offs (Q1 2009) Comm'l Res. Mtg. Comm'l Mortgage Constr. and HE Other Total (in thousands) Pennsylvania $ $ 2,444 $ 2,103 $ $ 5,848 $ Maryland 1,880 7,406 10,054 New Jersey 2,333 1,067 4,599 Virginia 6,782 - 1,584 8,606 Delaware - 9,718 $ 3,950 $ 12,130 $ 3,254 $ 1,022 $ 30,074 $ Avg Loans
Slide 20: Non-performing Loans (March 31, 2009)
Non-performing Loans* (March 31, 2009) Comm'l Res. Mtg. Comm'l Mortgage Constr. and HE Other Total (in thousands) Pennsylvania 19,272 $ 21,107 $ 3,907 $ 5,902 $ 3,984 $ 54,172 $ Maryland 4,297 9,853 39,764 3,076 1,422 58,412 New Jersey 15,374 23,490 20,183 4,277 2,496 65,820 Virginia 11,214 4,037 29
Slide 21: Summary of Larger Loans relationships with commitments to lend
Summary of Larger Loans 52 relationships with commitments to lend of $20 million or more Maximum individual commitment- $33 million Maximum commitment land development- $28 million Average commercial lending relationship size is $ 440,953 Loans and corresponding relationships are within Fulton’s geo
Slide 22: Overview of First Quarter
Overview of First Quarter Strong deposit growth Robust residential mortgage activity Good growth in other income Reduced reliance on wholesale funding Improved efficiency Controllable expenses flat Loan portfolio challenges Margin compression
Slide 23: Fulton Financial Corporation
‘FULTON FINANCIAL ‘CORPORATION
Slide 24: 2009 Financial Results (First Quarter)
2009 Financial Results (First Quarter) Net income 13,080,000 $ 41,500,000 $ Cost of preferred stock (5,030,000) - Net income available to common shareholders 8,050,000 $ 41,500,000 $ Earnings per share 0.05 $ 0.24 $ Return on tangible equity 3.88% 18.45%
Slide 25: Income Statement Summary (First Quarter)
Income Statement Summary (First Quarter) $ % (dollars in thousands) Net Interest Income 124,120 $ 125,900 $ (1,780) $ -1% Loan Loss Provision (50,000) (11,220) (38,780) 346% Other Income 44,000 36,430 7,570 21% Securities Gains 2,920 1,250 1,670 134% Other Expenses (106,390) (96,660) (9,730) 10% Pre
Slide 26: Income Summary Proforma (First Quarter)
Income Summary Proforma (First Quarter) $ % (dollars in thousands) Pre-tax Income 14,650 $ 55,700 $ (41,050) $ -74% Loan Loss Provision 50,000 11,220 38,780 346% Security Gains (2,920) (1,250) (1,670) 134% ARC Charges 6,160 - 6,160 - Proforma 67,890 65,670 2,220 3%
Slide 27: 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 28: Net Interest Margin
Net Interest Margin 3.45 3.45 3.15 3.00 3.50 4.00 4.50 5.00 FFC Peer Top 50
Slide 29: Average Loans
Average Loans $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 Billions Q1 09
Slide 30: Average Deposits
Average Deposits $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 Billions Q1 09
Slide 31: Other Income
Other Income $0 $20 $40 $60 $80 $100 $120 $140 $160 Millions
Slide 32: Other Income (First Quarter)
Other Income (First Quarter) $ % (dollars in thousands) Mort. Sales Gains 8,590 $ 2,310 $ 6,280 $ 272% Overdraft & NSF Fees 8,440 7,690 10% Invt Mgt & Trust 7,900 8,760 (860) -10% Service Charges 3,250 3,040 7% Cash Mgt Fees 3,200 3,230 (30) -1% Success Card Fees 2,440 2,260 8% Credit Card Fees 1,19
Slide 33: Other Income (Linked Quarter)
Other Income (Linked Quarter) Q1 09 Q4 08 $ % (dollars in thousands) Mort. Sales Gains 8,590 $ 3,080 $ 5,510 $ 179% Overdraft & NSF Fees 8,440 9,530 (1,090) -11% Invt Mgt & Trust 7,900 7,540 5% Service Charges 3,250 3,300 (50) -2% Cash Mgt Fees 3,200 3,340 (140) -4% Success Card Fees 2,440 2,460 (20
Slide 34: Efficiency Ratio
Efficiency Ratio 61.0 62.1 62.1 50.0 52.0 54.0 56.0 58.0 60.0 62.0 64.0 FFC Peer Top 50
Slide 35: Other Expense (First Quarter)
Other Expense (First Quarter) $ % (dollars in thousands) Salaries & Benefits 55,320 $ 55,200 $ $ 0% Occupancy & Equip. 14,100 13,970 1% Operating Risk Loss 6,200 1,240 4,960 400% Data Proc. & Software 4,630 4,660 (30) -1% FDIC Insurance 4,290 3,430 399% Supplies & Postage 2,660 2,810 (150) -5% Marke
Slide 36: Other Expense (Linked Quarter)
Other Expense (Linked Quarter) Q1 09 Q4 08 $ % (dollars in thousands) Salaries & Benefits 55,320 $ 48,770 $ 6,550 $ 13% Occupancy & Equip. 14,100 14,660 (560) -4% Operating Risk Loss 6,200 5,200 1,000 19% Data Proc. & Software 4,630 4,740 (110) -2% FDIC Insurance 4,290 1,880 2,410 128% Supplies & Po
Slide 37: Allowance for Credit Losses
Allowance for Credit Losses (dollars in thousands) Beginning Balance 180,140 $ 112,210 $ Loan Loss Provision 50,000 11,220 Net Charge-Offs (30,080) (4,360) Ending Balance 200,060 $ 119,070 $ Allowance to Loans 1.67% 1.05% Nonperforming Assets to Assets 1.63% 0.90% Net Charge-offs to Loans 1.00% 0.15
Slide 38: Net Charge-Offs To Average Loans
Net Charge-Offs To Average Loans 1.00 0.94 1.40 0.00 0.30 0.60 0.90 1.20 1.50 FFC Peer Top 50
Slide 39: Investment Portfolio
Investment Portfolio ENDING MODIFIED BALANCE DURATION (in millions) Agency mortgage-backed securities 1,120.5 $ 4.38 Municipal bonds 513.3 4.15 Agency collateralized mortgage obligations 489.7 4.34 Auction rate securities 208.3 5.14 Corporate & trust preferred securities 152.0 9.98 U.S. Treasuries a
Slide 40: Status of the Corporation
Status of the Corporation Valuable geographic franchise Positive market demographics Strong capital Deposit trends improving Strong mortgage activity Continued expense reduction Positioned for economic rebound
Slide 41: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com
Slide 42: Ol The Bank
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 Pennsylvania Virginia Sigg? “i aul, ‘FULTON FINANCIAL ‘CORPORATION Delaware