Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q2 2020 Earnings Presentation
16 slides from Fulton Financial's earnings presentation, Jul 22, 2020
Slide 1: 2020 Second Quarter Results
2020 SECOND QUARTER RESULTS NASDAQ: FULT Data as of June 30, 2020 unless otherwise noted
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 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 "m
Slide 3: COVID-19 Impact: Commercial & Consumer
COVID-19 IMPACT: COMMERCIAL & CONSUMER 1. Ending balances are as of June 30, 2020 and based on regulatory classifications. 2. Percentages of total ending loan balances by each category as of July 16, 2020. 3
Slide 4: Loan Portfolio Composition
LOAN PORTFOLIO COMPOSITION (Selected Sectors) 1. Sector non-performing loans to total sector loans. 2. Sector criticized and classified loans to total sector loans. Criticized and classified loans consist of loans that have been assigned a risk rating of less than “pass” under the Corporation’s inte
Slide 5: Detailed Review: Investor Real Estate
DETAILED REVIEW: INVESTOR REAL ESTATE 1. IRE segment non-performing loans to total IRE segment loans. 2. Segment criticized and classified loans to total segment loans. Criticized and classified loans consist of loans that have been assigned a risk rating of less than “pass” under the Corporation’s
Slide 6: Income Statement Summary
INCOME STATEMENT SUMMARY Change From 2Q20 1Q20 2Q19 (dollars in thousands, except per-share data) Net Interest Income $ 152,754 $ (7,992) $ (11,790) Provision for Credit Losses 19,570 (24,460) 14,545 Non-Interest Income 52,917 (1,681) (1,223) Securities Gains 3,005 2,959 2,829 Non-Interest Expense 1
Slide 7: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Net Interest Income & Net Interest Margin Average Interest-Earning Assets & Yields ($ IN BILLIONS) ($ IN MILLIONS) $20 4.37% 4.25% 5.00% 4.07% 3.97% 3.32% 4.00% $15 $200 4.00% 3.00% $16 $16 $17 $17 $18 $10 2.00% $180 3.75% $5 1.00% $165 $161 $159 $161 $3 $3 $3 $4 $4 $1
Slide 8: Asset Quality
ASSET QUALITY ($ IN MILLIONS) Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans $150 $148 1.50% $50 $44 $145 0.81% $141 1.00% $40 $140 $140 $140 0.90% 0.84% 0.82% $30 $136 0.75% 0.50% $135 $21 $20 $20 $130 0.00% 2Q19 3Q19 4Q19 1Q20 2Q20 $10 $5 $2 NPL NPLs/Loans 2Q19 3Q19 4Q19 1
Slide 9: Non-Interest Income
NON-INTEREST INCOME(1) Three months ended June 30, 2020 (percent of total non-interest income) 2Q20 1Q20 Change (dollars in thousands) n Wealth Management $ 13,407 $ 15,055 $ (1,648) 7% n Mortgage Banking 9,964 6,234 3,730 25% n Consumer Banking 9,138 11,239 (2,101) n Commercial Banking 16,748 18,41
Slide 10: Non-Interest Expense
NON-INTEREST EXPENSE Three months ended June 30, 2020 (percent of total non-interest expense) 2Q20 1Q20 Change 18% (dollars in thousands) n Salaries and Benefits $ 81,012 $ 80,228 $ 784 n Occupancy 13,144 13,486 (342) 2% n Data Processing and Software 12,193 11,645 548 5% n Other Outside Services 7,
Slide 11: Liquidity Position
LIQUIDITY POSITION COMMENTARY AVAILABLE LIQUIDITY • Liquidity remains strong and diverse. • Continue efforts to increase capacity with the FHLB and Federal Reserve. • Sitting on excess cash reserves since mid-March. • Federal Reserve facility for funding of PPP (PPPLF), is available if needed. • Add
Slide 12: Capital Position Remains Strong
CAPITAL POSITION REMAINS STRONG 14.0% 14.0% 12.0% $658 10.0% 9.5% 9.5% $185 $468 8.0% 7.4% $579 6.0% 4.0% 2.0% Tier 1 Leverage Tier 1 Risk Based CE Tier 1 Total Risk Based Regulatory Minimums Excess(2) Suspended share repurchases in Mid-March. Dividend remains at $0.13 quarterly. 1. Regulatory capit
Slide 13: Q3 2020 Outlook
Q3 2020 OUTLOOK All previous guidance for 2020 has been withdrawn due to the impact from COVID-19. At this time, select guidance for the third quarter of 2020 will be provided on the following areas in comparison to second quarter of 2020 actual results, except effective tax rate is the expected ran
Slide 14: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Note: The Corporation has presented the following non-GAAP (Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financia
Slide 15: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Three months ended Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 2020 2020 2019 2019 2019 Asset Quality, excluding PPP Non-performing loans (numerator) $ 139,804 $ 139,938 $ 141,155 $ 135,976 $ 147,716 Loans, net of unearned income $ 18,704,722 $ 17,077,403 $ 16,837,526 $ 16,686,866 $ 1
Slide 16: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Three months ended Jun 30 Mar 31 Jun 30 Efficiency ratio 2020 2020 2019 Non-interest expense $ 143,006 $ 142,552 $ 144,168 Less: Prepayment penalty of FHLB advances (2,878) — — Less: Amortization of tax credit investments (1,450) (1,450) (1,492) Less: Intangible amortization