Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — KBW Bank Conference 2010
49 slides from Fulton Financial's conference presentation, Feb 23, 2010
Slide 1: Fulton Financial Corporation KBW Bank Conference
Fulton Financial Corporation ------------------------------------- KBW Bank Conference February 24-25, 2010 Corporate Presentation Data as of December 31, 2009
Slide 2: Forward-Looking Statement
Forward-Looking Statement n 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
Slide 3: Presentation Outline
Presentation Outline u Corporate Overview u Franchise and Markets u Customer Experience / Satisfaction u Capital u Credit u Financial Performance u Summary
Slide 4: Fulton Financial Profile
Fulton Financial Profile n Mid-Atlantic regional financial holding company n A family of 8 community banks in 5 states n Fulton Financial Advisors n Fulton Mortgage Company n 270 community banking offices n Asset size: $ 16.6 billion n 3950 Team Members n Market capitalization: $ 1.6 billion n Book
Slide 5: A Valuable Geographic Franchise
A Valuable Geographic Franchise
Slide 6: FDIC Market Share 6/30/09
FDIC Market Share 6/30/09 n Market share increased in 36 out of 53 counties served across our five-state footprint n Market share increased in 27 of the 31 counties served in Pennsylvania, Maryland and Delaware.
Slide 7: Superior Customer Experience
Superior Customer Experience Care, Listen, Understand, Deliver
Slide 8: Our Brand
Our Brand COMMUNITY BANKING SMALL BUSINESS HIGH NET WORTH RETAIL BANKING LISTENING IS JUST THE BEGINNING.
Slide 9: Customer Satisfaction Metrics
Customer Satisfaction Metrics Attribute Q1/2009 Q3/2009 Employees are friendly and helpful 9.6 9.6 Bank seems easy to work with 9.5 9.5 Safety and security of a local bank 9.3 9.3 Wait times are brief 9.3 9.3 Wide range of products and services 9.1 9.1 Listens to my needs 9.1 9.1 Convenient branches
Slide 10: Capital
Capital 12/31/09 With CPP Without CPP GAAP Capital $1.94 billion $1.57 billion Total Risk-Based Capital $1.90 billion $1.52 billion With CPP Without CPP Total Risk-Based Capital 14.70% 11.80% Tier 1 Risk-Based Capital 11.90% 9.00% Leverage Capital 9.70% 7.30% Tangible Common Equity 6.30% 6.30% Tangi
Slide 11: Loan Distribution by State (Fourth Quarter)
Loan Distribution by State (Fourth Quarter) Average % of v. 08 % Balance Total Growth Growth Pennsylvania 6,576,000 $ 54.8% 178,000 $ 3% New Jersey 2,483,000 20.7% 15,000 1% Maryland 1,504,000 12.5% (99,000) -6% Virginia 1,099,000 9.2% (40,000) -4% Delaware 338,000 2.8% (14,000) -4% 12,000,000 $
Slide 12: Summary of Larger Loans
Summary of Larger Loans n 54 relationships with commitments to lend of $20 million or more n Maximum individual commitment- $33 million n Maximum commitment land development- $25 million n Maximum commitment any one development project- $15 million n Average commercial lending relationship size is $
Slide 13: 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 Corpor
Slide 14: Net Charge-Offs To Average Loans
Net Charge-Offs To Average Loans 0.94 1.24 1.88 0.00 0.50 1.00 1.50 2.00 FFC Peer Top
Slide 15: Net Charge-offs (Q4 2009)
Net Charge-offs (Q4 2009) Comm'l Res. Mtg. (in thousands) Pennsylvania 2,974 $ $ 1,828 $ $ $ 6,273 $ Maryland 2,326 - 4,627 1,028 8,502 New Jersey 3,741 1,155 1,587 1,083 7,610 Virginia 3,133 1,581 6,312 Delaware Avg Loans 3,714,000 4,240,000 1,018,000 2,571,000 446,000 11,989,000 NCO % 1.08% 0.19%
Slide 16: Net Charge-offs (YTD December 2009)
Net Charge-offs (YTD December 2009) Comm'l Res. Mtg. (in thousands) Pennsylvania 5,992 $ 3,949 $ 6,071 $ 1,848 $ 5,861 $ 23,721 $ Maryland 3,935 2,684 21,035 1,093 2,406 31,153 New Jersey 12,421 7,509 7,660 2,616 30,473 Virginia 10,384 8,949 3,456 1,606 24,620 Delaware Avg Loans 3,674,000 4,135,000
Slide 17: Non-performing Loans to Loans
Non-performing Loans to Loans 2.35 2.37 5.20 0.00 1.00 2.00 3.00 4.00 5.00 6.00 FFC Peer Top
Slide 18: Non-performing Loans (December 31, 2009)
Non-performing Loans* (December 31, 2009) Comm'l Res. Mtg. (in thousands) Pennsylvania 30,895 $ 21,525 $ 14,186 $ 12,595 $ 4,255 $ 83,456 $ Maryland 9,138 2,015 39,764 4,277 1,766 56,960 New Jersey 15,571 32,182 20,207 8,534 3,654 80,148 Virginia 13,684 2,981 18,684 16,714 1,773 53,836 Delaware End
Slide 19: Loan Delinquency (Key Sectors)
Loan Delinquency (Key Sectors) Category Total (%) 12/31/08 90-Days 12/31/08 Total (%) 12/31/09 90-Days 12/31/09 Commercial Loans 1.65 1.08 2.51 1.88 Consumer Direct 1.20 .45 1.72 .66 Commercial Mortgage 1.78 1.03 2.33 1.42 Residential Mortgage 6.45 2.70 8.43 4.66 Construction 8.21 6.15 10.13 9.43 To
Slide 20: Residential Mortgage and HE Loans
Residential Mortgage and HE Loans Q4 % of Avg. Bal. Total Pennsylvania 1,308,000 $ 50.9% New Jersey 450,000 17.5% Maryland 446,000 17.4% Virginia 215,000 8.4% Delaware 151,000 5.9% 2,570,000 $
Slide 21: Commercial Loans by Industry
Commercial Loans by Industry Manufacturing 12.9 RE - - Rental and Leasing 12.6 Construction 11.0 Agriculture 8.9 Retail 8.5 Wholesale 7.3 Health Care 6.7 Other 5.5 Financial Services 3.0 Arts and Entertainment 3.0 Transportation
Slide 22: C&I Loans by State (December 31, 2009)
C&I Loans by State (December 31, 2009) Ending % of NPL Allowance Balance Total Balance Allocations Pennsylvania 2,447,000 $ 66.2% 30,900 $ 58,790 $ New Jersey 560,000 15.1% 15,570 13,960 Maryland 371,000 10.0% 9,140 6,980 Virginia 289,000 7.8% 13,680 14,540 Delaware 32,000 0.9% 2,630 3,699,000 $ 69,
Slide 23: Construction Loans (December 31, 2009)
Construction Loans (December 31, 2009) Ending % of NPL Allowance Pennsylvania 291,000 $ 29.8% 14,190 $ 16,010 $ Maryland 250,000 25.6% 39,760 28,720 Virginia 243,000 24.8% 18,680 15,340 New Jersey 179,000 18.3% 20,210 7,180 Delaware
Slide 24: Construction Loans by Type
Construction Loans by Type Ending % of Balance Total Commercial Residential 663,000 $ 67.8% Commercial 238,000 24.3% Real Estate 62,000 6.3% Other Commercial 15,000 1.5% 978,000 $
Slide 25: CRE Loans by State (December 31, 2009)
CRE Loans by State (December 31, 2009) Ending % of NPL Allowance Balance Total Balance Allocations Pennsylvania 2,247,000 $ 52.4% 21,530 $ 12,450 $ New Jersey 1,208,000 28.1% 32,180 10,600 Maryland 382,000 8.9% 2,010 3,310 Virginia 329,000 7.7% 2,980 4,260 Delaware 126,000 2.9% 2,350 1,640 4,292,000
Slide 26: Shared National Credits
Shared National Credits Ending Commercial / Industrial 119,470 $ Commercial Real Estate Total Outstanding Delinquency: 5.5%
Slide 27: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION
Slide 28: 2009 Financial Results (Q4 vs. Q3 2009)
2009 Financial Results (Q4 vs. Q3 2009) Net income 24,380,000 $ 23,345,000 $ Cost of preferred stock Net income available Earnings per share 0.11 $ 0.10 $ Return on tangible equity 7.96% 7.91%
Slide 29: Income Statement Summary (Q4 vs. Q3 2009)
Income Statement Summary (Q4 vs. Q3 2009) Net Interest Income 136,090 $ 132,800 $ 3,290 $ 2% Loan Loss Provision (45,020) (45,000) (20) 0% Other Income 41,160 41,230 (70) 0% Securities Losses (1,870) (50) (1,820) n/m Pre-Tax Income 29,990 29,170 3% n/m = not meaningful
Slide 30: 2009 Financial Results (YTD December)
2009 Financial Results (YTD December) Net income (loss) 73,920,000 $ (5,620,000) $ Cost of preferred stock Net income (loss) available Earnings per share 0.31 $ (0.03) $ Return on tangible equity 5.96% 9.33%
Slide 31: Pre-Tax Income Summary (YTD December)
Pre-Tax Income Summary (YTD December) $ % Net Interest Income 520,950 $ 524,150 $ (3,200) $ -1% Other Income 171,680 155,390 16,290 10% Other Expenses (400,230) (386,820) (13,410) 3% Pre-Tax Income Before LLP, Sec Gains (Losses) and unusual items 292,400 292,720 (320) 0% Loan Loss Provision (190,020
Slide 32: Net Interest Margin Trend
Net Interest Margin Trend 3.67 3.64 3.47 3.00 3.25 3.50 3.75 4.00 FFC Peer Top
Slide 33: Interest Rate Shocks (12/31/09)
Interest Rate Shocks (12/31/09) month cumulative gap - 1.07 Rate Change NII Change (Annual) % Change +300 bp + $ 58.2 million + 10.0% +200 bp + $ 37.1 million + 6.4% +100 bp + $ 12.3 million + 2.1% - 100 bp - $ 6.1 million - 1.0%
Slide 34: Average Loans (Q4 vs. Q3 2009)
Average Loans (Q4 vs. Q3 2009) Q4 Q3 $ % (dollars in millions) Comm'l Mort 4,240 $ 4,160 $ $ 2% Commercial 3,710 3,670 1% Home Equity 1,650 1,650 - 0% Construction 1,020 1,050 (30) -3% Resid Mort - 0% Cons./Other (10) -2% Total Loans 11,990 $ 11,910 $ $ 1%
Slide 35: Average Loans (YTD December)
Average Loans (YTD December) $ % (dollars in millions) Comm'l Mort 4,140 $ 3,750 $ $ 10% Commercial 3,670 3,520 4% Home Equity 1,670 1,600 4% Construction 1,110 1,320 (210) -16% Resid Mort 2% Cons./Other (40) -8% Total Loans 11,980 $ 11,600 $ $ 3%
Slide 36: Average Deposits (Q4 vs. Q3 2009)
Average Deposits (Q4 vs. Q3 2009) Q4 Q3 $ % (dollars in millions) Nonint DDA 1,990 $ 1,920 $ $ 4% Int DDA 1,970 1,880 5% Savings/MMDA 2,770 2,560 8% CD's 5,420 5,560 (140) -3% Cash Management 2% Total Deposits 12,670 $ 12,430 $ $ 2%
Slide 37: Average Deposits (YTD December)
Average Deposits (YTD December) $ % (dollars in millions) Nonint DDA 1,850 $ 1,650 $ $ 12% Int DDA 1,860 1,710 9% Savings/MMDA 2,420 2,150 13% CD's 5,510 4,500 1,010 22% Cash Management (140) -21% Total Deposits 12,180 $ 10,690 $ 1,490 $ 14%
Slide 38: Other Borrowings (YTD December)
Other Borrowings (YTD December) $ % (dollars in millions) Federal Funds $ 1,330 $ (880) $ -66% FHLB Advances 1,330 1,440 (110) -8% Other LT Debt - 0% Other ST Borrowings (280) -85% Total Borrowings 2,210 $ 3,480 $ (1,270) $ -36%
Slide 39: Other Income
Other Income $0 $40 $80 $120 $160 $200 Millions
Slide 40: Other Income (Q4 vs. Q3 2009)
Other Income (Q4 vs. Q3 2009) (dollars in thousands) Overdraft & NSF Fees 9,390 $ 9,340 $ $ 1% Invt Mgt & Trust 8,110 8,190 (80) -1% Mort. Sales Gains 3,880 2,780 1,100 40% Service Charges 3,320 3,340 (20) -1% Debit Card Fees 3,030 2,870 6% Cash Mgt Fees 2,460 2,650 (190) -7% Merchant Fees 1,830 2,1
Slide 41: Other Income (YTD December)
Other Income (YTD December) (dollars in thousands) Overdraft & NSF Fees 35,960 $ 35,320 $ $ 2% Invt Mgt & Trust 32,080 32,730 (650) -2% Mort. Sales Gains 22,640 10,330 12,310 119% Service Charges 13,090 13,040 0% Cash Mgt Fees 11,400 13,270 (1,870) -14% Debit Card Fees 11,090 9,800 1,290 13% Merchan
Slide 42: Efficiency Ratio
Efficiency Ratio 57.7 63.2 63.1 50.0 52.0 54.0 56.0 58.0 60.0 62.0 64.0 FFC Peer Top
Slide 43: Other Expense (Q4 vs. Q3 2009)
Other Expense (Q4 vs. Q3 2009) (dollars in thousands) Salaries & Benefits 53,620 $ 54,080 $ (460) $ -1% Occupancy & Equip. 13,770 13,450 2% FDIC Insurance 4,840 5,240 (400) -8% Data Proc. & Software 3,890 4,740 (850) -18% Supplies & Postage 2,740 2,820 (80) -3% Marketing 2,640 1,980 33% Legal & Audi
Slide 44: Other Expense (YTD December)
Other Expense (YTD December) (dollars in thousands) Salaries & Benefits 218,810 $ 213,560 $ 5,250 $ 2% Occupancy & Equip. 54,860 55,570 (710) -1% FDIC Insurance 26,580 4,560 22,020 483% Data Proc. & Software 17,860 18,550 (690) -4% Supplies & Postage 10,930 11,240 (310) -3% Legal & Audit 9,100 7,620
Slide 45: Investment Portfolio (December 31, 2009)
Investment Portfolio (December 31, 2009) ENDING MODIFIED BALANCE DURATION (in millions) Agency mortgage-backed securities 1,045.0 $ 3.14 Agency collateralized mortgage obligations 1,102.2 2.64 Municipal bonds 400.7 4.43 Auction rate securities 292.1 3.95 Corporate & trust preferred securities 150.8
Slide 46: Overview of Fourth Quarter - 2009
Overview of Fourth Quarter - 2009 n Continued core deposit growth n Strong funding and liquidity positions n Good NIM expansion n Stabilization of credit quality metrics n No increase to provision linked quarter n Further decline in construction exposure n Net charge-offs up slightly n Strong mortga
Slide 47: Status of the Corporation
Status of the Corporation n Strong capital position n Credit quality metrics stabilized n Focus on profitable organic growth n Positioned for economic rebound n Current loan loss reserve levels believed to be adequate n Proactive management of problem credits n Valuable 5-state franchise / strong in
Slide 48: Strategies for Future Growth
Strategies for Future Growth n Superior customer experience n Core deposit growth / segmentation n Increase market share n Promotional opportunities n Expense control n Leverage community banking presence and brand n Grow non-interest income n Branch expansion / select markets
Slide 49: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com