Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Investor Presentation (February 2023)
29 slides from Fulton Financial's investor presentation, Feb 15, 2023
Slide 1: Investor Presentation
z INVESTOR PRESENTATION Data as of or for the period ended December 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 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
Slide 3: A Compelling Value in an Attractive Franchise With a Proven Executive Team
A Compelling Value in an Attractive Franchise With a Proven Executive Team 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. Pruden
Slide 4: A Valuable Franchise, Well Positioned with Strong Liquidity, Solid Capital and Disciplined Credit Culture
4 (1) As of December 31, 2022. (2) Data as of June 30, 2022, per S&P Global Market Intelligence; market excludes money center banks and removes online only bank deposits. (3) Shares outstanding and closing price as of February 3, 2022. (4) Non-GAAP based financial measure. Please refer to the calcul
Slide 5: Strong Position In Attractive & Stable Markets
Strong Position In Attractive & Stable Markets 5 Note: Data as of June 30, 2022 per S&P Global Market Intelligence; FDIC Summary of Deposits. (1) Median Household Income, 2022 – 2027 Projected Population Change and Projected HH Income Change are weighted by deposits in each MSA.
Slide 6: Extending Footprint Into Fast-Growing Urban Markets
Extending Footprint Into Fast-Growing Urban Markets 6 Philadelphia remains 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 acquisition of
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 past five years • 30+ full-time equivalent employees hired to build out data and analytics capabilities Investment
Slide 8: Granular, Well-Diversified Loan Portfolio
Granular, Well-Diversified Loan Portfolio 8 Note: Loan portfolio composition is based on average loan balances for the years ended December 31, 2018 to 2022. (1) Presented on a fully-taxable equivalent (“FTE”) basis using a 21% federal tax rate and statutory interest expense disallowances. The C&I c
Slide 9: Attractive Core Deposit Profile
Attractive Core Deposit Profile 9 Total deposits have leveled off including a seasonal inflow and subsequent outflow of municipal deposits as well as Prudential Bank deposits Deposit costs bottomed during the 2nd half of the 2022 and have moved higher in Q3 2022 and Q4 2022 Approximately 1/3 o
Slide 10: Stable Asset Quality And Reserves While Growing Loans
$139.7 $141.2 $147.1 $152.1 $171.9 0.99% 0.97% 1.47% 1.36% 1.33% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% $0.0 $25.0 $50.0 $75.0 $100.0 $125.0 $150.0 $175.0 $200.0 2018 2019 2020 2021 2022 A C L /L o a n s N o n -P e rf o rm in g L o a n s NPLs ACL/Loans 10 Stable Asset Quality And Reserves While Growing
Slide 11: Managing Expenses and Selective Investments To Offset Inflationary Headwinds
Managing Expenses and Selective Investments To Offset Inflationary Headwinds 11 ~ $730 million ~ $610 million Efficiency Ratio(1) Positive operating leverage and recent impact of higher interest rates resulted in a lower efficiency ratio o 2021 reflects the impact of the previously announced cost
Slide 12: Strong Capital Position
12 Strong Capital Position (1) Strong regulatory capital ratios provide strategic flexibility Current common dividend of $0.15 Current repurchase authorization of $100 million of shares of the Corporation's common stock, in place through December 31, 2023 9.5% 10.0% 10.9% 13.6% $1,156 $680 $53
Slide 13: Environmental, Social & Governance (ES&G)
13 Environmental, Social & Governance (“ES&G”) • Introduced our 2021 Corporate Social Responsibility report – a first for the Corporation • Established Board governance and oversight of ES&G principles and priorities as we work to build maturity and capability • The Climate Impact Working Group was
Slide 14: Recent Financial Performance & Highlights
RECENT FINANCIAL PERFORMANCE & HIGHLIGHTS
Slide 15: Income Statement Summary
(1) Non-GAAP financial measure. Please refer to the calculation and management’s reason for using this measure on the slides titled “Non-GAAP Reconciliation” at the end of this presentation. Income Statement Summary 15
Slide 16: Net Interest Income And Margin
Net Interest Income And Margin 16 ~ $730 million ~ $610 million Net Interest Income & Net Interest Margin Average Interest-Earning Assets & Yields Average Deposits and Borrowings & Cost of Funds ($ IN MILLIONS) ($ IN BILLIONS) ($ IN BILLIONS)
Slide 17: Asset Quality
Asset Quality 17 (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 for using this mea
Slide 18: Non-Interest Income
18 Non-Interest Income(1) (1) Excludes investment securities gains. Three months ended December 31, 2022 (percent of total non-interest income)
Slide 19: Non-interest Expense
19 Non-interest Expense(1) (1) Excludes merger-related expenses. Three months ended December 31, 2022 (percent of total non-interest expense)
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 (dollars in thousands) Three months ended Dec 31 Sep 30 Dec 31 2022 2022 2021 Operating return on average assets Net income $81,833 $70,871 $61,887 Plus: Core deposit intangible amortization 514 514 _ Plus: Merger-related expenses 1,894 7,006 — Plus: CECL Day 1 Provision expe
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation (dollars in thousands) Three months ended Dec 31 Sep 30 Dec 31 Efficiency ratio 2022 2022 2021 Non-interest expense $168,462 $169,558 $154,019 Less: Amortization of tax credit investments (696) (696) (1,547) Less: Intangible amortization (688) (690) (146) Less: Merger-related
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation 24 (dollars in thousands) 2016 2017 2018 2019 2020 2021 2022 Efficiency ratio Non-interest expense $489,519 $525,579 $546,104 $567,736 $579,440 $617,830 $633,728 Less : Amortizati on of tax credit i nvestments - (11,028) (11,449) (6,021) (6,126) (6,187) (2,783) Less : Intangi
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended (dollars in thousands) Dec 31 Sep 30 Dec 31 2022 2022 2021 Return on average common shareholders’ equity (tangible) Net income available to common shareholders $79,271 $68,309 $59,325 Plus: Intangible amortization 688 690 146 Plus: CECL Day 1 Provision expe
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation 26 (dollars in thousands) 2016 2017 2018 2019 2020 2021 2022 Operating non-interest expense to total average assets Non-interest expense $489,519 $525,579 $546,104 $567,736 $579,440 $617,830 $633,728 Les s: Amortization of tax credit i nvestments - (11,028) (11,449) (6,021) (
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation 27 (dollars in thousands), except per share data Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 2017 2018 2019 2020 2021 2022 Tangible book value per share Shareholders ' equi ty $2,229,857 $2,247,573 $2,342,176 $2,616,828 $2,712,680 $2,579,757 Less : Goodwi l l and intangible a s
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation 28 (dollars in thousands)
Slide 29: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION www.fultonbank.com FULTON FINANCIAL CORPORATION TE
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