Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Investor Presentation (September 2022)
29 slides from Fulton Financial's investor presentation, Sep 2, 2022
Slide 1: Investor Presentation
z INVESTOR PRESENTATION Data as of or for the period ended June 30, 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: Deep Executive Bench With Continuity; Compelling Markets and Opportunities
Deep Executive Bench With Continuity; Compelling Markets and Opportunities 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. Name Pos
Slide 4: A Valuable Franchise, Well Positioned with Strong Liquidity, Solid Capital and Disciplined Credit Culture
4 (1) As of June 30, 2022 (2) Data as of June 30, 2021, 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 August 16, 2022 (4) Non-GAAP based financial measure. Please refer to the calculation a
Slide 5: Strong Position In Attractive & Stable Markets
Strong Position In Attractive & Stable Markets 5 Note: Data as of June 30, 2021 per S&P Global Market Intelligence; FDIC Summary of Deposits. (1) Median HH Income, 2021 – 2026 Projected Population Change and Projected HH Income Change are weighted by deposits in each MSA. Fulton Financial Corporatio
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 prior five years • 30+ full-time equivalent employees hired to build out data and analytics capabilities Investmen
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 2021 and the six months ended June 30, 2022. (1) Presented on a fully-taxable equivalent (“FTE”) basis using a 21% federal tax rate and statutory in
Slide 9: Attractive Core Deposit Profile
Attractive Core Deposit Profile 9 Leveling off of YTD deposit balances, however non-interest bearing transaction accounts continue to grow Deposit costs have likely bottomed and remain at historic lows Deposit pricing remains at the forefront of our disciplined process Note: Deposit compositio
Slide 10: Solid Asset Quality And Reserves
$139.2 $141.2 $147.1 $152.1 $173.5 1.05% 0.97% 1.47% 1.36% 1.31% 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 $175.0 2018 2019 2020 2021 Q2-2022 NPLs ACL/Loans 10 Solid Asset Quality And Reserves ($ in millions) N o n -P e rf o rm in g L o a n s Growth in allowan
Slide 11: Prudent Expense Management, Selective Investment in Technology
Prudent Expense Management, Selective Investment in Technology, Coupled with Some Inflationary Headwinds Near Term, Offset by Benefits of Rising Interest Rates 11 ~ $730 million ~ $610 million The build out of risk and compliance as well as continued investments in technology and infrastructure we
Slide 12: Strong Capital Position
12 Strong Capital Position Dividend increased from $0.14 quarterly in 2021 to $0.15 in the first and second quarters of 2022 The Corporation's board of directors approved the repurchase of up to $75 million of shares of the Corporation's common stock, or approximately 2.7% of the Corporation's o
Slide 13: Environmental, Social, Governance
13 Environmental, Social, Governance • Introduced our 2021 Corporate Social Responsibility report – a first for Fulton • Established Board governance and oversight of ESG principles and priorities as we work to build maturity and capability • The Climate Impact Working Group was formed in early 2022
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 slide 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
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.
Slide 19: Non-interest Expense
19 Non-interest Expense(1) (1) Excludes merger-related expenses.
Slide 20: 2022 Outlook
2022 Outlook(>) Net interest income: $745 -$760 million” Non-interest income: $220 - $230 million” Non-interest expense: $600 - $610 million® Effective tax rate: 18.0% +/- " Assumes Fed Funds Rate increases of: 75 bps in July 2022, 25 bps in September 2022 and 25 bps in December 2022. Updated as of
Slide 21: Appendix
APPENDIX
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation 22 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 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation (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-relat
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation 24 (dollars in thousands) Jun 30 2016 2017 2018 2019 2020 2021 2022 Efficiency ratio Non-interest expense $489,519 $525,579 $546,104 $567,736 $579,440 $617,830 $295,708 Less : Amortizati on of tax credi t investments - (11,028) (11,449) (6,021) (6,126) (6,187) (1,391) Less :
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation (dollars in thousands) R : ic cane seccety merger-related expenses Net income available to common shareholders Plus: Merger-related expenses, net of tax ‘Net income available to common shareholders (numerator) Average shareholders’ equity Less: Average preferred stock Retum o
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation 26 (dollars in thousands) Jun 30 2016 2017 2018 2019 2020 2021 2022 Non-interest expense to total average assets Non-interest expense $489,519 $525,579 $546,104 $567,736 $579,440 $617,830 $295,708 Les s: Amortization of tax credit i nvestments - (11,028) (11,449) (6,021) (6,1
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation 27 (dollars in thousands), except per share data Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 2017 2018 2019 2020 2021 2022 Tangible book value per share Shareholders ' equity $2,191,770 $2,245,785 $2,308,798 $2,340,501 $2,692,958 $2,471,093 Less : Goodwi l l and inta ngi bl e a
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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