Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Shareholder Meeting (April 2013)
88 slides from Fulton Financial's shareholder meeting presentation, Apr 29, 2013
Slide 1: Annual Shareholders' Meeting April 29, 2013
ANNUAL SHAREHOLDERS’ MEETING April 29, 2013
Slide 2: Forward-looking statements
Please remember that during today’s program, representatives of Fulton may make forward- looking statements regarding Fulton’s financial condition, results of operations and business. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertaintie
Slide 3: Meeting rules and conduct
3 Cameras, recording devices and cell phones are not permitted to be used in the meeting. The display of placards and/or signs is prohibited. Questions from shareholders should be directed to the Chairperson of the meeting during the Question and Answer period. During the Question and Answer
Slide 4: Phil Wenger, Chairman, President and CEO
‘ Phil Wenger Chairman, President and CEO
Slide 5: Business Meeting agenda and proposals
5 Business Meeting Proposals: • Election of directors • Say on Pay • Amended and Restated Equity and Cash Incentive Compensation Plan • Ratification of appointment of independent auditor Introductions Results of Voting Conclusion of Business Meeting Management Presentation Questions an
Slide 6: Corporate Website
Corporate Website: Services * Quarterly Ea Fourth Quarter En st
Slide 7: Annual Shareholders' Meeting April 29, 2013
ANNUAL SHAREHOLDERS’ MEETING April 29, 2013 7
Slide 8: Board of Directors
8 BOARD OF DIRECTORS
Slide 9: Joe N. Ballard
Joe N. Ballard
Slide 10: John M. Bond, Jr.
John M. Bond, Jr.
Slide 11: 11
11
Slide 12: Denise L. Devine
Denise L. Devine SSS
Slide 13: Patrick J. Freer
Patrick J. Freer
Slide 14: George W. Hodges
George W. Hodges
Slide 15: Albert Morrison III
Albert Morrison III
Slide 16: R. Scott Smith, Jr.
R. Scott Smith, Jr.
Slide 17: 17
17
Slide 18: 18
18
Slide 19: Recognition of Retiring Directors
19 RECOGNITION OF RETIRING DIRECTORS
Slide 20: Jeffrey G. Albertson
Jeffrey G. Albertson
Slide 21: Donald W. Lesher, Jr.
Donald W. Lesher, Jr.
Slide 22: Rufus A. Fulton, Jr.
Rufus A. Fulton, Jr.
Slide 23: Senior Management
23 SENIOR MANAGEMENT
Slide 24: Charlie Nugent
Charlie Nugent
Slide 25: Jim Shreiner
Jim Shreiner
Slide 26: 26
26
Slide 27: 27
27
Slide 28: Phil Rohrbaugh
Phil Rohrbaugh
Slide 29: Affiliate Chief Executive Officers
29 AFFILIATE CHIEF EXECUTIVE OFFICERS
Slide 30: 30
30
Slide 31: 31
31
Slide 32: Rocco DelVecchio
Rocco DelVecchio
Slide 33: Dave Hanson
Dave Hanson SSS
Slide 34: Bryan Holmes
Bryan Holmes
Slide 35: Curt Myers
Curt Myers
Slide 36: 36
36
Slide 37: Angela Snyder
Angela Snyder
Slide 38: Mike Wimer
Mike Wimer
Slide 39: Report of the Judge of Elections
39 REPORT OF THE JUDGE OF ELECTIONS
Slide 40: Annual Shareholders' Meeting April 29, 2013
ANNUAL SHAREHOLDERS’ MEETING April 29, 2013 40
Slide 41: A Look Back and a Look Ahead
A LOOK BACK AND A LOOK AHEAD Phil Wenger Chairman, President and CEO 41
Slide 42: Solid financial results
Solid financial results: Growth in earnings per share Increased return on assets Growth in core deposit base Increased non-interest income Improved asset quality Reduced provision for credit losses 42
Slide 43: Earnings, Stock and Analysts' Views
EARNINGS, STOCK AND ANALYSTS’ VIEWS 43
Slide 44: 2012 EPS growth vs. peers
44 Actual EPS Rank Company Name State 2012Y 2011Y % Change 1 BancorpSouth, Inc. MS $0.90 $0.45 100.0% 2 Susquehanna Bancshares, Inc. PA $0.77 $0.40 92.5% 3 Associated Banc-Corp WI $1.00 $0.66 51.5% 4 People's United Financial, Inc. CT $0.72 $0.55 30.9% 5 BOK Financial Corporation OK $5.13 $4.17 23.0
Slide 45: Quarterly earnings per share
45 $- $0.05 $0.10 $0.15 $0.20 $0.25 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
Slide 46: Value of $100 investment, FULT vs. peer
46 $97.84 $85.06 $60 $80 $100 $120 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 In ve st m en t V al ue (1 ) FULT Peer (1) Value of an investment of $100.00 made on December 31, 2007 in FULT and the peer group, assuming all dividends were reinvested in such securities over the past 5 years.
Slide 47: Stock price change since 12/31/2012 vs. peers
Closing Price Price Change Since Rank Company Name Ticker State 4/25/2013 12/31/2012 12/31/2012 1 TCF Financial Corporation TCB MN $14.60 $12.15 20.2% 2 FirstMerit Corporation FMER OH $16.87 $14.19 18.9% 3 City National Corporation CYN CA $57.22 $49.52 15.5% 4 Fulton Financial Corporation FULT PA $1
Slide 48: Analyst coverage
Barclays Capital Equal Weight BB&T Buy Boenning & Scattergood Neutral Credit-Suisse Neutral FBR Capital Markets Market Perform Guggenheim Partners Neutral Janney Capital Markets Buy Jeffries & Company Hold Keefe, Bruyette &Woods Market Perform Merion Capital Group Outperform Ra
Slide 49: Median EPS estimates 2013 vs. peers
49 Source: SNL Financial LC Median EPS Estimate Rank Company Name State 2013Y 2012Y % Change 1 Hancock Holding Co. MS $2.50 $1.75 42.9% 2 IBERIABANK Corp. LA $3.25 $2.59 25.5% 3 Susquehanna Bancshares, Inc. PA $0.93 $0.77 20.8% 4 International Bancshares Corporation TX $1.51 $1.39 8.6% 5 People's Un
Slide 50: Increased Return on Average Assets
INCREASED RETURN ON AVERAGE ASSETS 50
Slide 51: Return on Average Assets
Return on Average Assets* Year to date December 31, 2012 0.98% Year to date December 31, 2011 0.90% *Net income divided by average assets. 51
Slide 52: Return on average assets vs. peers
52 0.98% 0.90% 0.92% -0.20% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 2004 2005 2006 2007 2008 2009 2010 2011 2012 FULT Peer Top 50 Source: SNL Financial LC
Slide 53: Growth
GROWTH 53
Slide 54: Loan growth vs. peers
54 2004 2005 2006 2007 2008 2009 2010 2011 2012 0.5% 4.7% 5.4% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% FULT Peer Top 50 Source: SNL Financial LC
Slide 55: Core deposit growth vs. peers
55 2004 2005 2006 2007 2008 2009 2010 2011 2012 6.3% 10.1% 13.1% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% FULT Peer Top 50 * Average total deposits, less average certificates of deposit Source: SNL Financial LC
Slide 56: Deposit composition
56 Note: Deposit composition is based on quarterly average balances for the periods indicated.
Slide 57: Net interest margin vs. peers
57 3.65% 3.41% 3.38% 3.00% 3.20% 3.40% 3.60% 3.80% 4.00% Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 FULT Peer Top 50 * Fully taxable equivalent Source: SNL Financial LC 57
Slide 58: Customer satisfaction survey
86% of customers are “Extremely Satisfied” or “Very Satisfied” with us! 58 This annual survey was conducted by FFC’s Marketing Research Group from January 16 – February 1, 2013. 10,926 customer survey responded to the survey.
Slide 59: Retail and commercial households
Retail households: Up 2.8% Year-end 2011 households: 243,292 Year-end 2012 households: 250,103 Commercial households: Up 2.4% Year-end 2011 households: 65,891 Year-end 2012 households: 67,447 59
Slide 60: Increased Non-Interest Income
INCREASED NON-INTEREST INCOME 60
Slide 61: Non-interest income by year
61 $- $50.0 $100.0 $150.0 $200.0 $250.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Series 1
Slide 62: Improved Asset Quality & Reduced Provision for Credit Losses
IMPROVED ASSET QUALITY & REDUCED PROVISION FOR CREDIT LOSSES 62
Slide 63: Asset quality vs. peers
63 1.52% 1.35% 1.20% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 2004 2005 2006 2007 2008 2009 2010 2011 2012 FULT Peer Top 50 Source: SNL Financial LC
Slide 64: Provision for credit losses by quarter
64 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Series 1 64
Slide 65: Capital
CAPITAL 65
Slide 66: Capital ratio trend
66 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (est)
Slide 67: Risk-based capital ratios vs. well-capitalized
Fulton Financial Well- Capitalized Total Risk-Based Capital Ratio 15.60% 10.00% Tier 1 Risk-Based Capital Ratio 13.40% 6.00% Tier 1 Leverage Ratio 10.95% 5.00% 67
Slide 68: Capital deployment
Reinvesting into profitable business lines Increased quarterly cash dividend twice in 2012 Repurchasing our stock 68
Slide 69: Cash dividend per share and yield
69 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% $- $0.01 $0.02 $0.03 $0.04 $0.05 $0.06 $0.07 $0.08 $0.09 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Cash Dividend per Share Yield Compounded annual growth rate in cash dividend from Q1 09 to Q4 12
Slide 70: Dividend payout ratio vs. peers
70 37.5% 38.3% 25.9% 0.0% 20.0% 40.0% 60.0% 80.0% 2009 2010 2011 2012 FULT Peer Top 50 *Declared dividends per share divided by diluted earnings per share Source: SNL Financial LC 70
Slide 71: Share repurchase programs
71 Two programs authorized: June 2012 and January 2013 2012 Program: Authorized up to 5 million shares through 12/31/12 Purchased 2.1 million shares 2013 Program: Authorized up to 8 million shares through 6/30/12 Purchased 4.5 million shares as of 4/22/2013
Slide 72: Our Operations
OUR OPERATIONS 72
Slide 73: Our Footprint
Our Footprint Pennsylvania \ i The Columbia Bank Bf FNB Bank Bi Fulton Bank Bi Fulton Bank of New Jersey Bi Lafayette Ambassador Bank BF Swineford National Bank New Jersey t Delaware
Slide 74: Fulton at a glance
Asset size: $16.5 billion 267 community banking offices 3,800+ team members Market capitalization: $ 2.1 billion Book value per common share: $10.56 Tangible book value per common share: $7.82* Shares outstanding: 195 million * Tangible book value per common share is a non-GAAP financi
Slide 75: Efficiency ratio vs. peers
75 57.6% 63.0% 63.1% 50.0% 52.0% 54.0% 56.0% 58.0% 60.0% 62.0% 64.0% 66.0% 2005 2006 2007 2008 2009 2010 2011 2012 FULT Peer Top 50 Source: SNL Financial LC 75
Slide 76: Cost savings versus 2012 goal
2012 Goal: $1,214,000 Hard Dollar Savings: $1,900,127 Soft Dollar Savings: $1,080,986 TOTAL: $2,981,113 76
Slide 77: 2012 Paper Recycling/Shredding
2012 Paper Recycling/Shredding 6,234 Trees 22,002 Pounds (of air) Trees Saved Air Pollution Prevented 2,566,865 Gallons Water Saved 1,100 Cubic Yards Landfill Reduction 733,390 Pounds 1,503,450 KW-hours Recycled Paper (office Electricity Saved grade paper) 367 Tons 168,680 Gallons Paper Material Wei
Slide 78: Green building design features
High efficiency heat & air conditioning systems, lighting and lighting controls, and appliances. Low VOC paint and carpet adhesive. Flooring finishes - carpet, vinyl, tile incorporate recycled material. Attractive, efficient use of space Ergonomics factored in when designing space and purc
Slide 79: Customer counts 2010-2012
115,000 120,000 125,000 130,000 135,000 140,000 145,000 150,000 2010 2011 2012 2010 2011 2012 (Customer counts as of December 31) 79
Slide 80: The Future
THE FUTURE 80
Slide 81: Key challenges ahead
Managing our net interest margin Regulatory pressures on our industry Risk management and compliance Expense management 81
Slide 82: Transactions and fee income
Number of transactions (in millions) 0 5 10 15 20 25 30 35 Fee Income (in millions) $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 82 2010 2011 2012 2010 2011 2012
Slide 83: Strategic priorities
Grow our presence and customer base Realize operating efficiencies Benefiting from added risk management and compliance expertise Leveraging new technological capabilities 83
Slide 84: Annual Shareholders' Meeting April 29, 2013
ANNUAL SHAREHOLDERS’ MEETING April 29, 2013 84
Slide 85: Questions and Answers
QUESTIONS AND ANSWERS 85
Slide 86: Annual Shareholders' Meeting April 29, 2013
ANNUAL SHAREHOLDERS’ MEETING April 29, 2013 86
Slide 87: References to Peers
87 References to Peers. Fulton Financial Corporation compares its performance to a group of similar financial holding companies located in the United States selected by Fulton based on asset size, loan distribution, revenue composition, geographic focus, ownership and market capitalization. For co
Slide 88: Annual Shareholders' Meeting April 29, 2013
ANNUAL SHAREHOLDERS’ MEETING April 29, 2013 88