Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q4 2019 Earnings Presentation
15 slides from Fulton Financial's earnings presentation, Jan 21, 2020
Slide 1: 2019 and Fourth Quarter Results
2019 AND FOURTH QUARTER RESULTS NASDAQ: FULT Data as of December 31, 2019 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: 2019 Highlights
2019 HIGHLIGHTS Net income of $233 million, or $1.39 per share. Key Accomplishments Termination of remaining BSA/AML regulatory orders Successful consolidation of affiliate banks into Fulton Bank, N.A. Continuation of organic growth into fast growing urban markets Record year of revenues and
Slide 4: Quarter Highlights: 4Q19 vs 3Q19
QUARTER HIGHLIGHTS: 4Q19 vs 3Q19 Net income per diluted share: $0.33 in 4Q19, 11% decrease from 3Q19 Loan Growth: 2% increase in average balances driven by C&I, commercial and residential mortgages and construction. Deposit Growth: 3% increase in average balances, largely driven by interest bearing
Slide 5: Quarter Highlights: 4Q19 vs 4Q18
QUARTER HIGHLIGHTS: 4Q19 vs 4Q18 Net income per diluted share: $0.33 in 4Q19, unchanged from 4Q18 Loan Growth: 5% increase in average balances with growth in all categories, except for home equity. Deposit Growth: 6% increase in average balances with growth in all categories. Net Interest Income & M
Slide 6: Income Statement Summary – Year to Date
INCOME STATEMENT SUMMARY – YEAR TO DATE Year Ended Dec 31, 2019 2018 Change (dollars in thousands, except per-share data) Net Interest Income $ 648,389 $ 630,456 $ 17,933 Provision for Credit Losses 24,825 46,907 (22,082) Non-Interest Income 211,427 195,488 15,939 Securities Gains 4,733 37 4,696 Non
Slide 7: Income Statement Summary – Quarter to Date
INCOME STATEMENT SUMMARY – QUARTER TO DATE Change from 4Q19 3Q19 4Q18 (dollars in thousands, except per-share data) Net Interest Income $ 159,270 $ (1,990) $ (3,674) Provision for Credit Losses 12,530 10,360 4,330 Non-Interest Income 55,281 (40) 5,758 Securities Gains - (4,492) - Non-Interest Expens
Slide 8: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Net Interest Income & Net Interest Margin Average Interest-Earning Assets & Yields ($ IN MILLIONS) ($ IN BILLIONS) $20 5.00% $180.0 4.00% 4.00% $15 4.22% 4.35% 4.37% 4.25% 4.07% 3.00% 3.75% $10 $165 $163 $163 $16 $16 $16 $16 $17 2.00% $161 $159 $5 $160.0 3.50% ~ $730 1
Slide 9: Asset Quality – Annual Comparison
ASSET QUALITY – ANNUAL COMPARISON ($ IN MILLIONS) Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans $200 2.00% $50 $47 $161 $160 $140 $132 $135 1.50% $40 $120 $30 1.00% $23 $25 $80 0.96% 0.90% 0.85% 0.86% $20 0.50% $13 $40 $10 $0 0.00% $0 2016 2017 2018 2019 2016 2017 2018 2019
Slide 10: Non-Interest Income
NON-INTEREST INCOME(1) Three months ended December 31, 2019 (percent of total non-interest income) 4Q19 3Q19 Change 7% (in thousands) 9% n Wealth management $ 14,419 $ 13,867 $ 552 22% n Mortgage banking 5,076 6,658 (1,582) n Consumer banking 12,426 13,333 (907) n Commercial banking 19,628 18,284 1,
Slide 11: Non-Interest Expenses
NON-INTEREST EXPENSES Three months ended December 31, 2019 (percent of total non-interest expense) 4Q19 3Q19 Change (in thousands) 21% n Salaries and benefits $ 77,875 $ 78,211 $ (336) n Occupancy 13,080 12,368 712 n Data Processing and software 11,468 11,590 (122) 6% n Other outside services 8,215
Slide 12: Profitability & Capital
PROFITABILITY & CAPITAL ROA(1) ROE and ROE (tangible)(2) 1.40% 16.00% 1.20% 13.19% 1.03% 1.09% 12.09% 1.00% 0.88% 12.00% 10.30% 10.33% 10.09% 0.88% 9.24% 7.69% 7.83% 0.80% 8.00% 0.60% 4.00% 0.40% 0.20% 0.00% 2016 2017 2018 2019 0.00% 2016 2017 2018 2019 ROE ROE (tangible) Tangible Common Equity to T
Slide 13: 2020 Outlook
2020 OUTLOOK • Loans & Deposits: Average annual loan and deposit growth rates in the low to mid single-digits • Net Interest Income: Low single digit growth rate • Net Interest Margin: 3.20% to 3.25% for the full year 2020; assumes a stable yield curve and one 25 bp rate cut in 2Q 2020 • Non-Interes
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 Year Ended Dec 31, 2 0 19 2 0 18 2 0 17 2 0 16 (dollars in thousands) Tangible Common Equity to Tangible Assets (TCE Ratio) Shareholders' equity $ 2,348,474 $ 2,247,573 $ 2,229,857 $ 2,121,115 Less: Intangible assets (535,303) (531,556) (531,556) (531,556) Tangible shareholde