Fulton Financial Corporation · NASDAQ:FULT

Fulton Financial — Investor Presentation (February 2011)

67 slides from Fulton Financial's investor presentation, Feb 8, 2011

  1. Slide 1: Fulton Financial Corporation Investor Presentation

    Fulton Financial Corporation - ------------------------------------- Investor Presentation Data as of December 31, 2010

  2. Slide 2: Forward-Looking Statement

    Forward-Looking Statement n This presentation may contain forward-looking statements about Fulton Financial Corporation’s financial condition, results of operations, business, strategies, products and services. You can identify forward-looking statements by the use of words such as “may”, “should”,

  3. Slide 3: Presentation Outline

    Presentation Outline u Corporate Profile u Overview of Q4 and 2010 u Credit u Capital u Financial Performance u Growth Strategies u Corporate Priorities u Supplemental Credit Data

  4. Slide 4: Fulton Financial Profile (as of 12/31/10)

    Fulton Financial Profile (as of 12/31/10) n Mid-Atlantic regional financial holding company n A family of 7 community banks in 5 states n Fulton Financial Advisors n Fulton Mortgage Company n 272 community banking offices n Asset size: $ 16.3 billion n 3,800 Team Members n Market capitalization: $ 2

  5. Slide 5: A Valuable Geographic Franchise

    A Valuable Geographic Franchise

  6. Slide 6: Superior Customer Experience

    Superior Customer Experience WE WILL CARE, LISTEN, UNDERSTAND, AND DELIVER

  7. Slide 7: Customer Satisfaction Metrics (12/31/10)

    Customer Satisfaction Metrics (12/31/10) n Customers: u Retail 93% u Business 94% u Fulton Mortgage Company 91%

  8. Slide 8: Our Brand

    Our Brand COMMUNITY BANKING SMALL BUSINESS HIGH NET WORTH RETAIL BANKING

  9. Slide 9: Overview of the 4th Quarter

    Overview of the 4th Quarter n EPS of 16 cents, even with Q3 ; 59 cents for 2010, up 90% YOY n Delaware affiliate merged into Fulton Bank n Strong core deposit growth / highly liquid n Continued NIM expansion / change in deposit mix n Slowdown in mortgage banking activity / revenue n Elevated marketi

  10. Slide 10: Overview of the 4th Quarter / Credit

    Overview of the 4 th Quarter / Credit n Reduction in non-performing loans n Reduction in overall delinquency linked quarter n Continued reduction in construction exposure n No increase in provision linked quarter n Well diversified portfolio n Loan balances stable / growth offset runoff and charge o

  11. Slide 11: Summary of Larger Loans (12/31/10)

    Summary of Larger Loans (12/31/10) n 53 relationships with commitments to lend of $20 million or more n Maximum individual commitment: $33 million n Maximum commitment land development: $25 million Ø Maximum commitment any one development project: $15 million n Average commercial lending relationshi

  12. Slide 12: Provision and Non-performing Loans

    Provision and Non-performing Loans Provision NPL’s / Loans ($ in millions)

  13. Slide 13: Loan Delinquency (Key Sectors)

    Loan Delinquency (Key Sectors) Category Total (%) 12/31/10 90-Days 12/31/10 Total (%) 09/30/10 90-Days 09/30/10 Commercial Loans 2.72 2.36 3.08 2.31 Consumer Direct 1.50 0.66 1.54 0.71 Commercial Mortgage 2.69 2.14 2.85 2.29 Residential Mortgage 8.69 5.05 9.19 5.26 Construction 11.47 10.56 12.02 10.

  14. Slide 14: Declining Construction Exposure

    Declining Construction Exposure (7%) (23%) (18%) ($ in millions) Construction Loans / Total Loans 12.2% 10.5% 8.2% 6.7%

  15. Slide 15: Commercial Loans by Industry (12/31/10)

    Commercial Loans by Industry (12/31/10)

  16. Slide 16: Shared National Credits (12/31/10)

    Shared National Credits (12/31/10)

  17. Slide 17: Troubled Debt Restructurings

    Troubled Debt Restructurings eee 12/31/2010 09/30/2010 (in thousands) Residential Mtg $ 37,820 $ 35,380 C&lI/Comm'! Mtg 22,970 20,650 Construction 5,440 5,750 Consumer/other 260 260 $ 66,490 $ 62,040 Note: Excludes non-accrual TDR's FULTON FINANCIAL CORPORATION

  18. Slide 18: Fulton Mortgage Company

    Fulton Mortgage Company n Monitoring mortgage foreclosures and secondary sale put-backs n No material concerns at this time n Decline in overall activity and sale gains linked quarter

  19. Slide 19: Foreclosures / Putbacks

    Foreclosures / Putbacks n 2010 - Servicing Retained u Repurchased $1,235,000. u Current issues 531,660. n 2010 - Servicing Released u Repurchased $ 344,400. u Indemnified 505,700. u Settled in 2010 31,250. u Current issues $1,786,200.

  20. Slide 20: Capital Adequacy (12/31/10)

    Capital Adequacy (12/31/10)

  21. Slide 21: Dodd-Frank Response

    Dodd-Frank Response n Established organizational structure to address each applicable Title n Expect market opportunities with appropriate planning and strategizing n Believe we are in a better position to absorb increased costs than smaller competitors

  22. Slide 22: Fulton Financial Corporation

    FULTON FINANCIAL CORPORATION

  23. Slide 23: Q4 2010 vs Q3 2010 Income Statement

    Q42010 Q32010 $ % (dollars in thousands) Net Interest Income $ 140,890 $ 140,190 $ 700 0% Loan Loss Provision (40,000) (40,000) - 0% Other Income 48,540 51,170 (2,630) -5% Securities Gains 190 1,830 (1,640) -90% Other Expenses (107,060) (102,720) (4,340) 4% Income Taxes (11,070) (12,790) 1,720 -13%

  24. Slide 24: Income Statement Summary (YTD December)

    Income Statement Summary (YTD December)

  25. Slide 25: Peer Group

    Peer Group* First Merit Corporation International Bancshares Corporation Old National Bancorp Susquehanna Bancshares, Inc. TCF Financial Corporation Trustmark Corporation UMB Financial Corporation United Bankshares, Inc. Valley National Bancorp *Fulton’s peer group as of December 31, 2010 Associated

  26. Slide 26: Performance versus Peer and Top 50

    3.50 3.25 3.00 a QI Q2 Q3 Q4 Qi Q2 Q3 Q4 Q1 Q2 Q3 Q4 Qi Q2 Q3 Q4 QI Q2 Q3 Q4 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 -=FULT --Peer --Top 50 FULTON FINANCIAL CORPORATION

  27. Slide 27: Interest Rates (December YTD - Quarter)

    Interest Rates (December 31 st - Quarter)

  28. Slide 28: Interest Rate Shocks (12/31/10)

    Interest Rate Shocks (12/31/10) 6 month cumulative gap: 1.06 Rate Change NII Change (Annual) % Change +300 bp + $ 45.9 million + 7.7% +200 bp + $ 26.0 million + 4.4% +100 bp + $ 8.6 million + 1.4% - 100 bp - $ 5.4 million - 0.9%

  29. Slide 29: Average Loans (Q4 2010 vs. Q3 2010)

    Average Loans (Q4 2010 vs. Q3 2010)

  30. Slide 30: Average Loans (December Year to Date)

    Average Loans (December 31st - Year to Date)

  31. Slide 31: Performance versus Peer and Top 50

    -—-FULT -*Peer -=-Top 50 FULTON FINANCIAL CORPORATION

  32. Slide 32: Net Charge-Offs To Average Loans

    a_i Net Charge-Offs To Average Loans 0.50 0.00 01 02 03 04 05 06 07 08 09 10 --FULT -*Peer Top 50 FULTON FINANCIAL CORPORATION

  33. Slide 33: Non-performing Loans to Loans

    Non-performing Loans to Loans 4.00 3.00 2.00 1.00 0.00 05 06 07 08 09 Q310 Q410 —e@FULT -# Peer —*-Top 50 FULTON FINANCIAL CORPORATION

  34. Slide 34: «06S (07-—s«*OSSs«Os« QB. Q4

    03 04 05 «06S (07-—s«*OSSs«Os« QB. 10 Q4 10 -——FULT -=Peer -=Top 50 FULTON FINANCIAL CORPORATION

  35. Slide 35: Allowance to Non-performing Loans

    Allowance to Non-performing Loans

  36. Slide 36: Investment Portfolio (12/31/10)

    Investment Portfolio (12/31/10)

  37. Slide 37: Investment Portfolio - Municipal Holdings (12/31/10)

    Investment Portfolio - Municipal Holdings (12/31/10)

  38. Slide 38: Investment Portfolio - Municipal Holdings by State (12/31/10)

    Investment Portfolio - Municipal Holdings by State (12/31/10) Note: The municipal portfolio consists of 94% general obligation bonds. School district issues total 72% of all holdings.

  39. Slide 39: Investment Portfolio - Pooled TRUP Holdings (12/31/10)

    Investment Portfolio - Pooled TRUP Holdings (12/31/10)

  40. Slide 40: Average Deposits (Q4 2010 vs. Q3 2010)

    Average Deposits (Q4 2010 vs. Q3 2010)

  41. Slide 41: Average Deposits (December Year to Date)

    Average Deposits (December 31 st - Year to Date)

  42. Slide 42: Performance versus Peer and Top 50

    (3.0) FULT -Peer --Top50 FULTON FINANCIAL CORPORATION

  43. Slide 43: Other Borrowings (December Year to Date)

    Other Borrowings (December 31 st - Year to Date)

  44. Slide 44: Other Income

    Other Income | Millions 200.0 160.0 120.0 + 80.0 { 40.0 { 0.0 + FULTON FINANCIAL CORPORATION:

  45. Slide 45: Other Income (Q4 2010 vs. Q3 2010)

    Other Income (Q4 2010 vs. Q3 2010)

  46. Slide 46: Other Income (December Year to Date)

    Other Income (December 31 st - Year to Date)

  47. Slide 47: Performance versus Peer and Top 50

    62.0 03 04 05 06 07 08 09 10 --FULT -*Peer -Top 50 FULTON FINANCIAL CORPORATION

  48. Slide 48: Other Expense (Q4 2010 vs. Q3 2010)

    Other Expense (Q4 2010 vs. Q3 2010)

  49. Slide 49: Other Expense (December Year to Date)

    Other Expense (December 31 st - Year to Date)

  50. Slide 50: Retail / Small Bus. Growth Strategies

    Retail / Small Bus. Growth Strategies n Small Business focus across 5-state footprint n Leverage investment in e-banking channels n High customer satisfaction and Forbes recognition provide impetus for current and future relationship expansion n Targeted consumer / home equity loan growth as confide

  51. Slide 51: Fulton Financial Corporation

    FULTON FINANCIAL CORPORATION:

  52. Slide 52: Fulton Financial Corporation

    FULTON FINANCIAL CORPORATION:

  53. Slide 53: Commercial Growth Strategies

    Commercial Growth Strategies n Increased earning asset growth as the economy rebounds n Capitalize on market disruption n Early stage shift (balance sheet protection to quality growth) n Pace of expansion will be improving but tempered

  54. Slide 54: Non-Interest Income Maximization

    Non-Interest Income Maximization n Fulton Financial Advisors u Brokerage u Wealth Management u Institutional n Fulton Mortgage Company u Increased origination staff u Leverage strong local market presence and new customer satisfaction u Expect rise in purchase activity as confidence improves

  55. Slide 55: Corporate Priorities

    Corporate Priorities n Continue to improve asset quality n Accelerated EPS growth n Grow quality earning assets as economy rebounds n Increase the dividend n Maximize our non-interest income n Leverage opportunities created by regulatory change, industry consolidation and market disruption n Build r

  56. Slide 56: Fulton Financial Corporation

    Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com

  57. Slide 57: Supplemental Credit Information

    Supplemental Credit Information

  58. Slide 58: Net Charge-offs (Recoveries) (Q4 2010)

    Net Charge-offs (Recoveries) (Q4 2010)

  59. Slide 59: Non-performing Loans (12/31/10)

    Non-performing Loans* (12/31/10)

  60. Slide 60: Loan Delinquency (Key Sectors)

    Loan Delinquency (Key Sectors) Category Total (%) 12/31/10 90-Days 12/31/10 Total (%) 12/31/09 90-Days 12/31/09 Commercial Loans 2.72 2.36 2.51 1.88 Consumer Direct 1.50 0.66 1.72 0.66 Commercial Mortgage 2.69 2.14 2.33 1.42 Residential Mortgage 8.69 5.05 9.22 5.10 Construction 11.47 10.56 10.13 9.4

  61. Slide 61: Loan Distribution by State (Q4 2010)

    Loan Distribution by State (Q4 2010)

  62. Slide 62: Residential Mtg by State (12/31/10)

    Residential Mtg by State (12/31/10)

  63. Slide 63: C&I Loans by State (12/31/10)

    C&I Loans by State (12/31/10)

  64. Slide 64: Construction Loans (12/31/10)

    Construction Loans (12/31/10)

  65. Slide 65: Construction Loans by Type (12/31/10)

    Construction Loans by Type (12/31/10)

  66. Slide 66: CRE Loans by State (12/31/10)

    CRE Loans by State (12/31/10)

  67. Slide 67: Fulton Financial Corporation

    Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com Version 2011-02-08

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