Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q1 2021 Earnings Presentation
15 slides from Fulton Financial's earnings presentation, Apr 21, 2021
Slide 1: First Quarter 2021 Results
FIRST QUARTER 2021 RESULTS NASDAQ: FULT Data as of or for the three months ended March 31, 2021 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: Income Statement Summary
INCOME STATEMENT SUMMARY Change From 1Q21 4Q20 1Q20 (dollars in thousands, except per-share data) Net Interest Income $ 164,448 $ 2,857 $ 3,702 Provision for Credit Losses (5,500) (11,740) (49,530) Non-Interest Income 61,922 6,348 7,324 Securities Gains 33,475 33,475 33,429 Non-Interest Expense 178,
Slide 4: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Net Interest Income & Net Interest Margin Average Interest-Earning Assets & Yields ($ IN BILLIONS) ($ IN MILLIONS) $25 8.00% $20 $4 $4 $5 $5 $4 6.00% $200 4.00% $19 $19 $18 $19 $15 $17 $180 4.00% 3.75% $10 $164 3.97% $161 $162 3.32% 3.13% 3.12% 3.13% $160 $154 $5 2.00%
Slide 5: 2021 Balance Sheet Restructuring
2021 Balance Sheet Restructuring Why: • Reduce exposure to interest rate risk • Opportunity to reduce interest expense What: • Sold Visa Class B restricted shares - $34 million pre-tax gain • Tendered for $75 million of 4.50% subordinated debt due 2024 • Tendered for $60 million of 3.60% senior note
Slide 6: Asset Quality
ASSET QUALITY ($ IN MILLIONS) Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans $50 $44 $200 1.50% $40 $175 $30 0.82% 0.75% 0.75% 0.78% 0.80% 1.00% $20 $150 $20 $152 $147 0.50% $140 $140 $142 $10 $7 $6 $125 $— $100 0.00% 1Q20 2Q20 3Q20 4Q20 1Q21 $(6) 1Q20 2Q20 3Q20 4Q20 1Q21 NP
Slide 7: Non-Interest Income
NON-INTEREST INCOME(1) Three months ended March 31, 2021 (percent of total non-interest income) 1Q21 4Q20 Change (dollars in thousands) n Wealth Management $ 17,347 $ 15,653 $ 1,694 6% n Mortgage Banking 13,960 9,311 4,649 28% n Consumer Banking 10,754 10,797 (43) n Commercial Banking 16,342 16,809
Slide 8: Non-Interest Expense
NON-INTEREST EXPENSE Three months ended March 31, 2021 1Q21 4Q20 Change (percent of total non-interest expense) (dollars in thousands) n Salaries and Benefits $ 82,586 $ 83,929 $ (1,343) n Occupancy 13,982 13,161 821 15% n Data Processing and Software 13,561 11,951 1,610 n Other Outside Services 8,4
Slide 9: Capital Position Remains Strong
CAPITAL POSITION REMAINS STRONG (as of March 31, 2021) 17.5% 15.0% 14.2% $736 12.5% 10.8% 10.0% 9.8% $443 8.3% $546 7.5% $836 5.0% 2.5% —% Tier 1 Leverage Tier 1 Risk Based CE Tier 1 Total Risk Based Regulatory Minimums Excess(2) 1. Regulatory capital ratios as of March 31, 2021 are preliminary. 2.
Slide 10: 2021 Outlook
2021 OUTLOOK Net interest income: $640 - $660 million Provision for credit losses: $20 - $40 million Non-interest income: $220 - $230 million Non-interest expense (1): $555 - $575 million (1) Excluding charges related to the 1Q 2021 balance sheet restructuring 10
Slide 11: 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 12: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION (dollars in thousands) Three months ended Mar 31 Dec 31 Mar 31 Efficiency ratio 2021 2020 2020 Non-interest expense $ 178,384 $ 154,737 $ 142,552 Less: Debt extinguishment costs (32,163) — — Less: Amortization of tax credit investments (1,531) (1,532) (1,450) Less: Intangible
Slide 13: Appendix - Credit Disclosures
APPENDIX - CREDIT DISCLOSURES Additional detail on deferrals and selected industries (data as of March 31, 2021; all industry classifications based on NAICS codes) 13
Slide 14: Active COVID Deferrals Continue to Decline
Active COVID Deferrals(1) Continue to Decline Commercial • At March 31, 2021, active deferrals declined to ~$153 million, or 1.1% of the commercial portfolio(2) • Majority of active deferrals are in the hospitality, entertainment, and fitness industries • Continued focus to obtain credit enhancement
Slide 15: Selected Industries With Heightened Risk Due to COVID-19
Selected Industries With Heightened Risk Due to COVID-19 some numbers may not sum due to rounding (1) Based on regulatory classifications. Commercial Portfolio consists of Commercial and Industrial, Commercial Mortgage, and Construction loans to commercial borrowers. Note: "Pass," "Special Mention"