Slide 1: Investor Presentation
D A T A A S O F S E P T E M B E R 3 0 , 2 0 1 6 U N L E S S O T H E R W I S E N O T E D INVESTOR PRESENTATION
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements with respect to Fulton Financial 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 wor
Slide 3: Why Fulton?
WHY FULTON? • Risk Management Foundation • Management Depth and Experience • Stability of Geographic Markets / Franchise Value • Strong Capital & Reserves • Commitment to Enhancing Shareholder Value • Relationship Banking Strategy / Customer Experience • Quality Loan Growth / Solid Asset Quality • A
Slide 4: A Valuable Franchise
A VALUABLE FRANCHISE • 243 community banking offices across the Mid-Atlantic • Asset size: $18.7 billion • 3,700+ team members (3,490 FTEs (1)) • Market capitalization: $2.5 billion (2) 4 (1) Full-time equivalent employees. (2) Based on shares outstanding and the closing price as of September 30, 20
Slide 5: Strong Position in Attractive Markets
STRONG POSITION IN ATTRACTIVE MARKETS 5 Note: Data as of June 30, 2016 per Federal Deposit Insurance Corporation (FDIC) Summary of Deposits. Household Income Data as of June 30, 2016 per SNL Financial LC. (1) Median HH Income, 2017 – 2022 Projected Population Change and 2017 – 2022 Projected HH Inco
Slide 6: Deep Executive Management Team
Name Position Years at Fulton Years in Financial Services Prior Experience E. Philip Wenger Chairman, President & CEO 37 37 Various roles since joining in 1979 Patrick Barrett (1) Senior EVP & CFO 3 24 SunTrust, JPMorgan, Deloitte Touche Tomatsu Craig Roda Senior EVP/ Community Banking 38 38 Various
Slide 7: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS Diluted Earnings Per Share: $0.24 in 3Q16, 4.3% increase from 2Q16 and 20.0% increase from 3Q15 Pre-Provision Net Revenue(1): $58.9 million, 10.4% increase from 2Q16 and 19.0% increase from 3Q15 Linked Quarter Loan and Core Deposit Growth: 1.8% increase in average loans, whi
Slide 8: Income Statement Summary
INCOME STATEMENT SUMMARY Net Income of $41.5 million; a 4.3% increase from 2Q16 and a 21.1% increase from 3Q15. Earnings per share increased 4.3% from 2Q16 and 20.0% from 3Q15. Net Interest Income From 2Q16: Increase of 1.3%, reflecting the impact of loan growth and an additional day in the qu
Slide 9: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Net Interest Income & Net Interest Margin ~ $730 million ~ $610 million $125.7 $127.8 $129.1 $128.9 $130.6 3.18% 3.19% 3.23% 3.20% 3.14% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2
Slide 10: Loan Portfolio Composition & Yield
LOAN PORTFOLIO COMPOSITION & YIELD 10 Note: Loan portfolio composition is based on average balances for the years ended December 31, 2011 to 2015, and nine months ended September 30, 2016. (1) Presented on a fully-taxable equivalent basis. $4.6 $4.9 $5.1 $5.2 $5.6 $3.6 $3.7 $3.7 $3.9 $4.1 $1.6 $1.7
Slide 11: Deposit Portfolio Composition
DEPOSIT PORTFOLIO COMPOSITION 11 Note: Deposit composition is based on average balances for the periods indicated. Average demand and savings are up 9.7% compared to the nine months ended September 30, 2015; while total average deposits are up 6.2%. 20% 28% 24% 18% 10% Time Deposits Non-Int DDA Int
Slide 12: Interest Rate Sensitivity
1) A variety of interest rate scenarios are used to measure the effects of sudden and gradual movements upward and downward in the yield curve. These results are compared to the results obtained in a flat or unchanged interest rate scenario. Simulation of net interest income is used primarily to mea
Slide 13: Asset Quality
ASSET QUALITY ($ IN MILLIONS) 13 Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans 116.81% 118.37% 121.05% 129.26% 119.59% 1.25% 1.24% 1.20% 1.17% 1.15% 0.00% 1.00% 2.00% 3.00% 0.0% 25.0% 50.0% 75.0% 100.0% 125.0% 150.0% Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Allowance/NPLs Al
Slide 14: Non-Interest Income
NON-INTEREST INCOME ($ IN MILLIONS) Non-Interest Income, Excluding Securities Gains ~ $730 million ~ $610 million $43.0 $45.1 $42.2 $46.1 $48.1 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Mortgage Banking Income & Spreads Other Non-Interest I
Slide 15: Non-Interest Expenses
NON-INTEREST EXPENSES ($ IN MILLIONS) Non-Interest Expense & Efficiency Ratio (1) ~ $730 million ~ $610 million $119.3 $118.4 $120.4 $121.6 $119.8 68.8% 66.6% 68.3% 67.6% 65.2% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 Q3 2015 Q4 2015 Q1 201
Slide 16: Compliance & Risk Management
$1.8 $2.1 $3.2 $4.3 $3.3 $1.0 $1.2 $1.1 $4.6 $1.4 $8.6 $5.9 $3.1 $1.1 $1.0 $1.0 13 26 30 45 47 56 $- $3.0 $6.0 $9.0 $12.0 0 10 20 30 40 50 60 70 2011 2012 2013 2014 2015 YTD 9/2016 Q1 2016 Q2 2016 Q3 2016 Salaries & Benefits Expense Outside Consulting Services and Temporary Staffing (1) Staffing $0.
Slide 17: Profitability & Capital
PROFITABILITY & CAPITAL 17 ROA(1) ROE (tangible)(2) Tangible Common Equity Ratio(2) Diluted Earnings Per Common Share 9.11% 10.16% 10.07% 10.26% 10.38% 0.00% 4.00% 8.00% 12.00% Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 0.78% 0.86% 0.86% 0.88% 0.89% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% Q3 2015 Q4
Slide 18: Stock Repurchase Programs
STOCK REPURCHASE PROGRAMS June 2012 to October 2016 Repurchase Programs (1) Shares Repurchased 31.88 million % of Outstanding Shares 15.9% (2) Amount Repurchased $375.1 million Average Purchase Price $11.77 demand and savings (1) Share repurchases completed from June 2012 through October 2016. (2) T
Slide 19: Average Assets and ROA, by Bank
AVERAGE ASSETS AND ROA, BY BANK Nine Months Ended Sep 30, 2016 Average Assets ($ Millions) 2016 2015 Fulton Bank, N.A. $10,104 1.08% 1.03% The Columbia Bank 2,164 0.95% 0.88% Lafayette Ambassador Bank 1,531 0.93% 0.98% Fulton Bank of New Jersey 3,746 0.68% 0.77% FNB Bank, N.A. 355 0.59% 0.62% Swinef
Slide 20: 2016 Outlook
2016 OUTLOOK The following outlook remains unchanged from prior quarter: • Loans & Deposits: Annual average growth rate in the mid- to high-single digits • Asset Quality: Provision driven primarily by loan growth • Non-Interest Income (Excluding Securities Gains): Mid- to high-single digit growth ra
Slide 21: Appendix
APPENDIX
Slide 22: Average Loan Portfolio and Yields
AVERAGE LOAN PORTFOLIO AND YIELDS 22 Note: Yields presented on a fully taxable-equivalent basis, using a 35% federal tax rate and statutory interest expense disallowances. Balance Yield Q2 2016 Q3 2015 Q2 2016 Q3 2015 Comm'l Mort 5,670$ 3.99% 112$ 428$ (0.01%) (0.10%) Commercial 4,066 3.76% (15) 179
Slide 23: Average Customer Funding and Rates
AVERAGE CUSTOMER FUNDING AND RATES 23 Balance Rate Q2 2016 Q3 2015 Q2 2016 Q3 2015 Nonint DDA 4,228$ - % 150$ 324$ - % - % Int DDA 3,602 0.19% 148 285 0.01% 0.06% Savings/MMDA 4,079 0.20% 89 365 0.01% 0.05% CD's 2,814 1.07% (30) (150) 0.01% 0.04% Total Deposits 14,723 0.31% 357 824 0.01% 0.02% Cash
Slide 24: Ending Loan Distribution by State
ENDING LOAN DISTRIBUTION BY STATE SEPTEMBER 30, 2016 24 Comm'l Consumer Comm'l Mortgage Constr. Res. Mtg. & Other Total (in thousands) Pennsylvania 2,943,850$ 2,971,832$ 494,938$ 667,946$ 1,308,533$ 8,387,099$ New Jersey 532,287 1,447,194 173,316 237,093 377,728 2,767,618 Maryland 329,170 628,866 86
Slide 25: Non-Performing Loans
NON-PERFORMING LOANS(1) SEPTEMBER 30, 2016 25 Comm'l Consumer Ending Loans NPLs/Loans Comm'l Mortgage Constr. Res. Mtg. & Other Total NPLs by State by State Pennsylvania 28,460$ 13,421$ 5,428$ 9,122$ 7,907$ 64,338$ 8,387,099$ 0.77% New Jersey 5,927 14,483 1,071 6,750 5,463 33,694 2,767,618 1.22% Mar
Slide 26: Net Charge-Offs (Recoveries)
NET CHARGE-OFFS (RECOVERIES) THREE MONTHS ENDED SEPTEMBER 30, 2016 26 Comm'l Consumer Average Loans Charge-Offs to Comm'l Mortgage Constr. Res. Mtg. & Other Total by State Average Loans Pennsylvania 72$ 916$ (243)$ 419$ 782$ 1,946$ 8,308,409$ 0.09% New Jersey 174 147 (217) 104 528 736 2,770,186 0.11
Slide 27: Investment Portfolio
INVESTMENT PORTFOLIO SEPTEMBER 30, 2016 27 Weighted Avg. Remaining Life Amortized Unrealized Estimated (in years) Cost Gain (Loss) Fair Value (dollars in millions) Collateralized mortgage obligations 2.9 651$ 1$ 652$ Mortgage-backed securities 3.9 1,201 25 1,226 State and municipal securities 8.7 39
Slide 28: A Sustainable Payout
A SUSTAINABLE PAYOUT $0.20 $0.30 $0.32 $0.34 $0.38 $0.29 2.04% 3.12% 2.44% 2.75% 2.92% 2.67% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% $0.00 $0.04 $0.08 $0.12 $0.16 $0.20 $0.24 $0.28 $0.32 $0.36 $0.40 2011 2012 2013 2014 2015 YTD 9/2016 Cash Dividend Yield 28 (1) Annualized dividend rate per
Slide 29: Non-Interest Income (Excluding Securities Gains)
NON-INTEREST INCOME (EXCLUDING SECURITIES GAINS) 29 Q3 2016 Q2 2016 Q3 2015 Q2 2016 Q3 2015 Invt Mgt & Trust 11,425$ 11,247$ 11,237$ 178$ 188$ Overdraft & NSF Fees 5,770 5,384 5,652 386 118 Mortgage Banking Income 4,529 3,897 3,864 632 665 Commercial Swap Fees 4,359 2,751 1,251 1,608 3,108 Merchant
Slide 30: Non-Interest Expense
NON-INTEREST EXPENSE 30 Q3 2016 Q2 2016 Q3 2015 Q2 2016 Q3 2015 Salaries & Benefits 70,696$ 70,029$ 65,308$ 667$ 5,388$ Occupancy & Equipment 14,919 14,683 14,305 236 614 Data Proc. & Software 8,727 9,429 9,089 (702) (362) Outside Services 5,783 5,508 7,373 275 (1,590) Supplies & Postage 2,559 2,706
Slide 31: 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 32: Non-GAAP Reconciliation (Con't)
NON-GAAP RECONCILIATION (CON’T) 32 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 2015 2015 2016 2016 2016 Tangible Common Equity to Tangible Assets (TCE Ratio) Shareholders' equity 2,025,904$ 2,041,894$ 2,073,309$ 2,106,997$ 2,129,436$ Less: Intangible assets (531,562) (531,556) (531,556) (531,556) (531,556) T
Slide 33: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION www.fult.com