Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Investor Presentation (February 2022)
28 slides from Fulton Financial's investor presentation, Feb 10, 2022
Slide 1: Investor Presentation
z INVESTOR PRESENTATION Data as of December 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: Deep Executive Bench With Continuity; Compelling Markets and Opportunities
Deep Executive Bench With Continuity; Compelling Markets and Opportunities 3 (1) Includes years of service in public accounting and investment banking as a financial services industry specialist. (2) Includes years of service in public accounting as a financial services industry specialist. Name Pos
Slide 4: A Valuable Franchise, Well Positioned with Strong Liquidity, Solid Capital and Disciplined Credit Culture
4 (1) As of December 31, 2021 (2) Data as of June 30, 2021 per S&P Global Market Intelligence ; Map includes Fulton Financial counties with a financial center and/or a loan production office (“LPO”), and incorporated cities in MD and VA with a financial center and/or LPO and removes online only bank
Slide 5: Strong Position In Attractive & Stable Markets
Strong Position In Attractive & Stable Markets 5 Note: Data as of June 30, 2021 per S&P Global Market Intelligence; FDIC Summary of Deposits. (1) Median HH Income, 2021 – 2026 Projected Population Change and Projected HH Income Change are weighted by deposits in each MSA. Fulton Financial Corporatio
Slide 6: Extending Footprint Into Fast-Growing Urban Markets
Extending Footprint Into Fast-Growing Urban Markets 6 ▪ Philadelphia is a natural fill-in opportunity within our current footprint o Opened 3 financial centers in 2019 o 1 financial center targeted to open in 1Q22 and 1 financial center targeted to open in 1Q23 ▪ Philadelphia Market: o The top 5 ban
Slide 7: Customer & Community Strategic Initiatives Support Our Relationship Banking Strategy
7 Customer & Community Strategic Initiatives Support Our Relationship Banking Strategy S IM P L IF Y O N T H E IN S ID E D IF F E R E N T IA T E O N T H E O U T S ID E E X E C U T E W IT H E X C E L L E N C E R IS K & C O M P L IA N C E O P E R A T IO N A L E X C E L L E N C E Strategic Filter Outco
Slide 8: Fulton Has Made Significant Investments To Enhance Its Digital Capabilities
Fulton Has Made Significant Investments To Enhance Its Digital Capabilities 8 Purchase ▪ Streamlines commercial underwriting process to condense timeline from application to close ▪ Integrates with CRM platform to streamline processes and keep customers more informed ▪ Best-in-class online platform
Slide 9: Optimizing Our Financial Center Network
Optimizing Our Financial Center Network 9 Optimizing our financial center network has: ▪ Moved us towards multiple financial center types vs. a one-size-fits-all model ▪ Given us greater ability to re-invest in people & digital transactions ▪ Oriented the financial center as a primary touchpoint ena
Slide 10: Granular, Well-Diversified Loan Portfolio
Granular, Well-Diversified Loan Portfolio 10 $6.2 $6.3 $6.5 $6.9 $7.1 $4.2 $4.3 $4.5 $5.5 $5.1 $1.6 $1.5 $1.4 $1.3 $1.1$1.8 $2.1 $2.4 $2.9 $3.5 $0.9 $1.0 $0.9 $1.0 $1.1 $0.5 $0.6 $0.7 $0.7 $0.7 4.07% 4.38% 4.55% 3.63% 3.46% 3.00% 3.50% 4.00% 4.50% 5.00% $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $
Slide 11: Attractive Core Deposit Profile
Attractive Core Deposit Profile 11 ▪ Accelerated growth in core deposits, particularly noninterest-bearing deposits ▪ Cost of deposits at historically low levels ▪ Excess liquidity provides the ability to manage deposit costs in a rising rate environment $2.7 $2.7 $2.9 $2.5 $1.9 $4.4 $4.3 $4.2 $5.7
Slide 12: Solid Asset Quality And Reserves
12 Solid Asset Quality And Reserves Commentary Non-Performing Loans (NPLs) & Allowance/Loans ($ IN MILLIONS) N o n -P er fo rm in g Lo an s $134.8 $139.7 $141.2 $147.1 $152.1 1.12% 1.05% 0.97% 1.47% 1.36% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% $0.0 $25.0 $50.0 $75.0 $100.0 $125.0 $150.0 $175.0 2017 201
Slide 13: Prudent Expense Management With Opportunities To Realize Efficiencies
Prudent Expense Management With Opportunities To Realize Efficiencies 13 ~ $730 million ~ $610 million ▪ Low-rate environment and continued buildout of our compliance, risk and technology infrastructures were the primary drivers of an elevated efficiency ratio in 2015 ▪ Positive operating leverage t
Slide 14: Strong Capital Position
14 Strong Capital Position ▪ Dividend increased from $0.13 to $0.14 in the first quarter of 2021. Special dividend of $0.08 per share declared in Q4 2021, an increase of $0.04 compared to 2020. ▪ Raised $375 million of tier-2 qualifying subordinated debt in Q1 2020 and $200 million in tier-1 qualify
Slide 15: Recent Financial Performance & Highlights
RECENT FINANCIAL PERFORMANCE & HIGHLIGHTS
Slide 16: Income Statement Summary
(1) ROA is return an average assets determined by dividing net income for the period indicated by average assets, annualized. (2) ROE is return on average shareholders’ equity determined by dividing net income for the period indicated by average shareholders’ equity, annualized. (3) Non-GAAP financi
Slide 17: Net Interest Income And Margin
Net Interest Income And Margin 17 NET INTEREST INCOME & NET INTEREST MARGIN(1) ~ $730 million ~ $610 million ($ IN MILLIONS) ($ IN BILLIONS) ($ IN BILLIONS) AVERAGE INTEREST-EARNING ASSETS & YIELDS AVERAGE LIABILITIES & COST OF FUNDS (1) Using a 21% federal tax rate and statutory interest expense di
Slide 18: Asset Quality
Asset Quality 18 NON-PERFORMING LOANS (NPLS) & NPLS TO LOANS NET CHARGE-OFFS (NCOS) AND NCOS TO AVERAGE LOANS PROVISION FOR CREDIT LOSSES ALLOWANCE FOR CREDIT LOSSES (ALLOWANCE)(1) TO NPLS & LOANS ($ IN MILLIONS) (1) The allowance for credit losses (“ACL”) relates specifically to "Loans, net of unea
Slide 19: Non-Interest Income
19 Non-Interest Income(1) (1) Excludes investment securities gains.
Slide 20: Non-interest Expense
Non-interest Expense Three months ended December 31, 2021 (percent of total non-interest expense) Salaries and Benefits Occupancy Data Processing and Software Other Outside Services Debt Extinguishment HE Other 4Q21 3021 Change (dollars in thousands) Salaries and Benefits $85,506 $82,679 $2,827 ™ Oc
Slide 21: 2022 Outlook
2022 Outlook 21 (1) Excluding investment securities gains.
Slide 22: Appendix
APPENDIX
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation 23 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 finan
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation 24 $ in (thousands) 2015 2016 2017 2018 2019 2020 2021 Efficiency ratio Non-interest expense $480,160 $489,519 $525,579 $546,104 $567,736 $579,440 $617,830 Less : Amortization of tax credit investments - - (11,028) (11,449) (6,021) (6,126) (6,187) Less : Intangible Amortizati
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation 25 $ in (thousands) Dec Sep Dec 2020 2021 2021 Efficiency ratio Non-interest expense $154,738 $144,596 $154,019 Less : Amortization of tax credit investments (1,532) (1,546) (1,547) Less : Intangible Amortization (132) (150) (146) Less : 2020 cost savings ini tiatives (15,400
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation 26 $ in (thousands) Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 2016 2017 2018 2019 2020 2021 Tangible book value per share Shareholders ' equity $2,121,115 $2,229,857 $2,247,573 $2,348,474 $2,616,828 $2,712,680 Less : Goodwi l l and intangible assets (531,556) (531,556) (531,5
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation 27 $ in (thousands) Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 2020 2021 2021 2021 2021 Asset Quality, excluding PPP ACL - Loans (numerator) $277,567 $265,986 $255,032 $256,727 $249,001 Loans , net of unearned income $18,900,820 $18,990,986 $18,586,756 $18,269,407 $18,325,350 Less :
Slide 28: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION FULTON FINANCIAL www.fultonbank.com CORPORATION
Fulton Financial — Investor Presentation (February 2022) on 6ix