Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Presentation to Ryan Beck & Co. (November 2003)
45 slides from Fulton Financial's conference presentation, Nov 19, 2003
Slide 1: Fulton Financial Corporation Presentation to Ryan Beck & Co.
??????????????????Fulton Financial Corporation ??????????????????1 Fulton Financial Corporation Fulton Financial Corporation Presentation to: Ryan Beck & Co. November 19, 2003???????????????????
Slide 2: Forward-looking statement
Fulton Financial Corporation ??????????????????2 Forward-looking statement Forward-looking statement ??The following presentation may contain forward-looking statements about Fulton Financial Corporation’s growth and acquisition strategies, new products and services, and future financial performance
Slide 3: Presentation outline
Fulton Financial Corporation ??????????????????3 Presentation outline Presentation outline ??Corporate profile ??Strategic initiatives ??Asset quality ??Future direction???????????????????
Slide 4: Fulton Financial profile
Fulton Financial Corporation ??????????????????4 Fulton Financial profile Fulton Financial profile ??Regional financial holding company (formed in 1982) ??11 bank subsidiaries; 3 financial services subsidiaries ??Asset size: $9.3 billion ??Second largest commercial bank headquartered in Third Federa
Slide 5: ??????????????????555???????????????????
Fulton Financial Corporation ??????????????????555???????????????????
Slide 6: Assets by affiliate (as of 9/30/03)
Fulton Financial Corporation ??????????????????6 Assets by affiliate (as of 9/30/03, in thousands) Assets by affiliate (as of 9/30/03, in thousands) ??Fulton Bank $ 3,869,000 ??Lafayette Ambassador Bank 1,070,000 ??The Bank 1,056,000 ??Lebanon Valley Farmers Bank 777,000 ??Premier Bank 659,000 ??Hag
Slide 7: Fulton Financial Advisors, N.A.
Fulton Financial Corporation ??????????????????7 Includes Dearden Maguire Weaver and Barrett, LLC and Fulton Insurance Services Group As of September 30, 2003: $4.8 billion; $3.4 billion in assets under management Products and Services ??Personal trust ??Asset management ??Retirement services ??Brok
Slide 8: Fulton Mortgage Company
Fulton Financial Corporation ??????????????????8 Fulton Mortgage Company Fulton Mortgage Company ??Established April 2001 ??New entity to coordinate residential mortgage lending throughout FFC ??Expanded, competitive product line to customers of all affiliates ??In partnership with each affiliate, f
Slide 9: Mission statement
Fulton Financial Corporation ??????????????????9 Mission statement Mission statement ??We will increase shareholder value and enrich the communities we serve by creating financial success together with our customers and career success together with our employees. We will conduct all of our business
Slide 10: Corporate ethics
Fulton Financial Corporation ??????????????????10 Corporate ethics Corporate ethics ??Longstanding written code of conduct ??No “gray” areas ??Expectations clearly outlined???????????????????
Slide 11: What have we accomplished?
Fulton Financial Corporation ??????????????????11 ??9.3% compounded annual growth rate in earnings per share — 21 years ??21 consecutive years of record earnings ??29 consecutive years of dividend increases ??10.3% compounded annual growth rate in dividends per share ??Proven business model ??Consis
Slide 12: Five-year performance
Fulton Financial Corporation ??????????????????12 Five-year performance Five-year performance 1998 2002 Net income per share $.88 $1.23 Cash dividends per share $.37 $ .56 Return on assets 1.60% 1.68% Return on equity 15.06% 15.86% Efficiency ratio 55.3% 52.4% Dividend payout 41.6% 45.4% All informa
Slide 13: Nine months ended Sept. 30, 2003
Fulton Financial Corporation ??????????????????13 Nine months ended Sept. 30, 2003 Nine months ended Sept. 30, 2003 ???$0.96 Net income per share (5.5% increase over 2002) ???$0.463 Cash dividends per share (11.6% increase over 2002) ???1.60% Return on Assets ???15.49% Return on Equity ???53.70% Eff
Slide 14: Stock highlights (as of 9/30/03)
Fulton Financial Corporation ??????????????????14 Stock highlights (as of 9/30/03) Stock highlights (as of 9/30/03) Average daily trading volume 188,566 Number of Analysts 11 Number of Market Makers 41 Number of shares outstanding 108.6 million Market Capitalization $2.2 billion???????????????????
Slide 15: Employee stock ownership
Fulton Financial Corporation ??????????????????15 Employee stock ownership Employee stock ownership ??70% of our employees collectively own more than 2 million shares of Fulton Financial Corporation stock. ??Stock options help us to retain long-term loyal employees???????????????????
Slide 16: Stock performance (1982-9/30/03)
Fulton Financial Corporation ??????????????????16 Stock performance (1982-9/30/03) Stock performance (1982-9/30/03) ??WITHOUT dividend reinvestment: 15% compounded annual rate of return ??WITH dividend reinvestment: 19% compounded annual rate of return???????????????????
Slide 17: Employee retention
Fulton Financial Corporation ??????????????????17 Employee retention Employee retention 0 10 20 30 40 50 60 70 80 90 100 1998 1999 2000 2001 2002 Exempt Non-exempt Overall???????????????????
Slide 18: Employee opinion survey
Fulton Financial Corporation ??????????????????18 Employee opinion survey Employee opinion survey ??Customer service ?Management team performance ?Company image and mission ??Team orientation ??Technology and systems ??Training and development ??Sales orientation ??Work effectiveness ??Pay and benef
Slide 19: Customer satisfaction
Fulton Financial Corporation ??????????????????19 Customer satisfaction Customer satisfaction ??96% of our customers are Extremely or Very Satisfied with their Fulton Financial affiliate bank ??86% of our commercial customers are Satisfied or Very Satisfied with us ??Compared to national average of
Slide 20: Deposit composition trends
Fulton Financial Corporation ??????????????????20 Deposit composition trends Deposit composition trends Sept. ‘03 Sept. ‘02 Non Interest-Bearing Demand 17% 17% Interest-Bearing Demand 18% 15% Money Market 13% 13% Savings 11% 10% Time Deposits 35% 40% Customer Repos 6% 5% Total Deposits 100% 100%????
Slide 21: Funding sources as of 9/30/03
Fulton Financial Corporation ??????????????????21 78% 10% 11% 1% Deposits and Customer Repurchase Agreements Capital Other Borrowings Other Liabilities Funding sources as of 9/30/03 Funding sources as of 9/30/03???????????????????
Slide 22: Community involvement
Fulton Financial Corporation ??????????????????22 Community involvement Community involvement ??Employees are actively involved in their own communities ??The community benefits from this support ??The banks receive additional business as a result of the relationships and goodwill that are developed
Slide 23: Corporate strategic initiatives
Fulton Financial Corporation ??????????????????23 Corporate strategic initiatives Corporate strategic initiatives ??Achieving consistent earnings growth ??Maintaining high asset quality ??Expanding the franchise through our well-developed acquisition strategy ??Diversifying revenue stream by increas
Slide 24: Capital
Fulton Financial Corporation ??????????????????24 Capital Capital (At September 30, 2003) (At September 30, 2003) ??Total Capital (GAAP): $927 million ??Total Risk-based Capital: $886 million ??Ratios: ?Total RB Capital 13.3% ?Tier 1 RB Capital 12.1% ?Leverage Capital 9.1%???????????????????
Slide 25: Acquisitions
Fulton Financial Corporation ??????????????????25 ??Resource Bankshares (pending) ??Premier Bank ??Drovers & Mechanics Bank ??18 Sovereign Bank Branches ??Dearden, Maguire, Weaver and Barrett, Inc. ??Skylands Community Bank ??Ambassador Bank of the Commonwealth ??Lebanon Valley National Bank ??Peopl
Slide 26: Premier Bank
Fulton Financial Corporation ??????????????????26 Premier Bank Premier Bank ??Assets of $600 million ??Headquartered in Bucks County, PA ??Six branches in Montgomery and Bucks counties ??Historical double-digit growth in deposits, loans, fee income and net income ??Strong asset quality??????????????
Slide 27: Resource Bankshares Corporation
Fulton Financial Corporation ??????????????????27 Resource Bankshares Corporation Resource Bankshares Corporation ??Assets of $860 million; headquartered in Virginia Beach, Virginia ??The only Virginia-based bank with offices in Virginia’s three major markets ??Market area accounts for over 73% of a
Slide 28: What do we look for?
Fulton Financial Corporation ??????????????????28 ??High growth areas ??Dynamic market demographics ??Strong performance ??Asset quality ??Talented and dedicated staff ??Compatible corporate culture What do we look for? What do we look for????????????????????
Slide 29: Acquisitions in new markets: what changes?
Fulton Financial Corporation ??????????????????29 Acquisitions in new markets Acquisitions in new markets What changes? ??Replicate strong credit culture ??Loan review ??Investments ??Asset/liability management ?Compliance ??Common operating platform ??Audit???????????????????
Slide 30: Acquisitions in new markets: what stays the same?
?Fulton Financial Corporation ??????????????????30 What stays the same? ?Bank name ?Board of Directors ?Management team ?Employees Acquisitions in new markets Acquisitions in new markets???????????????????
Slide 31: Benefits to new affiliates
Fulton Financial Corporation ??????????????????31 ??Increased non-interest income due to introduction of new products and services ??Additional capital ??Increased lending capacity ?Reduced expenses ??Proven merger/conversion expertise Benefits to new affiliates Benefits to new affiliates???????????
Slide 32: Product availability
Fulton Financial Corporation ??????????????????32 ??Residential Mortgages ??Investment Management ??Brokerage Services ??Insurance (whole life, term life, long-term care through Advisors) ??On-line banking ??Debit/Credit cards ??Cash management ??Specialized lending (leasing and indirect) ??Internat
Slide 33: Composition of total revenues
Fulton Financial Corporation ??????????????????33 Composition of total revenues Composition of total revenues 28.0% 25.0% 22.9% 19.4% 17.9% 16.9% 16.2% 16.0% 0% 20% 40% 60% 80% 100% 96 97 98 99 00 01 02 9/03 Other Income Net Interest Income???????????????????
Slide 34: Investment management and trust services revenue
Fulton Financial Corporation ??????????????????34 Investment management and trust services revenue Investment management and trust services revenue 19.6% 7.4% 13.2% 22.1% 26.8% 18.0% 31.6% 0.0 6.0 12.0 18.0 24.0 30.0 36.0 1997 1998 1999 2000 2001 2002 9/03???????????????????
Slide 35: Growth in other income
Fulton Financial Corporation ??????????????????35 Growth in other income Growth in other income 14.1% 14.3% 13.4% 10.6% 10.4% 13.3% 10.6% 18.4% 35.8% 0.0 20.0 40.0 60.0 80.0 100.0 120.0 95 96 97 98 99 00 01 02 9/03 Note: In 2001, we acquired Dearden, Maguire, Weaver & Barrett, LLC???????????????????
Slide 36: Moody's and Fitch ratings
Fulton Financial Corporation ??????????????????36 Moody’s Investor Service Moody’s Investor Service ?Short-term rating P-1 ?Long-term rating: Issuer A-2 Lead Bank Deposits A-1 Fitch Ratings Fitch Ratings ?Short-term rating F-1 ?Long-term rating A???????????????????
Slide 37: Loan diversification (9/30/03)
Fulton Financial Corporation ??????????????????37 9% 29% 11% 14% 37% Consumer and Other Residential Mortgage Commercial Loans Home Equity Commercial Mortgage Loan diversification (9/30/03) Loan diversification (9/30/03)???????????????????
Slide 38: Summary of larger loans
Fulton Financial Corporation ??????????????????38 ??21 relationships with commitments to lend of $20 million or more ??Maximum individual commitment of $30 million ??Average commercial loan commitment is $536,000 ??Loans and corresponding relationships are within Fulton’s geographical market area Su
Slide 39: Commercial loan concentration by industry
Fulton Financial Corporation ??????????????????39 Commercial loan concentration by industry (as of 9/30/03) Commercial loan concentration by industry (as of 9/30/03) Industry % Construction 16.7 R/E—Rental 16.5 Services 13.8 Manufacturing 11.9 Retail 8.3 Health Care 7.9 Other 7.4 Agriculture 6.5 Who
Slide 40: Net charge-offs to average loans
Fulton Financial Corporation ??????????????????40 Source: SNL Financial Datasource Net charge-offs to average loans Net charge-offs to average loans 0.47 0.26 0.17—0.30 0.60 0.90 90 91 92 93 94 95 96 97 98 99 00 01 02 6/03 9/03 Top 50 Peer FFC???????????????????
Slide 41: Non-performing assets to total assets
Fulton Financial Corporation ??????????????????41 Source: SNL Financial Datasource Non-performing assets to total assets Non-performing assets to total assets 0.63 0.45 0.41 0.20 0.60 1.00 1.40 1.80 90 91 92 93 94 95 96 97 98 99 00 01 026/039/03 Top 50 Peer FFC???????????????????
Slide 42: ??????????????????42 42???????????????????
Fulton Financial Corporation ??????????????????42 42???????????????????
Slide 43: Looking ahead
Fulton Financial Corporation ??????????????????43 Looking ahead Looking ahead ?Continue to build on our strengths ?Continue to rely on the expertise and skill of our employees ?Stick to banking basics while preparing for the future ?Enhance customer relationship management efforts???????????????????
Slide 44: Board of Directors
Fulton Financial Corporation ??????????????????44 Board of Directors Board of Directors ?Focused on maximizing shareholder value with an annual increase in earnings per share in the range of 10%???????????????????
Slide 45: One Penn Square, Lancaster, PA
Fulton Financial Corporation ??????????????????45 Fulton Financial Corporation Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com
Fulton Financial — Presentation to Ryan Beck & Co. (November 2003) on 6ix