Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Investor Presentation (February 2012)
73 slides from Fulton Financial's investor presentation, Feb 24, 2012
Slide 1: Investor Presentation
Investor Presentation Data as of December 31, 2011 Ticker Symbol: FULT (NASDAQ)
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 w
Slide 3: Presentation Outline
Presentation Outline § About Us § Corporate Strategy § Our Progress in 2011 § Q/4 Overview § Capital § Growth Strategies § Financial Performance Detail § Supplemental Information
Slide 4: About Us (as of 12/31/11)
About Us (as of 12/31/11) § Mid-Atlantic financial holding company § 6 community banks / 5 states § Fulton Financial Advisors § Fulton Mortgage Company § 272 community banking offices § Asset size: $16.4 billion § 3,850 team members § Market capitalization: $ 2.0 billion § Book value per common shar
Slide 5: A Valuable Geographic Franchise
A Valuable Geographic Franchise
Slide 6: Superior Customer Experience
Superior Customer Experience WE WILL CARE, LISTEN, UNDERSTAND, AND DELIVER
Slide 7: Listening is Just The Beginning
“Listening is Just The Beginning” COMMUNITY BANKING SMALL BUSINESS HIGH NET WORTH RETAIL BANKING
Slide 8: Greenwich Associates
Greenwich Associates § 2011 Greenwich Excellence Awards in Middle Market Banking § Fulton Bank (2 categories) § Overall Satisfaction in Banking § Treasury Management § National and Regional Winner § Criteria: $10 - 500 million in sales § Nearly 11,500 Business Interviews
Slide 9: Key Resources
Key Resources § Corporate Culture § Customer Commitment § Team-Based Relationship Management § Branch Manager Empowerment § Reputation § Brand
Slide 10: 2011: Progress and Positioning
2011: Progress and Positioning § Diluted EPS up 24% § Improved ROA § Lower Provision § Core Deposit Growth § Net Interest Margin Expansion § Growth in Other Income § Good Expense Control § Increased Cash Dividend
Slide 11: 4th Quarter Overview
4th Quarter Overview § Linked Quarter EPS Reduction of 2 Cents § Lower Debit Interchange Revenue § Margin Compression / MBS Premiums § Reduced Mortgage Sales Gains § NJ Merger-Related Marketing Expenses § Sale of Non-Performing Mortgages § Improvement in Credit Metrics
Slide 12: Capital Adequacy (12/31/11)
Capital Adequacy (12/31/11)
Slide 13: Potential Uses of Capital
Potential Uses of Capital § Support Organic Growth § Dividends to Shareholders § Acquisitions § Repurchase stock
Slide 14: Deposit Growth
Deposit Growth § Be the Bank of Choice for Small Businesses in our Markets § Branch Manager the “portal” for Full Menu of Corporate Resources § Good Growth with Uncertain Economy § Margin Opportunity with Credit Demand § Customers Still Deleveraging
Slide 15: Loan Growth
Loan Growth § Some Expansion in Q4 / Over 1% Annualized § Retention of Profitable Relationships a Priority § Growth Offset by Decline in Construction Book § Leverage Market Opportunities for New Business § Mitigate Risk
Slide 16: Summary of Larger Loans (12/31/11)
Summary of Larger Loans (12/31/11) § 55 relationships with commitments to lend $20 million or more § Maximum individual commitment: $33 million § Maximum commitment to any builder/developer: $25 million § Maximum commitment to any one development project: $15 million § Average commercial lending rel
Slide 17: Commercial Loans by Industry (12/31/11)
Commercial Loans by Industry (12/31/11)
Slide 18: Construction Exposure
Construction Exposure ($ in millions) Construction Loans / Total Loans 12.2% 10.5% 8.2% 6.7% 5.1% (7%) (23%) (18%) (23%)
Slide 19: Non-Interest Income Growth
Non-Interest Income Growth § Fulton Mortgage Company § Leverage industry reputation § Expand revenue-producing origination staff § Fulton Financial Advisors ($4.0 billion A.U.M.) § Brokerage ($1.8 billion) § Commercial RM and retail referrals § Offset Impact of Increased Regulation § Value-based fee
Slide 20: Expense Control
Expense Control § Lean Process Improvement § Branch Consolidation § Appropriate Staff Levels § Leverage Electronic Capabilities
Slide 21: Core Platform Upgrade
Core Platform Upgrade § Continuation of Longstanding Fiserv Relationship § 360 Degree View of Customer Relationship § Improve Consultative Sales Process § Higher Household Penetration / Revenue § Implementation Over 2-Year Timeframe § Strategy Implementation / Care, Listen, Understand and Deliver
Slide 22: Expected EPS Growth
Expected EPS Growth § Improving Credit Metrics § Leveraging Low-Cost Deposit Base § Market Share Opportunities § Judicious Expense Control § Superior Customer Experience
Slide 23: Details of Financial Performance
Details of Financial Performance
Slide 24: Q4 2011 vs Q3 2011 Income Statement
Q4 2011 Q3 2011 $ % (dollars in thousands) Net Interest Income $ 138,460 $ 141,490 $ (3,030) -2% Loan Loss Provision (30,000) (31,000) 1,000 -3% Other Income 45,300 48,580 (3,280) -7% Securities Gains (Losses) 3,050 (440) 3,490 n/m Other Expenses (108,860) (105,870) (2,990) 3% Income Taxes (11,870)
Slide 25: Income Statement Summary (year ended)
Income Statement Summary (year ended)
Slide 26: Peer Group
Peer Group* International Bancshares Corp. People’s United Financial, Inc. Susquehanna Bancshares, Inc. Synovus Financial Corporation TCF Financial Corporation UMB Financial Corporation Valley National Bancorp Webster Financial Corporation *Fulton’s peer group as of December 31, 2011 Associated Banc
Slide 27: FULT vs Peer Performance
16 14 12 1.0 0.8 0.4 0.2 03 04 05 06 07 08 09 FULT Peer Top 50 10 11 FULTON FINANCIAL CORPORATION
Slide 28: FULT vs Peer Net Interest Margin
4.00 3.75 3.50 3.25 = e 8 Q1 Q2 Q3 Q4.Q1 6 06 06 = Ss e e g e Qi 07 08 Q2 Q3 Q4.Q1 08 08 08 09 Q2Q 09 3 Oo! = FULT Peer —t-Top 50 Q4 Q1 Q2 Q3 4 Q1 Q2 Q3 Q4 9 09 10 10 10 10 11 11 11 11 FULTON FINANCIAL CORPORATION
Slide 29: Interest Rates (Q4 2011 vs. Q3 2011)
Interest Rates (Q4 2011 vs. Q3 2011)
Slide 30: Interest Rate Shocks (12/31/11)
Interest Rate Shocks (12/31/11) 6 month cumulative gap: 1.08 Rate Change NII Change (Annual) % Change +400 bp + $ 82.5 million + 14.5% +300 bp + $ 58.0 million + 10.2% +200 bp + $ 33.4 million + 5.9% +100 bp + $ 10.1 million + 1.8% - 100 bp - $ 15.2 million - 2.7%
Slide 31: Average Loans (Q4 2011 vs. Q3 2011)
Average Loans (Q4 2011 vs. Q3 2011)
Slide 32: Average Loans (Year to Date)
Average Loans (Dec 31 st - Year to Date)
Slide 33: Average Loan Growth vs Peers
12.0 FULT -™Peer —©Top 50 FULTON FINANCIAL CORPORATION
Slide 34: Net Charge-Offs To Average Loans
Net Charge-Offs To Average Loans 2.00 1.50 ' ‘00 -— 0.50 a 0.00 -<*FULT -%Peer =®Top 50 FULTON FINANCIAL CORPORATION
Slide 35: Non-accrual Loans to Loans
Non-accrual Loans to Loans 3.00 2.00 1.00 0.00 03 04 05 06 07 08 09 10 11 —@ FULT -® Peer —*-Top 50 FULTON FINANCIAL CORPORATION
Slide 36: Allowance for Loan Losses to Loans
Allowance for Loan Losses to Loans 2.60 2.30 (2.44) 2.00 a = 1.40 1.10 0.80 03 04 05 06 07 08 09 10 i —*-FULT -@Peer Top 50 FULTON FINANCIAL CORPORATION
Slide 37: Allowance for Loan Losses to Non-accrual Loans
Allowance for Loan Losses to Non-accrual Loans
Slide 38: Provision for Loan Losses (in millions)
Provision for Loan Losses (in millions) $60 $407) $F e356 $31 $30 $204 $0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 A4 08 09 09 09 09 10 10 10 10 11 11 11 11 FULTON FINANCIAL CORPORATION
Slide 39: Note: Excludes non-accrual TDRs
Note: Excludes non-accrual TDRs
Slide 40: Investment Portfolio (12-31-11)
Investment Portfolio (12-31-11) Book Yield 3.37%
Slide 41: Investment MBS & CMO Cash Flows (2011)
Investment MBS & CMO Cash Flows (2011) Book Price $101.51 Book Price $101.87 Book Price $101.48 Book Price $101.56
Slide 42: Average Deposits (Q4 2011 vs. Q3 2011)
Average Deposits (Q4 2011 vs. Q3 2011)
Slide 43: Average Deposits (Year to Date)
Average Deposits (Dec 31 st - Year to Date)
Slide 44: Average Deposit Growth
Average Deposit Growth 18.0 15.0 12.0 9.0 6.0 3.0 0.0 (3.0) FULT -*Peer “Top 50 FULTON FINANCIAL CORPORATION
Slide 45: 21.0 18.0 15.0 12.0 9.0 6.0 3.0 0.0 (3.0) —-FULT -®Peer “Top 50 FULTON
21.0 18.0 15.0 12.0 9.0 6.0 3.0 0.0 (3.0) —-FULT -®Peer “Top 50 FULTON FINANCIAL CORPORATION
Slide 46: Other Income
Other Income Millions 200.0 160.0; 120.0; 80.0, 40.0; FULTON FINANCIAL CORPORATION
Slide 47: Other Income (Q4 2011 vs. Q3 2011)
Other Income (Q4 2011 vs. Q3 2011)
Slide 48: Other Income (Year to Date)
Other Income (Dec 31 st - Year to Date)
Slide 49: FULT vs Peer Other Income
FULT “&Peer Top 50 10 11 FULTON FINANCIAL CORPORATION
Slide 50: Other Expense (Q4 2011 vs. Q3 2011)
Other Expense (Q4 2011 vs. Q3 2011)
Slide 51: Other Expense (Year to Date)
Other Expense (Dec 31 st - Year to Date)
Slide 52: Goals and Priorities
Goals and Priorities § EPS Growth § ROA Improvement § Spread Management / NIM § Leverage Market Opportunities § Improve Asset Quality § Reduce Credit Costs § Build / Deploy Capital Prudently § Profitable Organic / Acquisitive Growth
Slide 53: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com
Slide 54: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION
Slide 55: Net Charge-offs (YTD Dec 2011)
Net Charge-offs (YTD Dec 2011)
Slide 56: Non-performing Loans (as of 12/31/11)
Non-performing Loans* (as of 12/31/11)
Slide 57: Loan Delinquency (Key Sectors)
Loan Delinquency (Key Sectors) YOY Category Total (%) 12/31/11 90-Days 12/31/11 Total (%) 12/31/10 90-Days 12/31/10 Commercial Loans 2.64 2.23 2.72 2.36 Consumer, leasing and other 2.82 0.90 2.06 0.58 Commercial Mortgage 3.03 2.47 2.70 2.14 Residential Mortgage 4.87 1.49 8.71 5.06 Construction 11.42
Slide 58: Loan Distribution by State (Q4 2011)
Loan Distribution by State (Q4 2011)
Slide 59: Residential Mtg by State (12/31/11)
Residential Mtg by State (12/31/11)
Slide 60: Fulton Mortgage Company
Fulton Mortgage Company § Applications $636 million vs. $715 million (Q4-2011 vs. Q3-2011) § Pipeline $325 million vs. $385 million (Q4-2011 vs. Q3-2011) § Sales gains decreased (Q4-2011 vs. Q3 -2011) § 34% purchase / 66% refinancing (Q4- 2011 Pipeline)
Slide 61: Residential Mortgage Repurchase Activity
Residential Mortgage Repurchase Activity Full year: § 2011 - Servicing Retained § Repurchased $ 5,343,561. § 2011 - Servicing Released § Repurchased $ 1,120,382.
Slide 62: C&I Loans by State (12/31/11)
C&I Loans by State (12/31/11)
Slide 63: CRE Loans by State (12/31/11)
CRE Loans by State (12/31/11)
Slide 64: Construction Loans by State (12/31/11)
Construction Loans by State (12/31/11)
Slide 65: Construction Loans by Type (12/31/11)
Construction Loans by Type (12/31/11)
Slide 66: Shared National Credits (12/31/11)
Shared National Credits (12/31/11)
Slide 67: Projected Investment Security Cash Flows
Projected Investment Security Cash Flows
Slide 68: Investment Portfolio - Transactions (4th Quarter 2011)
Investment Portfolio - Transactions (4 th Quarter 2011) ($ in Thousands)
Slide 69: $300 2.50% $700 22s + 2.00% $600 175% > © = 150% a sao0
$300 2.50% $700 22s + 2.00% $600 175% > © = 900 150% 3 a 2 sao0 1.25% ps 2 8 & } 1.00% 3 3 9300 z a , 0.75% @ Y $200 0.50% $100 0.25% $0 0.00% 1Q2012 2Q2012 3Q2012 4Q2012 FULTON FINANCIAL CORPORATION
Slide 70: Projected FHLB Advance Maturities
Projected FHLB Advance Maturities
Slide 71: ROE and ROA
17.00 1.90 15.00 1.70 isa | 1.50 1.30 11.00 1.10 9.00 0.90 7.00 4 0.70 oe 0.50 3.00 oan 1.00 0.10 1.00) L .10 COD) PPP PS LL LS LS ES SL SS 8) -® ROE -*ROA [ANCIAL CORPORATION
Slide 72: Total Risk-Based Capital Ratio
Total Risk-Based Capital Ratio
Slide 73: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com Version 2012-02-24
Fulton Financial — Investor Presentation (February 2012) on 6ix