Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q1 2024 Earnings Presentation
20 slides from Fulton Financial's earnings presentation, Apr 17, 2024
Slide 1: First Quarter 2024 Results
FIRST QUARTER 2024 RESULTS NASDAQ: FULT Data as of or for the period ended March 31, 2024 unless otherwise noted
Slide 2: Forward-looking statements
This presentation may contain forward-looking statements with respect to Fulton Financial Corporation's (the "Corporation") 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
Slide 3: A Stable Deposit Portfolio That Remains Granular, Tenured and Diversified
A STABLE DEPOSIT PORTFOLIO THAT REMAINS GRANULAR, TENURED AND DIVERSIFIED WITH SIGNIFICANT LIQUIDITY COVERAGE Deposit Mix By Customer Deposit Portfolio Highlights(1) (March 31, 2024) 755,000 deposit accounts $28,820 average deposit account balance 10+ years average deposit account age 24% estimated
Slide 4: Loan Portfolio Diversified and Granular, Low Office Concentration at 3%
THE LOAN PORTFOLIO IS DIVERSIFIED AND GRANULAR, WITH LOW OFFICE CONCENTRATION AT 3% OF LOANS Total Loan Portfolio Office Only Profile • $694 million in office loan commitments (March 31, 2024) • $662 million in office loans outstanding • representing 3% of total loans • Average loan size is $2.2 mil
Slide 5: Office Portfolio Originated Over Time, Granular and Diverse
THE OFFICE PORTFOLIO HAS BEEN ORIGINATED OVER TIME, WILL MATURE OVER TIME, AND REMAINS GRANULAR AND DIVERSE Granular Loan Portfolio Geographically Diverse by MSA(1) 204 $204 $173 $161 $93 75 $63 13 16 7 (2) Under $1MM $1MM - $5MM - $10MM - Greater than $5MM $10MM $20MM $20MM Commitments (in millions
Slide 6: Multi-Family Loans Represent 7% of Total Loan Portfolio
MULTI-FAMILY LOANS REPRESENT 7% OF THE TOTAL LOAN PORTFOLIO WITH A SMALL AVERAGE LOAN SIZE Total Loan Portfolio (March 31, 2024) Multi-Family Profile • $2.1 billion in multi-family loan commitments • $1.6 billion in multi-family loans outstanding • Average loan size is $3.8 million • Weighted averag
Slide 7: Multi-Family Portfolio Recently Originated and Appraised, Geographically Diverse
THE MULTI-FAMILY PORTFOLIO HAS BEEN RECENTLY ORIGINATED AND APPRAISED, HAS A LONG-DATED MATURITY HORIZON AND IS ALSO GEOGRAPHICALLY DIVERSE Diversified by Size Diversified by Geographical MSA 319 $864 67% $863 60% 59% 58% 58% 53% $595 $449 125 $395 $311 55 $237 $193 $109 33 33 $117 $122 $6.9 $5.8 $3
Slide 8: 1Q24 4Q23 1Q23 Financial Summary
1Q24 4Q23 1Q23 (dollars in thousands, except per-share data) Net interest income $206,937 $212,006 $215,587 Provision for credit losses 10,925 9,808 24,544 Non-interest income 57,140 60,130 51,730 Securities gains (losses) — (752) 23 Non-interest expense 177,600 180,552 159,616 Income before income
Slide 9: Noninterest-Bearing Deposit Trends
NONINTEREST-BEARING DEPOSIT TRENDS • Growth in the Corporation’s commercial banking business, as well as the historically low levels of interest rates for much of the post-2008 period, led to a generally increasing trend in the percentage of noninterest-bearing deposits. • Prior to 2008, noninterest
Slide 10: Net Interest Income and NIM
NET INTEREST INCOME AND NIM 1Q24 Highlights Average Interest-Earning Assets & Yields (dollars in billions) • NIM was 3.32% in the first quarter of 2024, declining four basis points compared to the fourth quarter of 2023. • Loan yield improved by seven basis points during the first quarter of 2024, i
Slide 11: Asset Quality
ASSET QUALITY Provision for Credit Losses Non-Performing Loans (“NPLs”) & NPLs to Loans Net Charge-offs (“NCOs”) and NCOs to Average Loans ACL(1) to NPLs & Loans (1) The allowance for credit losses (“ACL”) relates specifically to “Loans, net of unearned income” and does not include reserves related
Slide 12: Non-Interest Income
NON-INTEREST INCOME(1) 1Q24 4Q23 Change Non-interest Income (dollars in thousands) (percentage of total non-interest income, Wealth Management $ 20,155 $ 19,388 $ 767 three months ended March 31, 2024) Commercial Banking 18,829 20,780 (1,951) Consumer Banking 11,668 12,087 (419) Mortgage Banking 3,0
Slide 13: Non-Interest Expense
NON-INTEREST EXPENSE 1Q24 4Q23 Change (dollars in thousands) Non-interest Expense Salaries and employee benefits $ 95,481 $ 97,275 $ (1,794) (percentage of total non-interest expense, three months ended March 31, 2024) Data processing and software 17,661 16,985 676 Net Occupancy 16,149 14,647 1,502
Slide 14: Regulatory Capital
(as of March 31, 2024) (dollars in millions) $790 $581 $730 $1,181 (2) (1) Regulatory capital ratios and excess capital amounts as of March 31, 2024 are preliminary estimates. (2) Excesses shown are to regulatory minimums, including the 250 basis point capital conservation buffer, except for Tier 1
Slide 15: Liquidity Profile
LIQUIDITY PROFILE Available Liquidity March 31, 2024 Estimated Uninsured Deposits March 31, 2024 (dollars in thousands) Cash On-Hand (1) $ 147 Total Deposits $ 21,742 Estimated Uninsured Deposits $ 7,070 Federal Reserve Capacity 1,231 Estimated Uninsured Deposits to Total Deposits 33% Total Availabl
Slide 16: 2024 Outlook
2024 OUTLOOK Net interest income: $790 - $820 million(1) Provision for credit losses: $45 - $65 million Non-interest income: $235 - $250 million(2) Non-interest expense: $670 - $690(3) Effective tax rate: 17% - 18% (1) Assumes Fed Funds Rate decreases of 75 basis points in the second half of 2024 (2
Slide 17: Non-GAAP financial measures note
Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-GAAP financial measures is c
Slide 18: Operating return on average assets
Three months ended (dollars in thousands) Mar 31 Dec 31 Mar 31 2024 2023 2023 Operating return on average assets Net income $61,941 $64,263 $68,314 Plus: Core deposit intangible amortization 441 441 514 Plus: Interest rate derivative transition valuation (1) (151) (1,102) — Plus: FDIC special assess
Slide 19: Operating return on average common shareholders' equity (tangible)
Three months ended (dollars in thousands) Mar 31 Dec 31 Mar 31 2024 2023 2023 Operating return on average common shareholders' equity (tangible) Net income available to common shareholders $59,379 $61,701 $65,752 Plus: Intangible amortization 573 597 674 Plus: Interest rate derivative transition val
Slide 20: Efficiency ratio reconciliation
(dollars in thousands) Three months ended Mar 31 Dec 31 Mar 31 Efficiency ratio 2024 2023 2023 Non-interest expense $177,600 $180,552 $159,616 Less: Intangible amortization (573) (597) (674) Less: FDIC special assessment (956) (6,494) — Less: FultonFirst implementation and asset disposals (6,329) (3