Slide 1: Investor Presentation
Investor Presentation Data as of June 30, 2012 Ticker Symbol: FULT (NASDAQ)
Slide 2: 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 words such as “may,” “should
Slide 3: About Us
About Us § Mid-Atlantic financial holding company § 6 community banks / 5 states § Fulton Financial Advisors § Fulton Mortgage Company § 270 community banking offices § Asset size: $16.3 billion § 3,800 team members § Market capitalization: $ 2.0 billion § Book value per common share: $ 10.16 § Tang
Slide 4: Corporate Goals and Priorities
§ 1. EPS Growth § 2. ROA Improvement § 3. Spread Management /Net Interest Margin § 4. Improve Asset Quality § 5. Deploy Capital Prudently § 6. Leverage Market Opportunities § 7. Profitable Organic / Acquisitive Growth Corporate Goals and Priorities
Slide 5: Goals and Priorities: Earnings per Share Growth
Goals and Priorities 1. Earnings per Share Growth ü Q2/12 Diluted EPS: 20 cents Up 5.3% linked quarter (19 cents) Up 11.1% year over year (18 cents)
Slide 6: Income Statement Summary (Q2 2012 vs Q1 2012)
Q22012. 91.2012 $ % (dollars in thousands, except per-share data) Net Interest Income $ 137,530 ¢$ 138,690 $ (1,160) -1% Loan Loss Provision (25,500) (28,000) 2,500 -9% Non-Interest Income 51,830 50,430 1,400 3% Securities Gains 1,540 1,250 290 23% Non-Interest Expenses (112,150) (110,710) (1,440) 1
Slide 7: Income Statement Summary
Income Statement Summary (Six Months Ended June 30 th )
Slide 8: Average Loans (Q2 2012 vs Q2 2011)
Q2 2012 Q2 2011 $ % (dollars in millions) Comm'! Mort $ 4650 $ 4,440 $ 210 5% Commercial 3,540 3,680 (140) -4% Home Equity 1,600 1,625 (25) -2% Resid Mort 1,185 1,025 160 16% Construction 620 680 (60) -9% Consumer/ Other 390 400 (10) _-3% Total Loans $ 11,985 $ 11,850 $ 135 1% FULTON FINANCIAL CORPO
Slide 9: Quarterly Earnings per Share
$0.20 $0.15 $0.10 $0.05 $0.00 7 ; Ql Q2 Q Q4 QI Q2 Qs QF QI Q2 Qz Q4 QI QZ 09 09 09 09 10 10 10 10 11 11 11 11 12 12 FULTON FINANCIAL CORPORATION
Slide 10: Non-Interest Income (in millions)
Non-Interest Income (in millions) $200 7 $160 $120 $80 +1] $40 +1] 5. 4 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 @YTD Jun O YTD Dec FULTON FINANCIAL CORPORATION
Slide 11: Non-Interest Income Detail
Q2 2012 Q12012 $ % (dollars in thousands) Mort. Banking Income $ 11,140 $ 10,050 1,090 11% Invt Mgt & Trust 9,820 9,380 $ 440 5% Overdraft & NSF Fees 8,090 7,970 120 2% Service Charges 4,460 4,260 200 5% Merchant Fees 3,380 2,860 520 18% Cash Mgt Fees 2,820 2,610 210 8% Debit Card Fees 2,210 2,100 1
Slide 12: Non-Interest Income
Non-Interest Income (Six Months Ended June 30 th )
Slide 13: Non-Interest Income Growth
Non-Interest Income Growth § Fulton Mortgage Company § Significant Contributor to Non-interest Income § Strong Pipeline with Low Rate Environment § Leverage our Market Reputation and Brand § Expanded Origination Staff § Fulton Financial Advisors ($4.0 billion A.U.M.) § Brokerage Production Mix (non-
Slide 14: Fulton Mortgage Company
Fulton Mortgage Company § Applications up linked quarter: $824 million from $812 million § Pipeline $520 million vs. $428 million (Q2/12 vs. Q1/12) § 39% purchase / 61% refinancing (Q2/12) § Sales gains up linked quarter
Slide 15: Fulton Mortgage Company
Fulton Mortgage Company 78% Availabl e for Sale GOS Spread 1.42% GOS Spread 1.30% GOS Spread 1.55% GOS Spread 1.66% 84% Available for Sale 83% Available for Sale 71% Availabl e for Sale 86% Available for Sale GOS Spread 1.58% 69% Availabl e for Sale ($ in thousands)
Slide 16: Non-Interest Expenses
Q22012 «91 2012 $ % (dollars in thousands) Salaries & Benefits $ 60,090 $ 60,360 $ (270) 0% Occupancy & Equip. 14,390 14,300 90 1% Data Proc. & Software 6,030 5,860 170 3% Outside Services 4,480 2,310 2,170 94% FDIC Insurance 3,000 3,020 (20) -1% Professional Fees 2,980 2,580 400 16% OREO & Repo Exp
Slide 17: Priority Resource Commitments
1. Enterprise-wide Risk Management and Compliance 2. Core Platform Conversion (Continuation of longstanding Fiserv Relationship) 3. Asset Quality Improvement Priority Resource Commitments
Slide 18: 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 June 30, 2012 Associated Banc-Corp BancorpSou
Slide 19: More Efficient Than Peers
More Efficient Than Peers * Comprised of the 50 largest publicly traded domestic banks/thrifts in asset size as of December 31, 2011. Excludes credit card companies. Source : SNL.com
Slide 20: Improve Our Return on Assets
2. Improve Our Return on Assets ü Q2/12: 0.98% YTD 6/30/12: 0.96% Goals and Priorities
Slide 21: Return on Assets vs Peers
1.60 1.20 0.80 0.40 0.00 2005 = 2006 = 2007S 2008 = 2009S 2010S 2011 3S YTD 06/12 040 <FULT “Peer “Top 50 FULTON FINANCIAL CORPORATION
Slide 22: Return on Average Assets by Bank
Lafayette Ambassador Bank FNB Bank, NA Fulton Bank, NA Swineford National Bank The Columbia Bank Fulton Bank of New Jersey Fulton Financial Corporation Assets ($ Millions) $ 1,409 362 9,109 287 2,016 3,337 16,338 Return on Average Assets 6 Months 06/30/12 1.63% 1.25% 1.25% 1.21% 0.73% 0.36% 0.96% Ye
Slide 23: Spread Management / Net Interest Margin
§ 3. Spread Management / Net Interest Margin § Q2/12: 3.78% ü Cost of interest bearing liabilities: 0.93% ü Yield on earning assets: 4.48% Goals and Priorities
Slide 24: Net Interest Margin vs Peers
4.00 3.75 3.50 3.25 3.00 Q109 Q209 Q309 Q409 QI1O QZ10 Q310 Q41O QUIT Q2ZIT QIIT Q4IT QUIZ Q2IZ “BE FULT —@Peer —#-Top 50 FULTON FINANCIAL CORPORATION
Slide 25: Interest Rate Shocks
6 month cumulative gap: 1.10 Interest Rate Shocks (6/30/12) Rate Change NII Change (Annual) % Change +400 bp + $ 70.5 million + 13.0% +300 bp + $ 49.6 million + 9.1% +200 bp + $ 28.2 million + 5.2% +100 bp + $ 8.2 million + 1.5% - 100 bp - $ 17.1 million - 3.1%
Slide 26: Deposit Mix
Qi 2009 @Non-Int DDA aint DDA Money Mkt Savings uTime Q2.2012 wNon-Int DDA aint DDA Money Mkt Savings uTime FULTON FINANCIAL CORPORATION
Slide 27: Improve Asset Quality
§ 4. Improve Asset Quality Goals and Priorities
Slide 28: Non-accrual Loans to Loans
Non-accrual Loans to Loans 3.00 2.00 0.00 2005 2006 2007 2008 2009 2010 2011 Q212 <@FULT -®Peer Top 50 FULTON FINANCIAL CORPORATION
Slide 29: Allowance for Loan Losses to Loans
Allowance for Loan Losses to Loans
Slide 30: Non-performing Loans
Non-performing Loans* (6/30/12)
Slide 31: Delinquency by Loan Type
June 30, 2012 March 31, 2012 290 Days Total 290 Days Total Commercial Mortgage 1.78% 2.19% 2.24% 2.67% Commercial Loans 1.91% 2.57% 2.36% 2.71% Construction Loans 6.96% 7.91% 9.25% 9.81% Residential Mortgage 2.15% 5.09% 1.96% 4.72% Home Equity 0.71% 1.54% 0.68% 1.42% Consumer, leasing and other 0.99
Slide 32: Construction Exposure
Construction Exposure Construction Loans / Total Loans 10.5% 8.2% 6.7% 5.1% 5.2%
Slide 33: Quarterly Provision for Loan Losses
$60 7 50 «50 45 45 40 40 40 40 $40 71 at 36 31 30 28 25.5 $20 71] $0 HHS r alles Sa ale QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI QZ 09 09 #09 «609)«61006100=«6«:100=«10—S to 11° (12 «12 FULTON FINANCIAL CORPORATION
Slide 34: Deploy Capital Prudently
§ 5. Deploy Capital Prudently Goals and Priorities
Slide 35: Total Risk-Based Capital Ratio
Total Risk-Based Capital Ratio
Slide 36: Regulatory Capital Ratios
Well- FULT Capitalized Total Risk-Based Capital Ratio 15.40% 10.00% Tier 1 Risk-Based Capital Ratio 13.20% 6.00% Leverage Capital Ratio 10.50% 5.00% FULTON FINANCIAL CORPORATION
Slide 37: Capital Adequacy vs. Basel III
Capital Adequacy vs. Basel III
Slide 38: Tangible Book Value Per Share
Tangible Book Value Per Share CAGR = 10.9%
Slide 39: Price Multiple vs. Peer Group
Price Multiple vs. Peer Group Note: As of 8/06/2012
Slide 40: Deploying Capital
Deploying Capital § Current Uses § Support organic growth § Increase our cash dividend § Stock repurchase § Potential Uses § Acquisitions with right opportunities
Slide 41: FULT - Cash Dividend and Yield
FULT - Cash Dividend and Yield CAGR (cash dividend) = 29.8%
Slide 42: Stock Repurchase Program
§ Program authorized: June 2012 § Initial shares purchased: July 2012 § Up to 5 million shares through 12/31/12 § About 2.5% of outstanding shares § Shares repurchased as of market close August 8, 2012: 859,534 § Average purchase price: $ 9.37 Stock Repurchase Program
Slide 43: Leverage Market Opportunities
§ 6. Leverage Market Opportunities Goals and Priorities
Slide 44: Superior Customer Experience
Superior Customer Experience CARE, LISTEN, UNDERSTAND and DELIVER
Slide 45: Retail Customer Satisfaction
§ Top 3 Box Satisfaction: 84% § Delivery on our Promise: Top 3 Box 85% *Survey Sample Size: 4,897 customers Retail Customer Satisfaction*
Slide 46: New Household Growth YTD
§ Commercial Households: § Up 2.9% YTD (5.8% annualized) § Retail Households: § Up 1.6% YTD (3.2% annualized) § Net Household Lift: § Up 1.7% YTD (3.4% annualized) New Household Growth YTD
Slide 47: Top County Market Share
§ Counties ranked #1 in deposit market share § Lebanon, PA (Fulton Bank 31.2%) § Snyder, PA (Swineford National Bank 30.3%) § Salem, NJ (Fulton Bank of New Jersey 27.2%) § Counties ranked #2 in deposit market share § Lancaster, PA (Fulton Bank 22.7%) § Montour, PA (FNB Bank 29.5%) § Gloucester, NJ (
Slide 48: Profitable Organic / Acquisitive Growth
§ 7. Profitable Organic / Acquisitive Growth Goals and Priorities
Slide 49: Fulton Banks Footprint
@ The Columbia Bank @ FNB Bank @ Fulton Bank i Fulton Bank of New Jersey Bi Lafayette Ambassador Bank @ Swineford National Bank FULTON FINANCIAL CORPORATION
Slide 50: Manahawkin, NJ
‘Manahawkin, Apr 852 FULTON FINANCIAL CORPORATION
Slide 51: Acquisitive Growth
§ Optimal asset size: $ 500 million to $2.5 billion (102 banks in footprint) § Good fit geographically § Earnings accretive /reasonable tangible book dilution § Culturally compatible § Acceptable risk profile § Meaningful existing market share Acquisitive Growth
Slide 52: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com Version 2012-08-13
Slide 53: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION
Slide 54: Deposits (Q2 2012 vs Q1 2012)
Q2 2012 Q1 2012 $ % (dollars in millions) Nonint DDA $ 2,670 $ 2,570 $ 100 4% Int DDA 2,480 2,460 20 1% Savings/MMDA 3,290 3,340 (50) -1% Total Core Deposits 8,440 8,370 70 1% CD's 3,800 3,950 (150) 4% Cash Management 370 360 10 3% Total Deposits $ 12,610 $ 12,680 $ (70) -1% FULTON FINANCIAL CORPORA
Slide 55: Net Interest Margin Summary
Q2 2012 Q12012 Change % Net Interest Margin Yield on Earning Assets Cost of Funds Fed Funds 3.78% 4.48% 0.75% 0.25% 3.85% 4.61% 0.81% 0.25% -0.07% -2% -0.13% -3% -0.06% -7% FULTON FINANCIAL CORPORATION
Slide 56: Projected Interest Rates and Cash Flows
$800 2.50% $700 2.25% 2.00% $600 % 1.75 $ z 3 500 150% © = o 5 = $400 1.25% B s 00% 8 Ss 1 a $300 0.96 i =) 0.75% a $200 i 0.50% $100 0.25% $0 0.00% 302012 4Q2012 102013 202013 FULTON FINANCIAL CORPORATION
Slide 57: Period-End Loans
Q22012 Qi 2012 $ % (dollars in millions) Comm'l Mort $ 4635 $ 4,620 $ 15 0% Commercial 3,530 3,585 (55) -2% Home Equity 1,600 1,610 (10) -1% Resid Mort 1,180 1,140 40 4% Construction 640 640 - 0% Consumer/Other 380 385 (5) _-1% _ Total Loans $ 11,965 $ 11,980 $ (15) 0%. FULTON FINANCIAL CORPORATION
Slide 58: Summary of Larger Loans
§ 57 relationships with commitments to lend $20 million or more § Maximum individual commitment: $39 million § Maximum commitment to any builder/developer: $28 million § Maximum commitment to any one development project: $15 million § Average commercial lending relationship size is $470,776 § Loans
Slide 59: Average Loan Growth
Average Loan Growth (vs. prior year period) 12.0 9.0 6.0 3.0 0.0 -3.0 2005 2006 2007 2008 2009 YTD 06/12 1 —=FULT Peer Top 50 FULTON FINANCIAL CORPORATION
Slide 60: Net Charge-offs (YTD June 2012)
Net Charge-offs (YTD June 2012)
Slide 61: Net Charge-Offs To Average Loans
Net Charge-Offs To Average Loans 1.50 1.00 [0.54 0.50 [0.53 0.00 2005 2006 2007 2008 2009 2010 2011 = YTD 06/12 <FULT lPeer t-Top 50 FULTON FINANCIAL CORPORATION
Slide 62: Allowance for Loan Losses to Non-accrual Loans
Allowance for Loan Losses to Non-accrual Loans
Slide 63: Commercial Loans by Industry
Commercial Loans by Industry
Slide 64: Loan Distribution by State
Loan Distribution by State (6/30/12)
Slide 65: Residential Mortgages
Residential Mortgages (6/30/12)
Slide 66: Residential Mortgage Repurchase Activity
Residential Mortgage Repurchase Activity First & Second Quarter: § 2012 - Servicing Retained § Repurchased $ 3,550,000. § 2012 - Servicing Released § Repurchased $ 610,000.
Slide 67: Loans, NPLs and Allowance by State
Ending Balance % of Total NPL Allowance Balance Allocations (dollars in thousands) Pennsylvania $2,510,000 70.9% 14.4% 8.5% 5.1% 1.1% $ 43,900 $ 38,620 14,620 23,410 5,510 4,750 3,740 4,510 200 640 New Jersey 510,000 Maryland 300,000 Virginia 180,000 Delaware 40,000 $3,540,000 $ 67,970 $ 71,930 FULT
Slide 68: Commercial Real Estate Loans
Commercial Real Estate Loans (6/30/12)
Slide 69: Construction Loans
Construction Loans (6/30/12)
Slide 70: Construction Loans by Type
Construction Loans by Type (6/30/12)
Slide 71: Shared National Credits
Shared National Credits (6/30/12)
Slide 72: Troubled Debt Restructurings
Note: Excludes non-accrual TDRs
Slide 73: Investment Portfolio
Investment Portfolio (06-30-12) Book Yield (monthly) 3.49%
Slide 74: Projected Investment Security Cash Flows
Projected Investment Security Cash Flows
Slide 75: Investment MBS & CMO Cash Flows (2011-2012)
Investment MBS & CMO Cash Flows (2011-2012) Book Price $101.51 Book Price $101.87 Book Price $101.48 Book Price $102.12
Slide 76: Investment Portfolio - Transactions (2nd Quarter 2012)
Investment Portfolio - Transactions (2 ND Quarter 2012) ($ in Thousands)
Slide 77: Projected FHLB Advance Maturities
Projected FHLB Advance Maturities
Slide 78: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com Version 2012-08-13