Fulton Financial Corporation · NASDAQ:FULT

Fulton Financial — Investor Presentation (November 2011)

76 slides from Fulton Financial's investor presentation, Nov 21, 2011

  1. Slide 1: Investor Presentation

    Investor Presentation Data as of September 30, 2011

  2. 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

  3. Slide 3: Presentation Outline

    Presentation Outline § About Us § Strategy § Q3/11 Overview § Growth § Capital § Risk Management § Detailed Financial Performance § Supplemental Information

  4. Slide 4: About Us (as of 9/30/11)

    About Us (as of 9/30/11) § Mid-Atlantic financial holding company § 6 community banks / 5 states § Fulton Financial Advisors § Fulton Mortgage Company § 272 community banking offices § Asset size: $16.3 billion § 3,800 team members § Market capitalization: $1.8 billion § Book value per common share:

  5. Slide 5: A Valuable Geographic Franchise

    A Valuable Geographic Franchise

  6. Slide 6: Further Charter Consolidation

    Further Charter Consolidation § Fulton Bank of New Jersey § Merger of Skylands Community Bank and The Bank (10/23/11) § Headquartered in Mt. Laurel § Assets of $3.5 billion / 3 rd largest commercial bank in NJ § 75 branches § 15 of 21 counties § Single brand in Philadelphia SMSA

  7. Slide 7: Further Charter Consolidation

    Further Charter Consolidation

  8. Slide 8: Superior Customer Experience

    Superior Customer Experience WE WILL CARE, LISTEN, UNDERSTAND, AND DELIVER

  9. Slide 9: Our Brand

    Our Brand COMMUNITY BANKING SMALL BUSINESS HIGH NET WORTH RETAIL BANKING

  10. Slide 10: Corporate Culture / Key Resources

    § Corporate Culture § Customer Commitment § Team-Based Relationship Management § Branch Manager Empowerment § Superior Customer Experience § Reputation § Brand Key Resources

  11. Slide 11: 3rd Quarter Highlights

    3rd Quarter Highlights § Diluted EPS of 20 cents, up 11 % linked quarter, 25% over Q3/10 § Continued ROA improvement, up 6 bps LQ § Non-interest income growth, up 3% LQ § $5 million decrease in provision § Lower funding costs / earning asset yields, NIM of 3.93%

  12. Slide 12: 3rd Quarter Overview / Credit

    3rd Quarter Overview / Credit § Improvement in several credit metrics § Reduction in the provision § Loan growth offset by decrease in construction book § Continued strength in mortgage banking

  13. Slide 13: Strategy - Earning Asset Growth

    § Preserve and expand existing relationships § Capitalize on market disruption - companies that value relationships § Portfolio shorter-term mortgages Strategy - Earning Asset Growth

  14. Slide 14: Portfolio Mortgage Rationale

    § Significant yield pickup (3.70% vs. 2.00% from MBS security yields) § Shorter duration loans - 3.6 year average life on 15 year term § Limits extension risk - extends to 6.3 years with 300 basis point rate increase Portfolio Mortgage Rationale

  15. Slide 15: Deposit Growth

    Deposit Growth § Reduction in funding costs / change in mix § Critical resource that positions us for recovery-driven rise in credit demand § Continued re-pricing of maturing time deposits

  16. Slide 16: Small Business Growth

    Small Business Growth § Priority segment / dedicated segment management § New account growth up 5% YTD § Online Business Resource Center

  17. Slide 17: Non-Interest Income

    Non-Interest Income § Fulton Mortgage Company § Leverage industry reputation § Expand 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 revisions § Household gr

  18. Slide 18: Capital Adequacy (09/30/11)

    Capital Adequacy (09/30/11)

  19. Slide 19: Potential Uses of Capital

    Potential Uses of Capital § Support growth § Dividends § Acquisitions § Repurchase stock

  20. Slide 20: Risk Management

    § Credit Quality § Compliance § Capital Planning § Stress Testing § Industry and Market Reputation Risk Management

  21. Slide 21: Summary of Larger Loans (9/30/11)

    § 56 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 relationship size is $465,000 § Loans

  22. Slide 22: Commercial Loans by Industry (09/30/11)

    Commercial Loans by Industry (09/30/11 )

  23. Slide 23: Our Corporate Priorities

    Our Corporate Priorities § ROA improvement § Spread management / NIM § Leverage market growth opportunities / small business sector § Improve asset quality / reduce credit costs § Build capital / deploy prudently with right opportunity § Focus on EPS growth

  24. Slide 24: Details of Financial Performance

    Details of Financial Performance

  25. Slide 25: Income Statement Summary Q3 vs Q2 2011

    Q3 2011 Q2 2011 $ % (dollars in thousands) Net Interest Income $ 141,490 $ 140,640 $ 850 1% Loan Loss Provision (31,000) (36,000) 5,000 -14% Other Income 49,300 47,710 1,590 3% Securities Losses (440) (340) (100) 29% Other Expenses (106,590) (102,470) (4,120) 4% Income Taxes (13,440) (13,150) (290)

  26. Slide 26: Income Statement Summary (9/30/11)

    Income Statement Summary (9/30/11)

  27. Slide 27: 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 September 30, 2011 Associated Banc-Corp Banco

  28. Slide 28: Net interest margin vs peers

    4.00 3.75 3.50 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 08 09 09 09 09 10 10 10 10 11 11 11 Peer -*Top 50 “= FULT FULTON FINANCIAL CORPORATION

  29. Slide 29: Interest Rates

    Interest Rates (Sept 30 th - Quarter)

  30. Slide 30: Interest Rate Shocks (09/30/11)

    6 month cumulative gap: 1.10 Interest Rate Shocks (09/30/11 ) Rate Change NII Change (Annual) % Change +400 bp + $ 88.8 million + 15.4% +300 bp + $ 62.5 million + 10.8% +200 bp + $ 36.2 million + 6.3% +100 bp + $ 11.6 million + 2.0% - 100 bp - $ 13.0 million - 2.3%

  31. Slide 31: Average Loans (Q3 2011 vs. Q2 2011)

    Average Loans ( Q3 2011 vs. Q2 2011 )

  32. Slide 32: Average Loans (Year to Date)

    Average Loans (Sept 30 th - Year to Date)

  33. Slide 33: Average Loan Growth / Net Charge-Offs

    Average Loan Growth Net Charge-Offs to Average Loans

  34. Slide 34: Net Charge-Offs to Average Loans

    2.00 1.50 1.00 0.50 0.00 03 04 05 06 07 08 09 10 YTD 09/11 -—~FULT -®Peer Top 50 FULTON FINANCIAL CORPORATION

  35. Slide 35: Allowance for Loan Losses to Loans

    Advance for Loan Losses to Loans

  36. Slide 36: Allowance for Loan Losses to Non-accrual Loans

    Allowance for Loan Losses to Non-accrual Loans

  37. Slide 37: Provision for Loan Losses

    Allowance for Loan Losses to Non-accrual Loans Provision for Loan Losses (in millions)

  38. Slide 38: Provision for Loan Losses (in millions)

    $60 $40 $20 $0 $65 $50 $50 $45 $45 $40 $40 $49 $40 $31 Q4 Q1 Q2 Q3 Q4 Qi Q2 Q3 Q4 QI Q2 Q3 08 09 09 09 09 10 10 10 10 11 11 11 FULTON FINANCIAL CORPORATION

  39. Slide 39: Construction Exposure

    Construction Exposure (7%) (23%) (18%) ($ in millions) Construction Loans / Total Loans 12.2% 10.5% 8.2% 6.7% (22%) 7.0% 5.5% Troubled Debt Restructurings

  40. Slide 40: Troubled Debt Restructurings

    09/30/11 06/30/11 (in thousands) Residential Mtg $ 36,110 $ 37,010 C&lI/Comm'! Mtg 25,650 33,780 Construction 5,870 5,590 Consumer/other 200 260 $ 67,830 $ 76,640 Note: Excludes non-accrual TDR's FULTON FINANCIAL CORPORATION

  41. Slide 41: Fulton Mortgage Company

    Fulton Mortgage Company § Applications up linked quarter / $715 million from $477 million § Pipeline $385 million vs. $215 million (Q3-2011 vs. Q2-2011) § 35% purchase / 65% refinancing (Q3- 2011 Pipeline)

  42. Slide 42: Residential Mortgage Repurchase Activity

    Residential Mortgage Repurchase Activity § 2011 - Servicing Retained § Repurchased $ 4,927,000. § 2011 - Servicing Released § Repurchased $ 969,000.

  43. Slide 43: Investment Portfolio (9-30-11)

    Investment Portfolio (9-30-11)

  44. Slide 44: Municipal Holdings

    - Municipal Holdings Investment Portfolio (09/30/11)

  45. Slide 45: Investment Portfolio Pooled TruPS Holdings

    - Investment Portfolio Pooled TruPS Holdings (09/30/11)

  46. Slide 46: Average Deposits (Q3 vs Q2 2011)

    Average Deposits (Q3 2011 vs. Q2 2011)

  47. Slide 47: Average Deposits (Year to Date)

    Average Deposits (Sept 30 th - Year to Date) Average Deposit Growth

  48. Slide 48: Average Deposit Growth vs peers

    18.0 15.0 12.0 9.0 6.0 3.0 0.0 0) -—-FULT -®Peer ==Top 50 FULTON FINANCIAL CORPORATION

  49. Slide 49: Deposit chart vs peers

    21.0 18.0 15.0 12.0 9.0 6.0 3.0 0.0 0) —-FULT -®Peer Top 50 FULTON FINANCIAL CORPORATION

  50. Slide 50: Millions (YTD chart)

    Millions 200.0, 160.0, 120.0; 80.0; 40.0; 0.0 YSesRSsE? See ees se ss @YTD Sep YTD Dec FULTON FINANCIAL CORPORATION

  51. Slide 51: Other Income (Q3 2011 vs. Q2 2011)

    Other Income (Q3 2011 vs. Q2 2011)

  52. Slide 52: Other Income (Year to Date)

    Other Income (Sept 30 th - Year to Date)

  53. Slide 53: Other Income vs peers

    64.0 62.0 60.0 58.0 56.0 54.0 52.0 Bes) 50.0 T T T T 03 04 05 06 07 08 09 10 YTD 9/11 —~FULT Peer Top 50 FULTON FINANCIAL CORPORATION

  54. Slide 54: Other Expense (Q3 2011 vs. Q2 2011)

    Other Expense (Q3 2011 vs. Q2 2011)

  55. Slide 55: Other Expense (Year to Date)

    Other Expense (Sept 30 th - Year to Date)

  56. Slide 56: Income Statement Summary (YTD December)

    Income Statement Summary (YTD December)

  57. Slide 57: Income Statement Summary (YTD December)

    Income Statement Summary (YTD December)

  58. Slide 58: Fulton Financial Corporation

    Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com

  59. Slide 59: Fulton Financial Corporation

    FULTON FINANCIAL CORPORATION

  60. Slide 60: Net Charge-offs (Recoveries) (Q3 2011)

    Net Charge-offs (Recoveries) (Q3 2011)

  61. Slide 61: Non-performing Loans (09/30/11)

    Non-performing Loans* (09/30/11)

  62. Slide 62: Loan Delinquency (Key Sectors) YOY

    Category Total (%) 09/30/11 90-Days 09/30/11 Total (%) 09/30/10 90-Days 09/30/10 Commercial Loans 3.07 2.50 2.31 2.87 Consumer Direct 1.70 0.81 1.54 0.70 Commercial Mortgage 3.13 2.29 2.87 2.31 Residential Mortgage 7.64 4.62 9.12 5.20 Construction 9.36 8.08 12.02 10.98 Total Portfolio 3.60 2.61 3.86

  63. Slide 63: Loan Distribution by State (Q3 2011)

    Loan Distribution by State (Q3 2011)

  64. Slide 64: Residential Mtg by State

    Residential Mtg by State (09/30/11)

  65. Slide 65: C&I Loans by State

    C&I Loans by State (09/30/11)

  66. Slide 66: CRE Loans by State

    CRE Loans by State (09/30/11)

  67. Slide 67: Construction Loans by State

    Construction Loans by state (09/30/11)

  68. Slide 68: Construction Loans by Type

    Construction Loans by Type (09/30/11)

  69. Slide 69: Shared National Credits (09/30/11)

    Shared National Credits (09/30/11)

  70. Slide 70: Investment Security Cash Flows

    Investment Security Cash Flows

  71. Slide 71: Investment Portfolio Transactions (3rd Quarter 2011)

    - Investment Portfolio Transactions (3 rd Quarter 2011) ($ in Millions)

  72. Slide 72: Investment security cash flow chart

    $900 2.50% = $800 5 + 2.00% = $700 - . = & $500 + | 5 + 1.25% § $400 | 2° 1.00% 2 3 Bae 0.75% * $200) 0.50% $100 0.25% $0 0.00% 4Q2011 1Q2012 202012 3Q2012 4Q2012 FULTON FINANCIAL CORPORATION

  73. Slide 73: FHLB Rates

    FHLB Rates x £ £ 8 £ 8s 8 8 € 8 S 8 F< mw A aA 0.00% (vou ut) santMeW a2ueApy gTHI 192012 292012 302012 402012 4q2011 | Ze Els Zig 88 2

  74. Slide 74: ROE and ROA

    17.00 1.90 15.00 y 170 13.00 + y ase - 1.30 11.00 - 1.0 9.00 + 0.90 7.00 0.70 500 0.50 3.00 | oso 1.00 - 0.10 1.00 > $ (0.10 (0) SPP SPF PP FP SS PS Sgr O10” © -™ROE -*-ROA FULTON FINANCIAL CORPORATION

  75. Slide 75: Total Risk-Based Capital Ratio

    Total Risk-Based Capital Ratio

  76. Slide 76: Fulton Financial Corporation

    Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com Version 2011-11-21

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