Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Investor Presentation (November 2010)
56 slides from Fulton Financial's investor presentation, Nov 24, 2010
Slide 1: Fulton Financial Corporation Investor Presentation
Fulton Financial Corporation - ------------------------------------- Investor Presentation Data as of September 30, 2010
Slide 2: Forward-Looking Statement
Forward-Looking Statement n This presentation may contain forward-looking statements about Fulton Financial Corporation’s financial condition, results of operations, business, strategies, products and services. You can identify forward-looking statements by the use of words such as “may”, “should”,
Slide 3: Presentation Outline
Presentation Outline u Corporate Profile u Franchise and Markets u Overview of the 3 rd Quarter u Capital u Earnings/Peer Group u Financial Performance u Supplemental Credit Information u Investment Portfolio
Slide 4: Fulton Financial Profile (as of 9/30/10)
Fulton Financial Profile (as of 9/30/10) n Mid-Atlantic regional financial holding company n A family of 8 community banks in 5 states n Fulton Financial Advisors n Fulton Mortgage Company n 272 community banking offices n Asset size: $ 16.3 billion n 3,800 Team Members n Market capitalization: $ 1.
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: Our Brand
Our Brand COMMUNITY BANKING SMALL BUSINESS HIGH NET WORTH RETAIL BANKING
Slide 8: Overview of the 3rd Quarter
Overview of the 3rd Quarter n TARP redeemed in full on July 14th n Repurchased associated warrant on September 8th n Strong mortgage activity and related sale gains n Net interest margin expansion n Continued core deposit growth / highly liquid n Regulation E overdraft guidelines implemented n Annou
Slide 9: Overview of the 3rd Quarter / Credit
Overview of the 3rd Quarter / Credit n Loan balances stable / growth offset runoff and charge-offs n Earning asset growth a challenge n Economic recovery slower than anticipated n Non-performing assets and overall delinquency increased linked quarter n Further reduction in construction exposure n Pr
Slide 10: Summary of Larger Loans 9/30/10
Summary of Larger Loans 9/30/10 n 52 relationships with commitments to lend of $20 million or more n Maximum individual commitment: $33 million n Maximum commitment land development: $25 million Ø Maximum commitment any one development project: $15 million n Average commercial lending relationship s
Slide 11: Basel Capital Guidelines
Basel Capital Guidelines n Corporation’s current capital levels exceed preliminary guidelines n Possible further definition and clarification from U. S. Regulatory Authorities
Slide 12: Capital 9/30/10
Capital 9/30/10 GAAP Capital $1.88 billion Total Risk-Based Capital $1.77 billion Total Risk-Based Capital Ratio 13.90% Tier 1 Risk-Based Capital Ratio 11.40% Leverage Capital Ratio 9.20% Tangible Common Equity Ratio 8.40% Tangible Common Equity to Risk-Weighted Assets 10.45%
Slide 13: Dodd Frank Act
Dodd Frank Act n Established organizational structure to address each applicable Title n Expect market opportunities with appropriate planning and strategizing n Believe we are in a better position to absorb increased costs than smaller competitors
Slide 14: Mortgage Foreclosures
Mortgage Foreclosures n Media focus is largely on high volume servicing/ foreclosure operations n Each customer viewed on case-by-case basis n Strive to keep borrowers in their homes n Approximately 300 residential foreclosure actions initiated during first nine months of this year n Currently condu
Slide 15: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION
Slide 16: Quarterly Net Income (millions)
Quarterly Net Income (millions) 40.0 30.0 7 7 275 23.3 24.4 20.0 13.1 13.1 10.0 | 0.0 Q1 09 Q2 09 Q3 09 Q409 Q110 Q210 Q3 10 FULTON FINANCIAL CORPORATION:
Slide 17: Q3 2010 vs Q2 2010 Income Summary
Q3 2010 = Q2 2010 $ % (dollars in thousands) Net Interest Income $ 140,190 $ 139,160 $ 1,030 1% Loan Loss Provision (40,000) (40,000) - 0% Other Income 50,270 43,060 7,210 17% Securities Gains 1,830 900 930 103% Other Expenses (101,820) (100,160) (1,660) 2% Income Taxes (12,790) (11,280) (1,510) 13%
Slide 18: Income Statement Summary (YTD September)
Income Statement Summary (YTD September)
Slide 19: Peer Group
Peer Group* International Bancshares Corporation Old National Bancorp South Financial Group, Inc. Susquehanna Bancshares, Inc. TCF Financial Corporation Trustmark Corporation UMB Financial Corporation United Bankshares, Inc. Valley National Bancorp Whitney Holding Corporation Wilmington Trust Corpor
Slide 20: Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Qi Q2 Q3 Q4 Qi Q2
3.25 3.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Qi Q2 Q3 Q4 Qi Q2 Q3 Q4 Qi Q2 Q3 06 06 06 06 07 O7 O7 O7 O08 08 08 08 09 09 09 09 10 10 10 -=-FULT -+Peer -«Top 50 FULTON FINANCIAL CORPORATION
Slide 21: Average Loans (Q3 2010 vs. Q2 2010)
Average Loans (Q3 2010 vs. Q2 2010)
Slide 22: Average Loans (September Year to Date)
Average Loans (September 30 th - Year to Date)
Slide 23: -—-FULT -*Peer -*Top
-—-FULT -*Peer -*Top 50 FULTON FINANCIAL CORPORATION
Slide 24: Net Charge-Offs To Average Loans
Net Charge-Offs To Average Loans
Slide 25: Non-performing Loans to Loans
Non-performing Loans to Loans
Slide 26: -*FULT -* Peer -*-Top
03 04 05 06 07 08 09 = =Q3 10 -*FULT -* Peer -*-Top 50 FULTON FINANCIAL CORPORATION
Slide 27: Allowance to Non-performing Loans
Allowance to Non-performing Loans
Slide 28: Average Deposits (Q3 2010 vs. Q2 2010)
Average Deposits (Q3 2010 vs. Q2 2010)
Slide 29: Average Deposits (September Year to Date)
Average Deposits (September 30 th - Year to Date)
Slide 30: --FULT -*Peer --Top
(3.0) --FULT -*Peer --Top 50 FULTON FINANCIAL CORPORATION
Slide 31: Other Income
Other Income Millions 200.01 160.0; 120.0; 80.0; @ YTD Sept BYTD Dec FULTON FINANCIAL CORPORATION:
Slide 32: Other Income (Q3 2010 vs. Q2 2010)
Other Income (Q3 2010 vs. Q2 2010)
Slide 33: Other Income (September Year to Date)
Other Income (September 30 th - Year to Date)
Slide 34: —*-FULT -* Peer —*- Top
03 05 06 07 08 —*-FULT -* Peer —*- Top 50 09 FULTON FINANCIAL CORPORATION
Slide 35: Other Expense (Q3 2010 vs. Q2 2010)
Other Expense (Q3 2010 vs. Q2 2010)
Slide 36: Other Expense (September Year to Date)
Other Expense (September 30 th - Year to Date)
Slide 37: Corporate Priorities
Corporate Priorities n EPS growth to improve total shareholder return n Reduce credit costs and construction exposure n Aggressively seek quality loans / protect current relationships n Pricing to reward, retain and enhance retail customer relationships n Leverage our brand and Forbes recognition n
Slide 38: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com
Slide 39: Supplemental Credit Information
Supplemental Credit Information
Slide 40: Commercial Loans by Industry (Sept. 30, 2010)
Commercial Loans by Industry (Sept. 30, 2010)
Slide 41: Loan Distribution by State (Q3 2010)
Loan Distribution by State (Q3 2010)
Slide 42: Provision and Net Charge-Offs
Provision and Net Charge-Offs Provision Net Charge-Offs / Average Loans ($ in millions)
Slide 43: Net Charge-offs (Recoveries) (Q3 2010)
Net Charge-offs (Recoveries) (Q3 2010)
Slide 44: Loan Delinquency (Key Sectors)
Loan Delinquency (Key Sectors) Category Total (%) 9/30/10 90-Days 9/30/10 Total (%) 9/30/09 90-Days 9/30/09 Commercial Loans 3.08 2.31 2.26 1.65 Consumer Direct 1.54 0.71 1.69 0.65 Commercial Mortgage 2.85 2.29 1.84 1.31 Residential Mortgage 9.19 5.26 9.28 5.14 Construction 12.02 10.98 11.37 10.12 T
Slide 45: Non-performing Loans (September 30, 2010)
Non-performing Loans* (September 30, 2010)
Slide 46: Residential Mtg by State (September 30, 2010)
Residential Mtg by State (September 30, 2010)
Slide 47: C&I Loans by State (September 30, 2010)
C&I Loans by State (September 30, 2010)
Slide 48: Construction Loans (September 30, 2010)
Construction Loans (September 30, 2010)
Slide 49: Declining Construction Exposure
Declining Construction Exposure (7%) (23%) (19%) ($ in millions) Construction Loans / Total Loans 12.2% 10.5% 8.2% 8.6% 7.0%
Slide 50: Construction Loans by Type 9/30/10
Construction Loans by Type 9/30/10
Slide 51: CRE Loans by State (September 30, 2010)
CRE Loans by State (September 30, 2010)
Slide 52: Shared National Credits (September 30, 2010)
Shared National Credits (September 30, 2010)
Slide 53: Troubled Debt Restructurings
Troubled Debt Restructurings oe 09/30/2010 06/30/2010 (in thousands) Residential Mtg $ 35,380 $ 32,010 C&l/Comm'! Mtg 20,650 19,210 Construction 5,750 6,160 Consumer/other 260 270 $ 62,040 $ 57,650 Note: Excludes non-accrual TDR's FULTON FINANCIAL CORPORATION
Slide 54: Investment Portfolio Detail
Investment Portfolio Detail
Slide 55: Investment Portfolio (September 30, 2010)
Investment Portfolio (September 30, 2010)
Slide 56: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com Version 2010-11-24
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