Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q4 2017 Earnings Presentation
16 slides from Fulton Financial's earnings presentation, Jan 22, 2018
Slide 1: 2017 and Fourth Quarter Results
D A T A A S O F D E C E M B E R 3 1 , 2 0 1 7 U N L E S S O T H E R W I S E N O T E D 2017 AND FOURTH QUARTER RESULTS
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 wor
Slide 3: 2017 Highlights and Fourth Quarter Highlights
2017 HIGHLIGHTS 2017 net income of $171.8 million, or $0.98 per share. Excluding tax charge(1)(2), 2017 net income was $187.4 million, or $1.07 per share. 2017 Key Accomplishments Record year of revenues and net income, excluding tax charge(1) Average loan growth of 7.8% and average demand and s
Slide 4: The Impact of Tax Reform
THE IMPACT OF TAX REFORM During the fourth quarter of 2017, the Corporation recorded a $15.6 million charge(1) to income taxes related to the re-measurement of net deferred tax assets as a result of a new federal tax legislation enacted in December 2017. In the following table, the “As Adjusted” col
Slide 5: Income Statement Summary – Year to Date
INCOME STATEMENT SUMMARY – YEAR TO DATE Net Income of $171.8 million; 6.3% increase from 2016. Earnings per share increased 5.4% to $0.98. Net Interest Income 10.5% increase, reflecting the impact of loan growth and a 10 basis point higher net interest margin (NIM) Loan Loss Provision $23.3 mi
Slide 6: Income Statement Summary – Quarterly Comparison
INCOME STATEMENT SUMMARY – QUARTERLY COMPARISON 6 (1) ROA is return an average assets determined by dividing net income for the period indicated by average assets, annualized. (2) ROE is return on average shareholders’ equity determined by dividing net income for the period indicated by average shar
Slide 7: Net Interest Income and Margin – Quarterly Comparison
NET INTEREST INCOME AND MARGIN – QUARTERLY COMPARISON Net Interest Income & Net Interest Margin ~ $730 million ~ $610 million $132.2 $137.6 $141.6 $146.8 $149.4 3.15% 3.26% 3.29% 3.27% 3.29% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0
Slide 8: Asset Quality – Annual Comparison
ASSET QUALITY – ANNUAL COMPARISON ($ IN MILLIONS) 8 Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans 134.26% 118.37% 130.15% 130.67% 1.42% 1.24% 1.17% 1.12% 0.00% 1.00% 2.00% 3.00% 0.0% 40.0% 80.0% 120.0% 160.0% 2014 2015 2016 2017 Allowance/NPLs Allowance/Loans Net Charge-off
Slide 9: Non-Interest Income – Quarter Comparison
NON-INTEREST INCOME – QUARTER COMPARISON ($ IN MILLIONS) Non-Interest Income, Excluding Securities Gains ~ $730 million ~ $610 million $51.2 $45.6 $50.9 $47.4 $55.0 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 4Q16 1Q17 2Q17 3Q17 4Q17 Mortgage Banking Income & Spreads Other Non-Interest Income 1.94% 1.62%
Slide 10: Non-Interest Expenses – Quarterly Comparison
NON-INTEREST EXPENSES – QUARTERLY COMPARISON ($ IN MILLIONS) Non-Interest Expense & Efficiency Ratio (1) ~ $730 million ~ $610 million $127.6 $122.3 $132.7 $132.2 $138.5 67.6% 64.2% 65.3% 64.3% 64.2% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0
Slide 11: Profitability & Capital – Annual Comparison
PROFITABILITY & CAPITAL – ANNUAL COMPARISON 11 ROA(1) ROE and ROE (tangible)(2) Tangible Common Equity Ratio(2) Diluted Earnings Per Common Share 7.62% 7.38% 7.69% 7.83% 10.31% 10.01% 10.30% 10.33% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 2014 2015 2016 2017 ROE ROE (tangible) 0.93% 0.86%
Slide 12: 2018 Outlook
2018 OUTLOOK • Loans & Deposits: Average annual loan and core deposit growth rates in the mid single digits • Asset Quality: Provision driven primarily by loan growth • Non-Interest Income(1): Low single-digit growth • Non-Interest Expense: Including amortization of tax free investments, low single-
Slide 13: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION D ec 31, Sep 30, Jun 30, M ar 31, D ec 31, 2017 2017 2017 2017 2016 2017 2016 Eff iciency rat io Non-interest expense 138,452$ 132,157$ 132,695$ 122,275$ 127,621$ 525,579$ 489,519$ Less: Amortization of tax credit investments (3,376) (3,503) (3,151) (998) - (11,028) - Numerat
Slide 14: Non-GAAP Reconciliation (Continued)
NON-GAAP RECONCILIATION (CONTINUED) D ec 3 1, D ec 3 1, D ec 3 1, D ec 3 1, 2 0 17 2 0 16 2 0 15 2 0 14 Tang ib le C ommon Equit y t o Tang ib le A sset s ( TC E R at io ) Shareholders' equity 2,229,857$ 2,121,115$ 2,041,894$ 1,996,665$ Less: Intangible assets (531,556) (531,556) (531,556) (531,803)
Slide 15: Non-GAAP Reconciliation (Continued)
15 NON-GAAP RECONCILIATION (CONTINUED) T hree M o nths Ended Year Ended D ec 31, D ec 31, 2017 2017 Diluted earnings per share Net income 34,001$ 171,753$ Plus: Re-measurement of net deferred tax assets 15,634 15,634 Net Income, adjusted (numerator) 49,635$ 187,387$ Weighted average shares (diluted)
Slide 16: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION www.fult.com