Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Investor Presentation (May 2011)
71 slides from Fulton Financial's investor presentation, May 5, 2011
Slide 1: Fulton Financial Corporation Investor Presentation
Fulton Financial Corporation ------------------------------------- Investor Presentation Data as of March 31, 2011
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 Overview of the First Quarter u Credit u Capital u Financial Performance u Corporate Priorities u Supplemental Credit Data
Slide 4: Fulton Financial Profile (as of 3/31/11)
Fulton Financial Profile (as of 3/31/11) n Mid-Atlantic regional financial holding company n A family of 7 community banks in 5 states n Fulton Financial Advisors n Fulton Mortgage Company n 272 community banking offices n Asset size: $ 16.0 billion n 3,800 team members n Market capitalization: $ 2.
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: Customer Satisfaction Metrics (12/31/10)
Customer Satisfaction Metrics (12/31/10) n Customers: u Retail 93% u Business 94% u Fulton Mortgage Company 91%
Slide 8: Our Brand
Our Brand COMMUNITY BANKING SMALL BUSINESS HIGH NET WORTH RETAIL BANKING
Slide 9: Overview of the 1st Quarter
Overview of the 1st Quarter n EPS of 17 cents per diluted share, up from 16 cents Q4/10 n Improvement in key credit metrics n Continued margin expansion n Increased our quarterly dividend n Good expense control
Slide 10: Overview of the 1st Quarter / Credit
Overview of the 1st Quarter / Credit n Reduction in non-performing loans n Lower charge-offs n Overall reduction in delinquent loans n Lower provision for credit losses n Continued decline in construction book n Increase in commercial line utilization
Slide 11: Summary of Larger Loans (3/31/11)
Summary of Larger Loans (3/31/11) 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: $15 million n Average commercial lending relationship
Slide 12: Provision and Non-performing Loans
Provision and Non-performing Loans Provision NPL’s / Loans ($ in millions)
Slide 13: Loan Delinquency (Key Sectors)
Loan Delinquency (Key Sectors) Category Total (%) 03/31/11 90-Days 03/31/11 Total (%) 12/31/10 90-Days 12/31/10 Commercial Loans 2.83 2.33 2.72 2.36 Consumer Direct 1.46 0.64 1.50 0.66 Commercial Mortgage 2.87 2.21 2.70 2.14 Residential Mortgage 8.36 4.89 8.71 5.06 Construction 10.31 9.75 11.47 10.5
Slide 14: Declining Construction Exposure
Declining Construction Exposure (7%) (23%) (18%) ($ in millions) Construction Loans / Total Loans 12.2% 10.5% 8.2% 6.7% (20%) 7.8% 6.3%
Slide 15: Commercial Loans by Industry (03/31/11)
Commercial Loans by Industry (03/31/11)
Slide 16: Shared National Credits (03/31/11)
Shared National Credits (03/31/11)
Slide 17: Troubled Debt Restructurings
Troubled Debt Restructurings _ ee 03/31/11 12/31/10 (in thousands) Residential Mtg $ 39,560 $ 37,830 C&lI/Comm'! Mtg 36,040 24,280 Construction 5,440 5,440 Consumer/other 260 260 $ 81,300 $ 67,810 Note: Excludes non-accrual TDR's FULTON FINANCIAL CORPORATION
Slide 18: Fulton Mortgage Company
Fulton Mortgage Company n Monitoring mortgage foreclosures and secondary sale put-backs n No material concerns at this time n Decline in overall activity and sale gains linked quarter
Slide 19: Foreclosures / Putbacks
Foreclosures / Putbacks n 2010 - Servicing Retained u Repurchased $ 1,235,000. u Current Issues 531,660 . n 2010 - Servicing Released u Repurchased $ 344,400. u Indemnified 505,700. u Settled in 2010 31,250. u Current issues $ 1,786,200.
Slide 20: Capital Adequacy (03/31/11)
Capital Adequacy (03/31/11)
Slide 21: Capital ratios
FULTON FINANCIAL CORPORATION
Slide 22: Net Interest Income
Q1 2011 Q4 2010 $ % Net Interest Income Loan Loss Provision Other Income Securities Gains Other Expenses Income Taxes (dollars in thousands) $ 139,560 $ 140,890 $ (1,330) -1% (38,000) (40,000) 2,000 -5% 43,880 48,540 (4,660) -10% 2,280 190 2,090 im (104,560) (107,060) 5,500 -5% (12,380) (11,070) (1,
Slide 23: Income Statement Summary (YTD March)
Income Statement Summary (YTD March)
Slide 24: Peer Group
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 March 31, 2011 Associated BanCorp
Slide 25: Performance versus peers
3.50 3.25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 QI Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 AI 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 -=FULT -*Peer -*-Top50 FULTON FINANCIAL CORPORATION
Slide 26: Interest Rates (March 1st Quarter)
Interest Rates (March 31 st - Quarter)
Slide 27: Interest Rate Shocks (03/31/11)
Interest Rate Shocks (03/31/11) 6 month cumulative gap: 1.10 Rate Change NII Change (Annual) % Change +400 bp + $ 81.9 million + 14.2% +300 bp + $ 57.5 million + 10.0% +200 bp + $ 33.1 million + 5.7% +100 bp + $ 10.3 million + 1.8% - 100 bp - $ 7.1 million - 1.2%
Slide 28: Average Loans (Q1 2011 vs. Q4 2010)
Average Loans (Q1 2011 vs. Q4 2010)
Slide 29: Average Loans (March 31st - Year to Date)
Average Loans (March 31st - Year to Date)
Slide 30: Loan growth versus peers
-—~FULT Peer Top 50 FULTON FINANCIAL CORPORATION
Slide 31: Net Charge-Offs To Average Loans
oe Net Charge-Offs To Average Loans 2.00 1.50 1.00 0.85) 0.50 0.00 03 04 05 06 07 08 09 10 Qi FULT -®Peer -©Top 50 FULTON FINANCIAL CORPORATION
Slide 32: Non-accrual Loans to Loans
Non-accrual Loans to Loans C= een a 3.00 2.00 1.00 0.00 03 04 05 06 07 08 09 10 Q111 —e@FULT -# Peer —*-Top 50 FULTON FINANCIAL CORPORATION
Slide 33: Allowance for Loan Losses to Loans
Allowance for Loan Losses to Loans
Slide 34: Allowance for Loan Losses to Non-accrual Loans
Allowance for Loan Losses to Non-accrual Loans
Slide 35: Investment Portfolio (March 31, 2011)
Investment Portfolio (March 31, 2011)
Slide 36: Investment Portfolio - Municipal Holdings (03/31/11)
Investment Portfolio - Municipal Holdings (03/31/11)
Slide 37: Investment Portfolio - Municipal Holdings by State
Investment Portfolio - Municipal Holdings by State (03/31/11) Note: The municipal portfolio consists of 97% general obligation bonds. School district issues total 72% of all holdings.
Slide 38: Investment Portfolio - Pooled TruPS Holdings
Investment Portfolio - Pooled TruPS Holdings (03/31/11)
Slide 39: Average Deposits (Q1 2011 vs. Q4 2010)
Average Deposits (Q1 2011 vs. Q4 2010)
Slide 40: Average Deposits (March 31st - Year to Date)
Average Deposits (March 31 st - Year to Date)
Slide 41: Deposit growth versus peers
(3.0) FULT -*Peer -~Top 50 FULTON FINANCIAL CORPORATION
Slide 42: Other Borrowings (March 31st - Year to Date)
Other Borrowings (March 31 st - Year to Date)
Slide 43: Other Income
Other Income Millions 200.0, 160.0; 120.0; 80.0; 40.0; 0.0: FULTON FINANCIAL CORPORATION:
Slide 44: Other Income (Q1 2011 vs. Q4 2010)
Other Income (Q1 2011 vs. Q4 2010)
Slide 45: Other Income (March 31st - Year to Date)
Other Income (March 31 st - Year to Date)
Slide 46: Other income versus peers
03 04 05 06 07 08 09 10 Qi11 FULT -®Peer Top 50 FULTON FINANCIAL CORPORATION
Slide 47: Other Expense (Q1 2011 vs. Q4 2010)
Other Expense (Q1 2011 vs. Q4 2010)
Slide 48: Other Expense (March 31st - Year to Date)
Other Expense (March 31 st - Year to Date)
Slide 49: Income Statement Summary (YTD December)
Income Statement Summary (YTD December)
Slide 50: Income Statement Summary (YTD December)
Income Statement Summary (YTD December)
Slide 51: Retail Loan / Deposit Growth
Retail Loan / Deposit Growth n Consistent core checking promotional activity n Increase products and services per HH n Relationship depth and rewards n Differentiated customer experience n Leverage previous Forbes designation n Improve customer satisfaction metrics n Targeted consumer / home equity
Slide 52: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION:
Slide 53: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION:
Slide 54: Small Business Loan / Deposit Growth
Small Business Loan / Deposit Growth n Focused small business prospecting in primary branch market areas n Obtain core banking / investment relationships from business owners n Leverage expertise of relationship teams n Leverage our Online Business Resource Center n Increase accounts and services pe
Slide 55: Commercial and Industrial Growth
Commercial and Industrial Growth n Leverage existing and develop new relationships with center of influence accountants and attorneys n Relationship Manager staff expansion to increase revenue production n Integrate FFA employee benefit expertise into commercial relationships n Stabilize constructio
Slide 56: Non-Interest Income Maximization
Non-Interest Income Maximization n Fulton Financial Advisors u Brokerage u Wealth Management u Institutional n Fulton Mortgage Company u Increased origination staff in all markets u Leverage strong local market presence, reputation, and customer satisfaction u Expect rise in purchase activity as con
Slide 57: Corporate Priorities
Corporate Priorities n Improve asset quality n Superior customer experience n Earning asset growth n Increase the dividend n Maximize non-interest income n Leverage opportunities created by regulatory change n Risk mitigation and management
Slide 58: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com
Slide 59: Supplemental Credit Information
Supplemental Credit Information
Slide 60: Net Charge-offs (Recoveries) (Q1 2011)
Net Charge-offs (Recoveries) (Q1 2011)
Slide 61: Non-performing Loans (03/31/11)
Non-performing Loans* (03/31/11)
Slide 62: Loan Delinquency (Key Sectors) YOY
Loan Delinquency (Key Sectors) YOY Category Total (%) 03/31/11 90-Days 03/31/11 Total (%) 03/31/10 90-Days 03/31/10 Commercial Loans 2.83 2.33 2.84 2.13 Consumer Direct 1.46 0.64 1.75 0.81 Commercial Mortgage 2.87 2.21 3.00 1.63 Residential Mortgage 8.36 4.89 8.02 4.45 Construction 10.31 9.75 10.67
Slide 63: Loan Distribution by State (Q1 2011)
Loan Distribution by State (Q1 2011)
Slide 64: Residential Mtg by State (03/31/11)
Residential Mtg by State (03/31/11)
Slide 65: C&I Loans by State (03/31/11)
C&I Loans by State (03/31/11)
Slide 66: Construction Loans (03/31/11)
Construction Loans (03/31/11)
Slide 67: Construction Loans by Type (03/31/11)
Construction Loans by Type (03/31/11)
Slide 68: CRE Loans by State (03/31/11)
CRE Loans by State (03/31/11)
Slide 69: ROE and ROA
15.00 14.50 14.00 13,50 13.00 12.50 12.00 1.70 Z— IN ZZ \\ “ 1.50 : 1.40 1.30 1.20 “i 1.10 1.00 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 -#ROE --ROA FULTON FINANCIAL CORPORATION
Slide 70: Total Risk-Based Capital Ratio
Total Risk-Based Capital Ratio
Slide 71: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com Version 2011-05-09