Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q2 2021 Earnings Presentation
15 slides from Fulton Financial's earnings presentation, Jul 20, 2021
Slide 1: Second Quarter 2021 Results
SECOND QUARTER 2021 RESULTS NASDAQ: FULT Data as of or for the three months ended June 30, 2021 unless otherwise noted
Slide 2: Forward-looking statements
This presentation may contain forward-looking statements with respect to the 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," "will," "cou
Slide 3: Income Statement Summary
1. ROA is return an average assets calculated as net income for the period divided by average assets, annualized. 2. ROE is return on average common shareholders’ equity calculated as net income available to common shareholders for the period divided by average common shareholders’ equity, annualize
Slide 4: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Net Interest Income & Net Interest Margin Average Interest-Earning Assets & Yields Average Liabilities & Rates ($ IN MILLIONS) ($ IN BILLIONS) ($ IN BILLIONS) 4 $19 $20 $21 $21 $22$2 $2 $2 $2 $1 0.72% 0.62% 0.54% 0.51% 0.36% Cost of Interest-bearing Liabilities Borrowi
Slide 5: Asset Quality
ASSET QUALITY ($ IN MILLIONS) Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans Net Charge-offs (NCOs) and NCOs to Average Loans ACL(1) to NPLs & Loans 51. The allowance for credit losses (“ACL”) relates specifically to "Loans, net of unearned income" and does not include the A
Slide 6: Non-Interest Income
NON-INTEREST INCOME(1) (1) Excluding investment securities gains Three months ended June 30, 2021 (percent of total non-interest income) 6 Non-interest income(1) decreased 16% from 1Q21 Decreases in: n Mortgage Banking driven by lower mortgage sales and an increase of mortgage servicing rights valua
Slide 7: Non-Interest Expense
NON-INTEREST EXPENSE Three months ended June 30, 2021 (percent of total non-interest expense) 7 56% 9% 10% 6% 20% Salaries and Benefits Occupancy Data Processing and Software Other Outside Services Debt extinguishment Other 2Q21 1Q21 Change (dollars in thousands) n Salaries and Benefits $ 78,367 $ 8
Slide 8: Capital Position Remains Strong
CAPITAL POSITION REMAINS STRONG 8 1. Regulatory capital ratios as of June 30, 2021 are preliminary. 2. Excesses shown are to regulatory minimums, including the 250 basis point capital conservation buffer, except for Tier 1 Leverage which is the well-capitalized minimum. Dollars are in millions. 8.4%
Slide 9: 2021 Outlook
2021 OUTLOOK 9 Net interest income: $640 - $660 million Provision for credit losses: $10 - $20 million(1) Non-interest income: $220 - $230 million Non-interest expense: $560 - $570 million(2) (1) Updated as of 2Q 2021; previously $20 - $40 million. (2) Excluding charges related to the 1Q 2021 balanc
Slide 10: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Note: The Corporation has presented the following non-GAAP (Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financia
Slide 11: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 11 (dollars in thousands) Three months ended Jun 30 Mar 31 Jun 30 Efficiency ratio 2021 2021 2020 Non-interest expense $ 140,831 $ 178,383 $ 143,006 Less: Debt extinguishment costs (412) (32,163) (2,878) Less: Amortization of tax credit investments (1,563) (1,531) (1,450) Les
Slide 12: Appendix: Credit Disclosures, Balance Sheet Restructuring
APPENDIX • CREDIT DISCLOSURES • BALANCE SHEET RESTRUCTURING 12
Slide 13: Additional Detail on Deferrals
Additional Detail on Deferrals (data as of June 30, 2021) 13 Commercial • At June 30, 2021, active deferrals declined to ~$122 million, or 0.9% of the commercial portfolio(2) • Majority of active deferrals are in the hospitality, entertainment, and food services • Anticipate continued downward trend
Slide 14: Selected Industries With Heightened Risk Due to COVID-19
Selected Industries With Heightened Risk Due to COVID-19 (data as of June 30, 2021; all industry classifications based on NAICS codes) 14 (1) Based on regulatory classifications. Commercial Portfolio consists of Commercial and Industrial, Commercial Mortgage, and Construction loans to commercial bor
Slide 15: 2021 Balance Sheet Restructuring
2021 Balance Sheet Restructuring 15 Why: • Reduce exposure to interest rate risk • Opportunity to reduce interest expense What: • Sold Visa Class B restricted shares - $34 million pre-tax gain • Tendered for $75 million of 4.50% subordinated debt due 2024 • Tendered for $60 million of 3.60% senior n