Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q4 2022 Earnings Presentation
13 slides from Fulton Financial's earnings presentation, Jan 18, 2023
Slide 1: Fourth Quarter 2022 Results
FOURTH QUARTER 2022 RESULTS NASDAQ: FULT Data as of or for the period ended December 31, 2022 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) Non-GAAP financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Reconciliation” at the end of this presentation. INCOME STATEMENT SUMMARY 3 4Q22 3Q22 4Q21 (dollars in thousands, except per-share data) Net interest income $
Slide 4: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Net Interest Income & Net Interest Margin Average Interest-Earning Assets & Yields Average Deposits and Borrowings & Cost of Funds (DOLLARS IN MILLIONS) (DOLLARS IN BILLIONS) (DOLLARS IN BILLIONS) 4 $22 $21 $22 $22 $21 $1 $1 $1 $1 $2 0.21% 0.21% 0.20% 0.31% 0.72% 0.11%
Slide 5: Asset Quality
ASSET QUALITY (DOLLARS 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 5 1. The allowance for credit losses (“ACL”) relates specifically to "Loans, net of unearned income" and does not includ
Slide 6: Non-Interest Income
NON-INTEREST INCOME(1) (1) Excluding investment securities gains Three months ended December 31, 2022 (percent of total non-interest income) 6 Non-interest income decreased 8% from 3Q22(1) Driven primarily by: n Commercial banking customer swap fees and cash management fees. n Mortgage Banking incom
Slide 7: Non-Interest Expense
NON-INTEREST EXPENSE(1) Three months ended December 31, 2022 (percent of total non-interest expense) 7 56% 8% 9% 7% 20% Salaries and Benefits Occupancy Data Processing and Software Other Outside Services Other 4Q22 3Q22 Change (dollars in thousands) n Salaries and Benefits $92,733 $94,283 ($1,550) n
Slide 8: Capital Position Remains Strong
CAPITAL POSITION REMAINS STRONG(1) 8 1. Regulatory capital ratios and excess capital amounts as of December 31, 2022 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 mini
Slide 9: 2023 Outlook
2023 OUTLOOK 9 Net interest income: $895 - $915 million(1) Non-interest income: $220 - $235 million(2) Non-interest expense: $645 - $665 million Effective tax rate: 19.0% +/- (1) Assumes Fed Funds Rate increases of 50 bps in February 2023 and 25 bps in March 2023. (2) Excludes investment securities
Slide 10: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 10 Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-G
Slide 11: Non-GAAP Reconciliation: Operating Return on Average Assets
NON-GAAP RECONCILIATION 11 (dollars in thousands) Three months ended Dec 31 Sep 30 Dec 31 2022 2022 2021 Operating return on average assets Net income $81,833 $70,871 $61,887 Plus: Core deposit intangible amortization 514 514 — Plus: Merger-related expenses 1,894 7,006 — Plus: CECL Day 1 Provision e
Slide 12: Non-GAAP Reconciliation: Return on Tangible Common Equity
NON-GAAP RECONCILIATION 12 Three months ended (dollars in thousands) Dec 31 Sep 30 Dec 31 2022 2022 2021 Return on average common shareholders' equity (tangible) Net income available to common shareholders $79,271 $68,309 $59,325 Plus: Intangible amortization 688 690 146 Plus: CECL Day 1 Provision e
Slide 13: Non-GAAP Reconciliation: Efficiency Ratio and Asset Quality
NON-GAAP RECONCILIATION 13 (dollars in thousands) Three months ended Dec 31 Sep 30 Dec 31 Efficiency ratio 2022 2022 2021 Non-interest expense $168,462 $169,558 $154,019 Less: Amortization of tax credit investments (696) (696) (1,547) Less: Intangible amortization (688) (690) (146) Less: Merger-rela