Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q3 2019 Earnings Presentation
13 slides from Fulton Financial's earnings presentation, Oct 22, 2019
Slide 1: 2019 Third Quarter Results
2019 THIRD QUARTER RESULTS NASDAQ: FULT Data as of September 30, 2019 unless otherwise noted
Slide 2: Forward-Looking Statements
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 "m
Slide 3: Quarter Highlights: 3Q19 vs 2Q19
QUARTER HIGHLIGHTS: 3Q19 vs 2Q19 Successful completion of subsidiary bank consolidation – Now one bank, Fulton Bank, N.A. Net income per diluted share: $0.37 in 3Q19, 5.7% increase from 2Q19 Loan Growth: 0.7% increase in average balances, driven by residential and commercial mortgages. Ending balanc
Slide 4: Quarter Highlights: 3Q19 vs 3Q18
QUARTER HIGHLIGHTS: 3Q19 vs 3Q18 Net income per diluted share: $0.37 in 3Q19, unchanged from 3Q18 Loan Growth: 3.6% increase in average balances and 4.8% increase ending balances with growth in all categories, except for home equity and construction. Core Deposit Growth: 4.5% increase in average bal
Slide 5: Income Statement Summary
INCOME STATEMENT SUMMARY Change from 3Q19 2Q19 3Q18 (dollars in thousands, except per-share data) Net Interest Income $ 161,260 $ (3,284) $ 1,133 Provision for Credit Losses 2,170 (2,855) 550 Non-Interest Income 55,321 1,182 4,302 Securities Gains 4,492 4,316 4,478 Non-Interest Expense 146,770 2,602
Slide 6: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Net Interest Income & Net Interest Margin Average Interest-Earning Assets & Yields ($ IN MILLIONS) ($ IN BILLIONS) 4.37% 4.25% $20.0 4.13% 4.22% 4.35% 5.00% $170.0 3.90% $164.5 4.00% $162.9 $163.3 $15.0 $160.1 $161.3 $16.3 $16.4 3.80% $15.9 $16.0 $16.2 3.00% $160.0 $10
Slide 7: Asset Quality
ASSET QUALITY ($ IN MILLIONS) Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans $10.0 $160.0 $147.7 2.00% $139.7 $138.7 $136.0 $8.2 $120.1 $120.0 1.50% $5.1 $5.0 $80.0 1.00% 0.86% 0.85% 0.90% 0.75% 0.81% $2.2 $40.0 0.50% $1.6 $0.0 0.00% $- 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q1
Slide 8: Non-Interest Income
NON-INTEREST INCOME(1) Three months ended September 30, 2019 (percent of total non-interest income) 6% 3Q19 2Q19 Change 12% (in thousands) 24% n Wealth management $ 13,867 $ 14,153 $ (286) n Mortgage banking 6,658 6,593 65 n Consumer banking 13,333 12,367 966 ~ $730 25% n Commercial banking 18,284 m
Slide 9: Non-Interest Expenses
NON-INTEREST EXPENSES Three months ended September 30, 2019 (percent of total non-interest expense) 3Q19 2Q19 Change 22% (in thousands) n Salaries and benefits $ 78,211 $ 78,991 $ (780) n Occupancy 12,368 14,469 (2,101) n Data Processing and software 11,590 11,268 322 8% 53% n Other outside services
Slide 10: Profitability & Capital
PROFITABILITY & CAPITAL ROA(1) ROE and ROE (tangible)(2) 1.40% 1.28% 16.00% 14.99% 14.03% 1.20% 1.12% 1.11% 1.14% 1.15% 13.17% 13.28% 13.60% 11.48% 1.00% 12.00% 10.10% 10.15% 10.42% 10.64% 0.80% 8.00% 0.60% 4.00% 0.40% 0.20% 0.00% 3Q18 4Q18 1Q19 2Q19 3Q19 0.00% 3Q18 4Q18 1Q19 2Q19 3Q19 ROE ROE (tang
Slide 11: 2019 Outlook
2019 OUTLOOK Changes from the outlook as of the end of the second quarter of 2019 have been underlined. • Loans & Deposits: Average annual loan and deposit growth rates in the low to mid single-digits • Net Interest Income: Low single-digit growth rate • Net Interest Margin: A decrease of 3 to 5 bas
Slide 12: 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 13: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Three Months Ended Sep 30 Jun 30 Sep 30 2018 2019 2019 Efficiency ratio (dollars in thousands) Non-interest expense $ 135,413 $ 144,168 $ 146,770 Less: Intangible amortization - (107) (1,071) Less: Amortization of tax credit investments (1,637) (1,492) (1,533) Less: Loss on r