Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Investor Presentation (November 2021)
32 slides from Fulton Financial's investor presentation, Nov 9, 2021
Slide 1: Investor Presentation
z INVESTOR PRESENTATION Data as of September 30, 2021 - 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: Deep Executive Bench With Continuity; Compelling Markets and Opportunities
Deep Executive Bench With Continuity; Compelling Markets and Opportunities 3 (1) Includes years of service in public accounting and investment banking as a financial services industry specialist. (2) Includes years of service in public accounting as a financial services industry specialist. Name Pos
Slide 4: A Valuable Franchise, Well Positioned with Strong Liquidity, Solid Capital
4 (1) As of September 30, 2021 (2) Data as of June 30, 2021 per S&P Global Market Intelligence ; Map includes Fulton Financial counties with a financial center and/or a loan production office (“LPO”), and incorporated cities in MD and VA with a financial center and/or LPO and removes online only ban
Slide 5: Strong Position In Attractive & Stable Markets
Strong Position In Attractive & Stable Markets 5 Note: Data as of June 30, 2021 per S&P Global Market Intelligence; FDIC Summary of Deposits. (1) Median HH Income, 2021 – 2026 Projected Population Change and Projected HH Income Change are weighted by deposits in each MSA. Fulton Financial Corporatio
Slide 6: Extending Footprint Into Fast Growing Urban Markets
Extending Footprint Into Fast Growing Urban Markets 6 Philadelphia is a natural fill-in opportunity within our current footprint o Opened 3 financial centers in 2019 o 1 financial center targeted to open in 1Q22 and 1 financial center targeted to open in 4Q22 Philadelphia Market: o The top 5 ban
Slide 7: Customer & Community Strategic Initiatives Support Our Relationship Banking Strategy
7 Customer & Community Strategic Initiatives Support Our Relationship Banking Strategy S IM P L IF Y O N T H E IN S ID E D IF F E R E N T IA T E O N T H E O U T S ID E E X E C U T E W IT H E X C E L L E N C E R IS K & C O M P L IA N C E O P E R A T IO N A L E X C E L L E N C E Strategic Filter Outco
Slide 8: Fulton Has Made Significant Investments To Enhance Its Digital Capabilities
Fulton Has Made Significant Investments To Enhance Its Digital Capabilities 8 Purchase Streamlines commercial underwriting process to condense timeline from application to close Integrates with CRM platform to streamline processes and keep customers more informed Best-in-class online platform
Slide 9: Optimizing Our Financial Center Network
Optimizing Our Financial Center Network 9 Optimizing our financial center network has: Moved us towards multiple financial center types vs. a one-size-fits-all model Given us greater ability to re-invest in people & digital transactions Oriented the financial center as a primary touchpoint ena
Slide 10: Granular, Well-Diversified Loan Portfolio
Granular, Well-Diversified Loan Portfolio 10 $6.2 $6.3 $6.5 $6.9 $7.1 $4.2 $4.3 $4.5 $5.5 $5.3 $1.6 $1.5 $1.4 $1.3 $1.1$1.8 $2.1 $2.4 $2.9 $3.4 $0.9 $1.0 $0.9 $1.0 $1.1 $0.5 $0.6 $0.7 $0.7 $0.8 4.07% 4.38% 4.55% 3.63% 3.46% 3.00% 3.50% 4.00% 4.50% 5.00% $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $
Slide 11: Attractive Core Deposit Profile
Attractive Core Deposit Profile 11 Accelerated growth in core deposits, particularly non-interest bearing deposits Excess liquidity provides the ability to manage deposit costs lower Cost of deposits at historically low levels, with the possibility of remaining lower for longer $2.7 $2.7 $2.9
Slide 12: Solid Asset Quality And Reserves
12 Solid Asset Quality And Reserves Commentary Non-Performing Loans (NPLs) & Allowance/Loans ($ IN MILLIONS) N o n -P e rf o rm in g L o a n s $134.8 $139.7 $141.2 $147.1 $150.2 1.12% 1.05% 0.97% 1.47% 1.41% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% $0.0 $25.0 $50.0 $75.0 $100.0 $125.0 $150.0 $175.0 2017
Slide 13: Prudent Expense Management With Opportunities To Realize Efficiencies
Prudent Expense Management With Opportunities To Realize Efficiencies 13 ~ $730 million ~ $610 million Low rate environment and continued buildout of our compliance, risk and technology infrastructures were the primary drivers of an elevated efficiency ratio in 2015 Positive operating leverage t
Slide 14: Strong Capital Position
14 Strong Capital Position Capital position remains strong Dividend increased from $0.13 to $0.14 in the first quarter of 2021 Raised $375 million of tier-2 qualifying subordinated debt in Q1 2020 and $200 million in tier-1 qualifying non-cumulative perpetual preferred stock in Q4 2020 In Fe
Slide 15: Recent Financial Performance & Highlights
RECENT FINANCIAL PERFORMANCE & HIGHLIGHTS
Slide 16: Income Statement Summary
(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 shareholders’ equity, annualized. (3) Non-GAAP financi
Slide 17: Net Interest Income And Margin
Net Interest Income And Margin 17 NET INTEREST INCOME & NET INTEREST MARGIN(1) ~ $730 million ~ $610 million ($ IN MILLIONS) ($ IN BILLIONS) ($ IN BILLIONS) AVERAGE INTEREST-EARNING ASSETS & YIELDS AVERAGE LIABILITIES & COST OF FUNDS (1) Using a 21% federal tax rate and statutory interest expense di
Slide 18: Asset Quality
Asset Quality 18 NON-PERFORMING LOANS (NPLS) & NPLS TO LOANS NET CHARGE-OFFS (NCOS) AND NCOS TO AVERAGE LOANS PROVISION FOR CREDIT LOSSES ALLOWANCE FOR CREDIT LOSSES (ALLOWANCE)(1) TO NPLS & LOANS ($ IN MILLIONS) (1) The allowance for credit losses (“ACL”) relates specifically to "Loans, net of unea
Slide 19: Non-Interest Income
19 Non-Interest Income(1) (1) Excludes investment securities gains.
Slide 20: Non-interest Expense
Non-interest Expense Three months ended September 30, 2021 (percent of total non-interest expense) Il Salaries and Benefits Occupancy 1S Data Processing and Software Other Outside Services | Debt extinguishment Other Salaries and Benefits Occupancy Data Processing and Software Other Outside Services
Slide 21: Paycheck Protection Program (PPP) Waves 1, 2 and 3
Paycheck Protection Program (“PPP”) - Waves 1, 2 and 3 21 • Wave 1 & 2 applications generated $2.0 billion in funded PPP loans • Waves 1 & 2 average processing fee was 3.1% • Wave 3 applications generated $0.57 billion in funded PPP loans through September 30, 2021 • Wave 3 average fee was 4.4% • Wa
Slide 22: 2021 Outlook
2021 Outlook 22 Net interest income: $655 - $665 million(1) Provision for credit losses: Negative provision for 2021(2) Non-interest income: $230 - $235 million(3) Non-interest expense: $570 - $575 million(4) (1) Updated as of 3Q-2021; previously $640 - $660 million. (2) Updated as of 3Q-2021; previ
Slide 23: Appendix
APPENDIX
Slide 24: Average Loan Portfolio And Yields
Average Loan Portfolio And Yields 24 Note: Presented on an FTE basis, using a 21% federal tax rate and statutory interest expense disallowances. Average loan portfolio and yield are for the three months ended September 30, 2021, comparisons to June 30, 2021 and September 30, 2020. (1) include PPP ba
Slide 25: Average Customer Funding And Rates
Average Customer Funding And Rates 25 Balance Rate 2Q 2021 3Q 2020 2Q 2021 3Q 2020 Noninterest bearing demand 7,440$ - % 236$ 1,169$ - % - % Interest-bearing demand 6,169 0.05% 189 577 (0.01%) (0.12%) Savings 6,393 0.07% 112 677 (0.02%) (0.18%) Brokered 270 0.34% (28) (45) 0.00% (0.20%) Time 1,852 0
Slide 26: Non-Interest Income
Non-Interest Income(1) 26 (1) Excluding investment securities gains. Q3 2021 Q2 2021 Q3 2020 Q2 2021 Q3 2020 Wealth management 18,532$ 17,634$ 14,943$ 898 3,589 Mortgage banking 9,535 2,838 16,801 6,697 (7,266) Consumer banking: Card 5,941 5,733 5,002 208 939 Overdraft 3,474 2,750 3,015 724 459 Othe
Slide 27: Non-Interest Expense
Non-Interest Expense 27 Q3 2021 Q2 2021 Q3 2020 Q2 2021 Q3 2020 Salaries and employee benefits 82,679$ 78,367$ 79,227$ 4,312$ 3,452$ Net occupancy 12,957 12,494 13,221 463 (264) Data processing and software 14,335 13,932 12,285 403 2,050 Other outside services 7,889 8,178 7,617 (289) 272 Professiona
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation 28 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 finan
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation 29 Sep 30 Sep 30 2015 2016 2017 2018 2019 2020 2020 2021 Efficiency ratio Non-interest expense 480,160$ 489,519$ 525,579$ 546,104$ 567,736$ 579,440$ 424,705$ 463,811$ Less : Amortization of tax credit investments - - (11,028) (11,449) (6,021) (6,126) (4,594) (4,640) Less : In
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation 30 Sep 30 Sep 30 Sep 30 Sep 30 Sep 30 Sep 30 2016 2017 2018 2019 2020 2021 Tangible book value per share Sha reholders' equi ty 2,129,436$ 2,225,786$ 2,283,014$ 2,324,016$ 2,390,261$ 2,699,818$ Les s : Goodwi l l and intangible as s ets (531,556) (531,556) (531,556) (534,178)
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation 31 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 2020 2020 2021 2021 2021 Asset Quality, excluding PPP ACL - Loans (numerator) 266,825$ 277,567$ 265,986$ 255,032$ 256,727 Loans, net of unearned income 19,028,621$ 18,900,820$ 18,990,986$ 18,586,756$ 18,269,407$ Less : PPP Loans (1,960,16
Slide 32: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION www.fult.com ‘CORPORATION
Fulton Financial — Investor Presentation (November 2021) on 6ix