Slide 1: Fulton Financial Corporation Investor Presentation
Fulton Financial Corporation - ------------------------------------- August 2010 Investor Presentation Data as of June 30, 2010
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 Franchise and Markets u Overview of the 2 nd Quarter u Capital u Earnings/Peer Group u Financial Performance u Supplemental Credit Information u Investment Portfolio
Slide 4: Fulton Financial Profile (as of 6/30/10)
Fulton Financial Profile (as of 6/30/10) n Mid-Atlantic regional financial holding company n A family of 8 community banks in 5 states n Fulton Financial Advisors n Fulton Mortgage Company n 270 community banking offices n Asset size: $ 16.6 billion n 3,950 Team Members n Market capitalization: $ 1.
Slide 5: A Valuable Geographic Franchise
A Valuable Geographic Franchise
Slide 6: Superior Customer Experience
Superior Customer Experience Care, Listen, Understand, Deliver
Slide 7: Our Brand
Our Brand COMMUNITY BANKING SMALL BUSINESS HIGH NET WORTH RETAIL BANKING LISTENING IS JUST THE BEGINNING.
Slide 8: Overview of the 2nd Quarter
Overview of the 2nd Quarter n Strong investment community response to our $230 million capital raise n Good core deposit growth / strong liquidity position n Regulation E communication plan implemented and ongoing n Expenses well controlled / core competency n Named 100 Most Trustworthy Companies by
Slide 9: Overview of the 2nd Quarter / Credit
Overview of the 2 nd Quarter / Credit n Non-performing assets increased from prior quarter n Linked quarter decrease in overall delinquency n Earning asset growth a challenge / slow economic recovery n $ 40 million provision unchanged from prior quarter n Asset quality ratios compare favorably to pe
Slide 10: TARP Repayment Completed
TARP Repayment Completed n Preferred shares redeemed in full on July 14, 2010 n Eliminates $18.8 million in annual dividends to the U. S. Treasury n Additional capital cushion initially obtained as “insurance” for protracted recession no longer necessary n Positions corporation for future growth opp
Slide 11: Capital 6/30/10 Reported and Pro-Forma
Capital 6/30/10 Reported (1) Pro-Forma (2) GAAP Capital $2.23 billion $1.85 billion Total Risk-Based Capital $2.17 billion $1.75 billion Total Risk-Based Capital 16.60% 13.70% Tier 1 Risk-Based Capital 14.10% 11.20% Leverage Capital 11.30% 8.90% Tangible Common Equity 8.20% 8.20% Tangible Common Equ
Slide 12: Forbes.com
Forbes.com n Fulton Financial named one of the nation’s “100 Most Trustworthy Companies” n Selected from over 8,000 publicly held companies n Only bank included in large-cap or mid-cap company lists n One of only 4 banks on entire list n Criteria: governance, accounting practices, financial transpar
Slide 13: Summary of Larger Loans
Summary of Larger Loans n 51 relationships with commitments to lend of $20 million or more n Maximum individual commitment: $33 million n Maximum commitment land development: $25 million n Maximum commitment any one development project: $15 million n Average commercial lending relationship size is $
Slide 14: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION
Slide 15: Quarterly Net Income (in millions)
Quarterly Net Income (in millions) 13.1 13.1 23.3 24.4 27.5 31.7 -15.0 -5.0 5.0 15.0 25.0 35.0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10
Slide 16: Income Statement Summary (Q2 2010 vs. Q1 2010)
Income Statement Summary (Q2 2010 vs. Q1 2010) Net Interest Income 139,160 $ 138,510 $ $ 0% Loan Loss Provision (40,000) (40,000) - 0% Other Income 43,060 39,690 3,370 8% Securities Losses (2,220) 3,120 n/m Other Expenses (100,160) (99,230) (930) 1% Net Income 31,680 27,480 4,200 Net Income Availabl
Slide 17: Income Statement Summary (YTD June)
Income Statement Summary (YTD June) Net Interest Income 277,670 $ 252,060 $ 25,610 $ 10% Loan Loss Provision (80,000) (100,000) 20,000 -20% Other Income 82,750 89,300 (6,550) -7% Securities (Losses) Gains (1,320) 3,000 (4,320) n/m Other Expenses (199,390) (214,180) 14,790 -7% Net Income 59,160 26,20
Slide 18: Peer Group
Peer Group* International Bancshares Corporation Old National Bancorp South Financial Group, Inc. Susquehanna Bancshares, Inc. TCF Financial Corporation Trustmark Corporation UMB Financial Corporation United Bankshares, Inc. Valley National Bancorp Whitney Holding Corporation Wilmington Trust Corpor
Slide 19: Net Interest Margin
Net Interest Margin 3.68 3.41 3.77 3.00 3.25 3.50 3.75 4.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YTD FULT Peer Top 50
Slide 20: Average Loans (Q2 2010 vs. Q1 2010)
Average Loans (Q2 2010 vs. Q1 2010) Q2 2010 Q1 2010 $ % (dollars in millions) Comm'l Mort 4,320 $ 4,310 $ $ 0% Commercial 3,690 3,690 - 0% Home Equity 1,640 1,640 - 0% Resid Mort 3% Construction (50) -5% Cons./Other - 0% Total Loans 11,960 $ 11,970 $ (10) $ 0%
Slide 21: Average Loans (June YTD)
Average Loans (June 30 th - Year to Date) $ % (dollars in millions) Comm'l Mort 4,310 $ 4,070 $ $ 6% Commercial 3,690 3,660 1% Home Equity 1,640 1,680 (40) -2% Resid Mort 1% Construction 1,190 (250) -21% Cons./Other (20) -4% Total Loans 11,970 $ 12,000 $ (30) $ 0%
Slide 22: Average Loan Growth
Average Loan Growth -0.3 -6.2 -6.6 -9.0 -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 YTD FULT Peer Top 50
Slide 23: Net Charge-Offs To Average Loans
Net Charge-Offs To Average Loans 0.96 1.17 1.82 0.00 0.50 1.00 1.50 2.00 YTD FULT Peer Top 50
Slide 24: Non-performing Loans to Loans
Non-performing Loans to Loans 2.65 2.61 2.98 0.00 1.00 2.00 3.00 4.00 Q2 10 FULT Peer Top 50
Slide 25: Allowance to Loans
Allowance to Loans 2.03 2.75 2.35 0.80 1.10 1.40 1.70 2.00 2.30 2.60 2.90 Q2 10 FULT Peer Top 50
Slide 26: Allowance to Non-performing Loans
Allowance to Non-performing Loans 88.5 85.1 83.3 50.0 100.0 150.0 200.0 250.0 300.0 Q2 10 FULT Peer Top 50
Slide 27: Average Deposits (Q2 2010 vs. Q1 2010)
Average Deposits (Q2 2010 vs. Q1 2010) Q2 2010 Q1 2010 $ % (dollars in millions) Nonint DDA 2,080 $ 1,970 $ $ 6% Int DDA 2,020 1,980 2% Savings/MMDA 3,090 2,850 8% CD's 5,120 5,210 (90) -2% Cash Management - 0% Total Deposits 12,780 $ 12,480 $ $ 2%
Slide 28: Average Deposits (June YTD)
Average Deposits (June 30 th - Year to Date) $ % (dollars in millions) Nonint DDA 2,030 $ 1,740 $ $ 17% Int DDA 2,000 1,790 12% Savings/MMDA 2,970 2,180 36% CD's 5,160 5,520 (360) -7% Cash Management (100) -18% Total Deposits 12,630 $ 11,800 $ $ 7%
Slide 29: Average Deposit Growth
Average Deposit Growth 8.2 4.2 4.5 (3.0) 0.0 3.0 6.0 9.0 12.0 15.0 18.0 YTD FULT Peer Top 50
Slide 30: Other Income
Other Income 0.0 40.0 80.0 120.0 160.0 200.0 Millions YTD June YTD Dec
Slide 31: Other Income (Q2 2010 vs. Q1 2010)
Other Income (Q2 2010 vs. Q1 2010) (dollars in thousands) Overdraft & NSF Fees 9,620 $ 8,880 $ $ 8% Invt Mgt & Trust 8,660 8,090 7% Debit Card Fees 3,370 2,950 14% Service Charges 3,350 3,110 8% Mort. Sales Gains 3,060 3,360 (300) -9% Cash Mgt Fees 2,510 2,280 10% Merchant Fees 2,120 1,820 16%
Slide 32: Other Income (June YTD)
Other Income (June 30 th - Year to Date) (dollars in thousands) Overdraft & NSF Fees 18,500 $ 17,230 $ 1,270 $ 7% Invt Mgt & Trust 16,740 15,780 6% Service Charges 6,460 6,430 0% Mort. Sales Gains 6,430 15,990 (9,560) -60% Debit Card Fees 6,320 5,190 1,130 22% Cash Mgt Fees 4,790 6,290 (1,500) -24%
Slide 33: Efficiency Ratio Lower Than Peers
Efficiency Ratio Lower Than Peers 53.4 60.3 62.9 50.0 52.0 54.0 56.0 58.0 60.0 62.0 64.0 YTD FULT Peer Top 50
Slide 34: Other Expense (Q2 2010 vs. Q1 2010)
Other Expense (Q2 2010 vs. Q1 2010) (dollars in thousands) Salaries & Benefits 54,650 $ 52,350 $ 2,300 $ 4% Occupancy & Equip. 13,180 14,740 (1,560) -11% FDIC Insurance 5,140 4,950 4% Data Proc. & Software 4,070 4,240 (170) -4% Legal & Audit 3,030 2,550 19% Supplies & Postage 2,820 2,630 7% Marketin
Slide 35: Other Expense (June YTD)
Other Expense (June 30 th - Year to Date) (dollars in thousands) Salaries & Benefits 107,000 $ 111,100 $ (4,100) $ -4% Occupancy & Equip. 27,920 27,640 1% FDIC Insurance 10,090 16,490 (6,400) -39% Data Proc. & Software 8,310 9,240 (930) -10% Legal & Audit 5,580 4,320 1,260 29% Supplies & Postage 5,4
Slide 36: Future Growth Initiatives
Future Growth Initiatives n Leverage local community banking market presence and brand n Core deposit growth / segmentation n Organic growth / increase market share n Grow quality earning assets n Superior customer experience / relationship strategy n Grow non-interest income n Branch expansion / se
Slide 37: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com
Slide 38: Supplemental Credit Information
Supplemental Credit Information
Slide 39: Commercial Loans by Industry (June 30, 2010)
Commercial Loans by Industry (June 30, 2010) Manufacturing 13.6 RE - Rental and Leasing 13.0 Construction 11.6 Agriculture 8.6 Retail 8.4 Wholesale 7.0 Health Care 6.6 Other 5.5 Financial Services 3.1 Arts and Entertainment 2.4 Transportation
Slide 40: Loan Distribution by State (Q2 2010)
Loan Distribution by State (Q2 2010) Average % of 10 v. 09 % Balance Total Growth Growth Pennsylvania 6,670,000 $ 55.8% 225,000 $ 2% New Jersey 2,474,000 20.7% (24,000) -1% Maryland 1,427,000 11.9% (136,000) -8% Virginia 1,056,000 8.8% (54,000) -6% Delaware 333,000 2.8% (12,000) -4% 11,960,000 $
Slide 41: Provision and Net Charge-Offs Stable
Provision and Net Charge-Offs Stable Provision Net Charge-Offs / Average Loans $50 $45 $45 $40 $40 $0 $20 $40 $60 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 ($ in millions) 0.97% 0.81% 0.97% 0.95% 0.97% 0.00% 0.50% 1.00% 1.50% Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010
Slide 42: Net Charge-offs (Q2 2010)
Net Charge-offs (Q2 2010) Comm'l Res. Mtg. (in thousands) Pennsylvania 5,373 $ $ 1,674 $ $ 1,102 $ 8,998 $ Maryland (476) - (483) (378) New Jersey 7,477 3,308 4,939 16,314 Virginia (189) 2,588 3,641 Delaware Avg Loans 3,686,000 4,320,000 910,000 2,610,000 434,000 11,960,000 NCO % 1.33% 0.35% 3.83% 0
Slide 43: Loan Delinquency (Key Sectors)
Loan Delinquency (Key Sectors) Category Total (%) 6/30/09 90-Days 6/30/09 Total (%) 6/30/10 90-Days 6/30/10 Commercial Loans 2.24 1.77 2.58 2.12 Consumer Direct 1.36 0.52 1.61 0.71 Commercial Mortgage 1.95 1.22 3.13 2.33 Residential Mortgage 9.31 4.25 8.36 4.69 Construction 10.36 9.31 9.93 8.86 Tota
Slide 44: Non-performing Loans (June 30, 2010)
Non-performing Loans* (June 30, 2010) Comm'l Res. Mtg. (in thousands) Pennsylvania 39,278 $ 42,900 $ 12,264 $ 11,005 $ 4,829 $ 110,276 $ Maryland 7,444 5,105 34,012 5,084 1,839 53,484 New Jersey 16,895 41,977 14,153 9,973 4,213 87,211 Virginia 13,341 4,491 18,294 15,960 1,077 53,163 Delaware End Loa
Slide 45: Res Mtg and HE by State (June 30, 2010)
Res Mtg and HE by State (June 30, 2010) Ending % of NPL Allowance Pennsylvania 1,364,000 $ 52.0% 11,010 $ 5,240 $ New Jersey 451,000 17.2% 9,970 2,490 Maryland 433,000 16.5% 5,080 1,570 Virginia 227,000 8.7% 15,960 6,600 Delaware
Slide 46: C&I Loans by State (June 30, 2010)
C&I Loans by State (June 30, 2010) Ending % of NPL Allowance Pennsylvania 2,442,000 $ 66.6% 39,280 $ 65,020 $ New Jersey 569,000 15.5% 16,900 19,830 Maryland 357,000 9.7% 7,440 6,520 Virginia 265,000 7.2% 13,340 10,550 Delaware
Slide 47: Construction Loans (June 30, 2010)
Construction Loans (June 30, 2010) Ending % of NPL Allowance Pennsylvania 314,000 $ 35.2% 12,270 $ 10,210 $ Virginia 215,000 24.1% 18,290 28,350 Maryland 194,000 21.7% 34,010 25,730 New Jersey 155,000 17.4% 14,150 10,080 Delaware
Slide 48: Declining Construction Exposure
Declining Construction Exposure $893 $1,096 $1,367 $1,269 $978 $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 12/31/2007 12/31/2008 12/31/2009 06/30/2009 06/30/2010 (7%) (23%) (19%) ($ in millions) Construction Loans / Total Loans 12.2% 10.5% 8.2% 9.2% 7.5%
Slide 49: Construction Loans by Type
Construction Loans by Type Ending % of Balance Total Commercial Residential 586,000 $ 65.6% Commercial 249,000 27.9% Real Estate 46,000 5.2% Other Commercial 12,000 1.3% 893,000 $
Slide 50: CRE Loans by State (June 30, 2010)
CRE Loans by State (June 30, 2010) Ending % of NPL Allowance Balance Total Balance Allocations Pennsylvania 2,252,000 $ 52.0% 42,900 $ 17,050 $ New Jersey 1,211,000 28.0% 41,980 12,270 Maryland 389,000 9.0% 5,100 2,940 Virginia 349,000 8.0% 4,490 4,400 Delaware 130,000 3.0% 6,910 3,760 4,331,000 $ 1
Slide 51: Shared National Credits (June 30, 2010)
Shared National Credits (June 30, 2010) Ending Commercial / Industrial 116,440 $ Commercial Real Estate Total Outstanding Delinquency: 2.9%
Slide 52: Troubled Debt Restructurings
Troubled Debt Restructurings Residential Mtg 32,010 $ 27,290 $ C&I/Comm'l Mtg 19,210 19,290 Construction 6,160 4,820 Consumer/other Note: Excludes non-accrual TDR's
Slide 53: Investment Portfolio Detail
Investment Portfolio Detail
Slide 54: Investment Portfolio (June 30, 2010)
Investment Portfolio (June 30, 2010) ENDING MODIFIED BALANCE DURATION (in millions) Agency mortgage-backed securities 883.4 $ 3.11 Agency collateralized mortgage obligations 1,003.2 2.48 Municipal bonds 345.1 4.68 Auction rate securities 282.8 3.66 Corporate & trust preferred securities 144.0 10.64
Slide 55: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com