Fulton Financial Corporation · NASDAQ:FULT

Fulton Financial — Investor Presentation (February 2013)

67 slides from Fulton Financial's investor presentation, Feb 11, 2013

  1. Slide 1: Investor Presentation

    Investor Presentation Data as of December 31, 2012 Ticker Symbol: FULT (NASDAQ)

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements § This presentation may contain forward-looking statements with respect to Fulton Financial 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 w

  3. Slide 3: About Us

    About Us § Mid-Atlantic financial holding company § 6 community banks / 5 states § Fulton Financial Advisors § Fulton Mortgage Company § 270 community banking offices § Asset size: $16.5 billion § 3,800 team members (3,580 FTEs) § Market capitalization: $ 2.0 billion § Book value per common share: $

  4. Slide 4: Fulton Financial banks

    i The Columbia Bank Bi FNB Bank Bi Fulton Bank Bi Fulton Bank of New Jersey BB Lafayette Ambassador Bank BF Swineford National Bank CORPORATION ; FULTON FINANCIAL

  5. Slide 5: Corporate Priorities

    Corporate Priorities § 1. EPS Growth § 2. Quality Loan Growth § 3. Improve Asset Quality § 4. Core Deposit / Household Growth § 5. Spread Management / Net Interest Margin § 6. Expense Management § 7. Increase ROA / ROE

  6. Slide 6: Priorities: EPS

    Priorities: EPS 1. Earnings per Share Growth ü 2012 Diluted EPS : 80 cents ü Q4/12 Diluted EPS : 20 cents Up 9.6% year over year (73 cents) Down 4.8% linked quarter (21 cents)

  7. Slide 7: Quarterly EPS chart

    $0.25 $0.20 7 $0.15 4 $0.10 7 $0.05 il $0.00 +6-Bs 4 6s Be eB HH Qi Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 09 09 09 09 10 10 10 10 11 11 Tf 11 12 12 12 12 FULTON FINANCIAL CORPORATION

  8. Slide 8: Q4 2012 income statement summary

    Q4 2012 Q3 2012 $ % (dollars in thousands, except per-share data) Net Interest Income $ 132,222 $ 135,881 $ (3,659) -3% Loan Loss Provision (17,500) (23,000) 5,500 -24% Non-Interest Income 59,381 51,962 7,419 14% Securities Gains 195 42 153 364% Non-Interest Expenses (116,609) (110,043) (6,566) 6% I

  9. Slide 9: Income Statement Summary (Year Ended December 31)

    Income Statement Summary (Year Ended December 31 st )

  10. Slide 10: Non-Interest Income (in millions)

    Non-Interest Income (in millions) $240 7 $200 7 $160 | $120 7 $80 +1| g- H 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 FULTON FINANCIAL CORPORATION

  11. Slide 11: Non-interest income by component

    Q42012 Q3 2012 $ % (dollars in thousands) Mort. Banking Income $ 12,813 $ 10,594 $ 2,219 21% Invt Mgt & Trust 9,611 9,429 182 2% Overdraft & NSF Fees 8,716 8,552 164 2% Gain on sale of GEG 6,215 - 6,215 100% Service Charges 4,109 4,340 (231) -5% Merchant Fees 3,109 3,128 (19) -1% Cash Mgt Fees 2,816

  12. Slide 12: Non-Interest Income (Year Ended December 31)

    Non-Interest Income (Year Ended December 31 st )

  13. Slide 13: Fulton Mortgage Company

    Fulton Mortgage Company § Applications down linked quarter: $729 million from $850 million § Spreads up 27% (50 basis points) § Pipeline $463 million vs. $535 million (End Q4/12 vs. end Q3/12) § 30% purchase / 70% refinancing (Q4/12) § Linked quarter sales gains net of MSR expense

  14. Slide 14: Non-interest expenses

    Salaries & Benefits Occupancy & Equip. Data Proc. & Software Outside Services Professional Fees FHLB prepayment penalty FDIC Insurance Operating Risk Loss Marketing Supplies & Postage OREO & Repo Expense Telecommunications Other Expenses Q4 2012 Q3 2012 $ % (dollars in thousands) $ 61,303 $ 62,161 $

  15. Slide 15: Priorities: Earning Asset Growth

    Priorities: Earning Asset Growth 2. Quality Loan Growth ü Up 2% linked quarter § Highest rate of loan growth since Q3/08

  16. Slide 16: Loans, Q4 2012 vs Q3 2012

    Q42012_ _Q3 2012 $ % (dollars in millions) Comm'! Mort $ 4664 $ 4,633 ¢$ 31 1% Commercial 3,612 3,508 104 3% Home Equity 1,632 1,603 29 2% Resid Mort 1,257 1,214 43 4% Construction 584 597 (13) -2% Consumer/ Other 395 378 17 4% _ Total Loans $ 12,144 $ 11,933 $ 211 2% - FULTON FINANCIAL CORPORATION

  17. Slide 17: Loans, Q4 2012 vs Q4 2011

    Q4 2012 Q4 2011 $ % (dollars in millions) Comm'l Mort $ 4664 $ 4603 $ 61 1% Commercial 3,612 3,639 (27) -1% Home Equity 1,632 1,625 7 0% Resid Mort 1,257 1,097 160 15% Construction 584 615 (31) -5% Consumer/Other 395 390 5 1% Total Loans $ 12,144 $ 11,969 $ 175 1% FULTON FINANCIAL CORPORATION

  18. Slide 18: Peer Group

    Peer Group* International Bancshares Corp. People’s United Financial, Inc. Susquehanna Bancshares, Inc. Synovus Financial Corporation TCF Financial Corporation UMB Financial Corporation Valley National Bancorp Webster Financial Corporation *Fulton’s peer group as of December 31, 2012 Associated Banc

  19. Slide 19: Peer group definition and source

    * Comprised of the 50 largest publicly traded domestic banks/thrifts in asset size as of December 31, 2011. Excludes credit card companies. Source : SNL.com

  20. Slide 20: Priorities: Credit Metrics

    Priorities: Credit Metrics § 3. Improve Asset Quality

  21. Slide 21: Non-accrual Loans to Loans

    Non-accrual Loans to Loans 3.00 2.00 [1.52] 1.00 ~- 0.00 2005 2006 2007 2008 2009 2010 2011 2012 FULT -®Peer “Top 50 FULTON FINANCIAL CORPORATION

  22. Slide 22: Allowance for Loan Losses to Loans

    Allowance for Loan Losses to Loans

  23. Slide 23: Non-performing Loans (12/31/12)

    Non-performing Loans* (12/31/12)

  24. Slide 24: Delinquency rates by loan type

    December 31, 2012 September 30, 2012 290 Days Total 290 Days Total Commercial Mortgage 1.22% 1.68% 1.39% 1.85% Commercial Loans 1.85% 2.31% 2.11% 2.56% Construction Loans 5.48% 5.71% 5.48% 6.43% Residential Mortgage 2.74% 5.30% 2.05% 4.71% Home Equity 0.96% 1.73% 0.78% 1.63% Consumer, leasing and ot

  25. Slide 25: Quarterly credit trend chart

    $60 4 50 50 40 40 40 40 $40 H $20 4 Ql Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 09 09 09 09 10 10 10 10 11 11 11 41 12 12 12 12 FULTON FINANCIAL CORPORATION

  26. Slide 26: Priorities: Deposits

    Priorities: Deposits 4. Core Household / Deposit Growth 2012 Net Account Lift (#): 2.8%

  27. Slide 27: Deposit mix

    Q1.2009 wNon-IntDDA @IntDDA li Money Mkt Savings Tune Q42012 @Non-IntDDA @InDDA Money Mkt | Savings Time FULTON FINANCIAL CORPORATION

  28. Slide 28: Priorities: Margin

    Priorities: Margin § 5. Spread Management / Net Interest Margin § Q4/12: 3.65% ü Cost of interest bearing liabilities: 0.85% ü Yield on earning assets: 4.28%

  29. Slide 29: Net interest margin vs peers

    4.00 — aa “how. \E 3.50 3.25 3.00 Q1.09 Q2:09 Q309 QS09 QI 10 Q2 10 Q3 10 Q4 10 QUIT QZ 11 Q3 11 Q411 QL 12 Q212 Q312 Q412 SHFULT Peer 8 Top 50 FULTON FINANCIAL CORPORATION

  30. Slide 30: Priorities: Efficiency

    Priorities: Efficiency 6. Expense Management

  31. Slide 31: Efficiency ratio vs peers

    66.0 64.0 62.0 60.0 58.0 56.0 54.0 52.0 50.0 2005 2006 2007 2008 2009 2010 SH FULT =B=Peer = Top 50 2011 2012 FULTON FINANCIAL CORPORATION

  32. Slide 32: Priorities: ROA and ROE

    Priorities: ROA and ROE Increase ROA ü Q4/12: .99% YTD 12/31/12: .98% YTD 12/31/11: .90% Increase ROE (Tangible) ü Q4/12: 10.53% YTD 12/31/12: 10.73% YTD 12/31/11: 10.54%

  33. Slide 33: Return on Average Assets by bank

    Return on Average Assets Assets Year Year ($ Millions) " 2012” ~—-2011 Lafayette Ambassador Bank $ 1,410 1.48% 1.48% FNB Bank, NA 366 1.20% 1.46% Fulton Bank, NA 8,987 1.30% 1.39% Swineford National Bank 287 1.18% 1.60% The Columbia Bank 2,018 0.82% 0.75% Fulton Bank of New Jersey 3,365 0.50% -0.10%

  34. Slide 34: ROA vs peers

    1.60 1.20 0.80 0.40 0.00 0.40 2005 2006 2007 2008 2009 2010 2011 2012 <*=FULT Peer steTop 50 FULTON FINANCIAL CORPORATION

  35. Slide 35: Total Risk-Based Capital Ratio

    Total Risk-Based Capital Ratio

  36. Slide 36: Capital Adequacy (12/31/12 - estimate)

    Capital Adequacy (12/31/12 - estimate)

  37. Slide 37: Capital Adequacy vs. Basel III

    Capital Adequacy vs. Basel III

  38. Slide 38: Tangible Book Value Per Share

    Tangible Book Value Per Share CAGR = 10.5%

  39. Slide 39: Price Multiple vs. Peer Group

    Price Multiple vs. Peer Group Note: Peer Tangible Book Value and LTM EPS data as of 12/31/2012. FULT Tangible Book Value and LTM EPS data as of 12/31/2012.

  40. Slide 40: FULT - Cash Dividend and Yield

    FULT - Cash Dividend and Yield CAGR (cash dividend) = 29.9%

  41. Slide 41: Stock Repurchase Program

    Stock Repurchase Program § New program authorized: January, 2013 § Purchase of up to 8 million shares through June 30, 2013 § About 4 % of outstanding shares § Shares repurchased through January 31, 2013: 1.4 million § Average purchase price: $ 10.80

  42. Slide 42: Fulton Financial Corporation

    FULTON FINANCIAL CORPORATION

  43. Slide 43: Net interest margin Q4 vs Q3 2012

    Q4 2012 Q32012 Change % Net Interest Margin 3.65% 3.74% -0.09% -2% Yield on Earning Assets 4.28% 4.42% -0.14% -3% Cost of Funds 0.67% 0.72% -0.05% -7% Fed Funds 0.25% 0.25% = : FULTON FINANCIAL CORPORATION

  44. Slide 44: Interest Rate Shocks (12/31/12)

    Interest Rate Shocks (12/31/12)

  45. Slide 45: Interest rate outlook chart

    $700 $640 2.00% S600 $586 $580 1.75% 1.50% $500 1 + | 1.25% z rs] $400 | a 2 ; 1.00% e & 5 $300 | ° = | 0.75% 3 8 200 Fs $ 0.50% & $100 0.25% 0) 0.00% 1Q2013 2Q2013 3Q2013 4Q2013 FULTON FINANCIAL CORPORATION

  46. Slide 46: Summary of Larger Loans (12/31/12)

    Summary of Larger Loans (12/31/12) § 58 relationships with commitments to lend $20 million or more § Maximum individual commitment: $39 million § Maximum commitment to any builder/developer: $28 million § Maximum commitment to any one development project: $15 million § Average commercial lending rel

  47. Slide 47: Net Charge-offs (YTD December 2012)

    Net Charge-offs (YTD December 2012)

  48. Slide 48: Net Charge-Offs To Average Loans

    Net Charge-Offs To Average Loans 1.50 1.00 0.50 0.00 2005 2006 2007 2008 2009 2010 2011 2012 —-FULT ™Peer meTop 50 FULTON FINANCIAL CORPORATION

  49. Slide 49: Allowance for Loan Losses to Non-accrual Loans

    Allowance for Loan Losses to Non-accrual Loans

  50. Slide 50: Commercial Loans by Industry (12/31/12)

    Commercial Loans by Industry (12/31/12)

  51. Slide 51: Loan Distribution by State (12/31/12)

    Loan Distribution by State (12/31/12)

  52. Slide 52: Residential Mortgages (12/31/12)

    Residential Mortgages (12/31/12)

  53. Slide 53: Fulton Mortgage Company

    Fulton Mortgage Company 76% Available for Sale GOS Spread 1.55% GOS Spread 1.58% GOS Spread 1.66% GOS Spread 2.37% 69% Available for Sale 70% Available for Sale 86% Available for Sale 81% Available for Sale GOS Spread 1.87% 88% Available for Sale ($ in thousands)

  54. Slide 54: Residential Mortgage Repurchase Activity

    Residential Mortgage Repurchase Activity Year to date through Q4 2012: § 2012 - Servicing Retained § Repurchased $ 3,908,000. § 2012 - Servicing Released § Repurchased $ 835,000.

  55. Slide 55: Commercial loans by state

    Ending % of NPL Allowance Balance Total Balance Allocations (dollars in thousands) Pennsylvania $2,577,130 71.4% $ 46,747 $ 31,448 New Jersey 500,382 13.9% 11,974 21,015 Maryland 311,492 8.6% 4,805 4,708 Virginia 167,395 4.6% 3,428 2,217 Delaware 55,666 1.5% - 817 $3,612,065 $ 66,954 $ 60,205 FULTON

  56. Slide 56: Commercial Real Estate Loans (12/31/12)

    Commercial Real Estate Loans (12/31/12)

  57. Slide 57: Construction Loans (12/31/12)

    Construction Loans (12/31/12)

  58. Slide 58: Construction Loans by Type (12/31/12)

    Construction Loans by Type (12/31/12)

  59. Slide 59: Construction Exposure

    Construction Exposure Construction Loans / Total Loans 10.5% 8.2% 6.7% 5.1% 4.8%

  60. Slide 60: Shared National Credits (12/31/12)

    Shared National Credits (12/31/12)

  61. Slide 61: Note: Excludes non-accrual TDRs

    Note: Excludes non-accrual TDRs

  62. Slide 62: Investment Portfolio (12-31-12)

    Investment Portfolio (12-31-12) Book Yield (monthly) 2.81%

  63. Slide 63: Projected Investment Security Cash Flows

    Projected Investment Security Cash Flows

  64. Slide 64: Investment MBS & CMO Cash Flows (2011-2012)

    Investment MBS & CMO Cash Flows (2011-2012) Book Price $101.87 Book Price $102.12

  65. Slide 65: Investment Portfolio - Transactions (4th Quarter 2012)

    Investment Portfolio - Transactions (4 th Quarter 2012) ($ in Thousands) Does not include ($258K) bank stock losses

  66. Slide 66: Projected FHLB Advance Maturities

    Projected FHLB Advance Maturities

  67. Slide 67: Fulton Financial Corporation

    Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com Version 2013-02-11

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