Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Investor Presentation (February 2010)
58 slides from Fulton Financial's investor presentation, Feb 1, 2010
Slide 1: Fulton Financial Corporation Corporate Presentation
Fulton Financial Corporation ------------------------------------------------- February 1, 2010 Corporate Presentation Data as of December 31, 2009
Slide 2: Forward-Looking Statement
Forward-Looking Statement n The following presentation may contain forward-looking statements about Fulton Financial Corporation’s financial condition, business, strategies, products and services. Forward-looking statements are encouraged by the Private Securities Litigation Reform Act of 1995. Such
Slide 3: Presentation Outline
Presentation Outline u Corporate Overview u Franchise and Markets u Customer Experience / Satisfaction u Capital u Credit u Fourth Quarter Performance u Summary
Slide 4: Fulton Financial Profile
Fulton Financial Profile 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 3950 Team Members n Market capitalization: $ 1.6 billion n Book
Slide 5: A Valuable Geographic Franchise
A Valuable Geographic Franchise
Slide 6: FDIC Market Share 6/30/09
FDIC Market Share 6/30/09 n Market share increased in 36 out of 53 counties served across our five-state footprint n Market share increased in 27 of the 31 counties served in Pennsylvania, Maryland and Delaware.
Slide 7: Serving PA's Strongest Markets
Serving PA’s Strongest Markets* *Source: SNL, Median HH Income, 2009 data County Rank Projected Population Change 2009-2014 (%) Median HH Projected HH Income Change 2009-2014 (%) Chester, PA 6.64 87,308 7.36 Montgomery, PA 1.85 80,212 5.01 Bucks, PA 2.22 79,444 4.95 Delaware, PA 0.10 66,300 5.25 Cum
Slide 8: FFC Affiliates in Affluent Markets
FFC Affiliates in Affluent Markets* *Source: SNL Financial, 2009 County FFC National Ranking in Median HH
Slide 9: Unemployment Rates
Unemployment Rates* FFC Counties Unemployment State *FFC Averages are an average of the unemployment rates of the counties in which FFC has branches. *Source: SNL & US Department of Labor, Not Seasonally Adjusted ** County Data is as of November 2009 ***State Data is as of December 2009
Slide 10: US Home Price Index
US Home Price Index* *Source: Freddie Mac, Q3 2009 Data Metropolitan Statistical Area Annual Change
Slide 11: Our Brand
Our Brand COMMUNITY BANKING SMALL BUSINESS HIGH NET WORTH RETAIL BANKING LISTENING IS JUST THE BEGINNING.
Slide 12: Superior Customer Experience
Superior Customer Experience Care, Listen, Understand, Deliver
Slide 13: Customer Satisfaction Metrics
Attribute Q1/2009 Q3/2009 Employees are friendly and helpful 9.6 9.6 Bank seems easy to work with 9.5 9.5 Safety and security of a local bank 9.3 9.3 Wait times are brief 9.3 9.3 Wide range of products and services 9.1 9.1 Listens to my needs 9.1 9.1 Convenient branches and ATMs 8.8 9.0 Resolves pro
Slide 14: Capital 12/31/09 (Estimates)
With CPP Without CPP GAAP Capital $1.94 billion $1.57 billion Total Risk-Based Capital $1.90 billion $1.52 billion With CPP Without CPP Total Risk-Based Capital 14.50% 11.60% Tier 1 Risk-Based Capital 11.70% 8.90% Leverage Capital 9.70% 7.30% Tangible Common Equity 6.30% 6.30% Tangible Common Equity
Slide 15: Loan Distribution by State (Fourth Quarter)
Loan Distribution by State (Fourth Quarter) Average % of v. 08 % Balance Total Growth Growth Pennsylvania 6,576,000 $ 54.8% 178,000 $ 3% New Jersey 2,483,000 20.7% 15,000 1% Maryland 1,504,000 12.5% (99,000) -6% Virginia 1,099,000 9.2% (40,000) -4% Delaware 338,000 2.8% (14,000) -4% 12,000,000 $
Slide 16: Residential Mortgage and HE Loans
Residential Mortgage and HE Loans Q4 % of Avg. Bal. Total Pennsylvania 1,308,000 $ 50.9% New Jersey 450,000 17.5% Maryland 446,000 17.4% Virginia 215,000 8.4% Delaware 151,000 5.9% 2,570,000 $
Slide 17: Commercial Loans by Industry
Commercial Loans by Industry Manufacturing 12.9 RE - - Rental and Leasing 12.6 Construction 11.0 Agriculture 8.9 Retail 8.5 Wholesale 7.3 Health Care 6.7 Other 5.5 Financial Services 3.0 Arts and Entertainment 3.0 Transportation
Slide 18: Commercial Loans by State
Commercial Loans by State Q4 % of Avg. Bal. Total Pennsylvania 2,440,000 $ 65.7% New Jersey 561,000 15.1% Maryland 389,000 10.5% Virginia 293,000 7.9% Delaware 32,000 0.9% 3,715,000 $
Slide 19: Construction Loans (December 31, 2009)
Construction Loans (December 31, 2009) Ending % of NPL Specific Pennsylvania 291,000 $ 29.8% 14,190 $ 15,970 $ Maryland 250,000 25.6% 39,760 28,730 Virginia 243,000 24.8% 18,680 15,300 New Jersey 179,000 18.3% 20,210 7,420 Delaware
Slide 20: Construction Loans by Type
Construction Loans by Type Ending % of Balance Total Commercial Residential 663,000 $ 67.8% Commercial 238,000 24.3% Real Estate 62,000 6.3% Other Commercial 15,000 1.5% 978,000 $
Slide 21: CRE Loans by State (December 31, 2009)
CRE Loans by State (December 31, 2009) Ending % of NPL Specific Balance Total Balance Allocations Pennsylvania 2,247,000 $ 52.4% 21,530 $ 12,010 $ New Jersey 1,208,000 28.1% 32,180 9,630 Maryland 382,000 8.9% 2,010 2,830 Virginia 329,000 7.7% 2,980 2,600 Delaware 126,000 2.9% 2,350 2,400 4,292,000 $
Slide 22: Loan Delinquency (Key Sectors)
Category Total (%) 12/31/08 90-Days 12/31/08 Total (%) 12/31/09 90-Days 12/31/09 Commercial Loans 1.65 1.08 2.51 1.88 Consumer Direct 1.20 .45 1.72 .66 Commercial Mortgage 1.78 1.03 2.33 1.42 Residential Mortgage 6.45 2.70 8.43 4.66 Construction 8.21 6.15 10.13 9.43 Total Portfolio 2.72 1.62 3.42 2.
Slide 23: Shared National Credits
Shared National Credits Ending Commercial / Industrial 119,470 $ Commercial Real Estate Total Outstanding Delinquency: 5.5%
Slide 24: Net Charge-offs (Q4 2009)
Net Charge-offs (Q4 2009) Comm'l Res. Mtg. (in thousands) Pennsylvania 2,974 $ $ 1,828 $ $ $ 6,273 $ Maryland 2,326 - 4,627 1,028 8,502 New Jersey 3,741 1,155 1,587 1,083 7,610 Virginia 3,133 1,581 6,312 Delaware Avg Loans 3,714,000 4,240,000 1,018,000 2,571,000 446,000 11,989,000 NCO % 1.08% 0.19%
Slide 25: Net Charge-offs (YTD December 2009)
Net Charge-offs (YTD December 2009) Comm'l Res. Mtg. (in thousands) Pennsylvania 5,992 $ 3,949 $ 6,071 $ 1,848 $ 5,861 $ 23,721 $ Maryland 3,935 2,684 21,035 1,093 2,406 31,153 New Jersey 12,421 7,509 7,660 2,616 30,473 Virginia 10,384 8,949 3,456 1,606 24,620 Delaware Avg Loans 3,674,000 4,135,000
Slide 26: Non-performing Loans (December 31, 2009)
Non-performing Loans* (December 31, 2009) Comm'l Res. Mtg. (in thousands) Pennsylvania 30,895 $ 21,525 $ 14,186 $ 19,747 $ 4,255 $ 90,608 $ Maryland 9,138 2,015 39,764 6,201 1,766 58,884 New Jersey 15,571 32,182 20,207 10,134 3,654 81,748 Virginia 13,684 2,981 18,684 28,649 1,773 65,771 Delaware End
Slide 27: Summary of Larger Loans
Summary of Larger Loans n 54 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 28: Overview of Fourth Quarter - 2009
Overview of Fourth Quarter - 2009 n Continued core deposit growth n Strong funding and liquidity positions n Good NIM expansion n Stabilization of credit quality metrics n No increase to provision linked quarter n Further decline in construction exposure n Net charge-offs up slightly n Strong mortga
Slide 29: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION
Slide 30: 2009 Financial Results (Q4 vs. Q3 2009)
2009 Financial Results (Q4 vs. Q3 2009) Net income 24,380,000 $ 23,345,000 $ Cost of preferred stock Net income available Earnings per share 0.11 $ 0.10 $ Return on tangible equity 7.96% 7.91%
Slide 31: Income Statement Summary (Q4 vs. Q3 2009)
Income Statement Summary (Q4 vs. Q3 2009) Net Interest Income 136,090 $ 132,800 $ 3,290 $ 2% Loan Loss Provision (45,020) (45,000) (20) 0% Other Income 41,160 41,230 (70) 0% Securities Losses (1,870) (50) (1,820) n/m Pre-Tax Income 29,990 29,170 3% n/m = not meaningful
Slide 32: Pre-Tax Income Summary (Q4 vs. Q3 2009)
Pre-Tax Income Summary (Q4 vs. Q3 2009) Net Interest Income 136,090 $ 132,800 $ 3,290 $ 2% Other Income 41,160 41,230 (70) 0% Pre-Tax Income Before LLP and Sec Losses 76,880 74,220 2,660 4% Loan Loss Provision (45,020) (45,000) (20) 0% n/m = not meaningful
Slide 33: 2009 Financial Results (YTD December)
2009 Financial Results (YTD December) Net income (loss) 73,920,000 $ (5,620,000) $ Cost of preferred stock Net income (loss) available Earnings per share 0.31 $ (0.03) $ Return on tangible equity 5.96% 9.33%
Slide 34: Income Statement Summary (YTD December)
Income Statement Summary (YTD December) $ % Net Interest Income 520,950 $ 524,150 $ (3,200) $ -1% Loan Loss Provision (190,020) (119,630) (70,390) 59% Other Income 171,680 155,390 16,290 10% Credit Card Sale Gain - 13,910 (13,910) n/m Securities Gains (Losses) 1,080 (58,240) 59,320 -102% Goodwill Im
Slide 35: Pre-Tax Income Summary (YTD December)
Pre-Tax Income Summary (YTD December) $ % Net Interest Income 520,950 $ 524,150 $ (3,200) $ -1% Other Income 171,680 155,390 16,290 10% Other Expenses (400,230) (386,820) (13,410) 3% Pre-Tax Income Before LLP, Sec Gains (Losses) and unusual items 292,400 292,720 (320) 0% Loan Loss Provision (190,020
Slide 36: 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 37: Net Interest Margin
Net Interest Margin 3.52 3.56 3.24 3.00 3.50 4.00 4.50 5.00 FFC Peer Top
Slide 38: Average Loans (Q4 vs. Q3 2009)
Average Loans (Q4 vs. Q3 2009) Q4 Q3 $ % (dollars in millions) Comm'l Mort 4,240 $ 4,160 $ $ 2% Commercial 3,710 3,670 1% Home Equity 1,650 1,650 - 0% Construction 1,020 1,050 (30) -3% Resid Mort - 0% Cons./Other (10) -2% Total Loans 11,990 $ 11,910 $ 1%
Slide 39: Ending Loans (Q4 vs. Q3 2009)
Ending Loans (Q4 vs. Q3 2009) Q4 Q3 $ % (dollars in millions) Comm'l Mort 4,290 $ 4,190 $ $ 2% Commercial 3,700 3,720 (20) -1% Home Equity 1,640 1,650 (10) -1% Construction 1,030 (50) -5% Resid Mort (10) -1% Cons./Other (10) -2% Total Loans 11,970 $ 11,970 $ - 0%
Slide 40: Average Loans (YTD December)
Average Loans (YTD December) $ % (dollars in millions) Comm'l Mort 4,140 $ 3,750 $ $ 10% Commercial 3,670 3,520 4% Home Equity 1,670 1,600 4% Construction 1,110 1,320 (210) -16% Resid Mort 2% Cons./Other (40) -8% Total Loans 11,980 $ 11,600 $ 3%
Slide 41: Average Deposits (Q4 vs. Q3 2009)
Average Deposits (Q4 vs. Q3 2009) Q4 Q3 $ % (dollars in millions) Nonint DDA 1,990 $ 1,920 $ $ 4% Int DDA 1,970 1,880 5% Savings/MMDA 2,770 2,560 8% CD's 5,420 5,560 (140) -3% Cash Management 2% Total Deposits 12,670 $ 12,430 $ 2%
Slide 42: Average Deposits (YTD December)
Average Deposits (YTD December) $ % (dollars in millions) Nonint DDA 1,850 $ 1,650 $ $ 12% Int DDA 1,860 1,710 9% Savings/MMDA 2,420 2,150 13% CD's 5,510 4,500 1,010 22% Cash Management (140) -21% Total Deposits 12,180 $ 10,690 $ 1,490 14%
Slide 43: Other Borrowings (YTD December)
Other Borrowings (YTD December) $ % (dollars in millions) Federal Funds $ 1,330 $ (880) $ -66% FHLB Advances 1,330 1,440 (110) -8% Other LT Debt - 0% Other ST Borrowings (280) -85% Total Borrowings 2,210 $ 3,480 $ (1,270) $ -36%
Slide 44: Net Interest Margin Trend
Net Interest Margin Trend 3.67 3.20 3.40 3.60 3.80 4.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 45: Interest Rate Shocks (12/31/09)
Interest Rate Shocks (12/31/09) month cumulative gap - 1.07 Rate Change NII Change (Annual) % Change +300 bp + $ 58.2 million + 10.0% +200 bp + $ 37.1 million + 6.4% +100 bp + $ 12.3 million + 2.1% - 100 bp - $ 6.1 million - 1.0%
Slide 46: Other Income
Other Income $0 $40 $80 $120 $160 $200 Millions
Slide 47: Other Income (Q4 vs. Q3 2009)
Other Income (Q4 vs. Q3 2009) (dollars in thousands) Overdraft & NSF Fees 9,390 $ 9,340 $ $ 1% Invt Mgt & Trust 8,110 8,190 (80) -1% Mort. Sales Gains 3,880 2,780 1,100 40% Service Charges 3,320 3,340 (20) -1% Success Card Fees 3,030 2,870 6% Cash Mgt Fees 2,460 2,650 (190) -7% Merchant Fees 1,830 2
Slide 48: Other Income (YTD December)
Other Income (YTD December) (dollars in thousands) Overdraft & NSF Fees 35,960 $ 35,320 $ $ 2% Invt Mgt & Trust 32,080 32,730 (650) -2% Mort. Sales Gains 22,640 10,330 12,310 119% Service Charges 13,090 13,040 0% Cash Mgt Fees 11,400 13,270 (1,870) -14% Success Card Fees 11,090 9,800 1,290 13% Merch
Slide 49: Efficiency Ratio
Efficiency Ratio 57.7 60.9 61.4 50.0 52.0 54.0 56.0 58.0 60.0 62.0 64.0 FFC Peer Top
Slide 50: Other Expense (Q4 vs. Q3 2009)
Other Expense (Q4 vs. Q3 2009) (dollars in thousands) Salaries & Benefits 53,620 $ 54,080 $ (460) $ -1% Occupancy & Equip. 13,770 13,450 2% FDIC Insurance 4,840 5,240 (400) -8% Data Proc. & Software 3,890 4,740 (850) -18% Supplies & Postage 2,740 2,820 (80) -3% Marketing 2,640 1,980 33% Legal & Audi
Slide 51: Other Expense (YTD December)
Other Expense (YTD December) (dollars in thousands) Salaries & Benefits 218,810 $ 213,560 $ 5,250 $ 2% Occupancy & Equip. 54,860 55,570 (710) -1% FDIC Insurance 26,580 4,560 22,020 483% Data Proc. & Software 17,860 18,550 (690) -4% Supplies & Postage 10,930 11,240 (310) -3% Legal & Audit 9,100 7,620
Slide 52: Allowance for Credit Losses
Allowance for Credit Losses (dollars in thousands) Balance at beginning of period 241,720 $ 220,950 $ Loan Loss Provision 45,020 45,000 Allowance to Loans 2.15% 2.02% Nonperforming Assets to Assets 1.83% 1.82% Net Charge-offs to Loans 0.97% 0.81%
Slide 53: Allowance for Credit Losses (YTD Dec)
Allowance for Credit Losses (YTD Dec) (dollars in thousands) Balance at beginning of year 180,140 $ 112,210 $ Loan Loss Provision 190,020 119,630 Allowance to Loans 2.15% 1.50% Nonperforming Assets to Assets 1.83% 1.35% Net Charge-offs to Loans 0.94% 0.45%
Slide 54: Net Charge-Offs To Average Loans
Net Charge-Offs To Average Loans 0.94 1.09 1.78 0.00 0.30 0.60 0.90 1.20 1.50 1.80 FFC Peer Top
Slide 55: Investment Portfolio (December 31, 2009)
Investment Portfolio (December 31, 2009) ENDING MODIFIED BALANCE DURATION (in millions) Agency mortgage-backed securities 1,045.0 $ 3.14 Agency collateralized mortgage obligations 1,102.2 2.64 Municipal bonds 400.7 4.43 Auction rate securities 292.1 3.95 Corporate & trust preferred securities 150.8
Slide 56: Status of the Corporation
Status of the Corporation n Strong capital position n Credit quality metrics stabilized n Focus on profitable organic growth n Positioned for economic rebound n Current loan loss reserve levels believed to be adequate n Proactive management of problem credits n Valuable 5-state franchise / strong in
Slide 57: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com
Slide 58: Fulton Financial banks
OD The Bank HB The Columbia Bank OO Delaware National Bank 1 FNB Bank, N.A. IB Fulton Bank, N.A. IB Lafayette Ambassador Bank HB Skylands Community Bank IB Swineford National Bank FULTON FINANCIAL CORPORATION MONMOUTH
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