Slide 1: 2014 and Fourth Quarter Results
D A T A A S O F D E C E M B E R 3 1 , 2 0 1 4 U N L E S S O T H E R W I S E N O T E D 2014 AND FOURTH QUARTER RESULTS
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 wor
Slide 3: 2014 Highlights
2014 HIGHLIGHTS • Diluted Earnings Per Share Growth • Average Loan & Core Deposit Growth • Modest loan growth resumed after a slow start • Solid pace of core deposit growth throughout 2014 • Revenue Challenges Due To a Persistent Low Interest Rate Environment • Net interest margin compression contin
Slide 4: 2015 Outlook
2015 OUTLOOK • Loans & Deposits: Annual average growth of 3%-7% • Net Interest Margin: Compression of 0-4 bps per quarter, on average, based on the current interest rate environment • Asset Quality: Continued modest provision; volatility may occur due to individual credits • Non-Interest Income: Mid
Slide 5: Income Statement Summary – Annual Comparison
INCOME STATEMENT SUMMARY – ANNUAL COMPARISON 5 Note: ROA is return an average assets determined by dividing net income for the period indicated by average assets (1) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled
Slide 6: Income Statement Summary – Quarterly Comparison
INCOME STATEMENT SUMMARY – QUARTERLY COMPARISON Net Income of $37.9 million, a 1.6% decrease due to lower net interest income and an increase in non-interest expense Net Interest Income Net interest income down 1.0% due to an 8 bps decline in net interest margin Loan Loss Provision Steady improve
Slide 7: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN ($ IN MILLIONS) 7 Net Interest Income & Net Interest Margin ~ $730 million ~ $610 million Average Interest-Earning Assets & Yields Average Liabilities & Rates 2015 Outlook: Net Interest Margin: Compression of 0-4 bps per quarter, on average, based on the current intere
Slide 8: Asset Quality
ASSET QUALITY ($ IN MILLIONS) 8 Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans Net Charge-offs (NCOs) and NCOs to Average Loans Allowance for Credit Losses (Allowance) to NPLs & Loans 2015 Outlook: Continued modest provision; volatility may occur due to individual credits
Slide 9: Non-Interest Income, Excluding Securities Gains
NON-INTEREST INCOME, EXCLUDING SECURITIES GAINS ($ IN MILLIONS) 9 Non-interest Income, Excluding Securities Gains ~ $730 million ~ $610 million Mortgage Banking Income & Spreads Other Non-interest Income -1.4% 2015 Outlook: Mid- to high-single digit growth rate (1) Represents Gains on Sales divided
Slide 10: Non-Interest Expenses
NON-INTEREST EXPENSES ($ IN MILLIONS) 10 Non-interest Expense & Efficiency Ratio (1) ~ $730 million ~ $610 million Salaries and Employee Benefits & Staffing Other Non-interest Expense + 1.7% 2015 Outlook: Low-single digit growth rate (1) Non-GAAP based financial measure. Please refer to the calculat
Slide 11: Compliance & Risk Management
COMPLIANCE & RISK MANAGEMENT 11 # Represents third-party consulting and legal services directly related to BSA/AML compliance program. 2014 excludes $0.6 million of capitalized software costs. To tal A n n u al E xp e n ses , in m ill io n s $0.1 $1.4 $4.6 $1.4 • Strengthening Risk Management and Co
Slide 12: Profitability & Capital
PROFITABILITY & CAPITAL 12 ROA ROE (tangible) (1) Regulatory Capital Ratios & TCE Ratio (1) Diluted Earnings Per Common Share Note: ROA is return an average assets determined by dividing net income for the period indicated by average assets (1) Non-GAAP based financial measure. Please refer to the c
Slide 13: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION D ec 31, Sep 30, Jun 30, M ar 31, D ec 31, 2014 2014 2014 2014 2013 2014 2013 Eff iciency rat io Non-interest expense 117,720$ 115,798$ 116,174$ 109,554$ 116,762$ 459,246$ 461,433$ Less: Intangible amortization (315) (314) (315) (315) (835) (1,259) (2,438) Numerator 117,405$
Slide 14: Non-GAAP Reconciliation (Con't)
NON-GAAP RECONCILIATION (CON’T) 14 D ec 31, D ec 31, D ec 31, D ec 31, 2014 2013 2012 2011 T angible C o mmo n Equity to T angible A ssets (T C E R atio ) Shareholders' equity 1,996,665$ 2,063,187$ 2,081,656$ 1,992,539$ Less: Intangible assets (531,803) (533,076) (535,563) (544,209)$ Tangible shareh
Slide 15: V E R S I O N . . ONE PENN SQUARE LANCASTER, PA
V E R S I O N 1 . 2 0 . 2 0 1 5 ONE PENN SQUARE LANCASTER, PA 17602 www.fult.com