Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Investor Presentation (February 2012)
72 slides from Fulton Financial's investor presentation, Feb 3, 2012
Slide 1: Investor Presentation
Investor Presentation Data as of December 31, 2011 Ticker Symbol: FULT (NASDAQ)
Slide 2: 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 words such as “may,” “should
Slide 3: Presentation Outline
Presentation Outline § About Us § Corporate Strategy § Our Progress in 2011 § Q/4 Overview § Capital § Growth Strategies § Financial Performance Detail § Supplemental Information
Slide 4: About Us (as of 12/31/11)
About Us (as of 12/31/11) § Mid-Atlantic financial holding company § 6 community banks / 5 states § Fulton Financial Advisors § Fulton Mortgage Company § 272 community banking offices § Asset size: $16.4 billion § 3,850 team members § Market capitalization: $ 2.0 billion § Book value per common shar
Slide 5: A Valuable Geographic Franchise
A Valuable Geographic Franchise
Slide 6: Superior Customer Experience
Superior Customer Experience WE WILL CARE, LISTEN, UNDERSTAND, AND DELIVER
Slide 7: Listening is Just The Beginning
“Listening is Just The Beginning” COMMUNITY BANKING SMALL BUSINESS HIGH NET WORTH RETAIL BANKING
Slide 8: 2011 Greenwich Excellence Awards in Middle Market Banking
§ 2011 Greenwich Excellence Awards in Middle Market Banking § Fulton Bank (2 categories) § Overall Satisfaction in Banking § Treasury Management § National and Regional Winner § Criteria: $10 - 500 million in sales § Nearly 11,500 Business Interviews Greenwich Associates
Slide 9: Key Resources
§ Corporate Culture § Customer Commitment § Team-Based Relationship Management § Branch Manager Empowerment § Reputation § Brand Key Resources
Slide 10: 2011: Progress and Positioning
§ Diluted EPS up 24% § Improved ROA § Lower Provision § Core Deposit Growth § Net Interest Margin Expansion § Growth in Other Income § Good Expense Control § Increased Cash Dividend 2011: Progress and Positioning
Slide 11: 4th Quarter Overview
4th Quarter Overview § Linked Quarter EPS Reduction of 2 Cents § Lower Debit Interchange Revenue § Margin Compression / MBS Premiums § Reduced Mortgage Sales Gains § NJ Merger-Related Marketing Expenses § Sale of Non-Performing Mortgages § Improvement in Credit Metrics
Slide 12: Capital Adequacy (12/31/11)
Capital Adequacy (12/31/11)
Slide 13: Potential Uses of Capital
Potential Uses of Capital § Support Organic Growth § Dividends to Shareholders § Acquisitions § Repurchase stock
Slide 14: Be the Bank of Choice for Small Businesses
§ Be the Bank of Choice for Small Businesses in our Markets § Branch Manager the “portal” for Full Menu of Corporate Resources § Good Growth with Uncertain Economy § Margin Opportunity with Credit Demand § Customers Still Deleveraging Deposit Growth
Slide 15: Loan Growth
§ Some Expansion in Q4 / Over 1% Annualized § Retention of Profitable Relationships a Priority § Growth Offset by Decline in Construction Book § Leverage Market Opportunities for New Business § Mitigate Risk Loan Growth
Slide 16: Summary of Larger Loans (12/31/11)
§ 55 relationships with commitments to lend $20 million or more § Maximum individual commitment: $33 million § Maximum commitment to any builder/developer: $25 million § Maximum commitment to any one development project: $15 million § Average commercial lending relationship size is $468,000 § Loans
Slide 17: Commercial Loans by Industry
(12/31/ 11 ) Commercial Loans by Industry
Slide 18: Construction Exposure
Construction Exposure ($ in millions) Construction Loans / Total Loans 12.2% 10.5% 8.2% 6.7% 5.1% (7%) (23%) (18%) (23%)
Slide 19: Non-Interest Income Growth
Non-Interest Income Growth § Fulton Mortgage Company § Leverage industry reputation § Expand revenue-producing origination staff § Fulton Financial Advisors ($4.0 billion A.U.M.) § Brokerage ($1.8 billion) § Commercial RM and retail referrals § Offset Impact of Increased Regulation § Value-based fee
Slide 20: Expense Control
§ Lean Process Improvement § Branch Consolidation § Appropriate Staff Levels § Leverage Electronic Capabilities Expense Control
Slide 21: Core Platform Upgrade
§ Continuation of Longstanding Fiserv Relationship § 360 Degree View of Customer Relationship § Improve Consultative Sales Process § Higher Household Penetration / Revenue § Implementation Over 2-Year Timeframe § Strategy Implementation / Care, Listen, Understand and Deliver Core Platform Upgrade
Slide 22: Expected EPS Growth
§ Improving Credit Metrics § Leveraging Low-Cost Deposit Base § Market Share Opportunities § Judicious Expense Control § Superior Customer Experience Expected EPS Growth
Slide 23: Goals and Priorities
Goals and Priorities § EPS Growth § ROA Improvement § Spread Management / NIM § Leverage Market Opportunities § Improve Asset Quality § Reduce Credit Costs § Build / Deploy Capital Prudently § Profitable Organic / Acquisitive Growth
Slide 24: Details of Financial Performance
Details of Financial Performance
Slide 25: Q4 2011 vs Q3 2011 Income Summary
Q4 2011 Q3 2011 $ % (dollars in thousands) Net Interest Income $ 138,460 $ 141,490 $ (3,030) -2% Loan Loss Provision (30,000) (31,000) 1,000 -3% Other Income 45,300 48,580 (3,280) -7% Securities Gains (Losses) 3,050 (440) 3,490 n/m Other Expenses (108,860) (105,870) (2,990) 3% Income Taxes (11,870)
Slide 26: Income Statement Summary (year ended)
Income Statement Summary (year ended)
Slide 27: 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, 2011 Associated Banc-Corp Bancor
Slide 28: . Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 A4 AI
4.00 [3.81 3.75 "\ 3.50 . Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 A4 AI Q2 Q3 A4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 A4 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 14 -“H-FULT -*Peer Top 50 FULTON FINANCIAL CORPORATION
Slide 29: Interest Rates (Q4 2011 vs. Q3 2011)
Interest Rates (Q4 2011 vs. Q3 2011)
Slide 30: Interest Rate Shocks (12/31/11)
6 month cumulative gap: 1.08 Interest Rate Shocks (12/31/11) Rate Change NII Change (Annual) % Change +400 bp + $ 82.5 million + 14.5% +300 bp + $ 58.0 million + 10.2% +200 bp + $ 33.4 million + 5.9% +100 bp + $ 10.1 million + 1.8% - 100 bp - $ 15.2 million - 2.7%
Slide 31: Average Loans (Q4 2011 vs. Q3 2011)
Average Loans (Q4 2011 vs. Q3 2011)
Slide 32: Average Loans (Year to Date)
Average Loans (Dec 31 st - Year to Date)
Slide 33: Average Loan Growth
Average Loan Growth Net Charge-Offs To Average Loans
Slide 34: -~FULT “Peer
2.00 1.50 1.00 0.50 0.00 03 04 05 06 07 08 09 -~FULT “Peer =©Top 50 10 1 FULTON FINANCIAL CORPORATION
Slide 35: Allowance to Loan Losses to Loans
Allowance to Loan Losses to Loans
Slide 36: 2.60 2.30 2.00 1.70 1.40 1.10 0.80 —FULT -®Peer —*Top il FULTON FINANCIAL CORPORATION
2.60 2.30 2.00 1.70 1.40 1.10 0.80 —FULT -®Peer —*Top 50 10 il FULTON FINANCIAL CORPORATION
Slide 37: Allowance for Loan Losses to Non-accrual Loans
Allowance for Loan Losses to Non-accrual Loans Provision for Loan Losses (in millions)
Slide 38: Troubled Debt Restructurings
Troubled Debt Restructurings
Slide 39: Note: Excludes non-accrual TDRs
Note: Excludes non-accrual TDRs
Slide 40: Investment Portfolio (12-31-11)
Investment Portfolio (12-31-11) Book Yield 3.37%
Slide 41: Investment MBS & CMO Cash Flows (2011)
Investment MBS & CMO Cash Flows (2011) Book Price $101.51 Book Price $101.87 Book Price $101.48 Book Price $101.56
Slide 42: Average Deposits (Q4 2011 vs. Q3 2011)
Average Deposits (Q4 2011 vs. Q3 2011)
Slide 43: Average Deposits (Year to Date)
Average Deposits (Dec 31 st - Year to Date) Average Deposit Growth
Slide 44: 18.0 15.0 12.0 9.0 6.0 3.0 0.0 0) -—-FULT -®Peer ==Top FULTON FINANCIAL CORPORATION
18.0 15.0 12.0 9.0 6.0 3.0 0.0 0) -—-FULT -®Peer ==Top 50 FULTON FINANCIAL CORPORATION
Slide 45: Average Core Deposit Growth
Average Core Deposit Growth Other Income
Slide 46: Millions
Millions 200.0 160.0; 120.0; 80.0, 40.0; FULTON FINANCIAL CORPORATION
Slide 47: Other Income (Q4 2011 vs. Q3 2011)
Other Income (Q4 2011 vs. Q3 2011)
Slide 48: Other Income (Year to Date)
Other Income (Dec 31 st - Year to Date)
Slide 49: 64.0 62.0 60.0 58.0 56.0 54.0 52.0 50.0 T T T T 07 08
64.0 62.0 60.0 58.0 56.0 54.0 52.0 50.0 T T T T 03 04 05 06 07 08 09 10 1 —FULT <-@Peer “Top 50 FULTON FINANCIAL CORPORATION
Slide 50: Other Expense (Q4 2011 vs. Q3 2011)
Other Expense (Q4 2011 vs. Q3 2011)
Slide 51: Other Expense (Year to Date)
Other Expense (Dec 31 st - Year to Date)
Slide 52: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com
Slide 53: Supplemental Information
FULTON FINANCIAL CORPORATION
Slide 54: Net Charge-offs (YTD Dec 2011)
Net Charge-offs (YTD Dec 2011)
Slide 55: Non-performing Loans
Non-performing Loans* (as of 12/31/11)
Slide 56: Loan Delinquency (Key Sectors)
Category Total (%) 12/31/11 90-Days 12/31/11 Total (%) 12/31/10 90-Days 12/31/10 Commercial Loans 2.64 2.23 2.72 2.36 Consumer, leasing and other 2.82 0.90 2.06 0.58 Commercial Mortgage 3.03 2.47 2.70 2.14 Residential Mortgage 4.87 1.49 8.71 5.06 Construction 11.42 9.87 11.47 10.56 Total Portfolio 3
Slide 57: Loan Distribution by State
Loan Distribution by State (Q4 2011)
Slide 58: Residential Mtg by State (12/31/11)
Residential Mtg by State (12/31/11)
Slide 59: Fulton Mortgage Company
Fulton Mortgage Company § Applications $636 million vs. $715 million (Q4-2011 vs. Q3-2011) § Pipeline $325 million vs. $385 million (Q4-2011 vs. Q3-2011) § Sales gains decreased (Q4-2011 vs. Q3 -2011) § 34% purchase / 66% refinancing (Q4- 2011 Pipeline)
Slide 60: Residential Mortgage Repurchase Activity
Residential Mortgage Repurchase Activity Full year: § 2011 - Servicing Retained § Repurchased $ 5,343,561. § 2011 - Servicing Released § Repurchased $ 1,120,382.
Slide 61: C&I Loans by State
C&I Loans by State (12/31/11)
Slide 62: CRE Loans by State
CRE Loans by State (12/31/11)
Slide 63: Construction Loans by State (12/31/11)
Construction Loans by State (12/31/11)
Slide 64: Construction Loans by Type (12/31/11)
Construction Loans by Type (12/31/11) Shared National Credits (12/31/11)
Slide 65: Shared National Credits (12/31/11)
Shared National Credits (12/31/11)
Slide 66: Projected Investment Security Cash Flows
Projected Investment Security Cash Flows
Slide 67: Investment Portfolio - Transactions (4th Quarter 2011)
Investment Portfolio - Transactions (4 th Quarter 2011) ($ in Thousands)
Slide 68: = 1so% ci
$800 2.50% $700 2.25% 2.00% $600 = 1.75% Dp = 500 1so% 2 ci 2 saoo 1.25% 8 2 8 8 5300 - 1.00% z a 0.75% @ 9 $200 + 0.50% ie 0.25% so 0.00% 1Q2012 2Q2012 3Q2012 4Q2012 FULTON FINANCIAL CORPORATION
Slide 69: Projected FHLB Advance Maturities
Projected FHLB Advance Maturities
Slide 70: PPPS eK PE KS F
(1.00) PPPS eK PE KS F “™ROE -*-ROA * * ! (0.10) [ANCIAL CORPORATION
Slide 71: Total Risk-Based Capital Ratio
Total Risk-Based Capital Ratio
Slide 72: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com Version 2012-02-02
Fulton Financial — Investor Presentation (February 2012) on 6ix