Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Raymond James and Associates Institutional Investors Conference 2009
39 slides from Fulton Financial's conference presentation, Mar 9, 2009
Slide 1: Fulton Financial Corporation
Fulton Financial Corporation Raymond James and Associates Institutional Investors Conference March 8-11, 2009 (Data as of December 31, 2008)
Slide 2: Forward-Looking Statement
Forward-Looking Statement 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 f
Slide 3: Presentation Outline
Presentation Outline Corporate Overview Franchise and Markets Capital and Liquidity Loan Summary Recent Trends Financial Performance Summary
Slide 4: Fulton Financial Profile
Fulton Financial Profile Mid-Atlantic regional financial holding company A family of 10 community banks in 5 states Fulton Financial Advisors Fulton Mortgage Co. 267 community banking offices Asset size: $ 16.2 billion 3900 Team Members Market capitalization: $ 1 billion Book value per common share:
Slide 5: Capital
Capital With CPP Without CPP GAAP Capital $1.86 billion $1.48 billion Total Risk-Based Capital $1.85 billion $1.48 billion Ratios: With CPP Without CPP Total Risk-Based Capital 14.25% 11.36% Tier 1 Risk-Based Capital 11.46% 8.57% Leverage Capital 9.57% 7.16% Tangible Common Equity 5.97% 5.97%
Slide 6: Liquidity and Borrowing Capacity
Liquidity and Borrowing Capacity Customer funding base: $ 10.6 billion --------------------------------------------------------- Total available collateral and borrowing capacity: $ 3.3 billion Fed Funds capacity: $ 1.4 billion
Slide 7: Superior Customer Experience
Superior Customer Experience Care, Listen, Understand and Deliver
Slide 8: Superior Customer Satisfaction
Superior Customer Satisfaction *Retail: 90% extremely/very satisfied Commercial: 90% extremely/very satisfied * Compared to national average of 63% Source: American Banker/Gallup Consumer Survey
Slide 9: A Valuable Geographic Franchise
A Valuable Geographic Franchise
Slide 10: Serving PA's Strongest Markets
Serving PA’s Strongest Markets* *Source: SNL, Median HH Income, 2008 data County Rank Branches Projected Population Change 2008-2013 (%) Median HH Income 2008 ($) Projected HH Income Change 2008-2013 (%) Chester, PA 7.96 87,480 22.46 Montgomery, PA 2.34 79,875 22.45 Bucks, PA 3.78 79,610 22.28 Delaw
Slide 11: FFC Affiliates in Affluent Markets
FFC Affiliates in Affluent Markets* *Source: SNL Financial, 2008 County Branches National Ranking Ranking in State Median HH Ranking Hunterdon, NJ #3 #1 $109,245 Morris, NJ #7 #2 $103,406 Somerset, NJ #8 #3 $102,548 Howard, MD #9 #1 $101,251 Montgomery, MD #22 #2 $91,571
Slide 12: Unemployment Rates
Unemployment Rates* FFC Counties Unemployment Rate (%) State Unemployment Rate (%) United States** 7.6 7.6 Delaware 6.2 5.9 Maryland 5.7 5.6 New Jersey 6.8 6.8 Pennsylvania 6.2 6.4 Virginia 5.3 5.2 *FFC Averages are an average of the unemployment rates of the counties in which FFC has branches. *Sou
Slide 13: US Home Price Index
US Home Price Index* *Source: Freddie Mac, Q3 2008 Data Metropolitan Statistical Area Annual Change Q3 2007 - Q3 2008 # Branches United States -5.6 Average FFC Regions -3.5 Harrisburg-Carlisle, PA 1.2 Lebanon, PA 1.0 York-Hanover, PA 0.2 Lancaster, PA -0.6 Philadelphia, PA -1.8 Reading, PA -2.2 Alle
Slide 14: Loan Distribution by Affiliate
Loan Distribution by Affiliate % of 08 v. 07 % Aver Bal Total Growth Growth (dollars in thousands) Pennsylvania 6,195,000 $ 53.4% 430,000 $ 7% New Jersey 2,379,000 20.5% 228,000 10% Maryland 1,580,000 13.6% 37,000 2% Virginia 1,107,000 9.5% 144,000 15% Delaware 339,000 2.9% 26,000 8% 11,600,000 $
Slide 15: Residential Mortgage and HE Loans
Residential Mortgage and HE Loans Total % of Balance Total Pennsylvania 1,383,000 $ 51.9% Maryland 457,000 17.1% New Jersey 459,000 17.2% Virginia 206,000 7.7% Delaware 162,000 6.1% 2,667,000 $ (dollars in thousands)
Slide 16: Commercial Loans by Industry
Commercial Loans by Industry Industry % Services 17.9 RE - Rental and Leasing 12.2 Construction 12.2 Manufacturing 12.2 Agriculture 9.2 Retail 8.8 Wholesale 8.1 Other 6.1 Health Care 6.0 Financial Services 3.1 Transportation 2.5 Arts and Entertainment 1.7 100.0
Slide 17: Commercial Loans by Geography
Commercial Loans by Geography Total % of Balance Total Pennsylvania 2,354,000 $ 64.7% Maryland 415,000 11.4% New Jersey 535,000 14.7% Virginia 302,000 8.3% Delaware 30,000 0.8% 3,636,000 $ (dollars in thousands)
Slide 18: Construction Loans
Construction Loans Total % of NPL Specific Balance Total Balance Allocations (dollars in thousands) Pennsylvania 353,000 $ 27.8% 6,380 $ 1,570 $ Maryland 357,000 28.1% 30,660 13,590 New Jersey 237,000 18.7% 16,260 3,990 Virginia 304,000 24.0% 26,780 12,030 Delaware 18,000 1.4% - 1,269,000 $ 80,080 $
Slide 19: Commercial Real Estate Loans
Commercial Real Estate Loans Total % of NPL Specific Balance Total Balance Allocations (dollars in thousands) Pennsylvania 2,045,000 $ 50.9% 17,850 $ 18,060 $ New Jersey 1,179,000 29.4% 17,450 5,790 Maryland 335,000 8.3% 2,110 1,580 Virginia 326,000 8.1% 3,330 1,300 Delaware 132,000 3.3% 1,000 4,017
Slide 20: Loan Delinquency (Key Sectors)
Loan Delinquency (Key Sectors) Category Total (%) 12/31/07 90-Days 12/31/07 Total (%) 12/31/08 90-Days 12/31/08 Commercial Loans 1.61 0.80 1.65 1.08 Consumer Direct 0.85 0.26 1.20 0.45 Commercial Mortgage 1.17 0.41 1.78 1.03 Residential Mortgage 6.49 3.52 6.45 2.70 Construction 3.18 2.19 8.21 6.15 T
Slide 21: Summary of Larger Loan Relationships
Summary of Larger Loans 49 relationships with commitments to lend of $20 million or more Maximum individual commitment- $33 million Maximum commitment land development- $28 million Average commercial lending relationship size is $ 437,548 Loans and corresponding relationships are within Fulton’s geo
Slide 22: Recent Trends
Recent Trends Strong Loan Growth Growth in Net Interest Income Accelerating Deposit Growth Stable Net Interest Margin Significant Increase in Mortgage Refinancing Activity Improved Efficiency Increased Other Income Expense Reductions
Slide 23: Fulton Financial Corporation
‘FULTON FINANCIAL ‘CORPORATION
Slide 24: 2008 Financial Results
2008 Financial Results Net income (loss) (5,620,000) $ 152,720,000 $ Cost of preferred stock (463,000) $ - $ Net income (loss) available to common shareholders (6,080,000) $ 152,720,000 $ Earnings per share (0.03) $ 0.88 $ Return on tangible equity 9.29% 18.16%
Slide 25: Income Statement Summary
Income Statement Summary $ % (dollars in thousands) Net Interest Income 524,150 $ 488,740 $ 35,410 $ 7% Loan Loss Provision (119,630) (15,060) (104,570) 694% Other Income 155,390 146,280 9,110 6% Credit Card Sale Gain 13,910 - 13,910 nm Securities (Losses) Gains (58,240) 1,740 (59,980) nm Goodwill I
Slide 26: 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 Corpora
Slide 27: Net Interest Margin
Net Interest Margin 3.68 3.67 3.35 3.25 3.50 3.75 4.00 4.25 4.50 4.75 FFC Peer Top 50
Slide 28: Average Loan Growth
Average Loan Growth $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Billions
Slide 29: Average Deposit Growth
Average Deposit Growth $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 Billions
Slide 30: Other Income
Other Income $0 $20 $40 $60 $80 $100 $120 $140 $160 Millions
Slide 31: Other Income (Year Ended December 31)
Other Income (Year Ended December 31 st ) $ % (dollars in thousands) Overdraft & NSF Fees 35,320 $ 22,350 $ 12,970 $ 58% Invt Mgt & Trust 32,730 38,670 (5,940) -15% Cash Mgt Fees 13,270 11,530 1,740 15% Service Charges 13,040 12,620 3% Mort. Sales Gains 10,330 14,290 (3,960) -28% Success Card Fees 9
Slide 32: Efficiency Ratio
Efficiency Ratio 57.4 61.8 61.9 50.0 52.0 54.0 56.0 58.0 60.0 62.0 64.0 FFC Peer Top 50
Slide 33: Other Expense (Year Ended December 31)
Other Expense (Year Ended December 31 st ) $ % (dollars in thousands) Salaries & Benefits 213,560 $ 217,530 $ (3,970) $ -2% Occupancy & Equip. 55,570 53,860 1,710 3% Operating Risk Loss 24,310 27,230 (2,920) -11% Data Proc. & Software 18,550 17,780 4% Marketing 13,270 11,330 1,940 17% Supplies & Pos
Slide 34: Allowance for Credit Losses
Allowance for Credit Losses (dollars in thousands) Balance 1-1-08 112,210 $ 106,880 $ Loan Loss Provision 119,630 15,060 Net Charge-Offs (51,700) (9,740) Balance 12-31-08 180,140 $ 112,200 $ Allowance to Loans 1.50% 1.00% Nonperforming Assets to Assets 1.35% 0.76% Net Charge-offs to Loans 0.45% 0.09
Slide 35: Net Charge-Offs To Loans
Net Charge-Offs To Loans 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 FFC Peer Top 50
Slide 36: Securities Related Charges
Securities Related Charges Auction Rate Securities - $20 million contingent loss Bank Stocks - $43 million other-than – temporary impairment Corporate Debt Securities - $21 million other-than-temporary impairment
Slide 37: Investment Portfolio
Investment Portfolio ENDING MODIFIED BALANCE DURATION (in millions) Agency mortgage-backed securities 1,120.5 $ 4.38 Municipal bonds 513.3 4.15 Agency collateralized mortgage obligations 489.7 4.34 Auction rate securities 208.3 5.14 Corporate & trust preferred securities 152.0 9.98 U.S. Treasuries a
Slide 38: Status of the Corporation
Status of the Corporation Valuable geographic franchise Positive market demographics Strong capital Deposit trends improving Continued expense reduction Positioned for economic rebound
Slide 39: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com
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