Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Investor Presentation (August 2013)
58 slides from Fulton Financial's investor presentation, Aug 13, 2013
Slide 1: Investor Presentation
Investor Presentation Data as of June 30, 2013 (unless otherwise noted) 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,” “shoul
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: $17.0 billion § 3,800 team members (3,620 FTEs) § Shares outstanding: 193.7 million § Market capitalization: $ 2.2 bill
Slide 4: Fulton Financial Corporation banks
@ The Columbia Bank @ FNB Bank,N.A. @ Fulton Bank,N.A. Il Fulton Bank of New Jersey BB Lafayette Ambassador Bank i Swineford National Bank Delaware FULTON FINANCIAL CORPORATION
Slide 5: Corporate Priorities
1. Earnings Per Share (EPS) Growth 2. Quality Loan Growth 3. Improve Asset Quality 4. Core Deposit / Household Growth 5. Spread Management / Net Interest Margin 6. Increase Return on Average Assets (ROA) 7. Increase Return on Average Equity (ROE) 8. Expense Management Corporate Priorities
Slide 6: Priorities: EPS
Priorities: EPS 1. EPS Growth ü Q2 2013 Diluted EPS : 21 cents Up 5.0% compared to Q1 2013 and Q2 2012
Slide 7: Diluted Earnings Per Share (Quarterly)
Diluted Earnings Per Share (Quarterly)
Slide 8: Quarterly income statement comparison
Change Q2 2013 Q1 2013 $ % (dollars in thousands, except per-share data) Net Interest Income $ 132,065 $129,644 $ 2,421 2% Loan Loss Provision (13,500) (15,000) 1,500 -10% Non-Interest Income 49,451 44,786 4,665 10% Securities Gains 2,865 2,473 392 16% Non-Interest Expenses (117,130) (110,936) (6,19
Slide 9: Priorities: Earning Asset Growth
2. Quality Loan Growth ü Average loans up 2.2% compared to Q1 2013 and up 4.7% compared to Q2 2012 ü Third consecutive quarter of solid growth Priorities: Earning Asset Growth
Slide 10: Loans by type
Q2 2013 Q1 2013 (dollars in millions) Comm'! Mort $ 4,758 $ 4,666 $ 92 2% Commercial 3,715 3,663 52 1% Home Equity 1,733 1,662 71 4% Resid Mort 1,309 1,283 26 2% Construction 617 591 26 4% Consumer/ Other 397 392 5 1% Total Loans $ 12,529 $ 12,257 $ 272 2% FULTON FINANCIAL CORPORATION
Slide 11: Peer Group
Peer Group* International Bancshares Corp. People’s United Financial, Inc. Prosperity Bancshares, Inc. Susquehanna Bancshares, Inc. TCF Financial Corporation UMB Financial Corporation Umpqua Holdings Corporation Valley National Bancorp Webster Financial Corporation Wintrust Financial Corporation Ass
Slide 12: Loan growth versus peers
Note : 2007 through 2012 represents December year-over-year change in ending loans. 06/30/13 represents June 30, 2013 over December 31, 2012 change in ending loans. * Comprised of the 50 largest publicly traded domestic banks/thrifts in assets size as of December 31,2012. Excludes credit card compan
Slide 13: Improve Asset Quality
3. Improve Asset Quality Priorities: Credit Metrics
Slide 14: Non-accrual Loans to Loans
Non-accrual Loans to Loans * Comprised of the 50 largest publicly traded domestic banks/thrifts in assets size as of December 31,2012. Excludes credit card companies. Source: SNL Financial LC
Slide 15: Allowance for Loan Losses to Loans
Allowance for Loan Losses to Loans * Comprised of the 50 largest publicly traded domestic banks/thrifts in assets size as of December 31,2012. Excludes credit card companies. Source: SNL Financial LC
Slide 16: Non-performing Loans
Non-performing Loans* (6/30/13) * Includes loans ≥ 90 days past due and accruing and non-accrual loans.
Slide 17: Provision for Credit Losses (Quarterly)
Provision for Credit Losses (Quarterly, in millions of dollars)
Slide 18: Core Deposit / Household Growth
4. Core Deposit / Household Growth 2012 Net Account Lift (#): 2.8% Priorities: Deposits
Slide 19: Deposit Composition
Deposit Composition Note : Deposit composition is based on quarterly average balances for the periods indicated.
Slide 20: Overall Customer Satisfaction Score
Overall Customer Satisfaction Score (1) (1) Annual retail customer satisfaction surveys conducted by Fulton’s internal Marketing Research Group. Areas covered: Overall Customer Satisfaction and likelihood to recommend the bank; Customer experience; Specific issues of problems experience by customers
Slide 21: Spread Management / Net Interest Margin
5. Spread Management / Net Interest Margin § Q2 2013 Net Interest Margin (fully-taxable equivalent): 3.52% ü Yield on average interest-earning assets: 4.07% ü Cost of average interest-bearing liabilities: 0.74% Priorities: Margin
Slide 22: Net Interest Margin (Quarterly)
Ne t Interest Margin (Quarterly) Note : Fully-taxable equivalent * Comprised of the 50 largest publicly traded domestic banks/thrifts in assets size as of December 31,2012. Excludes credit card companies. Source: SNL Financial LC
Slide 23: Interest Rate Shocks
Interest Rate Shocks (6/30/13) 1) A variety of interest rate scenarios are used to measure the effects of sudden and gradual movements upward and downward in the yield curve. These results are compared to the results obtained in a flat or unchanged interest rate scenario. Simulation of earnings is u
Slide 24: ROA and ROE
6. ROA Q2 2013: 0.97% Q1 2013: 0.96% Priorities: ROA and ROE 7. ROE (Tangible) (1) Q2 2013: 10.75% Q1 2013: 10.43% 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
Slide 25: Return on Average Assets by Bank
Return on Average Assets and Average Assets, by Bank *Net Income divided by average assets, annualized.
Slide 26: Total Risk-Based Capital Ratio
Total Risk-Based Capital Ratio
Slide 27: Capital Adequacy
Capital Adequacy (6/30/13) (1) Estimates - based on final rules. Application of the Basel III rules are also subject to further interpretation, which could result in changes to the estimates shown above. (2) Fully-phased in requirements, with 2.50% conservation buffer.
Slide 28: Tangible Book Value Per Share
Tangible Book Value Per Share (1) (1) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Reconciliation” at the end of this presentation. (2) Compounded annual growth rate from June 30, 2010 to June 30, 2013
Slide 29: Price Multiple vs. Peer Group
Price Multiple vs. Peer Group Notes : Peer Tangible Book Value as of 6/30/2013. Source: SNL Financial LC FULT Tangible Book Value as of 6/30/2013. (1) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Recon
Slide 30: Price Multiple vs. Peer Group
Price Multiple vs. Peer Group Notes : Peer Tangible Book Value as of 6/30/2013. Source: SNL Financial LC FULT Tangible Book Value as of 6/30/2013. (1) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Recon
Slide 31: Cash Dividend and Yield
FULT - Cash Dividend and Yield (1) (1) Annualized dividend rate per share divided by period-end stock price. (2) Compounded annual growth rate in cash dividend from June 30, 2009 to June 30, 2013. CAGR (2) = 27.8%
Slide 32: Stock Repurchase Program
§ New program authorized: January 2013 and extended in June 2013 § Purchase of up to 8 million shares through September 30, 2013 § About 4 % of outstanding shares § Shares repurchased through June 30, 2013: 6.4 million § Average purchase price: $ 11.11 Stock Repurchase Program
Slide 33: Expense Management
8. Expense Management Priorities: Efficiency
Slide 34: Non-interest expense detail
Q2 2013 Q1 2013 $ % (dollars in thousands) Salaries & Benefits $ 63,490 $ 61,212 $ 2,278 4% Occupancy & Equip. 15,340 15,752 (412) -3% Data Proc. & Software 7,603 6,651 952 14% Outside Services 5,315 2,860 2,455 86% Professional Fees 3,395 3,047 348 11% FDIC Insurance 3,001 2,847 154 5% Supplies & P
Slide 35: Efficiency Ratio
Efficiency Ratio (1) (1) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Reconciliation” at the end of this presentation. * Comprised of the 50 largest publicly traded domestic banks/thrifts in assets siz
Slide 36: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION
Slide 37: Deposits by type
Change Q22013. Q12013—i—CiSCOH (dollars in millions) Non-Int DDA $ 3,117 $ 2,969 $ 148 5% Int DDA 2,719 2,706 13 0% Savings/MMDA 3,351 3,334 17 1% Total Core Deposits 9,187 9,009 178 2% CD's 3,169 3,321 (152) _-5% Cash Management 287 277 10 4% Total Deposits $ 12,643 $ 12,607 $ 36 0% FULTON FINANCIA
Slide 38: Non-Interest Income
Non-Interest Income (in millions) CAGR (1) = 7.2% (1) Compounded annual growth rate from year-ended December 31, 2003 to year-ended December 31, 2012.
Slide 39: Non-interest income detail
Q2 2013 Q1 2013 Change $ % (dollars in thousands) Mort. Banking Income $10,997 $ 8,173 2,824 35% Invt Mgt & Trust 10,601 10,096 505 5% Overdraft & NSF Fees 7,623 7,461 162 2% Service Charges 4,057 3,818 239 6% Merchant Fees 3,600 3,074 526 17% Cash Mgt Fees 2,970 2,832 138 5% Debit Card Fees 2,374 2
Slide 40: Interest Rates
Interest Rates (1) Fully-taxable equivalent
Slide 41: Net Charge-offs (Recoveries)
Net Charge-offs (Recoveries) (YTD June 2013)
Slide 42: Net Charge-Offs To Average Loans
Net Charge-Offs To Average Loans * Comprised of the 50 largest publicly traded domestic banks/thrifts in assets size as of December 31,2012. Excludes credit card companies. Source: SNL Financial LC (1) Annualized.
Slide 43: Loan Distribution by State
Loan Distribution by State (6/30/13)
Slide 44: Residential Mortgages
Residential Mortgages (6/30/13) (1) NPL - Non-performing loans. Includes accruing loans ≥ 90 days past due and non-accrual loans. (2) Related allowance for loan losses allocations.
Slide 45: Fulton Mortgage Company
Fulton Mortgage Company § New applications received during Q2 2013 were $678 million compared to $701 million during Q1 § Pipeline* $368 million at June 30, 2013 vs. $386 million at March 31, 2013 § The approved loan pipeline at the end of Q2 2013 was $104 million § Percentage of the pipeline that h
Slide 46: Commercial Loans
Commercial Loans (6/30/13) (1) NPL - Non-performing loans. Includes accruing loans ≥ 90 days past due and non-accrual loans. (2) Related allowance for loan losses allocations.
Slide 47: Commercial Mortgages
Commercial Mortgages (6/30/13) (1) NPL - Non-performing loans. Includes accruing loans ≥ 90 days past due and non-accrual loans. (2) Related allowance for loan losses allocations.
Slide 48: Construction Loans
Construction Loans (6/30/13) (1) NPL - Non-performing loans. Includes accruing loans ≥ 90 days past due and non-accrual loans. (2) Related allowance for loan losses allocations.
Slide 49: Excludes non-accrual troubled debt restructurings
Note : Excludes non-accrual troubled debt restructurings.
Slide 50: Investment Portfolio
Investment Portfolio (6/30/13) Monthly Investment Yield:2.88%
Slide 51: Projected Investment Security Cash Flows
Projected Investment Security Cash Flows
Slide 52: Investment MBS & CMO Cash Flows
Investment MBS & CMO Cash Flows (2012-2013) Book Price $102.14
Slide 53: Investment Portfolio - Transactions
Investment Portfolio - Transactions (2 nd Quarter 2013) Does not include $1.0 million bank stock gains for the 2 nd quarter of 2013 or $136,000 of gains related to 1Q 2013 sales
Slide 54: Non-GAAP Reconciliation
Non-GAAP Reconciliation Note : The Corporation has presented the following non-GAAP (Generally Accepted Accounting Principals) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's quarterly results of operations.
Slide 55: Non-GAAP Reconciliation (con't)
Non-GAAP Reconciliation (con’t)
Slide 56: Non-GAAP Reconciliation (con't)
Non-GAAP Reconciliation (con’t)
Slide 57: Non-GAAP Reconciliation (con't)
Non-GAAP Reconciliation (con’t)
Slide 58: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com Version 2013-08-09
Fulton Financial — Investor Presentation (August 2013) on 6ix