Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Investor Presentation (August 2009)
62 slides from Fulton Financial's investor presentation, Aug 20, 2009
Slide 1: Fulton Financial Corporation Investor Presentation
Fulton Financial Corporation ------------------------------------------------- August 2009 Investor Presentation Data as of June 30, 2009
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 Customer Experience / Satisfaction Capital Credit Second Quarter Performance Summary
Slide 4: Fulton Financial Profile
Fulton Financial Profile Mid-Atlantic regional financial holding company A family of 8 community banks in 5 states Fulton Financial Advisors Fulton Mortgage Company 270 community banking offices Asset size: $ 16.9 billion 3850 Team Members Market capitalization: $ 1 billion Book value per common sha
Slide 5: A Valuable Geographic Franchise
A Valuable Geographic Franchise
Slide 6: Serving PA's Strongest Markets
Serving PA’s Strongest Markets* *Source: SNL, Median HH Income, 2009 data County Rank Branches Projected Population Change 2009-2014 (%) Median HH Income 2009 ($) Projected HH Income Change 2009-2014 (%) Chester, PA 6.64 7.36 Montgomery, PA 1.85 5.01 Bucks, PA 2.22 4.95 Delaware, PA 0.10 5.25 Cumber
Slide 7: FFC Affiliates in Affluent Markets
FFC Affiliates in Affluent Markets* *Source: SNL Financial, 2009 County # FFC Branches National Ranking Ranking in State Median HH Ranking Hunterdon, NJ #3 #1 $110,147 Fairfax, VA #4 #1 $109,067 Morris, NJ #6 #2 $104,797 Somerset, NJ #8 #3 $102,357 Howard, MD #9 #1 $101,954
Slide 8: Unemployment Rates
Unemployment Rates* FFC Counties Unemployment Rate (%)** State Unemployment Rate (%)*** United States 9.4 9.4 Delaware 8.4 8.7 Maryland 8.0 7.5 New Jersey 9.1 9.2 Pennsylvania 8.2 8.4 Virginia 7.6 7.3 *FFC Averages are an average of the unemployment rates of the counties in which FFC has branches. *
Slide 9: US Home Price Index
US Home Price Index* *Source: Freddie Mac, Q1 2009 Data Metropolitan Statistical Area Annual Change Q1 2008 - Q1 2009 # Branches United States -4.0 Average FFC Regions -4.6 Harrisburg-Carlisle, PA -0.6 Lebanon, PA -0.6 York-Hanover, PA -3.4 Lancaster, PA -2.0 Philadelphia, PA -2.6 Reading, PA -2.0 A
Slide 10: Our Brand
Our Brand COMMUNITY BANKING SMALL BUSINESS HIGH NET WORTH RETAIL BANKING LISTENING IS JUST THE BEGINNING.
Slide 11: Superior Customer Experience
Superior Customer Experience Care, Listen, Understand, Deliver
Slide 12: 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 13: Customer Satisfaction Metrics
Customer Satisfaction Metrics Attribute Q1/2008 Q1/2009 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 NA 9.3 Wait times are brief 9.1 9.3 Wide range of products and services 9.0 9.1 Listens to my needs 9.1 9.1 Convenient branches
Slide 14: Capital (6/30/09)
Capital (6/30/09) With CPP Without CPP GAAP Capital $1.87 billion $1.50 billion Total Risk-Based Capital $1.87 billion $1.49 billion Ratios: With CPP Without CPP Total Risk-Based Capital 13.90% 11.10% Tier 1 Risk-Based Capital 11.20% 8.40% Leverage Capital 9.40% 7.00% Tangible Common Equity 5.80% 5.
Slide 15: Loan Distribution by State (Second Quarter)
Loan Distribution by State (Second Quarter) Average % of 09 v. 08 % Balance Total Growth Growth (dollars in thousands) Pennsylvania 6,437,000 53.8% 6% New Jersey 2,498,000 20.9% 6% Maryland 1,563,000 13.1% (10,000) -1% Virginia 1,117,000 9.3% 1% Delaware 2.9% 4% 11,960,000
Slide 16: Residential Mortgage and HE Loans
Residential Mortgage and HE Loans Q2 2009 % of Avg. Bal. Total Pennsylvania 1,326,000 50.9% Maryland 17.6% New Jersey 17.6% Virginia 7.8% Delaware 6.1% 2,605,000 (dollars in thousands)
Slide 17: Commercial Loans by Industry
Commercial Loans by Industry Industry % Services 17.1 Manufacturing 14.7 RE - Rental and Leasing 12.2 Construction 11.6 Agriculture 8.5 Retail 8.5 Wholesale 7.7 Other 6.2 Health Care 5.7 Financial Services 3.5 Transportation 2.2 Arts and Entertainment 2.1 100.0
Slide 18: Commercial Loans by State
Commercial Loans by State Q2 2009 % of Avg. Bal. Total Pennsylvania 2,361,000 64.6% Maryland 11.2% New Jersey 15.0% Virginia 8.4% Delaware 0.8% 3,655,000 (dollars in thousands)
Slide 19: Construction Loans (June 30, 2009)
Construction Loans (June 30, 2009) Ending % of NPL Specific Balance Total Balance Allocations (dollars in thousands) Pennsylvania 27.0% Maryland 26.0% New Jersey 20.3% Virginia 25.3% Delaware 1.5% - 1,100,000
Slide 20: Construction Loans by Type
Construction Loans by Type Ending % of Balance Total (dollars in thousands) Commercial 25.3% Commercial Residential 66.0% Other Commercial 2.2% Real Estate 6.5% 1,100,000
Slide 21: CRE Loans by State (June 30, 2009)
CRE Loans by State (June 30, 2009) Ending % of NPL Specific Balance Total Balance Allocations (dollars in thousands) Pennsylvania 2,125,000 51.6% New Jersey 1,193,000 28.9% Maryland 8.4% Virginia 7.8% Delaware 3.2% 4,121,000
Slide 22: Loan Delinquency (Key Sectors)
Loan Delinquency (Key Sectors) Category Total (%) 6/30/08 90-Days 6/30/08 Total (%) 6/30/09 90-Days 6/30/09 Commercial Loans 1.65 1.12 2.24 1.77 Consumer Direct .81 .32 1.36 0.52 Commercial Mortgage 1.62 1.03 1.95 1.22 Residential Mortgage 5.50 2.58 7.36 3.36 Construction 3.75 2.71 10.36 9.31 Total
Slide 23: Automotive Related Loans
Automotive Related Loans Ending Balance (dollars in thousands) New Cars Used Cars Floor Plans Delinquency Rate .64%
Slide 24: Shared National Credits
Shared National Credits Ending Balance (dollars in thousands) Commercial / Industrial Commercial Real Estate Total Outstanding Delinquency: 3.8%
Slide 25: Net Charge-offs (Q2 2009)
Net Charge-offs (Q2 2009) Comm'l Res. Mtg. Comm'l Mortgage Constr. and HE Other Total (in thousands) Pennsylvania Maryland New Jersey Virginia - Delaware - - Avg Loans 3,656,000 4,091,000 1,152,000 2,605,000 11,960,000 NCO % 0.65% 0.58% 3.85% 0.26% 3.90% 0.97%
Slide 26: Net Charge-offs (YTD June 2009)
Net Charge-offs (YTD June 2009) Comm'l Res. Mtg. Comm'l Mortgage Constr. and HE Other Total (in thousands) Pennsylvania Maryland New Jersey Virginia - Delaware - Avg Loans 3,656,000 4,070,000 1,191,000 2,630,000 12,000,000 NCO % 0.86% 0.49% 3.90% 0.28% 2.99% 0.99%
Slide 27: Non-performing Loans (June 30, 2009)
Non-performing Loans* (June 30, 2009) Comm'l Res. Mtg. Comm'l Mortgage Constr. and HE Other Total (in thousands) Pennsylvania Maryland New Jersey Virginia Delaware - End Loans 3,614,000 4,121,000 1,096,000 2,578,000 11,866,000 NPL% 1.62% 1.40% 9.40% 1.44% 2.37% 2.25% * Includes accruing loans > 90 d
Slide 28: Summary of Larger Loans relationships with commitments to lend
Summary of Larger Loans 53 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 $ 471,587 Loans and corresponding relationships are within Fulton’s geo
Slide 29: Overview of Second Quarter
Overview of Second Quarter Strong core deposit growth Stable net interest margin despite reduction in total loans outstanding Continued high level of residential mortgage activity Good growth in other income Core expenses flat
Slide 30: Fulton Financial Corporation
‘FULTON FINANCIAL’ ‘CORPORATION
Slide 31: 2009 Financial Results (Second Quarter)
2009 Financial Results (Second Quarter) Net income 13,110,000 25,680,000 Cost of preferred stock (5,045,000) - Net income available to common shareholders 8,065,000 25,680,000 Earnings per share 0.05 0.15 Return on tangible equity 3.83% 11.03%
Slide 32: Income Statement Summary (Second Quarter)
Income Statement Summary (Second Quarter) % (dollars in thousands) Net Interest Income (3,950) -3% Loan Loss Provision (50,000) (16,710) (33,290) 199% Other Income 14% Credit Card Sale Gain - (13,910) nm Securities Gains (Losses) (21,650) -100% Other Expenses (107,810) (109,730) -2% Pre-Tax Income (
Slide 33: Pre-Tax Income Summary (Second Quarter)
Pre-Tax Income Summary (Second Quarter) % (dollars in thousands) Net Interest Income (3,950) -3% Other Income 14% Other Expenses (107,810) (109,730) -2% Pre-Tax Income Before Provision, CC Gain Securities Gains (Losses) 5% Loan Loss Provision (50,000) (16,710) (33,290) 199% Credit Card Sale Gain - (
Slide 34: 2009 Financial Results (YTD June)
2009 Financial Results (YTD June) Net income 26,200,000 67,170,000 Cost of preferred stock (10,080,000) - Net income available to common shareholders 16,120,000 67,170,000 Earnings per share 0.09 0.39 Return on tangible equity 3.85% 14.65%
Slide 35: Income Statement Summary (YTD June)
Income Statement Summary (YTD June) % (dollars in thousands) Net Interest Income (5,730) -2% Loan Loss Provision (100,000) (27,930) (72,070) 258% Other Income 17% Credit Card Sale Gain - (13,910) nm Securities Gains (Losses) (20,400) -115% Other Expenses (214,180) (206,400) (7,780) 4% Pre-Tax Income
Slide 36: Pre-Tax Income Summary (YTD June)
Pre-Tax Income Summary (YTD June) % (dollars in thousands) Net Interest Income (5,730) -2% Other Income 17% Other Expenses (214,180) (206,400) (7,780) 4% Pre-Tax Income Before Provision, CC Gain Securities Gains (Losses) (530) 0% Loan Loss Provision (100,000) (27,930) (72,070) 258% Credit Card Sale
Slide 37: 2009 Financial Results (Q2 vs. Q1 2009)
2009 Financial Results (Q2 vs. Q1 2009) Q2 2009 Q1 2009 Net income 13,110,000 13,085,000 Cost of preferred stock (5,045,000) (5,030,000) Net income available to common shareholders 8,065,000 8,055,000 Earnings per share 0.05 0.05 Return on tangible equity 3.83% 3.88%
Slide 38: Income Statement Summary (Q2 vs. Q1 2009)
Income Statement Summary (Q2 vs. Q1 2009) Q2 2009 Q1 2009 % (dollars in thousands) Net Interest Income 3% Loan Loss Provision (50,000) (50,000) - 0% Other Income 3% Securities Gains (Losses) (2,840) -97% Other Expenses (107,810) (106,370) (1,440) 1% Pre-Tax Income 6% Income Taxes (2,400) (1,575) (82
Slide 39: Pre-Tax Income Summary (Q2 vs. Q1 2009)
Pre-Tax Income Summary (Q2 vs. Q1 2009) Q2 2009 Q1 2009 % (dollars in thousands) Net Interest Income 3% Other Income 3% Other Expenses (107,810) (106,370) (1,440) 1% Pre-Tax Income Before Provision, CC Gain Securities Gains (Losses) 6% Loan Loss Provision (50,000) (50,000) - 0% Securities Gains (Los
Slide 40: 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 41: Net Interest Margin
Net Interest Margin 3.44 3.54 3.15 3.00 3.50 4.00 4.50 5.00 YTD FFC Peer Top 50
Slide 42: Average Loans (Q2 vs. Q1 2009)
Average Loans (Q2 vs. Q1 2009) Q2 2009 Q1 2009 % (dollars in millions) Commercial - 0% Comm'l Mort 1% Resid Mort (20) -2% Home Equity (30) -2% Construction (80) -7% Cons./Other 2% Total Loans (80) -1%
Slide 43: Average Loans (Second Quarter)
Average Loans (Second Quarter) % (dollars in millions) Commercial 5% Comm'l Mort 11% Resid Mort 6% Home Equity 6% Construction (170) -13% Cons./Other (10) -2% Total Loans 5%
Slide 44: Average Loans (YTD June)
Average Loans (YTD June) % (dollars in millions) Commercial 5% Comm'l Mort 13% Resid Mort 9% Home Equity 8% Construction (150) -11% Cons./Other (60) -12% Total Loans 6%
Slide 45: Average Deposits (Q2 vs. Q1 2009)
Average Deposits (Q2 vs. Q1 2009) Q2 2009 Q1 2009 % (dollars in millions) Nonint DDA 9% Int DDA 4% Savings/MMDA 12% CD's 3% Cash Management (30) -5% Total Loans 5%
Slide 46: Average Deposits (Second Quarter)
Average Deposits (Second Quarter) % (dollars in millions) Nonint DDA 9% Int DDA 6% Savings/MMDA 5% CD's 29% Cash Management (140) -20% Total Loans 14%
Slide 47: Average Deposits (YTD June)
Average Deposits (YTD June) % (dollars in millions) Nonint DDA 6% Int DDA 5% Savings/MMDA 0% CD's 25% Cash Management (130) -19% Total Loans 11%
Slide 48: Other Income
Other Income $0 $20 $40 $60 $80 $100 $120 $140 $160 Millions
Slide 49: Other Income (Q2 vs. Q1 2009)
Other Income (Q2 vs. Q1 2009) Q2 2009 Q1 2009 % (dollars in thousands) Overdraft & NSF Fees 4% Invt Mgt & Trust (20) 0% Mort. Sales Gains (1,190) -14% Service Charges (70) -2% Cash Mgt Fees (110) -3% Success Card Fees 13% Credit Card Fees N/A Other 21% Total 3%
Slide 50: Other Income (Second Quarter)
Other Income (Second Quarter) % (dollars in thousands) Overdraft & NSF Fees 2% Invt Mgt & Trust (510) -6% Mort. Sales Gains 177% Service Charges (170) -5% Cash Mgt Fees (240) -7% Success Card Fees 8% Credit Card Fees N/A Other 10% Total 14%
Slide 51: Other Income (YTD June)
Other Income (YTD June) % (dollars in thousands) Overdraft & NSF Fees 6% Mort. Sales Gains 221% Invt Mgt & Trust (1,370) -8% Service Charges 1% Cash Mgt Fees (270) -4% Success Card Fees 8% Credit Card Fees N/A Other 4% Total 17%
Slide 52: Efficiency Ratio
Efficiency Ratio 60.5 61.4 61.6 50.0 52.0 54.0 56.0 58.0 60.0 62.0 64.0 YTD FFC Peer Top 50
Slide 53: Other Expense (Q2 vs. Q1 2009)
Other Expense (Q2 vs. Q1 2009) Q2 2009 Q1 2009 % (dollars in thousands) Salaries & Benefits 1% Occupancy & Equip. (560) -4% FDIC Insurance 185% Data Proc. & Software (20) 0% Supplies & Postage 2% Marketing (850) -33% Operating Risk Loss (6,060) -98% Other Expenses 3% Total 1%
Slide 54: Other Expense (Second Quarter)
Other Expense (Second Quarter) % (dollars in thousands) Salaries & Benefits 3% Occupancy & Equip. (100) -1% FDIC Insurance nm Data Proc. & Software 3% Supplies & Postage (280) -9% Marketing (1,800) -51% Operating Risk Loss (14,250) -99% Other Expenses 8% Total (1,930) -2%
Slide 55: Other Expense (YTD June)
Other Expense (YTD June) % (dollars in thousands) Salaries & Benefits 1% Occupancy & Equip. 0% FDIC Insurance nm Data Proc. & Software 1% Operating Risk Loss (9,290) -59% Supplies & Postage (430) -7% Marketing (2,130) -33% Other Expenses 10% Total 4%
Slide 56: Allowance for Credit Losses
Allowance for Credit Losses Q2 2009 Q1 2009 (dollars in thousands) Balance at beginning of period Loan Loss Provision Net Charge-Offs (29,110) (30,080) Balance at end of period Allowance to Loans 1.86% 1.67% Nonperforming Assets to Assets 1.73% 1.63% Net Charge-offs to Loans 0.97% 1.00%
Slide 57: Allowance for Credit Losses (2nd Quarter)
Allowance for Credit Losses (2nd Quarter) (dollars in thousands) Balance at beginning of quarter Loan Loss Provision Net Charge-Offs (29,110) (9,560) Balance at June 30th Allowance to Loans 1.86% 1.09% Nonperforming Assets to Assets 1.73% 1.02% Net Charge-offs to Loans 0.97% 0.33%
Slide 58: Allowance for Credit Losses (YTD June)
Allowance for Credit Losses (YTD June) (dollars in thousands) Balance at beginning of year Loan Loss Provision Net Charge-Offs (59,190) (13,920) Balance at June 30th Allowance to Loans 1.86% 1.09% Nonperforming Assets to Assets 1.73% 1.02% Net Charge-offs to Loans 0.99% 0.24%
Slide 59: Net Charge-Offs To Average Loans
Net Charge-Offs To Average Loans 0.99 1.10 1.67 0.00 0.30 0.60 0.90 1.20 1.50 1.80 YTD FFC Peer Top 50
Slide 60: Investment Portfolio
Investment Portfolio ENDING MODIFIED BALANCE DURATION (in millions) Agency mortgage-backed securities 1,269.7 2.39 Agency collateralized mortgage obligations 881.6 2.15 Municipal bonds 454.4 4.25 Auction rate securities 298.8 4.30 Corporate & trust preferred securities 157.1 10.60 U.S. Treasuries an
Slide 61: Status of the Corporation
Status of the Corporation Reliable retail funding base Good growth in net interest income and non-interest income Strong capital position Residential mortgage activity Continued expense reduction Positioned for economic rebound Valuable 5-state franchise in strong in- state markets
Slide 62: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com
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