Attached files
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| 8-K - FULTON FINANCIAL CORP | f8k.htm |
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Fulton Financial
Corporation
-------------------------------------
Investor Presentation
Data as of September 30, 2010
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n This presentation may contain forward-looking statements about Fulton Financial Corporation’s financial
condition, results of operations, business, strategies, products and services. You can identify forward-looking
statements by the use of words such as “may”, “should”, “will”, “could”, “estimates”, “predicts”, “potential”,
“continue”, “anticipates”, “believes”, “plans”, “expects”, “future” and “intends” and similar expressions
which are intended to identify forward-looking statements.
condition, results of operations, business, strategies, products and services. You can identify forward-looking
statements by the use of words such as “may”, “should”, “will”, “could”, “estimates”, “predicts”, “potential”,
“continue”, “anticipates”, “believes”, “plans”, “expects”, “future” and “intends” and similar expressions
which are intended to identify forward-looking statements.
n Such forward-looking statements reflect the current beliefs and expectations of the Corporation’s
management, are based on estimates, assumptions and projections about the Corporation’s business and its
industry, and involve significant risks and uncertainties, some of which are beyond our control and difficult to
predict. These statements are not guarantees of future performance and actual results may differ materially
from those expressed or forecasted in the forward-looking statements. The Corporation undertakes no
obligation to update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise. Accordingly, investors and others are cautioned not to place undue reliance on such
forward-looking statements.
management, are based on estimates, assumptions and projections about the Corporation’s business and its
industry, and involve significant risks and uncertainties, some of which are beyond our control and difficult to
predict. These statements are not guarantees of future performance and actual results may differ materially
from those expressed or forecasted in the forward-looking statements. The Corporation undertakes no
obligation to update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise. Accordingly, investors and others are cautioned not to place undue reliance on such
forward-looking statements.
n Many factors could affect future financial results including, without limitation, asset quality and the impact of
adverse changes in the economy and in credit or other markets and resulting effects on credit risk and asset
values; acquisition and growth strategies; market risk; changes or adverse developments in economic,
political or regulatory conditions; a continuation or worsening of the current disruption in credit and other
markets, including the lack of or reduced access to, and the abnormal functioning of markets for mortgages
and other asset-backed securities and for commercial paper and other short-term borrowings; changes in the
levels of Federal Deposit Insurance Corporation deposit insurance premiums and assessments; the effect of
competition and interest rates on net interest margin and net interest income; investment strategy and income
growth; investment securities gains and losses; declines in the value of securities which may result in charges
to earnings; changes in rates of deposit and loan growth or a decline in loans originated; balances of risk-
sensitive assets to risk-sensitive liabilities; salaries and employee benefits and other expenses; amortization
of intangible assets; goodwill impairment; capital and liquidity strategies; and other financial and business
matters for future periods.
adverse changes in the economy and in credit or other markets and resulting effects on credit risk and asset
values; acquisition and growth strategies; market risk; changes or adverse developments in economic,
political or regulatory conditions; a continuation or worsening of the current disruption in credit and other
markets, including the lack of or reduced access to, and the abnormal functioning of markets for mortgages
and other asset-backed securities and for commercial paper and other short-term borrowings; changes in the
levels of Federal Deposit Insurance Corporation deposit insurance premiums and assessments; the effect of
competition and interest rates on net interest margin and net interest income; investment strategy and income
growth; investment securities gains and losses; declines in the value of securities which may result in charges
to earnings; changes in rates of deposit and loan growth or a decline in loans originated; balances of risk-
sensitive assets to risk-sensitive liabilities; salaries and employee benefits and other expenses; amortization
of intangible assets; goodwill impairment; capital and liquidity strategies; and other financial and business
matters for future periods.
n For a more complete discussion of certain risks and uncertainties affecting the Corporation, please see the
sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” set forth in the Corporation’s filings with the Securities and Exchange Commission.
sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” set forth in the Corporation’s filings with the Securities and Exchange Commission.
Forward-Looking Statement
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Presentation Outline
u Corporate Profile
u Franchise and Markets
u Overview of the 3rd Quarter
u Capital
u Earnings/Peer Group
u Financial Performance
u Supplemental Credit Information
u Investment Portfolio
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Fulton Financial Profile (as of 9/30/10)
n Mid-Atlantic regional financial holding company
n A family of 8 community banks in 5 states
n Fulton Financial Advisors
n Fulton Mortgage Company
n 272 community banking offices
n Asset size: $ 16.3 billion
n 3,800 Team Members
n Market capitalization: $ 1.8 billion
n Book value per common share: $ 9.43
n Tangible book value per common share: $6.67
n Shares outstanding: 198.9 million
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A Valuable Geographic Franchise
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Superior Customer Experience
WE WILL CARE, LISTEN,
UNDERSTAND, AND DELIVER
UNDERSTAND, AND DELIVER
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Our Brand
COMMUNITY BANKING
SMALL BUSINESS
HIGH NET WORTH
RETAIL BANKING
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Overview of the 3rd Quarter
n TARP redeemed in full on July 14th
n Repurchased associated warrant on September 8th
n Strong mortgage activity and related sale gains
n Net interest margin expansion
n Continued core deposit growth / highly liquid
n Regulation E overdraft guidelines implemented
n Announced merger of Delaware affiliate into Fulton
Bank
Bank
n Expenses well controlled
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Overview of the 3rd Quarter / Credit
n Loan balances stable / growth offset
runoff and charge-offs
runoff and charge-offs
n Earning asset growth a challenge
n Economic recovery slower than
anticipated
anticipated
n Non-performing assets and overall
delinquency increased linked quarter
delinquency increased linked quarter
n Further reduction in construction
exposure
exposure
n Provision unchanged from prior quarter
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n 52 relationships with commitments to lend
of $20 million or more
n Maximum individual commitment: $33 million
n Maximum commitment land development:
$25 million
Ø Maximum commitment any one development
project: $15 million
project: $15 million
n Average commercial lending relationship size is
$459,711
$459,711
n Loans and corresponding relationships are
within Fulton’s geographic market area
within Fulton’s geographic market area
Summary of Larger Loans 9/30/10
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Basel Capital Guidelines
n Corporation’s current capital levels
exceed preliminary guidelines
exceed preliminary guidelines
n Possible further definition and
clarification from U. S. Regulatory
Authorities
clarification from U. S. Regulatory
Authorities
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Capital 9/30/10
|
GAAP Capital
|
$1.88 billion
|
|
Total Risk-Based Capital
|
$1.77 billion
|
|
Total Risk-Based Capital Ratio
|
13.90%
|
|
Tier 1 Risk-Based Capital Ratio
|
11.40%
|
|
Leverage Capital Ratio
|
9.20%
|
|
Tangible Common Equity Ratio
|
8.40%
|
|
Tangible Common Equity
to Risk-Weighted Assets
|
10.45%
|
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Dodd Frank Act
n Established organizational structure
to address each applicable Title
to address each applicable Title
n Expect market opportunities with
appropriate planning and strategizing
appropriate planning and strategizing
n Believe we are in a better position to
absorb increased costs than smaller
competitors
absorb increased costs than smaller
competitors
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Mortgage Foreclosures
n Media focus is largely on high volume
servicing/ foreclosure operations
servicing/ foreclosure operations
n Each customer viewed on case-by-case basis
n Strive to keep borrowers in their homes
n Approximately 300 residential foreclosure
actions initiated during first nine months of
this year
actions initiated during first nine months of
this year
n Currently conducting review of our foreclosure
requirements, foreclosure procedures and law
firms we use
requirements, foreclosure procedures and law
firms we use
n The impact of any deficiencies which may be
discovered is not expected to be material
discovered is not expected to be material
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Financial Performance
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Income Statement Summary
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Income Statement Summary (YTD September)
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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 Corporation
*Fulton’s peer group as of September 30, 2010
Associated Banc-Corp
BancorpSouth, Inc.
Bank of Hawaii Corporation
BOK Financial Corporation
Citizens Republic Bancorp
City National Corporation
Commerce Bancshares, Inc.
Cullen/Frost Bankers, Inc.
First Citizens BancShares, Inc.
First Midwest Bancorp, Inc.
First Merit Corporation
Peer Group*
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Net Interest Margin
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Average Loans (Q3 2010 vs. Q2 2010)
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Average Loans (September 30th - Year to Date)
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Average Loan Growth
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Net Charge-Offs To Average Loans
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Non-performing Loans to Loans
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Allowance to Loans
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Allowance to Non-performing Loans
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Average Deposits (Q3 2010 vs. Q2 2010)
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Average Deposits (September 30th - Year to Date)
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Average Deposit Growth
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Other Income (Q3 2010 vs. Q2 2010)
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Other Income (September 30th - Year to Date)
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More Efficient Than Peers
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Other Expense (Q3 2010 vs. Q2 2010)
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Other Expense (September 30th - Year to Date)
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Corporate Priorities
n EPS growth to improve total shareholder return
n Reduce credit costs and construction exposure
n Aggressively seek quality loans / protect current
relationships
relationships
n Pricing to reward, retain and enhance retail
customer relationships
customer relationships
n Leverage our brand and Forbes recognition
n Consistent superior customer experience
n Continue to align funding costs with protracted low
rate environment
rate environment
n Offset impact of Regulation E changes / focus on
non-interest income
non-interest income
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Fulton Financial Corporation
One Penn Square
Lancaster, PA 17602
www.fult.com
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Supplemental Credit
Information
Information
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Commercial Loans by Industry (Sept. 30, 2010)
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Loan Distribution by State (Q3 2010)
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Provision and Net Charge-Offs
Provision
Net Charge-Offs / Average Loans
($ in millions)
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Net Charge-offs (Recoveries) (Q3 2010)
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Loan Delinquency (Key Sectors)
|
Category
|
Total (%)
9/30/10
|
90-Days
9/30/10
|
Total (%)
9/30/09
|
90-Days
9/30/09
|
|
Commercial
Loans |
3.08
|
2.31
|
2.26
|
1.65
|
|
Consumer
Direct |
1.54
|
0.71
|
1.69
|
0.65
|
|
Commercial
Mortgage |
2.85
|
2.29
|
1.84
|
1.31
|
|
Residential
Mortgage |
9.19
|
5.26
|
9.28
|
5.14
|
|
Construction
|
12.02
|
10.98
|
11.37
|
10.12
|
|
Total
Portfolio |
3.86
|
2.87
|
3.34
|
2.34
|
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Non-performing Loans* (September 30, 2010)
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Residential Mtg by State (September 30, 2010)
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C&I Loans by State (September 30, 2010)
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Construction Loans (September 30, 2010)
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Declining Construction Exposure
(7%)
(23%)
(19%)
($ in millions)
Construction Loans /
Total Loans
Total Loans
12.2%
10.5%
8.2%
8.6%
7.0%
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Construction Loans by Type 9/30/10
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CRE Loans by State (September 30, 2010)
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Shared National Credits (September 30, 2010)
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Investment Portfolio Detail
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Investment Portfolio (September 30, 2010)
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Fulton Financial Corporation
One Penn Square
Lancaster, PA 17602
www.fult.com
Version 2010-11-24