Attached files
| file | filename |
|---|---|
| 8-K - FULTON FINANCIAL CORP | ffc8k.htm |
April 30, 2012
1
Please remember that during today’s program, representatives of Fulton may make forward-
looking statements with respect to Fulton’s financial condition, results of operations and
business.
looking statements with respect to Fulton’s financial condition, results of operations and
business.
These forward-looking statements are not guarantees of future performance and are subject to
risks, uncertainties and other factors, some of which are beyond Fulton’s control and difficult
to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements.
risks, uncertainties and other factors, some of which are beyond Fulton’s control and difficult
to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements.
Fulton undertakes no obligation, other than required by law, to update or revise any forward-
looking statements, whether as a result of new information, future events or otherwise.
looking statements, whether as a result of new information, future events or otherwise.
In our quarterly earnings releases and other material news releases which our available
on our website at www.fult.com, we include our safe harbor statement on forward-looking
statements; we refer you to this section of those news releases and the statement is
incorporated into this presentation.
on our website at www.fult.com, we include our safe harbor statement on forward-looking
statements; we refer you to this section of those news releases and the statement is
incorporated into this presentation.
For a more complete discussion of certain risks and uncertainties affecting Fulton,
please see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” set forth in Fulton’s filings
with the Securities and Exchange Commission.
please see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” set forth in Fulton’s filings
with the Securities and Exchange Commission.
FORWARD-LOOKING STATEMENT
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TODAY’S MEETING
n Tape recorders and cameras are not permitted in
the meeting.
the meeting.
n The display of placards and/or signs is prohibited.
n Please be considerate of others -- silence or turn
off your cell phone during the meeting.
off your cell phone during the meeting.
n Any questions and comments should be directed
to the chairperson of the meeting during the
Question and Answer period. Please remember to
state your name prior to asking your question.
to the chairperson of the meeting during the
Question and Answer period. Please remember to
state your name prior to asking your question.
WELCOME AND OPENING REMARKS
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TODAY’S AGENDA
n Business Meeting
u Proposals:
= Election of directors
= Say on Pay
= Ratification of appointment of independent auditor
u Introductions
u Results of Voting
u Conclusion of Business Meeting
n Management Presentation
n Questions and Answers
CORPORATE WEBSITE: WWW.FULT.COM
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April 30, 2012
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JEFFREY G. ALBERTSON
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JOE N. BALLARD
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JOHN M. BOND, JR.
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CRAIG A. DALLY
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PATRICK J. FREER
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RUFUS A. FULTON, JR.
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GEORGE W. HODGES
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WILLEM KOOYKER
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DONALD W. LESHER, JR.
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ALBERT MORRISON III
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GARY A. STEWART
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E. PHILIP WENGER
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IN MEMORIAM: JOHN O. SHIRK
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April 30, 2012
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CHARLIE NUGENT
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JIM SHREINER
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CRAIG HILL
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CRAIG RODA
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April 30, 2012
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GERRY NAU
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JILL CARSON
ROCCO DELVECCHIO
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DAVE HANSON
BRYAN HOLMES
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CURT MYERS
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JOHN SCALDARA
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ANGELA SNYDER
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MIKE WIMER
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April 30, 2012
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REFLECTIONS ON 2011
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Significant progress and improvement
n Earnings per share growth
n Improvement in ROA
n Better asset quality
n Good core deposit growth
n Margin expansion
n Expense control
HIGHLIGHTS OF 2011
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PEER BANKS
n Associated Banc-Corp
n BancorpSouth, Inc.
n BOK Financial Corporation
n City National Corporation
n Commerce Bancshares, Inc.
n Cullen/Frost Bankers, Inc.
n First Horizon National
Corporation
Corporation
n FirstMerit Corporation
n First Niagara Financial
Group, Inc.
Group, Inc.
n International Bancshares
Corporation
Corporation
n Peoples United Financial, Inc.
n Susquehanna Bancshares, Inc.
n Synovus Financial Corp.
n TCF Financial Corporation
n UMB Financial Corporation
n Valley National Bancorp
n Webster Financial Corp.
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2011 EARNINGS GROWTH
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EPS
EPS
TN
STOCK PRICE - 12-MONTH CHANGE
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BB&T Buy
Bank of America/Merrill Lynch Underperform
Barclays Capital Overweight
Boenning & Scattergood Neutral
Credit Suisse Neutral
FBR Capital Markets Outperform
Guggenheim Partners Buy
Janney Montgomery Scott Buy
Jefferies and Company Hold
Keefe, Bruyette & Woods Market Perform
Raymond James Market Perform
Sterne Agee Neutral
Stifel, Nicolaus & Co. Buy
Sandler O’Neill Hold
Standard & Poor’s Hold
SunTrust Robinson Humphrey Buy
ANALYST RECOMMENDATIONS
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RETURN ON AVERAGE ASSETS
2011 CREDIT QUALITY IMPROVEMENT
n Net charge-offs increased slightly
n Non-performing assets decreased
n Provision for credit losses decreased
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AVERAGE CORE DEPOSIT GROWTH
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AVERAGE LOAN GROWTH
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NET INTEREST MARGIN
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n Employees completed 334 Lean initiatives
n Result: $4.5 million in savings to
our company
our company
n We will continue to benefit in 2012
and beyond
and beyond
2011 LEAN IMPROVEMENT RESULTS
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EFFICIENCY RATIO
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MERGER OF NEW JERSEY BANKS
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n 2011 Greenwich Excellence Awards in
Middle Market Banking
Middle Market Banking
n Fulton Bank, N.A. won in 2 categories
§ Overall Satisfaction in Banking
§ Treasury Management
n National and Regional winner
n Criteria: $10 - $500 million in sales
n 11,500 business interviews
GREENWICH ASSOCIATES
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n Care, Listen, Understand, Deliver
n 600 Experience Champions
and Ambassadors
and Ambassadors
n Learning sessions helped
employee connect with the
“bigger picture”
employee connect with the
“bigger picture”
2011 CUSTOMER EXPERIENCE
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Why do we pay so much attention to Our Promise?
n Satisfied customers will increase the business
they bring to us
they bring to us
n More households and more products
Customer Experience
+ strong sales efforts
RESULTS!
CUSTOMER EXPERIENCE
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Retail households
Year-end 2010 households: 243,125
Year-end 2011 households: 243,292
Commercial households
Year-end 2010 households: 64,832
Year-end 2011 households: 67,382
Total household increase: 2,717
2011 SALES RESULTS
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Please remember that during today’s program, representatives of Fulton may make forward-
looking statements with respect to Fulton’s financial condition, results of operations and
business.
looking statements with respect to Fulton’s financial condition, results of operations and
business.
These forward-looking statements are not guarantees of future performance and are subject to
risks, uncertainties and other factors, some of which are beyond Fulton’s control and difficult
to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements.
risks, uncertainties and other factors, some of which are beyond Fulton’s control and difficult
to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements.
Fulton undertakes no obligation, other than required by law, to update or revise any forward-
looking statements, whether as a result of new information, future events or otherwise.
looking statements, whether as a result of new information, future events or otherwise.
In our quarterly earnings releases and other material news releases which our available
on our website at www.fult.com, we include our safe harbor statement on forward-looking
statements; we refer you to this section of those news releases and the statement is
incorporated into this presentation.
on our website at www.fult.com, we include our safe harbor statement on forward-looking
statements; we refer you to this section of those news releases and the statement is
incorporated into this presentation.
For a more complete discussion of certain risks and uncertainties affecting Fulton,
please see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” set forth in Fulton’s filings
with the Securities and Exchange Commission.
please see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” set forth in Fulton’s filings
with the Securities and Exchange Commission.
FORWARD-LOOKING STATEMENT
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|
|
Fulton Financial
12/31/11
|
Basel III (1)
|
|
Total Risk-Based Capital Ratio
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15.20%
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10.50%
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Tier 1 Risk-Based Capital Ratio(2)
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12.70%
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8.50%
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Leverage Capital Ratio
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10.30%
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TBD
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Common Equity Ratio (3)
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11.30%
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7.00%
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Tangible Common Equity Ratio(4)
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9.15%
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NA
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CAPITAL
(1) Fully phased-in requirements, with 2.50% conservation buffer; FFC has approximately
$300 million of capital in excess of these Basel III requirements.
$300 million of capital in excess of these Basel III requirements.
(2) 12/31/11 ratio incudes existing trust preferred securities.
(3) Tier 1 common equity to risk-weighted assets.
(4) GAAP tangible equity to total tangible assets.
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POTENTIAL USES OF CAPITAL
n Dividends to shareholders
n Repurchase stock
n Strategic acquisitions
n Support organic growth
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n Increased 4 out of last 5 quarters
n Dividend yield: approximately 2.7%
n Evaluated quarterly by the FFC board
n Will look to increase it further as our
earnings and the economy improve
earnings and the economy improve
DIVIDENDS
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n Limited opportunity in 2011
n Do not foresee much change in 2012
n Bank consolidation may increase -
based on economy and new capital
requirements
based on economy and new capital
requirements
ACQUISITIONS CLIMATE
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The Dodd-Frank Act
n The most comprehensive reform of the
financial system in decades (1,000 pages)
financial system in decades (1,000 pages)
n Enacted following the recent national
financial crisis
financial crisis
n Increased compliance requirements
in many areas: retail, commercial, mortgage
in many areas: retail, commercial, mortgage
n Makes managing expenses more challenge for
our industry
our industry
THE REGULATORY ENVIRONMENT
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n Upgrades our core data processing system
n Enables us to more directly address
customers’ financial needs
customers’ financial needs
n Reduces back-office tasks
and paperwork
and paperwork
n Provides a more effective
sales tool
sales tool
THE STAR PROJECT
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n Continue to reduce our credit costs
n Loan growth
n Provide a superior customer experience
n Leverage opportunities to increase our
market share
market share
IMPROVE OUR RETURN ON ASSETS
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New construction
n Waugh Chapel (MD)
n Seven Oaks (MD)
n Exton (PA)
n Warrington (PA)
n Madison (NJ)
n Manahawkin (NJ)
Relocations/upgrades
n Oxford (PA)
n McGovern Avenue (PA)
n Branmar (DE)
n Newport News (VA)
n Williamsport (PA)
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2012 BRANCH PLANS
NEW BRANCH PROTOTYPE
We will increase shareholder value and enrich
the communities we serve by creating financial
success together with our customers and career
success together with our employees.
the communities we serve by creating financial
success together with our customers and career
success together with our employees.
OUR ULTIMATE GOAL
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A SMOOTH TRANSITION
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QUESTIONS AND ANSWERS
Please remember to:
n Use the microphones in front of room
n Ask only one question to give other
shareholders a chance
shareholders a chance
n State your name before you ask your
question
question
April 30, 2012
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