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8-K - FORM 8-K - SUSQUEHANNA BANCSHARES INCd481330d8k.htm
Susquehanna Bancshares, Inc.
Investor Presentation
1
st
Quarter 2013
Exhibit 99.1


Forward-Looking Statements
Forward-Looking Statements
2
During the course of this presentation, we may make projections and other
forward-looking statements regarding priorities and strategic objectives
of
Susquehanna Bancshares, Inc., as well as projected capital ratios, efficiency
ratios, net income and earnings. We encourage investors to understand
forward-looking statements to be strategic objectives rather than absolute
targets of future performance.   We wish to caution you that these forward-
looking statements may differ materially from actual results due
to a number of
risks and uncertainties.  For a more detailed description of the
factors that may
affect Susquehannas operating results, we refer you to our filings with the
Securities & Exchange Commission, including our annual report on
Form 10-K
for the year ended December 31, 2011 and Form 10-Q for the quarter ended
September 30, 2012. Susquehanna assumes no obligation to update the
forward-looking statements made during this presentation.
For more information, please visit our Web site at:
www.susquehanna.net


Who is Susquehanna?
Who is Susquehanna?
Corporate Overview
Super-community bank headquartered in 
Lititz, PA
261 banking offices concentrated in Central
PA, Western MD, and Philadelphia and
Baltimore MSAs
35
largest
U.S.
commercial
bank
by
assets
Experienced management team with extensive
market knowledge
Franchise is a diversified mix of consumer and
business customers, products and revenue
sources
Non-bank affiliates offering products and
services in:
Wealth management
Insurance brokerage and employee benefits
Commercial finance
Vehicle leasing
Selected Data as of 12/31/2012 
Assets:
$18.0 billion
Deposits:
$12.6 billion
Loans & Leases:
$12.9 billion
Assets under management
$7.6 billion
and administration:
Market Cap:
>$2.1 billion*
Average daily volume (3 months)
>900 thousand shares
Institutional ownership
> 70%                   
Dividend yield
2.67%**
* Based on closing price on February 1, 2013
**Based on 4Q12 dividend of $.07 per share
3
th


Uniquely Positioned
Uniquely Positioned
Source: SNL Financial
Note: Regulatory branch and deposit data as of June 30, 2012; banks and thrifts with deposits in counties SUSQ operates in PA/NJ/MD/WV
Traditional branches only, as defined by SNL
4
Rank
Institution
Branch Count
Total Deposits
in Market
($000)
Total Market
Share (%)
1
Wells Fargo & Co.
373
41,021,142
15.3%
2
PNC Financial Services Group Inc.
357
27,078,388
10.1%
3
Bank of America Corp.
224
25,599,340
9.5%
4
M&T Bank Corp.
292
23,873,751
8.9%
5
Toronto-Dominion Bank
164
19,136,622
7.1%
6
Royal Bank of Scotland Group Plc
177
17,058,543
6.3%
7
Susquehanna Bancshares Inc.
262
12,569,634
4.7%
8
Fulton Financial Corp.
187
9,428,543
3.5%
9
Banco Santander SA
176
8,654,240
3.2%
10
National Penn Bancshares Inc.
110
5,622,573
2.1%
11
BB&T Corp.
68
4,051,430
1.5%
12
Beneficial Mutual Bancorp Inc. (MHC)
61
3,645,268
1.4%
13
First Niagara Financial Group Inc.
63
2,684,122
1.0%
14
Metro Bancorp Inc.
33
2,106,159
0.8%
15
Citigroup Inc.
26
2,015,670
0.8%
Total
(1-15)
2,573
204,545,425
  
76.1%
Total
(1-248)
3,970
268,686,154
  
100.0%
Deposit Market Share: Counties of Operation
Increased share in 14 out of 22
MSAs from 2011 to 2012
Top 3 market share in 12
counties
Top 5 market share in half the
MSAs where we do business
Largest locally based
community bank
Significant opportunities exist
to gain market share


2012 in Review: 
Delivering on our Commitments
2012 in Review: 
Delivering on our Commitments
Continue strong progress
in improving credit quality
Complete and successfully
integrate Tower acquisition
$30M cost-save estimate exceeded
Grow loans, deposits
and revenue
Organic loan growth of 4.5%
Organic core deposit growth of 9.8%
Core revenue growth of 31% to $758M
Increase profitability and
shareholder dividends
1
Regular cash dividends of $0.21 per share declared in 2012 excludes additional $0.07
accelerated first quarter 2013 dividend declared and paid in December 2012.
2
Non-GAAP based financial measure.  Please refer to the calculations and management’s
reasons
for
using
this
measure
on
the
slide
titled
“Non-GAAP
Reconciliation”
at
the
conclusion of this presentation.
Performance
Highlights
2012
2011
EPS
$
0.77
$
0.40
Cash Dividends
$
0.21
$
0.08
ROAA
0.81
%
0.38
%
ROATE
12.03
%
6.01
%
Net Interest Margin
4.01
%
3.60
%
Efficiency Ratio
60.37
%
66.86
%
NCOs/Average Loans
0.55
%
1.16
%
NPAs/Loans & OREO
0.96
%
1.88
%
5
1
2
2


4
th
Quarter 2012 Highlights
4
th
Quarter 2012 Highlights
GAAP EPS of $0.23
Increase of 92% from $0.12 in 4Q11
Steady organic loan growth
Commercial loans increased 4.8%
Total loans and leases grew 1.7%
Strong core deposit growth
Core deposits grew 2.1%
Increase in net interest margin
Improvement of 14 basis points to 4.06%
Continued improvement in credit quality metrics
NPAs declined to 0.96% of loans, leases and foreclosed real estate
Strong coverage ratio with allowance representing 188% of nonaccrual loans
and leases
6


Building on Momentum
Building on Momentum
Regional structure that empowers local community bankers with
the authority, incentives and products they need to drive loan
growth, particularly in consumer lending and small business and
middle-market banking
Peer leading net interest margin to be defended by further
improving funding costs, including continued core deposit
growth, and ongoing active balance sheet management
Growing fees as a percentage of total revenues by investing in
non-bank businesses, building full client relationships and
maximizing significant untapped cross-sell potential
Committed to continuous delivery model improvement, after
streamlining expense structure and improving efficiency in 2012
Strong capital position and focus on growing returns enhances
ability to execute on organic and strategic growth opportunities
7
1.
Take share, drive
organic loan growth
2.
Defend Margin
3.
Grow fee revenue
4.
Maintain efficiency
5.
Accelerate capital
generation and returns
Opportunity
Susquehanna


Core Deposit Growth
Commercial and Consumer
Loan Growth
Expand Fee Income as a % of
Total Revenue
Differentiated Customer
Experience
Elevate Employee Engagement
Focus for 2013
Focus for 2013
8
Technology and mobile delivery
Retail and commercial products
enhancements
Enhance C&I talent and capacity
Increase cross-sell
Talent and leadership
development
Process review and
improvements
Objectives
Selected Initiatives


Loan Growth
Loan Growth
9
$8.8 Billion
$12.9 Billion
Strong Loan Growth Momentum
Organic loan growth in 2012 of 4.5%
Total loan and lease originations were up 31% year over year in 4Q12
Commercial loans increased 4.8% in 4Q12
Commercial loan originations were up 51% year over year in 4Q12
Total Loans 12/31/2007
Total Loans 12/31/2012
Consumer,
6%
Leases, 7%
Commercial,
financial and
agricultural,
18%
Real estate -
construction
7%
Real estate
secured -
commercial,
31%
Real estate
secured -
residential,
31%
Consumer,
5%
Leases, 5%
Commercial,
financial and
agricultural,
20%
Real estate –
construction
15%
Real estate
secured -
commercial,
30%
Real estate
secured -
residential,
25%
Organic Loan CAGR:  
5.4%


Asset Quality Continues to Improve
Asset Quality Continues to Improve
10
1.42
0.50
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
Net Charge-Offs / Average Loans & Leases (%)
2.49
0.96
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
NPAs / Loans & leases + foreclosed real estate (%)
90.74
188.22
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
ALLL / Nonaccrual loans & leases (%)


Positioned For Further Growth
Positioned For Further Growth
11
Pennsylvania Market
Delaware Valley Market
Maryland Market
Includes Baltimore and four of the
nation’s 45 most-affluent counties
including no. 5, Howard County.
Growth opportunities fueled by world-
leading education, health care and
research institutions, as well as major
federal agencies and contractors.
The
16
counties
comprising
the
company’s
Pennsylvania
Market,
the
10
counties
comprising
the
company’s
Delaware
Valley
Market
and
the
13
counties
comprising
the
company’s
Maryland
Market
are
listed
in
the
“Additional
Materials”
slides
at
the
conclusion
of
this
presentation
Foundation for growth with stable
commercial and retail banking base
providing ample deposits.
Home to distribution hubs for global
retailers, manufacturers and
distributors serving Northeast and
Mid-Atlantic markets.
Includes Philadelphia and the
state’s four most-affluent
counties.
Growth opportunities fueled by
world-leading education, health
care and research institutions.


Market Opportunity
Market Opportunity
12
HOME MARKET:
METRO GROWTH MARKETS:
Central PA
5
Philadelphia
6
Baltimore
7
2007
2012
2012
2012
Total Deposits
$55.5 B
$65.3 B
18% Growth
$128.5 B
$63.0 B
in
Current
Market
SUSQ Deposits
$2.2 B
$5.9 B
170% Growth
$3.0 B
$1.2 B
Rank/Market Share
#9 / 3.9%
#5 / 9.0%
#8 / 2.4%
#7 / 1.9%
Primary Competitors
PNC, M&T, Fulton
TD, RBS, PNC
M&T, PNC, BB&T
Median
Household
Income
$50,976
$58,051
$62,687
Estimated Household Income
19.7%
23.1%
22.8%
Growth
from
2011-2016
Population
3.6 M
3.7 M
3.5% Growth
5.3 M
2.7 M
Estimated Population
3.1%
1.8%
2.3%
Growth
from
2011-2016
# of Businesses with
135,105
222,902
102,402
< $10M
in
Sales
Source: FDIC Deposit Market Share Report
2
Source: SNL, ESRI.  Household Income data reported for Philadelphia and Baltimore metro markets represents Philadelphia-Camden-Wilmington and Baltimore-Towson MSAs, respectively
3
Source: SNL, ESRI
4
Source: The Nielsen Company
16
counties
comprising
Susquehanna’s
Pennsylvania
Market.
Please
refer
to
the
market
definitions
set
forth
in
the
“Additional
Materials”
slides
at
the
conclusion
of
this
presentation.
6
Philadelphia Metro = Bucks, Burlington, Camden, Chester, Delaware, Gloucester, Montgomery and Philadelphia counties
7
Baltimore Metro = Anne Arundel, Baltimore, Baltimore (City), Carroll, Harford and Howard counties
1
2
2
3
4


Defending Net Interest Margin
Defending Net Interest Margin
13
Active Balance Sheet Management
Focus on core deposit growth
FHLB debt prepayment
Trust preferred and sub debt redemption
Countering the Headwinds
Increase low cost core deposits
$400+ million in high rate CD’s maturing in 2013
Additional opportunities to reduce funding costs
may still exist
*  Peer company information is  per SNL Financial.  Identification of peer companies is included in the “Additional Materials” at the conclusion of this presentation. 


Core Deposit Growth
Core Deposit Growth
14
$8.9 Billion
$12.6 Billion
Total Deposits 12/31/2007
Total Deposits 12/31/2012
Strong Core Deposit Growth Momentum
Organic deposit growth in 2012 of 2.1%
Organic core deposit growth in 2012 of 9.8%
Demand
Deposits,
14%
Interest-
bearing
demand,
32%
Savings, 8%
Time of
$100K or
more, 15%
Time <
$100K, 31%
Demand
Deposits,
16%
Interest-
bearing
demand,
46%
Savings, 8%
Time of
$100K or
more, 12%
Time <
$100K, 18%
Organic Core Deposit CAGR:  
7.3%


Growing Fee Revenue
Growing Fee Revenue
15
($ in millions)
2012
2011
$
%
Service charges on deposit accounts
34.4
$    
31.7
$      
2.7
$      
8.5%
Asset management fees
29.1
       
28.2
         
0.9
        
3.5%
Net gain on sale of loans and leases
20.2
       
12.7
         
7.5
        
58.8%
Commissions on property and casualty insurance sales
15.9
       
14.0
         
1.9
        
13.1%
Vehicle origination and servicing fees
10.4
       
7.9
           
2.5
        
31.8%
Income from fiduciary-related activities
10.3
       
7.3
           
3.0
        
40.0%
Commissions on brokerage, life insurance and annuity sales
8.3
         
8.2
           
0.1
        
1.2%
Noninterest Income ($000)
Growth Over 2011


Efficiency Focus Benefits
Core Performance
Efficiency Focus Benefits
Core Performance
16
*Efficiency
ratio
excludes
net
realized
gain
on
acquisition,
merger
related
expenses
and
loss
on
extinguishment
of
debt.
Please
refer
to
the
calculations
on
the
slides
titled
“Non-GAAP
Reconciliation ”
at the conclusion of this presentation.
($000)
66.34%
61.93%
60.21%
58.98%
60.96%
$75,000
$95,000
$115,000
$135,000
$155,000
$175,000
$195,000
$215,000
4Q11
1Q12
2Q12
3Q12
4Q12
Total Revenue
Total Noninterest Expense
Efficiency Ratio
Delivered on commitment to lower efficiency ratio
Achieved desired cost savings of $58 million from acquisitions
and core Susquehanna operations
Opportunity exists to optimize delivery model, including planned
investments in technology and web/mobile banking


Capital Generation and Returns
Capital Generation and Returns
Capital ratios remain strong
Support continued organic growth
Position for changing regulatory landscape
Increase quarterly cash dividends to shareholders
Consider strategic M&A opportunities
17
Tangible
Common
Equity
1
Tier 1
Common /
RWA
Tier 1
Leverage
Tier 1
Risk-Based
Total
Risk-Based
Dec. 31, 2012
7.94%
9.94%
8.98%
11.08%
12.63%
Management
Minimum
Target
7.50%
8.00%
6.00%
9.50%
11.50%
1
The tangible common equity ratio is a non-GAAP based financial measure.  Please refer to the calculations and management’s reasons for using this measure on the slide titled   
“Non-GAAP
Reconciliation”
at
the
conclusion
of
this
presentation.
Capital generation has benefited from leading ROATE and 30%
dividend payout ratio
Growing capital strength ensures ability to execute on capital
allocation priorities


Earnings Power Drives Returns
Earnings Power Drives Returns
18
Earnings and Dividends
ROATE
1
ROAA
1
Return on average tangible equity is a non-GAAP based financial measure.  Please refer to the calculations and management’s reasons for using this measure on the slide titled “Non-
GAAP Reconciliation”
at the conclusion of this presentation.
Diluted EPS
(GAAP)
Accelerated
1Q13
Dividend
30% Payout
Ratio
Dividends
Declared


Building on Momentum
Building on Momentum
Regional structure that empowers local community bankers with
the authority, incentives and products they need to drive loan
growth, particularly in consumer lending and small business and
middle-market banking
Peer leading net interest margin to be defended by further
improving funding costs, including continued core deposit
growth, and ongoing active balance sheet management
Growing fees as a percentage of total revenues by investing in
non-bank businesses, building full client relationships and
maximizing significant untapped cross-sell potential
Committed to continuous delivery model improvement, after
streamlining expense structure and improving efficiency in 2012
Strong capital position and focus on growing returns enhances
ability to execute on organic and strategic growth opportunities
19
1.
Take share, drive
organic loan growth
2.
Defend Margin
3.
Grow fee revenue
4.
Maintain efficiency
5.
Accelerate capital
generation and returns
Opportunity
Susquehanna


Additional Materials


Executive Leadership Team
Executive Leadership Team
21


Critical Mass in Attractive Markets
Critical Mass in Attractive Markets
1  
The 16 counties comprising the company’s Pennsylvania Market, the 10 counties comprising the company’s Delaware Valley Market and the 13 counties
comprising
the
company’s
Maryland
Market
are
listed
in
the
“Additional
Materials”
slides
at
the
conclusion
of
this
presentation
2
Company data as of 9/30/12.  Percentages based on internal company  commercial and retail market allocations.  Excludes leases and tax free loans and brokered and inter-company deposits.  
3
FDIC June 30 deposit market share data as reported by SNL Financial for the counties comprising each of the company’s three markets.
4
U.S. Census Bureau’s American Community Survey of median household income by county
22
Susquehanna Bank Market
Pennsylvania
Delaware
Valley
Maryland
Branches
124
71
66
Loans
as
%
of
total
45%
27%
28%
Deposits
as
%
of
total
44%
30%
26%
Deposit
market
share
(rank)
9.0%
(5
)
2.7%
(8
)
4.5%
(6
)
7.6%
(6
)
1.3%
(9
)
3.8%
(6
)
3.9%
(9
)
1.2%
(12
)
4.2%
(7
)
Delaware Valley Market
Maryland Market
2012
2011
2007
Foundation for growth with stable
commercial and retail banking base
providing ample deposits.
Home to distribution hubs for global
retailers, manufacturers and distributors
serving Northeast and Mid-Atlantic
markets.
Pennsylvania Market
Includes Philadelphia and the state’s four
most-affluent counties.
4
Growth opportunities fueled by world-leading
education, health care and research
institutions.
Includes Baltimore and four of the nation’s
45 most-affluent counties including no. 5,
Howard County.
4
Growth opportunities fueled by world-
leading education, health care and research
institutions, as well as major federal
agencies and contractors.
th
3
2
2
th
th
th
th
th
th
th
1
th


4th Quarter 2012 Financial Highlights
4th Quarter 2012 Financial Highlights
(Dollars in thousands, except earning per share data)
12/31/2012
9/30/2012
12/31/2011
Balance Sheet:
Loans and Leases
12,894,741
12,675,607
10,447,930
Deposits
12,580,046
12,725,379
10,290,472
Income Statement:
Net interest income
155,304
$      
149,142
$      
115,201
$      
Pre-tax pre-provision income
73,799
$        
69,893
$        
24,153
$        
Provision for loan and lease losses
13,000
$        
16,000
$        
22,000
$        
GAAP Net Income
43,174
$        
36,732
$        
19,129
$        
GAAP EPS
0.23
$            
0.20
$            
0.12
$            
Quarterly Performance Highlights
23


Quarterly Loan and Lease
Originations
Quarterly Loan and Lease
Originations
Average Balance*               
($ in Millions)
   Balance
Originations
  Balance
Originations
  Balance
Originations
  Balance
Originations
  Balance
Originations
Commercial
1,587
$      
150
$              
1,708
$      
115
$              
1,847
$      
206
$              
1,870
$      
167
$              
1,898
$      
226
$              
Real Estate - Const & Land
812
           
92
                    
863
           
95
                    
936
           
74
                    
899
           
101
                
859
           
92
                    
Real Estate - 1-4 Family Res
1,818
        
77
                    
2,033
        
68
                    
2,262
        
101
                
2,279
        
86
                    
2,274
        
72
                    
Real Estate - Commercial
3,348
        
132
                
3,872
        
191
                
4,350
        
110
                
4,315
        
121
                
4,276
        
136
                
Real Estate - HELOC
908
           
65
                    
1,013
        
52
                    
1,128
        
88
                    
1,169
        
93
                    
1,209
        
89
                    
Tax-Free
330
           
7
                      
346
           
53
                    
379
           
22
                    
390
           
55
                    
430
           
4
                      
Consumer Loans
709
           
97
                    
736
           
96
                    
764
           
116
                
794
           
110
                
810
           
104
                
Commercial Leases
282
           
82
                    
287
           
76
                    
306
           
79
                    
299
           
81
                    
289
           
85
                    
Consumer Leases
370
           
43
                    
367
           
43
                    
376
           
65
                    
424
           
86
                    
512
           
167
                
VIE
193
           
-
187
           
-
                 
180
           
-
                 
173
           
-
                 
168
           
-
                 
Total
10,357
$    
745
$              
11,412
$    
789
$              
12,528
$    
862
$              
12,612
$    
900
$              
12,725
$    
975
$              
4Q12
3Q12
2Q12
1Q12
4Q11
24
*By collateral type


Loan Mix & Yield
Loan Mix & Yield
$ in millions
Avg Bal QTR*
INT % QTR
Commercial
$  1,587
5.31%
$  1,708
5.24%
$  1,847
5.43%
$  1,870
5.31%
$  1,898
5.35%
Real Estate - Const & Land
         812
4.95%
        863
5.60%
         936
5.66%
         899
5.64%
         859
5.90%
Real Estate - 1-4 Family Res
     1,818
5.22%
     2,033
5.27%
     2,262
5.26%
     2,279
5.03%
     2,274
4.97%
Real Estate - Commercial
     3,348
5.45%
     3,872
5.46%
     4,350
5.78%
     4,315
5.60%
     4,276
5.51%
Real Estate - HELOC
         908
3.83%
     1,013
3.98%
     1,128
3.81%
     1,169
3.82%
     1,209
3.74%
Tax-Free
         330
5.11%
        346
5.60%
         379
5.45%
         390
5.40%
         430
5.47%
Consumer Loans
         709
5.48%
        736
5.33%
         764
5.21%
         794
5.02%
         810
4.95%
Commercial Leases
         282
7.90%
        287
7.98%
         306
7.72%
         299
7.48%
         289
7.50%
Consumer Leases
         370
4.75%
        367
4.73%
         376
4.60%
         424
4.30%
         512
4.11%
VIE
         193
4.54%
        187
4.47%
         180
4.46%
         173
4.42%
         168
4.39%
Total Loans
$10,357
5.22%
$11,412
5.29%
$12,528
5.33%
$12,612
5.23%
$12,725
5.18%
4Q12
3Q12
2Q12
1Q12
4Q11
25
*By collateral type


CRE and Construction Composition
CRE and Construction Composition
26
At December 31, 2012
Office, 17%
Retail, 15%
Other, 13%
Residential, 10%
Service, 8%
Land, 7%
Warehouse, 6%
Hotels -
Motels, 6%
Multi-Family, 5%
Mixed Use, 5%
Commercial Construction,
5%
Industrial/Manufacturing, 2%
Recreational, 1%


Asset Quality
($ in Millions)
Asset Quality
($ in Millions)
($ in million)
4Q11
1Q12
2Q12
3Q12
4Q12
NPL's Beginning of Period
160.1
$  
156.5
$  
133.5
$
127.3
$
118.4
$
New NonAccruals
43.8
       
22.3
       
34.5
    
17.3
    
19.0
    
Cure/Exits/Other
(10.1)
     
(28.8)
      
(16.8)
   
(6.2)
     
(21.5)
   
Gross Charge-Offs
(25.6)
     
(11.0)
      
(17.3)
   
(15.8)
   
(15.4)
   
Transfer to OREO
(11.7)
     
(5.5)
        
(6.6)
     
(4.2)
     
(2.7)
     
NPL's End of Period
156.5
$  
133.5
$  
127.3
$
118.4
$
97.8
$  
27
$156
$133
$127
$118
$98
$75
$85
$95
$105
$115
$125
$135
$145
$155
$165
4Q11
1Q12
2Q12
3Q12
4Q12
Non Accruals
$73
$72
$67
$57
$68
$30
$35
$40
$45
$50
$55
$60
$65
$70
$75
$80
4Q11
1Q12
2Q12
3Q12
4Q12
TDRs


Asset Quality
($ in Millions)
Asset Quality
($ in Millions)
28
*Legacy Susquehanna
$300
$313
$275
$285
$259
$200
$220
$240
$260
$280
$300
$320
4Q11
1Q12
2Q12
3Q12
4Q12
OAEM*
$383
$346
$365
$334
$339
$250
$275
$300
$325
$350
$375
$400
4Q11
1Q12
2Q12
3Q12
4Q12
Substandard*
$59
$65
$36
$63
$80
$30
$40
$50
$60
$70
$80
$90
4Q11
1Q12
2Q12
3Q12
4Q12
Past Due 30-89 days
$10
$10
$11
$8
$8
$4
$5
$6
$7
$8
$9
$10
$11
$12
4Q11
1Q12
2Q12
3Q12
4Q12
Past due 90 days or more


Investment Securities
Investment Securities
$ in millions
EOP Balance
QTR Yield
Total Investment Securities
$2,423
$2,757
$2,866
$2,908
$2,730
Duration (years)
3.5
3.6
       
3.6
       
3.6
      
3.6
       
Yield
3.02%
3.09%
2.92%
2.69%
2.59%
Unrealized Gain/(Loss)
$32.3
$30.8
$40.8
$61.9
$57.1
4Q12
3Q12
2Q12
4Q11
1Q12
29


Deposit Mix & Cost by Product
Deposit Mix & Cost by Product
$ in millions
Avg Bal QTR
INT % QTR
Demand
$1,528
0.00%
$1,688
0.00%
1,922
$  
0.00%
1,938
$  
0.00%
1,945
$  
0.00%
Interest Bearing Demand
   4,394
0.49%
   4,990
0.46%
5,480
0.39%
5,537
0.35%
5,803
0.33%
Savings
      876
0.13%
      930
0.14%
1,005
0.13%
1,003
0.11%
1,019
0.11%
Certificates of Deposits
   3,503
1.29%
   3,747
1.29%
4,065
1.13%
4,111
1.17%
3,835
1.21%
Total Interest-Bearing Deposits
$8,773
0.77%
$9,667
0.75%
10,550
$
0.65%
10,651
$
0.64%
10,657
$
0.62%
Core Deposits/Total
Loans(excluding VIE)/Deposits
2Q12
67.4%
99.0%
1Q12
98.7%
67.0%
98.9%
4Q12
69.6%
99.6%
3Q12
67.3%
98.8%
4Q11
66.0%
30


Borrowing Mix & Cost
Borrowing Mix & Cost
31
$ in millions
Avg Bal QTR
INT % QTR (excludes SWAP expense)
Short-Term Borrowings
$   589
0.30%
$   642
0.27%
$   726
0.29%
$   749
0.28%
$   811
0.26%
FHLB Advances
1,163
2.44%
985
0.21%
1,082
0.33%
1,073
0.35%
1,167
0.36%
Long Term Debt
666
4.93%
674
5.11%
686
4.93%
727
4.85%
561
1.19%
Total Borrowings
$2,418
2.60%
$2,301
1.66%
$2,494
1.58%
$2,549
1.62%
$2,539
0.51%
Off Balance Sheet Swap Impact
675
0.75%
675
0.74%
675
0.70%
675
0.69%
675
0.71%
Total Borrowing Cost
Avg Borrowings / Avg Total
Assets
2.40%
2Q12
2.28%
14.0%
1Q12
15.8%
14.1%
4Q11
3.35%
4Q12
1.22%
14.1%
3Q12
2.31%
14.1%


Quarterly Fee Revenue
Quarterly Fee Revenue
32
*Excludes Net realized gain on acquisitions
December 31,
March 31,
June 30,
September 30,
December 31,
2011
2012
2012
2012
2012
Service charges on deposit accounts
7,689
$                  
7,674
$       
8,583
$    
9,013
$                   
9,158
$                  
Vehicle origination and servicing fees
1,984
1,924
2,226
2,470
3,746
Asset management fees
6,821
7,073
7,359
7,366
7,340
Income from fiduciary-related activities
1,827
2,622
2,539
2,485
2,619
Commissions on brokerage, life insurance and annuity sales
1,697
1,907
2,399
2,072
1,923
Commissions on property and casualty insurance sales
3,638
5,058
3,930
3,158
3,749
Other comissions and fees
4,147
4,643
4,800
5,387
6,680
Income from bank-owned life insurance
1,539
1,472
1,631
1,726
1,603
Net gain on sale of loans and leases
3,324
3,750
4,396
5,938
6,160
Net realized gain (loss) on sales of securities
(706)
385
1,361
31
(103)
Net impairment losses recognized in earnings
(304)
(144)
-
-
(97)
Other 
548
3,151
587
4,015
994
Total*
32,204
$              
39,515
$     
39,811
$  
43,661
$                 
43,772
$              
Noninterest Income ($000)


Earnings Drivers
Earnings Drivers
($000)
4Q11
1Q12
2Q12
3Q12
4Q12
Avg. interest-earning assets
$13,128,969
$14,065,583
$15,332,806
$15,537,037
$15,604,029
Net interest margin (FTE)
3.59%
3.94%
4.10%
3.92%
4.06%
Net interest income
$115,201
$134,123
$152,670
$149,142
$155,304
Noninterest income
32,204*
39,515
39,811
43,661
43,772
Total revenue
147,405
173,638
192,481
192,803
199,076
Noninterest expense
100,164*
108,876*
118,157*
115,959*
123,814*
Pre-tax, pre-provision income
47,241*
64,762*
74,324*
76,844*
75,262*
Provision for loan losses
22,000
19,000
16,000
16,000
13,000
Pre-tax income
$25,241*
$45,762*
$58,324*
$60,844*
$62,262*
* Core: Excludes merger-related expenses, net gain on acquisition and loss on extinguishment of debt
2013
Financial
Targets
FTE margin
3.90%
Loan growth
5.00%
Deposit growth
6.00%
Non-interest income growth
8.00%
Non-interest expense growth
-2.00%
Tax rate
32.00%
33
reported numbers and not core numbers.
The growth percentages included in these financial targets are based upon 2012
Note:


Susquehanna Bank Markets
Susquehanna Bank Markets
34
Pennsylvania
Market:
Adams, PA
Berks, PA
Centre, PA
Cumberland, PA
Dauphin, PA
Lancaster, PA
Lebanon, PA
Lehigh, PA
Luzerne, PA
Lycoming, PA
Northampton, PA
Northumberland, PA
Schuylkill, PA
Snyder, PA
Union, PA
York, PA
Maryland
Market:
Allegany, MD
Anne Arundel, MD
Baltimore, MD
Bedford, PA
Berkley, WV
Carroll, MD
Franklin, PA
Fulton, PA
Garrett, MD
Harford, MD
Howard, MD
Washington, MD
Worcester, MD
Delaware
Valley
Market:
Atlantic, NJ
Bucks, PA
Burlington, NJ
Camden, NJ
Chester, PA
Cumberland, NJ
Delaware, PA
Gloucester, NJ
Montgomery, PA
Philadelphia, PA
Baltimore City, MD


Peer Companies
Peer Companies
35
Associated Banc-Corp
BancorpSouth, Inc.
City National Corporation
Commerce Bancshares, Inc.
Cullen/Frost Bankers, Inc.
F.N.B. Corporation
First Horizon National Corporation
First Niagara Financial Group, Inc.
FirstMerit Corporation
Fulton Financial Corporation
Hancock Holding Company
IBERIABANK Corporation
People's United Financial, Inc.
Prosperity Bancshares, Inc.
Signature Bank
TCF Financial Corporation
UMB Financial Corporation
Valley National Bancorp
Webster Financial Corporation
Wintrust Financial Corporation


Non-GAAP Reconciliation
(Dollars and share data in thousands)
Non-GAAP Reconciliation
(Dollars and share data in thousands)
36
The efficiency ratio is a non-GAAP based financial measure.  Management excludes merger-related expenses and certain other selected items when calculating this ratio,
which is used to measure the relationship of operating expenses to revenues.
The tangible common ratio is a non-GAAP based financial measure using non-GAAP based amounts.   The most directly comparable GAAP-based measure is the ratio of
common shareholders’
equity to total assets.  In order to calculate tangible common shareholders equity and assets, our management subtracts the intangible assets from
both the common shareholders’
equity and total assets.  Tangible common equity is then divided by the tangible assets to arrive at the ratio.  Management uses the ratio to
assess the strength of our capital position.
4Q12
3Q12
2Q12
1Q12
4Q11
Other expense
125,277
$     
122,910
$     
121,475
$     
120,355
$     
162,395
$     
Less: Merger related expenses
(1,054)
(1,500)
(3,318)
(11,479)
(12,211)
   Loss on extinguishment of debt
(409)
(5,451)
0
0
(50,020)
Noninterest operating expense (numerator)
123,814
$     
115,959
$     
118,157
$     
108,876
$     
100,164
$     
Taxable-equivalent net interest income
159,332
$     
152,948
$     
156,416
137,837
118,780
Other income
43,772
43,661
39,811
39,515
71,347
Less: Net realized gain on acquisition
0
0
0
0
(39,143)
Denominator
203,104
$     
196,609
$     
196,227
$     
177,352
$     
150,984
$     
Efficiency ratio
60.96%
58.98%
60.21%
61.39%
66.34%
4Q12
3Q12
2Q12
1Q12
4Q11
End of period balance sheet data
Shareholders' equity
2,595,909
$  
2,584,682
$       
2,544,730
$       
2,512,584
$  
2,189,628
$  
(1,263,563)
(1,263,361)
(1,267,630)
(1,268,582)
(1,006,412)
Tangible common equity (numerator)
1,332,346
$  
1,321,321
$       
1,277,100
$       
1,244,002
$  
1,183,216
$  
Assets
18,037,667
$
18,106,730
$     
18,040,009
$     
17,807,026
$
14,974,789
$
(1,263,563)
(1,263,361)
(1,267,630)
(1,268,582)
(1,047,112)
Tangible assets (denominator)
16,774,104
$
16,843,369
$     
16,772,379
$     
16,538,444
$
13,927,677
$
Tangible common ratio
7.94%
7.84%
7.61%
7.52%
8.50%
Efficiency Ratio
Tangible Common Ratio
Goodwill
and
other
intangible
assets
Goodwill
and
other
intangible
assets
(1)
(1)


Non-GAAP Reconciliation
(Dollars and share data in thousands)
Non-GAAP Reconciliation
(Dollars and share data in thousands)
37
Return on Average Tangible Equity
4Q12
3Q12
2Q12
1Q12
4Q11
Income statement data
Net income
43,174
$       
36,732
$           
37,793
$           
23,473
$       
19,129
$       
Amortization of intangibles, net of taxes at 35%
2,127
2,169
2,211
1,789
1,489
Net tangible income (numerator)
45,301
$       
38,901
$           
40,004
$           
25,262
$       
20,618
$       
Average balance sheet data
Shareholders' equity
2,597,254
$  
2,562,092
$       
2,537,250
$       
2,348,326
$  
2,217,036
$  
Goodwill and other intangible assets
(1,311,192)
(1,315,071)
(1,320,658)
(1,132,344)
(1,045,580)
Tangible common equity (denominator)
1,286,062
$  
1,247,021
$       
1,216,592
$       
1,215,982
$  
1,171,456
$  
Return on equity (GAAP basis)
6.61%
5.70%
5.99%
4.02%
3.42%
Effect of goodwill and other intangibles
7.40%
6.71%
7.24%
4.34%
3.56%
Return on average tangible equity
14.01%
12.41%
13.23%
8.36%
6.98%
Return on average tangible shareholders’ equity is a non-GAAP based financial measure calculated using non-GAAP based amounts.  The most directly
comparable GAAP-based measure is return on average equity.  We calculate return on average tangible shareholders’ equity by excluding the balance of
intangible assets and their related amortization expense from our calculation of return on average equity.  Management uses the return on average tangible equity
in order to review our core operating results.  Management believes that this is a better measure of our performance.  In addition, this is consistent with the
treatment by bank regulatory agencies, which excludes goodwill and other intangible assets from the calculation of risk-based capital ratios.