Investor Presentation
Data as of June 30, 2012
Ticker Symbol: FULT (NASDAQ)
§ 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,” “should,” “will,” “could,” “estimates,” “predicts,”
“potential,” “continue,” “anticipates,” “believes,” “plans,” “expects,” “future,” “intends” and similar expressions which are
intended to identify forward-looking statements.
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,” “should,” “will,” “could,” “estimates,” “predicts,”
“potential,” “continue,” “anticipates,” “believes,” “plans,” “expects,” “future,” “intends” and similar expressions which are
intended to identify forward-looking statements.
§ Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, some
of which are beyond the Corporation’s control and ability to predict, that could cause actual results to differ materially
from those expressed in the forward-looking statements. The Corporation undertakes no obligation, other than as
required by law, to update or revise any forward-looking statements whether as a result of new information, future
events or otherwise.
of which are beyond the Corporation’s control and ability to predict, that could cause actual results to differ materially
from those expressed in the forward-looking statements. The Corporation undertakes no obligation, other than as
required by law, to update or revise any forward-looking statements whether as a result of new information, future
events or otherwise.
§ Many factors could affect future financial results including, without limitation: the impact of adverse changes in the
economy and real estate markets; increases in non-performing assets which may reduce the level of earning assets
and require the Corporation to increase the allowance for credit losses, charge-off loans and incur elevated collection
and carrying costs related to such non-performing assets; acquisition and growth strategies; market risk; changes or
adverse developments in political or regulatory conditions; a disruption in, or abnormal functioning of, credit and other
markets, including the lack of or reduced access to markets for mortgages and other asset-backed securities and for
commercial paper and other short-term borrowings; changes in the levels of, or methodology for determining, FDIC
deposit insurance premiums and assessments; the effect of competition and interest rates on net interest margin and
net interest income; investment strategy and other 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; relative balances of rate-sensitive assets to rate-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.
economy and real estate markets; increases in non-performing assets which may reduce the level of earning assets
and require the Corporation to increase the allowance for credit losses, charge-off loans and incur elevated collection
and carrying costs related to such non-performing assets; acquisition and growth strategies; market risk; changes or
adverse developments in political or regulatory conditions; a disruption in, or abnormal functioning of, credit and other
markets, including the lack of or reduced access to markets for mortgages and other asset-backed securities and for
commercial paper and other short-term borrowings; changes in the levels of, or methodology for determining, FDIC
deposit insurance premiums and assessments; the effect of competition and interest rates on net interest margin and
net interest income; investment strategy and other 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; relative balances of rate-sensitive assets to rate-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.
§ 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.
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 Statements
2
About Us
§ Mid-Atlantic financial holding company
§ 6 community banks / 5 states
§ Fulton Financial Advisors
§ Fulton Mortgage Company
§ 270 community banking offices
§ Asset size: $16.3 billion
§ 3,800 team members
§ Market capitalization: $ 2.0 billion
§ Book value per common share: $ 10.16
§ Tangible book value per common share: $ 7.46
§ Shares outstanding: 200.9 million
3
§ 1. EPS Growth
§ 2. ROA Improvement
§ 3. Spread Management /Net Interest Margin
§ 4. Improve Asset Quality
§ 5. Deploy Capital Prudently
§ 6. Leverage Market Opportunities
§ 7. Profitable Organic / Acquisitive Growth
Corporate Goals and Priorities
4
Goals and Priorities
1. Earnings per Share Growth
üQ2/12 Diluted EPS: 20 cents
Up 5.3% linked quarter (19 cents)
Up 11.1% year over year (18 cents)
5
Income Statement Summary
6
Income Statement Summary
(Six Months Ended June 30th)
(Six Months Ended June 30th)
7
Ending Loans
8
Diluted EPS
9
10
CAGR = 6.7%
Non-Interest Income
11
12
Non-Interest Income
(Six Months Ended June 30th)
(Six Months Ended June 30th)
Non-Interest Income Growth
§ Fulton Mortgage Company
§ Significant Contributor to Non-interest Income
§ Strong Pipeline with Low Rate Environment
§ Leverage our Market Reputation and Brand
§ Expanded Origination Staff
§ Fulton Financial Advisors ($4.0 billion A.U.M.)
§ Brokerage Production Mix (non-recurring / recurring)
§ Referrals from Commercial Bank
§ Team Market Development
13
Fulton Mortgage Company
§ Applications up linked quarter: $824
million from $812 million
million from $812 million
§ Pipeline $520 million vs. $428 million
(Q2/12 vs. Q1/12)
(Q2/12 vs. Q1/12)
§ 39% purchase / 61% refinancing
(Q2/12)
(Q2/12)
§ Sales gains up linked quarter
14
Fulton Mortgage Company
78%
Availabl
e for
Sale
Availabl
e for
Sale
GOS
Spread
Spread
1.42%
GOS
Spread
Spread
1.30%
GOS
Spread
Spread
1.55%
GOS
Spread
Spread
1.66%
84%
Available
for Sale
Available
for Sale
83%
Available
for Sale
Available
for Sale
71%
Availabl
e for
Sale
Availabl
e for
Sale
86%
Available
for Sale
Available
for Sale
GOS
Spread
Spread
1.58%
69%
Availabl
e for
Sale
Availabl
e for
Sale
($ in thousands)
Non-Interest Expenses
16
1. Enterprise-wide Risk Management
and Compliance
and Compliance
2. Core Platform Conversion
(Continuation of longstanding Fiserv Relationship)
3. Asset Quality Improvement
Priority Resource Commitments
17
International Bancshares Corp.
People’s United Financial, Inc.
Susquehanna Bancshares, Inc.
Synovus Financial Corporation
TCF Financial Corporation
UMB Financial Corporation
Valley National Bancorp
Webster Financial Corporation
*Fulton’s peer group as of June 30, 2012
Associated Banc-Corp
BancorpSouth, Inc.
BOK Financial Corporation
City National Corporation
Commerce Bancshares, Inc.
Cullen / Frost Bankers, Inc.
First Horizon National
Corporation
Corporation
FirstMerit Corporation
First Niagara Financial Group, Inc.
Peer Group*
18
More Efficient Than Peers
19
* Comprised of the 50 largest publicly traded domestic banks/thrifts in asset size as of
December 31, 2011. Excludes credit card companies. Source : SNL.com
December 31, 2011. Excludes credit card companies. Source : SNL.com
2. Improve Our Return on Assets
üQ2/12: 0.98%
YTD 6/30/12: 0.96%
Goals and Priorities
20
ROA Growth
21
ROA and Assets, by Bank
22
§ 3. Spread Management / Net Interest
Margin
Margin
§ Q2/12: 3.78%
ü Cost of interest bearing liabilities: 0.93%
ü Yield on earning assets: 4.48%
Goals and Priorities
23
Net Interest Margin
24
6 month cumulative gap: 1.10
Interest Rate Shocks (6/30/12)
Rate Change NII Change (Annual) % Change
+400 bp + $ 70.5 million + 13.0%
+300 bp + $ 49.6 million + 9.1%
+200 bp + $ 28.2 million + 5.2%
+100 bp + $ 8.2 million + 1.5%
- 100 bp - $ 17.1 million - 3.1%
25
Deposit Composition
26
§ 4. Improve Asset Quality
Goals and Priorities
27
28
Allowance for Loan Losses to Loans
29
Non-performing Loans* (6/30/12)
30
Loan Delinquency
31
Construction Exposure
Construction Loans /
Total Loans
Total Loans
10.5%
8.2%
6.7%
5.1%
5.2%
32
33
Provision for Credit Losses
§ 5. Deploy Capital Prudently
Goals and Priorities
34
Total Risk-Based Capital Ratio
35
Capital Adequacy (6/30/12)
36
Capital Adequacy vs. Basel III
37
Tangible Book Value Per Share
38
CAGR = 10.9%
Price Multiple vs. Peer Group
39
Note: As of 8/06/2012
Deploying Capital
§ Current Uses
§ Support organic growth
§ Increase our cash dividend
§ Stock repurchase
§ Potential Uses
§ Acquisitions with right opportunities
40
FULT - Cash Dividend and Yield
41
CAGR (cash dividend) = 29.8%
§ Program authorized: June 2012
§ Initial shares purchased: July 2012
§ Up to 5 million shares through 12/31/12
§ About 2.5% of outstanding shares
§ Shares repurchased as of market close
August 8, 2012: 859,534
August 8, 2012: 859,534
§ Average purchase price: $ 9.37
Stock Repurchase Program
42
§ 6. Leverage Market Opportunities
Goals and Priorities
43
Superior Customer Experience
CARE,
LISTEN,
UNDERSTAND
and
DELIVER
44
§ Top 3 Box Satisfaction: 84%
§ Delivery on our Promise:
Top 3 Box 85%
*Survey Sample Size: 4,897 customers
Retail Customer Satisfaction*
45
§ Commercial Households:
§ Up 2.9% YTD (5.8% annualized)
§ Retail Households:
§ Up 1.6% YTD (3.2% annualized)
§ Net Household Lift:
§ Up 1.7% YTD (3.4% annualized)
New Household Growth YTD
46
§ Counties ranked #1 in deposit market share
§ Lebanon, PA (Fulton Bank 31.2%)
§ Snyder, PA (Swineford National Bank 30.3%)
§ Salem, NJ (Fulton Bank of New Jersey 27.2%)
§ Counties ranked #2 in deposit market share
§ Lancaster, PA (Fulton Bank 22.7%)
§ Montour, PA (FNB Bank 29.5%)
§ Gloucester, NJ (Fulton Bank of New Jersey 13.2%)
§ Washington, MD (The Columbia Bank 19.7%)
§ Counties ranked #3 in deposit market share
§ Northampton, PA (Lafayette Ambassador Bank 14.3%)
§ Warren, NJ (Fulton Bank of New Jersey 11.0%)
§ Howard, MD (The Columbia Bank 10.9%)
Top County Market Share (6/30/11)
47
§ 7. Profitable Organic /
Acquisitive Growth
Acquisitive Growth
Goals and Priorities
48
A Valuable Franchise
49
2012 Branch Expansion
50
§ Optimal asset size: $ 500 million to
$2.5 billion (102 banks in footprint)
$2.5 billion (102 banks in footprint)
§ Good fit geographically
§ Earnings accretive /reasonable
tangible book dilution
tangible book dilution
§ Culturally compatible
§ Acceptable risk profile
§ Meaningful existing market share
Acquisitive Growth
51
Fulton Financial Corporation
One Penn Square
Lancaster, PA 17602
www.fult.com
Version 2012-08-13
Supplemental Information
Average Deposits
54
Interest Rates
Projected CD Maturities
56
Average Loans
57
§ 57 relationships with commitments to lend $20
million or more
million or more
§ Maximum individual commitment: $39 million
§ Maximum commitment to any builder/developer:
$28 million
$28 million
§ Maximum commitment to any one development project:
$15 million
$15 million
§ Average commercial lending relationship size is
$470,776
$470,776
§ Loans and corresponding relationships are within
Fulton’s geographic market area
Fulton’s geographic market area
Summary of Larger Loans (6/30/12)
58
59
Net Charge-offs (YTD June 2012)
60
61
Allowance for Loan Losses to Non-accrual Loans
62
Commercial Loans by Industry
63
Loan Distribution by State (6/30/12)
64
Residential Mortgages (6/30/12)
65
Residential Mortgage Repurchase Activity
First & Second Quarter:
§2012 - Servicing Retained
§ Repurchased $ 3,550,000.
§2012 - Servicing Released
§ Repurchased $ 610,000.
66
C&I Loans (6/30/12)
67
Commercial Real Estate Loans (6/30/12)
68
Construction Loans (6/30/12)
69
Construction Loans by Type (6/30/12)
70
Shared National Credits (6/30/12)
71
72
Note: Excludes non-accrual TDRs
Investment Portfolio (06-30-12)
73
Book Yield (monthly) 3.49%
Projected Investment Security Cash Flows
74
Investment MBS & CMO Cash Flows (2011-2012)
75
Book Price
$101.51
$101.51
Book Price
$101.87
$101.87
Book Price
$101.48
$101.48
Book Price
$102.12
$102.12
Investment Portfolio - Transactions (2ND Quarter 2012)
($ in Thousands)
76
Projected FHLB Advance Maturities
77
Fulton Financial Corporation
One Penn Square
Lancaster, PA 17602
www.fult.com
Version 2012-08-13