Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q4 2016 Earnings Presentation
15 slides from Fulton Financial's earnings presentation, Jan 17, 2017
Slide 1: 2016 and Fourth Quarter Results
D A T A A S O F D E C E M B E R 3 1 , 2 0 1 6 U N L E S S O T H E R W I S E N O T E D 2016 AND FOURTH QUARTER RESULTS
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 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 wor
Slide 3: 2016 Highlights
2016 HIGHLIGHTS Diluted Earnings Per Share • $0.24 diluted earnings per share in 4Q16, $0.93 YTD Loan and Core Deposit Growth • 6.0% annual increase in average loans and 9.3% annual increase in average core deposits • Ending loans increased 6.2% in 2016 Net Interest Income & Margin • Net interest in
Slide 4: Income Statement Summary – Annual Comparison
INCOME STATEMENT SUMMARY – ANNUAL COMPARISON (1) ROA is return an average assets determined by dividing net income for the period indicated by average assets (2) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non
Slide 5: Income Statement Summary – Quarterly Comparison
INCOME STATEMENT SUMMARY – QUARTERLY COMPARISON Net Income of $42.2 million; a 1.6% increase from 3Q16 and a 9.4% increase from 4Q15 Net Interest Income From 3Q16: Increase of 1.3% due to a 1.2% increase in average earning assets and a 1 bp improvement in net interest margin (NIM) From 4Q15: I
Slide 6: Net Interest Income and Margin – Quarter Comparison
NET INTEREST INCOME AND MARGIN – QUARTER COMPARISON Net Interest Income & Net Interest Margin ~ $730 million ~ $610 million $127.8 $129.1 $128.9 $130.6 $132.2 3.19% 3.23% 3.20% 3.14% 3.15% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 4Q15 1Q16 2Q16 3Q16 4Q1
Slide 7: Asset Quality – Annual Comparison
ASSET QUALITY – ANNUAL COMPARISON ($ IN MILLIONS) $40.5 $12.5 $2.3 $13.2 $- $10.0 $20.0 $30.0 $40.0 $50.0 2013 2014 2015 2016 Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans 132.82% 134.26% 118.37% 130.15% 1.60% 1.42% 1.24% 1.17% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 0.0% 25.0%
Slide 8: Non-Interest Income – Quarter Comparison
NON-INTEREST INCOME – QUARTER COMPARISON ($ IN MILLIONS) Non-Interest Income, Excluding Securities Gains ~ $730 million ~ $610 million $45.1 $42.2 $46.1 $48.1 $51.2 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 4Q15 1Q16 2Q16 3Q16 4Q16 Mortgage Banking Income & Spreads Other Non-Interest Income 1.60% 1.28%
Slide 9: Non-Interest Expenses – Quarter Comparison
NON-INTEREST EXPENSES – QUARTER COMPARISON ($ IN MILLIONS) Non-Interest Expense & Efficiency Ratio (1) ~ $730 million ~ $610 million $118.4 $120.4 $121.6 $119.8 $127.6 66.6% 68.3% 67.6% 65.2% 67.6% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 4
Slide 10: Compliance & Risk Management
$1.8 $2.1 $3.2 $4.3 $4.9 $4.6 $1.4 $8.6 $5.9 $4.1 13 26 30 45 47 56 $- $3.0 $6.0 $9.0 $12.0 0 10 20 30 40 50 60 70 2011 2012 2013 2014 2015 2016 Salarie s & Be nefits Expense Outsi de Consul ti ng Services and Te mpora ry Staffing (1) Staffing $0.8 $0.1 COMPLIANCE & RISK MANAGEMENT (1) Represents th
Slide 11: Profitability & Capital – Annual Comparison
PROFITABILITY & CAPITAL – ANNUAL COMPARISON ROA (1) ROE (tangible) (2) Tangible Common Equity Ratio (2) Diluted Earnings Per Common Share 10.76% 10.31% 10.01% 10.30% 0.00% 4.00% 8.00% 12.00% 2013 2014 2015 2016 0.96% 0.93% 0.86% 0.88% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 2013 2014 2015 2016 $ 0.83 $
Slide 12: 2017 Outlook
2017 OUTLOOK • Loans & Deposits: Annual average growth rate in the mid- to high-single digits • Net Interest Margin: Modest improvement (flat to 5 basis points) on a quarterly basis in Q1 and Q2; Q3 and Q4 margin trends will be largely dependent upon changes in the federal funds rate and competitor
Slide 13: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION D ec 31, Sep 30, Jun 30, M ar 31, D ec 31, 2016 2016 2016 2016 2015 2016 2015 Eff iciency rat io Non-interest expense 127,621$ 119,848$ 121,637$ 120,413$ 118,439$ 489,519$ 480,160$ Less: Intangible amortization - - - - (6) - (247) Less: Loss on redemption of trust preferred s
Slide 14: Non-GAAP Reconciliation (Continued)
NON-GAAP RECONCILIATION (CONTINUED) FFC Consolidated D ec 3 1, D ec 3 1, D ec 3 1, D ec 3 1, 2 0 16 2 0 15 2 0 14 2 0 13 Tang ib le C ommon Equit y t o Tang ib le A sset s ( TC E R at io ) Shareholders' equity 2,121,115$ 2,041,894$ 1,996,665$ 2,063,187$ Less: Intangible assets (531,556) (531,556) (5
Slide 15: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION www.fult.com