Attached files
| file | filename |
|---|---|
| 8-K - 8-K - FULTON FINANCIAL CORP | a8-k6x30x13.htm |
| EX-99.1 - EARNINGS RELEASE DATED JULY 23RD 2013 - FULTON FINANCIAL CORP | exhibit9916-30x13.htm |
Exhibit 99.2 | ||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||
dollars in thousands | ||||||||||||||||||
% Change from | ||||||||||||||||||
June 30 | June 30 | March 31 | June 30 | March 31 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | ||||||||||||||
ASSETS | ||||||||||||||||||
Cash and due from banks | $ | 219,944 | $ | 242,811 | $ | 174,479 | (9.4 | )% | 26.1 | % | ||||||||
Other interest-earning assets | 130,065 | 118,468 | 97,202 | 9.8 | % | 33.8 | % | |||||||||||
Loans held for sale | 60,909 | 71,406 | 63,045 | (14.7 | )% | (3.4 | )% | |||||||||||
Investment securities | 2,915,879 | 2,870,832 | 2,812,104 | 1.6 | % | 3.7 | % | |||||||||||
Loans, net of unearned income | 12,645,418 | 11,985,115 | 12,377,288 | 5.5 | % | 2.2 | % | |||||||||||
Allowance for loan losses | (216,431 | ) | (235,737 | ) | (220,041 | ) | (8.2 | )% | (1.6 | )% | ||||||||
Net loans | 12,428,987 | 11,749,378 | 12,157,247 | 5.8 | % | 2.2 | % | |||||||||||
Premises and equipment | 224,418 | 222,083 | 226,754 | 1.1 | % | (1.0 | )% | |||||||||||
Accrued interest receivable | 45,713 | 48,283 | 47,485 | (5.3 | )% | (3.7 | )% | |||||||||||
Goodwill and intangible assets | 534,452 | 542,622 | 534,987 | (1.5 | )% | (0.1 | )% | |||||||||||
Other assets | 462,043 | 476,905 | 569,434 | (3.1 | )% | (18.9 | )% | |||||||||||
Total Assets | $ | 17,022,410 | $ | 16,342,788 | $ | 16,682,737 | 4.2 | % | 2.0 | % | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Deposits | $ | 12,257,809 | $ | 12,245,492 | $ | 12,388,460 | 0.1 | % | (1.1 | )% | ||||||||
Short-term borrowings | 1,620,318 | 931,681 | 1,126,966 | 73.9 | % | 43.8 | % | |||||||||||
Other liabilities | 226,384 | 215,622 | 216,337 | 5.0 | % | 4.6 | % | |||||||||||
FHLB advances and long-term debt | 889,167 | 908,809 | 889,211 | (2.2 | )% | — | % | |||||||||||
Total Liabilities | 14,993,678 | 14,301,604 | 14,620,974 | 4.8 | % | 2.5 | % | |||||||||||
Shareholders' equity | 2,028,732 | 2,041,184 | 2,061,763 | (0.6 | )% | (1.6 | )% | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,022,410 | $ | 16,342,788 | $ | 16,682,737 | 4.2 | % | 2.0 | % | ||||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||
Loans, by type: | ||||||||||||||||||
Real estate - commercial mortgage | $ | 4,856,916 | $ | 4,653,097 | $ | 4,729,930 | 4.4 | % | 2.7 | % | ||||||||
Commercial - industrial, financial and agricultural | 3,712,974 | 3,538,188 | 3,658,483 | 4.9 | % | 1.5 | % | |||||||||||
Real estate - home equity | 1,760,268 | 1,599,468 | 1,689,446 | 10.1 | % | 4.2 | % | |||||||||||
Real estate - residential mortgage | 1,313,345 | 1,184,192 | 1,303,454 | 10.9 | % | 0.8 | % | |||||||||||
Real estate - construction | 610,280 | 619,060 | 597,597 | (1.4 | )% | 2.1 | % | |||||||||||
Consumer | 300,233 | 309,097 | 309,138 | (2.9 | )% | (2.9 | )% | |||||||||||
Leasing and other | 91,402 | 82,013 | 89,240 | 11.4 | % | 2.4 | % | |||||||||||
Total Loans, net of unearned income | $ | 12,645,418 | $ | 11,985,115 | $ | 12,377,288 | 5.5 | % | 2.2 | % | ||||||||
Deposits, by type: | ||||||||||||||||||
Noninterest-bearing demand | $ | 3,168,781 | $ | 2,749,639 | $ | 3,075,511 | 15.2 | % | 3.0 | % | ||||||||
Interest-bearing demand | 2,714,545 | 2,482,271 | 2,698,811 | 9.4 | % | 0.6 | % | |||||||||||
Savings deposits | 3,272,557 | 3,278,937 | 3,345,842 | (0.2 | )% | (2.2 | )% | |||||||||||
Time deposits | 3,101,926 | 3,734,645 | 3,268,296 | (16.9 | )% | (5.1 | )% | |||||||||||
Total Deposits | $ | 12,257,809 | $ | 12,245,492 | $ | 12,388,460 | 0.1 | % | (1.1 | )% | ||||||||
Short-term borrowings, by type: | ||||||||||||||||||
Customer repurchase agreements | $ | 196,188 | $ | 204,526 | $ | 158,214 | (4.1 | )% | 24.0 | % | ||||||||
Customer short-term promissory notes | 93,671 | 135,988 | 114,231 | (31.1 | )% | (18.0 | )% | |||||||||||
Federal funds purchased | 780,459 | 566,167 | 729,521 | 37.8 | % | 7.0 | % | |||||||||||
Short-term FHLB advances | 550,000 | 25,000 | 125,000 | N/M | 340.0 | % | ||||||||||||
Total Short-term Borrowings | $ | 1,620,318 | $ | 931,681 | $ | 1,126,966 | 73.9 | % | 43.8 | % | ||||||||
N/M - Not Meaningful | ||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||||||||||||||||||
in thousands, except per-share data and percentages | ||||||||||||||||||||||||||||||||||
Quarter Ended | % Change from | Six Months ended | ||||||||||||||||||||||||||||||||
Jun 30 | Jun 30 | Mar 31 | Jun 30 | Mar 31 | Jun 30 | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2013 | 2012 | % Change | |||||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||||||||||
Interest income | $ | 153,078 | $ | 163,985 | $ | 151,322 | (6.7 | )% | 1.2 | % | $ | 304,400 | $ | 330,876 | (8.0 | )% | ||||||||||||||||||
Interest expense | 21,013 | 26,455 | 21,678 | (20.6 | )% | (3.1 | )% | 42,691 | 54,651 | (21.9 | )% | |||||||||||||||||||||||
Net Interest Income | 132,065 | 137,530 | 129,644 | (4.0 | )% | 1.9 | % | 261,709 | 276,225 | (5.3 | )% | |||||||||||||||||||||||
Provision for credit losses | 13,500 | 25,500 | 15,000 | (47.1 | )% | (10.0 | )% | 28,500 | 53,500 | (46.7 | )% | |||||||||||||||||||||||
Net Interest Income after Provision | 118,565 | 112,030 | 114,644 | 5.8 | % | 3.4 | % | 233,209 | 222,725 | 4.7 | % | |||||||||||||||||||||||
Non-Interest Income: | ||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 14,651 | 15,367 | 14,111 | (4.7 | )% | 3.8 | % | 28,762 | 30,209 | (4.8 | )% | |||||||||||||||||||||||
Mortgage banking income | 10,997 | 11,143 | 8,173 | (1.3 | )% | 34.6 | % | 19,170 | 21,193 | (9.5 | )% | |||||||||||||||||||||||
Investment management and trust services | 10,601 | 9,822 | 10,096 | 7.9 | % | 5.0 | % | 20,697 | 19,199 | 7.8 | % | |||||||||||||||||||||||
Other service charges and fees | 9,508 | 11,507 | 8,510 | (17.4 | )% | 11.7 | % | 18,018 | 22,062 | (18.3 | )% | |||||||||||||||||||||||
Investment securities gains | 2,865 | 1,538 | 2,473 | 86.3 | % | 15.9 | % | 5,338 | 2,789 | 91.4 | % | |||||||||||||||||||||||
Other | 3,694 | 3,931 | 3,896 | (6.0 | )% | (5.2 | )% | 7,590 | 9,494 | (20.1 | )% | |||||||||||||||||||||||
Total Non-Interest Income | 52,316 | 53,308 | 47,259 | (1.9 | )% | 10.7 | % | 99,575 | 104,946 | (5.1 | )% | |||||||||||||||||||||||
Non-Interest Expense: | ||||||||||||||||||||||||||||||||||
Salaries and employee benefits | 63,490 | 60,091 | 61,212 | 5.7 | % | 3.7 | % | 124,702 | 120,451 | 3.5 | % | |||||||||||||||||||||||
Net occupancy expense | 11,447 | 11,205 | 11,844 | 2.2 | % | (3.4 | )% | 23,291 | 22,140 | 5.2 | % | |||||||||||||||||||||||
Other outside services | 5,315 | 5,101 | 2,860 | 4.2 | % | 85.8 | % | 8,175 | 8,014 | 2.0 | % | |||||||||||||||||||||||
Data processing | 4,509 | 3,759 | 3,903 | 20.0 | % | 15.5 | % | 8,412 | 7,447 | 13.0 | % | |||||||||||||||||||||||
Equipment expense | 3,893 | 3,185 | 3,908 | 22.2 | % | (0.4 | )% | 7,801 | 6,554 | 19.0 | % | |||||||||||||||||||||||
Professional fees | 3,395 | 2,984 | 3,047 | 13.8 | % | 11.4 | % | 6,442 | 5,566 | 15.7 | % | |||||||||||||||||||||||
Software | 3,094 | 2,272 | 2,748 | 36.2 | % | 12.6 | % | 5,842 | 4,447 | 31.4 | % | |||||||||||||||||||||||
FDIC insurance expense | 3,001 | 3,002 | 2,847 | — | % | 5.4 | % | 5,848 | 6,023 | (2.9 | )% | |||||||||||||||||||||||
OREO and repossession expense | 1,941 | 3,165 | 2,854 | (38.7 | )% | (32.0 | )% | 4,795 | 6,460 | (25.8 | )% | |||||||||||||||||||||||
Marketing | 1,922 | 2,583 | 1,872 | (25.6 | )% | 2.7 | % | 3,794 | 5,055 | (24.9 | )% | |||||||||||||||||||||||
Operating risk loss | 1,860 | 2,055 | 1,766 | (9.5 | )% | 5.3 | % | 3,626 | 5,423 | (33.1 | )% | |||||||||||||||||||||||
Other | 13,263 | 12,685 | 12,075 | 4.6 | % | 9.8 | % | 25,338 | 25,176 | 0.6 | % | |||||||||||||||||||||||
Total Non-Interest Expense | 117,130 | 112,087 | 110,936 | 4.5 | % | 5.6 | % | 228,066 | 222,756 | 2.4 | % | |||||||||||||||||||||||
Income Before Income Taxes | 53,751 | 53,251 | 50,967 | 0.9 | % | 5.5 | % | 104,718 | 104,915 | (0.2 | )% | |||||||||||||||||||||||
Income tax expense | 13,169 | 13,360 | 11,740 | (1.4 | )% | 12.2 | % | 24,909 | 26,892 | (7.4 | )% | |||||||||||||||||||||||
Net Income | $ | 40,582 | $ | 39,891 | $ | 39,227 | 1.7 | % | 3.5 | % | $ | 79,809 | $ | 78,023 | 2.3 | % | ||||||||||||||||||
PER SHARE: | ||||||||||||||||||||||||||||||||||
Net income: | ||||||||||||||||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.20 | $ | 0.20 | 5.0 | % | 5.0 | % | $ | 0.41 | $ | 0.39 | 5.1 | % | ||||||||||||||||||
Diluted | 0.21 | 0.20 | 0.20 | 5.0 | % | 5.0 | % | 0.41 | 0.39 | 5.1 | % | |||||||||||||||||||||||
Cash dividends | $ | 0.08 | $ | 0.07 | $ | 0.08 | 14.3 | % | — | % | $ | 0.16 | $ | 0.14 | 14.3 | % | ||||||||||||||||||
Shareholders' equity | 10.48 | 10.16 | 10.56 | 3.1 | % | (0.8 | )% | 10.48 | 10.16 | 3.1 | % | |||||||||||||||||||||||
Shareholders' equity (tangible) | 7.72 | 7.46 | 7.82 | 3.5 | % | (1.3 | )% | 7.72 | 7.46 | 3.5 | % | |||||||||||||||||||||||
Weighted average shares (basic) | 193,273 | 199,671 | 196,299 | (3.2 | )% | (1.5 | )% | 194,777 | 199,581 | (2.4 | )% | |||||||||||||||||||||||
Weighted average shares (diluted) | 194,346 | 200,806 | 197,217 | (3.2 | )% | (1.5 | )% | 195,773 | 200,575 | (2.4 | )% | |||||||||||||||||||||||
Shares outstanding, end of period | 193,658 | 200,880 | 195,276 | (3.6 | )% | (0.8 | )% | 193,658 | 200,880 | (3.6 | )% | |||||||||||||||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||||||||||||||||||||
Return on average assets | 0.97 | % | 0.98 | % | 0.96 | % | 0.97 | % | 0.96 | % | ||||||||||||||||||||||||
Return on average common shareholders' equity | 7.89 | % | 7.84 | % | 7.67 | % | 7.78 | % | 7.72 | % | ||||||||||||||||||||||||
Return on average common shareholders' equity (tangible) | 10.75 | % | 10.80 | % | 10.43 | % | 10.59 | % | 10.68 | % | ||||||||||||||||||||||||
Net interest margin | 3.52 | % | 3.78 | % | 3.55 | % | 3.54 | % | 3.81 | % | ||||||||||||||||||||||||
Efficiency ratio | 62.73 | % | 57.54 | % | 61.78 | % | 62.27 | % | 57.19 | % | ||||||||||||||||||||||||
N/M - Not meaningful | ||||||||||||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | March 31, 2013 | ||||||||||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||||||||||||
Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||
Loans, net of unearned income | $ | 12,528,562 | $ | 138,002 | 4.42% | $ | 11,967,939 | $ | 144,263 | 4.85% | $ | 12,257,280 | $ | 136,948 | 4.53% | |||||||||||||||||
Taxable investment securities | 2,410,004 | 14,516 | 2.41% | 2,533,060 | 18,624 | 2.94% | 2,421,178 | 13,397 | 2.22% | |||||||||||||||||||||||
Tax-exempt investment securities | 280,508 | 3,608 | 5.15% | 283,736 | 3,992 | 5.63% | 292,118 | 3,814 | 5.22% | |||||||||||||||||||||||
Equity securities | 123,848 | 875 | 2.83% | 106,954 | 707 | 2.65% | 118,367 | 917 | 3.12% | |||||||||||||||||||||||
Total Investment Securities | 2,814,360 | 18,999 | 2.70% | 2,923,750 | 23,323 | 3.19% | 2,831,663 | 18,128 | 2.56% | |||||||||||||||||||||||
Loans held for sale | 42,158 | 384 | 3.64% | 55,813 | 538 | 3.85% | 47,885 | 495 | 4.14% | |||||||||||||||||||||||
Other interest-earning assets | 144,945 | 35 | 0.10% | 129,659 | 45 | 0.14% | 117,850 | 22 | 0.07% | |||||||||||||||||||||||
Total Interest-earning Assets | 15,530,025 | 157,420 | 4.07% | 15,077,161 | 168,169 | 4.48% | 15,254,678 | 155,593 | 4.13% | |||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||
Cash and due from banks | 206,090 | 233,041 | 202,507 | |||||||||||||||||||||||||||||
Premises and equipment | 225,915 | 216,881 | 226,466 | |||||||||||||||||||||||||||||
Other assets | 1,060,095 | 1,104,615 | 1,070,170 | |||||||||||||||||||||||||||||
Less: allowance for loan losses | (221,541 | ) | (259,327 | ) | (227,858 | ) | ||||||||||||||||||||||||||
Total Assets | $ | 16,800,584 | $ | 16,372,371 | $ | 16,525,963 | ||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | $ | 2,718,679 | $ | 872 | 0.13% | $ | 2,484,730 | $ | 1,025 | 0.17% | $ | 2,705,835 | $ | 877 | 0.13% | |||||||||||||||||
Savings deposits | 3,350,856 | 1,016 | 0.12% | 3,302,418 | 1,510 | 0.18% | 3,334,305 | 1,023 | 0.12% | |||||||||||||||||||||||
Time deposits | 3,169,141 | 7,610 | 0.96% | 3,791,362 | 12,208 | 1.30% | 3,321,309 | 8,501 | 1.04% | |||||||||||||||||||||||
Total Interest-bearing Deposits | 9,238,676 | 9,498 | 0.41% | 9,578,510 | 14,743 | 0.62% | 9,361,449 | 10,401 | 0.45% | |||||||||||||||||||||||
Short-term borrowings | 1,313,424 | 700 | 0.21% | 961,900 | 411 | 0.17% | 1,032,122 | 509 | 0.20% | |||||||||||||||||||||||
FHLB advances and long-term debt | 889,186 | 10,815 | 4.87% | 929,318 | 11,301 | 4.88% | 891,173 | 10,768 | 4.87% | |||||||||||||||||||||||
Total Interest-bearing Liabilities | 11,441,286 | 21,013 | 0.74% | 11,469,728 | 26,455 | 0.93% | 11,284,744 | 21,678 | 0.78% | |||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | 3,116,940 | 2,670,397 | 2,968,777 | |||||||||||||||||||||||||||||
Other | 179,875 | 185,929 | 198,944 | |||||||||||||||||||||||||||||
Total Liabilities | 14,738,101 | 14,326,054 | 14,452,465 | |||||||||||||||||||||||||||||
Shareholders' equity | 2,062,483 | 2,046,317 | 2,073,498 | |||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 16,800,584 | $ | 16,372,371 | $ | 16,525,963 | ||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 136,407 | 3.52% | 141,714 | 3.78% | 133,915 | 3.55% | ||||||||||||||||||||||||||
Tax equivalent adjustment | (4,342 | ) | (4,184 | ) | (4,271 | ) | ||||||||||||||||||||||||||
Net interest income | $ | 132,065 | $ | 137,530 | $ | 129,644 | ||||||||||||||||||||||||||
(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances. | ||||||||||||||||||||||||||||||||
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||||||||||||||||
Quarter Ended | % Change from | |||||||||||||||||||||||||||||||
Jun 30 | Jun 30 | Mar 31 | Jun 30 | Mar 31 | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 4,758,060 | $ | 4,634,436 | $ | 4,666,494 | 2.7 | % | 2.0 | % | ||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 3,714,683 | 3,529,947 | 3,662,566 | 5.2 | % | 1.4 | % | |||||||||||||||||||||||||
Real estate - home equity | 1,732,704 | 1,599,702 | 1,662,173 | 8.3 | % | 4.2 | % | |||||||||||||||||||||||||
Real estate - residential mortgage | 1,308,713 | 1,180,024 | 1,283,168 | 10.9 | % | 2.0 | % | |||||||||||||||||||||||||
Real estate - construction | 617,577 | 640,282 | 591,338 | (3.5 | )% | 4.4 | % | |||||||||||||||||||||||||
Consumer | 304,918 | 307,651 | 305,480 | (0.9 | )% | (0.2 | )% | |||||||||||||||||||||||||
Leasing and other | 91,907 | 75,897 | 86,061 | 21.1 | % | 6.8 | % | |||||||||||||||||||||||||
Total Loans, net of unearned income | $ | 12,528,562 | $ | 11,967,939 | $ | 12,257,280 | 4.7 | % | 2.2 | % | ||||||||||||||||||||||
Deposits, by type: | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,116,940 | $ | 2,670,397 | $ | 2,968,777 | 16.7 | % | 5.0 | % | ||||||||||||||||||||||
Interest-bearing demand | 2,718,679 | 2,484,730 | 2,705,835 | 9.4 | % | 0.5 | % | |||||||||||||||||||||||||
Savings deposits | 3,350,856 | 3,302,418 | 3,334,305 | 1.5 | % | 0.5 | % | |||||||||||||||||||||||||
Time deposits | 3,169,141 | 3,791,362 | 3,321,309 | (16.4 | )% | (4.6 | )% | |||||||||||||||||||||||||
Total Deposits | $ | 12,355,616 | $ | 12,248,907 | $ | 12,330,226 | 0.9 | % | 0.2 | % | ||||||||||||||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||||||||||||||
Customer repurchase agreements | $ | 188,339 | $ | 226,216 | $ | 165,109 | (16.7 | )% | 14.1 | % | ||||||||||||||||||||||
Customer short-term promissory notes | 98,207 | 146,307 | 112,041 | (32.9 | )% | (12.3 | )% | |||||||||||||||||||||||||
Federal funds purchased | 776,603 | 564,377 | 709,779 | 37.6 | % | 9.4 | % | |||||||||||||||||||||||||
Short-term FHLB advances | 250,275 | 25,000 | 45,193 | N/M | N/M | |||||||||||||||||||||||||||
Total Short-term Borrowings | $ | 1,313,424 | $ | 961,900 | $ | 1,032,122 | 36.5 | % | 27.3 | % | ||||||||||||||||||||||
N/M - Not Meaningful | ||||||||||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||||||
dollars in thousands | |||||||||||||||||||||||
Six Months ended June 30 | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Balance | Interest (1) | Yield/Rate | Balance | Interest (1) | Yield/Rate | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans, net of unearned income | $ | 12,393,670 | $ | 274,950 | 4.47 | % | $ | 11,974,519 | $ | 291,309 | 4.89 | % | |||||||||||
Taxable investment securities | 2,415,562 | 27,913 | 2.31 | % | 2,467,609 | 37,285 | 3.02 | % | |||||||||||||||
Tax-exempt investment securities | 286,281 | 7,422 | 5.19 | % | 289,230 | 8,149 | 5.63 | % | |||||||||||||||
Equity securities | 121,123 | 1,792 | 2.97 | % | 111,274 | 1,487 | 2.68 | % | |||||||||||||||
Total Investment Securities | 2,822,966 | 37,127 | 2.63 | % | 2,868,113 | 46,921 | 3.27 | % | |||||||||||||||
Loans held for sale | 45,005 | 879 | 3.91 | % | 48,145 | 969 | 4.02 | % | |||||||||||||||
Other interest-earning assets | 131,472 | 57 | 0.09 | % | 115,808 | 98 | 0.17 | % | |||||||||||||||
Total Interest-earning Assets | 15,393,113 | 313,013 | 4.10 | % | 15,006,585 | 339,297 | 4.55 | % | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||
Cash and due from banks | 204,308 | 247,891 | |||||||||||||||||||||
Premises and equipment | 226,189 | 214,725 | |||||||||||||||||||||
Other assets | 1,065,104 | 1,108,520 | |||||||||||||||||||||
Less: allowance for loan losses | (224,682 | ) | (262,709 | ) | |||||||||||||||||||
Total Assets | $ | 16,664,032 | $ | 16,315,012 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | $ | 2,712,292 | $ | 1,749 | 0.13 | % | $ | 2,474,591 | $ | 2,061 | 0.17 | % | |||||||||||
Savings deposits | 3,342,626 | 2,039 | 0.12 | % | 3,325,959 | 3,320 | 0.20 | % | |||||||||||||||
Time deposits | 3,244,805 | 16,111 | 1.00 | % | 3,871,636 | 25,612 | 1.33 | % | |||||||||||||||
Total Interest-bearing Deposits | 9,299,723 | 19,899 | 0.43 | % | 9,672,186 | 30,993 | 0.64 | % | |||||||||||||||
Short-term borrowings | 1,173,550 | 1,209 | 0.21 | % | 845,001 | 692 | 0.16 | % | |||||||||||||||
FHLB advances and long-term debt | 890,174 | 21,583 | 4.87 | % | 956,310 | 22,966 | 4.82 | % | |||||||||||||||
Total Interest-bearing Liabilities | 11,363,447 | 42,691 | 0.76 | % | 11,473,497 | 54,651 | 0.96 | % | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | 3,043,268 | 2,618,355 | |||||||||||||||||||||
Other | 189,357 | 191,696 | |||||||||||||||||||||
Total Liabilities | 14,596,072 | 14,283,548 | |||||||||||||||||||||
Shareholders' equity | 2,067,960 | 2,031,464 | |||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 16,664,032 | $ | 16,315,012 | |||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 270,322 | 3.54 | % | 284,646 | 3.81 | % | |||||||||||||||||
Tax equivalent adjustment | (8,613 | ) | (8,421 | ) | |||||||||||||||||||
Net interest income | $ | 261,709 | $ | 276,225 | |||||||||||||||||||
(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances. | |||||||||||||||||||||||
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | |||||||||||||||||||||||
Six months ended | |||||||||||||||||||||||
June 30 | |||||||||||||||||||||||
2013 | 2012 | % Change | |||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 4,712,530 | $ | 4,625,969 | 1.9 | % | |||||||||||||||||
Commercial - industrial, financial and agricultural | 3,688,767 | 3,557,731 | 3.7 | % | |||||||||||||||||||
Real estate - home equity | 1,697,634 | 1,605,633 | 5.7 | % | |||||||||||||||||||
Real estate - residential mortgage | 1,296,012 | 1,158,994 | 11.8 | % | |||||||||||||||||||
Real estate - construction | 604,531 | 640,928 | (5.7 | )% | |||||||||||||||||||
Consumer | 305,199 | 309,942 | (1.5 | )% | |||||||||||||||||||
Leasing and other | 88,997 | 75,322 | 18.2 | % | |||||||||||||||||||
Total Loans, net of unearned income | $ | 12,393,670 | $ | 11,974,519 | 3.5 | % | |||||||||||||||||
Deposits, by type: | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,043,268 | $ | 2,618,355 | 16.2 | % | |||||||||||||||||
Interest-bearing demand | 2,712,292 | 2,474,591 | 9.6 | % | |||||||||||||||||||
Savings deposits | 3,342,626 | 3,325,959 | 0.5 | % | |||||||||||||||||||
Time deposits | 3,244,805 | 3,871,636 | (16.2 | )% | |||||||||||||||||||
Total Deposits | $ | 12,342,991 | $ | 12,290,541 | 0.4 | % | |||||||||||||||||
Short-term borrowings, by type: | |||||||||||||||||||||||
Customer repurchase agreements | $ | 176,788 | $ | 213,379 | (17.1 | )% | |||||||||||||||||
Customer short-term promissory notes | 105,086 | 150,689 | (30.3 | )% | |||||||||||||||||||
Federal funds purchased | 743,376 | 464,175 | 60.1 | % | |||||||||||||||||||
Short-term FHLB advances | 148,300 | 16,758 | N/M | ||||||||||||||||||||
Total Short-term Borrowings | $ | 1,173,550 | $ | 845,001 | 38.9 | % | |||||||||||||||||
N/M - Not Meaningful | |||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
ASSET QUALITY INFORMATION (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Jun 30 | Jun 30 | Mar 31 | Jun 30 | Jun 30 | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2,013 | 2,012 | ||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 221,527 | $ | 258,137 | $ | 225,439 | $ | 225,439 | $ | 258,177 | ||||||||||||||||||||||
Loans charged off: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | (5,960 | ) | (13,017 | ) | (9,502 | ) | (15,462 | ) | (18,686 | ) | ||||||||||||||||||||||
Real estate - commercial mortgage | (5,193 | ) | (23,699 | ) | (4,133 | ) | (9,326 | ) | (35,590 | ) | ||||||||||||||||||||||
Real estate - residential mortgage | (4,465 | ) | (1,492 | ) | (3,050 | ) | (7,515 | ) | (2,339 | ) | ||||||||||||||||||||||
Real estate - construction | (2,597 | ) | (8,442 | ) | (1,986 | ) | (4,583 | ) | (17,013 | ) | ||||||||||||||||||||||
Real estate - home equity | (1,966 | ) | (2,789 | ) | (2,404 | ) | (4,370 | ) | (4,995 | ) | ||||||||||||||||||||||
Leasing and other | (769 | ) | (630 | ) | (481 | ) | (1,250 | ) | (1,071 | ) | ||||||||||||||||||||||
Consumer | (433 | ) | (471 | ) | (550 | ) | (983 | ) | (1,105 | ) | ||||||||||||||||||||||
Total loans charged off | (21,383 | ) | (50,540 | ) | (22,106 | ) | (43,489 | ) | (80,799 | ) | ||||||||||||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 756 | 717 | 379 | 1,135 | 1,353 | |||||||||||||||||||||||||||
Real estate - commercial mortgage | 1,505 | 1,153 | 1,064 | 2,569 | 1,969 | |||||||||||||||||||||||||||
Real estate - residential mortgage | 116 | 71 | 81 | 197 | 144 | |||||||||||||||||||||||||||
Real estate - construction | 744 | 1,539 | 671 | 1,415 | 1,603 | |||||||||||||||||||||||||||
Real estate - home equity | 192 | 278 | 331 | 523 | 298 | |||||||||||||||||||||||||||
Leasing and other | 263 | 180 | 162 | 425 | 440 | |||||||||||||||||||||||||||
Consumer | 406 | 281 | 506 | 912 | 631 | |||||||||||||||||||||||||||
Recoveries of loans previously charged off | 3,982 | 4,219 | 3,194 | 7,176 | 6,438 | |||||||||||||||||||||||||||
Net loans charged off | (17,401 | ) | (46,321 | ) | (18,912 | ) | (36,313 | ) | (74,361 | ) | ||||||||||||||||||||||
Provision for credit losses | 13,500 | 25,500 | 15,000 | 28,500 | 53,500 | |||||||||||||||||||||||||||
Balance at end of period | $ | 217,626 | $ | 237,316 | $ | 221,527 | $ | 217,626 | $ | 237,316 | ||||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.56 | % | 1.55 | % | 0.62 | % | 0.59 | % | 1.24 | % | ||||||||||||||||||||||
NON-PERFORMING ASSETS: | ||||||||||||||||||||||||||||||||
Non-accrual loans | $ | 164,039 | $ | 203,539 | $ | 179,334 | ||||||||||||||||||||||||||
Loans 90 days past due and accruing | 25,159 | 30,434 | 29,325 | |||||||||||||||||||||||||||||
Total non-performing loans | 189,198 | 233,973 | 208,659 | |||||||||||||||||||||||||||||
Other real estate owned | 20,984 | 32,338 | 23,820 | |||||||||||||||||||||||||||||
Total non-performing assets | $ | 210,182 | $ | 266,311 | $ | 232,479 | ||||||||||||||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | $ | 57,219 | $ | 67,969 | $ | 61,113 | ||||||||||||||||||||||||||
Real estate - commercial mortgage | 49,429 | 82,179 | 58,805 | |||||||||||||||||||||||||||||
Real estate - residential mortgage | 30,660 | 25,373 | 36,361 | |||||||||||||||||||||||||||||
Real estate - construction | 29,964 | 43,124 | 31,919 | |||||||||||||||||||||||||||||
Real estate - home equity | 19,046 | 12,260 | 17,468 | |||||||||||||||||||||||||||||
Consumer | 2,780 | 2,672 | 2,782 | |||||||||||||||||||||||||||||
Leasing | 100 | 396 | 211 | |||||||||||||||||||||||||||||
Total non-performing loans | $ | 189,198 | $ | 233,973 | $ | 208,659 | ||||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE: | ||||||||||||||||||||||||||||||||
Real-estate - residential mortgage | $ | 28,948 | $ | 33,516 | $ | 33,095 | ||||||||||||||||||||||||||
Real-estate - commercial mortgage | 24,828 | 32,481 | 28,421 | |||||||||||||||||||||||||||||
Real estate - construction | 10,599 | 10,030 | 11,125 | |||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 8,394 | 4,806 | 9,031 | |||||||||||||||||||||||||||||
Real estate - home equity | 1,549 | 620 | 1,537 | |||||||||||||||||||||||||||||
Consumer | 13 | — | 12 | |||||||||||||||||||||||||||||
Total accruing TDRs | $ | 74,331 | $ | 81,453 | $ | 83,221 | ||||||||||||||||||||||||||
Non-accrual TDRs (1) | 30,377 | 27,576 | 33,215 | |||||||||||||||||||||||||||||
Total TDRs | $ | 104,708 | $ | 109,029 | $ | 116,436 | ||||||||||||||||||||||||||
(1) Included within non-accrual loans above. | ||||||||||||||||||||||||||||||||
DELINQUENCY RATES, BY TYPE: | ||||||||||||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | March 31, 2013 | ||||||||||||||||||||||||||||||
31-89 Days | ≥90 Days (1) | Total | 31-89 Days | ≥90 Days (1) | Total | 31-89 Days | ≥90 Days (1) | Total | ||||||||||||||||||||||||
Real estate - commercial mortgage | 0.47 | % | 1.01 | % | 1.48 | % | 0.41 | % | 1.78 | % | 2.19 | % | 0.39 | % | 1.25 | % | 1.64 | % | ||||||||||||||
Commercial - industrial, financial and agricultural | 0.41 | % | 1.54 | % | 1.95 | % | 0.66 | % | 1.91 | % | 2.57 | % | 0.35 | % | 1.67 | % | 2.02 | % | ||||||||||||||
Real estate - construction | 0.42 | % | 4.91 | % | 5.33 | % | 0.95 | % | 6.96 | % | 7.91 | % | 0.17 | % | 5.34 | % | 5.51 | % | ||||||||||||||
Real estate - residential mortgage | 2.12 | % | 2.33 | % | 4.45 | % | 2.94 | % | 2.15 | % | 5.09 | % | 2.07 | % | 2.79 | % | 4.86 | % | ||||||||||||||
Real estate - home equity | 0.68 | % | 1.08 | % | 1.76 | % | 0.83 | % | 0.76 | % | 1.59 | % | 0.69 | % | 1.03 | % | 1.72 | % | ||||||||||||||
Consumer, leasing and other | 1.47 | % | 0.74 | % | 2.21 | % | 1.61 | % | 0.79 | % | 2.40 | % | 1.38 | % | 0.75 | % | 2.13 | % | ||||||||||||||
Total | 0.68 | % | 1.50 | % | 2.18 | % | 0.86 | % | 1.95 | % | 2.81 | % | 0.62 | % | 1.68 | % | 2.30 | % | ||||||||||||||
(2) Includes non-accrual loans | ||||||||||||||||||||||||||||||||
ASSET QUALITY RATIOS: | ||||||||||||||||||||||||||||||||
Jun 30 | Jun 30 | Mar 31 | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | ||||||||||||||||||||||||||||||
Non-accrual loans to total loans | 1.30 | % | 1.70 | % | 1.45 | % | ||||||||||||||||||||||||||
Non-performing assets to total loans and OREO | 1.66 | % | 2.22 | % | 1.87 | % | ||||||||||||||||||||||||||
Non-performing assets to total assets | 1.23 | % | 1.63 | % | 1.39 | % | ||||||||||||||||||||||||||
Allowance for credit losses to loans outstanding | 1.72 | % | 1.98 | % | 1.79 | % | ||||||||||||||||||||||||||
Allowance for credit losses to non-performing loans | 115.03 | % | 101.43 | % | 106.17 | % | ||||||||||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 12.28 | % | 15.34 | % | 13.30 | % | ||||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (UNAUDITED) | |||||||||||||||||||||||||
in thousands, except per share data and percentages | |||||||||||||||||||||||||
Explanatory note: | This press release contains certain financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's quarterly results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow: | ||||||||||||||||||||||||
Quarter Ended | Six Months Ended | ||||||||||||||||||||||||
Jun 30 | Jun 30 | March 31 | Jun 30 | Jun 30 | |||||||||||||||||||||
2013 | 2012 | 2013 | 2013 | 2012 | |||||||||||||||||||||
Shareholders' equity (tangible), per share | |||||||||||||||||||||||||
Shareholders' equity | $ | 2,028,732 | $ | 2,041,184 | $ | 2,061,763 | |||||||||||||||||||
Less: Goodwill and intangible assets | (534,452 | ) | (542,622 | ) | (534,987 | ) | |||||||||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,494,280 | $ | 1,498,562 | $ | 1,526,776 | |||||||||||||||||||
Shares outstanding, end of period (denominator) | 193,658 | 200,880 | 195,276 | ||||||||||||||||||||||
Shareholders' equity (tangible), per share | $ | 7.72 | $ | 7.46 | $ | 7.82 | |||||||||||||||||||
Return on average common shareholders' equity (tangible) | |||||||||||||||||||||||||
Net income | $ | 40,582 | $ | 39,891 | $ | 39,227 | $ | 79,809 | $ | 78,023 | |||||||||||||||
Plus: Intangible amortization, net of tax | 348 | 495 | 347 | 695 | 1,015 | ||||||||||||||||||||
Net income, less intangible amortization, net of tax (numerator) | $ | 40,930 | $ | 40,386 | $ | 39,574 | $ | 80,504 | $ | 79,038 | |||||||||||||||
Average shareholders' equity | $ | 2,062,483 | $ | 2,046,317 | $ | 2,073,498 | $ | 2,067,960 | $ | 2,031,464 | |||||||||||||||
Less: Average goodwill and intangible assets | (534,713 | ) | (542,998 | ) | (535,255 | ) | (534,982 | ) | (543,388 | ) | |||||||||||||||
Average tangible shareholders' equity (denominator) | $ | 1,527,770 | $ | 1,503,319 | $ | 1,538,243 | $ | 1,532,978 | $ | 1,488,076 | |||||||||||||||
Return on average common shareholders' equity (tangible), annualized | 10.75 | % | 10.80 | % | 10.43 | % | 10.59 | % | 10.68 | % | |||||||||||||||
Efficiency ratio | |||||||||||||||||||||||||
Non-interest expense | $ | 117,130 | $ | 112,087 | $ | 110,936 | $ | 228,066 | $ | 222,756 | |||||||||||||||
Less: Intangible amortization | (535 | ) | (761 | ) | (534 | ) | (1,069 | ) | (1,562 | ) | |||||||||||||||
Numerator | $ | 116,595 | $ | 111,326 | $ | 110,402 | $ | 226,997 | $ | 221,194 | |||||||||||||||
Net interest income (fully taxable equivalent) | $ | 136,407 | $ | 141,714 | $ | 133,915 | $ | 270,322 | $ | 284,646 | |||||||||||||||
Plus: Total Non-interest income | 52,316 | 53,308 | 47,259 | 99,575 | 104,946 | ||||||||||||||||||||
Less: Investment securities gains | (2,865 | ) | (1,538 | ) | (2,473 | ) | (5,338 | ) | (2,789 | ) | |||||||||||||||
Denominator | $ | 185,858 | $ | 193,484 | $ | 178,701 | $ | 364,559 | $ | 386,803 | |||||||||||||||
Efficiency ratio | 62.73 | % | 57.54 | % | 61.78 | % | 62.27 | % | 57.19 | % | |||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | |||||||||||||||||||||||||
Non-performing assets (numerator) | $ | 210,182 | $ | 266,311 | $ | 232,479 | |||||||||||||||||||
Tangible shareholders' equity | $ | 1,494,280 | $ | 1,498,562 | $ | 1,526,776 | |||||||||||||||||||
Plus: Allowance for credit losses | 217,626 | 237,316 | 221,527 | ||||||||||||||||||||||
Tangible shareholders' equity and allowance for credit losses (denominator) | $ | 1,711,906 | $ | 1,735,878 | $ | 1,748,303 | |||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 12.28 | % | 15.34 | % | 13.30 | % | |||||||||||||||||||