Attached files
| file | filename |
|---|---|
| EX-99.1 - EARNINGS RELEASE DATED JULY 22, 2014 - FULTON FINANCIAL CORP | exhibit9916-30x14.htm |
| 8-K - 8-K - FULTON FINANCIAL CORP | a8-k6x30x14.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 | ||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | ||||||||||||||
ASSETS | ||||||||||||||||||
Cash and due from banks | $ | 258,837 | $ | 219,944 | $ | 260,389 | 17.7 | % | (0.6 | )% | ||||||||
Other interest-earning assets | 305,518 | 225,398 | 307,062 | 35.5 | % | (0.5 | )% | |||||||||||
Loans held for sale | 36,079 | 60,909 | 24,417 | (40.8 | )% | 47.8 | % | |||||||||||
Investment securities | 2,497,776 | 2,819,192 | 2,501,198 | (11.4 | )% | (0.1 | )% | |||||||||||
Loans, net of unearned income | 12,839,511 | 12,645,418 | 12,733,792 | 1.5 | % | 0.8 | % | |||||||||||
Allowance for loan losses | (191,685 | ) | (216,431 | ) | (197,089 | ) | (11.4 | )% | (2.7 | )% | ||||||||
Net loans | 12,647,826 | 12,428,987 | 12,536,703 | 1.8 | % | 0.9 | % | |||||||||||
Premises and equipment | 225,168 | 224,418 | 225,647 | 0.3 | % | (0.2 | )% | |||||||||||
Accrued interest receivable | 42,116 | 45,713 | 43,376 | (7.9 | )% | (2.9 | )% | |||||||||||
Goodwill and intangible assets | 532,432 | 534,452 | 532,747 | (0.4 | )% | (0.1 | )% | |||||||||||
Other assets | 487,887 | 463,397 | 480,350 | 5.3 | % | 1.6 | % | |||||||||||
Total Assets | $ | 17,033,639 | $ | 17,022,410 | $ | 16,911,889 | 0.1 | % | 0.7 | % | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Deposits | $ | 12,693,659 | $ | 12,257,809 | $ | 12,669,917 | 3.6 | % | 0.2 | % | ||||||||
Short-term borrowings | 1,008,307 | 1,620,318 | 1,069,684 | (37.8 | )% | (5.7 | )% | |||||||||||
Other liabilities | 263,478 | 226,384 | 230,108 | 16.4 | % | 14.5 | % | |||||||||||
FHLB advances and long-term debt | 968,395 | 889,167 | 883,461 | 8.9 | % | 9.6 | % | |||||||||||
Total Liabilities | 14,933,839 | 14,993,678 | 14,853,170 | (0.4 | )% | 0.5 | % | |||||||||||
Shareholders' equity | 2,099,800 | 2,028,732 | 2,058,719 | 3.5 | % | 2.0 | % | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,033,639 | $ | 17,022,410 | $ | 16,911,889 | 0.1 | % | 0.7 | % | ||||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||
Loans, by type: | ||||||||||||||||||
Real estate - commercial mortgage | $ | 5,128,734 | $ | 4,856,916 | $ | 5,137,454 | 5.6 | % | (0.2 | )% | ||||||||
Commercial - industrial, financial and agricultural | 3,601,721 | 3,712,974 | 3,574,130 | (3.0 | )% | 0.8 | % | |||||||||||
Real estate - home equity | 1,730,497 | 1,760,268 | 1,740,496 | (1.7 | )% | (0.6 | )% | |||||||||||
Real estate - residential mortgage | 1,361,976 | 1,313,345 | 1,331,465 | 3.7 | % | 2.3 | % | |||||||||||
Real estate - construction | 634,018 | 610,280 | 584,217 | 3.9 | % | 8.5 | % | |||||||||||
Consumer | 280,557 | 300,233 | 270,021 | (6.6 | )% | 3.9 | % | |||||||||||
Leasing and other | 102,008 | 91,402 | 96,009 | 11.6 | % | 6.2 | % | |||||||||||
Total Loans, net of unearned income | $ | 12,839,511 | $ | 12,645,418 | $ | 12,733,792 | 1.5 | % | 0.8 | % | ||||||||
Deposits, by type: | ||||||||||||||||||
Noninterest-bearing demand | $ | 3,484,125 | $ | 3,168,781 | $ | 3,359,900 | 10.0 | % | 3.7 | % | ||||||||
Interest-bearing demand | 2,855,511 | 2,714,545 | 2,960,577 | 5.2 | % | (3.5 | )% | |||||||||||
Savings deposits | 3,338,018 | 3,272,557 | 3,346,880 | 2.0 | % | (0.3 | )% | |||||||||||
Time deposits | 3,016,005 | 3,101,926 | 3,002,560 | (2.8 | )% | 0.4 | % | |||||||||||
Total Deposits | $ | 12,693,659 | $ | 12,257,809 | $ | 12,669,917 | 3.6 | % | 0.2 | % | ||||||||
Short-term borrowings, by type: | ||||||||||||||||||
Customer repurchase agreements | $ | 212,930 | $ | 196,188 | $ | 220,426 | 8.5 | % | (3.4 | )% | ||||||||
Customer short-term promissory notes | 86,366 | 93,671 | 88,160 | (7.8 | )% | (2.0 | )% | |||||||||||
Federal funds purchased | 384,011 | 780,459 | 361,098 | (50.8 | )% | 6.3 | % | |||||||||||
Short-term FHLB advances | 325,000 | 550,000 | 400,000 | (40.9 | )% | (18.8 | )% | |||||||||||
Total Short-term Borrowings | $ | 1,008,307 | $ | 1,620,318 | $ | 1,069,684 | (37.8 | )% | (5.7 | )% | ||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||||||||||||||||
in thousands, except per-share data and percentages | ||||||||||||||||||||||||||||||||
Three Months Ended | % Change from | Six Months Ended | ||||||||||||||||||||||||||||||
June 30 | June 30 | March 31 | Jun 30 | Mar 31 | June 30 | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2014 | 2013 | % Change | |||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||||||||
Interest income | $ | 147,902 | $ | 153,078 | $ | 148,792 | (3.4 | )% | (0.6 | )% | $ | 296,694 | $ | 304,400 | (2.5 | )% | ||||||||||||||||
Interest expense | 20,004 | 21,013 | 19,227 | (4.8 | )% | 4.0 | % | 39,231 | 42,691 | (8.1 | )% | |||||||||||||||||||||
Net Interest Income | 127,898 | 132,065 | 129,565 | (3.2 | )% | (1.3 | )% | 257,463 | 261,709 | (1.6 | )% | |||||||||||||||||||||
Provision for credit losses | 3,500 | 13,500 | 2,500 | (74.1 | )% | 40.0 | % | 6,000 | 28,500 | (78.9 | )% | |||||||||||||||||||||
Net Interest Income after Provision | 124,398 | 118,565 | 127,065 | 4.9 | % | (2.1 | )% | 251,463 | 233,209 | 7.8 | % | |||||||||||||||||||||
Non-Interest Income: | ||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 12,552 | 14,651 | 11,711 | (14.3 | )% | 7.2 | % | 24,263 | 28,762 | (15.6 | )% | |||||||||||||||||||||
Investment management and trust services | 11,339 | 10,601 | 10,958 | 7.0 | % | 3.5 | % | 22,297 | 20,697 | 7.7 | % | |||||||||||||||||||||
Other service charges and fees | 10,526 | 9,508 | 8,927 | 10.7 | % | 17.9 | % | 19,453 | 18,018 | 8.0 | % | |||||||||||||||||||||
Mortgage banking income | 5,741 | 10,997 | 3,605 | (47.8 | )% | 59.3 | % | 9,346 | 19,170 | (51.2 | )% | |||||||||||||||||||||
Investment securities gains | 1,112 | 2,865 | — | (61.2 | )% | N/M | 1,112 | 5,338 | (79.2 | )% | ||||||||||||||||||||||
Other | 3,602 | 3,694 | 3,305 | (2.5 | )% | 9.0 | % | 6,907 | 7,590 | (9.0 | )% | |||||||||||||||||||||
Total Non-Interest Income | 44,872 | 52,316 | 38,506 | (14.2 | )% | 16.5 | % | 83,378 | 99,575 | (16.3 | )% | |||||||||||||||||||||
Non-Interest Expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | 63,623 | 63,490 | 59,566 | 0.2 | % | 6.8 | % | 123,189 | 124,702 | (1.2 | )% | |||||||||||||||||||||
Net occupancy expense | 11,464 | 11,447 | 13,603 | 0.1 | % | (15.7 | )% | 25,067 | 23,291 | 7.6 | % | |||||||||||||||||||||
Other outside services | 7,240 | 5,315 | 3,812 | 36.2 | % | 89.9 | % | 11,052 | 8,175 | 35.2 | % | |||||||||||||||||||||
Data processing | 4,331 | 4,509 | 3,796 | (3.9 | )% | 14.1 | % | 8,127 | 8,412 | (3.4 | )% | |||||||||||||||||||||
Professional fees | 3,559 | 3,395 | 2,904 | 4.8 | % | 22.6 | % | 6,463 | 6,442 | 0.3 | % | |||||||||||||||||||||
Equipment expense | 3,360 | 3,893 | 3,602 | (13.7 | )% | (6.7 | )% | 6,962 | 7,801 | (10.8 | )% | |||||||||||||||||||||
Software | 3,209 | 3,094 | 2,925 | 3.7 | % | 9.7 | % | 6,134 | 5,842 | 5.0 | % | |||||||||||||||||||||
FDIC insurance expense | 2,615 | 3,001 | 2,689 | (12.9 | )% | (2.8 | )% | 5,304 | 5,848 | (9.3 | )% | |||||||||||||||||||||
Marketing | 2,337 | 1,922 | 1,584 | 21.6 | % | 47.5 | % | 3,921 | 3,794 | 3.3 | % | |||||||||||||||||||||
Other real estate owned and repossession expense | 748 | 1,941 | 983 | (61.5 | )% | (23.9 | )% | 1,731 | 4,795 | (63.9 | )% | |||||||||||||||||||||
Operating risk loss | 716 | 1,860 | 1,828 | (61.5 | )% | (60.8 | )% | 2,544 | 3,626 | (29.8 | )% | |||||||||||||||||||||
Intangible amortization | 315 | 535 | 315 | (41.1 | )% | — | % | 630 | 1,069 | (41.1 | )% | |||||||||||||||||||||
Other | 12,657 | 12,728 | 11,947 | (0.6 | )% | 5.9 | % | 24,604 | 24,269 | 1.4 | % | |||||||||||||||||||||
Total Non-Interest Expense | 116,174 | 117,130 | 109,554 | (0.8 | )% | 6.0 | % | 225,728 | 228,066 | (1.0 | )% | |||||||||||||||||||||
Income Before Income Taxes | 53,096 | 53,751 | 56,017 | (1.2 | )% | (5.2 | )% | 109,113 | 104,718 | 4.2 | % | |||||||||||||||||||||
Income tax expense | 13,500 | 13,169 | 14,234 | 2.5 | % | (5.2 | )% | 27,734 | 24,909 | 11.3 | % | |||||||||||||||||||||
Net Income | $ | 39,596 | $ | 40,582 | $ | 41,783 | (2.4 | )% | (5.2 | )% | $ | 81,379 | $ | 79,809 | 2.0 | % | ||||||||||||||||
PER SHARE: | ||||||||||||||||||||||||||||||||
Net income: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.21 | $ | 0.22 | — | % | (4.5 | )% | $ | 0.43 | $ | 0.41 | 4.9 | % | ||||||||||||||||
Diluted | 0.21 | 0.21 | 0.22 | — | % | (4.5 | )% | 0.43 | 0.41 | 4.9 | % | |||||||||||||||||||||
Cash dividends | $ | 0.08 | $ | 0.08 | $ | 0.08 | — | % | — | % | $ | 0.16 | $ | 0.16 | — | % | ||||||||||||||||
Shareholders' equity | 11.11 | 10.48 | 10.90 | 6.0 | % | 1.9 | % | 11.11 | 10.48 | 6.0 | % | |||||||||||||||||||||
Shareholders' equity (tangible) | 8.29 | 7.72 | 8.08 | 7.4 | % | 2.6 | % | 8.29 | 7.72 | 7.4 | % | |||||||||||||||||||||
Weighted average shares (basic) | 188,139 | 193,273 | 189,467 | (2.7 | )% | (0.7 | )% | 188,799 | 194,777 | (3.1 | )% | |||||||||||||||||||||
Weighted average shares (diluted) | 189,182 | 194,346 | 190,489 | (2.7 | )% | (0.7 | )% | 189,832 | 195,773 | (3.0 | )% | |||||||||||||||||||||
Shares outstanding, end of period | 189,033 | 193,658 | 188,850 | (2.4 | )% | 0.1 | % | 189,033 | 193,658 | (2.4 | )% | |||||||||||||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||||||||||||||||||
Return on average assets | 0.94 | % | 0.97 | % | 1.01 | % | 0.97 | % | 0.97 | % | ||||||||||||||||||||||
Return on average shareholders' equity | 7.63 | % | 7.89 | % | 8.21 | % | 7.92 | % | 7.78 | % | ||||||||||||||||||||||
Return on average shareholders' equity (tangible) | 10.30 | % | 10.75 | % | 11.13 | % | 10.71 | % | 10.59 | % | ||||||||||||||||||||||
Net interest margin | 3.41 | % | 3.52 | % | 3.47 | % | 3.44 | % | 3.54 | % | ||||||||||||||||||||||
Efficiency ratio | 65.85 | % | 62.73 | % | 63.38 | % | 64.63 | % | 62.27 | % | ||||||||||||||||||||||
N/M - Not Meaningful | ||||||||||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | March 31, 2014 | ||||||||||||||||||||||||||||||
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 | $ | 12,795,747 | $ | 134,387 | 4.21% | $ | 12,528,562 | $ | 138,002 | 4.42% | $ | 12,762,357 | $ | 134,744 | 4.28% | |||||||||||||||||
Taxable investment securities | 2,211,004 | 12,418 | 2.25% | 2,410,004 | 14,516 | 2.41% | 2,257,773 | 13,266 | 2.35% | |||||||||||||||||||||||
Tax-exempt investment securities | 270,482 | 3,534 | 5.23% | 280,508 | 3,608 | 5.15% | 279,278 | 3,613 | 5.17% | |||||||||||||||||||||||
Equity securities | 33,922 | 419 | 4.95% | 40,778 | 471 | 4.63% | 33,922 | 429 | 5.11% | |||||||||||||||||||||||
Total Investment Securities | 2,515,408 | 16,371 | 2.60% | 2,731,290 | 18,595 | 2.72% | 2,570,973 | 17,308 | 2.70% | |||||||||||||||||||||||
Loans held for sale | 17,540 | 214 | 4.87% | 42,158 | 384 | 3.64% | 13,426 | 134 | 4.00% | |||||||||||||||||||||||
Other interest-earning assets | 238,921 | 1,207 | 2.02% | 226,662 | 439 | 0.77% | 258,803 | 882 | 1.36% | |||||||||||||||||||||||
Total Interest-earning Assets | 15,567,616 | 152,179 | 3.92% | 15,528,672 | 157,420 | 4.07% | 15,605,559 | 153,068 | 3.97% | |||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||
Cash and due from banks | 198,291 | 206,090 | 199,641 | |||||||||||||||||||||||||||||
Premises and equipment | 224,586 | 225,915 | 226,295 | |||||||||||||||||||||||||||||
Other assets | 1,037,654 | 1,061,448 | 1,032,071 | |||||||||||||||||||||||||||||
Less: allowance for loan losses | (196,462 | ) | (221,541 | ) | (203,201 | ) | ||||||||||||||||||||||||||
Total Assets | $ | 16,831,685 | $ | 16,800,584 | $ | 16,860,365 | ||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | $ | 2,914,887 | $ | 904 | 0.12% | $ | 2,718,679 | $ | 872 | 0.13% | $ | 2,945,211 | $ | 909 | 0.13% | |||||||||||||||||
Savings deposits | 3,355,929 | 1,031 | 0.12% | 3,350,856 | 1,016 | 0.12% | 3,351,871 | 1,035 | 0.13% | |||||||||||||||||||||||
Time deposits | 3,012,061 | 6,750 | 0.90% | 3,169,141 | 7,610 | 0.96% | 2,932,456 | 5,952 | 0.82% | |||||||||||||||||||||||
Total Interest-bearing Deposits | 9,282,877 | 8,685 | 0.38% | 9,238,676 | 9,498 | 0.41% | 9,229,538 | 7,896 | 0.35% | |||||||||||||||||||||||
Short-term borrowings | 1,047,684 | 540 | 0.21% | 1,313,424 | 700 | 0.21% | 1,208,953 | 633 | 0.21% | |||||||||||||||||||||||
FHLB advances and long-term debt | 894,511 | 10,779 | 4.83% | 889,186 | 10,815 | 4.87% | 883,532 | 10,698 | 4.88% | |||||||||||||||||||||||
Total Interest-bearing Liabilities | 11,225,072 | 20,004 | 0.71% | 11,441,286 | 21,013 | 0.74% | 11,322,023 | 19,227 | 0.69% | |||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | 3,322,195 | 3,116,940 | 3,243,424 | |||||||||||||||||||||||||||||
Other | 202,520 | 179,875 | 232,004 | |||||||||||||||||||||||||||||
Total Liabilities | 14,749,787 | 14,738,101 | 14,797,451 | |||||||||||||||||||||||||||||
Shareholders' equity | 2,081,898 | 2,062,483 | 2,062,914 | |||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 16,831,685 | $ | 16,800,584 | $ | 16,860,365 | ||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 132,175 | 3.41% | 136,407 | 3.52% | 133,841 | 3.47% | ||||||||||||||||||||||||||
Tax equivalent adjustment | (4,277 | ) | (4,342 | ) | (4,276 | ) | ||||||||||||||||||||||||||
Net interest income | $ | 127,898 | $ | 132,065 | $ | 129,565 | ||||||||||||||||||||||||||
(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: | ||||||||||||||||||||||||||||||||
Three Months Ended | % Change from | |||||||||||||||||||||||||||||||
June 30 | June 30 | March 31 | June 30 | March 31 | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 5,138,537 | $ | 4,758,060 | $ | 5,085,128 | 8.0 | % | 1.1 | % | ||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 3,617,977 | 3,714,683 | 3,637,075 | (2.6 | )% | (0.5 | )% | |||||||||||||||||||||||||
Real estate - home equity | 1,735,767 | 1,732,704 | 1,755,346 | 0.2 | % | (1.1 | )% | |||||||||||||||||||||||||
Real estate - residential mortgage | 1,339,034 | 1,308,713 | 1,336,323 | 2.3 | % | 0.2 | % | |||||||||||||||||||||||||
Real estate - construction | 588,176 | 617,577 | 576,346 | (4.8 | )% | 2.1 | % | |||||||||||||||||||||||||
Consumer | 276,444 | 304,918 | 274,910 | (9.3 | )% | 0.6 | % | |||||||||||||||||||||||||
Leasing and other | 99,812 | 91,907 | 97,229 | 8.6 | % | 2.7 | % | |||||||||||||||||||||||||
Total Loans, net of unearned income | $ | 12,795,747 | $ | 12,528,562 | $ | 12,762,357 | 2.1 | % | 0.3 | % | ||||||||||||||||||||||
Deposits, by type: | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,322,195 | $ | 3,116,940 | $ | 3,243,424 | 6.6 | % | 2.4 | % | ||||||||||||||||||||||
Interest-bearing demand | 2,914,887 | 2,718,679 | 2,945,211 | 7.2 | % | (1.0 | )% | |||||||||||||||||||||||||
Savings deposits | 3,355,929 | 3,350,856 | 3,351,871 | 0.2 | % | 0.1 | % | |||||||||||||||||||||||||
Time deposits | 3,012,061 | 3,169,141 | 2,932,456 | (5.0 | )% | 2.7 | % | |||||||||||||||||||||||||
Total Deposits | $ | 12,605,072 | $ | 12,355,616 | $ | 12,472,962 | 2.0 | % | 1.1 | % | ||||||||||||||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||||||||||||||
Customer repurchase agreements | $ | 216,212 | $ | 188,339 | $ | 187,362 | 14.8 | % | 15.4 | % | ||||||||||||||||||||||
Customer short-term promissory notes | 81,823 | 98,207 | 102,000 | (16.7 | )% | (19.8 | )% | |||||||||||||||||||||||||
Federal funds purchased | 444,429 | 776,603 | 416,230 | (42.8 | )% | 6.8 | % | |||||||||||||||||||||||||
Short-term FHLB advances and other borrowings | 305,220 | 250,275 | 503,361 | 22.0 | % | (39.4 | )% | |||||||||||||||||||||||||
Total Short-term Borrowings | $ | 1,047,684 | $ | 1,313,424 | $ | 1,208,953 | (20.2 | )% | (13.3 | )% | ||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||||||
dollars in thousands | |||||||||||||||||||||||
Six Months Ended June 30 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Balance | Interest (1) | Yield/Rate | Balance | Interest (1) | Yield/Rate | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans, net of unearned income | $ | 12,779,145 | $ | 269,131 | 4.24 | % | $ | 12,393,670 | $ | 274,950 | 4.47 | % | |||||||||||
Taxable investment securities | 2,234,259 | 25,684 | 2.30 | % | 2,415,562 | 27,913 | 2.31 | % | |||||||||||||||
Tax-exempt investment securities | 274,856 | 7,147 | 5.20 | % | 286,281 | 7,422 | 5.19 | % | |||||||||||||||
Equity securities | 33,922 | 848 | 5.03 | % | 42,565 | 981 | 4.64 | % | |||||||||||||||
Total Investment Securities | 2,543,037 | 33,679 | 2.65 | % | 2,744,408 | 36,316 | 2.65 | % | |||||||||||||||
Loans held for sale | 15,494 | 348 | 4.49 | % | 45,005 | 879 | 3.91 | % | |||||||||||||||
Other interest-earning assets | 248,807 | 2,089 | 1.68 | % | 208,718 | 868 | 0.83 | % | |||||||||||||||
Total Interest-earning Assets | 15,586,483 | 305,247 | 3.95 | % | 15,391,801 | 313,013 | 4.10 | % | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||
Cash and due from banks | 198,962 | 204,308 | |||||||||||||||||||||
Premises and equipment | 225,436 | 226,189 | |||||||||||||||||||||
Other assets | 1,034,877 | 1,066,416 | |||||||||||||||||||||
Less: allowance for loan losses | (199,813 | ) | (224,682 | ) | |||||||||||||||||||
Total Assets | $ | 16,845,945 | $ | 16,664,032 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | $ | 2,929,965 | $ | 1,813 | 0.12 | % | $ | 2,712,292 | $ | 1,749 | 0.13 | % | |||||||||||
Savings deposits | 3,353,910 | 2,066 | 0.12 | % | 3,342,626 | 2,039 | 0.12 | % | |||||||||||||||
Time deposits | 2,972,480 | 12,702 | 0.86 | % | 3,244,805 | 16,111 | 1.00 | % | |||||||||||||||
Total Interest-bearing Deposits | 9,256,355 | 16,581 | 0.36 | % | 9,299,723 | 19,899 | 0.43 | % | |||||||||||||||
Short-term borrowings | 1,127,872 | 1,173 | 0.21 | % | 1,173,550 | 1,209 | 0.21 | % | |||||||||||||||
FHLB advances and long-term debt | 889,051 | 21,477 | 4.85 | % | 890,174 | 21,583 | 4.87 | % | |||||||||||||||
Total Interest-bearing Liabilities | 11,273,278 | 39,231 | 0.70 | % | 11,363,447 | 42,691 | 0.76 | % | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | 3,283,027 | 3,043,268 | |||||||||||||||||||||
Other | 217,181 | 189,357 | |||||||||||||||||||||
Total Liabilities | 14,773,486 | 14,596,072 | |||||||||||||||||||||
Shareholders' equity | 2,072,459 | 2,067,960 | |||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 16,845,945 | $ | 16,664,032 | |||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 266,016 | 3.44 | % | 270,322 | 3.54 | % | |||||||||||||||||
Tax equivalent adjustment | (8,553 | ) | (8,613 | ) | |||||||||||||||||||
Net interest income | $ | 257,463 | $ | 261,709 | |||||||||||||||||||
(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 | |||||||||||||||||||||||
2014 | 2013 | % Change | |||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 5,111,979 | $ | 4,712,530 | 8.5 | % | |||||||||||||||||
Commercial - industrial, financial and agricultural | 3,627,471 | 3,688,767 | (1.7 | )% | |||||||||||||||||||
Real estate - home equity | 1,745,503 | 1,697,634 | 2.8 | % | |||||||||||||||||||
Real estate - residential mortgage | 1,337,686 | 1,296,012 | 3.2 | % | |||||||||||||||||||
Real estate - construction | 582,294 | 604,531 | (3.7 | )% | |||||||||||||||||||
Consumer | 275,682 | 305,199 | (9.7 | )% | |||||||||||||||||||
Leasing and other | 98,530 | 88,997 | 10.7 | % | |||||||||||||||||||
Total Loans, net of unearned income | $ | 12,779,145 | $ | 12,393,670 | 3.1 | % | |||||||||||||||||
Deposits, by type: | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,283,027 | $ | 3,043,268 | 7.9 | % | |||||||||||||||||
Interest-bearing demand | 2,929,965 | 2,712,292 | 8.0 | % | |||||||||||||||||||
Savings deposits | 3,353,910 | 3,342,626 | 0.3 | % | |||||||||||||||||||
Time deposits | 2,972,480 | 3,244,805 | (8.4 | )% | |||||||||||||||||||
Total Deposits | $ | 12,539,382 | $ | 12,342,991 | 1.6 | % | |||||||||||||||||
Short-term borrowings, by type: | |||||||||||||||||||||||
Customer repurchase agreements | $ | 201,866 | $ | 176,788 | 14.2 | % | |||||||||||||||||
Customer short-term promissory notes | 91,856 | 105,086 | (12.6 | )% | |||||||||||||||||||
Federal funds purchased | 430,407 | 743,376 | (42.1 | )% | |||||||||||||||||||
Short-term FHLB advances and other borrowings | 403,743 | 148,300 | 172.2 | % | |||||||||||||||||||
Total Short-term Borrowings | $ | 1,127,872 | $ | 1,173,550 | (3.9 | )% | |||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||
ASSET QUALITY INFORMATION (UNAUDITED) | ||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
Jun 30 | Jun 30 | Mar 31 | Jun 30 | Jun 30 | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2014 | 2013 | ||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 199,006 | $ | 221,527 | $ | 204,917 | 204,917 | 225,439 | ||||||||||||||||||||||
Loans charged off: | ||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | (5,512 | ) | (5,960 | ) | (5,125 | ) | (10,637 | ) | (15,462 | ) | ||||||||||||||||||||
Real estate - commercial mortgage | (2,141 | ) | (5,193 | ) | (1,386 | ) | (3,527 | ) | (9,326 | ) | ||||||||||||||||||||
Consumer and home equity | (1,683 | ) | (2,399 | ) | (2,402 | ) | (4,085 | ) | (5,353 | ) | ||||||||||||||||||||
Real estate - residential mortgage | (1,089 | ) | (4,465 | ) | (846 | ) | (1,935 | ) | (7,515 | ) | ||||||||||||||||||||
Real estate - construction | (218 | ) | (2,597 | ) | (214 | ) | (432 | ) | (4,583 | ) | ||||||||||||||||||||
Leasing and other | (833 | ) | (769 | ) | (295 | ) | (1,128 | ) | (1,250 | ) | ||||||||||||||||||||
Total loans charged off | (11,476 | ) | (21,383 | ) | (10,268 | ) | (21,744 | ) | (43,489 | ) | ||||||||||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 775 | 756 | 744 | 1,519 | 1,135 | |||||||||||||||||||||||||
Real estate - commercial mortgage | 430 | 1,505 | 44 | 474 | 2,569 | |||||||||||||||||||||||||
Consumer and home equity | 579 | 598 | 565 | 1,144 | 1,435 | |||||||||||||||||||||||||
Real estate - residential mortgage | 108 | 116 | 116 | 224 | 197 | |||||||||||||||||||||||||
Real estate - construction | 158 | 744 | 224 | 382 | 1,415 | |||||||||||||||||||||||||
Leasing and other | 362 | 263 | 164 | 526 | 425 | |||||||||||||||||||||||||
Recoveries of loans previously charged off | 2,412 | 3,982 | 1,857 | 4,269 | 7,176 | |||||||||||||||||||||||||
Net loans charged off | (9,064 | ) | (17,401 | ) | (8,411 | ) | (17,475 | ) | (36,313 | ) | ||||||||||||||||||||
Provision for credit losses | 3,500 | 13,500 | 2,500 | 6,000 | 28,500 | |||||||||||||||||||||||||
Balance at end of period | $ | 193,442 | $ | 217,626 | $ | 199,006 | 193,442 | 217,626 | ||||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.28 | % | 0.56 | % | 0.26 | % | 0.27 | % | 0.59 | % | ||||||||||||||||||||
NON-PERFORMING ASSETS: | ||||||||||||||||||||||||||||||
Non-accrual loans | $ | 129,934 | $ | 164,039 | $ | 133,705 | ||||||||||||||||||||||||
Loans 90 days past due and accruing | 19,378 | 25,159 | 21,225 | |||||||||||||||||||||||||||
Total non-performing loans | 149,312 | 189,198 | 154,930 | |||||||||||||||||||||||||||
Other real estate owned | 13,482 | 20,984 | 15,300 | |||||||||||||||||||||||||||
Total non-performing assets | $ | 162,794 | $ | 210,182 | $ | 170,230 | ||||||||||||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 44,015 | $ | 49,429 | $ | 45,876 | ||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 38,163 | 57,219 | 38,830 | |||||||||||||||||||||||||||
Real estate - residential mortgage | 27,887 | 30,660 | 29,305 | |||||||||||||||||||||||||||
Real estate - construction | 20,268 | 29,964 | 20,758 | |||||||||||||||||||||||||||
Consumer and home equity | 18,919 | 21,826 | 20,087 | |||||||||||||||||||||||||||
Leasing | 60 | 100 | 74 | |||||||||||||||||||||||||||
Total non-performing loans | $ | 149,312 | $ | 189,198 | $ | 154,930 | ||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE: | ||||||||||||||||||||||||||||||
Real-estate - residential mortgage | $ | 31,184 | $ | 28,948 | $ | 30,363 | ||||||||||||||||||||||||
Real-estate - commercial mortgage | 19,398 | 24,828 | 19,514 | |||||||||||||||||||||||||||
Real estate - construction | 8,561 | 10,599 | 8,430 | |||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 6,953 | 8,394 | 6,755 | |||||||||||||||||||||||||||
Consumer and home equity | 2,838 | 1,562 | 2,622 | |||||||||||||||||||||||||||
Total accruing TDRs | $ | 68,934 | $ | 74,331 | $ | 67,684 | ||||||||||||||||||||||||
Non-accrual TDRs (1) | 25,526 | 30,377 | 27,487 | |||||||||||||||||||||||||||
Total TDRs | $ | 94,460 | $ | 104,708 | $ | 95,171 | ||||||||||||||||||||||||
(1) Included within non-accrual loans above. | ||||||||||||||||||||||||||||||
DELINQUENCY RATES, BY TYPE: | ||||||||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | March 31, 2014 | ||||||||||||||||||||||||||||
31-89 Days | ≥90 Days (2) | Total | 31-89 Days | ≥90 Days (2) | Total | 31-89 Days | ≥90 Days (2) | Total | ||||||||||||||||||||||
Real estate - commercial mortgage | 0.30 | % | 0.86 | % | 1.16 | % | 0.47 | % | 1.01 | % | 1.48 | % | 0.35 | % | 0.89 | % | 1.24 | % | ||||||||||||
Commercial - industrial, financial and agricultural | 0.47 | % | 1.05 | % | 1.52 | % | 0.41 | % | 1.54 | % | 1.95 | % | 0.33 | % | 1.09 | % | 1.42 | % | ||||||||||||
Real estate - construction | 0.10 | % | 3.20 | % | 3.30 | % | 0.42 | % | 4.91 | % | 5.33 | % | 0.43 | % | 3.55 | % | 3.98 | % | ||||||||||||
Real estate - residential mortgage | 1.78 | % | 2.05 | % | 3.83 | % | 2.12 | % | 2.33 | % | 4.45 | % | 1.53 | % | 2.20 | % | 3.73 | % | ||||||||||||
Consumer, home equity, leasing and other | 0.84 | % | 0.90 | % | 1.74 | % | 0.82 | % | 1.02 | % | 1.84 | % | 0.89 | % | 0.96 | % | 1.85 | % | ||||||||||||
Total | 0.58 | % | 1.17 | % | 1.75 | % | 0.68 | % | 1.50 | % | 2.18 | % | 0.56 | % | 1.22 | % | 1.78 | % | ||||||||||||
(2) Includes non-accrual loans | ||||||||||||||||||||||||||||||
ASSET QUALITY RATIOS: | ||||||||||||||||||||||||||||||
Jun 30 | Jun 30 | Mar 31 | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | ||||||||||||||||||||||||||||
Non-accrual loans to total loans | 1.01 | % | 1.30 | % | 1.05 | % | ||||||||||||||||||||||||
Non-performing assets to total loans and OREO | 1.27 | % | 1.66 | % | 1.34 | % | ||||||||||||||||||||||||
Non-performing assets to total assets | 0.96 | % | 1.23 | % | 1.01 | % | ||||||||||||||||||||||||
Allowance for credit losses to loans outstanding | 1.51 | % | 1.72 | % | 1.56 | % | ||||||||||||||||||||||||
Allowance for credit losses to non-performing loans | 129.56 | % | 115.03 | % | 128.45 | % | ||||||||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.25 | % | 12.28 | % | 9.87 | % | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
Jun 30 | Jun 30 | Mar 31 | Jun 30 | Jun 30 | |||||||||||||||||||||
2014 | 2013 | 2014 | 2014 | 2013 | |||||||||||||||||||||
Shareholders' equity (tangible), per share | |||||||||||||||||||||||||
Shareholders' equity | $ | 2,099,800 | $ | 2,028,732 | $ | 2,058,719 | |||||||||||||||||||
Less: Goodwill and intangible assets | (532,432 | ) | (534,452 | ) | (532,747 | ) | |||||||||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,567,368 | $ | 1,494,280 | $ | 1,525,972 | |||||||||||||||||||
Shares outstanding, end of period (denominator) | 189,033 | 193,658 | 188,850 | ||||||||||||||||||||||
Shareholders' equity (tangible), per share | $ | 8.29 | $ | 7.72 | $ | 8.08 | |||||||||||||||||||
Return on average common shareholders' equity (tangible) | |||||||||||||||||||||||||
Net income | $ | 39,596 | $ | 40,582 | $ | 41,783 | $ | 81,379 | $ | 79,809 | |||||||||||||||
Plus: Intangible amortization, net of tax | 204 | 349 | 204 | 410 | 696 | ||||||||||||||||||||
Numerator | $ | 39,800 | $ | 40,931 | $ | 41,987 | $ | 81,789 | $ | 80,505 | |||||||||||||||
Average shareholders' equity | $ | 2,081,898 | $ | 2,062,483 | $ | 2,062,914 | $ | 2,072,459 | $ | 2,067,960 | |||||||||||||||
Less: Average goodwill and intangible assets | (532,585 | ) | (534,713 | ) | (532,901 | ) | (532,742 | ) | (534,982 | ) | |||||||||||||||
Average tangible shareholders' equity (denominator) | $ | 1,549,313 | $ | 1,527,770 | $ | 1,530,013 | $ | 1,539,717 | $ | 1,532,978 | |||||||||||||||
Return on average common shareholders' equity (tangible), annualized | 10.30 | % | 10.75 | % | 11.13 | % | 10.71 | % | 10.59 | % | |||||||||||||||
Efficiency ratio | |||||||||||||||||||||||||
Non-interest expense | $ | 116,174 | $ | 117,130 | $ | 109,554 | $ | 225,728 | $ | 228,066 | |||||||||||||||
Less: Intangible amortization | (315 | ) | (535 | ) | (315 | ) | (630 | ) | (1,069 | ) | |||||||||||||||
Numerator | $ | 115,859 | $ | 116,595 | $ | 109,239 | $ | 225,098 | $ | 226,997 | |||||||||||||||
Net interest income (fully taxable equivalent) | $ | 132,175 | $ | 136,407 | $ | 133,841 | $ | 266,016 | $ | 270,322 | |||||||||||||||
Plus: Total Non-interest income | 44,872 | 52,316 | 38,506 | 83,378 | 99,575 | ||||||||||||||||||||
Less: Investment securities gains | (1,112 | ) | (2,865 | ) | — | (1,112 | ) | (5,338 | ) | ||||||||||||||||
Denominator | $ | 175,935 | $ | 185,858 | $ | 172,347 | $ | 348,282 | $ | 364,559 | |||||||||||||||
Efficiency ratio | 65.85 | % | 62.73 | % | 63.38 | % | 64.64 | % | 62.27 | % | |||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | |||||||||||||||||||||||||
Non-performing assets (numerator) | $ | 162,794 | $ | 210,182 | $ | 170,230 | |||||||||||||||||||
Tangible shareholders' equity | $ | 1,567,368 | $ | 1,494,280 | $ | 1,525,972 | |||||||||||||||||||
Plus: Allowance for credit losses | 193,442 | 217,626 | 199,006 | ||||||||||||||||||||||
Tangible shareholders' equity and allowance for credit losses (denominator) | $ | 1,760,810 | $ | 1,711,906 | $ | 1,724,978 | |||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.25 | % | 12.28 | % | 9.87 | % | |||||||||||||||||||