Attached files
| file | filename |
|---|---|
| 8-K - 8-K - FULTON FINANCIAL CORP | a8-k9x30x14.htm |
| EX-99.1 - EARNINGS RELEASE DATED OCTOBER 21, 2014 - FULTON FINANCIAL CORP | exhibit9919-30x14.htm |
Exhibit 99.2 | ||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||
dollars in thousands | ||||||||||||||||||
% Change from | ||||||||||||||||||
September 30 | September 30 | June 30 | September 30 | June 30 | ||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | ||||||||||||||
ASSETS | ||||||||||||||||||
Cash and due from banks | $ | 220,946 | $ | 262,938 | $ | 258,837 | (16.0 | )% | (14.6 | )% | ||||||||
Other interest-earning assets | 377,579 | 308,924 | 305,518 | 22.2 | % | 23.6 | % | |||||||||||
Loans held for sale | 25,212 | 39,273 | 36,079 | (35.8 | )% | (30.1 | )% | |||||||||||
Investment securities | 2,470,609 | 2,597,435 | 2,497,776 | (4.9 | )% | (1.1 | )% | |||||||||||
Loans, net of unearned income | 13,030,405 | 12,780,899 | 12,839,511 | 2.0 | % | 1.5 | % | |||||||||||
Allowance for loan losses | (189,477 | ) | (210,486 | ) | (191,685 | ) | (10.0 | )% | (1.2 | )% | ||||||||
Net loans | 12,840,928 | 12,570,413 | 12,647,826 | 2.2 | % | 1.5 | % | |||||||||||
Premises and equipment | 224,441 | 227,299 | 225,168 | (1.3 | )% | (0.3 | )% | |||||||||||
Accrued interest receivable | 43,544 | 44,715 | 42,116 | (2.6 | )% | 3.4 | % | |||||||||||
Goodwill and intangible assets | 532,117 | 533,918 | 532,432 | (0.3 | )% | (0.1 | )% | |||||||||||
Other assets | 502,798 | 465,856 | 487,887 | 7.9 | % | 3.1 | % | |||||||||||
Total Assets | $ | 17,238,174 | $ | 17,050,771 | $ | 17,033,639 | 1.1 | % | 1.2 | % | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Deposits | $ | 13,333,627 | $ | 12,721,121 | $ | 12,693,659 | 4.8 | % | 5.0 | % | ||||||||
Short-term borrowings | 564,952 | 1,198,577 | 1,008,307 | (52.9 | )% | (44.0 | )% | |||||||||||
Other liabilities | 243,300 | 212,987 | 263,478 | 14.2 | % | (7.7 | )% | |||||||||||
FHLB advances and long-term debt | 1,018,289 | 889,122 | 968,395 | 14.5 | % | 5.2 | % | |||||||||||
Total Liabilities | 15,160,168 | 15,021,807 | 14,933,839 | 0.9 | % | 1.5 | % | |||||||||||
Shareholders' equity | 2,078,006 | 2,028,964 | 2,099,800 | 2.4 | % | (1.0 | )% | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,238,174 | $ | 17,050,771 | $ | 17,033,639 | 1.1 | % | 1.2 | % | ||||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||
Loans, by type: | ||||||||||||||||||
Real estate - commercial mortgage | $ | 5,156,979 | $ | 5,063,372 | $ | 5,128,734 | 1.8 | % | 0.6 | % | ||||||||
Commercial - industrial, financial and agricultural | 3,691,262 | 3,645,270 | 3,601,721 | 1.3 | % | 2.5 | % | |||||||||||
Real estate - home equity | 1,733,036 | 1,773,554 | 1,730,497 | (2.3 | )% | 0.1 | % | |||||||||||
Real estate - residential mortgage | 1,372,033 | 1,327,469 | 1,361,976 | 3.4 | % | 0.7 | % | |||||||||||
Real estate - construction | 687,728 | 577,342 | 634,018 | 19.1 | % | 8.5 | % | |||||||||||
Consumer | 278,219 | 296,142 | 280,557 | (6.1 | )% | (0.8 | )% | |||||||||||
Leasing and other | 111,148 | 97,749 | 102,008 | 13.7 | % | 9.0 | % | |||||||||||
Total Loans, net of unearned income | $ | 13,030,405 | $ | 12,780,898 | $ | 12,839,511 | 2.0 | % | 1.5 | % | ||||||||
Deposits, by type: | ||||||||||||||||||
Noninterest-bearing demand | $ | 3,556,810 | $ | 3,338,075 | $ | 3,484,125 | 6.6 | % | 2.1 | % | ||||||||
Interest-bearing demand | 3,164,514 | 2,986,549 | 2,855,511 | 6.0 | % | 10.8 | % | |||||||||||
Savings deposits | 3,620,919 | 3,371,923 | 3,338,018 | 7.4 | % | 8.5 | % | |||||||||||
Time deposits | 2,991,384 | 3,024,574 | 3,016,005 | (1.1 | )% | (0.8 | )% | |||||||||||
Total Deposits | $ | 13,333,627 | $ | 12,721,121 | $ | 12,693,659 | 4.8 | % | 5.0 | % | ||||||||
Short-term borrowings, by type: | ||||||||||||||||||
Customer repurchase agreements | $ | 195,121 | $ | 209,800 | $ | 212,930 | (7.0 | )% | (8.4 | )% | ||||||||
Customer short-term promissory notes | 78,225 | 95,503 | 86,366 | (18.1 | )% | (9.4 | )% | |||||||||||
Federal funds purchased | 6,606 | 493,274 | 384,011 | (98.7 | )% | (98.3 | )% | |||||||||||
Short-term FHLB advances | 285,000 | 400,000 | 325,000 | (28.8 | )% | (12.3 | )% | |||||||||||
Total Short-term Borrowings | $ | 564,952 | $ | 1,198,577 | $ | 1,008,307 | (52.9 | )% | (44.0 | )% | ||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||||||||||||||||
in thousands, except per-share data and percentages | ||||||||||||||||||||||||||||||||
Three Months Ended | % Change from | Nine Months Ended | ||||||||||||||||||||||||||||||
September 30 | September 30 | June 30 | Sep 30 | Jun 30 | September 30 | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2014 | 2013 | % Change | |||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||||||||
Interest income | $ | 149,790 | $ | 152,832 | $ | 147,902 | (2.0 | )% | 1.3 | % | $ | 446,484 | $ | 457,232 | (2.4 | )% | ||||||||||||||||
Interest expense | 20,424 | 20,299 | 20,004 | 0.6 | % | 2.1 | % | 59,655 | 62,990 | (5.3 | )% | |||||||||||||||||||||
Net Interest Income | 129,366 | 132,533 | 127,898 | (2.4 | )% | 1.1 | % | 386,829 | 394,242 | (1.9 | )% | |||||||||||||||||||||
Provision for credit losses | 3,500 | 9,500 | 3,500 | (63.2 | )% | — | % | 9,500 | 38,000 | (75.0 | )% | |||||||||||||||||||||
Net Interest Income after Provision | 125,866 | 123,033 | 124,398 | 2.3 | % | 1.2 | % | 377,329 | 356,242 | 5.9 | % | |||||||||||||||||||||
Non-Interest Income: | ||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 12,801 | 13,938 | 12,552 | (8.2 | )% | 2.0 | % | 37,064 | 42,700 | (13.2 | )% | |||||||||||||||||||||
Investment management and trust services | 11,120 | 10,420 | 11,339 | 6.7 | % | (1.9 | )% | 33,417 | 31,117 | 7.4 | % | |||||||||||||||||||||
Other service charges and fees | 9,954 | 9,518 | 10,526 | 4.6 | % | (5.4 | )% | 29,407 | 27,536 | 6.8 | % | |||||||||||||||||||||
Mortgage banking income | 4,038 | 7,123 | 5,741 | (43.3 | )% | (29.7 | )% | 13,384 | 26,293 | (49.1 | )% | |||||||||||||||||||||
Investment securities gains | 81 | 2,633 | 1,112 | (96.9 | )% | (92.7 | )% | 1,193 | 7,971 | (85.0 | )% | |||||||||||||||||||||
Other | 3,906 | 3,725 | 3,602 | 4.9 | % | 8.4 | % | 10,813 | 11,315 | (4.4 | )% | |||||||||||||||||||||
Total Non-Interest Income | 41,900 | 47,357 | 44,872 | (11.5 | )% | (6.6 | )% | 125,278 | 146,932 | (14.7 | )% | |||||||||||||||||||||
Non-Interest Expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | 62,434 | 63,344 | 63,623 | (1.4 | )% | (1.9 | )% | 185,623 | 188,046 | (1.3 | )% | |||||||||||||||||||||
Net occupancy expense | 11,582 | 11,519 | 11,464 | 0.5 | % | 1.0 | % | 36,649 | 34,810 | 5.3 | % | |||||||||||||||||||||
Other outside services | 8,632 | 5,048 | 7,240 | 71.0 | % | 19.2 | % | 19,684 | 13,223 | 48.9 | % | |||||||||||||||||||||
Data processing | 4,689 | 4,757 | 4,331 | (1.4 | )% | 8.3 | % | 12,816 | 13,169 | (2.7 | )% | |||||||||||||||||||||
Software | 3,353 | 3,268 | 3,209 | 2.6 | % | 4.5 | % | 9,487 | 9,110 | 4.1 | % | |||||||||||||||||||||
Equipment expense | 3,307 | 3,646 | 3,360 | (9.3 | )% | (1.6 | )% | 10,269 | 11,447 | (10.3 | )% | |||||||||||||||||||||
Professional fees | 3,252 | 3,329 | 3,559 | (2.3 | )% | (8.6 | )% | 9,715 | 9,771 | (0.6 | )% | |||||||||||||||||||||
FDIC insurance expense | 2,882 | 2,918 | 2,615 | (1.2 | )% | 10.2 | % | 8,186 | 8,766 | (6.6 | )% | |||||||||||||||||||||
Marketing | 1,798 | 2,251 | 2,337 | (20.1 | )% | (23.1 | )% | 5,719 | 6,045 | (5.4 | )% | |||||||||||||||||||||
Other real estate owned and repossession expense | 1,303 | 1,453 | 748 | (10.3 | )% | 74.2 | % | 3,034 | 6,248 | (51.4 | )% | |||||||||||||||||||||
Operating risk loss | 1,242 | 3,297 | 716 | (62.3 | )% | 73.5 | % | 3,786 | 6,923 | (45.3 | )% | |||||||||||||||||||||
Intangible amortization | 314 | 534 | 315 | (41.2 | )% | (0.3 | )% | 944 | 1,603 | (41.1 | )% | |||||||||||||||||||||
Other | 11,010 | 11,241 | 12,657 | (2.1 | )% | (13.0 | )% | 35,614 | 35,510 | 0.3 | % | |||||||||||||||||||||
Total Non-Interest Expense | 115,798 | 116,605 | 116,174 | (0.7 | )% | (0.3 | )% | 341,526 | 344,671 | (0.9 | )% | |||||||||||||||||||||
Income Before Income Taxes | 51,968 | 53,785 | 53,096 | (3.4 | )% | (2.1 | )% | 161,081 | 158,503 | 1.6 | % | |||||||||||||||||||||
Income tax expense | 13,402 | 13,837 | 13,500 | (3.1 | )% | (0.7 | )% | 41,136 | 38,746 | 6.2 | % | |||||||||||||||||||||
Net Income | $ | 38,566 | $ | 39,948 | $ | 39,596 | (3.5 | )% | (2.6 | )% | $ | 119,945 | $ | 119,757 | 0.2 | % | ||||||||||||||||
PER SHARE: | ||||||||||||||||||||||||||||||||
Net income: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.21 | $ | 0.21 | — | % | — | % | $ | 0.64 | $ | 0.62 | 3.2 | % | ||||||||||||||||
Diluted | 0.21 | 0.21 | 0.21 | — | % | — | % | 0.64 | 0.61 | 4.9 | % | |||||||||||||||||||||
Cash dividends | $ | 0.08 | $ | 0.08 | $ | 0.08 | — | % | — | % | $ | 0.24 | $ | 0.24 | — | % | ||||||||||||||||
Shareholders' equity | 11.22 | 10.55 | 11.11 | 6.4 | % | 1.0 | % | 11.22 | 10.55 | 6.4 | % | |||||||||||||||||||||
Shareholders' equity (tangible) | 8.35 | 7.77 | 8.29 | 7.5 | % | 0.7 | % | 8.35 | 7.77 | 7.5 | % | |||||||||||||||||||||
Weighted average shares (basic) | 186,109 | 192,251 | 188,139 | (3.2 | )% | (1.1 | )% | 187,893 | 193,926 | (3.1 | )% | |||||||||||||||||||||
Weighted average shares (diluted) | 186,955 | 193,259 | 189,182 | (3.3 | )% | (1.2 | )% | 188,863 | 194,926 | (3.1 | )% | |||||||||||||||||||||
Shares outstanding, end of period | 185,158 | 192,332 | 189,033 | (3.7 | )% | (2.0 | )% | 185,158 | 192,332 | (3.7 | )% | |||||||||||||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||||||||||||||||||
Return on average assets | 0.90 | % | 0.93 | % | 0.94 | % | 0.95 | % | 0.95 | % | ||||||||||||||||||||||
Return on average shareholders' equity | 7.32 | % | 7.81 | % | 7.63 | % | 7.72 | % | 7.79 | % | ||||||||||||||||||||||
Return on average shareholders' equity (tangible) | 9.88 | % | 10.69 | % | 10.30 | % | 10.43 | % | 10.62 | % | ||||||||||||||||||||||
Net interest margin | 3.39 | % | 3.45 | % | 3.41 | % | 3.42 | % | 3.51 | % | ||||||||||||||||||||||
Efficiency ratio | 65.80 | % | 63.92 | % | 65.85 | % | 65.02 | % | 62.81 | % | ||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | June 30, 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 | $ | 12,922,821 | $ | 136,773 | 4.20% | $ | 12,728,162 | $ | 139,141 | 4.34% | $ | 12,795,747 | $ | 134,387 | 4.21% | |||||||||||||||||
Taxable investment securities | 2,181,099 | 12,278 | 2.25% | 2,446,583 | 12,977 | 2.12% | 2,211,004 | 12,418 | 2.25% | |||||||||||||||||||||||
Tax-exempt investment securities | 256,303 | 3,414 | 5.33% | 284,372 | 3,581 | 5.04% | 270,482 | 3,534 | 5.23% | |||||||||||||||||||||||
Equity securities | 34,002 | 438 | 5.12% | 35,999 | 435 | 4.82% | 33,922 | 419 | 4.95% | |||||||||||||||||||||||
Total Investment Securities | 2,471,404 | 16,130 | 2.61% | 2,766,954 | 16,993 | 2.46% | 2,515,408 | 16,371 | 2.60% | |||||||||||||||||||||||
Loans held for sale | 23,699 | 237 | 4.01% | 36,450 | 382 | 4.19% | 17,540 | 214 | 4.87% | |||||||||||||||||||||||
Other interest-earning assets | 293,286 | 976 | 1.33% | 236,185 | 659 | 1.12% | 238,921 | 1,207 | 2.02% | |||||||||||||||||||||||
Total Interest-earning Assets | 15,711,210 | 154,116 | 3.90% | 15,767,751 | 157,175 | 3.96% | 15,567,616 | 152,179 | 3.92% | |||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||
Cash and due from banks | 203,134 | 210,525 | 198,291 | |||||||||||||||||||||||||||||
Premises and equipment | 224,241 | 224,837 | 224,586 | |||||||||||||||||||||||||||||
Other assets | 1,055,521 | 1,009,162 | 1,037,654 | |||||||||||||||||||||||||||||
Less: allowance for loan losses | (192,163 | ) | (220,342 | ) | (196,462 | ) | ||||||||||||||||||||||||||
Total Assets | $ | 17,001,943 | $ | 16,991,933 | $ | 16,831,685 | ||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | $ | 3,047,191 | $ | 953 | 0.12% | $ | 2,895,156 | $ | 938 | 0.13% | $ | 2,914,887 | $ | 904 | 0.12% | |||||||||||||||||
Savings deposits | 3,468,958 | 1,061 | 0.12% | 3,359,795 | 1,015 | 0.12% | 3,355,929 | 1,031 | 0.12% | |||||||||||||||||||||||
Time deposits | 3,009,225 | 6,984 | 0.92% | 3,065,210 | 6,790 | 0.88% | 3,012,061 | 6,750 | 0.90% | |||||||||||||||||||||||
Total Interest-bearing Deposits | 9,525,374 | 8,998 | 0.37% | 9,320,161 | 8,743 | 0.37% | 9,282,877 | 8,685 | 0.38% | |||||||||||||||||||||||
Short-term borrowings | 667,397 | 297 | 0.18% | 1,337,742 | 691 | 0.20% | 1,047,684 | 540 | 0.21% | |||||||||||||||||||||||
FHLB advances and long-term debt | 995,486 | 11,129 | 4.45% | 889,141 | 10,865 | 4.87% | 894,511 | 10,779 | 4.83% | |||||||||||||||||||||||
Total Interest-bearing Liabilities | 11,188,257 | 20,424 | 0.73% | 11,547,044 | 20,299 | 0.70% | 11,225,072 | 20,004 | 0.71% | |||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | 3,514,033 | 3,221,648 | 3,322,195 | |||||||||||||||||||||||||||||
Other | 210,194 | 194,163 | 202,520 | |||||||||||||||||||||||||||||
Total Liabilities | 14,912,484 | 14,962,855 | 14,749,787 | |||||||||||||||||||||||||||||
Shareholders' equity | 2,089,459 | 2,029,078 | 2,081,898 | |||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,001,943 | $ | 16,991,933 | $ | 16,831,685 | ||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 133,692 | 3.39% | 136,876 | 3.45% | 132,175 | 3.41% | ||||||||||||||||||||||||||
Tax equivalent adjustment | (4,326 | ) | (4,343 | ) | (4,277 | ) | ||||||||||||||||||||||||||
Net interest income | $ | 129,366 | $ | 132,533 | $ | 127,898 | ||||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||||||||
September 30 | September 30 | June 30 | September 30 | June 30 | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 5,114,221 | $ | 4,961,871 | $ | 5,138,537 | 3.1 | % | (0.5 | )% | ||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 3,657,047 | 3,706,113 | 3,617,977 | (1.3 | )% | 1.1 | % | |||||||||||||||||||||||||
Real estate - home equity | 1,727,253 | 1,767,095 | 1,735,767 | (2.3 | )% | (0.5 | )% | |||||||||||||||||||||||||
Real estate - residential mortgage | 1,369,087 | 1,323,972 | 1,339,034 | 3.4 | % | 2.2 | % | |||||||||||||||||||||||||
Real estate - construction | 663,922 | 576,222 | 588,176 | 15.2 | % | 12.9 | % | |||||||||||||||||||||||||
Consumer | 284,630 | 299,057 | 276,444 | (4.8 | )% | 3.0 | % | |||||||||||||||||||||||||
Leasing and other | 106,661 | 93,832 | 99,812 | 13.7 | % | 6.9 | % | |||||||||||||||||||||||||
Total Loans, net of unearned income | $ | 12,922,821 | $ | 12,728,162 | $ | 12,795,747 | 1.5 | % | 1.0 | % | ||||||||||||||||||||||
Deposits, by type: | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,514,033 | $ | 3,221,648 | $ | 3,322,195 | 9.1 | % | 5.8 | % | ||||||||||||||||||||||
Interest-bearing demand | 3,047,191 | 2,895,156 | 2,914,887 | 5.3 | % | 4.5 | % | |||||||||||||||||||||||||
Savings deposits | 3,468,958 | 3,359,795 | 3,355,929 | 3.2 | % | 3.4 | % | |||||||||||||||||||||||||
Time deposits | 3,009,225 | 3,065,210 | 3,012,061 | (1.8 | )% | (0.1 | )% | |||||||||||||||||||||||||
Total Deposits | $ | 13,039,407 | $ | 12,541,809 | $ | 12,605,072 | 4.0 | % | 3.4 | % | ||||||||||||||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||||||||||||||
Customer repurchase agreements | $ | 202,809 | $ | 196,503 | $ | 216,212 | 3.2 | % | (6.2 | )% | ||||||||||||||||||||||
Customer short-term promissory notes | 83,734 | 91,573 | 81,823 | (8.6 | )% | 2.3 | % | |||||||||||||||||||||||||
Federal funds purchased | 224,930 | 559,992 | 444,429 | (59.8 | )% | (49.4 | )% | |||||||||||||||||||||||||
Short-term FHLB advances and other borrowings | 155,924 | 489,674 | 305,220 | (68.2 | )% | (48.9 | )% | |||||||||||||||||||||||||
Total Short-term Borrowings | $ | 667,397 | $ | 1,337,742 | $ | 1,047,684 | (50.1 | )% | (36.3 | )% | ||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||||||
dollars in thousands | |||||||||||||||||||||||
Nine Months Ended September 30 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Balance | Interest (1) | Yield/Rate | Balance | Interest (1) | Yield/Rate | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans, net of unearned income | $ | 12,827,563 | $ | 405,904 | 4.23 | % | $ | 12,506,393 | $ | 414,091 | 4.43 | % | |||||||||||
Taxable investment securities | 2,216,344 | 37,962 | 2.28 | % | 2,426,015 | 40,890 | 2.25 | % | |||||||||||||||
Tax-exempt investment securities | 268,604 | 10,561 | 5.24 | % | 285,638 | 11,003 | 5.14 | % | |||||||||||||||
Equity securities | 33,949 | 1,286 | 5.06 | % | 40,352 | 1,416 | 4.69 | % | |||||||||||||||
Total Investment Securities | 2,518,897 | 49,809 | 2.64 | % | 2,752,005 | 53,309 | 2.58 | % | |||||||||||||||
Loans held for sale | 18,259 | 585 | 4.27 | % | 42,122 | 1,261 | 3.99 | % | |||||||||||||||
Other interest-earning assets | 263,797 | 3,065 | 1.55 | % | 217,975 | 1,527 | 0.93 | % | |||||||||||||||
Total Interest-earning Assets | 15,628,516 | 459,363 | 3.93 | % | 15,518,495 | 470,188 | 4.05 | % | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||
Cash and due from banks | 200,368 | 206,403 | |||||||||||||||||||||
Premises and equipment | 225,033 | 225,733 | |||||||||||||||||||||
Other assets | 1,041,834 | 1,047,122 | |||||||||||||||||||||
Less: allowance for loan losses | (197,235 | ) | (223,220 | ) | |||||||||||||||||||
Total Assets | $ | 16,898,516 | $ | 16,774,533 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | $ | 2,969,470 | $ | 2,766 | 0.12 | % | $ | 2,773,917 | $ | 2,687 | 0.13 | % | |||||||||||
Savings deposits | 3,392,681 | 3,127 | 0.12 | % | 3,348,413 | 3,054 | 0.12 | % | |||||||||||||||
Time deposits | 2,984,861 | 19,686 | 0.88 | % | 3,184,281 | 22,901 | 0.96 | % | |||||||||||||||
Total Interest-bearing Deposits | 9,347,012 | 25,579 | 0.37 | % | 9,306,611 | 28,642 | 0.41 | % | |||||||||||||||
Short-term borrowings | 972,694 | 1,470 | 0.20 | % | 1,228,882 | 1,900 | 0.20 | % | |||||||||||||||
FHLB advances and long-term debt | 924,920 | 32,606 | 4.71 | % | 889,826 | 32,448 | 4.87 | % | |||||||||||||||
Total Interest-bearing Liabilities | 11,244,626 | 59,655 | 0.71 | % | 11,425,319 | 62,990 | 0.74 | % | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | 3,360,876 | 3,103,381 | |||||||||||||||||||||
Other | 214,826 | 190,976 | |||||||||||||||||||||
Total Liabilities | 14,820,328 | 14,719,676 | |||||||||||||||||||||
Shareholders' equity | 2,078,188 | 2,054,857 | |||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 16,898,516 | $ | 16,774,533 | |||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 399,708 | 3.42 | % | 407,198 | 3.51 | % | |||||||||||||||||
Tax equivalent adjustment | (12,879 | ) | (12,956 | ) | |||||||||||||||||||
Net interest income | $ | 386,829 | $ | 394,242 | |||||||||||||||||||
(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: | |||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30 | |||||||||||||||||||||||
2014 | 2013 | % Change | |||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 5,112,735 | $ | 4,796,557 | 6.6 | % | |||||||||||||||||
Commercial - industrial, financial and agricultural | 3,637,440 | 3,694,612 | (1.5 | )% | |||||||||||||||||||
Real estate - home equity | 1,739,352 | 1,721,041 | 1.1 | % | |||||||||||||||||||
Real estate - residential mortgage | 1,348,269 | 1,305,434 | 3.3 | % | |||||||||||||||||||
Real estate - construction | 609,803 | 594,991 | 2.5 | % | |||||||||||||||||||
Consumer | 278,697 | 303,127 | (8.1 | )% | |||||||||||||||||||
Leasing and other | 101,267 | 90,631 | 11.7 | % | |||||||||||||||||||
Total Loans, net of unearned income | $ | 12,827,563 | $ | 12,506,393 | 2.6 | % | |||||||||||||||||
Deposits, by type: | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,360,876 | $ | 3,103,381 | 8.3 | % | |||||||||||||||||
Interest-bearing demand | 2,969,470 | 2,773,917 | 7.0 | % | |||||||||||||||||||
Savings deposits | 3,392,681 | 3,348,413 | 1.3 | % | |||||||||||||||||||
Time deposits | 2,984,861 | 3,184,281 | (6.3 | )% | |||||||||||||||||||
Total Deposits | $ | 12,707,888 | $ | 12,409,992 | 2.4 | % | |||||||||||||||||
Short-term borrowings, by type: | |||||||||||||||||||||||
Customer repurchase agreements | $ | 202,184 | $ | 183,432 | 10.2 | % | |||||||||||||||||
Customer short-term promissory notes | 89,119 | 100,532 | (11.4 | )% | |||||||||||||||||||
Federal funds purchased | 361,162 | 681,576 | (47.0 | )% | |||||||||||||||||||
Short-term FHLB advances and other borrowings | 320,229 | 263,342 | 21.6 | % | |||||||||||||||||||
Total Short-term Borrowings | $ | 972,694 | $ | 1,228,882 | (20.8 | )% | |||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
ASSET QUALITY INFORMATION (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Sep 30 | Sep 30 | Jun 30 | Sep 30 | Sep 30 | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2014 | 2013 | ||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 193,442 | $ | 217,626 | $ | 199,006 | $ | 204,917 | $ | 225,439 | ||||||||||||||||||||||
Loans charged off: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | (5,167 | ) | (9,394 | ) | (5,512 | ) | (15,804 | ) | (24,856 | ) | ||||||||||||||||||||||
Consumer and home equity | (2,030 | ) | (2,838 | ) | (1,683 | ) | (6,115 | ) | (8,191 | ) | ||||||||||||||||||||||
Real estate - commercial mortgage | (1,557 | ) | (3,724 | ) | (2,141 | ) | (5,084 | ) | (13,050 | ) | ||||||||||||||||||||||
Real estate - construction | (313 | ) | (598 | ) | (218 | ) | (745 | ) | (5,181 | ) | ||||||||||||||||||||||
Leasing and other | (306 | ) | (787 | ) | (833 | ) | (1,434 | ) | (2,037 | ) | ||||||||||||||||||||||
Real estate - residential mortgage | (231 | ) | (767 | ) | (1,089 | ) | (2,166 | ) | (8,282 | ) | ||||||||||||||||||||||
Total loans charged off | (9,604 | ) | (18,108 | ) | (11,476 | ) | (31,348 | ) | (61,597 | ) | ||||||||||||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 1,013 | 2,295 | 775 | 2,532 | 3,430 | |||||||||||||||||||||||||||
Consumer and home equity | 784 | 492 | 579 | 1,928 | 1,927 | |||||||||||||||||||||||||||
Real estate - commercial mortgage | 1,167 | 185 | 430 | 1,641 | 2,754 | |||||||||||||||||||||||||||
Real estate - construction | 470 | 379 | 158 | 852 | 1,794 | |||||||||||||||||||||||||||
Leasing and other | 241 | 224 | 362 | 767 | 649 | |||||||||||||||||||||||||||
Real estate - residential mortgage | 95 | 245 | 108 | 319 | 442 | |||||||||||||||||||||||||||
Recoveries of loans previously charged off | 3,770 | 3,820 | 2.412 | 8,039 | 10,996 | |||||||||||||||||||||||||||
Net loans charged off | (5,834 | ) | (14,288 | ) | (9.064 | ) | (23,309 | ) | (50,601 | ) | ||||||||||||||||||||||
Provision for credit losses | 3,500 | 9,500 | 3,500 | 9,500 | 38,000 | |||||||||||||||||||||||||||
Balance at end of period | $ | 191,108 | $ | 212,838 | $ | 193,442 | $ | 191,108 | $ | 212,838 | ||||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.18 | % | 0.45 | % | 0.28 | % | 0.24 | % | 0.54 | % | ||||||||||||||||||||||
NON-PERFORMING ASSETS: | ||||||||||||||||||||||||||||||||
Non-accrual loans | $ | 126,420 | $ | 143,012 | $ | 129,934 | ||||||||||||||||||||||||||
Loans 90 days past due and accruing | 17,428 | 25,271 | 19,378 | |||||||||||||||||||||||||||||
Total non-performing loans | 143,848 | 168,283 | 149,312 | |||||||||||||||||||||||||||||
Other real estate owned | 13,489 | 18,173 | 13,482 | |||||||||||||||||||||||||||||
Total non-performing assets | $ | 157,337 | $ | 186,456 | $ | 162,794 | ||||||||||||||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 44,602 | $ | 42,623 | $ | 44,015 | ||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 33,277 | 45,184 | 38,163 | |||||||||||||||||||||||||||||
Real estate - residential mortgage | 28,135 | 34,309 | 27,887 | |||||||||||||||||||||||||||||
Real estate - construction | 19,860 | 24,396 | 20,268 | |||||||||||||||||||||||||||||
Consumer and home equity | 17,586 | 21,704 | 18,919 | |||||||||||||||||||||||||||||
Leasing | 388 | 67 | 60 | |||||||||||||||||||||||||||||
Total non-performing loans | $ | 143,848 | $ | 168,283 | $ | 149,312 | ||||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE: | ||||||||||||||||||||||||||||||||
Real-estate - residential mortgage | $ | 30,850 | $ | 27,820 | $ | 31,184 | ||||||||||||||||||||||||||
Real-estate - commercial mortgage | 18,869 | 22,644 | 19,398 | |||||||||||||||||||||||||||||
Real estate - construction | 9,251 | 9,841 | 8,561 | |||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 5,115 | 8,184 | 6,953 | |||||||||||||||||||||||||||||
Consumer and home equity | 2,927 | 1,678 | 2,838 | |||||||||||||||||||||||||||||
Total accruing TDRs | $ | 67,012 | $ | 70,167 | $ | 68,934 | ||||||||||||||||||||||||||
Non-accrual TDRs (1) | 27,724 | 30,501 | 25,526 | |||||||||||||||||||||||||||||
Total TDRs | $ | 94,736 | $ | 100,668 | $ | 94,460 | ||||||||||||||||||||||||||
(1) Included within non-accrual loans above. | ||||||||||||||||||||||||||||||||
DELINQUENCY RATES, BY TYPE: | ||||||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | June 30, 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 | 0.48 | % | 0.86 | % | 1.34 | % | 0.40 | % | 0.84 | % | 1.24 | % | 0.30 | % | 0.86 | % | 1.16 | % | ||||||||||||||
Commercial - industrial, financial and agricultural | 0.28 | % | 0.91 | % | 1.19 | % | 0.32 | % | 1.24 | % | 1.56 | % | 0.47 | % | 1.05 | % | 1.52 | % | ||||||||||||||
Real estate - construction | 0.03 | % | 2.89 | % | 2.92 | % | 0.40 | % | 4.22 | % | 4.62 | % | 0.10 | % | 3.20 | % | 3.30 | % | ||||||||||||||
Real estate - residential mortgage | 1.81 | % | 2.06 | % | 3.87 | % | 1.82 | % | 2.58 | % | 4.40 | % | 1.78 | % | 2.05 | % | 3.83 | % | ||||||||||||||
Consumer, home equity, leasing and other | 0.74 | % | 0.85 | % | 1.59 | % | 1.19 | % | 1.00 | % | 2.19 | % | 0.84 | % | 0.90 | % | 1.74 | % | ||||||||||||||
Total | 0.58 | % | 1.11 | % | 1.69 | % | 0.66 | % | 1.31 | % | 1.97 | % | 0.58 | % | 1.17 | % | 1.75 | % | ||||||||||||||
(2) Includes non-accrual loans | ||||||||||||||||||||||||||||||||
ASSET QUALITY RATIOS: | ||||||||||||||||||||||||||||||||
Sep 30 | Sep 30 | Jun 30 | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | ||||||||||||||||||||||||||||||
Non-accrual loans to total loans | 0.97 | % | 1.12 | % | 1.01 | % | ||||||||||||||||||||||||||
Non-performing assets to total loans and OREO | 1.21 | % | 1.46 | % | 1.27 | % | ||||||||||||||||||||||||||
Non-performing assets to total assets | 0.91 | % | 1.09 | % | 0.96 | % | ||||||||||||||||||||||||||
Allowance for credit losses to loans outstanding | 1.47 | % | 1.67 | % | 1.51 | % | ||||||||||||||||||||||||||
Allowance for credit losses to non-performing loans | 132.85 | % | 126.48 | % | 129.56 | % | ||||||||||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.06 | % | 10.92 | % | 9.25 | % | ||||||||||||||||||||||||||
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 | Nine Months Ended | ||||||||||||||||||||||||
Sep 30 | Sep 30 | Jun 30 | Sep 30 | Sep 30 | |||||||||||||||||||||
2014 | 2013 | 2014 | 2014 | 2013 | |||||||||||||||||||||
Shareholders' equity (tangible), per share | |||||||||||||||||||||||||
Shareholders' equity | $ | 2,078,006 | $ | 2,028,964 | $ | 2,099,800 | |||||||||||||||||||
Less: Goodwill and intangible assets | (532,117 | ) | (533,918 | ) | (532,432 | ) | |||||||||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,545,889 | $ | 1,495,046 | $ | 1,567,368 | |||||||||||||||||||
Shares outstanding, end of period (denominator) | 185,158 | 192,332 | 189,033 | ||||||||||||||||||||||
Shareholders' equity (tangible), per share | $ | 8.35 | $ | 7.77 | $ | 8.29 | |||||||||||||||||||
Return on average common shareholders' equity (tangible) | |||||||||||||||||||||||||
Net income | $ | 38,566 | $ | 39,948 | $ | 39,596 | $ | 119,945 | $ | 119,757 | |||||||||||||||
Plus: Intangible amortization, net of tax | 203 | 347 | 204 | 614 | 1,042 | ||||||||||||||||||||
Numerator | $ | 38,769 | $ | 40,295 | $ | 39,800 | $ | 120,559 | $ | 120,799 | |||||||||||||||
Average shareholders' equity | $ | 2,089,459 | $ | 2,029,078 | $ | 2,081,898 | $ | 2,078,188 | $ | 2,054,857 | |||||||||||||||
Less: Average goodwill and intangible assets | (532,271 | ) | (534,179 | ) | (532,585 | ) | (532,584 | ) | (534,712 | ) | |||||||||||||||
Average tangible shareholders' equity (denominator) | $ | 1,557,188 | $ | 1,494,899 | $ | 1,549,313 | $ | 1,545,604 | $ | 1,520,145 | |||||||||||||||
Return on average common shareholders' equity (tangible), annualized | 9.88 | % | 10.69 | % | 10.30 | % | 10.43 | % | 10.62 | % | |||||||||||||||
Efficiency ratio | |||||||||||||||||||||||||
Non-interest expense | $ | 115,798 | $ | 116,605 | $ | 116,174 | $ | 341,526 | $ | 344,671 | |||||||||||||||
Less: Intangible amortization | (314 | ) | (534 | ) | (315 | ) | (944 | ) | (1,603 | ) | |||||||||||||||
Numerator | $ | 115,484 | $ | 116,071 | $ | 115,859 | $ | 340,582 | $ | 343,068 | |||||||||||||||
Net interest income (fully taxable equivalent) | $ | 133,692 | $ | 136,876 | $ | 132,175 | $ | 399,708 | $ | 407,198 | |||||||||||||||
Plus: Total Non-interest income | 41,900 | 47,357 | 44,872 | 125,278 | 146,932 | ||||||||||||||||||||
Less: Investment securities gains | (81 | ) | (2,633 | ) | (1,112 | ) | (1,193 | ) | (7,971 | ) | |||||||||||||||
Denominator | $ | 175,511 | $ | 181,600 | $ | 175,935 | $ | 523,793 | $ | 546,159 | |||||||||||||||
Efficiency ratio | 65.80 | % | 63.92 | % | 65.85 | % | 65.02 | % | 62.81 | % | |||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | |||||||||||||||||||||||||
Non-performing assets (numerator) | $ | 157,337 | $ | 186,456 | $ | 162,794 | |||||||||||||||||||
Tangible shareholders' equity | $ | 1,545,889 | $ | 1,495,046 | $ | 1,567,368 | |||||||||||||||||||
Plus: Allowance for credit losses | 191,108 | 212,838 | 193,442 | ||||||||||||||||||||||
Tangible shareholders' equity and allowance for credit losses (denominator) | $ | 1,736,997 | $ | 1,707,884 | $ | 1,760,810 | |||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.06 | % | 10.92 | % | 9.25 | % | |||||||||||||||||||