Attached files
| file | filename |
|---|---|
| 8-K - 8-K - FULTON FINANCIAL CORP | a8-k6x30x15.htm |
| EX-99.1 - PRESS RELEASE DATED JULY 21, 2015 - FULTON FINANCIAL CORP | exhibit9916-30x15.htm |
| EX-99.3 - PRESENTATION MATERIALS TO BE DISCUSSED DURING THE CONFERENCE CALL AND WEBCAST - FULTON FINANCIAL CORP | q2earningsccpresentation.htm |
Exhibit 99.2 | ||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||
dollars in thousands | ||||||||||||||||||
% Change from | ||||||||||||||||||
June 30 | June 30 | March | June 30 | March | ||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | ||||||||||||||
ASSETS | ||||||||||||||||||
Cash and due from banks | $ | 100,455 | $ | 258,837 | $ | 91,870 | (61.2 | )% | 9.3 | % | ||||||||
Other interest-earning assets | 387,324 | 305,518 | 703,667 | 26.8 | % | (45.0 | )% | |||||||||||
Loans held for sale | 33,980 | 36,079 | 34,124 | (5.8 | )% | (0.4 | )% | |||||||||||
Investment securities | 2,440,492 | 2,497,776 | 2,259,802 | (2.3 | )% | 8.0 | % | |||||||||||
Loans, net of unearned income | 13,244,230 | 12,839,511 | 13,115,505 | 3.2 | % | 1.0 | % | |||||||||||
Allowance for loan losses | (167,485 | ) | (191,685 | ) | (177,701 | ) | (12.6 | )% | (5.7 | )% | ||||||||
Net loans | 13,076,745 | 12,647,826 | 12,937,804 | 3.4 | % | 1.1 | % | |||||||||||
Premises and equipment | 226,794 | 225,168 | 226,241 | 0.7 | % | 0.2 | % | |||||||||||
Accrued interest receivable | 41,193 | 42,116 | 42,216 | (2.2 | )% | (2.4 | )% | |||||||||||
Goodwill and intangible assets | 531,567 | 532,432 | 531,672 | (0.2 | )% | — | % | |||||||||||
Other assets | 526,923 | 487,887 | 535,945 | 8.0 | % | (1.7 | )% | |||||||||||
Total Assets | $ | 17,365,473 | $ | 17,033,639 | $ | 17,363,341 | 1.9 | % | — | % | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Deposits | $ | 13,505,709 | $ | 12,693,659 | $ | 13,514,497 | 6.4 | % | (0.1 | )% | ||||||||
Short-term borrowings | 409,035 | 1,008,307 | 410,105 | (59.4 | )% | (0.3 | )% | |||||||||||
Other liabilities | 293,271 | 263,478 | 312,709 | 11.3 | % | (6.2 | )% | |||||||||||
FHLB advances and long-term debt | 1,132,641 | 968,395 | 1,094,517 | 17.0 | % | 3.5 | % | |||||||||||
Total Liabilities | 15,340,656 | 14,933,839 | 15,331,828 | 2.7 | % | 0.1 | % | |||||||||||
Shareholders' equity | 2,024,817 | 2,099,800 | 2,031,513 | (3.6 | )% | (0.3 | )% | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,365,473 | $ | 17,033,639 | $ | 17,363,341 | 1.9 | % | — | % | ||||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||
Loans, by type: | ||||||||||||||||||
Real estate - commercial mortgage | $ | 5,237,800 | $ | 5,128,734 | $ | 5,227,101 | 2.1 | % | 0.2 | % | ||||||||
Commercial - industrial, financial and agricultural | 3,806,699 | 3,601,721 | 3,762,631 | 5.7 | % | 1.2 | % | |||||||||||
Real estate - home equity | 1,689,688 | 1,730,497 | 1,701,623 | (2.4 | )% | (0.7 | )% | |||||||||||
Real estate - residential mortgage | 1,369,103 | 1,361,976 | 1,364,788 | 0.5 | % | 0.3 | % | |||||||||||
Real estate - construction | 731,925 | 634,018 | 677,806 | 15.4 | % | 8.0 | % | |||||||||||
Consumer | 272,494 | 280,557 | 257,301 | (2.9 | )% | 5.9 | % | |||||||||||
Leasing and other | 136,521 | 102,008 | 124,255 | 33.8 | % | 9.9 | % | |||||||||||
Total Loans, net of unearned income | $ | 13,244,230 | $ | 12,839,511 | $ | 13,115,505 | 3.2 | % | 1.0 | % | ||||||||
Deposits, by type: | ||||||||||||||||||
Noninterest-bearing demand | $ | 3,805,165 | $ | 3,484,125 | $ | 3,765,677 | 9.2 | % | 1.0 | % | ||||||||
Interest-bearing demand | 3,129,903 | 2,855,511 | 3,133,748 | 9.6 | % | (0.1 | )% | |||||||||||
Savings deposits | 3,566,888 | 3,338,018 | 3,567,652 | 6.9 | % | — | % | |||||||||||
Time deposits | 3,003,753 | 3,016,005 | 3,047,420 | (0.4 | )% | (1.4 | )% | |||||||||||
Total Deposits | $ | 13,505,709 | $ | 12,693,659 | $ | 13,514,497 | 6.4 | % | (0.1 | )% | ||||||||
Short-term borrowings, by type: | ||||||||||||||||||
Customer repurchase agreements | $ | 169,918 | $ | 212,930 | $ | 161,886 | (20.2 | )% | 5.0 | % | ||||||||
Customer short-term promissory notes | 74,059 | 86,366 | 93,176 | (14.2 | )% | (20.5 | )% | |||||||||||
Short-term FHLB advances | 160,000 | 325,000 | 155,000 | (50.8 | )% | 3.2 | % | |||||||||||
Federal funds purchased | 5,058 | 384,011 | 43 | (98.7 | )% | N/M | ||||||||||||
Total Short-term Borrowings | $ | 409,035 | $ | 1,008,307 | $ | 410,105 | (59.4 | )% | (0.3 | )% | ||||||||
N/M - Not meaningful | ||||||||||||||||||
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 | June 30 | March 31 | June 30 | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2015 | 2014 | % Change | |||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||||||||
Interest income | $ | 144,229 | $ | 147,902 | $ | 145,772 | (2.5 | )% | (1.1 | )% | $ | 290,001 | $ | 296,694 | (2.3 | )% | ||||||||||||||||
Interest expense | 21,309 | 20,004 | 22,191 | 6.5 | % | (4.0 | )% | 43,500 | 39,231 | 10.9 | % | |||||||||||||||||||||
Net Interest Income | 122,920 | 127,898 | 123,581 | (3.9 | )% | (0.5 | )% | 246,501 | 257,463 | (4.3 | )% | |||||||||||||||||||||
Provision for credit losses | 2,200 | 3,500 | (3,700 | ) | (37.1 | )% | N/M | (1,500 | ) | 6,000 | N/M | |||||||||||||||||||||
Net Interest Income after Provision | 120,720 | 124,398 | 127,281 | (3.0 | )% | (5.2 | )% | 248,001 | 251,463 | (1.4 | )% | |||||||||||||||||||||
Non-Interest Income: | ||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 12,637 | 12,552 | 11,569 | 0.7 | % | 9.2 | % | 24,206 | 24,263 | (0.2 | )% | |||||||||||||||||||||
Investment management and trust services | 11,011 | 11,339 | 10,889 | (2.9 | )% | 1.1 | % | 21,900 | 22,297 | (1.8 | )% | |||||||||||||||||||||
Other service charges and fees | 10,988 | 10,526 | 9,363 | 4.4 | % | 17.4 | % | 20,351 | 19,453 | 4.6 | % | |||||||||||||||||||||
Mortgage banking income | 5,339 | 5,741 | 4,688 | (7.0 | )% | 13.9 | % | 10,027 | 9,346 | 7.3 | % | |||||||||||||||||||||
Investment securities gains | 2,415 | 1,112 | 4,145 | 117.2 | % | (41.7 | )% | 6,560 | 1,112 | 489.9 | % | |||||||||||||||||||||
Other | 4,099 | 3,602 | 4,083 | 13.8 | % | 0.4 | % | 8,182 | 6,907 | 18.5 | % | |||||||||||||||||||||
Total Non-Interest Income | 46,489 | 44,872 | 44,737 | 3.6 | % | 3.9 | % | 91,226 | 83,378 | 9.4 | % | |||||||||||||||||||||
Non-Interest Expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | 65,067 | 63,623 | 64,990 | 2.3 | % | 0.1 | % | 130,057 | 123,189 | 5.6 | % | |||||||||||||||||||||
Net occupancy expense | 11,809 | 11,464 | 13,692 | 3.0 | % | (13.8 | )% | 25,501 | 25,067 | 1.7 | % | |||||||||||||||||||||
Other outside services | 8,125 | 7,240 | 5,750 | 12.2 | % | 41.3 | % | 13,875 | 11,052 | 25.5 | % | |||||||||||||||||||||
Data processing | 4,894 | 4,331 | 4,768 | 13.0 | % | 2.6 | % | 9,662 | 8,127 | 18.9 | % | |||||||||||||||||||||
Software | 3,376 | 3,209 | 3,318 | 5.2 | % | 1.7 | % | 6,694 | 6,134 | 9.1 | % | |||||||||||||||||||||
Equipment expense | 3,335 | 3,360 | 3,958 | (0.7 | )% | (15.7 | )% | 7,293 | 6,962 | 4.8 | % | |||||||||||||||||||||
FDIC insurance expense | 2,885 | 2,615 | 2,822 | 10.3 | % | 2.2 | % | 5,707 | 5,304 | 7.6 | % | |||||||||||||||||||||
Professional fees | 2,731 | 3,559 | 2,871 | (23.3 | )% | (4.9 | )% | 5,602 | 6,463 | (13.3 | )% | |||||||||||||||||||||
Marketing | 2,235 | 2,337 | 1,233 | (4.4 | )% | 81.3 | % | 3,468 | 3,921 | (11.6 | )% | |||||||||||||||||||||
Operating risk loss | 674 | 716 | 827 | (5.9 | )% | (18.5 | )% | 1,501 | 2,544 | (41.0 | )% | |||||||||||||||||||||
Other real estate owned and repossession expense | 129 | 748 | 1,362 | (82.8 | )% | (90.5 | )% | 1,491 | 1,731 | (13.9 | )% | |||||||||||||||||||||
Intangible amortization | 106 | 315 | 130 | (66.3 | )% | (18.5 | )% | 236 | 630 | (62.5 | )% | |||||||||||||||||||||
Other | 12,988 | 12,657 | 12,757 | 2.6 | % | 1.8 | % | 25,745 | 24,604 | 4.6 | % | |||||||||||||||||||||
Total Non-Interest Expense | 118,354 | 116,174 | 118,478 | 1.9 | % | (0.1 | )% | 236,832 | 225,728 | 4.9 | % | |||||||||||||||||||||
Income Before Income Taxes | 48,855 | 53,096 | 53,540 | (8.0 | )% | (8.8 | )% | 102,395 | 109,113 | (6.2 | )% | |||||||||||||||||||||
Income tax expense | 12,175 | 13,500 | 13,504 | (9.8 | )% | (9.8 | )% | 25,679 | 27,734 | (7.4 | )% | |||||||||||||||||||||
Net Income | $ | 36,680 | $ | 39,596 | $ | 40,036 | (7.4 | )% | (8.4 | )% | $ | 76,716 | $ | 81,379 | (5.7 | )% | ||||||||||||||||
PER SHARE: | ||||||||||||||||||||||||||||||||
Net income: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.21 | $ | 0.22 | — | % | (4.5 | )% | $ | 0.43 | $ | 0.43 | — | % | ||||||||||||||||
Diluted | 0.21 | 0.21 | 0.22 | — | % | (4.5 | )% | 0.43 | 0.43 | — | % | |||||||||||||||||||||
Cash dividends | $ | 0.09 | $ | 0.08 | $ | 0.09 | 12.5 | % | — | % | $ | 0.18 | $ | 0.16 | 12.5 | % | ||||||||||||||||
Shareholders' equity | 11.50 | 11.11 | 11.34 | 3.5 | % | 1.4 | % | 11.50 | 11.11 | 3.5 | % | |||||||||||||||||||||
Shareholders' equity (tangible) | 8.48 | 8.29 | 8.37 | 2.3 | % | 1.3 | % | 8.48 | 8.29 | 2.3 | % | |||||||||||||||||||||
Weighted average shares (basic) | 176,433 | 188,139 | 178,471 | (6.2 | )% | (1.1 | )% | 177,446 | 188,799 | (6.0 | )% | |||||||||||||||||||||
Weighted average shares (diluted) | 177,531 | 189,182 | 179,457 | (6.2 | )% | (1.1 | )% | 178,488 | 189,832 | (6.0 | )% | |||||||||||||||||||||
Shares outstanding, end of period | 176,019 | 189,033 | 179,098 | (6.9 | )% | (1.7 | )% | 176,019 | 189,033 | (6.9 | )% | |||||||||||||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||||||||||||||||||
Return on average assets | 0.86 | % | 0.94 | % | 0.95 | % | 0.90 | % | 0.97 | % | ||||||||||||||||||||||
Return on average shareholders' equity | 7.24 | % | 7.63 | % | 8.05 | % | 7.64 | % | 7.92 | % | ||||||||||||||||||||||
Return on average shareholders' equity (tangible) | 9.83 | % | 10.30 | % | 10.96 | % | 10.39 | % | 10.71 | % | ||||||||||||||||||||||
Net interest margin | 3.20 | % | 3.41 | % | 3.27 | % | 3.24 | % | 3.44 | % | ||||||||||||||||||||||
Efficiency ratio | 68.94 | % | 65.85 | % | 70.16 | % | 69.55 | % | 64.63 | % | ||||||||||||||||||||||
N/M - Not meaningful | ||||||||||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
June 30, 2015 | June 30, 2014 | March 31, 2015 | ||||||||||||||||||||||||||||||
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 | $ | 13,192,600 | $ | 133,339 | 4.05% | $ | 12,795,747 | $ | 134,387 | 4.21% | $ | 13,095,528 | $ | 133,055 | 4.11% | |||||||||||||||||
Taxable investment securities | 2,048,558 | 10,944 | 2.14% | 2,211,004 | 12,418 | 2.25% | 2,005,542 | 11,282 | 2.25% | |||||||||||||||||||||||
Tax-exempt investment securities | 216,355 | 2,894 | 5.35% | 270,482 | 3,534 | 5.23% | 229,082 | 3,212 | 5.61% | |||||||||||||||||||||||
Equity securities | 27,618 | 379 | 5.50% | 33,922 | 419 | 4.95% | 32,210 | 450 | 5.66% | |||||||||||||||||||||||
Total Investment Securities | 2,292,531 | 14,217 | 2.48% | 2,515,408 | 16,371 | 2.60% | 2,266,834 | 14,944 | 2.64% | |||||||||||||||||||||||
Loans held for sale | 26,335 | 265 | 4.03% | 17,540 | 214 | 4.87% | 17,002 | 173 | 4.07% | |||||||||||||||||||||||
Other interest-earning assets | 439,425 | 933 | 0.85% | 238,921 | 1,207 | 2.02% | 474,033 | 2,105 | 1.78% | |||||||||||||||||||||||
Total Interest-earning Assets | 15,950,891 | 148,754 | 3.74% | 15,567,616 | 152,179 | 3.92% | 15,853,397 | 150,277 | 3.83% | |||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||
Cash and due from banks | 104,723 | 198,291 | 105,271 | |||||||||||||||||||||||||||||
Premises and equipment | 226,569 | 224,586 | 226,391 | |||||||||||||||||||||||||||||
Other assets | 1,094,071 | 1,037,654 | 1,114,078 | |||||||||||||||||||||||||||||
Less: allowance for loan losses | (176,085 | ) | (196,462 | ) | (183,927 | ) | ||||||||||||||||||||||||||
Total Assets | $ | 17,200,169 | $ | 16,831,685 | $ | 17,115,210 | ||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | $ | 3,152,697 | $ | 987 | 0.13% | $ | 2,914,887 | $ | 904 | 0.12% | $ | 3,135,927 | $ | 983 | 0.13% | |||||||||||||||||
Savings deposits | 3,568,579 | 1,247 | 0.14% | 3,355,929 | 1,031 | 0.12% | 3,517,057 | 1,119 | 0.13% | |||||||||||||||||||||||
Time deposits | 3,027,520 | 7,819 | 1.04% | 3,012,061 | 6,750 | 0.90% | 3,061,593 | 7,721 | 1.02% | |||||||||||||||||||||||
Total Interest-bearing Deposits | 9,748,796 | 10,053 | 0.41% | 9,282,877 | 8,685 | 0.38% | 9,714,577 | 9,823 | 0.41% | |||||||||||||||||||||||
Short-term borrowings | 379,988 | 103 | 0.11% | 1,047,684 | 540 | 0.21% | 309,215 | 77 | 0.10% | |||||||||||||||||||||||
FHLB advances and long-term debt | 1,026,987 | 11,153 | 4.35% | 894,511 | 10,779 | 4.83% | 1,124,074 | 12,291 | 4.40% | |||||||||||||||||||||||
Total Interest-bearing Liabilities | 11,155,771 | 21,309 | 0.77% | 11,225,072 | 20,004 | 0.71% | 11,147,866 | 22,191 | 0.80% | |||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | 3,734,880 | 3,322,195 | 3,662,040 | |||||||||||||||||||||||||||||
Other | 277,730 | 202,520 | 289,341 | |||||||||||||||||||||||||||||
Total Liabilities | 15,168,381 | 14,749,787 | 15,099,247 | |||||||||||||||||||||||||||||
Shareholders' equity | 2,031,788 | 2,081,898 | 2,015,963 | |||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,200,169 | $ | 16,831,685 | $ | 17,115,210 | ||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 127,445 | 3.20% | 132,175 | 3.41% | 128,086 | 3.27% | ||||||||||||||||||||||||||
Tax equivalent adjustment | (4,525 | ) | (4,277 | ) | (4,505 | ) | ||||||||||||||||||||||||||
Net interest income | $ | 122,920 | $ | 127,898 | $ | 123,581 | ||||||||||||||||||||||||||
(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 | ||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | ||||||||||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 5,210,540 | $ | 5,138,537 | $ | 5,163,845 | 1.4 | % | 0.9 | % | ||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 3,836,397 | 3,617,977 | 3,770,187 | 6.0 | % | 1.8 | % | |||||||||||||||||||||||||
Real estate - home equity | 1,695,171 | 1,735,767 | 1,721,300 | (2.3 | )% | (1.5 | )% | |||||||||||||||||||||||||
Real estate - residential mortgage | 1,356,464 | 1,339,034 | 1,370,376 | 1.3 | % | (1.0 | )% | |||||||||||||||||||||||||
Real estate - construction | 698,685 | 588,176 | 688,690 | 18.8 | % | 1.5 | % | |||||||||||||||||||||||||
Consumer | 265,354 | 276,444 | 259,138 | (4.0 | )% | 2.4 | % | |||||||||||||||||||||||||
Leasing and other | 129,989 | 99,812 | 121,992 | 30.2 | % | 6.6 | % | |||||||||||||||||||||||||
Total Loans, net of unearned income | $ | 13,192,600 | $ | 12,795,747 | $ | 13,095,528 | 3.1 | % | 0.7 | % | ||||||||||||||||||||||
Deposits, by type: | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,734,880 | $ | 3,322,195 | $ | 3,662,040 | 12.4 | % | 2.0 | % | ||||||||||||||||||||||
Interest-bearing demand | 3,152,697 | 2,914,887 | 3,135,927 | 8.2 | % | 0.5 | % | |||||||||||||||||||||||||
Savings deposits | 3,568,579 | 3,355,929 | 3,517,057 | 6.3 | % | 1.5 | % | |||||||||||||||||||||||||
Time deposits | 3,027,520 | 3,012,061 | 3,061,593 | 0.5 | % | (1.1 | )% | |||||||||||||||||||||||||
Total Deposits | $ | 13,483,676 | $ | 12,605,072 | $ | 13,376,617 | 7.0 | % | 0.8 | % | ||||||||||||||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||||||||||||||
Customer repurchase agreements | $ | 179,804 | $ | 216,212 | $ | 173,625 | (16.8 | )% | 3.6 | % | ||||||||||||||||||||||
Customer short-term promissory notes | 80,073 | 81,823 | 86,258 | (2.1 | )% | (7.2 | )% | |||||||||||||||||||||||||
Federal funds purchased | 108,078 | 444,429 | 25,054 | (75.7 | )% | 331.4 | % | |||||||||||||||||||||||||
Short-term FHLB advances and other borrowings | 12,033 | 305,220 | 24,278 | (96.1 | )% | (50.4 | )% | |||||||||||||||||||||||||
Total Short-term Borrowings | $ | 379,988 | $ | 1,047,684 | $ | 309,215 | (63.7 | )% | 22.9 | % | ||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||||||
dollars in thousands | |||||||||||||||||||||||
Six Months Ended June 30 | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Balance | Interest (1) | Yield/Rate | Balance | Interest (1) | Yield/Rate | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans, net of unearned income | $ | 13,144,332 | $ | 266,394 | 4.08 | % | $ | 12,779,145 | $ | 269,131 | 4.24 | % | |||||||||||
Taxable investment securities | 2,027,170 | 22,226 | 2.19 | % | 2,234,259 | 25,684 | 2.30 | % | |||||||||||||||
Tax-exempt investment securities | 222,684 | 6,106 | 5.48 | % | 274,856 | 7,147 | 5.20 | % | |||||||||||||||
Equity securities | 29,901 | 829 | 5.58 | % | 33,922 | 848 | 5.03 | % | |||||||||||||||
Total Investment Securities | 2,279,755 | 29,161 | 2.56 | % | 2,543,037 | 33,679 | 2.65 | % | |||||||||||||||
Loans held for sale | 21,694 | 438 | 4.04 | % | 15,494 | 348 | 4.49 | % | |||||||||||||||
Other interest-earning assets | 456,633 | 3,038 | 1.33 | % | 248,807 | 2,089 | 1.68 | % | |||||||||||||||
Total Interest-earning Assets | 15,902,414 | 299,031 | 3.79 | % | 15,586,483 | 305,247 | 3.95 | % | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||
Cash and due from banks | 104,996 | 198,962 | |||||||||||||||||||||
Premises and equipment | 226,480 | 225,436 | |||||||||||||||||||||
Other assets | 1,104,019 | 1,034,877 | |||||||||||||||||||||
Less: allowance for loan losses | (179,985 | ) | (199,813 | ) | |||||||||||||||||||
Total Assets | $ | 17,157,924 | $ | 16,845,945 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | $ | 3,144,358 | $ | 1,970 | 0.13 | % | $ | 2,929,965 | $ | 1,813 | 0.12 | % | |||||||||||
Savings deposits | 3,542,960 | 2,366 | 0.13 | % | 3,353,910 | 2,066 | 0.12 | % | |||||||||||||||
Time deposits | 3,044,463 | 15,540 | 1.03 | % | 2,972,480 | 12,702 | 0.86 | % | |||||||||||||||
Total Interest-bearing Deposits | 9,731,781 | 19,876 | 0.41 | % | 9,256,355 | 16,581 | 0.36 | % | |||||||||||||||
Short-term borrowings | 344,797 | 180 | 0.10 | % | 1,127,872 | 1,173 | 0.21 | % | |||||||||||||||
FHLB advances and long-term debt | 1,075,262 | 23,444 | 4.38 | % | 889,051 | 21,477 | 4.85 | % | |||||||||||||||
Total Interest-bearing Liabilities | 11,151,840 | 43,500 | 0.78 | % | 11,273,278 | 39,231 | 0.70 | % | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | 3,698,661 | 3,283,027 | |||||||||||||||||||||
Other | 283,504 | 217,181 | |||||||||||||||||||||
Total Liabilities | 15,134,005 | 14,773,486 | |||||||||||||||||||||
Shareholders' equity | 2,023,919 | 2,072,459 | |||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,157,924 | $ | 16,845,945 | |||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 255,531 | 3.24 | % | 266,016 | 3.44 | % | |||||||||||||||||
Tax equivalent adjustment | (9,030 | ) | (8,553 | ) | |||||||||||||||||||
Net interest income | $ | 246,501 | $ | 257,463 | |||||||||||||||||||
(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 | |||||||||||||||||||||||
2015 | 2014 | % Change | |||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 5,187,322 | $ | 5,111,979 | 1.5 | % | |||||||||||||||||
Commercial - industrial, financial and agricultural | 3,803,475 | 3,627,471 | 4.9 | % | |||||||||||||||||||
Real estate - home equity | 1,708,163 | 1,745,503 | (2.1 | )% | |||||||||||||||||||
Real estate - residential mortgage | 1,363,382 | 1,337,686 | 1.9 | % | |||||||||||||||||||
Real estate - construction | 693,715 | 582,294 | 19.1 | % | |||||||||||||||||||
Consumer | 262,265 | 275,682 | (4.9 | )% | |||||||||||||||||||
Leasing and other | 126,010 | 98,530 | 27.9 | % | |||||||||||||||||||
Total Loans, net of unearned income | $ | 13,144,332 | $ | 12,779,145 | 2.9 | % | |||||||||||||||||
Deposits, by type: | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,698,661 | $ | 3,283,027 | 12.7 | % | |||||||||||||||||
Interest-bearing demand | 3,144,358 | 2,929,965 | 7.3 | % | |||||||||||||||||||
Savings deposits | 3,542,960 | 3,353,910 | 5.6 | % | |||||||||||||||||||
Time deposits | 3,044,463 | 2,972,480 | 2.4 | % | |||||||||||||||||||
Total Deposits | $ | 13,430,442 | $ | 12,539,382 | 7.1 | % | |||||||||||||||||
Short-term borrowings, by type: | |||||||||||||||||||||||
Customer repurchase agreements | $ | 176,732 | $ | 201,866 | (12.5 | )% | |||||||||||||||||
Customer short-term promissory notes | 83,148 | 91,856 | (9.5 | )% | |||||||||||||||||||
Federal funds purchased | 66,795 | 430,407 | (84.5 | )% | |||||||||||||||||||
Short-term FHLB advances and other borrowings | 18,122 | 403,743 | (95.5 | )% | |||||||||||||||||||
Total Short-term Borrowings | $ | 344,797 | $ | 1,127,872 | (69.4 | )% | |||||||||||||||||
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 | ||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | ||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 179,658 | $ | 199,006 | $ | 185,931 | $ | 185.931 | $ | 204.917 | ||||||||||||||||||||||
Loans charged off: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | (11,166 | ) | (5,512 | ) | (1,863 | ) | (13,029 | ) | (10,637 | ) | ||||||||||||||||||||||
Real estate - commercial mortgage | (1,642 | ) | (2,141 | ) | (709 | ) | (2,351 | ) | (3,527 | ) | ||||||||||||||||||||||
Consumer and home equity | (1,227 | ) | (1,683 | ) | (1,548 | ) | (2,775 | ) | (4,085 | ) | ||||||||||||||||||||||
Real estate - residential mortgage | (783 | ) | (1,089 | ) | (1,281 | ) | (2,064 | ) | (1,935 | ) | ||||||||||||||||||||||
Real estate - construction | (87 | ) | (218 | ) | — | (87 | ) | (432 | ) | |||||||||||||||||||||||
Leasing and other | (467 | ) | (833 | ) | (363 | ) | (830 | ) | (1,128 | ) | ||||||||||||||||||||||
Total loans charged off | (15,372 | ) | (11,476 | ) | (5,764 | ) | (21,136 | ) | (21,744 | ) | ||||||||||||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 1,471 | 775 | 786 | 2,257 | 1,519 | |||||||||||||||||||||||||||
Real estate - commercial mortgage | 451 | 430 | 436 | 887 | 474 | |||||||||||||||||||||||||||
Consumer and home equity | 557 | 579 | 492 | 1,049 | 1,144 | |||||||||||||||||||||||||||
Real estate - residential mortgage | 187 | 108 | 159 | 346 | 224 | |||||||||||||||||||||||||||
Real estate - construction | 231 | 158 | 1,147 | 1,378 | 382 | |||||||||||||||||||||||||||
Leasing and other | 70 | 362 | 171 | 241 | 526 | |||||||||||||||||||||||||||
Recoveries of loans previously charged off | 2,967 | 2,412 | 3,191 | 6,158 | 4,269 | |||||||||||||||||||||||||||
Net loans charged off | (12,405 | ) | (9,064 | ) | (2,573 | ) | (14,978 | ) | (17,475 | ) | ||||||||||||||||||||||
Provision for credit losses | 2,200 | 3,500 | (3,700 | ) | (1,500 | ) | 6,000 | |||||||||||||||||||||||||
Balance at end of period | $ | 169,453 | $ | 193,442 | $ | 179,658 | $169,453 | $ | 193,442 | |||||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.38 | % | 0.28 | % | 0.08 | % | 0.23 | % | 0.27 | % | ||||||||||||||||||||||
NON-PERFORMING ASSETS: | ||||||||||||||||||||||||||||||||
Non-accrual loans | $ | 129,152 | $ | 129,934 | $ | 129,929 | ||||||||||||||||||||||||||
Loans 90 days past due and accruing | 20,353 | 19,378 | 19,365 | |||||||||||||||||||||||||||||
Total non-performing loans | 149,505 | 149,312 | 149,294 | |||||||||||||||||||||||||||||
Other real estate owned | 12,763 | 13,482 | 14,251 | |||||||||||||||||||||||||||||
Total non-performing assets | $ | 162,268 | $ | 162,794 | $ | 163,545 | ||||||||||||||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 49,932 | $ | 44,015 | $ | 46,331 | ||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 35,839 | 38,163 | 43,265 | |||||||||||||||||||||||||||||
Real estate - residential mortgage | 31,562 | 27,887 | 28,595 | |||||||||||||||||||||||||||||
Consumer and home equity | 17,215 | 18,919 | 16,939 | |||||||||||||||||||||||||||||
Real estate - construction | 14,884 | 20,268 | 14,140 | |||||||||||||||||||||||||||||
Leasing | 73 | 60 | 24 | |||||||||||||||||||||||||||||
Total non-performing loans | $ | 149,505 | $ | 149,312 | $ | 149,294 | ||||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE: | ||||||||||||||||||||||||||||||||
Real-estate - residential mortgage | $ | 31,584 | $ | 31,184 | $ | 31,574 | ||||||||||||||||||||||||||
Real-estate - commercial mortgage | 17,482 | 19,398 | 23,468 | |||||||||||||||||||||||||||||
Real estate - construction | 4,482 | 8,561 | 7,791 | |||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 6,591 | 6,953 | 6,975 | |||||||||||||||||||||||||||||
Consumer and home equity | 3,330 | 2,838 | 3,118 | |||||||||||||||||||||||||||||
Total accruing TDRs | $ | 63,469 | $ | 68,934 | $ | 72,926 | ||||||||||||||||||||||||||
Non-accrual TDRs (1) | 27,230 | 25,526 | 29,392 | |||||||||||||||||||||||||||||
Total TDRs | $ | 90,699 | $ | 94,460 | $ | 102,318 | ||||||||||||||||||||||||||
(1) Included within non-accrual loans above. | ||||||||||||||||||||||||||||||||
DELINQUENCY RATES, BY TYPE: | ||||||||||||||||||||||||||||||||
June 30, 2015 | June 30, 2014 | March 31, 2015 | ||||||||||||||||||||||||||||||
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 | 0.34 | % | 0.96 | % | 1.30 | % | 0.30 | % | 0.86 | % | 1.16 | % | 0.50 | % | 0.89 | % | 1.39 | % | ||||||||||||||
Commercial - industrial, financial and agricultural | 0.22 | % | 0.93 | % | 1.15 | % | 0.47 | % | 1.05 | % | 1.52 | % | 0.26 | % | 1.15 | % | 1.41 | % | ||||||||||||||
Real estate - construction | 0.02 | % | 2.04 | % | 2.06 | % | 0.10 | % | 3.20 | % | 3.30 | % | 0.31 | % | 2.09 | % | 2.40 | % | ||||||||||||||
Real estate - residential mortgage | 1.53 | % | 2.30 | % | 3.83 | % | 1.78 | % | 2.05 | % | 3.83 | % | 1.75 | % | 2.10 | % | 3.85 | % | ||||||||||||||
Consumer, home equity, leasing and other | 0.69 | % | 0.83 | % | 1.52 | % | 0.84 | % | 0.90 | % | 1.74 | % | 0.92 | % | 0.81 | % | 1.73 | % | ||||||||||||||
Total | 0.47 | % | 1.13 | % | 1.60 | % | 0.58 | % | 1.17 | % | 1.75 | % | 0.62 | % | 1.14 | % | 1.76 | % | ||||||||||||||
(2) Includes non-accrual loans | ||||||||||||||||||||||||||||||||
ASSET QUALITY RATIOS: | ||||||||||||||||||||||||||||||||
Jun 30 | Jun 30 | Mar 31 | ||||||||||||||||||||||||||||||
2015 | 2014 | 2015 | ||||||||||||||||||||||||||||||
Non-accrual loans to total loans | 0.98 | % | 1.01 | % | 0.99 | % | ||||||||||||||||||||||||||
Non-performing assets to total loans and OREO | 1.22 | % | 1.27 | % | 1.25 | % | ||||||||||||||||||||||||||
Non-performing assets to total assets | 0.93 | % | 0.96 | % | 0.94 | % | ||||||||||||||||||||||||||
Allowance for credit losses to loans outstanding | 1.28 | % | 1.51 | % | 1.37 | % | ||||||||||||||||||||||||||
Allowance for credit losses to non-performing loans | 113.34 | % | 129.56 | % | 120.34 | % | ||||||||||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.76 | % | 9.25 | % | 9.74 | % | ||||||||||||||||||||||||||
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 supplemental 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 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 | ||||||||||||||||||||||||
June 30 | June 30 | March 31 | Jun 30 | Jun 30 | |||||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||||||||||||
Shareholders' equity (tangible), per share | |||||||||||||||||||||||||
Shareholders' equity | $ | 2,024,817 | $ | 2,099,800 | $ | 2,031,513 | |||||||||||||||||||
Less: Goodwill and intangible assets | (531,567 | ) | (532,432 | ) | (531,672 | ) | |||||||||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,493,250 | $ | 1,567,368 | $ | 1,499,841 | |||||||||||||||||||
Shares outstanding, end of period (denominator) | 176,019 | 189,033 | 179,098 | ||||||||||||||||||||||
Shareholders' equity (tangible), per share | $ | 8.48 | $ | 8.29 | $ | 8.37 | |||||||||||||||||||
Return on average common shareholders' equity (tangible) | |||||||||||||||||||||||||
Net income | $ | 36,680 | $ | 39,596 | $ | 40,036 | $ | 76,716 | $ | 81,379 | |||||||||||||||
Plus: Intangible amortization, net of tax | 69 | 204 | 85 | 153 | 410 | ||||||||||||||||||||
Numerator | $ | 36,749 | $ | 39,800 | $ | 40,121 | $ | 76,869 | $ | 81,789 | |||||||||||||||
Average shareholders' equity | $ | 2,031,788 | $ | 2,081,898 | $ | 2,015,963 | $ | 2,023,919 | $ | 2,072,459 | |||||||||||||||
Less: Average goodwill and intangible assets | (531,618 | ) | (532,585 | ) | (531,732 | ) | (531,675 | ) | (532,742 | ) | |||||||||||||||
Average tangible shareholders' equity (denominator) | $ | 1,500,170 | $ | 1,549,313 | $ | 1,484,231 | $ | 1,492,244 | $ | 1,539,717 | |||||||||||||||
Return on average common shareholders' equity (tangible), annualized | 9.83 | % | 10.30 | % | 10.96 | % | 10.39 | % | 10.71 | % | |||||||||||||||
Efficiency ratio | |||||||||||||||||||||||||
Non-interest expense | $ | 118,354 | $ | 116,174 | $ | 118,478 | $ | 236,832 | $ | 225,728 | |||||||||||||||
Less: Intangible amortization | (106 | ) | (315 | ) | (130 | ) | (236 | ) | (630 | ) | |||||||||||||||
Numerator | $ | 118,248 | $ | 115,859 | $ | 118,348 | $ | 236,596 | $ | 225,098 | |||||||||||||||
Net interest income (fully taxable equivalent) | $ | 127,445 | $ | 132,175 | $ | 128,086 | $ | 255,531 | $ | 266,016 | |||||||||||||||
Plus: Total Non-interest income | 46,489 | 44,872 | 44,737 | 91,226 | 83,378 | ||||||||||||||||||||
Less: Investment securities gains | (2,415 | ) | (1,112 | ) | (4,145 | ) | (6,560 | ) | (1,112 | ) | |||||||||||||||
Denominator | $ | 171,519 | $ | 175,935 | $ | 168,678 | $ | 340,197 | $ | 348,282 | |||||||||||||||
Efficiency ratio | 68.94 | % | 65.85 | % | 70.16 | % | 69.55 | % | 64.64 | % | |||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | |||||||||||||||||||||||||
Non-performing assets (numerator) | $ | 162,268 | $ | 162,794 | $ | 163,545 | |||||||||||||||||||
Tangible shareholders' equity | $ | 1,493,250 | $ | 1,567,368 | $ | 1,499,841 | |||||||||||||||||||
Plus: Allowance for credit losses | 169,453 | 193,442 | 179,658 | ||||||||||||||||||||||
Tangible shareholders' equity and allowance for credit losses (denominator) | $ | 1,662,703 | $ | 1,760,810 | $ | 1,679,499 | |||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.76 | % | 9.25 | % | 9.74 | % | |||||||||||||||||||