Attached files
| file | filename |
|---|---|
| 8-K - 8-K - FULTON FINANCIAL CORP | fult8-k12x31x15.htm |
| EX-99.3 - PRESENTATION MATERIALS TO BE DISCUSSED DURING THE CONFERENCE CALL AND WEBCAST - FULTON FINANCIAL CORP | q4earningsccpresentation.htm |
| EX-99.1 - PRESS RELEASE DATED JANUARY 19, 2016 - FULTON FINANCIAL CORP | exhibit99112-31x15.htm |
Exhibit 99.2 | ||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||
dollars in thousands | ||||||||||||||||||
% Change from | ||||||||||||||||||
December 31 | December 31 | September 30 | December 31 | September | ||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | ||||||||||||||
ASSETS | ||||||||||||||||||
Cash and due from banks | $ | 101,120 | $ | 105,702 | $ | 93,803 | (4.3 | )% | 7.8 | % | ||||||||
Other interest-earning assets | 292,516 | 423,083 | 579,920 | (30.9 | )% | (49.6 | )% | |||||||||||
Loans held for sale | 16,886 | 17,522 | 26,937 | (3.6 | )% | (37.3 | )% | |||||||||||
Investment securities | 2,484,773 | 2,323,371 | 2,436,337 | 6.9 | % | 2.0 | % | |||||||||||
Loans, net of unearned income | 13,838,602 | 13,111,716 | 13,536,361 | 5.5 | % | 2.2 | % | |||||||||||
Allowance for loan losses | (169,054 | ) | (184,144 | ) | (167,136 | ) | (8.2 | )% | 1.1 | % | ||||||||
Net loans | 13,669,548 | 12,927,572 | 13,369,225 | 5.7 | % | 2.2 | % | |||||||||||
Premises and equipment | 225,535 | 226,027 | 225,705 | (0.2 | )% | (0.1 | )% | |||||||||||
Accrued interest receivable | 42,767 | 41,818 | 42,846 | 2.3 | % | (0.2 | )% | |||||||||||
Goodwill and intangible assets | 531,556 | 531,803 | 531,562 | — | % | — | % | |||||||||||
Other assets | 550,017 | 527,869 | 531,724 | 4.2 | % | 3.4 | % | |||||||||||
Total Assets | $ | 17,914,718 | $ | 17,124,767 | $ | 17,838,059 | 4.6 | % | 0.4 | % | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Deposits | $ | 14,132,317 | $ | 13,367,506 | $ | 14,084,394 | 5.7 | % | 0.3 | % | ||||||||
Short-term borrowings | 497,663 | 329,719 | 431,631 | 50.9 | % | 15.3 | % | |||||||||||
Other liabilities | 293,302 | 291,464 | 316,697 | 0.6 | % | (7.4 | )% | |||||||||||
FHLB advances and long-term debt | 949,542 | 1,139,413 | 979,433 | (16.7 | )% | (3.1 | )% | |||||||||||
Total Liabilities | 15,872,824 | 15,128,102 | 15,812,155 | 4.9 | % | 0.4 | % | |||||||||||
Shareholders' equity | 2,041,894 | 1,996,665 | 2,025,904 | 2.3 | % | 0.8 | % | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,914,718 | $ | 17,124,767 | $ | 17,838,059 | 4.6 | % | 0.4 | % | ||||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||
Loans, by type: | ||||||||||||||||||
Real estate - commercial mortgage | $ | 5,462,330 | $ | 5,197,155 | $ | 5,339,928 | 5.1 | % | 2.3 | % | ||||||||
Commercial - industrial, financial and agricultural | 4,088,962 | 3,725,567 | 3,929,908 | 9.8 | % | 4.0 | % | |||||||||||
Real estate - home equity | 1,684,439 | 1,736,688 | 1,693,649 | (3.0 | )% | (0.5 | )% | |||||||||||
Real estate - residential mortgage | 1,376,160 | 1,377,068 | 1,382,085 | (0.1 | )% | (0.4 | )% | |||||||||||
Real estate - construction | 799,988 | 690,601 | 769,565 | 15.8 | % | 4.0 | % | |||||||||||
Consumer | 268,588 | 265,431 | 271,696 | 1.2 | % | (1.1 | )% | |||||||||||
Leasing and other | 158,135 | 119,206 | 149,530 | 32.7 | % | 5.8 | % | |||||||||||
Total Loans, net of unearned income | $ | 13,838,602 | $ | 13,111,716 | $ | 13,536,361 | 5.5 | % | 2.2 | % | ||||||||
Deposits, by type: | ||||||||||||||||||
Noninterest-bearing demand | $ | 3,948,114 | $ | 3,640,623 | $ | 3,906,228 | 8.4 | % | 1.1 | % | ||||||||
Interest-bearing demand | 3,451,207 | 3,150,612 | 3,362,336 | 9.5 | % | 2.6 | % | |||||||||||
Savings deposits | 3,868,046 | 3,504,820 | 3,880,103 | 10.4 | % | (0.3 | )% | |||||||||||
Time deposits | 2,864,950 | 3,071,451 | 2,935,727 | (6.7 | )% | (2.4 | )% | |||||||||||
Total Deposits | $ | 14,132,317 | $ | 13,367,506 | $ | 14,084,394 | 5.7 | % | 0.3 | % | ||||||||
Short-term borrowings, by type: | ||||||||||||||||||
Customer repurchase agreements | $ | 111,496 | $ | 158,394 | $ | 145,225 | (29.6 | )% | (23.2 | )% | ||||||||
Customer short-term promissory notes | 78,932 | 95,106 | 80,879 | (17.0 | )% | (2.4 | )% | |||||||||||
Short-term FHLB advances | 110,000 | 70,000 | 200,000 | 57.1 | % | (45.0 | )% | |||||||||||
Federal funds purchased | 197,235 | 6,219 | 5,527 | N/M | N/M | |||||||||||||
Total Short-term Borrowings | $ | 497,663 | $ | 329,719 | $ | 431,631 | 50.9 | % | 15.3 | % | ||||||||
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 | Year ended | ||||||||||||||||||||||||||||||
December 31 | December 31 | September 30 | Dec 31 | Sep 30 | December 31 | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2015 | 2014 | % Change | |||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||||||||
Interest income | $ | 147,560 | $ | 149,594 | $ | 146,228 | (1.4 | )% | 0.9 | % | $ | 583,789 | $ | 596,078 | (2.1 | )% | ||||||||||||||||
Interest expense | 19,761 | 21,556 | 20,534 | (8.3 | )% | (3.8 | )% | 83,795 | 81,211 | 3.2 | % | |||||||||||||||||||||
Net Interest Income | 127,799 | 128,038 | 125,694 | (0.2 | )% | 1.7 | % | 499,994 | 514,867 | (2.9 | )% | |||||||||||||||||||||
Provision for credit losses | 2,750 | 3,000 | 1,000 | (8.3 | )% | 175.0 | % | 2,250 | 12,500 | N/M | ||||||||||||||||||||||
Net Interest Income after Provision | 125,049 | 125,038 | 124,694 | — | % | 0.3 | % | 497,744 | 502,367 | (0.9 | )% | |||||||||||||||||||||
Non-Interest Income: | ||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 12,909 | 12,229 | 12,982 | 5.6 | % | (0.6 | )% | 50,097 | 49,293 | 1.6 | % | |||||||||||||||||||||
Other service charges and fees | 12,676 | 10,489 | 10,965 | 20.9 | % | 15.6 | % | 43,992 | 39,896 | 10.3 | % | |||||||||||||||||||||
Investment management and trust services | 10,919 | 11,188 | 11,237 | (2.4 | )% | (2.8 | )% | 44,056 | 44,605 | (1.2 | )% | |||||||||||||||||||||
Mortgage banking income | 4,317 | 3,723 | 3,864 | 16.0 | % | 11.7 | % | 18,208 | 17,107 | 6.4 | % | |||||||||||||||||||||
Investment securities gains | 776 | 848 | 1,730 | (8.5 | )% | (55.1 | )% | 9,066 | 2,041 | N/M | ||||||||||||||||||||||
Other | 4,242 | 3,624 | 3,996 | 17.1 | % | 6.2 | % | 16,420 | 14,437 | 13.7 | % | |||||||||||||||||||||
Total Non-Interest Income | 45,839 | 42,101 | 44,774 | 8.9 | % | 2.4 | % | 181,839 | 167,379 | 8.6 | % | |||||||||||||||||||||
Non-Interest Expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | 65,467 | 65,398 | 65,308 | 0.1 | % | 0.2 | % | 260,832 | 251,021 | 3.9 | % | |||||||||||||||||||||
Net occupancy expense | 11,566 | 11,481 | 10,710 | 0.7 | % | 8.0 | % | 47,777 | 48,130 | (0.7 | )% | |||||||||||||||||||||
Other outside services | 6,537 | 8,720 | 7,373 | (25.0 | )% | (11.3 | )% | 27,785 | 28,404 | (2.2 | )% | |||||||||||||||||||||
Data processing | 5,127 | 4,346 | 5,105 | 18.0 | % | 0.4 | % | 19,894 | 17,162 | 15.9 | % | |||||||||||||||||||||
Software | 4,068 | 3,271 | 3,984 | 24.4 | % | 2.1 | % | 14,746 | 12,758 | 15.6 | % | |||||||||||||||||||||
Equipment expense | 3,626 | 3,298 | 3,595 | 9.9 | % | 0.9 | % | 14,514 | 13,567 | 7.0 | % | |||||||||||||||||||||
FDIC insurance expense | 2,896 | 2,772 | 2,867 | 4.5 | % | 1.0 | % | 11,470 | 10,958 | 4.7 | % | |||||||||||||||||||||
Professional fees | 2,814 | 2,382 | 2,828 | 18.1 | % | (0.5 | )% | 11,244 | 12,097 | (7.1 | )% | |||||||||||||||||||||
Marketing | 1,754 | 2,414 | 2,102 | (27.3 | )% | (16.6 | )% | 7,324 | 8,133 | (9.9 | )% | |||||||||||||||||||||
OREO and repossession expense | 1,123 | 236 | 1,016 | N/M | 10.5 | % | 3,630 | 3,270 | 11.0 | % | ||||||||||||||||||||||
Operating risk loss | 987 | 485 | 1,136 | N/M | (13.1 | )% | 3,624 | 4,271 | (15.1 | )% | ||||||||||||||||||||||
Intangible amortization | 6 | 315 | 5 | (98.1 | )% | 20.0 | % | 247 | 1,259 | (80.4 | )% | |||||||||||||||||||||
Loss on redemption of trust preferred securities | — | — | 5,626 | N/M | N/M | 5,626 | — | N/M | ||||||||||||||||||||||||
Other | 12,468 | 12,602 | 13,234 | (1.1 | )% | (5.8 | )% | 51,447 | 48,216 | 6.7 | % | |||||||||||||||||||||
Total Non-Interest Expense | 118,439 | 117,720 | 124,889 | 0.6 | % | (5.2 | )% | 480,160 | 459,246 | 4.6 | % | |||||||||||||||||||||
Income Before Income Taxes | 52,449 | 49,419 | 44,579 | 6.1 | % | 17.7 | % | 199,423 | 210,500 | (5.3 | )% | |||||||||||||||||||||
Income tax expense | 13,914 | 11,470 | 10,328 | 21.3 | % | 34.7 | % | 49,921 | 52,606 | (5.1 | )% | |||||||||||||||||||||
Net Income | $ | 38,535 | $ | 37,949 | $ | 34,251 | 1.5 | % | 12.5 | % | $ | 149,502 | $ | 157,894 | (5.3 | )% | ||||||||||||||||
PER SHARE: | ||||||||||||||||||||||||||||||||
Net income: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.22 | $ | 0.21 | $ | 0.20 | 4.8 | % | 10.0 | % | $ | 0.85 | $ | 0.85 | — | % | ||||||||||||||||
Diluted | 0.22 | 0.21 | 0.20 | 4.8 | % | 10.0 | % | 0.85 | 0.84 | 1.2 | % | |||||||||||||||||||||
Cash dividends | $ | 0.09 | $ | 0.10 | $ | 0.09 | (10.0 | )% | — | % | $ | 0.36 | $ | 0.34 | 5.9 | % | ||||||||||||||||
Shareholders' equity | 11.72 | 11.16 | 11.66 | 5.0 | % | 0.5 | % | 11.72 | 11.16 | 5.0 | % | |||||||||||||||||||||
Shareholders' equity (tangible) | 8.67 | 8.19 | 8.60 | 5.9 | % | 0.8 | % | 8.67 | 8.19 | 5.9 | % | |||||||||||||||||||||
Weighted average shares (basic) | 173,709 | 181,251 | 174,338 | (4.2 | )% | (0.4 | )% | 175,721 | 186,219 | (5.6 | )% | |||||||||||||||||||||
Weighted average shares (diluted) | 174,833 | 182,189 | 175,342 | (4.0 | )% | (0.3 | )% | 176,774 | 187,181 | (5.6 | )% | |||||||||||||||||||||
Shares outstanding, end of period | 174,176 | 178,924 | 173,771 | (2.7 | )% | 0.2 | % | 174,176 | 178,924 | (2.7 | )% | |||||||||||||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||||||||||||||||||
Return on average assets | 0.86 | % | 0.88 | % | 0.78 | % | 0.86 | % | 0.93 | % | ||||||||||||||||||||||
Return on average shareholders' equity | 7.51 | % | 7.34 | % | 6.72 | % | 7.38 | % | 7.62 | % | ||||||||||||||||||||||
Return on average shareholders' equity (tangible) | 10.16 | % | 9.96 | % | 9.11 | % | 10.01 | % | 10.31 | % | ||||||||||||||||||||||
Net interest margin | 3.19 | % | 3.31 | % | 3.18 | % | 3.21 | % | 3.39 | % | ||||||||||||||||||||||
Efficiency ratio | 66.63 | % | 67.53 | % | 68.82 | % | 68.61 | % | 65.65 | % | ||||||||||||||||||||||
N/M - Not meaningful | ||||||||||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
December 31, 2015 | December 31, 2014 | September 30, 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 | $ | 13,659,266 | $ | 136,317 | 3.96% | $ | 13,056,153 | $ | 136,636 | 4.16% | $ | 13,369,874 | $ | 135,268 | 4.02% | |||||||||||||||||
Taxable investment securities | 2,170,397 | 11,801 | 2.17% | 2,109,884 | 12,689 | 2.40% | 2,148,403 | 11,252 | 2.09% | |||||||||||||||||||||||
Tax-exempt investment securities | 246,727 | 3,085 | 5.00% | 241,711 | 3,249 | 5.38% | 230,178 | 2,929 | 5.09% | |||||||||||||||||||||||
Equity securities | 15,524 | 208 | 5.33% | 33,981 | 442 | 5.16% | 18,280 | 257 | 5.58% | |||||||||||||||||||||||
Total Investment Securities | 2,432,648 | 15,094 | 2.48% | 2,385,576 | 16,380 | 2.74% | 2,396,861 | 14,438 | 2.41% | |||||||||||||||||||||||
Loans held for sale | 15,713 | 169 | 4.31% | 15,340 | 201 | 5.24% | 20,704 | 194 | 3.74% | |||||||||||||||||||||||
Other interest-earning assets | 399,309 | 864 | 0.86% | 464,342 | 953 | 0.82% | 477,145 | 884 | 0.74% | |||||||||||||||||||||||
Total Interest-earning Assets | 16,506,936 | 152,444 | 3.67% | 15,921,411 | 154,170 | 3.85% | 16,264,584 | 150,784 | 3.68% | |||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||
Cash and due from banks | 106,810 | 110,292 | 104,622 | |||||||||||||||||||||||||||||
Premises and equipment | 226,335 | 224,516 | 226,446 | |||||||||||||||||||||||||||||
Other assets | 1,108,094 | 1,073,302 | 1,097,600 | |||||||||||||||||||||||||||||
Less: allowance for loan losses | (169,251 | ) | (189,029 | ) | (168,770 | ) | ||||||||||||||||||||||||||
Total Assets | $ | 17,778,924 | $ | 17,140,492 | $ | 17,524,482 | ||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | $ | 3,411,904 | $ | 1,207 | 0.13% | $ | 3,145,658 | $ | 1,027 | 0.13% | $ | 3,316,532 | $ | 1,122 | 0.13% | |||||||||||||||||
Savings deposits | 3,903,741 | 1,633 | 0.17% | 3,548,504 | 1,171 | 0.13% | 3,714,282 | 1,436 | 0.15% | |||||||||||||||||||||||
Time deposits | 2,903,715 | 7,549 | 1.03% | 3,016,834 | 7,333 | 0.96% | 2,963,774 | 7,659 | 1.03% | |||||||||||||||||||||||
Total Interest-bearing Deposits | 10,219,360 | 10,389 | 0.40% | 9,710,996 | 9,531 | 0.39% | 9,994,588 | 10,217 | 0.41% | |||||||||||||||||||||||
Short-term borrowings | 281,497 | 100 | 0.14% | 417,838 | 138 | 0.13% | 324,685 | 92 | 0.11% | |||||||||||||||||||||||
FHLB advances and long-term debt | 950,792 | 9,272 | 3.88% | 1,086,321 | 11,887 | 4.36% | 996,247 | 10,225 | 4.09% | |||||||||||||||||||||||
Total Interest-bearing Liabilities | 11,451,649 | 19,761 | 0.69% | 11,215,155 | 21,556 | 0.76% | 11,315,520 | 20,534 | 0.72% | |||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | 3,999,118 | 3,630,780 | 3,904,176 | |||||||||||||||||||||||||||||
Other | 291,388 | 242,346 | 281,957 | |||||||||||||||||||||||||||||
Total Liabilities | 15,742,155 | 15,088,281 | 15,501,653 | |||||||||||||||||||||||||||||
Shareholders' equity | 2,036,769 | 2,052,211 | 2,022,829 | |||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,778,924 | $ | 17,140,492 | $ | 17,524,482 | ||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 132,683 | 3.19% | 132,614 | 3.31% | 130,250 | 3.18% | ||||||||||||||||||||||||||
Tax equivalent adjustment | (4,884 | ) | (4,576 | ) | (4,556 | ) | ||||||||||||||||||||||||||
Net interest income | $ | 127,799 | $ | 128,038 | $ | 125,694 | ||||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||||||||
December 31 | December 31 | September 30 | December 31 | September 30 | ||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | ||||||||||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 5,365,640 | $ | 5,131,375 | $ | 5,242,021 | 4.6 | % | 2.4 | % | ||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 4,035,287 | 3,723,211 | 3,887,161 | 8.4 | % | 3.8 | % | |||||||||||||||||||||||||
Real estate - home equity | 1,694,455 | 1,735,769 | 1,692,860 | (2.4 | )% | 0.1 | % | |||||||||||||||||||||||||
Real estate - residential mortgage | 1,377,116 | 1,378,452 | 1,381,141 | (0.1 | )% | (0.3 | )% | |||||||||||||||||||||||||
Real estate - construction | 765,555 | 697,741 | 753,584 | 9.7 | % | 1.6 | % | |||||||||||||||||||||||||
Consumer | 267,726 | 275,349 | 270,391 | (2.8 | )% | (1.0 | )% | |||||||||||||||||||||||||
Leasing and other | 153,487 | 114,256 | 142,716 | 34.3 | % | 7.5 | % | |||||||||||||||||||||||||
Total Loans, net of unearned income | $ | 13,659,266 | $ | 13,056,153 | $ | 13,369,874 | 4.6 | % | 2.2 | % | ||||||||||||||||||||||
Deposits, by type: | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,999,118 | $ | 3,630,780 | $ | 3,904,176 | 10.1 | % | 2.4 | % | ||||||||||||||||||||||
Interest-bearing demand | 3,411,904 | 3,145,658 | 3,316,532 | 8.5 | % | 2.9 | % | |||||||||||||||||||||||||
Savings deposits | 3,903,741 | 3,548,504 | 3,714,282 | 10.0 | % | 5.1 | % | |||||||||||||||||||||||||
Time deposits | 2,903,715 | 3,016,834 | 2,963,774 | (3.7 | )% | (2.0 | )% | |||||||||||||||||||||||||
Total Deposits | $ | 14,218,478 | $ | 13,341,776 | $ | 13,898,764 | 6.6 | % | 2.3 | % | ||||||||||||||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||||||||||||||
Customer repurchase agreements | $ | 142,004 | $ | 183,331 | $ | 149,415 | (22.5 | )% | (5.0 | )% | ||||||||||||||||||||||
Customer short-term promissory notes | 80,568 | 87,338 | 79,308 | (7.8 | )% | 1.6 | % | |||||||||||||||||||||||||
Federal funds purchased | 44,468 | 59,669 | 85,092 | (25.5 | )% | (47.7 | )% | |||||||||||||||||||||||||
Short-term FHLB advances and other borrowings | 14,457 | 87,500 | 10,870 | (83.5 | )% | 33.0 | % | |||||||||||||||||||||||||
Total Short-term Borrowings | $ | 281,497 | $ | 417,838 | $ | 324,685 | (32.6 | )% | (13.3 | )% | ||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||||||
dollars in thousands | |||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Balance | Interest (1) | Yield/Rate | Balance | Interest (1) | Yield/Rate | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans, net of unearned income | $ | 13,330,973 | $ | 537,979 | 4.04 | % | $ | 12,885,180 | $ | 542,540 | 4.21 | % | |||||||||||
Taxable investment securities | 2,093,829 | 45,279 | 2.16 | % | 2,189,510 | 50,651 | 2.31 | % | |||||||||||||||
Tax-exempt investment securities | 230,633 | 12,120 | 5.26 | % | 261,825 | 13,810 | 5.27 | % | |||||||||||||||
Equity securities | 23,348 | 1,294 | 5.54 | % | 33,957 | 1,728 | 5.09 | % | |||||||||||||||
Total Investment Securities | 2,347,810 | 58,693 | 2.50 | % | 2,485,292 | 66,189 | 2.66 | % | |||||||||||||||
Loans held for sale | 19,937 | 801 | 4.02 | % | 17,524 | 786 | 4.49 | % | |||||||||||||||
Other interest-earning assets | 447,354 | 4,786 | 1.07 | % | 314,345 | 4,018 | 1.28 | % | |||||||||||||||
Total Interest-earning Assets | 16,146,074 | 602,259 | 3.73 | % | 15,702,341 | 613,533 | 3.91 | % | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||
Cash and due from banks | 105,359 | 177,664 | |||||||||||||||||||||
Premises and equipment | 226,436 | 224,903 | |||||||||||||||||||||
Other assets | 1,103,427 | 1,049,765 | |||||||||||||||||||||
Less: allowance for loan losses | (174,453 | ) | (195,166 | ) | |||||||||||||||||||
Total Assets | $ | 17,406,843 | $ | 16,959,507 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | $ | 3,255,192 | $ | 4,299 | 0.13 | % | $ | 3,013,879 | $ | 3,793 | 0.13 | % | |||||||||||
Savings deposits | 3,677,079 | 5,435 | 0.15 | % | 3,431,957 | 4,298 | 0.13 | % | |||||||||||||||
Time deposits | 2,988,648 | 30,748 | 1.03 | % | 2,992,920 | 27,019 | 0.90 | % | |||||||||||||||
Total Interest-bearing Deposits | 9,920,919 | 40,482 | 0.41 | % | 9,438,756 | 35,110 | 0.37 | % | |||||||||||||||
Short-term borrowings | 323,772 | 372 | 0.11 | % | 832,839 | 1,608 | 0.19 | % | |||||||||||||||
FHLB advances and long-term debt | 1,023,972 | 42,941 | 4.19 | % | 965,601 | 44,493 | 4.61 | % | |||||||||||||||
Total Interest-bearing Liabilities | 11,268,663 | 83,795 | 0.74 | % | 11,237,196 | 81,211 | 0.72 | % | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | 3,826,194 | 3,428,907 | |||||||||||||||||||||
Other | 285,103 | 221,764 | |||||||||||||||||||||
Total Liabilities | 15,379,960 | 14,887,867 | |||||||||||||||||||||
Shareholders' equity | 2,026,883 | 2,071,640 | |||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,406,843 | $ | 16,959,507 | |||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 518,464 | 3.21 | % | 532,322 | 3.39 | % | |||||||||||||||||
Tax equivalent adjustment | (18,470 | ) | (17,455 | ) | |||||||||||||||||||
Net interest income | $ | 499,994 | $ | 514,867 | |||||||||||||||||||
(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: | |||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||
December 31 | |||||||||||||||||||||||
2015 | 2014 | % Change | |||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 5,246,054 | $ | 5,117,433 | 2.5 | % | |||||||||||||||||
Commercial - industrial, financial and agricultural | 3,882,998 | 3,659,059 | 6.1 | % | |||||||||||||||||||
Real estate - home equity | 1,700,851 | 1,738,449 | (2.2 | )% | |||||||||||||||||||
Real estate - residential mortgage | 1,371,321 | 1,355,876 | 1.1 | % | |||||||||||||||||||
Real estate - construction | 726,914 | 631,968 | 15.0 | % | |||||||||||||||||||
Consumer | 265,688 | 277,853 | (4.4 | )% | |||||||||||||||||||
Leasing and other | 137,147 | 104,542 | 31.2 | % | |||||||||||||||||||
Total Loans, net of unearned income | $ | 13,330,973 | $ | 12,885,180 | 3.5 | % | |||||||||||||||||
Deposits, by type: | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,826,194 | $ | 3,428,907 | 11.6 | % | |||||||||||||||||
Interest-bearing demand | 3,255,192 | 3,013,879 | 8.0 | % | |||||||||||||||||||
Savings deposits | 3,677,079 | 3,431,957 | 7.1 | % | |||||||||||||||||||
Time deposits | 2,988,648 | 2,992,920 | (0.1 | )% | |||||||||||||||||||
Total Deposits | $ | 13,747,113 | $ | 12,867,663 | 6.8 | % | |||||||||||||||||
Short-term borrowings, by type: | |||||||||||||||||||||||
Customer repurchase agreements | $ | 161,093 | $ | 197,432 | (18.4 | )% | |||||||||||||||||
Customer short-term promissory notes | 81,530 | 88,670 | (8.1 | )% | |||||||||||||||||||
Federal funds purchased | 65,779 | 285,169 | (76.9 | )% | |||||||||||||||||||
Short-term FHLB advances and other borrowings | 15,370 | 261,568 | (94.1 | )% | |||||||||||||||||||
Total Short-term Borrowings | $ | 323,772 | $ | 832,839 | (61.1 | )% | |||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
ASSET QUALITY INFORMATION (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
Dec 31 | Dec 31 | Sep 30 | Dec 31 | |||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | ||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 169,395 | $ | 191,108 | $ | 169,453 | $ | 185,931 | $ | 204,917 | ||||||||||||||||||||||
Loans charged off: | ||||||||||||||||||||||||||||||||
Consumer and home equity | (1,466 | ) | (1,696 | ) | (1,590 | ) | (5,831 | ) | (7,811 | ) | ||||||||||||||||||||||
Real estate - commercial mortgage | (1,207 | ) | (920 | ) | (660 | ) | (4,218 | ) | (6,004 | ) | ||||||||||||||||||||||
Commercial - industrial, financial and agricultural | (970 | ) | (8,712 | ) | (1,640 | ) | (15,639 | ) | (24,516 | ) | ||||||||||||||||||||||
Real estate - residential mortgage | (513 | ) | (752 | ) | (1,035 | ) | (3,612 | ) | (2,918 | ) | ||||||||||||||||||||||
Real estate - construction | — | (464 | ) | (114 | ) | (201 | ) | (1,209 | ) | |||||||||||||||||||||||
Leasing and other | (1,304 | ) | (701 | ) | (522 | ) | (2,656 | ) | (2,135 | ) | ||||||||||||||||||||||
Total loans charged off | (5,460 | ) | (13,245 | ) | (5,561 | ) | (32,157 | ) | (44,593 | ) | ||||||||||||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||||||||||||||
Consumer and home equity | 825 | 419 | 618 | 2,492 | 2,347 | |||||||||||||||||||||||||||
Real estate - commercial mortgage | 1,072 | 319 | 842 | 2,801 | 1,960 | |||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 1,409 | 1,724 | 1,598 | 5,264 | 4,256 | |||||||||||||||||||||||||||
Real estate - residential mortgage | 775 | 132 | 201 | 1,322 | 451 | |||||||||||||||||||||||||||
Real estate - construction | 548 | 2,325 | 898 | 2,824 | 3,177 | |||||||||||||||||||||||||||
Leasing and other | 98 | 149 | 346 | 685 | 916 | |||||||||||||||||||||||||||
Recoveries of loans previously charged off | 4,727 | 5,068 | 4,503 | 15,388 | 13,107 | |||||||||||||||||||||||||||
Net loans charged off | (733 | ) | (8,177 | ) | (1,058 | ) | (16,769 | ) | (31,486 | ) | ||||||||||||||||||||||
Provision for credit losses | 2,750 | 3,000 | 1,000 | 2,250 | 12,500 | |||||||||||||||||||||||||||
Balance at end of period | $ | 171,412 | $ | 185,931 | $ | 169,395 | $ | 171,412 | $ | 185,931 | ||||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.02 | % | 0.25 | % | 0.03 | % | 0.13 | % | 0.24 | % | ||||||||||||||||||||||
NON-PERFORMING ASSETS: | ||||||||||||||||||||||||||||||||
Non-accrual loans | $ | 129,523 | $ | 121,080 | $ | 132,154 | ||||||||||||||||||||||||||
Loans 90 days past due and accruing | 15,291 | 17,402 | 12,867 | |||||||||||||||||||||||||||||
Total non-performing loans | 144,814 | 138,482 | 145,021 | |||||||||||||||||||||||||||||
Other real estate owned | 11,099 | 12,022 | 10,561 | |||||||||||||||||||||||||||||
Total non-performing assets | $ | 155,913 | $ | 150,504 | $ | 155,582 | ||||||||||||||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | $ | 44,071 | $ | 30,388 | $ | 38,032 | ||||||||||||||||||||||||||
Real estate - commercial mortgage | 41,170 | 45,237 | 49,021 | |||||||||||||||||||||||||||||
Real estate - residential mortgage | 28,484 | 28,995 | 27,707 | |||||||||||||||||||||||||||||
Consumer and home equity | 17,123 | 17,330 | 15,186 | |||||||||||||||||||||||||||||
Real estate - construction | 12,460 | 16,399 | 14,989 | |||||||||||||||||||||||||||||
Leasing | 1,506 | 133 | 86 | |||||||||||||||||||||||||||||
Total non-performing loans | $ | 144,814 | $ | 138,482 | $ | 145,021 | ||||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE: | ||||||||||||||||||||||||||||||||
Real-estate - residential mortgage | $ | 28,511 | $ | 31,308 | $ | 29,330 | ||||||||||||||||||||||||||
Real-estate - commercial mortgage | 17,563 | 18,822 | 17,282 | |||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 5,953 | 5,237 | 7,399 | |||||||||||||||||||||||||||||
Real estate - construction | 3,942 | 9,241 | 4,363 | |||||||||||||||||||||||||||||
Consumer and home equity | 4,589 | 3,013 | 3,983 | |||||||||||||||||||||||||||||
Total accruing TDRs | $ | 60,558 | $ | 67,621 | $ | 62,357 | ||||||||||||||||||||||||||
Non-accrual TDRs (1) | 31,035 | 24,616 | 27,618 | |||||||||||||||||||||||||||||
Total TDRs | $ | 91,593 | $ | 92,237 | $ | 89,975 | ||||||||||||||||||||||||||
(1) Included within non-accrual loans above. | ||||||||||||||||||||||||||||||||
DELINQUENCY RATES, BY TYPE: | ||||||||||||||||||||||||||||||||
December 31, 2015 | December 31, 2014 | September 30, 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 | 0.14 | % | 0.77 | % | 0.91 | % | 0.35 | % | 0.87 | % | 1.22 | % | 0.16 | % | 0.92 | % | 1.08 | % | ||||||||||||||
Commercial - industrial, financial and agricultural | 0.21 | % | 1.06 | % | 1.27 | % | 0.17 | % | 0.81 | % | 0.98 | % | 0.35 | % | 0.97 | % | 1.32 | % | ||||||||||||||
Real estate - construction | 0.28 | % | 1.59 | % | 1.87 | % | 0.02 | % | 2.38 | % | 2.40 | % | 0.30 | % | 1.95 | % | 2.25 | % | ||||||||||||||
Real estate - residential mortgage | 1.33 | % | 2.07 | % | 3.40 | % | 1.96 | % | 2.10 | % | 4.06 | % | 1.27 | % | 2.00 | % | 3.27 | % | ||||||||||||||
Consumer, home equity, leasing and other | 0.70 | % | 0.88 | % | 1.58 | % | 0.80 | % | 0.82 | % | 1.62 | % | 0.69 | % | 0.72 | % | 1.41 | % | ||||||||||||||
Total | 0.37 | % | 1.04 | % | 1.41 | % | 0.52 | % | 1.06 | % | 1.58 | % | 0.42 | % | 1.07 | % | 1.49 | % | ||||||||||||||
(2) Includes non-accrual loans | ||||||||||||||||||||||||||||||||
ASSET QUALITY RATIOS: | ||||||||||||||||||||||||||||||||
Dec 31 | Dec 31 | Sep 30 | ||||||||||||||||||||||||||||||
2015 | 2014 | 2015 | ||||||||||||||||||||||||||||||
Non-accrual loans to total loans | 0.94 | % | 0.92 | % | 0.98 | % | ||||||||||||||||||||||||||
Non-performing loans to total loans | 1.05 | % | 1.06 | % | 1.07 | % | ||||||||||||||||||||||||||
Non-performing assets to total loans and OREO | 1.13 | % | 1.15 | % | 1.15 | % | ||||||||||||||||||||||||||
Non-performing assets to total assets | 0.87 | % | 0.88 | % | 0.87 | % | ||||||||||||||||||||||||||
Allowance for credit losses to loans outstanding | 1.24 | % | 1.42 | % | 1.25 | % | ||||||||||||||||||||||||||
Allowance for credit losses to non-performing loans | 118.37 | % | 134.26 | % | 116.81 | % | ||||||||||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.27 | % | 9.12 | % | 9.35 | % | ||||||||||||||||||||||||||
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 | Year Ended | ||||||||||||||||||||||||
Dec 31 | Dec 31 | Sep 30 | Dec 31 | Dec 31 | |||||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||||||||||||
Shareholders' equity (tangible), per share | |||||||||||||||||||||||||
Shareholders' equity | $ | 2,041,894 | $ | 1,996,665 | $ | 2,025,904 | |||||||||||||||||||
Less: Goodwill and intangible assets | (531,556 | ) | (531,803 | ) | (531,562 | ) | |||||||||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,510,338 | $ | 1,464,862 | $ | 1,494,342 | |||||||||||||||||||
Shares outstanding, end of period (denominator) | 174,176 | 178,924 | 173,771 | ||||||||||||||||||||||
Shareholders' equity (tangible), per share | $ | 8.67 | $ | 8.19 | $ | 8.60 | |||||||||||||||||||
Return on average common shareholders' equity (tangible) | |||||||||||||||||||||||||
Net income | $ | 38,535 | $ | 37,949 | $ | 34,251 | $ | 149,502 | $ | 157,894 | |||||||||||||||
Plus: Intangible amortization, net of tax | 4 | 205 | 3 | 161 | 818 | ||||||||||||||||||||
Numerator | $ | 38,539 | $ | 38,154 | $ | 34,254 | $ | 149,663 | $ | 158,712 | |||||||||||||||
Average shareholders' equity | $ | 2,036,769 | $ | 2,052,211 | $ | 2,022,829 | $ | 2,026,883 | $ | 2,071,640 | |||||||||||||||
Less: Average goodwill and intangible assets | (531,559 | ) | (531,955 | ) | (531,564 | ) | (531,618 | ) | (532,425 | ) | |||||||||||||||
Average tangible shareholders' equity (denominator) | $ | 1,505,210 | $ | 1,520,256 | $ | 1,491,265 | $ | 1,495,265 | $ | 1,539,215 | |||||||||||||||
Return on average common shareholders' equity (tangible), annualized | 10.16 | % | 9.96 | % | 9.11 | % | 10.01 | % | 10.31 | % | |||||||||||||||
Efficiency ratio | |||||||||||||||||||||||||
Non-interest expense | $ | 118,439 | $ | 117,720 | $ | 124,889 | $ | 480,160 | $ | 459,246 | |||||||||||||||
Less: Intangible amortization | (6 | ) | (315 | ) | (5 | ) | (247 | ) | (1,259 | ) | |||||||||||||||
Less: Loss on redemption of trust preferred securities | — | — | (5,626 | ) | (5,626 | ) | — | ||||||||||||||||||
Numerator | $ | 118,433 | $ | 117,405 | $ | 119,258 | $ | 474,287 | $ | 457,987 | |||||||||||||||
Net interest income (fully taxable equivalent) | $ | 132,683 | $ | 132,614 | $ | 130,250 | $ | 518,464 | $ | 532,322 | |||||||||||||||
Plus: Total Non-interest income | 45,839 | 42,101 | 44,774 | 181,839 | 167,379 | ||||||||||||||||||||
Less: Investment securities gains | (776 | ) | (848 | ) | (1,730 | ) | (9,066 | ) | (2,041 | ) | |||||||||||||||
Denominator | $ | 177,746 | $ | 173,867 | $ | 173,294 | $ | 691,237 | $ | 697,660 | |||||||||||||||
Efficiency ratio | 66.63 | % | 67.53 | % | 68.82 | % | 68.61 | % | 65.65 | % | |||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | |||||||||||||||||||||||||
Non-performing assets (numerator) | $ | 155,913 | $ | 150,504 | $ | 155,582 | |||||||||||||||||||
Tangible shareholders' equity | $ | 1,510,338 | $ | 1,464,862 | $ | 1,494,342 | |||||||||||||||||||
Plus: Allowance for credit losses | 171,412 | 185,931 | 169,395 | ||||||||||||||||||||||
Tangible shareholders' equity and allowance for credit losses (denominator) | $ | 1,681,750 | $ | 1,650,793 | $ | 1,663,737 | |||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.27 | % | 9.12 | % | 9.35 | % | |||||||||||||||||||