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 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | ||||||||||||||
ASSETS | ||||||||||||||||||
Cash and due from banks | $ | 262,938 | $ | 217,207 | $ | 219,944 | 21.1 | % | 19.5 | % | ||||||||
Other interest-earning assets | 221,064 | 202,305 | 130,065 | 9.3 | % | 70.0 | % | |||||||||||
Loans held for sale | 39,273 | 85,477 | 60,909 | (54.1 | )% | (35.5 | )% | |||||||||||
Investment securities | 2,686,649 | 2,790,138 | 2,915,879 | (3.7 | )% | (7.9 | )% | |||||||||||
Loans, net of unearned income | 12,798,865 | 11,935,260 | 12,645,418 | 7.2 | % | 1.2 | % | |||||||||||
Allowance for loan losses | (210,486 | ) | (233,864 | ) | (216,431 | ) | (10.0 | )% | (2.7 | )% | ||||||||
Net loans | 12,588,379 | 11,701,396 | 12,428,987 | 7.6 | % | 1.3 | % | |||||||||||
Premises and equipment | 227,299 | 225,771 | 224,418 | 0.7 | % | 1.3 | % | |||||||||||
Accrued interest receivable | 44,715 | 49,784 | 45,713 | (10.2 | )% | (2.2 | )% | |||||||||||
Goodwill and intangible assets | 533,918 | 541,845 | 534,452 | (1.5 | )% | (0.1 | )% | |||||||||||
Other assets | 464,502 | 463,420 | 462,043 | 0.2 | % | 0.5 | % | |||||||||||
Total Assets | $ | 17,068,737 | $ | 16,277,343 | $ | 17,022,410 | 4.9 | % | 0.3 | % | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Deposits | $ | 12,721,121 | $ | 12,610,359 | $ | 12,257,809 | 0.9 | % | 3.8 | % | ||||||||
Short-term borrowings | 1,198,577 | 486,971 | 1,620,318 | 146.1 | % | (26.0 | )% | |||||||||||
Other liabilities | 230,953 | 210,707 | 226,384 | 9.6 | % | 2.0 | % | |||||||||||
FHLB advances and long-term debt | 889,122 | 908,623 | 889,167 | (2.1 | )% | — | % | |||||||||||
Total Liabilities | 15,039,773 | 14,216,660 | 14,993,678 | 5.8 | % | 0.3 | % | |||||||||||
Shareholders' equity | 2,028,964 | 2,060,683 | 2,028,732 | (1.5 | )% | — | % | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,068,737 | $ | 16,277,343 | $ | 17,022,410 | 4.9 | % | 0.3 | % | ||||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||
Loans, by type: | ||||||||||||||||||
Real estate - commercial mortgage | $ | 5,063,373 | $ | 4,632,509 | $ | 4,856,916 | 9.3 | % | 4.3 | % | ||||||||
Commercial - industrial, financial and agricultural | 3,645,270 | 3,507,846 | 3,712,974 | 3.9 | % | (1.8 | )% | |||||||||||
Real estate - home equity | 1,773,554 | 1,603,456 | 1,760,268 | 10.6 | % | 0.8 | % | |||||||||||
Real estate - residential mortgage | 1,327,469 | 1,214,322 | 1,313,345 | 9.3 | % | 1.1 | % | |||||||||||
Real estate - construction | 577,342 | 597,358 | 610,280 | (3.4 | )% | (5.4 | )% | |||||||||||
Consumer | 296,142 | 301,717 | 300,233 | (1.8 | )% | (1.4 | )% | |||||||||||
Leasing and other | 115,715 | 78,052 | 91,402 | 48.3 | % | 26.6 | % | |||||||||||
Total Loans, net of unearned income | $ | 12,798,865 | $ | 11,935,260 | $ | 12,645,418 | 7.2 | % | 1.2 | % | ||||||||
Deposits, by type: | ||||||||||||||||||
Noninterest-bearing demand | $ | 3,338,075 | $ | 2,904,844 | $ | 3,168,781 | 14.9 | % | 5.3 | % | ||||||||
Interest-bearing demand | 2,986,549 | 2,702,710 | 2,714,545 | 10.5 | % | 10.0 | % | |||||||||||
Savings deposits | 3,371,923 | 3,423,807 | 3,272,557 | (1.5 | )% | 3.0 | % | |||||||||||
Time deposits | 3,024,574 | 3,578,998 | 3,101,926 | (15.5 | )% | (2.5 | )% | |||||||||||
Total Deposits | $ | 12,721,121 | $ | 12,610,359 | $ | 12,257,809 | 0.9 | % | 3.8 | % | ||||||||
Short-term borrowings, by type: | ||||||||||||||||||
Customer repurchase agreements | $ | 209,800 | $ | 192,082 | $ | 196,188 | 9.2 | % | 6.9 | % | ||||||||
Customer short-term promissory notes | 95,503 | 124,628 | 93,671 | (23.4 | )% | 2.0 | % | |||||||||||
Federal funds purchased | 493,274 | 170,261 | 780,459 | 189.7 | % | (36.8 | )% | |||||||||||
Short-term FHLB advances | 400,000 | — | 550,000 | N/M | (27.3 | )% | ||||||||||||
Total Short-term Borrowings | $ | 1,198,577 | $ | 486,971 | $ | 1,620,318 | 146.1 | % | (26.0 | )% | ||||||||
N/M - Not Meaningful |
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||||||||||||||||||
in thousands, except per-share data and percentages | ||||||||||||||||||||||||||||||||||
Quarter Ended | % Change from | Nine Months ended | ||||||||||||||||||||||||||||||||
Sep 30 | Sep 30 | Jun 30 | Sep 30 | Jun 30 | Sep 30 | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2013 | 2012 | % Change | |||||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||||||||||
Interest income | $ | 152,832 | $ | 161,060 | $ | 153,078 | (5.1 | )% | (0.2 | )% | $ | 457,232 | $ | 491,936 | (7.1 | )% | ||||||||||||||||||
Interest expense | 20,299 | 25,179 | 21,013 | (19.4 | )% | (3.4 | )% | 62,990 | 79,830 | (21.1 | )% | |||||||||||||||||||||||
Net Interest Income | 132,533 | 135,881 | 132,065 | (2.5 | )% | 0.4 | % | 394,242 | 412,106 | (4.3 | )% | |||||||||||||||||||||||
Provision for credit losses | 9,500 | 23,000 | 13,500 | (58.7 | )% | (29.6 | )% | 38,000 | 76,500 | (50.3 | )% | |||||||||||||||||||||||
Net Interest Income after Provision | 123,033 | 112,881 | 118,565 | 9.0 | % | 3.8 | % | 356,242 | 335,606 | 6.1 | % | |||||||||||||||||||||||
Non-Interest Income: | ||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 13,938 | 15,651 | 14,651 | (10.9 | )% | (4.9 | )% | 42,700 | 45,860 | (6.9 | )% | |||||||||||||||||||||||
Investment management and trust services | 10,420 | 9,429 | 10,601 | 10.5 | % | (1.7 | )% | 31,117 | 28,628 | 8.7 | % | |||||||||||||||||||||||
Other service charges and fees | 9,518 | 11,119 | 9,508 | (14.4 | )% | 0.1 | % | 27,536 | 33,181 | (17.0 | )% | |||||||||||||||||||||||
Mortgage banking income | 7,123 | 10,594 | 10,997 | (32.8 | )% | (35.2 | )% | 26,293 | 31,787 | (17.3 | )% | |||||||||||||||||||||||
Investment securities gains | 2,633 | 42 | 2,865 | N/M | (8.1 | )% | 7,971 | 2,831 | 181.6 | % | ||||||||||||||||||||||||
Other | 3,725 | 5,108 | 3,694 | (27.1 | )% | 0.8 | % | 11,315 | 14,602 | (22.5 | )% | |||||||||||||||||||||||
Total Non-Interest Income | 47,357 | 51,943 | 52,316 | (8.8 | )% | (9.5 | )% | 146,932 | 156,889 | (6.3 | )% | |||||||||||||||||||||||
Non-Interest Expense: | ||||||||||||||||||||||||||||||||||
Salaries and employee benefits | 63,344 | 62,161 | 63,490 | 1.9 | % | (0.2 | )% | 188,046 | 182,612 | 3.0 | % | |||||||||||||||||||||||
Net occupancy expense | 11,519 | 11,161 | 11,447 | 3.2 | % | 0.6 | % | 34,810 | 33,301 | 4.5 | % | |||||||||||||||||||||||
Other outside services | 5,048 | 5,600 | 5,315 | (9.9 | )% | (5.0 | )% | 13,223 | 13,614 | (2.9 | )% | |||||||||||||||||||||||
Data processing | 4,757 | 3,776 | 4,509 | 26.0 | % | 5.5 | % | 13,169 | 11,223 | 17.3 | % | |||||||||||||||||||||||
Equipment expense | 3,646 | 3,816 | 3,893 | (4.5 | )% | (6.3 | )% | 11,447 | 10,370 | 10.4 | % | |||||||||||||||||||||||
Professional fees | 3,329 | 2,728 | 3,395 | 22.0 | % | (1.9 | )% | 9,771 | 8,294 | 17.8 | % | |||||||||||||||||||||||
Operating risk loss | 3,297 | 1,404 | 1,860 | 134.8 | % | 77.3 | % | 6,923 | 6,827 | 1.4 | % | |||||||||||||||||||||||
Software | 3,268 | 2,511 | 3,094 | 30.1 | % | 5.6 | % | 9,110 | 6,958 | 30.9 | % | |||||||||||||||||||||||
FDIC insurance expense | 2,918 | 3,029 | 3,001 | (3.7 | )% | (2.8 | )% | 8,766 | 9,052 | (3.2 | )% | |||||||||||||||||||||||
Marketing | 2,251 | 648 | 1,922 | 247.4 | % | 17.1 | % | 6,045 | 5,703 | 6.0 | % | |||||||||||||||||||||||
OREO and repossession expense | 1,453 | 2,249 | 1,941 | (35.4 | )% | (25.1 | )% | 6,248 | 8,709 | (28.3 | )% | |||||||||||||||||||||||
Intangible Amortization | 534 | 756 | 535 | (29.4 | )% | (0.2 | )% | 1,603 | 2,318 | (30.8 | )% | |||||||||||||||||||||||
Other | 11,241 | 10,143 | 12,728 | 10.8 | % | (11.7 | )% | 35,510 | 33,757 | 5.2 | % | |||||||||||||||||||||||
Total Non-Interest Expense | 116,605 | 109,982 | 117,130 | 6.0 | % | (0.4 | )% | 344,671 | 332,738 | 3.6 | % | |||||||||||||||||||||||
Income Before Income Taxes | 53,785 | 54,842 | 53,751 | (1.9 | )% | 0.1 | % | 158,503 | 159,757 | (0.8 | )% | |||||||||||||||||||||||
Income tax expense | 13,837 | 13,260 | 13,169 | 4.4 | % | 5.1 | % | 38,746 | 40,152 | (3.5 | )% | |||||||||||||||||||||||
Net Income | $ | 39,948 | $ | 41,582 | $ | 40,582 | (3.9 | )% | (1.6 | )% | $ | 119,757 | $ | 119,605 | 0.1 | % | ||||||||||||||||||
PER SHARE: | ||||||||||||||||||||||||||||||||||
Net income: | ||||||||||||||||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.21 | $ | 0.21 | — | % | — | % | $ | 0.62 | $ | 0.6 | 3.3 | % | ||||||||||||||||||
Diluted | 0.21 | 0.21 | 0.21 | — | % | — | % | 0.61 | 0.6 | 1.7 | % | |||||||||||||||||||||||
Cash dividends | $ | 0.08 | $ | 0.08 | $ | 0.08 | — | % | — | % | $ | 0.24 | $ | 0.22 | 9.1 | % | ||||||||||||||||||
Shareholders' equity | 10.55 | 10.36 | 10.48 | 1.8 | % | 0.7 | % | 10.54 | 10.36 | 1.7 | % | |||||||||||||||||||||||
Shareholders' equity (tangible) | 7.77 | 7.63 | 7.72 | 1.8 | % | 0.6 | % | 7.77 | 7.63 | 1.8 | % | |||||||||||||||||||||||
Weighted average shares (basic) | 192,251 | 198,956 | 193,273 | (3.4 | )% | (0.5 | )% | 193,926 | 199,371 | (2.7 | )% | |||||||||||||||||||||||
Weighted average shares (diluted) | 193,259 | 199,808 | 194,346 | (3.3 | )% | (0.6 | )% | 194,926 | 200,321 | (2.7 | )% | |||||||||||||||||||||||
Shares outstanding, end of period | 192,332 | 198,975 | 193,658 | (3.3 | )% | (0.7 | )% | 192,332 | 198,975 | (3.3 | )% | |||||||||||||||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||||||||||||||||||||
Return on average assets | 0.93 | % | 1.02 | % | 0.97 | % | 0.95 | % | 0.98 | % | ||||||||||||||||||||||||
Return on average common shareholders' equity | 7.81 | % | 8.03 | % | 7.89 | % | 7.79 | % | 7.83 | % | ||||||||||||||||||||||||
Return on average common shareholders' equity (tangible) | 10.69 | % | 11.02 | % | 10.75 | % | 10.62 | % | 10.80 | % | ||||||||||||||||||||||||
Net interest margin | 3.45 | % | 3.74 | % | 3.52 | % | 3.51 | % | 3.79 | % | ||||||||||||||||||||||||
Efficiency ratio | 63.92 | % | 56.90 | % | 62.73 | % | 62.81 | % | 57.09 | % | ||||||||||||||||||||||||
N/M - Not meaningful |
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | June 30, 2013 | ||||||||||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||||||||||||
Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||
Loans, net of unearned income | $ | 12,728,162 | $ | 139,141 | 4.34% | $ | 11,922,417 | $ | 143,211 | 4.78% | $ | 12,528,562 | $ | 138,002 | 4.42% | |||||||||||||||||
Taxable investment securities | 2,446,583 | 12,977 | 2.12% | 2,392,043 | 16,658 | 2.78% | 2,410,004 | 14,516 | 2.41% | |||||||||||||||||||||||
Tax-exempt investment securities | 284,372 | 3,581 | 5.04% | 286,225 | 3,936 | 5.50% | 280,508 | 3,608 | 5.15% | |||||||||||||||||||||||
Equity securities | 133,200 | 1,056 | 3.16% | 109,884 | 820 | 2.98% | 123,848 | 875 | 2.83% | |||||||||||||||||||||||
Total Investment Securities | 2,864,155 | 17,614 | 2.46% | 2,788,152 | 21,414 | 3.07% | 2,814,360 | 18,999 | 2.70% | |||||||||||||||||||||||
Loans held for sale | 36,450 | 382 | 4.19% | 61,001 | 578 | 3.79% | 42,158 | 384 | 3.64% | |||||||||||||||||||||||
Other interest-earning assets | 140,338 | 38 | 0.11% | 147,818 | 35 | 0.09% | 144,945 | 35 | 0.10% | |||||||||||||||||||||||
Total Interest-earning Assets | 15,769,105 | 157,175 | 3.96% | 14,919,388 | 165,238 | 4.41% | 15,530,025 | 157,420 | 4.07% | |||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||
Cash and due from banks | 210,525 | 221,561 | 206,090 | |||||||||||||||||||||||||||||
Premises and equipment | 224,837 | 222,544 | 225,915 | |||||||||||||||||||||||||||||
Other assets | 1,007,808 | 1,098,748 | 1,060,095 | |||||||||||||||||||||||||||||
Less: allowance for loan losses | (220,342 | ) | (239,931 | ) | (221,541 | ) | ||||||||||||||||||||||||||
Total Assets | $ | 16,991,933 | $ | 16,222,310 | $ | 16,800,584 | ||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | $ | 2,895,156 | $ | 938 | 0.13% | $ | 2,608,202 | $ | 1,071 | 0.16% | $ | 2,718,679 | $ | 872 | 0.13% | |||||||||||||||||
Savings deposits | 3,359,795 | 1,015 | 0.12% | 3,372,278 | 1,431 | 0.17% | 3,350,856 | 1,016 | 0.12% | |||||||||||||||||||||||
Time deposits | 3,065,210 | 6,790 | 0.88% | 3,657,616 | 11,346 | 1.23% | 3,169,141 | 7,610 | 0.96% | |||||||||||||||||||||||
Total Interest-bearing Deposits | 9,320,161 | 8,743 | 0.37% | 9,638,096 | 13,848 | 0.57% | 9,238,676 | 9,498 | 0.41% | |||||||||||||||||||||||
Short-term borrowings | 1,337,742 | 691 | 0.20% | 588,568 | 220 | 0.15% | 1,313,424 | 700 | 0.21% | |||||||||||||||||||||||
FHLB advances and long-term debt | 889,141 | 10,865 | 4.87% | 908,767 | 11,111 | 4.88% | 889,186 | 10,815 | 4.87% | |||||||||||||||||||||||
Total Interest-bearing Liabilities | 11,547,044 | 20,299 | 0.70% | 11,135,431 | 25,179 | 0.90% | 11,441,286 | 21,013 | 0.74% | |||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | 3,221,648 | 2,837,539 | 3,116,940 | |||||||||||||||||||||||||||||
Other | 194,163 | 188,065 | 179,875 | |||||||||||||||||||||||||||||
Total Liabilities | 14,962,855 | 14,161,035 | 14,738,101 | |||||||||||||||||||||||||||||
Shareholders' equity | 2,029,078 | 2,061,275 | 2,062,483 | |||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 16,991,933 | $ | 16,222,310 | $ | 16,800,584 | ||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 136,876 | 3.45% | 140,059 | 3.74% | 136,407 | 3.52% | ||||||||||||||||||||||||||
Tax equivalent adjustment | (4,343 | ) | (4,178 | ) | (4,342 | ) | ||||||||||||||||||||||||||
Net interest income | $ | 132,533 | $ | 135,881 | $ | 132,065 | ||||||||||||||||||||||||||
(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances. | ||||||||||||||||||||||||||||||||
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||||||||||||||||
Quarter Ended | % Change from | |||||||||||||||||||||||||||||||
Sep 30 | Sep 30 | Jun 30 | Sep 30 | Jun 30 | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 4,961,871 | $ | 4,603,388 | $ | 4,758,060 | 7.8 | % | 4.3 | % | ||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 3,706,113 | 3,529,733 | 3,714,683 | 5.0 | % | (0.2 | )% | |||||||||||||||||||||||||
Real estate - home equity | 1,767,095 | 1,597,230 | 1,732,704 | 10.6 | % | 2.0 | % | |||||||||||||||||||||||||
Real estate - residential mortgage | 1,323,972 | 1,201,179 | 1,308,713 | 10.2 | % | 1.2 | % | |||||||||||||||||||||||||
Real estate - construction | 576,222 | 605,910 | 617,577 | (4.9 | )% | (6.7 | )% | |||||||||||||||||||||||||
Consumer | 299,057 | 304,800 | 304,918 | (1.9 | )% | (1.9 | )% | |||||||||||||||||||||||||
Leasing and other | 93,832 | 80,177 | 91,907 | 17.0 | % | 2.1 | % | |||||||||||||||||||||||||
Total Loans, net of unearned income | $ | 12,728,162 | $ | 11,922,417 | $ | 12,528,562 | 6.8 | % | 1.6 | % | ||||||||||||||||||||||
Deposits, by type: | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,221,648 | $ | 2,837,539 | $ | 3,116,940 | 13.5 | % | 3.4 | % | ||||||||||||||||||||||
Interest-bearing demand | 2,895,156 | 2,608,202 | 2,718,679 | 11.0 | % | 6.5 | % | |||||||||||||||||||||||||
Savings deposits | 3,359,795 | 3,372,278 | 3,350,856 | (0.4 | )% | 0.3 | % | |||||||||||||||||||||||||
Time deposits | 3,065,210 | 3,657,616 | 3,169,141 | (16.2 | )% | (3.3 | )% | |||||||||||||||||||||||||
Total Deposits | $ | 12,541,809 | $ | 12,475,635 | $ | 12,355,616 | 0.5 | % | 1.5 | % | ||||||||||||||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||||||||||||||
Customer repurchase agreements | $ | 196,503 | $ | 210,830 | $ | 188,339 | (6.8 | )% | 4.3 | % | ||||||||||||||||||||||
Customer short-term promissory notes | 91,573 | 127,479 | 98,207 | (28.2 | )% | (6.8 | )% | |||||||||||||||||||||||||
Federal funds purchased | 559,992 | 244,214 | 776,603 | 129.3 | % | (27.9 | )% | |||||||||||||||||||||||||
Short-term FHLB advances | 489,674 | 6,045 | 250,275 | N/M | 95.7 | % | ||||||||||||||||||||||||||
Total Short-term Borrowings | $ | 1,337,742 | $ | 588,568 | $ | 1,313,424 | 127.3 | % | 1.9 | % | ||||||||||||||||||||||
N/M - Not Meaningful |
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||||||
dollars in thousands | |||||||||||||||||||||||
Nine Months ended September 30 | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Balance | Interest (1) | Yield/Rate | Balance | Interest (1) | Yield/Rate | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans, net of unearned income | $ | 12,506,393 | $ | 414,091 | 4.43 | % | $ | 11,957,025 | $ | 434,520 | 4.85 | % | |||||||||||
Taxable investment securities | 2,426,015 | 40,890 | 2.25 | % | 2,442,237 | 53,943 | 2.95 | % | |||||||||||||||
Tax-exempt investment securities | 285,638 | 11,003 | 5.14 | % | 288,221 | 12,085 | 5.59 | % | |||||||||||||||
Equity securities | 125,193 | 2,848 | 3.04 | % | 110,807 | 2,307 | 2.78 | % | |||||||||||||||
Total Investment Securities | 2,836,846 | 54,741 | 2.57 | % | 2,841,265 | 68,335 | 3.21 | % | |||||||||||||||
Loans held for sale | 42,122 | 1,261 | 3.99 | % | 52,462 | 1,547 | 3.93 | % | |||||||||||||||
Other interest-earning assets | 134,460 | 95 | 0.09 | % | 126,556 | 133 | 0.14 | % | |||||||||||||||
Total Interest-earning Assets | 15,519,821 | 470,188 | 4.05 | % | 14,977,308 | 504,535 | 4.50 | % | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||
Cash and due from banks | 206,403 | 239,050 | |||||||||||||||||||||
Premises and equipment | 225,733 | 217,351 | |||||||||||||||||||||
Other assets | 1,045,796 | 1,105,238 | |||||||||||||||||||||
Less: allowance for loan losses | (223,220 | ) | (255,061 | ) | |||||||||||||||||||
Total Assets | $ | 16,774,533 | $ | 16,283,886 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | $ | 2,773,917 | $ | 2,687 | 0.13 | % | $ | 2,519,454 | $ | 3,132 | 0.17 | % | |||||||||||
Savings deposits | 3,348,413 | 3,054 | 0.12 | % | 3,341,512 | 4,751 | 0.19 | % | |||||||||||||||
Time deposits | 3,184,281 | 22,901 | 0.96 | % | 3,799,774 | 36,958 | 1.30 | % | |||||||||||||||
Total Interest-bearing Deposits | 9,306,611 | 28,642 | 0.41 | % | 9,660,740 | 44,841 | 0.62 | % | |||||||||||||||
Short-term borrowings | 1,228,882 | 1,900 | 0.20 | % | 758,899 | 912 | 0.16 | % | |||||||||||||||
FHLB advances and long-term debt | 889,826 | 32,448 | 4.87 | % | 940,348 | 34,077 | 4.84 | % | |||||||||||||||
Total Interest-bearing Liabilities | 11,425,319 | 62,990 | 0.74 | % | 11,359,987 | 79,830 | 0.94 | % | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | 3,103,381 | 2,691,949 | |||||||||||||||||||||
Other | 190,976 | 190,476 | |||||||||||||||||||||
Total Liabilities | 14,719,676 | 14,242,412 | |||||||||||||||||||||
Shareholders' equity | 2,054,857 | 2,041,474 | |||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 16,774,533 | $ | 16,283,886 | |||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 407,198 | 3.51 | % | 424,705 | 3.79 | % | |||||||||||||||||
Tax equivalent adjustment | (12,956 | ) | (12,599 | ) | |||||||||||||||||||
Net interest income | $ | 394,242 | $ | 412,106 | |||||||||||||||||||
(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 | |||||||||||||||||||||||
2013 | 2012 | % Change | |||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 4,796,557 | $ | 4,618,389 | 3.9 | % | |||||||||||||||||
Commercial - industrial, financial and agricultural | 3,694,612 | 3,548,332 | 4.1 | % | |||||||||||||||||||
Real estate - home equity | 1,721,041 | 1,602,812 | 7.4 | % | |||||||||||||||||||
Real estate - residential mortgage | 1,305,434 | 1,173,158 | 11.3 | % | |||||||||||||||||||
Real estate - construction | 594,991 | 629,170 | (5.4 | )% | |||||||||||||||||||
Consumer | 303,127 | 308,215 | (1.7 | )% | |||||||||||||||||||
Leasing and other | 90,631 | 76,949 | 17.8 | % | |||||||||||||||||||
Total Loans, net of unearned income | $ | 12,506,393 | $ | 11,957,025 | 4.6 | % | |||||||||||||||||
Deposits, by type: | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,103,381 | $ | 2,691,949 | 15.3 | % | |||||||||||||||||
Interest-bearing demand | 2,773,917 | 2,519,454 | 10.1 | % | |||||||||||||||||||
Savings deposits | 3,348,413 | 3,341,512 | 0.2 | % | |||||||||||||||||||
Time deposits | 3,184,281 | 3,799,774 | (16.2 | )% | |||||||||||||||||||
Total Deposits | $ | 12,409,992 | $ | 12,352,689 | 0.5 | % | |||||||||||||||||
Short-term borrowings, by type: | |||||||||||||||||||||||
Customer repurchase agreements | $ | 183,432 | $ | 212,523 | (13.7 | )% | |||||||||||||||||
Customer short-term promissory notes | 100,532 | 142,896 | (29.6 | )% | |||||||||||||||||||
Federal funds purchased | 681,576 | 390,319 | 74.6 | % | |||||||||||||||||||
Short-term FHLB advances | 263,342 | 13,161 | N/M | ||||||||||||||||||||
Total Short-term Borrowings | $ | 1,228,882 | $ | 758,899 | 61.9 | % | |||||||||||||||||
N/M - Not Meaningful |
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
ASSET QUALITY INFORMATION (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Sep 30 | Sep 30 | Jun 30 | Sep 30 | Sep 30 | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 217,626 | $ | 237,316 | $ | 221,527 | $ | 225,439 | $ | 258,177 | ||||||||||||||||||||||
Loans charged off: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | (9,394 | ) | (10,471 | ) | (5,960 | ) | (24,856 | ) | (29,157 | ) | ||||||||||||||||||||||
Real estate - commercial mortgage | (3,724 | ) | (7,463 | ) | (5,193 | ) | (13,050 | ) | (43,053 | ) | ||||||||||||||||||||||
Real estate - home equity | (2,365 | ) | (1,688 | ) | (1,966 | ) | (6,735 | ) | (6,683 | ) | ||||||||||||||||||||||
Real estate - residential mortgage | (767 | ) | (670 | ) | (4,465 | ) | (8,282 | ) | (3,009 | ) | ||||||||||||||||||||||
Real estate - construction | (598 | ) | (8,364 | ) | (2,597 | ) | (5,181 | ) | (25,377 | ) | ||||||||||||||||||||||
Consumer | (473 | ) | (685 | ) | (433 | ) | (1,456 | ) | (1,790 | ) | ||||||||||||||||||||||
Leasing and other | (787 | ) | (625 | ) | (769 | ) | (2,037 | ) | (1,696 | ) | ||||||||||||||||||||||
Total loans charged off | (18,108 | ) | (29,966 | ) | (21,383 | ) | (61,597 | ) | (110,765 | ) | ||||||||||||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 2,295 | 1,693 | 756 | 3,430 | 3,046 | |||||||||||||||||||||||||||
Real estate - commercial mortgage | 185 | 1,317 | 1,505 | 2,754 | 3,286 | |||||||||||||||||||||||||||
Real estate - home equity | 198 | 343 | 192 | 721 | 641 | |||||||||||||||||||||||||||
Real estate - residential mortgage | 245 | 25 | 116 | 442 | 169 | |||||||||||||||||||||||||||
Real estate - construction | 379 | 1,040 | 744 | 1,794 | 2,643 | |||||||||||||||||||||||||||
Consumer | 294 | 202 | 406 | 1,206 | 833 | |||||||||||||||||||||||||||
Leasing and other | 224 | 298 | 263 | 649 | 738 | |||||||||||||||||||||||||||
Recoveries of loans previously charged off | 3,820 | 4,918 | 3,982 | 10,996 | 11,356 | |||||||||||||||||||||||||||
Net loans charged off | (14,288 | ) | (25,048 | ) | (17,401 | ) | (50,601 | ) | (99,409 | ) | ||||||||||||||||||||||
Provision for credit losses | 9,500 | 23,000 | 13,500 | 38,000 | 76,500 | |||||||||||||||||||||||||||
Balance at end of period | $ | 212,838 | $ | 235,268 | $ | 217,626 | $ | 212,838 | $ | 235,268 | ||||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.45 | % | 0.84 | % | 0.56 | % | 0.54 | % | 1.11 | % | ||||||||||||||||||||||
NON-PERFORMING ASSETS: | ||||||||||||||||||||||||||||||||
Non-accrual loans | $ | 143,012 | $ | 185,791 | $ | 164,039 | ||||||||||||||||||||||||||
Loans 90 days past due and accruing | 25,271 | 27,035 | 25,159 | |||||||||||||||||||||||||||||
Total non-performing loans | 168,283 | 212,826 | 189,198 | |||||||||||||||||||||||||||||
Other real estate owned | 18,173 | 29,217 | 20,984 | |||||||||||||||||||||||||||||
Total non-performing assets | $ | 186,456 | $ | 242,043 | $ | 210,182 | ||||||||||||||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | $ | 45,184 | $ | 73,879 | $ | 57,219 | ||||||||||||||||||||||||||
Real estate - commercial mortgage | 42,623 | 64,609 | 49,429 | |||||||||||||||||||||||||||||
Real estate - residential mortgage | 34,309 | 24,910 | 30,660 | |||||||||||||||||||||||||||||
Real estate - construction | 24,396 | 32,742 | 29,964 | |||||||||||||||||||||||||||||
Real estate - home equity | 18,691 | 12,644 | 19,046 | |||||||||||||||||||||||||||||
Consumer | 3,013 | 3,942 | 2,780 | |||||||||||||||||||||||||||||
Leasing | 67 | 100 | 100 | |||||||||||||||||||||||||||||
Total non-performing loans | $ | 168,283 | $ | 212,826 | $ | 189,198 | ||||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE: | ||||||||||||||||||||||||||||||||
Real-estate - residential mortgage | $ | 27,820 | $ | 36,946 | $ | 28,948 | ||||||||||||||||||||||||||
Real-estate - commercial mortgage | 22,644 | 32,198 | 24,828 | |||||||||||||||||||||||||||||
Real estate - construction | 9,841 | 10,525 | 10,599 | |||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 8,184 | 4,795 | 8,394 | |||||||||||||||||||||||||||||
Real estate - home equity | 1,667 | 755 | 1,549 | |||||||||||||||||||||||||||||
Consumer | 11 | — | 13 | |||||||||||||||||||||||||||||
Total accruing TDRs | $ | 70,167 | $ | 85,219 | $ | 74,331 | ||||||||||||||||||||||||||
Non-accrual TDRs (1) | 30,501 | 21,167 | 30,377 | |||||||||||||||||||||||||||||
Total TDRs | $ | 100,668 | $ | 106,386 | $ | 104,708 | ||||||||||||||||||||||||||
(1) Included within non-accrual loans above. | ||||||||||||||||||||||||||||||||
DELINQUENCY RATES, BY TYPE: | ||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | June 30, 2013 | ||||||||||||||||||||||||||||||
31-89 Days | ≥90 Days (1) | Total | 31-89 Days | ≥90 Days (1) | Total | 31-89 Days | ≥90 Days (1) | Total | ||||||||||||||||||||||||
Real estate - commercial mortgage | 0.40 | % | 0.84 | % | 1.24 | % | 0.46 | % | 1.39 | % | 1.85 | % | 0.47 | % | 1.01 | % | 1.48 | % | ||||||||||||||
Commercial - industrial, financial and agricultural | 0.32 | % | 1.24 | % | 1.56 | % | 0.45 | % | 2.11 | % | 2.56 | % | 0.41 | % | 1.54 | % | 1.95 | % | ||||||||||||||
Real estate - construction | 0.40 | % | 4.22 | % | 4.62 | % | 0.95 | % | 5.48 | % | 6.43 | % | 0.42 | % | 4.91 | % | 5.33 | % | ||||||||||||||
Real estate - residential mortgage | 1.82 | % | 2.58 | % | 4.40 | % | 2.66 | % | 2.05 | % | 4.71 | % | 2.12 | % | 2.33 | % | 4.45 | % | ||||||||||||||
Real estate - home equity | 1.03 | % | 1.05 | % | 2.08 | % | 0.85 | % | 0.78 | % | 1.63 | % | 0.68 | % | 1.08 | % | 1.76 | % | ||||||||||||||
Consumer, leasing and other | 1.83 | % | 0.75 | % | 2.58 | % | 1.84 | % | 1.06 | % | 2.90 | % | 1.47 | % | 0.74 | % | 2.21 | % | ||||||||||||||
Total | 0.66 | % | 1.31 | % | 1.97 | % | 0.80 | % | 1.78 | % | 2.58 | % | 0.68 | % | 1.50 | % | 2.18 | % | ||||||||||||||
(2) Includes non-accrual loans | ||||||||||||||||||||||||||||||||
ASSET QUALITY RATIOS: | ||||||||||||||||||||||||||||||||
Sep 30 | Sep 30 | Jun 30 | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | ||||||||||||||||||||||||||||||
Non-accrual loans to total loans | 1.12 | % | 1.56 | % | 1.30 | % | ||||||||||||||||||||||||||
Non-performing assets to total loans and OREO | 1.45 | % | 2.02 | % | 1.66 | % | ||||||||||||||||||||||||||
Non-performing assets to total assets | 1.09 | % | 1.49 | % | 1.23 | % | ||||||||||||||||||||||||||
Allowance for credit losses to loans outstanding | 1.66 | % | 1.97 | % | 1.72 | % | ||||||||||||||||||||||||||
Allowance for credit losses to non-performing loans | 126.48 | % | 110.54 | % | 115.03 | % | ||||||||||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 10.92 | % | 13.80 | % | 12.28 | % |
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (UNAUDITED) | |||||||||||||||||||||||||
in thousands, except per share data and percentages | |||||||||||||||||||||||||
Explanatory note: | This press release contains certain financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's quarterly results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow: | ||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||||||||||
Sep 30 | Sep 30 | Jun 30 | Sep 30 | Sep 30 | |||||||||||||||||||||
2013 | 2012 | 2013 | 2013 | 2012 | |||||||||||||||||||||
Shareholders' equity (tangible), per share | |||||||||||||||||||||||||
Shareholders' equity | $ | 2,028,964 | $ | 2,060,683 | $ | 2,028,732 | |||||||||||||||||||
Less: Goodwill and intangible assets | (533,918 | ) | (541,845 | ) | (534,452 | ) | |||||||||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,495,046 | $ | 1,518,838 | $ | 1,494,280 | |||||||||||||||||||
Shares outstanding, end of period (denominator) | 192,332 | 198,975 | 193,658 | ||||||||||||||||||||||
Shareholders' equity (tangible), per share | $ | 7.77 | $ | 7.63 | $ | 7.72 | |||||||||||||||||||
Return on average common shareholders' equity (tangible) | |||||||||||||||||||||||||
Net income | $ | 39,948 | $ | 41,582 | $ | 40,582 | $ | 119,757 | $ | 119,605 | |||||||||||||||
Plus: Intangible amortization, net of tax | 347 | 491 | 348 | 1,042 | 1,507 | ||||||||||||||||||||
Net income, less intangible amortization, net of tax (numerator) | $ | 40,295 | $ | 42,073 | $ | 40,930 | $ | 120,799 | $ | 121,112 | |||||||||||||||
Average shareholders' equity | $ | 2,029,078 | $ | 2,061,275 | $ | 2,062,483 | $ | 2,054,857 | $ | 2,041,474 | |||||||||||||||
Less: Average goodwill and intangible assets | (534,179 | ) | (542,225 | ) | (534,713 | ) | (534,712 | ) | (542,997 | ) | |||||||||||||||
Average tangible shareholders' equity (denominator) | $ | 1,494,899 | $ | 1,519,050 | $ | 1,527,770 | $ | 1,520,145 | $ | 1,498,477 | |||||||||||||||
Return on average common shareholders' equity (tangible), annualized | 10.69 | % | 11.02 | % | 10.75 | % | 10.62 | % | 10.80 | % | |||||||||||||||
Efficiency ratio | |||||||||||||||||||||||||
Non-interest expense | $ | 116,605 | $ | 109,982 | $ | 117,130 | $ | 344,671 | $ | 332,738 | |||||||||||||||
Less: Intangible amortization | (534 | ) | (756 | ) | (535 | ) | (1,603 | ) | (2,318 | ) | |||||||||||||||
Numerator | $ | 116,071 | $ | 109,226 | $ | 116,595 | $ | 343,068 | $ | 330,420 | |||||||||||||||
Net interest income (fully taxable equivalent) | $ | 136,876 | $ | 140,059 | $ | 136,407 | $ | 407,198 | $ | 424,705 | |||||||||||||||
Plus: Total Non-interest income | 47,357 | 51,943 | 52,316 | 146,932 | 156,889 | ||||||||||||||||||||
Less: Investment securities gains | (2,633 | ) | (42 | ) | (2,865 | ) | (7,971 | ) | (2,831 | ) | |||||||||||||||
Denominator | $ | 181,600 | $ | 191,960 | $ | 185,858 | $ | 546,159 | $ | 578,763 | |||||||||||||||
Efficiency ratio | 63.92 | % | 56.90 | % | 62.73 | % | 62.81 | % | 57.09 | % | |||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | |||||||||||||||||||||||||
Non-performing assets (numerator) | $ | 186,456 | $ | 242,043 | $ | 210,182 | |||||||||||||||||||
Tangible shareholders' equity | $ | 1,495,046 | $ | 1,518,838 | $ | 1,494,280 | |||||||||||||||||||
Plus: Allowance for credit losses | 212,838 | 235,268 | 217,626 | ||||||||||||||||||||||
Tangible shareholders' equity and allowance for credit losses (denominator) | $ | 1,707,884 | $ | 1,754,106 | $ | 1,711,906 | |||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 10.92 | % | 13.80 | % | 12.28 | % | |||||||||||||||||||