Exhibit 99.2
FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
Quarter Ended | ||||||||||||||||
June 30 | Variance | |||||||||||||||
2005 | 2004 | $ | % | |||||||||||||
(in thousands, except per-share data) | ||||||||||||||||
INCOME SUMMARY: | ||||||||||||||||
Interest income | $ | 148,611 | $ | 122,024 | $ | 26,587 | 21.8 | % | ||||||||
Interest expense | 48,686 | 33,318 | 15,368 | 46.1 | % | |||||||||||
Net Interest Income | 99,925 | 88,706 | 11,219 | 12.6 | % | |||||||||||
Provision for loan losses | 725 | 800 | (75 | ) | -9.4 | % | ||||||||||
Investment securities gains | 1,418 | 5,349 | (3,931 | ) | -73.5 | % | ||||||||||
Other income | 36,897 | 31,313 | 5,584 | 17.8 | % | |||||||||||
Other expenses | 78,106 | 70,537 | 7,569 | 10.7 | % | |||||||||||
Income Before Income Taxes | 59,409 | 54,031 | 5,378 | 10.0 | % | |||||||||||
Income taxes | 17,829 | 16,167 | 1,662 | 10.3 | % | |||||||||||
Net Income | $ | 41,580 | $ | 37,864 | $ | 3,716 | 9.8 | % | ||||||||
Fully taxable equivalent (FTE) net interest income | $ | 102,266 | $ | 91,038 | $ | 11,228 | 12.3 | % | ||||||||
PER-SHARE DATA: | ||||||||||||||||
Net income: | ||||||||||||||||
Basic | $ | 0.27 | $ | 0.25 | $ | 0.02 | 8.0 | % | ||||||||
Diluted | 0.27 | 0.25 | 0.02 | 8.0 | % | |||||||||||
Cash dividends | 0.145 | 0.132 | 0.013 | 9.8 | % | |||||||||||
ENDING BALANCES: | ||||||||||||||||
Total assets | $ | 11,571,083 | $ | 10,556,421 | $ | 1,014,662 | 9.6 | % | ||||||||
Loans, net of unearned income | 7,861,508 | 7,042,311 | 819,197 | 11.6 | % | |||||||||||
Deposits | 8,139,667 | 7,430,988 | 708,679 | 9.5 | % | |||||||||||
Short-term borrowings | 1,134,583 | 1,241,522 | (106,939 | ) | -8.6 | % | ||||||||||
Long-term debt | 951,745 | 654,886 | 296,859 | 45.3 | % | |||||||||||
Shareholders’ equity | 1,194,075 | 1,107,482 | 86,593 | 7.8 | % | |||||||||||
AVERAGE BALANCES: | ||||||||||||||||
Total assets | $ | 11,417,078 | $ | 10,603,544 | $ | 813,534 | 7.7 | % | ||||||||
Loans, net of unearned income | 7,823,737 | 6,946,626 | 877,111 | 12.6 | % | |||||||||||
Deposits | 8,059,110 | 7,448,275 | 610,835 | 8.2 | % | |||||||||||
Short-term borrowings | 1,180,975 | 1,282,657 | (101,682 | ) | -7.9 | % | ||||||||||
Long-term debt | 841,650 | 656,803 | 184,847 | 28.1 | % | |||||||||||
Shareholders’ equity | 1,195,455 | 1,101,590 | 93,865 | 8.5 | % |
FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
Six Months Ended | ||||||||||||||||
June 30 | Variance | |||||||||||||||
2005 | 2004 | $ | % | |||||||||||||
(in thousands, except per-share data) | ||||||||||||||||
INCOME SUMMARY: | ||||||||||||||||
Interest income | $ | 289,421 | $ | 235,960 | $ | 53,461 | 22.7 | % | ||||||||
Interest expense | 91,248 | 64,287 | 26,961 | 41.9 | % | |||||||||||
Net Interest Income | 198,173 | 171,673 | 26,500 | 15.4 | % | |||||||||||
Provision for loan losses | 1,525 | 2,540 | (1,015 | ) | -40.0 | % | ||||||||||
Investment securities gains | 4,733 | 11,177 | (6,444 | ) | -57.7 | % | ||||||||||
Other income | 69,435 | 57,523 | 11,912 | 20.7 | % | |||||||||||
Other expenses | 151,837 | 132,809 | 19,028 | 14.3 | % | |||||||||||
Income Before Income Taxes | 118,979 | 105,024 | 13,955 | 13.3 | % | |||||||||||
Income taxes | 35,868 | 31,314 | 4,554 | 14.5 | % | |||||||||||
Net Income | $ | 83,111 | $ | 73,710 | $ | 9,401 | 12.8 | % | ||||||||
Fully taxable equivalent (FTE) net interest income | $ | 202,858 | $ | 176,351 | $ | 26,507 | 15.0 | % | ||||||||
PER-SHARE DATA: | ||||||||||||||||
Net income: | ||||||||||||||||
Basic | $ | 0.53 | $ | 0.50 | $ | 0.03 | 6.0 | % | ||||||||
Diluted | 0.53 | 0.50 | 0.03 | 6.0 | % | |||||||||||
Cash dividends | 0.277 | 0.254 | 0.023 | 9.1 | % | |||||||||||
AVERAGE BALANCES: | ||||||||||||||||
Total assets | $ | 11,314,220 | $ | 10,140,019 | $ | 1,174,201 | 11.6 | % | ||||||||
Loans, net of unearned income | 7,749,797 | 6,567,307 | 1,182,490 | 18.0 | % | |||||||||||
Deposits | 7,986,110 | 7,083,167 | 902,943 | 12.7 | % | |||||||||||
Short-term borrowings | 1,210,053 | 1,313,970 | (103,917 | ) | -7.9 | % | ||||||||||
Long-term debt | 761,992 | 613,439 | 148,553 | 24.2 | % | |||||||||||
Shareholders’ equity | 1,222,511 | 1,025,658 | 196,853 | 19.2 | % |
FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
Quarter Ended | Variance | |||||||||||||||
June 30 | March 31 | |||||||||||||||
2005 | 2005 | $ | % | |||||||||||||
(in thousands, except per-share data) | ||||||||||||||||
INCOME SUMMARY: | ||||||||||||||||
Interest income | $ | 148,611 | $ | 140,810 | $ | 7,801 | 5.5 | % | ||||||||
Interest expense | 48,686 | 42,562 | 6,124 | 14.4 | % | |||||||||||
Net Interest Income | 99,925 | 98,248 | 1,677 | 1.7 | % | |||||||||||
Provision for loan losses | 725 | 800 | (75 | ) | -9.4 | % | ||||||||||
Investment securities gains | 1,418 | 3,315 | (1,897 | ) | -57.2 | % | ||||||||||
Other income | 36,897 | 32,538 | 4,359 | 13.4 | % | |||||||||||
Other expenses | 78,106 | 73,731 | 4,375 | 5.9 | % | |||||||||||
Income Before Income Taxes | 59,409 | 59,570 | (161 | ) | -0.3 | % | ||||||||||
Income taxes | 17,829 | 18,039 | (210 | ) | -1.2 | % | ||||||||||
Net Income | $ | 41,580 | $ | 41,531 | $ | 49 | 0.1 | % | ||||||||
Fully taxable equivalent (FTE) net interest income | $ | 102,266 | $ | 100,592 | $ | 1,674 | 1.7 | % | ||||||||
PER-SHARE DATA: | ||||||||||||||||
Net income: | ||||||||||||||||
Basic | $ | 0.27 | $ | 0.26 | $ | 0.01 | 3.8 | % | ||||||||
Diluted | 0.27 | 0.26 | 0.01 | 3.8 | % | |||||||||||
Cash dividends | 0.145 | 0.132 | 0.013 | 9.8 | % | |||||||||||
ENDING BALANCES: | ||||||||||||||||
Total assets | $ | 11,571,083 | $ | 11,418,278 | $ | 152,805 | 1.3 | % | ||||||||
Loans, net of unearned income | 7,861,508 | 7,747,301 | 114,207 | 1.5 | % | |||||||||||
Deposits | 8,139,667 | 7,981,147 | 158,520 | 2.0 | % | |||||||||||
Short-term borrowings | 1,134,583 | 1,265,360 | (130,777 | ) | -10.3 | % | ||||||||||
Long-term debt | 951,745 | 773,129 | 178,616 | 23.1 | % | |||||||||||
Shareholders’ equity | 1,194,075 | 1,235,519 | (41,444 | ) | -3.4 | % | ||||||||||
AVERAGE BALANCES: | ||||||||||||||||
Total assets | $ | 11,417,078 | $ | 11,210,219 | $ | 206,859 | 1.8 | % | ||||||||
Loans, net of unearned income | 7,823,737 | 7,675,034 | 148,703 | 1.9 | % | |||||||||||
Deposits | 8,059,110 | 7,912,299 | 146,811 | 1.9 | % | |||||||||||
Short-term borrowings | 1,180,975 | 1,239,454 | (58,479 | ) | -4.7 | % | ||||||||||
Long-term debt | 841,650 | 681,450 | 160,200 | 23.5 | % | |||||||||||
Shareholders’ equity | 1,195,455 | 1,249,868 | (54,413 | ) | -4.4 | % |
FULTON FINANCIAL CORPORATION
CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)
June 30 | Variance | |||||||||||||||
2005 | 2004 | $ | % | |||||||||||||
(in thousands) | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and due from banks | $ | 358,581 | $ | 335,176 | $ | 23,405 | 7.0 | % | ||||||||
Loans held for sale | 237,713 | 144,050 | 93,663 | 65.0 | % | |||||||||||
Other interest-earning assets | 22,600 | 7,021 | 15,579 | 221.9 | % | |||||||||||
Investment securities | 2,429,365 | 2,489,031 | (59,666 | ) | -2.4 | % | ||||||||||
Loans, net of allowance | 7,771,106 | 6,955,772 | 815,334 | 11.7 | % | |||||||||||
Premises and equipment | 153,598 | 130,721 | 22,877 | 17.5 | % | |||||||||||
Accrued interest receivable | 43,819 | 35,701 | 8,118 | 22.7 | % | |||||||||||
Goodwill and intangible assets | 386,795 | 296,213 | 90,582 | 30.6 | % | |||||||||||
Other assets | 167,506 | 162,736 | 4,770 | 2.9 | % | |||||||||||
Total Assets | $ | 11,571,083 | $ | 10,556,421 | $ | 1,014,662 | 9.6 | % | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Deposits | $ | 8,139,667 | $ | 7,430,988 | $ | 708,679 | 9.5 | % | ||||||||
Short-term borrowings | 1,134,583 | 1,241,522 | (106,939 | ) | -8.6 | % | ||||||||||
Long-term debt | 951,745 | 654,886 | 296,859 | 45.3 | % | |||||||||||
Other liabilities | 151,013 | 121,543 | 29,470 | 24.2 | % | |||||||||||
Total Liabilities | 10,377,008 | 9,448,939 | 928,069 | 9.8 | % | |||||||||||
Shareholders’ equity | 1,194,075 | 1,107,482 | 86,593 | 7.8 | % | |||||||||||
Total Liabilities and Shareholders’ Equity | $ | 11,571,083 | $ | 10,556,421 | $ | 1,014,662 | 9.6 | % | ||||||||
LOANS AND DEPOSITS DETAIL: | ||||||||||||||||
Loans, by type: | ||||||||||||||||
Commercial — industrial and financial | $ | 1,991,480 | $ | 1,818,570 | $ | 172,910 | 9.5 | % | ||||||||
Commercial — agricultural | 322,791 | 324,465 | (1,674 | ) | -0.5 | % | ||||||||||
Real estate — commercial mortgage | 2,556,990 | 2,240,228 | 316,762 | 14.1 | % | |||||||||||
Real estate — residential mortgage | 558,845 | 504,320 | 54,525 | 10.8 | % | |||||||||||
Real estate — construction | 743,774 | 560,865 | 182,909 | 32.6 | % | |||||||||||
Real estate — home equity | 1,141,749 | 1,004,532 | 137,217 | 13.7 | % | |||||||||||
Consumer | 485,492 | 522,576 | (37,084 | ) | -7.1 | % | ||||||||||
Leasing and other | 60,387 | 66,755 | (6,368 | ) | -9.5 | % | ||||||||||
Total Loans, net of unearned income | $ | 7,861,508 | $ | 7,042,311 | $ | 819,197 | 11.6 | % | ||||||||
Deposits, by type: | ||||||||||||||||
Noninterest-bearing demand | $ | 1,611,909 | $ | 1,414,770 | $ | 197,139 | 13.9 | % | ||||||||
Interest-bearing demand | 1,471,398 | 1,361,379 | 110,019 | 8.1 | % | |||||||||||
Savings deposits | 1,965,523 | 1,866,042 | 99,481 | 5.3 | % | |||||||||||
Time deposits | 3,090,837 | 2,788,797 | 302,040 | 10.8 | % | |||||||||||
Total Deposits | $ | 8,139,667 | $ | 7,430,988 | $ | 708,679 | 9.5 | % | ||||||||
FULTON FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Quarter Ended | ||||||||||||||||
June 30 | Variance | |||||||||||||||
2005 | 2004 | $ | % | |||||||||||||
(in thousands, except per-share data) | ||||||||||||||||
Interest Income: | ||||||||||||||||
Loans, including fees | $ | 123,309 | $ | 96,859 | $ | 26,450 | 27.3 | % | ||||||||
Investment securities: | ||||||||||||||||
Taxable | 18,257 | 19,652 | (1,395 | ) | -7.1 | % | ||||||||||
Tax-exempt | 2,843 | 2,540 | 303 | 11.9 | % | |||||||||||
Dividends | 1,155 | 992 | 163 | 16.4 | % | |||||||||||
Loans held for sale | 2,699 | 1,962 | 737 | 37.6 | % | |||||||||||
Other interest income | 348 | 19 | 329 | 1731.6 | % | |||||||||||
Total Interest Income | 148,611 | 122,024 | 26,587 | 21.8 | % | |||||||||||
Interest Expense: | ||||||||||||||||
Deposits | 31,104 | 22,345 | 8,759 | 39.2 | % | |||||||||||
Short-term borrowings | 7,914 | 3,135 | 4,779 | 152.4 | % | |||||||||||
Long-term debt | 9,668 | 7,838 | 1,830 | 23.3 | % | |||||||||||
Total Interest Expense | 48,686 | 33,318 | 15,368 | 46.1 | % | |||||||||||
Net Interest Income | 99,925 | 88,706 | 11,219 | 12.6 | % | |||||||||||
Provision for Loan Losses | 725 | 800 | (75 | ) | -9.4 | % | ||||||||||
Net Interest Income after Provision | 99,200 | 87,906 | 11,294 | 12.8 | % | |||||||||||
Other Income: | ||||||||||||||||
Investment management and trust services | 8,966 | 8,637 | 329 | 3.8 | % | |||||||||||
Service charges on deposit accounts | 9,960 | 9,929 | 31 | 0.3 | % | |||||||||||
Other service charges and fees | 7,142 | 4,970 | 2,172 | 43.7 | % | |||||||||||
Gain on sale of mortgage loans | 6,290 | 6,050 | 240 | 4.0 | % | |||||||||||
Investment securities gains | 1,418 | 5,349 | (3,931 | ) | -73.5 | % | ||||||||||
Other | 4,539 | 1,727 | 2,812 | 162.8 | % | |||||||||||
Total Other Income | 38,315 | 36,662 | 1,653 | 4.5 | % | |||||||||||
Other Expenses: | ||||||||||||||||
Salaries and employee benefits | 45,152 | 41,834 | 3,318 | 7.9 | % | |||||||||||
Net occupancy expense | 6,549 | 5,859 | 690 | 11.8 | % | |||||||||||
Equipment expense | 2,888 | 2,749 | 139 | 5.1 | % | |||||||||||
Data processing | 3,321 | 2,868 | 453 | 15.8 | % | |||||||||||
Advertising | 2,276 | 1,914 | 362 | 18.9 | % | |||||||||||
Intangible amortization | 1,168 | 1,356 | (188 | ) | -13.9 | % | ||||||||||
Other | 16,752 | 13,957 | 2,795 | 20.0 | % | |||||||||||
Total Other Expenses | 78,106 | 70,537 | 7,569 | 10.7 | % | |||||||||||
Income Before Income Taxes | 59,409 | 54,031 | 5,378 | 10.0 | % | |||||||||||
Income Taxes | 17,829 | 16,167 | 1,662 | 10.3 | % | |||||||||||
Net Income | $ | 41,580 | $ | 37,864 | $ | 3,716 | 9.8 | % | ||||||||
SHARE AND PER-SHARE INFORMATION: | ||||||||||||||||
Net income: | ||||||||||||||||
Basic | $ | 0.27 | $ | 0.25 | $ | 0.02 | 8.0 | % | ||||||||
Diluted | 0.27 | 0.25 | 0.02 | 8.0 | % | |||||||||||
Cash dividends | $ | 0.145 | $ | 0.132 | $ | 0.013 | 9.8 | % | ||||||||
Book value | 7.81 | 7.27 | 0.54 | 7.4 | % | |||||||||||
Tangible book value | 5.28 | 5.33 | (0.05 | ) | -0.9 | % | ||||||||||
Weighted average shares (basic) | 154,509 | 152,647 | 1,862 | 1.2 | % | |||||||||||
Weighted average shares (diluted) | 156,230 | 154,356 | 1,874 | 1.2 | % | |||||||||||
Shares outstanding, end of period | 152,956 | 152,350 | 606 | 0.4 | % | |||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||
Return on average assets | 1.46 | % | 1.44 | % | ||||||||||||
Return on average equity | 13.95 | % | 13.82 | % | ||||||||||||
Return on average equity (tangible) | 20.64 | % | 17.84 | % | ||||||||||||
Net interest margin | 3.92 | % | 3.73 | % | ||||||||||||
Efficiency ratio | 55.3 | % | 56.5 | % | ||||||||||||
Average equity to average assets | 10.5 | % | 10.4 | % |
FULTON FINANCIAL CORPORATION
AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
Quarter Ended June 30 | ||||||||||||||||||||||||
2005 | 2004 | |||||||||||||||||||||||
Balance | Interest | Rate (1) | Balance | Interest | Rate (1) | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans and leases | $ | 7,823,737 | $ | 124,080 | 6.36 | % | $ | 6,946,626 | $ | 97,705 | 5.65 | % | ||||||||||||
Taxable investment securities | 1,965,683 | 18,257 | 3.71 | % | 2,299,834 | 19,652 | 3.39 | % | ||||||||||||||||
Tax-exempt investment securities | 341,044 | 4,227 | 4.96 | % | 272,891 | 3,822 | 5.60 | % | ||||||||||||||||
Equity securities | 129,980 | 1,341 | 4.14 | % | 137,528 | 1,196 | 3.49 | % | ||||||||||||||||
Total Investment Securities | 2,436,707 | 23,825 | 3.91 | % | 2,710,253 | 24,670 | 3.62 | % | ||||||||||||||||
Loans held for sale | 152,502 | 2,699 | 7.08 | % | 115,658 | 1,962 | 6.79 | % | ||||||||||||||||
Other interest-earning assets | 47,819 | 348 | 2.90 | % | 6,719 | 19 | 1.09 | % | ||||||||||||||||
Total Interest-earning Assets | 10,460,765 | 150,952 | 5.79 | % | 9,779,256 | 124,356 | 5.10 | % | ||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 342,592 | 332,651 | ||||||||||||||||||||||
Premises and equipment | 152,123 | 130,737 | ||||||||||||||||||||||
Other assets | 552,807 | 447,700 | ||||||||||||||||||||||
Less: allowance for loan losses | (91,209 | ) | (86,800 | ) | ||||||||||||||||||||
Total Assets | $ | 11,417,078 | $ | 10,603,544 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | $ | 1,484,772 | $ | 3,309 | 0.89 | % | $ | 1,362,761 | $ | 1,634 | 0.48 | % | ||||||||||||
Savings deposits | 1,986,909 | 5,859 | 1.18 | % | 1,857,175 | 2,637 | 0.57 | % | ||||||||||||||||
Time deposits | 3,019,818 | 21,936 | 2.91 | % | 2,841,569 | 18,074 | 2.56 | % | ||||||||||||||||
Total Interest-bearing Deposits | 6,491,499 | 31,104 | 1.92 | % | 6,061,505 | 22,345 | 1.48 | % | ||||||||||||||||
Short-term borrowings | 1,180,975 | 7,914 | 2.68 | % | 1,282,657 | 3,135 | 0.98 | % | ||||||||||||||||
Long-term debt | 841,650 | 9,668 | 4.59 | % | 656,803 | 7,838 | 4.70 | % | ||||||||||||||||
Total Interest-bearing Liabilities | 8,514,124 | 48,686 | 2.29 | % | 8,000,965 | 33,318 | 1.67 | % | ||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 1,567,611 | 1,386,770 | ||||||||||||||||||||||
Other | 139,888 | 114,219 | ||||||||||||||||||||||
Total Liabilities | 10,221,623 | 9,501,954 | ||||||||||||||||||||||
Shareholders’ equity | 1,195,455 | 1,101,590 | ||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 11,417,078 | $ | 10,603,544 | ||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 102,266 | 3.92 | % | 91,038 | 3.73 | % | ||||||||||||||||||
Tax equivalent adjustment | (2,341 | ) | (2,332 | ) | ||||||||||||||||||||
Net interest income | $ | 99,925 | $ | 88,706 | ||||||||||||||||||||
(1) | Presented on a tax-equivalent basis using a 35% Federal tax rate. |
FULTON FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Six Months Ended | ||||||||||||||||
June 30 | Variance | |||||||||||||||
2005 | 2004 | $ | % | |||||||||||||
(in thousands, except per-share data) | ||||||||||||||||
Interest Income: | ||||||||||||||||
Loans, including fees | $ | 239,937 | $ | 185,325 | $ | 54,612 | 29.5 | % | ||||||||
Investment securities: | ||||||||||||||||
Taxable | 36,518 | 41,388 | (4,870 | ) | -11.8 | % | ||||||||||
Tax-exempt | 5,692 | 5,073 | 619 | 12.2 | % | |||||||||||
Dividends | 2,239 | 1,944 | 295 | 15.2 | % | |||||||||||
Loans held for sale | 4,511 | 2,201 | 2,310 | 105.0 | % | |||||||||||
Other interest income | 524 | 29 | 495 | 1706.9 | % | |||||||||||
Total Interest Income | 289,421 | 235,960 | 53,461 | 22.7 | % | |||||||||||
Interest Expense: | ||||||||||||||||
Deposits | 58,912 | 42,695 | 16,217 | 38.0 | % | |||||||||||
Short-term borrowings | 14,738 | 6,462 | 8,276 | 128.1 | % | |||||||||||
Long-term debt | 17,598 | 15,130 | 2,468 | 16.3 | % | |||||||||||
Total Interest Expense | 91,248 | 64,287 | 26,961 | 41.9 | % | |||||||||||
Net Interest Income | 198,173 | 171,673 | 26,500 | 15.4 | % | |||||||||||
Provision for Loan Losses | 1,525 | 2,540 | (1,015 | ) | -40.0 | % | ||||||||||
Net Interest Income after Provision | 196,648 | 169,133 | 27,515 | 16.3 | % | |||||||||||
Other Income: | ||||||||||||||||
Investment management and trust services | 17,985 | 17,282 | 703 | 4.1 | % | |||||||||||
Service charges on deposit accounts | 19,292 | 19,434 | (142 | ) | -0.7 | % | ||||||||||
Other service charges and fees | 12,698 | 9,996 | 2,702 | 27.0 | % | |||||||||||
Gain on sale of mortgage loans | 12,339 | 7,764 | 4,575 | 58.9 | % | |||||||||||
Investment securities gains | 4,733 | 11,177 | (6,444 | ) | -57.7 | % | ||||||||||
Other | 7,121 | 3,047 | 4,074 | 133.7 | % | |||||||||||
Total Other Income | 74,168 | 68,700 | 5,468 | 8.0 | % | |||||||||||
Other Expenses: | ||||||||||||||||
Salaries and employee benefits | 89,353 | 78,592 | 10,761 | 13.7 | % | |||||||||||
Net occupancy expense | 14,047 | 11,377 | 2,670 | 23.5 | % | |||||||||||
Equipment expense | 5,958 | 5,390 | 568 | 10.5 | % | |||||||||||
Data processing | 6,490 | 5,687 | 803 | 14.1 | % | |||||||||||
Advertising | 4,249 | 3,442 | 807 | 23.4 | % | |||||||||||
Intangible amortization | 2,347 | 2,347 | — | 0.0 | % | |||||||||||
Other | 29,393 | 25,974 | 3,419 | 13.2 | % | |||||||||||
Total Other Expenses | 151,837 | 132,809 | 19,028 | 14.3 | % | |||||||||||
Income Before Income Taxes | 118,979 | 105,024 | 13,955 | 13.3 | % | |||||||||||
Income Taxes | 35,868 | 31,314 | 4,554 | 14.5 | % | |||||||||||
Net Income | $ | 83,111 | $ | 73,710 | $ | 9,401 | 12.8 | % | ||||||||
SHARE AND PER-SHARE INFORMATION: | ||||||||||||||||
Net income: | ||||||||||||||||
Basic | $ | 0.53 | $ | 0.50 | $ | 0.03 | 6.0 | % | ||||||||
Diluted | 0.53 | 0.50 | 0.03 | 6.0 | % | |||||||||||
Cash dividends | $ | 0.277 | $ | 0.254 | $ | 0.023 | 9.1 | % | ||||||||
Book value | 7.81 | 7.27 | 0.54 | 7.4 | % | |||||||||||
Tangible book value | 5.28 | 5.33 | (0.05 | ) | -0.9 | % | ||||||||||
Weighted average shares (basic) | 155,922 | 147,380 | 8,542 | 5.8 | % | |||||||||||
Weighted average shares (diluted) | 157,750 | 148,854 | 8,896 | 6.0 | % | |||||||||||
Shares outstanding, end of period | 152,956 | 152,350 | 606 | 0.4 | % | |||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||
Return on average assets | 1.48 | % | 1.46 | % | ||||||||||||
Return on average equity | 13.71 | % | 14.45 | % | ||||||||||||
Return on average equity (tangible) | 20.09 | % | 17.89 | % | ||||||||||||
Net interest margin | 3.94 | % | 3.76 | % | ||||||||||||
Efficiency ratio | 54.9 | % | 55.8 | % | ||||||||||||
Average equity to average assets | 10.8 | % | 10.1 | % |
FULTON FINANCIAL CORPORATION
AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
Six Months Ended June 30 | ||||||||||||||||||||||||
2005 | 2004 | |||||||||||||||||||||||
Balance | Interest | Rate (1) | Balance | Interest | Rate (1) | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans and leases | $ | 7,749,797 | $ | 241,461 | 6.28 | % | $ | 6,567,307 | $ | 187,000 | 5.72 | % | ||||||||||||
Taxable investment securities | 1,974,723 | 36,518 | 3.69 | % | 2,351,126 | 41,388 | 3.49 | % | ||||||||||||||||
Tax-exempt investment securitites | 338,215 | 8,481 | 5.02 | % | 274,517 | 7,631 | 5.56 | % | ||||||||||||||||
Equity securities | 126,907 | 2,611 | 4.13 | % | 134,540 | 2,389 | 3.56 | % | ||||||||||||||||
Total Investment Securities | 2,439,845 | 47,610 | 3.90 | % | 2,760,183 | 51,408 | 3.70 | % | ||||||||||||||||
Mortgage loans held for sale | 132,670 | 4,511 | 6.80 | % | 65,435 | 2,201 | 6.73 | % | ||||||||||||||||
Short-term investments | 38,313 | 524 | 2.74 | % | 5,231 | 29 | 1.12 | % | ||||||||||||||||
Total Interest-earning Assets | 10,360,625 | 294,106 | 5.71 | % | 9,398,156 | 240,638 | 5.14 | % | ||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 332,747 | 316,720 | ||||||||||||||||||||||
Premises and equipment | 150,579 | 126,083 | ||||||||||||||||||||||
Other assets | 561,120 | 381,826 | ||||||||||||||||||||||
Less: allowance for loan losses | (90,851 | ) | (82,766 | ) | ||||||||||||||||||||
Total Assets | $ | 11,314,220 | $ | 10,140,019 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | $ | 1,489,850 | $ | 6,279 | 0.85 | % | $ | 1,315,716 | $ | 2,989 | 0.46 | % | ||||||||||||
Savings deposits | 1,949,573 | 10,324 | 1.07 | % | 1,808,639 | 5,143 | 0.57 | % | ||||||||||||||||
Time deposits | 3,008,161 | 42,309 | 2.84 | % | 2,636,657 | 34,563 | 2.64 | % | ||||||||||||||||
Total Interest-bearing Deposits | 6,447,584 | 58,912 | 1.84 | % | 5,761,012 | 42,695 | 1.49 | % | ||||||||||||||||
Short-term borrowings | 1,210,053 | 14,738 | 2.44 | % | 1,313,970 | 6,462 | 0.98 | % | ||||||||||||||||
Long-term debt | 761,992 | 17,598 | 4.64 | % | 613,439 | 15,130 | 4.85 | % | ||||||||||||||||
Total Interest-bearing Liabilities | 8,419,629 | 91,248 | 2.18 | % | 7,688,421 | 64,287 | 1.67 | % | ||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 1,538,526 | 1,322,155 | ||||||||||||||||||||||
Other | 133,554 | 103,785 | ||||||||||||||||||||||
Total Liabilities | 10,091,709 | 9,114,361 | ||||||||||||||||||||||
Shareholders’ equity | 1,222,511 | 1,025,658 | ||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 11,314,220 | $ | 10,140,019 | ||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 202,858 | 3.94 | % | 176,351 | 3.76 | % | ||||||||||||||||||
Tax equivalent adjustment | (4,685 | ) | (4,678 | ) | ||||||||||||||||||||
Net interest income | $ | 198,173 | $ | 171,673 | ||||||||||||||||||||
(1) | Presented on a tax-equivalent basis using a 35% Federal tax rate. |
FULTON FINANCIAL CORPORATION
CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)
Quarter Ended | Variance | |||||||||||||||
June 30 | March 31 | |||||||||||||||
2005 | 2005 | $ | % | |||||||||||||
(in thousands) | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and due from banks | $ | 358,581 | $ | 336,039 | $ | 22,542 | 6.7 | % | ||||||||
Loans held for sale | 237,713 | 163,004 | 74,709 | 45.8 | % | |||||||||||
Other interest-earning assets | 22,600 | 84,123 | (61,523 | ) | -73.1 | % | ||||||||||
Investment securities | 2,429,365 | 2,385,358 | 44,007 | 1.8 | % | |||||||||||
Loans, net of allowance | 7,771,106 | 7,657,174 | 113,932 | 1.5 | % | |||||||||||
Premises and equipment | 153,598 | 149,492 | 4,106 | 2.7 | % | |||||||||||
Accrued interest receivable | 43,819 | 42,214 | 1,605 | 3.8 | % | |||||||||||
Goodwill and intangible assets | 386,795 | 388,260 | (1,465 | ) | -0.4 | % | ||||||||||
Other assets | 167,506 | 212,614 | (45,108 | ) | -21.2 | % | ||||||||||
Total Assets | $ | 11,571,083 | $ | 11,418,278 | $ | 152,805 | 1.3 | % | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Deposits | $ | 8,139,667 | $ | 7,981,147 | $ | 158,520 | 2.0 | % | ||||||||
Short-term borrowings | 1,134,583 | 1,265,360 | (130,777 | ) | -10.3 | % | ||||||||||
Long-term debt | 951,745 | 773,129 | 178,616 | 23.1 | % | |||||||||||
Other liabilities | 151,013 | 163,123 | (12,110 | ) | -7.4 | % | ||||||||||
Total Liabilities | 10,377,008 | 10,182,759 | 194,249 | 1.9 | % | |||||||||||
Shareholders’ equity | 1,194,075 | 1,235,519 | (41,444 | ) | -3.4 | % | ||||||||||
Total Liabilities and Shareholders’ Equity | $ | 11,571,083 | $ | 11,418,278 | $ | 152,805 | 1.3 | % | ||||||||
LOANS AND DEPOSITS DETAIL: | ||||||||||||||||
Loans, by type: | ||||||||||||||||
Commercial — industrial and financial | $ | 1,991,480 | $ | 1,975,981 | $ | 15,499 | 0.8 | % | ||||||||
Commercial — agricultural | 322,791 | 319,647 | 3,144 | 1.0 | % | |||||||||||
Real estate — commercial mortgage | 2,556,990 | 2,540,554 | 16,436 | 0.6 | % | |||||||||||
Real estate — residential mortgage | 558,845 | 556,966 | 1,879 | 0.3 | % | |||||||||||
Real estate — construction | 743,774 | 690,325 | 53,449 | 7.7 | % | |||||||||||
Real estate — home equity | 1,141,749 | 1,110,126 | 31,623 | 2.8 | % | |||||||||||
Consumer | 485,492 | 496,031 | (10,539 | ) | -2.1 | % | ||||||||||
Leasing and other | 60,387 | 57,671 | 2,716 | 4.7 | % | |||||||||||
Total Loans, net of unearned income | $ | 7,861,508 | $ | 7,747,301 | $ | 114,207 | 1.5 | % | ||||||||
Deposits, by type: | ||||||||||||||||
Noninterest-bearing demand | $ | 1,611,909 | $ | 1,579,400 | $ | 32,509 | 2.1 | % | ||||||||
Interest-bearing demand | 1,471,398 | 1,479,124 | (7,726 | ) | -0.5 | % | ||||||||||
Savings deposits | 1,965,523 | 1,916,942 | 48,581 | 2.5 | % | |||||||||||
Time deposits | 3,090,837 | 3,005,681 | 85,156 | 2.8 | % | |||||||||||
Total Deposits | $ | 8,139,667 | $ | 7,981,147 | $ | 158,520 | 2.0 | % | ||||||||
FULTON FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Quarter Ended | Variance | |||||||||||||||
June 30 | March 31 | |||||||||||||||
2005 | 2005 | $ | % | |||||||||||||
(in thousands) | ||||||||||||||||
Interest Income: | ||||||||||||||||
Loans, including fees | $ | 123,309 | $ | 116,628 | $ | 6,681 | 5.7 | % | ||||||||
Investment securities: | ||||||||||||||||
Taxable | 18,257 | 18,261 | (4 | ) | 0.0 | % | ||||||||||
Tax-exempt | 2,843 | 2,849 | (6 | ) | -0.2 | % | ||||||||||
Dividends | 1,155 | 1,084 | 71 | 6.5 | % | |||||||||||
Loans held for sale | 2,699 | 1,812 | 887 | 49.0 | % | |||||||||||
Other interest income | 348 | 176 | 172 | 97.7 | % | |||||||||||
Total Interest Income | 148,611 | 140,810 | 7,801 | 5.5 | % | |||||||||||
Interest Expense: | ||||||||||||||||
Deposits | 31,104 | 27,808 | 3,296 | 11.9 | % | |||||||||||
Short-term borrowings | 7,914 | 6,824 | 1,090 | 16.0 | % | |||||||||||
Long-term debt | 9,668 | 7,930 | 1,738 | 21.9 | % | |||||||||||
Total Interest Expense | 48,686 | 42,562 | 6,124 | 14.4 | % | |||||||||||
Net Interest Income | 99,925 | 98,248 | 1,677 | 1.7 | % | |||||||||||
Provision for Loan Losses | 725 | 800 | (75 | ) | -9.4 | % | ||||||||||
Net Interest Income after Provision | 99,200 | 97,448 | 1,752 | 1.8 | % | |||||||||||
Other Income: | ||||||||||||||||
Investment management and trust services | 8,966 | 9,019 | (53 | ) | -0.6 | % | ||||||||||
Service charges on deposit accounts | 9,960 | 9,332 | 628 | 6.7 | % | |||||||||||
Other service charges and fees | 7,142 | 5,556 | 1,586 | 28.5 | % | |||||||||||
Gain on sale of mortgage loans | 6,290 | 6,049 | 241 | 4.0 | % | |||||||||||
Investment securities gains | 1,418 | 3,315 | (1,897 | ) | -57.2 | % | ||||||||||
Other | 4,539 | 2,582 | 1,957 | 75.8 | % | |||||||||||
Total Other Income | 38,315 | 35,853 | 2,462 | 6.9 | % | |||||||||||
Other Expenses: | ||||||||||||||||
Salaries and employee benefits | 45,152 | 44,201 | 951 | 2.2 | % | |||||||||||
Net occupancy expense | 6,549 | 7,498 | (949 | ) | -12.7 | % | ||||||||||
Equipment expense | 2,888 | 3,070 | (182 | ) | -5.9 | % | ||||||||||
Data processing | 3,321 | 3,169 | 152 | 4.8 | % | |||||||||||
Advertising | 2,276 | 1,973 | 303 | 15.4 | % | |||||||||||
Intangible amortization | 1,168 | 1,179 | (11 | ) | -0.9 | % | ||||||||||
Other | 16,752 | 12,641 | 4,111 | 32.5 | % | |||||||||||
Total Other Expenses | 78,106 | 73,731 | 4,375 | 5.9 | % | |||||||||||
Income Before Income Taxes | 59,409 | 59,570 | (161 | ) | -0.3 | % | ||||||||||
Income Taxes | 17,829 | 18,039 | (210 | ) | -1.2 | % | ||||||||||
Net Income | $ | 41,580 | $ | 41,531 | $ | 49 | 0.1 | % | ||||||||
SHARE AND PER-SHARE INFORMATION: | ||||||||||||||||
Net income: | ||||||||||||||||
Basic | $ | 0.27 | $ | 0.26 | $ | 0.01 | 3.8 | % | ||||||||
Diluted | 0.27 | 0.26 | 0.01 | 3.8 | % | |||||||||||
Cash dividends | $ | 0.145 | $ | 0.132 | $ | 0.013 | 9.8 | % | ||||||||
Book value | 7.81 | 7.85 | (0.04 | ) | -0.5 | % | ||||||||||
Tangible book value | 5.28 | 5.38 | (0.10 | ) | -1.9 | % | ||||||||||
Weighted average shares (basic) | 154,509 | 157,351 | (2,842 | ) | -1.8 | % | ||||||||||
Weighted average shares (diluted) | 156,230 | 159,289 | (3,059 | ) | -1.9 | % | ||||||||||
Shares outstanding, end of period | 152,956 | 157,340 | (4,384 | ) | -2.8 | % | ||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||
Return on average assets | 1.46 | % | 1.50 | % | ||||||||||||
Return on average equity | 13.95 | % | 13.48 | % | ||||||||||||
Return on average equity (tangible) | 20.64 | % | 19.56 | % | ||||||||||||
Net interest margin | 3.92 | % | 3.95 | % | ||||||||||||
Efficiency ratio | 55.3 | % | 54.5 | % | ||||||||||||
Average equity to average assets | 10.5 | % | 11.1 | % |
FULTON FINANCIAL CORPORATION
AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
Quarter Ended | ||||||||||||||||||||||||
June 30, 2005 | March 31, 2005 | |||||||||||||||||||||||
Balance | Interest | Rate (1) | Balance | Interest | Rate (1) | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans and leases | $ | 7,823,737 | $ | 124,080 | 6.36 | % | $ | 7,675,034 | $ | 117,389 | 6.19 | % | ||||||||||||
Taxable investment securities | 1,965,683 | 18,257 | 3.71 | % | 1,983,864 | 18,261 | 3.68 | % | ||||||||||||||||
Tax-exempt investment securities | 341,044 | 4,227 | 4.96 | % | 335,355 | 4,246 | 5.07 | % | ||||||||||||||||
Equity securities | 129,980 | 1,341 | 4.14 | % | 123,800 | 1,270 | 4.13 | % | ||||||||||||||||
Total Investment Securities | 2,436,707 | 23,825 | 3.91 | % | 2,443,019 | 23,777 | 3.89 | % | ||||||||||||||||
Mortgage loans held for sale | 152,502 | 2,699 | 7.08 | % | 112,619 | 1,812 | 6.43 | % | ||||||||||||||||
Short-term investments | 47,819 | 348 | 2.90 | % | 28,699 | 176 | 2.48 | % | ||||||||||||||||
Total Interest-earning Assets | 10,460,765 | 150,952 | 5.79 | % | 10,259,371 | 143,154 | 5.64 | % | ||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 342,592 | 322,793 | ||||||||||||||||||||||
Premises and equipment | 152,123 | 149,017 | ||||||||||||||||||||||
Other assets | 552,807 | 569,527 | ||||||||||||||||||||||
Less: allowance for loan losses | (91,209 | ) | (90,489 | ) | ||||||||||||||||||||
Total Assets | $ | 11,417,078 | $ | 11,210,219 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | $ | 1,484,772 | $ | 3,309 | 0.89 | % | $ | 1,494,984 | $ | 2,970 | 0.81 | % | ||||||||||||
Savings deposits | 1,986,909 | 5,859 | 1.18 | % | 1,911,820 | 4,466 | 0.95 | % | ||||||||||||||||
Time deposits | 3,019,818 | 21,936 | 2.91 | % | 2,996,377 | 20,372 | 2.76 | % | ||||||||||||||||
Total Interest-bearing Deposits | 6,491,499 | 31,104 | 1.92 | % | 6,403,181 | 27,808 | 1.76 | % | ||||||||||||||||
Short-term borrowings | 1,180,975 | 7,914 | 2.68 | % | 1,239,454 | 6,824 | 2.23 | % | ||||||||||||||||
Long-term debt | 841,650 | 9,668 | 4.59 | % | 681,450 | 7,930 | 4.72 | % | ||||||||||||||||
Total Interest-bearing Liabilities | 8,514,124 | 48,686 | 2.29 | % | 8,324,085 | 42,562 | 2.07 | % | ||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 1,567,611 | 1,509,118 | ||||||||||||||||||||||
Other | 139,888 | 127,148 | ||||||||||||||||||||||
Total Liabilities | 10,221,623 | 9,960,351 | ||||||||||||||||||||||
Shareholders’ equity | 1,195,455 | 1,249,868 | ||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 11,417,078 | $ | 11,210,219 | ||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 102,266 | 3.92 | % | 100,592 | 3.95 | % | ||||||||||||||||||
Tax equivalent adjustment | (2,341 | ) | (2,344 | ) | ||||||||||||||||||||
Net interest income | $ | 99,925 | $ | 98,248 | ||||||||||||||||||||
(1) | Presented on a tax-equivalent basis using a 35% Federal tax rate. |
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
Quarter Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Gross charge-offs | $ | 1,660 | $ | 1,627 | $ | 3,479 | $ | 4,315 | ||||||||
Recoveries | 1,210 | 1,183 | 2,729 | 2,702 | ||||||||||||
Net Charge-offs | $ | 450 | $ | 444 | $ | 750 | $ | 1,613 | ||||||||
Net charge-offs to average loans | 0.02 | % | 0.03 | % | 0.02 | % | 0.05 | % | ||||||||
Non-accrual loans | $ | 20,820 | $ | 21,961 | ||||||||||||
Accruing loans 90+ days overdue | 7,453 | 9,314 | ||||||||||||||
Other real estate owned | 3,478 | 1,119 | ||||||||||||||
Total Non-Performing Assets | $ | 31,751 | $ | 32,394 | ||||||||||||
Non-accrual loans to total loans | 0.26 | % | 0.31 | % | ||||||||||||
Non-performing assets to total loans and OREO | 0.40 | % | 0.46 | % | ||||||||||||
Non-performing assets to total assets | 0.27 | % | 0.31 | % | ||||||||||||
Allowance for loan losses to loans outstanding | 1.15 | % | 1.23 | % |
Quarter Ended | ||||||||
June 30 | March 31 | |||||||
2005 | 2005 | |||||||
(dollars in thousands) | ||||||||
Gross charge-offs | $ | 1,660 | $ | 1,819 | ||||
Recoveries | 1,210 | 1,519 | ||||||
Net Charge-offs | $ | 450 | $ | 300 | ||||
Net charge-offs to average loans | 0.02 | % | 0.02 | % | ||||
Non-accrual Loans | $ | 20,820 | $ | 19,232 | ||||
Accruing loans 90+ days overdue | 7,453 | 6,545 | ||||||
Other real estate owned | 3,478 | 3,244 | ||||||
Total Non-Performing Assets | $ | 31,751 | $ | 29,021 | ||||
Non-accrual loans to total loans | 0.26 | % | 0.25 | % | ||||
Non-performing assets to total loans and OREO | 0.40 | % | 0.37 | % | ||||
Non-performing assets to total assets | 0.27 | % | 0.25 | % | ||||
Allowance for loan losses to loans outstanding | 1.15 | % | 1.16 | % |