EXHIBIT 99.2
FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
dollars in thousands, except per-share data
FINANCIAL HIGHLIGHTS (UNAUDITED)
dollars in thousands, except per-share data
December 31 | ||||||||||||
BALANCE SHEET DATA | 2007 | 2006 | % Change | |||||||||
Total assets | $ | 15,912,232 | $ | 14,918,964 | 6.7 | % | ||||||
Loans, net of unearned income | 11,204,424 | 10,374,323 | 8.0 | % | ||||||||
Investment securities | 3,153,552 | 2,878,238 | 9.6 | % | ||||||||
Deposits | 10,105,445 | 10,232,469 | (1.2 | %) | ||||||||
Shareholders’ equity | 1,574,062 | 1,516,310 | 3.8 | % |
Quarter Ended December 31 | Year Ended December 31 | |||||||||||||||||||||||
INCOME SUMMARY | 2007 | 2006 | % Change | 2007 | 2006 | % Change | ||||||||||||||||||
Interest income | $ | 240,069 | $ | 229,548 | 4.6 | % | $ | 939,577 | $ | 864,507 | 8.7 | % | ||||||||||||
Interest expense | (116,418 | ) | (107,803 | ) | 8.0 | % | (450,833 | ) | (378,944 | ) | 19.0 | % | ||||||||||||
Net interest income | 123,651 | 121,745 | 1.6 | % | 488,744 | 485,563 | 0.7 | % | ||||||||||||||||
Provision for loan losses | (6,800 | ) | (1,068 | ) | 536.7 | % | (15,063 | ) | (3,498 | ) | 330.6 | % | ||||||||||||
Investment securities (losses) gains | (537 | ) | 1,915 | (128.0 | %) | 1,740 | 7,439 | (76.6 | %) | |||||||||||||||
Other income | 35,748 | 38,439 | (7.0 | %) | 146,284 | 142,436 | 2.7 | % | ||||||||||||||||
Other expenses | (98,447 | ) | (94,757 | ) | 3.9 | % | (405,455 | ) | (365,991 | ) | 10.8 | % | ||||||||||||
Income before income taxes | 53,615 | 66,274 | (19.1 | %) | 216,250 | 265,949 | (18.7 | %) | ||||||||||||||||
Income taxes | (15,436 | ) | (19,669 | ) | (21.5 | %) | (63,532 | ) | (80,422 | ) | (21.0 | %) | ||||||||||||
Net income | $ | 38,179 | $ | 46,605 | (18.1 | %) | $ | 152,718 | $ | 185,527 | (17.7 | %) | ||||||||||||
PER-SHARE DATA: | ||||||||||||||||||||||||
Net income: | ||||||||||||||||||||||||
Basic | $ | 0.22 | $ | 0.27 | (18.5 | %) | $ | 0.88 | $ | 1.07 | (17.8 | %) | ||||||||||||
Diluted | 0.22 | 0.27 | (18.5 | %) | 0.88 | 1.06 | (17.0 | %) | ||||||||||||||||
Cash dividends | 0.1500 | 0.1475 | 1.7 | % | 0.598 | 0.581 | 2.9 | % | ||||||||||||||||
Shareholders’ equity | 9.07 | 8.73 | 3.9 | % | ||||||||||||||||||||
Shareholders’ equity (tangible) | 5.30 | 4.91 | 7.9 | % | ||||||||||||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||||||||||
Return on average assets | 0.97 | % | 1.25 | % | 1.01 | % | 1.30 | % | ||||||||||||||||
Return on average shareholders’ equity | 9.72 | % | 12.29 | % | 9.98 | % | 12.84 | % | ||||||||||||||||
Return on average shareholders’ equity (tangible) | 17.44 | % | 22.55 | % | 18.16 | % | 23.87 | % | ||||||||||||||||
Net interest margin | 3.56 | % | 3.68 | % | 3.66 | % | 3.82 | % | ||||||||||||||||
Efficiency ratio | 59.09 | % | 56.83 | % | 61.19 | % | 56.00 | % | ||||||||||||||||
Non-performing assets to total assets | 0.76 | % | 0.39 | % |
1
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
% Change from | ||||||||||||||||||||
December 31 | December 31 | September 30 | December 31 | September 30 | ||||||||||||||||
2007 | 2006 | 2007 | 2006 | 2007 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 381,283 | $ | 355,018 | $ | 337,306 | 7.4 | % | 13.0 | % | ||||||||||
Loans held for sale | 103,984 | 239,042 | 116,451 | (56.5 | %) | (10.7 | %) | |||||||||||||
Other interest-earning assets | 21,153 | 28,188 | 19,673 | (25.0 | %) | 7.5 | % | |||||||||||||
Investment securities | 3,153,552 | 2,878,238 | 2,948,262 | 9.6 | % | 7.0 | % | |||||||||||||
Loans, net of unearned | 11,204,424 | 10,374,323 | 10,988,307 | 8.0 | % | 2.0 | % | |||||||||||||
Allowance for loan losses | (107,547 | ) | (106,884 | ) | (109,435 | ) | 0.6 | % | (1.7 | %) | ||||||||||
Net Loans | 11,096,877 | 10,267,439 | 10,878,872 | 8.1 | % | 2.0 | % | |||||||||||||
Premises and equipment | 193,296 | 191,401 | 190,092 | 1.0 | % | 1.7 | % | |||||||||||||
Accrued interest receivable | 73,435 | 71,825 | 73,927 | 2.2 | % | (0.7 | %) | |||||||||||||
Goodwill and intangible assets | 654,908 | 663,775 | 658,274 | (1.3 | %) | (0.5 | %) | |||||||||||||
Other assets | 233,744 | 224,038 | 215,320 | 4.3 | % | 8.6 | % | |||||||||||||
Total Assets | $ | 15,912,232 | $ | 14,918,964 | $ | 15,438,177 | 6.7 | % | 3.1 | % | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Deposits | $ | 10,105,445 | $ | 10,232,469 | $ | 10,291,186 | (1.2 | %) | (1.8 | %) | ||||||||||
Short-term borrowings | 2,383,944 | 1,680,840 | 1,773,083 | 41.8 | % | 34.5 | % | |||||||||||||
Federal Home Loan Bank advances and long-term debt | 1,642,133 | 1,304,148 | 1,632,980 | 25.9 | % | 0.6 | % | |||||||||||||
Other liabilities | 206,648 | 185,197 | 186,808 | 11.6 | % | 10.6 | % | |||||||||||||
Total Liabilities | 14,338,170 | 13,402,654 | 13,884,057 | 7.0 | % | 3.3 | % | |||||||||||||
Shareholders’ equity | 1,574,062 | 1,516,310 | 1,554,120 | 3.8 | % | 1.3 | % | |||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 15,912,232 | $ | 14,918,964 | $ | 15,438,177 | 6.7 | % | 3.1 | % | ||||||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||
Commercial — industrial and financial | $ | 3,049,923 | $ | 2,603,224 | $ | 2,954,204 | 17.2 | % | 3.2 | % | ||||||||||
Commercial — agricultural | 377,162 | 361,962 | 374,759 | 4.2 | % | 0.6 | % | |||||||||||||
Real estate — commercial mortgage | 3,502,282 | 3,213,809 | 3,407,715 | 9.0 | % | 2.8 | % | |||||||||||||
Real estate — residential mortgage | 851,577 | 696,836 | 809,148 | 22.2 | % | 5.2 | % | |||||||||||||
Real estate — home equity | 1,501,231 | 1,455,439 | 1,472,376 | 3.1 | % | 2.0 | % | |||||||||||||
Real estate — construction | 1,342,923 | 1,428,809 | 1,389,164 | (6.0 | %) | (3.3 | %) | |||||||||||||
Consumer | 500,708 | 523,066 | 500,021 | (4.3 | %) | 0.1 | % | |||||||||||||
Leasing and other | 78,618 | 91,178 | 80,920 | (13.8 | %) | (2.8 | %) | |||||||||||||
Total Loans, net of unearned income | $ | 11,204,424 | $ | 10,374,323 | $ | 10,988,307 | 8.0 | % | 2.0 | % | ||||||||||
Deposits, by type: | ||||||||||||||||||||
Noninterest-bearing demand | $ | 1,722,211 | $ | 1,831,419 | $ | 1,696,871 | (6.0 | %) | 1.5 | % | ||||||||||
Interest-bearing demand | 1,715,315 | 1,683,857 | 1,738,605 | 1.9 | % | (1.3 | %) | |||||||||||||
Savings deposits | 2,131,374 | 2,287,146 | 2,195,363 | (6.8 | %) | (2.9 | %) | |||||||||||||
Time deposits | 4,536,545 | 4,430,047 | 4,660,347 | 2.4 | % | (2.7 | %) | |||||||||||||
Total Deposits | $ | 10,105,445 | $ | 10,232,469 | $ | 10,291,186 | (1.2 | %) | (1.8 | %) | ||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||
Customer repurchase agreements | $ | 228,061 | $ | 339,207 | $ | 248,915 | (32.8 | %) | (8.4 | %) | ||||||||||
Short-term promissory notes | 443,002 | 279,076 | 476,249 | 58.7 | % | (7.0 | %) | |||||||||||||
Federal funds purchased | 1,057,335 | 1,022,351 | 842,476 | 3.4 | % | 25.5 | % | |||||||||||||
Other | 655,546 | 40,206 | 205,443 | 1,530.5 | % | 219.1 | % | |||||||||||||
Total Short-term borrowings | $ | 2,383,944 | $ | 1,680,840 | $ | 1,773,083 | 41.8 | % | 34.5 | % | ||||||||||
2
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)
dollars in thousands, except per-share data
CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)
dollars in thousands, except per-share data
Quarter Ended | % Change from | |||||||||||||||||||||||||||||||
December 31 | December 31 | September 30 | December 31 | September 30 | Year Ended December 31 | |||||||||||||||||||||||||||
2007 | 2006 | 2007 | 2006 | 2007 | 2007 | 2006 | % Change | |||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||||||||
Interest Income | $ | 240,069 | $ | 229,548 | $ | 238,740 | 4.6 | % | 0.6 | % | $ | 939,577 | $ | 864,507 | 8.7 | % | ||||||||||||||||
Interest Expense | 116,418 | 107,803 | 116,330 | 8.0 | % | 0.1 | % | 450,833 | 378,944 | 19.0 | % | |||||||||||||||||||||
Net Interest Income | 123,651 | 121,745 | 122,410 | 1.6 | % | 1.0 | % | 488,744 | 485,563 | 0.7 | % | |||||||||||||||||||||
Provision for Loan Losses | 6,800 | 1,068 | 4,606 | 536.7 | % | 47.6 | % | 15,063 | 3,498 | 330.6 | % | |||||||||||||||||||||
Net Interest Income after Provision | 116,851 | 120,677 | 117,804 | (3.2 | %) | (0.8 | %) | 473,681 | 482,065 | (1.7 | %) | |||||||||||||||||||||
Other Income: | ||||||||||||||||||||||||||||||||
Investment management and trust services | 9,291 | 9,466 | 9,291 | (1.8 | %) | — | 38,665 | 37,441 | 3.3 | % | ||||||||||||||||||||||
Service charges on deposit accounts | 13,355 | 11,289 | 11,293 | 18.3 | % | 18.3 | % | 46,500 | 43,773 | 6.2 | % | |||||||||||||||||||||
Other service charges and fees | 8,405 | 6,869 | 8,530 | 22.4 | % | (1.5 | %) | 32,151 | 26,792 | 20.0 | % | |||||||||||||||||||||
Gains on sale of mortgage loans | 2,181 | 5,647 | 2,532 | (61.4 | %) | (13.9 | %) | 14,294 | 21,086 | (32.2 | %) | |||||||||||||||||||||
Investment securities (losses) gains | (537 | ) | 1,915 | (134 | ) | (128.0 | %) | (300.7 | %) | 1,740 | 7,439 | (76.6 | %) | |||||||||||||||||||
Other | 2,516 | 5,168 | 5,231 | (51.3 | %) | (51.9 | %) | 14,674 | 13,344 | 10.0 | % | |||||||||||||||||||||
Total Other Income | 35,211 | 40,354 | 36,743 | (12.7 | %) | (4.2 | %) | 148,024 | 149,875 | (1.2 | %) | |||||||||||||||||||||
Other Expenses: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | 53,173 | 55,546 | 52,505 | (4.3 | %) | 1.3 | % | 217,526 | 213,913 | 1.7 | % | |||||||||||||||||||||
Operating risk loss | 767 | 1,334 | 16,345 | (42.5 | %) | (95.3 | %) | 27,229 | 4,818 | 465.2 | % | |||||||||||||||||||||
Net occupancy expense | 10,002 | 9,637 | 9,813 | 3.8 | % | 1.9 | % | 39,965 | 36,493 | 9.5 | % | |||||||||||||||||||||
Equipment expense | 3,303 | 3,460 | 3,438 | (4.5 | %) | (3.9 | %) | 13,892 | 14,251 | (2.5 | %) | |||||||||||||||||||||
Data processing | 3,205 | 3,097 | 3,131 | 3.5 | % | 2.4 | % | 12,755 | 12,228 | 4.3 | % | |||||||||||||||||||||
Advertising | 3,465 | 2,424 | 2,470 | 42.9 | % | 40.3 | % | 11,334 | 10,638 | 6.5 | % | |||||||||||||||||||||
Intangible amortization | 2,158 | 2,024 | 1,995 | 6.6 | % | 8.2 | % | 8,334 | 7,907 | 5.4 | % | |||||||||||||||||||||
Other | 22,374 | 17,235 | 18,299 | 29.8 | % | 22.3 | % | 74,420 | 65,743 | 13.2 | % | |||||||||||||||||||||
Total Other Expenses | 98,447 | 94,757 | 107,996 | 3.9 | % | (8.8 | %) | 405,455 | 365,991 | 10.8 | % | |||||||||||||||||||||
Income Before Income Taxes | 53,615 | 66,274 | 46,551 | (19.1 | %) | 15.2 | % | 216,250 | 265,949 | (18.7 | %) | |||||||||||||||||||||
Income Taxes | 15,436 | 19,669 | 12,985 | (21.5 | %) | 18.9 | % | 63,532 | 80,422 | (21.0 | %) | |||||||||||||||||||||
Net Income | $ | 38,179 | $ | 46,605 | $ | 33,566 | (18.1 | %) | 13.7 | % | $ | 152,718 | $ | 185,527 | (17.7 | %) | ||||||||||||||||
SHARE AND PER-SHARE INFORMATION: | ||||||||||||||||||||||||||||||||
Net income: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.22 | $ | 0.27 | $ | 0.19 | (18.5 | %) | 15.8 | % | $ | 0.88 | $ | 1.07 | (17.8 | %) | ||||||||||||||||
Diluted | 0.22 | 0.27 | 0.19 | (18.5 | %) | 15.8 | % | 0.88 | 1.06 | (17.0 | %) | |||||||||||||||||||||
Cash dividends | $ | 0.1500 | $ | 0.1475 | $ | 0.1500 | 1.7 | % | — | $ | 0.598 | $ | 0.581 | 2.9 | % | |||||||||||||||||
Shareholders’ equity | 9.07 | 8.73 | 8.96 | 3.9 | % | 1.2 | % | |||||||||||||||||||||||||
Shareholders’ equity (tangible) | 5.30 | 4.91 | 5.17 | 7.9 | % | 2.5 | % | |||||||||||||||||||||||||
Weighted average shares (basic) | 173,416 | 173,529 | 173,304 | (0.1 | %) | 0.1 | % | 173,295 | 172,830 | 0.3 | % | |||||||||||||||||||||
Weighted average shares (diluted) | 174,155 | 175,415 | 174,370 | (0.7 | %) | (0.1 | %) | 174,386 | 174,872 | (0.3 | %) | |||||||||||||||||||||
Shares outstanding, end of period | 173,503 | 173,648 | 173,394 | (0.1 | %) | 0.1 | % | |||||||||||||||||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||||||||||||||||||
Return on average assets | 0.97 | % | 1.25 | % | 0.88 | % | 1.01 | % | 1.30 | % | ||||||||||||||||||||||
Return on average shareholders’ equity | 9.72 | % | 12.29 | % | 8.67 | % | 9.98 | % | 12.84 | % | ||||||||||||||||||||||
Return on average shareholders’ equity (tangible) | 17.44 | % | 22.55 | % | 15.76 | % | 18.16 | % | 23.87 | % | ||||||||||||||||||||||
Net interest margin | 3.56 | % | 3.68 | % | 3.62 | % | 3.66 | % | 3.82 | % | ||||||||||||||||||||||
Efficiency ratio | 59.09 | % | 56.83 | % | 65.17 | % | 61.19 | % | 56.00 | % |
3
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
dollars in thousands
Quarter Ended | ||||||||||||||||||||||||||||||||||||
December 31, 2007 | December 31, 2006 | September 30, 2007 | ||||||||||||||||||||||||||||||||||
Balance | Interest (1) | Rate (1) | Balance | Interest (1) | Rate (1) | Balance | Interest (1) | Rate (1) | ||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||
Loans and leases | $ | 11,082,957 | $ | 204,281 | 7.32 | % | $ | 10,312,354 | $ | 193,776 | 7.46 | % | $ | 10,857,636 | $ | 205,747 | 7.52 | % | ||||||||||||||||||
Taxable investment securities | 2,348,449 | 28,420 | 4.84 | % | 2,332,116 | 26,226 | 4.50 | % | 2,116,123 | 24,583 | 4.65 | % | ||||||||||||||||||||||||
Tax-exempt investment securities | 494,790 | 6,462 | 5.22 | % | 472,193 | 5,889 | 4.99 | % | 499,389 | 6,377 | 5.11 | % | ||||||||||||||||||||||||
Equity securities | 201,554 | 2,445 | 4.84 | % | 165,261 | 2,209 | 5.31 | % | 188,490 | 2,269 | 4.80 | % | ||||||||||||||||||||||||
Total Investment Securities | 3,044,793 | 37,327 | 4.90 | % | 2,969,570 | 34,324 | 4.62 | % | 2,804,002 | 33,229 | 4.74 | % | ||||||||||||||||||||||||
Loans held for sale | 101,788 | 1,730 | 6.79 | % | 212,170 | 3,876 | 7.31 | % | 159,492 | 2,694 | 6.76 | % | ||||||||||||||||||||||||
Other interest-earning assets | 24,136 | 291 | 4.78 | % | 44,804 | 580 | 5.12 | % | 34,536 | 432 | 4.91 | % | ||||||||||||||||||||||||
Total Interest-earning Assets | 14,253,674 | 243,629 | 6.80 | % | 13,538,898 | 232,556 | 6.83 | % | 13,855,666 | 242,102 | 6.95 | % | ||||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 323,490 | 321,246 | 338,862 | |||||||||||||||||||||||||||||||||
Premises and equipment | 191,502 | 190,932 | 190,175 | |||||||||||||||||||||||||||||||||
Other assets | 907,267 | 897,979 | 890,901 | |||||||||||||||||||||||||||||||||
Less: allowance for loan losses | (110,922 | ) | (107,842 | ) | (108,628 | ) | ||||||||||||||||||||||||||||||
Total Assets | $ | 15,565,011 | $ | 14,841,213 | $ | 15,166,976 | ||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Demand deposits | $ | 1,721,831 | $ | 6,598 | 1.52 | % | $ | 1,665,453 | $ | 7,000 | 1.67 | % | $ | 1,729,357 | $ | 7,630 | 1.75 | % | ||||||||||||||||||
Savings deposits | 2,179,753 | 12,046 | 2.19 | % | 2,339,493 | 14,213 | 2.41 | % | 2,259,231 | 13,680 | 2.40 | % | ||||||||||||||||||||||||
Time deposits | 4,603,944 | 54,341 | 4.68 | % | 4,406,070 | 49,501 | 4.46 | % | 4,626,160 | 55,093 | 4.72 | % | ||||||||||||||||||||||||
Total Interest-bearing Deposits | 8,505,528 | 72,985 | 3.40 | % | 8,411,016 | 70,714 | 3.34 | % | 8,614,748 | 76,403 | 3.52 | % | ||||||||||||||||||||||||
Short-term borrowings | 2,020,751 | 22,249 | 4.33 | % | 1,790,556 | 22,613 | 4.96 | % | 1,477,288 | 17,786 | 4.74 | % | ||||||||||||||||||||||||
Federal Home Loan Bank advances and long-term debt | 1,624,613 | 21,184 | 5.19 | % | 1,177,177 | 14,476 | 4.88 | % | 1,655,599 | 22,141 | 5.32 | % | ||||||||||||||||||||||||
Total Interest-bearing Liabilities | 12,150,892 | 116,418 | 3.80 | % | 11,378,749 | 107,803 | 3.75 | % | 11,747,635 | 116,330 | 3.93 | % | ||||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Demand deposits | 1,675,528 | 1,776,686 | 1,703,137 | |||||||||||||||||||||||||||||||||
Other | 180,907 | 180,941 | 179,391 | |||||||||||||||||||||||||||||||||
Total Liabilities | 14,007,327 | 13,336,376 | 13,630,163 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 1,557,684 | 1,504,837 | 1,536,813 | |||||||||||||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 15,565,011 | $ | 14,841,213 | $ | 15,166,976 | ||||||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 127,211 | 3.56 | % | 124,753 | 3.68 | % | 125,772 | 3.62 | % | |||||||||||||||||||||||||||
Tax equivalent adjustment | (3,560 | ) | (3,008 | ) | (3,362 | ) | ||||||||||||||||||||||||||||||
Net interest income | $ | 123,651 | $ | 121,745 | $ | 122,410 | ||||||||||||||||||||||||||||||
(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 | |||||||||||||||||||
December 31 | December 31 | September 30 | December 31 | September 30 | ||||||||||||||||
2007 | 2006 | 2007 | 2006 | 2007 | ||||||||||||||||
Loans, by type: | ||||||||||||||||||||
Commercial — industrial and financial | $ | 2,988,996 | $ | 2,578,374 | $ | 2,908,049 | 15.9 | % | 2.8 | % | ||||||||||
Commercial — agricultural | 375,215 | 351,112 | 373,293 | 6.9 | % | 0.5 | % | |||||||||||||
Real estate — commercial mortgage | 3,438,386 | 3,194,958 | 3,383,487 | 7.6 | % | 1.6 | % | |||||||||||||
Real estate — residential mortgage | 831,825 | 688,932 | 769,381 | 20.7 | % | 8.1 | % | |||||||||||||
Real estate — home equity | 1,486,367 | 1,462,912 | 1,454,947 | 1.6 | % | 2.2 | % | |||||||||||||
Real estate — construction | 1,377,391 | 1,428,034 | 1,382,951 | (3.5 | %) | (0.4 | %) | |||||||||||||
Consumer | 499,253 | 523,890 | 502,482 | (4.7 | %) | (0.6 | %) | |||||||||||||
Leasing and other | 85,524 | 84,142 | 83,046 | 1.6 | % | 3.0 | % | |||||||||||||
Total Loans, net of unearned income | $ | 11,082,957 | $ | 10,312,354 | $ | 10,857,636 | 7.5 | % | 2.1 | % | ||||||||||
Deposits, by type: | ||||||||||||||||||||
Noninterest-bearing demand | $ | 1,675,528 | $ | 1,776,686 | $ | 1,703,137 | (5.7 | %) | (1.6 | %) | ||||||||||
Interest-bearing demand | 1,721,831 | 1,665,453 | 1,729,357 | 3.4 | % | (0.4 | %) | |||||||||||||
Savings deposits | 2,179,753 | 2,339,493 | 2,259,231 | (6.8 | %) | (3.5 | %) | |||||||||||||
Time deposits | 4,603,944 | 4,406,070 | 4,626,160 | 4.5 | % | (0.5 | %) | |||||||||||||
Total Deposits | $ | 10,181,056 | $ | 10,187,702 | $ | 10,317,885 | (0.1 | %) | (1.3 | %) | ||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||
Customer repurchase agreements | $ | 237,346 | $ | 335,762 | $ | 242,375 | (29.3 | %) | (2.1 | %) | ||||||||||
Short-term promissory notes | 478,018 | 270,864 | 446,182 | 76.5 | % | 7.1 | % | |||||||||||||
Federal funds purchased | 975,732 | 1,128,439 | 756,360 | (13.5 | %) | 29.0 | % | |||||||||||||
Other | 329,655 | 55,491 | 32,371 | 494.1 | % | 918.4 | % | |||||||||||||
Total Short-term borrowings | $ | 2,020,751 | $ | 1,790,556 | $ | 1,477,288 | 12.9 | % | 36.8 | % | ||||||||||
4
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Year Ended December 31 | ||||||||||||||||||||||||
2007 | 2006 | |||||||||||||||||||||||
Balance | Interest (1) | Rate (1) | Balance | Interest (1) | Rate (1) | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans and leases | $ | 10,736,566 | $ | 805,881 | 7.51 | % | $ | 9,892,082 | $ | 731,057 | 7.39 | % | ||||||||||||
Taxable investment securities | 2,157,325 | 99,621 | 4.62 | % | 2,268,209 | 97,652 | 4.31 | % | ||||||||||||||||
Tax-exempt investment securities | 496,820 | 25,856 | 5.20 | % | 447,000 | 21,770 | 4.87 | % | ||||||||||||||||
Equity securities | 189,333 | 9,073 | 4.79 | % | 154,653 | 7,341 | 4.75 | % | ||||||||||||||||
Total Investment Securities | 2,843,478 | 134,550 | 4.73 | % | 2,869,862 | 126,763 | 4.42 | % | ||||||||||||||||
Loans held for sale | 166,437 | 11,501 | 6.91 | % | 215,255 | 15,564 | 7.23 | % | ||||||||||||||||
Other interest-earning assets | 33,015 | 1,630 | 4.90 | % | 53,211 | 2,530 | 4.73 | % | ||||||||||||||||
Total Interest-earning Assets | 13,779,496 | 953,562 | 6.93 | % | 13,030,410 | 875,914 | 6.73 | % | ||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 329,814 | 335,935 | ||||||||||||||||||||||
Premises and equipment | 190,910 | 185,084 | ||||||||||||||||||||||
Other assets | 899,292 | 852,186 | ||||||||||||||||||||||
Less: allowance for loan losses | (109,054 | ) | (105,934 | ) | ||||||||||||||||||||
Total Assets | $ | 15,090,458 | $ | 14,297,681 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | $ | 1,696,624 | $ | 28,331 | 1.67 | % | $ | 1,673,407 | $ | 25,112 | 1.50 | % | ||||||||||||
Savings deposits | 2,258,113 | 53,312 | 2.36 | % | 2,340,402 | 51,394 | 2.19 | % | ||||||||||||||||
Time deposits | 4,553,994 | 212,752 | 4.67 | % | 4,134,190 | 170,435 | 4.12 | % | ||||||||||||||||
Total Interest-bearing Deposits | 8,508,731 | 294,395 | 3.46 | % | 8,147,999 | 246,941 | 3.03 | % | ||||||||||||||||
Short-term borrowings | 1,574,495 | 73,983 | 4.66 | % | 1,653,974 | 78,043 | 4.67 | % | ||||||||||||||||
Federal Home Loan Bank advances and long-term debt | 1,579,527 | 82,455 | 5.22 | % | 1,069,868 | 53,960 | 5.04 | % | ||||||||||||||||
Total Interest-bearing Liabilities | 11,662,753 | 450,833 | 3.86 | % | 10,871,841 | 378,944 | 3.48 | % | ||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 1,713,863 | 1,807,248 | ||||||||||||||||||||||
Other | 183,229 | 173,799 | ||||||||||||||||||||||
Total Liabilities | 13,559,845 | 12,852,888 | ||||||||||||||||||||||
Shareholders’ equity | 1,530,613 | 1,444,793 | ||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 15,090,458 | $ | 14,297,681 | ||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 502,729 | 3.66 | % | 496,970 | 3.82 | % | ||||||||||||||||||
Tax equivalent adjustment | (13,985 | ) | (11,407 | ) | ||||||||||||||||||||
Net interest income | $ | 488,744 | $ | 485,563 | ||||||||||||||||||||
(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 | ||||||||||||
2007 | 2006 | % Change | ||||||||||
Loans, by type: | ||||||||||||
Commercial — industrial and financial | $ | 2,844,359 | $ | 2,478,893 | 14.7 | % | ||||||
Commercial — agricultural | 368,998 | 335,596 | 10.0 | % | ||||||||
Real estate — commercial mortgage | 3,337,762 | 3,073,830 | 8.6 | % | ||||||||
Real estate — residential mortgage | 753,789 | 640,775 | 17.6 | % | ||||||||
Real estate — home equity | 1,454,753 | 1,417,259 | 2.6 | % | ||||||||
Real estate — construction | 1,384,548 | 1,345,191 | 2.9 | % | ||||||||
Consumer | 506,201 | 522,761 | (3.2 | %) | ||||||||
Leasing and other | 86,156 | 77,777 | 10.8 | % | ||||||||
Total Loans, net of unearned income | $ | 10,736,566 | $ | 9,892,082 | 8.5 | % | ||||||
Deposits, by type: | ||||||||||||
Noninterest-bearing demand | $ | 1,713,863 | $ | 1,807,248 | (5.2 | %) | ||||||
Interest-bearing demand | 1,696,624 | 1,673,407 | 1.4 | % | ||||||||
Savings deposits | 2,258,113 | 2,340,402 | (3.5 | %) | ||||||||
Time deposits | 4,553,994 | 4,134,190 | 10.2 | % | ||||||||
Total Deposits | $ | 10,222,594 | $ | 9,955,247 | 2.7 | % | ||||||
Short-term borrowings, by type: | ||||||||||||
Customer repurchase agreements | $ | 247,948 | $ | 352,454 | (29.7 | %) | ||||||
Short-term promissory notes | 404,527 | 163,199 | 147.9 | % | ||||||||
Federal funds purchased | 808,358 | 1,095,875 | (26.2 | %) | ||||||||
Other | 113,662 | 42,446 | 167.8 | % | ||||||||
Total Short-term borrowings | $ | 1,574,495 | $ | 1,653,974 | (4.8 | %) | ||||||
5
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
Quarter Ended | Year Ended | |||||||||||||||||||
December 31 | December 31 | September 30 | December 31 | |||||||||||||||||
2007 | 2006 | 2007 | 2007 | 2006 | ||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||
Balance at beginning of period | $ | 109,435 | $ | 107,422 | $ | 106,892 | $ | 106,884 | $ | 92,847 | ||||||||||
Loans charged off | (5,068 | ) | (2,722 | ) | (2,805 | ) | (13,739 | ) | (6,969 | ) | ||||||||||
Recoveries of loans previously charged off | 1,042 | 1,116 | 742 | 4,001 | 4,517 | |||||||||||||||
Net loans charged off | (4,026 | ) | (1,606 | ) | (2,063 | ) | (9,738 | ) | (2,452 | ) | ||||||||||
Provision for loan losses | 6,800 | 1,068 | 4,606 | 15,063 | 3,498 | |||||||||||||||
Allowance purchased | — | — | — | — | 12,991 | |||||||||||||||
Balance at end of period | $ | 112,209 | $ | 106,884 | $ | 109,435 | $ | 112,209 | $ | 106,884 | ||||||||||
Net charge-offs to average loans (annualized) | 0.15 | % | 0.06 | % | 0.08 | % | 0.09 | % | 0.02 | % | ||||||||||
COMPONENTS OF ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||
Allowance for loan losses | $ | 107,547 | $ | 106,884 | $ | 109,435 | ||||||||||||||
Reserve for unfunded lending commitments (1) | 4,662 | — | — | |||||||||||||||||
Allowance for credit losses | $ | 112,209 | $ | 106,884 | $ | 109,435 | ||||||||||||||
(1) | Reserve for unfunded commitments transferred to other liabilities as of December 31, 2007. Prior periods have not been restated. |
NON-PERFORMING ASSETS: | ||||||||||||||||||||
Non-accrual loans | $ | 76,140 | $ | 33,113 | $ | 71,043 | ||||||||||||||
Accruing loans 90+ days overdue | 29,782 | 20,632 | 23,406 | |||||||||||||||||
Other real estate owned | 14,934 | 4,103 | 12,536 | |||||||||||||||||
Total non-performing assets | $ | 120,856 | $ | 57,848 | $ | 106,985 | ||||||||||||||
ASSET QUALITY RATIOS: | ||||||||||||||||||||
Non-accrual loans to total loans | 0.68 | % | 0.32 | % | 0.65 | % | ||||||||||||||
Non-performing assets to total loans and OREO | 1.08 | % | 0.56 | % | 0.97 | % | ||||||||||||||
Non-performing assets to total assets | 0.76 | % | 0.39 | % | 0.69 | % | ||||||||||||||
Allowance for credit losses to loans outstanding | 1.00 | % | 1.03 | % | 1.00 | % | ||||||||||||||
Allowance for credit losses to non-performing loans | 106 | % | 199 | % | 116 | % |
6