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
June 30 | ||||||||||||
2009 | 2008 | % Change | ||||||||||
BALANCE SHEET DATA | ||||||||||||
Total assets | $ | 16,875,852 | $ | 16,058,125 | 5.1 | % | ||||||
Loans, net of unearned income | 11,866,818 | 11,577,495 | 2.5 | % | ||||||||
Investment securities | 3,335,403 | 2,706,949 | 23.2 | % | ||||||||
Deposits | 11,716,297 | 9,938,194 | 17.9 | % | ||||||||
Shareholders’ equity | 1,872,928 | 1,593,478 | 17.5 | % |
Quarter Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||
2009 | 2008 | % Change | 2009 | 2008 | % Change | |||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||
Interest income | $ | 198,097 | $ | 215,392 | (8.0 | %) | $ | 393,664 | $ | 444,612 | (11.5 | %) | ||||||||||||
Interest expense | (70,153 | ) | (83,502 | ) | (16.0 | %) | (141,604 | ) | (186,823 | ) | (24.2 | %) | ||||||||||||
Net interest income | 127,944 | 131,890 | (3.0 | %) | 252,060 | 257,789 | (2.2 | %) | ||||||||||||||||
Provision for loan losses | (50,000 | ) | (16,706 | ) | 199.3 | % | (100,000 | ) | (27,926 | ) | 258.1 | % | ||||||||||||
Investment securities gains (losses) | 77 | (21,647 | ) | N/M | 2,996 | (20,401 | ) | N/M | ||||||||||||||||
Gain on sale of credit card portfolio | — | 13,910 | (100.0 | %) | — | 13,910 | (100.0 | %) | ||||||||||||||||
Other income | 45,300 | 39,887 | 13.6 | % | 89,295 | 76,321 | 17.0 | % | ||||||||||||||||
Other expenses | (107,806 | ) | (109,736 | ) | (1.8 | %) | (214,178 | ) | (206,396 | ) | 3.8 | % | ||||||||||||
Income before income taxes | 15,515 | 37,598 | (58.7 | %) | 30,173 | 93,297 | (67.7 | %) | ||||||||||||||||
Income tax expense | (2,404 | ) | (11,920 | ) | (79.8 | %) | (3,977 | ) | (26,123 | ) | (84.8 | %) | ||||||||||||
Net income | 13,111 | 25,678 | (48.9 | %) | $ | 26,196 | $ | 67,174 | (61.0 | %) | ||||||||||||||
Preferred stock dividends and discount accretion | (5,046 | ) | — | N/A | (10,077 | ) | — | N/A | ||||||||||||||||
Net income available to common shareholders | $ | 8,065 | $ | 25,678 | (68.6 | %) | $ | 16,119 | $ | 67,174 | (76.0 | %) | ||||||||||||
PER COMMON SHARE: | ||||||||||||||||||||||||
Net income: | ||||||||||||||||||||||||
Basic | $ | 0.05 | $ | 0.15 | (66.7 | %) | $ | 0.09 | $ | 0.39 | (76.9 | %) | ||||||||||||
Diluted | 0.05 | 0.15 | (66.7 | %) | 0.09 | 0.39 | (76.9 | %) | ||||||||||||||||
Cash dividends | 0.03 | 0.15 | (80.0 | %) | 0.06 | 0.30 | (80.0 | %) | ||||||||||||||||
Shareholders’ equity | 8.56 | 9.15 | (6.4 | %) | 8.56 | 9.15 | (6.4 | %) | ||||||||||||||||
Shareholders’ equity (tangible) | 5.40 | 5.41 | (0.2 | %) | 5.40 | 5.41 | (0.2 | %) | ||||||||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||||||||||
Return on average assets | 0.32 | % | 0.65 | % | 0.32 | % | 0.85 | % | ||||||||||||||||
Return on average common shareholders’ equity | 2.16 | % | 6.33 | % | 2.17 | % | 8.40 | % | ||||||||||||||||
Return on average common shareholders’ equity (tangible) | 3.83 | % | 11.03 | % | 3.85 | % | 14.65 | % | ||||||||||||||||
Net interest margin | 3.43 | % | 3.75 | % | 3.44 | % | 3.67 | % | ||||||||||||||||
Efficiency ratio | 60.08 | % | 56.93 | % | 60.51 | % | 56.97 | % | ||||||||||||||||
Tangible common equity to tangible assets | 5.81 | % | 6.12 | % | 5.81 | % | 6.12 | % | ||||||||||||||||
Non-performing assets to total assets | 1.73 | % | 1.02 | % | 1.73 | % | 1.02 | % |
N/A — Not applicable
N/M — Not meaningful
N/M — Not meaningful
1
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
% Change from | ||||||||||||||||||||
June 30 | June 30 | March 31 | June 30 | March 31 | ||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 299,818 | $ | 420,273 | $ | 265,431 | (28.7 | %) | 13.0 | % | ||||||||||
Loans held for sale | 242,439 | 116,351 | 102,033 | 108.4 | % | 137.6 | % | |||||||||||||
Other interest-earning assets | 25,890 | 10,234 | 14,329 | 153.0 | % | 80.7 | % | |||||||||||||
Investment securities | 3,335,403 | 2,706,949 | 3,123,687 | 23.2 | % | 6.8 | % | |||||||||||||
Loans, net of unearned income | 11,866,818 | 11,577,495 | 12,009,060 | 2.5 | % | (1.2 | %) | |||||||||||||
Allowance for loan losses | (214,170 | ) | (122,340 | ) | (192,410 | ) | 75.1 | % | 11.3 | % | ||||||||||
Net Loans | 11,652,648 | 11,455,155 | 11,816,650 | 1.7 | % | (1.4 | %) | |||||||||||||
Premises and equipment | 205,074 | 196,934 | 205,495 | 4.1 | % | (0.2 | %) | |||||||||||||
Accrued interest receivable | 58,077 | 61,366 | 59,369 | (5.4 | %) | (2.2 | %) | |||||||||||||
Goodwill and intangible assets | 555,272 | 651,324 | 556,496 | (14.7 | %) | (0.2 | %) | |||||||||||||
Other assets | 501,231 | 439,539 | 350,032 | 14.0 | % | 43.2 | % | |||||||||||||
Total Assets | $ | 16,875,852 | $ | 16,058,125 | $ | 16,493,522 | 5.1 | % | 2.3 | % | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Deposits | $ | 11,716,297 | $ | 9,938,194 | $ | 11,413,982 | 17.9 | % | 2.6 | % | ||||||||||
Short-term borrowings | 1,317,293 | 2,497,387 | 1,195,474 | (47.3 | %) | 10.2 | % | |||||||||||||
Federal Home Loan Bank advances and long-term debt | 1,750,967 | 1,819,428 | 1,786,598 | (3.8 | %) | (2.0 | %) | |||||||||||||
Other liabilities | 218,367 | 209,638 | 236,147 | 4.2 | % | (7.5 | %) | |||||||||||||
Total Liabilities | 15,002,924 | 14,464,647 | 14,632,201 | 3.7 | % | 2.5 | % | |||||||||||||
Preferred stock | 369,610 | — | 369,270 | N/A | 0.1 | % | ||||||||||||||
Common shareholders’ equity | 1,503,318 | 1,593,478 | 1,492,051 | (5.7 | %) | 0.8 | % | |||||||||||||
Total Shareholders’ Equity | 1,872,928 | 1,593,478 | 1,861,321 | 17.5 | % | 0.6 | % | |||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 16,875,852 | $ | 16,058,125 | $ | 16,493,522 | 5.1 | % | 2.3 | % | ||||||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||
Real estate — commercial mortgage | $ | 4,121,199 | $ | 3,771,209 | $ | 4,068,342 | 9.3 | % | 1.3 | % | ||||||||||
Commercial — industrial, financial and agricultural | 3,647,227 | 3,518,483 | 3,653,503 | 3.7 | % | (0.2 | %) | |||||||||||||
Real estate — home equity | 1,653,461 | 1,593,405 | 1,673,613 | 3.8 | % | (1.2 | %) | |||||||||||||
Real estate — construction | 1,062,606 | 1,321,980 | 1,205,256 | (19.6 | %) | (11.8 | %) | |||||||||||||
Real estate — residential mortgage | 925,637 | 924,789 | 947,837 | 0.1 | % | (2.3 | %) | |||||||||||||
Consumer | 371,492 | 362,925 | 378,851 | 2.4 | % | (1.9 | %) | |||||||||||||
Leasing and other | 85,196 | 84,704 | 81,658 | 0.6 | % | 4.3 | % | |||||||||||||
Total Loans, net of unearned income | $ | 11,866,818 | $ | 11,577,495 | $ | 12,009,060 | 2.5 | % | (1.2 | %) | ||||||||||
Deposits, by type: | ||||||||||||||||||||
Noninterest-bearing demand | $ | 1,942,845 | $ | 1,789,150 | $ | 1,776,169 | 8.6 | % | 9.4 | % | ||||||||||
Interest-bearing demand | 1,793,070 | 1,671,769 | 1,799,586 | 7.3 | % | (0.4 | %) | |||||||||||||
Savings deposits | 2,436,815 | 2,207,617 | 2,125,297 | 10.4 | % | 14.7 | % | |||||||||||||
Time deposits | 5,543,567 | 4,269,658 | 5,712,930 | 29.8 | % | (3.0 | %) | |||||||||||||
Total Deposits | $ | 11,716,297 | $ | 9,938,194 | $ | 11,413,982 | 17.9 | % | 2.6 | % | ||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||
Federal funds purchased | $ | 781,357 | $ | 1,531,568 | $ | 397,158 | (49.0 | %) | 96.7 | % | ||||||||||
Short-term promissory notes | 274,028 | 480,489 | 343,845 | (43.0 | %) | (20.3 | %) | |||||||||||||
Customer repurchase agreements | 261,444 | 219,716 | 249,256 | 19.0 | % | 4.9 | % | |||||||||||||
Federal Reserve Bank borrowings | — | — | 200,000 | — | (100.0 | %) | ||||||||||||||
Overnight borrowings and other | 464 | 265,614 | 5,215 | (99.8 | %) | (91.1 | %) | |||||||||||||
Total Short-term borrowings | $ | 1,317,293 | $ | 2,497,387 | $ | 1,195,474 | (47.3 | %) | 10.2 | % | ||||||||||
N/A — Not Applicable
2
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands, except per-share data
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands, except per-share data
Quarter Ended | % Change from | ||||||||||||||||||||||||||||||||
June 30 | June 30 | March 31 | June 30 | March 31 | Six Months Ended June 30 | ||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2009 | 2008 | % Change | ||||||||||||||||||||||||||
Interest Income: | |||||||||||||||||||||||||||||||||
Interest income | $ | 198,097 | $ | 215,392 | $ | 195,567 | (8.0 | %) | 1.3 | % | $ | 393,664 | $ | 444,612 | (11.5 | %) | |||||||||||||||||
Interest expense | 70,153 | 83,502 | 71,451 | (16.0 | %) | (1.8 | %) | 141,604 | 186,823 | (24.2 | %) | ||||||||||||||||||||||
Net Interest Income | 127,944 | 131,890 | 124,116 | (3.0 | %) | 3.1 | % | 252,060 | 257,789 | (2.2 | %) | ||||||||||||||||||||||
Provision for loan losses | 50,000 | 16,706 | 50,000 | 199.3 | % | — | 100,000 | 27,926 | 258.1 | % | |||||||||||||||||||||||
Net Interest Income after Provision | 77,944 | 115,184 | 74,116 | (32.3 | %) | 5.2 | % | 152,060 | 229,863 | (33.8 | %) | ||||||||||||||||||||||
Other Income: | |||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 15,061 | 15,319 | 14,894 | (1.7 | %) | 1.1 | % | 29,955 | 29,286 | 2.3 | % | ||||||||||||||||||||||
Gain on sale of credit card portfolio | — | 13,910 | — | (100.0 | %) | — | — | 13,910 | (100.0 | %) | |||||||||||||||||||||||
Other service charges and fees | 9,595 | 9,131 | 8,354 | 5.1 | % | 14.9 | % | 17,949 | 17,722 | 1.3 | % | ||||||||||||||||||||||
Investment management and trust services | 7,876 | 8,389 | 7,903 | (6.1 | %) | (0.3 | %) | 15,779 | 17,148 | (8.0 | %) | ||||||||||||||||||||||
Gains on sale of mortgage loans | 7,395 | 2,670 | 8,591 | 176.9 | % | (13.9 | %) | 15,986 | 4,981 | 220.9 | % | ||||||||||||||||||||||
Investment securities gains (losses) | 77 | (21,647 | ) | 2,919 | N/M | (97.4 | %) | 2,996 | (20,401 | ) | N/M | ||||||||||||||||||||||
Other | 5,373 | 4,378 | 4,253 | 22.7 | % | 26.3 | % | 9,626 | 7,184 | 34.0 | % | ||||||||||||||||||||||
Total Other Income | 45,377 | 32,150 | 46,914 | 41.1 | % | (3.3 | %) | 92,291 | 69,830 | 32.2 | % | ||||||||||||||||||||||
Other Expenses: | |||||||||||||||||||||||||||||||||
Salaries and employee benefits | 55,799 | 54,281 | 55,304 | 2.8 | % | 0.9 | % | 111,103 | 109,476 | 1.5 | % | ||||||||||||||||||||||
FDIC insurance expense | 12,206 | 675 | 4,288 | 1,708.3 | % | 184.7 | % | 16,494 | 1,537 | 973.1 | % | ||||||||||||||||||||||
Net occupancy expense | 10,240 | 10,238 | 11,023 | — | (7.1 | %) | 21,263 | 20,762 | 2.4 | % | |||||||||||||||||||||||
Equipment expense | 3,300 | 3,398 | 3,079 | (2.9 | %) | 7.2 | % | 6,379 | 6,846 | (6.8 | %) | ||||||||||||||||||||||
Data processing | 2,907 | 3,116 | 3,072 | (6.7 | %) | (5.4 | %) | 5,979 | 6,362 | (6.0 | %) | ||||||||||||||||||||||
Marketing | 1,724 | 3,519 | 2,571 | (51.0 | %) | (32.9 | %) | 4,295 | 6,424 | (33.1 | %) | ||||||||||||||||||||||
Intangible amortization | 1,434 | 1,799 | 1,463 | (20.3 | %) | (2.0 | %) | 2,897 | 3,656 | (20.8 | %) | ||||||||||||||||||||||
Operating risk loss | 144 | 14,385 | 6,201 | (98.9 | %) | (97.6 | %) | 6,345 | 15,628 | (59.4 | %) | ||||||||||||||||||||||
Other | 20,052 | 18,325 | 19,371 | 9.4 | % | 3.5 | % | 39,423 | 35,705 | 10.4 | % | ||||||||||||||||||||||
Total Other Expenses | 107,806 | 109,736 | 106,372 | (1.8 | %) | 1.3 | % | 214,178 | 206,396 | 3.8 | % | ||||||||||||||||||||||
Income Before Income Taxes | 15,515 | 37,598 | 14,658 | (58.7 | %) | 5.8 | % | 30,173 | 93,297 | (67.7 | %) | ||||||||||||||||||||||
Income tax expense | 2,404 | 11,920 | 1,573 | (79.8 | %) | 52.8 | % | 3,977 | 26,123 | (84.8 | %) | ||||||||||||||||||||||
Net Income | 13,111 | 25,678 | 13,085 | (48.9 | %) | 0.2 | % | 26,196 | 67,174 | (61.0 | %) | ||||||||||||||||||||||
Preferred stock dividends and discount accretion | (5,046 | ) | — | (5,031 | ) | N/A | (0.3 | %) | (10,077 | ) | — | N/A | |||||||||||||||||||||
Net Income Available to Common Shareholders | $ | 8,065 | $ | 25,678 | $ | 8,054 | (68.6 | %) | 0.1 | % | $ | 16,119 | $ | 67,174 | (76.0 | %) | |||||||||||||||||
PER COMMON SHARE: | |||||||||||||||||||||||||||||||||
Net income: | |||||||||||||||||||||||||||||||||
Basic | $ | 0.05 | $ | 0.15 | $ | 0.05 | (66.7 | %) | — | $ | 0.09 | $ | 0.39 | (76.9 | %) | ||||||||||||||||||
Diluted | 0.05 | 0.15 | 0.05 | (66.7 | %) | — | 0.09 | 0.39 | (76.9 | %) | |||||||||||||||||||||||
Cash dividends | $ | 0.03 | $ | 0.15 | $ | 0.03 | (80.0 | %) | — | $ | 0.06 | $ | 0.30 | (80.0 | %) | ||||||||||||||||||
Shareholders’ equity | 8.56 | 9.15 | 8.50 | (6.4 | %) | 0.7 | % | 8.56 | 9.15 | (6.4 | %) | ||||||||||||||||||||||
Shareholders’ equity (tangible) | 5.40 | 5.41 | 5.33 | (0.2 | %) | 1.3 | % | 5.40 | 5.41 | (0.2 | %) | ||||||||||||||||||||||
Weighted average shares (basic) | 175,554 | 173,959 | 175,315 | 0.9 | % | 0.1 | % | 175,435 | 173,791 | 0.9 | % | ||||||||||||||||||||||
Weighted average shares (diluted) | 175,724 | 174,528 | 175,548 | 0.7 | % | 0.1 | % | 175,637 | 174,360 | 0.7 | % | ||||||||||||||||||||||
Shares outstanding, end of period | 175,706 | 174,107 | 175,507 | 0.9 | % | 0.1 | % | 175,706 | 174,107 | 0.9 | % | ||||||||||||||||||||||
SELECTED FINANCIAL RATIOS: | |||||||||||||||||||||||||||||||||
Return on average assets | 0.32 | % | 0.65 | % | 0.33 | % | 0.32 | % | 0.85 | % | |||||||||||||||||||||||
Return on average common shareholders’ equity | 2.16 | % | 6.33 | % | 2.18 | % | 2.17 | % | 8.40 | % | |||||||||||||||||||||||
Return on average common shareholders’ equity (tangible) | 3.83 | % | 11.03 | % | 3.88 | % | 3.85 | % | 14.65 | % | |||||||||||||||||||||||
Net interest margin | 3.43 | % | 3.75 | % | 3.45 | % | 3.44 | % | 3.67 | % | |||||||||||||||||||||||
Efficiency ratio | 60.08 | % | 56.93 | % | 60.95 | % | 60.51 | % | 56.97 | % |
N/A — Not applicable
N/M — Not meaningful
N/M — Not meaningful
3
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Quarter Ended | ||||||||||||||||||||||||||||||||||||
June 30, 2009 | June 30, 2008 | March 31, 2009 | ||||||||||||||||||||||||||||||||||
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 | $ | 11,960,669 | $ | 163,744 | 5.49 | % | $ | 11,423,409 | $ | 180,433 | 6.35 | % | $ | 12,041,286 | $ | 163,753 | 5.51 | % | ||||||||||||||||||
Taxable investment securities | 2,673,136 | 29,423 | 4.40 | % | 2,304,391 | 28,528 | 4.90 | % | 2,212,639 | 26,849 | 4.86 | % | ||||||||||||||||||||||||
Tax-exempt investment securities | 462,991 | 6,425 | 5.55 | % | 509,784 | 6,911 | 5.42 | % | 503,265 | 6,887 | 5.47 | % | ||||||||||||||||||||||||
Equity securities | 134,702 | 660 | 1.96 | % | 196,981 | 1,729 | 3.52 | % | 137,308 | 774 | 2.28 | % | ||||||||||||||||||||||||
Total Investment Securities | 3,270,829 | 36,508 | 4.47 | % | 3,011,156 | 37,168 | 4.90 | % | 2,853,212 | 34,510 | 4.84 | % | ||||||||||||||||||||||||
Loans held for sale | 139,354 | 1,628 | 4.67 | % | 108,478 | 1,610 | 5.94 | % | 104,467 | 1,261 | 4.83 | % | ||||||||||||||||||||||||
Other interest-earning assets | 20,897 | 39 | 0.76 | % | 16,325 | 102 | 2.50 | % | 16,934 | 50 | 1.19 | % | ||||||||||||||||||||||||
Total Interest-earning Assets | 15,391,749 | 201,919 | 5.26 | % | 14,559,368 | 219,313 | 6.05 | % | 15,015,899 | 199,574 | 5.38 | % | ||||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 283,399 | 323,223 | 317,928 | |||||||||||||||||||||||||||||||||
Premises and equipment | 204,451 | 196,990 | 202,875 | |||||||||||||||||||||||||||||||||
Other assets | 938,156 | 984,000 | 924,755 | |||||||||||||||||||||||||||||||||
Less: allowance for loan losses | (211,166 | ) | (115,936 | ) | (187,183 | ) | ||||||||||||||||||||||||||||||
Total Assets | $ | 16,606,589 | $ | 15,947,645 | $ | 16,274,274 | ||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Demand deposits | $ | 1,818,897 | $ | 2,001 | 0.44 | % | $ | 1,708,050 | $ | 2,967 | 0.70 | % | $ | 1,754,003 | $ | 1,776 | 0.41 | % | ||||||||||||||||||
Savings deposits | 2,307,089 | 4,401 | 0.76 | % | 2,207,699 | 6,600 | 1.20 | % | 2,058,021 | 4,353 | 0.86 | % | ||||||||||||||||||||||||
Time deposits | 5,625,841 | 41,604 | 2.97 | % | 4,361,280 | 41,562 | 3.83 | % | 5,432,676 | 43,767 | 3.27 | % | ||||||||||||||||||||||||
Total Interest-bearing Deposits | 9,751,827 | 48,006 | 1.97 | % | 8,277,029 | 51,129 | 2.48 | % | 9,244,700 | 49,896 | 2.19 | % | ||||||||||||||||||||||||
Short-term borrowings | 1,186,541 | 922 | 0.31 | % | 2,314,845 | 12,388 | 2.13 | % | 1,517,064 | 1,436 | 0.38 | % | ||||||||||||||||||||||||
Federal Home Loan Bank advances and long-term debt | 1,780,120 | 21,225 | 4.78 | % | 1,871,649 | 19,985 | 4.29 | % | 1,787,493 | 20,119 | 4.55 | % | ||||||||||||||||||||||||
Total Interest-bearing Liabilities | 12,718,488 | 70,153 | 2.21 | % | 12,463,523 | 83,502 | 2.69 | % | 12,549,257 | 71,451 | 2.31 | % | ||||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Demand deposits | 1,812,539 | 1,662,266 | 1,657,658 | |||||||||||||||||||||||||||||||||
Other | 206,901 | 190,963 | 201,449 | |||||||||||||||||||||||||||||||||
Total Liabilities | 14,737,928 | 14,316,752 | 14,408,364 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 1,868,661 | 1,630,893 | 1,865,910 | |||||||||||||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 16,606,589 | $ | 15,947,645 | $ | 16,274,274 | ||||||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 131,766 | 3.43 | % | 135,811 | 3.75 | % | 128,123 | 3.45 | % | |||||||||||||||||||||||||||
Tax equivalent adjustment | (3,822 | ) | (3,921 | ) | (4,007 | ) | ||||||||||||||||||||||||||||||
Net interest income | $ | 127,944 | $ | 131,890 | $ | 124,116 | ||||||||||||||||||||||||||||||
(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 | |||||||||||||||||||
June 30 | June 30 | March 31 | June 30 | March 31 | ||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | ||||||||||||||||
Loans, by type: | ||||||||||||||||||||
Real estate — commercial mortgage | $ | 4,090,985 | $ | 3,680,592 | $ | 4,048,269 | 11.2 | % | 1.1 | % | ||||||||||
Commercial — industrial, financial and agricultural | 3,692,841 | 3,510,150 | 3,682,678 | 5.2 | % | 0.3 | % | |||||||||||||
Real estate — home equity | 1,668,562 | 1,568,012 | 1,698,599 | 6.4 | % | (1.8 | %) | |||||||||||||
Real estate — construction | 1,115,785 | 1,312,378 | 1,203,328 | (15.0 | %) | (7.3 | %) | |||||||||||||
Real estate — residential mortgage | 936,352 | 890,396 | 957,939 | 5.2 | % | (2.3 | %) | |||||||||||||
Consumer | 371,617 | 376,698 | 360,919 | (1.3 | %) | 3.0 | % | |||||||||||||
Leasing and other | 84,527 | 85,183 | 89,554 | (0.8 | %) | (5.6 | %) | |||||||||||||
Total Loans, net of unearned income | $ | 11,960,669 | $ | 11,423,409 | $ | 12,041,286 | 4.7 | % | (0.7 | %) | ||||||||||
Deposits, by type: | ||||||||||||||||||||
Noninterest-bearing demand | $ | 1,812,539 | $ | 1,662,266 | $ | 1,657,658 | 9.0 | % | 9.3 | % | ||||||||||
Interest-bearing demand | 1,818,897 | 1,708,050 | 1,754,003 | 6.5 | % | 3.7 | % | |||||||||||||
Savings deposits | 2,307,089 | 2,207,699 | 2,058,021 | 4.5 | % | 12.1 | % | |||||||||||||
Time deposits | 5,625,841 | 4,361,280 | 5,432,676 | 29.0 | % | 3.6 | % | |||||||||||||
Total Deposits | $ | 11,564,366 | $ | 9,939,295 | $ | 10,902,358 | 16.3 | % | 6.1 | % | ||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||
Federal funds purchased | $ | 580,020 | $ | 1,303,590 | $ | 792,001 | (55.5 | %) | (26.8 | %) | ||||||||||
Short-term promissory notes | 297,743 | 468,802 | 337,069 | (36.5 | %) | (11.7 | %) | |||||||||||||
Customer repurchase agreements | 256,306 | 223,092 | 246,429 | 14.9 | % | 4.0 | % | |||||||||||||
Federal Reserve Bank borrowings | 48,352 | — | 138,222 | N/A | (65.0 | %) | ||||||||||||||
Overnight borrowings and other | 4,120 | 319,361 | 3,343 | (98.7 | %) | 23.2 | % | |||||||||||||
Total Short-term borrowings | $ | 1,186,541 | $ | 2,314,845 | $ | 1,517,064 | (48.7 | %) | (21.8 | %) | ||||||||||
N/A — Not Applicable
4
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Six Months Ended June 30 | ||||||||||||||||||||||||
2009 | 2008 | |||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
Balance | Interest (1) | Yield/Rate | Balance | Interest (1) | Yield/Rate | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans, net of unearned income | $ | 12,000,755 | $ | 327,497 | 5.50 | % | $ | 11,359,470 | $ | 372,875 | 6.60 | % | ||||||||||||
Taxable investment securities | 2,444,159 | 56,272 | 4.61 | % | 2,355,791 | 58,089 | 4.91 | % | ||||||||||||||||
Tax-exempt investment securities | 483,016 | 13,312 | 5.51 | % | 512,820 | 13,887 | 5.42 | % | ||||||||||||||||
Equity securities | 135,998 | 1,434 | 2.12 | % | 204,993 | 4,109 | 4.02 | % | ||||||||||||||||
Total Investment Securities | 3,063,173 | 71,018 | 4.64 | % | 3,073,604 | 76,085 | 4.93 | % | ||||||||||||||||
Loans held for sale | 122,007 | 2,889 | 4.74 | % | 103,577 | 3,187 | 6.16 | % | ||||||||||||||||
Other interest-earning assets | 18,927 | 89 | 0.95 | % | 21,555 | 320 | 2.96 | % | ||||||||||||||||
Total Interest-earning Assets | 15,204,862 | 401,493 | 5.32 | % | 14,558,206 | 452,467 | 6.24 | % | ||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 300,568 | 316,971 | ||||||||||||||||||||||
Premises and equipment | 203,667 | 196,512 | ||||||||||||||||||||||
Other assets | 931,494 | 955,629 | ||||||||||||||||||||||
Less: allowance for loan losses | (199,241 | ) | (112,925 | ) | ||||||||||||||||||||
Total Assets | $ | 16,441,350 | $ | 15,914,393 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | $ | 1,786,629 | $ | 3,777 | 0.43 | % | $ | 1,696,835 | $ | 7,372 | 0.87 | % | ||||||||||||
Savings deposits | 2,183,243 | 8,754 | 0.81 | % | 2,172,702 | 15,763 | 1.46 | % | ||||||||||||||||
Time deposits | 5,529,794 | 85,371 | 3.11 | % | 4,440,641 | 91,480 | 4.14 | % | ||||||||||||||||
Total Interest-bearing Deposits | 9,499,666 | 97,902 | 2.08 | % | 8,310,178 | 114,615 | 2.77 | % | ||||||||||||||||
Short-term borrowings | 1,350,889 | 2,358 | 0.35 | % | 2,331,153 | 31,216 | 2.66 | % | ||||||||||||||||
Federal Home Loan Bank advances and long-term debt | 1,783,787 | 41,344 | 4.67 | % | 1,835,079 | 40,992 | 4.49 | % | ||||||||||||||||
Total Interest-bearing Liabilities | 12,634,342 | 141,604 | 2.26 | % | 12,476,410 | 186,823 | 3.00 | % | ||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 1,735,525 | 1,639,275 | ||||||||||||||||||||||
Other | 204,190 | 190,730 | ||||||||||||||||||||||
Total Liabilities | 14,574,057 | 14,306,415 | ||||||||||||||||||||||
Shareholders’ equity | 1,867,293 | 1,607,978 | ||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 16,441,350 | $ | 15,914,393 | ||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 259,889 | 3.44 | % | 265,644 | 3.67 | % | ||||||||||||||||||
Tax equivalent adjustment | (7,829 | ) | (7,855 | ) | ||||||||||||||||||||
Net interest income | $ | 252,060 | $ | 257,789 | ||||||||||||||||||||
(1) | Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances. |
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Six Months Ended | ||||||||||||
June 30 | ||||||||||||
2009 | 2008 | % Change | ||||||||||
Loans, by type: | ||||||||||||
Real estate — commercial mortgage | $ | 4,069,745 | $ | 3,604,879 | 12.9 | % | ||||||
Commercial — industrial, financial and agricultural | 3,687,788 | 3,491,296 | 5.6 | % | ||||||||
Real estate — home equity | 1,683,497 | 1,547,242 | 8.8 | % | ||||||||
Real estate — construction | 1,159,314 | 1,331,150 | (12.9 | %) | ||||||||
Real estate — residential mortgage | 947,086 | 874,292 | 8.3 | % | ||||||||
Consumer | 366,297 | 424,973 | (13.8 | %) | ||||||||
Leasing and other | 87,028 | 85,638 | 1.6 | % | ||||||||
Total Loans, net of unearned income | $ | 12,000,755 | $ | 11,359,470 | 5.6 | % | ||||||
Deposits, by type: | ||||||||||||
Noninterest-bearing demand | $ | 1,735,525 | $ | 1,639,275 | 5.9 | % | ||||||
Interest-bearing demand | 1,786,629 | 1,696,835 | 5.3 | % | ||||||||
Savings deposits | 2,183,243 | 2,172,702 | 0.5 | % | ||||||||
Time deposits | 5,529,794 | 4,440,641 | 24.5 | % | ||||||||
Total Deposits | $ | 11,235,191 | $ | 9,949,453 | 12.9 | % | ||||||
Short-term borrowings, by type: | ||||||||||||
Federal funds purchased | $ | 685,425 | $ | 1,243,980 | (44.9 | %) | ||||||
Short-term promissory notes | 317,297 | 470,136 | (32.5 | %) | ||||||||
Customer repurchase agreements | 251,395 | 225,006 | 11.7 | % | ||||||||
Federal Reserve Bank borrowings | 93,039 | — | N/A | |||||||||
Other short-term borrowings | 3,733 | 392,031 | (99.0 | %) | ||||||||
Total Short-term borrowings | $ | 1,350,889 | $ | 2,331,153 | (42.1 | %) | ||||||
5
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
Quarter Ended | Six Months Ended | |||||||||||||||||||
June 30 | June 30 | March 31 | June 30 | |||||||||||||||||
2009 | 2008 | 2009 | 2009 | 2008 | ||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||
Balance at beginning of period | $ | 200,063 | $ | 119,069 | $ | 180,137 | $ | 180,137 | $ | 112,209 | ||||||||||
Loans charged off: | ||||||||||||||||||||
Real estate — construction | (11,294 | ) | — | (12,242 | ) | (23,536 | ) | — | ||||||||||||
Commercial — industrial, agricultural and financial | (6,274 | ) | (4,752 | ) | (10,622 | ) | (16,896 | ) | (7,516 | ) | ||||||||||
Real estate — commercial mortgage | (5,961 | ) | (386 | ) | (3,960 | ) | (9,921 | ) | (704 | ) | ||||||||||
Real estate — residential mortgage and home equity | (1,830 | ) | (1,719 | ) | (1,937 | ) | (3,767 | ) | (2,250 | ) | ||||||||||
Consumer | (3,064 | ) | (1,366 | ) | (2,076 | ) | (5,140 | ) | (2,747 | ) | ||||||||||
Leasing and other | (2,099 | ) | (1,973 | ) | (946 | ) | (3,045 | ) | (2,605 | ) | ||||||||||
Total loans charged off | (30,522 | ) | (10,196 | ) | (31,783 | ) | (62,305 | ) | (15,822 | ) | ||||||||||
Recoveries of loans charged off: | ||||||||||||||||||||
Real estate — construction | 214 | — | 112 | 326 | — | |||||||||||||||
Commercial — industrial, agricultural and financial | 306 | — | 904 | 1,210 | 276 | |||||||||||||||
Real estate — commercial mortgage | 25 | 65 | 10 | 35 | 142 | |||||||||||||||
Real estate — residential mortgage and home equity | 147 | 2 | 1 | 148 | 5 | |||||||||||||||
Consumer | 511 | 300 | 429 | 940 | 718 | |||||||||||||||
Leasing and other | 210 | 277 | 253 | 463 | 769 | |||||||||||||||
Recoveries of loans previously charged off | 1,413 | 644 | 1,709 | 3,122 | 1,910 | |||||||||||||||
Net loans charged off | (29,109 | ) | (9,552 | ) | (30,074 | ) | (59,183 | ) | (13,912 | ) | ||||||||||
Provision for loan losses | 50,000 | 16,706 | 50,000 | 100,000 | 27,926 | |||||||||||||||
Balance at end of period | $ | 220,954 | $ | 126,223 | $ | 200,063 | $ | 220,954 | $ | 126,223 | ||||||||||
Net charge-offs to average loans (annualized) | 0.97 | % | 0.33 | % | 1.00 | % | 0.99 | % | 0.24 | % | ||||||||||
COMPONENTS OF ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||
Allowance for loan losses | $ | 214,170 | $ | 122,340 | $ | 192,410 | ||||||||||||||
Reserve for unfunded lending commitments | 6,784 | 3,883 | 7,653 | |||||||||||||||||
Allowance for credit losses | $ | 220,954 | $ | 126,223 | $ | 200,063 | ||||||||||||||
NON-PERFORMING ASSETS: | ||||||||||||||||||||
Non-accrual loans | $ | 228,132 | $ | 108,699 | $ | 198,765 | ||||||||||||||
Loans 90 days past due and accruing | 39,135 | 35,656 | 47,284 | |||||||||||||||||
Total non-performing loans | 267,267 | 144,355 | 246,049 | |||||||||||||||||
Other real estate owned | 24,916 | 20,156 | 23,189 | |||||||||||||||||
Total non-performing assets | $ | 292,183 | $ | 164,511 | $ | 269,238 | ||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||
Real estate — construction | $ | 102,977 | $ | 37,003 | $ | 93,425 | ||||||||||||||
Commercial — industrial, agricultural and financial | 58,433 | 40,127 | 50,493 | |||||||||||||||||
Real estate — commercial mortgage | 57,786 | 39,099 | 59,899 | |||||||||||||||||
Real estate — residential mortgage and home equity | 37,231 | 21,988 | 31,365 | |||||||||||||||||
Consumer | 9,764 | 5,748 | 10,316 | |||||||||||||||||
Leasing | 1,076 | 390 | 551 | |||||||||||||||||
Total non-performing loans | $ | 267,267 | $ | 144,355 | $ | 246,049 | ||||||||||||||
ASSET QUALITY RATIOS: | ||||||||||||||||||||
Non-accrual loans to total loans | 1.92 | % | 0.94 | % | 1.66 | % | ||||||||||||||
Non-performing assets to total loans and OREO | 2.46 | % | 1.42 | % | 2.24 | % | ||||||||||||||
Non-performing assets to total assets | 1.73 | % | 1.02 | % | 1.63 | % | ||||||||||||||
Allowance for credit losses to loans outstanding | 1.86 | % | 1.09 | % | 1.67 | % | ||||||||||||||
Allowance for loan losses to loans outstanding | 1.80 | % | 1.06 | % | 1.60 | % | ||||||||||||||
Allowance for credit losses to non-performing loans | 82.67 | % | 87.44 | % | 81.31 | % | ||||||||||||||
Non-performing assets to tangible common shareholders’ equity and allowance for credit losses | 24.99 | % | 15.40 | % | 23.71 | % |
6