Exhibit 99.2
FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
Quarter Ended December 31 | Variance | ||||||||||||
2004 | 2003 | $ | % | ||||||||||
(in thousands, except per-share data) | |||||||||||||
INCOME SUMMARY: | |||||||||||||
Interest income | $ | 130,736 | $ | 112,274 | $ | 18,462 | 16.4 | % | |||||
Interest expense | 37,261 | 31,624 | 5,637 | 17.8 | % | ||||||||
Net Interest Income | 93,475 | 80,650 | 12,825 | 15.9 | % | ||||||||
Provision for loan losses | 1,052 | 2,190 | (1,138 | ) | -52.0 | % | |||||||
Investment securities gains | 3,199 | 5,825 | (2,626 | ) | -45.1 | % | |||||||
Other income | 32,243 | 27,450 | 4,793 | 17.5 | % | ||||||||
Other expenses | 70,743 | 60,679 | 10,064 | 16.6 | % | ||||||||
Income Before Income Taxes | 57,122 | 51,056 | 6,066 | 11.9 | % | ||||||||
Income taxes | 17,035 | 15,363 | 1,672 | 10.9 | % | ||||||||
Net Income | $ | 40,087 | $ | 35,693 | $ | 4,394 | 12.3 | % | |||||
Fully taxable equivalent (FTE) net interest income | $ | 95,599 | $ | 83,056 | $ | 12,543 | 15.1 | % | |||||
PER-SHARE DATA: | |||||||||||||
Net income: | |||||||||||||
Basic | $ | 0.33 | $ | 0.31 | $ | 0.02 | 6.5 | % | |||||
Diluted | 0.33 | 0.31 | 0.02 | 6.5 | % | ||||||||
Cash dividends | 0.165 | 0.152 | 0.013 | 8.6 | % | ||||||||
ENDING BALANCES: | |||||||||||||
Total assets | $ | 11,126,164 | $ | 9,767,288 | $ | 1,358,876 | 13.9 | % | |||||
Loans, net of unearned income | 7,583,982 | 6,159,994 | 1,423,988 | 23.1 | % | ||||||||
Deposits | 7,895,488 | 6,751,783 | 1,143,705 | 16.9 | % | ||||||||
Short-term borrowings | 1,162,524 | 1,396,711 | (234,187 | ) | -16.8 | % | |||||||
Long-term debt | 684,253 | 568,730 | 115,523 | 20.3 | % | ||||||||
Shareholders’ equity | 1,242,290 | 946,936 | 295,354 | 31.2 | % | ||||||||
AVERAGE BALANCES: | |||||||||||||
Total assets | $ | 10,542,258 | $ | 9,472,010 | $ | 1,070,248 | 11.3 | % | |||||
Loans, net of unearned income | 7,304,717 | 5,935,683 | 1,369,034 | 23.1 | % | ||||||||
Deposits | 7,508,299 | 6,814,421 | 693,878 | 10.2 | % | ||||||||
Short-term borrowings | 1,117,620 | 1,046,485 | 71,135 | 6.8 | % | ||||||||
Long-term debt | 668,239 | 588,125 | 80,114 | 13.6 | % | ||||||||
Shareholders’ equity | 1,119,427 | 924,348 | 195,079 | 21.1 | % |
FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
Year Ended December 31 | Variance | ||||||||||||
2004 | 2003 | $ | % | ||||||||||
(in thousands, except per-share data) | |||||||||||||
INCOME SUMMARY: | |||||||||||||
Interest income | $ | 493,643 | $ | 435,531 | $ | 58,112 | 13.3 | % | |||||
Interest expense | 135,994 | 131,094 | 4,900 | 3.7 | % | ||||||||
Net Interest Income | 357,649 | 304,437 | 53,212 | 17.5 | % | ||||||||
Provision for loan losses | 4,717 | 9,705 | (4,988 | ) | -51.4 | % | |||||||
Investment securities gains | 17,712 | 19,853 | (2,141 | ) | -10.8 | % | |||||||
Other income | 122,343 | 117,134 | 5,209 | 4.4 | % | ||||||||
Other expenses | 274,806 | 234,176 | 40,630 | 17.4 | % | ||||||||
Income Before Income Taxes | 218,181 | 197,543 | 20,638 | 10.4 | % | ||||||||
Income taxes | 65,264 | 59,363 | 5,901 | 9.9 | % | ||||||||
Net Income | $ | 152,917 | $ | 138,180 | $ | 14,737 | 10.7 | % | |||||
Fully taxable equivalent (FTE) net interest income | $ | 366,825 | $ | 314,135 | $ | 52,690 | 16.8 | % | |||||
PER-SHARE DATA: | |||||||||||||
Net income: | |||||||||||||
Basic | $ | 1.28 | $ | 1.23 | $ | 0.05 | 4.1 | % | |||||
Diluted | 1.27 | 1.22 | 0.05 | 4.1 | % | ||||||||
Cash dividends | 0.647 | 0.593 | 0.054 | 9.1 | % | ||||||||
AVERAGE BALANCES: | |||||||||||||
Total assets | $ | 10,343,328 | $ | 8,802,138 | $ | 1,541,190 | 17.5 | % | |||||
Loans, net of unearned income | 6,901,452 | 5,589,663 | 1,311,789 | 23.5 | % | ||||||||
Deposits | 7,285,134 | 6,505,371 | 779,763 | 12.0 | % | ||||||||
Short-term borrowings | 1,238,073 | 738,527 | 499,546 | 67.6 | % | ||||||||
Long-term debt | 637,654 | 566,437 | 71,217 | 12.6 | % | ||||||||
Shareholders’ equity | 1,068,464 | 894,469 | 173,995 | 19.5 | % |
FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
Quarter Ended | Variance | ||||||||||||
December 31 2004 | September 30 2004 | $ | % | ||||||||||
(in thousands, except per-share data) | |||||||||||||
INCOME SUMMARY: | |||||||||||||
Interest income | $ | 130,736 | $ | 126,947 | $ | 3,789 | 3.0 | % | |||||
Interest expense | 37,261 | 34,446 | 2,815 | 8.2 | % | ||||||||
Net Interest Income | 93,475 | 92,501 | 974 | 1.1 | % | ||||||||
Provision for loan losses | 1,052 | 1,125 | (73 | ) | -6.5 | % | |||||||
Investment securities gains | 3,199 | 3,336 | (137 | ) | -4.1 | % | |||||||
Other income | 32,243 | 32,011 | 232 | 0.7 | % | ||||||||
Other expenses | 70,743 | 70,688 | 55 | 0.1 | % | ||||||||
Income Before Income Taxes | 57,122 | 56,035 | 1,087 | 1.9 | % | ||||||||
Income taxes | 17,035 | 16,915 | 120 | 0.7 | % | ||||||||
Net Income | $ | 40,087 | $ | 39,120 | $ | 967 | 2.5 | % | |||||
Fully taxable equivalent (FTE) net interest income | $ | 95,599 | $ | 94,876 | $ | 723 | 0.8 | % | |||||
PER-SHARE DATA: | |||||||||||||
Net income: | |||||||||||||
Basic | $ | 0.33 | $ | 0.32 | $ | 0.01 | 3.1 | % | |||||
Diluted | 0.33 | 0.32 | 0.01 | 3.1 | % | ||||||||
Cash dividends | 0.165 | 0.165 | — | 0.0 | % | ||||||||
ENDING BALANCES: | |||||||||||||
Total assets | $ | 11,126,164 | $ | 10,568,816 | $ | 557,348 | 5.3 | % | |||||
Loans, net of unearned income | 7,583,982 | 7,213,162 | 370,820 | 5.1 | % | ||||||||
Deposits | 7,895,488 | 7,460,070 | 435,418 | 5.8 | % | ||||||||
Short-term borrowings | 1,162,524 | 1,188,464 | (25,940 | ) | -2.2 | % | |||||||
Long-term debt | 684,253 | 666,781 | 17,472 | 2.6 | % | ||||||||
Shareholders’ equity | 1,242,290 | 1,128,023 | 114,267 | 10.1 | % | ||||||||
AVERAGE BALANCES: | |||||||||||||
Total assets | $ | 10,542,258 | $ | 10,546,594 | $ | (4,336 | ) | 0.0 | % | ||||
Loans, net of unearned income | 7,304,717 | 7,159,211 | 145,506 | 2.0 | % | ||||||||
Deposits | 7,508,299 | 7,461,511 | 46,788 | 0.6 | % | ||||||||
Short-term borrowings | 1,117,620 | 1,208,379 | (90,759 | ) | -7.5 | % | |||||||
Long-term debt | 668,239 | 654,969 | 13,270 | 2.0 | % | ||||||||
Shareholders’ equity | 1,119,427 | 1,102,184 | 17,243 | 1.6 | % |
FULTON FINANCIAL CORPORATION
CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)
December 31 | Variance | ||||||||||||
2004 | 2003 | $ | % | ||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 278,065 | $ | 300,966 | $ | (22,901 | ) | -7.6 | % | ||||
Interest-bearing deposits | 163,560 | 37,320 | 126,240 | 338.3 | % | ||||||||
Investment securities | 2,451,267 | 2,927,150 | (475,883 | ) | -16.3 | % | |||||||
Loans, net of allowance | 7,494,355 | 6,082,294 | 1,412,061 | 23.2 | % | ||||||||
Premises and equipment | 143,944 | 120,777 | 23,167 | 19.2 | % | ||||||||
Goodwill and intangible assets | 390,254 | 144,796 | 245,458 | 169.5 | % | ||||||||
Other assets | 204,719 | 153,985 | 50,734 | 32.9 | % | ||||||||
Total Assets | $ | 11,126,164 | $ | 9,767,288 | $ | 1,358,876 | 13.9 | % | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
Deposits | $ | 7,895,488 | $ | 6,751,783 | $ | 1,143,705 | 16.9 | % | |||||
Short-term borrowings | 1,162,524 | 1,396,711 | (234,187 | ) | -16.8 | % | |||||||
Long-term debt | 684,253 | 568,730 | 115,523 | 20.3 | % | ||||||||
Other liabilities | 141,609 | 103,128 | 38,481 | 37.3 | % | ||||||||
Total Liabilities | 9,883,874 | 8,820,352 | 1,063,522 | 12.1 | % | ||||||||
Shareholders’ equity | 1,242,290 | 946,936 | 295,354 | 31.2 | % | ||||||||
Total Liabilities and Shareholders’ Equity | $ | 11,126,164 | $ | 9,767,288 | 1,358,876 | 13.9 | % | ||||||
LOANS AND DEPOSITS DETAIL: | |||||||||||||
Loans, by type: | |||||||||||||
Commercial, industrial and financial | $ | 1,946,906 | $ | 1,594,451 | $ | 352,455 | 22.1 | % | |||||
Commercial - agricultural | 326,176 | 354,517 | (28,341 | ) | -8.0 | % | |||||||
Real estate - construction | 626,784 | 307,109 | 319,675 | 104.1 | % | ||||||||
Real estate - residential mortgage | 543,017 | 434,567 | 108,450 | 25.0 | % | ||||||||
Real estate - commercial mortgage | 2,460,724 | 1,992,650 | 468,074 | 23.5 | % | ||||||||
Real estate - home equity | 1,108,249 | 890,044 | 218,205 | 24.5 | % | ||||||||
Consumer | 506,128 | 516,587 | (10,459 | ) | -2.0 | % | |||||||
Leasing and other | 65,998 | 70,069 | (4,071 | ) | -5.8 | % | |||||||
Total Loans, net of unearned income | $ | 7,583,982 | $ | 6,159,994 | $ | 1,423,988 | 23.1 | % | |||||
Deposits, by type: | |||||||||||||
Noninterest-bearing demand | $ | 1,507,799 | $ | 1,262,214 | $ | 245,585 | 19.5 | % | |||||
Interest-bearing demand | 1,501,476 | 1,289,946 | 211,530 | 16.4 | % | ||||||||
Savings deposits | 1,917,203 | 1,751,475 | 165,728 | 9.5 | % | ||||||||
Time deposits | 2,969,010 | 2,448,148 | 520,862 | 21.3 | % | ||||||||
Total Deposits | $ | 7,895,488 | $ | 6,751,783 | $ | 1,143,705 | 16.9 | % | |||||
FULTON FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Quarter Ended December 31 | Variance | ||||||||||||||
2004 | 2003 | $ | % | ||||||||||||
(in thousands) | |||||||||||||||
Interest Income: | |||||||||||||||
Loans, including fees | $ | 108,373 | $ | 86,581 | $ | 21,792 | 25.2 | % | |||||||
Investment securities: | |||||||||||||||
Taxable | 17,157 | 21,814 | (4,657 | ) | -21.3 | % | |||||||||
Tax-exempt | 2,073 | 2,650 | (577 | ) | -21.8 | % | |||||||||
Dividends | 1,044 | 871 | 173 | 19.9 | % | ||||||||||
Other interest income | 2,089 | 358 | 1,731 | 483.5 | % | ||||||||||
Total Interest Income | 130,736 | 112,274 | 18,462 | 16.4 | % | ||||||||||
Interest Expense: | |||||||||||||||
Deposits | 24,440 | 21,718 | 2,722 | 12.5 | % | ||||||||||
Short-term borrowings | 4,880 | 2,413 | 2,467 | 102.2 | % | ||||||||||
Long-term debt | 7,941 | 7,493 | 448 | 6.0 | % | ||||||||||
Total Interest Expense | 37,261 | 31,624 | 5,637 | 17.8 | % | ||||||||||
Net Interest Income | 93,475 | 80,650 | 12,825 | 15.9 | % | ||||||||||
Provision for Loan Losses | 1,052 | 2,190 | (1,138 | ) | -52.0 | % | |||||||||
Net Interest Income after Provision | 92,423 | 78,460 | 13,963 | 17.8 | % | ||||||||||
Other Income: | |||||||||||||||
Investment management & trust services | 8,885 | 8,219 | 666 | 8.1 | % | ||||||||||
Service charges on deposit accounts | 9,835 | 9,973 | (138 | ) | -1.4 | % | |||||||||
Other service charges and fees | 5,131 | 4,784 | 347 | 7.3 | % | ||||||||||
Mortgage banking income | 6,271 | 3,590 | 2,681 | 74.7 | % | ||||||||||
Investment securities gains | 3,199 | 5,825 | (2,626 | ) | -45.1 | % | |||||||||
Other | 2,121 | 884 | 1,237 | 139.9 | % | ||||||||||
Total Other Income | 35,442 | 33,275 | 2,167 | 6.5 | % | ||||||||||
Other Expenses: | |||||||||||||||
Salaries and employee benefits | 41,695 | 35,289 | 6,406 | 18.2 | % | ||||||||||
Net occupancy expense | 6,277 | 5,027 | 1,250 | 24.9 | % | ||||||||||
Equipment expense | 2,674 | 2,619 | 55 | 2.1 | % | ||||||||||
Data processing | 2,828 | 3,028 | (200 | ) | -6.6 | % | |||||||||
Advertising | 1,870 | 1,450 | 420 | 29.0 | % | ||||||||||
Intangible amortization | 1,146 | 718 | 428 | 59.6 | % | ||||||||||
Other | 14,253 | 12,548 | 1,705 | 13.6 | % | ||||||||||
Total Other Expenses | 70,743 | 60,679 | 10,064 | 16.6 | % | ||||||||||
Income Before Income Taxes | 57,122 | 51,056 | 6,066 | 11.9 | % | ||||||||||
Income Taxes | 17,035 | 15,363 | 1,672 | 10.9 | % | ||||||||||
Net Income | $ | 40,087 | $ | 35,693 | $ | 4,394 | 12.3 | % | |||||||
SHARE AND PER-SHARE INFORMATION: | |||||||||||||||
Net income: | |||||||||||||||
Basic | $ | 0.33 | $ | 0.31 | $ | 0.02 | 6.5 | % | |||||||
Diluted | 0.33 | 0.31 | 0.02 | 6.5 | % | ||||||||||
Cash dividends | $ | 0.165 | $ | 0.152 | $ | 0.013 | 8.6 | % | |||||||
Book value | 9.88 | 8.33 | 1.55 | 18.6 | % | ||||||||||
Tangible book value | 6.78 | 7.06 | (0.28 | ) | -4.0 | % | |||||||||
Weighted average shares (basic) | 120,402 | 113,856 | 6,546 | 5.7 | % | ||||||||||
Weighted average shares (diluted) | 121,679 | 114,876 | 6,803 | 5.9 | % | ||||||||||
Shares outstanding, end of period | 125,720 | 113,667 | 12,053 | 10.6 | % | ||||||||||
SELECTED FINANCIAL RATIOS: | |||||||||||||||
Return on average assets | 1.51 | % | 1.50 | % | |||||||||||
Return on average equity | 14.25 | % | 15.32 | % | |||||||||||
Return on average equity (tangible) | 19.42 | % | 18.10 | % | |||||||||||
Net interest margin | 3.92 | % | 3.74 | % | |||||||||||
Efficiency ratio | 54.4 | % | 54.3 | % | |||||||||||
Average equity to average assets | 10.6 | % | 9.8 | % |
FULTON FINANCIAL CORPORATION
AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
Quarter Ended December 31 | ||||||||||||||||||||
2004 | 2003 | |||||||||||||||||||
Balance | Interest | Rate (1) | Balance | Interest | Rate (1) | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Loans and leases | $ | 7,304,717 | $ | 108,373 | 5.90 | % | $ | 5,935,683 | $ | 86,581 | 5.79 | % | ||||||||
Taxable investment securities | 1,909,616 | 17,157 | 3.57 | % | 2,455,589 | 21,814 | 3.52 | % | ||||||||||||
Tax-exempt investment securities | 246,531 | 2,073 | 3.35 | % | 284,705 | 2,650 | 3.69 | % | ||||||||||||
Equity securities | 128,147 | 1,044 | 3.24 | % | 128,660 | 871 | 2.69 | % | ||||||||||||
Total Investment Securities | 2,284,294 | 20,274 | 3.53 | % | 2,868,954 | 25,335 | 3.50 | % | ||||||||||||
Short-term investments | 123,028 | 2,089 | 6.76 | % | 41,672 | 358 | 3.41 | % | ||||||||||||
Total Interest-earning Assets | 9,712,039 | 130,736 | 5.36 | % | 8,846,309 | 112,274 | 5.04 | % | ||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||
Cash and due from banks | 305,044 | 280,959 | ||||||||||||||||||
Premises and equipment | 132,603 | 121,659 | ||||||||||||||||||
Other assets | 479,776 | 301,736 | ||||||||||||||||||
Less: Allowance for loan losses | (87,204 | ) | (78,653 | ) | ||||||||||||||||
Total Assets | $ | 10,542,258 | $ | 9,472,010 | ||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Demand deposits | $ | 1,428,307 | $ | 2,349 | 0.65 | % | $ | 1,281,107 | $ | 1,466 | 0.45 | % | ||||||||
Savings deposits | 1,899,260 | 3,813 | 0.80 | % | 1,775,817 | 2,680 | 0.60 | % | ||||||||||||
Time deposits | 2,734,507 | 18,278 | 2.66 | % | 2,488,880 | 17,572 | 2.80 | % | ||||||||||||
Total Interest-bearing Deposits | 6,062,074 | 24,440 | 1.60 | % | 5,545,804 | 21,718 | 1.55 | % | ||||||||||||
Short-term borrowings | 1,117,620 | 4,880 | 1.74 | % | 1,046,485 | 2,413 | 0.91 | % | ||||||||||||
Long-term debt | 668,239 | 7,941 | 4.73 | % | 588,125 | 7,493 | 5.05 | % | ||||||||||||
Total Interest-bearing Liabilities | 7,847,933 | 37,261 | 1.89 | % | 7,180,414 | 31,624 | 1.75 | % | ||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||
Demand deposits | 1,446,225 | 1,268,617 | ||||||||||||||||||
Other | 128,673 | 98,631 | ||||||||||||||||||
Total Liabilities | 9,422,831 | 8,547,662 | ||||||||||||||||||
Shareholders’ equity | 1,119,427 | 924,348 | ||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 10,542,258 | $ | 9,472,010 | ||||||||||||||||
Net interest income | $ | 93,475 | $ | 80,650 | ||||||||||||||||
Net interest margin (FTE) | 3.92 | % | 3.74 | % | ||||||||||||||||
(1) | Yields on tax-exempt securities are not fully taxable equivalent (FTE). |
FULTON FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Year Ended December 31 | Variance | ||||||||||||||
2004 | 2003 | $ | % | ||||||||||||
(in thousands) | |||||||||||||||
Interest Income: | |||||||||||||||
Loans, including fees | $ | 396,731 | $ | 341,393 | $ | 55,338 | 16.2 | % | |||||||
Investment securities: | |||||||||||||||
Taxable | 76,792 | 77,450 | (658 | ) | -0.8 | % | |||||||||
Tax-exempt | 9,553 | 10,436 | (883 | ) | -8.5 | % | |||||||||
Dividends | 4,023 | 4,076 | (53 | ) | -1.3 | % | |||||||||
Other interest income | 6,544 | 2,176 | 4,368 | 200.7 | % | ||||||||||
Total Interest Income | 493,643 | 435,531 | 58,112 | 13.3 | % | ||||||||||
Interest Expense: | |||||||||||||||
Deposits | 89,779 | 94,198 | (4,419 | ) | -4.7 | % | |||||||||
Short-term borrowings | 15,182 | 7,373 | 7,809 | 105.9 | % | ||||||||||
Long-term debt | 31,033 | 29,523 | 1,510 | 5.1 | % | ||||||||||
Total Interest Expense | 135,994 | 131,094 | 4,900 | 3.7 | % | ||||||||||
Net Interest Income | 357,649 | 304,437 | 53,212 | 17.5 | % | ||||||||||
Provision for Loan Losses | 4,717 | 9,705 | (4,988 | ) | -51.4 | % | |||||||||
Net Interest Income after Provision | 352,932 | 294,732 | 58,200 | 19.7 | % | ||||||||||
Other Income: | |||||||||||||||
Investment management & trust services | 34,817 | 33,898 | 919 | 2.7 | % | ||||||||||
Service charges on deposit accounts | 39,451 | 38,500 | 951 | 2.5 | % | ||||||||||
Other service charges and fees | 20,494 | 18,860 | 1,634 | 8.7 | % | ||||||||||
Mortgage banking income | 20,836 | 21,482 | (646 | ) | -3.0 | % | |||||||||
Investment securities gains | 17,712 | 19,853 | (2,141 | ) | -10.8 | % | |||||||||
Other | 6,745 | 4,394 | 2,351 | 53.5 | % | ||||||||||
Total Other Income | 140,055 | 136,987 | 3,068 | 2.2 | % | ||||||||||
Other Expenses: | |||||||||||||||
Salaries and employee benefits | 163,317 | 138,619 | 24,698 | 17.8 | % | ||||||||||
Net occupancy expense | 23,813 | 19,896 | 3,917 | 19.7 | % | ||||||||||
Equipment expense | 10,769 | 10,505 | 264 | 2.5 | % | ||||||||||
Data processing | 11,430 | 11,532 | (102 | ) | -0.9 | % | |||||||||
Advertising | 6,943 | 6,039 | 904 | 15.0 | % | ||||||||||
Intangible amortization | 4,726 | 2,059 | 2,667 | 129.5 | % | ||||||||||
Other | 53,808 | 45,526 | 8,282 | 18.2 | % | ||||||||||
Total Other Expenses | 274,806 | 234,176 | 40,630 | 17.4 | % | ||||||||||
Income Before Income Taxes | 218,181 | 197,543 | 20,638 | 10.4 | % | ||||||||||
Income Taxes | 65,264 | 59,363 | 5,901 | 9.9 | % | ||||||||||
Net Income | $ | 152,917 | $ | 138,180 | $ | 14,737 | 10.7 | % | |||||||
SHARE AND PER-SHARE INFORMATION: | |||||||||||||||
Net income: | |||||||||||||||
Basic | $ | 1.28 | $ | 1.23 | $ | 0.05 | 4.1 | % | |||||||
Diluted | 1.27 | 1.22 | 0.05 | 4.1 | % | ||||||||||
Cash dividends | $ | 0.647 | $ | 0.593 | $ | 0.054 | 9.1 | % | |||||||
Book value | 9.88 | 8.33 | 1.55 | 18.6 | % | ||||||||||
Tangible book value | 6.78 | 7.06 | (0.28 | ) | -4.0 | % | |||||||||
Weighted average shares (basic) | 119,435 | 112,268 | 7,167 | 6.4 | % | ||||||||||
Weighted average shares (diluted) | 120,641 | 113,135 | 7,506 | 6.6 | % | ||||||||||
Shares outstanding, end of period | 125,720 | 113,667 | 12,053 | 10.6 | % | ||||||||||
SELECTED FINANCIAL RATIOS: | |||||||||||||||
Return on average assets | 1.48 | % | 1.57 | % | |||||||||||
Return on average equity | 14.31 | % | 15.45 | % | |||||||||||
Return on average equity (tangible) | 18.64 | % | 17.42 | % | |||||||||||
Net interest margin | 3.83 | % | 3.82 | % | |||||||||||
Efficiency ratio | 55.2 | % | 53.8 | % | |||||||||||
Average equity to average assets | 10.3 | % | 10.2 | % |
FULTON FINANCIAL CORPORATION
AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
Year Ended December 31 | ||||||||||||||||||||
2004 | 2003 | |||||||||||||||||||
Balance | Interest | Rate (1) | Balance | Interest | Rate (1) | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Loans and leases | $ | 6,901,452 | $ | 396,731 | 5.75 | % | $ | 5,589,663 | $ | 341,393 | 6.11 | % | ||||||||
Taxable investment securities | 2,161,195 | 76,792 | 3.55 | % | 2,170,889 | 77,450 | 3.57 | % | ||||||||||||
Tax-exempt investment securities | 264,578 | 9,553 | 3.61 | % | 266,426 | 10,436 | 3.92 | % | ||||||||||||
Equity securities | 133,870 | 4,023 | 3.01 | % | 129,584 | 4,076 | 3.15 | % | ||||||||||||
Total Investment Securities | 2,559,643 | 90,368 | 3.53 | % | 2,566,899 | 91,962 | 3.58 | % | ||||||||||||
Short-term investments | 97,759 | 6,544 | 6.69 | % | 47,122 | 2,176 | 4.62 | % | ||||||||||||
Total Interest-earning Assets | 9,558,854 | 493,643 | 5.16 | % | 8,203,684 | 435,531 | 5.31 | % | ||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||
Cash and due from banks | 316,170 | 279,980 | ||||||||||||||||||
Premises and equipment | 128,902 | 123,172 | ||||||||||||||||||
Other assets | 424,385 | 270,611 | ||||||||||||||||||
Less: Allowance for loan losses | (84,983 | ) | (75,309 | ) | ||||||||||||||||
Total Assets | $ | 10,343,328 | $ | 8,802,138 | ||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Demand deposits | $ | 1,364,953 | $ | 7,201 | 0.53 | % | $ | 1,158,333 | $ | 6,011 | 0.52 | % | ||||||||
Savings deposits | 1,846,503 | 11,928 | 0.65 | % | 1,655,325 | 10,770 | 0.65 | % | ||||||||||||
Time deposits | 2,693,414 | 70,650 | 2.62 | % | 2,496,234 | 77,417 | 3.10 | % | ||||||||||||
Total Interest-bearing Deposits | 5,904,870 | 89,779 | 1.52 | % | 5,309,892 | 94,198 | 1.77 | % | ||||||||||||
Short-term borrowings | 1,238,073 | 15,182 | 1.23 | % | 738,527 | 7,373 | 1.00 | % | ||||||||||||
Long-term debt | 637,654 | 31,033 | 4.87 | % | 566,437 | 29,523 | 5.21 | % | ||||||||||||
Total Interest-bearing Liabilities | 7,780,597 | 135,994 | 1.75 | % | 6,614,856 | 131,094 | 1.98 | % | ||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||
Demand deposits | 1,380,264 | 1,195,479 | ||||||||||||||||||
Other | 114,003 | 97,334 | ||||||||||||||||||
Total Liabilities | 9,274,864 | 7,907,669 | ||||||||||||||||||
Shareholders’ equity | 1,068,464 | 894,469 | ||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 10,343,328 | $ | 8,802,138 | ||||||||||||||||
Net interest income | $ | 357,649 | $ | 304,437 | ||||||||||||||||
Net interest margin (FTE) | 3.83 | % | 3.82 | % | ||||||||||||||||
(1) | Yields on tax-exempt securities are not fully taxable equivalent (FTE). |
FULTON FINANCIAL CORPORATION
CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)
Quarter Ended | Variance | ||||||||||||
December 31 2004 | September 30 2004 | $ | % | ||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 278,065 | $ | 305,695 | $ | (27,630 | ) | -9.0 | % | ||||
Interest-bearing deposits | 163,560 | 163,018 | 542 | 0.3 | % | ||||||||
Investment securities | 2,451,267 | 2,343,686 | 107,581 | 4.6 | % | ||||||||
Loans, net of allowance | 7,494,355 | �� | 7,126,335 | 368,020 | 5.2 | % | |||||||
Premises and equipment | 143,944 | 130,874 | 13,070 | 10.0 | % | ||||||||
Goodwill and intangible assets | 390,254 | 280,128 | 110,126 | 39.3 | % | ||||||||
Other assets | 204,719 | 219,080 | (14,361 | ) | -6.6 | % | |||||||
Total Assets | $ | 11,126,164 | $ | 10,568,816 | $ | 557,348 | 5.3 | % | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
Deposits | $ | 7,895,488 | 7,460,070 | 435,418 | 5.8 | % | |||||||
Short-term borrowings | 1,162,524 | 1,188,464 | (25,940 | ) | -2.2 | % | |||||||
Long-term debt | 684,253 | 666,781 | 17,472 | 2.6 | % | ||||||||
Other liabilities | 141,609 | 125,478 | 16,131 | 12.9 | % | ||||||||
Total Liabilities | 9,883,874 | 9,440,793 | 443,081 | 4.7 | % | ||||||||
Shareholders’ Equity | 1,242,290 | 1,128,023 | 114,267 | 10.1 | % | ||||||||
Total Liabilities and Shareholders’ Equity | $ | 11,126,164 | $ | 10,568,816 | $ | 557,348 | 5.3 | % | |||||
LOANS AND DEPOSITS DETAIL: | |||||||||||||
Loans, by type: | |||||||||||||
Commercial, industrial and financial | $ | 1,946,906 | $ | 1,848,058 | $ | 98,848 | 5.3 | % | |||||
Commercial - agricultural | 326,176 | 316,323 | 9,853 | 3.1 | % | ||||||||
Real estate - construction | 626,784 | 580,323 | 46,461 | 8.0 | % | ||||||||
Real estate - residential mortgage | 543,017 | 528,421 | 14,596 | 2.8 | % | ||||||||
Real estate - commercial mortgage | 2,460,724 | 2,284,755 | 175,969 | 7.7 | % | ||||||||
Real estate - home equity | 1,108,249 | 1,053,333 | 54,916 | 5.2 | % | ||||||||
Consumer | 506,128 | 529,413 | (23,285 | ) | -4.4 | % | |||||||
Leasing and other | 65,998 | 72,536 | (6,538 | ) | -9.0 | % | |||||||
Total Loans, net of unearned income | $ | 7,583,982 | $ | 7,213,162 | $ | 370,820 | 5.1 | % | |||||
Deposits, by type: | |||||||||||||
Noninterest-bearing demand | $ | 1,507,799 | $ | 1,427,008 | $ | 80,791 | 5.7 | % | |||||
Interest-bearing demand | 1,501,476 | 1,391,071 | 110,405 | 7.9 | % | ||||||||
Savings deposits | 1,917,203 | 1,889,543 | 27,660 | 1.5 | % | ||||||||
Time deposits | 2,969,010 | 2,752,448 | 216,562 | 7.9 | % | ||||||||
Total Deposits | $ | 7,895,488 | $ | 7,460,070 | $ | 435,418 | 5.8 | % | |||||
FULTON FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Quarter Ended | Variance | ||||||||||||||
December 31 2004 | September 30 2004 | $ | % | ||||||||||||
(in thousands) | |||||||||||||||
Interest Income: | |||||||||||||||
Loans, including fees | $ | 108,373 | $ | 103,033 | $ | 5,340 | 5.2 | % | |||||||
Investment securities: | |||||||||||||||
Taxable | 17,157 | 18,247 | (1,090 | ) | -6.0 | % | |||||||||
Tax-exempt | 2,073 | 2,407 | (334 | ) | -13.9 | % | |||||||||
Dividends | 1,044 | 1,035 | 9 | 0.9 | % | ||||||||||
Other interest income | 2,089 | 2,225 | (136 | ) | -6.1 | % | |||||||||
Total Interest Income | 130,736 | 126,947 | 3,789 | 3.0 | % | ||||||||||
Interest Expense: | |||||||||||||||
Deposits | 24,440 | 22,644 | 1,796 | 7.9 | % | ||||||||||
Short-term borrowings | 4,880 | 3,840 | 1,040 | 27.1 | % | ||||||||||
Long-term debt | 7,941 | 7,962 | (21 | ) | -0.3 | % | |||||||||
Total Interest Expense | 37,261 | 34,446 | 2,815 | 8.2 | % | ||||||||||
Net Interest Income | 93,475 | 92,501 | 974 | 1.1 | % | ||||||||||
Provision for Loan Losses | 1,052 | 1,125 | (73 | ) | -6.5 | % | |||||||||
Net Interest Income after Provision | 92,423 | 91,376 | 1,047 | 1.1 | % | ||||||||||
Other Income: | |||||||||||||||
Investment management & trust services | 8,885 | 8,650 | 235 | 2.7 | % | ||||||||||
Service charges on deposit accounts | 9,835 | 10,182 | (347 | ) | -3.4 | % | |||||||||
Other service charges and fees | 5,131 | 5,367 | (236 | ) | -4.4 | % | |||||||||
Mortgage banking income | 6,271 | 6,092 | 179 | 2.9 | % | ||||||||||
Investment securities gains | 3,199 | 3,336 | (137 | ) | -4.1 | % | |||||||||
Other | 2,121 | 1,720 | 401 | 23.3 | % | ||||||||||
Total Other Income | 35,442 | 35,347 | 95 | 0.3 | % | ||||||||||
Other Expenses: | |||||||||||||||
Salaries and employee benefits | 41,695 | 42,464 | (769 | ) | -1.8 | % | |||||||||
Net occupancy expense | 6,277 | 6,159 | 118 | 1.9 | % | ||||||||||
Equipment expense | 2,674 | 2,705 | (31 | ) | -1.1 | % | |||||||||
Data processing | 2,828 | 2,915 | (87 | ) | -3.0 | % | |||||||||
Advertising | 1,870 | 1,631 | 239 | 14.7 | % | ||||||||||
Intangible amortization | 1,146 | 1,233 | (87 | ) | -7.1 | % | |||||||||
Other | 14,253 | 13,581 | 672 | 4.9 | % | ||||||||||
Total Other Expenses | 70,743 | 70,688 | 55 | 0.1 | % | ||||||||||
Income Before Income Taxes | 57,122 | 56,035 | 1,087 | 1.9 | % | ||||||||||
Income Taxes | 17,035 | 16,915 | 120 | 0.7 | % | ||||||||||
Net Income | $ | 40,087 | $ | 39,120 | $ | 967 | 2.5 | % | |||||||
SHARE AND PER-SHARE INFORMATION: | |||||||||||||||
Net income: | |||||||||||||||
Basic | $ | 0.33 | $ | 0.32 | $ | 0.01 | 3.1 | % | |||||||
Diluted | 0.33 | 0.32 | 0.01 | 3.1 | % | ||||||||||
Cash dividends | $ | 0.165 | $ | 0.165 | $ | — | 0.0 | % | |||||||
Book value | 9.88 | 9.32 | 0.56 | 6.0 | % | ||||||||||
Tangible book value | 6.78 | 6.85 | (0.07 | ) | -1.0 | % | |||||||||
Weighted average shares (basic) | 120,402 | 121,496 | (1,094 | ) | -0.9 | % | |||||||||
Weighted average shares (diluted) | 121,679 | 122,712 | (1,033 | ) | -0.8 | % | |||||||||
Shares outstanding, end of period | 125,720 | 121,003 | 4,717 | 3.9 | % | ||||||||||
SELECTED FINANCIAL RATIOS: | |||||||||||||||
Return on average assets | 1.51 | % | 1.48 | % | |||||||||||
Return on average equity | 14.25 | % | 14.12 | % | |||||||||||
Return on average equity (tangible) | 19.42 | % | 19.37 | % | |||||||||||
Net interest margin | 3.92 | % | 3.88 | % | |||||||||||
Efficiency ratio | 54.4 | % | 54.7 | % | |||||||||||
Average equity to average assets | 10.6 | % | 10.5 | % |
FULTON FINANCIAL CORPORATION
AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
Quarter Ended | ||||||||||||||||||||
December 31, 2004 | September 30, 2004 | |||||||||||||||||||
Balance | Interest | Rate (1) | Balance | Interest | Rate (1) | |||||||||||||||
ASSETS | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Loans and leases | $ | 7,304,717 | $ | 108,373 | 5.90 | % | $ | 7,159,211 | $ | 103,033 | 5.73 | % | ||||||||
Taxable investment securities | 1,909,616 | 17,157 | 3.57 | % | 2,037,040 | 18,247 | 3.56 | % | ||||||||||||
Tax-exempt investment securities | 246,531 | 2,073 | 3.35 | % | 262,962 | 2,407 | 3.64 | % | ||||||||||||
Equity securities | 128,147 | 1,044 | 3.24 | % | 138,264 | 1,035 | 2.98 | % | ||||||||||||
Total Investment Securities | 2,284,294 | 20,274 | 3.53 | % | 2,438,266 | 21,689 | 3.54 | % | ||||||||||||
Short-term investments | 123,028 | 2,089 | 6.76 | % | 126,089 | 2,225 | 7.02 | % | ||||||||||||
Total Interest-earning Assets | 9,712,039 | 130,736 | 5.36 | % | 9,723,566 | 126,947 | 5.19 | % | ||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||
Cash and due from banks | 305,044 | 326,204 | ||||||||||||||||||
Premises and equipment | 132,603 | 130,776 | ||||||||||||||||||
Other assets | 479,776 | 453,196 | ||||||||||||||||||
Less: Allowance for loan losses | (87,204 | ) | (87,148 | ) | ||||||||||||||||
Total Assets | $ | 10,542,258 | $ | 10,546,594 | ||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Demand deposits | $ | 1,428,307 | $ | 2,349 | 0.65 | % | $ | 1,399,005 | $ | 1,863 | 0.53 | % | ||||||||
Savings deposits | 1,899,260 | 3,813 | 0.80 | % | 1,868,650 | 2,972 | 0.63 | % | ||||||||||||
Time deposits | 2,734,507 | 18,278 | 2.66 | % | 2,764,597 | 17,809 | 2.56 | % | ||||||||||||
Total Interest-bearing Deposits | 6,062,074 | 24,440 | 1.60 | % | 6,032,252 | 22,644 | 1.49 | % | ||||||||||||
Short-term borrowings | 1,117,620 | 4,880 | 1.74 | % | 1,208,379 | 3,840 | 1.26 | % | ||||||||||||
Long-term debt | 668,239 | 7,941 | 4.73 | % | 654,969 | 7,962 | 4.84 | % | ||||||||||||
Total Interest-bearing Liabilities | 7,847,933 | 37,261 | 1.89 | % | 7,895,600 | 34,446 | 1.74 | % | ||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||
Demand deposits | 1,446,225 | 1,429,259 | ||||||||||||||||||
Other | 128,673 | 119,551 | ||||||||||||||||||
Total Liabilities | 9,422,831 | 9,444,410 | ||||||||||||||||||
Shareholders’ equity | 1,119,427 | 1,102,184 | ||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 10,542,258 | $ | 10,546,594 | ||||||||||||||||
Net interest income | $ | 93,475 | $ | 92,501 | ||||||||||||||||
Net interest margin (FTE) | 3.92 | % | 3.88 | % | ||||||||||||||||
(1) | Yields on tax-exempt securities are not fully taxable equivalent (FTE). |
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
Quarter Ended December 31 | Year Ended December 31 | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
(in thousands) | ||||||||||||||||
Gross charge-offs | $ | 2,588 | $ | 3,463 | $ | 8,877 | $ | 13,228 | ||||||||
Recoveries | 882 | 1,117 | 4,520 | 3,829 | ||||||||||||
Net Charge-offs | $ | 1,706 | $ | 2,346 | $ | 4,357 | $ | 9,399 | ||||||||
Net charge-offs to average loans | 0.09 | % | 0.16 | % | 0.06 | % | 0.17 | % | ||||||||
Non-accrual loans | $ | 22,574 | $ | 22,422 | ||||||||||||
Accruing loans 90+ days overdue | 8,318 | 9,609 | ||||||||||||||
Other real estate owned | 2,209 | 585 | ||||||||||||||
Total Non-Performing Assets | $ | 33,101 | $ | 32,616 | ||||||||||||
Non-accrual loans to total loans | 0.30 | % | 0.37 | % | ||||||||||||
Non-performing assets to total loans and OREO | 0.44 | % | 0.54 | % | ||||||||||||
Non-performing assets to total assets | 0.30 | % | 0.33 | % | ||||||||||||
Allowance to loans | 1.18 | % | 1.26 | % |
Quarter Ended | ||||||||
December 31 2004 | September 30 2004 | |||||||
(in thousands) | ||||||||
Gross charge-offs | $ | 2,588 | $ | 2,056 | ||||
Recoveries | 882 | 1,019 | ||||||
Net Charge-offs | $ | 1,706 | $ | 1,037 | ||||
Net charge-offs to average loans | 0.09 | % | 0.06 | % | ||||
Non-accrual Loans | $ | 22,574 | $ | 23,422 | ||||
Accruing loans 90+ days overdue | 8,318 | 10,962 | ||||||
Other real estate owned | 2,209 | 1,325 | ||||||
Total Non-Performing Assets | $ | 33,101 | $ | 35,709 | ||||
Non-accrual loans to total loans | 0.30 | % | 0.32 | % | ||||
Non-performing assets to total loans and OREO | 0.44 | % | 0.49 | % | ||||
Non-performing assets to total assets | 0.30 | % | 0.34 | % | ||||
Allowance to loans | 1.18 | % | 1.20 | % |
FULTON FINANCIAL CORPORATION
CONSOLIDATING ENDING BALANCE SHEET (UNAUDITED)
DECEMBER 31, 2004
FULTON FINANCIAL CORP (1) | FIRST WASHINGTON STATE BANK | FULTON FINANCIAL CORPORATION, AS REPORTED | |||||||
ASSETS | |||||||||
Cash and due from banks | $ | 263,247 | $ | 14,818 | $ | 278,065 | |||
Other earning assets | 145,842 | 17,718 | 163,560 | ||||||
Investment securities | 2,243,942 | 207,325 | 2,451,267 | ||||||
Loans, net of allowance | 7,253,400 | 240,955 | 7,494,355 | ||||||
Premises and equipment | 134,800 | 9,144 | 143,944 | ||||||
Goodwill and intangible assets | 298,037 | 92,217 | 390,254 | ||||||
Other assets | 202,756 | 1,963 | 204,719 | ||||||
Total Assets | $ | 10,542,024 | $ | 584,140 | $ | 11,126,164 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
Deposits | $ | 7,469,050 | $ | 426,438 | $ | 7,895,488 | |||
Short-term borrowings | 1,145,964 | 16,560 | 1,162,524 | ||||||
Long-term debt | 670,753 | 13,500 | 684,253 | ||||||
Other liabilities | 139,190 | 2,419 | 141,609 | ||||||
Total Liabilities | 9,424,957 | 458,917 | 9,883,874 | ||||||
Shareholders’ equity | 1,117,067 | 125,223 | 1,242,290 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 10,542,024 | $ | 584,140 | $ | 11,126,164 | |||
(1) | Excluding First Washington State Bank. |
NOTE: The unaudited consolidating ending balance sheet presented above shows the increases in Fulton Financial Corporation’s balances resulting from the December 31, 2004 acquisition of First Washington State Bank. The First Washington State Bank amounts include preliminary allocations of the purchase price.