Exhibit 99.2
FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
Quarter Ended
March 31 Variance
----------------------- ------------------------
2003 2002 $ %
---------- ---------- ----------- -----------
INCOME SUMMARY: (in thousands, except per-share data)
- ---------------
Interest income $ 110,184 $ 117,799 $ (7,615) -6.5%
Interest expense 34,546 41,469 (6,923) -16.7%
---------- ---------- ----------
Net Interest Income 75,638 76,330 (692) -0.9%
Provision for loan losses 2,835 2,780 55 2.0%
Investment securities gains 2,229 1,398 831 59.4%
Other income 29,436 25,285 4,151 16.4%
Other expenses 55,882 54,928 954 1.7%
---------- ---------- ----------
Income Before Income Taxes 48,586 45,305 3,281 7.2%
Income taxes 14,543 13,075 1,468 11.2%
---------- ---------- ----------
Net Income $ 34,043 $ 32,230 $ 1,813 5.6%
========== ========== ==========
Fully taxable equivalent (FTE) net interest income $ 78,062 $ 78,554 $ (492) -0.6%
PER-SHARE DATA:
- ---------------
Net Income:
Basic $ 0.34 $ 0.31 $ 0.03 9.7%
Diluted 0.34 0.31 0.03 9.7%
Cash Dividends 0.150 0.136 0.014 10.3%
ENDING BALANCES:
- ----------------
Total assets $8,430,330 $7,825,149 $ 605,181 7.7%
Loans, net of unearned income 5,289,036 5,365,864 (76,828) -1.4%
Deposits 6,344,568 5,943,775 400,793 6.7%
Short-term borrowings 507,907 462,327 45,580 9.9%
Long-term debt 535,210 451,382 83,828 18.6%
Shareholders' equity 864,119 825,699 38,420 4.7%
AVERAGE BALANCES:
- -----------------
Total assets $8,281,576 $7,647,622 $ 633,954 8.3%
Loans, net of unearned income 5,346,978 5,389,770 (42,792) -0.8%
Deposits 6,168,891 5,881,229 287,662 4.9%
Short-term borrowings 611,447 385,296 226,151 58.7%
Long-term debt 540,906 463,706 77,200 16.6%
Shareholders' equity 864,642 813,860 50,782 6.2%
FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
Quarter Ended
-------------------------------------
March 31 December 31 Variance
--------------------
2003 2002 $ %
----------------- ---------------- ---------- -------
INCOME SUMMARY: (in thousands, except per-share data)
- --------------
Interest income $ 110,184 $ 115,446 $ (5,262) -4.6%
Interest expense 34,546 38,103 (3,557) -9.3%
----------- ----------- ---------
Net Interest Income 75,638 77,343 (1,705) -2.2%
Provision for loan losses 2,835 2,070 765 37.0%
Investment securities gains 2,229 2,945 (716) -24.3%
Other income 29,436 28,036 1,400 5.0%
Other expenses 55,882 57,531 (1,649) -2.9%
----------- ----------- ---------
Income Before Income Taxes 48,586 48,723 (137) -0.3%
Income taxes 14,543 14,816 (273) -1.8%
----------- ----------- ---------
Net Income $ 34,043 $ 33,907 $ 136 0.4%
=========== =========== =========
Fully taxable equivalent (FTE) net interest income $ 78,062 $ 79,697 $ (1,635) -2.1%
PER-SHARE DATA:
- --------------
Net Income:
Basic $ 0.34 $ 0.33 $ 0.01 3.0%
Diluted 0.34 0.33 0.01 3.0%
Cash Dividends 0.150 0.150 - 0.0%
ENDING BALANCES:
- ---------------
Total assets $ 8,430,330 $ 8,387,778 $ 42,552 0.5%
Loans, net of unearned income 5,289,036 5,317,068 (28,032) -0.5%
Deposits 6,344,568 6,245,528 99,040 1.6%
Short-term borrowings 507,907 632,194 (124,287) -19.7%
Long-term debt 535,210 535,555 (345) -0.1%
Shareholders' equity 864,119 863,742 377 0.0%
AVERAGE BALANCES:
- ----------------
Total assets $ 8,281,576 $ 8,172,373 $ 109,203 1.3%
Loans, net of unearned income 5,346,978 5,333,135 13,843 0.3%
Deposits 6,168,891 6,234,854 (65,963) -1.1%
Short-term borrowings 611,447 461,467 149,980 32.5%
Long-term debt 540,906 526,902 14,004 2.7%
Shareholders' equity 864,642 849,434 15,208 1.8%
FULTON FINANCIAL CORPORATION
CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)
March 31
--------------------------
2003 2002
----------- -----------
(in thousands)
ASSETS
- ------
Cash and due from banks $ 348,229 $ 256,490
Interest-bearing deposits 10,903 4,456
Mortgage loans held for sale 79,956 31,980
Investment securities 2,441,341 1,892,041
Loans, net of unearned income 5,289,036 5,365,864
Less: Allowance for loan losses (71,786) (72,083)
----------- -----------
Net Loans 5,217,250 5,293,781
Premises and equipment 121,873 124,650
Accrued interest receivable 40,704 41,155
Intangible assets 71,938 73,775
Other assets 98,136 106,821
----------- -----------
Total Assets $ 8,430,330 $ 7,825,149
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Deposits:
Noninterest bearing $ 1,238,087 $ 1,062,594
Interest-bearing 5,106,481 4,881,181
----------- -----------
Total Deposits 6,344,568 5,943,775
Short-term borrowings:
Securities sold under agreements to repurchase 325,420 298,834
Federal funds purchased 180,000 158,000
Demand notes of U.S. Treasury 2,487 5,493
----------- -----------
Total Short-Term Borrowings 507,907 462,327
Accrued interest payable 27,046 32,226
Other liabilities 145,980 102,240
Long-term debt 535,210 451,382
Corporation-obligated mandatorily redeemable
capital securities of subsidiary trust 5,500 7,500
----------- -----------
Total Liabilities 7,566,211 6,999,450
----------- -----------
Shareholders' equity:
Common stock 260,300 207,962
Capital surplus 479,215 534,224
Retained earnings 157,415 83,834
Accumulated other comprehensive income 27,479 13,618
Less: Treasury stock, at cost (60,290) (13,939)
----------- -----------
Total Shareholders' Equity 864,119 825,699
----------- -----------
Total Liabilities and Shareholders' Equity $ 8,430,330 $ 7,825,149
=========== ===========
LOANS AND DEPOSITS DETAIL:
- --------------------------
Loans, by type:
Commercial, financial and agricultural $ 1,710,323 $ 1,548,493
Real estate - construction 241,861 248,108
Real estate - mortgage 2,741,173 2,883,414
Consumer 521,281 605,899
Leasing and other 74,398 79,950
----------- -----------
Total Loans, net of unearned income $ 5,289,036 $ 5,365,864
=========== ===========
Deposits, by type:
Noninterest-bearing demand $ 1,238,087 $ 1,062,594
Interest-bearing demand 1,063,726 829,898
Savings deposits 1,561,818 1,489,258
Time deposits 2,480,937 2,562,025
----------- -----------
Total Deposits $ 6,344,568 $ 5,943,775
=========== ===========
FULTON FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Quarter Ended
March 31
------------------------------------
2003 2002
----------------- ----------------
(in thousands)
Interest Income:
Loans, including fees $ 85,112 $ 94,659
Investment securities:
Taxable 20,734 19,629
Tax-exempt 2,520 2,381
Dividends 1,148 1,054
Other interest income 670 76
----------------- ----------------
Total Interest Income 110,184 117,799
Interest Expense:
Deposits 25,707 33,574
Short-term borrowings 1,753 1,513
Long-term debt 7,086 6,382
----------------- ----------------
Total Interest Expense 34,546 41,469
----------------- ----------------
Net Interest Income 75,638 76,330
Provision for Loan Losses 2,835 2,780
----------------- ----------------
Net Interest Income after Provision 72,803 73,550
Other Income:
Investment management & trust services 8,343 7,160
Service charges on deposit accounts 9,216 8,784
Other service charges and fees 4,586 4,105
Mortgage banking income 5,951 3,282
Investment securities gains 2,229 1,398
Other 1,340 1,954
----------------- ----------------
Total Other Income 31,665 26,683
Other Expenses:
Salaries and employee benefits 33,320 31,047
Net occupancy expense 5,080 4,292
Equipment expense 2,680 2,799
Data processing 2,864 3,213
Intangible amortization 359 359
Other 11,579 13,218
----------------- ----------------
Total Other Expenses 55,882 54,928
----------------- ----------------
Income Before Income Taxes 48,586 45,305
Income Taxes 14,543 13,075
----------------- ----------------
Net Income $ 34,043 $ 32,230
================= ================
FULTON FINANCIAL CORPORATION
PER-SHARE INFORMATION AND SELECTED FINANCIAL RATIOS (UNAUDITED)
Quarter Ended
March 31
------------------------------------
2003 2002
------------------ ----------------
PER-SHARE INFORMATION:
- ----------------------
Net income:
Basic $ 0.34 $ 0.31
Diluted 0.34 0.31
Cash Dividends $ 0.150 $ 0.136
Book Value 8.59 8.01
Tangible Book Value 7.88 7.29
Weighted average shares (basic) 100,878 103,180
Weighted average shares (diluted) 101,558 103,885
Shares outstanding, end of period 100,569 103,142
FINANCIAL RATIOS:
- -----------------
Return on Average Assets 1.67% 1.71%
Return on Average Equity 15.97% 16.06%
Net Interest Margin 4.06% 4.44%
Efficiency Ratio 51.7% 52.6%
Average Equity to Average Assets 10.4% 10.6%
FULTON FINANCIAL CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET (UNAUDITED)
Quarter Ended
March 31
-------------------------------------
2003 2002
------------------ -----------------
ASSETS (In thousands)
- ------
Interest-earning assets:
Loans and leases $ 5,346,978 $ 5,389,770
Taxable investment securities 1,959,036 1,398,133
Tax-exempt investment securities 241,180 219,671
Equity securities 133,300 103,018
Short-term investments 54,995 13,972
------------ ------------
Total Interest-Earning Assets 7,735,489 7,124,564
Non-interest earning assets:
Cash and due from banks 257,555 244,949
Premises and equipment 123,372 123,220
Other assets 238,132 227,330
Less: Allowance for loan losses (72,972) (72,441)
------------ ------------
Total Assets $ 8,281,576 $ 7,647,622
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Interest-bearing liabilities:
Demand deposits $ 1,049,624 $ 820,944
Savings deposits 1,535,872 1,455,128
Time deposits 2,512,211 2,604,909
------------ ------------
Total Interest-Bearing Deposits 5,097,707 4,880,981
Short-term borrowings 611,447 385,296
Long-term debt 540,906 463,706
------------ ------------
Total Interest-Bearing Liabilities 6,250,060 5,729,983
Noninterest-bearing liabilities:
Demand deposits 1,071,184 1,000,248
Other 95,690 103,531
------------ ------------
Total Liabilities 7,416,934 6,833,762
Shareholders' equity 864,642 813,860
------------ ------------
Total Liabilities and Shareholders' Equity $ 8,281,576 $ 7,647,622
============ ============
AVERAGE YIELDS ON INTEREST-EARNING ASSETS:
- -----------------------------------------
Loans and leases 6.46% 7.12%
Taxable investment securities 4.29% 5.69%
Tax-exempt investment securities 4.24% 4.40%
Equity securities 3.49% 4.15%
Short-term investments 4.94% 2.21%
------------ ------------
Total Interest-Earning Assets 5.78% 6.71%
============ ============
AVERAGE COSTS OF INTEREST-BEARING LIABILITIES:
- ---------------------------------------------
Demand deposits 0.63% 0.63%
Savings deposits 0.76% 1.15%
Time deposits 3.42% 4.39%
Short-term borrowings 1.16% 1.59%
Long-term debt 5.31% 5.58%
------------ ------------
Total Interest-Bearing Liabilities 2.24% 2.94%
============ ============
NET INTEREST MARGIN (FTE) 4.06% 4.44%
============ ============
FULTON FINANCIAL CORPORATION
LOAN QUALITY INFORMATION (UNAUDITED)
Quarter Ended
March 31
----------------------------
2003 2002
--------- --------
(in thousands)
Gross Charge-offs $ 3,948 $ 3,528
Recoveries 979 959
-------- --------
Net Charge-offs $ 2,969 $ 2,569
======== ========
Net Charge-offs to average loans 0.22% 0.19%
-------- --------
Non-Accrual Loans $ 25,686 $ 22,054
Accruing Loans 90+ Days Overdue 10,676 10,870
Other Real Estate Owned 757 1,718
-------- --------
Total Non-Performing Assets $ 37,119 $ 34,642
======== ========
Non-accrual loans to total loans 0.49% 0.41%
Non-performing assets to total loans and OREO 0.70% 0.65%
Non-performing assets to total assets 0.44% 0.44%
Allowance to Loans 1.36% 1.34%
FULTON FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Quarter Ended
-------------------------------
March 31 December 31
2003 2002
----------- --------------
(in thousands)
Interest Income:
Loans, including fees $ 85,112 $ 89,340
Investment securities:
Taxable 20,734 21,836
Tax-exempt 2,520 2,474
Dividends 1,148 1,095
Other interest income 670 701
-------- --------
Total Interest Income 110,184 115,446
Interest Expense:
Deposits 25,707 29,627
Short-term borrowings 1,753 1,518
Long-term debt 7,086 6,958
-------- --------
Total Interest Expense 34,546 38,103
-------- --------
Net Interest Income 75,638 77,343
Provision for Loan Losses 2,835 2,070
-------- --------
Net Interest Income after Provision 72,803 75,273
Other Income:
Investment management & trust services 8,343 7,481
Service charges on deposit accounts 9,216 9,912
Other service charges and fees 4,586 4,672
Mortgage banking income 5,951 5,283
Investment securities gains 2,229 2,945
Other 1,340 688
-------- --------
Total Other Income 31,665 30,981
Other Expenses:
Salaries and employee benefits 33,320 32,354
Net occupancy expense 5,080 4,594
Equipment expense 2,680 2,921
Data processing 2,864 2,787
Intangible amortization 359 760
Other 11,579 14,115
-------- --------
Total Other Expenses 55,882 57,531
-------- --------
Income Before Income Taxes 48,586 48,723
Income Taxes 14,543 14,816
-------- --------
Net Income $ 34,043 $ 33,907
======== ========
FULTON FINANCIAL CORPORATION
PER-SHARE INFORMATION AND SELECTED FINANCIAL RATIOS (UNAUDITED)
Quarter Ended
----------------------------------
March 31 December 31
2003 2002
--------------- -----------------
PER-SHARE INFORMATION:
- ---------------------
Net income:
Basic $ 0.34 $ 0.33
Diluted 0.34 0.33
Cash Dividends $ 0.150 $ 0.150
Book Value 8.59 8.54
Tangible Book Value 7.88 7.83
Weighted average shares (basic) 100,878 101,351
Weighted average shares (diluted) 101,558 101,931
Shares outstanding, end of period 100,569 101,106
FINANCIAL RATIOS:
- ----------------
Return on Average Assets 1.67% 1.65%
Return on Average Equity 15.97% 15.84%
Net Interest Margin 4.06% 4.17%
Efficiency Ratio 51.7% 52.7%
Average Equity to Average Assets 10.4% 10.4%
FULTON FINANCIAL CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET (UNAUDITED)
Quarter Ended
---------------------------------
March 31 December 31
2003 2002
-------------- -----------------
ASSETS (In thousands)
- ------
Interest-earning assets:
Loans and leases $ 5,346,978 $ 5,333,135
Taxable investment securities 1,959,036 1,859,278
Tax-exempt investment securities 241,180 233,457
Equity securities 133,300 125,955
Short-term investments 54,995 59,930
----------- -----------
Total Interest-Earning Assets 7,735,489 7,611,755
Non-interest earning assets:
Cash and due from banks 257,555 266,969
Premises and equipment 123,372 123,138
Other assets 238,132 243,776
Less: Allowance for loan losses (72,972) (73,265)
----------- -----------
Total Assets $ 8,281,576 $ 8,172,373
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Interest-bearing liabilities:
Demand deposits $ 1,049,624 $ 1,032,170
Savings deposits 1,535,872 1,546,858
Time deposits 2,512,211 2,583,932
----------- -----------
Total Interest-Bearing Deposits 5,097,707 5,162,960
Short-term borrowings 611,447 461,467
Long-term debt 540,906 526,902
----------- -----------
Total Interest-Bearing Liabilities 6,250,060 6,151,329
Noninterest-bearing liabilities:
Demand deposits 1,071,184 1,071,894
Other 95,690 99,716
----------- -----------
Total Liabilities 7,416,934 7,322,939
Shareholders' equity 864,642 849,434
----------- -----------
Total Liabilities and Shareholders' Equity $ 8,281,576 $ 8,172,373
=========== ===========
AVERAGE YIELDS ON INTEREST-EARNING ASSETS:
- ------------------------------------------
Loans and leases 6.46% 6.65%
Taxable investment securities 4.29% 4.66%
Tax-exempt investment securities 4.24% 4.20%
Equity securities 3.49% 3.45%
Short-term investments 4.94% 4.64%
----------- -----------
Total Interest-Earning Assets 5.78% 6.02%
=========== ===========
AVERAGE COSTS OF INTEREST-BEARING LIABILITIES:
- ----------------------------------------------
Demand deposits 0.63% 0.79%
Savings deposits 0.76% 0.95%
Time deposits 3.42% 3.66%
Short-term borrowings 1.16% 1.31%
Long-term debt 5.31% 5.24%
----------- -----------
Total Interest-Bearing Liabilities 2.24% 2.46%
=========== ===========
NET INTEREST MARGIN (FTE) 4.06% 4.17%
=========== ===========
FULTON FINANCIAL CORPORATION
LOAN QUALITY INFORMATION (UNAUDITED)
Quarter Ended
----------------------------
March 31 December 31
2003 2002
----------- -----------
(in thousands)
Gross Charge-offs $ 3,948 $ 3,810
Recoveries 979 971
-------- ---------
Net Charge-offs $ 2,969 $ 2,839
======== =========
Net Charge-offs to average loans 0.22% 0.21%
-------- ---------
Non-Accrual Loans $ 25,686 $ 24,090
Accruing Loans 90+ Days Overdue 10,676 14,095
Other Real Estate Owned 757 938
-------- ---------
Total Non-Performing Assets $ 37,119 $ 39,123
======== =========
Non-accrual loans to total loans 0.49% 0.45%
Non-performing assets to total loans and OREO 0.70% 0.74%
Non-performing assets to total assets 0.44% 0.47%
Allowance to Loans 1.36% 1.35%