Exhibit 99.1
Fulton Financial Corporation
(Logo Omitted)
FOR IMMEDIATE RELEASE Contact: Laura J. Wakeley
Full text available on PR Newswire Phone: 717-291-2739
Fulton Financial net income per share up 3.2% in third quarter
(October 21) - Lancaster, PA -- Fulton Financial Corp. (Nasdaq: FULT)
earned $34.4 million in the third quarter of 2003, resulting in a 3.2 percent
increase in diluted net income per share, up to 32 cents in 2003 from 31 cents
in 2002. Net income increased 1.7 percent over the $33.8 million reported for
the third quarter of 2002. Annualized return on average assets was 1.51 percent
for the quarter and annualized return on average equity was 14.79 percent.
The Lancaster, Pennsylvania-based financial holding company reported net
income of $102.5 million for the nine months ended September 30, 2003, a 3.5
percent increase over the same period in 2002. Net income per share for the
first nine months of 2003 increased to 96 cents, a 5.5 percent increase over the
91 cents reported in 2002.
"While low rates during the quarter continued to impact our net interest
income, we were able to sustain our recent strong levels of mortgage banking
activity and related non-interest income," said Rufus A. Fulton, Jr., chairman
and chief executive officer. "Asset quality improved from the same quarter in
2002, resulting in a lower provision for loan losses. Our investment management
and trust services subsidiary, Fulton Financial Advisors, continued to benefit
from positive trends in the equity markets. These trends also enabled us to
generate additional gains from the sale of equity positions within our
investment portfolio. During the quarter, we completed our acquisition of
Doylestown, Pa.-based Premier Bancorp, Inc. and its banking subsidiary, Premier
Bank, which will allow us to expand our core banking business into contiguous
growth markets. The financial results of Premier are included in Fulton
Financial's results from the August 1, 2003 acquisition date."
Net interest income decreased $4.1 million, or 5.2 percent, compared to the
third quarter of 2002. Fulton Financial's net interest margin was 3.62% for the
third quarter of 2003 and 4.33% for the same period in 2002. The decline
resulted from average yields on earning assets decreasing further than the
average cost of deposits.
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Total deposits increased $575 million, or 9.2 percent, to $6.8 billion at
September 30, 2003, compared to $6.3 billion at September 30, 2002. Demand and
savings accounts increased $660 million, or 18.1 percent, to $4.3 billion, while
time deposits decreased $85 million, or 3.2 percent, to $2.5 billion. Overall
deposit growth resulted mainly from the acquisition of Premier Bank, which added
$453 million to total deposits.
Loans, net of unearned income, increased $515 million, or 9.7 percent, to
$5.8 billion at September 30, 2003, compared to $5.3 billion at September 30,
2002. Commercial loans and mortgages increased $583 million, or 17.5 percent,
while residential mortgages decreased $144 million, or 22.4 percent, due to
refinance activity and sales of loans into the secondary market. Premier Bank
contributed $367 million to the total increase, predominantly in commercial
mortgages. Excluding Premier Bank, Fulton Financial realized a $149 million
increase in loans, net of unearned income, exceeding the growth realized in
recent quarters.
Non-performing assets were 0.41 percent of total assets at September 30,
2003, an improvement from 0.58 percent of total assets at September 30, 2002.
Annualized net charge-offs for the quarter ended September 30, 2003 were 0.14
percent of average total loans, compared to 0.33 percent for the same period of
2002. For the nine months ended September 30, 2003, net charge-offs were 0.17
percent of average loans, compared to 0.22 percent for 2002. These ratios
improved mainly as a result of a specific problem commercial relationship in
2002 which has since been paid off.
Other income increased $1.8 million, or 6.3 percent, to $30.5 million in
the third quarter of 2003, driven by investment management and trust services,
which increased $1.6 million, or 23.8 percent. Mortgage sale gains also remained
strong as low rates prevailed during most of the quarter. The increase in
mortgage banking income over 2002 was $293,000, or 5.0 percent, as mortgage
refinance activity also had a significant positive impact on 2002 income.
Premier Bank did not have a significant impact on other income for the quarter.
Other expenses increased $3.0 million, or 5.3 percent, to $59.6 million in
the third quarter of 2003, compared to $56.6 million in the same period of 2002.
Excluding Premier Bank, expenses increased $1.1 million, or 2.0%.
Fulton Financial Corporation is a $9.3 billion Lancaster,
Pennsylvania-based financial holding company which operates 199 banking offices
in Pennsylvania, Maryland, Delaware and New Jersey through the following
affiliates: Fulton Bank, Lancaster, PA; Lebanon Valley Farmers Bank, Lebanon,
PA; Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Easton,
PA; FNB Bank, N.A., Danville, PA; Hagerstown Trust, Hagerstown, MD; Delaware
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National Bank, Georgetown, DE; The Bank, Woodbury, NJ; The Peoples Bank of
Elkton, Elkton, MD, Skylands Community Bank, Hackettstown, NJ, and Premier Bank,
Doylestown, PA.
The Corporation's financial services affiliates include Fulton Financial
Advisors, N.A., Lancaster, PA; Fulton Insurance Services Group, Inc. Lancaster,
PA; and Dearden, Maguire, Weaver and Barrett, LLP, West Conshohocken, PA.
Residential mortgage lending is offered by all banks through Fulton
Mortgage Company.
In August, the Corporation announced that it had signed an agreement to
acquire Resource Bankshares Corporation, headquartered in Virginia Beach,
Virginia. Resource Bankshares banking subsidiary, Resource Bank, with
approximately $860 million in assets, operates six community banking offices in
Newport News, Chesapeake, Herndon, Virginia Beach (two locations) and Richmond
in Virginia. In addition, the Corporation operates 14 additional loan production
and residential mortgage offices in Virginia, North Carolina, Maryland and
Florida. The acquisition is expected to be completed on or before April 1, 2004.
Additional information on Fulton Financial Corporation is available on the
Internet at www.fult.com.
Safe Harbor Statement:
This news release may contain forward-looking statements about Fulton Financial
Corporation's future financial performance. Forward-looking statements are
encouraged by the Private Securities Litigation Reform Act of 1995.
Such forward-looking information is based upon certain underlying assumptions,
risks and uncertainties. Because of the possibility of change in the underlying
assumptions, actual results could differ materially from these forward-looking
statements. Risks and uncertainties that may affect future results include:
pricing pressures on loans and deposits, actions of bank and non-bank
competitors, changes in local and national economic conditions, changes in
regulatory requirements, actions of the Federal Reserve Board, the Corporation's
success in merger and acquisition integration, and customers' acceptance of the
Corporation's products and services.
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2003
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