Exhibit 99.2
FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
Quarter Ended
September 30 Variance
------------------------------ -----------------------------
2003 2002 $ %
-------------- ------------ -------------- -----------
INCOME SUMMARY: (in thousands, except per-share data)
- ---------------
Interest income $ 105,907 $ 117,156 $ (11,249) -9.6%
Interest expense 32,128 39,318 (7,190) -18.3%
----------- ----------- -----------
Net Interest Income 73,779 77,838 (4,059) -5.2%
Provision for loan losses 2,190 4,370 (2,180) -49.9%
Investment securities gains 6,990 2,677 4,313 161.1%
Other income 30,523 28,723 1,800 6.3%
Other expenses 59,550 56,573 2,977 5.3%
----------- ----------- -----------
Income Before Income Taxes 49,552 48,295 1,257 2.6%
Income taxes 15,170 14,474 696 4.8%
----------- ----------- -----------
Net Income $ 34,382 $ 33,821 $ 561 1.7%
=========== =========== ===========
Fully taxable equivalent (FTE) net interest income $ 76,242 $ 80,163 $ (3,921) -4.9%
PER-SHARE DATA:
- ---------------
Net Income:
Basic $ 0.32 $ 0.31 $ 0.01 3.2%
Diluted 0.32 0.31 0.01 3.2%
Cash Dividends 0.160 0.143 0.017 11.9%
ENDING BALANCES:
- ----------------
Total assets $ 9,297,946 $ 8,103,690 $ 1,194,256 14.7%
Loans, net of unearned income 5,844,788 5,329,501 515,287 9.7%
Deposits 6,834,167 6,259,204 574,963 9.2%
Short-term borrowings 806,814 384,316 422,498 109.9%
Long-term debt 626,841 456,396 170,445 37.3%
Shareholders' equity 927,476 853,193 74,283 8.7%
AVERAGE BALANCES:
- -----------------
Total assets $ 9,016,543 $ 7,937,303 $ 1,079,240 13.6%
Loans, net of unearned income 5,683,795 5,378,685 305,110 5.7%
Deposits 6,704,347 6,139,954 564,393 9.2%
Short-term borrowings 695,550 387,159 308,391 79.7%
Long-term debt 595,466 456,602 138,864 30.4%
Shareholders' equity 922,586 858,673 63,913 7.4%
FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
Nine Months Ended
September 30 Variance
------------------------------ -----------------------------
2003 2002 $ %
-------------- ------------ -------------- -----------
INCOME SUMMARY: (in thousands, except per-share data)
- ---------------
Interest income $ 323,257 $ 353,842 $ (30,585) -8.6%
Interest expense 99,470 120,116 (20,646) -17.2%
---------- ---------- ----------
Net Interest Income 223,787 233,726 (9,939) -4.3%
Provision for loan losses 7,515 9,830 (2,315) -23.6%
Investment securities gains 14,028 6,047 7,981 132.0%
Other income 89,684 78,755 10,929 13.9%
Other expenses 173,497 168,005 5,492 3.3%
---------- ---------- ----------
Income Before Income Taxes 146,487 140,693 5,794 4.1%
Income taxes 44,000 41,652 2,348 5.6%
---------- ---------- ----------
Net Income $ 102,487 $ 99,041 $ 3,446 3.5%
========== ========== ==========
Fully taxable equivalent (FTE) net interest income $ 231,077 $ 240,564 $ (9,487) -3.9%
PER-SHARE DATA:
- ---------------
Net Income:
Basic $ 0.96 $ 0.92 $ 0.04 4.3%
Diluted 0.96 0.91 0.05 5.5%
Cash Dividends 0.463 0.415 0.048 11.6%
AVERAGE BALANCES:
- -----------------
Total assets $8,576,394 $7,808,880 $ 767,514 9.8%
Loans, net of unearned income 5,473,055 5,398,395 74,660 1.4%
Deposits 6,401,222 5,991,270 409,952 6.8%
Short-term borrowings 634,745 425,280 209,465 49.3%
Long-term debt 559,129 459,402 99,727 21.7%
Shareholders' equity 884,400 834,431 49,969 6.0%
FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
Quarter Ended
----------------------------
September 30 June 30 Variance
-----------------------------
2003 2003 $ %
------------ ------------ ------------ ------------
INCOME SUMMARY: (in thousands, except per-share data)
- ---------------
Interest income $ 105,907 $ 107,166 $ (1,259) -1.2%
Interest expense 32,128 32,796 (668) -2.0%
------------ ------------ ------------
Net Interest Income 73,779 74,370 (591) -0.8%
Provision for loan losses 2,190 2,490 (300) -12.0%
Investment securities gains 6,990 4,809 2,181 45.4%
Other income 30,523 29,725 798 2.7%
Other expenses 59,550 58,065 1,485 2.6%
------------ ------------ ------------
Income Before Income Taxes 49,552 48,349 1,203 2.5%
Income taxes 15,170 14,287 883 6.2%
------------ ------------ ------------
Net Income $ 34,382 $ 34,062 $ 320 0.9%
============ ============ ============
Fully taxable equivalent (FTE) net interest income $ 76,242 $ 76,774 $ (532) -0.7%
PER-SHARE DATA:
- ---------------
Net Income:
Basic $ 0.32 0.32 $ - 0.0%
Diluted 0.32 0.32 - 0.0%
Cash Dividends 0.160 0.160 - 0.0%
ENDING BALANCES:
- ----------------
Total assets $ 9,297,946 $ 8,619,287 $ 678,659 7.9%
Loans, net of unearned income 5,844,788 5,391,398 453,390 8.4%
Deposits 6,834,167 6,437,023 397,144 6.2%
Short-term borrowings 806,814 599,995 206,819 34.5%
Long-term debt 626,841 534,456 92,385 17.3%
Shareholders' equity 927,476 873,659 53,817 6.2%
AVERAGE BALANCES:
- -----------------
Total assets $ 9,016,543 $ 8,422,985 $ 593,558 7.0%
Loans, net of unearned income 5,683,795 5,384,692 299,103 5.6%
Deposits 6,704,347 6,324,543 379,804 6.0%
Short-term borrowings 695,550 596,312 99,238 16.6%
Long-term debt 595,466 540,413 55,053 10.2%
Shareholders' equity 922,586 865,336 57,250 6.6%
FULTON FINANCIAL CORPORATION
CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)
September 30
--------------------------
2003 2002
----------- -----------
(in thousands)
ASSETS
- ------
Cash and due from banks $ 333,253 $ 311,611
Interest-bearing deposits 7,514 4,830
Federal funds sold 17,657 -
Mortgage loans held for sale 53,707 44,500
Investment securities 2,705,463 2,149,118
Loans, net of unearned income 5,844,788 5,329,501
Less: Allowance for loan losses (77,857) (72,689)
----------- -----------
Net Loans 5,766,931 5,256,812
Premises and equipment 121,822 122,718
Accrued interest receivable 31,385 40,533
Goodwill 126,026 61,048
Other assets 134,188 112,520
----------- -----------
Total Assets $ 9,297,946 $ 8,103,690
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Deposits:
Noninterest bearing $ 1,259,811 $ 1,122,212
Interest-bearing 5,574,356 5,136,992
----------- -----------
Total Deposits 6,834,167 6,259,204
Short-term borrowings:
Securities sold under agreements to repurchase 396,744 328,176
Federal funds purchased 405,000 50,500
Demand notes of U.S. Treasury 5,070 5,640
----------- -----------
Total Short-Term Borrowings 806,814 384,316
Accrued interest payable 26,766 30,458
Other liabilities 75,882 120,123
Long-term debt 626,841 456,396
----------- -----------
Total Liabilities 8,370,470 7,250,497
----------- -----------
Shareholders' equity:
Common stock 284,962 259,943
Additional paid in capital 636,934 481,188
Retained earnings 99,014 119,723
Accumulated other comprehensive income 4,569 27,414
Less: Treasury stock, at cost (98,003) (35,075)
----------- -----------
Total Shareholders' Equity 927,476 853,193
----------- -----------
Total Liabilities and Shareholders' Equity $ 9,297,946 $ 8,103,690
=========== ===========
LOANS AND DEPOSITS DETAIL:
- --------------------------
Loans, by type:
Commercial, financial and agricultural $ 1,723,713 $ 1,606,895
Real estate - construction 309,122 242,519
Real estate - mortgage 3,207,063 2,838,764
Consumer 537,512 564,992
Leasing and other 67,378 76,331
----------- -----------
Total Loans, net of unearned income $ 5,844,788 $ 5,329,501
=========== ===========
Deposits, by type:
Noninterest-bearing demand $ 1,259,811 $ 1,122,212
Interest-bearing demand 1,266,762 991,931
Savings deposits 1,770,143 1,522,634
Time deposits 2,537,451 2,622,427
----------- -----------
Total Deposits $ 6,834,167 $ 6,259,204
=========== ===========
FULTON FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Quarter Ended Nine Months Ended
September 30 September 30
--------------------------- --------------------------
2003 2002 2003 2002
--------- -------- -------- --------
(in thousands)
Interest Income:
Loans, including fees $ 85,159 $ 92,072 $254,812 $280,977
Investment securities:
Taxable 16,512 21,489 55,636 62,303
Tax-exempt 2,740 2,489 7,786 7,361
Dividends 904 1,015 3,205 2,971
Other interest income 592 91 1,818 230
-------- -------- -------- --------
Total Interest Income 105,907 117,156 323,257 353,842
Interest Expense:
Deposits 22,773 31,353 72,480 95,767
Short-term borrowings 1,515 1,510 4,960 5,080
Long-term debt 7,840 6,455 22,030 19,269
-------- -------- -------- --------
Total Interest Expense 32,128 39,318 99,470 120,116
-------- -------- -------- --------
Net Interest Income 73,779 77,838 223,787 233,726
Provision for Loan Losses 2,190 4,370 7,515 9,830
-------- -------- -------- --------
Net Interest Income after Provision 71,589 73,468 216,272 223,896
Other Income:
Investment management & trust services 8,527 6,890 25,679 21,633
Service charges on deposit accounts 9,810 9,506 28,527 27,590
Other service charges and fees 4,782 4,693 14,076 13,071
Mortgage banking income 6,100 5,807 17,892 11,871
Investment securities gains 6,990 2,677 14,028 6,047
Other 1,304 1,827 3,510 4,590
-------- -------- -------- --------
Total Other Income 37,513 31,400 103,712 84,802
Other Expenses:
Salaries and employee benefits 35,516 33,336 103,330 97,001
Net occupancy expense 4,982 4,556 14,869 13,111
Equipment expense 2,618 2,859 7,886 8,374
Data processing 2,864 3,018 8,504 9,181
Advertising 1,570 1,336 4,589 4,989
Intangible amortization 622 359 1,341 1,078
Other 11,378 11,109 32,978 34,271
-------- -------- -------- --------
Total Other Expenses 59,550 56,573 173,497 168,005
-------- -------- -------- --------
Income Before Income Taxes 49,552 48,295 146,487 140,693
Income Taxes 15,170 14,474 44,000 41,652
-------- -------- -------- --------
Net Income $ 34,382 $ 33,821 $102,487 $ 99,041
======== ======== ======== ========
FULTON FINANCIAL CORPORATION
PER-SHARE INFORMATION AND SELECTED FINANCIAL RATIOS (UNAUDITED)
Quarter Ended Nine Months Ended
September 30 September 30
------------------------ ---------------------------
2003 2002 2003 2002
--------- ----------- ----------- -----------
PER-SHARE INFORMATION:
- ----------------------
Net income:
Basic $ 0.32 $ 0.31 $ 0.96 $ 0.92
Diluted 0.32 0.31 0.96 0.91
Cash Dividends $ 0.160 $ 0.143 $ 0.463 $ 0.415
Book Value 8.54 7.97 - -
Tangible Book Value 7.23 7.29 - -
Weighted average shares (basic) 107,856 107,983 106,412 108,222
Weighted average shares (diluted) 108,731 108,703 107,189 108,962
Shares outstanding, end of period 108,561 107,075 - -
FINANCIAL RATIOS:
- -----------------
Return on Average Assets 1.51% 1.69% 1.60% 1.70%
Return on Average Equity 14.79% 15.63% 15.49% 15.87%
Net Interest Margin 3.62% 4.33% 3.86% 4.42%
Efficiency Ratio 55.2% 51.6% 53.7% 52.3%
Average Equity to Average Assets 10.2% 10.8% 10.3% 10.7%
FULTON FINANCIAL CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET (UNAUDITED)
Quarter Ended Nine Months Ended
September 30 September 30
--------------------------- ---------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
ASSETS (In thousands)
- ------
Interest-earning assets:
Loans and leases $ 5,683,795 $ 5,378,685 $ 5,473,055 $ 5,398,395
Taxable investment securities 2,218,352 1,627,876 2,074,947 1,519,411
Tax-exempt investment securities 287,297 233,740 260,266 228,753
Equity securities 128,064 115,390 129,895 109,197
Short-term investments 51,398 19,891 48,960 16,895
----------- ----------- ----------- -----------
Total Interest-Earning Assets 8,368,906 7,375,582 7,987,123 7,272,651
Non-interest earning assets:
Cash and due from banks 302,248 262,971 279,650 248,964
Premises and equipment 125,835 123,775 123,681 123,834
Other assets 296,300 249,111 260,122 236,649
Less: Allowance for loan losses (76,746) (74,136) (74,182) (73,218)
----------- ----------- ----------- -----------
Total Assets $ 9,016,543 $ 7,937,303 $ 8,576,394 $ 7,808,880
=========== =========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Interest-bearing liabilities:
Demand deposits $ 1,213,594 $ 939,683 $ 1,116,959 $ 870,078
Savings deposits 1,709,803 1,534,828 1,614,721 1,506,714
Time deposits 2,522,767 2,599,115 2,498,711 2,577,925
----------- ----------- ----------- -----------
Total Interest-Bearing Deposits 5,446,164 5,073,626 5,230,391 4,954,717
Short-term borrowings 695,550 387,159 634,745 425,280
Long-term debt 595,466 456,602 559,129 459,402
----------- ----------- ----------- -----------
Total Interest-Bearing Liabilities 6,737,180 5,917,387 6,424,265 5,839,399
Noninterest-bearing liabilities:
Demand deposits 1,258,183 1,066,328 1,170,831 1,036,553
Other 98,594 94,915 96,898 98,497
----------- ----------- ----------- -----------
Total Liabilities 8,093,957 7,078,630 7,691,994 6,974,449
Shareholders' equity 922,586 858,673 884,400 834,431
----------- ----------- ----------- -----------
Total Liabilities and Shareholders' Equity $ 9,016,543 $ 7,937,303 $ 8,576,394 $ 7,808,880
=========== =========== =========== ===========
AVERAGE YIELDS ON INTEREST-EARNING ASSETS:
- ------------------------------------------
Loans and leases 5.94% 6.79% 6.22% 6.96%
Taxable investment securities 2.95% 5.24% 3.58% 5.48%
Tax-exempt investment securities 3.78% 4.22% 4.00% 4.30%
Equity securities 2.80% 3.49% 3.30% 3.64%
Short-term investments 4.57% 1.82% 4.96% 1.82%
----------- ----------- ----------- -----------
Total Interest-Earning Assets 5.02% 6.30% 5.41% 6.50%
=========== =========== =========== ===========
AVERAGE COSTS OF INTEREST-BEARING LIABILITIES:
- ----------------------------------------------
Demand deposits 0.47% 0.83% 0.54% 0.71%
Savings deposits 0.57% 1.12% 0.67% 1.13%
Time deposits 2.97% 3.82% 3.20% 4.07%
Short-term borrowings 0.86% 1.55% 1.04% 1.60%
Long-term debt 5.22% 5.61% 5.27% 5.61%
----------- ----------- ----------- -----------
Total Interest-Bearing Liabilities 1.89% 2.64% 2.07% 2.75%
=========== =========== =========== ===========
NET INTEREST MARGIN (FTE) 3.62% 4.33% 3.86% 4.42%
=========== =========== =========== ===========
FULTON FINANCIAL CORPORATION
LOAN QUALITY INFORMATION (UNAUDITED)
Quarter Ended Nine Months Ended
September 30 September 30
-------------------- --------------------
2003 2002 2003 2002
-------- -------- -------- --------
(in thousands)
Gross Charge-offs $ 2,854 $ 5,297 $ 9,765 $ 11,860
Recoveries 807 815 2,713 2,847
-------- -------- -------- --------
Net Charge-offs $ 2,047 $ 4,482 $ 7,052 $ 9,013
======== ======== ======== ========
Net Charge-offs to average loans 0.14% 0.33% 0.17% 0.22%
-------- -------- -------- --------
Non-Accrual Loans $ 27,155 $ 29,698
Accruing Loans 90+ Days Overdue 10,286 15,872
Other Real Estate Owned 952 1,614
-------- --------
Total Non-Performing Assets $ 38,393 $ 47,184
======== ========
Non-accrual loans to total loans 0.46% 0.56%
Non-performing assets to total loans and OREO 0.66% 0.89%
Non-performing assets to total assets 0.41% 0.58%
Allowance to Loans 1.33% 1.36%
FULTON FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Quarter Ended
------------------------
September 30 June 30
2003 2003
----------- --------
(in thousands)
Interest Income:
Loans, including fees $ 85,159 $ 84,541
Investment securities:
Taxable 16,512 18,390
Tax-exempt 2,740 2,526
Dividends 904 1,153
Other interest income 592 556
-------- --------
Total Interest Income 105,907 107,166
Interest Expense:
Deposits 22,773 24,000
Short-term borrowings 1,515 1,692
Long-term debt 7,840 7,104
-------- --------
Total Interest Expense 32,128 32,796
-------- --------
Net Interest Income 73,779 74,370
Provision for Loan Losses 2,190 2,490
-------- --------
Net Interest Income after Provision 71,589 71,880
Other Income:
Investment management & trust services 8,527 8,809
Service charges on deposit accounts 9,810 9,501
Other service charges and fees 4,782 4,708
Mortgage banking income 6,100 5,841
Investment securities gains 6,990 4,809
Other 1,304 866
-------- --------
Total Other Income 37,513 34,534
Other Expenses:
Salaries and employee benefits 35,516 34,494
Net occupancy expense 4,982 4,807
Equipment expense 2,618 2,588
Data processing 2,864 2,776
Advertising 1,570 1,787
Intangible amortization 622 360
Other 11,378 11,253
-------- --------
Total Other Expenses 59,550 58,065
-------- --------
Income Before Income Taxes 49,552 48,349
Income Taxes 15,170 14,287
-------- --------
Net Income $ 34,382 $ 34,062
======== ========
FULTON FINANCIAL CORPORATION
PER-SHARE INFORMATION AND SELECTED FINANCIAL RATIOS (UNAUDITED)
Quarter Ended
------------------------
September 30 June 30
2003 2003
------------ -------
PER-SHARE INFORMATION:
- ----------------------
Net income:
Basic $ 0.32 $ 0.32
Diluted 0.32 0.32
Cash Dividends $ 0.160 $ 0.160
Book Value 8.54 8.29
Tangible Book Value 7.23 7.61
Weighted average shares (basic) 107,856 105,437
Weighted average shares (diluted) 108,731 106,178
Shares outstanding, end of period 108,561 105,358
FINANCIAL RATIOS:
- -----------------
Return on Average Assets 1.51% 1.62%
Return on Average Equity 14.79% 15.79%
Net Interest Margin 3.62% 3.91%
Efficiency Ratio 55.2% 54.2%
Average Equity to Average Assets 10.2% 10.3%
FULTON FINANCIAL CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET (UNAUDITED)
Quarter Ended
----------------------------
September 30 June 30
2003 2003
------------ -----------
ASSETS (In thousands)
- ------
Interest-earning assets:
Loans and leases $ 5,683,795 $ 5,384,692
Taxable investment securities 2,218,352 2,044,602
Tax-exempt investment securities 287,297 251,813
Equity securities 128,064 128,378
Short-term investments 51,398 40,526
----------- -----------
Total Interest-Earning Assets 8,368,906 7,850,011
Non-interest earning assets:
Cash and due from banks 302,248 278,657
Premises and equipment 125,835 121,811
Other assets 296,300 245,293
Less: Allowance for loan losses (76,746) (72,787)
----------- -----------
Total Assets $ 9,016,543 $ 8,422,985
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Interest-bearing liabilities:
Demand deposits $ 1,213,594 $ 1,085,855
Savings deposits 1,709,803 1,596,578
Time deposits 2,522,767 2,461,038
----------- -----------
Total Interest-Bearing Deposits 5,446,164 5,143,471
Short-term borrowings 695,550 596,312
Long-term debt 595,466 540,413
----------- -----------
Total Interest-Bearing Liabilities 6,737,180 6,280,196
Noninterest-bearing liabilities:
Demand deposits 1,258,183 1,181,072
Other 98,594 96,381
----------- -----------
Total Liabilities 8,093,957 7,557,649
Shareholders' equity 922,586 865,336
----------- -----------
Total Liabilities and Shareholders' Equity $ 9,016,543 $ 8,422,985
=========== ===========
AVERAGE YIELDS ON INTEREST-EARNING ASSETS:
- ------------------------------------------
Loans and leases 5.94% 6.30%
Taxable investment securities 2.95% 3.61%
Tax-exempt investment securities 3.78% 4.02%
Equity securities 2.80% 3.60%
Short-term investments 4.57% 5.50%
----------- -----------
Total Interest-Earning Assets 5.02% 5.48%
=========== ===========
AVERAGE COSTS OF INTEREST-BEARING LIABILITIES:
- ----------------------------------------------
Demand deposits 0.47% 0.55%
Savings deposits 0.57% 0.69%
Time deposits 2.97% 3.22%
Short-term borrowings 0.86% 1.14%
Long-term debt 5.22% 5.27%
----------- -----------
Total Interest-Bearing Liabilities 1.89% 2.09%
=========== ===========
NET INTEREST MARGIN (FTE) 3.62% 3.91%
=========== ===========
FULTON FINANCIAL CORPORATION
LOAN QUALITY INFORMATION (UNAUDITED)
Quarter Ended
-------------------------
September 30 June 30
2003 2003
------------ --------
(in thousands)
Gross Charge-offs $ 2,854 $ 2,962
Recoveries 807 926
------- -------
Net Charge-offs $ 2,047 $ 2,036
======= =======
Net Charge-offs to average loans 0.14% 0.15%
------- -------
Non-Accrual Loans $27,155 $26,811
Accruing Loans 90+ Days Overdue 10,286 11,266
Other Real Estate Owned 952 808
------- -------
Total Non-Performing Assets $38,393 $38,885
======= =======
Non-accrual loans to total loans 0.46% 0.50%
Non-performing assets to total loans and OREO 0.66% 0.72%
Non-performing assets to total assets 0.41% 0.45%
Allowance to Loans 1.33% 1.34%