FULTON FINANCIAL CORP - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED SEPTEMBER 30, 2011.

Attached files

file	filename
8-K - FORM 8-K - FULTON FINANCIAL CORP	d244563d8k.htm
EX-99.1 - EARNINGS RELEASE DATED OCTOBER 18, 2011. - FULTON FINANCIAL CORP	d244563dex991.htm

Exhibit 99.2

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

dollars in thousands


										% Change from
	September 30 2011			September 30 2010			June 30 2011			September 30 2010			June 30 2011

ASSETS
Cash and due from banks	$	291,870		$	255,800		$	284,691			14.1	%		2.5	%
Loans held for sale		63,554			103,240			47,133			(38.4	%)		34.8	%
Other interest-earning assets		256,360			193,421			124,967			32.5	%		105.1	%
Investment securities		2,776,557			2,762,238			2,663,044			0.5	%		4.3	%
Loans, net of unearned income		11,895,655			11,950,618			11,852,491			(0.5	%)		0.4	%
Allowance for loan losses		(266,978	)		(281,724	)		(266,683	)		(5.2	%)		0.1	%

Net Loans		11,628,677			11,668,894			11,585,808			(0.3	%)		0.4	%
Premises and equipment		206,170			204,001			207,177			1.1	%		(0.5	%)
Accrued interest receivable		52,460			55,167			51,387			(4.9	%)		2.1	%
Goodwill and intangible assets		545,098			549,170			545,909			(0.7	%)		(0.1	%)
Other assets		475,105			538,842			457,004			(11.8	%)		4.0	%

Total Assets	$	16,295,851		$	16,330,773		$	15,967,120			(0.2	%)		2.1	%


LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	12,637,624		$	12,568,117		$	12,262,895			0.6	%		3.1	%
Short-term borrowings		448,955			471,081			546,581			(4.7	%)		(17.9	%)
Federal Home Loan Bank advances and long-term debt		1,025,505			1,199,513			1,025,537			(14.5	%)		—
Other liabilities		199,108			215,752			178,798			(7.7	%)		11.4	%

Total Liabilities		14,311,192			14,454,463			14,013,811			(1.0	%)		2.1	%
Shareholders’ equity		1,984,659			1,876,310			1,953,309			5.8	%		1.6	%

Total Liabilities and Shareholders’ Equity	$	16,295,851		$	16,330,773		$	15,967,120			(0.2	%)		2.1	%


LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage	$	4,491,155		$	4,346,120		$	4,443,025			3.3	%		1.1	%
Commercial - industrial, financial and agricultural		3,690,164			3,683,577			3,678,858			0.2	%		0.3	%
Real estate - home equity		1,630,880			1,654,359			1,626,545			(1.4	%)		0.3	%
Real estate - residential mortgage		1,041,463			1,001,837			1,023,646			4.0	%		1.7	%
Real estate - construction		648,398			834,266			681,588			(22.3	%)		(4.9	%)
Consumer		327,054			366,927			330,965			(10.9	%)		(1.2	%)
Leasing and other		66,541			63,532			67,864			4.7	%		(1.9	%)

Total Loans, net of unearned income	$	11,895,655		$	11,950,618		$	11,852,491			(0.5	%)		0.4	%

Deposits, by type:
Noninterest-bearing demand	$	2,535,744		$	2,163,807		$	2,445,008			17.2	%		3.7	%
Interest-bearing demand		2,517,124			2,221,213			2,290,478			13.3	%		9.9	%
Savings deposits		3,434,398			3,291,838			3,252,200			4.3	%		5.6	%
Time deposits		4,150,358			4,891,259			4,275,209			(15.1	%)		(2.9	%)

Total Deposits	$	12,637,624		$	12,568,117		$	12,262,895			0.6	%		3.1	%

Short-term borrowings, by type:
Customer repurchase agreements	$	202,154		$	256,977		$	208,948			(21.3	%)		(3.3	%)
Customer short-term promissory notes		170,839			205,240			171,454			(16.8	%)		(0.4	%)
Federal funds purchased		75,962			8,864			166,179			757.0	%		(54.3	%)

Total Short-term borrowings	$	448,955		$	471,081		$	546,581			(4.7	%)		(17.9	%)

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

dollars in thousands, except per-share data


	Quarter Ended									% Change from						Nine Months Ended
	Sep 30			Sep 30			Jun 30			Sep 30			Jun 30			September 30
	2011			2010			2011			2010			2011			2011			2010			% Change

Interest Income:
Interest income	$	173,736		$	185,356		$	174,935			(6.3	%)		(0.7	%)	$	524,365		$	563,624			(7.0	%)
Interest expense		32,243			45,170			34,290			(28.6	%)		(6.0	%)		102,664			145,771			(29.6	%)

Net Interest Income		141,493			140,186			140,645			0.9	%		0.6	%		421,701			417,853			0.9	%
Provision for credit losses		31,000			40,000			36,000			(22.5	%)		(13.9	%)		105,000			120,000			(12.5	%)

Net Interest Income after Provision		110,493			100,186			104,645			10.3	%		5.6	%		316,701			297,853			6.3	%
Other Income:
Service charges on deposit accounts		15,164			14,752			14,332			2.8	%		5.8	%		42,801			44,501			(3.8	%)
Other service charges and fees		12,507			11,540			12,709			8.4	%		(1.6	%)		36,698			33,174			10.6	%
Investment management and trust services		8,914			8,604			9,638			3.6	%		(7.5	%)		27,756			25,347			9.5	%
Mortgage banking income		7,942			12,399			6,049			(35.9	%)		31.3	%		19,454			20,447			(4.9	%)
Investment securities gains (losses)		(443	)		1,826			(335	)		N/M			(32.2	%)		1,507			507			197.2	%
Other		4,777			3,877			4,979			23.2	%		(4.1	%)		14,177			12,194			16.3	%

Total Other Income		48,861			52,998			47,372			(7.8	%)		3.1	%		142,393			136,170			4.6	%
Other Expenses:
Salaries and employee benefits		58,948			54,533			56,070			8.1	%		5.1	%		169,326			161,532			4.8	%
Net occupancy expense		10,790			10,519			10,874			2.6	%		(0.8	%)		33,030			32,688			1.0	%
FDIC insurance expense		3,732			4,709			3,264			(20.7	%)		14.3	%		11,750			14,799			(20.6	%)
Data processing		3,473			3,187			3,214			9.0	%		8.1	%		10,059			9,915			1.5	%
OREO and repossession expense		3,270			2,620			2,575			24.8	%		27.0	%		7,815			7,176			8.9	%
Professional fees		3,247			3,040			3,102			6.8	%		4.7	%		9,198			8,621			6.7	%
Equipment expense		3,032			2,956			3,377			2.6	%		(10.2	%)		9,541			8,710			9.5	%
Marketing		1,923			2,601			1,863			(26.1	%)		3.2	%		6,622			6,702			(1.2	%)
Intangible amortization		953			1,293			1,172			(26.3	%)		(18.7	%)		3,303			3,948			(16.3	%)
Other		17,221			17,253			16,967			(0.2	%)		1.5	%		49,986			49,747			0.5	%

Total Other Expenses		106,589			102,711			102,478			3.8	%		4.0	%		310,630			303,838			2.2	%

Income Before Income Taxes		52,765			50,473			49,539			4.5	%		6.5	%		148,464			130,185			14.0	%
Income tax expense		13,441			12,793			13,154			5.1	%		2.2	%		38,970			33,343			16.9	%

Net Income		39,324			37,680			36,385			4.4	%		8.1	%		109,494			96,842			13.1	%
Preferred stock dividends and discount accretion		—			(6,172	)		—			(100.0	%)		—			—			(16,303	)		(100.0	%)

Net Income Available to Common Shareholders	$	39,324		$	31,508		$	36,385			24.8	%		8.1	%	$	109,494		$	80,539			36.0	%


PER COMMON SHARE:
Net income:
Basic	$	0.20		$	0.16		$	0.18			25.0	%		11.1	%	$	0.55		$	0.43			27.9	%
Diluted		0.20			0.16			0.18			25.0	%		11.1	%		0.55			0.43			27.9	%

Cash dividends	$	0.05		$	0.03		$	0.05			66.7	%		—		$	0.14		$	0.09			55.6	%
Shareholders’ equity		9.93			9.43			9.80			5.3	%		1.3	%		9.93			9.43			5.3	%
Shareholders’ equity (tangible)		7.20			6.67			7.06			7.9	%		2.0	%		7.20			6.67			7.9	%

Weighted average shares (basic)		199,028			198,282			198,772			0.4	%		0.1	%		198,801			188,306			5.6	%
Weighted average shares (diluted)		199,814			198,792			199,527			0.5	%		0.1	%		199,544			188,835			5.7	%
Shares outstanding, end of period		199,891			198,883			199,370			0.5	%		0.3	%		199,891			198,883			0.5	%

SELECTED FINANCIAL RATIOS:
Return on average assets		0.97	%		0.91	%		0.91	%								0.91	%		0.79	%
Return on average common shareholders’ equity		7.89	%		7.75	%		7.53	%								7.55	%		5.37	%
Return on average common shareholders’ equity (tangible)		11.06	%		11.09	%		10.71	%								10.72	%		7.64	%
Net interest margin		3.93	%		3.81	%		3.95	%								3.93	%		3.79	%
Efficiency ratio		54.23	%		51.95	%		52.67	%								53.49	%		53.06	%

N/M - Not meaningful

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands


	Quarter Ended
	September 30, 2011									September 30, 2010									June 30, 2011
	Average Balance			Interest (1)			Yield/ Rate			Average Balance			Interest (1)			Yield/ Rate			Average Balance			Interest (1)			Yield/ Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income	$	11,887,544		$	151,816			5.07	%	$	11,958,145		$	160,125			5.32	%	$	11,883,019		$	151,974			5.13	%
Taxable investment securities		2,142,670			20,166			3.76	%		2,303,692			22,363			3.88	%		2,141,307			20,749			3.88	%
Tax-exempt investment securities		325,420			4,456			5.48	%		345,281			4,961			5.75	%		343,214			4,840			5.64	%
Equity securities		124,893			777			2.48	%		138,993			760			2.18	%		128,258			775			2.42	%

Total Investment Securities		2,592,983			25,399			3.92	%		2,787,966			28,084			4.03	%		2,612,779			26,364			4.04	%
Loans held for sale		37,626			425			4.52	%		78,862			919			4.66	%		36,793			492			5.34	%
Other interest-earning assets		218,135			91			0.17	%		204,601			102			0.20	%		163,548			101			0.25	%

Total Interest-earning Assets		14,736,288			177,731			4.80	%		15,029,574			189,230			5.01	%		14,696,139			178,931			4.88	%
Noninterest-earning assets:
Cash and due from banks		276,063									280,784									278,393
Premises and equipment		206,059									203,995									207,141
Other assets		1,107,107									1,133,469									1,098,116
Less: allowance for loan losses		(274,436	)								(285,801	)								(273,593	)

Total Assets	$	16,051,081								$	16,362,021								$	16,006,196


LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	2,424,646		$	1,262			0.21	%	$	2,129,407		$	1,868			0.35	%	$	2,352,961		$	1,371			0.23	%
Savings deposits		3,329,489			2,564			0.30	%		3,214,558			4,972			0.61	%		3,356,361			3,258			0.39	%
Time deposits		4,224,001			15,858			1.49	%		4,987,212			22,915			1.82	%		4,353,352			17,146			1.58	%

Total Interest-bearing Deposits		9,978,136			19,684			0.78	%		10,331,177			29,755			1.14	%		10,062,674			21,775			0.87	%
Short-term borrowings		443,337			151			0.14	%		489,013			267			0.21	%		455,831			168			0.15	%
Federal Home Loan Bank advances and long-term debt		1,025,546			12,408			4.82	%		1,274,411			15,148			4.73	%		1,025,637			12,347			4.82	%

Total Interest-bearing Liabilities		11,447,019			32,243			1.12	%		12,094,601			45,170			1.48	%		11,544,142			34,290			1.19	%
Noninterest-bearing liabilities:
Demand deposits		2,466,877									2,140,866									2,362,614
Other		159,430									198,922									162,202

Total Liabilities		14,073,326									14,434,389									14,068,958
Shareholders’ equity		1,977,755									1,927,632									1,937,238

Total Liabilities and Shareholders’ Equity	$	16,051,081								$	16,362,021								$	16,006,196


Net interest income/net interest margin (fully taxable equivalent)					145,488			3.93	%					144,060			3.81	%					144,641			3.95	%

Tax equivalent adjustment					(3,995	)								(3,874	)								(3,996	)

Net interest income				$	141,493								$	140,186								$	140,645

(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
	September 30 2011		September 30 2010		June 30 2011		September 30 2010			June 30 2011

Loans, by type:
Real estate - commercial mortgage	$	4,461,646	$	4,341,685	$	4,430,046		2.8	%		0.7	%
Commercial - industrial, financial and agricultural		3,691,516		3,671,128		3,689,877		0.6	%		—
Real estate - home equity		1,628,822		1,643,615		1,623,438		(0.9	%)		0.3	%
Real estate - residential mortgage		1,037,968		998,165		1,023,471		4.0	%		1.4	%
Real estate - construction		668,464		868,497		712,638		(23.0	%)		(6.2	%)
Consumer		329,619		366,719		332,960		(10.1	%)		(1.0	%)
Leasing and other		69,509		68,336		70,589		1.7	%		(1.5	%)


Total Loans, net of unearned income	$	11,887,544	$	11,958,145	$	11,883,019		(0.6	%)		—


Deposits, by type:
Noninterest-bearing demand	$	2,466,877	$	2,140,866	$	2,362,614		15.2	%		4.4	%
Interest-bearing demand		2,424,646		2,129,407		2,352,961		13.9	%		3.0	%
Savings deposits		3,329,489		3,214,558		3,356,361		3.6	%		(0.8	%)
Time deposits		4,224,001		4,987,212		4,353,352		(15.3	%)		(3.0	%)


Total Deposits	$	12,445,013	$	12,472,043	$	12,425,288		(0.2	%)		0.2	%


Short-term borrowings, by type:
Customer repurchase agreements	$	206,824	$	257,510	$	217,657		(19.7	%)		(5.0	%)
Customer short-term promissory notes		170,790		203,158		171,958		(15.9	%)		(0.7	%)
Federal funds purchased and other		65,723		28,345		66,216		131.9	%		(0.7	%)


Total Short-term borrowings	$	443,337	$	489,013	$	455,831		(9.3	%)		(2.7	%)

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands


	Nine Months Ended September 30
	2011									2010
	Average Balance			Interest (1)			Yield/Rate			Average Balance			Interest (1)			Yield/Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income	$	11,897,211		$	455,476			5.12	%	$	11,962,986		$	479,181			5.35	%
Taxable investment securities		2,204,409			62,722			3.79	%		2,449,856			75,658			4.12	%
Tax-exempt investment securities		337,627			14,181			5.60	%		362,656			15,644			5.75	%
Equity securities		128,635			2,304			2.39	%		140,376			2,302			2.19	%

Total Investment Securities		2,670,671			79,207			3.96	%		2,952,888			93,604			4.23	%
Loans held for sale		39,917			1,417			4.73	%		60,535			2,142			4.72	%
Other interest-earning assets		149,910			225			0.20	%		194,575			358			0.25	%

Total Interest-earning Assets		14,757,709			536,325			4.86	%		15,170,984			575,285			5.07	%
Noninterest-earning assets:
Cash and due from banks		271,674									268,567
Premises and equipment		206,856									203,838
Other assets		1,102,608									1,107,733
Less: allowance for loan losses		(276,654	)								(278,190	)

Total Assets	$	16,062,193								$	16,472,932


LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	2,366,944		$	4,069			0.23	%	$	2,044,096		$	5,548			0.36	%
Savings deposits		3,323,050			9,180			0.37	%		3,052,292			15,561			0.68	%
Time deposits		4,368,831			51,496			1.58	%		5,102,822			74,203			1.94	%

Total Interest-bearing Deposits		10,058,825			64,745			0.86	%		10,199,210			95,312			1.25	%
Short-term borrowings		506,620			573			0.15	%		623,123			1,206			0.26	%
Federal Home Loan Bank advances and long-term debt		1,037,437			37,346			4.81	%		1,386,583			49,253			4.74	%

Total Interest-bearing Liabilities		11,602,882			102,664			1.18	%		12,208,916			145,771			1.60	%
Noninterest-bearing liabilities:
Demand deposits		2,356,735									2,065,176
Other		164,144									193,144

Total Liabilities		14,123,761									14,467,236
Shareholders’ equity		1,938,432									2,005,696

Total Liabilities and Shareholders’ Equity	$	16,062,193								$	16,472,932


Net interest income/net interest margin (fully taxable equivalent)					433,661			3.93	%					429,514			3.79	%

Tax equivalent adjustment					(11,960	)								(11,661	)

Net interest income				$	421,701								$	417,853

(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:


	Nine Months Ended September 30
	2011		2010		% Change

Loans, by type:
Real estate - commercial mortgage	$	4,425,867	$	4,322,628		2.4	%
Commercial - industrial, financial and agricultural		3,696,101		3,681,270		0.4	%
Real estate - home equity		1,626,937		1,640,939		(0.9	%)
Real estate - residential mortgage		1,026,367		970,526		5.8	%
Real estate - construction		719,812		913,159		(21.2	%)
Consumer		334,565		363,953		(8.1	%)
Leasing and other		67,562		70,511		(4.2	%)


Total Loans, net of unearned income	$	11,897,211	$	11,962,986		(0.5	%)


Deposits, by type:
Noninterest-bearing demand	$	2,356,735	$	2,065,176		14.1	%
Interest-bearing demand		2,366,944		2,044,096		15.8	%
Savings deposits		3,323,050		3,052,292		8.9	%
Time deposits		4,368,831		5,102,822		(14.4	%)


Total Deposits	$	12,415,560	$	12,264,386		1.2	%


Short-term borrowings, by type:
Customer repurchase agreements	$	212,449	$	256,706		(17.2	%)
Customer short-term promissory notes		177,639		211,158		(15.9	%)
Federal funds purchased and other		116,532		155,259		(24.9	%)


Total Short-term borrowings	$	506,620	$	623,123		(18.7	%)

FULTON FINANCIAL CORPORATION

ASSET QUALITY INFORMATION (UNAUDITED)

dollars in thousands


	Quarter Ended									Nine Months Ended
	Sep 30			Sep 30			June 30			Sep 30
	2011			2010			2011			2011			2010
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period	$	268,633		$	280,377		$	271,156		$	275,498		$	257,553
Loans charged off:
Commercial - industrial, financial and agricultural		(14,840	)		(6,601	)		(15,406	)		(43,582	)		(22,972	)
Real estate - construction		(8,535	)		(23,139	)		(7,468	)		(29,897	)		(52,991	)
Real estate - commercial mortgage		(5,730	)		(4,262	)		(7,074	)		(22,851	)		(10,521	)
Consumer and home equity		(1,792	)		(3,254	)		(2,331	)		(6,882	)		(7,770	)
Real estate - residential mortgage		(1,514	)		(751	)		(7,707	)		(14,217	)		(4,022	)
Leasing and other		(486	)		(790	)		(689	)		(1,672	)		(2,045	)

Total loans charged off		(32,897	)		(38,797	)		(40,675	)		(119,101	)		(100,321	)
Recoveries of loans charged off:
Commercial - industrial, financial and agricultural		695			2,088			1,003			2,089			3,681
Real estate - construction		595			189			79			1,237			1,085
Real estate - commercial mortgage		249			571			191			1,975			856
Consumer and home equity		314			246			435			1,059			1,286
Real estate - residential mortgage		36			3			190			270			7
Leasing and other		192			197			254			790			727

Recoveries of loans previously charged off		2,081			3,294			2,152			7,420			7,642

Net loans charged off		(30,816	)		(35,503	)		(38,523	)		(111,681	)		(92,679	)
Provision for credit losses		31,000			40,000			36,000			105,000			120,000

Balance at end of period	$	268,817		$	284,874		$	268,633		$	268,817		$	284,874


Net charge-offs to average loans (annualized)		1.04	%		1.19	%		1.30	%		1.25	%		1.03	%


NON-PERFORMING ASSETS:
Non-accrual loans	$	269,176		$	284,408		$	274,973
Loans 90 days past due and accruing		41,427			58,164			35,869

Total non-performing loans		310,603			342,572			310,842
Other real estate owned		37,399			30,195			37,493

Total non-performing assets	$	348,002		$	372,767		$	348,335


NON-PERFORMING LOANS, BY TYPE:
Real estate - commercial mortgage	$	102,928		$	100,286		$	102,724
Commercial - industrial, financial and agricultural		92,385			85,103			94,855
Real estate - construction		52,381			91,591			58,381
Real estate - residential mortgage		48,086			52,038			43,200
Real estate - home equity		12,097			11,272			9,440
Consumer		2,614			1,882			2,090
Leasing		112			400			152

Total non-performing loans	$	310,603		$	342,572		$	310,842

DELINQUENCY RATES, BY TYPE:


	September 30, 2011									September 30, 2010									June 30, 2011
	31-89 Days			³90 Days (1)			Total			31-89 Days			³90 Days (1)			Total			31-89 Days			³90 Days (1)			Total
Real estate - commercial mortgage		0.84	%		2.29	%		3.13	%		0.56	%		2.31	%		2.87	%		0.57	%		2.32	%		2.89	%
Commercial - industrial, financial and agricultural		0.57	%		2.50	%		3.07	%		0.77	%		2.31	%		3.08	%		0.54	%		2.58	%		3.12	%
Real estate - construction		1.28	%		8.08	%		9.36	%		1.04	%		10.98	%		12.02	%		0.62	%		8.56	%		9.18	%
Real estate - residential mortgage		3.02	%		4.62	%		7.64	%		3.92	%		5.20	%		9.12	%		3.37	%		4.22	%		7.59	%
Real estate - home equity		0.74	%		0.74	%		1.48	%		0.74	%		0.68	%		1.42	%		0.74	%		0.58	%		1.32	%
Consumer, leasing and other		1.71	%		0.69	%		2.40	%		1.42	%		0.53	%		1.95	%		1.22	%		0.56	%		1.78	%

Total		0.99	%		2.61	%		3.60	%		1.00	%		2.86	%		3.86	%		0.85	%		2.63	%		3.48	%

(1)	Includes non-accrual loans

ASSET QUALITY RATIOS:


	Sep 30 2011			Sep 30 2010			June 30 2011
Non-accrual loans to total loans		2.26	%		2.38	%		2.32	%
Non-performing assets to total loans and OREO		2.92	%		3.11	%		2.93	%
Non-performing assets to total assets		2.14	%		2.28	%		2.18	%
Allowance for credit losses to loans outstanding		2.26	%		2.38	%		2.27	%
Allowance for credit losses to non-performing loans		86.55	%		83.16	%		86.42	%
Non-performing assets to tangible common shareholders’ equity and allowance for credit losses		20.37	%		23.12	%		20.78	%

Attached files

Stock widget

Investing forum

FULTON FINANCIAL CORP Reports