Attached files
| file | filename |
|---|---|
| 8-K - 8-K - FULTON FINANCIAL CORP | a8-k12x31x13.htm |
| EX-99.1 - EARNINGS RELEASE DATED JANUARY 21, 2014 - FULTON FINANCIAL CORP | exhibit99112-31x13.htm |
Exhibit 99.2 | ||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||
dollars in thousands | ||||||||||||||||||
% Change from | ||||||||||||||||||
December 31 | December 31 | September 30 | December 31 | September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | ||||||||||||||
ASSETS | ||||||||||||||||||
Cash and due from banks | $ | 218,540 | $ | 256,300 | $ | 262,938 | (14.7 | )% | (16.9 | )% | ||||||||
Other interest-earning assets | 248,161 | 244,959 | 308,924 | 1.3 | % | (19.7 | )% | |||||||||||
Loans held for sale | 21,351 | 67,899 | 39,273 | (68.6 | )% | (45.6 | )% | |||||||||||
Investment securities | 2,568,434 | 2,721,082 | 2,597,436 | (5.6 | )% | (1.1 | )% | |||||||||||
Loans, net of unearned income | 12,782,220 | 12,146,971 | 12,780,899 | 5.2 | % | — | ||||||||||||
Allowance for loan losses | (202,780 | ) | (223,903 | ) | (210,486 | ) | (9.4 | )% | (3.7 | )% | ||||||||
Net loans | 12,579,440 | 11,923,068 | 12,570,413 | 5.5 | % | 0.1 | % | |||||||||||
Premises and equipment | 226,021 | 227,723 | 227,299 | (0.7 | )% | (0.6 | )% | |||||||||||
Accrued interest receivable | 44,037 | 45,786 | 44,715 | (3.8 | )% | (1.5 | )% | |||||||||||
Goodwill and intangible assets | 533,076 | 535,563 | 533,918 | (0.5 | )% | (0.2 | )% | |||||||||||
Other assets | 495,574 | 510,717 | 465,855 | (3.0 | )% | 6.4 | % | |||||||||||
Total Assets | $ | 16,934,634 | $ | 16,533,097 | $ | 17,050,771 | 2.4 | % | (0.7 | )% | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Deposits | $ | 12,491,186 | $ | 12,484,163 | $ | 12,721,121 | 0.1 | % | (1.8 | )% | ||||||||
Short-term borrowings | 1,258,629 | 868,399 | 1,198,577 | 44.9 | % | 5.0 | % | |||||||||||
Other liabilities | 238,048 | 204,626 | 212,987 | 16.3 | % | 11.8 | % | |||||||||||
FHLB advances and long-term debt | 883,584 | 894,253 | 889,122 | (1.2 | )% | (0.6 | )% | |||||||||||
Total Liabilities | 14,871,447 | 14,451,441 | 15,021,807 | 2.9 | % | (1.0 | )% | |||||||||||
Shareholders' equity | 2,063,187 | 2,081,656 | 2,028,964 | (0.9 | )% | 1.7 | % | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 16,934,634 | $ | 16,533,097 | $ | 17,050,771 | 2.4 | % | (0.7 | )% | ||||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||
Loans, by type: | ||||||||||||||||||
Real estate - commercial mortgage | $ | 5,101,922 | $ | 4,664,426 | $ | 5,063,373 | 9.4 | % | 0.8 | % | ||||||||
Commercial - industrial, financial and agricultural | 3,628,420 | 3,612,065 | 3,645,270 | 0.5 | % | (0.5 | )% | |||||||||||
Real estate - home equity | 1,764,197 | 1,632,390 | 1,773,554 | 8.1 | % | (0.5 | )% | |||||||||||
Real estate - residential mortgage | 1,337,380 | 1,257,432 | 1,327,469 | 6.4 | % | 0.7 | % | |||||||||||
Real estate - construction | 573,672 | 584,118 | 577,342 | (1.8 | )% | (0.6 | )% | |||||||||||
Consumer | 283,124 | 309,864 | 296,142 | (8.6 | )% | (4.4 | )% | |||||||||||
Leasing and other | 93,505 | 86,676 | 97,749 | 7.9 | % | (4.3 | )% | |||||||||||
Total Loans, net of unearned income | $ | 12,782,220 | $ | 12,146,971 | $ | 12,780,899 | 5.2 | % | — | |||||||||
Deposits, by type: | ||||||||||||||||||
Noninterest-bearing demand | $ | 3,283,172 | $ | 3,009,966 | $ | 3,338,075 | 9.1 | % | (1.6 | )% | ||||||||
Interest-bearing demand | 2,945,210 | 2,755,603 | 2,986,549 | 6.9 | % | (1.4 | )% | |||||||||||
Savings deposits | 3,344,882 | 3,335,256 | 3,371,923 | 0.3 | % | (0.8 | )% | |||||||||||
Time deposits | 2,917,922 | 3,383,338 | 3,024,574 | (13.8 | )% | (3.5 | )% | |||||||||||
Total Deposits | $ | 12,491,186 | $ | 12,484,163 | $ | 12,721,121 | 0.1 | % | (1.8 | )% | ||||||||
Short-term borrowings, by type: | ||||||||||||||||||
Customer repurchase agreements | $ | 175,621 | $ | 156,238 | $ | 209,800 | 12.4 | % | (16.3 | )% | ||||||||
Customer short-term promissory notes | 100,572 | 119,691 | 95,503 | (16.0 | )% | 5.3 | % | |||||||||||
Federal funds purchased | 582,436 | 592,470 | 493,274 | (1.7 | )% | 18.1 | % | |||||||||||
Short-term FHLB advances | 400,000 | — | 400,000 | N/M | — | |||||||||||||
Total Short-term Borrowings | $ | 1,258,629 | $ | 868,399 | $ | 1,198,577 | 44.9 | % | 5.0 | % | ||||||||
N/M - Not Meaningful | ||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||||||||||||||||||
in thousands, except per-share data and percentages | ||||||||||||||||||||||||||||||||||
Quarter Ended | % Change from | Year ended | ||||||||||||||||||||||||||||||||
Dec 31 | Dec 31 | Sep 30 | Dec 31 | Sep 30 | Dec 31 | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2013 | 2012 | % Change | |||||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||||||||||
Interest income | $ | 152,457 | $ | 155,560 | $ | 152,832 | (2.0 | )% | (0.2 | )% | $ | 609,689 | $ | 647,496 | (5.8 | )% | ||||||||||||||||||
Interest expense | 19,505 | 23,338 | 20,299 | (16.4 | )% | (3.9 | )% | 82,495 | 103,168 | (20.0 | )% | |||||||||||||||||||||||
Net Interest Income | 132,952 | 132,222 | 132,533 | 0.6 | % | 0.3 | % | 527,194 | 544,328 | (3.1 | )% | |||||||||||||||||||||||
Provision for credit losses | 2,500 | 17,500 | 9,500 | (85.7 | )% | (73.7 | )% | 40,500 | 94,000 | (56.9 | )% | |||||||||||||||||||||||
Net Interest Income after Provision | 130,452 | 114,722 | 123,033 | 13.7 | % | 6.0 | % | 486,694 | 450,328 | 8.1 | % | |||||||||||||||||||||||
Non-Interest Income: | ||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 12,770 | 15,642 | 13,938 | (18.4 | )% | (8.4 | )% | 55,470 | 61,502 | (9.8 | )% | |||||||||||||||||||||||
Investment management and trust services | 10,589 | 9,611 | 10,420 | 10.2 | % | 1.6 | % | 41,706 | 38,239 | 9.1 | % | |||||||||||||||||||||||
Other service charges and fees | 9,421 | 11,164 | 9,518 | (15.6 | )% | (1.0 | )% | 36,957 | 44,345 | (16.7 | )% | |||||||||||||||||||||||
Mortgage banking income | 4,363 | 12,813 | 7,123 | (65.9 | )% | (38.7 | )% | 30,656 | 44,600 | (31.3 | )% | |||||||||||||||||||||||
Investment securities gains | 33 | 195 | 2,633 | (83.1 | )% | (98.7 | )% | 8,004 | 3,026 | 164.5 | % | |||||||||||||||||||||||
Gain on Sale of Global Exchange | — | 6,215 | — | (100.0 | )% | — | — | 6,215 | (100.0 | )% | ||||||||||||||||||||||||
Other | 3,556 | 3,883 | 3,725 | (8.4 | )% | (4.5 | )% | 14,871 | 18,485 | (19.6 | )% | |||||||||||||||||||||||
Total Non-Interest Income | 40,732 | 59,523 | 47,357 | (31.6 | )% | (14.0 | )% | 187,664 | 216,412 | (13.3 | )% | |||||||||||||||||||||||
Non-Interest Expense: | ||||||||||||||||||||||||||||||||||
Salaries and employee benefits | 65,194 | 61,303 | 63,344 | 6.3 | % | 2.9 | % | 253,240 | 243,915 | 3.8 | % | |||||||||||||||||||||||
Net occupancy expense | 12,134 | 11,362 | 11,519 | 6.8 | % | 5.3 | % | 46,944 | 44,663 | 5.1 | % | |||||||||||||||||||||||
Other outside services | 5,633 | 4,138 | 5,048 | 36.1 | % | 11.6 | % | 18,856 | 17,752 | 6.2 | % | |||||||||||||||||||||||
Equipment expense | 3,972 | 3,873 | 3,646 | 2.6 | % | 8.9 | % | 15,419 | 14,243 | 8.3 | % | |||||||||||||||||||||||
Data processing | 3,386 | 3,713 | 4,757 | (8.8 | )% | (28.8 | )% | 16,555 | 14,936 | 10.8 | % | |||||||||||||||||||||||
Professional fees | 3,379 | 3,228 | 3,329 | 4.7 | % | 1.5 | % | 13,150 | 11,522 | 14.1 | % | |||||||||||||||||||||||
FDIC insurance expense | 2,839 | 2,944 | 2,918 | (3.6 | )% | (2.7 | )% | 11,605 | 11,996 | (3.3 | )% | |||||||||||||||||||||||
Software | 2,450 | 2,562 | 3,268 | (4.4 | )% | (25.0 | )% | 11,560 | 9,520 | 21.4 | % | |||||||||||||||||||||||
Operating risk loss | 2,367 | 2,627 | 3,297 | (9.9 | )% | (28.2 | )% | 9,290 | 9,454 | (1.7 | )% | |||||||||||||||||||||||
Marketing | 1,660 | 2,537 | 2,251 | (34.6 | )% | (26.3 | )% | 7,705 | 8,240 | (6.5 | )% | |||||||||||||||||||||||
OREO and repossession expense | 1,116 | 2,473 | 1,453 | (54.9 | )% | (23.2 | )% | 7,364 | 11,182 | (34.1 | )% | |||||||||||||||||||||||
Intangible amortization | 834 | 713 | 534 | 17.0 | % | 56.2 | % | 2,437 | 3,031 | (19.6 | )% | |||||||||||||||||||||||
FHLB advance prepayment penalty | — | 3,007 | — | (100.0 | )% | — | — | 3,007 | (100.0 | )% | ||||||||||||||||||||||||
Other | 11,798 | 12,076 | 11,241 | (2.3 | )% | 5.0 | % | 47,308 | 45,833 | 3.2 | % | |||||||||||||||||||||||
Total Non-Interest Expense | 116,762 | 116,556 | 116,605 | 0.2 | % | 0.1 | % | 461,433 | 449,294 | 2.7 | % | |||||||||||||||||||||||
Income Before Income Taxes | 54,422 | 57,689 | 53,785 | (5.7 | )% | 1.2 | % | 212,925 | 217,446 | (2.1 | )% | |||||||||||||||||||||||
Income tax expense | 12,339 | 17,449 | 13,837 | (29.3 | )% | (10.8 | )% | 51,085 | 57,601 | (11.3 | )% | |||||||||||||||||||||||
Net Income | $ | 42,083 | $ | 40,240 | $ | 39,948 | 4.6 | % | 5.3 | % | $ | 161,840 | $ | 159,845 | 1.2 | % | ||||||||||||||||||
PER SHARE: | ||||||||||||||||||||||||||||||||||
Net income: | ||||||||||||||||||||||||||||||||||
Basic | $ | 0.22 | $ | 0.20 | $ | 0.21 | 10.0 | % | 4.8 | % | $ | 0.84 | $ | 0.80 | 5.0 | % | ||||||||||||||||||
Diluted | 0.22 | 0.20 | 0.21 | 10.0 | % | 4.8 | % | 0.83 | 0.80 | 3.8 | % | |||||||||||||||||||||||
Cash dividends | $ | 0.08 | $ | 0.08 | $ | 0.08 | — | — | $ | 0.32 | $ | 0.30 | 6.7 | % | ||||||||||||||||||||
Shareholders' equity | 10.71 | 10.45 | 10.55 | 2.5 | % | 1.5 | % | 10.71 | 10.45 | 2.5 | % | |||||||||||||||||||||||
Shareholders' equity (tangible) | 7.94 | 7.76 | 7.77 | 2.3 | % | 2.2 | % | 7.94 | 7.76 | 2.3 | % | |||||||||||||||||||||||
Weighted average shares (basic) | 191,577 | 198,161 | 192,251 | (3.3 | )% | (0.4 | )% | 193,334 | 199,067 | (2.9 | )% | |||||||||||||||||||||||
Weighted average shares (diluted) | 192,658 | 199,198 | 193,259 | (3.3 | )% | (0.3 | )% | 194,354 | 200,039 | (2.8 | )% | |||||||||||||||||||||||
Shares outstanding, end of period | 192,652 | 199,225 | 192,332 | (3.3 | )% | 0.2 | % | 192,652 | 199,225 | (3.3 | )% | |||||||||||||||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||||||||||||||||||||
Return on average assets | 0.99 | % | 0.99 | % | 0.93 | % | 0.96 | % | 0.98 | % | ||||||||||||||||||||||||
Return on average shareholders' equity | 8.14 | % | 7.70 | % | 7.81 | % | 7.88 | % | 7.79 | % | ||||||||||||||||||||||||
Return on average shareholders' equity (tangible) | 11.15 | % | 10.53 | % | 10.69 | % | 10.76 | % | 10.73 | % | ||||||||||||||||||||||||
Net interest margin | 3.48 | % | 3.65 | % | 3.45 | % | 3.50 | % | 3.76 | % | ||||||||||||||||||||||||
Efficiency ratio | 65.14 | % | 59.16 | % | 63.92 | % | 63.39 | % | 57.61 | % | ||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | September 30, 2013 | ||||||||||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||||||||||||
Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||
Loans, net of unearned income | $ | 12,792,566 | $ | 138,336 | 4.29% | $ | 12,002,944 | $ | 141,014 | 4.68% | $ | 12,728,162 | $ | 139,141 | 4.34% | |||||||||||||||||
Taxable investment securities | 2,289,672 | 13,431 | 2.35% | 2,279,551 | 13,406 | 2.35% | 2,446,583 | 12,977 | 2.12% | |||||||||||||||||||||||
Tax-exempt investment securities | 283,799 | 3,574 | 5.04% | 286,400 | 3,857 | 5.39% | 284,372 | 3,581 | 5.04% | |||||||||||||||||||||||
Equity securities | 33,887 | 413 | 4.83% | 43,706 | 509 | 4.63% | 35,999 | 436 | 4.82% | |||||||||||||||||||||||
Total Investment Securities | 2,607,358 | 17,418 | 2.67% | 2,609,657 | 17,772 | 2.72% | 2,766,954 | 16,994 | 2.46% | |||||||||||||||||||||||
Loans held for sale | 20,059 | 290 | 5.78% | 59,977 | 517 | 3.45% | 36,450 | 382 | 4.19% | |||||||||||||||||||||||
Other interest-earning assets | 263,478 | 737 | 1.12% | 217,948 | 520 | 0.96% | 236,185 | 658 | 1.12% | |||||||||||||||||||||||
Total Interest-earning Assets | 15,683,461 | 156,781 | 3.98% | 14,890,526 | 159,823 | 4.28% | 15,767,751 | 157,175 | 3.96% | |||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||
Cash and due from banks | 212,463 | 220,924 | 210,525 | |||||||||||||||||||||||||||||
Premises and equipment | 226,955 | 224,852 | 224,837 | |||||||||||||||||||||||||||||
Other assets | 1,008,304 | 1,079,274 | 1,009,162 | |||||||||||||||||||||||||||||
Less: allowance for loan losses | (210,636 | ) | (235,563 | ) | (220,342 | ) | ||||||||||||||||||||||||||
Total Assets | $ | 16,920,547 | $ | 16,180,013 | $ | 16,991,933 | ||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | $ | 2,966,994 | $ | 969 | 0.13% | $ | 2,684,063 | $ | 1,055 | 0.16% | $ | 2,895,156 | $ | 938 | 0.13% | |||||||||||||||||
Savings deposits | 3,410,030 | 1,042 | 0.12% | 3,399,423 | 1,251 | 0.15% | 3,359,795 | 1,015 | 0.12% | |||||||||||||||||||||||
Time deposits | 2,965,604 | 6,117 | 0.82% | 3,472,692 | 9,748 | 1.12% | 3,065,210 | 6,790 | 0.88% | |||||||||||||||||||||||
Total Interest-bearing Deposits | 9,342,628 | 8,128 | 0.35% | 9,556,178 | 12,054 | 0.50% | 9,320,161 | 8,743 | 0.37% | |||||||||||||||||||||||
Short-term borrowings | 1,099,709 | 520 | 0.19% | 488,310 | 156 | 0.13% | 1,337,742 | 691 | 0.20% | |||||||||||||||||||||||
FHLB advances and long-term debt | 888,378 | 10,857 | 4.87% | 914,013 | 11,128 | 4.86% | 889,141 | 10,865 | 4.87% | |||||||||||||||||||||||
Total Interest-bearing Liabilities | 11,330,715 | 19,505 | 0.68% | 10,958,501 | 23,338 | 0.85% | 11,547,044 | 20,299 | 0.70% | |||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | 3,318,073 | 2,955,208 | 3,221,648 | |||||||||||||||||||||||||||||
Other | 221,010 | 186,958 | 194,163 | |||||||||||||||||||||||||||||
Total Liabilities | 14,869,798 | 14,100,667 | 14,962,855 | |||||||||||||||||||||||||||||
Shareholders' equity | 2,050,749 | 2,079,346 | 2,029,078 | |||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 16,920,547 | $ | 16,180,013 | $ | 16,991,933 | ||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 137,276 | 3.48% | 136,485 | 3.65% | 136,876 | 3.45% | ||||||||||||||||||||||||||
Tax equivalent adjustment | (4,324 | ) | (4,263 | ) | (4,343 | ) | ||||||||||||||||||||||||||
Net interest income | $ | 132,952 | $ | 132,222 | $ | 132,533 | ||||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||||||||
December 31 | December 31 | September 30 | December 31 | September 30 | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 5,065,963 | $ | 4,623,158 | $ | 4,961,871 | 9.6 | % | 2.1 | % | ||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 3,639,690 | 3,559,171 | 3,706,113 | 2.3 | % | (1.8 | )% | |||||||||||||||||||||||||
Real estate - home equity | 1,774,919 | 1,611,868 | 1,767,095 | 10.1 | % | 0.4 | % | |||||||||||||||||||||||||
Real estate - residential mortgage | 1,331,987 | 1,223,962 | 1,323,972 | 8.8 | % | 0.6 | % | |||||||||||||||||||||||||
Real estate - construction | 581,306 | 593,351 | 576,222 | (2.0 | )% | 0.9 | % | |||||||||||||||||||||||||
Consumer | 287,245 | 306,350 | 299,057 | (6.2 | )% | (3.9 | )% | |||||||||||||||||||||||||
Leasing and other | 111,456 | 85,084 | 93,832 | 31.0 | % | 18.8 | % | |||||||||||||||||||||||||
Total Loans, net of unearned income | $ | 12,792,566 | $ | 12,002,944 | $ | 12,728,162 | 6.6 | % | 0.5 | % | ||||||||||||||||||||||
Deposits, by type: | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,318,073 | $ | 2,955,208 | $ | 3,221,648 | 12.3 | % | 3.0 | % | ||||||||||||||||||||||
Interest-bearing demand | 2,966,994 | 2,684,063 | 2,895,156 | 10.5 | % | 2.5 | % | |||||||||||||||||||||||||
Savings deposits | 3,410,030 | 3,399,423 | 3,359,795 | 0.3 | % | 1.5 | % | |||||||||||||||||||||||||
Time deposits | 2,965,604 | 3,472,692 | 3,065,210 | (14.6 | )% | (3.2 | )% | |||||||||||||||||||||||||
Total Deposits | $ | 12,660,701 | $ | 12,511,386 | $ | 12,541,809 | 1.2 | % | 0.9 | % | ||||||||||||||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||||||||||||||
Customer repurchase agreements | $ | 196,997 | $ | 189,922 | $ | 196,503 | 3.7 | % | 0.3 | % | ||||||||||||||||||||||
Customer short-term promissory notes | 93,986 | 125,933 | 91,573 | (25.4 | )% | 2.6 | % | |||||||||||||||||||||||||
Federal funds purchased | 408,726 | 172,455 | 559,992 | 137.0 | % | (27.0 | )% | |||||||||||||||||||||||||
Short-term FHLB advances | 400,000 | — | 489,674 | N/M | (18.3 | )% | ||||||||||||||||||||||||||
Total Short-term Borrowings | $ | 1,099,709 | $ | 488,310 | $ | 1,337,742 | 125.2 | % | (17.8 | )% | ||||||||||||||||||||||
N/M - Not Meaningful | ||||||||||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||||||
dollars in thousands | |||||||||||||||||||||||
Year ended December 31 | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Balance | Interest (1) | Yield/Rate | Balance | Interest (1) | Yield/Rate | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans, net of unearned income | $ | 12,578,524 | $ | 552,427 | 4.39 | % | $ | 11,968,567 | $ | 575,534 | 4.81 | % | |||||||||||
Taxable investment securities | 2,391,650 | 54,321 | 2.27 | % | 2,401,343 | 67,349 | 2.80 | % | |||||||||||||||
Tax-exempt investment securities | 285,174 | 14,577 | 5.11 | % | 287,763 | 15,942 | 5.54 | % | |||||||||||||||
Equity securities | 38,722 | 1,829 | 4.72 | % | 35,151 | 1,639 | 4.66 | % | |||||||||||||||
Total Investment Securities | 2,715,546 | 70,727 | 2.60 | % | 2,724,257 | 84,930 | 3.12 | % | |||||||||||||||
Loans held for sale | 36,561 | 1,551 | 4.24 | % | 54,351 | 2,064 | 3.80 | % | |||||||||||||||
Other interest-earning assets | 229,444 | 2,264 | 0.99 | % | 207,415 | 1,830 | 0.88 | % | |||||||||||||||
Total Interest-earning Assets | 15,560,075 | 626,969 | 4.03 | % | 14,954,590 | 664,358 | 4.45 | % | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||
Cash and due from banks | 207,931 | 234,494 | |||||||||||||||||||||
Premises and equipment | 226,041 | 219,236 | |||||||||||||||||||||
Other assets | 1,037,338 | 1,099,616 | |||||||||||||||||||||
Less: allowance for loan losses | (220,048 | ) | (250,160 | ) | |||||||||||||||||||
Total Assets | $ | 16,811,337 | $ | 16,257,776 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | $ | 2,822,583 | $ | 3,656 | 0.13 | % | $ | 2,560,831 | $ | 4,187 | 0.16 | % | |||||||||||
Savings deposits | 3,363,943 | 4,096 | 0.12 | % | 3,356,070 | 6,002 | 0.18 | % | |||||||||||||||
Time deposits | 3,129,162 | 29,018 | 0.93 | % | 3,717,556 | 46,706 | 1.26 | % | |||||||||||||||
Total Interest-bearing Deposits | 9,315,688 | 36,770 | 0.39 | % | 9,634,457 | 56,895 | 0.59 | % | |||||||||||||||
Short-term borrowings | 1,196,323 | 2,420 | 0.20 | % | 690,883 | 1,068 | 0.15 | % | |||||||||||||||
FHLB advances and long-term debt | 889,461 | 43,305 | 4.87 | % | 933,727 | 45,205 | 4.84 | % | |||||||||||||||
Total Interest-bearing Liabilities | 11,401,472 | 82,495 | 0.72 | % | 11,259,067 | 103,168 | 0.92 | % | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | 3,157,496 | 2,758,123 | |||||||||||||||||||||
Other | 198,548 | 189,592 | |||||||||||||||||||||
Total Liabilities | 14,757,516 | 14,206,782 | |||||||||||||||||||||
Shareholders' equity | 2,053,821 | 2,050,994 | |||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 16,811,337 | $ | 16,257,776 | |||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 544,474 | 3.50 | % | 561,190 | 3.76 | % | |||||||||||||||||
Tax equivalent adjustment | (17,280 | ) | (16,862 | ) | |||||||||||||||||||
Net interest income | $ | 527,194 | $ | 544,328 | |||||||||||||||||||
(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: | |||||||||||||||||||||||
Year ended | |||||||||||||||||||||||
December 31 | |||||||||||||||||||||||
2013 | 2012 | % Change | |||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 4,864,460 | $ | 4,619,587 | 5.3 | % | |||||||||||||||||
Commercial - industrial, financial and agricultural | 3,680,772 | 3,551,056 | 3.7 | % | |||||||||||||||||||
Real estate - home equity | 1,734,622 | 1,605,088 | 8.1 | % | |||||||||||||||||||
Real estate - residential mortgage | 1,312,127 | 1,185,928 | 10.6 | % | |||||||||||||||||||
Real estate - construction | 591,540 | 620,166 | (4.6 | )% | |||||||||||||||||||
Consumer | 299,127 | 307,746 | (2.8 | )% | |||||||||||||||||||
Leasing and other | 95,876 | 78,996 | 21.4 | % | |||||||||||||||||||
Total Loans, net of unearned income | $ | 12,578,524 | $ | 11,968,567 | 5.1 | % | |||||||||||||||||
Deposits, by type: | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,157,496 | $ | 2,758,123 | 14.5 | % | |||||||||||||||||
Interest-bearing demand | 2,822,583 | 2,560,831 | 10.2 | % | |||||||||||||||||||
Savings deposits | 3,363,943 | 3,356,070 | 0.2 | % | |||||||||||||||||||
Time deposits | 3,129,162 | 3,717,556 | (15.8 | )% | |||||||||||||||||||
Total Deposits | $ | 12,473,184 | $ | 12,392,580 | 0.7 | % | |||||||||||||||||
Short-term borrowings, by type: | |||||||||||||||||||||||
Customer repurchase agreements | $ | 186,851 | $ | 206,842 | (9.7 | )% | |||||||||||||||||
Customer short-term promissory notes | 98,882 | 138,632 | (28.7 | )% | |||||||||||||||||||
Federal funds purchased | 612,508 | 335,573 | 82.5 | % | |||||||||||||||||||
Short-term FHLB advances | 298,082 | 9,836 | N/M | ||||||||||||||||||||
Total Short-term Borrowings | $ | 1,196,323 | $ | 690,883 | 73.2 | % | |||||||||||||||||
N/M - Not Meaningful | |||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
ASSET QUALITY INFORMATION (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||||||||||||||||
Dec 31 | Dec 31 | Sep 30 | Dec 31 | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 212,838 | $ | 235,268 | $ | 217,626 | $ | 225,439 | $ | 258,177 | ||||||||||||||||||||||
Loans charged off: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | (5,527 | ) | (12,711 | ) | (9,394 | ) | (30,383 | ) | (41,868 | ) | ||||||||||||||||||||||
Real estate - commercial mortgage | (7,779 | ) | (8,935 | ) | (3,724 | ) | (20,829 | ) | (51,988 | ) | ||||||||||||||||||||||
Real estate - home equity | (1,458 | ) | (3,464 | ) | (2,365 | ) | (8,193 | ) | (10,147 | ) | ||||||||||||||||||||||
Real estate - residential mortgage | (1,423 | ) | (1,500 | ) | (767 | ) | (9,705 | ) | (4,509 | ) | ||||||||||||||||||||||
Real estate - construction | (1,391 | ) | (873 | ) | (598 | ) | (6,572 | ) | (26,250 | ) | ||||||||||||||||||||||
Consumer | (421 | ) | (1,533 | ) | (473 | ) | (1,877 | ) | (3,323 | ) | ||||||||||||||||||||||
Leasing and other | (616 | ) | (585 | ) | (787 | ) | (2,653 | ) | (2,281 | ) | ||||||||||||||||||||||
Total loans charged off | (18,615 | ) | (29,601 | ) | (18,108 | ) | (80,212 | ) | (140,366 | ) | ||||||||||||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 5,851 | 1,236 | 2,295 | 9,281 | 4,282 | |||||||||||||||||||||||||||
Real estate - commercial mortgage | 740 | 85 | 185 | 3,494 | 3,371 | |||||||||||||||||||||||||||
Real estate - home equity | 139 | 63 | 198 | 860 | 704 | |||||||||||||||||||||||||||
Real estate - residential mortgage | 106 | 290 | 245 | 548 | 459 | |||||||||||||||||||||||||||
Real estate - construction | 888 | 171 | 379 | 2,682 | 2,814 | |||||||||||||||||||||||||||
Consumer | 312 | 274 | 294 | 1,518 | 1,107 | |||||||||||||||||||||||||||
Leasing and other | 158 | 153 | 224 | 807 | 891 | |||||||||||||||||||||||||||
Recoveries of loans previously charged off | 8,194 | 2,272 | 3,820 | 19,190 | 13,628 | |||||||||||||||||||||||||||
Net loans charged off | (10,421 | ) | (27,329 | ) | (14,288 | ) | (61,022 | ) | (126,738 | ) | ||||||||||||||||||||||
Provision for credit losses | 2,500 | 17,500 | 9,500 | 40,500 | 94,000 | |||||||||||||||||||||||||||
Balance at end of period | $ | 204,917 | $ | 225,439 | $ | 212,838 | $ | 204,917 | $ | 225,439 | ||||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.33 | % | 0.91 | % | 0.45 | % | 0.49 | % | 1.06 | % | ||||||||||||||||||||||
NON-PERFORMING ASSETS: | ||||||||||||||||||||||||||||||||
Non-accrual loans | $ | 133,753 | $ | 184,832 | $ | 143,012 | ||||||||||||||||||||||||||
Loans 90 days past due and accruing | 20,524 | 26,221 | 25,271 | |||||||||||||||||||||||||||||
Total non-performing loans | 154,277 | 211,053 | 168,283 | |||||||||||||||||||||||||||||
Other real estate owned | 15,052 | 26,146 | 18,173 | |||||||||||||||||||||||||||||
Total non-performing assets | $ | 169,329 | $ | 237,199 | $ | 186,456 | ||||||||||||||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 44,068 | $ | 57,120 | $ | 42,623 | ||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 38,021 | 66,954 | 45,184 | |||||||||||||||||||||||||||||
Real estate - residential mortgage | 31,347 | 34,436 | 34,309 | |||||||||||||||||||||||||||||
Real estate - construction | 21,267 | 32,005 | 24,396 | |||||||||||||||||||||||||||||
Real estate - home equity | 16,983 | 17,204 | 18,691 | |||||||||||||||||||||||||||||
Consumer | 2,543 | 3,315 | 3,013 | |||||||||||||||||||||||||||||
Leasing | 48 | 19 | 67 | |||||||||||||||||||||||||||||
Total non-performing loans | $ | 154,277 | $ | 211,053 | $ | 168,283 | ||||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE: | ||||||||||||||||||||||||||||||||
Real-estate - residential mortgage | $ | 28,815 | $ | 32,993 | $ | 27,820 | ||||||||||||||||||||||||||
Real-estate - commercial mortgage | 19,758 | 34,672 | 22,644 | |||||||||||||||||||||||||||||
Real estate - construction | 10,117 | 10,564 | 9,841 | |||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 8,045 | 5,745 | 8,184 | |||||||||||||||||||||||||||||
Real estate - home equity | 1,365 | 1,518 | 1,667 | |||||||||||||||||||||||||||||
Consumer | 11 | 16 | 11 | |||||||||||||||||||||||||||||
Total accruing TDRs | $ | 68,111 | $ | 85,508 | $ | 70,167 | ||||||||||||||||||||||||||
Non-accrual TDRs (1) | 30,209 | 31,245 | 30,501 | |||||||||||||||||||||||||||||
Total TDRs | $ | 98,320 | $ | 116,753 | $ | 100,668 | ||||||||||||||||||||||||||
(1) Included within non-accrual loans above. | ||||||||||||||||||||||||||||||||
DELINQUENCY RATES, BY TYPE: | ||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | September 30, 2013 | ||||||||||||||||||||||||||||||
31-89 Days | ≥90 Days (2) | Total | 31-89 Days | ≥90 Days (2) | Total | 31-89 Days | ≥90 Days (2) | Total | ||||||||||||||||||||||||
Real estate - commercial mortgage | 0.38 | % | 0.87 | % | 1.25 | % | 0.46 | % | 1.22 | % | 1.68 | % | 0.40 | % | 0.84 | % | 1.24 | % | ||||||||||||||
Commercial - industrial, financial and agricultural | 0.30 | % | 1.04 | % | 1.34 | % | 0.46 | % | 1.85 | % | 2.31 | % | 0.32 | % | 1.24 | % | 1.56 | % | ||||||||||||||
Real estate - construction | 0.11 | % | 3.71 | % | 3.82 | % | 0.23 | % | 5.48 | % | 5.71 | % | 0.40 | % | 4.22 | % | 4.62 | % | ||||||||||||||
Real estate - residential mortgage | 1.74 | % | 2.34 | % | 4.08 | % | 2.55 | % | 2.74 | % | 5.29 | % | 1.82 | % | 2.58 | % | 4.40 | % | ||||||||||||||
Real estate - home equity | 0.91 | % | 0.96 | % | 1.87 | % | 0.77 | % | 1.06 | % | 1.83 | % | 1.03 | % | 1.05 | % | 2.08 | % | ||||||||||||||
Consumer, leasing and other | 1.99 | % | 0.68 | % | 2.67 | % | 1.71 | % | 0.84 | % | 2.55 | % | 1.91 | % | 0.79 | % | 2.70 | % | ||||||||||||||
Total | 0.61 | % | 1.20 | % | 1.81 | % | 0.75 | % | 1.74 | % | 2.49 | % | 0.66 | % | 1.31 | % | 1.97 | % | ||||||||||||||
(2) Includes non-accrual loans | ||||||||||||||||||||||||||||||||
ASSET QUALITY RATIOS: | ||||||||||||||||||||||||||||||||
Dec 31 | Dec 31 | Sep 30 | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | ||||||||||||||||||||||||||||||
Non-accrual loans to total loans | 1.05 | % | 1.52 | % | 1.12 | % | ||||||||||||||||||||||||||
Non-performing assets to total loans and OREO | 1.32 | % | 1.95 | % | 1.46 | % | ||||||||||||||||||||||||||
Non-performing assets to total assets | 1.00 | % | 1.43 | % | 1.09 | % | ||||||||||||||||||||||||||
Allowance for credit losses to loans outstanding | 1.60 | % | 1.86 | % | 1.67 | % | ||||||||||||||||||||||||||
Allowance for credit losses to non-performing loans | 132.82 | % | 106.82 | % | 126.48 | % | ||||||||||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.76 | % | 13.39 | % | 10.92 | % | ||||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (UNAUDITED) | |||||||||||||||||||||||||
in thousands, except per share data and percentages | |||||||||||||||||||||||||
Explanatory note: | This press release contains certain financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's quarterly results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow: | ||||||||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||||||
Dec 31 | Dec 31 | Sep 30 | Dec 31 | Dec 31 | |||||||||||||||||||||
2013 | 2012 | 2013 | 2013 | 2012 | |||||||||||||||||||||
Shareholders' equity (tangible), per share | |||||||||||||||||||||||||
Shareholders' equity | $ | 2,063,187 | $ | 2,081,656 | $ | 2,028,964 | |||||||||||||||||||
Less: Goodwill and intangible assets | (533,076 | ) | (535,563 | ) | (533,918 | ) | |||||||||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,530,111 | $ | 1,546,093 | $ | 1,495,046 | |||||||||||||||||||
Shares outstanding, end of period (denominator) | 192,652 | 199,225 | 192,332 | ||||||||||||||||||||||
Shareholders' equity (tangible), per share | $ | 7.94 | $ | 7.76 | $ | 7.77 | |||||||||||||||||||
Return on average common shareholders' equity (tangible) | |||||||||||||||||||||||||
Net income | $ | 42,083 | $ | 40,240 | $ | 39,948 | $ | 161,840 | $ | 159,845 | |||||||||||||||
Plus: Intangible amortization, net of tax | 541 | 463 | 347 | 1,584 | 1,970 | ||||||||||||||||||||
Numerator | $ | 42,624 | $ | 40,703 | $ | 40,295 | $ | 163,424 | $ | 161,815 | |||||||||||||||
Average shareholders' equity | $ | 2,050,749 | $ | 2,079,346 | $ | 2,029,078 | $ | 2,053,821 | $ | 2,050,994 | |||||||||||||||
Less: Average goodwill and intangible assets | (533,597 | ) | (541,416 | ) | (534,179 | ) | (534,431 | ) | (542,600 | ) | |||||||||||||||
Average tangible shareholders' equity (denominator) | $ | 1,517,152 | $ | 1,537,930 | $ | 1,494,899 | $ | 1,519,390 | $ | 1,508,394 | |||||||||||||||
Return on average common shareholders' equity (tangible), annualized | 11.15 | % | 10.53 | % | 10.69 | % | 10.76 | % | 10.73 | % | |||||||||||||||
Efficiency ratio | |||||||||||||||||||||||||
Non-interest expense | $ | 116,762 | $ | 116,556 | $ | 116,605 | $ | 461,433 | $ | 449,294 | |||||||||||||||
Less: Intangible amortization | (834 | ) | (713 | ) | (534 | ) | (2,437 | ) | (3,031 | ) | |||||||||||||||
Numerator | $ | 115,928 | $ | 115,843 | $ | 116,071 | $ | 458,996 | $ | 446,263 | |||||||||||||||
Net interest income (fully taxable equivalent) | $ | 137,276 | $ | 136,485 | $ | 136,876 | $ | 544,474 | $ | 561,190 | |||||||||||||||
Plus: Total Non-interest income | 40,732 | 59,523 | 47,357 | 187,664 | 216,412 | ||||||||||||||||||||
Less: Investment securities gains | (33 | ) | (195 | ) | (2,633 | ) | (8,004 | ) | (3,026 | ) | |||||||||||||||
Denominator | $ | 177,975 | $ | 195,813 | $ | 181,600 | $ | 724,134 | $ | 774,576 | |||||||||||||||
Efficiency ratio | 65.14 | % | 59.16 | % | 63.92 | % | 63.39 | % | 57.61 | % | |||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | |||||||||||||||||||||||||
Non-performing assets (numerator) | $ | 169,329 | $ | 237,199 | $ | 186,456 | |||||||||||||||||||
Tangible shareholders' equity | $ | 1,530,111 | $ | 1,546,093 | $ | 1,495,046 | |||||||||||||||||||
Plus: Allowance for credit losses | 204,917 | 225,439 | 212,838 | ||||||||||||||||||||||
Tangible shareholders' equity and allowance for credit losses (denominator) | $ | 1,735,028 | $ | 1,771,532 | $ | 1,707,884 | |||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.76 | % | 13.39 | % | 10.92 | % | |||||||||||||||||||