Attached files
| file | filename |
|---|---|
| 8-K - 8-K - FULTON FINANCIAL CORP | a8-k123114.htm |
| EX-99.1 - EARNINGS RELEASE DATED 1-20-15 - FULTON FINANCIAL CORP | exhibit991123114.htm |
| EX-99.3 - SLIDE PRESENTATION DISCUSSED ON THE CONFERENCE CALL FOR INVESTORS AND ANALYSTS - FULTON FINANCIAL CORP | q4earningsccpresentation.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 | ||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | ||||||||||||||
ASSETS | ||||||||||||||||||
Cash and due from banks | $ | 105,702 | $ | 218,540 | $ | 220,946 | (51.6 | )% | (52.2 | )% | ||||||||
Other interest-earning assets | 423,083 | 248,161 | 377,579 | 70.5 | % | 12.1 | % | |||||||||||
Loans held for sale | 17,522 | 21,351 | 25,212 | (17.9 | )% | (30.5 | )% | |||||||||||
Investment securities | 2,323,371 | 2,568,434 | 2,470,609 | (9.5 | )% | (6.0 | )% | |||||||||||
Loans, net of unearned income | 13,111,716 | 12,782,220 | 13,030,405 | 2.6 | % | 0.6 | % | |||||||||||
Allowance for loan losses | (184,144 | ) | (202,780 | ) | (189,477 | ) | (9.2 | )% | (2.8 | )% | ||||||||
Net loans | 12,927,572 | 12,579,440 | 12,840,928 | 2.8 | % | 0.7 | % | |||||||||||
Premises and equipment | 226,027 | 226,021 | 224,441 | — | % | 0.7 | % | |||||||||||
Accrued interest receivable | 41,818 | 44,037 | 43,544 | (5.0 | )% | (4.0 | )% | |||||||||||
Goodwill and intangible assets | 531,803 | 533,076 | 532,117 | (0.2 | )% | (0.1 | )% | |||||||||||
Other assets | 527,869 | 495,574 | 502,798 | 6.5 | % | 5.0 | % | |||||||||||
Total Assets | $ | 17,124,767 | $ | 16,934,634 | $ | 17,238,174 | 1.1 | % | (0.7 | )% | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Deposits | $ | 13,367,506 | $ | 12,491,186 | $ | 13,333,627 | 7.0 | % | 0.3 | % | ||||||||
Short-term borrowings | 329,719 | 1,258,629 | 564,952 | (73.8 | )% | (41.6 | )% | |||||||||||
Other liabilities | 291,464 | 238,048 | 243,300 | 22.4 | % | 19.8 | % | |||||||||||
FHLB advances and long-term debt | 1,139,413 | 883,584 | 1,018,289 | 29.0 | % | 11.9 | % | |||||||||||
Total Liabilities | 15,128,102 | 14,871,447 | 15,160,168 | 1.7 | % | (0.2 | )% | |||||||||||
Shareholders' equity | 1,996,665 | 2,063,187 | 2,078,006 | (3.2 | )% | (3.9 | )% | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,124,767 | $ | 16,934,634 | $ | 17,238,174 | 1.1 | % | (0.7 | )% | ||||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||
Loans, by type: | ||||||||||||||||||
Real estate - commercial mortgage | $ | 5,197,155 | $ | 5,101,922 | $ | 5,156,979 | 1.9 | % | 0.8 | % | ||||||||
Commercial - industrial, financial and agricultural | 3,725,567 | 3,628,420 | 3,691,262 | 2.7 | % | 0.9 | % | |||||||||||
Real estate - home equity | 1,736,688 | 1,764,197 | 1,733,036 | (1.6 | )% | 0.2 | % | |||||||||||
Real estate - residential mortgage | 1,377,068 | 1,337,380 | 1,372,033 | 3.0 | % | 0.4 | % | |||||||||||
Real estate - construction | 690,601 | 573,672 | 687,728 | 20.4 | % | 0.4 | % | |||||||||||
Consumer | 265,431 | 283,124 | 278,219 | (6.2 | )% | (4.6 | )% | |||||||||||
Leasing and other | 119,206 | 93,505 | 111,148 | 27.5 | % | 7.2 | % | |||||||||||
Total Loans, net of unearned income | $ | 13,111,716 | $ | 12,782,220 | $ | 13,030,405 | 2.6 | % | 0.6 | % | ||||||||
Deposits, by type: | ||||||||||||||||||
Noninterest-bearing demand | $ | 3,640,623 | $ | 3,283,172 | $ | 3,556,810 | 10.9 | % | 2.4 | % | ||||||||
Interest-bearing demand | 3,150,612 | 2,945,210 | 3,164,514 | 7.0 | % | (0.4 | )% | |||||||||||
Savings deposits | 3,504,820 | 3,344,882 | 3,620,919 | 4.8 | % | (3.2 | )% | |||||||||||
Time deposits | 3,071,451 | 2,917,922 | 2,991,384 | 5.3 | % | 2.7 | % | |||||||||||
Total Deposits | $ | 13,367,506 | $ | 12,491,186 | $ | 13,333,627 | 7.0 | % | 0.3 | % | ||||||||
Short-term borrowings, by type: | ||||||||||||||||||
Customer repurchase agreements | $ | 158,394 | $ | 175,621 | $ | 195,121 | (9.8 | )% | (18.8 | )% | ||||||||
Customer short-term promissory notes | 95,106 | 100,572 | 78,225 | (5.4 | )% | 21.6 | % | |||||||||||
Federal funds purchased | 6,219 | 582,436 | 6,606 | (98.9 | )% | (5.9 | )% | |||||||||||
Short-term FHLB advances | 70,000 | 400,000 | 285,000 | (82.5 | )% | (75.4 | )% | |||||||||||
Total Short-term Borrowings | $ | 329,719 | $ | 1,258,629 | $ | 564,952 | (73.8 | )% | (41.6 | )% | ||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||||||||||||||||
in thousands, except per-share data and percentages | ||||||||||||||||||||||||||||||||
Three Months Ended | % Change from | Year Ended | ||||||||||||||||||||||||||||||
Dec 31 | Dec 31 | Sep 30 | Dec 31 | Sep 30 | Dec 31 | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2014 | 2013 | % Change | |||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||||||||
Interest income | $ | 149,594 | $ | 152,457 | $ | 149,790 | (1.9 | )% | (0.1 | )% | $ | 596,078 | $ | 609,689 | (2.2 | )% | ||||||||||||||||
Interest expense | 21,556 | 19,505 | 20,424 | 10.5 | % | 5.5 | % | 81,211 | 82,495 | (1.6 | )% | |||||||||||||||||||||
Net Interest Income | 128,038 | 132,952 | 129,366 | (3.7 | )% | (1.0 | )% | 514,867 | 527,194 | (2.3 | )% | |||||||||||||||||||||
Provision for credit losses | 3,000 | 2,500 | 3,500 | 20.0 | % | (14.3 | )% | 12,500 | 40,500 | (69.1 | )% | |||||||||||||||||||||
Net Interest Income after Provision | 125,038 | 130,452 | 125,866 | (4.2 | )% | (0.7 | )% | 502,367 | 486,694 | 3.2 | % | |||||||||||||||||||||
Non-Interest Income: | ||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 12,229 | 12,770 | 12,801 | (4.2 | )% | (4.5 | )% | 49,293 | 55,470 | (11.1 | )% | |||||||||||||||||||||
Investment management and trust services | 11,188 | 10,589 | 11,120 | 5.7 | % | 0.6 | % | 44,605 | 41,706 | 7.0 | % | |||||||||||||||||||||
Other service charges and fees | 10,489 | 9,421 | 9,954 | 11.3 | % | 5.4 | % | 39,896 | 36,957 | 8.0 | % | |||||||||||||||||||||
Mortgage banking income | 3,723 | 4,363 | 4,038 | (14.7 | )% | (7.8 | )% | 17,107 | 30,656 | (44.2 | )% | |||||||||||||||||||||
Investment securities gains | 848 | 33 | 81 | N/M | N/M | 2,041 | 8,004 | (74.5 | )% | |||||||||||||||||||||||
Other | 3,624 | 3,556 | 3,906 | 1.9 | % | (7.2 | )% | 14,437 | 14,871 | (2.9 | )% | |||||||||||||||||||||
Total Non-Interest Income | 42,101 | 40,732 | 41,900 | 3.4 | % | 0.5 | % | 167,379 | 187,664 | (10.8 | )% | |||||||||||||||||||||
Non-Interest Expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | 65,398 | 65,194 | 62,434 | 0.3 | % | 4.7 | % | 251,021 | 253,240 | (0.9 | )% | |||||||||||||||||||||
Net occupancy expense | 11,481 | 12,134 | 11,582 | (5.4 | )% | (0.9 | )% | 48,130 | 46,944 | 2.5 | % | |||||||||||||||||||||
Other outside services | 8,720 | 5,633 | 8,632 | 54.8 | % | 1.0 | % | 28,404 | 18,856 | 50.6 | % | |||||||||||||||||||||
Data processing | 4,346 | 3,386 | 4,689 | 28.4 | % | (7.3 | )% | 17,162 | 16,555 | 3.7 | % | |||||||||||||||||||||
Equipment expense | 3,298 | 3,972 | 3,307 | (17.0 | )% | (0.3 | )% | 13,567 | 15,419 | (12.0 | )% | |||||||||||||||||||||
Software | 3,271 | 2,450 | 3,353 | 33.5 | % | (2.4 | )% | 12,758 | 11,560 | 10.4 | % | |||||||||||||||||||||
FDIC insurance expense | 2,772 | 2,839 | 2,882 | (2.4 | )% | (3.8 | )% | 10,958 | 11,605 | (5.6 | )% | |||||||||||||||||||||
Marketing | 2,414 | 1,660 | 1,798 | 45.4 | % | 34.3 | % | 8,133 | 7,705 | 5.6 | % | |||||||||||||||||||||
Professional fees | 2,382 | 3,379 | 3,252 | (29.5 | )% | (26.8 | )% | 12,097 | 13,150 | (8.0 | )% | |||||||||||||||||||||
Operating risk loss | 485 | 2,367 | 1,242 | (79.5 | )% | (61.0 | )% | 4,271 | 9,290 | (54.0 | )% | |||||||||||||||||||||
Intangible amortization | 315 | 835 | 314 | (62.3 | )% | 0.3 | % | 1,259 | 2,438 | (48.4 | )% | |||||||||||||||||||||
OREO and repossession expense | 236 | 1,116 | 1,303 | (78.9 | )% | (81.9 | )% | 3,270 | 7,364 | (55.6 | )% | |||||||||||||||||||||
Other | 12,602 | 11,797 | 11,010 | 6.8 | % | 14.5 | % | 48,216 | 47,307 | 1.9 | % | |||||||||||||||||||||
Total Non-Interest Expense | 117,720 | 116,762 | 115,798 | 0.8 | % | 1.7 | % | 459,246 | 461,433 | (0.5 | )% | |||||||||||||||||||||
Income Before Income Taxes | 49,419 | 54,422 | 51,968 | (9.2 | )% | (4.9 | )% | 210,500 | 212,925 | (1.1 | )% | |||||||||||||||||||||
Income tax expense | 11,470 | 12,339 | 13,402 | (7.0 | )% | (14.4 | )% | 52,606 | 51,085 | 3.0 | % | |||||||||||||||||||||
Net Income | $ | 37,949 | $ | 42,083 | $ | 38,566 | (9.8 | )% | (1.6 | )% | $ | 157,894 | $ | 161,840 | (2.4 | )% | ||||||||||||||||
PER SHARE: | ||||||||||||||||||||||||||||||||
Net income: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.22 | $ | 0.21 | (4.5 | )% | — | % | $ | 0.85 | $ | 0.84 | 1.2 | % | ||||||||||||||||
Diluted | 0.21 | 0.22 | 0.21 | (4.5 | )% | — | % | 0.84 | 0.83 | 1.2 | % | |||||||||||||||||||||
Cash dividends | $ | 0.10 | $ | 0.08 | $ | 0.08 | 25.0 | % | 25.0 | % | $ | 0.34 | $ | 0.32 | 6.3 | % | ||||||||||||||||
Shareholders' equity | 11.16 | 10.71 | 11.22 | 4.2 | % | (0.5 | )% | 11.16 | 10.71 | 4.2 | % | |||||||||||||||||||||
Shareholders' equity (tangible) | 8.19 | 7.94 | 8.35 | 3.1 | % | (1.9 | )% | 8.19 | 7.94 | 3.1 | % | |||||||||||||||||||||
Weighted average shares (basic) | 181,251 | 191,577 | 186,109 | (5.4 | )% | (2.6 | )% | 186,219 | 193,334 | (3.7 | )% | |||||||||||||||||||||
Weighted average shares (diluted) | 182,189 | 192,658 | 186,955 | (5.4 | )% | (2.5 | )% | 187,181 | 194,354 | (3.7 | )% | |||||||||||||||||||||
Shares outstanding, end of period | 178,924 | 192,652 | 185,158 | (7.1 | )% | (3.4 | )% | 178,924 | 192,652 | (7.1 | )% | |||||||||||||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||||||||||||||||||
Return on average assets | 0.88 | % | 0.99 | % | 0.90 | % | 0.93 | % | 0.96 | % | ||||||||||||||||||||||
Return on average shareholders' equity | 7.34 | % | 8.14 | % | 7.32 | % | 7.62 | % | 7.88 | % | ||||||||||||||||||||||
Return on average shareholders' equity (tangible) | 9.96 | % | 11.15 | % | 9.88 | % | 10.31 | % | 10.76 | % | ||||||||||||||||||||||
Net interest margin | 3.31 | % | 3.48 | % | 3.39 | % | 3.39 | % | 3.50 | % | ||||||||||||||||||||||
Efficiency ratio | 67.53 | % | 65.14 | % | 65.80 | % | 65.65 | % | 63.39 | % | ||||||||||||||||||||||
N/M - Not meaningful | ||||||||||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | September 30, 2014 | ||||||||||||||||||||||||||||||
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 | $ | 13,056,153 | $ | 136,636 | 4.16% | $ | 12,792,566 | $ | 138,336 | 4.29% | $ | 12,922,821 | $ | 136,773 | 4.20% | |||||||||||||||||
Taxable investment securities | 2,109,884 | 12,689 | 2.40% | 2,289,672 | 13,431 | 2.35% | 2,181,099 | 12,278 | 2.25% | |||||||||||||||||||||||
Tax-exempt investment securities | 241,711 | 3,249 | 5.38% | 283,799 | 3,574 | 5.04% | 256,303 | 3,414 | 5.33% | |||||||||||||||||||||||
Equity securities | 33,981 | 442 | 5.16% | 33,887 | 413 | 4.83% | 34,002 | 438 | 5.12% | |||||||||||||||||||||||
Total Investment Securities | 2,385,576 | 16,380 | 2.74% | 2,607,358 | 17,418 | 2.67% | 2,471,404 | 16,130 | 2.61% | |||||||||||||||||||||||
Loans held for sale | 15,340 | 201 | 5.24% | 20,059 | 290 | 5.78% | 23,699 | 237 | 4.01% | |||||||||||||||||||||||
Other interest-earning assets | 464,342 | 953 | 0.82% | 263,478 | 737 | 1.12% | 293,286 | 976 | 1.33% | |||||||||||||||||||||||
Total Interest-earning Assets | 15,921,411 | 154,170 | 3.85% | 15,683,461 | 156,781 | 3.98% | 15,711,210 | 154,116 | 3.90% | |||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||
Cash and due from banks | 110,292 | 212,463 | 203,134 | |||||||||||||||||||||||||||||
Premises and equipment | 224,516 | 226,955 | 224,241 | |||||||||||||||||||||||||||||
Other assets | 1,073,302 | 1,008,304 | 1,055,521 | |||||||||||||||||||||||||||||
Less: allowance for loan losses | (189,029 | ) | (210,636 | ) | (192,163 | ) | ||||||||||||||||||||||||||
Total Assets | $ | 17,140,492 | $ | 16,920,547 | $ | 17,001,943 | ||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | $ | 3,145,658 | $ | 1,027 | 0.13% | $ | 2,966,994 | $ | 969 | 0.13% | $ | 3,047,191 | $ | 953 | 0.12% | |||||||||||||||||
Savings deposits | 3,548,504 | 1,171 | 0.13% | 3,410,030 | 1,042 | 0.12% | 3,468,958 | 1,061 | 0.12% | |||||||||||||||||||||||
Time deposits | 3,016,834 | 7,333 | 0.96% | 2,965,604 | 6,117 | 0.82% | 3,009,225 | 6,984 | 0.92% | |||||||||||||||||||||||
Total Interest-bearing Deposits | 9,710,996 | 9,531 | 0.39% | 9,342,628 | 8,128 | 0.35% | 9,525,374 | 8,998 | 0.37% | |||||||||||||||||||||||
Short-term borrowings | 417,838 | 138 | 0.13% | 1,099,709 | 520 | 0.19% | 667,397 | 297 | 0.18% | |||||||||||||||||||||||
FHLB advances and long-term debt | 1,086,321 | 11,887 | 4.36% | 888,378 | 10,857 | 4.87% | 995,486 | 11,129 | 4.45% | |||||||||||||||||||||||
Total Interest-bearing Liabilities | 11,215,155 | 21,556 | 0.76% | 11,330,715 | 19,505 | 0.68% | 11,188,257 | 20,424 | 0.73% | |||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | 3,630,780 | 3,318,073 | 3,514,033 | |||||||||||||||||||||||||||||
Other | 242,346 | 221,010 | 210,194 | |||||||||||||||||||||||||||||
Total Liabilities | 15,088,281 | 14,869,798 | 14,912,484 | |||||||||||||||||||||||||||||
Shareholders' equity | 2,052,211 | 2,050,749 | 2,089,459 | |||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,140,492 | $ | 16,920,547 | $ | 17,001,943 | ||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 132,614 | 3.31% | 137,276 | 3.48% | 133,692 | 3.39% | ||||||||||||||||||||||||||
Tax equivalent adjustment | (4,576 | ) | (4,324 | ) | (4,326 | ) | ||||||||||||||||||||||||||
Net interest income | $ | 128,038 | $ | 132,952 | $ | 129,366 | ||||||||||||||||||||||||||
(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: | ||||||||||||||||||||||||||||||||
Three Months Ended | % Change from | |||||||||||||||||||||||||||||||
December 31 | December 31 | September 30 | December 31 | September 30 | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 5,131,375 | $ | 5,065,963 | $ | 5,114,221 | 1.3 | % | 0.3 | % | ||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 3,723,211 | 3,639,690 | 3,657,047 | 2.3 | % | 1.8 | % | |||||||||||||||||||||||||
Real estate - home equity | 1,735,769 | 1,774,919 | 1,727,253 | (2.2 | )% | 0.5 | % | |||||||||||||||||||||||||
Real estate - residential mortgage | 1,378,452 | 1,331,987 | 1,369,087 | 3.5 | % | 0.7 | % | |||||||||||||||||||||||||
Real estate - construction | 697,741 | 581,306 | 663,922 | 20.0 | % | 5.1 | % | |||||||||||||||||||||||||
Consumer | 275,349 | 287,245 | 284,630 | (4.1 | )% | (3.3 | )% | |||||||||||||||||||||||||
Leasing and other | 114,256 | 111,456 | 106,661 | 2.5 | % | 7.1 | % | |||||||||||||||||||||||||
Total Loans, net of unearned income | $ | 13,056,153 | $ | 12,792,566 | $ | 12,922,821 | 2.1 | % | 1.0 | % | ||||||||||||||||||||||
Deposits, by type: | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,630,780 | $ | 3,318,073 | $ | 3,514,033 | 9.4 | % | 3.3 | % | ||||||||||||||||||||||
Interest-bearing demand | 3,145,658 | 2,966,994 | 3,047,191 | 6.0 | % | 3.2 | % | |||||||||||||||||||||||||
Savings deposits | 3,548,504 | 3,410,030 | 3,468,958 | 4.1 | % | 2.3 | % | |||||||||||||||||||||||||
Time deposits | 3,016,834 | 2,965,604 | 3,009,225 | 1.7 | % | 0.3 | % | |||||||||||||||||||||||||
Total Deposits | $ | 13,341,776 | $ | 12,660,701 | $ | 13,039,407 | 5.4 | % | 2.3 | % | ||||||||||||||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||||||||||||||
Customer repurchase agreements | $ | 183,331 | $ | 196,997 | $ | 202,809 | (6.9 | )% | (9.6 | )% | ||||||||||||||||||||||
Customer short-term promissory notes | 87,338 | 93,986 | 83,734 | (7.1 | )% | 4.3 | % | |||||||||||||||||||||||||
Federal funds purchased | 59,669 | 408,726 | 224,930 | (85.4 | )% | (73.5 | )% | |||||||||||||||||||||||||
Short-term FHLB advances and other borrowings | 87,500 | 400,000 | 155,924 | (78.1 | )% | (43.9 | )% | |||||||||||||||||||||||||
Total Short-term Borrowings | $ | 417,838 | $ | 1,099,709 | $ | 667,397 | (62.0 | )% | (37.4 | )% | ||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||||||
dollars in thousands | |||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Balance | Interest (1) | Yield/Rate | Balance | Interest (1) | Yield/Rate | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans, net of unearned income | $ | 12,885,180 | $ | 542,540 | 4.21 | % | $ | 12,578,524 | $ | 552,427 | 4.39 | % | |||||||||||
Taxable investment securities | 2,189,510 | 50,651 | 2.31 | % | 2,391,650 | 54,321 | 2.27 | % | |||||||||||||||
Tax-exempt investment securities | 261,825 | 13,810 | 5.27 | % | 285,174 | 14,577 | 5.11 | % | |||||||||||||||
Equity securities | 33,957 | 1,728 | 5.09 | % | 38,722 | 1,829 | 4.72 | % | |||||||||||||||
Total Investment Securities | 2,485,292 | 66,189 | 2.66 | % | 2,715,546 | 70,727 | 2.60 | % | |||||||||||||||
Loans held for sale | 17,524 | 786 | 4.49 | % | 36,561 | 1,551 | 4.24 | % | |||||||||||||||
Other interest-earning assets | 314,345 | 4,018 | 1.28 | % | 229,444 | 2,264 | 0.99 | % | |||||||||||||||
Total Interest-earning Assets | 15,702,341 | 613,533 | 3.91 | % | 15,560,075 | 626,969 | 4.03 | % | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||
Cash and due from banks | 177,664 | 207,931 | |||||||||||||||||||||
Premises and equipment | 224,903 | 226,041 | |||||||||||||||||||||
Other assets | 1,049,765 | 1,037,338 | |||||||||||||||||||||
Less: allowance for loan losses | (195,166 | ) | (220,048 | ) | |||||||||||||||||||
Total Assets | $ | 16,959,507 | $ | 16,811,337 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | $ | 3,013,879 | $ | 3,793 | 0.13 | % | $ | 2,822,583 | $ | 3,656 | 0.13 | % | |||||||||||
Savings deposits | 3,431,957 | 4,298 | 0.13 | % | 3,363,943 | 4,096 | 0.12 | % | |||||||||||||||
Time deposits | 2,992,920 | 27,019 | 0.90 | % | 3,129,162 | 29,018 | 0.93 | % | |||||||||||||||
Total Interest-bearing Deposits | 9,438,756 | 35,110 | 0.37 | % | 9,315,688 | 36,770 | 0.39 | % | |||||||||||||||
Short-term borrowings | 832,839 | 1,608 | 0.19 | % | 1,196,323 | 2,420 | 0.20 | % | |||||||||||||||
FHLB advances and long-term debt | 965,601 | 44,493 | 4.61 | % | 889,461 | 43,305 | 4.87 | % | |||||||||||||||
Total Interest-bearing Liabilities | 11,237,196 | 81,211 | 0.72 | % | 11,401,472 | 82,495 | 0.72 | % | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | 3,428,907 | 3,157,496 | |||||||||||||||||||||
Other | 221,764 | 198,548 | |||||||||||||||||||||
Total Liabilities | 14,887,867 | 14,757,516 | |||||||||||||||||||||
Shareholders' equity | 2,071,640 | 2,053,821 | |||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 16,959,507 | $ | 16,811,337 | |||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 532,322 | 3.39 | % | 544,474 | 3.50 | % | |||||||||||||||||
Tax equivalent adjustment | (17,455 | ) | (17,280 | ) | |||||||||||||||||||
Net interest income | $ | 514,867 | $ | 527,194 | |||||||||||||||||||
(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 | |||||||||||||||||||||||
2014 | 2013 | % Change | |||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 5,117,433 | $ | 4,864,460 | 5.2 | % | |||||||||||||||||
Commercial - industrial, financial and agricultural | 3,659,059 | 3,680,772 | (0.6 | )% | |||||||||||||||||||
Real estate - home equity | 1,738,449 | 1,734,622 | 0.2 | % | |||||||||||||||||||
Real estate - residential mortgage | 1,355,876 | 1,312,127 | 3.3 | % | |||||||||||||||||||
Real estate - construction | 631,968 | 591,540 | 6.8 | % | |||||||||||||||||||
Consumer | 277,853 | 299,127 | (7.1 | )% | |||||||||||||||||||
Leasing and other | 104,542 | 95,876 | 9.0 | % | |||||||||||||||||||
Total Loans, net of unearned income | $ | 12,885,180 | $ | 12,578,524 | 2.4 | % | |||||||||||||||||
Deposits, by type: | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,428,907 | $ | 3,157,496 | 8.6 | % | |||||||||||||||||
Interest-bearing demand | 3,013,879 | 2,822,583 | 6.8 | % | |||||||||||||||||||
Savings deposits | 3,431,957 | 3,363,943 | 2.0 | % | |||||||||||||||||||
Time deposits | 2,992,920 | 3,129,162 | (4.4 | )% | |||||||||||||||||||
Total Deposits | $ | 12,867,663 | $ | 12,473,184 | 3.2 | % | |||||||||||||||||
Short-term borrowings, by type: | |||||||||||||||||||||||
Customer repurchase agreements | $ | 197,432 | $ | 186,851 | 5.7 | % | |||||||||||||||||
Customer short-term promissory notes | 88,670 | 98,882 | (10.3 | )% | |||||||||||||||||||
Federal funds purchased | 285,169 | 612,803 | (53.5 | )% | |||||||||||||||||||
Short-term FHLB advances and other borrowings | 261,568 | 297,787 | (12.2 | )% | |||||||||||||||||||
Total Short-term Borrowings | $ | 832,839 | $ | 1,196,323 | (30.4 | )% | |||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
ASSET QUALITY INFORMATION (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
Dec 31 | Dec 31 | Sep 30 | Dec 31 | |||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2014 | 2013 | ||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 191,108 | $ | 212,838 | $ | 193.442 | $ | 204,917 | $ | 225,439 | ||||||||||||||||||||||
Loans charged off: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | (8,712 | ) | (5,527 | ) | (5,167 | ) | (24,516 | ) | (30,383 | ) | ||||||||||||||||||||||
Consumer and home equity | (1,696 | ) | (1,879 | ) | (2,030 | ) | (7,811 | ) | (10,070 | ) | ||||||||||||||||||||||
Real estate - commercial mortgage | (920 | ) | (7,779 | ) | (1,557 | ) | (6,004 | ) | (20,829 | ) | ||||||||||||||||||||||
Real estate - residential mortgage | (752 | ) | (1,423 | ) | (231 | ) | (2,918 | ) | (9,705 | ) | ||||||||||||||||||||||
Real estate - construction | (464 | ) | (1,391 | ) | (313 | ) | (1,209 | ) | (6,572 | ) | ||||||||||||||||||||||
Leasing and other | (701 | ) | (616 | ) | (306 | ) | (2,135 | ) | (2,653 | ) | ||||||||||||||||||||||
Total loans charged off | (13,245 | ) | (18,615 | ) | (9,604 | ) | (44,593 | ) | (80,212 | ) | ||||||||||||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 1,724 | 5,851 | 1,013 | 4,256 | 9,281 | |||||||||||||||||||||||||||
Consumer and home equity | 419 | 451 | 784 | 2,347 | 2,378 | |||||||||||||||||||||||||||
Real estate - commercial mortgage | 319 | 740 | 1,167 | 1,960 | 3,494 | |||||||||||||||||||||||||||
Real estate - residential mortgage | 132 | 106 | 95 | 451 | 548 | |||||||||||||||||||||||||||
Real estate - construction | 2,325 | 888 | 470 | 3,177 | 2,682 | |||||||||||||||||||||||||||
Leasing and other | 149 | 158 | 241 | 916 | 807 | |||||||||||||||||||||||||||
Recoveries of loans previously charged off | 5,068 | 8,194 | 3,770 | 13,107 | 19,190 | |||||||||||||||||||||||||||
Net loans charged off | (8,177 | ) | (10,421 | ) | (5.834 | ) | (31,486 | ) | (61,022 | ) | ||||||||||||||||||||||
Provision for credit losses | 3,000 | 2,500 | 3,500 | 12,500 | 40,500 | |||||||||||||||||||||||||||
Balance at end of period | $ | 185,931 | $ | 204,917 | $ | 191,108 | $ | 185,931 | $ | 204,917 | ||||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.25 | % | 0.33 | % | 0.18 | % | 0.24 | % | 0.49 | % | ||||||||||||||||||||||
NON-PERFORMING ASSETS: | ||||||||||||||||||||||||||||||||
Non-accrual loans | $ | 121,080 | $ | 133,753 | $ | 126,420 | ||||||||||||||||||||||||||
Loans 90 days past due and accruing | 17,402 | 20,524 | 17,428 | |||||||||||||||||||||||||||||
Total non-performing loans | 138,482 | 154,277 | 143,848 | |||||||||||||||||||||||||||||
Other real estate owned | 12,022 | 15,052 | 13,489 | |||||||||||||||||||||||||||||
Total non-performing assets | $ | 150,504 | $ | 169,329 | $ | 157,337 | ||||||||||||||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 45,237 | $ | 44,068 | $ | 44,602 | ||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 30,388 | 38,021 | 33,277 | |||||||||||||||||||||||||||||
Real estate - residential mortgage | 28,995 | 31,347 | 28,135 | |||||||||||||||||||||||||||||
Consumer and home equity | 17,330 | 19,526 | 17,586 | |||||||||||||||||||||||||||||
Real estate - construction | 16,399 | 21,267 | 19,860 | |||||||||||||||||||||||||||||
Leasing | 133 | 48 | 388 | |||||||||||||||||||||||||||||
Total non-performing loans | $ | 138,482 | $ | 154,277 | $ | 143,848 | ||||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE: | ||||||||||||||||||||||||||||||||
Real-estate - residential mortgage | $ | 31,308 | $ | 28,815 | $ | 30,850 | ||||||||||||||||||||||||||
Real-estate - commercial mortgage | 18,822 | 19,758 | 18,869 | |||||||||||||||||||||||||||||
Real estate - construction | 9,241 | 10,117 | 9,251 | |||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 5,237 | 8,045 | 5,115 | |||||||||||||||||||||||||||||
Consumer and home equity | 3.013 | 1,376 | 2,927 | |||||||||||||||||||||||||||||
Total accruing TDRs | $ | 67,621 | $ | 68,111 | $ | 67,012 | ||||||||||||||||||||||||||
Non-accrual TDRs (1) | 25,235 | 30,209 | 27,724 | |||||||||||||||||||||||||||||
Total TDRs | $ | 92,856 | $ | 98,320 | $ | 94,736 | ||||||||||||||||||||||||||
(1) Included within non-accrual loans above. | ||||||||||||||||||||||||||||||||
DELINQUENCY RATES, BY TYPE: | |||||||||||||||||||||||||||||||||||
Dec 31, 2014 | Dec 31, 2013 | Sep 30, 2014 | |||||||||||||||||||||||||||||||||
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 | 0.35 | % | 0.87 | % | 1.22 | % | 0.38 | % | 0.87 | % | 1.25 | % | 0.48 | % | 0.86 | % | 1.34 | % | |||||||||||||||||
Commercial - industrial, financial and agricultural | 0.17 | % | 0.81 | % | 0.98 | % | 0.30 | % | 1.04 | % | 1.34 | % | 0.28 | % | 0.91 | % | 1.19 | % | |||||||||||||||||
Real estate - construction | 0.02 | % | 2.38 | % | 2.40 | % | 0.11 | % | 3.71 | % | 3.82 | % | 0.03 | % | 2.89 | % | 2.92 | % | |||||||||||||||||
Real estate - residential mortgage | 1.96 | % | 2.10 | % | 4.06 | % | 1.74 | % | 2.34 | % | 4.08 | % | 1.81 | % | 2.06 | % | 3.87 | % | |||||||||||||||||
Consumer, home equity, leasing and other | 0.80 | % | 0.82 | % | 1.62 | % | 1.10 | % | 0.91 | % | 2.01 | % | 0.74 | % | 0.85 | % | 1.59 | % | |||||||||||||||||
Total | 0.52 | % | 1.06 | % | 1.58 | % | 0.61 | % | 1.20 | % | 1.81 | % | 0.58 | % | 1.11 | % | 1.69 | % | |||||||||||||||||
(2) Includes non-accrual loans | |||||||||||||||||||||||||||||||||||
ASSET QUALITY RATIOS: | |||||||||||||||||||||||||||||||||||
Dec 31 | Dec 31 | Sep 30 | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | |||||||||||||||||||||||||||||||||
Non-accrual loans to total loans | 0.92 | % | 1.05 | % | 0.97 | % | |||||||||||||||||||||||||||||
Non-performing assets to total loans and OREO | 1.15 | % | 1.32 | % | 1.21 | % | |||||||||||||||||||||||||||||
Non-performing assets to total assets | 0.88 | % | 1.00 | % | 0.91 | % | |||||||||||||||||||||||||||||
Allowance for credit losses to loans outstanding | 1.42 | % | 1.60 | % | 1.47 | % | |||||||||||||||||||||||||||||
Allowance for credit losses to non-performing loans | 134.26 | % | 132.82 | % | 132.85 | % | |||||||||||||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.12 | % | 9.76 | % | 9.06 | % | |||||||||||||||||||||||||||||
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 and annual 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: | ||||||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||||
Dec 31 | Dec 31 | Sep 30 | Dec 31 | Dec 31 | |||||||||||||||||||||
2014 | 2013 | 2014 | 2014 | 2013 | |||||||||||||||||||||
Shareholders' equity (tangible), per share | |||||||||||||||||||||||||
Shareholders' equity | $ | 1,996,665 | $ | 2,063,187 | $ | 2,078,006 | |||||||||||||||||||
Less: Goodwill and intangible assets | (531,803 | ) | (533,076 | ) | (532,117 | ) | |||||||||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,464,862 | $ | 1,530,111 | $ | 1,545,889 | |||||||||||||||||||
Shares outstanding, end of period (denominator) | 178,924 | 192,652 | 185,158 | ||||||||||||||||||||||
Shareholders' equity (tangible), per share | $ | 8.19 | $ | 7.94 | $ | 8.35 | |||||||||||||||||||
Return on average common shareholders' equity (tangible) | |||||||||||||||||||||||||
Net income | $ | 37,949 | $ | 42,083 | $ | 38,566 | $ | 157,894 | $ | 161,840 | |||||||||||||||
Plus: Intangible amortization, net of tax | 205 | 543 | 204 | 818 | 1,585 | ||||||||||||||||||||
Numerator | $ | 38,154 | $ | 42,626 | $ | 38,770 | $ | 158,712 | $ | 163,425 | |||||||||||||||
Average shareholders' equity | $ | 2,052,211 | $ | 2,050,749 | $ | 2,089,459 | $ | 2,071,640 | $ | 2,053,821 | |||||||||||||||
Less: Average goodwill and intangible assets | (531,955 | ) | (533,597 | ) | (532,271 | ) | (532,425 | ) | (534,431 | ) | |||||||||||||||
Average tangible shareholders' equity (denominator) | $ | 1,520,256 | $ | 1,517,152 | $ | 1,557,188 | $ | 1,539,215 | $ | 1,519,390 | |||||||||||||||
Return on average common shareholders' equity (tangible), annualized | 9.96 | % | 11.15 | % | 9.88 | % | 10.31 | % | 10.76 | % | |||||||||||||||
Efficiency ratio | |||||||||||||||||||||||||
Non-interest expense | $ | 117,720 | $ | 116,762 | $ | 115,798 | $ | 459,246 | $ | 461,433 | |||||||||||||||
Less: Intangible amortization | (315 | ) | (835 | ) | (314 | ) | (1,259 | ) | (2,438 | ) | |||||||||||||||
Numerator | $ | 117,405 | $ | 115,927 | $ | 115,484 | $ | 457,987 | $ | 458,995 | |||||||||||||||
Net interest income (fully taxable equivalent) | $ | 132,614 | $ | 137,276 | $ | 133,692 | $ | 532,322 | $ | 544,474 | |||||||||||||||
Plus: Total Non-interest income | 42,101 | 40,732 | 41,900 | 167,379 | 187,664 | ||||||||||||||||||||
Less: Investment securities gains | (848 | ) | (33 | ) | (81 | ) | (2,041 | ) | (8,004 | ) | |||||||||||||||
Denominator | $ | 173,867 | $ | 177,975 | $ | 175,511 | $ | 697,660 | $ | 724,134 | |||||||||||||||
Efficiency ratio | 67.53 | % | 65.14 | % | 65.80 | % | 65.65 | % | 63.39 | % | |||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | |||||||||||||||||||||||||
Non-performing assets (numerator) | $ | 150,504 | $ | 169,329 | $ | 157,337 | |||||||||||||||||||
Tangible shareholders' equity | $ | 1,464,862 | $ | 1,530,111 | $ | 1,545,889 | |||||||||||||||||||
Plus: Allowance for credit losses | 185,931 | 204,917 | 191,108 | ||||||||||||||||||||||
Tangible shareholders' equity and allowance for credit losses (denominator) | $ | 1,650,793 | $ | 1,735,028 | $ | 1,736,997 | |||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.12 | % | 9.76 | % | 9.06 | % | |||||||||||||||||||