Attached files
| file | filename |
|---|---|
| EX-99.1 - PRESS RELEASE DATED OCTOBER 20, 2015 - FULTON FINANCIAL CORP | exhibit9919-30x15.htm |
| 8-K - 8-K - FULTON FINANCIAL CORP | a8-k9x30x15.htm |
| EX-99.3 - PRESENTATION MATERIALS TO BE DISCUSSED DURING THE CONFERENCE CALL AND WEBCAST - FULTON FINANCIAL CORP | q3earningsccpresentation.htm |
Exhibit 99.2 | ||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||
dollars in thousands | ||||||||||||||||||
% Change from | ||||||||||||||||||
September 30 | September 30 | June 30 | September 30 | June 30 | ||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | ||||||||||||||
ASSETS | ||||||||||||||||||
Cash and due from banks | $ | 93,803 | $ | 220,946 | $ | 100,455 | (57.5 | )% | (6.6 | )% | ||||||||
Other interest-earning assets | 579,920 | 377,579 | 387,324 | 53.6 | % | 49.7 | % | |||||||||||
Loans held for sale | 26,937 | 25,212 | 33,980 | 6.8 | % | (20.7 | )% | |||||||||||
Investment securities | 2,436,337 | 2,470,609 | 2,440,492 | (1.4 | )% | (0.2 | )% | |||||||||||
Loans, net of unearned income | 13,536,361 | 13,030,405 | 13,244,230 | 3.9 | % | 2.2 | % | |||||||||||
Allowance for loan losses | (167,136 | ) | (189,477 | ) | (167,485 | ) | (11.8 | )% | (0.2 | )% | ||||||||
Net loans | 13,369,225 | 12,840,928 | 13,076,745 | 4.1 | % | 2.2 | % | |||||||||||
Premises and equipment | 225,705 | 224,441 | 226,794 | 0.6 | % | (0.5 | )% | |||||||||||
Accrued interest receivable | 42,846 | 43,544 | 41,193 | (1.6 | )% | 4.0 | % | |||||||||||
Goodwill and intangible assets | 531,562 | 532,117 | 531,567 | (0.1 | )% | — | % | |||||||||||
Other assets | 531,724 | 502,798 | 526,923 | 5.8 | % | 0.9 | % | |||||||||||
Total Assets | $ | 17,838,059 | $ | 17,238,174 | $ | 17,365,473 | 3.5 | % | 2.7 | % | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Deposits | $ | 14,084,394 | $ | 13,333,627 | $ | 13,505,709 | 5.6 | % | 4.3 | % | ||||||||
Short-term borrowings | 431,631 | 564,952 | 409,035 | (23.6 | )% | 5.5 | % | |||||||||||
Other liabilities | 316,697 | 243,300 | 293,271 | 30.2 | % | 8.0 | % | |||||||||||
FHLB advances and long-term debt | 979,433 | 1,018,289 | 1,132,641 | (3.8 | )% | (13.5 | )% | |||||||||||
Total Liabilities | 15,812,155 | 15,160,168 | 15,340,656 | 4.3 | % | 3.1 | % | |||||||||||
Shareholders' equity | 2,025,904 | 2,078,006 | 2,024,817 | (2.5 | )% | 0.1 | % | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,838,059 | $ | 17,238,174 | $ | 17,365,473 | 3.5 | % | 2.7 | % | ||||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||
Loans, by type: | ||||||||||||||||||
Real estate - commercial mortgage | $ | 5,339,928 | $ | 5,156,979 | $ | 5,237,800 | 3.5 | % | 1.9 | % | ||||||||
Commercial - industrial, financial and agricultural | 3,929,908 | 3,691,262 | 3,806,699 | 6.5 | % | 3.2 | % | |||||||||||
Real estate - home equity | 1,693,649 | 1,733,036 | 1,689,688 | (2.3 | )% | 0.2 | % | |||||||||||
Real estate - residential mortgage | 1,382,085 | 1,372,033 | 1,369,103 | 0.7 | % | 0.9 | % | |||||||||||
Real estate - construction | 769,565 | 687,728 | 731,925 | 11.9 | % | 5.1 | % | |||||||||||
Consumer | 271,696 | 278,219 | 272,494 | (2.3 | )% | (0.3 | )% | |||||||||||
Leasing and other | 149,530 | 111,148 | 136,521 | 34.5 | % | 9.5 | % | |||||||||||
Total Loans, net of unearned income | $ | 13,536,361 | $ | 13,030,405 | $ | 13,244,230 | 3.9 | % | 2.2 | % | ||||||||
Deposits, by type: | ||||||||||||||||||
Noninterest-bearing demand | $ | 3,906,228 | $ | 3,556,810 | $ | 3,805,165 | 9.8 | % | 2.7 | % | ||||||||
Interest-bearing demand | 3,362,336 | 3,164,514 | 3,129,903 | 6.3 | % | 7.4 | % | |||||||||||
Savings deposits | 3,880,103 | 3,620,919 | 3,566,888 | 7.2 | % | 8.8 | % | |||||||||||
Time deposits | 2,935,727 | 2,991,384 | 3,003,753 | (1.9 | )% | (2.3 | )% | |||||||||||
Total Deposits | $ | 14,084,394 | $ | 13,333,627 | $ | 13,505,709 | 5.6 | % | 4.3 | % | ||||||||
Short-term borrowings, by type: | ||||||||||||||||||
Customer repurchase agreements | $ | 145,225 | $ | 195,121 | $ | 169,918 | (25.6 | )% | (14.5 | )% | ||||||||
Customer short-term promissory notes | 80,879 | 78,225 | 74,059 | 3.4 | % | 9.2 | % | |||||||||||
Short-term FHLB advances | 200,000 | 285,000 | 160,000 | (29.8 | )% | 25.0 | % | |||||||||||
Federal funds purchased | 5,527 | 6,606 | 5,058 | (16.3 | )% | 9.3 | % | |||||||||||
Total Short-term Borrowings | $ | 431,631 | $ | 564,952 | $ | 409,035 | (23.6 | )% | 5.5 | % | ||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||||||||||||||||
in thousands, except per-share data and percentages | ||||||||||||||||||||||||||||||||
Three Months Ended | % Change from | Nine Months Ended | ||||||||||||||||||||||||||||||
Sep 30 | Sep 30 | Jun 30 | Sep 30 | Jun 30 | Sep 30 | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2015 | 2014 | % Change | |||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||||||||
Interest income | $ | 146,228 | $ | 149,790 | $ | 144,229 | (2.4 | )% | 1.4 | % | $ | 436,229 | $ | 446,484 | (2.3 | )% | ||||||||||||||||
Interest expense | 20,534 | 20,424 | 21,309 | 0.5 | % | (3.6 | )% | 64,034 | 59,655 | 7.3 | % | |||||||||||||||||||||
Net Interest Income | 125,694 | 129,366 | 122,920 | (2.8 | )% | 2.3 | % | 372,195 | 386,829 | (3.8 | )% | |||||||||||||||||||||
Provision for credit losses | 1,000 | 3,500 | 2,200 | (71.4 | )% | (54.5 | )% | (500 | ) | 9,500 | N/M | |||||||||||||||||||||
Net Interest Income after Provision | 124,694 | 125,866 | 120,720 | (0.9 | )% | 3.3 | % | 372,695 | 377,329 | (1.2 | )% | |||||||||||||||||||||
Non-Interest Income: | ||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 12,982 | 12,801 | 12,637 | 1.4 | % | 2.7 | % | 37,188 | 37,064 | 0.3 | % | |||||||||||||||||||||
Investment management and trust services | 11,237 | 11,120 | 11,011 | 1.1 | % | 2.1 | % | 33,137 | 33,417 | (0.8 | )% | |||||||||||||||||||||
Other service charges and fees | 10,965 | 9,954 | 10,988 | 10.2 | % | (0.2 | )% | 31,316 | 29,407 | 6.5 | % | |||||||||||||||||||||
Mortgage banking income | 3,864 | 4,038 | 5,339 | (4.3 | )% | (27.6 | )% | 13,891 | 13,384 | 3.8 | % | |||||||||||||||||||||
Investment securities gains | 1,730 | 81 | 2,415 | N/M | (28.4 | )% | 8,290 | 1,193 | 594.9 | % | ||||||||||||||||||||||
Other | 3,996 | 3,906 | 4,099 | 2.3 | % | (2.5 | )% | 12,178 | 10,813 | 12.6 | % | |||||||||||||||||||||
Total Non-Interest Income | 44,774 | 41,900 | 46,489 | 6.9 | % | (3.7 | )% | 136,000 | 125,278 | 8.6 | % | |||||||||||||||||||||
Non-Interest Expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | 65,308 | 62,434 | 65,067 | 4.6 | % | 0.4 | % | 195,365 | 185,623 | 5.2 | % | |||||||||||||||||||||
Net occupancy expense | 10,710 | 11,582 | 11,809 | (7.5 | )% | (9.3 | )% | 36,211 | 36,649 | (1.2 | )% | |||||||||||||||||||||
Other outside services | 7,373 | 8,632 | 8,125 | (14.6 | )% | (9.3 | )% | 21,248 | 19,684 | 7.9 | % | |||||||||||||||||||||
Loss on redemption of trust preferred securities | 5,626 | — | — | N/M | N/M | 5,626 | — | N/M | ||||||||||||||||||||||||
Data processing | 5,105 | 4,689 | 4,894 | 8.9 | % | 4.3 | % | 14,767 | 12,816 | 15.2 | % | |||||||||||||||||||||
Software | 3,984 | 3,353 | 3,376 | 18.8 | % | 18.0 | % | 10,678 | 9,487 | 12.6 | % | |||||||||||||||||||||
Equipment expense | 3,595 | 3,307 | 3,335 | 8.7 | % | 7.8 | % | 10,888 | 10,269 | 6.0 | % | |||||||||||||||||||||
FDIC insurance expense | 2,867 | 2,882 | 2,885 | (0.5 | )% | (0.6 | )% | 8,574 | 8,186 | 4.7 | % | |||||||||||||||||||||
Professional fees | 2,828 | 3,252 | 2,731 | (13.0 | )% | 3.6 | % | 8,430 | 9,715 | (13.2 | )% | |||||||||||||||||||||
Marketing | 2,102 | 1,798 | 2,235 | 16.9 | % | (6.0 | )% | 5,570 | 5,719 | (2.6 | )% | |||||||||||||||||||||
Operating risk loss | 1,136 | 1,242 | 674 | (8.5 | )% | 68.5 | % | 2,637 | 3,786 | (30.3 | )% | |||||||||||||||||||||
Other real estate owned and repossession expense | 1,016 | 1,303 | 129 | (22.0 | )% | 687.6 | % | 2,507 | 3,034 | (17.4 | )% | |||||||||||||||||||||
Intangible amortization | 5 | 314 | 106 | (98.4 | )% | (95.3 | )% | 241 | 944 | (74.5 | )% | |||||||||||||||||||||
Other | 13,234 | 11,010 | 12,988 | 20.2 | % | 1.9 | % | 38,979 | 35,614 | 9.4 | % | |||||||||||||||||||||
Total Non-Interest Expense | 124,889 | 115,798 | 118,354 | 7.9 | % | 5.5 | % | 361,721 | 341,526 | 5.9 | % | |||||||||||||||||||||
Income Before Income Taxes | 44,579 | 51,968 | 48,855 | (14.2 | )% | (8.8 | )% | 146,974 | 161,081 | (8.8 | )% | |||||||||||||||||||||
Income tax expense | 10,328 | 13,402 | 12,175 | (22.9 | )% | (15.2 | )% | 36,007 | 41,136 | (12.5 | )% | |||||||||||||||||||||
Net Income | $ | 34,251 | $ | 38,566 | $ | 36,680 | (11.2 | )% | (6.6 | )% | $ | 110,967 | $ | 119,945 | (7.5 | )% | ||||||||||||||||
PER SHARE: | ||||||||||||||||||||||||||||||||
Net income: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.20 | $ | 0.21 | $ | 0.21 | (4.8 | )% | (4.8 | )% | $ | 0.63 | $ | 0.64 | (1.6 | )% | ||||||||||||||||
Diluted | 0.20 | 0.21 | 0.21 | (4.8 | )% | (4.8 | )% | 0.63 | 0.64 | (1.6 | )% | |||||||||||||||||||||
Cash dividends | $ | 0.09 | $ | 0.08 | $ | 0.09 | 12.5 | % | — | % | $ | 0.27 | $ | 0.24 | 12.5 | % | ||||||||||||||||
Shareholders' equity | 11.66 | 11.22 | 11.50 | 3.9 | % | 1.4 | % | 11.66 | 11.22 | 3.9 | % | |||||||||||||||||||||
Shareholders' equity (tangible) | 8.60 | 8.35 | 8.48 | 3.0 | % | 1.4 | % | 8.60 | 8.35 | 3.0 | % | |||||||||||||||||||||
Weighted average shares (basic) | 174,338 | 186,109 | 176,433 | (6.3 | )% | (1.2 | )% | 176,399 | 187,893 | (6.1 | )% | |||||||||||||||||||||
Weighted average shares (diluted) | 175,342 | 186,955 | 177,531 | (6.2 | )% | (1.2 | )% | 177,428 | 188,863 | (6.1 | )% | |||||||||||||||||||||
Shares outstanding, end of period | 173,771 | 185,158 | 176,019 | (6.1 | )% | (1.3 | )% | 173,771 | 185,158 | (6.1 | )% | |||||||||||||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||||||||||||||||||
Return on average assets | 0.78 | % | 0.90 | % | 0.86 | % | 0.86 | % | 0.95 | % | ||||||||||||||||||||||
Return on average shareholders' equity | 6.72 | % | 7.32 | % | 7.24 | % | 7.33 | % | 7.72 | % | ||||||||||||||||||||||
Return on average shareholders' equity (tangible) | 9.11 | % | 9.88 | % | 9.83 | % | 9.96 | % | 10.43 | % | ||||||||||||||||||||||
Net interest margin | 3.18 | % | 3.39 | % | 3.20 | % | 3.22 | % | 3.42 | % | ||||||||||||||||||||||
Efficiency ratio | 68.82 | % | 65.80 | % | 68.94 | % | 69.30 | % | 65.02 | % | ||||||||||||||||||||||
N/M - Not meaningful | ||||||||||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2015 | September 30, 2014 | June 30, 2015 | ||||||||||||||||||||||||||||||
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 | $ | 13,369,874 | $ | 135,268 | 4.02% | $ | 12,922,821 | $ | 136,773 | 4.20% | $ | 13,192,600 | $ | 133,339 | 4.05% | |||||||||||||||||
Taxable investment securities | 2,148,403 | 11,252 | 2.09% | 2,181,099 | 12,278 | 2.25% | 2,048,558 | 10,944 | 2.14% | |||||||||||||||||||||||
Tax-exempt investment securities | 230,178 | 2,929 | 5.09% | 256,303 | 3,414 | 5.33% | 216,355 | 2,894 | 5.35% | |||||||||||||||||||||||
Equity securities | 18,280 | 257 | 5.58% | 34,002 | 438 | 5.12% | 27,618 | 379 | 5.50% | |||||||||||||||||||||||
Total Investment Securities | 2,396,861 | 14,438 | 2.41% | 2,471,404 | 16,130 | 2.61% | 2,292,531 | 14,217 | 2.48% | |||||||||||||||||||||||
Loans held for sale | 20,704 | 194 | 3.74% | 23,699 | 237 | 4.01% | 26,335 | 265 | 4.03% | |||||||||||||||||||||||
Other interest-earning assets | 477,145 | 884 | 0.74% | 293,286 | 976 | 1.33% | 439,425 | 933 | 0.85% | |||||||||||||||||||||||
Total Interest-earning Assets | 16,264,584 | 150,784 | 3.68% | 15,711,210 | 154,116 | 3.90% | 15,950,891 | 148,754 | 3.74% | |||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||
Cash and due from banks | 104,622 | 203,134 | 104,723 | |||||||||||||||||||||||||||||
Premises and equipment | 226,446 | 224,241 | 226,569 | |||||||||||||||||||||||||||||
Other assets | 1,097,600 | 1,055,521 | 1,094,071 | |||||||||||||||||||||||||||||
Less: allowance for loan losses | (168,770 | ) | (192,163 | ) | (176,085 | ) | ||||||||||||||||||||||||||
Total Assets | $ | 17,524,482 | $ | 17,001,943 | $ | 17,200,169 | ||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | $ | 3,316,532 | $ | 1,122 | 0.13% | $ | 3,047,191 | $ | 953 | 0.12% | $ | 3,152,697 | $ | 987 | 0.13% | |||||||||||||||||
Savings deposits | 3,714,282 | 1,436 | 0.15% | 3,468,958 | 1,061 | 0.12% | 3,568,579 | 1,247 | 0.14% | |||||||||||||||||||||||
Time deposits | 2,963,774 | 7,659 | 1.03% | 3,009,225 | 6,984 | 0.92% | 3,027,520 | 7,819 | 1.04% | |||||||||||||||||||||||
Total Interest-bearing Deposits | 9,994,588 | 10,217 | 0.41% | 9,525,374 | 8,998 | 0.37% | 9,748,796 | 10,053 | 0.41% | |||||||||||||||||||||||
Short-term borrowings | 324,685 | 92 | 0.11% | 667,397 | 297 | 0.18% | 379,988 | 103 | 0.11% | |||||||||||||||||||||||
FHLB advances and long-term debt | 996,247 | 10,225 | 4.09% | 995,486 | 11,129 | 4.45% | 1,026,987 | 11,153 | 4.35% | |||||||||||||||||||||||
Total Interest-bearing Liabilities | 11,315,520 | 20,534 | 0.72% | 11,188,257 | 20,424 | 0.73% | 11,155,771 | 21,309 | 0.77% | |||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | 3,904,176 | 3,514,033 | 3,734,880 | |||||||||||||||||||||||||||||
Other | 281,957 | 210,194 | 277,730 | |||||||||||||||||||||||||||||
Total Liabilities | 15,501,653 | 14,912,484 | 15,168,381 | |||||||||||||||||||||||||||||
Shareholders' equity | 2,022,829 | 2,089,459 | 2,031,788 | |||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,524,482 | $ | 17,001,943 | $ | 17,200,169 | ||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 130,250 | 3.18% | 133,692 | 3.39% | 127,445 | 3.20% | ||||||||||||||||||||||||||
Tax equivalent adjustment | (4,556 | ) | (4,326 | ) | (4,525 | ) | ||||||||||||||||||||||||||
Net interest income | $ | 125,694 | $ | 129,366 | $ | 122,920 | ||||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||||||||
September 30 | September 30 | June 30 | September 30 | June 30 | ||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | ||||||||||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 5,242,021 | $ | 5,114,221 | $ | 5,210,540 | 2.5 | % | 0.6 | % | ||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 3,887,161 | 3,657,047 | 3,836,397 | 6.3 | % | 1.3 | % | |||||||||||||||||||||||||
Real estate - home equity | 1,692,860 | 1,727,253 | 1,695,171 | (2.0 | )% | (0.1 | )% | |||||||||||||||||||||||||
Real estate - residential mortgage | 1,381,141 | 1,369,087 | 1,356,464 | 0.9 | % | 1.8 | % | |||||||||||||||||||||||||
Real estate - construction | 753,584 | 663,922 | 698,685 | 13.5 | % | 7.9 | % | |||||||||||||||||||||||||
Consumer | 270,391 | 284,630 | 265,354 | (5.0 | )% | 1.9 | % | |||||||||||||||||||||||||
Leasing and other | 142,716 | 106,661 | 129,989 | 33.8 | % | 9.8 | % | |||||||||||||||||||||||||
Total Loans, net of unearned income | $ | 13,369,874 | $ | 12,922,821 | $ | 13,192,600 | 3.5 | % | 1.3 | % | ||||||||||||||||||||||
Deposits, by type: | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,904,176 | $ | 3,514,033 | $ | 3,734,880 | 11.1 | % | 4.5 | % | ||||||||||||||||||||||
Interest-bearing demand | 3,316,532 | 3,047,191 | 3,152,697 | 8.8 | % | 5.2 | % | |||||||||||||||||||||||||
Savings deposits | 3,714,282 | 3,468,958 | 3,568,579 | 7.1 | % | 4.1 | % | |||||||||||||||||||||||||
Time deposits | 2,963,774 | 3,009,225 | 3,027,520 | (1.5 | )% | (2.1 | )% | |||||||||||||||||||||||||
Total Deposits | $ | 13,898,764 | $ | 13,039,407 | $ | 13,483,676 | 6.6 | % | 3.1 | % | ||||||||||||||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||||||||||||||
Customer repurchase agreements | $ | 149,415 | $ | 202,809 | $ | 179,804 | (26.3 | )% | (16.9 | )% | ||||||||||||||||||||||
Customer short-term promissory notes | 79,308 | 83,734 | 80,073 | (5.3 | )% | (1.0 | )% | |||||||||||||||||||||||||
Federal funds purchased | 85,092 | 224,930 | 108,078 | (62.2 | )% | (21.3 | )% | |||||||||||||||||||||||||
Short-term FHLB advances and other borrowings | 10,870 | 155,924 | 12,033 | (93.0 | )% | (9.7 | )% | |||||||||||||||||||||||||
Total Short-term Borrowings | $ | 324,685 | $ | 667,397 | $ | 379,988 | (51.4 | )% | (14.6 | )% | ||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||||||
dollars in thousands | |||||||||||||||||||||||
Nine Months Ended September 30 | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Balance | Interest (1) | Yield/Rate | Balance | Interest (1) | Yield/Rate | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans, net of unearned income | $ | 13,220,339 | $ | 401,662 | 4.06 | % | $ | 12,827,563 | $ | 405,904 | 4.23 | % | |||||||||||
Taxable investment securities | 2,068,025 | 33,478 | 2.16 | % | 2,216,344 | 37,962 | 2.28 | % | |||||||||||||||
Tax-exempt investment securities | 225,209 | 9,035 | 5.35 | % | 268,604 | 10,561 | 5.24 | % | |||||||||||||||
Equity securities | 25,985 | 1,086 | 5.59 | % | 33,949 | 1,286 | 5.06 | % | |||||||||||||||
Total Investment Securities | 2,319,219 | 43,599 | 2.51 | % | 2,518,897 | 49,809 | 2.64 | % | |||||||||||||||
Loans held for sale | 21,360 | 632 | 3.94 | % | 18,259 | 585 | 4.27 | % | |||||||||||||||
Other interest-earning assets | 463,545 | 3,922 | 1.13 | % | 263,797 | 3,065 | 1.55 | % | |||||||||||||||
Total Interest-earning Assets | 16,024,463 | 449,815 | 3.75 | % | 15,628,516 | 459,363 | 3.93 | % | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||
Cash and due from banks | 104,870 | 200,368 | |||||||||||||||||||||
Premises and equipment | 226,469 | 225,033 | |||||||||||||||||||||
Other assets | 1,101,856 | 1,041,834 | |||||||||||||||||||||
Less: allowance for loan losses | (176,205 | ) | (197,235 | ) | |||||||||||||||||||
Total Assets | $ | 17,281,453 | $ | 16,898,516 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | $ | 3,202,380 | $ | 3,092 | 0.13 | % | $ | 2,969,470 | $ | 2,766 | 0.12 | % | |||||||||||
Savings deposits | 3,600,695 | 3,802 | 0.14 | % | 3,392,681 | 3,127 | 0.12 | % | |||||||||||||||
Time deposits | 3,017,271 | 23,199 | 1.03 | % | 2,984,861 | 19,686 | 0.88 | % | |||||||||||||||
Total Interest-bearing Deposits | 9,820,346 | 30,093 | 0.41 | % | 9,347,012 | 25,579 | 0.37 | % | |||||||||||||||
Short-term borrowings | 338,019 | 272 | 0.11 | % | 972,694 | 1,470 | 0.20 | % | |||||||||||||||
FHLB advances and long-term debt | 1,048,634 | 33,669 | 4.29 | % | 924,920 | 32,606 | 4.71 | % | |||||||||||||||
Total Interest-bearing Liabilities | 11,206,999 | 64,034 | 0.76 | % | 11,244,626 | 59,655 | 0.71 | % | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | 3,767,919 | 3,360,876 | |||||||||||||||||||||
Other | 282,983 | 214,826 | |||||||||||||||||||||
Total Liabilities | 15,257,901 | 14,820,328 | |||||||||||||||||||||
Shareholders' equity | 2,023,552 | 2,078,188 | |||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,281,453 | $ | 16,898,516 | |||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 385,781 | 3.22 | % | 399,708 | 3.42 | % | |||||||||||||||||
Tax equivalent adjustment | (13,586 | ) | (12,879 | ) | |||||||||||||||||||
Net interest income | $ | 372,195 | $ | 386,829 | |||||||||||||||||||
(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 | |||||||||||||||||||||||
2015 | 2014 | % Change | |||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 5,205,755 | $ | 5,112,735 | 1.8 | % | |||||||||||||||||
Commercial - industrial, financial and agricultural | 3,831,678 | 3,637,440 | 5.3 | % | |||||||||||||||||||
Real estate - home equity | 1,703,006 | 1,739,352 | (2.1 | )% | |||||||||||||||||||
Real estate - residential mortgage | 1,369,367 | 1,348,269 | 1.6 | % | |||||||||||||||||||
Real estate - construction | 713,893 | 609,803 | 17.1 | % | |||||||||||||||||||
Consumer | 265,002 | 278,697 | (4.9 | )% | |||||||||||||||||||
Leasing and other | 131,638 | 101,267 | 30.0 | % | |||||||||||||||||||
Total Loans, net of unearned income | $ | 13,220,339 | $ | 12,827,563 | 3.1 | % | |||||||||||||||||
Deposits, by type: | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 3,767,919 | $ | 3,360,876 | 12.1 | % | |||||||||||||||||
Interest-bearing demand | 3,202,380 | 2,969,470 | 7.8 | % | |||||||||||||||||||
Savings deposits | 3,600,695 | 3,392,681 | 6.1 | % | |||||||||||||||||||
Time deposits | 3,017,271 | 2,984,861 | 1.1 | % | |||||||||||||||||||
Total Deposits | $ | 13,588,265 | $ | 12,707,888 | 6.9 | % | |||||||||||||||||
Short-term borrowings, by type: | |||||||||||||||||||||||
Customer repurchase agreements | $ | 167,526 | $ | 202,184 | (17.1 | )% | |||||||||||||||||
Customer short-term promissory notes | 81,854 | 89,119 | (8.2 | )% | |||||||||||||||||||
Federal funds purchased | 72,961 | 361,162 | (79.8 | )% | |||||||||||||||||||
Short-term FHLB advances and other borrowings | 15,678 | 320,229 | (95.1 | )% | |||||||||||||||||||
Total Short-term Borrowings | $ | 338,019 | $ | 972,694 | (65.2 | )% | |||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
ASSET QUALITY INFORMATION (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Sep 30 | Sep 30 | Jun 30 | Sep 30 | Sep 30 | ||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | ||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 169,453 | $ | 193,442 | $ | 179,658 | $ | 185.931 | $ | 204.917 | ||||||||||||||||||||||
Loans charged off: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | (1,640 | ) | (5,167 | ) | (11,166 | ) | (14,669 | ) | (15,804 | ) | ||||||||||||||||||||||
Consumer and home equity | (1,590 | ) | (2,030 | ) | (1,227 | ) | (4,365 | ) | (6,115 | ) | ||||||||||||||||||||||
Real estate - residential mortgage | (1,035 | ) | (231 | ) | (783 | ) | (3,099 | ) | (2,166 | ) | ||||||||||||||||||||||
Real estate - commercial mortgage | (660 | ) | (1,557 | ) | (1,642 | ) | (3,011 | ) | (5,084 | ) | ||||||||||||||||||||||
Real estate - construction | (114 | ) | (313 | ) | (87 | ) | (201 | ) | (745 | ) | ||||||||||||||||||||||
Leasing and other | (522 | ) | (306 | ) | (467 | ) | (1,352 | ) | (1,434 | ) | ||||||||||||||||||||||
Total loans charged off | (5,561 | ) | (9,604 | ) | (15,372 | ) | (26,697 | ) | (31,348 | ) | ||||||||||||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 1,598 | 1,013 | 1,471 | 3,855 | 2,532 | |||||||||||||||||||||||||||
Consumer and home equity | 618 | 784 | 557 | 1,667 | 1,928 | |||||||||||||||||||||||||||
Real estate - residential mortgage | 201 | 95 | 187 | 547 | 319 | |||||||||||||||||||||||||||
Real estate - commercial mortgage | 842 | 1,167 | 451 | 1,729 | 1,641 | |||||||||||||||||||||||||||
Real estate - construction | 898 | 470 | 231 | 2,276 | 852 | |||||||||||||||||||||||||||
Leasing and other | 346 | 241 | 70 | 587 | 767 | |||||||||||||||||||||||||||
Recoveries of loans previously charged off | 4,503 | 3,770 | 2,967 | 10,661 | 8,039 | |||||||||||||||||||||||||||
Net loans charged off | (1,058 | ) | (5,834 | ) | (12,405 | ) | (16,036 | ) | (23,309 | ) | ||||||||||||||||||||||
Provision for credit losses | 1,000 | 3,500 | 2,200 | (500 | ) | 9,500 | ||||||||||||||||||||||||||
Balance at end of period | $ | 169,395 | $ | 191,108 | $ | 169,453 | $169,395 | $ | 191,108 | |||||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.03 | % | 0.18 | % | 0.38 | % | 0.16 | % | 0.24 | % | ||||||||||||||||||||||
NON-PERFORMING ASSETS: | ||||||||||||||||||||||||||||||||
Non-accrual loans | $ | 132,154 | $ | 126,420 | $ | 129,152 | ||||||||||||||||||||||||||
Loans 90 days past due and accruing | 12,867 | 17,428 | 20,353 | |||||||||||||||||||||||||||||
Total non-performing loans | 145,021 | 143,848 | 149,505 | |||||||||||||||||||||||||||||
Other real estate owned | 10,561 | 13,489 | 12,763 | |||||||||||||||||||||||||||||
Total non-performing assets | $ | 155,582 | $ | 157,337 | $ | 162,268 | ||||||||||||||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 49,021 | $ | 44,602 | $ | 49,932 | ||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 38,032 | 33,277 | 35,839 | |||||||||||||||||||||||||||||
Real estate - residential mortgage | 27,707 | 28,135 | 31,562 | |||||||||||||||||||||||||||||
Consumer and home equity | 15,186 | 17,586 | 17,215 | |||||||||||||||||||||||||||||
Real estate - construction | 14,989 | 19,860 | 14,884 | |||||||||||||||||||||||||||||
Leasing | 86 | 388 | 73 | |||||||||||||||||||||||||||||
Total non-performing loans | $ | 145,021 | $ | 143,848 | $ | 149,505 | ||||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE: | ||||||||||||||||||||||||||||||||
Real-estate - residential mortgage | $ | 29,330 | $ | 30,850 | $ | 31,584 | ||||||||||||||||||||||||||
Real-estate - commercial mortgage | 17,282 | 18,869 | 17,482 | |||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 7,399 | 5,115 | 6,591 | |||||||||||||||||||||||||||||
Real estate - construction | 4,363 | 9,251 | 4,482 | |||||||||||||||||||||||||||||
Consumer and home equity | 3,983 | 2,927 | 3,330 | |||||||||||||||||||||||||||||
Total accruing TDRs | $ | 62,357 | $ | 67,012 | $ | 63,469 | ||||||||||||||||||||||||||
Non-accrual TDRs (1) | 27,618 | 27,724 | 27,230 | |||||||||||||||||||||||||||||
Total TDRs | $ | 89,975 | $ | 94,736 | $ | 90,699 | ||||||||||||||||||||||||||
(1) Included within non-accrual loans above. | ||||||||||||||||||||||||||||||||
DELINQUENCY RATES, BY TYPE: | ||||||||||||||||||||||||||||||||
September 30, 2015 | September 30, 2014 | June 30, 2015 | ||||||||||||||||||||||||||||||
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 | 0.16 | % | 0.92 | % | 1.08 | % | 0.48 | % | 0.86 | % | 1.34 | % | 0.34 | % | 0.96 | % | 1.30 | % | ||||||||||||||
Commercial - industrial, financial and agricultural | 0.35 | % | 0.97 | % | 1.32 | % | 0.28 | % | 0.91 | % | 1.19 | % | 0.22 | % | 0.94 | % | 1.16 | % | ||||||||||||||
Real estate - construction | 0.30 | % | 1.95 | % | 2.25 | % | 0.03 | % | 2.89 | % | 2.92 | % | 0.02 | % | 2.03 | % | 2.05 | % | ||||||||||||||
Real estate - residential mortgage | 1.27 | % | 2.00 | % | 3.27 | % | 1.81 | % | 2.06 | % | 3.87 | % | 1.53 | % | 2.30 | % | 3.83 | % | ||||||||||||||
Consumer, home equity, leasing and other | 0.69 | % | 0.72 | % | 1.41 | % | 0.74 | % | 0.85 | % | 1.59 | % | 0.69 | % | 0.83 | % | 1.52 | % | ||||||||||||||
Total | 0.42 | % | 1.07 | % | 1.49 | % | 0.58 | % | 1.11 | % | 1.69 | % | 0.47 | % | 1.13 | % | 1.60 | % | ||||||||||||||
(2) Includes non-accrual loans | ||||||||||||||||||||||||||||||||
ASSET QUALITY RATIOS: | ||||||||||||||||||||||||||||||||
Sep 30 | Sep 30 | Jun 30 | ||||||||||||||||||||||||||||||
2015 | 2014 | 2015 | ||||||||||||||||||||||||||||||
Non-accrual loans to total loans | 0.98 | % | 0.97 | % | 0.98 | % | ||||||||||||||||||||||||||
Non-performing assets to total loans and OREO | 1.15 | % | 1.21 | % | 1.22 | % | ||||||||||||||||||||||||||
Non-performing assets to total assets | 0.87 | % | 0.91 | % | 0.93 | % | ||||||||||||||||||||||||||
Allowance for credit losses to loans outstanding | 1.25 | % | 1.47 | % | 1.28 | % | ||||||||||||||||||||||||||
Allowance for credit losses to non-performing loans | 116.81 | % | 132.85 | % | 113.34 | % | ||||||||||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.35 | % | 9.06 | % | 9.76 | % | ||||||||||||||||||||||||||
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 supplemental 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 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 | Nine Months Ended | ||||||||||||||||||||||||
September 30 | September 30 | June 30 | Sep 30 | Sep 30 | |||||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||||||||||||
Shareholders' equity (tangible), per share | |||||||||||||||||||||||||
Shareholders' equity | $ | 2,025,904 | $ | 2,078,006 | $ | 2,024,817 | |||||||||||||||||||
Less: Goodwill and intangible assets | (531,562 | ) | (532,117 | ) | (531,567 | ) | |||||||||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,494,342 | $ | 1,545,889 | $ | 1,493,250 | |||||||||||||||||||
Shares outstanding, end of period (denominator) | 173,771 | 185,158 | 176,019 | ||||||||||||||||||||||
Shareholders' equity (tangible), per share | $ | 8.60 | $ | 8.35 | $ | 8.48 | |||||||||||||||||||
Return on average common shareholders' equity (tangible) | |||||||||||||||||||||||||
Net income | $ | 34,251 | $ | 38,566 | $ | 36,680 | $ | 110,967 | $ | 119,945 | |||||||||||||||
Plus: Intangible amortization, net of tax | 3 | 203 | 69 | 157 | 614 | ||||||||||||||||||||
Numerator | $ | 34,254 | $ | 38,769 | $ | 36,749 | $ | 111,124 | $ | 120,559 | |||||||||||||||
Average shareholders' equity | $ | 2,022,829 | $ | 2,089,459 | $ | 2,031,788 | $ | 2,023,552 | $ | 2,078,188 | |||||||||||||||
Less: Average goodwill and intangible assets | (531,564 | ) | (532,271 | ) | (531,618 | ) | (531,638 | ) | (532,584 | ) | |||||||||||||||
Average tangible shareholders' equity (denominator) | $ | 1,491,265 | $ | 1,557,188 | $ | 1,500,170 | $ | 1,491,914 | $ | 1,545,604 | |||||||||||||||
Return on average common shareholders' equity (tangible), annualized | 9.11 | % | 9.88 | % | 9.83 | % | 9.96 | % | 10.43 | % | |||||||||||||||
Efficiency ratio | |||||||||||||||||||||||||
Non-interest expense | $ | 124,889 | $ | 115,798 | $ | 118,354 | $ | 361,721 | $ | 341,526 | |||||||||||||||
Less: Intangible amortization | (5 | ) | (314 | ) | (106 | ) | (241 | ) | (944 | ) | |||||||||||||||
Less: Loss on redemption of trust preferred securities | (5,626 | ) | — | — | (5,626 | ) | — | ||||||||||||||||||
Numerator | $ | 119,258 | $ | 115,484 | $ | 118,248 | $ | 355,854 | $ | 340,582 | |||||||||||||||
Net interest income (fully taxable equivalent) | $ | 130,250 | $ | 133,692 | $ | 127,445 | $ | 385,781 | $ | 399,708 | |||||||||||||||
Plus: Total Non-interest income | 44,774 | 41,900 | 46,489 | 136,000 | 125,278 | ||||||||||||||||||||
Less: Investment securities gains | (1,730 | ) | (81 | ) | (2,415 | ) | (8,290 | ) | (1,193 | ) | |||||||||||||||
Denominator | $ | 173,294 | $ | 175,511 | $ | 171,519 | $ | 513,491 | $ | 523,793 | |||||||||||||||
Efficiency ratio | 68.82 | % | 65.80 | % | 68.94 | % | 69.30 | % | 65.02 | % | |||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | |||||||||||||||||||||||||
Non-performing assets (numerator) | $ | 155,582 | $ | 157,337 | $ | 162,268 | |||||||||||||||||||
Tangible shareholders' equity | $ | 1,494,342 | $ | 1,545,889 | $ | 1,493,250 | |||||||||||||||||||
Plus: Allowance for credit losses | 169,395 | 191,108 | 169,453 | ||||||||||||||||||||||
Tangible shareholders' equity and allowance for credit losses (denominator) | $ | 1,663,737 | $ | 1,736,997 | $ | 1,662,703 | |||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.35 | % | 9.06 | % | 9.76 | % | |||||||||||||||||||