Fulton Financial Reports Third Quarter Earnings of $0.21 per Share
LANCASTER, PA -- (Marketwire) -- 10/16/12 -- Fulton Financial Corporation (FULT)
- Diluted earnings per share for the third quarter of 2012 was 21 cents, a 5.0 percent increase from both the second quarter of 2012 and the third quarter of 2011.
- The provision for credit losses was $23.0 million for the third quarter of 2012, a $2.5 million, or 9.8 percent, decrease from the second quarter of 2012 and an $8.0 million, or 25.8 percent, decrease from the third quarter of 2011. Non-performing loans decreased $21.1 million, or 9.0 percent, in comparison to the second quarter of 2012, and $97.8 million, or 31.5 percent, in comparison to the third quarter of 2011.
- Net interest income decreased $1.6 million, or 1.2 percent, in comparison to the second quarter of 2012. Net interest margin decreased 4 basis points to 3.74 percent.
- The Corporation raised its dividend to shareholders by one cent, or 14.3 percent, to $0.08 per common share, for the third quarter of 2012.
- Approximately 2.1 million shares were repurchased during the third quarter of 2012 under the previously announced share repurchase plan, with approximately 2.9 million shares remaining to be purchased under the plan.
Fulton Financial Corporation reported net income of $41.6 million, or 21 cents per diluted share, for the third quarter ended September 30, 2012, compared to $39.9 million, or 20 cents per diluted share, for the second quarter of 2012. For the nine months ended September 30, 2012, net income was $119.6 million, or 60 cents per diluted share, a 9.1 percent increase in comparison to the 55 cents per diluted share earned for the same period in 2011.
"Our solid third quarter performance reflects continued improvement in overall asset quality and good core deposit growth, partly due to an increase in new small business customers," said R. Scott Smith, Jr., Chairman and CEO. "We were also pleased to see improvement in our return on average assets. Non-performing loans decreased significantly and we were able to further reduce the provision for credit losses. We continued to return capital to our shareholders directly through an increase in our quarterly cash dividend."
Asset Quality
Non-performing assets were $242.0 million, or 1.49 percent of total assets, at September 30, 2012, compared to $266.3 million, or 1.63 percent of total assets, at June 30, 2012 and $348.0 million, or 2.14 percent of total assets, at September 30, 2011. In comparison to the second quarter of 2012, non-performing loans decreased $21.1 million, or 9.0 percent, primarily due to decreases in non-performing commercial mortgages and construction loans, partially offset by an increase in non-performing commercial loans.
Annualized net charge-offs for the quarter ended September 30, 2012 were 0.84 percent of average total loans, compared to 1.55 percent for the quarter ended June 30, 2012 and 1.04 percent for the quarter ended September 30, 2011. The allowance for credit losses as a percentage of non-performing loans was 110.6 percent at September 30, 2012 in comparison to 101.4 percent at June 30, 2012 and 86.6 percent at September 30, 2011.
Net Interest Income and Margin
Net interest income for the third quarter of 2012 decreased $1.6 million, or 1.2 percent, from the second quarter of 2012. The decrease in net interest income was primarily due a decrease in average earning assets and the net interest margin, partially offset by the impact of one additional day in the third quarter. Net interest margin decreased 4 basis points, or 1.1 percent, from 3.78 percent in the second quarter of 2012 to 3.74 percent in the third quarter of 2012. Average interest-earning asset yields decreased 6 basis points, or 1.3 percent, while average interest-bearing costs decreased 3 basis points, or 3.2 percent.
Average Balance Sheet
Total average assets for the third quarter of 2012 were $16.2 billion, a decrease of $149.0 million, or 0.9 percent, from the second quarter of 2012, due primarily to a $135.6 million, or 4.6 percent, decrease in investment securities.
Average loans, net of unearned income, decreased $45.5 million, or 0.4 percent, in comparison to the second quarter of 2012.
Quarter Ended
-----------------------
Increase (decrease)
-------------------
Sep 30 Jun 30
2012 2012 $ %
----------- ----------- --------- --------
(dollars in thousands)
Loans, by type:
Real estate - commercial
mortgage $ 4,603,388 $ 4,634,436 $ (31,048) (0.7%)
Commercial - industrial,
financial and agricultural 3,529,733 3,529,947 (214) -
Real estate - home equity 1,597,230 1,599,702 (2,472) (0.2%)
Real estate - residential
mortgage 1,200,752 1,179,513 21,239 1.8%
Real estate - construction 605,910 640,282 (34,372) (5.4%)
Consumer 304,235 307,071 (2,836) (0.9%)
Leasing and other 78,945 74,753 4,192 5.6%
----------- ----------- --------- --------
Total Loans, net of unearned
income $11,920,193 $11,965,704 $ (45,511) (0.4%)
=========== =========== ========= ========
Total average liabilities decreased $164.0 million, or 1.1 percent, from the second quarter of 2012, due primarily to a $373.3 million, or 38.8 percent, decrease in short-term borrowings, partially offset by a $228.2 million, or 1.9 percent, increase in average deposits.
Quarter Ended
-----------------------
Increase (decrease)
-------------------
Sep 30 Jun 30
2012 2012 $ %
----------- ----------- --------- --------
(dollars in thousands)
Deposits, by type:
Noninterest-bearing demand $ 2,836,166 $ 2,669,152 $ 167,014 6.3%
Interest-bearing demand 2,608,202 2,484,730 123,472 5.0%
Savings deposits 3,364,109 3,292,620 71,489 2.2%
----------- ----------- --------- --------
Total demand and savings 8,808,477 8,446,502 361,975 4.3%
Time deposits 3,657,616 3,791,362 (133,746) (3.5%)
----------- ----------- --------- --------
Total Deposits $12,466,093 $12,237,864 $ 228,229 1.9%
=========== =========== ========= ========
The increase in average deposits in the third quarter of 2012 in comparison to the second quarter of 2012 was a result of a $362.0 million increase in demand and saving accounts, partially offset by a $133.7 million decrease in time deposits. The increase in demand and savings accounts occurred primarily in business and municipal account balances.
Non-interest Income
Non-interest income, excluding investment securities gains, increased $136,000, or 0.3 percent, in comparison to the second quarter of 2012. Mortgage banking income decreased $549,000, the net effect of a $2.5 million decrease in mortgage servicing income and a $1.9 million increase in gains on sales of loans. The decrease in mortgage servicing income was a result of an increase in the valuation allowance for mortgage servicing rights, while the increase in gains on sales of loans was a result of both an increase in pricing spreads and an increase in the volume of new loan commitments.
Non-interest Expense
Total non-interest expense decreased $2.1 million, or 1.9 percent, in the third quarter of 2012 in comparison to the second quarter of 2012. Salaries and employee benefits increased $2.1 million, or 3.4 percent, due to a combination of normal merit increases and an additional day in the third quarter of 2012 as compared to the second quarter of 2012. Other outside services increased $520,000, or 11.6 percent, mainly due to consulting expenses associated with risk management and compliance efforts. OREO and repossession expense decreased $727,000 primarily due to lower valuation reserves on repossessed assets. Operating risk loss decreased $651,000 due to a lower provision for potential losses on previously sold residential mortgages. Marketing expenses decreased $1.9 million, or 74.9 percent, due to significant expenses incurred in the second quarter for a specific promotional campaign. Other expenses decreased $2.0 million, or 14.5 percent, due primarily to a decrease in state taxes, as reserves for certain state tax positions were reversed due to the expiration of the statute of limitations as well as changes in the risk level of certain positions.
About Fulton Financial
Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company which has banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates: Fulton Bank, N.A., Lancaster, PA; Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Easton, PA; FNB Bank, N.A., Danville, PA; Fulton Bank of New Jersey, Mt. Laurel, NJ; and The Columbia Bank, Columbia, MD.
The Corporation's investment management and trust services are offered at all banks through Fulton Financial Advisors, a division of Fulton Bank, N.A. Residential mortgage lending is offered by all banks under the Fulton Mortgage Company brand.
Additional information on Fulton Financial Corporation is available on the Internet at www.fult.com.
Safe Harbor Statement
This news release may contain forward-looking statements with respect to the Corporation's financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends" and similar expressions which are intended to identify forward-looking statements.
These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, some of which are beyond the Corporation's control and ability to predict, that could cause actual results to differ materially from those expressed in the forward-looking statements. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Many factors could affect future financial results including, without limitation: the impact of adverse changes in the economy and real estate markets; increases in non-performing assets which may reduce the level of earning assets and require the Corporation to increase the allowance for credit losses, charge-off loans and incur elevated collection and carrying costs related to such non-performing assets; acquisition and growth strategies; market risk; changes or adverse developments in political or regulatory conditions; a disruption in, or abnormal functioning of, credit and other markets, including the lack of or reduced access to markets for mortgages and other asset-backed securities and for commercial paper and other short-term borrowings; changes in the levels of, or methodology for determining, FDIC deposit insurance premiums and assessments; the effect of competition and interest rates on net interest margin and net interest income; investment strategy and other income growth; investment securities gains and losses; declines in the value of securities which may result in charges to earnings; changes in rates of deposit and loan growth or a decline in loans originated; relative balances of rate-sensitive assets to rate-sensitive liabilities; salaries and employee benefits and other expenses; amortization of intangible assets; goodwill impairment; capital and liquidity strategies, and other financial and business matters for future periods.
For a more complete discussion of certain risks and uncertainties affecting the Corporation, please see the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" set forth in the Corporation's filings with the Securities and Exchange Commission.
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
% Change from
------------------
September September September June
30 30 June 30 30 30
2012 2011 2012 2011 2012
----------- ----------- ----------- ---------- ------
ASSETS
Cash and due from
banks $ 217,207 $ 291,870 $ 242,811 (25.6%) (10.5%)
Other interest-
earning assets 202,305 256,360 118,468 (21.1%) 70.8%
Loans held for
sale 85,477 63,554 71,406 34.5% 19.7%
Investment
securities 2,790,138 2,776,557 2,870,832 0.5% (2.8%)
Loans, net of
unearned income 11,933,001 11,895,655 11,982,833 0.3% (0.4%)
Allowance for loan
losses (233,864) (266,978) (235,737) (12.4%) (0.8%)
----------- ----------- -----------
Net Loans 11,699,137 11,628,677 11,747,096 0.6% (0.4%)
Premises and
equipment 225,771 206,170 222,083 9.5% 1.7%
Accrued interest
receivable 49,784 52,460 48,283 (5.1%) 3.1%
Goodwill and
intangible assets 541,845 545,098 542,622 (0.6%) (0.1%)
Other assets 461,465 475,105 474,149 (2.9%) (2.7%)
----------- ----------- -----------
Total Assets $16,273,129 $16,295,851 $16,337,750 (0.1%) (0.4%)
=========== =========== ===========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Deposits $12,601,310 $12,637,624 $12,232,484 (0.3%) 3.0%
Short-term
borrowings 486,971 448,955 931,681 8.5% (47.7%)
Other liabilities 215,542 199,108 223,592 8.3% (3.6%)
Federal Home Loan
Bank advances and
long-term debt 908,623 1,025,505 908,809 (11.4%) -
----------- ----------- -----------
Total
Liabilities 14,212,446 14,311,192 14,296,566 (0.7%) (0.6%)
Shareholders'
equity 2,060,683 1,984,659 2,041,184 3.8% 1.0%
----------- ----------- -----------
Total
Liabilities
and
Shareholders'
Equity $16,273,129 $16,295,851 $16,337,750 (0.1%) (0.4%)
=========== =========== ===========
LOANS, DEPOSITS AND SHORT-TERM
BORROWINGS DETAIL:
Loans, by type:
Real estate -
commercial
mortgage $ 4,632,509 $ 4,491,155 $ 4,653,097 3.1% (0.4%)
Commercial -
industrial,
financial and
agricultural 3,507,846 3,690,164 3,538,188 (4.9%) (0.9%)
Real estate - home
equity 1,603,456 1,630,880 1,599,468 (1.7%) 0.2%
Real estate -
residential
mortgage 1,213,831 1,041,463 1,183,613 16.6% 2.6%
Real estate -
construction 597,358 648,398 619,060 (7.9%) (3.5%)
Consumer 301,182 327,054 308,469 (7.9%) (2.4%)
Leasing and other 76,819 66,541 80,938 15.4% (5.1%)
----------- ----------- -----------
Total Loans, net
of unearned
income $11,933,001 $11,895,655 $11,982,833 0.3% (0.4%)
=========== =========== ===========
Deposits, by type:
Noninterest-
bearing demand $ 2,903,591 $ 2,535,744 $ 2,748,269 14.5% 5.7%
Interest-bearing
demand 2,702,710 2,517,124 2,482,271 7.4% 8.9%
Savings deposits 3,416,011 3,434,398 3,267,299 (0.5%) 4.6%
Time deposits 3,578,998 4,150,358 3,734,645 (13.8%) (4.2%)
----------- ----------- -----------
Total Deposits $12,601,310 $12,637,624 $12,232,484 (0.3%) 3.0%
=========== =========== ===========
Short-term
borrowings, by
type:
Customer
repurchase
agreements $ 192,082 $ 202,154 $ 204,526 (5.0%) (6.1%)
Customer short-
term promissory
notes 124,628 170,839 135,988 (27.0%) (8.4%)
Federal funds
purchased and
other 170,261 75,962 591,167 124.1% (71.2%)
----------- ----------- -----------
Total Short-term
borrowings $ 486,971 $ 448,955 $ 931,681 8.5% (47.7%)
=========== =========== ===========
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands, except per-share data
Quarter Ended % Change from
---------------------------- ---------------
Sep 30 Sep 30 Jun 30 Sep 30 Jun 30
2012 2011 2012 2011 2012
-------- -------- -------- ------ ------
Interest Income:
Interest income $161,060 $173,736 $163,985 (7.3%) (1.8%)
Interest expense 25,179 32,243 26,455 (21.9%) (4.8%)
-------- -------- --------
Net Interest Income 135,881 141,493 137,530 (4.0%) (1.2%)
Provision for credit
losses 23,000 31,000 25,500 (25.8%) (9.8%)
-------- -------- --------
Net Interest Income
after Provision 112,881 110,493 112,030 2.2% 0.8%
Non-Interest Income:
Service charges on
deposit accounts 15,651 15,164 15,367 3.2% 1.8%
Other service charges and
fees 11,119 12,507 11,507 (11.1%) (3.4%)
Mortgage banking income 10,594 7,942 11,143 33.4% (4.9%)
Investment management and
trust services 9,429 8,914 9,822 5.8% (4.0%)
Investment securities
gains (losses) 42 (443) 1,538 N/M (97.3%)
Other 5,169 4,055 3,987 27.5% 29.6%
-------- -------- --------
Total Non-Interest
Income 52,004 48,139 53,364 8.0% (2.5%)
Non-Interest Expenses:
Salaries and employee
benefits 62,161 58,948 60,091 5.5% 3.4%
Net occupancy expense 11,161 10,790 11,205 3.4% (0.4%)
Other outside services 4,996 1,846 4,476 170.6% 11.6%
Equipment expense 3,816 3,032 3,185 25.9% 19.8%
Data processing 3,776 3,473 3,759 8.7% 0.5%
FDIC insurance expense 3,029 3,732 3,002 (18.8%) 0.9%
Professional fees 2,728 3,247 2,984 (16.0%) (8.6%)
Software 2,511 2,142 2,272 17.2% 10.5%
OREO and repossession
expense 2,096 2,548 2,823 (17.7%) (25.8%)
Operating risk loss 1,404 776 2,055 80.9% (31.7%)
Marketing 648 1,923 2,583 (66.3%) (74.9%)
Other 11,717 13,410 13,708 (12.6%) (14.5%)
-------- -------- --------
Total Non-Interest
Expenses 110,043 105,867 112,143 3.9% (1.9%)
-------- -------- --------
Income Before Income
Taxes 54,842 52,765 53,251 3.9% 3.0%
Income tax expense 13,260 13,441 13,360 (1.3%) (0.7%)
-------- -------- --------
Net Income $ 41,582 $ 39,324 $ 39,891 5.7% 4.2%
======== ======== ========
PER SHARE:
Net income:
Basic $ 0.21 $ 0.20 $ 0.20 5.0% 5.0%
Diluted 0.21 0.20 0.20 5.0% 5.0%
Cash dividends $ 0.08 $ 0.05 $ 0.07 60.0% 14.3%
Shareholders' equity 10.36 9.93 10.10 4.3% 2.6%
Shareholders' equity
(tangible) 7.63 7.20 7.38 6.0% 3.4%
Weighted average shares
(basic) 198,956 199,028 199,671 - (0.4%)
Weighted average shares
(diluted) 199,808 199,814 200,806 - (0.5%)
Shares outstanding, end
of period 198,975 199,891 200,880 (0.5%) (0.9%)
SELECTED FINANCIAL RATIOS:
Return on average assets 1.02% 0.97% 0.98%
Return on average common
shareholders' equity 8.03% 7.89% 7.84%
Return on average common
shareholders' equity
(tangible) 11.02% 11.06% 10.80%
Net interest margin 3.74% 3.93% 3.78%
Efficiency ratio 56.91% 54.06% 57.55%
Nine Months Ended
Sep 30
------------------
%
2012 2011 Change
-------- -------- ------
Interest Income:
Interest income $491,936 $524,365 (6.2%)
Interest expense 79,830 102,664 (22.2%)
-------- --------
Net Interest Income 412,106 421,701 (2.3%)
Provision for credit
losses 76,500 105,000 (27.1%)
-------- --------
Net Interest Income
after Provision 335,606 316,701 6.0%
Non-Interest Income:
Service charges on
deposit accounts 45,860 42,801 7.1%
Other service charges and
fees 33,181 36,698 (9.6%)
Mortgage banking income 31,787 19,454 63.4%
Investment management and
trust services 28,628 27,756 3.1%
Investment securities
gains (losses) 2,831 1,507 87.9%
Other 14,761 11,163 32.2%
-------- --------
Total Non-Interest
Income 157,048 139,379 12.7%
Non-Interest Expenses:
Salaries and employee
benefits 182,612 169,326 7.8%
Net occupancy expense 33,301 33,030 0.8%
Other outside services 11,782 5,256 124.2%
Equipment expense 10,370 9,541 8.7%
Data processing 11,223 10,059 11.6%
FDIC insurance expense 9,052 11,750 (23.0%)
Professional fees 8,294 9,198 (9.8%)
Software 6,958 6,146 13.2%
OREO and repossession
expense 7,847 4,801 63.4%
Operating risk loss 6,827 306 N/M
Marketing 5,703 6,622 (13.9%)
Other 38,928 41,581 (6.4%)
-------- --------
Total Non-Interest
Expenses 332,897 307,616 8.2%
-------- --------
Income Before Income
Taxes 159,757 148,464 7.6%
Income tax expense 40,152 38,970 3.0%
-------- --------
Net Income $119,605 $109,494 9.2%
======== ========
PER SHARE:
Net income:
Basic $ 0.60 $ 0.55 9.1%
Diluted 0.60 0.55 9.1%
Cash dividends $ 0.22 $ 0.14 57.1%
Shareholders' equity 10.36 9.93 4.3%
Shareholders' equity
(tangible) 7.63 7.20 6.0%
Weighted average shares
(basic) 199,371 198,801 0.3%
Weighted average shares
(diluted) 200,321 199,544 0.4%
Shares outstanding, end
of period 198,975 199,891 (0.5%)
SELECTED FINANCIAL RATIOS:
Return on average assets 0.98% 0.91%
Return on average common
shareholders' equity 7.83% 7.55%
Return on average common
shareholders' equity
(tangible) 10.80% 10.72%
Net interest margin 3.79% 3.93%
Efficiency ratio 57.10% 53.24%
N/M - Not meaningful
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Quarter Ended
---------------------------
September 30, 2012
---------------------------
Average Interest
Balance (1)
--------------- --------
ASSETS
Interest-earning assets:
Loans, net of unearned income $ 11,920,193 $143,211
Taxable investment securities 2,392,043 16,658
Tax-exempt investment securities 286,225 3,936
Equity securities 109,884 820
--------------- --------
Total Investment Securities 2,788,152 21,414
Loans held for sale 61,001 578
Other interest-earning assets 147,432 35
--------------- --------
Total Interest-earning Assets 14,916,778 165,238
Noninterest-earning assets:
Cash and due from banks 221,946
Premises and equipment 222,544
Other assets 1,088,807
Less: allowance for loan losses (239,931)
---------------
Total Assets $ 16,210,144
===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits $ 2,608,202 $ 1,071
Savings deposits 3,364,109 1,431
Time deposits 3,657,616 11,346
--------------- --------
Total Interest-bearing Deposits 9,629,927 13,848
Short-term borrowings 588,568 220
Federal Home Loan Bank advances and
long-term debt 908,767 11,111
--------------- --------
Total Interest-bearing Liabilities 11,127,262 25,179
Noninterest-bearing liabilities:
Demand deposits 2,836,166
Other 185,441
---------------
Total Liabilities 14,148,869
Shareholders' equity 2,061,275
---------------
Total Liabilities and Shareholders'
Equity $ 16,210,144
===============
Net interest income/net interest margin (fully taxable
equivalent) 140,059
Tax equivalent adjustment (4,178)
--------
Net interest income $135,881
========
Quarter Ended
-------------------------------
Septem
ber
30,
2012 September 30, 2011
------ -----------------------
Yield/ Average Interest
Rate Balance (1)
------ ----------- --------
ASSETS
Interest-earning assets:
Loans, net of unearned income 4.78% $11,887,544 $151,816
Taxable investment securities 2.78% 2,142,670 20,166
Tax-exempt investment securities 5.50% 325,420 4,456
Equity securities 2.98% 124,893 777
------ ----------- --------
Total Investment Securities 3.07% 2,592,983 25,399
Loans held for sale 3.79% 37,626 425
Other interest-earning assets 0.09% 218,135 91
------ ----------- --------
Total Interest-earning Assets 4.42% 14,736,288 177,731
Noninterest-earning assets:
Cash and due from banks 276,063
Premises and equipment 206,059
Other assets 1,107,107
Less: allowance for loan losses (274,436)
-----------
Total Assets $16,051,081
===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits 0.16% $ 2,424,646 $ 1,262
Savings deposits 0.17% 3,329,489 2,564
Time deposits 1.23% 4,224,001 15,858
------ ----------- --------
Total Interest-bearing Deposits 0.57% 9,978,136 19,684
Short-term borrowings 0.15% 443,337 151
Federal Home Loan Bank advances and
long-term debt 4.88% 1,025,546 12,408
------ ----------- --------
Total Interest-bearing Liabilities 0.90% 11,447,019 32,243
Noninterest-bearing liabilities:
Demand deposits 2,466,877
Other 159,430
-----------
Total Liabilities 14,073,326
Shareholders' equity 1,977,755
-----------
Total Liabilities and Shareholders'
Equity $16,051,081
===========
Net interest income/net interest
margin (fully taxable equivalent) 3.74% 145,488
======
Tax equivalent adjustment (3,995)
--------
Net interest income $141,493
========
Quarter Ended
-------------------------------------
Septem
ber
30,
2011 June 30, 2012
------ -----------------------------
Yield/ Average Interest Yield/
Rate Balance (1) Rate
------ ----------- -------- ------
ASSETS
Interest-earning assets:
Loans, net of unearned income 5.07% $11,965,704 $144,263 4.85%
Taxable investment securities 3.76% 2,533,060 18,624 2.94%
Tax-exempt investment securities 5.48% 283,736 3,992 5.63%
Equity securities 2.48% 106,954 707 2.65%
------ ----------- -------- ------
Total Investment Securities 3.92% 2,923,750 23,323 3.19%
Loans held for sale 4.52% 55,813 538 3.85%
Other interest-earning assets 0.17% 129,272 45 0.14%
------ ----------- -------- ------
Total Interest-earning Assets 4.80% 15,074,539 168,169 4.48%
Noninterest-earning assets:
Cash and due from banks 233,427
Premises and equipment 216,881
Other assets 1,093,673
Less: allowance for loan losses (259,327)
-----------
Total Assets $16,359,193
===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits 0.21% $ 2,484,730 $ 1,025 0.17%
Savings deposits 0.30% 3,292,620 1,510 0.18%
Time deposits 1.49% 3,791,362 12,208 1.30%
------ ----------- -------- ------
Total Interest-bearing Deposits 0.78% 9,568,712 14,743 0.62%
Short-term borrowings 0.14% 961,900 411 0.17%
Federal Home Loan Bank advances and
long-term debt 4.84% 929,318 11,301 4.88%
------ ----------- -------- ------
Total Interest-bearing Liabilities 1.12% 11,459,930 26,455 0.93%
Noninterest-bearing liabilities:
Demand deposits 2,669,152
Other 183,794
-----------
Total Liabilities 14,312,876
Shareholders' equity 2,046,317
-----------
Total Liabilities and Shareholders'
Equity $16,359,193
===========
Net interest income/net interest
margin (fully taxable equivalent) 3.93% 141,714 3.78%
====== ======
Tax equivalent adjustment (4,184)
--------
Net interest income $137,530
========
(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Quarter Ended % Change from
----------------------------------- ---------------------
September September September
30 30 June 30 30 June 30
2012 2011 2012 2011 2012
----------- ----------- ----------- ----------- -------
Loans, by type:
Real estate -
commercial
mortgage $ 4,603,388 $ 4,461,646 $ 4,634,436 3.2% (0.7%)
Commercial -
industrial,
financial and
agricultural 3,529,733 3,691,516 3,529,947 (4.4%) -
Real estate -
home equity 1,597,230 1,628,822 1,599,702 (1.9%) (0.2%)
Real estate -
residential
mortgage 1,200,752 1,037,968 1,179,513 15.7% 1.8%
Real estate -
construction 605,910 668,464 640,282 (9.4%) (5.4%)
Consumer 304,235 329,619 307,071 (7.7%) (0.9%)
Leasing and
other 78,945 69,509 74,753 13.6% 5.6%
----------- ----------- -----------
Total Loans,
net of
unearned
income $11,920,193 $11,887,544 $11,965,704 0.3% (0.4%)
=========== =========== ===========
Deposits, by
type:
Noninterest-
bearing demand$ 2,836,166 $ 2,466,877 $ 2,669,152 15.0% 6.3%
Interest-
bearing demand 2,608,202 2,424,646 2,484,730 7.6% 5.0%
Savings
deposits 3,364,109 3,329,489 3,292,620 1.0% 2.2%
Time deposits 3,657,616 4,224,001 3,791,362 (13.4%) (3.5%)
----------- ----------- -----------
Total Deposits $12,466,093 $12,445,013 $12,237,864 0.2% 1.9%
=========== =========== ===========
Short-term
borrowings, by
type:
Customer
repurchase
agreements $ 210,830 $ 206,824 $ 226,216 1.9% (6.8%)
Customer short-
term
promissory
notes 127,479 170,790 146,307 (25.4%) (12.9%)
Federal funds
purchased and
other 250,259 65,723 589,377 280.8% (57.5%)
----------- ----------- -----------
Total Short-
term
borrowings $ 588,568 $ 443,337 $ 961,900 32.8% (38.8%)
=========== =========== ===========
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Nine Months ended September 30
----------------------------------------------------------
2012 2011
---------------------------- ----------------------------
Average Interest Yield/ Average Interest Yield/
Balance (1) Rate Balance (1) Rate
----------- -------- ------ ----------- -------- ------
ASSETS
Interest-earning
assets:
Loans, net of
unearned
income $11,954,830 $434,520 4.86% $11,897,211 $455,476 5.12%
Taxable
investment
securities 2,442,237 53,943 2.95% 2,204,409 62,722 3.79%
Tax-exempt
investment
securities 288,221 12,085 5.59% 337,627 14,181 5.60%
Equity
securities 110,807 2,307 2.78% 128,635 2,304 2.39%
----------- -------- ------ ----------- -------- ------
Total
Investment
Securities 2,841,265 68,335 3.21% 2,670,671 79,207 3.96%
Loans held for
sale 52,462 1,547 3.93% 39,917 1,417 4.73%
Other
interest-
earning
assets 126,169 133 0.14% 149,910 225 0.20%
----------- -------- ------ ----------- -------- ------
Total
Interest-
earning
Assets 14,974,726 504,535 4.50% 14,757,709 536,325 4.86%
Noninterest-
earning assets:
Cash and due
from banks 239,436 271,674
Premises and
equipment 217,351 206,856
Other assets 1,095,091 1,102,608
Less:
allowance for
loan losses (255,061) (276,654)
----------- -----------
Total Assets $16,271,543 $16,062,193
=========== ===========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
liabilities:
Demand
deposits $ 2,519,454 $ 3,132 0.17% $ 2,366,944 $ 4,069 0.23%
Savings
deposits 3,332,704 4,751 0.19% 3,323,050 9,180 0.37%
Time deposits 3,799,774 36,958 1.30% 4,368,831 51,496 1.58%
----------- -------- ------ ----------- -------- ------
Total
Interest-
bearing
Deposits 9,651,932 44,841 0.62% 10,058,825 64,745 0.86%
Short-term
borrowings 758,899 912 0.16% 506,620 573 0.15%
Federal Home
Loan Bank
advances and
long-term
debt 940,348 34,077 4.84% 1,037,437 37,346 4.81%
----------- -------- ------ ----------- -------- ------
Total
Interest-
bearing
Liabilities 11,351,179 79,830 0.94% 11,602,882 102,664 1.18%
Noninterest-
bearing
liabilities:
Demand
deposits 2,690,668 2,356,735
Other 188,222 164,144
----------- -----------
Total
Liabilities 14,230,069 14,123,761
Shareholders'
equity 2,041,474 1,938,432
----------- -----------
Total
Liabilities
and
Shareholders'
Equity $16,271,543 $16,062,193
=========== ===========
Net interest
income/net
interest
margin (fully
taxable
equivalent) 424,705 3.79% 433,661 3.93%
====== ======
Tax equivalent
adjustment (12,599) (11,960)
-------- --------
Net interest
income $412,106 $421,701
======== ========
(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
-------------------------
%
2012 2011 Change
------------ ------------ -------
Loans, by type:
Real estate -
commercial
mortgage $ 4,618,389 $ 4,425,867 4.3%
Commercial -
industrial,
financial and
agricultural 3,548,332 3,696,101 (4.0%)
Real estate -
home equity 1,602,812 1,626,937 (1.5%)
Real estate -
residential
mortgage 1,172,732 1,026,367 14.3%
Real estate -
construction 629,170 719,812 (12.6%)
Consumer 307,619 334,565 (8.1%)
Leasing and
other 75,776 67,562 12.2%
------------ ------------
Total Loans,
net of
unearned
income $ 11,954,830 $ 11,897,211 0.5%
============ ============
Deposits, by
type:
Noninterest-
bearing
demand $ 2,690,668 $ 2,356,735 14.2%
Interest-
bearing
demand 2,519,454 2,366,944 6.4%
Savings
deposits 3,332,704 3,323,050 0.3%
Time deposits 3,799,774 4,368,831 (13.0%)
------------ ------------
Total Deposits $ 12,342,600 $ 12,415,560 (0.6%)
============ ============
Short-term
borrowings, by
type:
Customer
repurchase
agreements $ 212,523 $ 212,449 -
Customer
short-term
promissory
notes 142,896 177,639 (19.6%)
Federal funds
purchased and
other 403,480 116,532 246.2%
------------ ------------
Total Short-
term
borrowings $ 758,899 $ 506,620 49.8%
============ ============
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
Quarter Ended
-------------------------------
Nine Months Ended
September 30
--------------------
Sep 30 Sep 30 Jun 30
2012 2011 2012 2012 2011
--------- --------- --------- --------- ---------
ALLOWANCE FOR CREDIT
LOSSES:
Balance at
beginning of
period $ 237,316 $ 268,633 $ 258,137 $ 258,177 $ 275,498
Loans charged off:
Commercial -
industrial,
financial and
agricultural (10,471) (14,840) (13,017) (29,157) (43,582)
Real estate -
construction (8,364) (8,535) (8,442) (25,377) (29,897)
Real estate -
commercial
mortgage (7,463) (5,730) (23,699) (43,053) (22,851)
Real estate -
home equity (1,688) (1,158) (2,789) (6,683) (4,276)
Consumer (685) (634) (471) (1,790) (2,606)
Real estate -
residential
mortgage (670) (1,514) (1,492) (3,009) (14,217)
Leasing and other (625) (486) (630) (1,696) (1,672)
--------- --------- --------- --------- ---------
Total loans
charged off (29,966) (32,897) (50,540) (110,765) (119,101)
Recoveries of loans
charged off:
Commercial -
industrial,
financial and
agricultural 1,693 695 717 3,046 2,089
Real estate -
construction 1,040 595 1,539 2,643 1,237
Real estate -
commercial
mortgage 1,317 249 1,153 3,286 1,975
Real estate -
home equity 343 23 278 641 26
Consumer 202 291 281 833 1,033
Real estate -
residential
mortgage 25 36 71 169 270
Leasing and other 298 192 180 738 790
--------- --------- --------- --------- ---------
Recoveries of
loans previously
charged off 4,918 2,081 4,219 11,356 7,420
--------- --------- --------- --------- ---------
Net loans charged
off (25,048) (30,816) (46,321) (99,409) (111,681)
Provision for
credit losses 23,000 31,000 25,500 76,500 105,000
--------- --------- --------- --------- ---------
Balance at end of
period $ 235,268 $ 268,817 $ 237,316 $ 235,268 $ 268,817
========= ========= ========= ========= =========
Net charge-offs to
average loans
(annualized) 0.84% 1.04% 1.55% 1.11% 1.25%
========= ========= ========= ========= =========
NON-PERFORMING
ASSETS:
Non-accrual loans $ 185,791 $ 269,176 $ 203,539
Loans 90 days past
due and accruing 27,035 41,427 30,434
--------- --------- ---------
Total non-
performing loans 212,826 310,603 233,973
Other real estate
owned 29,217 37,399 32,338
--------- --------- ---------
Total non-
performing assets $ 242,043 $ 348,002 $ 266,311
========= ========= =========
NON-PERFORMING LOANS,
BY TYPE:
Commercial -
industrial,
financial and
agricultural $ 73,879 $ 92,385 $ 67,969
Real estate -
commercial
mortgage 64,609 102,928 82,179
Real estate -
construction 32,742 52,381 43,124
Real estate -
residential
mortgage 24,910 48,086 25,373
Real estate - home
equity 12,644 12,097 11,472
Consumer 3,942 2,614 3,460
Leasing 100 112 396
--------- --------- ---------
Total non-
performing loans $ 212,826 $ 310,603 $ 233,973
========= ========= =========
DELINQUENCY
RATES, BY
TYPE:
September 30, 2012 September 30, 2011 June 30, 2012
------------------- -------------------- -------------------
> / = > / = > / =
31-89 90 Days 31-89 90 Days 31-89 90 Days
Days (1) Total Days (1) Total Days (1) Total
----- ------- ----- ----- ------- ------ ----- ------- -----
Real estate -
commercial
mortgage 0.46% 1.39% 1.85% 0.84% 2.29% 3.13% 0.41% 1.78% 2.19%
Commercial -
industrial,
financial
and
agricultural 0.45% 2.11% 2.56% 0.57% 2.50% 3.07% 0.66% 1.91% 2.57%
Real estate -
construction 0.95% 5.48% 6.43% 1.28% 8.08% 9.36% 0.95% 6.96% 7.91%
Real estate -
residential
mortgage 2.66% 2.05% 4.71% 3.02% 4.62% 7.64% 2.94% 2.15% 5.09%
Real estate -
home equity 0.85% 0.78% 1.63% 0.74% 0.74% 1.48% 0.83% 0.71% 1.54%
Consumer,
leasing and
other 1.85% 1.07% 2.92% 1.71% 0.69% 2.40% 1.61% 0.99% 2.60%
----- ------- ----- ----- ------- ------ ----- ------- -----
Total 0.80% 1.78% 2.58% 0.99% 2.61% 3.60% 0.86% 1.95% 2.81%
===== ======= ===== ===== ======= ====== ===== ======= =====
(1) Includes non-accrual loans
ASSET QUALITY RATIOS:
Sep 30 Sep 30 Jun 30
2012 2011 2012
--------- --------- ---------
Non-accrual loans to
total loans 1.56% 2.26% 1.70%
Non-performing assets
to total loans and
OREO 2.02% 2.92% 2.22%
Non-performing assets
to total assets 1.49% 2.14% 1.63%
Allowance for credit
losses to loans
outstanding 1.97% 2.26% 1.98%
Allowance for credit
losses to non-
performing loans 110.54% 86.55% 101.43%
Non-performing assets
to tangible common
shareholders' equity
and allowance for
credit losses 13.80% 20.37% 15.34%
Media Contact: Laura J. Wakeley (717) 291-2616 Investor Contact: David C. Hostetter (717) 291-2456
Source: Fulton Financial Corporation
