FULTON FINANCIAL CORPORATION 
By LANCASTER, PA -- (Marketwire) -- 01/15/13 -- Fulton Financial Corporation (NASDAQ: FULT)
- Diluted earnings per share for the fourth quarter of 2012 was 20 cents, a 4.8 percent decrease from the third quarter of 2012 and an 11.1 percent increase from the fourth quarter of 2011. For the year ended December 31, 2012, diluted earnings per share was 80 cents, a 9.6 percent increase from 2011.
- The provision for credit losses was $17.5 million for the fourth quarter of 2012, a $5.5 million, or 23.9 percent, decrease compared to the third quarter of 2012. For the year ended December 31, 2012, the provision for loan losses decreased $41.0 million, or 30.4 percent, compared to 2011. Non-performing loans decreased $1.8 million, or 0.8 percent, in comparison to September 30, 2012 and $75.5 million, or 26.3 percent, in comparison to December 31, 2011.
- Net interest income for the fourth quarter of 2012 decreased $3.7 million, or 2.7 percent, compared to the third quarter of 2012 due to a decrease in net interest margin of 9 basis points, or 2.4 percent. For the year ended December 31, 2012, net interest income decreased $15.8 million, or 2.8 percent, in comparison to 2011.
- On December 31, 2012, the Corporation's wholly owned subsidiary, Fulton Bank, N.A., completed the divestiture of its Global Exchange Group division (Global Exchange) for a pre-tax gain of $6.2 million. The federal tax liability associated with this transaction was $4.0 million due to the write-off of non-deductible goodwill, resulting in an after tax gain on the transaction of $2.2 million. The proceeds from this transaction and short-term borrowings were used to prepay approximately $20 million of Federal Home Loan Bank (FHLB) advances, with a weighted average interest rate of 4.38 percent and maturing in January 2017. The Corporation incurred a $3.0 million ($2.0 million, net of tax) penalty in connection with prepaying these FHLB advances.
- In January 2013, the Corporation announced that its board of directors approved the repurchase of up to eight million shares, or approximately 4.0 percent of the Corporation's outstanding shares, through June 30, 2013. Under the Corporation's previous 2012 repurchase program, the Corporation repurchased approximately 2.1 million shares.
Fulton Financial Corporation (NASDAQ: FULT) reported net income of $40.2 million, or 20 cents per diluted share, for the fourth quarter ended December 31, 2012, compared to $41.6 million, or 21 cents per diluted share, for the third quarter of 2012. For the year ended December 31, 2012, net income was $159.8 million, or 80 cents per diluted share, compared to $145.6 million, or 73 cents per diluted share, for 2011.
"2012 was a good year for us. We saw continued improvement in earnings and asset quality, a significant reduction in our provision for credit losses, strong residential mortgage activity, good core deposit growth and higher returns on assets and equity," said E. Philip Wenger, Chairman, CEO and President. "From a shareholder perspective, we continued to deploy capital by initiating a share repurchase program and by increasing our quarterly cash dividend. In the fourth quarter, we were particularly pleased to see a pick-up in loan demand across all our markets, although the persistently low interest rate environment continues to put pressure on our net interest margin. Our primary strategic focus for 2013 is quality interest-earning asset growth."
Asset Quality
Non-performing assets were $237.2 million, or 1.44 percent of total assets, at December 31, 2012, compared to $242.0 million, or 1.49 percent of total assets, at September 30, 2012 and $317.3 million, or 1.94 percent of total assets, at December 31, 2011. The $4.8 million, or 2.0 percent, decrease in non-performing assets in comparison to the third quarter of 2012 was primarily due to a decrease in other real estate owned and decreases in non-performing commercial mortgages and commercial loans, partially offset by an increase in non-performing residential mortgages and home equity loans.
Annualized net charge-offs for the quarter ended December 31, 2012 were 0.91 percent of average total loans, compared to 0.84 percent for the quarter ended September 30, 2012 and 1.36 percent for the quarter ended December 31, 2011. The allowance for credit losses as a percentage of non-performing loans was 106.8 percent at December 31, 2012 in comparison to 110.5 percent at September 30, 2012 and 90.1 percent at December 31, 2011.
Net Interest Income and Margin
Net interest income for the fourth quarter of 2012 decreased $3.7 million, or 2.7 percent, from the third quarter of 2012, primarily due to a decrease in the net interest margin. The net interest margin decreased 9 basis points, or 2.4 percent, from 3.74 percent in the third quarter of 2012, to 3.65 percent in the fourth quarter of 2012. Average yields on interest-earning assets decreased 14 basis points, while the decline in the average costs of interest-bearing liabilities was limited to 5 basis points.
For the year ended December 31, 2012, net interest income decreased $15.8 million, or 2.8 percent, compared to 2011. Net interest margin was 3.76 percent for 2012, as compared to 3.90 percent for 2011.
Average Balance Sheet
Total average assets for the fourth quarter of 2012 were $16.2 billion, a decrease of $43.0 million, or 0.3 percent, from the third quarter of 2012. This decrease was due to a $104.9 million, or 3.8 percent, decrease in investment securities, partially offset by an $80.5 million, or 0.7 percent, increase in loans, net of unearned income.
For the year ended December 31, 2012, average loans, net of unearned income, increased $61.8 million, or 0.5 percent, in comparison to 2011.
Total average liabilities decreased $61.1 million, or 0.4 percent, from the third quarter of 2012, due primarily to a $100.3 million, or 17.0 percent, decrease in short-term borrowings, partially offset by a $36.5 million, or 0.3 percent, increase in average deposits.
For the year ended December 31, 2012, average deposits decreased $64.7 million, or 0.5 percent, compared to 2011. This decrease was due to a $579.6 million, or 13.5 percent, decrease in average time deposits, partially offset by a $514.8 million, or 6.3 percent, increase in average demand and saving accounts.
Non-interest Income
Non-interest income, excluding investment securities gains, increased $7.4 million, or 14.3 percent, in comparison to the third quarter of 2012, primarily due to the aforementioned $6.2 million gain on the divestiture of Global Exchange. Mortgage banking income increased $2.2 million, or 20.9 percent. Net servicing income increased $2.0 million as a result of a $2.1 million mortgage servicing rights impairment charge recorded during the third quarter of 2012, while gains on sales of mortgage loans increased $185,000. Other income decreased $1.2 million due to a decrease in gains from investments in corporate owned life insurance.
For the year ended December 31, 2012, non-interest income, excluding investment securities gains, increased $30.4 million, or 16.6 percent, compared to 2011 due primarily to the $6.2 million gain on the divestiture of Global Exchange and an $18.9 million increase in mortgage banking income.
Non-interest Expense
Non-interest expenses increased $6.6 million, or 6.0 percent, in the fourth quarter of 2012 compared to the third quarter of 2012. As noted above, during the fourth quarter of 2012, the Corporation prepaid approximately $20 million of FHLB advances, incurring a $3.0 million prepayment penalty. Marketing expense increased $1.9 million due to the timing of promotional campaigns. Other expenses increased $1.9 million, primarily related to reversals of reserves for non-income state taxes in the third quarter of 2012. Operating risk loss increased $1.2 million due to increases in reserves for losses on previously sold residential mortgages. Partially offsetting these increases in non-interest expenses was a $1.5 million decrease in other outside services expense as a result of a decrease in consulting expenses associated with risk management and compliance efforts and an $858,000 decrease in salaries and employee benefits, largely a result of lower healthcare costs.
For the year ended December 31, 2012, non-interest expenses increased $33.0 million, or 7.9 percent, due primarily to increases in salaries and employee benefits, operating risk loss and other outside services.
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
-------------------
December December September December September
31 31 30 31 30
2012 2011 2012 2011 2012
----------- ----------- ----------- -------- ---------
ASSETS
Cash and due
from banks $ 256,300 $ 292,598 $ 217,207 (12.4%) 18.0%
Other interest-
earning assets 173,257 175,336 202,305 (1.2%) (14.4%)
Loans held for
sale 64,331 47,009 85,477 36.8% (24.7%)
Investment
securities 2,794,017 2,679,967 2,790,138 4.3% 0.1%
Loans, net of
unearned income 12,148,172 11,968,970 11,933,001 1.5% 1.8%
Allowance for
loan losses (223,903) (256,471) (233,864) (12.7%) (4.3%)
----------- ----------- -----------
Net loans 11,924,269 11,712,499 11,699,137 1.8% 1.9%
Premises and
equipment 227,723 212,274 225,771 7.3% 0.9%
Accrued interest
receivable 45,786 51,098 49,784 (10.4%) (8.0%)
Goodwill and
intangible
assets 535,563 544,209 541,845 (1.6%) (1.2%)
Other assets 506,907 655,518 461,465 (22.7%) 9.8%
----------- ----------- -----------
Total Assets $16,528,153 $16,370,508 $16,273,129 1.0% 1.6%
=========== =========== ===========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Deposits $12,473,091 $12,525,739 $12,601,310 (0.4%) (1.0%)
Short-term
borrowings 868,399 597,033 486,971 45.5% 78.3%
Other
liabilities 210,754 215,048 215,542 (2.0%) (2.2%)
FHLB advances
and long-term
debt 894,253 1,040,149 908,623 (14.0%) (1.6%)
----------- ----------- -----------
Total
Liabilities 14,446,497 14,377,969 14,212,446 0.5% 1.6%
Shareholders'
equity 2,081,656 1,992,539 2,060,683 4.5% 1.0%
----------- ----------- -----------
Total
Liabilities
and
Shareholders'
Equity $16,528,153 $16,370,508 $16,273,129 1.0% 1.6%
=========== =========== ===========
LOANS, DEPOSITS AND SHORT-TERM
BORROWINGS DETAIL:
Loans, by type:
Real estate -
commercial
mortgage $ 4,664,426 $ 4,602,596 $ 4,632,509 1.3% 0.7%
Commercial -
industrial,
financial and
agricultural 3,612,065 3,639,368 3,507,846 (0.8%) 3.0%
Real estate -
home equity 1,632,390 1,624,562 1,603,456 0.5% 1.8%
Real estate -
residential
mortgage 1,256,991 1,097,192 1,213,831 14.6% 3.6%
Real estate -
construction 587,686 615,445 597,358 (4.5%) (1.6%)
Consumer 309,220 318,101 301,182 (2.8%) 2.7%
Leasing and
other 85,394 71,706 76,819 19.1% 11.2%
----------- ----------- -----------
Total Loans, net
of unearned
income $12,148,172 $11,968,970 $11,933,001 1.5% 1.8%
=========== =========== ===========
Deposits, by type:
Noninterest-
bearing demand $ 3,008,675 $ 2,588,034 $ 2,903,591 16.3% 3.6%
Interest-bearing
demand 2,755,603 2,529,388 2,702,710 8.9% 2.0%
Savings deposits 3,325,475 3,394,367 3,416,011 (2.0%) (2.7%)
Time deposits 3,383,338 4,013,950 3,578,998 (15.7%) (5.5%)
----------- ----------- -----------
Total Deposits $12,473,091 $12,525,739 $12,601,310 (0.4%) (1.0%)
=========== =========== ===========
Short-term
borrowings, by
type:
Customer
repurchase
agreements $ 156,238 $ 186,735 $ 192,082 (16.3%) (18.7%)
Customer short-
term promissory
notes 119,691 156,828 124,628 (23.7%) (4.0%)
Federal funds
purchased 592,470 253,470 170,261 133.7% 248.0%
----------- ----------- -----------
Total Short-term
Borrowings $ 868,399 $ 597,033 $ 486,971 45.5% 78.3%
=========== =========== ===========
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands, except per-share data
Quarter Ended % Change from
---------------------------- -----------------
Dec 31 Dec 31 Sep 30 Dec 31 Sep 30
2012 2011 2012 2011 2012
-------- -------- -------- ------- -------
Interest Income:
Interest income $155,560 $169,333 $161,060 (8.1%) (3.4%)
Interest expense 23,338 30,874 25,179 (24.4%) (7.3%)
-------- -------- --------
Net Interest Income 132,222 138,459 135,881 (4.5%) (2.7%)
Provision for credit
losses 17,500 30,000 23,000 (41.7%) (23.9%)
-------- -------- --------
Net Interest Income
after Provision 114,722 108,459 112,881 5.8% 1.6%
Non-Interest Income:
Service charges on
deposit accounts 15,642 15,277 15,651 2.4% (0.1%)
Mortgage banking income 12,813 6,220 10,594 106.0% 20.9%
Other service charges
and fees 11,164 10,784 11,119 3.5% 0.4%
Investment management
and trust services 9,611 8,727 9,429 10.1% 1.9%
Gain on sale of Global
Exchange 6,215 - - 100.0% 100.0%
Investment securities
gains 195 3,054 42 (93.6%) 364.3%
Other 3,936 4,286 5,169 (8.2%) (23.9%)
-------- -------- --------
Total Non-Interest
Income 59,576 48,348 52,004 23.2% 14.6%
Non-Interest Expenses:
Salaries and employee
benefits 61,303 58,109 62,161 5.5% (1.4%)
Net occupancy expense 11,362 10,973 11,161 3.5% 1.8%
Equipment expense 3,873 3,329 3,816 16.3% 1.5%
Data processing 3,713 3,482 3,776 6.6% (1.7%)
Other outside services 3,528 2,595 4,996 36.0% (29.4%)
Professional fees 3,228 2,961 2,728 9.0% 18.3%
FHLB advances
prepayment penalty 3,007 - - 100.0% 100.0%
FDIC insurance expense 2,944 2,730 3,029 7.8% (2.8%)
Operating risk loss 2,627 1,022 1,404 157.0% 87.1%
Software 2,562 2,254 2,511 13.7% 2.0%
Marketing 2,537 3,045 648 (16.7%) 291.5%
OREO and repossession
expense 2,349 3,565 2,096 (34.1%) 12.1%
Other 13,576 14,795 11,717 (8.2%) 15.9%
-------- -------- --------
Total Non-Interest
Expenses 116,609 108,860 110,043 7.1% 6.0%
-------- -------- --------
Income Before Income
Taxes 57,689 47,947 54,842 20.3% 5.2%
Income tax expense 17,449 11,868 13,260 47.0% 31.6%
-------- -------- --------
Net Income $ 40,240 $ 36,079 $ 41,582 11.5% (3.2%)
======== ======== ========
PER SHARE:
Net income:
Basic $ 0.20 $ 0.18 $ 0.21 11.1% (4.8%)
Diluted 0.20 0.18 0.21 11.1% (4.8%)
Cash dividends $ 0.08 $ 0.06 $ 0.08 33.3% -
Shareholders' equity 10.45 9.95 10.36 5.0% 0.9%
Shareholders' equity
(tangible) 7.76 7.24 7.63 7.2% 1.7%
Weighted average shares
(basic) 198,161 199,239 198,956 (0.5%) (0.4%)
Weighted average shares
(diluted) 199,198 199,997 199,808 (0.4%) (0.3%)
Shares outstanding, end
of period 199,225 200,164 198,975 (0.5%) 0.1%
SELECTED FINANCIAL
RATIOS:
Return on average
assets 0.99% 0.88% 1.02%
Return on average
common shareholders'
equity 7.70% 7.16% 8.03%
Return on average
common shareholders'
equity (tangible) 10.53% 10.02% 11.02%
Net interest margin 3.65% 3.81% 3.74%
Efficiency ratio 59.17% 57.44% 56.91%
Year Ended
Dec 31
------------------
2012 2011 % Change
-------- -------- --------
Interest Income:
Interest income $647,496 $693,698 (6.7%)
Interest expense 103,168 133,538 (22.7%)
-------- --------
Net Interest Income 544,328 560,160 (2.8%)
Provision for credit
losses 94,000 135,000 (30.4%)
-------- --------
Net Interest Income
after Provision 450,328 425,160 5.9%
Non-Interest Income:
Service charges on
deposit accounts 61,502 58,078 5.9%
Mortgage banking income 44,600 25,674 73.7%
Other service charges
and fees 44,345 47,482 (6.6%)
Investment management
and trust services 38,239 36,483 4.8%
Gain on sale of Global
Exchange 6,215 - 100.0%
Investment securities
gains 3,026 4,561 (33.7%)
Other 18,697 15,449 21.0%
-------- --------
Total Non-Interest
Income 216,624 187,727 15.4%
Non-Interest Expenses:
Salaries and employee
benefits 243,915 227,435 7.2%
Net occupancy expense 44,663 44,003 1.5%
Equipment expense 14,243 12,870 10.7%
Data processing 14,936 13,541 10.3%
Other outside services 15,310 7,851 95.0%
Professional fees 11,522 12,159 (5.2%)
FHLB advances
prepayment penalty 3,007 - 100.0%
FDIC insurance expense 11,996 14,480 (17.2%)
Operating risk loss 9,454 1,328 611.9%
Software 9,520 8,400 13.3%
Marketing 8,240 9,667 (14.8%)
OREO and repossession
expense 10,196 8,366 21.9%
Other 52,504 56,376 (6.9%)
-------- --------
Total Non-Interest
Expenses 449,506 416,476 7.9%
-------- --------
Income Before Income
Taxes 217,446 196,411 10.7%
Income tax expense 57,601 50,838 13.3%
-------- --------
Net Income $159,845 $145,573 9.8%
======== ========
PER SHARE:
Net income:
Basic $ 0.80 $ 0.73 9.6%
Diluted 0.80 0.73 9.6%
Cash dividends $ 0.30 $ 0.20 50.0%
Shareholders' equity 10.45 9.95 5.0%
Shareholders' equity
(tangible) 7.76 7.24 7.2%
Weighted average shares
(basic) 199,067 198,912 0.1%
Weighted average shares
(diluted) 200,039 199,658 0.2%
Shares outstanding, end
of period 199,225 200,164 (0.5%)
SELECTED FINANCIAL
RATIOS:
Return on average
assets 0.98% 0.90%
Return on average
common shareholders'
equity 7.79% 7.45%
Return on average
common shareholders'
equity (tangible) 10.73% 10.54%
Net interest margin 3.76% 3.90%
Efficiency ratio 57.63% 54.28%
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Quarter Ended
-----------------------------------
December 31, 2012
---------------------------------
Average Yield/
Balance Interest (1) Rate
----------- ------------ ------
ASSETS
Interest-earning assets:
Loans, net of unearned income $12,000,650 $ 141,014 4.68%
Taxable investment securities 2,279,551 13,406 2.35%
Tax-exempt investment securities 286,400 3,857 5.39%
Equity securities 117,333 984 3.35%
----------- ------------ ------
Total Investment Securities 2,683,284 18,247 2.72%
Loans held for sale 59,977 517 3.45%
Other interest-earning assets 145,170 45 0.12%
----------- ------------ ------
Total Interest-earning Assets 14,889,081 159,823 4.28%
Noninterest-earning assets:
Cash and due from banks 221,309
Premises and equipment 224,852
Other assets 1,067,484
Less: allowance for loan losses (235,563)
-----------
Total Assets $16,167,163
===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits $ 2,684,063 $ 1,055 0.16%
Savings deposits 3,391,988 1,251 0.14%
Time deposits 3,472,692 9,748 1.12%
----------- ------------ ------
Total Interest-bearing Deposits 9,548,743 12,054 0.50%
Short-term borrowings 488,310 156 0.13%
FHLB advances and long-term debt 914,013 11,128 4.86%
----------- ------------ ------
Total Interest-bearing Liabilities 10,951,066 23,338 0.85%
Noninterest-bearing liabilities:
Demand deposits 2,953,861
Other 182,890
-----------
Total Liabilities 14,087,817
Shareholders' equity 2,079,346
-----------
Total Liabilities and Shareholders'
Equity $16,167,163
===========
Net interest income/net interest
margin (fully taxable equivalent) 136,485 3.65%
======
Tax equivalent adjustment (4,263)
------------
Net interest income $ 132,222
============
Quarter Ended
-----------------------------------
December 31, 2011
---------------------------------
Average Yield/
Balance Interest (1) Rate
----------- ------------ ------
ASSETS
Interest-earning assets:
Loans, net of unearned income $11,926,246 $ 150,195 5.00%
Taxable investment securities 2,279,658 17,462 3.06%
Tax-exempt investment securities 307,713 4,340 5.64%
Equity securities 121,219 774 2.55%
----------- ------------ ------
Total Investment Securities 2,708,590 22,576 3.33%
Loans held for sale 54,013 541 4.01%
Other interest-earning assets 192,574 133 0.27%
----------- ------------ ------
Total Interest-earning Assets 14,881,423 173,445 4.63%
Noninterest-earning assets:
Cash and due from banks 282,993
Premises and equipment 207,744
Other assets 1,125,429
Less: allowance for loan losses (275,160)
-----------
Total Assets $16,222,429
===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits $ 2,462,551 $ 1,243 0.20%
Savings deposits 3,466,104 2,356 0.27%
Time deposits 4,084,278 14,739 1.43%
----------- ------------ ------
Total Interest-bearing Deposits 10,012,933 18,338 0.73%
Short-term borrowings 463,659 173 0.15%
FHLB advances and long-term debt 1,025,683 12,363 4.80%
----------- ------------ ------
Total Interest-bearing Liabilities 11,502,275 30,874 1.07%
Noninterest-bearing liabilities:
Demand deposits 2,529,548
Other 192,806
-----------
Total Liabilities 14,224,629
Shareholders' equity 1,997,800
-----------
Total Liabilities and Shareholders'
Equity $16,222,429
===========
Net interest income/net interest
margin (fully taxable equivalent) 142,571 3.81%
======
Tax equivalent adjustment (4,112)
------------
Net interest income $ 138,459
============
Quarter Ended
---------------------------------
September 30, 2012
---------------------------------
Average Yield/
Balance Interest (1) Rate
----------- ------------ ------
ASSETS
Interest-earning assets:
Loans, net of unearned income $11,920,193 $ 143,211 4.78%
Taxable investment securities 2,392,043 16,658 2.78%
Tax-exempt investment securities 286,225 3,936 5.50%
Equity securities 109,884 820 2.98%
----------- ------------ ------
Total Investment Securities 2,788,152 21,414 3.07%
Loans held for sale 61,001 578 3.79%
Other interest-earning assets 147,432 35 0.09%
----------- ------------ ------
Total Interest-earning Assets 14,916,778 165,238 4.42%
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 0.16%
Savings deposits 3,364,109 1,431 0.17%
Time deposits 3,657,616 11,346 1.23%
----------- ------------ ------
Total Interest-bearing Deposits 9,629,927 13,848 0.57%
Short-term borrowings 588,568 220 0.15%
FHLB advances and long-term debt 908,767 11,111 4.88%
----------- ------------ ------
Total Interest-bearing Liabilities 11,127,262 25,179 0.90%
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 3.74%
======
Tax equivalent adjustment (4,178)
------------
Net interest income $ 135,881
============
(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and
statutory interest expense disallowances.
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Quarter Ended % Change from
------------------------------------ ---------------------
December September
December 31 December 31 September 30 31 30
2012 2011 2012 2011 2012
----------- ----------- ------------ --------- ---------
Loans, by type:
Real estate -
commercial
mortgage $ 4,623,158 $ 4,554,161 $ 4,603,388 1.5% 0.4%
Commercial -
industrial,
financial
and
agricultural 3,559,171 3,637,465 3,529,733 (2.2%) 0.8%
Real estate -
home equity 1,611,868 1,628,406 1,597,230 (1.0%) 0.9%
Real estate -
residential
mortgage 1,223,589 1,066,463 1,200,752 14.7% 1.9%
Real estate -
construction 593,351 641,485 605,910 (7.5%) (2.1%)
Consumer 305,766 326,818 304,235 (6.4%) 0.5%
Leasing and
other 83,747 71,448 78,945 17.2% 6.1%
----------- ----------- ------------
Total Loans,
net of
unearned
income $12,000,650 $11,926,246 $ 11,920,193 0.6% 0.7%
=========== =========== ============
Deposits, by
type:
Noninterest-
bearing
demand $ 2,953,861 $ 2,529,548 $ 2,836,166 16.8% 4.1%
Interest-
bearing
demand 2,684,063 2,462,551 2,608,202 9.0% 2.9%
Savings
deposits 3,391,988 3,466,104 3,364,109 (2.1%) 0.8%
Time deposits 3,472,692 4,084,278 3,657,616 (15.0%) (5.1%)
----------- ----------- ------------
Total
Deposits $12,502,604 $12,542,481 $ 12,466,093 (0.3%) 0.3%
=========== =========== ============
Short-term
borrowings, by
type:
Customer
repurchase
agreements $ 189,922 $ 195,372 $ 210,830 (2.8%) (9.9%)
Customer
short-term
promissory
notes 125,933 165,677 127,479 (24.0%) (1.2%)
Federal funds
purchased
and other 172,455 102,610 250,259 68.1% (31.1%)
----------- ----------- ------------
Total Short-
term
Borrowings $ 488,310 $ 463,659 $ 588,568 5.3% (17.0%)
=========== =========== ============
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Year ended December 31
---------------------------------------
2012
-------------------------------------
Average
Balance Interest (1) Yield/Rate
----------- ------------ ----------
ASSETS
Interest-earning assets:
Loans, net of unearned income $11,966,347 $ 575,534 4.81%
Taxable investment securities 2,401,343 67,349 2.80%
Tax-exempt investment securities 287,763 15,942 5.54%
Equity securities 112,448 3,291 2.93%
----------- ------------ ----------
Total Investment Securities 2,801,554 86,582 3.09%
Loans held for sale 54,351 2,064 3.80%
Other interest-earning assets 130,946 178 0.14%
----------- ------------ ----------
Total Interest-earning Assets 14,953,198 664,358 4.45%
Noninterest-earning assets:
Cash and due from banks 234,880
Premises and equipment 219,236
Other assets 1,088,151
Less: allowance for loan losses (250,160)
-----------
Total Assets $16,245,305
===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits $ 2,560,831 $ 4,187 0.16%
Savings deposits 3,347,606 6,002 0.18%
Time deposits 3,717,556 46,706 1.26%
----------- ------------ ----------
Total Interest-bearing Deposits 9,625,993 56,895 0.59%
Short-term borrowings 690,883 1,068 0.15%
FHLB advances and long-term debt 933,727 45,205 4.84%
----------- ------------ ----------
Total Interest-bearing Liabilities 11,250,603 103,168 0.92%
Noninterest-bearing liabilities:
Demand deposits 2,756,826
Other 186,882
-----------
Total Liabilities 14,194,311
Shareholders' equity 2,050,994
-----------
Total Liabilities and
Shareholders' Equity $16,245,305
===========
Net interest income/net interest margin (fully
taxable equivalent) 561,190 3.76%
==========
Tax equivalent adjustment (16,862)
------------
Net interest income $ 544,328
============
Year ended December 31
-------------------------------------
2011
-------------------------------------
Average
Balance Interest (1) Yield/Rate
----------- ------------ ----------
ASSETS
Interest-earning assets:
Loans, net of unearned income $11,904,529 $ 605,671 5.09%
Taxable investment securities 2,223,376 80,184 3.61%
Tax-exempt investment securities 330,087 18,521 5.61%
Equity securities 126,766 3,078 2.43%
----------- ------------ ----------
Total Investment Securities 2,680,229 101,783 3.80%
Loans held for sale 43,470 1,958 4.50%
Other interest-earning assets 160,664 358 0.22%
----------- ------------ ----------
Total Interest-earning Assets 14,788,892 709,770 4.80%
Noninterest-earning assets:
Cash and due from banks 274,527
Premises and equipment 207,081
Other assets 1,108,359
Less: allowance for loan losses (276,278)
-----------
Total Assets $16,102,581
===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits $ 2,391,043 $ 5,312 0.22%
Savings deposits 3,359,109 11,536 0.34%
Time deposits 4,297,106 66,235 1.54%
----------- ------------ ----------
Total Interest-bearing Deposits 10,047,258 83,083 0.83%
Short-term borrowings 495,791 746 0.15%
FHLB advances and long-term debt 1,034,475 49,709 4.81%
----------- ------------ ----------
Total Interest-bearing Liabilities 11,577,524 133,538 1.15%
Noninterest-bearing liabilities:
Demand deposits 2,400,293
Other 171,368
-----------
Total Liabilities 14,149,185
Shareholders' equity 1,953,396
-----------
Total Liabilities and
Shareholders' Equity $16,102,581
===========
Net interest income/net interest
margin (fully taxable equivalent) 576,232 3.90%
==========
Tax equivalent adjustment (16,072)
------------
Net interest income $ 560,160
============
(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
-------------------------
2012 2011 % Change
------------ ------------ -----------
Loans, by type:
Real estate - commercial mortgage $ 4,619,587 $ 4,458,205 3.6%
Commercial - industrial, financial
and agricultural 3,551,056 3,681,321 (3.5%)
Real estate - home equity 1,605,088 1,627,308 (1.4%)
Real estate - residential mortgage 1,185,516 1,036,474 14.4%
Real estate - construction 620,166 700,071 (11.4%)
Consumer 307,154 332,613 (7.7%)
Leasing and other 77,780 68,537 13.5%
------------ ------------
Total Loans, net of unearned
income $ 11,966,347 $ 11,904,529 0.5%
============ ============
Deposits, by type:
Noninterest-bearing demand $ 2,756,826 $ 2,400,293 14.9%
Interest-bearing demand 2,560,831 2,391,043 7.1%
Savings deposits 3,347,606 3,359,109 (0.3%)
Time deposits 3,717,556 4,297,106 (13.5%)
------------ ------------
Total Deposits $ 12,382,819 $ 12,447,551 (0.5%)
============ ============
Short-term borrowings, by type:
Customer repurchase agreements $ 206,842 $ 208,144 (0.6%)
Customer short-term promissory
notes 138,632 174,624 (20.6%)
Federal funds purchased and other 345,409 113,023 205.6%
------------ ------------
Total Short-term Borrowings $ 690,883 $ 495,791 39.3%
============ ============
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
Quarter Ended Year Ended
---------------------------- December 31
Dec 31 Dec 31 Sep 30 --------------------
2012 2011 2012 2012 2011
-------- -------- -------- --------- ---------
ALLOWANCE FOR CREDIT
LOSSES:
Balance at beginning
of period $235,268 $268,817 $237,316 $ 258,177 $ 275,498
Loans charged off:
Commercial -
industrial,
financial and
agricultural (12,711) (8,719) (10,471) (41,868) (52,301)
Real estate -
commercial mortgage (8,935) (3,189) (7,463) (51,988) (26,032)
Real estate - home
equity (3,464) (2,121) (1,688) (10,147) (6,397)
Consumer (1,533) (683) (685) (3,323) (3,289)
Real estate -
residential
mortgage (1,500) (18,316) (670) (4,509) (32,533)
Real estate -
construction (873) (8,716) (8,364) (26,250) (38,613)
Leasing and other (585) (496) (625) (2,281) (2,168)
-------- -------- -------- --------- ---------
Total loans charged
off (29,601) (42,240) (29,966) (140,366) (161,333)
Recoveries of loans
charged off:
Commercial -
industrial,
financial and
agricultural 1,236 432 1,693 4,282 2,521
Real estate -
commercial mortgage 85 - 1,317 3,371 1,967
Real estate - home
equity 63 37 343 704 63
Consumer 274 335 202 1,107 1,368
Real estate -
residential
mortgage 290 55 25 459 325
Real estate -
construction 171 509 1,040 2,814 1,746
Leasing and other 153 232 298 891 1,022
-------- -------- -------- --------- ---------
Recoveries of loans
previously charged
off 2,272 1,600 4,918 13,628 9,012
-------- -------- -------- --------- ---------
Net loans charged off (27,329) (40,640) (25,048) (126,738) (152,321)
Provision for credit
losses 17,500 30,000 23,000 94,000 135,000
-------- -------- -------- --------- ---------
Balance at end of
period $225,439 $258,177 $235,268 $ 225,439 $ 258,177
======== ======== ======== ========= =========
Net charge-offs to
average loans
(annualized) 0.91% 1.36% 0.84% 1.06% 1.28%
======== ======== ======== ========= =========
NON-PERFORMING ASSETS:
Non-accrual loans $184,832 $257,761 $185,791
Loans 90 days past due
and accruing 26,221 28,767 27,035
-------- -------- --------
Total non-performing
loans 211,053 286,528 212,826
Other real estate owned 26,146 30,803 29,217
-------- -------- --------
Total non-performing
assets $237,199 $317,331 $242,043
======== ======== ========
NON-PERFORMING LOANS, BY
TYPE:
Commercial - industrial,
financial and
agricultural $ 66,954 $ 80,944 $ 73,879
Real estate - commercial
mortgage 57,120 113,806 64,609
Real estate -
residential mortgage 34,436 16,336 24,910
Real estate -
construction 32,005 60,744 32,742
Real estate - home
equity 15,519 11,207 12,644
Consumer 5,000 3,384 3,942
Leasing 19 107 100
-------- -------- --------
Total non-performing
loans $211,053 $286,528 $212,826
======== ======== ========
DELINQUENCY RATES, BY TYPE:
December 31, 2012 December 31, 2011 September 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% 1.22% 1.68% 0.56% 2.47% 3.03% 0.46% 1.39% 1.85%
Commercial -
industrial,
financial and
agricultural 0.46% 1.85% 2.31% 0.41% 2.23% 2.64% 0.45% 2.11% 2.56%
Real estate -
construction 0.23% 5.44% 5.67% 1.55% 9.87% 11.42% 0.95% 5.48% 6.43%
Real estate -
residential
mortgage 2.56% 2.74% 5.30% 3.38% 1.49% 4.87% 2.66% 2.05% 4.71%
Real estate -
home equity 0.77% 0.96% 1.73% 0.72% 0.69% 1.41% 0.85% 0.78% 1.63%
Consumer,
leasing and
other 1.72% 1.27% 2.99% 1.92% 0.90% 2.82% 1.85% 1.07% 2.92%
----- ------- ----- ----- ------- ------ ----- ------- -----
Total 0.75% 1.74% 2.49% 0.89% 2.39% 3.28% 0.80% 1.78% 2.58%
===== ======= ===== ===== ======= ====== ===== ======= =====
(1) Includes non-accrual loans
ASSET QUALITY RATIOS:
Dec 31 Dec 31 Sep 30
2012 2011 2012
------- ------- -------
Non-accrual loans to total loans 1.52% 2.15% 1.56%
Non-performing assets to total loans and OREO 1.95% 2.64% 2.02%
Non-performing assets to total assets 1.44% 1.94% 1.49%
Allowance for credit losses to loans outstanding 1.86% 2.16% 1.97%
Allowance for credit losses to non-performing
loans 106.82% 90.11% 110.54%
Non-performing assets to tangible common
shareholders' equity and allowance for credit
losses 13.39% 18.60% 13.80%
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