SOURCE: Fulton Financial Corporation

Fulton Financial Corporation

April 22, 2014 16:30 ET

Fulton Financial Reports First Quarter Earnings of $0.22 per Share

LANCASTER, PA--(Marketwired - Apr 22, 2014) - Fulton Financial Corporation (NASDAQ: FULT)

  • Diluted earnings per share for the first quarter of 2014 was 22 cents, unchanged from the fourth quarter of 2013 and a 10.0 percent increase from the first quarter of 2013.
  • Net interest income for the first quarter of 2014 decreased $3.4 million, or 2.5 percent, compared to the fourth quarter of 2013. The net interest margin for the first quarter of 2014 decreased one basis point, to 3.47 percent, compared to the fourth quarter of 2013.
  • Average interest-earning assets decreased $77.9 million, or 0.5 percent, compared to the fourth quarter of 2013, with average loans decreasing $30.2 million, or 0.2 percent.
  • Non-interest income, excluding investment securities gains, decreased $2.2 million, or 5.4 percent, in comparison to the fourth quarter of 2013, while non-interest expense decreased $7.2 million, or 6.2 percent.
  • During the first quarter of 2014, the Corporation implemented a number of its previously disclosed cost savings initiatives, including the consolidation of 13 branches, subsidiary bank management restructurings and changes to certain benefit plans. These initiatives resulted in implementation expenses, net of associated gains, of approximately $1.0 million and expense reductions of approximately $1.0 million during the first quarter of 2014. Annualized expense reductions from these cost savings initiatives are expected to be approximately $8.0 million.
  • The provision for credit losses was $2.5 million for the first quarter of 2014, unchanged from the fourth quarter of 2013 and a $12.5 million, or 83.3 percent, decrease from the first quarter of 2013. Non-performing loans increased $653,000, or 0.4 percent, in comparison to December 31, 2013 and decreased $53.7 million, or 25.7 percent, in comparison to March 31, 2013.
  • During the first quarter of 2014, the Corporation repurchased 4.0 million shares of common stock, completing its outstanding share repurchase program.

Fulton Financial Corporation (NASDAQ: FULT) reported net income of $41.8 million, or 22 cents per diluted share, for the first quarter of 2014, compared to $42.1 million, or 22 cents per diluted share, for the fourth quarter of 2013.

"We were pleased to report another quarter of solid earnings and good returns on assets and equity," said E. Philip Wenger, Chairman, CEO and President. "Asset quality remained strong this quarter. We also saw a significant reduction in operating expenses that contributed to improved efficiency. During the quarter, we completed our previously announced four million share repurchase program."

Net Interest Income and Margin
Net interest income for the first quarter of 2014 decreased $3.4 million, or 2.5 percent, from the fourth quarter of 2013. The net interest margin decreased one basis point, or 0.3 percent, to 3.47 percent, in the first quarter of 2014 from 3.48 percent in the fourth quarter of 2013. Average yields on interest-earning assets decreased one basis point, while the average cost of interest-bearing liabilities increased one basis point.

Average Balance Sheet
Total average assets for the first quarter of 2014 were $16.9 billion, a decrease of $60.2 million, or 0.4 percent, from the fourth quarter of 2013. Average loans, net of unearned income, decreased $30.2 million, or 0.2 percent, in comparison to the fourth quarter of 2013.

             
    Quarter Ended     Increase (decrease)  
    March 31, 2014     December 31, 2013     in Balance  
    Balance   Yield (1)     Balance   Yield (1)     $     %  
    (dollars in thousands)  
Average Loans, net of unearned income, by type:                                      
  Real estate - commercial mortgage   $ 5,085,128   4.44 %   $ 5,065,963   4.49 %   $ 19,165     0.4 %
  Commercial - industrial, financial and agricultural     3,637,075   4.03 %     3,639,690   4.03 %     (2,615 )   (0.1 %)
  Real estate - home equity     1,755,346   4.18 %     1,774,919   4.18 %     (19,573 )   (1.1 %)
  Real estate - residential mortgage     1,336,323   3.99 %     1,331,987   4.04 %     4,336     0.3 %
  Real estate - construction     576,346   4.08 %     581,306   4.15 %     (4,960 )   (0.9 %)
  Consumer     274,910   4.82 %     287,245   4.85 %     (12,335 )   (4.3 %)
  Leasing and other     97,229   9.79 %     111,456   8.01 %     (14,227 )   (12.8 %)
                                         
  Total Average Loans, net of unearned income   $ 12,762,357   4.28 %   $ 12,792,566   4.29 %   $ (30,209 )   (0.2 %)
                                         
(1)    Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.
     

Total average liabilities decreased $72.3 million, or 0.5 percent, from the fourth quarter of 2013, due to a $187.7 million decrease in average deposits, partially offset by a $109.2 million, or 9.9 percent, increase short-term borrowings. 

             
    Quarter Ended     Increase (decrease)  
    March 31, 2014     December 31, 2013     in Balance  
    Balance   Rate     Balance   Rate     $     %  
    (dollars in thousands)        
Average Deposits, by type:                                      
  Noninterest-bearing demand   $ 3,243,424   - %   $ 3,318,073   - %   $ (74,649 )   (2.2 %)
  Interest-bearing demand     2,945,211   0.13 %     2,966,994   0.13 %     (21,783 )   (0.7 %)
  Savings deposits     3,351,871   0.13 %     3,410,030   0.12 %     (58,159 )   (1.7 %)
Total average demand and savings     9,540,506   0.08 %     9,695,097   0.08 %     (154,591 )   (1.6 %)
  Time deposits     2,932,456   0.82 %     2,965,604   0.82 %     (33,148 )   (1.1 %)
                                       
  Total Average Deposits   $ 12,472,962   0.26 %   $ 12,660,701   0.25 %   $ (187,739 )   (1.5 %)
                                         

Asset Quality
Non-performing assets were $170.2 million, or 1.01 percent of total assets, at March 31, 2014, compared to $169.3 million, or 1.00 percent of total assets, at December 31, 2013 and $232.5 million, or 1.39 percent of total assets, at March 31, 2013. The $901,000, or 0.5 percent, increase in non-performing assets in comparison to the fourth quarter of 2013 was primarily due to an increase in non-performing commercial mortgages and commercial loans, partially offset by a decrease in non-performing residential mortgages.

Annualized net charge-offs for the quarter ended March 31, 2014 were 0.26 percent of average total loans, compared to 0.33 percent for the quarter ended December 31, 2013 and 0.62 percent for the quarter ended March 31, 2013. The allowance for credit losses as a percentage of non-performing loans was 128.5 percent at March 31, 2014, as compared to 132.8 percent at December 31, 2013 and 106.2 percent at March 31, 2013.

Non-interest Income 
Non-interest income, excluding investment securities gains, decreased $2.2 million, or 5.4 percent, in comparison to the fourth quarter of 2013. Service charges on deposit accounts decreased $1.1 million, or 8.3 percent, including a $649,000 decrease in overdraft fees. Mortgage banking income decreased $758,000, including a $715,000 decrease in gains on sales of mortgage loans, as both volumes and spreads decreased.

Non-interest Expense
Non-interest expense decreased $7.2 million, or 6.2 percent, in the first quarter of 2014 compared to the fourth quarter of 2013. Salaries and employee benefits decreased $5.6 million, or 8.6 percent, due primarily to decreases in incentive compensation and health insurance expense, in addition to a $1.5 million gain recognized as a result of an amendment of the Corporation's postretirement health plan. These decreases were partially offset by a seasonal increase in payroll taxes and an increase in severance costs. A $1.5 million increase in net occupancy expense was mainly a result of increased snow removal costs. Other outside services declined $1.8 million due to the timing of consulting arrangements related to risk management and compliance initiatives.

About Fulton Financial
Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company that has banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates, headquartered as indicated: 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.

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2013, which has been filed with the Securities and Exchange Commission and is available in the Investor Relations section of the Corporation's website (www.fult.com) and on the Securities and Exchange Commission's website (www.sec.gov). 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.

Non-GAAP Financial Measures
The Corporation uses certain non-GAAP financial measures in this earnings release. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this release.

           
           
FULTON FINANCIAL CORPORATION          
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)          
dollars in thousands          
           
                % Change from  
    March 31   March 31   December 31   March 31   December 31  
    2014   2013   2013   2013   2013  
                       
ASSETS                            
                             
  Cash and due from banks   $ 260,389   $ 174,479   $ 218,540   49.2 % 19.1 %
  Other interest-earning assets     307,062     171,684     248,161   78.9 % 23.7 %
  Loans held for sale     24,417     63,045     21,351   (61.3 %) 14.4 %
  Investment securities     2,501,198     2,736,269     2,568,434   (8.6 %) (2.6 %)
  Loans, net of unearned income     12,733,792     12,377,288     12,782,220   2.9 % (0.4 %)
  Allowance for loan losses     (197,089 )   (220,041 )   (202,780 ) (10.4 %) (2.8 %)
    Net loans     12,536,703     12,157,247     12,579,440   3.1 % (0.3 %)
  Premises and equipment     225,647     226,754     226,021   (0.5 %) (0.2 %)
  Accrued interest receivable     43,376     47,485     44,037   (8.7 %) (1.5 %)
  Goodwill and intangible assets     532,747     534,987     533,076   (0.4 %) (0.1 %)
  Other assets     480,350     570,787     495,574   (15.8 %) (3.1 %)
                               
      Total Assets   $ 16,911,889   $ 16,682,737   $ 16,934,634   1.4 % (0.1 %)
                             
LIABILITIES AND SHAREHOLDERS' EQUITY                            
                             
  Deposits   $ 12,669,917   $ 12,388,460   $ 12,491,186   2.3 % 1.4 %
  Short-term borrowings     1,069,684     1,126,966     1,258,629   (5.1 %) (15.0 %)
  Other liabilities     230,108     216,337     238,048   6.4 % (3.3 %)
  FHLB advances and long-term debt     883,461     889,211     883,584   (0.6 %) -  
                               
    Total Liabilities     14,853,170     14,620,974     14,871,447   1.6 % (0.1 %)
                               
  Shareholders' equity     2,058,719     2,061,763     2,063,187   (0.1 %) (0.2 %)
                               
      Total Liabilities and Shareholders' Equity   $ 16,911,889   $ 16,682,737   $ 16,934,634   1.4 % (0.1 %)
                             
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:                      
                             
Loans, by type:                            
  Real estate - commercial mortgage   $ 5,137,454   $ 4,729,930   $ 5,101,922   8.6 % 0.7 %
  Commercial - industrial, financial and agricultural     3,574,130     3,658,483     3,628,420   (2.3 %) (1.5 %)
  Real estate - home equity     1,740,496     1,689,446     1,764,197   3.0 % (1.3 %)
  Real estate - residential mortgage     1,331,465     1,303,454     1,337,380   2.1 % (0.4 %)
  Real estate - construction     584,217     597,597     573,672   (2.2 %) 1.8 %
  Consumer     270,021     309,138     283,124   (12.7 %) (4.6 %)
  Leasing and other     96,009     89,240     93,505   7.6 % 2.7 %
                               
  Total Loans, net of unearned income   $ 12,733,792   $ 12,377,288   $ 12,782,220   2.9 % (0.4 %)
                             
Deposits, by type:                            
  Noninterest-bearing demand   $ 3,359,900   $ 3,075,511   $ 3,283,172   9.2 % 2.3 %
  Interest-bearing demand     2,960,577     2,698,811     2,945,210   9.7 % 0.5 %
  Savings deposits     3,346,880     3,345,842     3,344,882   - 0.1 %
  Time deposits     3,002,560     3,268,296     2,917,922   (8.1 %) 2.9 %
                             
  Total Deposits   $ 12,669,917   $ 12,388,460   $ 12,491,186   2.3 % 1.4 %
                             
Short-term borrowings, by type:                            
  Customer repurchase agreements   $ 220,426   $ 158,214   $ 175,621   39.3 % 25.5 %
  Customer short-term promissory notes     88,160     114,231     100,572   (22.8 %) (12.3 %)
  Federal funds purchased     361,098     729,521     582,436   (50.5 %) (38.0 %)
  Short-term FHLB advances     400,000     125,000     400,000   220.0 % -  
                               
  Total Short-term Borrowings   $ 1,069,684   $ 1,126,966   $ 1,258,629   (5.1 %) (15.0 %)
                             
                             
 
FULTON FINANCIAL CORPORATION          
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)          
in thousands, except per-share data and percentages          
                     
    Quarter Ended     % Change from  
    Mar 31     Mar 31     Dec 31     Mar 31     Dec 31  
    2014     2013     2013     2013     2013  
                               
Interest Income:                                    
  Interest income   $ 148,792     $ 151,322     $ 152,457     (1.7 %)   (2.4 %)
  Interest expense     19,227       21,678       19,505     (11.3 %)   (1.4 %)
                                     
    Net Interest Income     129,565       129,644       132,952     (0.1 %)   (2.5 %)
  Provision for credit losses     2,500       15,000       2,500     (83.3 %)   -  
                                     
    Net Interest Income after Provision     127,065       114,644       130,452     10.8 %   (2.6 %)
                                     
Non-Interest Income:                                    
  Service charges on deposit accounts     11,711       14,111       12,770     (17.0 %)   (8.3 %)
  Investment management and trust services     10,958       10,096       10,589     8.5 %   3.5 %
  Other service charges and fees     8,927       8,510       9,421     4.9 %   (5.2 %)
  Mortgage banking income     3,605       8,173       4,363     (55.9 %)   (17.4 %)
  Investment securities gains     -       2,473       33     (100.0 %)   (100.0 %)
  Other     3,305       3,896       3,556     (15.2 %)   (7.1 %)
                                       
    Total Non-Interest Income     38,506       47,259       40,732     (18.5 %)   (5.5 %)
                                     
Non-Interest Expense:                                    
  Salaries and employee benefits     59,566       61,212       65,194     (2.7 %)   (8.6 %)
  Net occupancy expense     13,603       11,844       12,134     14.9 %   12.1 %
  Other outside services     3,812       2,860       5,633     33.3 %   (32.3 %)
  Data processing     3,796       3,903       3,386     (2.7 %)   12.1 %
  Equipment expense     3,602       3,908       3,972     (7.8 %)   (9.3 %)
  Software     2,925       2,748       2,450     6.4 %   19.4 %
  Professional fees     2,904       3,047       3,379     (4.7 %)   (14.1 %)
  FDIC insurance expense     2,689       2,847       2,839     (5.5 %)   (5.3 %)
  Operating risk loss     1,828       1,766       2,367     3.5 %   (22.8 %)
  Marketing     1,584       1,872       1,660     (15.4 %)   (4.6 %)
  Other real estate owned and repossession expense     983       2,854       1,116     (65.6 %)   (11.9 %)
  Intangible amortization     315       534       834     (41.0 %)   (62.2 %)
  Other     11,947       11,541       11,798     3.5 %   1.3 %
                                       
    Total Non-Interest Expense     109,554       110,936       116,762     (1.2 %)   (6.2 %)
                                       
    Income Before Income Taxes     56,017       50,967       54,422     9.9 %   2.9 %
  Income tax expense     14,234       11,740       12,339     21.2 %   15.4 %
                                       
    Net Income   $ 41,783     $ 39,227     $ 42,083     6.5 %   (0.7 %)
                                     
                                     
PER SHARE:                                    
                                     
  Net income:                                    
    Basic   $ 0.22     $ 0.20     $ 0.22     10.0 %   -  
    Diluted     0.22       0.20       0.22     10.0 %   -  
                                       
  Cash dividends   $ 0.08     $ 0.08     $ 0.08     -     -  
  Shareholders' equity     10.90       10.56       10.71     3.2 %   1.8 %
  Shareholders' equity (tangible)     8.08       7.82       7.94     3.3 %   1.8 %
                                       
  Weighted average shares (basic)     189,467       196,299       191,577     (3.5 %)   (1.1 %)
  Weighted average shares (diluted)     190,489       197,217       192,658     (3.4 %)   (1.1 %)
  Shares outstanding, end of period     188,850       195,276       192,652     (3.3 %)   (2.0 %)
                                     
SELECTED FINANCIAL RATIOS:                                    
                                     
  Return on average assets     1.01 %     0.96 %     0.99 %            
  Return on average shareholders' equity     8.21 %     7.67 %     8.14 %            
  Return on average shareholders' equity (tangible)     11.13 %     10.43 %     11.15 %            
  Net interest margin     3.47 %     3.55 %     3.48 %            
  Efficiency ratio     63.38 %     61.78 %     65.14 %            
                                     
                                     
                                     
FULTON FINANCIAL CORPORATION  
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)  
dollars in thousands  
   
  Quarter Ended  
  March 31, 2014     March 31, 2013     December 31, 2013  
 
 
Average
Balance
 
Interest (1)
    Yield/
Rate
    Average
Balance
   
Interest (1)
    Yield/
Rate
    Average
Balance
   
Interest (1)
    Yield/
Rate
 
ASSETS                                                              
                                                               
Interest-earning assets:                                                              
  Loans, net of unearned income $ 12,762,357   $ 134,749     4.28 %   $ 12,257,280     $ 136,948     4.53 %   $ 12,792,566     $ 138,336     4.29 %
  Taxable investment securities   2,257,773     13,266     2.35 %     2,421,178       13,397     2.22 %     2,289,672       13,431     2.35 %
  Tax-exempt investment securities   279,278     3,613     5.17 %     292,118       3,814     5.22 %     283,799       3,574     5.04 %
  Equity securities   33,922     429     5.11 %     44,371       510     4.64 %     33,887       413     4.83 %
                                                                 
  Total Investment Securities   2,570,973     17,308     2.70 %     2,757,667       17,721     2.57 %     2,607,358       17,418     2.67 %
                                                                 
  Loans held for sale   13,426     134     4.00 %     47,885       495     4.14 %     20,059       290     5.78 %
  Other interest-earning assets   258,803     882     1.36 %     190,576       429     0.90 %     263,478       737     1.12 %
                                                                 
  Total Interest-earning Assets   15,605,559     153,073     3.97 %     15,253,408       155,593     4.13 %     15,683,461       156,781     3.98 %
                                                               
Noninterest-earning assets:                                                              
  Cash and due from banks   199,641                   202,507                     212,463                
  Premises and equipment   226,295                   226,466                     226,955                
  Other assets   1,032,071                   1,071,440                     1,008,304                
  Less: allowance for loan losses   (203,201)                   (227,858 )                   (210,636 )              
                                                               
  Total Assets $ 16,860,365                 $ 16,525,963                   $ 16,920,547                
                                                               
                                                               
LIABILITIES AND SHAREHOLDERS' EQUITY                                                              
                                                               
Interest-bearing liabilities:                                                              
  Demand deposits $ 2,945,211   $ 909     0.13 %   $ 2,705,835     $ 877     0.13 %   $ 2,966,994     $ 969     0.13 %
  Savings deposits   3,351,871     1,035     0.13 %     3,334,305       1,023     0.12 %     3,410,030       1,042     0.12 %
  Time deposits   2,932,456     5,952     0.82 %     3,321,309       8,501     1.04 %     2,965,604       6,117     0.82 %
                                                                 
  Total Interest-bearing Deposits   9,229,538     7,896     0.35 %     9,361,449       10,401     0.45 %     9,342,628       8,128     0.35 %
                                                                 
  Short-term borrowings   1,208,953     633     0.21 %     1,032,122       509     0.20 %     1,099,709       520     0.19 %
  FHLB advances and long-term debt   883,532     10,698     4.88 %     891,173       10,768     4.87 %     888,378       10,857     4.87 %
                                                                 
  Total Interest-bearing Liabilities   11,322,023     19,227     0.69 %     11,284,744       21,678     0.78 %     11,330,715       19,505     0.68 %
                                                               
Noninterest-bearing liabilities:                                                              
  Demand deposits     3,243,424                   2,968,777                     3,318,073                
  Other     232,004                   198,944                     221,010                
                                                                   
  Total Liabilities     14,797,451                   14,452,465                     14,869,798                
                                                                   
  Shareholders' equity     2,062,914                   2,073,498                     2,050,749                
                                                                   
  Total Liabilities and Shareholders' Equity $   16,860,365                 $ 16,525,963                   $ 16,920,547                
                                                                   
  Net interest income/net interest margin (fully taxable equivalent)           133,846     3.47 %             133,915     3.55 %             137,276     3.48 %
  Tax equivalent adjustment           (4,281 )                   (4,271 )                   (4,324 )      
                                                                   
  Net interest income         $ 129,565                   $ 129,644                   $ 132,952        
 
 (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  
      March 31     March 31     December 31   March 31     December 31  
      2014     2013     2013   2013     2013  
                   
Loans, by type:                              
  Real estate - commercial mortgage   $ 5,085,128   $ 4,666,494   $ 5,065,963   9.0 %   0.4 %
  Commercial - industrial, financial and agricultural     3,637,075     3,662,566     3,639,690   (0.7 %)   (0.1 %)
  Real estate - home equity     1,755,346     1,662,173     1,774,919   5.6 %   (1.1 %)
  Real estate - residential mortgage     1,336,323     1,283,168     1,331,987   4.1 %   0.3 %
  Real estate - construction     576,346     591,338     581,306   (2.5 %)   (0.9 %)
  Consumer     274,910     305,480     287,245   (10.0 %)   (4.3 %)
  Leasing and other     97,229     86,061     111,456   13.0 %   (12.8 %)
                               
  Total Loans, net of unearned income   $ 12,762,357   $ 12,257,280   $ 12,792,566   4.1 %   (0.2 %)
                               
Deposits, by type:                              
  Noninterest-bearing demand   $ 3,243,424   $ 2,968,777   $ 3,318,073   9.3 %   (2.2 %)
  Interest-bearing demand     2,945,211     2,705,835     2,966,994   8.8 %   (0.7 %)
  Savings deposits     3,351,871     3,334,305     3,410,030   0.5 %   (1.7 %)
  Time deposits     2,932,456     3,321,309     2,965,604   (11.7 %)   (1.1 %)
                                 
  Total Deposits   $ 12,472,962   $ 12,330,226   $ 12,660,701   1.2 %   (1.5 %)
                               
Short-term borrowings, by type:                              
  Customer repurchase agreements   $ 187,362   $ 165,109   $ 196,997   13.5 %   (4.9 %)
  Customer short-term promissory notes     102,000     112,041     93,986   (9.0 %)   8.5 %
  Federal funds purchased     416,230     709,779     408,726   (41.4 %)   1.8 %
  Short-term FHLB advances and other borrowings     503,361     45,193     400,000   N/M     25.8 %
                               
  Total Short-term Borrowings   $ 1,208,953   $ 1,032,122   $ 1,099,709   17.1 %   9.9 %
                               
N/M - Not meaningful                              
                               
 
 
 
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
                 
    Quarter Ended
    Mar 31     Mar 31     Dec 31
    2014     2013     2013
ALLOWANCE FOR CREDIT LOSSES:                    
                     
  Balance at beginning of period   $ 204,917     $ 225,439     $ 212,838
                     
  Loans charged off:                    
    Commercial - industrial, financial and agricultural     (5,125 )     (9,502 )   (5,527)
    Consumer and home equity     (2,402 )     (2,954 )   (1,879)
    Real estate - commercial mortgage     (1,386 )     (4,133 )   (7,779)
    Real estate - residential mortgage     (846 )     (3,050 )   (1,423)
    Real estate - construction     (214 )     (1,986 )   (1,391)
    Leasing and other     (295 )     (481 )   (616)
    Total loans charged off     (10,268 )     (22,106 )   (18,615)
  Recoveries of loans previously charged off:                    
    Commercial - industrial, financial and agricultural     744       379     5,851
    Consumer and home equity     565       837     451
    Real estate - commercial mortgage     44       1,064     740
    Real estate - residential mortgage     116       81     106
    Real estate - construction     224       671     888
    Leasing and other     164       162     158
    Recoveries of loans previously charged off     1,857       3,194     8,194
  Net loans charged off     (8,411 )     (18,912 )   (10,421)
  Provision for credit losses     2,500       15,000     2,500
                     
  Balance at end of period   $ 199,006     $ 221,527     $ 204,917
                     
  Net charge-offs to average loans (annualized)     0.26 %     0.62 %   0.33%
                     
NON-PERFORMING ASSETS:                    
                     
  Non-accrual loans   $ 133,705     $ 179,334     $ 133,753
  Loans 90 days past due and accruing     21,225       29,325     20,524
    Total non-performing loans     154,930       208,659     154,277
  Other real estate owned     15,300       23,820     15,052
                     
  Total non-performing assets   $ 170,230     $ 232,479     $ 169,329
                     
NON-PERFORMING LOANS, BY TYPE:                    
                     
  Real estate - commercial mortgage   $ 45,876     $ 58,805     $ 44,068
  Commercial - industrial, financial and agricultural     38,830       61,113     38,021
  Real estate - residential mortgage     29,305       36,361     31,347
  Real estate - construction     20,758       31,919     21,267
  Consumer and home equity     20,087       20,250     19,526
  Leasing     74       211     48
                     
  Total non-performing loans   $ 154,930     $ 208,659     $ 154,277
                     
                     
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:              
                     
  Real-estate - residential mortgage   $ 30,363     $ 33,095     $ 28,815
  Real-estate - commercial mortgage     19,514       28,421     19,758
  Real estate - construction     8,430       11,125     10,117
  Commercial - industrial, financial and agricultural     6,755       9,031     8,045
  Consumer and home equity     2,622       1,549     1,376
  Total accruing TDRs     67,684       83,221     68,111
  Non-accrual TDRs (1)     27,487       33,215     30,209
  Total TDRs   $ 95,171     $ 116,436     $ 98,320
                     
(1) Included within non-accrual loans above.
 
DELINQUENCY RATES, BY TYPE:
 
    March 31, 2014   March 31, 2013   December 31, 2013
    31-89 Days   > than or = to 90 Days (2)   Total   31-89 Days   > than or = to 90 Days (2)   Total   31-89 Days   > than or = to 90 Days (2)   Total
                                     
  Real estate - commercial mortgage   0.35%   0.89%   1.24%   0.39%   1.25%   1.64%   0.38%   0.87%   1.25%
  Commercial - industrial, financial and agricultural   0.33%   1.09%   1.42%   0.35%   1.67%   2.02%   0.30%   1.04%   1.34%
  Real estate - construction   0.43%   3.55%   3.98%   0.17%   5.34%   5.51%   0.11%   3.71%   3.82%
  Real estate - residential mortgage   1.53%   2.20%   3.73%   2.07%   2.79%   4.86%   1.74%   2.34%   4.08%
  Consumer, home equity, leasing and other   0.89%   0.96%   1.85%   0.82%   0.98%   1.80%   1.10%   0.91%   2.01%
                                     
  Total   0.56%   1.22%   1.78%   0.62%   1.68%   2.30%   0.61%   1.20%   1.81%
                                     
(2) Includes non-accrual loans
                   
ASSET QUALITY RATIOS:  
   
    Mar 31     Mar 31     Dec 31  
    2014     2013     2013  
                   
  Non-accrual loans to total loans   1.05 %   1.45 %   1.05 %
  Non-performing assets to total loans and OREO   1.34 %   1.87 %   1.32 %
  Non-performing assets to total assets   1.01 %   1.39 %   1.00 %
  Allowance for credit losses to loans outstanding   1.56 %   1.79 %   1.60 %
  Allowance for credit losses to non-performing loans   128.45 %   106.17 %   132.82 %
  Non-performing assets to tangible common shareholders' equity and allowance for credit losses   9.87 %   13.30 %   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 certain financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's quarterly results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:
                   
    Quarter Ended  
    March 31     March 31     December 31  
    2014     2013     2013  
Shareholders' equity (tangible), per share                        
Shareholders' equity   $ 2,058,719     $ 2,061,763     $ 2,063,187  
Less: Goodwill and intangible assets     (532,747 )     (534,987 )     (533,076 )
Tangible shareholders' equity (numerator)   $ 1,525,972     $ 1,526,776     $ 1,530,111  
                         
Shares outstanding, end of period (denominator)     188,850       195,276       192,652  
                         
  Shareholders' equity (tangible), per share   $ 8.08     $ 7.82     $ 7.94  
                         
Return on average common shareholders' equity (tangible)                        
Net income   $ 41,783     $ 39,227     $ 42,083  
Plus: Intangible amortization, net of tax     204       347       541  
Numerator   $ 41,987     $ 39,574     $ 42,624  
                         
Average shareholders' equity   $ 2,062,914     $ 2,073,498       2,050,749  
Less: Average goodwill and intangible assets     (532,901 )     (535,255 )     (533,597 )
Average tangible shareholders' equity (denominator)   $ 1,530,013     $ 1,538,243     $ 1,517,152  
                         
  Return on average common shareholders' equity (tangible), annualized     11.13 %     10.43 %     11.15 %
                         
Efficiency ratio                        
Non-interest expense   $ 109,554     $ 110,936     $ 116,762  
Less: Intangible amortization     (315 )     (534 )     (834 )
Numerator   $ 109,239     $ 110,402     $ 115,928  
                         
Net interest income (fully taxable equivalent)   $ 133,846     $ 133,915     $ 137,276  
Plus: Total Non-interest income     38,506       47,259       40,732  
Less: Investment securities gains     -       (2,473 )     (33 )
Denominator   $ 172,352     $ 178,701     $ 177,975  
                         
  Efficiency ratio     63.38 %     61.78 %     65.14 %
                         
Non-performing assets to tangible common shareholders' equity and allowance for credit losses                        
Non-performing assets (numerator)   $ 170,230     $ 232,479     $ 169,329  
                         
Tangible shareholders' equity   $ 1,525,972     $ 1,526,776     $ 1,530,111  
Plus: Allowance for credit losses     199,006       221,527       204,917  
Tangible shareholders' equity and allowance for credit losses (denominator)   $ 1,724,978     $ 1,748,303     $ 1,735,028  
                         
  Non-performing assets to tangible common shareholders' equity and allowance for credit losses     9.87 %     13.30 %     9.76 %

 

Contact Information

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    (717) 291-2616


    Investor Contact:
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