SOURCE: Fulton Financial Corporation

Fulton Financial Corporation

July 17, 2012 16:30 ET

Fulton Financial Reports Second Quarter Earnings of $0.20 per Share

LANCASTER, PA--(Marketwire - Jul 17, 2012) - Fulton Financial Corporation (NASDAQ: FULT)

  • Diluted earnings per share for the second quarter of 2012 was 20 cents, a 5.3 percent increase from the first quarter of 2012 and an 11.1 percent increase from the second quarter of 2011.
  • The provision for credit losses was $25.5 million for the second quarter of 2012, a $2.5 million, or 8.9 percent, decrease from the first quarter of 2012 and a $10.5 million, or 29.2 percent, decrease from the second quarter of 2011. Non-performing loans decreased $50.0 million, or 17.6 percent, in comparison to the first quarter of 2012. In June 2012, the Corporation sold $44.1 million of non-accrual commercial mortgage, commercial and construction loans to an investor.
  • Net interest income decreased $1.2 million, or 0.8 percent, in comparison to the first quarter of 2012. Net interest margin decreased 7 basis points, or 1.8 percent, to 3.78 percent.
  • In comparison to the first quarter of 2012, other income increased $1.7 million, or 3.3 percent, and other expenses increased $1.4 million, or 1.3 percent.
  • In June 2012, the Corporation announced that its board of directors approved a share repurchase program pursuant to which the Corporation is authorized to repurchase up to five million shares, or approximately 2.5 percent of the Corporation's outstanding shares, through December 31, 2012.

Fulton Financial Corporation (NASDAQ: FULT) reported net income of $39.9 million, or 20 cents per diluted share, for the second quarter ended June 30, 2012, compared to $38.1 million, or 19 cents per diluted share, for the first quarter of 2012. For the six months ended June 30, 2012, net income was $78.0 million, or 39 cents per diluted share, compared to $70.2 million, or 35 cents per diluted share, for the same period in 2011.

"Improved asset quality and continued strong growth in non-interest income, especially from residential mortgage activity, contributed significantly to our second quarter earnings," said R. Scott Smith, Jr., Chairman and CEO. "We also saw improvement in our return on average assets which is a management priority. In the lending area, we experienced a decrease in the provision for credit losses and sold a group of non-accrual loans that enabled us to further reduce our level of non-performing assets. Even with this sale, end of quarter total outstanding loans increased modestly. While we experienced a decrease in our funding costs, asset yields contracted more rapidly, leading to a reduction in our net interest margin. Our increasing focus on enhancing our risk management and compliance infrastructure was reflected in higher expenses in the second quarter."

Asset Quality
As mentioned above, in June 2012, the Corporation sold $44.1 million of non-accrual commercial mortgage, commercial and construction loans to an investor. Below is a summary of the transaction (in thousands):

   
Real Estate -Commercial
mortgage
    Commercial -industrial,
financial and
agricultural
   

Real Estate -Construction
   


Total
 
Net recorded investment in loans sold   $ 29,850     $ 11,520     $ 2,740     $ 44,110  
Proceeds from sale, net of selling expenses     15,910       5,170       1,850     $ 22,930  
Total charge-off   $ (13,940 )   $ (6,350 )   $ (890 )   $ (21,180 )
                                 
Existing allocation for credit losses on sold loans   $ (15,090 )   $ (7,510 )   $ (1,520 )   $ (24,120 )

Non-performing assets were $266.3 million, or 1.63 percent of total assets, at June 30, 2012, compared to $317.5 million, or 1.92 percent of total assets, at March 31, 2012 and $348.3 million, or 2.18 percent of total assets, at June 30, 2011.

Annualized net charge-offs for the quarter ended June 30, 2012 were 1.55 percent of average total loans, compared to 0.94 percent for the quarter ended March 31, 2012. Excluding the impact of the loan sale, which resulted in second quarter charge-offs of $21.2 million, annualized net charge-offs to average loans for the second quarter and six months ended June 30, 2012 were 0.84 percent and 0.89 percent, respectively. The allowance for credit losses as a percentage of non-performing loans was 101.4 percent at June 30, 2012 in comparison to 90.9 percent at March 31, 2012.

Net Interest Income and Margin
Net interest income for the second quarter of 2012 decreased $1.2 million, or 0.8 percent, from the first quarter of 2012. Net interest margin decreased 7 basis points, or 1.8 percent, from 3.85 percent in the first quarter of 2012 to 3.78 percent in the second quarter of 2012. The decrease in net interest margin and net interest income was primarily due to yields on interest-earning assets decreasing more than funding costs. Average yields decreased 13 basis points, or 2.8 percent, while average costs decreased 6 basis points, or 6.1 percent. This impact was somewhat mitigated by a $141.0 million, or 0.9 percent, increase in interest-earning assets.

Average Balance Sheet
Total average assets for the second quarter of 2012 were $16.4 billion, an increase of $113.2 million, or 0.7 percent, from the first quarter of 2012, due primarily to a $111.3 million, or 4.0 percent, increase in investment securities.

Average loans, net of unearned income, decreased $13.3 million, or 0.1 percent, in comparison to the first quarter of 2012.

    Quarter Ended            
    Jun 30   Mar 31   Increase (decrease)  
    2012   2012   $     %  
    (dollars in thousands)  
Loans, by type:                          
  Real estate - commercial mortgage   $ 4,634,436   $ 4,617,507   $ 16,929     0.4 %
  Commercial - industrial, financial and agricultural     3,529,947     3,585,520     (55,573 )   (1.5 %)
  Real estate - home equity     1,599,702     1,611,565     (11,863 )   (0.7 %)
  Real estate - residential mortgage     1,179,513     1,137,625     41,888     3.7 %
  Real estate - construction     640,282     641,574     (1,292 )   (0.2 %)
  Consumer     307,071     311,592     (4,521 )   (1.5 %)
  Leasing and other     74,753     73,589     1,164     1.6 %
                             
  Total Loans, net of unearned income   $ 11,965,704   $ 11,978,972   $ (13,268 )   (0.1 %)

Changes in average loans, by type, included a $55.6 million decrease in commercial loans and an $11.9 million decrease in home equity loans. These decreases were partially offset by a $41.9 million increase in residential mortgages and a $16.9 million increase in commercial mortgages.

Average deposits for the second quarter of 2012 decreased $84.6 million, or 0.7 percent, from the first quarter of 2012.

    Quarter Ended            
    Jun 30   Mar 31   Increase (decrease)  
    2012   2012   $     %  
    (dollars in thousands)        
Deposits, by type:                          
  Noninterest-bearing demand   $ 2,669,152   $ 2,565,089   $ 104,063     4.1 %
  Interest-bearing demand     2,484,730     2,464,452     20,278     0.8 %
  Savings deposits     3,292,620     3,341,035     (48,415 )   (1.4 %)
Total demand and savings     8,446,502     8,370,576     75,926     0.9 %
  Time deposits     3,791,362     3,951,908     (160,546 )   (4.1 %)
                           
  Total Deposits   $ 12,237,864   $ 12,322,484   $ (84,620 )   (0.7 %)

The decrease in average deposits in the second quarter of 2012 in comparison to the first quarter of 2012 was a result of a $160.5 million decrease in time deposits, partially offset by a $75.9 million increase in demand and saving accounts. The increase in average demand and savings accounts occurred in personal and business accounts, partially offset by a decrease in municipal account balances.

Non-interest Income 
Other income, excluding investment securities gains, increased $1.4 million, or 2.8 percent, in comparison to the first quarter of 2012, led by an increase in mortgage banking income of $1.1 million, or 10.9 percent, due to an increase in pricing spreads and an increase in the volume of new loan commitments. The Corporation also experienced increases in most fee income categories; with a $952,000 increase in other service charges and fees, a $525,000 increase in service charges on deposit accounts and a $445,000 increase in fees for investment management and trust services. These increases were partially offset by a $1.2 million decrease in gains on property sales.

Investment securities gains for the second quarter of 2012 were $1.5 million, compared to $1.3 million for the first quarter of 2012.

Non-interest Expense
Total other expenses increased $1.4 million, or 1.3 percent, in the second quarter of 2012 in comparison to the first quarter of 2012. During the second quarter of 2012, other expenses increased $2.4 million, or 15.0 percent, as a result of an increase in consulting services expense of $2.2 million. Partially offsetting this increase was a $1.3 million decrease in operating risk loss due to a decrease in reserves related to previously sold residential mortgages.

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  
    June 30     June 30     March 31     June 30   March 31  
    2012     2011     2012     2011   2012  
                                   
ASSETS                                  
                                   
  Cash and due from banks   $ 242,811     $ 284,691     $ 286,875     (14.7 %) (15.4 %)
  Loans held for sale     71,406       47,133       70,128     51.5 % 1.8 %
  Other interest-earning assets     118,468       124,967       106,227     (5.2 %) 11.5 %
  Investment securities     2,870,832       2,663,044       3,089,407     7.8 % (7.1 %)
  Loans, net of unearned income     11,982,833       11,852,491       11,957,600     1.1 % 0.2 %
  Allowance for loan losses     (235,737 )     (266,683 )     (256,496 )   (11.6 %) (8.1 %)
    Net Loans     11,747,096       11,585,808       11,701,104     1.4 % 0.4 %
  Premises and equipment     222,083       207,177       215,756     7.2 % 2.9 %
  Accrued interest receivable     48,283       51,387       51,247     (6.0 %) (5.8 %)
  Goodwill and intangible assets     542,622       545,909       543,383     (0.6 %) (0.1 %)
  Other assets     474,149       457,004       472,095     3.8 % 0.4 %
                                     
      Total Assets   $ 16,337,750     $ 15,967,120     $ 16,536,222     2.3 % (1.2 %)
                                   
LIABILITIES AND SHAREHOLDERS' EQUITY                                  
                                   
  Deposits   $ 12,232,484     $ 12,262,895     $ 12,340,722     (0.2 %) (0.9 %)
  Short-term borrowings     931,681       546,581       964,550     70.5 % (3.4 %)
  Federal Home Loan Bank advances and long-term debt     908,809       1,025,537       933,981     (11.4 %) (2.7 %)
  Other liabilities     223,592       178,798       274,106     25.1 % (18.4 %)
                                     
    Total Liabilities     14,296,566       14,013,811       14,513,359     2.0 % (1.5 %)
                                     
  Shareholders' equity     2,041,184       1,953,309       2,022,863     4.5 % 0.9 %
                                     
      Total Liabilities and Shareholders' Equity   $ 16,337,750     $ 15,967,120     $ 16,536,222     2.3 % (1.2 %)
                                   
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:                            
                                   
Loans, by type:                                  
  Real estate - commercial mortgage   $ 4,653,097     $ 4,443,025     $ 4,634,428     4.7 % 0.4 %
  Commercial - industrial, financial and agricultural     3,538,188       3,678,858       3,518,228     (3.8 %) 0.6 %
  Real estate - home equity     1,599,468       1,626,545       1,601,880     (1.7 %) (0.2 %)
  Real estate - residential mortgage     1,183,613       1,023,646       1,176,947     15.6 % 0.6 %
  Real estate - construction     619,060       681,588       647,700     (9.2 %) (4.4 %)
  Consumer     308,469       330,965       308,495     (6.8 %) - %
  Leasing and other     80,938       67,864       69,922     19.3 % 15.8 %
                                     
  Total Loans, net of unearned income   $ 11,982,833     $ 11,852,491     $ 11,957,600     1.1 % 0.2 %
                                   
Deposits, by type:                                  
  Noninterest-bearing demand   $ 2,748,269     $ 2,445,008     $ 2,682,259     12.4 % 2.5 %
  Interest-bearing demand     2,482,271       2,290,478       2,486,382     8.4 % (0.2 %)
  Savings deposits     3,267,299       3,252,200       3,295,510     0.5 % (0.9 %)
  Time deposits     3,734,645       4,275,209       3,876,571     (12.6 %) (3.7 %)
                                     
  Total Deposits   $ 12,232,484     $ 12,262,895     $ 12,340,722     (0.2 %) (0.9 %)
                                   
Short-term borrowings, by type:                                  
  Customer repurchase agreements   $ 204,526     $ 208,948     $ 204,627     (2.1 %) - %
  Customer short-term promissory notes     135,988       171,454       149,376     (20.7 %) (9.0 %)
  Federal funds purchased and other     591,167       166,179       610,547     255.7 % (3.2 %)
                                     
  Total Short-term borrowings   $ 931,681     $ 546,581     $ 964,550     70.5 % (3.4 %)
                                   
                                   
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands, except per-share data
                                       
    Quarter Ended     % Change from     Six Months Ended        
    June 30     June 30     Mar 31     June 30     Mar 31     June 30        
    2012     2011     2012     2011     2012     2012     2011     % Change  
                                                           
Interest Income:                                                          
  Interest income   $ 163,985     $ 174,935     $ 166,891     (6.3 %)   (1.7 %)   $ 330,876     $ 350,629     (5.6 %)
  Interest expense     26,455       34,290       28,196     (22.8 %)   (6.2 %)     54,651       70,421     (22.4 %)
                                                             
    Net Interest Income     137,530       140,645       138,695     (2.2 %)   (0.8 %)     276,225       280,208     (1.4 %)
  Provision for credit losses     25,500       36,000       28,000     (29.2 %)   (8.9 %)     53,500       74,000     (27.7 %)
                                                             
    Net Interest Income after Provision     112,030       104,645       110,695     7.1 %   1.2 %     222,725       206,208     8.0 %
                                                           
Other Income:                                                          
  Service charges on deposit accounts     15,367       14,332       14,842     7.2 %   3.5 %     30,209       27,637     9.3 %
  Other service charges and fees     11,507       12,709       10,555     (9.5 %)   9.0 %     22,062       24,191     (8.8 %)
  Mortgage banking income     11,143       6,049       10,050     84.2 %   10.9 %     21,193       11,512     84.1 %
  Investment management and trust services     9,822       9,638       9,377     1.9 %   4.7 %     19,199       18,842     1.9 %
  Investment securities gains (losses)     1,538       (335 )     1,251     N/M     22.9 %     2,789       1,950     43.0 %
  Other     3,987       3,386       5,605     17.7 %   (28.9 %)     9,592       7,108     34.9 %
                                                             
    Total Other Income     53,364       45,779       51,680     16.6 %   3.3 %     105,044       91,240     15.1 %
                                                           
Other Expenses:                                                          
  Salaries and employee benefits     60,091       56,070       60,360     7.2 %   (0.4 %)     120,451       110,378     9.1 %
  Net occupancy expense     11,205       10,874       10,935     3.0 %   2.5 %     22,140       22,240     (0.4 %)
  Data processing     3,759       3,214       3,688     17.0 %   1.9 %     7,447       6,586     13.1 %
  Equipment expense     3,185       3,377       3,369     (5.7 %)   (5.5 %)     6,554       6,509     0.7 %
  FDIC insurance expense     3,002       3,264       3,021     (8.0 %)   (0.6 %)     6,023       8,018     (24.9 %)
  Professional fees     2,984       3,102       2,582     (3.8 %)   15.6 %     5,566       5,951     (6.5 %)
  OREO and repossession expense     2,823       982       2,928     187.5 %   (3.6 %)     5,751       2,253     155.3 %
  Marketing     2,583       1,863       2,472     38.6 %   4.5 %     5,055       4,699     7.6 %
  Software     2,272       1,973       2,175     15.2 %   4.5 %     4,447       4,004     11.1 %
  Operating risk loss     2,055       (8 )     3,368     N/M     (39.0 %)     5,423       (470 )   N/M  
  Other     18,184       16,174       15,813     12.4 %   15.0 %     33,997       31,581     7.7 %
                                                             
    Total Other Expenses     112,143       100,885       110,711     11.2 %   1.3 %     222,854       201,749     10.5 %
                                                             
    Income Before Income Taxes     53,251       49,539       51,664     7.5 %   3.1 %     104,915       95,699     9.6 %
  Income tax expense     13,360       13,154       13,532     1.6 %   (1.3 %)     26,892       25,529     5.3 %
                                                             
    Net Income   $ 39,891     $ 36,385     $ 38,132     9.6 %   4.6 %   $ 78,023     $ 70,170     11.2 %
                                                           
                                                           
PER SHARE:                                                          
                                                           
  Net income:                                                          
    Basic   $ 0.20     $ 0.18     $ 0.19     11.1 %   5.3 %   $ 0.39     $ 0.35     11.4 %
    Diluted     0.20       0.18       0.19     11.1 %   5.3 %     0.39       0.35     11.4 %
                                                             
  Cash dividends   $ 0.07     $ 0.05     $ 0.07     40.0 %   -     $ 0.14     $ 0.09     55.6 %
  Shareholders' equity     10.16       9.80       10.10     3.7 %   0.6 %     10.16       9.80     3.7 %
  Shareholders' equity (tangible)     7.46       7.06       7.38     5.7 %   1.1 %     7.46       7.06     5.7 %
                                                             
  Weighted average shares (basic)     199,671       198,772       199,492     0.5 %   0.1 %     199,581       198,686     0.5 %
  Weighted average shares (diluted)     200,806       199,527       200,344     0.6 %   0.2 %     200,575       199,407     0.6 %
  Shares outstanding, end of period     200,880       199,370       200,354     0.8 %   0.3 %     200,880       199,370     0.8 %
                                                           
SELECTED FINANCIAL RATIOS:                                                          
                                                           
  Return on average assets     0.98 %     0.91 %     0.94 %                 0.96 %     0.88 %      
  Return on average common shareholders' equity     7.84 %     7.53 %     7.61 %                 7.72 %     7.38 %      
  Return on average common shareholders' equity (tangible)     10.80 %     10.71 %     10.56 %                 10.68 %     10.54 %      
  Net interest margin     3.78 %     3.95 %     3.85 %                 3.81 %     3.93 %      
  Efficiency ratio     57.55 %     52.27 %     56.84 %                 57.20 %     52.83 %      
 
N/M - Not meaningful        
 
 
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
       
    Quarter Ended  
    June 30, 2012     June 30, 2011     March 31, 2012  
    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   $ 11,965,704     $ 144,263     4.85 %   $ 11,883,019     $ 151,974     5.13 %   $ 11,978,972     $ 147,046     4.94 %
  Taxable investment securities     2,533,060       18,624     2.94 %     2,141,307       20,749     3.88 %     2,402,158       18,661     3.11 %
  Tax-exempt investment securities     283,736       3,992     5.63 %     343,214       4,840     5.64 %     294,724       4,157     5.64 %
  Equity securities     106,954       707     2.65 %     128,258       775     2.42 %     115,593       780     2.71 %
                                                                     
  Total Investment Securities     2,923,750       23,323     3.19 %     2,612,779       26,364     4.04 %     2,812,475       23,598     3.36 %
                                                                     
  Loans held for sale     55,813       538     3.85 %     36,793       492     5.34 %     40,478       431     4.26 %
  Other interest-earning assets     129,272       45     0.14 %     163,548       101     0.25 %     101,570       53     0.21 %
                                                                     
  Total Interest-earning Assets     15,074,539       168,169     4.48 %     14,696,139       178,931     4.88 %     14,933,495       171,128     4.61 %
                                                                   
Noninterest-earning assets:                                                                  
  Cash and due from banks     233,427                     278,393                     263,128                
  Premises and equipment     216,881                     207,141                     212,567                
  Other assets     1,093,673                     1,098,116                     1,102,868                
  Less: allowance for loan losses     (259,327 )                   (273,593 )                   (266,092 )              
                                                                     
  Total Assets   $ 16,359,193                   $ 16,006,196                   $ 16,245,966                
                                                                   
                                                                   
LIABILITIES AND SHAREHOLDERS' EQUITY                                                                  
                                                                   
Interest-bearing liabilities:                                                                  
  Demand deposits   $ 2,484,730     $ 1,025     0.17 %   $ 2,352,961     $ 1,371     0.23 %   $ 2,464,452     $ 1,036     0.17 %
  Savings deposits     3,292,620       1,510     0.18 %     3,356,361       3,258     0.39 %     3,341,035       1,810     0.22 %
  Time deposits     3,791,362       12,208     1.30 %     4,353,352       17,146     1.58 %     3,951,908       13,404     1.36 %
                                                                     
  Total Interest-bearing Deposits     9,568,712       14,743     0.62 %     10,062,674       21,775     0.87 %     9,757,395       16,250     0.67 %
                                                                     
  Short-term borrowings     961,900       411     0.17 %     455,831       168     0.15 %     728,102       281     0.15 %
  Federal Home Loan Bank advances and long-term debt     929,318       11,301     4.88 %     1,025,637       12,347     4.82 %     983,304       11,665     4.76 %
                                                                     
  Total Interest-bearing Liabilities     11,459,930       26,455     0.93 %     11,544,142       34,290     1.19 %     11,468,801       28,196     0.99 %
                                                                   
Noninterest-bearing liabilities:                                                                  
  Demand deposits     2,669,152                     2,362,614                     2,565,089                
  Other     183,794                     162,202                     195,465                
                                                                     
  Total Liabilities     14,312,876                     14,068,958                     14,229,355                
                                                                     
  Shareholders' equity     2,046,317                     1,937,238                     2,016,611                
                                                                     
  Total Liabilities and Shareholders' Equity   $ 16,359,193                   $ 16,006,196                   $ 16,245,966                
                                                                   
  Net interest income/net interest margin (fully taxable equivalent)       141,714     3.78 %             144,641     3.95 %             142,932     3.85 %
  Tax equivalent adjustment             (4,184 )                   (3,996 )                   (4,237 )      
                                                                     
  Net interest income           $ 137,530                   $ 140,645                   $ 138,695        
                                                                   
(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  
    June 30   June 30   March 31   June 30     March 31  
    2012   2011   2012   2011     2012  
                 
Loans, by type:                              
  Real estate - commercial mortgage   $ 4,634,436   $ 4,430,046   $ 4,617,507   4.6 %   0.4 %
  Commercial - industrial, financial and agricultural     3,529,947     3,689,877     3,585,520   (4.3 %)   (1.5 %)
  Real estate - home equity     1,599,702     1,623,438     1,611,565   (1.5 %)   (0.7 %)
  Real estate - residential mortgage     1,179,513     1,023,471     1,137,625   15.2 %   3.7 %
  Real estate - construction     640,282     712,638     641,574   (10.2 %)   (0.2 %)
  Consumer     307,071     332,960     311,592   (7.8 %)   (1.5 %)
  Leasing and other     74,753     70,589     73,589   5.9 %   1.6 %
                                 
  Total Loans, net of unearned income   $ 11,965,704   $ 11,883,019   $ 11,978,972   0.7 %   (0.1 %)
                               
Deposits, by type:                              
  Noninterest-bearing demand   $ 2,669,152   $ 2,362,614   $ 2,565,089   13.0 %   4.1 %
  Interest-bearing demand     2,484,730     2,352,961     2,464,452   5.6 %   0.8 %
  Savings deposits     3,292,620     3,356,361     3,341,035   (1.9 %)   (1.4 %)
  Time deposits     3,791,362     4,353,352     3,951,908   (12.9 %)   (4.1 %)
                                 
  Total Deposits   $ 12,237,864   $ 12,425,288   $ 12,322,484   (1.5 %)   (0.7 %)
                               
Short-term borrowings, by type:                              
  Customer repurchase agreements   $ 226,216   $ 217,657   $ 200,542   3.9 %   12.8 %
  Customer short-term promissory notes     146,307     171,958     155,071   (14.9 %)   (5.7 %)
  Federal funds purchased and other     589,377     66,216     372,489   790.1 %   58.2 %
                                 
  Total Short-term borrowings   $ 961,900   $ 455,831   $ 728,102   111.0 %   32.1 %

 

FULTON FINANCIAL CORPORATION  
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)  
dollars in thousands  
                 
    Six Months ended June 30  
    2012       2011    
    Average
Balance
 
Interest (1)
 
Yield/Rate
    Average
Balance
 
Interest (1)
 
Yield/Rate
 
ASSETS                                    
                                     
Interest-earning assets:                                    
  Loans, net of unearned income   $ 11,972,338   $ 291,309   4.89 %   $ 11,902,124   $ 303,660   5.14 %
  Taxable investment securities     2,467,609     37,285   3.02 %     2,235,789     42,556   3.81 %
  Tax-exempt investment securities     289,230     8,149   5.63 %     343,832     9,725   5.66 %
  Equity securities     111,274     1,487   2.68 %     130,537     1,527   2.35 %
                                       
  Total Investment Securities     2,868,113     46,921   3.27 %     2,710,158     53,808   3.97 %
                                       
  Loans held for sale     48,145     969   4.02 %     41,082     992   4.83 %
  Other interest-earning assets     115,421     98   0.17 %     115,233     134   0.23 %
                                       
  Total Interest-earning Assets     15,004,017     339,297   4.55 %     14,768,597     358,594   4.89 %
                                     
Noninterest-earning assets:                                    
  Cash and due from banks     248,278                 269,444            
  Premises and equipment     214,725                 207,263            
  Other assets     1,098,269                 1,100,319            
  Less: allowance for loan losses     (262,709 )               (277,782 )          
                                       
  Total Assets   $ 16,302,580               $ 16,067,841            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
                                     
Interest-bearing liabilities:                                    
  Demand deposits   $ 2,474,591   $ 2,061   0.17 %   $ 2,337,615   $ 2,807   0.24 %
  Savings deposits     3,316,827     3,320   0.20 %     3,319,778     6,616   0.40 %
  Time deposits     3,871,636     25,612   1.33 %     4,442,446     35,638   1.62 %
                                       
  Total Interest-bearing Deposits     9,663,054     30,993   0.64 %     10,099,839     45,061   0.90 %
                                       
  Short-term borrowings     845,001     692   0.16 %     538,786     422   0.16 %
  Federal Home Loan Bank advances and long-term debt     956,310     22,966   4.82 %     1,043,481     24,938   4.80 %
                                       
  Total Interest-bearing Liabilities     11,464,365     54,651   0.96 %     11,682,106     70,421   1.21 %
                                     
Noninterest-bearing liabilities:                                    
  Demand deposits     2,617,120                 2,300,750            
  Other     189,631                 166,541            
                                       
  Total Liabilities     14,271,116                 14,149,397            
                                       
  Shareholders' equity     2,031,464                 1,918,444            
                                       
  Total Liabilities and Shareholders' Equity   $ 16,302,580               $ 16,067,841            
                                     
  Net interest income/net interest margin (fully taxable equivalent)     284,646   3.81 %           288,173   3.93 %
  Tax equivalent adjustment           (8,421 )               (7,965 )    
                                       
  Net interest income         $ 276,225               $ 280,208      
                                     
(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:      
               
    Six Months Ended      
    June 30      
    2012   2011   % Change  
           
Loans, by type:                  
  Real estate - commercial mortgage   $ 4,625,969   $ 4,407,683   5.0 %
  Commercial - industrial, financial and agricultural     3,557,731     3,698,430   (3.8 %)
  Real estate - home equity     1,605,633     1,625,980   (1.3 %)
  Real estate - residential mortgage     1,158,569     1,020,471   13.5 %
  Real estate - construction     640,928     745,912   (14.1 %)
  Consumer     309,331     337,080   (8.2 %)
  Leasing and other     74,177     66,568   11.4 %
                     
  Total Loans, net of unearned income   $ 11,972,338   $ 11,902,124   0.6 %
                   
Deposits, by type:                  
  Noninterest-bearing demand   $ 2,617,120   $ 2,300,750   13.8 %
  Interest-bearing demand     2,474,591     2,337,615   5.9 %
  Savings deposits     3,316,827     3,319,778   (0.1 %)
  Time deposits     3,871,636     4,442,446   (12.8 %)
                     
  Total Deposits   $ 12,280,174   $ 12,400,589   (1.0 %)
                   
Short-term borrowings, by type:                  
  Customer repurchase agreements   $ 213,379   $ 215,307   (0.9 %)
  Customer short-term promissory notes     150,689     181,121   (16.8 %)
  Federal funds purchased and other     480,933     142,358   237.8 %
                     
  Total Short-term borrowings   $ 845,001   $ 538,786   56.8 %
   
   
FULTON FINANCIAL CORPORATION  
ASSET QUALITY INFORMATION (UNAUDITED)  
dollars in thousands  
   
    Quarter Ended     Six Months Ended  
    June 30     June 30     Mar 31     June 30  
    2012     2011     2012     2012     2011  
ALLOWANCE FOR CREDIT LOSSES:                                        
                                         
  Balance at beginning of period   $ 258,137     $ 271,156     $ 258,177     $ 258,177     $ 275,498  
                                           
  Loans charged off:                                        
    Real estate - commercial mortgage     (23,699 )     (7,074 )     (11,891 )     (35,590 )     (17,121 )
    Commercial - industrial, financial and agricultural     (13,017 )     (15,406 )     (5,669 )     (18,686 )     (28,742 )
    Real estate - construction     (8,442 )     (7,468 )     (8,571 )     (17,013 )     (21,362 )
    Real estate - home equity     (2,789 )     (1,650 )     (2,206 )     (4,995 )     (3,118 )
    Real estate - residential mortgage     (1,492 )     (7,707 )     (847 )     (2,339 )     (12,703 )
    Leasing and other     (630 )     (689 )     (441 )     (1,071 )     (1,186 )
    Consumer     (471 )     (681 )     (634 )     (1,105 )     (1,972 )
    Total loans charged off     (50,540 )     (40,675 )     (30,259 )     (80,799 )     (86,204 )
  Recoveries of loans charged off:                                        
    Real estate - commercial mortgage     1,153       191       816       1,969       1,726  
    Commercial - industrial, financial and agricultural     717       1,003       636       1,353       1,394  
    Real estate - construction     1,539       79       64       1,603       642  
    Real estate - home equity     278       2       20       298       3  
    Real estate - residential mortgage     71       190       73       144       234  
    Leasing and other     180       254       260       440       598  
    Consumer     281       433       350       631       742  
    Recoveries of loans previously charged off     4,219       2,152       2,219       6,438       5,339  
  Net loans charged off     (46,321 )     (38,523 )     (28,040 )     (74,361 )     (80,865 )
  Provision for credit losses     25,500       36,000       28,000       53,500       74,000  
                                           
  Balance at end of period   $ 237,316     $ 268,633     $ 258,137     $ 237,316     $ 268,633  
                                           
  Net charge-offs to average loans (annualized)     1.55 %     1.30 %     0.94 %     1.24 %     1.36 %
                                         
NON-PERFORMING ASSETS:                                        
                                         
  Non-accrual loans   $ 203,539     $ 274,973     $ 248,719                  
  Loans 90 days past due and accruing     30,434       35,869       35,270                  
    Total non-performing loans     233,973       310,842       283,989                  
  Other real estate owned     32,338       37,493       33,516                  
                                           
  Total non-performing assets   $ 266,311     $ 348,335     $ 317,505                  
                                         
NON-PERFORMING LOANS, BY TYPE:                                        
                 
  Real estate - commercial mortgage   $ 82,179     $ 102,724     $ 104,076                  
  Commercial - industrial, financial and agricultural     67,969       94,855       82,884                  
  Real estate - construction     43,124       58,381       59,917                  
  Real estate - residential mortgage     25,373       43,200       23,016                  
  Real estate - home equity     11,472       9,440       10,914                  
  Consumer     3,460       2,090       2,834                  
  Leasing     396       152       348                  
                                           
  Total non-performing loans   $ 233,973     $ 310,842     $ 283,989                  
                                       
                                       
DELINQUENCY RATES, BY TYPE:  
   
    June 30, 2012   June 30, 2011   March 31, 2012  
    31-89 Days   > / = 90 Days (1)   Total   31-89 Days   > / = 90 Days (1)   Total   31-89 Days   > / = 90 Days (1)   Total  
                                       
Real estate - commercial mortgage   0.41 % 1.78 % 2.19 % 0.57 % 2.32 % 2.89 % 0.43 % 2.24 % 2.67 %
Commercial - industrial, financial and agricultural   0.66 % 1.91 % 2.57 % 0.54 % 2.58 % 3.12 % 0.35 % 2.36 % 2.71 %
Real estate - construction   0.95 % 6.96 % 7.91 % 0.62 % 8.56 % 9.18 % 0.56 % 9.25 % 9.81 %
Real estate - residential mortgage   2.94 % 2.15 % 5.09 % 3.37 % 4.22 % 7.59 % 2.76 % 1.96 % 4.72 %
Real estate - home equity   0.83 % 0.71 % 1.54 % 0.74 % 0.58 % 1.32 % 0.74 % 0.68 % 1.42 %
Consumer, leasing and other   1.61 % 0.99 % 2.60 % 1.22 % 0.56 % 1.78 % 1.40 % 0.84 % 2.24 %
                                       
Total   0.86 % 1.95 % 2.81 % 0.85 % 2.63 % 3.48 % 0.71 % 2.38 % 3.09 %
                                       
(1) Includes non-accrual loans  
                   
                   
ASSET QUALITY RATIOS:  
    June 30     June 30     Mar 31  
    2012     2011     2012  
                   
Non-accrual loans to total loans   1.70 %   2.32 %   2.08 %
Non-performing assets to total loans and OREO   2.22 %   2.93 %   2.65 %
Non-performing assets to total assets   1.63 %   2.18 %   1.92 %
Allowance for credit losses to loans outstanding   1.98 %   2.27 %   2.16 %
Allowance for credit losses to non-performing loans   101.43 %   86.42 %   90.90 %
Non-performing assets to tangible common shareholders' equity and allowance for credit losses  
15.34
%  
20.78
%  
18.27
%

Contact Information

  • Media Contact:
    Laura J. Wakeley
    (717) 291-2616


    Investor Contact:
    David C. Hostetter
    (717) 291-2456