SOURCE: Fulton Financial Corporation

Fulton Financial Corporation

October 16, 2012 16:30 ET

Fulton Financial Reports Third Quarter Earnings of $0.21 per Share

LANCASTER, PA--(Marketwire - Oct 16, 2012) - Fulton Financial Corporation (NASDAQ: FULT)

  • Diluted earnings per share for the third quarter of 2012 was 21 cents, a 5.0 percent increase from both the second quarter of 2012 and the third quarter of 2011.
  • The provision for credit losses was $23.0 million for the third quarter of 2012, a $2.5 million, or 9.8 percent, decrease from the second quarter of 2012 and an $8.0 million, or 25.8 percent, decrease from the third quarter of 2011. Non-performing loans decreased $21.1 million, or 9.0 percent, in comparison to the second quarter of 2012, and $97.8 million, or 31.5 percent, in comparison to the third quarter of 2011.
  • Net interest income decreased $1.6 million, or 1.2 percent, in comparison to the second quarter of 2012. Net interest margin decreased 4 basis points to 3.74 percent.
  • The Corporation raised its dividend to shareholders by one cent, or 14.3 percent, to $0.08 per common share, for the third quarter of 2012.
  • Approximately 2.1 million shares were repurchased during the third quarter of 2012 under the previously announced share repurchase plan, with approximately 2.9 million shares remaining to be purchased under the plan. 

Fulton Financial Corporation (NASDAQ: FULT) reported net income of $41.6 million, or 21 cents per diluted share, for the third quarter ended September 30, 2012, compared to $39.9 million, or 20 cents per diluted share, for the second quarter of 2012. For the nine months ended September 30, 2012, net income was $119.6 million, or 60 cents per diluted share, a 9.1 percent increase in comparison to the 55 cents per diluted share earned for the same period in 2011.

"Our solid third quarter performance reflects continued improvement in overall asset quality and good core deposit growth, partly due to an increase in new small business customers," said R. Scott Smith, Jr., Chairman and CEO. "We were also pleased to see improvement in our return on average assets. Non-performing loans decreased significantly and we were able to further reduce the provision for credit losses. We continued to return capital to our shareholders directly through an increase in our quarterly cash dividend."

Asset Quality
Non-performing assets were $242.0 million, or 1.49 percent of total assets, at September 30, 2012, compared to $266.3 million, or 1.63 percent of total assets, at June 30, 2012 and $348.0 million, or 2.14 percent of total assets, at September 30, 2011. In comparison to the second quarter of 2012, non-performing loans decreased $21.1 million, or 9.0 percent, primarily due to decreases in non-performing commercial mortgages and construction loans, partially offset by an increase in non-performing commercial loans.

Annualized net charge-offs for the quarter ended September 30, 2012 were 0.84 percent of average total loans, compared to 1.55 percent for the quarter ended June 30, 2012 and 1.04 percent for the quarter ended September 30, 2011. The allowance for credit losses as a percentage of non-performing loans was 110.6 percent at September 30, 2012 in comparison to 101.4 percent at June 30, 2012 and 86.6 percent at September 30, 2011.

Net Interest Income and Margin
Net interest income for the third quarter of 2012 decreased $1.6 million, or 1.2 percent, from the second quarter of 2012. The decrease in net interest income was primarily due a decrease in average earning assets and the net interest margin, partially offset by the impact of one additional day in the third quarter. Net interest margin decreased 4 basis points, or 1.1 percent, from 3.78 percent in the second quarter of 2012 to 3.74 percent in the third quarter of 2012. Average interest-earning asset yields decreased 6 basis points, or 1.3 percent, while average interest-bearing costs decreased 3 basis points, or 3.2 percent.

Average Balance Sheet

Total average assets for the third quarter of 2012 were $16.2 billion, a decrease of $149.0 million, or 0.9 percent, from the second quarter of 2012, due primarily to a $135.6 million, or 4.6 percent, decrease in investment securities.

Average loans, net of unearned income, decreased $45.5 million, or 0.4 percent, in comparison to the second quarter of 2012.

           
    Quarter Ended      
            Increase (decrease)  
    Sep 30
2012
  Jun 30
2012
  $     %  
    (dollars in thousands)  
Loans, by type:                          
  Real estate - commercial mortgage   $ 4,603,388   $ 4,634,436   $ (31,048 )   (0.7 %)
  Commercial - industrial, financial and agricultural     3,529,733     3,529,947     (214 )   -  
  Real estate - home equity     1,597,230     1,599,702     (2,472 )   (0.2 %)
  Real estate - residential mortgage     1,200,752     1,179,513     21,239     1.8 %
  Real estate - construction     605,910     640,282     (34,372 )   (5.4 %)
  Consumer     304,235     307,071     (2,836 )   (0.9 %)
  Leasing and other     78,945     74,753     4,192     5.6 %
                             
  Total Loans, net of unearned income   $ 11,920,193   $ 11,965,704   $ (45,511 )   (0.4 %)
                           

Total average liabilities decreased $164.0 million, or 1.1 percent, from the second quarter of 2012, due primarily to a $373.3 million, or 38.8 percent, decrease in short-term borrowings, partially offset by a $228.2 million, or 1.9 percent, increase in average deposits.

                 
    Quarter Ended            
            Increase (decrease)  
    Sep 30
2012
  Jun 30
2012
  $     %  
    (dollars in thousands)        
Deposits, by type:                          
  Noninterest-bearing demand   $ 2,836,166   $ 2,669,152   $ 167,014     6.3 %
  Interest-bearing demand     2,608,202     2,484,730     123,472     5.0 %
  Savings deposits     3,364,109     3,292,620     71,489     2.2 %
Total demand and savings     8,808,477     8,446,502     361,975     4.3 %
  Time deposits     3,657,616     3,791,362     (133,746 )   (3.5 %)
                           
  Total Deposits   $ 12,466,093   $ 12,237,864   $ 228,229     1.9 %
                             

The increase in average deposits in the third quarter of 2012 in comparison to the second quarter of 2012 was a result of a $362.0 million increase in demand and saving accounts, partially offset by a $133.7 million decrease in time deposits. The increase in demand and savings accounts occurred primarily in business and municipal account balances.

Non-interest Income 
Non-interest income, excluding investment securities gains, increased $136,000, or 0.3 percent, in comparison to the second quarter of 2012. Mortgage banking income decreased $549,000, the net effect of a $2.5 million decrease in mortgage servicing income and a $1.9 million increase in gains on sales of loans. The decrease in mortgage servicing income was a result of an increase in the valuation allowance for mortgage servicing rights, while the increase in gains on sales of loans was a result of both an increase in pricing spreads and an increase in the volume of new loan commitments.

Non-interest Expense
Total non-interest expense decreased $2.1 million, or 1.9 percent, in the third quarter of 2012 in comparison to the second quarter of 2012. Salaries and employee benefits increased $2.1 million, or 3.4 percent, due to a combination of normal merit increases and an additional day in the third quarter of 2012 as compared to the second quarter of 2012. Other outside services increased $520,000, or 11.6 percent, mainly due to consulting expenses associated with risk management and compliance efforts. OREO and repossession expense decreased $727,000 primarily due to lower valuation reserves on repossessed assets. Operating risk loss decreased $651,000 due to a lower provision for potential losses on previously sold residential mortgages. Marketing expenses decreased $1.9 million, or 74.9 percent, due to significant expenses incurred in the second quarter for a specific promotional campaign. Other expenses decreased $2.0 million, or 14.5 percent, due primarily to a decrease in state taxes, as reserves for certain state tax positions were reversed due to the expiration of the statute of limitations as well as changes in the risk level of certain positions.

About Fulton Financial
Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company which has banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates: Fulton Bank, N.A., Lancaster, PA; Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Easton, PA; FNB Bank, N.A., Danville, PA; Fulton Bank of New Jersey, Mt. Laurel, NJ; and The Columbia Bank, Columbia, MD.

The Corporation's investment management and trust services are offered at all banks through Fulton Financial Advisors, a division of Fulton Bank, N.A. Residential mortgage lending is offered by all banks under the Fulton Mortgage Company brand.

Additional information on Fulton Financial Corporation is available on the Internet at www.fult.com.

Safe Harbor Statement
This news release may contain forward-looking statements with respect to the Corporation's financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends" and similar expressions which are intended to identify forward-looking statements.

These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, some of which are beyond the Corporation's control and ability to predict, that could cause actual results to differ materially from those expressed in the forward-looking statements. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

Many factors could affect future financial results including, without limitation: the impact of adverse changes in the economy and real estate markets; increases in non-performing assets which may reduce the level of earning assets and require the Corporation to increase the allowance for credit losses, charge-off loans and incur elevated collection and carrying costs related to such non-performing assets; acquisition and growth strategies; market risk; changes or adverse developments in political or regulatory conditions; a disruption in, or abnormal functioning of, credit and other markets, including the lack of or reduced access to markets for mortgages and other asset-backed securities and for commercial paper and other short-term borrowings; changes in the levels of, or methodology for determining, FDIC deposit insurance premiums and assessments; the effect of competition and interest rates on net interest margin and net interest income; investment strategy and other income growth; investment securities gains and losses; declines in the value of securities which may result in charges to earnings; changes in rates of deposit and loan growth or a decline in loans originated; relative balances of rate-sensitive assets to rate-sensitive liabilities; salaries and employee benefits and other expenses; amortization of intangible assets; goodwill impairment; capital and liquidity strategies, and other financial and business matters for future periods.

For a more complete discussion of certain risks and uncertainties affecting the Corporation, please see the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" set forth in the Corporation's filings with the Securities and Exchange Commission.

 
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
 
              % Change from  
  September 30   September 30   June 30   September 30   June 30  
  2012   2011   2012   2011   2012  
                           
ASSETS                          
  Cash and due from banks $ 217,207   $ 291,870   $ 242,811   (25.6 %) (10.5 %)
  Other interest-earning assets   202,305     256,360     118,468   (21.1 %) 70.8 %
  Loans held for sale   85,477     63,554     71,406   34.5 % 19.7 %
  Investment securities   2,790,138     2,776,557     2,870,832   0.5 % (2.8 %)
  Loans, net of unearned income   11,933,001     11,895,655     11,982,833   0.3 % (0.4 %)
  Allowance for loan losses   (233,864 )   (266,978 )   (235,737 ) (12.4 %) (0.8 %)
    Net Loans   11,699,137     11,628,677     11,747,096   0.6 % (0.4 %)
  Premises and equipment   225,771     206,170     222,083   9.5 % 1.7 %
  Accrued interest receivable   49,784     52,460     48,283   (5.1 %) 3.1 %
  Goodwill and intangible assets   541,845     545,098     542,622   (0.6 %) (0.1 %)
  Other assets   461,465     475,105     474,149   (2.9 %) (2.7 %)
      Total Assets $ 16,273,129   $ 16,295,851   $ 16,337,750   (0.1 %) (0.4 %)
                           
LIABILITIES AND SHAREHOLDERS' EQUITY                          
  Deposits $ 12,601,310   $ 12,637,624   $ 12,232,484   (0.3 %) 3.0 %
  Short-term borrowings   486,971     448,955     931,681   8.5 % (47.7 %)
  Other liabilities   215,542     199,108     223,592   8.3 % (3.6 %)
  Federal Home Loan Bank advances and long-term debt   908,623     1,025,505     908,809   (11.4 %) -  
    Total Liabilities   14,212,446     14,311,192     14,296,566   (0.7 %) (0.6 %)
  Shareholders' equity   2,060,683     1,984,659     2,041,184   3.8 % 1.0 %
      Total Liabilities and Shareholders' Equity $ 16,273,129   $ 16,295,851   $ 16,337,750   (0.1 %) (0.4 %)
                           
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:                      
Loans, by type:                          
  Real estate - commercial mortgage $ 4,632,509   $ 4,491,155   $ 4,653,097   3.1 % (0.4 %)
  Commercial - industrial, financial and agricultural   3,507,846     3,690,164     3,538,188   (4.9 %) (0.9 %)
  Real estate - home equity   1,603,456     1,630,880     1,599,468   (1.7 %) 0.2 %
  Real estate - residential mortgage   1,213,831     1,041,463     1,183,613   16.6 % 2.6 %
  Real estate - construction   597,358     648,398     619,060   (7.9 %) (3.5 %)
  Consumer   301,182     327,054     308,469   (7.9 %) (2.4 %)
  Leasing and other   76,819     66,541     80,938   15.4 % (5.1 %)
  Total Loans, net of unearned income $ 11,933,001   $ 11,895,655   $ 11,982,833   0.3 % (0.4 %)
                           
Deposits, by type:                          
  Noninterest-bearing demand $ 2,903,591   $ 2,535,744   $ 2,748,269   14.5 % 5.7 %
  Interest-bearing demand   2,702,710     2,517,124     2,482,271   7.4 % 8.9 %
  Savings deposits   3,416,011     3,434,398     3,267,299   (0.5 %) 4.6 %
  Time deposits   3,578,998     4,150,358     3,734,645   (13.8 %) (4.2 %)
  Total Deposits $ 12,601,310   $ 12,637,624   $ 12,232,484   (0.3 %) 3.0 %
                           
Short-term borrowings, by type:                          
  Customer repurchase agreements $ 192,082   $ 202,154   $ 204,526   (5.0 %) (6.1 %)
  Customer short-term promissory notes   124,628     170,839     135,988   (27.0 %) (8.4 %)
  Federal funds purchased and other   170,261     75,962     591,167   124.1 % (71.2 %)
  Total Short-term borrowings $ 486,971   $ 448,955   $ 931,681   8.5 % (47.7 %)
                           
                           
                           
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands, except per-share data
 
    Quarter Ended     % Change from     Nine Months Ended        
                                  Sep 30        
    Sep 30
2012
    Sep 30
2011
    Jun 30
2012
    Sep 30
2011
    Jun 30
2012
    2012     2011     % Change  
                                                           
Interest Income:                                                          
  Interest income   $ 161,060     $ 173,736     $ 163,985     (7.3 %)   (1.8 %)   $ 491,936     $ 524,365     (6.2 %)
  Interest expense     25,179       32,243       26,455     (21.9 %)   (4.8 %)     79,830       102,664     (22.2 %)
    Net Interest Income     135,881       141,493       137,530     (4.0 %)   (1.2 %)     412,106       421,701     (2.3 %)
  Provision for credit losses     23,000       31,000       25,500     (25.8 %)   (9.8 %)     76,500       105,000     (27.1 %)
    Net Interest Income after Provision     112,881       110,493       112,030     2.2 %   0.8 %     335,606       316,701     6.0 %
                                                           
Non-Interest Income:                                                          
  Service charges on deposit accounts     15,651       15,164       15,367     3.2 %   1.8 %     45,860       42,801     7.1 %
  Other service charges and fees     11,119       12,507       11,507     (11.1 %)   (3.4 %)     33,181       36,698     (9.6 %)
  Mortgage banking income     10,594       7,942       11,143     33.4 %   (4.9 %)     31,787       19,454     63.4 %
  Investment management and trust services     9,429       8,914       9,822     5.8 %   (4.0 %)     28,628       27,756     3.1 %
  Investment securities gains (losses)     42       (443 )     1,538     N/M     (97.3 %)     2,831       1,507     87.9 %
  Other     5,169       4,055       3,987     27.5 %   29.6 %     14,761       11,163     32.2 %
    Total Non-Interest Income     52,004       48,139       53,364     8.0 %   (2.5 %)     157,048       139,379     12.7 %
                                                           
Non-Interest Expenses:                                                          
  Salaries and employee benefits     62,161       58,948       60,091     5.5 %   3.4 %     182,612       169,326     7.8 %
  Net occupancy expense     11,161       10,790       11,205     3.4 %   (0.4 %)     33,301       33,030     0.8 %
  Other outside services     4,996       1,846       4,476     170.6 %   11.6 %     11,782       5,256     124.2 %
  Equipment expense     3,816       3,032       3,185     25.9 %   19.8 %     10,370       9,541     8.7 %
  Data processing     3,776       3,473       3,759     8.7 %   0.5 %     11,223       10,059     11.6 %
  FDIC insurance expense     3,029       3,732       3,002     (18.8 %)   0.9 %     9,052       11,750     (23.0 %)
  Professional fees     2,728       3,247       2,984     (16.0 %)   (8.6 %)     8,294       9,198     (9.8 %)
  Software     2,511       2,142       2,272     17.2 %   10.5 %     6,958       6,146     13.2 %
  OREO and repossession expense     2,096       2,548       2,823     (17.7 %)   (25.8 %)     7,847       4,801     63.4 %
  Operating risk loss     1,404       776       2,055     80.9 %   (31.7 %)     6,827       306     N/M  
  Marketing     648       1,923       2,583     (66.3 %)   (74.9 %)     5,703       6,622     (13.9 %)
  Other     11,717       13,410       13,708     (12.6 %)   (14.5 %)     38,928       41,581     (6.4 %)
    Total Non-Interest Expenses     110,043       105,867       112,143     3.9 %   (1.9 %)     332,897       307,616     8.2 %
    Income Before Income Taxes     54,842       52,765       53,251     3.9 %   3.0 %     159,757       148,464     7.6 %
  Income tax expense     13,260       13,441       13,360     (1.3 %)   (0.7 %)     40,152       38,970     3.0 %
    Net Income   $ 41,582     $ 39,324     $ 39,891     5.7 %   4.2 %   $ 119,605     $ 109,494     9.2 %
                                                           
                                                           
PER SHARE:                                                          
  Net income:                                                          
    Basic   $ 0.21     $ 0.20     $ 0.20     5.0 %   5.0 %   $ 0.60     $ 0.55     9.1 %
    Diluted     0.21       0.20       0.20     5.0 %   5.0 %     0.60       0.55     9.1 %
                                                             
  Cash dividends   $ 0.08     $ 0.05     $ 0.07     60.0 %   14.3 %   $ 0.22     $ 0.14     57.1 %
  Shareholders' equity     10.36       9.93       10.10     4.3 %   2.6 %     10.36       9.93     4.3 %
  Shareholders' equity (tangible)     7.63       7.20       7.38     6.0 %   3.4 %     7.63       7.20     6.0 %
                                                             
  Weighted average shares (basic)     198,956       199,028       199,671     -     (0.4 %)     199,371       198,801     0.3 %
  Weighted average shares (diluted)     199,808       199,814       200,806     -     (0.5 %)     200,321       199,544     0.4 %
  Shares outstanding, end of period     198,975       199,891       200,880     (0.5 %)   (0.9 %)     198,975       199,891     (0.5 %)
                                                           
SELECTED FINANCIAL RATIOS:                                                          
  Return on average assets     1.02 %     0.97 %     0.98 %                 0.98 %     0.91 %      
  Return on average common shareholders' equity     8.03 %     7.89 %     7.84 %                 7.83 %     7.55 %      
  Return on average common shareholders' equity (tangible)     11.02 %     11.06 %     10.80 %                 10.80 %     10.72 %      
  Net interest margin     3.74 %     3.93 %     3.78 %                 3.79 %     3.93 %      
  Efficiency ratio     56.91 %     54.06 %     57.55 %                 57.10 %     53.24 %      
                                                           
 
N/M - Not meaningful
 
 
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
       
    Quarter Ended  
    September 30, 2012     September 30, 2011     June 30, 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   $ 11,920,193     $ 143,211     4.78 %   $ 11,887,544     $ 151,816     5.07 %   $ 11,965,704     $ 144,263     4.85 %
  Taxable investment securities     2,392,043       16,658     2.78 %     2,142,670       20,166     3.76 %     2,533,060       18,624     2.94 %
  Tax-exempt investment securities     286,225       3,936     5.50 %     325,420       4,456     5.48 %     283,736       3,992     5.63 %
  Equity securities     109,884       820     2.98 %     124,893       777     2.48 %     106,954       707     2.65 %
  Total Investment Securities     2,788,152       21,414     3.07 %     2,592,983       25,399     3.92 %     2,923,750       23,323     3.19 %
                                                                     
  Loans held for sale     61,001       578     3.79 %     37,626       425     4.52 %     55,813       538     3.85 %
  Other interest-earning assets     147,432       35     0.09 %     218,135       91     0.17 %     129,272       45     0.14 %
  Total Interest-earning Assets     14,916,778       165,238     4.42 %     14,736,288       177,731     4.80 %     15,074,539       168,169     4.48 %
                                                                   
Noninterest-earning assets:                                                                  
  Cash and due from banks     221,946                     276,063                     233,427                
  Premises and equipment     222,544                     206,059                     216,881                
  Other assets     1,088,807                     1,107,107                     1,093,673                
  Less: allowance for loan losses     (239,931 )                   (274,436 )                   (259,327 )              
  Total Assets   $ 16,210,144                   $ 16,051,081                   $ 16,359,193                
                                                                   
                                                                   
LIABILITIES AND SHAREHOLDERS' EQUITY                                                                  
Interest-bearing liabilities:                                                                  
  Demand deposits   $ 2,608,202     $ 1,071     0.16 %   $ 2,424,646     $ 1,262     0.21 %   $ 2,484,730     $ 1,025     0.17 %
  Savings deposits     3,364,109       1,431     0.17 %     3,329,489       2,564     0.30 %     3,292,620       1,510     0.18 %
  Time deposits     3,657,616       11,346     1.23 %     4,224,001       15,858     1.49 %     3,791,362       12,208     1.30 %
  Total Interest-bearing Deposits     9,629,927       13,848     0.57 %     9,978,136       19,684     0.78 %     9,568,712       14,743     0.62 %
                                                                   
  Short-term borrowings     588,568       220     0.15 %     443,337       151     0.14 %     961,900       411     0.17 %
  Federal Home Loan Bank advances and long-term debt     908,767       11,111     4.88 %     1,025,546       12,408     4.84 %     929,318       11,301     4.88 %
  Total Interest-bearing Liabilities     11,127,262       25,179     0.90 %     11,447,019       32,243     1.12 %     11,459,930       26,455     0.93 %
Noninterest-bearing liabilities:                                                                  
  Demand deposits     2,836,166                     2,466,877                     2,669,152                
  Other     185,441                     159,430                     183,794                
  Total Liabilities     14,148,869                     14,073,326                     14,312,876                
  Shareholders' equity     2,061,275                     1,977,755                     2,046,317                
  Total Liabilities and Shareholders' Equity   $ 16,210,144                   $ 16,051,081                   $ 16,359,193                
                                                                   
  Net interest income/net interest margin (fully taxable equivalent)       140,059     3.74 %             145,488     3.93 %             141,714     3.78 %
  Tax equivalent adjustment                   (4,178 )                   (3,995 )                   (4,184 )      
                                                                           
  Net interest income                 $ 135,881                   $ 141,493                   $ 137,530        
                                                                   
   
(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.  
   
                       
                       
                       
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:  
                       
  Quarter Ended   % Change from  
  September 30   September 30   June 30   September 30     June 30  
  2012   2011   2012   2011     2012  
                 
Loans, by type:                            
  Real estate - commercial mortgage $ 4,603,388   $ 4,461,646   $ 4,634,436   3.2 %   (0.7 %)
  Commercial - industrial, financial and agricultural   3,529,733     3,691,516     3,529,947   (4.4 %)   -  
  Real estate - home equity   1,597,230     1,628,822     1,599,702   (1.9 %)   (0.2 %)
  Real estate - residential mortgage   1,200,752     1,037,968     1,179,513   15.7 %   1.8 %
  Real estate - construction   605,910     668,464     640,282   (9.4 %)   (5.4 %)
  Consumer   304,235     329,619     307,071   (7.7 %)   (0.9 %)
  Leasing and other   78,945     69,509     74,753   13.6 %   5.6 %
                               
  Total Loans, net of unearned income $ 11,920,193   $ 11,887,544   $ 11,965,704   0.3 %   (0.4 %)
                             
Deposits, by type:                            
  Noninterest-bearing demand $ 2,836,166   $ 2,466,877   $ 2,669,152   15.0 %   6.3 %
  Interest-bearing demand   2,608,202     2,424,646     2,484,730   7.6 %   5.0 %
  Savings deposits   3,364,109     3,329,489     3,292,620   1.0 %   2.2 %
  Time deposits   3,657,616     4,224,001     3,791,362   (13.4 %)   (3.5 %)
                             
  Total Deposits $ 12,466,093   $ 12,445,013   $ 12,237,864   0.2 %   1.9 %
                             
Short-term borrowings, by type:                            
  Customer repurchase agreements $ 210,830   $ 206,824   $ 226,216   1.9 %   (6.8 %)
  Customer short-term promissory notes   127,479     170,790     146,307   (25.4 %)   (12.9 %)
  Federal funds purchased and other   250,259     65,723     589,377   280.8 %   (57.5 %)
                             
  Total Short-term borrowings $ 588,568   $ 443,337   $ 961,900   32.8 %   (38.8 %)
                               
                               
                               
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
 
    Nine Months ended September 30  
    2012         2011        
    Average
Balance
  Interest (1)     Yield/Rate     Average
Balance
  Interest (1)     Yield/Rate  
ASSETS                                        
Interest-earning assets:                                        
  Loans, net of unearned income   $ 11,954,830   $ 434,520     4.86 %   $ 11,897,211   $ 455,476     5.12 %
  Taxable investment securities     2,442,237     53,943     2.95 %     2,204,409     62,722     3.79 %
  Tax-exempt investment securities     288,221     12,085     5.59 %     337,627     14,181     5.60 %
  Equity securities     110,807     2,307     2.78 %     128,635     2,304     2.39 %
  Total Investment Securities     2,841,265     68,335     3.21 %     2,670,671     79,207     3.96 %
                                         
  Loans held for sale     52,462     1,547     3.93 %     39,917     1,417     4.73 %
  Other interest-earning assets     126,169     133     0.14 %     149,910     225     0.20 %
  Total Interest-earning Assets     14,974,726     504,535     4.50 %     14,757,709     536,325     4.86 %
                                         
Noninterest-earning assets:                                        
  Cash and due from banks     239,436                   271,674              
  Premises and equipment     217,351                   206,856              
  Other assets     1,095,091                   1,102,608              
  Less: allowance for loan losses     (255,061 )                 (276,654 )            
  Total Assets   $ 16,271,543                 $ 16,062,193              
                                         
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Interest-bearing liabilities:                                        
  Demand deposits   $ 2,519,454   $ 3,132     0.17 %   $ 2,366,944   $ 4,069     0.23 %
  Savings deposits     3,332,704     4,751     0.19 %     3,323,050     9,180     0.37 %
  Time deposits     3,799,774     36,958     1.30 %     4,368,831     51,496     1.58 %
  Total Interest-bearing Deposits     9,651,932     44,841     0.62 %     10,058,825     64,745     0.86 %
                                           
  Short-term borrowings     758,899     912     0.16 %     506,620     573     0.15 %
  Federal Home Loan Bank advances and long-term debt     940,348     34,077     4.84 %     1,037,437     37,346     4.81 %
  Total Interest-bearing Liabilities     11,351,179     79,830     0.94 %     11,602,882     102,664     1.18 %
                                         
Noninterest-bearing liabilities:                                        
  Demand deposits     2,690,668                   2,356,735              
  Other     188,222                   164,144              
  Total Liabilities     14,230,069                   14,123,761              
  Shareholders' equity     2,041,474                   1,938,432              
  Total Liabilities and Shareholders' Equity   $ 16,271,543                 $ 16,062,193              
                                         
  Net interest income/net interest margin (fully taxable equivalent)       424,705     3.79 %           433,661     3.93 %
  Tax equivalent adjustment           (12,599 )                 (11,960 )      
  Net interest income         $ 412,106                 $ 421,701        
                                         
(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.
   
               
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:  
               
    Nine Months Ended      
    September 30      
    2012   2011   % Change  
             
Loans, by type:                  
  Real estate - commercial mortgage   $ 4,618,389   $ 4,425,867   4.3 %
  Commercial - industrial, financial and agricultural     3,548,332     3,696,101   (4.0 %)
  Real estate - home equity     1,602,812     1,626,937   (1.5 %)
  Real estate - residential mortgage     1,172,732     1,026,367   14.3 %
  Real estate - construction     629,170     719,812   (12.6 %)
  Consumer     307,619     334,565   (8.1 %)
  Leasing and other     75,776     67,562   12.2 %
                     
  Total Loans, net of unearned income   $ 11,954,830   $ 11,897,211   0.5 %
                   
Deposits, by type:                  
  Noninterest-bearing demand   $ 2,690,668   $ 2,356,735   14.2 %
  Interest-bearing demand     2,519,454     2,366,944   6.4 %
  Savings deposits     3,332,704     3,323,050   0.3 %
  Time deposits     3,799,774     4,368,831   (13.0 %)
                     
  Total Deposits   $ 12,342,600   $ 12,415,560   (0.6 %)
                   
Short-term borrowings, by type:                  
  Customer repurchase agreements   $ 212,523   $ 212,449   -  
  Customer short-term promissory notes     142,896     177,639   (19.6 %)
  Federal funds purchased and other     403,480     116,532   246.2 %
                     
  Total Short-term borrowings   $ 758,899   $ 506,620   49.8 %
                     
                     
                     
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
 
    Quarter Ended        
                      Nine Months Ended
September 30
 
    Sep 30
2012
    Sep 30
2011
    Jun 30
2012
    2012     2011  
ALLOWANCE FOR CREDIT LOSSES:                                        
  Balance at beginning of period   $ 237,316     $ 268,633     $ 258,137     $ 258,177     $ 275,498  
                                           
  Loans charged off:                                        
    Commercial - industrial, financial and agricultural     (10,471 )     (14,840 )     (13,017 )     (29,157 )     (43,582 )
    Real estate - construction     (8,364 )     (8,535 )     (8,442 )     (25,377 )     (29,897 )
    Real estate - commercial mortgage     (7,463 )     (5,730 )     (23,699 )     (43,053 )     (22,851 )
    Real estate - home equity     (1,688 )     (1,158 )     (2,789 )     (6,683 )     (4,276 )
    Consumer     (685 )     (634 )     (471 )     (1,790 )     (2,606 )
    Real estate - residential mortgage     (670 )     (1,514 )     (1,492 )     (3,009 )     (14,217 )
    Leasing and other     (625 )     (486 )     (630 )     (1,696 )     (1,672 )
    Total loans charged off     (29,966 )     (32,897 )     (50,540 )     (110,765 )     (119,101 )
  Recoveries of loans charged off:                                        
    Commercial - industrial, financial and agricultural     1,693       695       717       3,046       2,089  
    Real estate - construction     1,040       595       1,539       2,643       1,237  
    Real estate - commercial mortgage     1,317       249       1,153       3,286       1,975  
    Real estate - home equity     343       23       278       641       26  
    Consumer     202       291       281       833       1,033  
    Real estate - residential mortgage     25       36       71       169       270  
    Leasing and other     298       192       180       738       790  
    Recoveries of loans previously charged off     4,918       2,081       4,219       11,356       7,420  
  Net loans charged off     (25,048 )     (30,816 )     (46,321 )     (99,409 )     (111,681 )
  Provision for credit losses     23,000       31,000       25,500       76,500       105,000  
  Balance at end of period   $ 235,268     $ 268,817     $ 237,316     $ 235,268     $ 268,817  
  Net charge-offs to average loans (annualized)     0.84 %     1.04 %     1.55 %     1.11 %     1.25 %
                                         
NON-PERFORMING ASSETS:                                        
  Non-accrual loans   $ 185,791     $ 269,176     $ 203,539                  
  Loans 90 days past due and accruing     27,035       41,427       30,434                  
    Total non-performing loans     212,826       310,603       233,973                  
  Other real estate owned     29,217       37,399       32,338                  
  Total non-performing assets   $ 242,043     $ 348,002     $ 266,311                  
                                         
NON-PERFORMING LOANS, BY TYPE:                                        
  Commercial - industrial, financial and agricultural   $ 73,879     $ 92,385     $ 67,969                  
  Real estate - commercial mortgage     64,609       102,928       82,179                  
  Real estate - construction     32,742       52,381       43,124                  
  Real estate - residential mortgage     24,910       48,086       25,373                  
  Real estate - home equity     12,644       12,097       11,472                  
  Consumer     3,942       2,614       3,460                  
  Leasing     100       112       396                  
  Total non-performing loans   $ 212,826     $ 310,603     $ 233,973                  
                                         
                                     
                                     
DELINQUENCY RATES, BY TYPE:                                    
  September 30, 2012   September 30, 2011   June 30, 2012  
  31-89 Days   > / =
90 Days
(1)
  Total   31-89 Days   > / =
90 Days
(1)
  Total   31-89 Days   > / = 
90 Days
(1)
  Total  
                                     
  Real estate - commercial mortgage 0.46 % 1.39 % 1.85 % 0.84 % 2.29 % 3.13 % 0.41 % 1.78 % 2.19 %
  Commercial - industrial, financial and agricultural 0.45 % 2.11 % 2.56 % 0.57 % 2.50 % 3.07 % 0.66 % 1.91 % 2.57 %
  Real estate - construction 0.95 % 5.48 % 6.43 % 1.28 % 8.08 % 9.36 % 0.95 % 6.96 % 7.91 %
  Real estate - residential mortgage 2.66 % 2.05 % 4.71 % 3.02 % 4.62 % 7.64 % 2.94 % 2.15 % 5.09 %
  Real estate - home equity 0.85 % 0.78 % 1.63 % 0.74 % 0.74 % 1.48 % 0.83 % 0.71 % 1.54 %
  Consumer, leasing and other 1.85 % 1.07 % 2.92 % 1.71 % 0.69 % 2.40 % 1.61 % 0.99 % 2.60 %
                                       
  Total 0.80 % 1.78 % 2.58 % 0.99 % 2.61 % 3.60 % 0.86 % 1.95 % 2.81 %
                                     
 (1) Includes non-accrual loans
 
 
                   
                   
ASSET QUALITY RATIOS:                  
    Sep 30     Sep 30     Jun 30  
    2012     2011     2012  
                   
Non-accrual loans to total loans   1.56 %   2.26 %   1.70 %
Non-performing assets to total loans and OREO   2.02 %   2.92 %   2.22 %
Non-performing assets to total assets   1.49 %   2.14 %   1.63 %
Allowance for credit losses to loans outstanding   1.97 %   2.26 %   1.98 %
Allowance for credit losses to non-performing loans   110.54 %   86.55 %   101.43 %
Non-performing assets to tangible common shareholders' equity and allowance for credit losses   13.80 %   20.37 %   15.34 %
                   
                   

Contact Information

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


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