2009-10-20 22:39:02 -
LANCASTER, PA -- (Marketwire) -- 10/20/09 -- Fulton Financial Corporation (NASDAQ: FULT) reported net income available to common shareholders of $18.3 million for the quarter ended September 30, 2009, a 37.1 percent decrease from the same period in 2008. Diluted net income per share for the quarter was 10 cents, a 41.2 percent decrease from the same period in 2008. Diluted net income per share for the quarter increased 100.0 percent from the 5 cents reported in the second quarter of 2009.
Net income available to common shareholders was $34.4 million for the nine months ended September 30, 2009, a 64.2 percent decrease from the same period in 2008. Diluted net income per share for the nine months ended September 30, 2009 was 20 cents, a 63.6 percent decrease from the 55 cents reported in 2008. Total assets at September 30, 2009 were $16.5 billion.
"While the past year has been extremely challenging for us, the quarter just completed showed slowing in the rate of credit deterioration within our loan portfolio and, as a result, we were able to decrease the provision from the second quarter," said R. Scott Smith, Jr., chairman and chief executive officer. "A shift in our deposit mix as a result of strong core checking and savings deposit growth along with lower re-pricing of maturing certificates of deposit accounted for the improvement in our net interest margin. While most non-interest income categories showed increases, our total other income was impacted by a slowdown in the high level of mortgage refinancing activity and subsequent sale gains that we saw earlier in the year. Expenses remain well controlled."
Loans, net of unearned income, increased $144.7 million, or 1.2 percent, to $12.0 billion at September 30, 2009, compared to $11.8 billion at September 30, 2008. The increase was primarily due to a $312.9 million, or 8.1 percent, increase in commercial mortgages and a $165.4 million, or 4.7 percent, increase in commercial loans. These increases were partially offset by a $278.9 million, or 21.3 percent, decrease in construction loans and a $42.7 million, or 4.4 percent, decrease in residential mortgages. In comparison to the second quarter of 2009, loans, net of unearned income, increased $101.4 million, or 0.9 percent, mainly due to a $105.8 million, or 2.9 percent, increase in commercial loans and a $65.4 million, or 1.6 percent, increase in commercial mortgages, offset by a $67.0 million, or 6.1 percent, decrease in construction loans.
Non-performing assets were $300.9 million, or 1.82 percent of total assets, at September 30, 2009, compared to $186.4 million, or 1.15 percent, at September 30, 2008 and $292.2 million, or 1.73 percent, at June 30, 2009.
The $114.5 million, or 61.5 percent, increase in non-performing assets since September 30, 2008 was primarily due to a $47.4 million, or 82.4 percent, increase in non-performing construction loans, a $22.3 million, or 68.3 percent, increase in non-performing commercial mortgages, a $21.7 million, or 52.4 percent, increase in non-performing commercial loans and a $19.9 million, or 75.8 percent, increase in non-performing residential mortgage and home equity loans.
Annualized net charge-offs for the quarter ended September 30, 2009 were 0.81 percent of average total loans, compared to 0.38 percent for the quarter ended September 30, 2008 and 0.97 percent for the quarter ended June 30, 2009. The increase in charge-offs was primarily in construction loans and commercial loans. For the nine months ended September 30, 2009, annualized net charge-offs were 0.93 percent of average total loans, compared to 0.29 percent for the same period in 2008. The provision for loan losses increased $18.3 million, or 68.5 percent, for the third quarter of 2009 as compared to the same period in 2008, and decreased $5.0 million, or 10.0 percent, in comparison to the second quarter of 2009. For the nine months ended September 30, 2009, the provision for loan losses was $145.0 million, a 165.4 percent increase from the $54.6 million recorded during the nine months ended September 30, 2008. The increase in the provision for loan losses in comparison to the three and nine months ended September 30, 2008 was due to the increase in the level of non-performing assets and net charge-offs, which required additional increases to the allowance for credit losses.
Total deposits increased $2.1 billion, or 21.3 percent, to $12.0 billion at September 30, 2009 compared to $9.9 billion at September 30, 2008. The increase was due to a $1.1 billion, or 24.6 percent, increase in time deposits and a $1.0 billion, or 18.7 percent, increase in demand and savings deposits. In comparison to the second quarter of 2009, total deposits increased $316.4 million, or 2.7 percent, due to a $414.6 million, or 6.7 percent, increase in demand and savings deposits, offset by a $98.2 million, or 1.8 percent, decrease in time deposits.
Net interest income for the third quarter of 2009 decreased $1.2 million, or 0.9 percent, compared to the same period in 2008 and increased $4.9 million, or 3.8 percent, from the second quarter of 2009. The Corporation's net interest margin was 3.55 percent for the third quarter of 2009, 3.77 percent for the third quarter of 2008 and 3.43 percent for second quarter of 2009.
Other income, excluding investment securities gains (losses), increased $909,000, or 2.3 percent, in the third quarter of 2009 compared to the same period in 2008. The increase was due to a $512,000 increase in gains on sales of mortgage loans and an increase in servicing fees on mortgage loans sold with servicing retained, due to increased volumes of loans sold. These increases were offset by an $856,000 decrease in service charges on deposit accounts, primarily in cash management fees. Compared to the second quarter of 2009, other income, excluding investment securities gains (losses), decreased $4.1 million, or 9.0 percent, primarily due to a decrease in gains on sales of mortgage loans.
Investment securities losses in the third quarter of 2009 were $45,000 compared to losses of $9.5 million in the third quarter of 2008. Investment securities losses in the third quarter of 2009 included $2.8 million of net gains on the sale of debt and equity securities, offset by $1.8 million of other-than-temporary impairment charges related to debt securities issued by financial institutions and $949,000 of other-than-temporary impairment charges related to bank stocks. During the third quarter of 2008, the Corporation recorded $7.8 million of other-than-temporary impairment charges related to debt securities issued by financial institutions and $2.0 million of other-than-temporary impairment charges related to bank stocks.
Other expenses increased $455,000, or 0.5 percent, in the third quarter of 2009 compared to the same period in 2008. The increase was primarily due to $4.1 million increase in Federal Deposit Insurance Corporation (FDIC) insurance expense, partially offset by a decrease of $3.1 million in operating risk loss. During the third quarter of 2008, the Corporation recorded $2.7 million of charges, as a component of operating risk loss, related to its decision to purchase illiquid auction rate securities previously sold to customers of the Corporation's investment management and trust subsidiary, Fulton Financial Advisors, N.A. (FFA). During the second quarter of 2009, the Corporation purchased all outstanding auction rate securities held by FFA's customers. In comparison to the second quarter of 2009, other expenses decreased $8.0 million, or 7.4 percent. The decrease was primarily due to a $7.7 million special FDIC assessment recorded in the second quarter of 2009.
Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company which has nearly 3,900 employees and operates more than 270 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; Delaware National Bank, Georgetown, DE; The Bank, Woodbury, NJ; Skylands Community Bank, Hackettstown, NJ and The Columbia Bank, Columbia, MD.
The Corporation's financial services affiliates include: Fulton Financial Advisors, N.A., Lancaster, PA; Fulton Insurance Services Group, Inc., Lancaster, PA; and Dearden, Maguire, Weaver and Barrett, LLC, West Conshohocken, PA. Residential mortgage lending is offered by all banks through Fulton Mortgage Company.
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 our financial condition, results of operations and business.
Forward-looking statements are encouraged by the Private Securities Litigation Reform Act of 1995. When words such as "believes," "expects,"
"anticipates," "intends," "forecasts," "projects," "will" and similar words and expressions are used in its press releases, the Corporation is making forward-looking statements.
Such forward-looking statements reflect the Corporation's current views and expectations based largely on information currently available to its management, and on its current expectations, assumptions, plan, estimates, judgments, and projections about its business and its industry, and they involve inherent risks, contingencies, uncertainties and other factors.
Although the Corporation believes that these forward-looking statements are based on reasonable estimates and assumptions, the Corporation is unable to provide any assurance that its expectations will, in fact, occur or that its estimates or assumptions will be correct and actual results could differ materially from those expressed or implied by such forward-looking statements and such statements are not guarantees of future performance.
The Corporation undertakes no obligation to update or revise any forward-looking statements. Accordingly, investors and others are cautioned not to place undue reliance on such forward-looking statements.
Many factors could affect future financial results including, without limitation, acquisition and growth strategies; market risk; changes or adverse developments in economic, political or regulatory conditions; a continuation or worsening of the current disruption in credit and other markets, including the lack of or reduced access to, and the abnormal functioning of, markets for mortgage and other asset-backed securities and for commercial paper and other short-term borrowings; changes in the levels of FDIC deposit insurance premiums and assessments; the effect of competition and interest rates on net interest margin and net interest income; investment strategy and 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; asset quality and the impact on assets from adverse changes in the economy and in credit and other markets and resulting effects on credit risk and asset values; balances of risk-sensitive assets to risk-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.
2009
FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
dollars in thousands, except per-share data
September 30
------------------------
BALANCE %
SHEET 2009 2008 Change
DATA ----------- ----------- -------
Total
assets $16,526,709 $16,136,145 2.4%
Loans,
net of
unearned
income 11,968,246 11,823,529 1.2%
Invest-
ment
secur-
ities 3,274,399 2,806,535 16.7%
Deposits 12,032,680 9,916,555 21.3%
Share-
holders'
equity 1,923,763 1,603,910 19.9%
Quarter Ended Nine Months Ended
September 30 September 30
------------------------ --------------------
INCOME 2009 2008 % Change 2009 2008 % Change
SUMMARY ----------- ----------- -------- --------- --------- --------
Interest
income $ 197,861 $ 213,809 (7.5%) $ 591,525 $ 658,421 (10.2%)
Interest
expense (65,060) (79,791) (18.5%) (206,664) (266,614) (22.5%)
----------- ----------- --------- ---------
Net
interest
income 132,801 134,018 (0.9%) 384,861 391,807 (1.8%)
Provision
for loan
losses (45,000) (26,700) 68.5% (145,000) (54,626) 165.4%
Investment
securities
gains
(losses) (45) (9,501) 99.5% 2,951 (29,902) N/M
Gain on
sale of
credit
card
portfolio - - - - 13,910 (100.0%)
Other
income 41,225 40,316 2.3% 130,520 116,637 11.9%
Other
expenses (99,810) (99,355) 0.5% (313,988) (305,751) 2.7%
----------- ----------- --------- ---------
Income
before
income
taxes 29,171 38,778 (24.8%) 59,344 132,075 (55.1%)
Income
tax
expense (5,825) (9,702) (40.0%) (9,802) (35,825) (72.6%)
----------- ----------- --------- ---------
Net
income 23,346 29,076 (19.7%) $ 49,542 $ 96,250 (48.5%)
Preferred
stock
dividends
and
discount
accretion (5,046) - N/A (15,123) - N/A
----------- ----------- --------- ---------
Net
income
available
to
common
share-
holders$ 18,300 $ 29,076 (37.1%) $ 34,419 $ 96,250 (64.2%)
=========== =========== ========= =========
PER
COMMON
SHARE:
Net
income:
Basic $ 0.10 $ 0.17 (41.2%) $ 0.20 $ 0.55 (63.6%)
Diluted 0.10 0.17 (41.2%) 0.20 0.55 (63.6%)
Cash
dividends 0.03 0.15 (80.0%) 0.09 0.45 (80.0%)
Shareholders'
equity 8.82 9.18 (3.9%) 8.82 9.18 (3.9%)
Shareholders'
equity
(tangible) 5.68 5.46 4.0% 5.68 5.46 4.0%
SELECTED
FINANCIAL
RATIOS:
Return
on
average
assets 0.56% 0.73% 0.40% 0.81%
Return
on
average
common
shareholders'
equity 4.78% 7.25% 3.06% 8.02%
Return
on
average
common
shareholders'
equity
(tangible) 7.91% 12.72% 5.24% 14.00%
Net
interest
margin 3.55% 3.77% 3.48% 3.71%
Efficiency
ratio 55.33% 54.74% 58.76% 56.22%
Tangible
common
equity
to
tangible
assets 6.26% 6.16% 6.26% 6.16%
Non-performing
assets
to
total
assets 1.82% 1.15% 1.82% 1.15%
N/A - Not applicable
N/M - Not meaningful
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
% Change from
------------------------
September 30 September 30 June 30 September 30 June 30
2009 2008 2009 2008 2009
------------ ------------ ----------- ------------ -----------
ASSETS
Cash and
due from
banks $ 252,004 $ 315,841 $ 299,818 (20.2%) (15.9%)
Loans held
for sale 84,766 71,090 242,439 19.2% (65.0%)
Other
interest-
earning
assets 24,048 50,189 25,890 (52.1%) (7.1%)
Investment
securities 3,274,399 2,806,535 3,335,403 16.7% (1.8%)
Loans, net
of unearned
income 11,968,246 11,823,529 11,866,818 1.2% 0.9%
Allowance
for loan
losses (234,511) (136,988) (214,170) 71.2% 9.5%
------------ ------------ -----------
Net
Loans 11,733,735 11,686,541 11,652,648 0.4% 0.7%
Premises
and
equipment 204,520 199,464 205,074 2.5% (0.3%)
Accrued
interest
receivable 60,433 62,018 58,077 (2.6%) 4.1%
Goodwill
and
intangible
assets 554,041 649,635 555,272 (14.7%) (0.2%)
Other
assets 338,763 294,832 501,231 14.9% (32.4%)
------------ ------------ -----------
Total
Assets $ 16,526,709 $ 16,136,145 $16,875,852 2.4% (2.1%)
============ ============ ===========
LIABILITIES
AND
SHAREHOLDERS'
EQUITY
Deposits $ 12,032,680 $ 9,916,555 $11,716,297 21.3% 2.7%
Short-term
borrowings 722,618 2,589,966 1,317,293 (72.1%) (45.1%)
Federal
Home Loan
Bank
advances
and
long-term
debt 1,650,870 1,819,889 1,750,967 (9.3%) (5.7%)
Other
liabilities 196,778 205,825 218,367 (4.4%) (9.9%)
------------ ------------ -----------
Total
Liabil-
ities 14,602,946 14,532,235 15,002,924 0.5% (2.7%)
Preferred
stock 369,950 - 369,610 N/A 0.1%
Common
shareholders'
equity 1,553,813 1,603,910 1,503,318 (3.1%) 3.4%
------------ ------------ -----------
Total
Share-
holders'
Equity 1,923,763 1,603,910 1,872,928 19.9% 2.7%
------------ ------------ -----------
Total
Liabil-
ities
and
Share-
holders'
Equi-
ty $ 16,526,709 $ 16,136,145 $16,875,852 2.4% (2.1%)
============ ============ ===========
LOANS,
DEPOSITS
AND
SHORT-TERM
BORROWINGS
DETAIL:
Loans, by
type:
Real
estate -
commercial
mortgage $ 4,186,654 $ 3,873,802 $ 4,121,208 8.1% 1.6%
Commercial -
industrial,
financial
and
agricultural 3,719,966 3,554,615 3,614,144 4.7% 2.9%
Real
estate -
home
equity 1,651,711 1,647,063 1,653,461 0.3% (0.1%)
Real
estate -
construction 1,029,079 1,308,008 1,096,047 (21.3%) (6.1%)
Real
estate -
residential
mortgage 930,207 972,930 925,270 (4.4%) 0.5%
Consumer 375,685 388,032 371,492 (3.2%) 1.1%
Leasing
and other 74,944 79,079 85,196 (5.2%) (12.0%)
------------ ------------ -----------
Total
Loans,
net of
unearned
income $ 11,968,246 $ 11,823,529 $11,866,818 1.2% 0.9%
============ ============ ===========
Deposits, by
type:
Noninterest-
bearing
demand $ 1,932,382 $ 1,690,499 $ 1,942,845 14.3% (0.5%)
Interest-
bearing
demand 1,922,648 1,690,330 1,793,070 13.7% 7.2%
Savings
deposits 2,732,284 2,166,998 2,436,815 26.1% 12.1%
Time
deposits 5,445,366 4,368,728 5,543,567 24.6% (1.8%)
------------ ------------ -----------
Total
Deposits $ 12,032,680 $ 9,916,555 $11,716,297 21.3% 2.7%
============ ============ ===========
Short-term
borrowings,
by type:
Federal
funds
purchased $ 210,865 $ 1,326,873 $ 781,357 (84.1%) (73.0%)
Short-term
promissory
notes 258,911 460,512 274,028 (43.8%) (5.5%)
Customer
repurchase
agreements 252,842 222,415 261,444 13.7% (3.3%)
Overnight
borrowings
and
other - 580,166 464 (100.0%) (100.0%)
------------ ------------ -----------
Total
Short-
term
borrow-
ings $ 722,618 $ 2,589,966 $ 1,317,293 (72.1%) (45.1%)
============ ============ ===========
N/A - Not Applicable
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands, except per-share data
Quarter Ended % Change from
---------------------------- ------------------
Sep 30 Sep 30 Jun 30 Sep 30 Jun 30
2009 2008 2009 2008 2009
-------- -------- -------- -------- --------
Interest Income:
Interest income $197,861 $213,809 $198,097 (7.5%) (0.1%)
Interest expense 65,060 79,791 70,153 (18.5%) (7.3%)
-------- -------- --------
Net Interest Income 132,801 134,018 127,944 (0.9%) 3.8%
Provision for loan
losses 45,000 26,700 50,000 68.5% (10.0%)
-------- -------- --------
Net Interest Income
after Provision 87,801 107,318 77,944 (18.2%) 12.6%
Other Income:
Service charges on
deposit accounts 15,321 16,177 15,061 (5.3%) 1.7%
Other service charges
and fees 10,003 9,598 9,595 4.2% 4.3%
Investment management
and trust services 8,191 8,045 7,876 1.8% 4.0%
Gains on sales of
mortgage loans 2,778 2,266 7,395 22.6% (62.4%)
Investment securities
gains (losses) (45) (9,501) 77 99.5% N/M
Gain on sale of credit
card portfolio - - - - -
Other 4,932 4,230 5,373 16.6% (8.2%)
-------- -------- --------
Total Other Income 41,180 30,815 45,377 33.6% (9.2%)
Other Expenses:
Salaries and employee
benefits 54,086 55,310 55,799 (2.2%) (3.1%)
Net occupancy expense 10,165 10,237 10,240 (0.7%) (0.7%)
FDIC insurance expense 5,244 1,147 12,206 357.2% (57.0%)
Equipment expense 3,281 3,061 3,300 7.2% (0.6%)
Data processing 3,121 3,242 2,907 (3.7%) 7.4%
Marketing 1,982 3,097 1,724 (36.0%) 15.0%
Intangible
amortization 1,429 1,730 1,434 (17.4%) (0.3%)
Operating risk loss 338 3,480 144 (90.3%) 134.7%
Other 20,164 18,051 20,052 11.7% 0.6%
-------- -------- --------
Total Other Expenses 99,810 99,355 107,806 0.5% (7.4%)
-------- -------- --------
Income Before Income
Taxes 29,171 38,778 15,515 (24.8%) 88.0%
Income tax expense 5,825 9,702 2,404 (40.0%) 142.3%
-------- -------- --------
Net Income 23,346 29,076 13,111 (19.7%) 78.1%
Preferred stock
dividends and
discount accretion (5,046) - (5,046) N/A -
-------- -------- --------
Net Income Available
to Common
Shareholders $ 18,300 $ 29,076 $ 8,065 (37.1%) 126.9%
======== ======== ========
PER COMMON SHARE:
Net income:
Basic $ 0.10 $ 0.17 $ 0.05 (41.2%) 100.0%
Diluted 0.10 0.17 0.05 (41.2%) 100.0%
Cash dividends $ 0.03 $ 0.15 $ 0.03 (80.0%) -
Shareholders' equity 8.82 9.18 8.56 (3.9%) 3.0%
Shareholders' equity
(tangible) 5.68 5.46 5.40 4.0% 5.2%
Weighted average
shares (basic) 175,783 174,463 175,554 0.8% 0.1%
Weighted average
shares (diluted) 176,078 174,912 175,724 0.7% 0.2%
Shares outstanding,
end of period 176,149 174,687 175,706 0.8% 0.3%
SELECTED FINANCIAL
RATIOS:
Return on average
assets 0.56% 0.73% 0.32%
Return on average
common shareholders'
equity 4.78% 7.25% 2.16%
Return on average
common shareholders'
equity (tangible) 7.91% 12.72% 3.83%
Net interest margin 3.55% 3.77% 3.43%
Efficiency ratio 55.33% 54.74% 60.08%
Nine Months Ended
September 30
------------------
2009 2008 % Change
-------- -------- --------
Interest Income:
Interest income $591,525 $658,421 (10.2%)
Interest expense 206,664 266,614 (22.5%)
-------- --------
Net Interest Income 384,861 391,807 (1.8%)
Provision for loan
losses 145,000 54,626 165.4%
-------- --------
Net Interest Income
after Provision 239,861 337,181 (28.9%)
Other Income:
Service charges on
deposit accounts 45,276 45,463 (0.4%)
Other service charges
and fees 27,952 27,320 2.3%
Investment management
and trust services 23,970 25,193 (4.9%)
Gains on sales of
mortgage loans 18,764 7,247 158.9%
Investment securities
gains (losses) 2,951 (29,902) N/M
Gain on sale of credit
card portfolio - 13,910 (100.0%)
Other 14,558 11,414 27.5%
-------- --------
Total Other Income 133,471 100,645 32.6%
Other Expenses:
Salaries and employee
benefits 165,189 164,786 0.2%
Net occupancy expense 31,428 30,999 1.4%
FDIC insurance expense 21,738 2,684 709.9%
Equipment expense 9,660 9,907 (2.5%)
Data processing 9,100 9,604 (5.2%)
Marketing 6,277 9,521 (34.1%)
Intangible
amortization 4,326 5,386 (19.7%)
Operating risk loss 6,683 19,108 (65.0%)
Other 59,587 53,756 10.8%
-------- --------
Total Other Expenses 313,988 305,751 2.7%
-------- --------
Income Before Income
Taxes 59,344 132,075 (55.1%)
Income tax expense 9,802 35,825 (72.6%)
-------- --------
Net Income 49,542 96,250 (48.5%)
Preferred stock
dividends and
discount accretion (15,123) - N/A
-------- --------
Net Income Available
to Common
Shareholders $ 34,419 $ 96,250 (64.2%)
======== ========
PER COMMON SHARE:
Net income:
Basic $ 0.20 $ 0.55 (63.6%)
Diluted 0.20 0.55 (63.6%)
Cash dividends $ 0.09 $ 0.45 (80.0%)
Shareholders' equity 8.82 9.18 (3.9%)
Shareholders' equity
(tangible) 5.68 5.46 4.0%
Weighted average
shares (basic) 175,552 174,017 0.9%
Weighted average
shares (diluted) 175,785 174,551 0.7%
Shares outstanding,
end of period 176,149 174,687 0.8%
SELECTED FINANCIAL
RATIOS:
Return on average
assets 0.40% 0.81%
Return on average
common shareholders'
equity 3.06% 8.02%
Return on average
common shareholders'
equity (tangible) 5.24% 14.00%
Net interest margin 3.48% 3.71%
Efficiency ratio 58.76% 56.22%
N/A - Not applicable
N/M - Not meaningful
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Quarter Ended
--------------------------------------------------------
September 30, 2009 September 30, 2008
--------------------------- ---------------------------
Average Interest Yield/ Average Interest Yield/
Balance (1) Rate Balance (1) Rate
----------- -------- ---- ----------- -------- ----
ASSETS
Interest-earning
assets:
Loans, net of
unearned
income $11,913,581 $163,915 5.46% $11,696,841 $181,562 6.18%
Taxable
investment
securities 2,722,751 29,376 4.31% 2,117,207 26,025 4.92%
Tax-exempt
investment
securities 436,209 6,101 5.59% 509,994 6,944 5.45%
Equity
securities 132,176 632 1.90% 168,690 1,614 3.82%
----------- -------- ---- ----------- -------- ----
Total
Investment
Securities 3,291,136 36,109 4.39% 2,795,891 34,583 4.95%
Loans held for
sale 102,367 1,550 6.06% 101,319 1,539 6.08%
Other
interest-earning
assets 24,348 51 0.83% 19,013 142 2.94%
----------- -------- ---- ----------- -------- ----
Total
Interest-earning
Assets 15,331,432 201,625 5.23% 14,613,064 217,826 5.94%
Noninterest-earning
assets:
Cash and due
from banks 301,875 322,550
Premises and
equipment 204,416 197,895
Other assets 959,628 933,303
Less: allowance
for loan
losses (234,446) (123,865)
----------- -----------
Total Assets $16,562,905 $15,942,947
=========== ===========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
liabilities:
Demand deposits $ 1,883,087 $ 2,119 0.45% $ 1,734,198 $ 3,166 0.73%
Savings
deposits 2,556,717 5,187 0.80% 2,192,747 6,633 1.20%
Time deposits 5,554,349 36,519 2.61% 4,308,903 37,393 3.45%
----------- -------- ---- ----------- -------- ----
Total
Interest-bearing
Deposits 9,994,153 43,825 1.74% 8,235,848 47,192 2.28%
Short-term
borrowings 863,281 835 0.38% 2,432,109 12,877 2.08%
Federal Home
Loan Bank
advances and
long-term debt 1,695,427 20,400 4.77% 1,819,897 19,722 4.32%
----------- -------- ---- ----------- -------- ----
Total
Interest-bearing
Liabilities 12,552,861 65,060 2.06% 12,487,854 79,791 2.54%
Noninterest-bearing
liabilities:
Demand deposits 1,922,460 1,669,908
Other 198,314 190,012
----------- -----------
Total Liabilities 14,673,635 14,347,774
Shareholders'
equity 1,889,270 1,595,173
----------- -----------
Total Liabilities
and
Shareholders'
Equity $16,562,905 $15,942,947
=========== ===========
Net interest
income/net
interest margin
(fully taxable
equivalent) 136,565 3.55% 138,035 3.77%
==== ====
Tax equivalent
adjustment (3,764) (4,017)
-------- --------
Net interest
income $132,801 $134,018
======== ========
(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and
statutory interest expense disallowances.
Quarter Ended
----------------------------------------
June 30, 2009
----------------------------------------
Average Yield/
Balance Interest (1) Rate
------------ ------------ ------------
ASSETS
Interest-earning
assets:
Loans, net of
unearned
income $ 11,960,669 $ 163,744 5.49%
Taxable
investment
securities 2,673,136 29,422 4.40%
Tax-exempt
investment
securities 462,991 6,425 5.55%
Equity
securities 134,702 660 1.96%
------------ ------------ ------------
Total
Investment
Securities 3,270,829 36,507 4.47%
Loans held for
sale 139,354 1,628 4.67%
Other
interest-earning
assets 20,897 40 0.76%
------------ ------------ ------------
Total
Interest-earning
Assets 15,391,749 201,919 5.26%
Noninterest-earning
assets:
Cash and due
from banks 283,399
Premises and
equipment 204,451
Other assets 938,156
Less: allowance
for loan
losses (211,166)
------------
Total Assets $ 16,606,589
============
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
liabilities:
Demand deposits $ 1,818,897 $ 2,002 0.44%
Savings
deposits 2,307,089 4,401 0.76%
Time deposits 5,625,841 41,604 2.97%
------------ ------------ ------------
Total
Interest-bearing
Deposits 9,751,827 48,007 1.97%
Short-term
borrowings 1,186,541 921 0.31%
Federal Home
Loan Bank
advances and
long-term debt 1,780,120 21,225 4.78%
------------ ------------ ------------
Total
Interest-bearing
Liabilities 12,718,488 70,153 2.21%
Noninterest-bearing
liabilities:
Demand deposits 1,812,539
Other 206,901
------------
Total Liabilities 14,737,928
Shareholders'
equity 1,868,661
------------
Total Liabilities
and
Shareholders'
Equity $ 16,606,589
============
Net interest
income/net
interest margin
(fully taxable
equivalent) 131,766 3.43%
============
Tax equivalent
adjustment (3,822)
------------
Net interest
income $ 127,944
============
(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and
statutory interest expense disallowances.
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Quarter Ended % Change from
-------------------------------------- -----------------
September
September 30 September 30 June 30 30 June 30
2009 2008 2009 2008 2009
------------ ------------ ------------ ------- --------
Loans, by type:
Real estate -
commercial
mortgage $ 4,158,802 $ 3,806,311 $ 4,091,498 9.3% 1.6%
Commercial -
industrial,
financial and
agricultural 3,667,854 3,545,797 3,656,294 3.4% 0.3%
Real estate -
home equity 1,651,400 1,619,687 1,668,562 2.0% (1.0%)
Real estate -
construction 1,050,359 1,324,085 1,152,195 (20.7%) (8.8%)
Real estate -
residential
mortgage 933,943 947,510 935,983 (1.4%) (0.2%)
Consumer 371,676 369,052 371,610 0.7% -
Leasing and
other 79,547 84,399 84,527 (5.7%) (5.9%)
------------ ------------ ------------
Total Loans,
net of
unearned
income $ 11,913,581 $ 11,696,841 $ 11,960,669 1.9% (0.4%)
============ ============ ============
Deposits, by
type:
Noninterest-
bearing demand $ 1,922,460 $ 1,669,908 $ 1,812,539 15.1% 6.1%
Interest-bearing
demand 1,883,087 1,734,198 1,818,897 8.6% 3.5%
Savings
deposits 2,556,717 2,192,747 2,307,089 16.6% 10.8%
Time deposits 5,554,349 4,308,903 5,625,841 28.9% (1.3%)
------------ ------------ ------------
Total Deposits $ 11,916,613 $ 9,905,756 $ 11,564,366 20.3% 3.0%
============ ============ ============
Short-term
borrowings, by
type:
Federal funds
purchased $ 348,444 $ 1,399,130 $ 580,020 (75.1%) (39.9%)
Short-term
promissory
notes 259,534 486,179 297,743 (46.6%) (12.8%)
Customer
repurchase
agreements 254,789 213,827 256,306 19.2% (0.6%)
Federal
Reserve Bank
borrowings - - 48,352 - (100.0%)
Overnight
borrowings
and other 514 332,973 4,120 (99.8%) (87.5%)
------------ ------------ ------------
Total
Short-term
borrowings $ 863,281 $ 2,432,109 $ 1,186,541 (64.5%) (27.2%)
============ ============ ============
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Nine Months Ended September 30
------------------------------------------------------------
2009 2008
------------------------------------------------------------
Average Interest Yield/ Average Interest Yield/
Balance (1) Rate Balance (1) Rate
------------ --------- ---- ------------ --------- ----
ASSETS
Interest-earning
assets:
Loans, net of
unearned
income $ 11,971,378 $ 491,412 5.49% $ 11,472,748 $ 554,437 6.45%
Taxable
investment
securities 2,538,045 85,648 4.50% 2,275,681 84,114 4.93%
Tax-exempt
investment
securities 467,242 19,413 5.54% 511,871 20,831 5.43%
Equity
securities 134,710 2,066 2.05% 192,803 5,723 3.96%
------------ --------- ---- ------------ --------- ----
Total
Investment
Securities 3,139,997 107,127 4.55% 2,980,355 110,668 4.95%
Loans held
for sale 115,388 4,439 5.13% 102,819 4,726 6.13%
Other
interest-
earning
assets 20,754 140 0.90% 20,701 462 2.96%
------------ --------- ---- ------------ --------- ----
Total
Interest-
earning
Assets 15,247,517 603,118 5.29% 14,576,623 670,293 6.14%
Noninterest-
earning assets:
Cash and
due from
banks 301,009 318,844
Premises
and
equipment 203,919 196,977
Other
assets 940,974 948,134
Less:
allowance
for loan
losses (211,105) (116,598)
------------ ------------
Total
Assets $ 16,482,314 $ 15,923,980
============ ============
LIABILITIES
AND
SHAREHOLDERS'
EQUITY
Interest-bearing
liabilities:
Demand
deposits $ 1,819,135 $ 5,896 0.43% $ 1,709,380 $ 10,538 0.82%
Savings
deposits 2,309,103 13,941 0.81% 2,179,432 22,396 1.37%
Time
deposits 5,538,068 121,890 2.94% 4,396,409 128,873 3.92%
------------ --------- ---- ------------ --------- ----
Total
Interest-
bearing
Deposits 9,666,306 141,727 1.96% 8,285,221 161,807 2.61%
Short-term
borrowings 1,186,568 3,193 0.36% 2,365,052 44,093 2.46%
Federal
Home Loan
Bank
advances
and
long-term
debt 1,754,010 61,744 4.71% 1,829,981 60,714 4.43%
------------ --------- ---- ------------ --------- ----
Total
Interest-
bearing
Liabilities 12,606,884 206,664 2.19% 12,480,254 266,614 2.85%
Noninterest-
bearing
liabilities:
Demand
deposits 1,798,522 1,649,560
Other 202,209 190,487
------------ ------------
Total
Liabilities 14,607,615 14,320,301
Shareholders'
equity 1,874,699 1,603,679
------------ ------------
Total
Liabilities
and
Shareholders'
Equity $ 16,482,314 $ 15,923,980
============ ============
Net
interest
income/net
interest
margin
(fully
taxable
equivalent) 396,454 3.48% 403,679 3.71%
==== ====
Tax
equivalent
adjustment (11,593) (11,872)
--------- ---------
Net
interest
income $ 384,861 $ 391,807
========= =========
(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
---------------------------
2009 2008 % Change
------------- ------------- -----------
Loans, by type:
Real estate -
commercial
mortgage $ 4,100,119 $ 3,673,874 11.6%
Commercial -
industrial,
financial and
agricultural 3,660,083 3,504,467 4.4%
Real estate -
home equity 1,672,678 1,571,567 6.4%
Real estate -
construction 1,143,476 1,332,548 (14.2%)
Real estate -
residential
mortgage 942,407 898,875 4.8%
Consumer 368,109 406,196 (9.4%)
Leasing and other 84,506 85,221 (0.8%)
------------- -------------
Total Loans, net
of unearned
income $ 11,971,378 $ 11,472,748 4.3%
============= =============
Deposits, by type:
Noninterest-bearing
demand $ 1,798,522 $ 1,649,560 9.0%
Interest-bearing
demand 1,819,135 1,709,380 6.4%
Savings deposits 2,309,103 2,179,432 5.9%
Time deposits 5,538,068 4,396,409 26.0%
------------- -------------
Total Deposits $ 11,464,828 $ 9,934,781 15.4%
============= =============
Short-term
borrowings, by
type:
Federal funds
purchased $ 571,864 $ 1,296,074 (55.9%)
Short-term
promissory notes 297,831 475,523 (37.4%)
Customer
repurchase
agreements 252,539 221,253 14.1%
Federal Reserve
Bank borrowings 61,685 - N/A
Overnight
borrowings and
other 2,649 372,202 (99.3%)
------------- -------------
Total Short-term
borrowings $ 1,186,568 $ 2,365,052 (49.8%)
============= =============
N/A - Not Applicable
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
Quarter Ended
------------------------------------ Nine Months Ended
September 30
September 30 September 30 June 30 ---------------------
2009 2008 2009 2009 2008
------------ ------------ ---------- ---------- ----------
ALLOWANCE FOR
CREDIT LOSSES:
Balance at
beginning of
period $ 220,954 $ 126,223 $ 200,063 $ 180,137 $ 112,209
Loans charged
off:
Real estate -
construction (9,356) (2,733) (11,294) (32,892) (3,014)
Commercial -
industrial,
agricultural
and
financial (7,787) (4,684) (6,274) (24,683) (12,200)
Real estate -
commercial
mortgage (3,554) (2,405) (5,961) (13,475) (2,828)
Real estate -
residential
mortgage
and home
equity (1,065) (719) (1,830) (4,832) (2,969)
Consumer (2,527) (991) (3,064) (7,667) (3,738)
Leasing and
other (1,637) (1,166) (2,099) (4,682) (3,771)
------------ ------------ ---------- ---------- ----------
Total loans
charged off (25,926) (12,698) (30,522) (88,231) (28,520)
Recoveries of
loans charged
off:
Real estate -
construction 26 17 214 352 17
Commercial -
industrial,
agricultural
and
financial 444 749 306 1,654 1,025
Real estate -
commercial
mortgage 493 88 25 528 230
Real estate -
residential
mortgage
and home
equity 1 133 147 149 138
Consumer 354 304 511 1,294 1,022
Leasing and
other 375 313 210 838 1,082
------------ ------------ ---------- ---------- ----------
Recoveries
of loans
previously
charged off 1,693 1,604 1,413 4,815 3,514
------------ ------------ ---------- ---------- ----------
Net loans
charged off (24,233) (11,094) (29,109) (83,416) (25,006)
Provision for
loan losses 45,000 26,700 50,000 145,000 54,626
------------ ------------ ---------- ---------- ----------
Balance at end
of period $ 241,721 $ 141,829 $ 220,954 $ 241,721 $ 141,829
============ ============ ========== ========== ==========
Net charge-offs
to average
loans
(annualized) 0.81% 0.38% 0.97% 0.93% 0.29%
============ ============ ========== ========== ==========
COMPONENTS OF
ALLOWANCE FOR
CREDIT LOSSES:
Allowance for
loan losses $ 234,511 $ 136,988 $ 214,170
Reserve for
unfunded
lending
commitments 7,210 4,841 6,784
------------ ------------ ----------
Allowance for
credit
losses $ 241,721 $ 141,829 $ 220,954
============ ============ ==========
NON-PERFORMING
ASSETS:
Non-accrual
loans $ 228,961 $ 143,310 $ 228,132
Loans 90 days
past due and
accruing 52,797 21,354 39,135
------------ ------------ ----------
Total
non-
performing
loans 281,758 164,664 267,267
Other real
estate owned 19,151 21,706 24,916
------------ ------------ ----------
Total
non-
performing
assets $ 300,909 $ 186,370 $ 292,183
============ ============ ==========
NON-PERFORMING
LOANS, BY TYPE:
Real estate -
construction $ 104,789 $ 57,436 $ 102,977
Commercial -
industrial,
agricultural
and financial 63,217 41,489 58,433
Real estate -
commercial
mortgage 54,930 32,642 57,786
Real estate -
residential
mortgage and
home equity 46,192 26,274 37,231
Consumer 12,292 6,558 9,764
Leasing 338 265 1,076
------------ ------------ ----------
Total
non-
performing
loans $ 281,758 $ 164,664 $ 267,267
============ ============ ==========
ASSET QUALITY
RATIOS:
Non-accrual
loans to
total loans 1.91% 1.21% 1.92%
Non-performing
assets to
total loans
and OREO 2.51% 1.57% 2.46%
Non-performing
assets to
total assets 1.82% 1.15% 1.73%
Allowance for
credit losses
to loans
outstanding 2.02% 1.20% 1.86%
Allowance for
loan losses
to loans
outstanding 1.96% 1.16% 1.80%
Allowance for
credit losses
to
non-
performing
loans 85.79% 86.13% 82.67%
Non-performing
assets to
tangible
common
shareholders'
equity and
allowance
for credit
losses 24.24% 17.00% 24.99%
Media Contact:
Laura J. Wakeley
717-291-2616
