0000700564-12-000027.txt : 20121016 0000700564-12-000027.hdr.sgml : 20121016 20121016163640 ACCESSION NUMBER: 0000700564-12-000027 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20121016 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20121016 DATE AS OF CHANGE: 20121016 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FULTON FINANCIAL CORP CENTRAL INDEX KEY: 0000700564 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 232195389 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-10587 FILM NUMBER: 121146563 BUSINESS ADDRESS: STREET 1: ONE PENN SQ STREET 2: PO BOX 4887 CITY: LANCASTER STATE: PA ZIP: 17604 BUSINESS PHONE: 7172912411 MAIL ADDRESS: STREET 1: ONE PENN SQ STREET 2: PO BOX 4887 CITY: LANCASTER STATE: PA ZIP: 17604 8-K 1 a8-k9x30x2012.htm 8-K 8-K 9-30-2012


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 16, 2012
Commission File No. 0-10587
FULTON FINANCIAL CORPORATION
(Exact name of Registrant as specified in its Charter)
Pennsylvania
23-2195389
(State or other jurisdiction of incorporation)
(IRS Employer Identification Number)
One Penn Square
Lancaster, Pennsylvania
17602
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: 717-291-2411
Former name or former address, if changed since last Report: N/A
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
     £  Written communications pursuant to Rule 425 under the Securities Act
     £  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
     £  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
     £  Pre-commencement to communications pursuant to Rule 13e-4(c) under the Exchange Act





Item 2.02 - Results of Operations and Financial Condition
On October 16, 2012 Fulton Financial Corporation announced its results of operations for the third quarter ended September 30, 2012. A copy of the earnings release is attached as Exhibit 99.1 to this Form 8-K. Supplemental financial information included with the earnings release is attached as Exhibit 99.2 to this report.

Item 9.01 Financial Statements And Exhibits
(d)    Exhibits.

Exhibit No.
Description
99.1
Earnings Release dated October 16, 2012.
99.2
Supplemental financial information for the quarter ended September 30, 2012.











































SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: October 16, 2012
FULTON FINANCIAL CORPORATION

 
By:  /s/ Charles J. Nugent N                                                                                                                                    d Charles J. Nugent
       Senior Executive Vice President and
       Chief Financial Officer




 EX-99.1 2 exhibit9919-30x12.htm EARNINGS RELEASE DATED OCTOBER 16, 2012 Exhibit 99.1 9-30-12

Exhibit 99.1

FULTON FINANCIAL
CORPORATION


FOR IMMEDIATE RELEASE
Media Contact: Laura J. Wakeley (717) 291-2616
Investor Contact: David C. Hostetter (717) 291-2456

                                                                    
Fulton Financial reports third quarter earnings of $0.21 per share
    
•
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.

Lancaster, PA - (October 16, 2012) - 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
 
June 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
 
June 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.
# # #
2012



 EX-99.2 3 exhibit9929-30x12.htm SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED SEPTEMBER 30, 2012 Exhibit 99.2 9-30-12


Exhibit 99.2
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
Jun 30
 
Sep 30
 
Jun 30
 
 
 
September 30
 
 
 
 
 
 
 
2012
 
2011
 
2012
 
2011
 
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
 
 
 
Yield/
 
Average
 
 
 
Yield/
 
Average
 
 
 
Yield/
 
 
Balance
 
Interest (1)
 
Rate
 
Balance
 
Interest (1)
 
Rate
 
Balance
 
Interest (1)
 
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
 
 
 
 
 
Average
 
 
 
 
 
 
 
Balance
 
Interest (1)
 
Yield/Rate
 
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
 
 
 
 
 
 
 
 
 
 
Sep 30
 
Sep 30
 
Jun 30
 
September 30
 
 
 
 
 
 
 
 
 
 
2012
 
2011
 
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
%