0000700564-13-000005.txt : 20130115 0000700564-13-000005.hdr.sgml : 20130115 20130115163322 ACCESSION NUMBER: 0000700564-13-000005 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20130115 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130115 DATE AS OF CHANGE: 20130115 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: 13530793 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-k12x31x12.htm 8-K 8-K 12-31-12


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):
January 15, 2013
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 January 15, 2013 Fulton Financial Corporation announced its results of operations for the fourth quarter and year ended December 31, 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 January 15, 2013.
99.2
Supplemental financial information for the quarter and year ended December 31, 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: January 15, 2013
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 exhibit99112-31x12.htm EARNINGS RELEASE DATED JANUARY 15TH 2013 Exhibit 99.1 12-31-12

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 2012 earnings

•
Diluted earnings per share for the fourth quarter of 2012 was 20 cents, a 4.8 percent decrease from the third quarter of 2012 and an 11.1 percent increase from the fourth quarter of 2011. For the year ended December 31, 2012, diluted earnings per share was 80 cents, a 9.6 percent increase from 2011.
•
The provision for credit losses was $17.5 million for the fourth quarter of 2012, a $5.5 million, or 23.9 percent, decrease compared to the third quarter of 2012. For the year ended December 31, 2012, the provision for loan losses decreased $41.0 million, or 30.4 percent, compared to 2011. Non-performing loans decreased $1.8 million, or 0.8 percent, in comparison to September 30, 2012 and $75.5 million, or 26.3 percent, in comparison to December 31, 2011.
•
Net interest income for the fourth quarter of 2012 decreased $3.7 million, or 2.7 percent, compared to the third quarter of 2012 due to a decrease in net interest margin of 9 basis points, or 2.4 percent. For the year ended December 31, 2012, net interest income decreased $15.8 million, or 2.8 percent, in comparison to 2011.
•
On December 31, 2012, the Corporation's wholly owned subsidiary, Fulton Bank, N.A., completed the divestiture of its Global Exchange Group division (Global Exchange) for a pre-tax gain of $6.2 million. The federal tax liability associated with this transaction was $4.0 million due to the write-off of non-deductible goodwill, resulting in an after tax gain on the transaction of $2.2 million. The proceeds from this transaction and short-term borrowings were used to prepay approximately $20 million of Federal Home Loan Bank (FHLB) advances, with a weighted average interest rate of 4.38 percent and maturing in January 2017. The Corporation incurred a $3.0 million ($2.0 million, net of tax) penalty in connection with prepaying these FHLB advances.
•
In January 2013, the Corporation announced that its board of directors approved the repurchase of up to eight million shares, or approximately 4.0 percent of the Corporation's outstanding shares, through June 30, 2013. Under the Corporation's previous 2012 repurchase program, the Corporation repurchased approximately 2.1 million shares.





(January 15, 2013) - Lancaster, PA - Fulton Financial Corporation (NASDAQ: FULT) reported net income of $40.2 million, or 20 cents per diluted share, for the fourth quarter ended December 31, 2012, compared to $41.6 million, or 21 cents per diluted share, for the third quarter of 2012. For the year ended December 31, 2012, net income was $159.8 million, or 80 cents per diluted share, compared to $145.6 million, or 73 cents per diluted share, for 2011.
“2012 was a good year for us. We saw continued improvement in earnings and asset quality, a significant reduction in our provision for credit losses, strong residential mortgage activity, good core deposit growth and higher returns on assets and equity,” said E. Philip Wenger, Chairman, CEO and President. “From a shareholder perspective, we continued to deploy capital by initiating a share repurchase program and by increasing our quarterly cash dividend. In the fourth quarter, we were particularly pleased to see a pick-up in loan demand across all our markets, although the persistently low interest rate environment continues to put pressure on our net interest margin. Our primary strategic focus for 2013 is quality interest-earning asset growth.”
Asset Quality
Non-performing assets were $237.2 million, or 1.44 percent of total assets, at December 31, 2012, compared to $242.0 million, or 1.49 percent of total assets, at September 30, 2012 and $317.3 million, or 1.94 percent of total assets, at December 31, 2011. The $4.8 million, or 2.0 percent, decrease in non-performing assets in comparison to the third quarter of 2012 was primarily due to a decrease in other real estate owned and decreases in non-performing commercial mortgages and commercial loans, partially offset by an increase in non-performing residential mortgages and home equity loans.
Annualized net charge-offs for the quarter ended December 31, 2012 were 0.91 percent of average total loans, compared to 0.84 percent for the quarter ended September 30, 2012 and 1.36 percent for the quarter ended December 31, 2011. The allowance for credit losses as a percentage of non-performing loans was 106.8 percent at December 31, 2012 in comparison to 110.5 percent at September 30, 2012 and 90.1 percent at December 31, 2011.
Net Interest Income and Margin
Net interest income for the fourth quarter of 2012 decreased $3.7 million, or 2.7 percent, from the third quarter of 2012, primarily due to a decrease in the net interest margin. The net interest margin decreased 9 basis points, or 2.4 percent, from 3.74 percent in the third quarter of 2012, to 3.65 percent in the fourth quarter of 2012. Average yields on interest-earning assets decreased 14 basis points, while the decline in the average costs of interest-bearing liabilities was limited to 5 basis points.
For the year ended December 31, 2012, net interest income decreased $15.8 million, or 2.8 percent, compared to 2011. Net interest margin was 3.76 percent for 2012, as compared to 3.90 percent for 2011.






Average Balance Sheet
Total average assets for the fourth quarter of 2012 were $16.2 billion, a decrease of $43.0 million, or 0.3 percent, from the third quarter of 2012. This decrease was due to a $104.9 million, or 3.8 percent, decrease in investment securities, partially offset by an $80.5 million, or 0.7 percent, increase in loans, net of unearned income.     
 
Quarter Ended
 
Increase (decrease)
 
Dec 31, 2012
 
Sep 30, 2012
 
$
 
%
 
Dollars in thousands
Loans, by type:

 

 

 

    Real estate - commercial mortgage
$
4,623,158

 
$
4,603,388

 
$
19,770

 
0.4
 %
    Commercial - industrial, financial, and agricultural
3,559,171

 
3,529,733

 
29,438

 
0.8
 %
    Real estate - home equity
1,611,868

 
1,597,230

 
14,638

 
0.9
 %
    Real estate - residential mortgage
1,223,589

 
1,200,752

 
22,837

 
1.9
 %
    Real estate - construction
593,351

 
605,910

 
(12,559
)
 
(2.1
)%
    Consumer
305,766

 
304,235

 
1,531

 
0.5
 %
    Leasing and other
83,747

 
78,945

 
4,802

 
6.1
 %
Total Loans, net of unearned income
$
12,000,650

 
$
11,920,193

 
$
80,457

 
0.7
 %
For the year ended December 31, 2012, average loans, net of unearned income, increased $61.8 million, or 0.5 percent, in comparison to 2011.
Total average liabilities decreased $61.1 million, or 0.4 percent, from the third quarter of 2012, due primarily to a $100.3 million, or 17.0 percent, decrease in short-term borrowings, partially offset by a $36.5 million, or 0.3 percent, increase in average deposits.

 
Quarter Ended
 
Increase (decrease)
 
Dec 31, 2012
 
Sep 30, 2012
 
$
 
%
 
Dollars in thousands
Deposits, by type:

 

 

 

    Noninterest-bearing demand
$
2,953,861

 
$
2,836,166

 
$
117,695

 
4.1
 %
    Interest-bearing demand
2,684,063

 
2,608,202

 
75,861

 
2.9
 %
    Savings deposits
3,391,988

 
3,364,109

 
27,879

 
0.8
 %
Total demand and savings
9,029,912

 
8,808,477

 
221,435

 
2.5
 %
    Time deposits
3,472,692

 
3,657,616

 
(184,924
)
 
(5.1
)%
Total Deposits
$
12,502,604

 
$
12,466,093

 
$
36,511

 
0.3
 %
For the year ended December 31, 2012, average deposits decreased $64.7 million, or 0.5 percent, compared to 2011. This decrease was due to a $579.6 million, or 13.5 percent, decrease in average time deposits, partially offset by a $514.8 million, or 6.3 percent, increase in average demand and saving accounts.






Non-interest Income    
Non-interest income, excluding investment securities gains, increased $7.4 million, or 14.3 percent, in comparison to the third quarter of 2012, primarily due to the aforementioned $6.2 million gain on the divestiture of Global Exchange. Mortgage banking income increased $2.2 million, or 20.9 percent. Net servicing income increased $2.0 million as a result of a $2.1 million mortgage servicing rights impairment charge recorded during the third quarter of 2012, while gains on sales of mortgage loans increased $185,000. Other income decreased $1.2 million due to a decrease in gains from investments in corporate owned life insurance.
For the year ended December 31, 2012, non-interest income, excluding investment securities gains, increased $30.4 million, or 16.6 percent, compared to 2011 due primarily to the $6.2 million gain on the divestiture of Global Exchange and an $18.9 million increase in mortgage banking income.
Non-interest Expense
Non-interest expenses increased $6.6 million, or 6.0 percent, in the fourth quarter of 2012 compared to the third quarter of 2012. As noted above, during the fourth quarter of 2012, the Corporation prepaid approximately $20 million of FHLB advances, incurring a $3.0 million prepayment penalty. Marketing expense increased $1.9 million due to the timing of promotional campaigns. Other expenses increased $1.9 million, primarily related to reversals of reserves for non-income state taxes in the third quarter of 2012. Operating risk loss increased $1.2 million due to increases in reserves for losses on previously sold residential mortgages. Partially offsetting these increases in non-interest expenses was a $1.5 million decrease in other outside services expense as a result of a decrease in consulting expenses associated with risk management and compliance efforts and an $858,000 decrease in salaries and employee benefits, largely a result of lower healthcare costs.
For the year ended December 31, 2012, non-interest expenses increased $33.0 million, or 7.9 percent, due primarily to increases in salaries and employee benefits, operating risk loss and other outside services.
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.
# # #
2013



 EX-99.2 3 exhibit99212-31x12.htm SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED DECEMBER 31,2012 Exhibit 99.2 12-31-12


Exhibit 99.2
 
 
 
 
 
 
 
 
 
 
 
 
 
FULTON FINANCIAL CORPORATION
 
 
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
 
 
dollars in thousands
 
 
 
 
 
 
 
 
 
 
 % Change from
 
 
December 31
 
December 31
 
September 30
 
December 31
 
September 30
 
 
2012
 
2011
 
2012
 
2011
 
2012
ASSETS
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
256,300

 
$
292,598

 
$
217,207

 
(12.4
)%
 
18.0
 %
 
Other interest-earning assets
173,257

 
175,336

 
202,305

 
(1.2
)%
 
(14.4
)%
 
Loans held for sale
64,331

 
47,009

 
85,477

 
36.8
 %
 
(24.7
)%
 
Investment securities
2,794,017

 
2,679,967

 
2,790,138

 
4.3
 %
 
0.1
 %
 
Loans, net of unearned income
12,148,172

 
11,968,970

 
11,933,001

 
1.5
 %
 
1.8
 %
 
Allowance for loan losses
(223,903
)
 
(256,471
)
 
(233,864
)
 
(12.7
)%
 
(4.3
)%
 
     Net Loans
11,924,269

 
11,712,499

 
11,699,137

 
1.8
 %
 
1.9
 %
 
Premises and equipment
227,723

 
212,274

 
225,771

 
7.3
 %
 
0.9
 %
 
Accrued interest receivable
45,786

 
51,098

 
49,784

 
(10.4
)%
 
(8.0
)%
 
Goodwill and intangible assets
535,563

 
544,209

 
541,845

 
(1.6
)%
 
(1.2
)%
 
Other assets
506,907

 
655,518

 
461,465

 
(22.7
)%
 
9.8
 %
 
    Total Assets
$
16,528,153

 
$
16,370,508

 
$
16,273,129

 
1.0
 %
 
1.6
 %
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
Deposits
$
12,473,091

 
$
12,525,739

 
$
12,601,310

 
(0.4
)%
 
(1.0
)%
 
Short-term borrowings
868,399

 
597,033

 
486,971

 
45.5
 %
 
78.3
 %
 
Other liabilities
210,754

 
215,048

 
215,542

 
(2.0
)%
 
(2.2
)%
 
FHLB advances and long-term debt
894,253

 
1,040,149

 
908,623

 
(14.0
)%
 
(1.6
)%
 
    Total Liabilities
14,446,497

 
14,377,969

 
14,212,446

 
0.5
 %
 
1.6
 %
 
Shareholders' equity
2,081,656

 
1,992,539

 
2,060,683

 
4.5
 %
 
1.0
 %
 
    Total Liabilities and Shareholders' Equity
$
16,528,153

 
$
16,370,508

 
$
16,273,129

 
1.0
 %
 
1.6
 %
 
 
 
 
 
 
 
 
 
 
 
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
 
 
 
 
 
 
 
 
Loans, by type:
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
4,664,426

 
$
4,602,596

 
$
4,632,509

 
1.3
 %
 
0.7
 %
 
Commercial - industrial, financial and agricultural
3,612,065

 
3,639,368

 
3,507,846

 
(0.8
)%
 
3.0
 %
 
Real estate - home equity
1,632,390

 
1,624,562

 
1,603,456

 
0.5
 %
 
1.8
 %
 
Real estate - residential mortgage
1,256,991

 
1,097,192

 
1,213,831

 
14.6
 %
 
3.6
 %
 
Real estate - construction
587,686

 
615,445

 
597,358

 
(4.5
)%
 
(1.6
)%
 
Consumer
309,220

 
318,101

 
301,182

 
(2.8
)%
 
2.7
 %
 
Leasing and other
85,394

 
71,706

 
76,819

 
19.1
 %
 
11.2
 %
 
Total Loans, net of unearned income
$
12,148,172

 
$
11,968,970

 
$
11,933,001

 
1.5
 %
 
1.8
 %
Deposits, by type:
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand
$
3,008,675

 
$
2,588,034

 
$
2,903,591

 
16.3
 %
 
3.6
 %
 
Interest-bearing demand
2,755,603

 
2,529,388

 
2,702,710

 
8.9
 %
 
2.0
 %
 
Savings deposits
3,325,475

 
3,394,367

 
3,416,011

 
(2.0
)%
 
(2.7
)%
 
Time deposits
3,383,338

 
4,013,950

 
3,578,998

 
(15.7
)%
 
(5.5
)%
 
Total Deposits
$
12,473,091

 
$
12,525,739

 
$
12,601,310

 
(0.4
)%
 
(1.0
)%
Short-term borrowings, by type:
 
 
 
 
 
 
 
 
 
Customer repurchase agreements
$
156,238

 
$
186,735

 
$
192,082

 
(16.3
)%
 
(18.7
)%
 
Customer short-term promissory notes
119,691

 
156,828

 
124,628

 
(23.7
)%
 
(4.0
)%
 
Federal funds purchased
592,470

 
253,470

 
170,261

 
133.7
 %
 
248.0
 %
 
Total Short-term Borrowings
$
868,399

 
$
597,033

 
$
486,971

 
45.5
 %
 
78.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
 
 
 
 
 
 
 
 
dollars in thousands, except per-share data
 
 
 
 
 
 
 
 
 
 
 
 
 
 Quarter Ended
 
 % Change from
 
 
 
Year ended
 
 
 
 
 
 
 
Dec 31
 
Dec 31
 
Sep 30
 
Dec 31
 
Sep 30
 
 
 
Dec 31
 
 
 
 
 
 
 
2012
 
2011
 
2012
 
2011
 
2012
 
 
 
2012
 
2011
 
% Change
 
Interest Income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
 
$
155,560

 
$
169,333

 
$
161,060

 
(8.1
)%
 
(3.4
)%
 
 
 
$
647,496

 
$
693,698

 
(6.7
)%
 
 
Interest expense
 
 
23,338

 
30,874

 
25,179

 
(24.4
)%
 
(7.3
)%
 
 
 
103,168

 
133,538

 
(22.7
)%
 
 
    Net Interest Income
 
 
132,222

 
138,459

 
135,881

 
(4.5
)%
 
(2.7
)%
 
 
 
544,328

 
560,160

 
(2.8
)%
 
 
Provision for credit losses
 
 
17,500

 
30,000

 
23,000

 
(41.7
)%
 
(23.9
)%
 
 
 
94,000

 
135,000

 
(30.4
)%
 
 
    Net Interest Income after Provision
 
 
114,722

 
108,459

 
112,881

 
5.8
 %
 
1.6
 %
 
 
 
450,328

 
425,160

 
5.9
 %
 
Non-Interest Income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service charges on deposit accounts
 
 
15,642

 
15,277

 
15,651

 
2.4
 %
 
(0.1
)%
 
 
 
61,502

 
58,078

 
5.9
 %
 
 
Mortgage banking income
 
 
12,813

 
6,220

 
10,594

 
106.0
 %
 
20.9
 %
 
 
 
44,600

 
25,674

 
73.7
 %
 
 
Other service charges and fees
 
 
11,164

 
10,784

 
11,119

 
3.5
 %
 
0.4
 %
 
 
 
44,345

 
47,482

 
(6.6
)%
 
 
Investment management and trust services
 
 
9,611

 
8,727

 
9,429

 
10.1
 %
 
1.9
 %
 
 
 
38,239

 
36,483

 
4.8
 %
 
 
Gain on sale of Global Exchange
 
 
6,215

 
—

 
—

 
100.0
 %
 
100.0
 %
 
 
 
6,215

 
—

 
100.0
 %
 
 
Investment securities gains
 
 
195

 
3,054

 
42

 
(93.6
)%
 
364.3
 %
 
 
 
3,026

 
4,561

 
(33.7
)%
 
 
Other
 
 
3,936

 
4,286

 
5,169

 
(8.2
)%
 
(23.9
)%
 
 
 
18,697

 
15,449

 
21.0
 %
 
 
    Total Non-Interest Income
 
 
59,576

 
48,348

 
52,004

 
23.2
 %
 
14.6
 %
 
 
 
216,624

 
187,727

 
15.4
 %
 
Non-Interest Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
 
61,303

 
58,109

 
62,161

 
5.5
 %
 
(1.4
)%
 
 
 
243,915

 
227,435

 
7.2
 %
 
 
Net occupancy expense
 
 
11,362

 
10,973

 
11,161

 
3.5
 %
 
1.8
 %
 
 
 
44,663

 
44,003

 
1.5
 %
 
 
Equipment expense
 
 
3,873

 
3,329

 
3,816

 
16.3
 %
 
1.5
 %
 
 
 
14,243

 
12,870

 
10.7
 %
 
 
Data Processing
 
 
3,713

 
3,482

 
3,776

 
6.6
 %
 
(1.7
)%
 
 
 
14,936

 
13,541

 
10.3
 %
 
 
Other outside services
 
 
3,528

 
2,595

 
4,996

 
36.0
 %
 
(29.4
)%
 
 
 
15,310

 
7,851

 
95.0
 %
 
 
Professional fees
 
 
3,228

 
2,961

 
2,728

 
9.0
 %
 
18.3
 %
 
 
 
11,522

 
12,159

 
(5.2
)%
 
 
FHLB advances prepayment penalty
 
 
3,007

 
—

 
—

 
100.0
 %
 
100.0
 %
 
 
 
3,007

 
—

 
100.0
 %
 
 
FDIC insurance expense
 
 
2,944

 
2,730

 
3,029

 
7.8
 %
 
(2.8
)%
 
 
 
11,996

 
14,480

 
(17.2
)%
 
 
Operating risk loss
 
 
2,627

 
1,022

 
1,404

 
157.0
 %
 
87.1
 %
 
 
 
9,454

 
1,328

 
611.9
 %
 
 
Software
 
 
2,562

 
2,254

 
2,511

 
13.7
 %
 
2.0
 %
 
 
 
9,520

 
8,400

 
13.3
 %
 
 
Marketing
 
 
2,537

 
3,045

 
648

 
(16.7
)%
 
291.5
 %
 
 
 
8,240

 
9,667

 
(14.8
)%
 
 
OREO and repossession expense
 
 
2,349

 
3,565

 
2,096

 
(34.1
)%
 
12.1
 %
 
 
 
10,196

 
8,366

 
21.9
 %
 
 
Other
 
 
13,576

 
14,795

 
11,717

 
(8.2
)%
 
15.9
 %
 
 
 
52,504

 
56,376

 
(6.9
)%
 
 
    Total Non-Interest Expenses
 
 
116,609

 
108,860

 
110,043

 
7.1
 %
 
6.0
 %
 
 
 
449,506

 
416,476

 
7.9
 %
 
 
    Income Before Income Taxes
 
 
57,689

 
47,947

 
54,842

 
20.3
 %
 
5.2
 %
 
 
 
217,446

 
196,411

 
10.7
 %
 
 
Income tax expense
 
 
17,449

 
11,868

 
13,260

 
47.0
 %
 
31.6
 %
 
 
 
57,601

 
50,838

 
13.3
 %
 
 
    Net Income
 
 
$
40,240

 
$
36,079

 
$
41,582

 
11.5
 %
 
(3.2
)%
 
 
 
$
159,845

 
$
145,573

 
9.8
 %
 
PER SHARE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Basic
 
 
$
0.20

 
$
0.18

 
$
0.21

 
11.1
 %
 
(4.8
)%
 
 
 
$
0.80

 
$
0.73

 
9.6
 %
 
 
    Diluted
 
 
0.20

 
0.18

 
0.21

 
11.1
 %
 
(4.8
)%
 
 
 
0.80

 
0.73

 
9.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends
 
 
$
0.08

 
$
0.06

 
$
0.08

 
33.3
 %
 
—
 %
 
 
 
$
0.30

 
$
0.2

 
50.0
 %
 
 
Shareholders' equity
 
 
10.45

 
9.95

 
10.36

 
5.0
 %
 
0.9
 %
 
 
 
10.45

 
9.95

 
5.0
 %
 
 
Shareholders' equity (tangible)
 
 
7.76

 
7.24

 
7.63

 
7.2
 %
 
1.7
 %
 
 
 
7.76

 
7.24

 
7.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares (basic)
 
 
198,161

 
199,239

 
198,956

 
(0.5
)%
 
(0.4
)%
 
 
 
199,067

 
198,912

 
0.1
 %
 
 
Weighted average shares (diluted)
 
 
199,198

 
199,997

 
199,808

 
(0.4
)%
 
(0.3
)%
 
 
 
200,039

 
199,658

 
0.2
 %
 
 
Shares outstanding, end of period
 
 
199,225

 
200,164

 
198,975

 
(0.5
)%
 
0.1
 %
 
 
 
199,225

 
200,164

 
(0.5
)%
 
SELECTED FINANCIAL RATIOS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
 
 
0.99
%
 
0.88
%
 
1.02
%
 
 
 
 
 
 
 
0.98
%
 
0.90
%
 
 
 
 
Return on average common shareholders' equity
 
 
7.70
%
 
7.16
%
 
8.03
%
 
 
 
 
 
 
 
7.79
%
 
7.45
%
 
 
 
 
Return on average common shareholders' equity (tangible)
 
 
10.53
%
 
10.02
%
 
11.02
%
 
 
 
 
 
 
 
10.73
%
 
10.54
%
 
 
 
 
Net interest margin
 
 
3.65
%
 
3.81
%
 
3.74
%
 
 
 
 
 
 
 
3.76
%
 
3.90
%
 
 
 
 
Efficiency ratio
 
 
59.17
%
 
57.44
%
 
56.91
%
 
 
 
 
 
 
 
57.63
%
 
54.28
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 







FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
 
 
 
 
 
dollars in thousands
 
 
 
 
 
 
 
 
 Quarter Ended
 
 
December 31, 2012
 
December 31, 2011
 
September 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
$
12,000,650

 
$
141,014

 
4.68%
 
$
11,926,246

 
$
150,195

 
5.00%
 
$
11,920,193

 
$
143,211

 
4.78%
 
Taxable investment securities
2,279,551

 
13,406

 
2.35%
 
2,279,658

 
17,462

 
3.06%
 
2,392,043

 
16,658

 
2.78%
 
Tax-exempt investment securities
286,400

 
3,857

 
5.39%
 
307,713

 
4,340

 
5.64%
 
286,225

 
3,936

 
5.50%
 
Equity securities
117,333

 
984

 
3.35%
 
121,219

 
774

 
2.55%
 
109,884

 
820

 
2.98%
 
Total Investment Securities
2,683,284

 
18,247

 
2.72%
 
2,708,590

 
22,576

 
3.33%
 
2,788,152

 
21,414

 
3.07%
 
Loans held for sale
59,977

 
517

 
3.45%
 
54,013

 
541

 
4.01%
 
61,001

 
578

 
3.79%
 
Other interest-earning assets
145,170

 
45

 
0.12%
 
192,574

 
133

 
0.27%
 
147,432

 
35

 
0.09%
 
Total Interest-earning Assets
14,889,081

 
159,823

 
4.28%
 
14,881,423

 
173,445

 
4.63%
 
14,916,778

 
165,238

 
4.42%
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
221,309

 
 
 
 
 
282,993

 
 
 
 
 
221,946

 
 
 
 
 
Premises and equipment
224,852

 
 
 
 
 
207,744

 
 
 
 
 
222,544

 
 
 
 
 
Other assets
1,067,484

 
 
 
 
 
1,125,429

 
 
 
 
 
1,088,807

 
 
 
 
 
Less: allowance for loan losses
(235,563
)
 
 
 
 
 
(275,160
)
 
 
 
 
 
(239,931
)
 
 
 
 
 
Total Assets
$
16,167,163

 
 
 
 
 
$
16,222,429

 
 
 
 
 
$
16,210,144

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
$
2,684,063

 
$
1,055

 
0.16%
 
$
2,462,551

 
$
1,243

 
0.20%
 
$
2,608,202

 
$
1,071

 
0.16%
 
Savings deposits
3,391,988

 
1,251

 
0.14%
 
3,466,104

 
2,356

 
0.27%
 
3,364,109

 
1,431

 
0.17%
 
Time deposits
3,472,692

 
9,748

 
1.12%
 
4,084,278

 
14,739

 
1.43%
 
3,657,616

 
11,346

 
1.23%
 
Total Interest-bearing Deposits
9,548,743

 
12,054

 
0.50%
 
10,012,933

 
18,338

 
0.73%
 
9,629,927

 
13,848

 
0.57%
 
Short-term borrowings
488,310

 
156

 
0.13%
 
463,659

 
173

 
0.15%
 
588,568

 
220

 
0.15%
 
FHLB advances and long-term debt
914,013

 
11,128

 
4.86%
 
1,025,683

 
12,363

 
4.80%
 
908,767

 
11,111

 
4.88%
 
Total Interest-bearing Liabilities
10,951,066

 
23,338

 
0.85%
 
11,502,275

 
30,874

 
1.07%
 
11,127,262

 
25,179

 
0.90%
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
2,953,861

 
 
 
 
 
2,529,548

 
 
 
 
 
2,836,166

 
 
 
 
 
Other
182,890

 
 
 
 
 
192,806

 
 
 
 
 
185,441

 
 
 
 
 
Total Liabilities
14,087,817

 
 
 
 
 
14,224,629

 
 
 
 
 
14,148,869

 
 
 
 
 
Shareholders' equity
2,079,346

 
 
 
 
 
1,997,800

 
 
 
 
 
2,061,275

 
 
 
 
 
Total Liabilities and Shareholders' Equity
$
16,167,163

 
 
 
 
 
$
16,222,429

 
 
 
 
 
$
16,210,144

 
 
 
 
 
Net interest income/net interest margin (fully taxable equivalent)
 
 
136,485

 
3.65%
 
 
 
142,571

 
3.81%
 
 
 
140,059

 
3.74%
 
Tax equivalent adjustment
 
 
(4,263
)
 
 
 
 
 
(4,112
)
 
 
 
 
 
(4,178
)
 
 
 
Net interest income
 
 
$
132,222

 
 
 
 
 
$
138,459

 
 
 
 
 
$
135,881

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
 
 
 
 
 
 
 
 
 
Dec 31
 
Dec 31
 
Sep 30
 
Dec 31
 
Sep 30
 
 
 
 
 
 
 
 
 
 
2012
 
2011
 
2012
 
2011
 
2012
 
 
 
 
 
 
 
 
Loans, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
4,623,158

 
$
4,554,161

 
$
4,603,388

 
1.5
 %
 
0.4
 %
 
 
 
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
3,559,171

 
3,637,465

 
3,529,733

 
(2.2
)%
 
0.8
 %
 
 
 
 
 
 
 
 
 
Real estate - home equity
1,611,868

 
1,628,406

 
1,597,230

 
(1.0
)%
 
0.9
 %
 
 
 
 
 
 
 
 
 
Real estate - residential mortgage
1,223,589

 
1,066,463

 
1,200,752

 
14.7
 %
 
1.9
 %
 
 
 
 
 
 
 
 
 
Real estate - construction
593,351

 
641,485

 
605,910

 
(7.5
)%
 
(2.1
)%
 
 
 
 
 
 
 
 
 
Consumer
305,766

 
326,818

 
304,235

 
(6.4
)%
 
0.5
 %
 
 
 
 
 
 
 
 
 
Leasing and other
83,747

 
71,448

 
78,945

 
17.2
 %
 
6.1
 %
 
 
 
 
 
 
 
 
 
Total Loans, net of unearned income
$
12,000,650

 
$
11,926,246

 
$
11,920,193

 
0.6
 %
 
0.7
 %
 
 
 
 
 
 
 
 
Deposits, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand
$
2,953,861

 
$
2,529,548

 
$
2,836,166

 
16.8
 %
 
4.1
 %
 
 
 
 
 
 
 
 
 
Interest-bearing demand
2,684,063

 
2,462,551

 
2,608,202

 
9.0
 %
 
2.9
 %
 
 
 
 
 
 
 
 
 
Savings deposits
3,391,988

 
3,466,104

 
3,364,109

 
(2.1
)%
 
0.8
 %
 
 
 
 
 
 
 
 
 
Time deposits
3,472,692

 
4,084,278

 
3,657,616

 
(15.0
)%
 
(5.1
)%
 
 
 
 
 
 
 
 
 
Total Deposits
$
12,502,604

 
$
12,542,481

 
$
12,466,093

 
(0.3
)%
 
0.3
 %
 
 
 
 
 
 
 
 
Short-term borrowings, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer repurchase agreements
$
189,922

 
$
195,372

 
$
210,830

 
(2.8
)%
 
(9.9
)%
 
 
 
 
 
 
 
 
 
Customer short-term promissory notes
125,933

 
165,677

 
127,479

 
(24.0
)%
 
(1.2
)%
 
 
 
 
 
 
 
 
 
Federal funds purchased and other
172,455

 
102,610

 
250,259

 
68.1
 %
 
(31.1
)%
 
 
 
 
 
 
 
 
 
Total Short-term Borrowings
$
488,310

 
$
463,659

 
$
588,568

 
5.3
 %
 
(17.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
 
 
 
 
 
 
dollars in thousands
 
 
 
 
 
 
 
 
 
Year ended December 31
 
 
 
2012
 
2011
 
 
 
Average
 
 
 
 
 
Average
 
 
 
 
 
 
 
Balance
 
Interest (1)
 
Yield/Rate
 
Balance
 
Interest (1)
 
Yield/Rate
ASSETS
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
Loans, net of unearned income
 
$
11,966,347

 
$
575,534

 
4.81%
 
$
11,904,529

 
$
605,671

 
5.09%
 
Taxable investment securities
 
2,401,343

 
67,349

 
2.80%
 
2,223,376

 
80,184

 
3.61%
 
Tax-exempt investment securities
 
287,763

 
15,942

 
5.54%
 
330,087

 
18,521

 
5.61%
 
Equity securities
 
112,448

 
3,291

 
2.93%
 
126,766

 
3,078

 
2.43%
 
Total Investment Securities
 
2,801,554

 
86,582

 
3.09%
 
2,680,229

 
101,783

 
3.80%
 
Loans held for sale
 
54,351

 
2,064

 
3.80%
 
43,470

 
1,958

 
4.50%
 
Other interest-earning assets
 
130,946

 
178

 
0.14%
 
160,664

 
358

 
0.22%
 
Total Interest-earning Assets
 
14,953,198

 
664,358

 
4.45%
 
14,788,892

 
709,770

 
4.80%
Noninterest-earning assets:
 
 
 
 
 
 
 
Cash and due from banks
 
234,880

 
 
 
 
 
274,527

 
 
 
 
 
Premises and equipment
 
219,236

 
 
 
 
 
207,081

 
 
 
 
 
Other assets
 
1,088,151

 
 
 
 
 
1,108,359

 
 
 
 
 
Less: allowance for loan losses
 
(250,160
)
 
 
 
 
 
(276,278
)
 
 
 
 
 
Total Assets
 
$
16,245,305

 
 
 
 
 
$
16,102,581

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
Demand deposits
 
$
2,560,831

 
$
4,187

 
0.16%
 
$
2,391,043

 
$
5,312

 
0.22%
 
Savings deposits
 
3,347,606

 
6,002

 
0.18%
 
3,359,109

 
11,536

 
0.34%
 
Time deposits
 
3,717,556

 
46,706

 
1.26%
 
4,297,106

 
66,235

 
1.54%
 
Total Interest-bearing Deposits
 
9,625,993

 
56,895

 
0.59%
 
10,047,258

 
83,083

 
0.83%
 
Short-term borrowings
 
690,883

 
1,068

 
0.15%
 
495,791

 
746

 
0.15%
 
FHLB advances and long-term debt
 
933,727

 
45,205

 
4.84%
 
1,034,475

 
49,709

 
4.81%
 
Total Interest-bearing Liabilities
 
11,250,603

 
103,168

 
0.92%
 
11,577,524

 
133,538

 
1.15%
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
Demand deposits
 
2,756,826

 
 
 
 
 
2,400,293

 
 
 
 
 
Other
 
186,882

 
 
 
 
 
171,368

 
 
 
 
 
Total Liabilities
 
14,194,311

 
 
 
 
 
14,149,185

 
 
 
 
 
Shareholders' equity
 
2,050,994

 
 
 
 
 
1,953,396

 
 
 
 
 
Total Liabilities and Shareholders' Equity
 
$
16,245,305

 
 
 
 
 
$
16,102,581

 
 
 
 
 
Net interest income/net interest margin (fully taxable equivalent)
 
 
 
561,190

 
3.76%
 
 
 
576,232

 
3.90%
 
Tax equivalent adjustment
 
 
 
(16,862
)
 
 
 
 
 
(16,072
)
 
 
 
Net interest income
 
 
 
$
544,328

 
 
 
 
 
$
560,160

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended
 
 
 
 
 
 
 
 
 
 
 
December 31
 
 
 
 
 
 
 
 
 
 
 
2012
 
2011
 
% Change
 
 
 
 
 
 
Loans, by type:
 
 
 
 
 
 
 
Real estate - commercial mortgage
 
$
4,619,587

 
$
4,458,205

 
3.6
 %
 
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
 
3,551,056

 
3,681,321

 
(3.5
)%
 
 
 
 
 
 
 
Real estate - home equity
 
1,605,088

 
1,627,308

 
(1.4
)%
 
 
 
 
 
 
 
Real estate - residential mortgage
 
1,185,516

 
1,036,474

 
14.4
 %
 
 
 
 
 
 
 
Real estate - construction
 
620,166

 
700,071

 
(11.4
)%
 
 
 
 
 
 
 
Consumer
 
307,154

 
332,613

 
(7.7
)%
 
 
 
 
 
 
 
Leasing and other
 
77,780

 
68,537

 
13.5
 %
 
 
 
 
 
 
 
Total Loans, net of unearned income
 
$
11,966,347

 
$
11,904,529

 
0.5
 %
 
 
 
 
 
 
Deposits, by type:
 
 
 
 
 
 
 
Noninterest-bearing demand
 
$
2,756,826

 
$
2,400,293

 
14.9
 %
 
 
 
 
 
 
 
Interest-bearing demand
 
2,560,831

 
2,391,043

 
7.1
 %
 
 
 
 
 
 
 
Savings deposits
 
3,347,606

 
3,359,109

 
(0.3
)%
 
 
 
 
 
 
 
Time deposits
 
3,717,556

 
4,297,106

 
(13.5
)%
 
 
 
 
 
 
 
Total Deposits
 
$
12,382,819

 
$
12,447,551

 
(0.5
)%
 
 
 
 
 
 
Short-term borrowings, by type:
 
 
 
 
 
 
 
Customer repurchase agreements
 
$
206,842

 
$
208,144

 
(0.6
)%
 
 
 
 
 
 
 
Customer short-term promissory notes
 
138,632

 
174,624

 
(20.6
)%
 
 
 
 
 
 
 
Federal funds purchased and other
 
345,409

 
113,023

 
205.6
 %
 
 
 
 
 
 
 
Total Short-term Borrowings
 
$
690,883

 
$
495,791

 
39.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
 
 
 
 
 
ASSET QUALITY INFORMATION (UNAUDITED)
 
 
 
 
 
 
 
 
 
 
 
dollars in thousands
 
 
 
 
 
 
 
 
 
 
 
 
 
 Quarter Ended
 
Year Ended
 
 
 
 
 
 
 
 
 
 
Dec 31
 
Dec 31
 
Sep 30
 
Dec 31
 
 
 
 
 
 
 
 
 
 
2012
 
2011
 
2012
 
2012
 
2011
 
 
 
 
 
 
 
 
ALLOWANCE FOR CREDIT LOSSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
235,268

 
$
268,817

 
$
237,316

 
$
258,177

 
$
275,498

 
 
 
 
 
 
 
 
 
Loans charged off:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial - industrial, financial and agricultural
(12,711
)
 
(8,719
)
 
(10,471
)
 
(41,868
)
 
(52,301
)
 
 
 
 
 
 
 
 
 
    Real estate - commercial mortgage
(8,935
)
 
(3,189
)
 
(7,463
)
 
(51,988
)
 
(26,032
)
 
 
 
 
 
 
 
 
 
    Real estate - home equity
(3,464
)
 
(2,121
)
 
(1,688
)
 
(10,147
)
 
(6,397
)
 
 
 
 
 
 
 
 
 
    Consumer
(1,533
)
 
(683
)
 
(685
)
 
(3,323
)
 
(3,289
)
 
 
 
 
 
 
 
 
 
    Real estate - residential mortgage
(1,500
)
 
(18,316
)
 
(670
)
 
(4,509
)
 
(32,533
)
 
 
 
 
 
 
 
 
 
    Real estate - construction
(873
)
 
(8,716
)
 
(8,364
)
 
(26,250
)
 
(38,613
)
 
 
 
 
 
 
 
 
 
    Leasing and other
(585
)
 
(496
)
 
(625
)
 
(2,281
)
 
(2,168
)
 
 
 
 
 
 
 
 
 
Total loans charged off
(29,601
)
 
(42,240
)
 
(29,966
)
 
(140,366
)
 
(161,333
)
 
 
 
 
 
 
 
 
Recoveries of loans charged off:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial - industrial, financial and agricultural
1,236

 
432

 
1,693

 
4,282

 
2,521

 
 
 
 
 
 
 
 
 
    Real estate - commercial mortgage
85

 
—

 
1,317

 
3,371

 
1,967

 
 
 
 
 
 
 
 
 
    Real estate - home equity
63

 
37

 
343

 
704

 
63

 
 
 
 
 
 
 
 
 
    Consumer
274

 
335

 
202

 
1,107

 
1,368

 
 
 
 
 
 
 
 
 
    Real estate - residential mortgage
290

 
55

 
25

 
459

 
325

 
 
 
 
 
 
 
 
 
    Real estate - construction
171

 
509

 
1,040

 
2,814

 
1,746

 
 
 
 
 
 
 
 
 
    Leasing and other
153

 
232

 
298

 
891

 
1,022

 
 
 
 
 
 
 
 
 
Recoveries of loans previously charged off
2,272

 
1,600

 
4,918

 
13,628

 
9,012

 
 
 
 
 
 
 
 
Net loans charged off
(27,329
)
 
(40,640
)
 
(25,048
)
 
(126,738
)
 
(152,321
)
 
 
 
 
 
 
 
 
Provision for credit losses
17,500

 
30,000

 
23,000

 
94,000

 
135,000

 
 
 
 
 
 
 
 
Balance at end of period
$
225,439

 
$
258,177

 
$
235,268

 
$
225,439

 
$
258,177

 
 
 
 
 
 
 
 
 
Net charge-offs to average loans (annualized)
0.91
%
 
1.36
%
 
0.84
%
 
1.06
%
 
1.28
%
 
 
 
 
 
 
 
 
NON-PERFORMING ASSETS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-accrual loans
$
184,832

 
$
257,761

 
$
185,791

 
 
 
 
 
 
 
 
 
 
 
 
 
Loans 90 days past due and accruing
26,221

 
28,767

 
27,035

 
 
 
 
 
 
 
 
 
 
 
 
 
    Total non-performing loans
211,053

 
286,528

 
212,826

 
 
 
 
 
 
 
 
 
 
 
 
 
Other real estate owned
26,146

 
30,803

 
29,217

 
 
 
 
 
 
 
 
 
 
 
 
 
Total non-performing assets
$
237,199

 
$
317,331

 
$
242,043

 
 
 
 
 
 
 
 
 
 
 
 
NON-PERFORMING LOANS, BY TYPE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
$
66,954

 
$
80,944

 
$
73,879

 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
57,120

 
113,806

 
64,609

 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - residential mortgage
34,436

 
16,336

 
24,910

 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - construction
32,005

 
60,744

 
32,742

 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - home equity
15,519

 
11,207

 
12,644

 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer
5,000

 
3,384

 
3,942

 
 
 
 
 
 
 
 
 
 
 
 
 
Leasing
19

 
107

 
100

 
 
 
 
 
 
 
 
 
 
 
 
 
Total non-performing loans
$
211,053

 
$
286,528

 
$
212,826

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DELINQUENCY RATES, BY TYPE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
December 31, 2011
 
September 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
%
 
1.22
%
 
1.68
%
 
0.56
%
 
2.47
%
 
3.03
%
 
0.46
%
 
1.39
%
 
1.85
%
 
Commercial - industrial, financial and agricultural
0.46
%
 
1.85
%
 
2.31
%
 
0.41
%
 
2.23
%
 
2.64
%
 
0.45
%
 
2.11
%
 
2.56
%
 
Real estate - construction
0.23
%
 
5.44
%
 
5.67
%
 
1.55
%
 
9.87
%
 
11.42
%
 
0.95
%
 
5.48
%
 
6.43
%
 
Real estate - residential mortgage
2.56
%
 
2.74
%
 
5.30
%
 
3.38
%
 
1.49
%
 
4.87
%
 
2.66
%
 
2.05
%
 
4.71
%
 
Real estate - home equity
0.77
%
 
0.96
%
 
1.73
%
 
0.72
%
 
0.69
%
 
1.41
%
 
0.85
%
 
0.78
%
 
1.63
%
 
Consumer, leasing and other
1.72
%
 
1.27
%
 
2.99
%
 
1.92
%
 
0.90
%
 
2.82
%
 
1.85
%
 
1.07
%
 
2.92
%
 
Total
0.75
%
 
1.74
%
 
2.49
%
 
0.89
%
 
2.39
%
 
3.28
%
 
0.80
%
 
1.78
%
 
2.58
%
 
(1) Includes non-accrual loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSET QUALITY RATIOS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec 31
 
Dec 31
 
Sep 30
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2012
 
2011
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-accrual loans to total loans
1.52
%
 
2.15
%
 
1.56
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-performing assets to total loans and OREO
1.95
%
 
2.64
%
 
2.02
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-performing assets to total assets
1.44
%
 
1.94
%
 
1.49
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses to loans outstanding
1.86
%
 
2.16
%
 
1.97
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses to non-performing loans
106.82
%
 
90.11
%
 
110.54
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-performing assets to tangible common shareholders' equity and allowance for credit losses
13.39
%
 
18.60
%
 
13.80
%