EX-99.2 3 exhibit9929-30x14.htm SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED SEP. 30, 2014 Exhibit 99.2 9-30-14


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
 
 
2014
 
2013
 
2014
 
2013
 
2014
ASSETS
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
220,946

 
$
262,938

 
$
258,837

 
(16.0
)%
 
(14.6
)%
 
Other interest-earning assets
377,579

 
308,924

 
305,518

 
22.2
 %
 
23.6
 %
 
Loans held for sale
25,212

 
39,273

 
36,079

 
(35.8
)%
 
(30.1
)%
 
Investment securities
2,470,609

 
2,597,435

 
2,497,776

 
(4.9
)%
 
(1.1
)%
 
Loans, net of unearned income
13,030,405

 
12,780,899

 
12,839,511

 
2.0
 %
 
1.5
 %
 
Allowance for loan losses
(189,477
)
 
(210,486
)
 
(191,685
)
 
(10.0
)%
 
(1.2
)%
 
     Net loans
12,840,928

 
12,570,413

 
12,647,826

 
2.2
 %
 
1.5
 %
 
Premises and equipment
224,441

 
227,299

 
225,168

 
(1.3
)%
 
(0.3
)%
 
Accrued interest receivable
43,544

 
44,715

 
42,116

 
(2.6
)%
 
3.4
 %
 
Goodwill and intangible assets
532,117

 
533,918

 
532,432

 
(0.3
)%
 
(0.1
)%
 
Other assets
502,798

 
465,856

 
487,887

 
7.9
 %
 
3.1
 %
 
    Total Assets
$
17,238,174

 
$
17,050,771

 
$
17,033,639

 
1.1
 %
 
1.2
 %
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
Deposits
$
13,333,627

 
$
12,721,121

 
$
12,693,659

 
4.8
 %
 
5.0
 %
 
Short-term borrowings
564,952

 
1,198,577

 
1,008,307

 
(52.9
)%
 
(44.0
)%
 
Other liabilities
243,300

 
212,987

 
263,478

 
14.2
 %
 
(7.7
)%
 
FHLB advances and long-term debt
1,018,289

 
889,122

 
968,395

 
14.5
 %
 
5.2
 %
 
    Total Liabilities
15,160,168

 
15,021,807

 
14,933,839

 
0.9
 %
 
1.5
 %
 
Shareholders' equity
2,078,006

 
2,028,964

 
2,099,800

 
2.4
 %
 
(1.0
)%
 
    Total Liabilities and Shareholders' Equity
$
17,238,174

 
$
17,050,771

 
$
17,033,639

 
1.1
 %
 
1.2
 %
 
 
 
 
 
 
 
 
 
 
 
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
 
 
 
 
 
 
 
 
Loans, by type:
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
5,156,979

 
$
5,063,372

 
$
5,128,734

 
1.8
 %
 
0.6
 %
 
Commercial - industrial, financial and agricultural
3,691,262

 
3,645,270

 
3,601,721

 
1.3
 %
 
2.5
 %
 
Real estate - home equity
1,733,036

 
1,773,554

 
1,730,497

 
(2.3
)%
 
0.1
 %
 
Real estate - residential mortgage
1,372,033

 
1,327,469

 
1,361,976

 
3.4
 %
 
0.7
 %
 
Real estate - construction
687,728

 
577,342

 
634,018

 
19.1
 %
 
8.5
 %
 
Consumer
278,219

 
296,142

 
280,557

 
(6.1
)%
 
(0.8
)%
 
Leasing and other
111,148

 
97,749

 
102,008

 
13.7
 %
 
9.0
 %
 
Total Loans, net of unearned income
$
13,030,405

 
$
12,780,898

 
$
12,839,511

 
2.0
 %
 
1.5
 %
Deposits, by type:
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand
$
3,556,810

 
$
3,338,075

 
$
3,484,125

 
6.6
 %
 
2.1
 %
 
Interest-bearing demand
3,164,514

 
2,986,549

 
2,855,511

 
6.0
 %
 
10.8
 %
 
Savings deposits
3,620,919

 
3,371,923

 
3,338,018

 
7.4
 %
 
8.5
 %
 
Time deposits
2,991,384

 
3,024,574

 
3,016,005

 
(1.1
)%
 
(0.8
)%
 
Total Deposits
$
13,333,627

 
$
12,721,121

 
$
12,693,659

 
4.8
 %
 
5.0
 %
Short-term borrowings, by type:
 
 
 
 
 
 
 
 
 
Customer repurchase agreements
$
195,121

 
$
209,800

 
$
212,930

 
(7.0
)%
 
(8.4
)%
 
Customer short-term promissory notes
78,225

 
95,503

 
86,366

 
(18.1
)%
 
(9.4
)%
 
Federal funds purchased
6,606

 
493,274

 
384,011

 
(98.7
)%
 
(98.3
)%
 
Short-term FHLB advances
285,000

 
400,000

 
325,000

 
(28.8
)%
 
(12.3
)%
 
Total Short-term Borrowings
$
564,952

 
$
1,198,577

 
$
1,008,307

 
(52.9
)%
 
(44.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
 
 
 
 
 
 
in thousands, except per-share data and percentages
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 % Change from
 
Nine Months Ended
 
 
 
 
 
 
 
September 30
 
September 30
 
June 30
 
Sep 30
 
Jun 30
 
September 30
 
 
 
 
 
 
 
2014
 
2013
 
2014
 
2013
 
2014
 
2014
 
2013
 
% Change
 
Interest Income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
 
$
149,790

 
$
152,832

 
$
147,902

 
(2.0
)%
 
1.3
 %
 
$
446,484

 
$
457,232

 
(2.4
)%
 
 
Interest expense
 
 
20,424

 
20,299

 
20,004

 
0.6
 %
 
2.1
 %
 
59,655

 
62,990

 
(5.3
)%
 
 
    Net Interest Income
 
 
129,366

 
132,533

 
127,898

 
(2.4
)%
 
1.1
 %
 
386,829

 
394,242

 
(1.9
)%
 
 
Provision for credit losses
 
 
3,500

 
9,500

 
3,500

 
(63.2
)%
 
—
 %
 
9,500

 
38,000

 
(75.0
)%
 
 
    Net Interest Income after Provision
 
 
125,866

 
123,033

 
124,398

 
2.3
 %
 
1.2
 %
 
377,329

 
356,242

 
5.9
 %
 
Non-Interest Income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service charges on deposit accounts
 
 
12,801

 
13,938

 
12,552

 
(8.2
)%
 
2.0
 %
 
37,064

 
42,700

 
(13.2
)%
 
 
Investment management and trust services
 
 
11,120

 
10,420

 
11,339

 
6.7
 %
 
(1.9
)%
 
33,417

 
31,117

 
7.4
 %
 
 
Other service charges and fees
 
 
9,954

 
9,518

 
10,526

 
4.6
 %
 
(5.4
)%
 
29,407

 
27,536

 
6.8
 %
 
 
Mortgage banking income
 
 
4,038

 
7,123

 
5,741

 
(43.3
)%
 
(29.7
)%
 
13,384

 
26,293

 
(49.1
)%
 
 
Investment securities gains
 
 
81

 
2,633

 
1,112

 
(96.9
)%
 
(92.7
)%
 
1,193

 
7,971

 
(85.0
)%
 
 
Other
 
 
3,906

 
3,725

 
3,602

 
4.9
 %
 
8.4
 %
 
10,813

 
11,315

 
(4.4
)%
 
 
    Total Non-Interest Income
 
 
41,900

 
47,357

 
44,872

 
(11.5
)%
 
(6.6
)%
 
125,278

 
146,932

 
(14.7
)%
 
Non-Interest Expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
 
62,434

 
63,344

 
63,623

 
(1.4
)%
 
(1.9
)%
 
185,623

 
188,046

 
(1.3
)%
 
 
Net occupancy expense
 
 
11,582

 
11,519

 
11,464

 
0.5
 %
 
1.0
 %
 
36,649

 
34,810

 
5.3
 %
 
 
Other outside services
 
 
8,632

 
5,048

 
7,240

 
71.0
 %
 
19.2
 %
 
19,684

 
13,223

 
48.9
 %
 
 
Data processing
 
 
4,689

 
4,757

 
4,331

 
(1.4
)%
 
8.3
 %
 
12,816

 
13,169

 
(2.7
)%
 
 
Software
 
 
3,353

 
3,268

 
3,209

 
2.6
 %
 
4.5
 %
 
9,487

 
9,110

 
4.1
 %
 
 
Equipment expense
 
 
3,307

 
3,646

 
3,360

 
(9.3
)%
 
(1.6
)%
 
10,269

 
11,447

 
(10.3
)%
 
 
Professional fees
 
 
3,252

 
3,329

 
3,559

 
(2.3
)%
 
(8.6
)%
 
9,715

 
9,771

 
(0.6
)%
 
 
FDIC insurance expense
 
 
2,882

 
2,918

 
2,615

 
(1.2
)%
 
10.2
 %
 
8,186

 
8,766

 
(6.6
)%
 
 
Marketing
 
 
1,798

 
2,251

 
2,337

 
(20.1
)%
 
(23.1
)%
 
5,719

 
6,045

 
(5.4
)%
 
 
Other real estate owned and repossession expense
 
 
1,303

 
1,453

 
748

 
(10.3
)%
 
74.2
 %
 
3,034

 
6,248

 
(51.4
)%
 
 
Operating risk loss
 
 
1,242

 
3,297

 
716

 
(62.3
)%
 
73.5
 %
 
3,786

 
6,923

 
(45.3
)%
 
 
Intangible amortization
 
 
314

 
534

 
315

 
(41.2
)%
 
(0.3
)%
 
944

 
1,603

 
(41.1
)%
 
 
Other
 
 
11,010

 
11,241

 
12,657

 
(2.1
)%
 
(13.0
)%
 
35,614

 
35,510

 
0.3
 %
 
 
    Total Non-Interest Expense
 
 
115,798

 
116,605

 
116,174

 
(0.7
)%
 
(0.3
)%
 
341,526

 
344,671

 
(0.9
)%
 
 
    Income Before Income Taxes
 
 
51,968

 
53,785

 
53,096

 
(3.4
)%
 
(2.1
)%
 
161,081

 
158,503

 
1.6
 %
 
 
Income tax expense
 
 
13,402

 
13,837

 
13,500

 
(3.1
)%
 
(0.7
)%
 
41,136

 
38,746

 
6.2
 %
 
 
    Net Income
 
 
$
38,566

 
$
39,948

 
$
39,596

 
(3.5
)%
 
(2.6
)%
 
$
119,945

 
$
119,757

 
0.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PER SHARE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Basic
 
 
$
0.21

 
$
0.21

 
$
0.21

 
—
 %
 
—
 %
 
$
0.64

 
$
0.62

 
3.2
 %
 
 
    Diluted
 
 
0.21

 
0.21

 
0.21

 
—
 %
 
—
 %
 
0.64

 
0.61

 
4.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends
 
 
$
0.08

 
$
0.08

 
$
0.08

 
—
 %
 
—
 %
 
$
0.24

 
$
0.24

 
—
 %
 
 
Shareholders' equity
 
 
11.22

 
10.55

 
11.11

 
6.4
 %
 
1.0
 %
 
11.22

 
10.55

 
6.4
 %
 
 
Shareholders' equity (tangible)
 
 
8.35

 
7.77

 
8.29

 
7.5
 %
 
0.7
 %
 
8.35

 
7.77

 
7.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares (basic)
 
 
186,109

 
192,251

 
188,139

 
(3.2
)%
 
(1.1
)%
 
187,893

 
193,926

 
(3.1
)%
 
 
Weighted average shares (diluted)
 
 
186,955

 
193,259

 
189,182

 
(3.3
)%
 
(1.2
)%
 
188,863

 
194,926

 
(3.1
)%
 
 
Shares outstanding, end of period
 
 
185,158

 
192,332

 
189,033

 
(3.7
)%
 
(2.0
)%
 
185,158

 
192,332

 
(3.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED FINANCIAL RATIOS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
 
 
0.90
%
 
0.93
%
 
0.94
%
 
 
 
 
 
0.95
%
 
0.95
%
 
 
 
 
Return on average shareholders' equity
 
 
7.32
%
 
7.81
%
 
7.63
%
 
 
 
 
 
7.72
%
 
7.79
%
 
 
 
 
Return on average shareholders' equity (tangible)
 
 
9.88
%
 
10.69
%
 
10.30
%
 
 
 
 
 
10.43
%
 
10.62
%
 
 
 
 
Net interest margin
 
 
3.39
%
 
3.45
%
 
3.41
%
 
 
 
 
 
3.42
%
 
3.51
%
 
 
 
 
Efficiency ratio
 
 
65.80
%
 
63.92
%
 
65.85
%
 
 
 
 
 
65.02
%
 
62.81
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 







FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
 
 
 
 
 
dollars in thousands
 
 
 
 
 
 
 
 
 Three Months Ended
 
 
September 30, 2014
 
September 30, 2013
 
June 30, 2014
 
 
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
$
12,922,821

 
$
136,773

 
4.20%
 
$
12,728,162

 
$
139,141

 
4.34%
 
$
12,795,747

 
$
134,387

 
4.21%
 
Taxable investment securities
2,181,099

 
12,278

 
2.25%
 
2,446,583

 
12,977

 
2.12%
 
2,211,004

 
12,418

 
2.25%
 
Tax-exempt investment securities
256,303

 
3,414

 
5.33%
 
284,372

 
3,581

 
5.04%
 
270,482

 
3,534

 
5.23%
 
Equity securities
34,002

 
438

 
5.12%
 
35,999

 
435

 
4.82%
 
33,922

 
419

 
4.95%
 
Total Investment Securities
2,471,404

 
16,130

 
2.61%
 
2,766,954

 
16,993

 
2.46%
 
2,515,408

 
16,371

 
2.60%
 
Loans held for sale
23,699

 
237

 
4.01%
 
36,450

 
382

 
4.19%
 
17,540

 
214

 
4.87%
 
Other interest-earning assets
293,286

 
976

 
1.33%
 
236,185

 
659

 
1.12%
 
238,921

 
1,207

 
2.02%
 
Total Interest-earning Assets
15,711,210

 
154,116

 
3.90%
 
15,767,751

 
157,175

 
3.96%
 
15,567,616

 
152,179

 
3.92%
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
203,134

 
 
 
 
 
210,525

 
 
 
 
 
198,291

 
 
 
 
 
Premises and equipment
224,241

 
 
 
 
 
224,837

 
 
 
 
 
224,586

 
 
 
 
 
Other assets
1,055,521

 
 
 
 
 
1,009,162

 
 
 
 
 
1,037,654

 
 
 
 
 
Less: allowance for loan losses
(192,163
)
 
 
 
 
 
(220,342
)
 
 
 
 
 
(196,462
)
 
 
 
 
 
Total Assets
$
17,001,943

 
 
 
 
 
$
16,991,933

 
 
 
 
 
$
16,831,685

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
$
3,047,191

 
$
953

 
0.12%
 
$
2,895,156

 
$
938

 
0.13%
 
$
2,914,887

 
$
904

 
0.12%
 
Savings deposits
3,468,958

 
1,061

 
0.12%
 
3,359,795

 
1,015

 
0.12%
 
3,355,929

 
1,031

 
0.12%
 
Time deposits
3,009,225

 
6,984

 
0.92%
 
3,065,210

 
6,790

 
0.88%
 
3,012,061

 
6,750

 
0.90%
 
Total Interest-bearing Deposits
9,525,374

 
8,998

 
0.37%
 
9,320,161

 
8,743

 
0.37%
 
9,282,877

 
8,685

 
0.38%
 
Short-term borrowings
667,397

 
297

 
0.18%
 
1,337,742

 
691

 
0.20%
 
1,047,684

 
540

 
0.21%
 
FHLB advances and long-term debt
995,486

 
11,129

 
4.45%
 
889,141

 
10,865

 
4.87%
 
894,511

 
10,779

 
4.83%
 
Total Interest-bearing Liabilities
11,188,257

 
20,424

 
0.73%
 
11,547,044

 
20,299

 
0.70%
 
11,225,072

 
20,004

 
0.71%
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
3,514,033

 
 
 
 
 
3,221,648

 
 
 
 
 
3,322,195

 
 
 
 
 
Other
210,194

 
 
 
 
 
194,163

 
 
 
 
 
202,520

 
 
 
 
 
Total Liabilities
14,912,484

 
 
 
 
 
14,962,855

 
 
 
 
 
14,749,787

 
 
 
 
 
Shareholders' equity
2,089,459

 
 
 
 
 
2,029,078

 
 
 
 
 
2,081,898

 
 
 
 
 
Total Liabilities and Shareholders' Equity
$
17,001,943

 
 
 
 
 
$
16,991,933

 
 
 
 
 
$
16,831,685

 
 
 
 
 
Net interest income/net interest margin (fully taxable equivalent)
 
 
133,692

 
3.39%
 
 
 
136,876

 
3.45%
 
 
 
132,175

 
3.41%
 
Tax equivalent adjustment
 
 
(4,326
)
 
 
 
 
 
(4,343
)
 
 
 
 
 
(4,277
)
 
 
 
Net interest income
 
 
$
129,366

 
 
 
 
 
$
132,533

 
 
 
 
 
$
127,898

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
% Change from
 
 
 
 
 
 
 
 
 
 
September 30
 
September 30
 
June 30
 
September 30
 
June 30
 
 
 
 
 
 
 
 
 
 
2014
 
2013
 
2014
 
2013
 
2014
 
 
 
 
 
 
 
 
Loans, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
5,114,221

 
$
4,961,871

 
$
5,138,537

 
3.1
 %
 
(0.5
)%
 
 
 
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
3,657,047

 
3,706,113

 
3,617,977

 
(1.3
)%
 
1.1
 %
 
 
 
 
 
 
 
 
 
Real estate - home equity
1,727,253

 
1,767,095

 
1,735,767

 
(2.3
)%
 
(0.5
)%
 
 
 
 
 
 
 
 
 
Real estate - residential mortgage
1,369,087

 
1,323,972

 
1,339,034

 
3.4
 %
 
2.2
 %
 
 
 
 
 
 
 
 
 
Real estate - construction
663,922

 
576,222

 
588,176

 
15.2
 %
 
12.9
 %
 
 
 
 
 
 
 
 
 
Consumer
284,630

 
299,057

 
276,444

 
(4.8
)%
 
3.0
 %
 
 
 
 
 
 
 
 
 
Leasing and other
106,661

 
93,832

 
99,812

 
13.7
 %
 
6.9
 %
 
 
 
 
 
 
 
 
 
Total Loans, net of unearned income
$
12,922,821

 
$
12,728,162

 
$
12,795,747

 
1.5
 %
 
1.0
 %
 
 
 
 
 
 
 
 
Deposits, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand
$
3,514,033

 
$
3,221,648

 
$
3,322,195

 
9.1
 %
 
5.8
 %
 
 
 
 
 
 
 
 
 
Interest-bearing demand
3,047,191

 
2,895,156

 
2,914,887

 
5.3
 %
 
4.5
 %
 
 
 
 
 
 
 
 
 
Savings deposits
3,468,958

 
3,359,795

 
3,355,929

 
3.2
 %
 
3.4
 %
 
 
 
 
 
 
 
 
 
Time deposits
3,009,225

 
3,065,210

 
3,012,061

 
(1.8
)%
 
(0.1
)%
 
 
 
 
 
 
 
 
 
Total Deposits
$
13,039,407

 
$
12,541,809

 
$
12,605,072

 
4.0
 %
 
3.4
 %
 
 
 
 
 
 
 
 
Short-term borrowings, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer repurchase agreements
$
202,809

 
$
196,503

 
$
216,212

 
3.2
 %
 
(6.2
)%
 
 
 
 
 
 
 
 
 
Customer short-term promissory notes
83,734

 
91,573

 
81,823

 
(8.6
)%
 
2.3
 %
 
 
 
 
 
 
 
 
 
Federal funds purchased
224,930

 
559,992

 
444,429

 
(59.8
)%
 
(49.4
)%
 
 
 
 
 
 
 
 
 
Short-term FHLB advances and other borrowings
155,924

 
489,674

 
305,220

 
(68.2
)%
 
(48.9
)%
 
 
 
 
 
 
 
 
 
Total Short-term Borrowings
$
667,397

 
$
1,337,742

 
$
1,047,684

 
(50.1
)%
 
(36.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
 
 
 
 
 
 
dollars in thousands
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30
 
 
 
2014
 
2013
 
 
 
Average
 
 
 
 
 
Average
 
 
 
 
 
 
 
Balance
 
Interest (1)
 
Yield/Rate
 
Balance
 
Interest (1)
 
Yield/Rate
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
Loans, net of unearned income
 
$
12,827,563

 
$
405,904

 
4.23
 %
 
$
12,506,393

 
$
414,091

 
4.43
%
 
Taxable investment securities
 
2,216,344

 
37,962

 
2.28
 %
 
2,426,015

 
40,890

 
2.25
%
 
Tax-exempt investment securities
 
268,604

 
10,561

 
5.24
 %
 
285,638

 
11,003

 
5.14
%
 
Equity securities
 
33,949

 
1,286

 
5.06
 %
 
40,352

 
1,416

 
4.69
%
 
Total Investment Securities
 
2,518,897

 
49,809

 
2.64
 %
 
2,752,005

 
53,309

 
2.58
%
 
Loans held for sale
 
18,259

 
585

 
4.27
 %
 
42,122

 
1,261

 
3.99
%
 
Other interest-earning assets
 
263,797

 
3,065

 
1.55
 %
 
217,975

 
1,527

 
0.93
%
 
Total Interest-earning Assets
 
15,628,516

 
459,363

 
3.93
 %
 
15,518,495

 
470,188

 
4.05
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-earning assets:
 
 
 
 
 
 
 
Cash and due from banks
 
200,368

 
 
 
 
 
206,403

 
 
 
 
 
Premises and equipment
 
225,033

 
 
 
 
 
225,733

 
 
 
 
 
Other assets
 
1,041,834

 
 
 
 
 
1,047,122

 
 
 
 
 
Less: allowance for loan losses
 
(197,235
)
 
 
 
 
 
(223,220
)
 
 
 
 
 
Total Assets
 
$
16,898,516

 
 
 
 
 
$
16,774,533

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
Demand deposits
 
$
2,969,470

 
$
2,766

 
0.12
 %
 
$
2,773,917

 
$
2,687

 
0.13
%
 
Savings deposits
 
3,392,681

 
3,127

 
0.12
 %
 
3,348,413

 
3,054

 
0.12
%
 
Time deposits
 
2,984,861

 
19,686

 
0.88
 %
 
3,184,281

 
22,901

 
0.96
%
 
Total Interest-bearing Deposits
 
9,347,012

 
25,579

 
0.37
 %
 
9,306,611

 
28,642

 
0.41
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings
 
972,694

 
1,470

 
0.20
 %
 
1,228,882

 
1,900

 
0.20
%
 
FHLB advances and long-term debt
 
924,920

 
32,606

 
4.71
 %
 
889,826

 
32,448

 
4.87
%
 
Total Interest-bearing Liabilities
 
11,244,626

 
59,655

 
0.71
 %
 
11,425,319

 
62,990

 
0.74
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
Demand deposits
 
3,360,876

 
 
 
 
 
3,103,381

 
 
 
 
 
Other
 
214,826

 
 
 
 
 
190,976

 
 
 
 
 
Total Liabilities
 
14,820,328

 
 
 
 
 
14,719,676

 
 
 
 
 
Shareholders' equity
 
2,078,188

 
 
 
 
 
2,054,857

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Liabilities and Shareholders' Equity
 
$
16,898,516

 
 
 
 
 
$
16,774,533

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income/net interest margin (fully taxable equivalent)
 
 
 
399,708

 
3.42
 %
 
 
 
407,198

 
3.51
%
 
Tax equivalent adjustment
 
 
 
(12,879
)
 
 
 
 
 
(12,956
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
 
 
$
386,829

 
 
 
 
 
$
394,242

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
 
 
 
 
 
 
 
 
 
 
2014
 
2013
 
% Change
 
 
 
 
 
 
Loans, by type:
 
 
 
 
 
 
 
Real estate - commercial mortgage
 
$
5,112,735

 
$
4,796,557

 
6.6
 %
 
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
 
3,637,440

 
3,694,612

 
(1.5
)%
 
 
 
 
 
 
 
Real estate - home equity
 
1,739,352

 
1,721,041

 
1.1
 %
 
 
 
 
 
 
 
Real estate - residential mortgage
 
1,348,269

 
1,305,434

 
3.3
 %
 
 
 
 
 
 
 
Real estate - construction
 
609,803

 
594,991

 
2.5
 %
 
 
 
 
 
 
 
Consumer
 
278,697

 
303,127

 
(8.1
)%
 
 
 
 
 
 
 
Leasing and other
 
101,267

 
90,631

 
11.7
 %
 
 
 
 
 
 
 
Total Loans, net of unearned income
 
$
12,827,563

 
$
12,506,393

 
2.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits, by type:
 
 
 
 
 
 
 
Noninterest-bearing demand
 
$
3,360,876

 
$
3,103,381

 
8.3
 %
 
 
 
 
 
 
 
Interest-bearing demand
 
2,969,470

 
2,773,917

 
7.0
 %
 
 
 
 
 
 
 
Savings deposits
 
3,392,681

 
3,348,413

 
1.3
 %
 
 
 
 
 
 
 
Time deposits
 
2,984,861

 
3,184,281

 
(6.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Deposits
 
$
12,707,888

 
$
12,409,992

 
2.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings, by type:
 
 
 
 
 
 
 
Customer repurchase agreements
 
$
202,184

 
$
183,432

 
10.2
 %
 
 
 
 
 
 
 
Customer short-term promissory notes
 
89,119

 
100,532

 
(11.4
)%
 
 
 
 
 
 
 
Federal funds purchased
 
361,162

 
681,576

 
(47.0
)%
 
 
 
 
 
 
 
Short-term FHLB advances and other borrowings
 
320,229

 
263,342

 
21.6
 %
 
 
 
 
 
 
 
Total Short-term Borrowings
 
$
972,694

 
$
1,228,882

 
(20.8
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
 
 
 
 
 
ASSET QUALITY INFORMATION (UNAUDITED)
 
 
 
 
 
 
 
 
 
 
 
dollars in thousands
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
 
 
 
 
 
 
 
Sep 30
 
Sep 30
 
Jun 30
 
Sep 30
 
Sep 30
 
 
 
 
 
 
 
 
 
 
2014
 
2013
 
2014
 
2014
 
2013
 
 
 
 
 
 
 
 
ALLOWANCE FOR CREDIT LOSSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
193,442

 
$
217,626

 
$
199,006

 
$
204,917

 
$
225,439

 
 
 
 
 
 
 
 
 
Loans charged off:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial - industrial, financial and agricultural
(5,167
)
 
(9,394
)
 
(5,512
)
 
(15,804
)
 
(24,856
)
 
 
 
 
 
 
 
 
 
    Consumer and home equity
(2,030
)
 
(2,838
)
 
(1,683
)
 
(6,115
)
 
(8,191
)
 
 
 
 
 
 
 
 
 
    Real estate - commercial mortgage
(1,557
)
 
(3,724
)
 
(2,141
)
 
(5,084
)
 
(13,050
)
 
 
 
 
 
 
 
 
 
    Real estate - construction
(313
)
 
(598
)
 
(218
)
 
(745
)
 
(5,181
)
 
 
 
 
 
 
 
 
 
    Leasing and other
(306
)
 
(787
)
 
(833
)
 
(1,434
)
 
(2,037
)
 
 
 
 
 
 
 
 
 
    Real estate - residential mortgage
(231
)
 
(767
)
 
(1,089
)
 
(2,166
)
 
(8,282
)
 
 
 
 
 
 
 
 
 
    Total loans charged off
(9,604
)
 
(18,108
)
 
(11,476
)
 
(31,348
)
 
(61,597
)
 
 
 
 
 
 
 
 
Recoveries of loans previously charged off:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial - industrial, financial and agricultural
1,013

 
2,295

 
775

 
2,532

 
3,430

 
 
 
 
 
 
 
 
 
    Consumer and home equity
784

 
492

 
579

 
1,928

 
1,927

 
 
 
 
 
 
 
 
 
    Real estate - commercial mortgage
1,167

 
185

 
430

 
1,641

 
2,754

 
 
 
 
 
 
 
 
 
    Real estate - construction
470

 
379

 
158

 
852

 
1,794

 
 
 
 
 
 
 
 
 
    Leasing and other
241

 
224

 
362

 
767

 
649

 
 
 
 
 
 
 
 
 
    Real estate - residential mortgage
95

 
245

 
108

 
319

 
442

 
 
 
 
 
 
 
 
 
    Recoveries of loans previously charged off
3,770

 
3,820

 
2.412

 
8,039

 
10,996

 
 
 
 
 
 
 
 
Net loans charged off
(5,834
)
 
(14,288
)
 
(9.064
)
 
(23,309
)
 
(50,601
)
 
 
 
 
 
 
 
 
Provision for credit losses
3,500

 
9,500

 
3,500

 
9,500

 
38,000

 
 
 
 
 
 
 
 
Balance at end of period
$
191,108

 
$
212,838

 
$
193,442

 
$
191,108

 
$
212,838

 
 
 
 
 
 
 
 
Net charge-offs to average loans (annualized)
0.18
%
 
0.45
%
 
0.28
%
 
0.24
%
 
0.54
%
 
 
 
 
 
 
 
 
NON-PERFORMING ASSETS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-accrual loans
$
126,420

 
$
143,012

 
$
129,934

 
 
 
 
 
 
 
 
 
 
 
 
 
Loans 90 days past due and accruing
17,428

 
25,271

 
19,378

 
 
 
 
 
 
 
 
 
 
 
 
 
    Total non-performing loans
143,848

 
168,283

 
149,312

 
 
 
 
 
 
 
 
 
 
 
 
 
Other real estate owned
13,489

 
18,173

 
13,482

 
 
 
 
 
 
 
 
 
 
 
 
 
Total non-performing assets
$
157,337

 
$
186,456

 
$
162,794

 
 
 
 
 
 
 
 
 
 
 
 
NON-PERFORMING LOANS, BY TYPE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
44,602

 
$
42,623

 
$
44,015

 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
33,277

 
45,184

 
38,163

 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - residential mortgage
28,135

 
34,309

 
27,887

 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - construction
19,860

 
24,396

 
20,268

 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and home equity
17,586

 
21,704

 
18,919

 
 
 
 
 
 
 
 
 
 
 
 
 
Leasing
388

 
67

 
60

 
 
 
 
 
 
 
 
 
 
 
 
 
Total non-performing loans
$
143,848

 
$
168,283

 
$
149,312

 
 
 
 
 
 
 
 
 
 
 
 
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real-estate - residential mortgage
$
30,850

 
$
27,820

 
$
31,184

 
 
 
 
 
 
 
 
 
 
 
 
 
Real-estate - commercial mortgage
18,869

 
22,644

 
19,398

 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - construction
9,251

 
9,841

 
8,561

 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
5,115

 
8,184

 
6,953

 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and home equity
2,927

 
1,678

 
2,838

 
 
 
 
 
 
 
 
 
 
 
 
 
Total accruing TDRs
$
67,012

 
$
70,167

 
$
68,934

 
 
 
 
 
 
 
 
 
 
 
 
 
Non-accrual TDRs (1)
27,724

 
30,501

 
25,526

 
 
 
 
 
 
 
 
 
 
 
 
 
Total TDRs
$
94,736

 
$
100,668

 
$
94,460

 
 
 
 
 
 
 
 
 
 
 
 
(1) Included within non-accrual loans above.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



DELINQUENCY RATES, BY TYPE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2014
 
September 30, 2013
 
June 30, 2014
 
 
 31-89 Days
 
 ≥90 Days (2)
 
 Total
 
 31-89 Days
 
 ≥90 Days (2)
 
 Total
 
 31-89 Days
 
 ≥90 Days (2)
 
 Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
0.48
%
 
0.86
%
 
1.34
%
 
0.40
%
 
0.84
%
 
1.24
%
 
0.30
%
 
0.86
%
 
1.16
%
 
Commercial - industrial, financial and agricultural
0.28
%
 
0.91
%
 
1.19
%
 
0.32
%
 
1.24
%
 
1.56
%
 
0.47
%
 
1.05
%
 
1.52
%
 
Real estate - construction
0.03
%
 
2.89
%
 
2.92
%
 
0.40
%
 
4.22
%
 
4.62
%
 
0.10
%
 
3.20
%
 
3.30
%
 
Real estate - residential mortgage
1.81
%
 
2.06
%
 
3.87
%
 
1.82
%
 
2.58
%
 
4.40
%
 
1.78
%
 
2.05
%
 
3.83
%
 
Consumer, home equity, leasing and other
0.74
%
 
0.85
%
 
1.59
%
 
1.19
%
 
1.00
%
 
2.19
%
 
0.84
%
 
0.90
%
 
1.74
%
 
Total
0.58
%
 
1.11
%
 
1.69
%
 
0.66
%
 
1.31
%
 
1.97
%
 
0.58
%
 
1.17
%
 
1.75
%
(2) Includes non-accrual loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSET QUALITY RATIOS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sep 30
 
Sep 30
 
Jun 30
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2014
 
2013
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-accrual loans to total loans
0.97
%
 
1.12
%
 
1.01
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-performing assets to total loans and OREO
1.21
%
 
1.46
%
 
1.27
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-performing assets to total assets
0.91
%
 
1.09
%
 
0.96
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses to loans outstanding
1.47
%
 
1.67
%
 
1.51
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses to non-performing loans
132.85
%
 
126.48
%
 
129.56
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-performing assets to tangible common shareholders' equity and allowance for credit losses
9.06
%
 
10.92
%
 
9.25
%
 
 
 
 
 
 
 
 
 
 
 
 





FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (UNAUDITED)
 
 
 
 
 
 
in thousands, except per share data and percentages
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Explanatory note:
This press release contains certain financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's quarterly results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
 
 
 
 
Sep 30
 
Sep 30
 
Jun 30
 
Sep 30
 
Sep 30
 
 
 
 
 
 
 
2014
 
2013
 
2014
 
2014
 
2013
Shareholders' equity (tangible), per share
 
 
 
 
 
 
 
 
 
 
 
Shareholders' equity
 
 
$
2,078,006

 
$
2,028,964

 
$
2,099,800

 
 
 
 
Less: Goodwill and intangible assets
 
 
(532,117
)
 
(533,918
)
 
(532,432
)
 
 
 
 
Tangible shareholders' equity (numerator)
 
 
$
1,545,889

 
$
1,495,046

 
$
1,567,368

 
 
 
 
Shares outstanding, end of period (denominator)
 
 
185,158

 
192,332

 
189,033

 
 
 
 
Shareholders' equity (tangible), per share
 
 
$
8.35

 
$
7.77

 
$
8.29

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average common shareholders' equity (tangible)
 
 
 
 
 
 
 
 
 
 
Net income
 
 
$
38,566

 
$
39,948

 
$
39,596

 
$
119,945

 
$
119,757

Plus: Intangible amortization, net of tax
 
 
203

 
347

 
204

 
614

 
1,042

Numerator
 
$
38,769

 
$
40,295

 
$
39,800

 
$
120,559

 
$
120,799

Average shareholders' equity
 
 
$
2,089,459

 
$
2,029,078

 
$
2,081,898

 
$
2,078,188

 
$
2,054,857

Less: Average goodwill and intangible assets
 
 
(532,271
)
 
(534,179
)
 
(532,585
)
 
(532,584
)
 
(534,712
)
Average tangible shareholders' equity (denominator)
 
$
1,557,188

 
$
1,494,899

 
$
1,549,313

 
$
1,545,604

 
$
1,520,145

Return on average common shareholders' equity (tangible), annualized
 
9.88
%
 
10.69
%
 
10.30
%
 
10.43
%
 
10.62
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Efficiency ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest expense
 
 
$
115,798

 
$
116,605

 
$
116,174

 
$
341,526

 
$
344,671

Less: Intangible amortization
 
 
(314
)
 
(534
)
 
(315
)
 
(944
)
 
(1,603
)
Numerator
 
 
$
115,484

 
$
116,071

 
$
115,859

 
$
340,582

 
$
343,068

Net interest income (fully taxable equivalent)
 
 
$
133,692

 
$
136,876

 
$
132,175

 
$
399,708

 
$
407,198

Plus: Total Non-interest income
 
 
41,900

 
47,357

 
44,872

 
125,278

 
146,932

Less: Investment securities gains
 
 
(81
)
 
(2,633
)
 
(1,112
)
 
(1,193
)
 
(7,971
)
Denominator
 
 
$
175,511

 
$
181,600

 
$
175,935

 
$
523,793

 
$
546,159

Efficiency ratio
 
 
65.80
%
 
63.92
%
 
65.85
%
 
65.02
%
 
62.81
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-performing assets to tangible common shareholders' equity and allowance for credit losses
 
 
 
 
 
 
Non-performing assets (numerator)
 
 
$
157,337

 
$
186,456

 
$
162,794

 
 
 
 
Tangible shareholders' equity
 
 
$
1,545,889

 
$
1,495,046

 
$
1,567,368

 
 
 
 
Plus: Allowance for credit losses
 
 
191,108

 
212,838

 
193,442

 
 
 
 
Tangible shareholders' equity and allowance for credit losses (denominator)
$
1,736,997

 
$
1,707,884

 
$
1,760,810

 
 
 
 
Non-performing assets to tangible common shareholders' equity and allowance for credit losses
9.06
%
 
10.92
%
 
9.25
%