-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RZdFQqMfR7TPe5n7IaygZlQ3X63a6P059aCI9+quu3cRgbpqN5A/0W8r/kHADfXk pLJvbNwvERqnkNvsKZxVaQ== 0000893220-07-001340.txt : 20070417 0000893220-07-001340.hdr.sgml : 20070417 20070417164100 ACCESSION NUMBER: 0000893220-07-001340 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20070417 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070417 DATE AS OF CHANGE: 20070417 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: 07771297 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 w33432e8vk.htm FORM 8-K e8vk
 

 
 
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: April 17, 2007
(Date of earliest event reported): April 17, 2007
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:
     o Written communications pursuant to Rule 425 under the Securities Act
     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act
     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
     o Pre-commencement to communications pursuant to Rule 13e-4(c) under the Exchange Act
 
 

 


 

Item 2.02 — Results of Operations and Financial Condition
On April 17, 2007 Fulton Financial Corporation announced its results of operations for the first quarter ended March 31, 2007. 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 April 17, 2007.
 
   
99.2
  Supplemental financial information for the quarter ended March 31, 2007.

2


 

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: April 17, 2007   FULTON FINANCIAL CORPORATION    
 
           
 
  By:   /s/ Charles J. Nugent    
 
           
 
      Charles J. Nugent    
 
      Senior Executive Vice President and    
 
      Chief Financial Officer    

3

EX-99.1 2 w33432exv99w1.htm EARNINGS RELEASE DATED APRIL 17,2007 exv99w1
 

EXHIBIT 99.1
(FULTON FINANCIAL LOGO)
FOR IMMEDIATE RELEASE   Media Contact : Laura J. Wakeley
    717-291-2739
Fulton Financial reports first quarter earnings
     (April 17) – Lancaster, PA — Fulton Financial Corporation (Nasdaq: FULT) earned $41.1 million for the first quarter ended March 31, 2007, a 6.3 percent decrease from the same period in 2006. Diluted net income per share for the quarter decreased to 24 cents, a 4.0 percent decrease from the 25 cents reported in 2006. Total assets at March 31, 2007 were approximately $14.7 billion.
     As previously disclosed, the Corporation recorded a $5.5 million contingent loss during the first quarter of 2007 related to losses that may be incurred due to the repurchase of residential mortgage loans and home equity loans that had been originated and sold in the secondary market. In addition, the Corporation recorded a $3.4 million interest income recovery related to a previously charged off commercial mortgage loan. The net effect of these two items was a $0.01 decrease in diluted net income per share for the quarter ended March 31, 2007.
     “Although the continued difficult operating environment in combination with the mortgage-related charges we announced earlier negatively impacted our first quarter results, we continue to focus on productivity improvements and on reducing overhead to position the corporation solidly for the future. Resources are being allocated to areas where we anticipate the best returns. These areas include new branches to ensure continued organic growth and technology to make sure we efficiently deliver competitive financial products to our customers,” said R. Scott Smith Jr., Chairman, Chief Executive Officer and President. “Also, our loan portfolios continue to perform very well, with net charge-offs at historic lows”.
     Loans, net of unearned income, increased $729.5 million, or 7.5 percent, to $10.4 billion at March 31, 2007, compared to $9.7 billion at March 31, 2006. The increase was realized mainly in commercial loans, which grew $357.5 million, or 13.1 percent, and commercial mortgages, which increased $237.5 million, or 7.9 percent.
 -MORE-

 


 

Page 2 . . . Fulton Financial reports first quarter earnings
     Non-performing assets were 0.40 percent of total assets at March 31, 2007, compared to 0.39 percent at December 31, 2006 and 0.35 percent at March 31, 2006. Annualized net recoveries for the quarter ended March 31, 2007 were less than one basis point as a percentage of average total loans, compared to annualized net charge-offs of 0.06 percent for the quarter ended December 31, 2006 and 0.03 percent for the quarter ended March 31, 2006. The provision for loan losses decreased $43,000, or 4.3 percent, for the first quarter of 2007, as compared to the same period in 2006.
     Total deposits increased $281.7 million, or 2.8 percent, to $10.2 billion at March 31, 2007, compared to $10.0 billion at March 31, 2006. Time deposits increased $513.2 million, or 12.9 percent, offset by a $231.5 million, or 3.9 percent, decrease in demand and savings deposits.
     Net interest income for the quarter increased $6.7 million, or 5.9 percent, compared to the first quarter of 2006. Approximately $4.5 million of this increase resulted from a full quarter contribution of The Columbia Bank (Columbia) in 2007 as compared to two months in 2006. Columbia was acquired on February 1, 2006.
     In comparison to the fourth quarter of 2006, net interest income was essentially unchanged. During the first quarter of 2007, interest recoveries on non-accrual loans totaled $3.7 million, mainly due to the aforementioned commercial account. This compares to recoveries of $480,000 in the fourth quarter of 2006 and $490,000 in the first quarter of 2006. The Corporation’s net interest margin was 3.74 percent for the first quarter of 2007, 3.68 percent for the fourth quarter of 2006 and 3.88 percent for the first quarter of 2006. Interest recoveries and other nonrecurring items added approximately 11 basis points to the net interest margin for the quarter, compared to approximately four basis points in the fourth quarter of 2006.
     Other income, excluding investment securities gains, increased $3.3 million, or 9.8 percent, in the first quarter of 2007 compared to the same period in 2006. Columbia contributed $560,000 to the increase in other income. The remaining $2.7 million increase resulted primarily from gains on the sale of real estate and increases in other service charges and fees. Compared to the fourth quarter of 2006, other income, excluding security gains, decreased $1.2 million, or 3.0 percent, primarily due a decrease in gains on sales of fixed assets, as well as decreased service charges on deposit accounts.
     Other expenses increased $12.9 million, or 14.6 percent, compared to the first quarter of 2006, to $100.9 million. Columbia added $3.5 million to the increase in other expenses. The remaining increase of $9.4 million resulted from the $5.5 million contingent loss and an increase in salaries and employee benefits. Compared to the fourth quarter of 2006, other expenses increased $6.1 million, or 6.5 percent.

 


 

Page 3 . . . Fulton Financial reports first quarter earnings
     Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company which operates more than 260 banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates: Fulton Bank, Lancaster, PA; Lebanon Valley Farmers Bank, Lebanon, PA; Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Easton, PA; FNB Bank, N.A., Danville, PA; Hagerstown Trust, Hagerstown, MD; Delaware National Bank, Georgetown, DE; The Bank, Woodbury, NJ; The Peoples Bank of Elkton, Elkton, MD; Skylands Community Bank, Hackettstown, NJ; Resource Bank, Virginia Beach, VA; Somerset Valley Bank, Somerville, NJ and The Columbia Bank, Columbia, MD.
     The Corporation’s financial services affiliates include Fulton Financial Advisors, N.A., Lancaster, PA; Fulton Insurance Services Group, Inc. Lancaster, PA; and Dearden, Maguire, Weaver and Barrett, LLC, West Conshohocken, PA.
     Residential mortgage lending is offered by all banks through Fulton Mortgage Company or Resource Mortgage.
     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 about Fulton Financial Corporation’s future financial performance. Forward-looking statements are encouraged by the Private Securities Litigation Reform Act of 1995.
Such forward-looking information is based upon certain underlying assumptions, risks and uncertainties. Because of the possibility of change in the underlying assumptions, actual results could differ materially from these forward-looking statements. Risks and uncertainties that may affect future results include: pricing pressures on loans and deposits, actions of bank and non-bank competitors, changes in local and national economic conditions, changes in regulatory requirements, actions of the Federal Reserve Board, creditworthiness of current borrowers, the Corporation’s success in merger and acquisition integration, and customers’ acceptance of the Corporation’s products and services.
# # #
2007

 

EX-99.2 3 w33432exv99w2.htm SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED MARCH 31, 2007 exv99w2
 

EXHIBIT 99.2
FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
dollars in thousands, except per-share data
                         
    March 31    
    2007   2006   % Change
BALANCE SHEET DATA
                       
Total assets
  $ 14,670,336     $ 14,174,485       3.5 %
Loans, net of unearned income
    10,448,175       9,718,710       7.5 %
Investment securities
    2,621,608       2,790,622       (6.1 %)
Deposits
    10,235,580       9,953,846       2.8 %
Shareholders’ equity
    1,521,931       1,448,339       5.1 %
                         
    Quarter Ended March 31        
    2007     2006     % Change  
INCOME SUMMARY
                       
Interest income
  $ 230,656     $ 192,652       19.7 %
Interest expense
    (108,881 )     (77,609 )     40.3 %
 
                   
Net interest income
    121,775       115,043       5.9 %
Provision for loan losses
    (957 )     (1,000 )     (4.3 %)
Investment securities gains
    1,782       2,665       (33.1 %)
Other income
    37,283       33,942       9.8 %
Other expenses
    (100,905 )     (88,016 )     14.6 %
 
                   
Income before income taxes
    58,978       62,634       (5.8 %)
Income taxes
    (17,850 )     (18,755 )     (4.8 %)
 
                   
Net income
  $ 41,128     $ 43,879       (6.3 %)
 
                   
 
                       
PER-SHARE DATA:
                       
 
                       
Net income:
                       
Basic
  $ 0.24     $ 0.26       (7.7 %)
Diluted
    0.24       0.25       (4.0 %)
Cash dividends
    0.1475       0.138       6.9 %
 
                       
Shareholders’ equity
    8.79       8.32       5.6 %
Shareholders’ equity (tangible)
    4.97       4.49       10.7 %
 
                       
SELECTED FINANCIAL RATIOS:
                       
 
                       
Return on average assets
    1.12 %     1.32 %        
Return on average shareholders’ equity
    11.06 %     12.83 %        
Return on average shareholders’ equity (tangible)
    20.34 %     23.01 %        
Net interest margin
    3.74 %     3.88 %        
Efficiency ratio
    60.98 %     56.83 %        
Nonperforming assets to total assets
    0.40 %     0.35 %        

1


 

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
                                         
                            % Change from  
    March 31     March 31     December 31     March 31     December 31  
    2007     2006     2006     2006     2006  
ASSETS
                                       
Cash and due from banks
  $ 344,969     $ 398,111     $ 355,018       (13.3 %)     (2.8 %)
Loans held for sale
    206,422       202,751       239,042       1.8 %     (13.6 %)
Other interest-earning assets
    17,677       35,657       28,188       (50.4 %)     (37.3 %)
Investment securities
    2,621,608       2,790,622       2,878,238       (6.1 %)     (8.9 %)
Loans, net of unearned
    10,448,175       9,718,710       10,374,323       7.5 %     0.7 %
Allowance for loan losses
    (107,899 )     (106,195 )     (106,884 )     1.6 %     0.9 %
 
                                 
Net Loans
    10,340,276       9,612,515       10,267,439       7.6 %     0.7 %
Premises and equipment
    190,442       182,115       191,401       4.6 %     (0.5 %)
Accrued interest receivable
    67,580       60,145       71,825       12.4 %     (5.9 %)
Goodwill and intangible assets
    661,636       667,387       663,775       (0.9 %)     (0.3 %)
Other assets
    219,726       225,182       224,038       (2.4 %)     (1.9 %)
 
                                 
Total Assets
  $ 14,670,336     $ 14,174,485     $ 14,918,964       3.5 %     (1.7 %)
 
                                 
 
                                       
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                       
Deposits
  $ 10,235,580     $ 9,953,846     $ 10,232,469       2.8 %      
Short-term borrowings
    1,138,443       1,530,381       1,680,840       (25.6 %)     (32.3 %)
Long-term debt
    1,576,283       1,058,800       1,304,148       48.9 %     20.9 %
Other liabilities
    198,099       183,119       185,197       8.2 %     7.0 %
 
                                 
Total Liabilities
    13,148,405       12,726,146       13,402,654       3.3 %     (1.9 %)
Shareholders’ equity
    1,521,931       1,448,339       1,516,310       5.1 %     0.4 %
 
                                 
Total Liabilities and Shareholders’ Equity
  $ 14,670,336     $ 14,174,485     $ 14,918,964       3.5 %     (1.7 %)
 
                                 
 
                                       
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
                                       
Loans, by type:
                                       
Commercial — industrial and financial
  $ 2,730,456     $ 2,412,836     $ 2,603,224       13.2 %     4.9 %
Commercial — agricultural
    365,036       325,140       361,962       12.3 %     0.8 %
Real estate — commercial mortgage
    3,257,914       3,020,376       3,213,809       7.9 %     1.4 %
Real estate — residential mortgage
    699,528       612,584       696,836       14.2 %     0.4 %
Real estate — home equity
    1,425,948       1,406,076       1,455,439       1.4 %     (2.0 %)
Real estate — construction
    1,377,791       1,343,364       1,428,809       2.6 %     (3.6 %)
Consumer
    514,007       516,789       523,066       (0.5 %)     (1.7 %)
Leasing and other
    77,495       81,545       91,178       (5.0 %)     (15.0 %)
 
                                 
Total Loans, net of unearned income
  $ 10,448,175     $ 9,718,710     $ 10,374,323       7.5 %     0.7 %
 
                                 
 
                                       
Deposits, by type:
                                       
Noninterest-bearing demand
  $ 1,795,265     $ 1,958,958     $ 1,831,419       (8.4 %)     (2.0 %)
Interest-bearing demand
    1,683,652       1,684,287       1,683,857              
Savings deposits
    2,274,727       2,341,840       2,287,146       (2.9 %)     (0.5 %)
Time deposits
    4,481,936       3,968,761       4,430,047       12.9 %     1.2 %
 
                                 
Total Deposits
  $ 10,235,580     $ 9,953,846     $ 10,232,469       2.8 %      
 
                                 
 
                                       
Short-term borrowings, by type:
                                       
Customer repurchase agreements
  $ 278,819     $ 379,001     $ 339,207       (26.4 %)     (17.8 %)
Federal funds purchased
    442,362       1,001,366       1,022,351       (55.8 %)     (56.7 %)
Short-term promissory notes
    359,365       130,604       279,076       175.2 %     28.8 %
Other
    57,897       19,410       40,206       198.3 %     44.0 %
 
                                 
Total Short-term borrowings
  $ 1,138,443     $ 1,530,381     $ 1,680,840       (25.6 %)     (32.3 %)
 
                                 

2


 

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)
dollars in thousands, except per-share data
                                         
    Quarter Ended     % Change from  
    March 31     March 31     December 31     March 31     December 31  
    2007     2006     2006     2006     2006  
Interest Income:
                                       
Interest Income
  $ 230,656     $ 192,652     $ 229,548       19.7 %     0.5 %
Interest Expense
    108,881       77,609       107,804       40.3 %     1.0 %
 
                                 
Net Interest Income
    121,775       115,043       121,744       5.9 %      
Provision for Loan Losses
    957       1,000       1,068       (4.3 %)     (10.4 %)
 
                                 
Net Interest Income after Provision
    120,818       114,043       120,676       5.9 %     0.1 %
 
                                       
Other Income:
                                       
Investment management and trust services
    9,810       10,032       9,466       (2.2 %)     3.6 %
Service charges on deposit accounts
    10,627       10,247       11,289       3.7 %     (5.9 %)
Other service charges and fees
    7,375       6,654       6,869       10.8 %     7.4 %
Gain on sale of mortgage loans
    5,393       4,772       5,647       13.0 %     (4.5 %)
Investment securities gains
    1,782       2,665       1,915       (33.1 %)     (6.9 %)
Other
    4,078       2,237       5,169       82.3 %     (21.1 %)
 
                                 
Total Other Income
    39,065       36,607       40,355       6.7 %     (3.2 %)
 
                                       
Other Expenses:
                                       
Salaries and employee benefits
    56,293       49,929       55,546       12.7 %     1.3 %
Net occupancy expense
    10,196       8,589       9,637       18.7 %     5.8 %
Equipment expense
    3,715       3,593       3,460       3.4 %     7.4 %
Data processing
    3,202       2,909       3,097       10.1 %     3.4 %
Advertising
    2,409       2,253       2,424       6.9 %     (0.6 %)
Intangible amortization
    1,983       1,852       2,024       7.1 %     (2.0 %)
Other
    23,107       18,891       18,569       22.3 %     24.4 %
 
                                 
Total Other Expenses
    100,905       88,016       94,757       14.6 %     6.5 %
 
                                 
Income Before Income Taxes
    58,978       62,634       66,274       (5.8 %)     (11.0 %)
Income Taxes
    17,850       18,755       19,669       (4.8 %)     (9.2 %)
 
                                 
Net Income
  $ 41,128     $ 43,879     $ 46,605       (6.3 %)     (11.8 %)
 
                                 
 
                                       
SHARE AND PER-SHARE INFORMATION:
                                       
 
                                       
Net income:
                                       
Basic
  $ 0.24     $ 0.26     $ 0.27       (7.7 %)     (11.1 %)
Diluted
    0.24       0.25       0.27       (4.0 %)     (11.1 %)
 
                                       
Cash dividends
  $ 0.1475     $ 0.138     $ 0.1475       6.9 %      
Shareholders’ equity
    8.79       8.32       8.73       5.6 %     0.7 %
Shareholders’ equity (tangible)
    4.97       4.49       4.91       10.7 %     1.2 %
 
                                       
Weighted average shares (basic)
    173,273       170,869       173,529       1.4 %     (0.1 %)
Weighted average shares (diluted)
    174,878       173,166       175,415       1.0 %     (0.3 %)
Shares outstanding, end of period
    173,083       174,033       173,648       (0.5 %)     (0.3 %)
 
                                       
SELECTED FINANCIAL RATIOS:
                                       
 
                                       
Return on average assets
    1.12 %     1.32 %     1.25 %                
Return on average shareholders’ equity
    11.06 %     12.83 %     12.29 %                
Return on average shareholders’ equity (tangible)
    20.34 %     23.01 %     22.55 %                
Net interest margin
    3.74 %     3.88 %     3.68 %                
Efficiency ratio
    60.98 %     56.83 %     56.83 %                

3


 

FULTON FINANCIAL CORPORATION
CONDENSED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
                                                                         
    Quarter Ended  
    March 31, 2007     March 31, 2006     December 31, 2006  
    Balance     Interest (1)     Rate (1)     Balance     Interest (1)     Rate (1)     Balance     Interest (1)     Rate (1)  
ASSETS
                                                                       
Interest-earning assets:
                                                                       
Loans and leases
  $ 10,414,698     $ 196,558       7.65 %   $ 9,227,642     $ 161,883       7.11 %   $ 10,312,354     $ 193,776       7.46 %
Taxable investment securities
    2,190,230       24,619       4.50 %     2,186,073       22,539       4.13 %     2,332,116       26,226       4.50 %
Tax-exempt investment securities
    492,709       6,228       5.06 %     435,959       5,185       4.76 %     472,193       5,888       4.99 %
Equity securities
    178,488       2,129       4.79 %     145,011       1,559       4.33 %     165,261       2,209       5.31 %
 
                                                     
Total Investment Securities
    2,861,427       32,976       4.61 %     2,767,043       29,283       4.24 %     2,969,570       34,323       4.62 %
 
                                                                       
Loans held for sale
    207,856       3,684       7.09 %     199,441       3,458       6.94 %     212,170       3,876       7.31 %
Other interest-earning assets
    48,328       596       4.97 %     63,388       663       4.23 %     44,804       580       5.12 %
 
                                                     
Total Interest-earning Assets
    13,532,309       233,814       6.99 %     12,257,514       195,287       6.45 %     13,538,898       232,555       6.83 %
 
                                                                       
Noninterest-earning assets:
                                                                       
Cash and due from banks
    315,969                       358,481                       321,246                  
Premises and equipment
    192,002                       177,761                       190,932                  
Other assets
    899,843                       786,918                       897,979                  
Less: allowance for loan losses
    (107,683 )                     (101,999 )                     (107,842 )                
 
                                                                 
Total Assets
  $ 14,832,440                     $ 13,478,675                     $ 14,841,213                  
 
                                                                 
 
                                                                       
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                                                       
Interest-bearing liabilities:
                                                                       
Demand deposits
  $ 1,657,714     $ 6,904       1.69 %   $ 1,666,506     $ 5,575       1.36 %   $ 1,665,453     $ 7,000       1.67 %
Savings deposits
    2,295,822       13,811       2.44 %     2,272,771       10,561       1.88 %     2,339,493       14,214       2.41 %
Time deposits
    4,457,363       50,493       4.59 %     3,744,503       34,054       3.69 %     4,406,070       49,501       4.46 %
 
                                                     
Total Interest-bearing Deposits
    8,410,899       71,208       3.43 %     7,683,780       50,190       2.65 %     8,411,016       70,715       3.34 %
 
                                                                       
Short-term borrowings
    1,552,495       19,054       4.93 %     1,487,295       15,306       4.13 %     1,790,556       22,613       4.96 %
Long-term debt
    1,450,016       18,619       5.14 %     995,478       12,113       4.93 %     1,177,177       14,476       4.88 %
 
                                                     
Total Interest-bearing Liabilities
    11,413,410       108,881       3.85 %     10,166,553       77,609       3.10 %     11,378,749       107,804       3.75 %
 
                                                                       
Noninterest-bearing liabilities:
                                                                       
Demand deposits
    1,721,135                       1,765,897                       1,776,686                  
Other
    189,297                       159,401                       180,941                  
 
                                                                 
Total Liabilities
    13,323,842                       12,091,851                       13,336,376                  
 
                                                                       
Shareholders’ equity
    1,508,598                       1,386,824                       1,504,837                  
 
                                                                 
Total Liabilities and Shareholders’ Equity
  $ 14,832,440                     $ 13,478,675                     $ 14,841,213                  
 
                                                                 
Net interest income/net interest margin (fully taxable equivalent)
            124,933       3.74 %             117,678       3.88 %             124,751       3.68 %
 
                                                                 
Tax equivalent adjustment
            (3,158 )                     (2,635 )                     (3,007 )        
 
                                                                 
Net interest income
          $ 121,775                     $ 115,043                     $ 121,744          
 
                                                                 
 
(1)   Presented on a tax-equivalent basis using a 35% Federal tax rate.
 
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
                                         
    Quarter Ended     % Change from  
    March 31     March 31     December 31     March 31     December 31  
    2007     2006     2006     2006     2006  
Loans, by type:
                                       
Commercial — industrial and financial
  $ 2,670,641     $ 2,278,597     $ 2,578,374       17.2 %     3.6 %
Commercial — agricultural
    360,601       327,929       351,112       10.0 %     2.7 %
Real estate — commercial mortgage
    3,239,179       2,944,676       3,194,958       10.0 %     1.4 %
Real estate — residential mortgage
    701,918       589,665       688,932       19.0 %     1.9 %
Real estate — home equity
    1,441,741       1,333,897       1,462,912       8.1 %     (1.4 %)
Real estate — construction
    1,396,527       1,163,368       1,428,034       20.0 %     (2.2 %)
Consumer
    516,335       518,330       523,890       (0.4 %)     (1.4 %)
Leasing and other
    87,756       71,180       84,142       23.3 %     4.3 %
 
                                 
 
                                       
Total Loans, net of unearned income
  $ 10,414,698     $ 9,227,642     $ 10,312,354       12.9 %     1.0 %
 
                                 
 
                                       
Deposits, by type:
                                       
Noninterest-bearing demand
  $ 1,721,135     $ 1,765,897     $ 1,776,686       (2.5 %)     (3.1 %)
Interest-bearing demand
    1,657,714       1,666,506       1,665,453       (0.5 %)     (0.5 %)
Savings deposits
    2,295,822       2,272,771       2,339,493       1.0 %     (1.9 %)
Time deposits
    4,457,363       3,744,503       4,406,070       19.0 %     1.2 %
 
                                 
 
                                       
Total Deposits
  $ 10,132,034     $ 9,449,677     $ 10,187,702       7.2 %     (0.5 %)
 
                                 
 
                                       
Short-term borrowings, by type:
                                       
Customer repurchase agreements
  $ 256,658     $ 382,620     $ 335,762       (32.9 %)     (23.6 %)
Federal funds purchased
    915,241       1,037,533       1,128,439       (11.8 %)     (18.9 %)
Short-term promissory notes
    315,515       44,024       270,864       616.7 %     16.5 %
Other
    65,081       23,118       55,491       181.5 %     17.3 %
 
                                 
 
                                       
Total Short-term borrowings
  $ 1,552,495     $ 1,487,295     $ 1,790,556       4.4 %     (13.3 %)
 
                                 

4


 

FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
                         
    Quarter Ended  
    March 31     March 31     December 31  
    2007     2006     2006  
ALLOWANCE FOR LOAN LOSSES:
                       
 
                       
Balance at beginning of period
  $ 106,884     $ 92,847     $ 107,422  
 
                       
Loans charged off
    (1,360 )     (1,500 )     (2,722 )
Recoveries of loans previously charged off
    1,418       857       1,116  
 
                 
Net loans recovered (charged off)
    58       (643 )     (1,606 )
Provision for loan losses
    957       1,000       1,068  
Allowance purchased
          12,991        
 
                 
Balance at end of period
  $ 107,899     $ 106,195     $ 106,884  
 
                 
 
                       
Net (recoveries) charge-offs to average loans (annualized)
          0.03 %     0.06 %
 
                 
 
                       
NON-PERFORMING ASSETS:
                       
 
                       
Non-accrual loans
  $ 37,914     $ 34,716     $ 33,113  
Accruing loans 90+ days overdue
    13,467       13,126       20,632  
Other real estate owned
    6,576       2,011       4,103  
 
                 
Total non-performing assets
  $ 57,957     $ 49,853     $ 57,848  
 
                 
 
                       
ASSET QUALITY RATIOS:
                       
 
                       
Non-accrual loans to total loans
    0.36 %     0.36 %     0.32 %
Non-performing assets to total loans and OREO
    0.55 %     0.51 %     0.56 %
Non-performing assets to total assets
    0.40 %     0.35 %     0.39 %
Allowance for loan losses to loans outstanding
    1.03 %     1.09 %     1.03 %
Allowance/nonperforming loans
    210 %     222 %     199 %

5

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-----END PRIVACY-ENHANCED MESSAGE-----