Fulton Financial Reports First Quarter Earnings of $0.20 per Share

Marketwired

LANCASTER, PA--(Marketwired - Apr 16, 2013) - Fulton Financial Corporation (NASDAQ: FULT)

  • Diluted earnings per share for the first quarter of 2013 was 20 cents, unchanged from the fourth quarter of 2012 and a 5.3 percent increase from the first quarter of 2012.
  • The provision for credit losses was $15.0 million for the first quarter of 2013, a $2.5 million, or 14.3 percent, decrease compared to the fourth quarter of 2012 and a $13.0 million, or 46.4 percent, decrease from the first quarter of 2012. Non-performing loans decreased $2.4 million, or 1.1 percent, in comparison to December 31, 2012 and $75.3 million, or 26.5 percent, in comparison to March 31, 2012.
  • Net interest income for the first quarter of 2013 decreased $2.6 million, or 1.9 percent, compared to the fourth quarter of 2012. Net interest margin decreased 10 basis points, or 2.7 percent, to 3.55 percent.
  • Average interest-earning assets increased $362.9 million, or 2.4 percent, in comparison to the fourth quarter of 2012, with average loans increasing $254.3 million, or 2.1 percent.
  • Non-interest income decreased $12.3 million, or 20.6 percent, in comparison to the fourth quarter of 2012, while non-interest expense decreased $5.6 million, or 4.8 percent.
  • Approximately 4.2 million shares were repurchased during the first quarter of 2013, with approximately 3.8 million shares remaining authorized for repurchase under the current share repurchase plan.

Fulton Financial Corporation (NASDAQ: FULT) reported net income of $39.2 million, or 20 cents per diluted share, for the first quarter ended March 31, 2013, compared to $40.2 million, or 20 cents per diluted share, for the fourth quarter of 2012.

"Since growing earning assets is one of our strategic priorities, we were pleased to see a continuation of our solid loan growth in the first quarter," said E. Philip Wenger, Chairman, CEO and President. "Other expenses were down from the fourth quarter, which helped us to reduce the impact of slower residential mortgage activity and correspondingly lower mortgage sales gains. Overall asset quality continued to show improvement, allowing us to again reduce the provision for credit losses. During the quarter, we continued to buy back our stock under the current share repurchase program which expires on June 30 of this year."

Asset Quality
Non-performing assets were $232.5 million, or 1.39 percent of total assets, at March 31, 2013, compared to $237.2 million, or 1.43 percent of total assets, at December 31, 2012 and $317.5 million, or 1.92 percent of total assets, at March 31, 2012. The $4.7 million, or 2.0 percent, decrease in non-performing assets in comparison to the fourth quarter of 2012 was primarily due to a decrease in other real estate owned (OREO) and decreases in non-performing commercial loans, partially offset by increases in non-performing residential mortgages and commercial mortgages.

Annualized net charge-offs for the quarter ended March 31, 2013 were 0.62 percent of average total loans, compared to 0.91 percent for the quarter ended December 31, 2012 and 0.94 percent for the quarter ended March 31, 2012. The allowance for credit losses as a percentage of non-performing loans was 106.2 percent at March 31, 2013, as compared to 106.8 percent at December 31, 2012 and 90.9 percent at March 31, 2012.

Net Interest Income and Margin
Net interest income for the first quarter of 2013 decreased $2.6 million, or 1.9 percent, from the fourth quarter of 2012. The net interest margin decreased 10 basis points, or 2.7 percent, from 3.65 percent in the fourth quarter of 2012 to 3.55 percent in the first quarter of 2013. Average yields on interest-earning assets decreased 15 basis points, while the decline in the average costs of interest-bearing liabilities was 7 basis points.

Average Balance Sheet
Total average assets for the first quarter of 2013 were $16.5 billion, an increase of $346.0 million, or 2.1 percent, from the fourth quarter of 2012.

Average loans, net of unearned income, increased $254.3 million, or 2.1 percent, for the first quarter of 2013 in comparison to the fourth quarter of 2012.

                 
    Quarter Ended            
    Mar 31   Dec 31   Increase (decrease)  
    2013   2012   $     %  
    (dollars in thousands)  
Loans, by type:                          
  Real estate - commercial mortgage   $ 4,666,494   $ 4,623,158   $ 43,336     0.9 %
  Commercial - industrial, financial and agricultural     3,662,566     3,559,171     103,395     2.9 %
  Real estate - home equity     1,662,173     1,611,868     50,305     3.1 %
  Real estate - residential mortgage     1,283,168     1,223,962     59,206     4.8 %
  Real estate - construction     591,338     593,351     (2,013 )   (0.3 %)
  Consumer     305,480     306,350     (870 )   (0.3 %)
  Leasing and other     86,061     85,084     977     1.1 %
                             
  Total Loans, net of unearned income   $ 12,257,280   $ 12,002,944   $ 254,336     2.1 %
                           

Total average liabilities increased $351.8 million, or 2.5 percent, from the fourth quarter of 2012, due primarily to a $543.8 million, or 111.4 percent, increase in short-term borrowings, partially offset by a $181.2 million, or 1.4 percent, decrease in average deposits.

                 
    Quarter Ended            
    Mar 31   Dec 31   Increase (decrease)  
    2013   2012   $     %  
    (dollars in thousands)        
Deposits, by type:                          
  Noninterest-bearing demand   $ 2,968,777   $ 2,955,208   $ 13,569     0.5 %
  Interest-bearing demand     2,705,835     2,684,063     21,772     0.8 %
  Savings deposits     3,334,305     3,399,423     (65,118 )   (1.9 %)
Total demand and savings     9,008,917     9,038,694     (29,777 )   (0.3 %)
  Time deposits     3,321,309     3,472,692     (151,383 )   (4.4 %)
                           
  Total Deposits   $ 12,330,226   $ 12,511,386   $ (181,160 )   (1.4 %)
                           

Non-interest Income
Non-interest income, excluding investment securities gains, decreased $14.5 million, or 24.5 percent, in comparison to the fourth quarter of 2012. In December 2012, the Corporation's wholly owned subsidiary, Fulton Bank, N.A., sold its Global Exchange Group division (Global Exchange) for a gain of $6.2 million. Global Exchange provided international payment solutions. As a result of this sale, foreign currency processing revenue, included as a component of other service charges and fees on the condensed consolidated statements of income, decreased $2.3 million, or 86.4 percent, in the first quarter of 2013. Also contributing to the decrease in non-interest income was a $4.6 million decrease in mortgage banking income due to a decrease in new loan commitments and pricing spreads and a $1.5 million decrease in service charges on deposit accounts.

Non-interest Expense
Non-interest expense decreased $5.6 million, or 4.8 percent, in the first quarter of 2013 compared to the fourth quarter of 2012. During the fourth quarter of 2012, the Corporation prepaid approximately $20 million of Federal Home Loan Bank (FHLB) advances, incurring a $3.0 million prepayment penalty. Also contributing to the decrease in non-interest expense was a $1.3 million decrease in 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, including protracted periods of low-growth and sluggish loan demand;
  • the effect of market interest rates, particularly a continuing period of low market interest rates, and relative balances of rate-sensitive assets to rate-sensitive liabilities, on net interest margin and net interest income;
  • the effect of competition on rates of deposit and loan growth and net interest margin;
  • increases in non-performing assets, which may 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;
  • non-interest income growth, including the impact of potential regulatory changes;
  • investment securities gains and losses, including other-than-temporary declines in the value of securities which may result in charges to earnings;
  • the level of non-interest expenses, including salaries and employee benefits expenses, operating risk losses, amortization of intangible assets and goodwill impairment;
  • the impact of increased regulatory scrutiny of the banking industry;
  • the increasing time and expense associated with regulatory compliance and risk management;
  • the uncertainty and lack of clear regulatory guidance associated with the delay in implementing many of the regulations mandated by the Dodd-Frank Act;
  • capital and liquidity strategies, including the expected impact of the capital and liquidity requirements proposed by the Basel III standards;
  • operational risk, i.e. the risk of loss resulting from human error, inadequate or failed internal processes and systems, outsourcing arrangements, compliance and legal risk and external events; and
  • acquisition and growth strategies, including the impact of a less robust merger and acquisition environment in the banking industry and increased regulatory scrutiny.

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.

               
               
FULTON FINANCIAL CORPORATION              
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)              
dollars in thousands              
                      % Change from  
    March 31     March 31     December 31     March 31     December 31  
    2013     2012     2012     2012     2012  
                                     
ASSETS                                    
                                     
  Cash and due from banks   $ 174,479     $ 286,875     $ 256,300     (39.2% )   (31.9% )
  Other interest-earning assets     97,202       106,227       173,257     (8.5% )   (43.9% )
  Loans held for sale     63,045       70,128       67,899     (10.1% )   (7.1% )
  Investment securities     2,812,104       3,089,407       2,794,017     (9.0% )   0.6%  
  Loans, net of unearned income     12,377,288       11,960,004       12,146,971     3.5%     1.9%  
  Allowance for loan losses     (220,041 )     (256,496 )     (223,903 )   (14.2% )   (1.7% )
    Net loans     12,157,247       11,703,508       11,923,068     3.9%     2.0%  
  Premises and equipment     226,754       215,756       227,723     5.1%     (0.4% )
  Accrued interest receivable     47,485       51,247       45,786     (7.3% )   3.7%  
  Goodwill and intangible assets     534,987       543,383       535,563     (1.5% )   (0.1% )
  Other assets     569,434       474,128       509,484     20.1%     11.8%  
                                       
      Total Assets   $ 16,682,737     $ 16,540,659     $ 16,533,097     0.9%     0.9%  
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
                                     
  Deposits   $ 12,388,460     $ 12,352,337     $ 12,484,163     0.3%     (0.8% )
  Short-term borrowings     1,126,966       964,550       868,399     16.8%     29.8%  
  Other liabilities     216,337       266,928       204,626     (19.0% )   5.7%  
  FHLB advances and long-term debt     889,211       933,981       894,253     (4.8% )   (0.6% )
                                       
    Total Liabilities     14,620,974       14,517,796       14,451,441     0.7%     1.2%  
                                       
  Shareholders' equity     2,061,763       2,022,863       2,081,656     1.9%     (1.0% )
                                       
      Total Liabilities and Shareholders' Equity   $ 16,682,737     $ 16,540,659     $ 16,533,097     0.9%     0.9%  
                                     
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:                                    
                                     
Loans, by type:                                    
  Real estate - commercial mortgage   $ 4,729,930     $ 4,634,428     $ 4,664,426     2.1%     1.4%  
  Commercial - industrial, financial and agricultural     3,658,483       3,518,228       3,612,065     4.0%     1.3%  
  Real estate - home equity     1,689,446       1,601,880       1,632,390     5.5%     3.5%  
  Real estate - residential mortgage     1,303,454       1,177,474       1,257,432     10.7%     3.7%  
  Real estate - construction     597,597       647,700       584,118     (7.7% )   2.3%  
  Consumer     309,138       309,168       309,864     -     (0.2% )
  Leasing and other     89,240       71,126       86,676     25.5%     3.0%  
                                       
  Total Loans, net of unearned income   $ 12,377,288     $ 11,960,004     $ 12,146,971     3.5%     1.9%  
                                     
Deposits, by type:                                    
  Noninterest-bearing demand   $ 3,075,511     $ 2,683,496     $ 3,009,966     14.6%     2.2%  
  Interest-bearing demand     2,698,811       2,486,382       2,755,603     8.5%     (2.1% )
  Savings deposits     3,345,842       3,305,888       3,335,256     1.2%     0.3%  
  Time deposits     3,268,296       3,876,571       3,383,338     (15.7% )   (3.4% )
                                       
  Total Deposits   $ 12,388,460     $ 12,352,337     $ 12,484,163     0.3%     (0.8% )
                                     
Short-term borrowings, by type:                                    
  Customer repurchase agreements   $ 158,214     $ 204,627     $ 156,238     (22.7% )   1.3%  
  Customer short-term promissory notes     114,231       149,376       119,691     (23.5% )   (4.6% )
  Federal funds purchased and other     854,521       610,547       592,470     40.0%     44.2%  
                                       
  Total Short-term Borrowings   $ 1,126,966     $ 964,550     $ 868,399     16.8%     29.8%  
                                     
                                     
                                     
   
FULTON FINANCIAL CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)  
in thousands, except per-share data and percentages  
   
    Quarter Ended   % Change from  
    Mar 31   Mar 31   Dec 31   Mar 31     Dec 31  
    2013   2012   2012   2012     2012  
                               
Interest Income:                              
  Interest income   $ 151,322   $ 166,891   $ 155,560   (9.3% )   (2.7% )
  Interest expense     21,678     28,196     23,338   (23.1% )   (7.1% )
                                 
    Net Interest Income     129,644     138,695     132,222   (6.5% )   (1.9% )
  Provision for credit losses     15,000     28,000     17,500   (46.4% )   (14.3% )
                                 
    Net Interest Income after Provision     114,644     110,695     114,722   3.6%     (0.1% )
                                 
Non-Interest Income:                              
  Service charges on deposit accounts     14,111     14,842     15,642   (4.9% )   (9.8% )
  Investment management and trust services     10,096     9,377     9,611   7.7%     5.0%  
  Other service charges and fees     8,510     10,555     11,164   (19.4% )   (23.8% )
  Mortgage banking income     8,173     10,050     12,813   (18.7% )   (36.2% )
  Investment securities gains     2,473     1,251     195   97.7%     N/M  
  Gain on sale of Global Exchange     -     -     6,215   N/M     (100.0% )
  Other     3,896     5,563     3,883   (30.0% )   0.3%  
                                 
    Total Non-Interest Income     47,259     51,638     59,523   (8.5% )   (20.6% )
                                 
Non-Interest Expense:                              
  Salaries and employee benefits     61,212     60,360     61,303   1.4%     (0.1% )
  Net occupancy expense     11,844     10,935     11,362   8.3%     4.2%  
  Equipment expense     3,908     3,369     3,873   16.0%     0.9%  
  Data processing     3,903     3,688     3,713   5.8%     5.1%  
  Professional fees     3,047     2,582     3,228   18.0%     (5.6% )
  Other outside services     2,860     2,913     4,138   (1.8% )   (30.9% )
  OREO and repossession expense     2,854     3,295     2,474   (13.4% )   15.4%  
  FDIC insurance expense     2,847     3,021     2,944   (5.8% )   (3.3% )
  Software     2,748     2,175     2,562   26.3%     7.3%  
  Marketing     1,872     2,472     2,537   (24.3% )   (26.2% )
  Operating risk loss     1,766     3,368     2,627   (47.6% )   (32.8% )
  FHLB advances prepayment penalty     -     -     3,007   N/M     (100.0% )
  Other     12,075     12,491     12,788   (3.3% )   (5.6% )
                                 
    Total Non-Interest Expense     110,936     110,669     116,556   0.2%     (4.8% )
                                 
    Income Before Income Taxes     50,967     51,664     57,689   (1.3% )   (11.7% )
  Income tax expense     11,740     13,532     17,449   (13.2% )   (32.7% )
                                 
    Net Income   $ 39,227   $ 38,132   $ 40,240   2.9%     (2.5% )
                               
                               
PER SHARE:                              
                               
  Net income:                              
    Basic   $ 0.20   $ 0.19   $ 0.20   5.3%     -  
    Diluted     0.20     0.19     0.20   5.3%     -  
                                 
  Cash dividends   $ 0.08   $ 0.07   $ 0.08   14.3%     -  
  Shareholders' equity     10.56     10.10     10.45   4.6%     1.1%  
  Shareholders' equity (tangible)     7.82     7.38     7.76   6.0%     0.8%  
                                 
  Weighted average shares (basic)     196,299     199,492     198,161   (1.6% )   (0.9% )
  Weighted average shares (diluted)     197,217     200,344     199,198   (1.6% )   (1.0% )
  Shares outstanding, end of period     195,276     200,354     199,225   (2.5% )   (2.0% )
                                 
SELECTED FINANCIAL RATIOS:                              
                                 
  Return on average assets     0.96%     0.94%     0.99%            
  Return on average common shareholders' equity     7.67%     7.61%     7.70%            
  Return on average common shareholders' equity (tangible)     10.43%     10.56%     10.53%            
  Net interest margin     3.55%     3.85%     3.65%            
  Efficiency ratio     61.78%     56.83%     59.16%            
                               
N/M - Not meaningful                
                               
                               
                               
 
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
 
    Quarter Ended
    March 31, 2013   March 31, 2012   December 31, 2012
    Average     Interest     Yield/   Average     Interest     Yield/   Average     Interest     Yield/
    Balance     (1)     Rate   Balance     (1)     Rate   Balance     (1)     Rate
ASSETS                                                            
                                                             
Interest-earning assets:                                                            
  Loans, net of unearned income   $ 12,257,280     $ 136,948     4.53%   $ 11,981,099     $ 147,046     4.93%   $ 12,002,944     $ 141,014     4.68%
  Taxable investment securities     2,421,178       13,397     2.22%     2,402,158       18,661     3.11%     2,279,551       13,406     2.35%
  Tax-exempt investment securities     292,118       3,814     5.22%     294,724       4,157     5.64%     286,400       3,857     5.39%
  Equity securities     118,367       917     3.12%     115,593       780     2.71%     117,333       984     3.35%
                                                               
  Total Investment Securities     2,831,663       18,128     2.56%     2,812,475       23,598     3.36%     2,683,284       18,247     2.72%
                                                               
  Loans held for sale     47,885       495     4.14%     40,478       431     4.26%     59,977       517     3.45%
  Other interest-earning assets     117,850       22     0.07%     101,957       53     0.21%     145,555       45     0.12%
                                                               
  Total Interest-earning Assets     15,254,678       155,593     4.13%     14,936,009       171,128     4.61%     14,891,760       159,823     4.28%
                                                               
Noninterest-earning assets:                                                            
  Cash and due from banks     202,507                   262,741                   220,924              
  Premises and equipment     226,466                   212,567                   224,852              
  Other assets     1,070,170                   1,112,429                   1,078,040              
  Less: allowance for loan losses     (227,858 )                 (266,092 )                 (235,563 )            
                                                               
  Total Assets   $ 16,525,963                 $ 16,257,654                 $ 16,180,013              
                                                             
                                                             
LIABILITIES AND SHAREHOLDERS' EQUITY                                                            
                                                             
Interest-bearing liabilities:                                                            
  Demand deposits   $ 2,705,835     $ 877     0.13%   $ 2,464,452     $ 1,036     0.17%   $ 2,684,063     $ 1,055     0.16%
  Savings deposits     3,334,305       1,023     0.12%     3,349,502       1,810     0.22%     3,399,423       1,251     0.15%
  Time deposits     3,321,309       8,501     1.04%     3,951,908       13,404     1.36%     3,472,692       9,748     1.12%
                                                               
  Total Interest-bearing Deposits     9,361,449       10,401     0.45%     9,765,862       16,250     0.67%     9,556,178       12,054     0.50%
                                                               
  Short-term borrowings     1,032,122       509     0.20%     728,102       281     0.15%     488,310       156     0.13%
  FHLB advances and long-term debt     891,173       10,768     4.87%     983,304       11,665     4.76%     914,013       11,128     4.86%
                                                               
  Total Interest-bearing Liabilities     11,284,744       21,678     0.78%     11,477,268       28,196     0.99%     10,958,501       23,338     0.85%
                                                               
Noninterest-bearing liabilities:                                                            
  Demand deposits     2,968,777                   2,566,312                   2,955,208              
  Other     198,944                   197,463                   186,958              
                                                               
  Total Liabilities     14,452,465                   14,241,043                   14,100,667              
                                                               
  Shareholders' equity     2,073,498                   2,016,611                   2,079,346              
                                                               
  Total Liabilities and Shareholders' Equity   $ 16,525,963                 $ 16,257,654                 $ 16,180,013              
                                                               
  Net interest income/net interest margin (fully taxable equivalent)             133,915     3.55%             142,932     3.85%             136,485     3.65%
  Tax equivalent adjustment             (4,271 )                 (4,237 )                 (4,263 )    
                                                               
  Net interest income           $ 129,644                 $ 138,695                 $ 132,222      
     
(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  
    March 31   March 31   December 31   March 31     December 31  
    2013   2012   2012   2012     2012  
                   
Loans, by type:                              
  Real estate - commercial mortgage   $ 4,666,494   $ 4,617,507   $ 4,623,158   1.1%     0.9%  
  Commercial - industrial, financial and agricultural     3,662,566     3,585,520     3,559,171   2.1%     2.9%  
  Real estate - home equity     1,662,173     1,611,565     1,611,868   3.1%     3.1%  
  Real estate - residential mortgage     1,283,168     1,137,964     1,223,962   12.8%     4.8%  
  Real estate - construction     591,338     641,574     593,351   (7.8% )   (0.3% )
  Consumer     305,480     312,234     306,350   (2.2% )   (0.3% )
  Leasing and other     86,061     74,735     85,084   15.2%     1.1%  
                                 
  Total Loans, net of unearned income   $ 12,257,280   $ 11,981,099   $ 12,002,944   2.3%     2.1%  
                                 
Deposits, by type:                              
  Noninterest-bearing demand   $ 2,968,777   $ 2,566,312   $ 2,955,208   15.7%     0.5%  
  Interest-bearing demand     2,705,835     2,464,452     2,684,063   9.8%     0.8%  
  Savings deposits     3,334,305     3,349,502     3,399,423   (0.5% )   (1.9% )
  Time deposits     3,321,309     3,951,908     3,472,692   (16.0% )   (4.4% )
                                 
  Total Deposits   $ 12,330,226   $ 12,332,174   $ 12,511,386   -     (1.4% )
                                 
Short-term borrowings, by type:                              
  Customer repurchase agreements   $ 165,109   $ 200,542   $ 189,922   (17.7% )   (13.1% )
  Customer short-term promissory notes     112,041     155,071     125,933   (27.7% )   (11.0% )
  Federal funds purchased and other     754,972     372,489     172,455   102.7%     337.8%  
                                 
  Total Short-term Borrowings   $ 1,032,122   $ 728,102   $ 488,310   41.8%     111.4%  
                               
                               
                               
FULTON FINANCIAL CORPORATION  
ASSET QUALITY INFORMATION (UNAUDITED)  
dollars in thousands  
                   
    Quarter Ended  
    Mar 31     Mar 31     Dec 31  
    2013     2012     2012  
ALLOWANCE FOR CREDIT LOSSES:                        
                         
  Balance at beginning of period   $ 225,439     $ 258,177     $ 235,268  
                           
  Loans charged off:                        
    Commercial - industrial, financial and agricultural     (9,502 )     (5,669 )     (12,711 )
    Real estate - commercial mortgage     (4,133 )     (11,891 )     (8,935 )
    Real estate - residential mortgage     (3,050 )     (847 )     (1,500 )
    Real estate - home equity     (2,404 )     (2,206 )     (3,464 )
    Real estate - construction     (1,986 )     (8,571 )     (873 )
    Consumer     (550 )     (634 )     (1,533 )
    Leasing and other     (481 )     (441 )     (585 )
    Total loans charged off     (22,106 )     (30,259 )     (29,601 )
  Recoveries of loans previously charged off:                        
    Commercial - industrial, financial and agricultural     379       636       1,236  
    Real estate - commercial mortgage     1,064       816       85  
    Real estate - residential mortgage     81       73       290  
    Real estate - home equity     331       20       63  
    Real estate - construction     671       64       171  
    Consumer     506       350       274  
    Leasing and other     162       260       153  
    Recoveries of loans previously charged off     3,194       2,219       2,272  
  Net loans charged off     (18,912 )     (28,040 )     (27,329 )
  Provision for credit losses     15,000       28,000       17,500  
                           
  Balance at end of period   $ 221,527     $ 258,137     $ 225,439  
                           
  Net charge-offs to average loans (annualized)     0.62%       0.94%       0.91%  
                           
NON-PERFORMING ASSETS:                        
                           
  Non-accrual loans   $ 179,334     $ 248,719     $ 184,832  
  Loans 90 days past due and accruing     29,325       35,270       26,221  
    Total non-performing loans     208,659       283,989       211,053  
  Other real estate owned     23,820       33,516       26,146  
                           
  Total non-performing assets   $ 232,479     $ 317,505     $ 237,199  
                           
NON-PERFORMING LOANS, BY TYPE:                        
                           
  Commercial - industrial, financial and agricultural   $ 61,113     $ 82,884     $ 66,954  
  Real estate - commercial mortgage     58,805       104,076       57,120  
  Real estate - residential mortgage     36,361       23,016       34,436  
  Real estate - construction     31,919       59,917       32,005  
  Real estate - home equity     14,988       10,914       15,519  
  Consumer     5,262       2,834       5,000  
  Leasing     211       348       19  
                           
  Total non-performing loans   $ 208,659     $ 283,989     $ 211,053  
                                     
DELINQUENCY RATES, BY TYPE:                                    
    March 31, 2013   March 31, 2012   December 31, 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   0.39%   1.25%   1.64%   0.43%   2.24%   2.67%   0.46%   1.22%   1.68%
  Commercial - industrial, financial and agricultural   0.35%   1.67%   2.02%   0.35%   2.36%   2.71%   0.46%   1.85%   2.31%
  Real estate - construction   0.17%   5.34%   5.51%   0.56%   9.25%   9.81%   0.23%   5.48%   5.71%
  Real estate - residential mortgage   2.07%   2.79%   4.86%   2.76%   1.96%   4.72%   2.55%   2.74%   5.29%
  Real estate - home equity   0.69%   0.89%   1.58%   0.74%   0.68%   1.42%   0.77%   0.96%   1.73%
  Consumer, leasing and other   1.38%   1.37%   2.75%   1.39%   0.84%   2.23%   1.71%   1.26%   2.97%
                                       
  Total   0.62%   1.68%   2.30%   0.71%   2.38%   3.09%   0.75%   1.74%   2.49%
     
(1)   Includes non-accrual loans
     
             
ASSET QUALITY RATIOS:            
    Mar 31   Mar 31   Dec 31
    2013   2012   2012
             
  Non-accrual loans to total loans   1.45%   2.08%   1.52%
  Non-performing assets to total loans and OREO   1.87%   2.65%   1.95%
  Non-performing assets to total assets   1.39%   1.92%   1.43%
  Allowance for credit losses to loans outstanding   1.79%   2.16%   1.86%
  Allowance for credit losses to non-performing loans   106.17%   90.90%   106.82%
  Non-performing assets to tangible common shareholders' equity and allowance for credit losses   13.30%   18.27%   13.39%
             
             
             
 
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 they 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 useful to investors to evaluate the Corporation's results because it excludes certain items that are not directly related to the Corporation's core operating performance. 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:
       
                   
    Quarter Ended  
    March 31     March 31     December 31  
    2013     2012     2012  
  Shareholders' equity (tangible), per share                        
  Shareholders' equity   $ 2,061,763     $ 2,022,863     $ 2,081,656  
  Less: Goodwill and intangible assets     (534,987 )     (543,383 )     (535,563 )
  Tangible shareholders' equity (numerator)   $ 1,526,776     $ 1,479,480     $ 1,546,093  
                           
  Shares outstanding, end of period (denominator)     195,276       200,354       199,225  
                           
    Shareholders' equity (tangible), per share   $ 7.82     $ 7.38     $ 7.76  
                           
  Return on average common shareholders' equity (tangible)                        
  Net income   $ 39,227     $ 38,132     $ 40,240  
  Plus: Intangible amortization, net of tax     347       521       463  
  Net income, less intangible amortization, net of tax (numerator)   $ 39,574     $ 38,653     $ 40,703  
                           
  Average shareholders' equity   $ 2,073,498     $ 2,016,611       2,079,346  
  Less: Average goodwill and intangible assets     (535,255 )     (543,777 )     (541,416 )
  Average tangible shareholders' equity (denominator)   $ 1,538,243     $ 1,472,834     $ 1,537,930  
                           
    Return on average common shareholders' equity (tangible), annualized     10.43%       10.56%       10.53%  
                           
  Efficiency ratio                        
  Non-interest expense   $ 110,936     $ 110,669     $ 116,556  
  Less: Intangible amortization     (534 )     (801 )     (713 )
  Numerator   $ 110,402     $ 109,868     $ 115,843  
                           
  Net interest income (fully taxable equivalent)   $ 133,915     $ 142,932     $ 136,485  
  Plus: Total Non-interest income     47,259       51,638       59,523  
  Less: Investment securities gains     (2,473 )     (1,251 )     (195 )
  Denominator   $ 178,701     $ 193,319     $ 195,813  
                           
    Efficiency ratio     61.78%       56.83%       59.16%  
                           
  Non-performing assets to tangible common shareholders' equity and allowance for credit losses                        
  Non-performing assets (numerator)   $ 232,479     $ 317,505     $ 237,199  
                           
  Shareholders' equity   $ 2,061,763     $ 2,022,863     $ 2,081,656  
  Less: Goodwill and intangible assets     (534,987 )     (543,383 )     (535,563 )
  Tangible shareholders' equity     1,526,776       1,479,480       1,546,093  
  Plus: Allowance for credit losses     221,527       258,137       225,439  
  Tangible shareholders' equity and allowance for credit losses (denominator)   $ 1,748,303     $ 1,737,617     $ 1,771,532  
                           
    Non-performing assets to tangible common shareholders' equity and allowance for credit losses     13.30%       18.27%       13.39%  
                             
                             
Contact:
Media
Laura J. Wakeley
(717) 291-2616


Investor
David C. Hostetter
(717) 291-2456

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