LANCASTER, PA -- (Marketwired) -- 04/22/14 --
Fulton Financial Corporation (NASDAQ: FULT)
- Diluted earnings per share for the first quarter of 2014 was 22 cents, unchanged from the fourth quarter of 2013 and a 10.0 percent increase from the first quarter of 2013.
- Net interest income for the first quarter of 2014 decreased $3.4 million, or 2.5 percent, compared to the fourth quarter of 2013. The net interest margin for the first quarter of 2014 decreased one basis point, to 3.47 percent, compared to the fourth quarter of 2013.
- Average interest-earning assets decreased $77.9 million, or 0.5 percent, compared to the fourth quarter of 2013, with average loans decreasing $30.2 million, or 0.2 percent.
- Non-interest income, excluding investment securities gains, decreased $2.2 million, or 5.4 percent, in comparison to the fourth quarter of 2013, while non-interest expense decreased $7.2 million, or 6.2 percent.
- During the first quarter of 2014, the Corporation implemented a number of its previously disclosed cost savings initiatives, including the consolidation of 13 branches, subsidiary bank management restructurings and changes to certain benefit plans. These initiatives resulted in implementation expenses, net of associated gains, of approximately $1.0 million and expense reductions of approximately $1.0 million during the first quarter of 2014. Annualized expense reductions from these cost savings initiatives are expected to be approximately $8.0 million.
- The provision for credit losses was $2.5 million for the first quarter of 2014, unchanged from the fourth quarter of 2013 and a $12.5 million, or 83.3 percent, decrease from the first quarter of 2013. Non-performing loans increased $653,000, or 0.4 percent, in comparison to December 31, 2013 and decreased $53.7 million, or 25.7 percent, in comparison to March 31, 2013.
- During the first quarter of 2014, the Corporation repurchased 4.0 million shares of common stock, completing its outstanding share repurchase program.
Fulton Financial Corporation (NASDAQ: FULT) reported net income of $41.8 million, or 22 cents per diluted share, for the first quarter of 2014, compared to $42.1 million, or 22 cents per diluted share, for the fourth quarter of 2013.
"We were pleased to report another quarter of solid earnings and good returns on assets and equity," said E. Philip Wenger, Chairman, CEO and President. "Asset quality remained strong this quarter. We also saw a significant reduction in operating expenses that contributed to improved efficiency. During the quarter, we completed our previously announced four million share repurchase program."
Net Interest Income and Margin
Net interest income for the first quarter of 2014 decreased $3.4 million, or 2.5 percent, from the fourth quarter of 2013. The net interest margin decreased one basis point, or 0.3 percent, to 3.47 percent, in the first quarter of 2014 from 3.48 percent in the fourth quarter of 2013. Average yields on interest-earning assets decreased one basis point, while the average cost of interest-bearing liabilities increased one basis point.
Average Balance Sheet
Total average assets for the first quarter of 2014 were $16.9 billion, a decrease of $60.2 million, or 0.4 percent, from the fourth quarter of 2013. Average loans, net of unearned income, decreased $30.2 million, or 0.2 percent, in comparison to the fourth quarter of 2013.
Increase
Quarter Ended (decrease)
------------------------------------
March 31, 2014 December 31, 2013 in Balance
----------------- ----------------- -----------------
Yield Yield
Balance (1) Balance (1) $ %
----------- ----- ----------- ----- --------- ------
(dollars in thousands)
Average Loans, net
of unearned
income, by type:
Real estate -
commercial
mortgage $ 5,085,128 4.44% $ 5,065,963 4.49% $ 19,165 0.4%
Commercial -
industrial,
financial and
agricultural 3,637,075 4.03% 3,639,690 4.03% (2,615) (0.1%)
Real estate -
home equity 1,755,346 4.18% 1,774,919 4.18% (19,573) (1.1%)
Real estate -
residential
mortgage 1,336,323 3.99% 1,331,987 4.04% 4,336 0.3%
Real estate -
construction 576,346 4.08% 581,306 4.15% (4,960) (0.9%)
Consumer 274,910 4.82% 287,245 4.85% (12,335) (4.3%)
Leasing and
other 97,229 9.79% 111,456 8.01% (14,227) (12.8%)
----------- ----- ----------- ----- --------- ------
Total Average
Loans, net of
unearned income $12,762,357 4.28% $12,792,566 4.29% $ (30,209) (0.2%)
=========== ===== =========== ===== ========= ======
(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and
statutory interest expense disallowances.
Total average liabilities decreased $72.3 million, or 0.5 percent, from the fourth quarter of 2013, due to a $187.7 million decrease in average deposits, partially offset by a $109.2 million, or 9.9 percent, increase short-term borrowings.
Increase
Quarter Ended (decrease)
------------------------------------
March 31, 2014 December 31, 2013 in Balance
----------------- ----------------- -----------------
Balance Rate Balance Rate $ %
----------- ----- ----------- ----- --------- ------
(dollars in thousands)
Average Deposits,
by type:
Noninterest-
bearing demand $ 3,243,424 -% $ 3,318,073 -% $ (74,649) (2.2%)
Interest-bearing
demand 2,945,211 0.13% 2,966,994 0.13% (21,783) (0.7%)
Savings deposits 3,351,871 0.13% 3,410,030 0.12% (58,159) (1.7%)
----------- ----- ----------- ----- --------- ------
Total average
demand and
savings 9,540,506 0.08% 9,695,097 0.08% (154,591) (1.6%)
Time deposits 2,932,456 0.82% 2,965,604 0.82% (33,148) (1.1%)
----------- ----- ----------- ----- --------- ------
Total Average
Deposits $12,472,962 0.26% $12,660,701 0.25% $(187,739) (1.5%)
=========== ===== =========== ===== ========= ======
Asset Quality
Non-performing assets were $170.2 million, or 1.01 percent of total assets, at March 31, 2014, compared to $169.3 million, or 1.00 percent of total assets, at December 31, 2013 and $232.5 million, or 1.39 percent of total assets, at March 31, 2013. The $901,000, or 0.5 percent, increase in non-performing assets in comparison to the fourth quarter of 2013 was primarily due to an increase in non-performing commercial mortgages and commercial loans, partially offset by a decrease in non-performing residential mortgages.
Annualized net charge-offs for the quarter ended March 31, 2014 were 0.26 percent of average total loans, compared to 0.33 percent for the quarter ended December 31, 2013 and 0.62 percent for the quarter ended March 31, 2013. The allowance for credit losses as a percentage of non-performing loans was 128.5 percent at March 31, 2014, as compared to 132.8 percent at December 31, 2013 and 106.2 percent at March 31, 2013.
Non-interest Income
Non-interest income, excluding investment securities gains, decreased $2.2 million, or 5.4 percent, in comparison to the fourth quarter of 2013. Service charges on deposit accounts decreased $1.1 million, or 8.3 percent, including a $649,000 decrease in overdraft fees. Mortgage banking income decreased $758,000, including a $715,000 decrease in gains on sales of mortgage loans, as both volumes and spreads decreased.
Non-interest Expense
Non-interest expense decreased $7.2 million, or 6.2 percent, in the first quarter of 2014 compared to the fourth quarter of 2013. Salaries and employee benefits decreased $5.6 million, or 8.6 percent, due primarily to decreases in incentive compensation and health insurance expense, in addition to a $1.5 million gain recognized as a result of an amendment of the Corporation's postretirement health plan. These decreases were partially offset by a seasonal increase in payroll taxes and an increase in severance costs. A $1.5 million increase in net occupancy expense was mainly a result of increased snow removal costs. Other outside services declined $1.8 million due to the timing of consulting arrangements related to risk management and compliance initiatives.
About Fulton Financial
Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company that has banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates, headquartered as indicated: 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.
A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2013, which has been filed with the Securities and Exchange Commission and is available in the Investor Relations section of the Corporation's website (www.fult.com) and on the Securities and Exchange Commission's website (www.sec.gov). 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.
Non-GAAP Financial Measures
The Corporation uses certain non-GAAP financial measures in this earnings release. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this release.
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
% Change from
----------------
March December
March 31 March 31 December 31 31 31
2014 2013 2013 2013 2013
----------- ----------- ----------- ------ --------
ASSETS
Cash and due from
banks $ 260,389$ 174,479$ 218,540 49.2% 19.1%
Other interest-
earning assets 307,062 171,684 248,161 78.9% 23.7%
Loans held for sale 24,417 63,045 21,351 (61.3%) 14.4%
Investment
securities 2,501,198 2,736,269 2,568,434 (8.6%) (2.6%)
Loans, net of
unearned income 12,733,792 12,377,288 12,782,220 2.9% (0.4%)
Allowance for loan
losses (197,089) (220,041) (202,780) (10.4%) (2.8%)
----------- ----------- -----------
Net loans 12,536,703 12,157,247 12,579,440 3.1% (0.3%)
Premises and
equipment 225,647 226,754 226,021 (0.5%) (0.2%)
Accrued interest
receivable 43,376 47,485 44,037 (8.7%) (1.5%)
Goodwill and
intangible assets 532,747 534,987 533,076 (0.4%) (0.1%)
Other assets 480,350 570,787 495,574 (15.8%) (3.1%)
----------- ----------- -----------
Total Assets $16,911,889$16,682,737$16,934,634 1.4% (0.1%)
=========== =========== ===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits $12,669,917$12,388,460$12,491,186 2.3% 1.4%
Short-term
borrowings 1,069,684 1,126,966 1,258,629 (5.1%) (15.0%)
Other liabilities 230,108 216,337 238,048 6.4% (3.3%)
FHLB advances and
long-term debt 883,461 889,211 883,584 (0.6%) -
----------- ----------- -----------
Total Liabilities 14,853,170 14,620,974 14,871,447 1.6% (0.1%)
Shareholders'
equity 2,058,719 2,061,763 2,063,187 (0.1%) (0.2%)
----------- ----------- -----------
Total
Liabilities
and
Shareholders'
Equity $16,911,889$16,682,737$16,934,634 1.4% (0.1%)
=========== =========== ===========
LOANS, DEPOSITS AND SHORT-TERM
BORROWINGS DETAIL:
Loans, by type:
Real estate -
commercial
mortgage $ 5,137,454$ 4,729,930$ 5,101,922 8.6% 0.7%
Commercial -
industrial,
financial and
agricultural 3,574,130 3,658,483 3,628,420 (2.3%) (1.5%)
Real estate - home
equity 1,740,496 1,689,446 1,764,197 3.0% (1.3%)
Real estate -
residential
mortgage 1,331,465 1,303,454 1,337,380 2.1% (0.4%)
Real estate -
construction 584,217 597,597 573,672 (2.2%) 1.8%
Consumer 270,021 309,138 283,124 (12.7%) (4.6%)
Leasing and other 96,009 89,240 93,505 7.6% 2.7%
----------- ----------- -----------
Total Loans, net of
unearned income $12,733,792$12,377,288$12,782,220 2.9% (0.4%)
=========== =========== ===========
Deposits, by type:
Noninterest-bearing
demand $ 3,359,900$ 3,075,511$ 3,283,172 9.2% 2.3%
Interest-bearing
demand 2,960,577 2,698,811 2,945,210 9.7% 0.5%
Savings deposits 3,346,880 3,345,842 3,344,882 - 0.1%
Time deposits 3,002,560 3,268,296 2,917,922 (8.1%) 2.9%
----------- ----------- -----------
Total Deposits $12,669,917$12,388,460$12,491,186 2.3% 1.4%
=========== =========== ===========
Short-term
borrowings, by type:
Customer repurchase
agreements $ 220,426$ 158,214$ 175,621 39.3% 25.5%
Customer short-term
promissory notes 88,160 114,231 100,572 (22.8%) (12.3%)
Federal funds
purchased 361,098 729,521 582,436 (50.5%) (38.0%)
Short-term FHLB
advances 400,000 125,000 400,000 220.0% -
----------- ----------- -----------
Total Short-term
Borrowings $ 1,069,684$ 1,126,966$ 1,258,629 (5.1%) (15.0%)
=========== =========== ===========
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
2014 2013 2013 2013 2013
-------- -------- -------- ------ ------
Interest Income:
Interest income $148,792$151,322$152,457 (1.7%) (2.4%)
Interest expense 19,227 21,678 19,505 (11.3%) (1.4%)
-------- -------- --------
Net Interest Income 129,565 129,644 132,952 (0.1%) (2.5%)
Provision for credit
losses 2,500 15,000 2,500 (83.3%) -
-------- -------- --------
Net Interest Income
after Provision 127,065 114,644 130,452 10.8% (2.6%)
Non-Interest Income:
Service charges on deposit
accounts 11,711 14,111 12,770 (17.0%) (8.3%)
Investment management and
trust services 10,958 10,096 10,589 8.5% 3.5%
Other service charges and
fees 8,927 8,510 9,421 4.9% (5.2%)
Mortgage banking income 3,605 8,173 4,363 (55.9%) (17.4%)
Investment securities
gains - 2,473 33 (100.0%) (100.0%)
Other 3,305 3,896 3,556 (15.2%) (7.1%)
-------- -------- --------
Total Non-Interest
Income 38,506 47,259 40,732 (18.5%) (5.5%)
Non-Interest Expense:
Salaries and employee
benefits 59,566 61,212 65,194 (2.7%) (8.6%)
Net occupancy expense 13,603 11,844 12,134 14.9% 12.1%
Other outside services 3,812 2,860 5,633 33.3% (32.3%)
Data processing 3,796 3,903 3,386 (2.7%) 12.1%
Equipment expense 3,602 3,908 3,972 (7.8%) (9.3%)
Software 2,925 2,748 2,450 6.4% 19.4%
Professional fees 2,904 3,047 3,379 (4.7%) (14.1%)
FDIC insurance expense 2,689 2,847 2,839 (5.5%) (5.3%)
Operating risk loss 1,828 1,766 2,367 3.5% (22.8%)
Marketing 1,584 1,872 1,660 (15.4%) (4.6%)
Other real estate owned
and repossession expense 983 2,854 1,116 (65.6%) (11.9%)
Intangible amortization 315 534 834 (41.0%) (62.2%)
Other 11,947 11,541 11,798 3.5% 1.3%
-------- -------- --------
Total Non-Interest
Expense 109,554 110,936 116,762 (1.2%) (6.2%)
-------- -------- --------
Income Before Income
Taxes 56,017 50,967 54,422 9.9% 2.9%
Income tax expense 14,234 11,740 12,339 21.2% 15.4%
-------- -------- --------
Net Income $ 41,783$ 39,227$ 42,083 6.5% (0.7%)
======== ======== ========
PER SHARE:
Net income:
Basic $ 0.22$ 0.20$ 0.22 10.0% -
Diluted 0.22 0.20 0.22 10.0% -
Cash dividends $ 0.08$ 0.08$ 0.08 - -
Shareholders' equity 10.90 10.56 10.71 3.2% 1.8%
Shareholders' equity
(tangible) 8.08 7.82 7.94 3.3% 1.8%
Weighted average shares
(basic) 189,467 196,299 191,577 (3.5%) (1.1%)
Weighted average shares
(diluted) 190,489 197,217 192,658 (3.4%) (1.1%)
Shares outstanding, end of
period 188,850 195,276 192,652 (3.3%) (2.0%)
SELECTED FINANCIAL RATIOS:
Return on average assets 1.01% 0.96% 0.99%
Return on average
shareholders' equity 8.21% 7.67% 8.14%
Return on average
shareholders' equity
(tangible) 11.13% 10.43% 11.15%
Net interest margin 3.47% 3.55% 3.48%
Efficiency ratio 63.38% 61.78% 65.14%
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Quarter Ended
March 31, 2014 March 31, 2013
----------------------------- -----------------------------
Average Interest Yield/ Average Interest Yield/
Balance (1) Rate Balance (1) Rate
------------ -------- ------ ----------- -------- ------
ASSETS
Interest-
earning
assets:
Loans, net of
unearned
income $ 12,762,357$134,749 4.28% $12,257,280$136,948 4.53%
Taxable
investment
securities 2,257,773 13,266 2.35% 2,421,178 13,397 2.22%
Tax-exempt
investment
securities 279,278 3,613 5.17% 292,118 3,814 5.22%
Equity
securities 33,922 429 5.11% 44,371 510 4.64%
------------ -------- ------ ----------- -------- ------
Total
Investment
Securities 2,570,973 17,308 2.70% 2,757,667 17,721 2.57%
Loans held
for sale 13,426 134 4.00% 47,885 495 4.14%
Other
interest-
earning
assets 258,803 882 1.36% 190,576 429 0.90%
------------ -------- ------ ----------- -------- ------
Total
Interest-
earning
Assets 15,605,559 153,073 3.97% 15,253,408 155,593 4.13%
Noninterest-
earning
assets:
Cash and due
from banks 199,641 202,507
Premises and
equipment 226,295 226,466
Other assets 1,032,071 1,071,440
Less:
allowance
for loan
losses (203,201) (227,858)
------------ -----------
Total Assets $ 16,860,365$16,525,963
============ ===========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-
bearing
liabilities:
Demand
deposits $ 2,945,211$ 909 0.13% $ 2,705,835$ 877 0.13%
Savings
deposits 3,351,871 1,035 0.13% 3,334,305 1,023 0.12%
Time deposits 2,932,456 5,952 0.82% 3,321,309 8,501 1.04%
------------ -------- ------ ----------- -------- ------
Total
Interest-
bearing
Deposits 9,229,538 7,896 0.35% 9,361,449 10,401 0.45%
Short-term
borrowings 1,208,953 633 0.21% 1,032,122 509 0.20%
FHLB advances
and long-
term debt 883,532 10,698 4.88% 891,173 10,768 4.87%
------------ -------- ------ ----------- -------- ------
Total
Interest-
bearing
Liabilities 11,322,023 19,227 0.69% 11,284,744 21,678 0.78%
Noninterest-
bearing
liabilities:
Demand
deposits 3,243,424 2,968,777
Other 232,004 198,944
------------ -----------
Total
Liabilities 14,797,451 14,452,465
Shareholders'
equity 2,062,914 2,073,498
------------ -----------
Total
Liabilities
and
Shareholders'
Equity $ 16,860,365$16,525,963
============ ===========
Net interest
income/net
interest
margin
(fully
taxable
equivalent) 133,846 3.47% 133,915 3.55%
====== ======
Tax
equivalent
adjustment (4,281) (4,271)
-------- --------
Net interest
income $129,565$129,644
======== ========
Quarter Ended
December 31, 2013
-----------------------------
Average Interest Yield/
Balance (1) Rate
----------- -------- ------
ASSETS
Interest-
earning
assets:
Loans, net of
unearned
income $12,792,566$138,336 4.29%
Taxable
investment
securities 2,289,672 13,431 2.35%
Tax-exempt
investment
securities 283,799 3,574 5.04%
Equity
securities 33,887 413 4.83%
----------- -------- ------
Total
Investment
Securities 2,607,358 17,418 2.67%
Loans held
for sale 20,059 290 5.78%
Other
interest-
earning
assets 263,478 737 1.12%
----------- -------- ------
Total
Interest-
earning
Assets 15,683,461 156,781 3.98%
Noninterest-
earning
assets:
Cash and due
from banks 212,463
Premises and
equipment 226,955
Other assets 1,008,304
Less:
allowance
for loan
losses (210,636)
-----------
Total Assets $16,920,547
===========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-
bearing
liabilities:
Demand
deposits $ 2,966,994$ 969 0.13%
Savings
deposits 3,410,030 1,042 0.12%
Time deposits 2,965,604 6,117 0.82%
----------- -------- ------
Total
Interest-
bearing
Deposits 9,342,628 8,128 0.35%
Short-term
borrowings 1,099,709 520 0.19%
FHLB advances
and long-
term debt 888,378 10,857 4.87%
----------- -------- ------
Total
Interest-
bearing
Liabilities 11,330,715 19,505 0.68%
Noninterest-
bearing
liabilities:
Demand
deposits 3,318,073
Other 221,010
-----------
Total
Liabilities 14,869,798
Shareholders'
equity 2,050,749
-----------
Total
Liabilities
and
Shareholders'
Equity $16,920,547
===========
Net interest
income/net
interest
margin
(fully
taxable
equivalent) 137,276 3.48%
======
Tax
equivalent
adjustment (4,324)
--------
Net interest
income $132,952
========
(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
----------------------------------- ----------------
December March December
March 31 March 31 31 31 31
2014 2013 2013 2013 2013
----------- ----------- ----------- ----- --------
Loans, by type:
Real estate -
commercial
mortgage $ 5,085,128$ 4,666,494$ 5,065,963 9.0% 0.4%
Commercial -
industrial,
financial and
agricultural 3,637,075 3,662,566 3,639,690 (0.7%) (0.1%)
Real estate - home
equity 1,755,346 1,662,173 1,774,919 5.6% (1.1%)
Real estate -
residential
mortgage 1,336,323 1,283,168 1,331,987 4.1% 0.3%
Real estate -
construction 576,346 591,338 581,306 (2.5%) (0.9%)
Consumer 274,910 305,480 287,245 (10.0%) (4.3%)
Leasing and other 97,229 86,061 111,456 13.0% (12.8%)
----------- ----------- -----------
Total Loans, net of
unearned income $12,762,357$12,257,280$12,792,566 4.1% (0.2%)
=========== =========== ===========
Deposits, by type:
Noninterest-bearing
demand $ 3,243,424$ 2,968,777$ 3,318,073 9.3% (2.2%)
Interest-bearing
demand 2,945,211 2,705,835 2,966,994 8.8% (0.7%)
Savings deposits 3,351,871 3,334,305 3,410,030 0.5% (1.7%)
Time deposits 2,932,456 3,321,309 2,965,604 (11.7%) (1.1%)
----------- ----------- -----------
Total Deposits $12,472,962$12,330,226$12,660,701 1.2% (1.5%)
=========== =========== ===========
Short-term
borrowings, by type:
Customer repurchase
agreements $ 187,362$ 165,109$ 196,997 13.5% (4.9%)
Customer short-term
promissory notes 102,000 112,041 93,986 (9.0%) 8.5%
Federal funds
purchased 416,230 709,779 408,726 (41.4%) 1.8%
Short-term FHLB
advances and other
borrowings 503,361 45,193 400,000 N/M 25.8%
----------- ----------- -----------
Total Short-term
Borrowings $ 1,208,953$ 1,032,122$ 1,099,709 17.1% 9.9%
=========== =========== ===========
N/M - Not meaningful
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
Quarter Ended
--------------------------------------
Mar 31 Mar 31 Dec 31
2014 2013 2013
----------- ----------- ----------
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period $ 204,917$ 225,439$ 212,838
Loans charged off:
Commercial - industrial,
financial and agricultural (5,125) (9,502) (5,527)
Consumer and home equity (2,402) (2,954) (1,879)
Real estate - commercial
mortgage (1,386) (4,133) (7,779)
Real estate - residential
mortgage (846) (3,050) (1,423)
Real estate - construction (214) (1,986) (1,391)
Leasing and other (295) (481) (616)
----------- ----------- ----------
Total loans charged off (10,268) (22,106) (18,615)
Recoveries of loans previously
charged off:
Commercial - industrial,
financial and agricultural 744 379 5,851
Consumer and home equity 565 837 451
Real estate - commercial
mortgage 44 1,064 740
Real estate - residential
mortgage 116 81 106
Real estate - construction 224 671 888
Leasing and other 164 162 158
----------- ----------- ----------
Recoveries of loans previously
charged off 1,857 3,194 8,194
----------- ----------- ----------
Net loans charged off (8,411) (18,912) (10,421)
Provision for credit losses 2,500 15,000 2,500
----------- ----------- ----------
Balance at end of period $ 199,006$ 221,527$ 204,917
=========== =========== ==========
Net charge-offs to average loans
(annualized) 0.26% 0.62% 0.33%
=========== =========== ==========
NON-PERFORMING ASSETS:
Non-accrual loans $ 133,705$ 179,334$ 133,753
Loans 90 days past due and
accruing 21,225 29,325 20,524
----------- ----------- ----------
Total non-performing loans 154,930 208,659 154,277
Other real estate owned 15,300 23,820 15,052
----------- ----------- ----------
Total non-performing assets $ 170,230$ 232,479$ 169,329
=========== =========== ==========
NON-PERFORMING LOANS, BY TYPE:
Real estate - commercial mortgage $ 45,876$ 58,805$ 44,068
Commercial - industrial, financial
and agricultural 38,830 61,113 38,021
Real estate - residential mortgage 29,305 36,361 31,347
Real estate - construction 20,758 31,919 21,267
Consumer and home equity 20,087 20,250 19,526
Leasing 74 211 48
----------- ----------- ----------
Total non-performing loans $ 154,930$ 208,659$ 154,277
=========== =========== ==========
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:
Real-estate - residential mortgage $ 30,363$ 33,095$ 28,815
Real-estate - commercial mortgage 19,514 28,421 19,758
Real estate - construction 8,430 11,125 10,117
Commercial - industrial, financial
and agricultural 6,755 9,031 8,045
Consumer and home equity 2,622 1,549 1,376
----------- ----------- ----------
Total accruing TDRs 67,684 83,221 68,111
Non-accrual TDRs (1) 27,487 33,215 30,209
----------- ----------- ----------
Total TDRs $ 95,171$ 116,436$ 98,320
=========== =========== ==========
(1) Included within non-accrual loans above.
DELINQUENCY RATES, BY TYPE:
March 31, 2014 March 31, 2013 December 31, 2013
----------------- ----------------- -----------------
> than > than > than
or = or = or =
to 90 to 90 to 90
31-89 Days 31-89 Days 31-89 Days
Days (2) Total Days (2) Total Days (2) Total
----- ----- ----- ----- ----- ----- ----- ----- -----
Real estate -
commercial mortgage 0.35% 0.89% 1.24% 0.39% 1.25% 1.64% 0.38% 0.87% 1.25%
Commercial -
industrial,
financial and
agricultural 0.33% 1.09% 1.42% 0.35% 1.67% 2.02% 0.30% 1.04% 1.34%
Real estate -
construction 0.43% 3.55% 3.98% 0.17% 5.34% 5.51% 0.11% 3.71% 3.82%
Real estate -
residential
mortgage 1.53% 2.20% 3.73% 2.07% 2.79% 4.86% 1.74% 2.34% 4.08%
Consumer, home
equity, leasing and
other 0.89% 0.96% 1.85% 0.82% 0.98% 1.80% 1.10% 0.91% 2.01%
----- ----- ----- ----- ----- ----- ----- ----- -----
Total 0.56% 1.22% 1.78% 0.62% 1.68% 2.30% 0.61% 1.20% 1.81%
===== ===== ===== ===== ===== ===== ===== ===== =====
(2) Includes non-accrual loans
ASSET QUALITY RATIOS:
Mar 31 Mar 31 Dec 31
2014 2013 2013
-------- -------- --------
Non-accrual loans to total loans 1.05% 1.45% 1.05%
Non-performing assets to total loans and
OREO 1.34% 1.87% 1.32%
Non-performing assets to total assets 1.01% 1.39% 1.00%
Allowance for credit losses to loans
outstanding 1.56% 1.79% 1.60%
Allowance for credit losses to non-
performing loans 128.45% 106.17% 132.82%
Non-performing assets to tangible common
shareholders' equity and allowance for
credit losses 9.87% 13.30% 9.76%
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:
Quarter Ended
---------------------------------------
March 31 March 31 December 31
2014 2013 2013
----------- ----------- -----------
Shareholders' equity (tangible),
per share
Shareholders' equity $ 2,058,719$ 2,061,763$ 2,063,187
Less: Goodwill and intangible
assets (532,747) (534,987) (533,076)
----------- ----------- -----------
Tangible shareholders' equity
(numerator) $ 1,525,972$ 1,526,776$ 1,530,111
=========== =========== ===========
Shares outstanding, end of period
(denominator) 188,850 195,276 192,652
=========== =========== ===========
Shareholders' equity (tangible),
per share $ 8.08$ 7.82$ 7.94
=========== =========== ===========
Return on average common
shareholders' equity (tangible)
Net income $ 41,783$ 39,227$ 42,083
Plus: Intangible amortization, net
of tax 204 347 541
----------- ----------- -----------
Numerator $ 41,987$ 39,574$ 42,624
=========== =========== ===========
Average shareholders' equity $ 2,062,914$ 2,073,498 2,050,749
Less: Average goodwill and
intangible assets (532,901) (535,255) (533,597)
----------- ----------- -----------
Average tangible shareholders'
equity (denominator) $ 1,530,013$ 1,538,243$ 1,517,152
=========== =========== ===========
Return on average common
shareholders' equity
(tangible), annualized 11.13% 10.43% 11.15%
=========== =========== ===========
Efficiency ratio
Non-interest expense $ 109,554$ 110,936$ 116,762
Less: Intangible amortization (315) (534) (834)
----------- ----------- -----------
Numerator $ 109,239$ 110,402$ 115,928
=========== =========== ===========
Net interest income (fully taxable
equivalent) $ 133,846$ 133,915$ 137,276
Plus: Total Non-interest income 38,506 47,259 40,732
Less: Investment securities gains - (2,473) (33)
----------- ----------- -----------
Denominator $ 172,352$ 178,701$ 177,975
=========== =========== ===========
Efficiency ratio 63.38% 61.78% 65.14%
=========== =========== ===========
Non-performing assets to tangible
common shareholders' equity and
allowance for credit losses
Non-performing assets (numerator) $ 170,230$ 232,479$ 169,329
=========== =========== ===========
Tangible shareholders' equity $ 1,525,972$ 1,526,776$ 1,530,111
Plus: Allowance for credit losses 199,006 221,527 204,917
----------- ----------- -----------
Tangible shareholders' equity and
allowance for credit losses
(denominator) $ 1,724,978$ 1,748,303$ 1,735,028
=========== =========== ===========
Non-performing assets to
tangible common shareholders'
equity and allowance for credit
losses 9.87% 13.30% 9.76%
=========== =========== ===========
Media Contact:
Laura J. Wakeley
(717) 291-2616
Investor Contact:
David C. Hostetter
(717) 291-2456
Source: Fulton Financial Corporation