LANCASTER, PA--(Marketwired - Jan 20, 2015) - Fulton Financial Corporation (NASDAQ: FULT)
- Diluted earnings per share for the fourth quarter of 2014 was 21 cents, unchanged from the third quarter of 2014. For the year ended December 31, 2014, diluted earnings per share was 84 cents, a 1.2 percent increase from 2013. During the fourth quarter of 2014, total cash dividends increased to 10 cents per share, compared to 8 cents per share for the third quarter of 2014, due to the payment of a special 2 cent per share cash dividend in December 2014.
- Net interest income for the fourth quarter of 2014 decreased $1.3 million, or 1.0 percent, compared to the third quarter of 2014, while the net interest margin decreased 8 basis points, to 3.31 percent. For the year ended December 31, 2014, net interest income decreased $12.3 million, or 2.3 percent, compared to 2013, while the net interest margin decreased 11 basis points, to 3.39 percent.
- Average loans for the fourth quarter of 2014 increased $133.3 million, or 1.0 percent, compared to the third quarter of 2014. Average loans for the year ended December 31, 2014 increased $306.7 million, or 2.4 percent, in comparison to 2013.
- Average deposits for the fourth quarter of 2014 increased $302.4 million, or 2.3 percent, compared to the third quarter of 2014. Average deposits for the year ended December 31, 2014 increased $394.5 million, or 3.2 percent, compared to 2013.
- The provision for credit losses was $3.0 million for the fourth quarter of 2014, a decrease of $500,000 from the third quarter of 2014. For the year ended December 31, 2014, the provision for credit losses decreased $28.0 million, or 69.1 percent, compared to 2013. Non-performing loans decreased $5.4 million, or 3.7 percent, in comparison to September 30, 2014 and $15.8 million, or 10.2 percent, in comparison to December 31, 2013.
- Non-interest income, excluding investment securities gains, decreased $566,000, or 1.4 percent, in comparison to the third quarter of 2014, while non-interest expense increased $1.9 million, or 1.7 percent. For the year ended December 31, 2014, non-interest income, excluding investment securities gains, decreased $14.3 million, or 8.0 percent, compared to 2013, while non-interest expense decreased $2.2 million, or 0.5 percent.
- In November 2014, the Corporation issued $100.0 million subordinated debt, the net proceeds of which were used to repurchase outstanding shares of its common stock pursuant to an accelerated share repurchase agreement (ASR).
Fulton Financial Corporation (NASDAQ: FULT) reported net income of $37.9 million, or 21 cents per diluted share, for the fourth quarter of 2014, and net income of $157.9 million, or 84 cents per diluted share, for 2014.
"Throughout 2014, we deployed capital to enhance shareholder value through a series of stock repurchase programs and a special cash dividend. We also continued the build out of our regulatory, compliance and technology infrastructure, while at the same time reducing non-interest expenses," said E. Philip Wenger, Chairman, CEO and President. "In the fourth quarter, the persistently low interest rate environment exerted further pressure on our earning asset yields and net interest margin. However, we were pleased to see good growth in core deposits and steady improvement in overall asset quality."
Shareholders' Equity and Capital Actions
During the fourth quarter of 2014, the Corporation issued $100.0 million of subordinated debt, maturing in November 2024, at a coupon rate of 4.50 percent. In conjunction with this debt offering, the Corporation entered into an ASR with a third party to repurchase $100 million of shares of the Corporation's common stock. Under the terms of the ASR, the Corporation paid $100 million to the third party on November 18, 2014 and received an initial delivery of 6.5 million shares. The final number of shares to be repurchased under the ASR will depend upon the daily volume-weighted average prices of the Corporation's shares, less a discount, over the term of the ASR. Final settlement of the ASR is scheduled for no later than April 17, 2015. The subordinated debt offering and ASR had positive impacts on both diluted earnings per share and return on average shareholders' equity. Also during the fourth quarter of 2014, the Corporation paid a special 2 cent per share cash dividend to shareholders, resulting in total fourth quarter dividends to common shareholders of 10 cents per share.
In 2014, the Corporation repurchased 14.5 million, or 7.5 percent, of its shares outstanding as of December 31, 2013.
Net Interest Income and Margin
Net interest income for the fourth quarter of 2014 decreased $1.3 million, or 1.0 percent, from the third quarter of 2014. Net interest margin decreased 8 basis points, or 2.4 percent, to 3.31 percent in the fourth quarter of 2014 from 3.39 percent in the third quarter of 2014. Average yields on interest-earning assets decreased five basis points, while the average cost of interest-bearing liabilities increased three basis points during the fourth quarter of 2014 in comparison to the third quarter of 2014.
For the year ended December 31, 2014, net interest income decreased $12.3 million, or 2.3 percent. The net interest margin was 3.39 percent for 2014, compared to 3.50 percent for 2013. Average yields on interest-earning assets decreased 12 basis points, while the average cost of interest-bearing liabilities was unchanged from 2013.
Average Balance Sheet
Total average assets for the fourth quarter of 2014 were $17.1 billion, an increase of $138.5 million, or 0.8 percent, from the third quarter of 2014. Average loans, net of unearned income, increased $133.3 million, or 1.0 percent, in comparison to the third quarter of 2014.
Three Months Ended | Increase (decrease) | |||||||||||||||||||
December 31, 2014 | September 30, 2014 | in Balance | ||||||||||||||||||
Balance | Yield (1) | Balance | Yield (1) | $ | % | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Average Loans, net of unearned income, by type: | ||||||||||||||||||||
Real estate - commercial mortgage | $ | 5,131,375 | 4.36 | % | $ | 5,114,221 | 4.35 | % | $ | 17,154 | 0.3 | % | ||||||||
Commercial - industrial, financial and agricultural | 3,723,211 | 3.81 | % | 3,657,047 | 3.97 | % | 66,164 | 1.8 | % | |||||||||||
Real estate - home equity | 1,735,769 | 4.13 | % | 1,727,253 | 4.18 | % | 8,516 | 0.5 | % | |||||||||||
Real estate - residential mortgage | 1,378,452 | 3.91 | % | 1,369,087 | 3.93 | % | 9,365 | 0.7 | % | |||||||||||
Real estate - construction | 697,741 | 3.96 | % | 663,922 | 3.98 | % | 33,819 | 5.1 | % | |||||||||||
Consumer | 275,349 | 5.65 | % | 284,630 | 5.39 | % | (9,281 | ) | (3.3 | %) | ||||||||||
Leasing and other | 114,256 | 7.15 | % | 106,661 | 7.36 | % | 7,595 | 7.1 | % | |||||||||||
Total Average Loans, net of unearned income | $ | 13,056,153 | 4.16 | % | $ | 12,922,821 | 4.20 | % | $ | 133,332 | 1.0 | % | ||||||||
(1) | Presented on a fully-taxable equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances. |
For the year ended December 31, 2014, average loans increased $306.7 million, or 2.4 percent, in comparison to 2013.
Total average liabilities increased $175.8 million, or 1.2 percent, from the third quarter of 2014, due to a $302.4 million, or 2.3 percent, increase in average deposits and a $90.8 million, or 9.1 percent, increase in Federal Home Loan Bank (FHLB) advances and long-term debt, partially offset by a $249.6 million, or 37.4 percent, decrease in average short-term borrowings. Average deposits and interest rates, by type, for the fourth quarter of 2014 in comparison to the third quarter of 2014, are summarized in the following table:
Three Months Ended | |||||||||||||||||||
December 31, 2014 | September 30, 2014 | Increase (decrease) in Balance | |||||||||||||||||
Balance | Rate | Balance | Rate | $ | % | ||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Average Deposits, by type: | |||||||||||||||||||
Noninterest-bearing demand | $ | 3,630,780 | - | % | $ | 3,514,033 | - | % | $ | 116,747 | 3.3 | % | |||||||
Interest-bearing demand | 3,145,658 | 0.13 | % | 3,047,191 | 0.12 | % | 98,467 | 3.2 | % | ||||||||||
Savings deposits | 3,548,504 | 0.13 | % | 3,468,958 | 0.12 | % | 79,546 | 2.3 | % | ||||||||||
Total average demand and savings | 10,324,942 | 0.08 | % | 10,030,182 | 0.08 | % | 294,760 | 2.9 | % | ||||||||||
Time deposits | 3,016,834 | 0.96 | % | 3,009,225 | 0.92 | % | 7,609 | 0.3 | % | ||||||||||
Total Average Deposits | $ | 13,341,776 | 0.28 | % | $ | 13,039,407 | 0.27 | % | $ | 302,369 | 2.3 | % | |||||||
For the year ended December 31, 2014, average deposits increased $394.5 million, or 3.2 percent, in comparison to 2013.
Asset Quality
Non-performing assets were $150.5 million, or 0.88 percent of total assets, at December 31, 2014, compared to $157.3 million, or 0.91 percent of total assets, at September 30, 2014 and $169.3 million, or 1.00 percent of total assets, at December 31, 2013. The $6.8 million, or 4.3 percent, decrease in non-performing assets in comparison to the third quarter of 2014 was primarily due to a decrease in non-performing commercial loans and construction loans, as well as a decrease in other real estate owned (OREO).
Annualized net charge-offs for the quarter ended December 31, 2014 were 0.25 percent of average total loans, compared to 0.18 percent for the quarter ended September 30, 2014 and 0.33 percent for the quarter ended December 31, 2013. The allowance for credit losses as a percentage of non-performing loans was 134.3 percent at December 31, 2014, as compared to 132.9 percent at September 30, 2014 and 132.8 percent at December 31, 2013.
Non-interest Income
Non-interest income, excluding investment securities gains, decreased $566,000, or 1.4 percent, in comparison to the third quarter of 2014. Service charges on deposit accounts decreased $572,000, or 4.5 percent, primarily due to a decrease in overdraft fees. Mortgage banking income decreased $315,000 due to a decrease in spreads, while loan volumes were flat. Partially offsetting these decreases was a $535,000, or 5.4 percent, increase in other service charges and fees.
For the year ended December 31, 2014, non-interest income, excluding investment securities gains, decreased $14.3 million, or 8.0 percent, in comparison to 2013. Mortgage banking income decreased $13.5 million, or 44.2 percent, due to decreases in volumes and spreads. Service charges on deposit accounts decreased $6.2 million, or 11.1 percent, due primarily to lower overdraft fees. These decreases in non-interest income were partially offset by a $2.9 million increase in other service charges and fees and a $2.9 million increase in investment management and trust services income.
Non-interest Expense
Non-interest expense increased $1.9 million, or 1.7 percent, in the fourth quarter of 2014, compared to the third quarter of 2014. Salaries and employee benefits increased $3.0 million, or 4.7 percent, in comparison to the third quarter of 2014, due primarily to an increase in self-insured healthcare costs and employee salaries. Marketing expenses increased $616,000, or 34.3 percent. Other non-interest expense increased $1.6 million, or 14.5 percent, including increases in travel and entertainment expenses and provisions for reward points earned on debit card transactions. Partially offsetting these increases in non-interest expense were a $1.1 million decrease in OREO and repossession expense, an $870,000 decrease in professional fees and a $757,000 decrease in operating risk loss.
For the year ended December 31, 2014, non-interest expense decreased $2.2 million, or 0.5 percent, in comparison to 2013. In 2014, the Corporation implemented a series of cost saving initiatives which reduced expenses by approximately $7 million. These initiatives included the consolidation of 13 branches, streamlining of subsidiary bank management structures and other employee compensation and benefit reductions. Salaries and employee benefits decreased $2.2 million, or 0.9 percent, due to the cost saving initiatives, partially offset by an increase in self-insured healthcare costs. Also contributing to the decrease in non-interest expense was a $5.0 million decrease in operating risk loss and a $4.1 million decrease in OREO and repossession expense. Offsetting these decreases in non-interest expense was a $9.5 million, or 50.6 percent, increase in other outside services, largely attributable to continuing risk management and compliance efforts, including the enhancement of the Corporation's Bank Secrecy Act and anti-money laundering compliance program (the "BSA/AML Compliance Program"). The Corporation previously disclosed regulatory enforcement orders received by the Corporation and five of its banking subsidiaries during 2014 related to its BSA/AML Compliance Program.
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, and the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2014, June 30, 2014, and September 30, 2014, which have been filed with the Securities and Exchange Commission and are 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 | ||||||||||||||||
December 31 | December 31 | September 30 | December 31 | September 30 | ||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | ||||||||||||
ASSETS | ||||||||||||||||
Cash and due from banks | $ | 105,702 | $ | 218,540 | $ | 220,946 | (51.6 | %) | (52.2 | %) | ||||||
Other interest-earning assets | 423,083 | 248,161 | 377,579 | 70.5 | % | 12.1 | % | |||||||||
Loans held for sale | 17,522 | 21,351 | 25,212 | (17.9 | %) | (30.5 | %) | |||||||||
Investment securities | 2,323,371 | 2,568,434 | 2,470,609 | (9.5 | %) | (6.0 | %) | |||||||||
Loans, net of unearned income | 13,111,716 | 12,782,220 | 13,030,405 | 2.6 | % | 0.6 | % | |||||||||
Allowance for loan losses | (184,144 | ) | (202,780 | ) | (189,477 | ) | (9.2 | %) | (2.8 | %) | ||||||
Net loans | 12,927,572 | 12,579,440 | 12,840,928 | 2.8 | % | 0.7 | % | |||||||||
Premises and equipment | 226,027 | 226,021 | 224,441 | - | 0.7 | % | ||||||||||
Accrued interest receivable | 41,818 | 44,037 | 43,544 | (5.0 | %) | (4.0 | %) | |||||||||
Goodwill and intangible assets | 531,803 | 533,076 | 532,117 | (0.2 | %) | (0.1 | %) | |||||||||
Other assets | 527,869 | 495,574 | 502,798 | 6.5 | % | 5.0 | % | |||||||||
Total Assets | $ | 17,124,767 | $ | 16,934,634 | $ | 17,238,174 | 1.1 | % | (0.7 | %) | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
Deposits | $ | 13,367,506 | $ | 12,491,186 | $ | 13,333,627 | 7.0 | % | 0.3 | % | ||||||
Short-term borrowings | 329,719 | 1,258,629 | 564,952 | (73.8 | %) | (41.6 | %) | |||||||||
Other liabilities | 291,464 | 238,048 | 243,300 | 22.4 | % | 19.8 | % | |||||||||
FHLB advances and long-term debt | 1,139,413 | 883,584 | 1,018,289 | 29.0 | % | 11.9 | % | |||||||||
Total Liabilities | 15,128,102 | 14,871,447 | 15,160,168 | 1.7 | % | (0.2 | %) | |||||||||
Shareholders' equity | 1,996,665 | 2,063,187 | 2,078,006 | (3.2 | %) | (3.9 | %) | |||||||||
Total Liabilities and Shareholders' Equity | $ | 17,124,767 | $ | 16,934,634 | $ | 17,238,174 | 1.1 | % | (0.7 | %) | ||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||
Loans, by type: | ||||||||||||||||
Real estate - commercial mortgage | $ | 5,197,155 | $ | 5,101,922 | $ | 5,156,979 | 1.9 | % | 0.8 | % | ||||||
Commercial - industrial, financial and agricultural | 3,725,567 | 3,628,420 | 3,691,262 | 2.7 | % | 0.9 | % | |||||||||
Real estate - home equity | 1,736,688 | 1,764,197 | 1,733,036 | (1.6 | %) | 0.2 | % | |||||||||
Real estate - residential mortgage | 1,377,068 | 1,337,380 | 1,372,033 | 3.0 | % | 0.4 | % | |||||||||
Real estate - construction | 690,601 | 573,672 | 687,728 | 20.4 | % | 0.4 | % | |||||||||
Consumer | 265,431 | 283,124 | 278,219 | (6.2 | %) | (4.6 | %) | |||||||||
Leasing and other | 119,206 | 93,505 | 111,148 | 27.5 | % | 7.2 | % | |||||||||
Total Loans, net of unearned income | $ | 13,111,716 | $ | 12,782,220 | $ | 13,030,405 | 2.6 | % | 0.6 | % | ||||||
Deposits, by type: | ||||||||||||||||
Noninterest-bearing demand | $ | 3,640,623 | $ | 3,283,172 | $ | 3,556,810 | 10.9 | % | 2.4 | % | ||||||
Interest-bearing demand | 3,150,612 | 2,945,210 | 3,164,514 | 7.0 | % | (0.4 | %) | |||||||||
Savings deposits | 3,504,820 | 3,344,882 | 3,620,919 | 4.8 | % | (3.2 | %) | |||||||||
Time deposits | 3,071,451 | 2,917,922 | 2,991,384 | 5.3 | % | 2.7 | % | |||||||||
Total Deposits | $ | 13,367,506 | $ | 12,491,186 | $ | 13,333,627 | 7.0 | % | 0.3 | % | ||||||
Short-term borrowings, by type: | ||||||||||||||||
Customer repurchase agreements | $ | 158,394 | $ | 175,621 | $ | 195,121 | (9.8 | %) | (18.8 | %) | ||||||
Customer short-term promissory notes | 95,106 | 100,572 | 78,225 | (5.4 | %) | 21.6 | % | |||||||||
Federal funds purchased | 6,219 | 582,436 | 6,606 | (98.9 | %) | (5.9 | %) | |||||||||
Short-term FHLB advances | 70,000 | 400,000 | 285,000 | (82.5 | %) | (75.4 | %) | |||||||||
Total Short-term Borrowings | $ | 329,719 | $ | 1,258,629 | $ | 564,952 | (73.8 | %) | (41.6 | %) | ||||||
FULTON FINANCIAL CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
in thousands, except per-share data and percentages |
Three Months Ended | % Change from | Year Ended Dec 31 | ||||||||||||||||||||||||
Dec 31 2014 | Dec 31 2013 | Sep 30 2014 | Dec 31 2013 | Sep 30 2014 | 2014 | 2013 | % Change | |||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||
Interest income | $ | 149,594 | $ | 152,457 | $ | 149,790 | (1.9 | %) | (0.1 | %) | $ | 596,078 | $ | 609,689 | (2.2 | %) | ||||||||||
Interest expense | 21,556 | 19,505 | 20,424 | 10.5 | % | 5.5 | % | 81,211 | 82,495 | (1.6 | %) | |||||||||||||||
Net Interest Income | 128,038 | 132,952 | 129,366 | (3.7 | %) | (1.0 | %) | 514,867 | 527,194 | (2.3 | %) | |||||||||||||||
Provision for credit losses | 3,000 | 2,500 | 3,500 | 20.0 | % | (14.3 | %) | 12,500 | 40,500 | (69.1 | %) | |||||||||||||||
Net Interest Income after Provision | 125,038 | 130,452 | 125,866 | (4.2 | %) | (0.7 | %) | 502,367 | 486,694 | 3.2 | % | |||||||||||||||
Non-Interest Income: | ||||||||||||||||||||||||||
Service charges on deposit accounts | 12,229 | 12,770 | 12,801 | (4.2 | %) | (4.5 | %) | 49,293 | 55,470 | (11.1 | %) | |||||||||||||||
Investment management and trust services | 11,188 | 10,589 | 11,120 | 5.7 | % | 0.6 | % | 44,605 | 41,706 | 7.0 | % | |||||||||||||||
Other service charges and fees | 10,489 | 9,421 | 9,954 | 11.3 | % | 5.4 | % | 39,896 | 36,957 | 8.0 | % | |||||||||||||||
Mortgage banking income | 3,723 | 4,363 | 4,038 | (14.7 | %) | (7.8 | %) | 17,107 | 30,656 | (44.2 | %) | |||||||||||||||
Investment securities gains | 848 | 33 | 81 | N/M | N/M | 2,041 | 8,004 | (74.5 | %) | |||||||||||||||||
Other | 3,624 | 3,556 | 3,906 | 1.9 | % | (7.2 | %) | 14,437 | 14,871 | (2.9 | %) | |||||||||||||||
Total Non-Interest Income | 42,101 | 40,732 | 41,900 | 3.4 | % | 0.5 | % | 167,379 | 187,664 | (10.8 | %) | |||||||||||||||
Non-Interest Expense: | ||||||||||||||||||||||||||
Salaries and employee benefits | 65,398 | 65,194 | 62,434 | 0.3 | % | 4.7 | % | 251,021 | 253,240 | (0.9 | %) | |||||||||||||||
Net occupancy expense | 11,481 | 12,134 | 11,582 | (5.4 | %) | (0.9 | %) | 48,130 | 46,944 | 2.5 | % | |||||||||||||||
Other outside services | 8,720 | 5,633 | 8,632 | 54.8 | % | 1.0 | % | 28,404 | 18,856 | 50.6 | % | |||||||||||||||
Data processing | 4,346 | 3,386 | 4,689 | 28.4 | % | (7.3 | %) | 17,162 | 16,555 | 3.7 | % | |||||||||||||||
Equipment expense | 3,298 | 3,972 | 3,307 | (17.0 | %) | (0.3 | %) | 13,567 | 15,419 | (12.0 | %) | |||||||||||||||
Software | 3,271 | 2,450 | 3,353 | 33.5 | % | (2.4 | %) | 12,758 | 11,560 | 10.4 | % | |||||||||||||||
FDIC insurance expense | 2,772 | 2,839 | 2,882 | (2.4 | %) | (3.8 | %) | 10,958 | 11,605 | (5.6 | %) | |||||||||||||||
Marketing | 2,414 | 1,660 | 1,798 | 45.4 | % | 34.3 | % | 8,133 | 7,705 | 5.6 | % | |||||||||||||||
Professional fees | 2,382 | 3,379 | 3,252 | (29.5 | %) | (26.8 | %) | 12,097 | 13,150 | (8.0 | %) | |||||||||||||||
Operating risk loss | 485 | 2,367 | 1,242 | (79.5 | %) | (61.0 | %) | 4,271 | 9,290 | (54.0 | %) | |||||||||||||||
Intangible amortization | 315 | 835 | 314 | (62.3 | %) | 0.3 | % | 1,259 | 2,438 | (48.4 | %) | |||||||||||||||
OREO and repossession expense | 236 | 1,116 | 1,303 | (78.9 | %) | (81.9 | %) | 3,270 | 7,364 | (55.6 | %) | |||||||||||||||
Other | 12,602 | 11,797 | 11,010 | 6.8 | % | 14.5 | % | 48,216 | 47,307 | 1.9 | % | |||||||||||||||
Total Non-Interest Expense | 117,720 | 116,762 | 115,798 | 0.8 | % | 1.7 | % | 459,246 | 461,433 | (0.5 | %) | |||||||||||||||
Income Before Income Taxes | 49,419 | 54,422 | 51,968 | (9.2 | %) | (4.9 | %) | 210,500 | 212,925 | (1.1 | %) | |||||||||||||||
Income tax expense | 11,470 | 12,339 | 13,402 | (7.0 | %) | (14.4 | %) | 52,606 | 51,085 | 3.0 | % | |||||||||||||||
Net Income | $ | 37,949 | $ | 42,083 | $ | 38,566 | (9.8 | %) | (1.6 | %) | $ | 157,894 | $ | 161,840 | (2.4 | %) | ||||||||||
PER SHARE: | ||||||||||||||||||||||||||
Net income: | ||||||||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.22 | $ | 0.21 | (4.5 | %) | - | $ | 0.85 | $ | 0.84 | 1.2 | % | |||||||||||
Diluted | 0.21 | 0.22 | 0.21 | (4.5 | %) | - | 0.84 | 0.83 | 1.2 | % | ||||||||||||||||
Cash dividends | $ | 0.10 | $ | 0.08 | $ | 0.08 | 25.0 | % | 25.0 | % | $ | 0.34 | $ | 0.32 | 6.3 | % | ||||||||||
Shareholders' equity | 11.16 | 10.71 | 11.22 | 4.2 | % | (0.5 | %) | 11.16 | 10.71 | 4.2 | % | |||||||||||||||
Shareholders' equity (tangible) | 8.19 | 7.94 | 8.35 | 3.1 | % | (1.9 | %) | 8.19 | 7.94 | 3.1 | % | |||||||||||||||
Weighted average shares (basic) | 181,251 | 191,577 | 186,109 | (5.4 | %) | (2.6 | %) | 186,219 | 193,334 | (3.7 | %) | |||||||||||||||
Weighted average shares (diluted) | 182,189 | 192,658 | 186,955 | (5.4 | %) | (2.5 | %) | 187,181 | 194,354 | (3.7 | %) | |||||||||||||||
Shares outstanding, end of period | 178,924 | 192,652 | 185,158 | (7.1 | %) | (3.4 | %) | 178,924 | 192,652 | (7.1 | %) | |||||||||||||||
SELECTED FINANCIAL RATIOS: | ||||||||||||||||||||||||||
Return on average assets | 0.88 | % | 0.99 | % | 0.90 | % | 0.93 | % | 0.96 | % | ||||||||||||||||
Return on average shareholders' equity | 7.34 | % | 8.14 | % | 7.32 | % | 7.62 | % | 7.88 | % | ||||||||||||||||
Return on average shareholders' equity (tangible) | 9.96 | % | 11.15 | % | 9.88 | % | 10.31 | % | 10.76 | % | ||||||||||||||||
Net interest margin | 3.31 | % | 3.48 | % | 3.39 | % | 3.39 | % | 3.50 | % | ||||||||||||||||
Efficiency ratio | 67.53 | % | 65.14 | % | 65.80 | % | 65.65 | % | 63.39 | % | ||||||||||||||||
N/M - Not meaningful | ||||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION |
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) |
dollars in thousands |
Three Months Ended | |||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | September 30, 2014 | |||||||||||||||||||||||||||||
Average Balance | Interest (1) | Yield/Rate | Average Balance | Interest (1) | Yield/Rate | Average Balance | Interest (1) | Yield/Rate | |||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||
Loans, net of unearned income | $ | 13,056,153 | $ | 136,636 | 4.16 | % | $ | 12,792,566 | $ | 138,336 | 4.29 | % | $ | 12,922,821 | $ | 136,773 | 4.20 | % | |||||||||||||
Taxable investment securities | 2,109,884 | 12,689 | 2.40 | % | 2,289,672 | 13,431 | 2.35 | % | 2,181,099 | 12,278 | 2.25 | % | |||||||||||||||||||
Tax-exempt investment securities | 241,711 | 3,249 | 5.38 | % | 283,799 | 3,574 | 5.04 | % | 256,303 | 3,414 | 5.33 | % | |||||||||||||||||||
Equity securities | 33,981 | 442 | 5.16 | % | 33,887 | 413 | 4.83 | % | 34,002 | 438 | 5.12 | % | |||||||||||||||||||
Total Investment Securities | 2,385,576 | 16,380 | 2.74 | % | 2,607,358 | 17,418 | 2.67 | % | 2,471,404 | 16,130 | 2.61 | % | |||||||||||||||||||
Loans held for sale | 15,340 | 201 | 5.24 | % | 20,059 | 290 | 5.78 | % | 23,699 | 237 | 4.01 | % | |||||||||||||||||||
Other interest-earning assets | 464,342 | 953 | 0.82 | % | 263,478 | 737 | 1.12 | % | 293,286 | 976 | 1.33 | % | |||||||||||||||||||
Total Interest-earning Assets | 15,921,411 | 154,170 | 3.85 | % | 15,683,461 | 156,781 | 3.98 | % | 15,711,210 | 154,116 | 3.90 | % | |||||||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||||||||||
Cash and due from banks | 110,292 | 212,463 | 203,134 | ||||||||||||||||||||||||||||
Premises and equipment | 224,516 | 226,955 | 224,241 | ||||||||||||||||||||||||||||
Other assets | 1,073,302 | 1,008,304 | 1,055,521 | ||||||||||||||||||||||||||||
Less: allowance for loan losses | (189,029 | ) | (210,636 | ) | (192,163 | ) | |||||||||||||||||||||||||
Total Assets | $ | 17,140,492 | $ | 16,920,547 | $ | 17,001,943 | |||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||
Demand deposits | $ | 3,145,658 | $ | 1,027 | 0.13 | % | $ | 2,966,994 | $ | 969 | 0.13 | % | $ | 3,047,191 | $ | 953 | 0.12 | % | |||||||||||||
Savings deposits | 3,548,504 | 1,171 | 0.13 | % | 3,410,030 | 1,042 | 0.12 | % | 3,468,958 | 1,061 | 0.12 | % | |||||||||||||||||||
Time deposits | 3,016,834 | 7,333 | 0.96 | % | 2,965,604 | 6,117 | 0.82 | % | 3,009,225 | 6,984 | 0.92 | % | |||||||||||||||||||
Total Interest-bearing Deposits | 9,710,996 | 9,531 | 0.39 | % | 9,342,628 | 8,128 | 0.35 | % | 9,525,374 | 8,998 | 0.37 | % | |||||||||||||||||||
Short-term borrowings | 417,838 | 138 | 0.13 | % | 1,099,709 | 520 | 0.19 | % | 667,397 | 297 | 0.18 | % | |||||||||||||||||||
FHLB advances and long-term debt | 1,086,321 | 11,887 | 4.36 | % | 888,378 | 10,857 | 4.87 | % | 995,486 | 11,129 | 4.45 | % | |||||||||||||||||||
Total Interest-bearing Liabilities | 11,215,155 | 21,556 | 0.76 | % | 11,330,715 | 19,505 | 0.68 | % | 11,188,257 | 20,424 | 0.73 | % | |||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||
Demand deposits | 3,630,780 | 3,318,073 | 3,514,033 | ||||||||||||||||||||||||||||
Other | 242,346 | 221,010 | 210,194 | ||||||||||||||||||||||||||||
Total Liabilities | 15,088,281 | 14,869,798 | 14,912,484 | ||||||||||||||||||||||||||||
Shareholders' equity | 2,052,211 | 2,050,749 | 2,089,459 | ||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 17,140,492 | $ | 16,920,547 | $ | 17,001,943 | |||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 132,614 | 3.31 | % | 137,276 | 3.48 | % | 133,692 | 3.39 | % | ||||||||||||||||||||||
Tax equivalent adjustment | (4,576 | ) | (4,324 | ) | (4,326 | ) | |||||||||||||||||||||||||
Net interest income | $ | 128,038 | $ | 132,952 | $ | 129,366 | |||||||||||||||||||||||||
(1) | Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances. |
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | |||||||||||||||
Three Months Ended | % Change from | ||||||||||||||
December 31 | December 31 | September 30 | December 31 | September 30 | |||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | |||||||||||
Loans, by type: | |||||||||||||||
Real estate - commercial mortgage | $ | 5,131,375 | $ | 5,065,963 | $ | 5,114,221 | 1.3 | % | 0.3 | % | |||||
Commercial - industrial, financial and agricultural | 3,723,211 | 3,639,690 | 3,657,047 | 2.3 | % | 1.8 | % | ||||||||
Real estate - home equity | 1,735,769 | 1,774,919 | 1,727,253 | (2.2 | %) | 0.5 | % | ||||||||
Real estate - residential mortgage | 1,378,452 | 1,331,987 | 1,369,087 | 3.5 | % | 0.7 | % | ||||||||
Real estate - construction | 697,741 | 581,306 | 663,922 | 20.0 | % | 5.1 | % | ||||||||
Consumer | 275,349 | 287,245 | 284,630 | (4.1 | %) | (3.3 | %) | ||||||||
Leasing and other | 114,256 | 111,456 | 106,661 | 2.5 | % | 7.1 | % | ||||||||
Total Loans, net of unearned income | $ | 13,056,153 | $ | 12,792,566 | $ | 12,922,821 | 2.1 | % | 1.0 | % | |||||
Deposits, by type: | |||||||||||||||
Noninterest-bearing demand | $ | 3,630,780 | $ | 3,318,073 | $ | 3,514,033 | 9.4 | % | 3.3 | % | |||||
Interest-bearing demand | 3,145,658 | 2,966,994 | 3,047,191 | 6.0 | % | 3.2 | % | ||||||||
Savings deposits | 3,548,504 | 3,410,030 | 3,468,958 | 4.1 | % | 2.3 | % | ||||||||
Time deposits | 3,016,834 | 2,965,604 | 3,009,225 | 1.7 | % | 0.3 | % | ||||||||
Total Deposits | $ | 13,341,776 | $ | 12,660,701 | $ | 13,039,407 | 5.4 | % | 2.3 | % | |||||
Short-term borrowings, by type: | |||||||||||||||
Customer repurchase agreements | $ | 183,331 | $ | 196,997 | $ | 202,809 | (6.9 | %) | (9.6 | %) | |||||
Customer short-term promissory notes | 87,338 | 93,986 | 83,734 | (7.1 | %) | 4.3 | % | ||||||||
Federal funds purchased | 59,669 | 408,726 | 224,930 | (85.4 | %) | (73.5 | %) | ||||||||
Short-term FHLB advances and other borrowings | 87,500 | 400,000 | 155,924 | (78.1 | %) | (43.9 | %) | ||||||||
Total Short-term Borrowings | $ | 417,838 | $ | 1,099,709 | $ | 667,397 | (62.0 | %) | (37.4 | %) | |||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||
dollars in thousands | ||||||||||||||||||
Year Ended December 31 | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Average Balance | Interest (1) | Yield/Rate | Average Balance | Interest (1) | Yield/Rate | |||||||||||||
ASSETS | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||
Loans, net of unearned income | $ | 12,885,180 | $ | 542,540 | 4.21 | % | $ | 12,578,524 | $ | 552,427 | 4.39 | % | ||||||
Taxable investment securities | 2,189,510 | 50,651 | 2.31 | % | 2,391,650 | 54,321 | 2.27 | % | ||||||||||
Tax-exempt investment securities | 261,825 | 13,810 | 5.27 | % | 285,174 | 14,577 | 5.11 | % | ||||||||||
Equity securities | 33,957 | 1,728 | 5.09 | % | 38,722 | 1,829 | 4.72 | % | ||||||||||
Total Investment Securities | 2,485,292 | 66,189 | 2.66 | % | 2,715,546 | 70,727 | 2.60 | % | ||||||||||
Loans held for sale | 17,524 | 786 | 4.49 | % | 36,561 | 1,551 | 4.24 | % | ||||||||||
Other interest-earning assets | 314,345 | 4,018 | 1.28 | % | 229,444 | 2,264 | 0.99 | % | ||||||||||
Total Interest-earning Assets | 15,702,341 | 613,533 | 3.91 | % | 15,560,075 | 626,969 | 4.03 | % | ||||||||||
Noninterest-earning assets: | ||||||||||||||||||
Cash and due from banks | 177,664 | 207,931 | ||||||||||||||||
Premises and equipment | 224,903 | 226,041 | ||||||||||||||||
Other assets | 1,049,765 | 1,037,338 | ||||||||||||||||
Less: allowance for loan losses | (195,166 | ) | (220,048 | ) | ||||||||||||||
Total Assets | $ | 16,959,507 | $ | 16,811,337 | ||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Demand deposits | $ | 3,013,879 | $ | 3,793 | 0.13 | % | $ | 2,822,583 | $ | 3,656 | 0.13 | % | ||||||
Savings deposits | 3,431,957 | 4,298 | 0.13 | % | 3,363,943 | 4,096 | 0.12 | % | ||||||||||
Time deposits | 2,992,920 | 27,019 | 0.90 | % | 3,129,162 | 29,018 | 0.93 | % | ||||||||||
Total Interest-bearing Deposits | 9,438,756 | 35,110 | 0.37 | % | 9,315,688 | 36,770 | 0.39 | % | ||||||||||
Short-term borrowings | 832,839 | 1,608 | 0.19 | % | 1,196,323 | 2,420 | 0.20 | % | ||||||||||
FHLB advances and long-term debt | 965,601 | 44,493 | 4.61 | % | 889,461 | 43,305 | 4.87 | % | ||||||||||
Total Interest-bearing Liabilities | 11,237,196 | 81,211 | 0.72 | % | 11,401,472 | 82,495 | 0.72 | % | ||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||
Demand deposits | 3,428,907 | 3,157,496 | ||||||||||||||||
Other | 221,764 | 198,548 | ||||||||||||||||
Total Liabilities | 14,887,867 | 14,757,516 | ||||||||||||||||
Shareholders' equity | 2,071,640 | 2,053,821 | ||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 16,959,507 | $ | 16,811,337 | ||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 532,322 | 3.39 | % | 544,474 | 3.50 | % | ||||||||||||
Tax equivalent adjustment | (17,455 | ) | (17,280 | ) | ||||||||||||||
Net interest income | $ | 514,867 | $ | 527,194 | ||||||||||||||
(1) | Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances. |
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: |
Year Ended | ||||||||||
December 31 | ||||||||||
2014 | 2013 | % Change | ||||||||
Loans, by type: | ||||||||||
Real estate - commercial mortgage | $ | 5,117,433 | $ | 4,864,460 | 5.2 | % | ||||
Commercial - industrial, financial and agricultural | 3,659,059 | 3,680,772 | (0.6 | %) | ||||||
Real estate - home equity | 1,738,449 | 1,734,622 | 0.2 | % | ||||||
Real estate - residential mortgage | 1,355,876 | 1,312,127 | 3.3 | % | ||||||
Real estate - construction | 631,968 | 591,540 | 6.8 | % | ||||||
Consumer | 277,853 | 299,127 | (7.1 | %) | ||||||
Leasing and other | 104,542 | 95,876 | 9.0 | % | ||||||
Total Loans, net of unearned income | $ | 12,885,180 | $ | 12,578,524 | 2.4 | % | ||||
Deposits, by type: | ||||||||||
Noninterest-bearing demand | $ | 3,428,907 | $ | 3,157,496 | 8.6 | % | ||||
Interest-bearing demand | 3,013,879 | 2,822,583 | 6.8 | % | ||||||
Savings deposits | 3,431,957 | 3,363,943 | 2.0 | % | ||||||
Time deposits | 2,992,920 | 3,129,162 | (4.4 | %) | ||||||
Total Deposits | $ | 12,867,663 | $ | 12,473,184 | 3.2 | % | ||||
Short-term borrowings, by type: | ||||||||||
Customer repurchase agreements | $ | 197,432 | $ | 186,851 | 5.7 | % | ||||
Customer short-term promissory notes | 88,670 | 98,882 | (10.3 | %) | ||||||
Federal funds purchased | 285,169 | 612,803 | (53.5 | %) | ||||||
Short-term FHLB advances and other borrowings | 261,568 | 297,787 | (12.2 | %) | ||||||
Total Short-term Borrowings | $ | 832,839 | $ | 1,196,323 | (30.4 | %) | ||||
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||
ASSET QUALITY INFORMATION (UNAUDITED) | |||||||||||||||||||||
dollars in thousands | |||||||||||||||||||||
Three Months Ended | Year Ended Dec 31 | ||||||||||||||||||||
Dec 31 2014 | Dec 31 2013 | Sep 30 2014 | 2014 | 2013 | |||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | |||||||||||||||||||||
Balance at beginning of period | $ | 191,108 | $ | 212,838 | $ | 193,442 | $ | 204,917 | $ | 225,439 | |||||||||||
Loans charged off: | |||||||||||||||||||||
Commercial - industrial, financial and agricultural | (8,712 | ) | (5,527 | ) | (5,167 | ) | (24,516 | ) | (30,383 | ) | |||||||||||
Consumer and home equity | (1,696 | ) | (1,879 | ) | (2,030 | ) | (7,811 | ) | (10,070 | ) | |||||||||||
Real estate - commercial mortgage | (920 | ) | (7,779 | ) | (1,557 | ) | (6,004 | ) | (20,829 | ) | |||||||||||
Real estate - residential mortgage | (752 | ) | (1,423 | ) | (231 | ) | (2,918 | ) | (9,705 | ) | |||||||||||
Real estate - construction | (464 | ) | (1,391 | ) | (313 | ) | (1,209 | ) | (6,572 | ) | |||||||||||
Leasing and other | (701 | ) | (616 | ) | (306 | ) | (2,135 | ) | (2,653 | ) | |||||||||||
Total loans charged off | (13,245 | ) | (18,615 | ) | (9,604 | ) | (44,593 | ) | (80,212 | ) | |||||||||||
Recoveries of loans previously charged off: | |||||||||||||||||||||
Commercial - industrial, financial and agricultural | 1,724 | 5,851 | 1,013 | 4,256 | 9,281 | ||||||||||||||||
Consumer and home equity | 419 | 451 | 784 | 2,347 | 2,378 | ||||||||||||||||
Real estate - commercial mortgage | 319 | 740 | 1,167 | 1,960 | 3,494 | ||||||||||||||||
Real estate - residential mortgage | 132 | 106 | 95 | 451 | 548 | ||||||||||||||||
Real estate - construction | 2,325 | 888 | 470 | 3,177 | 2,682 | ||||||||||||||||
Leasing and other | 149 | 158 | 241 | 916 | 807 | ||||||||||||||||
Recoveries of loans previously charged off | 5,068 | 8,194 | 3,770 | 13,107 | 19,190 | ||||||||||||||||
Net loans charged off | (8,177 | ) | (10,421 | ) | (5,834 | ) | (31,486 | ) | (61,022 | ) | |||||||||||
Provision for credit losses | 3,000 | 2,500 | 3,500 | 12,500 | 40,500 | ||||||||||||||||
Balance at end of period | $ | 185,931 | $ | 204,917 | $ | 191,108 | $ | 185,931 | $ | 204,917 | |||||||||||
Net charge-offs to average loans (annualized) | 0.25 | % | 0.33 | % | 0.18 | % | 0.24 | % | 0.49 | % | |||||||||||
NON-PERFORMING ASSETS: | |||||||||||||||||||||
Non-accrual loans | $ | 121,080 | $ | 133,753 | $ | 126,420 | |||||||||||||||
Loans 90 days past due and accruing | 17,402 | 20,524 | 17,428 | ||||||||||||||||||
Total non-performing loans | 138,482 | 154,277 | 143,848 | ||||||||||||||||||
Other real estate owned | 12,022 | 15,052 | 13,489 | ||||||||||||||||||
Total non-performing assets | $ | 150,504 | $ | 169,329 | $ | 157,337 | |||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | |||||||||||||||||||||
Real estate - commercial mortgage | $ | 45,237 | $ | 44,068 | $ | 44,602 | |||||||||||||||
Commercial - industrial, financial and agricultural | 30,388 | 38,021 | 33,277 | ||||||||||||||||||
Real estate - residential mortgage | 28,995 | 31,347 | 28,135 | ||||||||||||||||||
Consumer and home equity | 17,330 | 19,526 | 17,586 | ||||||||||||||||||
Real estate - construction | 16,399 | 21,267 | 19,860 | ||||||||||||||||||
Leasing | 133 | 48 | 388 | ||||||||||||||||||
Total non-performing loans | $ | 138,482 | $ | 154,277 | $ | 143,848 | |||||||||||||||
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE: | |||||||||||||||||||||
Real-estate - residential mortgage | $ | 31,308 | $ | 28,815 | $ | 30,850 | |||||||||||||||
Real-estate - commercial mortgage | 18,822 | 19,758 | 18,869 | ||||||||||||||||||
Real estate - construction | 9,241 | 10,117 | 9,251 | ||||||||||||||||||
Commercial - industrial, financial and agricultural | 5,237 | 8,045 | 5,115 | ||||||||||||||||||
Consumer and home equity | 3,013 | 1,376 | 2,927 | ||||||||||||||||||
Total accruing TDRs | 67,621 | 68,111 | 67,012 | ||||||||||||||||||
Non-accrual TDRs (1) | 25,235 | 30,209 | 27,724 | ||||||||||||||||||
Total TDRs | $ | 92,856 | $ | 98,320 | $ | 94,736 | |||||||||||||||
(1) Included within non-accrual loans above. | |||||||||||||||||||||
DELINQUENCY RATES, BY TYPE: | |||||||||||||||||||
Dec 31, 2014 | Dec 31, 2013 | Sep 30, 2014 | |||||||||||||||||
31-89 Days | Greater than or equal to 90 Days (2) | Total | 31-89 Days | Greater than or equal to 90 Days (2) | Total | 31-89 Days | Greater than or equal to 90 Days (2) | Total | |||||||||||
Real estate - commercial mortgage | 0.35 | % | 0.87 | % | 1.22 | % | 0.38 | % | 0.87 | % | 1.25 | % | 0.48 | % | 0.86 | % | 1.34 | % | |
Commercial - industrial, financial and agricultural | 0.17 | % | 0.81 | % | 0.98 | % | 0.30 | % | 1.04 | % | 1.34 | % | 0.28 | % | 0.91 | % | 1.19 | % | |
Real estate - construction | 0.02 | % | 2.38 | % | 2.40 | % | 0.11 | % | 3.71 | % | 3.82 | % | 0.03 | % | 2.89 | % | 2.92 | % | |
Real estate - residential mortgage | 1.96 | % | 2.10 | % | 4.06 | % | 1.74 | % | 2.34 | % | 4.08 | % | 1.81 | % | 2.06 | % | 3.87 | % | |
Consumer, home equity, leasing and other | 0.80 | % | 0.82 | % | 1.62 | % | 1.10 | % | 0.91 | % | 2.01 | % | 0.74 | % | 0.85 | % | 1.59 | % | |
Total | 0.52 | % | 1.06 | % | 1.58 | % | 0.61 | % | 1.20 | % | 1.81 | % | 0.58 | % | 1.11 | % | 1.69 | % | |
(2) Includes non-accrual loans | |||||||||||||||||||
ASSET QUALITY RATIOS: | ||||||||||
Dec 31 | Dec 31 | Sep 30 | ||||||||
2014 | 2013 | 2014 | ||||||||
Non-accrual loans to total loans | 0.92 | % | 1.05 | % | 0.97 | % | ||||
Non-performing assets to total loans and OREO | 1.15 | % | 1.32 | % | 1.21 | % | ||||
Non-performing assets to total assets | 0.88 | % | 1.00 | % | 0.91 | % | ||||
Allowance for credit losses to loans outstanding | 1.42 | % | 1.60 | % | 1.47 | % | ||||
Allowance for credit losses to non-performing loans | 134.26 | % | 132.82 | % | 132.85 | % | ||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.12 | % | 9.76 | % | 9.06 | % | ||||
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 and annual results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow: |
Three Months Ended | Year Ended December 31 | ||||||||||||||||||
December 31 2014 | December 31 2013 | September 30 2014 | 2014 | 2013 | |||||||||||||||
Shareholders' equity (tangible), per share | |||||||||||||||||||
Shareholders' equity | $ | 1,996,665 | $ | 2,063,187 | $ | 2,078,006 | |||||||||||||
Less: Goodwill and intangible assets | (531,803 | ) | (533,076 | ) | (532,117 | ) | |||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,464,862 | $ | 1,530,111 | $ | 1,545,889 | |||||||||||||
Shares outstanding, end of period (denominator) | 178,924 | 192,652 | 185,158 | ||||||||||||||||
Shareholders' equity (tangible), per share | $ | 8.19 | $ | 7.94 | $ | 8.35 | |||||||||||||
Return on average common shareholders' equity (tangible) | |||||||||||||||||||
Net income | $ | 37,949 | $ | 42,083 | $ | 38,566 | $ | 157,894 | $ | 161,840 | |||||||||
Plus: Intangible amortization, net of tax | 205 | 543 | 204 | 818 | 1,585 | ||||||||||||||
Numerator | $ | 38,154 | $ | 42,626 | $ | 38,770 | $ | 158,712 | $ | 163,425 | |||||||||
Average shareholders' equity | $ | 2,052,211 | $ | 2,050,749 | 2,089,459 | 2,071,640 | 2,053,821 | ||||||||||||
Less: Average goodwill and intangible assets | (531,955 | ) | (533,597 | ) | (532,271 | ) | (532,425 | ) | (534,431 | ) | |||||||||
Average tangible shareholders' equity (denominator) | $ | 1,520,256 | $ | 1,517,152 | $ | 1,557,188 | $ | 1,539,215 | $ | 1,519,390 | |||||||||
Return on average common shareholders' equity (tangible), annualized | 9.96 | % | 11.15 | % | 9.88 | % | 10.31 | % | 10.76 | % | |||||||||
Efficiency ratio | |||||||||||||||||||
Non-interest expense | $ | 117,720 | $ | 116,762 | $ | 115,798 | $ | 459,246 | $ | 461,433 | |||||||||
Less: Intangible amortization | (315 | ) | (835 | ) | (314 | ) | (1,259 | ) | (2,438 | ) | |||||||||
Numerator | $ | 117,405 | $ | 115,927 | $ | 115,484 | $ | 457,987 | $ | 458,995 | |||||||||
Net interest income (fully taxable equivalent) | $ | 132,614 | $ | 137,276 | $ | 133,692 | $ | 532,322 | $ | 544,474 | |||||||||
Plus: Total Non-interest income | 42,101 | 40,732 | 41,900 | 167,379 | 187,664 | ||||||||||||||
Less: Investment securities gains | (848 | ) | (33 | ) | (81 | ) | (2,041 | ) | (8,004 | ) | |||||||||
Denominator | $ | 173,867 | $ | 177,975 | $ | 175,511 | $ | 697,660 | $ | 724,134 | |||||||||
Efficiency ratio | 67.53 | % | 65.14 | % | 65.80 | % | 65.65 | % | 63.39 | % | |||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | |||||||||||||||||||
Non-performing assets (numerator) | $ | 150,504 | $ | 169,329 | $ | 157,337 | |||||||||||||
Tangible shareholders' equity | $ | 1,464,862 | $ | 1,530,111 | $ | 1,545,889 | |||||||||||||
Plus: Allowance for credit losses | 185,931 | 204,917 | 191,108 | ||||||||||||||||
Tangible shareholders' equity and allowance for credit losses (denominator) | $ | 1,650,793 | $ | 1,735,028 | $ | 1,736,997 | |||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | 9.12 | % | 9.76 | % | 9.06 | % |
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