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Fulton Financial Corporation Announces Fourth Quarter and 2022 Results

Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $79.3 million, or $0.47 per diluted share, for the fourth quarter of 2022, an increase of $11.0 million, or 16.0%, in comparison to the third quarter of 2022. The Corporation reported net income available to common shareholders of $276.7 million, or $1.67 per diluted share, for the year ended December 31, 2022, an increase of $11.5 million or 4.3%, in comparison to the year ended December 31, 2021. The results for the third and fourth quarters of 2022 include the impact of the consummation of the acquisition by the Corporation of Prudential Bancorp, Inc. ("Prudential Bancorp") on July 1, 2022.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230117006074/en/

“2022 was a record year for Fulton, as we continued to execute on our strategy to Grow the bank, Deliver effectively for customers, Operate with excellence, and Serve our stakeholders,” said Curtis J. Myers, Chairman and CEO of Fulton Financial Corporation. "I’m very proud of our team's results, especially given the large number of strategic initiatives, we tackled, including the Prudential Bancorp acquisition - our first whole-bank acquisition in over a decade. Coming out of 2022, we are well positioned for continued success in 2023."

Operating net income available to common shareholders was $81.2 million, or $0.48 per diluted share, for the fourth quarter of 2022, calculated as shown below.

 

 

 

 

 

 

Three months ended

(in thousands except per share data)

 

 

December 31, 2022

 

 

 

Net income available to common shareholders

 

$79,271

Plus: Core deposit intangible amortization

 

514

Plus: Merger-related expenses

 

1,894

Less: Tax impact of adjustments

 

(506)

Operating net income available to common shareholders (numerator)

 

$81,173

 

 

 

 

 

 

 

Weighted average shares (diluted) (denominator)

 

169,136

 

 

 

 

 

 

 

Operating net income available to common shareholders per share (diluted)(1)

 

$0.48

(1) Non-GAAP financial measure.

Net Interest Income and Balance Sheet

Net interest income for the fourth quarter of 2022 was $225.9 million, an increase of $10.3 million in comparison to the third quarter of 2022. The net interest margin for the fourth quarter of 2022 increased 15 basis points, to 3.69%, in comparison to 3.54% in the third quarter of 2022.

The linked-quarter increase in net interest income was primarily due to rising interest rates resulting in increases in interest income from net loans of $33.8 million. An increase in the average balances for net loans of $440.7 million also contributed to the increase in interest income. Interest expense from interest-bearing liabilities for the fourth quarter of 2022 increased by $23.8 million to $41.9 million in comparison to $18.1 million in the third quarter of 2022 primarily due to rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings of $12.3 million and $11.5 million, respectively. An increase in the average balance for borrowings of $666.2 million in the fourth quarter of 2022 in comparison to the third quarter of 2022 also contributed to the increase in interest expense.

For the fourth quarter of 2022, net interest income was $225.9 million, an increase of $60.3 million, or 36.4%, in comparison to the fourth quarter of 2021 primarily driven by rising interest rates resulting in increases in interest income from net loans, investment securities and other interest-earning assets of $81.6 million, $5.0 million and $3.5 million, respectively. Increases in the average balances for net loans and investment securities of $1,784.0 million and $408.4 million, respectively, driven in part by the Prudential Bancorp acquisition, also contributed to the increase in interest income. Interest expense from interest-bearing liabilities for the fourth quarter of 2022 increased by $29.8 million to $41.9 million in comparison to $12.1 million in the fourth quarter of 2021 primarily driven by rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings of $16.5 million and $13.3 million, respectively. An increase in the average balance for borrowings of $928.4 million in the fourth quarter of 2022 in comparison to the fourth quarter of 2021 also contributed to the increase in interest expense.

Total average interest-earning assets for the fourth quarter of 2022 was $24.8 billion, an increase of $99.2 million from the third quarter of 2022 primarily driven by the aforementioned increases in average net loans of $440.7 million, partially offset by decreases in average investment securities and average other interest-earning assets of $169.8 million and $171.9 million, respectively.

Total average interest-earning assets for the fourth quarter of 2022 increased by $516.9 million from the fourth quarter of 2021 driven in part by the Prudential Bancorp acquisition. Average net loans for the fourth quarter of 2022 were $20.0 billion, an increase of $1.8 billion from the same period in 2021. Included in average net loans for the fourth quarter of 2022 were Paycheck Protection Program ("PPP") loans with an average balance of $25.5 million, a decrease of $409.5 million from the fourth quarter of 2021. Compared to the fourth quarter of 2021, average other interest-earning assets decreased $1,649.6 million and average investment securities increased $408.4 million.

Total average interest-bearing liabilities increased $130.7 million, to $15.7 billion, in the fourth quarter of 2022 in comparison to $15.6 billion in the third quarter of 2022 driven by an increase in the average balance for borrowings of $666.2 million, partially offset by a decrease in the average balance for total interest-bearing deposits of $535.4 million.

Total average interest-bearing liabilities for the fourth quarter of 2022 increased $285.0 million in comparison to $15.5 billion in the fourth quarter of 2021, driven by an increase in the average balance for borrowings of $928.4 million, partially offset by a decrease in the average balance for total interest-bearing deposits of $643.5 million.

Asset Quality

In the fourth quarter of 2022, a provision for credit losses of $14.5 million was recorded in comparison to a provision for credit losses of $19.0 million in the third quarter of 2022, and a negative provision for credit losses of $5.0 million in the fourth quarter of 2021. Included in the third quarter of 2022 provision for credit losses was a CECL Day 1 provision for credit losses of $8.0 million for the acquired Prudential Bancorp loan portfolio. Excluding the CECL Day 1 Provision, the third quarter of 2022 provision for credit losses was $11.0 million. Excluding the CECL Day 1 Provision, the linked-quarter increase in the provision for credit losses of $3.5 million was primarily due to loan growth and changes to the macroeconomic outlook.

Non-performing assets were $177.7 million, or 0.66% of total assets, at December 31, 2022, in comparison to $198.6 million, or 0.76% at September 30, 2022, and $153.9 million, or 0.60% of total assets, at December 31, 2021.

Net charge-offs for the fourth quarter of 2022 were 0.23% of total average loans in comparison to 0.01% and 0.07% in the third quarter of 2022 and the fourth quarter of 2021, respectively. Net charge-offs of $11.7 million for the fourth quarter of 2022 were primarily due to a charge-off for a commercial office loan due to credit-related concerns.

Non-interest Income

Non-interest income before investment securities gains in the fourth quarter of 2022 was $54.3 million, a decrease of $4.9 million, or 8.3%, from the third quarter of 2022. The decrease in non-interest income was driven primarily by decreases in mortgage banking income, commercial customer swap fees, reflected in capital markets, overdraft fees and cash management fees of $1.6 million, $1.3 million, $1.1 million and $0.7 million, respectively.

Compared to the fourth quarter of 2021, non-interest income before investment securities gains in the fourth quarter of 2022 decreased $9.6 million, or 15.0%, from $63.9 million. The decrease in non-interest income was primarily due to decreases of $5.1 million in mortgage banking income, $3.8 million in other income, primarily due to a decline from equity method investments of $4.1 million, and $0.8 million in wealth management revenues.

Non-interest Expense

Non-interest expense, excluding merger-related expenses of $1.9 million, was $166.6 million in the fourth quarter of 2022, an increase of $4.0 million, or 2.5%, compared to $162.6 million, excluding merger-related expenses of $7.0 million, in the third quarter of 2022. The increase was primarily due to increases of $1.5 million in other outside services expense, $0.6 million in professional fees, $0.5 million in marketing expense, and $1.6 million for a contingent liability, $0.8 million for branch-related closures and $0.6 million in fraud-related losses which are reflected in other non-interest expenses, partially offset by a $1.6 million decrease in salaries and employee benefits expense.

Compared to the fourth quarter of 2021, non-interest expense, excluding merger-related expenses of $1.9 million, increased $12.5 million, or 8.1%, in the fourth quarter of 2022 primarily due to increases of $7.2 million in salaries and employee benefits expense, $1.2 million in other outside services expense, $1.0 million in professional fees, $0.9 million in marketing expense, $0.8 million in data processing and software expense, $0.5 million in intangible asset amortization expense related to the acquisition of Prudential Bancorp, and $0.8 million for branch-related closures reflected in other non-interest expense.

Income Tax Expense

For the full-year 2022, the effective tax rate was 17.3%, in comparison to 17.6% for the full-year of 2021.

Additional information on Fulton is available on the Internet at www.fultonbank.com.

Safe Harbor Statement

This press 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," “projects,” the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results.

Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, the statements are based on current beliefs, expectations and assumptions regarding the future of the Corporation’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation’s control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. 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.

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, 2021, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022 and other current and periodic reports, which have been or will be filed with the Securities and Exchange Commission (the "SEC") and are or will be available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov).

Non-GAAP Financial Measures

The Corporation uses certain financial measures in this press release that have been derived from methods other than generally accepted accounting principles ("GAAP"). These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this press release.

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

 

SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)

 

 

 

 

 

 

 

in thousands, except share data, per-share data and percentages

 

 

 

 

 

 

 

 

Three months ended

 

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

Ending Balances

 

 

 

 

 

 

 

 

 

 

Investments

$

3,968,023

 

 

$

3,936,694

 

 

$

4,117,801

 

 

$

4,288,674

 

 

$

4,167,774

 

 

Net loans

 

20,279,547

 

 

 

19,695,199

 

 

 

18,920,950

 

 

 

18,476,119

 

 

 

18,325,350

 

 

Total assets

 

26,931,702

 

 

 

26,146,042

 

 

 

25,252,686

 

 

 

25,598,310

 

 

 

25,796,398

 

 

Deposits

 

20,649,538

 

 

 

21,376,554

 

 

 

21,143,866

 

 

 

21,541,174

 

 

 

21,573,499

 

 

Shareholders' equity

 

2,579,757

 

 

 

2,471,159

 

 

 

2,471,093

 

 

 

2,569,535

 

 

 

2,712,680

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances

 

 

 

 

 

 

 

 

 

 

Investments

$

3,936,579

 

 

$

4,254,216

 

 

$

4,216,507

 

 

$

4,228,827

 

 

$

3,980,045

 

 

Net loans

 

20,004,513

 

 

 

19,563,825

 

 

 

18,637,175

 

 

 

18,383,118

 

 

 

18,220,550

 

 

Total assets

 

26,386,355

 

 

 

26,357,095

 

 

 

25,578,432

 

 

 

25,622,462

 

 

 

26,136,536

 

 

Deposits

 

21,027,656

 

 

 

21,788,052

 

 

 

21,523,713

 

 

 

21,480,183

 

 

 

21,876,938

 

 

Shareholders' equity

 

2,489,148

 

 

 

2,604,057

 

 

 

2,531,346

 

 

 

2,688,834

 

 

 

2,713,198

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement

 

 

 

 

 

 

 

 

 

 

Net interest income

$

225,911

 

 

$

215,582

 

 

$

178,831

 

 

$

161,310

 

 

$

165,613

 

 

Provision for credit losses

 

14,513

 

 

 

18,958

 

 

 

1,500

 

 

 

(6,950

)

 

 

(5,000

)

 

Non-interest income

 

54,321

 

 

 

59,162

 

 

 

58,391

 

 

 

55,256

 

 

 

63,881

 

 

Non-interest expense

 

168,462

 

 

 

169,558

 

 

 

149,730

 

 

 

145,978

 

 

 

154,019

 

 

Income before taxes

 

97,257

 

 

 

86,228

 

 

 

85,992

 

 

 

77,538

 

 

 

80,475

 

 

Net income available to common shareholders

 

79,271

 

 

 

68,309

 

 

 

67,427

 

 

 

61,726

 

 

 

59,325

 

 

Pre-provision net revenue(1)

 

115,049

 

 

 

113,631

 

 

 

89,384

 

 

 

71,842

 

 

 

77,837

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (basic)

$

0.47

 

 

$

0.41

 

 

$

0.42

 

 

$

0.38

 

 

$

0.37

 

 

Net income available to common shareholders (diluted)

$

0.47

 

 

$

0.40

 

 

$

0.42

 

 

$

0.38

 

 

$

0.37

 

 

Operating net income available to common shareholders(1)

$

0.48

 

 

$

0.48

 

 

$

0.42

 

 

$

0.38

 

 

$

0.37

 

 

Cash dividends

$

0.21

 

 

$

0.15

 

 

$

0.15

 

 

$

0.15

 

 

$

0.22

 

 

Common shareholders' equity

$

14.24

 

 

$

13.61

 

 

$

14.15

 

 

$

14.79

 

 

$

15.70

 

 

Common shareholders' equity (tangible)(1)

$

10.90

 

 

$

10.26

 

 

$

10.81

 

 

$

11.44

 

 

$

12.35

 

 

Weighted average shares (basic)

 

167,504

 

 

 

167,353

 

 

 

160,920

 

 

 

160,588

 

 

 

161,210

 

 

Weighted average shares (diluted)

 

169,136

 

 

 

168,781

 

 

 

162,075

 

 

 

161,911

 

 

 

162,355

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Non-GAAP financial measure. Refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this press release.

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

Net (recoveries) charge offs to average loans

 

0.23

%

 

 

0.01

%

 

 

(0.08

) %

 

 

(0.02

) %

 

 

0.07

%

 

Non-performing loans to total loans

 

0.85

%

 

 

0.98

%

 

 

0.92

%

 

 

0.87

%

 

 

0.83

%

 

Non-performing assets to total assets

 

0.66

%

 

 

0.76

%

 

 

0.71

%

 

 

0.64

%

 

 

0.60

%

 

ACL - loans(1) to total loans

 

1.33

%

 

 

1.35

%

 

 

1.31

%

 

 

1.32

%

 

 

1.36

%

 

ACL - loans(1) to non-performing loans

 

157

%

 

 

138

%

 

 

143

%

 

 

151

%

 

 

164

%

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality, excluding PPP(2)(3)

 

 

 

 

 

 

 

 

 

 

Net (recoveries) charge offs to adjusted average loans

 

0.23

%

 

 

0.01

%

 

 

(0.08

) %

 

 

(0.02

) %

 

 

0.07

%

 

Non-performing loans to total adjusted loans

 

0.85

%

 

 

0.98

%

 

 

0.92

%

 

 

0.88

%

 

 

0.84

%

 

ACL - loans(1) to total adjusted loans

 

1.33

%

 

 

1.36

%

 

 

1.32

%

 

 

1.33

%

 

 

1.38

%

 

 

 

 

 

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.23

%

 

 

1.07

%

 

 

1.10

%

 

 

1.02

%

 

 

0.94

%

 

Operating return on average assets(2)

 

1.26

%

 

 

1.25

%

 

 

1.11

%

 

 

1.02

%

 

 

0.94

%

 

Return on average common shareholders' equity

 

13.70

%

 

 

11.24

%

 

 

11.57

%

 

 

10.03

%

 

 

9.34

%

 

Return on average common shareholders' equity (tangible)(2)

 

18.59

%

 

 

17.31

%

 

 

15.23

%

 

 

12.88

%

 

 

11.89

%

 

Net interest margin

 

3.69

%

 

 

3.54

%

 

 

3.04

%

 

 

2.78

%

 

 

2.77

%

 

Efficiency ratio(2)

 

58.1

%

 

 

57.8

%

 

 

61.4

%

 

 

65.8

%

 

 

65.2

%

 

Non-interest expenses to total average assets

 

2.53

%

 

 

2.55

%

 

 

2.35

%

 

 

2.31

%

 

 

2.34

%

 

Operating non-interest expenses to total average assets(2)

 

2.48

%

 

 

2.43

%

 

 

2.32

%

 

 

2.29

%

 

 

2.30

%

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

Tangible common equity ratio ("TCE")(2)

 

6.9

%

 

 

6.7

%

 

 

7.0

%

 

 

7.3

%

 

 

7.8

%

 

TCE ratio, (excluding AOCI)(2)(5)

 

8.2

%

 

 

8.3

%

 

 

8.2

%

 

 

7.9

%

 

 

7.8

%

 

Tier 1 leverage ratio(4)

 

9.4

%

 

 

9.2

%

 

 

9.1

%

 

 

8.9

%

 

 

8.6

%

 

Common equity Tier 1 capital ratio(4)

 

10.0

%

 

 

10.0

%

 

 

9.9

%

 

 

10.0

%

 

 

9.9

%

 

Tier 1 risk-based capital ratio(4)

 

10.8

%

 

 

10.9

%

 

 

10.8

%

 

 

10.9

%

 

 

10.9

%

 

Total risk-based capital ratio(4)

 

13.5

%

 

 

13.6

%

 

 

13.7

%

 

 

13.8

%

 

 

14.1

%

 

 

 

 

 

 

 

 

 

 

 

 

(1) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet ("OBS") credit exposures.

 

(2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release.

 

(3) Asset quality information excluding PPP loans.

 

(4) Regulatory capital ratios as of December 31, 2022 are preliminary and prior periods are actual.

 

(5) Tangible common equity ("TCE") ratio, excluding accumulated other comprehensive income ("AOCI")

 

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

 

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change from

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Dec 31

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

2022

 

2021

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

126,898

 

 

$

143,465

 

 

$

158,605

 

 

$

161,462

 

 

$

172,276

 

 

(11.5

) %

 

(26.3

) %

Other interest-earning assets

 

685,209

 

 

 

467,164

 

 

 

383,715

 

 

 

1,054,232

 

 

 

1,523,973

 

 

46.7

%

 

(55.0

) %

Loans held for sale

 

7,264

 

 

 

14,411

 

 

 

17,528

 

 

 

27,675

 

 

 

35,768

 

 

(49.6

) %

 

(79.7

) %

Investment securities

 

3,968,023

 

 

 

3,936,694

 

 

 

4,117,801

 

 

 

4,288,674

 

 

 

4,167,774

 

 

0.8

%

 

(4.8

) %

Net loans

 

20,279,547

 

 

 

19,695,199

 

 

 

18,920,950

 

 

 

18,476,119

 

 

 

18,325,350

 

 

3.0

%

 

10.7

%

Less: ACL - loans(1)

 

(269,366

)

 

 

(266,838

)

 

 

(248,564

)

 

 

(243,705

)

 

 

(249,001

)

 

(0.9

) %

 

(8.2

) %

Loans, net

 

20,010,181

 

 

 

19,428,361

 

 

 

18,672,386

 

 

 

18,232,414

 

 

 

18,076,349

 

 

3.0

%

 

10.7

%

Net, premises and equipment

 

225,141

 

 

 

221,496

 

 

 

211,639

 

 

 

218,257

 

 

 

220,357

 

 

1.6

%

 

2.2

%

Accrued interest receivable

 

91,579

 

 

 

72,821

 

 

 

64,457

 

 

 

55,102

 

 

 

57,451

 

 

25.8

%

 

59.4

%

Goodwill and intangible assets

 

560,824

 

 

 

561,495

 

 

 

537,700

 

 

 

537,877

 

 

 

538,053

 

 

(0.1

) %

 

4.2

%

Other assets

 

1,256,583

 

 

 

1,300,135

 

 

 

1,088,855

 

 

 

1,022,617

 

 

 

1,004,397

 

 

(3.3

) %

 

25.1

%

Total Assets

$

26,931,702

 

 

$

26,146,042

 

 

$

25,252,686

 

 

$

25,598,310

 

 

$

25,796,398

 

 

3.0

%

 

4.4

%

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

20,649,538

 

 

$

21,376,554

 

 

$

21,143,866

 

 

$

21,541,174

 

 

$

21,573,499

 

 

(3.4

) %

 

(4.3

) %

Borrowings

 

2,871,207

 

 

 

1,424,681

 

 

 

1,013,315

 

 

 

1,008,934

 

 

 

1,038,109

 

 

101.5

%

 

N/M

 

Other liabilities

 

831,200

 

 

 

873,648

 

 

 

624,412

 

 

 

478,667

 

 

 

472,110

 

 

(4.9

) %

 

76.1

%

Total Liabilities

 

24,351,945

 

 

 

23,674,883

 

 

 

22,781,593

 

 

 

23,028,775

 

 

 

23,083,718

 

 

2.9

%

 

5.5

%

Shareholders' equity

 

2,579,757

 

 

 

2,471,159

 

 

 

2,471,093

 

 

 

2,569,535

 

 

 

2,712,680

 

 

4.4

%

 

(4.9

) %

Total Liabilities and Shareholders' Equity

$

26,931,702

 

 

$

26,146,042

 

 

$

25,252,686

 

 

$

25,598,310

 

 

$

25,796,398

 

 

3.0

%

 

4.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOANS, DEPOSITS AND BORROWINGS DETAIL:

 

 

 

 

 

 

 

 

 

 

Loans, by type:

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,693,835

 

 

$

7,554,509

 

 

$

7,417,036

 

 

$

7,289,376

 

 

$

7,279,080

 

 

1.8

%

 

5.7

%

Commercial and industrial

 

4,452,606

 

 

 

4,208,775

 

 

 

4,098,552

 

 

 

3,992,285

 

 

 

3,906,791

 

 

5.8

%

 

14.0

%

Real estate - residential mortgage

 

4,737,279

 

 

 

4,574,228

 

 

 

4,203,827

 

 

 

3,946,741

 

 

 

3,846,750

 

 

3.6

%

 

23.2

%

Real estate - home equity

 

1,102,838

 

 

 

1,110,103

 

 

 

1,108,808

 

 

 

1,098,171

 

 

 

1,118,248

 

 

(0.7

) %

 

(1.4

) %

Real estate - construction

 

1,269,925

 

 

 

1,273,097

 

 

 

1,177,446

 

 

 

1,210,340

 

 

 

1,139,779

 

 

(0.2

) %

 

11.4

%

Consumer

 

699,179

 

 

 

633,666

 

 

 

538,747

 

 

 

481,551

 

 

 

464,657

 

 

10.3

%

 

50.5

%

Equipment lease financing

 

260,143

 

 

 

255,060

 

 

 

254,897

 

 

 

253,521

 

 

 

236,344

 

 

2.0

%

 

10.1

%

Other(2)

 

43,344

 

 

 

53,671

 

 

 

49,214

 

 

 

39,857

 

 

 

32,448

 

 

(19.2

) %

 

33.6

%

Net loans before PPP

 

20,259,149

 

 

 

19,663,109

 

 

 

18,848,527

 

 

 

18,311,842

 

 

 

18,024,097

 

 

3.0

%

 

12.4

%

PPP

 

20,398

 

 

 

32,090

 

 

 

72,423

 

 

 

164,277

 

 

 

301,253

 

 

(36.4

) %

 

(93.2

) %

Total Net Loans

$

20,279,547

 

 

$

19,695,199

 

 

$

18,920,950

 

 

$

18,476,119

 

 

$

18,325,350

 

 

3.0

%

 

10.7

%

Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

7,006,388

 

 

$

7,372,896

 

 

$

7,530,777

 

 

$

7,528,391

 

 

$

7,370,963

 

 

(5.0

) %

 

(4.9

) %

Interest-bearing demand

 

5,410,903

 

 

 

5,676,600

 

 

 

5,403,805

 

 

 

5,625,286

 

 

 

5,819,539

 

 

(4.7

) %

 

(7.0

) %

Savings

 

6,434,621

 

 

 

6,563,003

 

 

 

6,406,051

 

 

 

6,479,196

 

 

 

6,403,995

 

 

(2.0

) %

 

0.5

%

Total demand and savings

 

18,851,912

 

 

 

19,612,499

 

 

 

19,340,633

 

 

 

19,632,873

 

 

 

19,594,497

 

 

(3.9

) %

 

(3.8

) %

Brokered

 

208,416

 

 

 

226,883

 

 

 

243,172

 

 

 

248,833

 

 

 

251,526

 

 

(8.1

) %

 

(17.1

) %

Time

 

1,589,210

 

 

 

1,537,172

 

 

 

1,560,061

 

 

 

1,659,468

 

 

 

1,727,476

 

 

3.4

%

 

(8.0

) %

Total Deposits

$

20,649,538

 

 

$

21,376,554

 

 

$

21,143,866

 

 

$

21,541,174

 

 

$

21,573,499

 

 

(3.4

) %

 

(4.3

) %

Borrowings, by type:

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds purchased

$

191,000

 

 

$

136,000

 

 

$

20,000

 

 

$

 

 

$

 

 

40.4

%

 

N/M

 

Federal Home Loan Bank advances

 

1,250,000

 

 

 

265,500

 

 

 

 

 

 

 

 

 

 

 

N/M

 

 

N/M

 

Senior debt and subordinated debt

 

539,634

 

 

 

539,461

 

 

 

555,748

 

 

 

555,594

 

 

 

620,406

 

 

%

 

(13.0

) %

Other borrowings

 

890,573

 

 

 

483,720

 

 

 

437,567

 

 

 

453,340

 

 

 

417,703

 

 

84.1

%

 

113.2

%

Total Borrowings

$

2,871,207

 

 

$

1,424,681

 

 

$

1,013,315

 

 

$

1,008,934

 

 

$

1,038,109

 

 

101.5

%

 

N/M

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N/M - Not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.

(2) Consists of overdrafts and net origination fees and costs.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

 

 

 

 

 

dollars in thousands, except per share

 

 

 

 

 

 

 

 

Three Months Ended

 

% Change from

 

Year Ended

 

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Dec 31

 

Dec 31

 

 

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

2022

 

2021

 

 

2022

 

 

 

2021

 

 

% Change

Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

267,847

 

 

$

233,691

 

 

$

190,299

 

 

$

173,001

 

 

$

177,724

 

 

14.6

%

 

50.7

%

 

$

864,838

 

 

$

723,412

 

 

19.5

%

Interest expense

 

 

41,936

 

 

 

18,109

 

 

 

11,468

 

 

 

11,691

 

 

 

12,111

 

 

131.6

%

 

N/M

 

 

 

83,204

 

 

 

59,682

 

 

39.4

%

Net Interest Income

 

 

225,911

 

 

 

215,582

 

 

 

178,831

 

 

 

161,310

 

 

 

165,613

 

 

4.8

%

 

36.4

%

 

 

781,634

 

 

 

663,730

 

 

17.8

%

Provision for credit losses

 

 

14,513

 

 

 

18,958

 

 

 

1,500

 

 

 

(6,950

)

 

 

(5,000

)

 

(23.4

) %

 

N/M

 

 

 

28,021

 

 

 

(14,600

)

 

N/M

 

Net Interest Income after

Provision

 

 

211,398

 

 

 

196,624

 

 

 

177,331

 

 

 

168,260

 

 

 

170,613

 

 

7.5

%

 

23.9

%

 

 

753,613

 

 

 

678,330

 

 

11.1

%

Non-Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchant and card

 

 

7,223

 

 

 

7,601

 

 

 

7,355

 

 

 

6,097

 

 

 

6,588

 

 

(5.0

) %

 

9.6

%

 

 

28,276

 

 

 

26,121

 

 

8.3

%

Cash management

 

 

5,756

 

 

 

6,483

 

 

 

6,062

 

 

 

5,428

 

 

 

5,318

 

 

(11.2

) %

 

8.2

%

 

 

23,729

 

 

 

20,865

 

 

13.7

%

Capital markets

 

 

2,627

 

 

 

4,060

 

 

 

3,893

 

 

 

1,676

 

 

 

2,982

 

 

(35.3

) %

 

(11.9

) %

 

 

12,256

 

 

 

9,381

 

 

30.6

%

Other commercial banking

 

 

2,998

 

 

 

2,664

 

 

 

3,049

 

 

 

2,807

 

 

 

3,592

 

 

12.5

%

 

(16.5

) %

 

 

11,518

 

 

 

12,322

 

 

(6.5

) %

Total commercial banking

 

 

18,604

 

 

 

20,808

 

 

 

20,359

 

 

 

16,008

 

 

 

18,480

 

 

(10.6

) %

 

0.7

%

 

 

75,779

 

 

 

68,689

 

 

10.3

%

Consumer banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Card

 

 

6,331

 

 

 

6,278

 

 

 

6,067

 

 

 

5,796

 

 

 

5,953

 

 

0.8

%

 

6.3

%

 

 

24,472

 

 

 

23,505

 

 

4.1

%

Overdraft

 

 

3,364

 

 

 

4,463

 

 

 

3,881

 

 

 

3,772

 

 

 

3,896

 

 

(24.6

) %

 

(13.7

) %

 

 

15,480

 

 

 

12,844

 

 

20.5

%

Other consumer banking

 

 

2,380

 

 

 

2,534

 

 

 

2,524

 

 

 

2,106

 

 

 

2,280

 

 

(6.1

) %

 

4.4

%

 

 

9,544

 

 

 

9,195

 

 

3.8

%

Total consumer banking

 

 

12,075

 

 

 

13,275

 

 

 

12,472

 

 

 

11,674

 

 

 

12,129

 

 

(9.0

) %

 

(0.4

) %

 

 

49,496

 

 

 

45,544

 

 

8.7

%

Wealth management

 

 

17,531

 

 

 

17,610

 

 

 

18,274

 

 

 

19,428

 

 

 

18,285

 

 

(0.4

) %

 

(4.1

) %

 

 

72,843

 

 

 

71,798

 

 

1.5

%

Mortgage banking

 

 

2,140

 

 

 

3,720

 

 

 

3,768

 

 

 

4,576

 

 

 

7,243

 

 

(42.5

) %

 

(70.5

) %

 

 

14,204

 

 

 

33,576

 

 

(57.7

) %

Other

 

 

3,972

 

 

 

3,802

 

 

 

3,510

 

 

 

3,551

 

 

 

7,739

 

 

4.5

%

 

(48.7

) %

 

 

14,835

 

 

 

20,622

 

 

(28.1

) %

Non-interest income before

investment securities gains (losses)

 

 

54,322

 

 

 

59,215

 

 

 

58,383

 

 

 

55,237

 

 

 

63,876

 

 

(8.3

) %

 

(15.0

) %

 

 

227,157

 

 

 

240,229

 

 

(5.4

) %

Investment securities gains (losses), net

 

 

(1

)

 

 

(53

)

 

 

8

 

 

 

19

 

 

 

5

 

 

98.1

%

 

(120.0

) %

 

 

(27

)

 

 

33,516

 

 

(100.1

) %

Total Non-Interest Income

 

 

54,321

 

 

 

59,162

 

 

 

58,391

 

 

 

55,256

 

 

 

63,881

 

 

(8.2

) %

 

(15.0

) %

 

 

227,130

 

 

 

273,745

 

 

(17.0

) %

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

92,733

 

 

 

94,283

 

 

 

85,404

 

 

 

84,464

 

 

 

85,506

 

 

(1.6

) %

 

8.5

%

 

 

356,884

 

 

 

329,138

 

 

8.4

%

Data processing and software

 

 

15,448

 

 

 

15,807

 

 

 

14,685

 

 

 

14,315

 

 

 

14,612

 

 

(2.3

) %

 

5.7

%

 

 

60,255

 

 

 

56,440

 

 

6.8

%

Net occupancy

 

 

14,061

 

 

 

14,025

 

 

 

13,587

 

 

 

14,522

 

 

 

14,366

 

 

0.3

%

 

(2.1

) %

 

 

56,195

 

 

 

53,799

 

 

4.5

%

Other outside services

 

 

10,860

 

 

 

9,361

 

 

 

8,764

 

 

 

8,167

 

 

 

9,637

 

 

16.0

%

 

12.7

%

 

 

37,152

 

 

 

34,194

 

 

8.7

%

Equipment

 

 

3,640

 

 

 

3,548

 

 

 

3,422

 

 

 

3,423

 

 

 

3,539

 

 

2.6

%

 

2.9

%

 

 

14,033

 

 

 

13,807

 

 

1.6

%

FDIC insurance

 

 

3,219

 

 

 

3,158

 

 

 

2,961

 

 

 

3,209

 

 

 

3,032

 

 

1.9

%

 

6.2

%

 

 

12,547

 

 

 

10,665

 

 

17.6

%

Professional fees

 

 

2,945

 

 

 

2,373

 

 

 

2,013

 

 

 

1,792

 

 

 

1,946

 

 

24.1

%

 

51.3

%

 

 

9,123

 

 

 

9,647

 

 

(5.4

) %

Marketing

 

 

2,380

 

 

 

1,859

 

 

 

1,326

 

 

 

1,320

 

 

 

1,477

 

 

28.0

%

 

61.1

%

 

 

6,885

 

 

 

5,275

 

 

30.5

%

Intangible amortization

 

 

688

 

 

 

690

 

 

 

177

 

 

 

176

 

 

 

146

 

 

(0.3

) %

 

N/M

 

 

 

1,731

 

 

 

589

 

 

N/M

 

Debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

674

 

 

N/M

 

 

N/M

 

 

 

 

 

 

33,249

 

 

(100.0

) %

Merger-related expenses

 

 

1,894

 

 

 

7,006

 

 

 

1,027

 

 

 

401

 

 

 

 

 

(73.0

) %

 

N/M

 

 

 

10,328

 

 

 

 

 

N/M

 

Other

 

 

20,594

 

 

 

17,448

 

 

 

16,364

 

 

 

14,189

 

 

 

19,084

 

 

18.0

%

 

7.9

%

 

 

68,595

 

 

 

71,027

 

 

(3.4

) %

Total Non-Interest Expense

 

 

168,462

 

 

 

169,558

 

 

 

149,730

 

 

 

145,978

 

 

 

154,019

 

 

(0.6

) %

 

9.4

%

 

 

633,728

 

 

 

617,830

 

 

2.6

%

Income Before Income Taxes

 

 

97,257

 

 

 

86,228

 

 

 

85,992

 

 

 

77,538

 

 

 

80,475

 

 

12.8

%

 

20.9

%

 

 

347,015

 

 

 

334,245

 

 

3.8

%

Income tax expense

 

 

15,424

 

 

 

15,357

 

 

 

16,003

 

 

 

13,250

 

 

 

18,588

 

 

0.4

%

 

(17.0

) %

 

 

60,034

 

 

 

58,748

 

 

2.2

%

Net Income

 

 

81,833

 

 

 

70,871

 

 

 

69,989

 

 

 

64,288

 

 

 

61,887

 

 

15.5

%

 

32.2

%

 

 

286,981

 

 

 

275,497

 

 

4.2

%

Preferred stock dividends

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

%

 

%

 

 

(10,248

)

 

 

(10,277

)

 

0.3

%

Net Income Available to

Common Shareholders

 

$

79,271

 

 

$

68,309

 

 

$

67,427

 

 

$

61,726

 

 

$

59,325

 

 

16.0

%

 

33.6

%

 

$

276,733

 

 

$

265,220

 

 

4.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

% Change from

 

Year Ended

 

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Dec 31

 

Dec 31

 

 

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

2022

 

2021

 

 

2022

 

 

 

2021

 

 

% Change

PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.47

 

 

$

0.41

 

 

$

0.42

 

 

$

0.38

 

 

$

0.37

 

 

14.6

%

 

27.0

%

 

$

1.69

 

 

$

1.63

 

 

3.7

%

Diluted

 

$

0.47

 

 

$

0.40

 

 

$

0.42

 

 

$

0.38

 

 

$

0.37

 

 

17.5

%

 

27.0

%

 

$

1.67

 

 

$

1.62

 

 

3.1

%

Cash dividends

 

$

0.21

 

 

$

0.15

 

 

$

0.15

 

 

$

0.15

 

 

$

0.22

 

 

40.0

%

 

(4.5

) %

 

$

0.66

 

 

$

0.64

 

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

 

167,504

 

 

 

167,353

 

 

 

160,920

 

 

 

160,588

 

 

 

161,210

 

 

0.1

%

 

3.9

%

 

 

164,119

 

 

 

162,233

 

 

1.2

%

Weighted average shares (diluted)

 

 

169,136

 

 

 

168,781

 

 

 

162,075

 

 

 

161,911

 

 

 

162,355

 

 

0.2

%

 

4.2

%

 

 

165,472

 

 

 

163,307

 

 

1.3

%

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

Three months ended

 

December 31, 2022

 

September 30, 2022

 

December 31, 2021

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans

$

20,004,513

 

 

$

241,453

 

 

4.80

%

 

$

19,563,825

 

 

$

207,343

 

 

4.21

%

 

$

18,220,550

 

 

$

159,057

 

 

3.47

%

Investment securities

 

4,330,635

 

 

 

27,781

 

 

2.56

%

 

 

4,500,461

 

 

 

28,022

 

 

2.49

%

 

 

3,922,197

 

 

 

22,424

 

 

2.29

%

Loans held for sale

 

9,264

 

 

 

171

 

 

7.39

%

 

 

9,098

 

 

 

194

 

 

8.51

%

 

 

35,235

 

 

 

333

 

 

3.77

%

Other interest-earning assets

 

450,818

 

 

 

2,752

 

 

2.43

%

 

 

622,673

 

 

 

2,103

 

 

1.34

%

 

 

2,100,392

 

 

 

(905

)

 

(0.19

) %

Total Interest-Earning Assets

 

24,795,230

 

 

 

272,157

 

 

4.36

%

 

 

24,696,057

 

 

 

237,662

 

 

3.83

%

 

 

24,278,374

 

 

 

180,909

 

 

2.96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

149,472

 

 

 

 

 

 

 

152,349

 

 

 

 

 

 

 

211,958

 

 

 

 

 

Premises and equipment

 

223,245

 

 

 

 

 

 

 

223,880

 

 

 

 

 

 

 

226,319

 

 

 

 

 

Other assets

 

1,488,684

 

 

 

 

 

 

 

1,545,812

 

 

 

 

 

 

 

1,677,028

 

 

 

 

 

Less: ACL - loans(2)

 

(270,276

)

 

 

 

 

 

 

(261,003

)

 

 

 

 

 

 

(257,143

)

 

 

 

 

Total Assets

$

26,386,355

 

 

 

 

 

 

$

26,357,095

 

 

 

 

 

 

$

26,136,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

5,479,443

 

 

$

4,589

 

 

0.33

%

 

$

5,708,059

 

 

$

1,886

 

 

0.13

%

 

$

5,933,780

 

 

$

756

 

 

0.05

%

Savings deposits

 

6,466,775

 

 

 

11,539

 

 

0.71

%

 

 

6,681,713

 

 

 

3,414

 

 

0.20

%

 

 

6,413,638

 

 

 

992

 

 

0.06

%

Brokered deposits

 

215,729

 

 

 

1,947

 

 

3.58

%

 

 

247,105

 

 

 

1,346

 

 

2.16

%

 

 

256,192

 

 

 

220

 

 

0.34

%

Time deposits

 

1,554,885

 

 

 

4,302

 

 

1.10

%

 

 

1,615,384

 

 

 

3,404

 

 

0.84

%

 

 

1,756,672

 

 

 

3,928

 

 

0.89

%

Total Interest-Bearing Deposits

 

13,716,832

 

 

 

22,377

 

 

0.65

%

 

 

14,252,261

 

 

 

10,050

 

 

0.28

%

 

 

14,360,282

 

 

 

5,896

 

 

0.16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

2,025,522

 

 

 

19,559

 

 

3.83

%

 

 

1,359,348

 

 

 

8,060

 

 

2.38

%

 

 

1,097,095

 

 

 

6,216

 

 

2.29

%

Total Interest-Bearing Liabilities

 

15,742,354

 

 

 

41,936

 

 

1.06

%

 

 

15,611,609

 

 

 

18,110

 

 

0.47

%

 

 

15,457,377

 

 

 

12,112

 

 

0.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

7,310,824

 

 

 

 

 

 

 

7,535,791

 

 

 

 

 

 

 

7,516,656

 

 

 

 

 

Other

 

844,029

 

 

 

 

 

 

 

605,638

 

 

 

 

 

 

 

449,305

 

 

 

 

 

Total Liabilities

 

23,897,207

 

 

 

 

 

 

 

23,753,038

 

 

 

 

 

 

 

23,423,338

 

 

 

 

 

Total Deposits/Cost of Deposits

 

21,027,656

 

 

 

 

0.42

%

 

 

21,788,052

 

 

 

 

0.18

%

 

 

21,876,938

 

 

 

 

0.11

%

Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")

 

23,053,178

 

 

 

 

0.72

%

 

 

23,147,400

 

 

 

 

0.31

%

 

 

22,974,033

 

 

 

 

0.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

2,489,148

 

 

 

 

 

 

 

2,604,057

 

 

 

 

 

 

 

2,713,198

 

 

 

 

 

Total Liabilities and Shareholders' Equity

$

26,386,355

 

 

 

 

 

 

$

26,357,095

 

 

 

 

 

 

$

26,136,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income/net interest margin (fully taxable equivalent)

 

 

 

230,221

 

 

3.69

%

 

 

 

 

219,552

 

 

3.54

%

 

 

 

 

168,797

 

 

2.77

%

Tax equivalent adjustment

 

 

 

(4,310

)

 

 

 

 

 

 

(3,970

)

 

 

 

 

 

 

(3,184

)

 

 

Net Interest Income

 

 

$

225,911

 

 

 

 

 

 

$

215,582

 

 

 

 

 

 

$

165,613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.

(2) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED):

dollars in thousands

 

Three months ended

 

% Change from

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Dec 31

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

2022

 

2021

Loans, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,696,997

 

$

7,566,259

 

$

7,340,417

 

$

7,294,914

 

$

7,157,906

 

1.7

%

 

7.5

%

Commercial and industrial

 

4,347,406

 

 

4,201,399

 

 

4,040,587

 

 

3,986,900

 

 

3,898,559

 

3.5

%

 

11.5

%

Real estate - residential mortgage

 

4,643,784

 

 

4,485,649

 

 

4,052,666

 

 

3,887,428

 

 

3,773,156

 

3.5

%

 

23.1

%

Real estate - home equity

 

1,106,325

 

 

1,099,487

 

 

1,118,494

 

 

1,106,319

 

 

1,122,042

 

0.6

%

 

(1.4

) %

Real estate - construction

 

1,209,998

 

 

1,268,590

 

 

1,188,932

 

 

1,137,649

 

 

1,117,592

 

(4.6

) %

 

8.3

%

Consumer

 

679,108

 

 

604,634

 

 

485,095

 

 

471,129

 

 

462,346

 

12.3

%

 

46.9

%

Equipment lease financing

 

255,291

 

 

252,810

 

 

253,659

 

 

236,388

 

 

238,349

 

1.0

%

 

7.1

%

Other(1)

 

40,075

 

 

35,823

 

 

42,476

 

 

36,277

 

 

15,558

 

11.9

%

 

N/M

 

Net loans before PPP

 

19,978,984

 

 

19,514,651

 

 

18,522,326

 

 

18,157,004

 

 

17,785,508

 

2.4

%

 

12.3

%

PPP

 

25,529

 

 

49,174

 

 

114,849

 

 

226,114

 

 

435,042

 

(48.1

) %

 

(94.1

) %

Total Net Loans

$

20,004,513

 

$

19,563,825

 

$

18,637,175

 

$

18,383,118

 

$

18,220,550

 

2.3

%

 

9.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

7,310,824

 

$

7,535,791

 

$

7,647,618

 

$

7,431,235

 

$

7,516,656

 

(3.0

) %

 

(2.7

) %

Interest-bearing demand

 

5,479,443

 

 

5,708,059

 

 

5,597,975

 

 

5,664,987

 

 

5,933,780

 

(4.0

) %

 

(7.7

) %

Savings

 

6,466,775

 

 

6,681,713

 

 

6,425,634

 

 

6,436,548

 

 

6,413,638

 

(3.2

) %

 

0.8

%

Total demand and savings

 

19,257,042

 

 

19,925,563

 

 

19,671,227

 

 

19,532,770

 

 

19,864,074

 

(3.4

) %

 

(3.1

) %

Brokered

 

215,729

 

 

247,105

 

 

244,200

 

 

250,350

 

 

256,192

 

(12.7

) %

 

(15.8

) %

Time

 

1,554,885

 

 

1,615,384

 

 

1,608,286

 

 

1,697,063

 

 

1,756,672

 

(3.7

) %

 

(11.5

) %

Total Deposits

$

21,027,656

 

$

21,788,052

 

$

21,523,713

 

$

21,480,183

 

$

21,876,938

 

(3.5

) %

 

(3.9

) %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds purchased

$

261,737

 

$

96,965

 

$

2,857

 

$

 

$

 

N/M

 

 

N/M

 

Federal Home Loan Bank advances

 

564,692

 

 

206,152

 

 

 

 

 

 

 

N/M

 

 

N/M

 

Senior debt and subordinated debt

 

539,550

 

 

554,735

 

 

555,701

 

 

608,961

 

 

622,108

 

(2.7

) %

 

(13.3

) %

Other borrowings

 

659,543

 

 

501,496

 

 

445,261

 

 

424,854

 

 

474,987

 

31.5

%

 

38.9

%

Total Borrowings

$

2,025,522

 

$

1,359,348

 

$

1,003,819

 

$

1,033,815

 

$

1,097,095

 

49.0

%

 

84.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Consists of overdrafts and net origination fees and costs.

 

 

 

 

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

 

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

Year Ended December 31

 

 

2022

 

2021

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

 

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

Net loans

 

$

19,152,740

 

 

$

765,603

 

 

4.00

%

 

$

18,627,787

 

 

$

644,387

 

 

3.46

%

Investment securities

 

 

4,364,627

 

 

 

106,115

 

 

2.43

%

 

 

3,673,250

 

 

 

86,325

 

 

2.35

%

Loans held for sale

 

 

14,974

 

 

 

866

 

 

5.78

%

 

 

39,211

 

 

 

1,302

 

 

3.32

%

Other interest-earning assets

 

 

814,731

 

 

 

7,249

 

 

0.89

%

 

 

2,014,954

 

 

 

3,694

 

 

0.18

%

Total Interest-Earning Assets

 

 

24,347,072

 

 

 

879,833

 

 

3.61

%

 

 

24,355,202

 

 

 

735,708

 

 

3.02

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Earning assets:

 

 

 

 

 

 

Cash and due from banks

 

 

156,050

 

 

 

 

 

 

 

165,942

 

 

 

 

 

Premises and equipment

 

 

220,982

 

 

 

 

 

 

 

228,708

 

 

 

 

 

Other assets

 

 

1,505,277

 

 

 

 

 

 

 

1,686,053

 

 

 

 

 

Less: ACL - loans(2)

 

 

(257,897

)

 

 

 

 

 

 

(265,572

)

 

 

 

 

Total Assets

 

$

25,971,484

 

 

 

 

 

 

$

26,170,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing liabilities:

 

 

 

 

 

 

Demand deposits

 

$

5,593,942

 

 

$

8,219

 

 

0.15

%

 

$

5,979,479

 

 

$

3,662

 

 

0.06

%

Savings deposits

 

 

6,458,165

 

 

 

16,642

 

 

0.26

%

 

 

6,306,967

 

 

 

4,936

 

 

0.08

%

Brokered deposits

 

 

262,359

 

 

 

4,097

 

 

1.56

%

 

 

286,901

 

 

 

1,096

 

 

0.38

%

Time deposits

 

 

1,617,804

 

 

 

14,871

 

 

0.92

%

 

 

1,939,446

 

 

 

20,311

 

 

1.05

%

Total Interest-Bearing Deposits

 

 

13,932,270

 

 

 

43,829

 

 

0.31

%

 

 

14,512,793

 

 

 

30,005

 

 

0.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Total borrowings

 

 

1,358,357

 

 

 

39,375

 

 

2.89

%

 

 

1,297,963

 

 

 

29,677

 

 

2.29

%

Total Interest-Bearing Liabilities

 

 

15,290,627

 

 

 

83,204

 

 

0.54

%

 

 

15,810,756

 

 

 

59,682

 

 

0.38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Bearing liabilities:

 

 

 

 

 

 

Demand deposits

 

 

7,522,304

 

 

 

 

 

 

 

7,211,153

 

 

 

 

 

Other

 

 

598,230

 

 

 

 

 

 

 

462,478

 

 

 

 

 

Total Liabilities

 

 

23,411,161

 

 

 

 

 

 

 

23,484,387

 

 

 

 

 

Total Deposits/Cost of Deposits

 

 

21,454,574

 

 

 

 

0.20

%

 

 

21,723,946

 

 

 

 

0.14

%

Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")

 

 

22,812,931

 

 

 

 

0.36

%

 

 

23,021,909

 

 

 

 

0.26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

2,560,323

 

 

 

 

 

 

 

2,685,946

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$

25,971,484

 

 

 

 

 

 

$

26,170,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income/net interest margin (fully taxable equivalent)

 

 

 

 

796,629

 

 

3.27

%

 

 

 

 

676,026

 

 

2.78

%

Tax equivalent adjustment

 

 

 

 

(14,995

)

 

 

 

 

 

 

(12,296

)

 

 

Net Interest Income

 

 

 

$

781,634

 

 

 

 

 

 

$

663,730

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.

(2) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION

 

 

 

 

AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED):

dollars in thousands

 

 

 

 

 

 

 

Year Ended December 31

 

 

 

 

2022

 

 

2021

 

 

% Change

Loans, by type:

 

 

 

 

 

Real estate - commercial mortgage

$

7,523,806

 

$

7,149,712

 

 

5.2

%

Commercial and industrial

 

4,126,916

 

 

3,932,351

 

 

4.9

%

Real estate - residential mortgage

 

4,261,527

 

 

3,501,072

 

 

21.7

%

Real estate - home equity

 

1,101,142

 

 

1,141,042

 

 

(3.5

) %

Real estate - construction

 

1,178,550

 

 

1,078,350

 

 

9.3

%

Consumer

 

569,305

 

 

456,427

 

 

24.7

%

Equipment lease financing

 

249,595

 

 

252,104

 

 

(1.0

) %

Other(1)

 

38,682

 

 

(3,776

)

 

N/M

 

Net loans before PPP

 

19,049,523

 

 

17,507,282

 

 

8.8

%

PPP

 

103,217

 

 

1,120,505

 

 

(90.8

) %

Total Net Loans

$

19,152,740

 

$

18,627,787

 

 

2.8

%

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

Noninterest-bearing demand

$

7,522,304

 

$

7,211,153

 

 

4.3

%

Interest-bearing demand

 

5,593,942

 

 

5,979,479

 

 

(6.4

) %

Savings

 

6,458,165

 

 

6,306,967

 

 

2.4

%

Total demand and savings

 

19,574,411

 

 

19,497,599

 

 

0.4

%

Brokered

 

262,359

 

 

286,901

 

 

(8.6

) %

Time

 

1,617,804

 

 

1,939,446

 

 

(16.6

) %

Total Deposits

$

21,454,574

 

$

21,723,946

 

 

(1.2

) %

 

 

 

 

 

 

Borrowings, by type:

 

 

 

 

 

Federal funds purchased

$

91,125

 

$

 

 

N/M

 

Federal Home Loan Bank advances

 

194,295

 

 

126,677

 

 

53.4

%

Senior debt and subordinated debt

 

564,337

 

 

657,386

 

 

(14.2

) %

Other borrowings

 

508,600

 

 

513,900

 

 

(1.0

) %

Total Borrowings

$

1,358,357

 

$

1,297,963

 

 

4.7

%

 

 

 

 

 

 

 

 

 

 

 

 

N/M - Not meaningful

 

 

 

 

 

(1) Consists of overdrafts and net origination fees and costs.

 

 

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

 

 

 

ASSET QUALITY INFORMATION (UNAUDITED)

 

 

 

 

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Year Ended

 

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Dec 31

 

Dec 31

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

Allowance for credit losses related to net loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$

266,838

 

 

$

248,564

 

 

$

243,705

 

 

$

249,001

 

 

$

256,727

 

 

$

249,001

 

 

$

277,567

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CECL Day 1 provision expense

 

 

 

 

7,954

 

 

 

 

 

 

 

 

 

 

 

 

7,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Initial purchased credit deteriorated loans

 

 

 

 

1,135

 

 

 

 

 

 

 

 

 

 

 

 

1,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

(179

)

 

 

(1,783

)

 

 

(201

)

 

 

(227

)

 

 

(9,417

)

 

 

(2,390

)

 

 

(15,337

)

 

Real estate - commercial mortgage

 

(12,235

)

 

 

(86

)

 

 

 

 

 

(152

)

 

 

(369

)

 

 

(12,473

)

 

 

(8,726

)

 

Consumer and home equity

 

(1,311

)

 

 

(1,172

)

 

 

(877

)

 

 

(1,052

)

 

 

(828

)

 

 

(4,412

)

 

 

(3,309

)

 

Real estate - residential mortgage

 

 

 

 

 

 

 

(66

)

 

 

 

 

 

 

 

 

(66

)

 

 

(1,290

)

 

Real estate - construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(39

)

 

Equipment lease financing and other

 

(505

)

 

 

(683

)

 

 

(474

)

 

 

(469

)

 

 

(380

)

 

 

(2,131

)

 

 

(2,251

)

 

Total loans charged off

 

(14,230

)

 

 

(3,724

)

 

 

(1,618

)

 

 

(1,900

)

 

 

(10,994

)

 

 

(21,472

)

 

 

(30,952

)

 

Recoveries of loans previously charged off:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

961

 

 

 

2,213

 

 

 

739

 

 

 

1,980

 

 

 

5,795

 

 

 

5,893

 

 

 

9,587

 

 

Real estate - commercial mortgage

 

183

 

 

 

29

 

 

 

3,536

 

 

 

112

 

 

 

1,007

 

 

 

3,860

 

 

 

2,474

 

 

Consumer and home equity

 

683

 

 

 

682

 

 

 

762

 

 

 

454

 

 

 

767

 

 

 

2,581

 

 

 

2,345

 

 

Real estate - residential mortgage

 

10

 

 

 

101

 

 

 

92

 

 

 

222

 

 

 

89

 

 

 

425

 

 

 

375

 

 

Real estate - construction

 

530

 

 

 

 

 

 

12

 

 

 

32

 

 

 

77

 

 

 

574

 

 

 

1,412

 

 

Equipment lease financing and other

 

132

 

 

 

247

 

 

 

226

 

 

 

154

 

 

 

283

 

 

 

759

 

 

 

953

 

 

Recoveries of loans previously charged off

 

2,499

 

 

 

3,272

 

 

 

5,367

 

 

 

2,954

 

 

 

8,018

 

 

 

14,092

 

 

 

17,146

 

 

Net loans recovered (charged off)

 

(11,731

)

 

 

(452

)

 

 

3,749

 

 

 

1,054

 

 

 

(2,976

)

 

 

(7,380

)

 

 

(13,806

)

 

Provision for credit losses

 

14,259

 

 

 

9,637

 

 

 

1,110

 

 

 

(6,350

)

 

 

(4,750

)

 

 

18,656

 

 

 

(14,760

)

 

Balance at end of period

$

269,366

 

 

$

266,838

 

 

$

248,564

 

 

$

243,705

 

 

$

249,001

 

 

$

269,366

 

 

$

249,001

 

 

Net (recoveries) charge offs to average loans

 

0.23

%

 

 

0.01

%

 

 

(0.08

) %

 

 

(0.02

) %

 

 

0.07

%

 

 

0.04

%

 

 

0.07

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses related to OBS Credit Exposures

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

$

254

 

 

$

1,367

 

 

$

390

 

 

($

600

)

 

($

250

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

$

144,443

 

 

$

178,204

 

 

$

162,530

 

 

$

136,799

 

 

$

143,666

 

 

 

 

 

 

Loans 90 days past due and accruing

 

27,463

 

 

 

14,559

 

 

 

11,016

 

 

 

24,182

 

 

 

8,453

 

 

 

 

 

 

Total non-performing loans

 

171,906

 

 

 

192,763

 

 

 

173,546

 

 

 

160,981

 

 

 

152,119

 

 

 

 

 

 

Other real estate owned

 

5,790

 

 

 

5,877

 

 

 

4,786

 

 

 

2,014

 

 

 

1,817

 

 

 

 

 

 

Total non-performing assets

$

177,696

 

 

$

198,640

 

 

$

178,332

 

 

$

162,995

 

 

$

153,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING LOANS, BY TYPE:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

28,288

 

 

$

29,831

 

 

$

44,713

 

 

$

30,193

 

 

$

30,629

 

 

 

 

 

 

Real estate - commercial mortgage

 

72,634

 

 

 

96,281

 

 

 

59,940

 

 

 

64,190

 

 

 

54,044

 

 

 

 

 

 

Real estate - residential mortgage

 

46,509

 

 

 

41,597

 

 

 

42,922

 

 

 

39,308

 

 

 

39,399

 

 

 

 

 

 

Consumer and home equity

 

9,800

 

 

 

10,016

 

 

 

10,552

 

 

 

11,465

 

 

 

11,505

 

 

 

 

 

 

Real estate - construction

 

1,368

 

 

 

1,456

 

 

 

1,357

 

 

 

672

 

 

 

901

 

 

 

 

 

 

Equipment lease financing and other

 

13,307

 

 

 

13,582

 

 

 

14,062

 

 

 

15,153

 

 

 

15,641

 

 

 

 

 

 

Total non-performing loans

$

171,906

 

 

$

192,763

 

 

$

173,546

 

 

$

160,981

 

 

$

152,119

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FULTON FINANCIAL CORPORATION

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

 

(dollars in thousands, except per share data and percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Explanatory note:

This press release contains supplemental financial information, as detailed below, that 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 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

 

 

 

 

 

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

 

 

 

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

Operating net income available to common shareholders

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

79,271

 

 

$

68,309

 

 

$

67,427

 

 

$

61,726

 

 

$

59,325

 

Plus: Core deposit intangible amortization

 

 

514

 

 

 

514