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Fulton Financial Corporation Announces First Quarter 2023 Results

Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $65.8 million, or $0.39 per diluted share, for the first quarter of 2023, a decrease of $13.5 million, or 17.1%, in comparison to the fourth quarter of 2022.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230418006192/en/

“Our focus remains the same - the long-term financial wellbeing of our company, our customers and our communities,” said Curtis J. Myers, Chairman and CEO of Fulton. “During the quarter, we took actions to fortify our balance sheet, increase our liquidity, diversify our funding and enhance our reserves. By taking these actions, monitoring capital and communicating with customers, we’ve positioned ourselves to continue serving our stakeholders and growing our company.”

Net Interest Income and Balance Sheet

Net interest income for the first quarter of 2023 was $215.6 million, a decrease of $10.3 million in comparison to the fourth quarter of 2022. The net interest margin for the first quarter of 2023 decreased 16 basis points, to 3.53%, in comparison to 3.69% in the fourth quarter of 2022.

The linked-quarter decrease in net interest income was primarily due to a shift in funding mix from lower-cost demand deposits to higher-cost borrowings, time deposits and brokered deposits. An increase in the average balance for net loans of $458.6 million and higher loan yields in the first quarter of 2023 primarily contributed to an increase in interest income of $22.0 million to $289.8 million in comparison to $267.8 million in the fourth quarter of 2022. Interest expense from interest-bearing liabilities for the first quarter of 2023 increased by $32.3 million to $74.2 million in comparison to $41.9 million in the fourth quarter of 2022. The linked-quarter increase in interest expense in the first quarter of 2023 was primarily due to a decline in the average balance of noninterest-bearing deposits of $669.1 million and an increase in the average balance for higher-cost borrowings and other interest-bearing liabilities of $1.0 billion in comparison to the fourth quarter of 2022.

For the first quarter of 2023, net interest income was $215.6 million, an increase of $54.3 million, or 33.6%, in comparison to the first quarter of 2022. Interest income for the first quarter of 2023 increased by $116.8 million to $289.8 million in comparison to $173.0 million in the first quarter of 2022 primarily driven by rising interest rates resulting in increases in interest income from net loans, investment securities and other interest-earning assets of $110.9 million, $3.2 million and $2.7 million, respectively. Increases in the average balances for net loans and investment securities in the first quarter of 2023 of $2,080.0 million and $63.3 million, respectively, driven in part by the Prudential Bancorp, Inc. ("Prudential Bancorp") acquisition, also contributed to the increase in interest income. Interest expense from interest-bearing liabilities for the first quarter of 2023 increased by $62.5 million to $74.2 million in comparison to $11.7 million in the first quarter of 2022 primarily driven by rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings and other interest-bearing liabilities of $36.0 million and $26.5 million, respectively. An increase in the average balance for borrowings and other interest-bearing liabilities of $2.0 billion in the first quarter of 2023 in comparison to the first quarter of 2022 also contributed to the increase in interest expense.

Total average interest-earning assets for the first quarter of 2023 was $25.2 billion, an increase of $450.6 million from the fourth quarter of 2022 primarily driven by the aforementioned increase in average net loans of $458.6 million and an increase in average other interest-earning assets of $33.0 million, partially offset by a decrease in average investment securities of $41.0 million.

Total average interest-earning assets for the first quarter of 2023 increased by $1.3 billion from the first quarter of 2022. Average net loans for the first quarter of 2023 were $20.5 billion, an increase of $2.1 billion from the same period in 2022. Compared to the first quarter of 2022, average other interest-earning assets decreased $793.6 million and average investment securities increased $63.3 million in the first quarter of 2023.

Total average interest-bearing liabilities increased $1.2 billion, to $17.0 billion, in the first quarter of 2023 in comparison to $15.7 billion in the fourth quarter of 2022 driven by increases in the average balance for borrowings and other interest-bearing liabilities and the average balance for total interest-bearing deposits of $1.0 billion and $215.8 million, respectively.

Total average interest-bearing liabilities for the first quarter of 2023 increased $1.9 billion in comparison to $15.1 billion in the first quarter of 2022, driven by an increase in the average balance for borrowings and other interest-bearing liabilities of $2.0 billion.

Asset Quality

In the first quarter of 2023, a provision for credit losses of $24.5 million was recorded in comparison to a provision for credit losses of $14.5 million in the fourth quarter of 2022, and a negative provision for credit losses of $7.0 million in the first quarter of 2022. The linked-quarter increase in the provision for credit losses of $10.0 million was primarily due to loan growth and changes to the macroeconomic outlook.

Non-performing assets were $167.9 million, or 0.62% of total assets, at March 31, 2023, in comparison to $177.7 million, or 0.66% of total assets, at December 31, 2022, and $163.0 million, or 0.64% of total assets, at March 31, 2022.

Net charge-offs for the first quarter of 2023 were 0.27% of total average loans in comparison to 0.23% and negative 0.02% in the fourth quarter of 2022 and the first quarter of 2022, respectively. Net charge-offs of $14.0 million for the first quarter of 2023 were primarily due to a charge-off of $13.3 million for a commercial office loan due to credit-related concerns; the same loan that received a partial charge-off in the fourth quarter of 2022.

Non-interest Income

Non-interest income before investment securities gains in the first quarter of 2023 was $51.7 million, a decrease of $2.6 million, or 4.8%, from the fourth quarter of 2022. The decrease in non-interest income was driven primarily by decreases in commercial banking income, income from equity method investments, reflected in other income, and consumer banking fees of $1.1 million, $1.0 million and $0.9 million, respectively, partially offset by an increase in wealth management revenues of $0.5 million.

Compared to the first quarter of 2022, non-interest income before investment securities gains in the first quarter of 2023 decreased $3.5 million, or 6.3%, from $55.2 million. The decrease in non-interest income was primarily due to decreases of $2.6 million in mortgage banking income due to lower loan sale volumes and lower spreads, $1.4 million in wealth management revenues primarily due to market performance and $1.1 million from lower income from equity method investments, reflected in other income, partially offset by an increase of $1.5 million in commercial banking income.

Non-interest Expense

Non-interest expense was $159.6 million in the first quarter of 2023, a decrease of $7.0 million, or 4.2%, compared to $166.6 million in the fourth quarter of 2022, which excludes merger-related expenses of $1.9 million. The decline was primarily due to decreases of $3.5 million in salaries and employee benefits expense, $0.7 million in other outside services expense, $0.6 million in professional fees and $0.5 million in marketing expense, partially offset by a $1.6 million increase in FDIC insurance expense primarily due to the adoption of a final rule to increase base deposit insurance assessment rates effective January 1, 2023. Additional contributors of the decline in noninterest expense were decreases of $1.2 million in charitable contributions, $1.1 million in other real estate owned assets due to gains on sales recorded in the first quarter of 2023 and $0.8 million in contingent liabilities, in each case, reflected in other expense.

Compared to the first quarter of 2022, non-interest expense, excluding merger-related expenses of $0.4 million in the first quarter of 2022, increased $14.0 million, or 9.6%. The increase was primarily due to increases of $4.8 million in salaries and employee benefits expense, $2.0 million in other outside services expense, $1.6 million in FDIC insurance expense, primarily due to the adoption of a final rule to increase base deposit insurance assessment rates effective January 1, 2023, $1.5 million in data processing and software expense, $0.6 million in professional fees, $0.6 million in marketing expense and $0.5 million in intangible amortization expense due to the acquisition of Prudential Bancorp. Additional drivers of the increase in noninterest expense were an unfavorable change in owned asset expense due to a $1.5 million gain on sale recorded on owned assets in the first quarter of 2022 and a $0.8 million contingent liability recorded in the first quarter of 2023, in each case, reflected in other expense.

Income Tax Expense

For the first quarter of 2023, the effective tax rate was 17.9%, in comparison to 17.3% for the full-year of 2022.

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, 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)

 

 

 

 

 

 

 

dollars in thousands, except per share data

 

 

 

 

 

 

 

 

Three months ended

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

2023

 

2022

 

2022

 

2022

 

2022

 

Ending Balances

 

 

 

 

 

 

 

 

 

 

Investment securities

$

3,950,101

 

 

$

3,968,023

 

 

$

3,936,694

 

 

$

4,117,801

 

 

$

4,288,674

 

 

Net loans

 

20,670,188

 

 

 

20,279,547

 

 

 

19,695,199

 

 

 

18,920,950

 

 

 

18,476,119

 

 

Total assets

 

27,112,176

 

 

 

26,931,702

 

 

 

26,146,042

 

 

 

25,252,686

 

 

 

25,598,310

 

 

Deposits

 

21,316,584

 

 

 

20,649,538

 

 

 

21,376,554

 

 

 

21,143,866

 

 

 

21,541,174

 

 

Shareholders' equity

 

2,618,998

 

 

 

2,579,757

 

 

 

2,471,159

 

 

 

2,471,093

 

 

 

2,569,535

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances

 

 

 

 

 

 

 

 

 

 

Investment securities

 

3,964,615

 

 

 

3,936,579

 

 

 

4,254,216

 

 

 

4,216,507

 

 

 

4,228,827

 

 

Net loans

 

20,463,096

 

 

 

20,004,513

 

 

 

19,563,825

 

 

 

18,637,175

 

 

 

18,383,118

 

 

Total assets

 

26,900,653

 

 

 

26,386,355

 

 

 

26,357,095

 

 

 

25,578,432

 

 

 

25,622,462

 

 

Deposits

 

20,574,323

 

 

 

21,027,656

 

 

 

21,788,052

 

 

 

21,523,713

 

 

 

21,480,183

 

 

Shareholders' equity

 

2,613,316

 

 

 

2,489,148

 

 

 

2,604,057

 

 

 

2,531,346

 

 

 

2,688,834

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement

 

 

 

 

 

 

 

 

 

 

Net interest income

 

215,587

 

 

 

225,911

 

 

 

215,582

 

 

 

178,831

 

 

 

161,310

 

 

Provision for credit losses

 

24,544

 

 

 

14,513

 

 

 

18,958

 

 

 

1,500

 

 

 

(6,950

)

 

Non-interest income

 

51,753

 

 

 

54,321

 

 

 

59,162

 

 

 

58,391

 

 

 

55,256

 

 

Non-interest expense

 

159,616

 

 

 

168,462

 

 

 

169,558

 

 

 

149,730

 

 

 

145,978

 

 

Income before taxes

 

83,180

 

 

 

97,257

 

 

 

86,228

 

 

 

85,992

 

 

 

77,538

 

 

Net income available to common shareholders

 

65,752

 

 

 

79,271

 

 

 

68,309

 

 

 

67,427

 

 

 

61,726

 

 

Pre-provision net revenue(1)

 

108,375

 

 

 

115,049

 

 

 

113,631

 

 

 

89,384

 

 

 

71,842

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (basic)

$

0.39

 

 

$

0.47

 

 

$

0.41

 

 

$

0.42

 

 

$

0.38

 

 

Net income available to common shareholders (diluted)

$

0.39

 

 

$

0.47

 

 

$

0.40

 

 

$

0.42

 

 

$

0.38

 

 

Operating net income available to common shareholders(1)

$

0.39

 

 

$

0.48

 

 

$

0.48

 

 

$

0.42

 

 

$

0.38

 

 

Cash dividends

$

0.15

 

 

$

0.21

 

 

$

0.15

 

 

$

0.15

 

 

$

0.15

 

 

Common shareholders' equity

$

14.67

 

 

$

14.24

 

 

$

13.61

 

 

$

14.15

 

 

$

14.79

 

 

Common shareholders' equity (tangible)(1)

$

11.26

 

 

$

10.90

 

 

$

10.26

 

 

$

10.81

 

 

$

11.44

 

 

Weighted average shares (basic)

 

166,605

 

 

 

167,504

 

 

 

167,353

 

 

 

160,920

 

 

 

160,588

 

 

Weighted average shares (diluted)

 

168,401

 

 

 

169,136

 

 

 

168,781

 

 

 

162,075

 

 

 

161,911

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

2023

 

2022

 

2022

 

2022

 

2022

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to average loans

 

0.27

%

 

 

0.23

%

 

 

0.01

%

 

 

(0.08

) %

 

 

(0.02

) %

 

Non-performing loans to total loans

 

0.80

%

 

 

0.85

%

 

 

0.98

%

 

 

0.92

%

 

 

0.87

%

 

Non-performing assets to total assets

 

0.62

%

 

 

0.66

%

 

 

0.76

%

 

 

0.71

%

 

 

0.64

%

 

ACL - loans(1) to total loans

 

1.35

%

 

 

1.33

%

 

 

1.35

%

 

 

1.31

%

 

 

1.32

%

 

ACL - loans(1) to non-performing loans

 

169

%

 

 

157

%

 

 

138

%

 

 

143

%

 

 

151

%

 

 

 

 

 

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.03

%

 

 

1.23

%

 

 

1.07

%

 

 

1.10

%

 

 

1.02

%

 

Operating return on average assets(2)

 

1.04

%

 

 

1.26

%

 

 

1.25

%

 

 

1.11

%

 

 

1.02

%

 

Return on average common shareholders' equity

 

11.02

%

 

 

13.70

%

 

 

11.24

%

 

 

11.57

%

 

 

10.03

%

 

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

 

14.46

%

 

 

18.59

%

 

 

17.31

%

 

 

15.23

%

 

 

12.88

%

 

Net interest margin

 

3.53

%

 

 

3.69

%

 

 

3.54

%

 

 

3.04

%

 

 

2.78

%

 

Efficiency ratio(2)

 

58.5

%

 

 

58.1

%

 

 

57.8

%

 

 

61.4

%

 

 

65.8

%

 

Non-interest expenses to total average assets

 

2.41

%

 

 

2.53

%

 

 

2.55

%

 

 

2.35

%

 

 

2.31

%

 

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

 

2.40

%

 

 

2.48

%

 

 

2.43

%

 

 

2.32

%

 

 

2.29

%

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

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

 

7.0

%

 

 

6.9

%

 

 

6.7

%

 

 

7.0

%

 

 

7.3

%

 

TCE ratio, (excluding AOCI)(2)(4)

 

8.3

%

 

 

8.2

%

 

 

8.3

%

 

 

8.2

%

 

 

7.9

%

 

Tier 1 leverage ratio(3)

 

9.3

%

 

 

9.5

%

 

 

9.2

%

 

 

9.1

%

 

 

8.9

%

 

Common equity Tier 1 capital ratio(3)

 

9.8

%

 

 

10.0

%

 

 

10.0

%

 

 

9.9

%

 

 

10.0

%

 

Tier 1 risk-based capital ratio(3)

 

10.7

%

 

 

10.9

%

 

 

10.9

%

 

 

10.8

%

 

 

10.9

%

 

Total risk-based capital ratio(3)

 

13.5

%

 

 

13.6

%

 

 

13.6

%

 

 

13.7

%

 

 

13.8

%

 

 

 

 

 

 

 

 

 

 

 

 

(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) Regulatory capital ratios as of March 31, 2023 are preliminary and prior periods are actual.

 

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

 

FULTON FINANCIAL CORPORATION

 

 

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

 

 

dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

2023

 

2022

 

2022

 

2022

 

2022

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

129,003

 

 

$

126,898

 

 

$

143,465

 

 

$

158,605

 

 

$

161,462

 

 

Other interest-earning assets

 

545,355

 

 

 

685,209

 

 

 

467,164

 

 

 

383,715

 

 

 

1,054,232

 

 

Loans held for sale

 

6,507

 

 

 

7,264

 

 

 

14,411

 

 

 

17,528

 

 

 

27,675

 

 

Investment securities

 

3,950,101

 

 

 

3,968,023

 

 

 

3,936,694

 

 

 

4,117,801

 

 

 

4,288,674

 

 

Net loans

 

20,670,188

 

 

 

20,279,547

 

 

 

19,695,199

 

 

 

18,920,950

 

 

 

18,476,119

 

 

Less: ACL - loans(1)

 

(278,695

)

 

 

(269,366

)

 

 

(266,838

)

 

 

(248,564

)

 

 

(243,705

)

 

Loans, net

 

20,391,493

 

 

 

20,010,181

 

 

 

19,428,361

 

 

 

18,672,386

 

 

 

18,232,414

 

 

Net premises and equipment

 

216,059

 

 

 

225,141

 

 

 

221,496

 

 

 

211,639

 

 

 

218,257

 

 

Accrued interest receivable

 

90,267

 

 

 

91,579

 

 

 

72,821

 

 

 

64,457

 

 

 

55,102

 

 

Goodwill and intangible assets

 

563,502

 

 

 

560,824

 

 

 

561,495

 

 

 

537,700

 

 

 

537,877

 

 

Other assets

 

1,219,889

 

 

 

1,256,583

 

 

 

1,300,135

 

 

 

1,088,855

 

 

 

1,022,617

 

 

Total Assets

$

27,112,176

 

 

$

26,931,702

 

 

$

26,146,042

 

 

$

25,252,686

 

 

$

25,598,310

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Deposits

$

21,316,584

 

 

$

20,649,538

 

 

$

21,376,554

 

 

$

21,143,866

 

 

$

21,541,174

 

 

Borrowings

 

2,446,770

 

 

 

2,871,207

 

 

 

1,424,681

 

 

 

1,013,315

 

 

 

1,008,934

 

 

Other liabilities

 

729,824

 

 

 

831,200

 

 

 

873,648

 

 

 

624,412

 

 

 

478,667

 

 

Total Liabilities

 

24,493,178

 

 

 

24,351,945

 

 

 

23,674,883

 

 

 

22,781,593

 

 

 

23,028,775

 

 

Shareholders' equity

 

2,618,998

 

 

 

2,579,757

 

 

 

2,471,159

 

 

 

2,471,093

 

 

 

2,569,535

 

 

Total Liabilities and Shareholders' Equity

$

27,112,176

 

 

$

26,931,702

 

 

$

26,146,042

 

 

$

25,252,686

 

 

$

25,598,310

 

 

 

 

 

 

 

 

 

 

 

 

LOANS, DEPOSITS AND BORROWINGS DETAIL:

 

 

 

 

 

 

Loans, by type:

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,746,920

 

 

$

7,693,835

 

 

$

7,554,509

 

 

$

7,417,036

 

 

$

7,289,376

 

 

Commercial and industrial

 

4,596,096

 

 

 

4,473,004

 

 

 

4,240,865

 

 

 

4,170,975

 

 

 

4,156,562

 

 

Real estate - residential mortgage

 

4,880,919

 

 

 

4,737,279

 

 

 

4,574,228

 

 

 

4,203,827

 

 

 

3,946,741

 

 

Real estate - home equity

 

1,074,712

 

 

 

1,102,838

 

 

 

1,110,103

 

 

 

1,108,808

 

 

 

1,098,171

 

 

Real estate - construction

 

1,326,754

 

 

 

1,269,925

 

 

 

1,273,097

 

 

 

1,177,446

 

 

 

1,210,340

 

 

Consumer

 

730,775

 

 

 

699,179

 

 

 

633,666

 

 

 

538,747

 

 

 

481,551

 

 

Leases and other loans(2)

 

314,012

 

 

 

303,487

 

 

 

308,731

 

 

 

304,111

 

 

 

293,378

 

 

Total Net Loans

$

20,670,188

 

 

$

20,279,547

 

 

$

19,695,199

 

 

$

18,920,950

 

 

$

18,476,119

 

Deposits, by type:

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

6,403,484

 

 

$

7,006,388

 

 

$

7,372,896

 

 

$

7,530,777

 

 

$

7,528,391

 

 

Interest-bearing demand

 

5,478,237

 

 

 

5,410,903

 

 

 

5,676,600

 

 

 

5,403,805

 

 

 

5,625,286

 

 

Savings

 

6,579,806

 

 

 

6,434,621

 

 

 

6,563,003

 

 

 

6,406,051

 

 

 

6,479,196

 

 

Total demand and savings

 

18,461,527

 

 

 

18,851,912

 

 

 

19,612,499

 

 

 

19,340,633

 

 

 

19,632,873

 

 

Brokered

 

960,919

 

 

 

208,416

 

 

 

226,883

 

 

 

243,172

 

 

 

248,833

 

 

Time

 

1,894,138

 

 

 

1,589,210

 

 

 

1,537,172

 

 

 

1,560,061

 

 

 

1,659,468

 

 

Total Deposits

$

21,316,584

 

 

$

20,649,538

 

 

$

21,376,554

 

 

$

21,143,866

 

 

$

21,541,174

 

Borrowings, by type:

 

 

 

 

 

 

 

 

 

Federal funds purchased

$

525,000

 

 

$

191,000

 

 

$

136,000

 

 

$

20,000

 

 

$

 

 

Federal Home Loan Bank advances

 

747,000

 

 

 

1,250,000

 

 

 

265,500

 

 

 

 

 

 

 

 

Senior debt and subordinated debt

 

539,814

 

 

 

539,634

 

 

 

539,461

 

 

 

555,748

 

 

 

555,594

 

 

Other borrowings

 

634,956

 

 

 

890,573

 

 

 

483,720

 

 

 

437,567

 

 

 

453,340

 

 

Total Borrowings

$

2,446,770

 

 

$

2,871,207

 

 

$

1,424,681

 

 

$

1,013,315

 

 

$

1,008,934

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(2) Includes equipment lease financing, overdraft and net origination fees and costs.

 

 

 

 

 

 

 

 

 

 

 

FULTON FINANCIAL CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

dollars in thousands, except per share

 

 

 

 

Three Months Ended

 

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

 

2023

 

2022

 

2022

 

2022

 

2022

 

Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

289,820

 

 

$

267,847

 

 

$

233,691

 

 

$

190,299

 

 

$

173,001

 

 

 

Interest expense

 

 

74,233

 

 

 

41,936

 

 

 

18,109

 

 

 

11,468

 

 

 

11,691

 

 

 

Net Interest Income

 

 

215,587

 

 

 

225,911

 

 

 

215,582

 

 

 

178,831

 

 

 

161,310

 

 

 

Provision for credit losses

 

 

24,544

 

 

 

14,513

 

 

 

18,958

 

 

 

1,500

 

 

 

(6,950

)

 

 

Net Interest Income after Provision

 

 

191,043

 

 

 

211,398

 

 

 

196,624

 

 

 

177,331

 

 

 

168,260

 

 

Non-Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial banking:

 

 

 

 

 

 

 

 

 

 

 

 

Merchant and card

 

 

6,834

 

 

 

7,223

 

 

 

7,601

 

 

 

7,355

 

 

 

6,097

 

 

 

Cash management

 

 

5,515

 

 

 

5,756

 

 

 

6,483

 

 

 

6,062

 

 

 

5,428

 

 

 

Capital markets

 

 

2,344

 

 

 

2,627

 

 

 

4,060

 

 

 

3,893

 

 

 

1,676

 

 

 

Other commercial banking

 

 

2,820

 

 

 

2,998

 

 

 

2,664

 

 

 

3,049

 

 

 

2,807

 

 

 

Total commercial banking

 

 

17,513

 

 

 

18,604

 

 

 

20,808

 

 

 

20,359

 

 

 

16,008

 

 

 

Consumer banking:

 

 

 

 

 

 

 

 

 

 

 

 

Card

 

 

6,243

 

 

 

6,331

 

 

 

6,278

 

 

 

6,067

 

 

 

5,796

 

 

 

Overdraft

 

 

2,733

 

 

 

3,364

 

 

 

4,463

 

 

 

3,881

 

 

 

3,772

 

 

 

Other consumer banking

 

 

2,241

 

 

 

2,380

 

 

 

2,534

 

 

 

2,524

 

 

 

2,106

 

 

 

Total consumer banking

 

 

11,217

 

 

 

12,075

 

 

 

13,275

 

 

 

12,472

 

 

 

11,674

 

 

 

Wealth management

 

 

18,062

 

 

 

17,531

 

 

 

17,610

 

 

 

18,274

 

 

 

19,428

 

 

 

Mortgage banking

 

 

1,970

 

 

 

2,140

 

 

 

3,720

 

 

 

3,768

 

 

 

4,576

 

 

 

Other

 

 

2,968

 

 

 

3,972

 

 

 

3,802

 

 

 

3,510

 

 

 

3,551

 

 

 

Non-interest income before investment securities gains (losses)

 

 

51,730

 

 

 

54,322

 

 

 

59,215

 

 

 

58,383

 

 

 

55,237

 

 

 

Investment securities gains (losses), net

 

 

23

 

 

 

(1

)

 

 

(53

)

 

 

8

 

 

 

19

 

 

 

Total Non-Interest Income

 

 

51,753

 

 

 

54,321

 

 

 

59,162

 

 

 

58,391

 

 

 

55,256

 

 

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

89,283

 

 

 

92,733

 

 

 

94,283

 

 

 

85,404

 

 

 

84,464

 

 

 

Data processing and software

 

 

15,796

 

 

 

15,448

 

 

 

15,807

 

 

 

14,685

 

 

 

14,315

 

 

 

Net occupancy

 

 

14,438

 

 

 

14,061

 

 

 

14,025

 

 

 

13,587

 

 

 

14,522

 

 

 

Other outside services

 

 

10,126

 

 

 

10,860

 

 

 

9,361

 

 

 

8,764

 

 

 

8,167

 

 

 

FDIC insurance

 

 

4,795

 

 

 

3,219

 

 

 

3,158

 

 

 

2,961

 

 

 

3,209

 

 

 

Equipment

 

 

3,389

 

 

 

3,640

 

 

 

3,548

 

 

 

3,422

 

 

 

3,423

 

 

 

Professional fees

 

 

2,392

 

 

 

2,945

 

 

 

2,373

 

 

 

2,013

 

 

 

1,792

 

 

 

Marketing

 

 

1,886

 

 

 

2,380

 

 

 

1,859

 

 

 

1,326

 

 

 

1,320

 

 

 

Intangible amortization

 

 

674

 

 

 

688

 

 

 

690

 

 

 

177

 

 

 

176

 

 

 

Merger-related expenses

 

 

 

 

 

1,894

 

 

 

7,006

 

 

 

1,027

 

 

 

401

 

 

 

Other

 

 

16,837

 

 

 

20,594

 

 

 

17,448

 

 

 

16,364

 

 

 

14,189

 

 

 

Total Non-Interest Expense

 

 

159,616

 

 

 

168,462

 

 

 

169,558

 

 

 

149,730

 

 

 

145,978

 

 

 

Income Before Income Taxes

 

 

83,180

 

 

 

97,257

 

 

 

86,228

 

 

 

85,992

 

 

 

77,538

 

 

 

Income tax expense

 

 

14,866

 

 

 

15,424

 

 

 

15,357

 

 

 

16,003

 

 

 

13,250

 

 

 

Net Income

 

 

68,314

 

 

 

81,833

 

 

 

70,871

 

 

 

69,989

 

 

 

64,288

 

 

 

Preferred stock dividends

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

Net Income Available to Common Shareholders

 

$

65,752

 

 

$

79,271

 

 

$

68,309

 

 

$

67,427

 

 

$

61,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

 

2023

 

2022

 

2022

 

2022

 

2022

 

PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.39

 

 

$

0.47

 

 

$

0.41

 

 

$

0.42

 

 

$

0.38

 

 

 

Diluted

 

$

0.39

 

 

$

0.47

 

 

$

0.40

 

 

$

0.42

 

 

$

0.38

 

 

 

Cash dividends

 

$

0.15

 

 

$

0.21

 

 

$

0.15

 

 

$

0.15

 

 

$

0.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

 

166,605

 

 

 

167,504

 

 

 

167,353

 

 

 

160,920

 

 

 

160,588

 

 

 

Weighted average shares (diluted)

 

 

168,401

 

 

 

169,136

 

 

 

168,781

 

 

 

162,075

 

 

 

161,911

 

 

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

Three months ended

 

 

March 31, 2023

 

December 31, 2022

 

March 31, 2022

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

 

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans

$

20,463,096

 

 

$

263,065

 

 

5.21

%

 

$

20,004,513

 

 

$

241,453

 

 

4.80

%

 

$

18,383,118

 

 

$

151,127

 

 

3.32

%

 

Investment securities

 

4,289,643

 

 

 

27,522

 

 

2.60

%

 

 

4,330,635

 

 

 

27,781

 

 

2.56

%

 

 

4,226,352

 

 

 

24,251

 

 

2.29

%

 

Other interest-earning assets

 

493,130

 

 

 

3,648

 

 

3.00

%

 

 

460,082

 

 

 

2,923

 

 

2.53

%

 

 

1,286,723

 

 

 

912

 

 

0.29

%

 

Total Interest-Earning Assets

 

25,245,869

 

 

 

294,235

 

 

4.73

%

 

 

24,795,230

 

 

 

272,157

 

 

4.36

%

 

 

23,896,193

 

 

 

176,290

 

 

2.98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

141,254

 

 

 

 

 

 

 

149,472

 

 

 

 

 

 

 

162,320

 

 

 

 

 

 

Premises and equipment

 

223,025

 

 

 

 

 

 

 

223,245

 

 

 

 

 

 

 

219,932

 

 

 

 

 

 

Other assets

 

1,563,806

 

 

 

 

 

 

 

1,488,684

 

 

 

 

 

 

 

1,595,039

 

 

 

 

 

 

Less: ACL - loans(2)

 

(273,301

)

 

 

 

 

 

 

(270,276

)

 

 

 

 

 

 

(251,022

)

 

 

 

 

 

Total Assets

$

26,900,653

 

 

 

 

 

 

$

26,386,355

 

 

 

 

 

 

$

25,622,462

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

5,326,566

 

 

$

8,455

 

 

0.64

%

 

$

5,479,443

 

 

$

4,589

 

 

0.33

%

 

$

5,664,987

 

 

$

728

 

 

0.05

%

 

Savings deposits

 

6,469,468

 

 

 

20,535

 

 

1.29

%

 

 

6,466,775

 

 

 

11,539

 

 

0.71

%

 

 

6,436,548

 

 

 

1,021

 

 

0.06

%

 

Brokered deposits

 

439,670

 

 

 

5,173

 

 

4.77

%

 

 

215,729

 

 

 

1,947

 

 

3.58

%

 

 

250,350

 

 

 

216

 

 

0.35

%

 

Time deposits

 

1,696,878

 

 

 

7,458

 

 

1.78

%

 

 

1,554,885

 

 

 

4,302

 

 

1.10

%

 

 

1,697,063

 

 

 

3,640

 

 

0.87

%

 

Total Interest-Bearing Deposits

 

13,932,582

 

 

 

41,621

 

 

1.21

%

 

 

13,716,832

 

 

 

22,377

 

 

0.65

%

 

 

14,048,948

 

 

 

5,605

 

 

0.16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings and other interest-bearing liabilities

 

3,058,684

 

 

 

32,613

 

 

4.32

%

 

 

2,025,522

 

 

 

19,559

 

 

3.83

%

 

 

1,033,815

 

 

 

6,087

 

 

2.39

%

 

Total Interest-Bearing Liabilities

 

16,991,266

 

 

 

74,234

 

 

1.78

%

 

 

15,742,354

 

 

 

41,936

 

 

1.06

%

 

 

15,082,763

 

 

 

11,692

 

 

0.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

6,641,741

 

 

 

 

 

 

 

7,310,824

 

 

 

 

 

 

 

7,431,235

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

654,330

 

 

 

 

 

 

 

844,029

 

 

 

 

 

 

 

419,630

 

 

 

 

 

 

Total Liabilities

 

24,287,337

 

 

 

 

 

 

 

23,897,207

 

 

 

 

 

 

 

22,933,628

 

 

 

 

 

 

Total Deposits/Cost of Deposits

 

20,574,323

 

 

 

 

0.82

%

 

 

21,027,656

 

 

 

 

0.42

%

 

 

21,480,183

 

 

 

 

0.11

%

 

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

 

23,633,007

 

 

 

 

1.27

%

 

 

23,053,178

 

 

 

 

0.72

%

 

 

22,513,998

 

 

 

 

0.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

2,613,316

 

 

 

 

 

 

 

2,489,148

 

 

 

 

 

 

 

2,688,834

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

$

26,900,653

 

 

 

 

 

 

$

26,386,355

 

 

 

 

 

 

$

25,622,462

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

220,001

 

 

3.53

%

 

 

 

 

230,221

 

 

3.69

%

 

 

 

 

164,598

 

 

2.78

%

 

Tax equivalent adjustment

 

 

 

(4,414

)

 

 

 

 

 

 

(4,310

)

 

 

 

 

 

 

(3,288

)

 

 

 

Net Interest Income

 

 

$

215,587

 

 

 

 

 

 

$

225,911

 

 

 

 

 

 

$

161,310

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

2023

 

2022

 

2022

 

2022

 

2022

 

Loans, by type:

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,720,975

 

$

7,696,997

 

$

7,566,259

 

$

7,340,417

 

$

7,294,914

 

 

Commercial and industrial

 

4,565,923

 

 

4,372,935

 

 

4,250,573

 

 

4,155,436

 

 

4,213,014

 

 

Real estate - residential mortgage

 

4,790,868

 

 

4,643,784

 

 

4,485,649

 

 

4,052,666

 

 

3,887,428

 

 

Real estate - home equity

 

1,086,032

 

 

1,106,325

 

 

1,099,487

 

 

1,118,494

 

 

1,106,319

 

 

Real estate - construction

 

1,276,145

 

 

1,209,998

 

 

1,268,590

 

 

1,188,932

 

 

1,137,649

 

 

Consumer

 

721,248

 

 

679,108

 

 

604,634

 

 

485,095

 

 

471,129

 

 

Leases and other loans(1)

 

301,905

 

 

295,366

 

 

288,633

 

 

296,135

 

 

272,665

 

 

Total Net Loans

$

20,463,096

 

$

20,004,513

 

$

19,563,825

 

$

18,637,175

 

$

18,383,118

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

6,641,741

 

$

7,310,824

 

$

7,535,791

 

$

7,647,618

 

$

7,431,235

 

 

Interest-bearing demand

 

5,326,566

 

 

5,479,443

 

 

5,708,059

 

 

5,597,975

 

 

5,664,987

 

 

Savings

 

6,469,468

 

 

6,466,775

 

 

6,681,713

 

 

6,425,634

 

 

6,436,548

 

 

Total demand and savings

 

18,437,775

 

 

19,257,042

 

 

19,925,563

 

 

19,671,227

 

 

19,532,770

 

 

Brokered

 

439,670

 

 

215,729

 

 

247,105

 

 

244,200

 

 

250,350

 

 

Time

 

1,696,878

 

 

1,554,885

 

 

1,615,384

 

 

1,608,286

 

 

1,697,063

 

 

Total Deposits

$

20,574,323

 

$

21,027,656

 

$

21,788,052

 

$

21,523,713

 

$

21,480,183

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings, by type:

 

 

 

 

 

 

 

 

 

 

 

Federal funds purchased

$

505,142

 

$

261,737

 

$

96,965

 

$

2,857

 

$

 

 

Federal Home Loan Bank advances

 

1,261,589

 

 

564,692

 

 

206,152

 

 

 

 

 

 

Senior debt and subordinated debt

 

539,726

 

 

539,550

 

 

554,735

 

 

555,701

 

 

608,961

 

 

Other borrowings and other interest-bearing liabilities

 

752,227

 

 

659,543

 

 

501,496

 

 

445,261

 

 

424,854

 

 

Total Borrowings

$

3,058,684

 

$

2,025,522

 

$

1,359,348

 

$

1,003,819

 

$

1,033,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes equipment lease financing, overdraft and net origination fees and costs.

 

FULTON FINANCIAL CORPORATION

 

 

 

 

 

ASSET QUALITY INFORMATION (UNAUDITED)

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

Three months ended

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

2023

 

2022

 

2022

 

2022

 

2022

 

Allowance for credit losses related to net loans:

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$

269,366

 

 

$

266,838

 

 

$

248,564

 

 

$

243,705

 

 

$

249,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CECL Day 1 provision expense

 

 

 

 

 

 

 

7,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Initial purchased credit deteriorated loans

 

 

 

 

 

 

 

1,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off:

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

 

(13,362

)

 

 

(12,235

)

 

 

(86

)

 

 

 

 

 

(152

)

 

 

Commercial and industrial

 

(612

)

 

 

(179

)

 

 

(1,783

)

 

 

(201

)

 

 

(227

)

 

 

Real estate - residential mortgage

 

 

 

 

 

 

 

 

 

 

(66

)

 

 

 

 

 

Consumer and home equity

 

(2,206

)

 

 

(1,311

)

 

 

(1,172

)

 

 

(877

)

 

 

(1,052

)

 

 

Real estate - construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leases and other loans(1)

 

(723

)

 

 

(505

)

 

 

(683

)

 

 

(474

)

 

 

(469

)

 

 

Total loans charged off

 

(16,903

)

 

 

(14,230

)

 

 

(3,724

)

 

 

(1,618

)

 

 

(1,900

)

 

Recoveries of loans previously charged off:

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

 

786

 

 

 

183

 

 

 

29

 

 

 

3,536

 

 

 

112

 

 

 

Commercial and industrial

 

1,086

 

 

 

961

 

 

 

2,213

 

 

 

739

 

 

 

1,980

 

 

 

Real estate - residential mortgage

 

48

 

 

 

10

 

 

 

101

 

 

 

92

 

 

 

222

 

 

 

Consumer and home equity

 

661

 

 

 

683

 

 

 

682

 

 

 

762

 

 

 

454

 

 

 

Real estate - construction

 

202

 

 

 

530

 

 

 

 

 

 

12

 

 

 

32

 

 

 

Leases and other loans(1)

 

116

 

 

 

132

 

 

 

247

 

 

 

226

 

 

 

154

 

 

 

Recoveries of loans previously charged off

 

2,899

 

 

 

2,499

 

 

 

3,272

 

 

 

5,367

 

 

 

2,954

 

 

Net loans recovered (charged off)

 

(14,004

)

 

 

(11,731

)

 

 

(452

)

 

 

3,749

 

 

 

1,054

 

 

Provision for credit losses

 

23,333

 

 

 

14,259

 

 

 

9,637

 

 

 

1,110

 

 

 

(6,350

)

 

Balance at end of period

$

278,695

 

 

$

269,366

 

 

$

266,838

 

 

$

248,564

 

 

$

243,705

 

 

Net (recoveries) charge-offs to average loans

 

0.27

%

 

 

0.23

%

 

 

0.01

%

 

 

(0.08

) %

 

 

(0.02

) %

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses related to OBS Credit Exposures

 

 

 

 

 

 

 

Provision for credit losses

$

1,211

 

 

$

254

 

 

$

1,367

 

 

$

390

 

 

($

600

)

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING ASSETS:

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

$

134,303

 

 

$

144,443

 

 

$

178,204

 

 

$

162,530

 

 

$

136,799

 

 

 

Loans 90 days past due and accruing

 

30,336

 

 

 

27,463

 

 

 

14,559

 

 

 

11,016

 

 

 

24,182

 

 

 

Total non-performing loans

 

164,639

 

 

 

171,906

 

 

 

192,763

 

 

 

173,546

 

 

 

160,981

 

 

 

Other real estate owned

 

3,304

 

 

 

5,790

 

 

 

5,877

 

 

 

4,786

 

 

 

2,014

 

 

 

Total non-performing assets

$

167,943

 

 

$

177,696

 

 

$

198,640

 

 

$

178,332

 

 

$

162,995

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING LOANS, BY TYPE:

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

61,322

 

 

$

72,634

 

 

$

96,281

 

 

$

59,940

 

 

$

64,190

 

 

 

Commercial and industrial

 

33,555

 

 

 

28,288

 

 

 

29,831

 

 

 

44,713

 

 

 

30,193

 

 

 

Real estate - residential mortgage

 

46,576

 

 

 

46,509

 

 

 

41,597

 

 

 

42,922

 

 

 

39,308

 

 

 

Consumer and home equity

 

8,983

 

 

 

9,800

 

 

 

10,016

 

 

 

10,552

 

 

 

11,465

 

 

 

Real estate - construction

 

1,509

 

 

 

1,368

 

 

 

1,456

 

 

 

1,357

 

 

 

672

 

 

 

Leases and other loans(1)

 

12,694

 

 

 

13,307

 

 

 

13,582

 

 

 

14,062

 

 

 

15,153

 

 

 

Total non-performing loans

$

164,639

 

 

$

171,906

 

 

$

192,763

 

 

$

173,546

 

 

$

160,981

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes equipment lease financing, overdraft and net origination fees and costs.

 

 

 

 

 

 

 

 

 

 

 

 

 

FULTON FINANCIAL CORPORATION

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

(dollars in thousands, except per share data)

 

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

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

2023

 

2022

 

2022

 

2022

 

2022

Operating net income available to common shareholders

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

65,752

 

 

$

79,271

 

 

$

68,309

 

 

$

67,427

 

 

$

61,726

 

Plus: Core deposit intangible amortization

 

 

514

 

 

 

514

 

 

 

514

 

 

 

 

 

 

 

Plus: Merger-related expenses

 

 

 

 

 

1,894

 

 

 

7,006

 

 

 

1,027

 

 

 

401

 

Plus: CECL Day 1 Provision expense

 

 

 

 

 

 

 

 

7,954

 

 

 

 

 

 

 

Less: Tax impact of adjustments

 

 

(108

)

 

 

(506

)

 

 

(3,250

)

 

 

(216

)

 

 

(84

)

Operating net income available to common shareholders (numerator)

 

$

66,158

 

 

$

81,173

 

 

$

80,533

 

 

$

68,238

 

 

$

62,043

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (diluted) (denominator)

 

 

168,401

 

 

 

169,136

 

 

 

168,781

 

 

 

162,075

 

 

 

161,911

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.39

 

 

$

0.48

 

 

$

0.48

 

 

$

0.42

 

 

$

0.38

 

 

 

 

 

 

 

 

 

 

 

 

Common shareholders' equity (tangible), per share

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

$

2,618,998

 

 

$

2,579,757

 

 

$

2,471,159

 

 

$

2,471,093

 

 

$

2,569,535

 

Less: Preferred stock

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

Less: Goodwill and intangible assets

 

 

(563,502

)

 

 

(560,824

)

 

 

(561,495

)

 

 

(537,700

)

 

 

(537,877

)

Tangible common shareholders' equity (numerator)

 

$

1,862,618

 

 

$

1,826,055

 

 

$

1,716,786

 

 

$

1,740,515

 

 

$

1,838,780

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding, end of period (denominator)

 

 

165,396

 

 

 

167,599

 

 

 

167,399

 

 

 

161,057

 

 

 

160,669

 

 

 

 

 

 

 

 

 

 

 

 

Common shareholders' equity (tangible), per share

 

$

11.26

 

 

$

10.90

 

 

$

10.26

 

 

$

10.81

 

 

$

11.44

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

 

 

 

 

 

 

 

 

Net income

 

$

68,314

 

 

$

81,833

 

 

$

70,871

 

 

$

69,989

 

 

$

64,288

 

Plus: Core deposit intangible amortization

 

 

514

 

 

 

514

 

 

 

514

 

 

 

 

 

 

 

Plus: Merger-related expenses

 

 

 

 

 

1,894

 

 

 

7,006

 

 

 

1,027

 

 

 

401

 

Plus: CECL Day 1 Provision expense

 

 

 

 

 

 

 

 

7,954

 

 

 

 

 

 

 

Less: Tax impact of adjustments

 

 

(108

)

 

 

(506

)

 

 

(3,250

)

 

 

(216

)

 

 

(84

)

Operating net income (numerator)

 

$

68,720

 

 

$

83,735

 

 

$

83,095

 

 

$

70,800

 

 

$

64,605

 

 

 

 

 

 

 

 

 

 

 

 

Total average assets (denominator)

 

$

26,900,653

 

 

$

26,386,355

 

 

$

26,357,095

 

 

$

25,578,432

 

 

$

25,622,462

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

1.04

%

 

 

1.26

%

 

 

1.25

%

 

 

1.11

%

 

 

1.02

%

 

 

 

 

 

 

 

 

 

 

 

Return on average common shareholders' equity (tangible)

 

 

 

 

 

 

Net income available to common shareholders

 

$

65,752

 

 

$

79,271

 

 

$

68,309

 

 

$

67,427

 

 

$

61,726

 

Plus: Intangible amortization

 

 

674

 

 

 

688

 

 

 

690

 

 

 

177

 

 

 

176

 

Plus: Merger-related expenses

 

 

 

 

 

1,894

 

 

 

7,006

 

 

 

1,027

 

 

 

401

 

Plus: CECL Day 1 Provision expense

 

 

 

 

 

 

 

 

7,954

 

 

 

 

 

 

 

Less: Tax impact of adjustments

 

 

(142

)

 

 

(542

)

 

 

(3,287

)

 

 

(253

)

 

 

(122

)

Operating net income available to common shareholders (numerator)

 

$

66,284

 

 

$

81,311

 

 

$

80,672

 

 

$

68,378

 

 

$

62,181

 

 

 

 

 

 

 

 

 

 

 

 

Average shareholders' equity

 

$

2,613,316

 

 

$

2,489,148

 

 

$

2,604,057

 

 

$

2,531,346

 

 

$

2,688,834

 

Less: Average preferred stock

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

Less: Average goodwill and intangible assets

 

 

(561,744

)

 

 

(561,219

)

 

 

(562,285

)

 

 

(537,786

)

 

 

(537,976

)

Average tangible common shareholders' equity (denominator)

 

$

1,858,694

 

 

$

1,735,051

 

 

$

1,848,894

 

 

$

1,800,682

 

 

$

1,957,980

 

 

 

 

 

 

 

 

 

 

 

 

Return on average common shareholders' equity (tangible)

 

 

14.46

%

 

 

18.59

%

 

 

17.31

%

 

 

15.23

%

 

 

12.88

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

2023

 

2022

 

2022

 

2022

 

2022

Tangible common equity to tangible assets (TCE Ratio)

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

$

2,618,998

 

 

$

2,579,757

 

 

$

2,471,159

 

 

$

2,471,093

 

 

$

2,569,535

 

Less: Preferred stock

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

Less: Goodwill and intangible assets

 

 

(563,502

)

 

 

(560,824

)

 

 

(561,495

)

 

 

(537,700

)

 

 

(537,877

)

Tangible common shareholders' equity (numerator)

 

$

1,862,618

 

 

$

1,826,055

 

 

$

1,716,786

 

 

$

1,740,515

 

 

$

1,838,780

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

27,112,176

 

 

$

26,931,702

 

 

$

26,146,042

 

 

$

25,252,686

 

 

$

25,598,310

 

Less: Goodwill and intangible assets

 

 

(563,502

)

 

 

(560,824

)

 

 

(561,495

)

 

 

(537,700

)

 

 

(537,877

)

Total tangible assets (denominator)

 

$

26,548,674

 

 

$

26,370,878

 

 

$

25,584,547

 

 

$

24,714,986

 

 

$

25,060,433

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

 

7.02

%

 

 

6.92

%

 

 

6.71

%

 

 

7.04

%

 

 

7.34

%

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets (TCE Ratio) excluding AOCI

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

$

2,618,998

 

 

$

2,579,757

 

 

$

2,471,159

 

 

$

2,471,093

 

 

$

2,569,535

 

Less: Preferred stock

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

Less: Accumulated other comprehensive (income) loss

 

 

350,992

 

 

 

385,476

 

 

 

442,947

 

 

 

304,210

 

 

 

158,855

 

Less: Goodwill and intangible assets

 

 

(563,502

)

 

 

(560,824

)

 

 

(561,495

)

 

 

(537,700

)

 

 

(537,877

)

Tangible common shareholders' equity (numerator)

 

$

2,213,610

 

 

$

2,211,531

 

 

$

2,159,733

 

 

$

2,044,725

 

 

$

1,997,635

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

27,112,176

 

 

$

26,931,702

 

 

$

26,146,042

 

 

$

25,252,686

 

 

$

25,598,310

 

Less: Goodwill and intangible assets

 

 

(563,502

)

 

 

(560,824

)

 

 

(561,495

)

 

 

(537,700

)

 

 

(537,877

)

Plus: AOCI - unrealized losses/(gains) on AFS investments securities

 

 

282,092

 

 

 

632,456

 

 

 

368,196

 

 

 

249,424

 

 

 

112,965

 

Total tangible assets (denominator)

 

$

26,830,766

 

 

$

27,003,334

 

 

$

25,952,743

 

 

$

24,964,410

 

 

$

25,173,398

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets, excluding AOCI

 

 

8.25

%

 

 

8.19

%

 

 

8.32

%

 

 

8.19

%

 

 

7.94

%

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

$

159,616

 

 

$

168,462

 

 

$

169,558

 

 

$

149,730

 

 

$

145,978

 

Less: Amortization of tax credit investments

 

 

 

 

 

(696

)

 

 

(696

)

 

 

(696

)

 

 

(696

)

Less: Merger-related expenses

 

 

 

 

 

(1,894

)

 

 

(7,006

)

 

 

(1,027

)

 

 

(401

)

Less: Intangible amortization

 

 

(674

)

 

 

(688

)

 

 

(690

)

 

 

(177

)

 

 

(176

)

Non-interest expense (numerator)

 

$

158,942

 

 

$

165,184

 

 

$

161,166

 

 

$

147,830

 

 

$

144,705

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

215,587

 

 

$

225,911

 

 

$

215,582

 

 

$

178,831

 

 

$

161,310

 

Tax equivalent adjustment

 

 

4,414

 

 

 

4,310

 

 

 

3,970

 

 

 

3,427

 

 

 

3,288

 

Plus: Total non-interest income

 

 

51,753

 

 

 

54,321

 

 

 

59,162

 

 

 

58,391

 

 

 

55,256

 

Less: Investment securities (gains) losses, net

 

 

(23

)

 

 

1

 

 

 

53

 

 

 

(8

)

 

 

(19

)

Total revenue (denominator)

 

$

271,731

 

 

$

284,543

 

 

$

278,767

 

 

$

240,641

 

 

$

219,835

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

58.5

%

 

 

58.1

%

 

 

57.8

%

 

 

61.4

%

 

 

65.8

%

 

 

 

 

 

 

 

 

 

 

 

Operating non-interest expenses to total average assets

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

$

159,616

 

 

$

168,462

 

 

$

169,558

 

 

$

149,730

 

 

$

145,978

 

Less: Amortization of tax credit investments

 

 

 

 

 

(696

)

 

 

(696

)

 

 

(696

)

 

 

(696

)

Less: Intangible amortization

 

 

(674

)

 

 

(688

)

 

 

(690

)

 

 

(177

)

 

 

(176

)

Less: Merger-related expenses

 

 

 

 

 

(1,894

)

 

 

(7,006

)

 

 

(1,027

)

 

 

(401

)

Non-interest expense (numerator)

 

$

158,942

 

 

$

165,184

 

 

$

161,166

 

 

$

147,830

 

 

$

144,705

 

 

 

 

 

 

 

 

 

 

 

 

Total average assets (denominator)

 

$

26,900,653

 

 

$

26,386,355

 

 

$

26,357,095

 

 

$

25,578,432

 

 

$

25,622,462

 

 

 

 

 

 

 

 

 

 

 

 

Operating non-interest expenses to total average assets

 

 

2.40

%

 

 

2.48

%

 

 

2.43

%

 

 

2.32

%

 

 

2.29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

2023

 

2022

 

2022

 

2022

 

2022

 

 

 

 

 

 

 

 

 

 

 

Pre-provision net revenue

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

215,587

 

 

$

225,911

 

 

$

215,582

 

 

$

178,831

 

 

$

161,310

 

Non-interest income

 

 

51,753

 

 

 

54,321

 

 

 

59,162

 

 

 

58,391

 

 

 

55,256

 

Less: Investment securities (gains) losses, net

 

 

(23

)

 

 

1

 

 

 

53

 

 

 

(8

)

 

 

(19

)

Total revenue

 

$

267,317

 

 

$

280,233

 

 

$

274,797

 

 

$

237,214

 

 

$

216,547

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

$

159,616

 

 

$

168,462

 

 

$

169,558

 

 

$

149,730

 

 

$

145,978

 

Less: Amortization on tax credit investments

 

 

 

 

 

(696

)

 

 

(696

)

 

 

(696

)

 

 

(696

)

Less: Merger-related expenses

 

 

 

 

 

(1,894

)

 

 

(7,006

)

 

 

(1,027

)

 

 

(401

)

Less: Intangible amortization

 

 

(674

)

 

 

(688

)

 

 

(690

)

 

 

(177

)

 

 

(176

)

Total non-interest expense

 

$

158,942

 

 

$

165,184

 

 

$

161,166

 

 

$

147,830

 

 

$

144,705

 

 

 

 

 

 

 

 

 

 

 

 

Pre-provision net revenue

 

$

108,375

 

 

$

115,049

 

 

$

113,631

 

 

$

89,384

 

 

$

71,842

 

 

 

 

 

 

 

 

 

 

 

 

Note: numbers may not sum due to rounding.

 

Contacts

Media Contact: Lacey Dean (717) 735-8688

Investor Contact: Matt Jozwiak (717) 327-2657

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