- Diluted earnings per share for the
first quarter of 2017 were 25 cents, a 4.2 percent increase from
the fourth quarter of 2016 and a 13.6 percent increase from the
first quarter of 2016. Pre-provision net revenue of $60.9 million
was 9.0% higher than the fourth quarter of 2016 and 19.8% higher
than the first quarter of 2016.
- Net interest income for the first
quarter of 2017 increased $5.3 million, or 4.0 percent, compared to
the fourth quarter of 2016 and $8.5 million, or 6.6 percent,
compared to first quarter of 2016.
- Net interest margin increased eleven
basis points, to 3.26 percent, compared to the fourth quarter of
2016, and increased three basis points compared to the first
quarter of 2016.
- Loans at March 31, 2017 increased
$263.9 million, or 1.8 percent, compared to December 31, 2016 and
$1.1 billion, or 7.9 percent, compared to March 31, 2016. Average
loans for the first quarter of 2017 increased 2.6 percent and 7.2
percent, compared to the fourth quarter of 2016 and the first
quarter of 2016, respectively.
- Deposits at March 31, 2017 increased
$77.5 million, or 0.5 percent, compared to December 31, 2016 and
$686.1 million, or 4.8 percent compared to March 31, 2016. Average
deposits for the first quarter of 2017 decreased 1.0 percent
compared to the fourth quarter of 2016, and increased 4.8 percent,
compared to the first quarter of 2016.
- The provision for credit losses in the
first quarter of 2017 was $4.8 million, compared to a $5.0 million
provision in the fourth quarter of 2016, and a $1.5 million
provision in the first quarter of 2016.
- Non-interest income, excluding
investment securities gains, decreased $5.7 million, or 11.1
percent, in comparison to the fourth quarter of 2016, and increased
$3.4 million, or 8.0 percent, in comparison to the first quarter of
2016.
- Non-interest expense decreased $5.3
million, or 4.2 percent, compared to the fourth quarter of 2016 and
increased $1.9 million, or 1.5 percent, compared to the first
quarter of 2016.
Fulton Financial Corporation (NASDAQ:FULT) reported net income
of $43.4 million, or 25 cents per diluted share, for the first
quarter of 2017.
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"We had a very good first quarter, building off the momentum we
saw in our business in 2016,” said E. Philip Wenger, Chairman,
President and CEO. “With increased customer confidence and business
activity, we remain optimistic about our growth prospects for
2017."
Net Interest Income and
Margin
Net interest income for the first quarter of 2017 increased $5.3
million, or 4.0 percent, from the fourth quarter of 2016. Net
interest margin increased eleven basis points, or 3.5 percent, to
3.26 percent in the first quarter of 2017, from 3.15 percent in the
fourth quarter of 2016. The average yield on interest-earning
assets increased twelve basis points, while the average cost of
interest-bearing liabilities remained unchanged, during the first
quarter of 2017 in comparison to the fourth quarter of 2016.
Average Balance Sheet
Total average assets for the first quarter of 2017 were $19.1
billion, an increase of $300.3 million from the fourth quarter of
2016. Average loans, net of unearned income, increased $381.7
million, or 2.6 percent, in comparison to the fourth quarter of
2016. Average loans and yields, by type, for the first quarter of
2017 in comparison to the fourth quarter of 2016, are summarized in
the following table:
Three Months Ended Increase (decrease)
March 31, 2017 December 31, 2016 in
Balance Balance Yield (1) Balance
Yield (1) $ % (dollars in
thousands) Average Loans, net of unearned income, by type: Real
estate - commercial mortgage $ 6,039,140 3.98 % $ 5,828,313 3.90 %
$ 210,827 3.6 % Commercial - industrial, financial and agricultural
4,205,070 3.89 % 4,081,498 3.74 % 123,572 3.0 % Real estate -
residential mortgage 1,637,669 3.76 % 1,572,895 3.75 % 64,774 4.1 %
Real estate - home equity
1,613,249
4.18
%
1,633,668
4.05
%
(20,419
)
(1.2
%)
Real estate - construction 840,968 3.97 % 845,528 3.78 % (4,560 )
(0.5 %) Consumer 284,352 5.26 % 289,864 5.25 % (5,512 ) (1.9 %)
Leasing and other 237,114 5.08 % 224,050 5.41 %
13,064 5.8 %
Total Average Loans, net of
unearned income $ 14,857,562 4.00 % $ 14,475,816 3.90 % $
381,746 2.6 %
(1) Presented on a fully-taxable equivalent basis using a
35% Federal tax rate and statutory interest expense disallowances.
Total average liabilities increased $292.4 million, or 1.8
percent, from the fourth quarter of 2016, while average deposits
decreased $153.3 million, or 1.0 percent. Average deposits and
interest rates, by type, for the first quarter of 2017 in
comparison to the fourth quarter of 2016, are summarized in the
following table:
Three Months Ended Increase (decrease)
March 31, 2017 December 31, 2016 in
Balance Balance Rate Balance
Rate $ % (dollars in thousands) Average
Deposits, by type: Noninterest-bearing demand $ 4,301,727 - % $
4,331,894 - % $ (30,167 ) (0.7 %) Interest-bearing demand 3,650,931
0.25 % 3,714,391 0.21 % (63,460 ) (1.7 %) Savings deposits
4,194,216 0.21 % 4,216,090 0.21 % (21,874 ) (0.5 %)
Total average demand and savings 12,146,874 0.15 % 12,262,375 0.14
% (115,501 ) (0.9 %) Time deposits 2,739,453 1.09 %
2,777,203 1.09 % (37,750 ) (1.4 %)
Total Average
Deposits $ 14,886,327 0.32 % $ 15,039,578 0.31 % $ (153,251 )
(1.0 %)
Asset Quality
Non-performing assets were $143.4 million, or 0.75 percent of
total assets, at March 31, 2017, compared to $144.5 million, or
0.76 percent of total assets, at December 31, 2016 and $148.1
million, or 0.82 percent of total assets, at March 31, 2016.
Annualized net charge-offs for the quarter ended March 31, 2017
were 0.09 percent of total average loans, compared to annualized
net recoveries of 0.03 percent for the quarter ended December 31,
2016, and net charge-offs of 0.20 percent for the quarter ended
March 31, 2016. The allowance for credit losses as a percentage of
non-performing loans was 131.3 percent at March 31, 2017, as
compared to 130.2 percent at December 31, 2016 and 121.1 percent at
March 31, 2016.
During the first quarter of 2017, the Corporation recorded a
$4.8 million provision for credit losses, compared to a $5.0
million provision for credit losses in the fourth quarter of 2016
and a $1.5 million provision in the first quarter of 2016.
Non-interest Income
Non-interest income, excluding investment securities gains,
decreased $5.7 million, or 11.1 percent, in comparison to the
fourth quarter of 2016. Other service charges and fees decreased
$896,000, or 6.7 percent, due to decreases in debit card income and
merchant fees. Service charges on deposits decreased $414,000, or
3.2 percent, due to a decrease in overdraft fee income. Mortgage
banking income decreased $2.4 million, or 34.0 percent, due
primarily to lower servicing income. The driver of this decrease
was the $1.7 million adjustment recorded to reduce the valuation
allowance for mortgage servicing rights (MSR) in the prior quarter.
Other decreases in non-interest income were driven by decreases in
gains from the sale of Small Business Administration loans.
Compared to the first quarter of 2016, non-interest income,
excluding investment securities gains, increased $3.4 million, or
8.0 percent, due to increases in commercial loan interest rate swap
fees, mortgage banking income, and investment management and trust
services income.
Gains on sales of investment securities decreased $419,000 in
comparison to the fourth quarter of 2016, and increased $159,000
from the first quarter of 2016.
Non-interest Expense
Non-interest expense decreased $5.3 million, or 4.2 percent, in
the first quarter of 2017, compared to the fourth quarter of 2016.
Salaries and employee benefits decreased $4.0 million, or 5.5
percent, due primarily to decreases in incentive compensation and
two fewer payroll days in the quarter. Other decreases occurred in
outside services and losses on the disposal of fixed assets.
Compared to the first quarter of 2016, non-interest expense
increased $1.9 million, or 1.5 percent, primarily due to increases
in state taxes and amortization of community development
investments.
Additional information on Fulton Financial Corporation is
available on the Internet at www.fult.com.
Safe Harbor Statement
This news release may contain forward-looking statements with
respect to the Corporation’s financial condition, results of
operations and business. Do not unduly rely on forward-looking
statements. Forward-looking statements can be identified by the use
of words such as "may," "should," "will," "could," "estimates,"
"predicts," "potential," "continue," "anticipates," "believes,"
"plans," "expects," "future," "intends" and similar expressions
which are intended to identify forward-looking statements. These
forward-looking statements are not guarantees of future performance
and are subject to risks and uncertainties, some of which are
beyond the Corporation's control and ability to predict, that could
cause actual results to differ materially from those expressed in
the forward-looking statements.
A discussion of certain risks and uncertainties affecting the
Corporation, and some of the factors that could cause the
Corporation's actual results to differ materially from those
described in the forward-looking statements, can be found in the
sections entitled "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the
Corporation’s Annual Report on Form 10-K for the year ended
December 31, 2016, which has been filed with the Securities and
Exchange Commission and is available in the Investor Relations
section of the Corporation's website (www.fult.com) and on the
Securities and Exchange Commission's website (www.sec.gov). The
Corporation undertakes no obligation, other than as required by
law, to update or revise any forward-looking statements, whether as
a result of new information, future events or otherwise.
Non-GAAP Financial
Measures
The Corporation uses certain non-GAAP financial measures in this
earnings release. These non-GAAP financial measures are reconciled
to the most comparable GAAP measures in tables at the end of this
release.
FULTON FINANCIAL CORPORATION CONDENSED
CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) dollars in
thousands %
Change from March 312017 December
312016 September 302016
June 302016 March 312016
December 312016 March 312016
ASSETS
Cash and due from banks $ 93,844 $ 118,763 $ 86,497 $ 84,647
$ 83,479 -21.0 % 12.4 % Other interest-earning assets 350,387
291,252 428,966 408,086 408,060 20.3 % -14.1 % Loans held for sale
24,783 28,697 27,836 34,330 19,719 -13.6 % 25.7 % Investment
securities 2,506,017 2,559,227 2,508,068 2,529,724 2,516,205 -2.1 %
-0.4 % Loans, net of unearned income 14,963,177 14,699,272
14,391,238 14,155,159 13,870,701 1.8 % 7.9 % Allowance for loan
losses (170,076 ) (168,679 )
(162,526 ) (162,546 ) (163,841 ) 0.8 %
3.8 % Net loans 14,793,101 14,530,593 14,228,712 13,992,613
13,706,860 1.8 % 7.9 % Premises and equipment 216,171 217,806
228,009 228,861 228,057 -0.8 % -5.2 % Accrued interest receivable
46,355 46,294 43,600 43,316 44,379 0.1 % 4.5 % Goodwill and
intangible assets 531,556 531,556 531,556 531,556 531,556 0.0 % 0.0
% Other assets 616,362 620,059
617,818 626,902
583,939 -0.6 % 5.6 %
Total Assets $
19,178,576 $ 18,944,247 $ 18,701,062
$ 18,480,035 $ 18,122,254 1.2 %
5.8 %
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits $ 15,090,344 $ 15,012,864 $ 14,952,479 $ 14,292,564
$ 14,404,280 0.5 % 4.8 % Short-term borrowings 453,317 541,317
264,042 722,214 352,883 -16.3 % 28.5 % Other liabilities 342,323
339,548 389,819 392,708 326,128 0.8 % 5.0 % FHLB advances and
long-term debt 1,137,909 929,403
965,286 965,552
965,654 22.4 % 17.8 %
Total Liabilities
17,023,893 16,823,132 16,571,626 16,373,038 16,048,945 1.2 % 6.1 %
Shareholders' equity 2,154,683
2,121,115 2,129,436
2,106,997 2,073,309 1.6 % 3.9 %
Total Liabilities and Shareholders' Equity $ 19,178,576
$ 18,944,247 $ 18,701,062
$ 18,480,035 $ 18,122,254 1.2 % 5.8 %
LOANS, DEPOSITS
AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type: Real estate - commercial mortgage $
6,118,533 $ 6,018,582 $ 5,818,915 $ 5,635,347 $ 5,558,108 1.7 %
10.1 % Commercial - industrial, financial and agricultural
4,167,809 4,087,486 4,024,119 4,099,177 4,035,333 2.0 % 3.3 % Real
estate - residential mortgage 1,665,142 1,601,994 1,542,696
1,447,292 1,377,459 3.9 % 20.9 % Real estate - home equity
1,595,901 1,625,115 1,640,421 1,647,319 1,659,481 -1.8 % -3.8 %
Real estate - construction 882,983 843,649 861,634 853,699 810,872
4.7 % 8.9 % Consumer 288,826 291,470 283,673 278,071 263,221 -0.9 %
9.7 % Leasing and other 243,983 230,976
219,780 194,254
166,227 5.6 % 46.8 %
Total Loans,
net of unearned income $ 14,963,177 $ 14,699,272
$ 14,391,238 $ 14,155,159
$ 13,870,701 1.8 % 7.9 % Deposits, by type:
Noninterest-bearing demand $ 4,417,733 $ 4,376,137 $ 4,210,099 $
4,125,375 $ 4,134,861 1.0 % 6.8 % Interest-bearing demand 3,702,663
3,703,712 3,703,048 3,358,536 3,430,206 0.0 % 7.9 % Savings and
money market accounts 4,251,574 4,179,773 4,235,015 3,986,008
3,972,199 1.7 % 7.0 % Time deposits 2,718,374
2,753,242 2,804,317
2,822,645 2,867,014 -1.3 % -5.2
%
Total Deposits $ 15,090,344 $
15,012,864 $ 14,952,479 $ 14,292,564
$ 14,404,280 0.5 % 4.8 % Short-term
borrowings, by type: Customer repurchase agreements $ 181,170 $
195,734 $ 189,727 $ 168,521 $ 162,431 -7.4 % 11.5 % Customer
short-term promissory notes 87,726 67,013 65,871 69,509 76,807 30.9
% 14.2 % Short-term FHLB advances 130,000 - - 35,000 81,000 N/M
60.5 % Federal funds purchased 54,421
278,570 8,444 449,184
32,645 -80.5 % 66.7 %
Total
Short-term Borrowings $ 453,317 $ 541,317
$ 264,042 $ 722,214 $ 352,883
-16.3 % 28.5 % N/M - Not meaningful
FULTON
FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (UNAUDITED) in thousands, except per-share data and
percentages
Three Months Ended % Change from Mar
312017 Dec 312016 Sep
302016 Jun 302016 Mar
312016 Dec 312016 Mar
312016 Interest Income: Interest income $ 158,487
$ 153,012 $ 151,468 $ 149,309 $ 149,311 3.6 % 6.1 % Interest
expense 20,908 20,775 20,903
20,393 20,257 0.6 % 3.2 %
Net Interest Income 137,579 132,237 130,565 128,916 129,054
4.0 % 6.6 % Provision for credit losses 4,800
5,000 4,141 2,511 1,530
(4.0 %) 213.7 %
Net Interest Income after
Provision 132,779 127,237 126,424 126,405 127,524 4.4 % 4.1 %
Non-Interest Income: Other service charges and fees 12,437
13,333 14,407 12,983 10,750 (6.7 %) 15.7 % Service charges on
deposit accounts 12,400 12,814 13,078 12,896 12,558 (3.2 %) (1.3 %)
Investment management and trust services 11,808 11,610 11,425
11,247 10,988 1.7 % 7.5 % Mortgage banking income 4,596 6,959 4,529
3,897 4,030 (34.0 %) 14.0 % Other 4,326 6,514
4,708 5,038 3,864
(33.6 %) 12.0 %
Non-Interest Income before Investment Securities
Gains 45,567 51,230 48,147 46,061 42,190 (11.1 %) 8.0 %
Investment securities gains 1,106 1,525
2 76 947 (27.5 %) 16.8 %
Total Non-Interest Income 46,673 52,755 48,149 46,137
43,137 (11.5 %) 8.2 % Non-Interest Expense:
Salaries and employee benefits 69,236 73,256 70,696 70,029 69,372
(5.5 %) (0.2 %) Net occupancy expense 12,663 11,798 11,782 11,811
12,220 7.3 % 3.6 % Other outside services 5,546 6,536 5,783 5,508
6,056 (15.1 %) (8.4 %) Software 4,693 4,912 4,117 3,953 3,921 (4.5
%) 19.7 % Data processing 4,286 4,530 4,610 5,476 5,400 (5.4 %)
(20.6 %) Equipment expense 3,359 3,408 3,137 2,872 3,371 (1.4 %)
(0.4 %) Professional fees 2,737 2,783 2,535 3,353 2,333 (1.7 %)
17.3 % FDIC insurance expense 2,058 2,067 1,791 2,960 2,949 (0.4 %)
(30.2 %) Marketing 1,986 1,730 1,774 1,916 1,624 14.8 % 22.3 %
Other 15,711 16,601 13,623
13,759 13,167 (5.4 %) 19.3 %
Total Non-Interest Expense 122,275
127,621 119,848 121,637
120,413 (4.2 %) 1.5 %
Income before Income
Taxes 57,177 52,371 54,725 50,905 50,248 9.2 % 13.8 % Income
tax expense 13,797 10,221 13,257
11,155 11,991 35.0 % 15.1 %
Net Income $ 43,380 $ 42,150 $ 41,468
$ 39,750 $ 38,257 2.9 % 13.4 %
PER
SHARE:
Net income: Basic $ 0.25 $ 0.24 $ 0.24 $ 0.23 $ 0.22 4.2 %
13.6 % Diluted 0.25 0.24 0.24 0.23 0.22 4.2 % 13.6 % Cash
dividends $ 0.11 $ 0.12 $ 0.10 $ 0.10 $ 0.09 (8.3 %) 22.2 %
Shareholders' equity 12.36 12.19 12.30 12.17 11.96 1.4 % 3.3 %
Shareholders' equity (tangible) 9.31 9.13 9.23 9.10 8.89 2.0 % 4.7
% Weighted average shares (basic) 174,150 173,554 173,020
173,394 173,331 0.3 % 0.5 % Weighted average shares (diluted)
175,577 174,874 174,064 174,318 174,416 0.4 % 0.7 % Shares
outstanding, end of period 174,343 174,040 173,144 173,139 173,393
0.2 % 0.5 %
SELECTED
FINANCIAL RATIOS:
Return on average assets 0.92 % 0.89 % 0.89 % 0.88 % 0.86 %
Return on average shareholders' equity 8.22 % 7.86 % 7.78 % 7.65 %
7.47 % Return on average shareholders' equity (tangible) 10.93 %
10.47 % 10.38 % 10.26 % 10.07 % Net interest margin 3.26 % 3.15 %
3.14 % 3.20 % 3.23 % Efficiency ratio 64.76 %
67.60 % 65.16 % 67.59 %
68.33 % N/M - Not
meaningful
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS
(UNAUDITED) dollars in thousands Three
Months Ended March 31, 2017 December 31,
2016 March 31, 2016 AverageBalance
Interest (1) Yield/Rate
AverageBalance Interest (1)
Yield/Rate AverageBalance
Interest (1) Yield/Rate
ASSETS
Interest-earning assets: Loans, net of unearned income $
14,857,562 $ 146,650 4.00 % $ 14,475,816 $ 141,826 3.90 % $
13,853,420 $ 137,895 4.00 % Taxable investment securities 2,145,656
11,914 2.19 % 2,096,086 10,941 2.07 % 2,180,593 12,003 2.20 %
Tax-exempt investment securities 403,856 4,383 4.34 % 389,047 4,234
4.35 % 259,396 3,138 4.84 % Equity securities 11,740
176 6.08 % 13,068 181
5.52 % 14,386 218 6.10 %
Total Investment Securities 2,561,252 16,473 2.57 %
2,498,201 15,356 2.45 % 2,454,375 15,359 2.50 % Loans held
for sale 15,857 187 4.72 % 24,411 199 3.26 % 12,252 131 4.28 %
Other interest-earning assets 312,295 842
1.08 % 411,369 966 0.94 %
358,562 898 1.00 %
Total
Interest-earning Assets 17,746,966 164,152 3.74 % 17,409,797
158,347 3.62 % 16,678,609 154,283 3.72 % Noninterest-earning
assets: Cash and due from banks 116,529 117,741 98,449 Premises and
equipment 217,875 226,482 226,284 Other assets 1,149,621 1,171,031
1,137,292 Less: allowance for loan losses (170,134 )
(164,523 ) (167,372 )
Total Assets $
19,060,857 $ 18,760,528 $ 17,973,262
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing liabilities: Demand deposits $ 3,650,931 $
2,239 0.25 % $ 3,714,391 $ 1,927 0.21 % $ 3,438,355 $ 1,494 0.17 %
Savings deposits 4,194,216 2,211 0.21 % 4,216,090 2,249 0.21 %
3,932,824 1,804 0.18 % Time deposits 2,739,453
7,352 1.09 % 2,777,203 7,593
1.09 % 2,867,651 7,429 1.04 %
Total Interest-bearing Deposits 10,584,600 11,802
0.45 % 10,707,684 11,769 0.44 % 10,238,830 10,727 0.42 %
Short-term borrowings 712,497 855 0.48 % 308,094 116 0.15 % 445,402
268 0.24 % FHLB advances and long-term debt 990,044
8,252 3.35 % 947,661
8,891 3.74 % 958,213 9,262 3.88
%
Total Interest-bearing Liabilities 12,287,141
20,909 0.69 % 11,963,439 20,776 0.69 % 11,642,445 20,257 0.70 %
Noninterest-bearing liabilities: Demand deposits 4,301,727
4,331,894 3,967,887 Other 331,442 332,540
304,131
Total Liabilities
16,920,310 16,627,873 15,914,463 Shareholders' equity
2,140,547 2,132,655 2,058,799
Total Liabilities and Shareholders' Equity $
19,060,857 $ 18,760,528 $ 17,973,262
Net interest income/net interest margin (fully taxable equivalent)
143,243 3.26 % 137,571 3.15 % 134,026 3.23 % Tax equivalent
adjustment (5,664 ) (5,334 ) (4,972 )
Net interest income $ 137,579 $ 132,237 $ 129,054
(1) Presented on a tax-equivalent basis using a 35%
Federal tax rate and statutory interest expense disallowances.
AVERAGE LOANS,
DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Three Months Ended % Change from
March 312017 December 312016
September 302016 June 302016 March
312016 December 312016 March
312016 Loans, by type: Real estate - commercial
mortgage $ 6,039,140 $ 5,828,313 $ 5,670,888 $ 5,557,680 $
5,487,421 3.6 % 10.1 % Commercial - industrial, financial and
agricultural 4,205,070 4,081,498 4,066,275 4,080,524 4,095,268 3.0
% 2.7 % Real estate - residential mortgage 1,637,669 1,572,895
1,503,209 1,399,851 1,381,409 4.1 % 18.6 % Real estate - home
equity 1,613,249 1,633,668 1,640,913 1,656,140 1,674,032 (1.2 %)
(3.6 %) Real estate - construction 840,968 845,528 837,920 820,881
792,014 (0.5 %) 6.2 % Consumer 284,352 289,864 281,517 272,293
263,295 (1.9 %) 8.0 % Leasing and other 237,114
224,050 211,528 178,655
159,981 5.8 % 48.2 %
Total Loans, net of
unearned income $ 14,857,562 $ 14,475,816 $
14,212,250 $ 13,966,024 $ 13,853,420 2.6 % 7.2
% Deposits, by type: Noninterest-bearing demand $ 4,301,727
$ 4,331,894 $ 4,227,639 $ 4,077,642 $ 3,967,887 (0.7 %) 8.4 %
Interest-bearing demand 3,650,931 3,714,391 3,602,448 3,454,031
3,438,355 (1.7 %) 6.2 % Savings and money market accounts 4,194,216
4,216,090 4,078,942 3,989,988 3,932,824 (0.5 %) 6.6 % Time deposits
2,739,453 2,777,203 2,814,258
2,844,434 2,867,651 (1.4 %) (4.5
%)
Total Deposits $ 14,886,327 $ 15,039,578
$ 14,723,287 $ 14,366,095 $ 14,206,717
(1.0 %) 4.8 % Short-term borrowings, by type: Customer
repurchase agreements $ 199,403 $ 200,126 $ 187,588 $ 180,595 $
171,408 (0.4 %) 16.3 % Customer short-term promissory notes 79,985
67,355 70,072 77,535 74,013 18.8 % 8.1 % Federal funds purchased
308,220 40,613 148,546 138,012 183,970 658.9 % 67.5 % Short-term
FHLB advances and other borrowings 124,889 -
20,163 7,527 16,011
N/M 680.0 %
Total Short-term Borrowings $
712,497 $ 308,094 $ 426,369 $ 403,669 $
445,402 131.3 % 60.0 % N/M - Not meaningful
FULTON FINANCIAL CORPORATION ASSET QUALITY
INFORMATION (UNAUDITED) dollars in thousands
Three Months Ended Mar 312017
Dec 312016 Sep 302016
Jun 302016 Mar 312016
ALLOWANCE FOR
CREDIT LOSSES:
Balance at beginning of period $ 171,325 $ 165,169 $
165,108 $ 166,065 $ 171,412 Loans charged off: Commercial -
industrial, financial and agricultural (5,527 ) (1,319 ) (3,144 )
(4,625 ) (6,188 ) Consumer and home equity (1,554 ) (2,156 ) (1,394
) (1,614 ) (2,548 ) Real estate - commercial mortgage (1,224 ) (174
) (1,350 ) (1,474 ) (582 ) Real estate - construction (247 ) 0 (150
) (742 ) (326 ) Real estate - residential mortgage (216 ) (116 )
(802 ) (340 ) (1,068 ) Leasing and other (639 ) (589
) (832 ) (1,951 ) (443 ) Total loans charged
off (9,407 ) (4,354 ) (7,672 ) (10,746 ) (11,155 ) Recoveries of
loans previously charged off: Commercial - industrial, financial
and agricultural 4,191 2,192 1,539 2,931 2,319 Consumer and home
equity 373 580 463 889 534 Real estate - commercial mortgage 450
885 296 1,367 825 Real estate - construction 548 1,080 898 1,563
383 Real estate - residential mortgage 230 288 228 420 136 Leasing
and other 137 485 168
108 81 Recoveries of loans previously
charged off 5,929 5,510 3,592
7,278 4,278 Net loans recovered
(charged off) (3,478 ) 1,156 (4,080 ) (3,468 ) (6,877 ) Provision
for credit losses 4,800 5,000 4,141 2,511 1,530
Balance at end of period $ 172,647
$ 171,325 $ 165,169 $ 165,108 $ 166,065
Net charge-offs (recoveries) to average loans
(annualized) 0.09 % (0.03 %) 0.11 %
0.10 % 0.20 %
NON-PERFORMING
ASSETS:
Non-accrual loans $ 117,264 $ 120,133 $ 124,017 $ 111,742 $
122,170 Loans 90 days past due and accruing 14,268
11,505 14,095 15,992
15,013 Total non-performing loans 131,532 131,638
138,112 127,734 137,183 Other real estate owned 11,906
12,815 11,981 11,918
10,946
Total non-performing
assets $ 143,438 $ 144,453 $ 150,093 $
139,652 $ 148,129
NON-PERFORMING
LOANS, BY TYPE:
Commercial - industrial, financial and agricultural $ 43,826
$ 43,460 $ 47,330 $ 38,902 $ 39,140 Real estate - commercial
mortgage 36,713 39,319 39,631 35,704 43,132 Real estate -
residential mortgage 23,597 23,655 23,451 25,030 25,182 Real estate
- construction 13,550 9,842 11,223 11,879 12,005 Consumer and home
equity 13,408 15,045 16,426 16,061 16,210 Leasing 438
317 51 158 1,514
Total non-performing loans $ 131,532 $
131,638 $ 138,112 $ 127,734 $ 137,183
TROUBLED DEBT
RESTRUCTURINGS (TDRs), BY TYPE:
Real-estate - residential mortgage $ 27,033 $ 27,617 $
26,854 $ 27,324 $ 27,565 Real-estate - commercial mortgage 15,237
15,957 16,085 17,808 17,427 Consumer and home equity 9,638 8,633
7,707 7,191 6,562 Commercial - industrial, financial and
agricultural 7,441 6,627 7,488 5,756 5,650 Real estate -
construction 273 726 843
3,086 3,092 Total accruing TDRs 59,622
59,560 58,977 61,165 60,296 Non-accrual TDRs (1) 27,220
27,850 27,904 24,887
27,277
Total TDRs $ 86,842 $
87,410 $ 86,881 $ 86,052 $ 87,573
(1) Included within non-accrual loans above.
Total
Delinquency %
DELINQUENCY
RATES, BY TYPE:
Mar 312017 Dec 312016 Sep
302016 Jun 302016 Mar 312016
Real estate - commercial mortgage 0.78 % 0.78 % 0.87
% 0.81 % 0.93 % Commercial - industrial, financial and agricultural
1.25 % 1.31 % 1.48 % 1.25 % 1.46 % Real estate - construction 1.99
% 1.29 % 1.61 % 1.93 % 2.00 % Real estate - residential mortgage
2.44 % 2.74 % 2.67 % 2.70 % 3.10 % Consumer, home equity, leasing
and other 1.22 % 1.45 % 1.53 % 1.47 % 1.48 %
Total 1.23 % 1.27 % 1.38
% 1.30 % 1.44 %
ASSET QUALITY
RATIOS:
Mar 312017 Dec 312016 Sep
302016 Jun 302016 Mar 312016
Non-accrual loans to total loans 0.78 % 0.82 % 0.86 % 0.79 %
0.88 % Non-performing loans to total loans 0.88 % 0.90 % 0.96 %
0.90 % 0.99 % Non-performing assets to total loans and OREO 0.96 %
0.98 % 1.04 % 0.99 % 1.07 % Non-performing assets to total assets
0.75 % 0.76 % 0.80 % 0.76 % 0.82 % Allowance for credit losses to
loans outstanding 1.15 % 1.17 % 1.15 % 1.17 % 1.20 % Allowance for
credit losses to non-performing loans 131.26 % 130.15 % 119.59 %
129.26 % 121.05 %
Non-performing assets to tangible common
shareholders' equity and allowance for credit losses
7.99 % 8.20 % 8.51 % 8.02 % 8.67 %
FULTON
FINANCIAL CORPORATION RECONCILIATION OF GAAP TO NON-GAAP
MEASURES (UNAUDITED) in thousands, except per share data and
percentages
Explanatory
note:
This press release contains supplemental financial information, as
detailed below, which has been derived by methods other than
Generally Accepted Accounting Principles ("GAAP"). The Corporation
has presented these non-GAAP financial measures because it believes
that these measures provide useful and comparative information to
assess trends in the Corporation's 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 March 312017 December
312016 September 302016
June 302016 March 312016
Shareholders'
equity (tangible), per share
Shareholders' equity $ 2,154,683 $ 2,121,115 $ 2,129,436 $
2,106,997 $ 2,073,309 Less: Goodwill and intangible assets
(531,556 ) (531,556 ) (531,556 ) (531,556 )
(531,556 ) Tangible shareholders' equity (numerator) $
1,623,127 $ 1,589,559 $ 1,597,880 $ 1,575,441
$ 1,541,753 Shares outstanding, end of period
(denominator) 174,343 174,040
173,144 173,139 173,393
Shareholders' equity (tangible), per share $ 9.31 $ 9.13
$ 9.23 $ 9.10 $ 8.89
Return on average
shareholders' equity (tangible)
Net Income - Numerator $ 43,380 $ 42,150
$ 41,468 $ 39,750 $ 38,257
Average shareholders' equity $ 2,140,547 $ 2,132,655 $ 2,120,596 $
2,089,915 $ 2,058,799 Less: Average goodwill and intangible assets
(531,556 ) (531,556 ) (531,556 )
(531,556 ) (531,556 ) Average tangible shareholders' equity
(denominator) $ 1,608,991 $ 1,601,099 $ 1,589,040
$ 1,558,359 $ 1,527,243 Return on
average shareholders' equity (tangible), annualized 10.93 %
10.47 % 10.38 % 10.26 % 10.07 %
Efficiency
ratio
Non-interest expense - Numerator
$ 122,275 $ 127,621 $ 119,848 $ 121,637
$ 120,413 Net interest income (fully taxable
equivalent) $ 143,243 $ 137,571 $ 135,784 $ 133,890 $ 134,026 Plus:
Total Non-interest income 46,673 52,755 48,149 46,137 43,137 Less:
Investment securities gains (1,106 ) (1,525 )
(2 ) (76 ) (947 ) Denominator $ 188,810 $
188,801 $ 183,931 $ 179,951 $ 176,216
Efficiency ratio 64.76 % 67.60 % 65.16
% 67.59 % 68.33 %
Non-performing
assets to tangible shareholders' equity and allowance for credit
losses
Non-performing assets (numerator) $ 143,438 $ 144,453
$ 150,093 $ 139,652 $ 148,129 Tangible
shareholders' equity $ 1,623,127 $ 1,589,559 $ 1,597,880 $
1,575,441 $ 1,541,753 Plus: Allowance for credit losses
172,647 171,325 165,169
165,108 166,065 Tangible shareholders' equity
and allowance for credit losses (denominator) $ 1,795,774 $
1,760,884 $ 1,763,049 $ 1,740,549 $ 1,707,818
Non-performing assets to tangible shareholders'
equity and allowance for credit losses 7.99 % 8.20 %
8.51 % 8.02 % 8.67 %
Pre-provision net
revenue
Net interest income $ 137,579 $ 132,237 $ 130,565 $ 128,916 $
129,054 Non-interest income 46,673 52,755 48,149 46,137 43,137
Less: Investment securities gains (1,106 ) (1,525 )
(2 ) (76 ) (947 ) Total revenue $ 183,146
$ 183,467 $ 178,712 $ 174,977 $ 171,244
Total Non-interest
expense $ 122,275 $ 127,621 $ 119,848 $
121,637 $ 120,413 Pre-provision net revenue $
60,871 $ 55,846 $ 58,864 $ 53,340 $
50,831
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170418006354/en/
Fulton Financial CorporationMedia Contact:Laura
J. Wakeley, 717-291-2616orInvestor
Contact:Jason Weber, 717-327-2394
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