2020 Key Accomplishments
- Successful implementation of COVID-19 safety response protocols
to protect customers and team members
- Rapid implementation of remote work program
- PPP/Main Street Lending programs in place to aid customers
- Residential mortgage business at historic highs
- Implementation of strategic operating expense reduction
initiatives
- Successful access to the capital markets with subordinated debt
and preferred stock offerings
Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the
“Corporation”) reported net income available to common shareholders
of $49 million, or $0.30 per diluted share, for the fourth quarter
of 2020 and $176 million, or $1.08 per diluted share, for the year
ended December 31, 2020.
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“We were pleased with our company’s achievements for the 4th
quarter and for the year as a whole, given the challenges presented
by the lingering presence of COVID-19,” said E. Philip Wenger,
Chairman and CEO of Fulton Financial Corporation. “The low interest
rate environment continued to put pressure on our margin, but even
in this challenging environment, we had stable asset quality, were
able to provide Paycheck Protection Program and Main Street loans
to our customers, helped our mortgage business grow to historic
highs, and saw wealth management business performance that was
beyond our expectations.”
Net Interest Income and Balance
Sheet
Net interest income for the fourth quarter of 2020 was $162
million, $7.5 million higher than the third quarter of 2020. Net
interest margin for the fourth quarter of 2020 increased 5 basis
points, to 2.75%, from 2.70% in the third quarter of 2020. The
increases in net interest income and net interest margin were
primarily due to the forgiveness of Paycheck Protection Program
("PPP") loans and the acceleration of the recognition of related
fee income as well as growth in average loans and investments
securities during the quarter. For the year ended December 31,
2020, net interest income was $629 million, a decrease of $19
million in comparison to the year ended December 31, 2019, as the
90 basis point decline in yields on average interest-earning assets
outpaced the 42 basis point decline in the cost of funds. The net
interest margin in 2020 was 2.86% compared 3.36% in 2019.
Total average assets for the fourth quarter of 2020 were $25.7
billion, an increase of $580 million from the third quarter of
2020. Average loans, net of unearned income, were $19.0 billion,
relatively unchanged compared to the third quarter of 2020.
Beginning in the second quarter of 2020, average loans included
loans originated under PPP. PPP loans had an average balance of
$1.8 billion for the fourth quarter of 2020, compared to $2.0
billion for the third quarter of 2020.
Average loans and yields, by type, for the fourth quarter of
2020 in comparison to the third quarter of 2020 are summarized in
the following table:
Three months ended
December 31, 2020
September 30, 2020
Growth
Balance
Yield (1)
Balance
Yield (1)
$
%
(dollars in thousands)
Average Loans, net of unearned income, by
type:
Real estate - commercial mortgage
$
7,101,363
3.21
%
$
6,986,528
3.27
%
$
114,835
1.6
%
Commercial and industrial(2)
5,855,305
2.57
%
5,983,872
2.53
%
(128,567)
(2.1)
%
Real estate - residential mortgage
3,087,529
3.65
%
2,975,516
3.73
%
112,013
3.8
%
Real estate - home equity
1,212,113
3.91
%
1,237,602
3.87
%
(25,489)
(2.1)
%
Real estate - construction
1,009,284
3.11
%
981,589
3.84
%
27,695
2.8
%
Consumer
468,678
4.07
%
464,851
4.07
%
3,827
0.8
%
Equipment lease financing
279,059
3.98
%
279,217
3.96
%
(158)
(0.1)
%
Other(3)
(18,817)
N/A
(28,656)
N/A
9,839
(34.3)
%
Total Average Loans, net of unearned
income
$
18,994,514
3.45
%
$
18,880,519
3.38
%
$
113,995
0.6
%
(1) Presented on a fully-taxable
equivalent basis using a 21% Federal tax rate and statutory
interest expense disallowances.
(2) Includes average PPP loans of $1.8
billion and $2.0 billion for the three months ended December 31,
2020 and September 30, 2020, respectively.
(3) Consists of overdrafts and net
origination fees and costs.
Total average assets for the year ended December 31, 2020 were
$24.3 billion, an increase of $3.1 billion from 2019. Average
loans, net of unearned income, were $18.3 billion, an increase of
$1.8 billion from 2019. Included in average loans are loans
originated under the PPP, which had an average balance of $1.3
billion for the year ended December 31, 2020. The remaining
increase was mainly in residential mortgage loans.
Total average liabilities increased $409 million from the third
quarter of 2020 driven by increases in demand and savings deposits.
Average deposits and interest rates, by type, for the fourth
quarter of 2020 in comparison to the third quarter of 2020 are
summarized in the following table:
Three months ended
December 31, 2020
September 30, 2020
Growth
Balance
Rate
Balance
Rate
$
%
(dollars in thousands)
Average Deposits, by type:
Noninterest-bearing demand
$
6,477,228
—
$
6,270,683
—
$
206,545
3.3
%
Interest-bearing demand
5,762,150
0.10
%
5,591,548
0.14
%
170,602
3.1
%
Savings
5,905,137
0.13
%
5,716,050
0.16
%
189,087
3.3
%
Total average demand and savings
18,144,515
0.07
%
17,578,281
0.10
%
566,234
3.2
%
Brokered
340,451
0.53
%
314,721
0.56
%
25,730
8.2
%
Time
2,306,556
1.39
%
2,495,445
1.58
%
(188,889)
(7.6)
%
Total Average Deposits
$
20,791,522
0.23
%
$
20,388,447
0.29
%
$
403,075
2.0
%
Total average liabilities for the year ended December 31, 2020
increased $3 billion from 2019 driven by increases in demand and
savings deposits.
Asset Quality
The provision for credit losses was $6 million, $7 million and
$21 million for the fourth quarter of 2020, third quarter of 2020
and fourth quarter of 2019, respectively. For the year ended
December 31, 2020, the provision for credit losses was $77 million
compared to $33 million in 2019. Effective January 1, 2020 Fulton
adopted ASU 2016-13, referred to as the current expected credit
loss model. As such, the provision for credit losses in 2020
reflects current expected credit losses based on forecasted
economic and other assumptions, including the estimated impacts of
COVID-19, over the remaining expected lives of financial assets and
off-balance-sheet credit exposures, whereas the 2019 methodology
applied an incurred loss model.
Non-performing assets were $151 million, or 0.58% of total
assets, at December 31, 2020, compared to $147 million, or 0.57% of
total assets, at September 30, 2020.
Annualized net recoveries for the quarter ended December 31,
2020 were 0.07% of total average loans, compared to annualized net
recoveries of 0.05% and annualized net charge-offs of 0.65% for the
quarters ended September 30, 2020 and December 31, 2019,
respectively. Net charge-offs for 2020 were 0.05% of total average
loans compared to 0.22% in 2019.
Non-interest Income
Non-interest income in the fourth quarter of 2020, excluding
investment securities gains, was $56 million, a decrease of $8
million, or 12%, from the third quarter of 2020, primarily driven
by decreases $7 million in mortgage banking income and $1 million
in capital markets revenue. The decrease in mortgage banking income
was mainly due to seasonal decreases in the volume of loans
sold.
Compared to the fourth quarter of 2019, non-interest income,
excluding investment securities gains, in the fourth quarter of
2020 was relatively unchanged as increases in mortgage banking and
wealth management income offset decreases in a number of other
categories.
For the year ended December 31, 2020, non-interest income,
excluding investment securities gains, was $226 million, an
increase of $15 million, or 7%, from 2019. The increase was driven
by a $19 million increase in mortgage banking income, with mortgage
sale gains increasing $36 million due to higher volumes and
spreads, partially offset by a $10.5 million of mortgage servicing
rights asset impairment charges for the year and higher mortgage
servicing rights asset amortization, due to higher refinance
activity. In addition, wealth management and capital markets
revenue each increased by $3 million. Partially offsetting these
increases were decreases of $5 million in overdraft fees in
consumer banking and $4 million in other service charges on
deposits in other commercial banking.
During both 2020 and 2019, Fulton completed balance sheet
restructurings involving sales of investment securities and
corresponding prepayments of FHLB advances. As a result of these
transactions, $3 million and $5 million of investment securities
gains were realized during 2020 and 2019, respectively, and
prepayment penalties of $3 million and $4 million were incurred
during 2020 and 2019, respectively.
Non-interest Expense
Non-interest expense was $155 million in the fourth quarter of
2020, an increase of $16 million, or 11%, compared to the third
quarter of 2020, with $15 million and $1 million attributable to
charges related to cost savings initiatives recognized in the
fourth quarter of 2020 and the third quarter of 2020, respectively.
Those charges in the fourth quarter of 2020 included $4.6 million
of employee severance for impacted employees (salaries and
benefits) and $4.8 million of write-offs of fixed assets and $5.8
million of lease termination charges (other expense) resulting from
21 financial center closures.
Compared to the fourth quarter of 2019, non-interest expense
increased $16 million, or 11%, due primarily to the previously
discussed charges associated with the cost savings initiatives.
The cost savings anticipated from the implementation of the cost
savings initiatives are not expected to be fully realized until
mid-2021. Of the anticipated $25 million in annual expense savings,
the Corporation expects to reinvest a portion of the savings to
accelerate digital transformation initiatives.
For the year end December 31, 2020, non-interest expense was
$579 million, an increase of $12 million, or 2%, from 2019. This
increase was primarily due to expenses related to the cost savings
initiatives, which totaled $16 million for the year, as well as
increases of $3 million in data processing and software and $1
million in FDIC insurance. These increases were partially offset by
decreases of $9 million in other outside services and $5 million in
marketing.
Income Tax Expense
The effective income tax rate (ETR) for the fourth quarter of
2020 was 10%, as compared to 13% for both the third quarter of 2020
and fourth quarter of 2019. For the year ended December 31, 2020,
the ETR was 12% compared 14% in 2019. The decreases resulted from
lower income before income taxes.
Shareholders' Equity
In the fourth quarter of 2020, the Corporation issued $200
million of Fixed Rate Non-Cumulative Perpetual Preferred Stock
("Preferred Stock") at a rate of 5.125%. The Corporation received
net proceeds from the offering of $192.9 million after issuance
costs. Dividends on the Preferred Stock were $2.1 million in the
fourth quarter, or approximately $0.01 per diluted share.
Additional information on Fulton 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," “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, they 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, 2019, Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2020, June 30, 2020 and September 30, 2020 and
other current and periodic reports, which have been or will be
filed with the Securities and Exchange Commission and are or will
be 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).
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
SUMMARY CONSOLIDATED FINANCIAL
INFORMATION (UNAUDITED)
in thousands, except per-share data and
percentages
Three months ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2020
2020
2020
2020
2019
Ending
Balances
Investments
$
3,340,424
$
3,097,721
$
2,974,813
$
3,141,440
$
2,867,378
Loans, net of unearned income
18,900,820
19,028,621
18,704,722
17,077,403
16,837,526
Total assets
25,906,733
25,543,281
24,617,863
22,929,859
21,886,040
Deposits
20,839,207
20,730,051
19,884,208
17,365,026
17,393,913
Shareholders' equity
2,616,828
2,390,261
2,340,501
2,285,748
2,342,176
Average
Balances
Investments
$
3,221,289
$
2,977,672
$
3,096,632
$
3,071,828
$
2,830,999
Loans, net of unearned income
18,994,514
18,880,519
18,331,797
16,860,067
16,768,057
Total assets
25,749,405
25,169,508
24,139,116
22,252,099
21,812,438
Deposits
20,791,522
20,388,447
19,276,658
17,121,428
17,449,565
Shareholders' equity
2,544,866
2,374,091
2,309,133
2,337,016
2,341,397
Income
Statement
Net interest income
$
161,591
$
154,116
$
152,754
$
160,746
$
159,270
Provision for credit losses
6,240
7,080
19,570
44,030
20,530
Non-interest income
55,574
63,248
55,922
54,644
55,281
Non-interest expense
154,737
139,147
143,006
142,552
138,974
Income before taxes
56,187
71,137
46,101
28,808
55,047
Net income available to common
shareholders
48,690
61,607
39,559
26,047
47,789
Per
Share
Net income available to common
shareholders (basic)
$
0.30
$
0.38
$
0.24
$
0.16
$
0.29
Net income available to common
shareholders (diluted)
$
0.30
$
0.38
$
0.24
$
0.16
$
0.29
Cash dividends
$
0.17
$
0.13
$
0.13
$
0.13
$
0.17
Common shareholders' equity
$
14.93
$
14.74
$
14.45
$
14.16
$
14.26
Common shareholders' equity
(tangible)(1)
$
11.62
$
11.44
$
11.15
$
10.84
$
11.00
Weighted average shares (basic)
162,242
162,061
161,715
163,475
164,135
Weighted average shares (diluted)
163,071
162,579
162,267
164,417
165,039
(1) Non-GAAP financial measure. Refer to
the calculation on the page titled “Reconciliation of Non-GAAP
Measures” at the end of this document.
Three months ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2020
2020
2020
2020
2019
Asset
Quality(2)
Net (recoveries) charge-offs to average
loans (annualized)
(0.07)
%
(0.05)
%
0.09
%
0.26
%
0.65
%
Non-performing loans to total loans
0.78
%
0.75
%
0.75
%
0.82
%
0.84
%
Non-performing assets to total assets
0.58
%
0.57
%
0.59
%
0.64
%
0.68
%
ACL - loans(3) to total loans
1.47
%
1.40
%
1.37
%
1.40
%
0.97
%
ACL - loans(3) to non-performing loans
189
%
188
%
183
%
170
%
116
%
Non-performing assets to common
shareholders' equity (tangible) and ACL - loans (1)(3)
6.42
%
6.91
%
7.04
%
7.37
%
7.51
%
Asset Quality,
excluding PPP(1)(4)
Net (recoveries) charge-offs to average
adjusted loans (annualized)
(0.08)
%
(0.06)
%
0.10
%
—
%
—
%
Non-performing loans to total adjusted
loans
0.85
%
0.83
%
0.83
%
—
%
—
%
ACL - loans(3) to total adjusted loans
1.60
%
1.56
%
1.53
%
—
%
—
%
Profitability
Return on average assets
0.79
%
0.97
%
0.66
%
0.47
%
0.87
%
Return on average shareholders' equity
7.95
%
10.32
%
6.89
%
4.48
%
8.10
%
Return on average common shareholders'
equity (tangible)(1)
10.32
%
13.50
%
8.99
%
5.84
%
10.52
%
Net interest margin
2.75
%
2.70
%
2.81
%
3.21
%
3.22
%
Efficiency ratio(1)
69.5
%
62.3
%
66.4
%
64.5
%
63.1
%
Efficiency ratio, net 2020 cost savings
initiatives(1)
62.5
%
62.0
%
66.4
%
64.5
%
63.1
%
Capital
Ratios
Tangible common equity ratio(1)
7.4
%
7.4
%
7.5
%
7.8
%
8.5
%
Tier 1 leverage ratio(5)
8.1
%
7.4
%
7.6
%
7.9
%
8.4
%
Common equity Tier 1 capital ratio(5)
9.4
%
9.5
%
9.5
%
9.4
%
9.7
%
Tier 1 capital ratio(5)
10.3
%
9.5
%
9.5
%
9.4
%
9.7
%
Total risk-based capital ratio(5)
14.5
%
13.9
%
13.8
%
13.8
%
11.8
%
(1) Non-GAAP financial measure. Refer to
the calculation on the page titled "Reconciliation of Non-GAAP
Measures" at the end of this document.
(2) Effective January 1, 2020, Fulton
adopted Accounting Standards Update 2016-13, "Financial
Instruments—Credit Losses (Topic 326): Measurement of Credit Losses
on Financial Instruments," referred to as the current expected
credit loss model ("CECL"). This accounting standard requires that
credit losses for financial assets and off-balance-sheet ("OBS")
credit exposures be measured based on expected credit losses,
rather than on incurred credit losses as in prior periods.
(3) "ACL - loans" relates to the allowance
for credit losses ("ACL") specifically on "Loans, net of unearned
income" and does not include the ACL related to OBS credit
exposures.
(4) Asset quality information excluding
Paycheck Protection Program ("PPP") loans. Refer to the calculation
on the page titled "Reconciliation of Non-GAAP Measures" at the end
of this document.
(5) Regulatory capital ratios as of
December 31, 2020 are preliminary and prior periods are actual.
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
2020
2020
2020
2020
2019
2020
2019
ASSETS
Cash and due from banks
$
120,462
$
139,304
$
141,702
$
181,777
$
132,283
(13.5)
%
(8.9)
%
Other interest-earning assets
1,819,499
1,489,550
1,007,939
793,572
482,930
22.2
%
N/M
Loans held for sale
83,886
93,621
77,415
40,645
37,828
(10.4)
%
N/M
Investment securities
3,340,424
3,097,721
2,974,813
3,141,440
2,867,378
7.8
%
16.5
%
Loans, net of unearned income
18,900,820
19,028,621
18,704,722
17,077,403
16,837,526
(0.7)
%
12.3
%
Less: ACL - loans(1)
(277,567)
(266,825)
(256,537)
(238,508)
(163,622)
4.0
%
69.6
%
Net loans
18,623,253
18,761,796
18,448,185
16,838,895
16,673,904
(0.7)
%
11.7
%
Premises and equipment
231,480
236,943
239,596
236,908
240,046
(2.3)
%
(3.6)
%
Accrued interest receivable
72,942
70,766
73,720
59,365
60,898
3.1
%
19.8
%
Goodwill and intangible assets
536,659
534,907
535,039
535,171
535,303
0.3
%
0.3
%
Other assets
1,078,128
1,118,673
1,119,454
1,102,086
855,470
(3.6)
%
26.0
%
Total Assets
$
25,906,733
$
25,543,281
$
24,617,863
$
22,929,859
$
21,886,040
1.4
%
18.4
%
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits
$
20,839,207
$
20,730,051
$
19,884,208
$
17,365,026
$
17,393,913
0.5
%
19.8
%
Short-term borrowings
630,066
611,727
572,551
1,386,808
883,241
3.0
%
(28.7)
%
Other liabilities
524,369
515,230
525,407
513,811
384,941
1.8
%
36.2
%
FHLB advances and long-term debt
1,296,263
1,296,012
1,295,196
1,378,466
881,769
—
%
47.0
%
Total Liabilities
23,289,905
23,153,020
22,277,362
20,644,111
19,543,864
0.6
%
19.2
%
Shareholders' equity
2,616,828
2,390,261
2,340,501
2,285,748
2,342,176
9.5
%
11.7
%
Total Liabilities and Shareholders'
Equity
$
25,906,733
$
25,543,281
$
24,617,863
$
22,929,859
$
21,886,040
1.4
%
18.4
%
LOANS, DEPOSITS AND SHORT-TERM
BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage
$
7,105,092
$
7,046,330
$
6,934,936
$
6,895,069
$
6,700,776
0.8
%
6.0
%
Commercial and industrial
4,088,561
4,007,278
4,033,439
4,450,557
4,445,634
2.0
%
(8.0)
%
Real estate - residential mortgage
3,141,915
3,061,835
2,862,226
2,718,290
2,641,465
2.6
%
18.9
%
Real estate - home equity
1,202,913
1,222,709
1,251,455
1,292,677
1,314,944
(1.6)
%
(8.5)
%
Real estate - construction
1,047,218
1,007,534
972,909
947,768
971,079
3.9
%
7.8
%
Consumer
466,772
469,551
465,610
468,172
463,164
(0.6)
%
0.8
%
Equipment lease financing
279,118
280,286
281,897
289,726
284,537
(0.4)
%
(1.9)
%
Other(2)
(12,481)
(27,067)
(34,784)
15,144
15,927
(53.9)
%
N/M
Loans, net of unearned income before
PPP
17,319,108
17,068,456
16,767,688
17,077,403
16,837,526
1.5
%
2.9
%
PPP
1,581,712
1,960,165
1,937,034
—
—
(19.3)
%
N/M
Total Loans, net of unearned
income
$
18,900,820
$
19,028,621
$
18,704,722
$
17,077,403
$
16,837,526
(0.7)
%
12.3
%
Deposits, by type:
Noninterest-bearing demand
$
6,531,002
$
6,378,077
$
6,239,055
$
4,531,872
$
4,453,324
2.4
%
46.7
%
Interest-bearing demand
5,818,564
5,813,935
5,099,405
4,724,520
4,720,188
0.1
%
23.3
%
Savings
5,929,792
5,805,431
5,667,893
5,092,865
5,153,941
2.1
%
15.1
%
Total demand and savings
18,279,358
17,997,443
17,006,353
14,349,257
14,327,453
1.6
%
27.6
%
Brokered
335,185
317,588
310,689
313,337
264,531
5.5
%
26.7
%
Time
2,224,664
2,415,020
2,567,166
2,702,432
2,801,929
(7.9)
%
(20.6)
%
Total Deposits
$
20,839,207
$
20,730,051
$
19,884,208
$
17,365,026
$
17,393,913
0.5
%
19.8
%
Short-term borrowings, by type:
Customer funding
$
630,066
$
611,727
$
572,551
$
461,808
$
383,241
3.0
%
64.4
%
Federal funds purchased
—
—
—
200,000
—
N/M
N/M
Short-term FHLB advances
—
—
—
725,000
500,000
N/M
(100.0)
%
Total Short-term Borrowings
$
630,066
$
611,727
$
572,551
$
1,386,808
$
883,241
3.0
%
(28.7)
%
N/M - Not meaningful
(1) "ACL - loans" relates to the ACL
specifically on "Loans, net of unearned income" 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
Three Months Ended
% Change from
Years ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
Sep 30
Dec 31
Dec 31
2020
2020
2020
2020
2019
2020
2019
2020
2019
% Change
Interest Income:
Interest income
$
183,645
$
179,159
$
180,696
$
199,378
$
202,159
2.5
%
(9.2)
%
$
742,878
$
825,306
(10.0)
%
Interest expense
22,054
25,043
27,942
38,632
42,889
(11.9)
%
(48.6)
%
113,671
176,917
(35.7)
%
Net Interest Income
161,591
154,116
152,754
160,746
159,270
4.9
%
1.5
%
629,207
648,389
(3.0)
%
Provision for credit losses
6,240
7,080
19,570
44,030
20,530
(11.9)
%
(69.6)
%
76,920
32,825
N/M
Net Interest Income after
Provision
155,351
147,036
133,184
116,716
138,740
5.7
%
12.0
%
552,287
615,564
(10.3)
%
Non-Interest Income:
Wealth management
15,653
14,943
13,407
15,055
14,419
4.7
%
8.6
%
59,058
55,678
6.1
%
Mortgage banking
9,311
16,801
9,964
6,234
5,076
(44.6)
%
83.4
%
42,309
23,099
83.2
%
Consumer banking:
Card
5,123
5,002
4,966
4,685
4,991
2.4
%
2.7
%
19,777
20,515
(3.6)
%
Overdraft
3,376
3,015
2,107
4,058
4,750
12.0
%
(28.9)
%
12,556
17,949
(30.0)
%
Other consumer banking
2,298
2,406
2,065
2,496
2,688
(4.5)
%
(14.5)
%
9,266
11,039
(16.1)
%
Total consumer banking
10,798
10,423
9,138
11,239
12,429
3.6
%
(13.1)
%
41,598
49,503
(16.0)
%
Commercial banking:
Merchant and card
5,953
6,237
5,326
5,624
5,841
(4.6)
%
1.9
%
23,139
24,077
(3.9)
%
Cash management
4,737
4,742
4,503
4,742
4,697
(0.1)
%
0.9
%
18,725
18,392
1.8
%
Capital markets
3,513
4,696
5,004
5,075
5,939
(25.2)
%
(40.8)
%
18,288
14,875
22.9
%
Other commercial banking
2,606
2,636
1,914
2,978
3,664
(1.2)
%
(28.9)
%
10,134
13,773
(26.4)
%
Total commercial banking
16,809
18,311
16,748
18,419
20,141
(8.2)
%
(16.5)
%
70,286
71,117
(1.2)
%
Other
3,004
2,769
3,660
3,651
3,216
8.5
%
(6.6)
%
13,084
12,030
8.8
%
Non-interest income before investment
securities gains
55,574
63,246
52,917
54,598
55,281
(12.1)
%
0.5
%
226,335
211,427
7.1
%
Investment securities gains, net
—
2
3,005
46
—
(100.0)
%
N/M
3,053
4,733
(35.5)
%
Total Non-Interest Income
55,574
63,248
55,922
54,644
55,281
(12.1)
%
0.5
%
229,388
216,160
6.1
%
Non-Interest Expense:
Salaries and employee benefits
83,929
79,227
81,012
80,228
76,975
5.9
%
9.0
%
324,395
311,934
4.0
%
Net occupancy
13,161
13,221
13,144
13,486
13,080
(0.5)
%
0.6
%
53,013
52,826
0.4
%
Data processing and software
11,951
12,285
12,193
11,645
11,468
(2.7)
%
4.2
%
48,073
44,679
7.6
%
Other outside services
8,334
7,617
7,600
7,881
8,215
9.4
%
1.4
%
31,432
39,989
(21.4)
%
Equipment
3,563
3,711
3,193
3,418
3,475
(4.0)
%
2.5
%
13,885
13,575
2.3
%
Professional fees
2,424
2,879
3,331
4,202
2,873
(15.8)
%
(15.6)
%
12,835
13,134
(2.3)
%
Marketing
1,098
1,147
1,303
1,579
1,503
(4.3)
%
(27.0)
%
5,127
9,848
(47.9)
%
Amortization of tax credit investments
1,532
1,694
1,450
1,450
1,505
(9.6)
%
1.8
%
6,126
6,021
1.7
%
FDIC insurance
2,346
1,578
2,133
2,808
2,177
48.7
%
7.8
%
8,865
7,780
13.9
%
Intangible amortization
132
132
132
132
142
0.2
%
(6.8)
%
529
1,427
(63.0)
%
Prepayment penalty on FHLB advances
—
—
2,878
—
—
N/M
N/M
2,878
4,326
(33.5)
%
Other
26,268
15,654
14,637
15,723
17,561
67.8
%
49.6
%
72,282
62,197
16.2
%
Total Non-Interest Expense
154,737
139,145
143,006
142,552
138,974
11.2
%
11.3
%
579,440
567,736
2.1
%
Income Before Income Taxes
56,187
71,139
46,100
28,808
55,047
(21.0)
%
2.1
%
202,235
263,988
(23.4)
%
Income tax expense
5,362
9,529
6,542
2,761
7,258
(43.7)
%
(26.1)
%
24,194
37,649
(35.7)
%
Net Income
50,825
61,610
39,558
26,047
47,789
(17.5)
%
6.4
%
178,040
226,339
(21.3)
%
Preferred stock dividends
(2,135)
—
—
—
—
N/M
N/M
(2,135)
—
N/M
Net Income Available to Common
Shareholders
$
48,690
$
61,610
$
39,558
$
26,047
$
47,789
(21.0)
%
1.9
%
$
175,905
$
226,339
(22.3)
%
PER SHARE:
Net income:
Basic
$
0.30
$
0.38
$
0.24
$
0.16
$
0.29
(21.1)
%
3.4
%
$
1.08
$
1.36
(20.6)
%
Diluted
0.30
0.38
0.24
0.16
0.29
(21.1)
%
3.4
%
1.08
1.35
(20.0)
%
Cash dividends
0.17
0.13
0.13
0.13
0.17
30.8
%
—
%
$
0.56
$
0.56
—
%
Weighted average shares (basic)
162,242
162,061
161,715
163,475
164,135
0.1
%
(1.2)
%
162,372
166,902
(2.7)
%
Weighted average shares (diluted)
163,071
162,579
162,267
164,417
165,039
0.3
%
(1.2)
%
163,090
167,792
(2.8)
%
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE
SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Three months ended
December 31, 2020
September 30, 2020
December 31, 2019
Average
Interest
Yield/
Average
Interest
Yield/
Average
Interest
Yield/
Balance
(1)
Rate
Balance
(1)
Rate
Balance
(1)
Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income
$
18,994,514
$
164,329
3.45
%
$
18,880,519
$
160,344
3.38
%
$
16,768,057
$
182,024
4.31
%
Taxable investment securities
2,233,730
13,559
2.43
%
2,011,893
13,150
2.61
%
2,198,252
15,621
2.84
%
Tax-exempt investment securities
886,329
7,044
3.17
%
861,764
6,899
3.19
%
594,487
5,058
3.38
%
Total Investment Securities
3,120,059
20,603
2.64
%
2,873,657
20,048
2.79
%
2,792,739
20,679
2.96
%
Loans held for sale
76,871
521
2.71
%
79,999
728
3.64
%
30,062
295
3.93
%
Other interest-earning assets
1,668,454
1,179
0.28
%
1,387,327
1,028
0.30
%
492,560
2,370
1.92
%
Total Interest-earning Assets
23,859,898
186,632
3.12
%
23,221,502
182,149
3.13
%
20,083,418
205,368
4.07
%
Noninterest-earning assets:
Cash and due from banks
126,190
138,567
128,417
Premises and equipment
236,265
239,183
239,294
Other assets
1,799,381
1,835,190
1,528,758
Less: ACL - loans(2)
(272,329)
(264,934)
(167,449)
Total Assets
$
25,749,405
$
25,169,508
$
21,812,438
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits
$
5,762,150
$
1,457
0.10
%
$
5,591,548
$
1,913
0.14
%
$
4,699,040
$
8,494
0.72
%
Savings deposits
5,905,137
1,866
0.13
%
5,716,050
2,347
0.16
%
5,205,260
10,253
0.78
%
Brokered deposits
340,451
451
0.53
%
314,721
440
0.56
%
261,689
1,279
1.94
%
Time deposits
2,306,556
8,082
1.39
%
2,495,445
9,931
1.58
%
2,959,008
13,775
1.86
%
Total Interest-bearing Deposits
14,314,294
11,856
0.33
%
14,117,764
14,631
0.41
%
13,124,997
33,801
1.02
%
Short-term borrowings
622,623
268
0.17
%
613,127
370
0.24
%
717,811
2,343
1.29
%
FHLB advances and long-term debt
1,296,139
9,930
3.06
%
1,295,515
10,042
3.10
%
875,802
6,745
3.07
%
Total Interest-bearing
Liabilities
16,233,056
22,054
0.54
%
16,026,406
25,043
0.62
%
14,718,610
42,889
1.16
%
Noninterest-bearing liabilities:
Demand deposits
6,477,228
6,270,683
4,324,568
Total Deposits/Cost of Deposits
20,791,522
0.23
%
20,388,447
0.29
%
17,449,565
0.77
%
Other
494,255
498,328
427,863
Total Liabilities
23,204,539
$
22,795,417
19,471,041
Total Interest-bearing liabilities and
non-interest bearing deposits ("Cost of Funds")
22,710,284
0.39
%
22,297,089
0.45
%
19,043,178
0.89
%
Shareholders' equity
2,544,866
2,374,091
2,341,397
Total Liabilities and Shareholders'
Equity
$
25,749,405
$
25,169,508
$
21,812,438
Net interest income/net interest margin
(fully taxable equivalent)
164,578
2.75
%
157,106
2.70
%
162,479
3.22
%
Tax equivalent adjustment
(2,987)
(2,990)
(3,209)
Net interest income
$
161,591
$
154,116
$
159,270
(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 "Loans, net of unearned income" and does not
include the ACL related to OBS credit exposures.
FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND SHORT-TERM
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
2020
2020
2020
2020
2019
2020
2019
Loans, by type:
Real estate - commercial mortgage
$
7,101,363
$
6,986,528
$
6,875,872
$
6,746,766
$
6,561,029
1.6
%
8.2
%
Commercial and industrial
4,024,879
4,030,750
4,451,228
4,446,750
4,574,047
(0.1)
%
(12.0)
%
Real estate - residential mortgage
3,087,529
2,975,516
2,769,682
2,670,019
2,606,136
3.8
%
18.5
%
Real estate - home equity
1,212,113
1,237,602
1,271,190
1,300,132
1,331,088
(2.1)
%
(8.9)
%
Real estate - construction
1,009,284
981,589
941,079
929,529
934,556
2.8
%
8.0
%
Consumer
468,678
464,851
465,728
466,415
464,606
0.8
%
0.9
%
Equipment lease financing
279,059
279,217
284,658
284,566
281,451
(0.1)
%
(0.8)
%
Other(1)
(18,817)
(28,656)
13,443
15,890
14,058
(34.3)
%
N/M
Loans, net of unearned income before
PPP
17,164,088
16,927,397
17,072,880
16,860,067
16,766,971
1.4
%
2.4
%
PPP
1,830,426
1,953,122
1,258,917
—
—
(6.3)
%
N/M
Total Loans, net of unearned
income
$
18,994,514
$
18,880,519
$
18,331,797
$
16,860,067
$
16,766,971
0.6
%
13.3
%
Deposits, by type:
Noninterest-bearing demand
$
6,477,228
$
6,270,683
$
5,789,788
$
4,307,027
$
4,324,568
3.3
%
49.8
%
Interest-bearing demand
5,762,150
5,591,548
5,103,419
4,649,905
4,699,040
3.1
%
22.6
%
Savings
5,905,137
5,716,050
5,446,368
5,127,662
5,205,260
3.3
%
13.4
%
Total demand and savings
18,144,515
17,578,281
16,339,575
14,084,594
14,228,868
3.2
%
27.5
%
Brokered
340,451
314,721
312,121
275,359
261,689
8.2
%
30.1
%
Time
2,306,556
2,495,445
2,624,962
2,761,474
2,959,008
(7.6)
%
(22.0)
%
Total Deposits
$
20,791,522
$
20,388,447
$
19,276,658
$
17,121,427
$
17,449,565
2.0
%
19.2
%
Short-term borrowings, by type:
Customer funding
$
622,623
$
613,127
$
546,716
$
428,240
$
377,529
1.5
%
64.9
%
Federal funds purchased
—
—
74,231
186,868
91,467
N/M
(100.0)
%
Short-term FHLB advances and other
borrowings
—
—
86,824
687,937
248,815
N/M
(100.0)
%
Total Short-term borrowings
$
622,623
$
613,127
$
707,771
$
1,303,045
$
717,811
1.5
%
(13.3)
%
(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
2020
2019
Average
Interest
Yield/
Average
Interest
Yield/
Balance
(1)
Rate
Balance
(1)
Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income
$
18,270,390
$
662,785
3.63
%
$
16,430,347
$
747,119
4.55
%
Taxable investment securities
2,182,410
58,173
2.66
%
2,278,448
62,556
2.74
%
Tax-exempt investment securities
825,057
26,641
3.22
%
500,398
17,998
3.57
%
Total Investment Securities
3,007,467
84,814
2.82
%
2,778,846
80,554
2.89
%
Loans held for sale
60,015
2,077
3.46
%
25,795
1,351
5.24
%
Other interest-earning assets
1,120,727
5,504
0.49
%
445,008
9,249
2.08
%
Total Interest-earning Assets
22,458,599
755,181
3.36
%
19,679,996
838,273
4.26
%
Noninterest-earning assets:
Cash and due from banks
139,146
119,144
Premises and equipment
238,864
239,376
Other assets
1,746,956
1,385,689
Less: ACL - loans(2)
(249,848)
(166,165)
Total Assets
$
24,333,717
$
21,258,040
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits
$
5,278,941
$
11,390
0.22
%
$
4,384,059
$
33,348
0.76
%
Savings deposits
5,550,234
14,654
0.26
%
5,018,381
41,823
0.83
%
Brokered deposits
310,763
2,387
0.77
%
245,501
5,779
2.35
%
Time deposits
2,546,305
41,615
1.63
%
2,869,326
50,825
1.77
%
Total Interest-bearing Deposits
13,686,243
70,045
0.51
%
12,517,267
131,775
1.05
%
Short-term borrowings
810,583
5,227
0.64
%
849,679
14,543
1.70
%
FHLB advances and long-term debt
1,254,300
38,398
3.06
%
942,600
30,599
3.25
%
Total Interest-bearing
Liabilities
15,751,126
113,671
0.72
%
14,309,546
176,917
1.24
%
Noninterest-bearing liabilities:
Demand deposits
5,714,803
4,249,294
Total Deposits/Cost of Deposits
19,401,046
0.36
%
16,766,561
0.79
%
Other
476,139
393,130
Total Liabilities
21,942,068
18,951,970
Total Interest-bearing liabilities and
non-interest bearing deposits ("Cost of Funds")
21,465,929
0.53
%
18,558,840
0.95
%
Shareholders' equity
2,391,649
2,306,070
Total Liabilities and Shareholders'
Equity
$
24,333,717
$
21,258,040
Net interest income/net interest margin
(fully taxable equivalent)
641,510
2.86
%
661,356
3.36
%
Tax equivalent adjustment
(12,303)
(12,967)
Net interest income
$
629,207
$
648,389
(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 "Loans, net of unearned income" and does not
include the ACL related to OBS credit exposures.
FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND SHORT-TERM
BORROWINGS DETAIL (UNAUDITED):
dollars in thousands
Year ended December 31
2020
2019
% Change
Loans, by type:
Real estate - commercial mortgage
$
6,928,269
$
6,463,783
7.2
%
Commercial and industrial
4,237,252
4,473,549
(5.3)
%
Real estate - residential mortgage
2,876,538
2,441,684
17.8
%
Real estate - home equity
1,255,094
1,382,908
(9.2)
%
Real estate - construction
965,534
928,183
4.0
%
Consumer
466,419
448,205
4.1
%
Equipment lease financing
281,859
279,489
0.8
%
Other(1)
(4,640)
12,546
N/M
Loans, net of unearned income before
PPP
17,006,325
16,430,347
3.5
%
PPP
1,264,065
—
N/M
Total Loans, net of unearned
income
$
18,270,390
$
16,430,347
11.2
%
Deposits, by type:
Noninterest-bearing demand
$
5,714,803
$
4,249,294
34.5
%
Interest-bearing demand
5,278,941
4,384,059
20.4
%
Savings
5,550,234
5,018,381
10.6
%
Total demand and savings
16,543,978
13,651,734
21.2
%
Brokered
310,763
245,501
26.6
%
Time
2,546,305
2,869,326
(11.3)
%
Total Deposits
$
19,401,046
$
16,766,561
15.7
%
Short-term borrowings, by type:
Customer funding
$
553,033
$
355,983
55.4
%
Federal funds purchased
64,918
132,578
(51.0)
%
Short-term FHLB advances and other
borrowings
192,632
361,118
(46.7)
%
Total Short-term Borrowings
$
810,583
$
849,679
(4.6)
%
(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
2020
2020
2020
2020
2019
2020
2019
Allowance for credit losses related to
Loans, net of unearned income:
Balance at beginning of period
$
266,825
$
256,537
$
238,508
$
163,620
$
166,135
$
163,622
$
160,537
Impact of adopting CECL
—
—
—
45,724
—
45,724
—
Loans charged off:
Commercial and industrial
(1,567)
(2,969)
(3,480)
(10,899)
(30,547)
(18,915)
(42,410)
Real estate - commercial mortgage
(300)
(746)
(2,324)
(855)
(68)
(4,225)
(1,837)
Consumer and home equity
(668)
(1,093)
(1,303)
(1,529)
(1,416)
(4,593)
(4,694)
Real estate - residential mortgage
—
(198)
(235)
(187)
(223)
(620)
(1,545)
Real estate - construction
—
—
(17)
—
—
(17)
(143)
Equipment lease financing and other
(483)
(483)
(688)
(533)
(727)
(2,187)
(2,560)
Total loans charged off
(3,018)
(5,489)
(8,047)
(14,003)
(32,981)
(30,557)
(53,189)
Recoveries of loans previously charged
off:
Commercial and industrial
4,581
2,103
2,978
1,734
2,487
11,396
8,721
Real estate - commercial mortgage
588
100
95
244
1,453
1,027
2,202
Consumer and home equity
594
491
649
646
437
2,380
1,994
Real estate - residential mortgage
199
95
112
85
206
491
989
Real estate - construction
179
4,873
—
70
1,098
5,122
2,591
Equipment lease financing and other
219
185
92
108
182
604
666
Recoveries of loans previously charged
off
6,360
7,847
3,926
2,887
5,863
21,020
17,163
Net loans recovered (charged
off)
3,342
2,358
(4,121)
(11,116)
(27,118)
(9,537)
(36,026)
Provision for credit losses
7,400
7,930
22,150
40,280
24,603
77,760
39,111
Balance at end of period
$
277,567
$
266,825
$
256,537
$
238,508
$
163,620
$
277,569
$
163,622
Net (recoveries) charge-offs to average
loans (annualized)
(0.07)
%
(0.05)
%
0.09
%
0.26
%
0.65
%
0.05
%
0.22
%
Allowance credit losses related to OBS
Credit Exposures(1)
Balance at beginning of period
$
15,533
$
16,383
$
18,963
$
2,588
$
6,662
Impact of adopting CECL
—
—
—
12,625
—
Provision for credit losses
(1,160)
(850)
(2,580)
3,750
(4,074)
Balance at end of period
$
14,373
$
15,533
$
16,383
$
18,963
$
2,588
NON-PERFORMING ASSETS:
Non-accrual loans
$
137,198
$
128,321
$
125,037
$
120,345
$
125,098
Loans 90 days past due and accruing
9,929
13,761
14,767
19,593
16,057
Total non-performing loans
147,127
142,082
139,804
139,938
141,155
Other real estate owned
4,178
4,565
5,418
6,593
6,831
Total non-performing assets
$
151,305
$
146,647
$
145,222
$
146,531
$
147,986
NON-PERFORMING LOANS, BY TYPE:
Commercial and industrial
$
32,610
$
37,224
$
39,730
$
41,318
$
49,491
Real estate - commercial mortgage
52,647
43,426
42,374
36,538
37,279
Real estate - residential mortgage
30,793
28,287
22,887
25,832
22,411
Consumer and home equity
13,090
12,292
11,911
11,226
11,026
Real estate - construction
1,550
4,051
4,525
4,379
4,306
Equipment lease financing and other
16,437
16,802
18,377
20,645
16,642
Total non-performing loans
$
147,127
$
142,082
$
139,804
$
139,938
$
141,155
(1) The allowance for credit losses
related to OBS Credit Exposures is presented in "other liabilities"
on the consolidated balance sheets.
FULTON FINANCIAL CORPORATION
RECONCILIATION OF 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
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2020
2020
2020
2020
2019
Common shareholders' equity (tangible),
per share
Shareholders' equity
$
2,616,828
$
2,390,261
$
2,340,501
$
2,285,748
$
2,342,176
Less: Preferred stock
(192,878)
—
—
—
—
Less: Goodwill and intangible assets
(536,659)
(534,907)
(535,039)
(535,171)
(535,303)
Tangible common shareholders' equity
(numerator)
$
1,887,291
$
1,855,354
$
1,805,462
$
1,750,577
$
1,806,873
Shares outstanding, end of period
(denominator)
162,350
162,134
161,958
161,435
164,218
Common shareholders' equity (tangible),
per share
$
11.62
$
11.44
$
11.15
$
10.84
$
11.00
Return on average common shareholders'
equity (tangible)
Net income available to common
shareholders
$
48,690
$
61,610
$
39,558
$
26,047
$
47,789
Plus: Intangible amortization, net of
tax
104
103
104
104
112
(Numerator)
$
48,794
$
61,713
$
39,662
$
26,151
$
47,901
Average shareholders' equity
$
2,544,866
$
2,374,091
$
2,309,133
$
2,337,016
$
2,341,397
Less: Average preferred stock
(127,639)
—
—
—
—
Less: Average goodwill and intangible
assets
(535,474)
(534,971)
(535,103)
(535,235)
(534,190)
Average tangible common shareholders'
equity (denominator)
$
1,881,753
$
1,839,120
$
1,774,030
$
1,801,781
$
1,807,207
Return on average common shareholders'
equity (tangible), annualized
10.32
%
13.50
%
8.99
%
5.84
%
10.52
%
Tangible common equity to tangible
assets (TCE Ratio)
Shareholders' equity
$
2,616,828
$
2,390,261
$
2,340,501
$
2,285,748
$
2,342,176
Less: Preferred stock
(192,878)
—
—
—
—
Less: Goodwill and intangible assets
(536,659)
(534,907)
(535,039)
(535,171)
(535,303)
Tangible common shareholders' equity
(numerator)
$
1,887,291
$
1,855,354
$
1,805,462
$
1,750,577
$
1,806,873
Total assets
$
25,906,733
$
25,543,281
$
24,617,863
$
22,929,859
$
21,886,040
Less: Goodwill and intangible assets
(536,659)
(534,907)
(535,039)
(535,171)
(535,303)
Total tangible assets (denominator)
$
25,370,074
$
25,008,374
$
24,082,824
$
22,394,688
$
21,350,737
Tangible common equity to tangible
assets
7.44
%
7.42
%
7.50
%
7.82
%
8.46
%
Efficiency ratio
Non-interest expense
$
154,737
$
139,145
$
143,006
$
142,552
$
138,974
Less: Amortization of tax credit
investments
(1,532)
(1,694)
(1,450)
(1,450)
(1,505)
Less: Intangible amortization
(132)
(132)
(132)
(132)
(142)
Less: Prepayment penalty on FHLB
advances
—
—
(2,878)
—
—
Non-interest expense (numerator)
$
153,073
$
137,319
$
138,546
$
140,970
$
137,327
Net interest income (fully taxable
equivalent)
$
164,578
$
157,106
$
155,854
$
163,970
$
162,479
Plus: Total Non-interest income
55,574
63,248
55,922
54,644
55,281
Less: Investment securities gains, net
—
(2)
(3,005)
(46)
—
Total revenue (denominator)
$
220,151
$
220,353
$
208,771
$
218,568
$
217,760
Efficiency ratio
69.5
%
62.3
%
66.4
%
64.5
%
63.1
%
Three months ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2020
2020
2020
2020
2019
Efficiency ratio,
net 2020 cost savings initiatives
Non-interest expense
$
154,737
$
139,145
$
143,006
$
142,552
$
138,974
Less: Amortization of tax credit
investments
(1,532)
(1,694)
(1,450)
(1,450)
(1,505)
Less: Intangible amortization
(132)
(132)
(132)
(132)
(142)
Less: 2020 cost savings initiatives
(15,400)
(800)
—
—
—
Less: Prepayment penalty on FHLB
advances
—
—
(2,878)
—
—
Non-interest expense (numerator)
$
137,673
$
136,519
$
138,546
$
140,970
$
137,327
Net interest income (fully taxable
equivalent)
$
164,578
$
157,106
$
155,854
$
163,970
$
162,479
Plus: Total Non-interest income
55,574
63,248
55,922
54,644
55,281
Less: Investment securities gains, net
—
(2)
(3,005)
(46)
—
Total revenue (denominator)
$
220,151
$
220,353
$
208,771
$
218,568
$
217,760
Efficiency ratio, net 2020 cost savings
initiatives
62.5
%
62.0
%
66.4
%
64.5
%
63.1
%
Non-performing
assets to common shareholders' equity (tangible) and ACL -
loans(1)
Non-performing assets (numerator)
$
151,305
$
146,647
$
145,222
$
146,531
$
147,986
Tangible common shareholders' equity
$
1,887,291
$
1,855,354
$
1,805,462
$
1,750,577
$
1,806,873
Plus: ACL - loans
277,567
266,825
256,537
238,508
163,622
Tangible common shareholders' equity and
ACL - loans (denominator)
$
2,164,858
$
2,122,179
$
2,061,999
$
1,989,085
$
1,970,495
Non-performing assets to tangible common
shareholders' equity and ACL - loans
6.99
%
6.91
%
7.04
%
7.37
%
7.51
%
Asset Quality, excluding PPP
Net loans recovered (charged-off)
(numerator)
$
3,342
$
2,358
$
(4,121)
$
(11,116)
$
(27,118)
Average loans, net of unearned income
$
18,994,514
$
18,880,519
$
18,331,797
$
16,860,067
$
16,766,971
Less: Average PPP loans
(1,830,426)
(1,953,122)
(1,258,917)
—
—
Total adjusted average loans
(denominator)
$
17,164,088
$
16,927,397
$
17,072,880
$
16,860,067
$
16,766,971
Net (recoveries) charge-offs to adjusted
average loans (annualized)
(0.08)
%
(0.06)
%
0.10
%
0.26
%
0.65
%
Non-performing loans (numerator)
$
147,127
$
142,082
$
139,804
$
139,938
$
141,155
Loans, net of unearned income
$
18,900,820
$
19,028,621
$
18,704,722
$
17,077,403
$
16,837,526
Less: PPP loans
(1,581,712)
(1,960,165)
(1,937,034)
—
—
Total adjusted loans (denominator)
$
17,319,108
$
17,068,456
$
16,767,688
$
17,077,403
$
16,837,526
Non-performing loans to adjusted total
loans
0.85
%
0.83
%
0.83
%
0.82
%
0.84
%
ACL - loans (numerator)
$
277,567
$
266,825
256,537
238,508
$
163,622
Loans, net of unearned income
$
18,900,820
$
19,028,621
$
18,704,722
$
17,077,403
$
16,837,526
Less: PPP loans
(1,581,712)
(1,960,165)
(1,937,034)
—
—
Total adjusted loans (denominator)
$
17,319,108
$
17,068,456
$
16,767,688
$
17,077,403
$
16,837,526
ACL - loans to adjusted total loans
1.60
%
1.56
%
1.53
%
1.40
%
0.97
%
Note: numbers may not sum due to
rounding.
(1) "ACL - loans" relates to the ACL
specifically on "Loans, net of unearned income" and does not
include the ACL related to OBS credit exposures.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210119006092/en/
Media: Laura Wakeley (717) 291-2616 Investors: Matt Jozwiak
(717) 327-2657
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