Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the
“Corporation”) reported net income available to common shareholders
of $68.3 million, or $0.40 per diluted share, for the third quarter
of 2022, an increase of $0.9 million, or 1.3%, in comparison to the
second quarter of 2022. The Corporation reported net income
available to common shareholders of $197.5 million, or $1.20 per
diluted share, for the nine months ended September 30, 2022, a
decrease of $8.4 million or 4.1%, in comparison to the nine months
ended September 30, 2021. The results for the third quarter of 2022
include the impact of the consummation of the acquisition by the
Corporation of Prudential Bancorp, Inc. ("Prudential Bancorp") on
July 1, 2022.
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"I'm pleased to report that we had a strong third quarter, with
operating earnings being at an all-time high for Fulton," said E.
Phillip Wenger, Chairman and CEO. "As I retire from my current role
on December 31, I have tremendous confidence in my successor, Curt
Myers, our senior management team and directors, and the more than
3,300 talented team members to continue to change lives for the
better for our customers and our shareholders."
"We are grateful to Phil Wenger for all the contributions he has
made over his 43 years of service to Fulton, and we look forward to
carrying on his legacy" said Curtis J. Myers, President and COO.
"As Phil noted, our third quarter performance was strong, driven
primarily by increased net interest income, which was helped by
rising interest rates, good loan growth, consistent fee income, and
the effect of our acquisition of Prudential Bancorp completed on
July 1, 2022."
Operating net income available to common shareholders was $80.5
million, or $0.48 per diluted share, for the third quarter of 2022,
calculated as shown below.
Three months ended
(in thousands except per share data)
September 30, 2022
Net income available to common
shareholders
$68,309
Plus: Core deposit intangible
amortization, net of tax
406
Plus: Merger-related expenses, net of
tax
5,535
Plus: Current expected credit losses
("CECL") day 1 provision expense, net of tax
6,283
Operating net income available to common
shareholders
$80,533
Weighted average shares (diluted)
(denominator)
168,781
Operating net income available to common
shareholders per share (diluted)
$0.48
Net Interest Income and Balance
Sheet
Net interest income for the third quarter of 2022 was $215.6
million, an increase of $36.8 million in comparison to the second
quarter of 2022. The net interest margin for the third quarter of
2022 increased 50 basis points, to 3.54%, in comparison to 3.04% in
the second quarter of 2022.
The linked-quarter increase in net interest income was primarily
due to rising interest rates resulting in increases in interest
income from net loans and investment securities of $41.3 million
and $1.7 million, respectively. An increase in the average balances
for net loans and investment securities of $926.7 million and
$102.0 million, respectively, driven in part by the Prudential
Bancorp acquisition, also contributed to the increase in interest
income. Interest income from Prudential Bancorp was approximately
$10.9 million in the third quarter of 2022. Interest expense from
interest-bearing liabilities for the third quarter of 2022
increased by $6.6 million in comparison to $11.5 million in the
second quarter of 2022, and included $2.7 million from Prudential
Bancorp.
For the third quarter of 2022, net interest income was $215.6
million, an increase of $44.3 million, or 25.9%, in comparison to
the third quarter of 2021 primarily driven by higher interest rates
resulting in an increase in interest income from net loans of $43.6
million. An increase in the average balances for net loans and
investment securities of $1,149.7 million and $678.9 million,
respectively, driven in part by the Prudential Bancorp acquisition,
also contributed to the increase in interest income. Interest
income from Prudential Bancorp was approximately $10.9 million in
the third quarter of 2022. Interest expense from interest-bearing
liabilities for the third quarter of 2022 increased by $5.3 million
in comparison to $12.8 million in the third quarter of 2021, and
included $2.7 million from Prudential Bancorp.
Total average interest-earning assets for the third quarter of
2022 was $24.7 billion, an increase of $709.0 million from the
second quarter of 2022, primarily driven by the aforementioned
increases in average net loans of $926.7 million and average
investment securities of $102.0 million, partially offset by a
decrease in other interest-earning assets of $315.6 million.
Total average interest-earning assets for the third quarter of
2022 increased by $122.6 million from the third quarter of 2021.
Average net loans for the third quarter of 2022 were $19.6 billion,
an increase of $1,149.7 million from the same period in 2021.
Included in average net loans for the third quarter of 2022 were
Paycheck Protection Program ("PPP") loans with an average balance
of $49.2 million, a decrease of $801.4 million from the third
quarter of 2021. Compared to the third quarter of 2021, average
other interest-earning assets decreased $1,678.7 million and
average investment securities increased $678.9 million,
respectively.
Total average interest-bearing liabilities increased $731.7
million, to $15.6 billion, in the third quarter of 2022 in
comparison to $14.9 billion in the second quarter of 2022, due in
part to the Prudential Bancorp acquisition, and driven overall by
increases in average balances of interest-bearing deposits,
long-term borrowings and short-term borrowings of $376.2 million,
$204.5 million and $151.0 million, respectively.
Total average interest-bearing liabilities for the third quarter
of 2022 decreased $194.3 million in comparison to $15.8 billion in
the third quarter of 2021, driven by a decrease in the average
total interest-bearing deposits of $431.6 million, partially offset
by increases in average balances of long-term borrowings and
short-term borrowings of $134.2 million and $103.1 million,
respectively.
Asset Quality
In the third quarter of 2022, a provision for credit losses of
$19.0 million was recorded in comparison to a provision for credit
losses of $1.5 million in the second quarter of 2022, and a
negative provision for credit losses of $0.6 million in the third
quarter of 2021. Included in the third quarter of 2022 provision
for credit losses was a CECL "Day 1" provision for credit losses of
$8.0 million for the acquired Prudential Bancorp loan portfolio
(the "CECL "Day 1" Provision"). Excluding the CECL "Day 1"
Provision for credit losses, the provision for credit losses was
$11.0 million and was primarily due to an increase in
non-performing loans, as well as increases in reserves for the
office building and residential mortgage loan portfolios.
Non-performing assets were $198.6 million, or 0.76% of total
assets, at September 30, 2022, in comparison to $178.3 million, or
0.71% at June 30, 2022, and $152.1 million, or 0.58% of total
assets, at September 30, 2021.
Annualized net charge-offs (recoveries) for the third quarter of
2022, was 0.01% of total average loans, in comparison to (0.08%)
and (0.05)% in the second quarter of 2022 and the third quarter of
2021, respectively.
Non-interest Income
Non-interest income before investment securities gains in the
third quarter of 2022 was $59.2 million, an increase of $0.8
million, or 1.4%, from the second quarter of 2022. The increase in
non-interest income was driven primarily by an increase of $0.8
million in consumer banking fees.
Compared to the third quarter of 2021, non-interest income
before investment securities gains in the third quarter of 2022
decreased $3.4 million, or 5.4%, from $62.6 million. The decrease
in non-interest income was due to decreases of $5.8 million in
mortgage banking income, $2.2 million in other income primarily due
to equity method investments, and $0.9 million in wealth management
revenues, partially offset by increases of $4.1 million in
commercial banking revenues and $1.5 million in consumer banking
fees.
Non-interest Expense
Non-interest expense, excluding merger-related expenses of $7.0
million and intangible amortization of $0.7 million, was $161.9
million in the third quarter of 2022, an increase of $13.3 million,
or 9.0%, compared to the second quarter of 2022. The increase was
primarily due to an $8.9 million increase in salaries and employee
benefits expense that included $2.6 million in additional
performance-based accruals and $2.0 million of salaries and
employee benefits costs from Prudential Bancorp. In addition,
compared to the second quarter of 2022, data processing and
software expense increased $1.1 million, charitable contributions,
reflected in other expense, increased $0.8 million due to
contributions made to the Fulton Forward Foundation, and other
outside services increased $0.6 million. The total impact on
non-interest expense from Prudential Bancorp in the third quarter
of 2022 was $3.6 million.
Compared to the third quarter of 2021, non-interest expense,
excluding merger-related expenses of $7.0 million and intangible
amortization of $0.7 million, increased $17.4 million, or 12.1%, in
the third quarter of 2022, primarily due to an increase in salaries
and employee benefits expense of $11.6 million. In addition,
compared to the third quarter of 2021, data processing and software
expense increased $1.5 million, other outside services increased
$1.5 million and net occupancy costs increased $1.1 million.
Income Tax Expense
For the third quarter of 2022, the effective tax rate was 17.8%,
in comparison to 17.6% for the full-year of 2021.
Additional information on Fulton is available on the Internet at
www.fultonbank.com.
Safe Harbor Statement
This press release may contain forward-looking statements with
respect to the Corporation’s financial condition, results of
operations and business. Do not unduly rely on forward-looking
statements. Forward-looking statements can be identified by the use
of words such as "may," "should," "will," "could," "estimates,"
"predicts," "potential," "continue," "anticipates," "believes,"
"plans," "expects," "future," "intends," “projects,” the negative
of these terms and other comparable terminology. These
forward-looking statements may include projections of, or guidance
on, the Corporation’s future financial performance, expected levels
of future expenses, including future credit losses, anticipated
growth strategies, descriptions of new business initiatives and
anticipated trends in the Corporation’s business or financial
results.
Forward-looking statements are neither historical facts, nor
assurance of future performance. Instead, the statements are based
on current beliefs, expectations and assumptions regarding the
future of the Corporation’s business, future plans and strategies,
projections, anticipated events and trends, the economy and other
future conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of the Corporation’s control, and actual results
and financial condition may differ materially from those indicated
in the forward-looking statements. Therefore, you should not unduly
rely on any of these forward-looking statements. Any
forward-looking statement is based only on information currently
available and speaks only as of the date when made. The Corporation
undertakes no obligation, other than as required by law, to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
A discussion of certain risks and uncertainties affecting the
Corporation, and some of the factors that could cause the
Corporation's actual results to differ materially from those
described in the forward-looking statements, can be found in the
sections entitled "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the
Corporation’s Annual Report on Form 10-K for the year ended
December 31, 2021, Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2022 and June 30, 2022 and other current and
periodic reports, which have been or will be filed with the
Securities and Exchange Commission (the "SEC") and are or will be
available in the Investor Relations section of the Corporation's
website (www.fultonbank.com) and on the SEC's website
(www.sec.gov).
Non-GAAP Financial
Measures
The Corporation uses certain financial measures in this press
release that have been derived from methods other than generally
accepted accounting principles ("GAAP"). These non-GAAP financial
measures are reconciled to the most comparable GAAP measures in
tables at the end of this press release.
FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL
INFORMATION (UNAUDITED)
in thousands, except per-share data and
percentages
Three months ended
Sep 30
Jun 30
Mar 31
Dec 31
Sep 30
2022
2022
2022
2021
2021
Ending
Balances
Investments
$
3,936,694
$
4,117,801
$
4,288,674
$
4,167,774
$
4,000,760
Net loans
19,695,199
18,920,950
18,476,119
18,325,350
18,269,407
Total assets
26,146,042
25,252,686
25,598,310
25,796,398
26,390,832
Deposits
21,376,554
21,143,866
21,541,174
21,573,499
22,074,041
Shareholders' equity
2,471,159
2,471,093
2,569,535
2,712,680
2,699,818
Average
Balances
Investments
$
4,254,216
$
4,216,507
$
4,228,827
$
3,980,045
$
3,914,627
Net loans
19,563,825
18,637,175
18,383,118
18,220,550
18,414,153
Total assets
26,357,095
25,578,432
25,622,462
26,136,536
26,440,876
Deposits
21,788,052
21,523,713
21,480,183
21,876,938
22,123,480
Shareholders' equity
2,604,057
2,531,346
2,688,834
2,713,198
2,722,833
Income
Statement
Net interest income
$
215,582
$
178,831
$
161,310
$
165,613
$
171,270
Provision for credit losses
18,958
1,500
(6,950
)
(5,000
)
(600
)
Non-interest income
59,162
58,391
55,256
63,881
62,577
Non-interest expense
169,558
149,730
145,978
154,019
144,596
Income before taxes
86,228
85,992
77,538
80,475
89,851
Net income available to common
shareholders
68,309
67,427
61,726
59,325
73,021
Pre-provision net revenue(1)
113,631
89,384
71,842
77,837
90,947
Per
Share
Net income available to common
shareholders (basic)
$
0.41
$
0.42
$
0.38
$
0.37
$
0.45
Net income available to common
shareholders (diluted)
$
0.40
$
0.42
$
0.38
$
0.37
$
0.45
Operating net income available to common
shareholders(1)
$
0.48
$
0.42
$
0.38
$
0.37
$
0.45
Cash dividends
$
0.15
$
0.15
$
0.15
$
0.22
$
0.14
Common shareholders' equity
$
13.61
$
14.15
$
14.79
$
15.70
$
15.53
Common shareholders' equity
(tangible)(1)
$
10.26
$
10.81
$
11.44
$
12.35
$
12.21
Weighted average shares (basic)
167,353
160,920
160,588
161,210
162,506
Weighted average shares (diluted)
168,781
162,075
161,911
162,355
163,456
(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
Sep 30
Jun 30
Mar 31
Dec 31
Sep 30
2022
2022
2022
2021
2021
Asset
Quality
Net (recoveries) charge offs to average
loans (annualized)
0.01
%
(0.08
)%
(0.02
)%
0.07
%
(0.05
)%
Non-performing loans to total loans
0.98
%
0.92
%
0.87
%
0.83
%
0.82
%
Non-performing assets to total assets
0.76
%
0.71
%
0.64
%
0.60
%
0.58
%
ACL - loans(2) to total loans
1.35
%
1.31
%
1.32
%
1.36
%
1.41
%
ACL - loans(2) to non-performing loans
138
%
143
%
151
%
164
%
171
%
Asset Quality,
excluding PPP(1)(3)
Net (recoveries) charge offs to adjusted
average loans (annualized)
0.01
%
(0.08
)%
(0.02
)%
0.07
%
(0.05
)%
Non-performing loans to total adjusted
loans
0.98
%
0.92
%
0.88
%
0.84
%
0.85
%
ACL - loans(2) to total adjusted loans
1.36
%
1.32
%
1.33
%
1.38
%
1.45
%
Profitability
Return on average assets, annualized
1.07
%
1.10
%
1.02
%
0.94
%
1.13
%
Operating return on average assets,
annualized(1)
1.25
%
1.11
%
1.02
%
0.94
%
1.13
%
Return on average common shareholders'
equity, annualized
11.24
%
11.57
%
10.03
%
9.34
%
11.45
%
Return on average common shareholders'
equity (tangible), annualized(1)
17.31
%
15.23
%
12.88
%
11.89
%
14.56
%
Net interest margin
3.54
%
3.04
%
2.78
%
2.77
%
2.82
%
Efficiency ratio(1)
57.8
%
61.4
%
65.8
%
65.2
%
60.3
%
Non-interest expenses to total average
assets
2.55
%
2.35
%
2.31
%
2.34
%
2.17
%
Operating non-interest expenses to total
average assets(1)
2.43
%
2.32
%
2.29
%
2.30
%
2.14
%
Capital
Ratios
Tangible common equity ratio
("TCE")(1)
6.7
%
7.0
%
7.3
%
7.8
%
7.6
%
TCE ratio, (excluding AOCI)(1)(5)
8.3
%
8.2
%
7.9
%
7.8
%
7.5
%
Tier 1 leverage ratio(4)
9.3
%
9.1
%
8.9
%
8.6
%
8.4
%
Common equity Tier 1 capital ratio(4)
10.0
%
9.9
%
10.0
%
9.9
%
10.1
%
Tier 1 risk-based capital ratio(4)
10.9
%
10.8
%
10.9
%
10.9
%
11.1
%
Total risk-based capital ratio(4)
13.7
%
13.7
%
13.8
%
14.1
%
14.4
%
(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.
(2) "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.
(3) Asset quality information excluding
PPP loans.
(4) Regulatory capital ratios as of
September 30, 2022 are preliminary and prior periods are
actual.
(5) Tangible common equity ("TCE") ratio,
excluding accumulated other comprehensive income ("AOCI")
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE
SHEETS (UNAUDITED)
dollars in thousands
% Change from
Sep 30
Jun 30
Mar 31
Dec 31
Sep 30
Jun 30
Sep 30
2022
2022
2022
2021
2021
2022
2021
ASSETS
Cash and due from banks
$
143,465
$
158,605
$
161,462
$
172,276
$
260,564
(9.5
)%
(44.9
)%
Other interest-earning assets
467,164
383,715
1,054,232
1,523,973
2,271,738
21.7
%
(79.4
)%
Loans held for sale
14,411
17,528
27,675
35,768
43,123
(17.8
)%
(66.6
)%
Investment securities
3,936,694
4,117,801
4,288,674
4,167,774
4,000,760
(4.4
)%
(1.6
)%
Net loans
19,695,199
18,920,950
18,476,119
18,325,350
18,269,407
4.1
%
7.8
%
Less: ACL - loans(1)
(266,838
)
(248,564
)
(243,705
)
(249,001
)
(256,727
)
(7.4
)%
(3.9
)%
Loans, net
19,428,361
18,672,386
18,232,414
18,076,349
18,012,680
4.0
%
7.9
%
Net, premises and equipment
221,496
211,639
218,257
220,357
228,179
4.7
%
(2.9
)%
Accrued interest receivable
72,821
64,457
55,102
57,451
57,902
13.0
%
25.8
%
Goodwill and intangible assets
561,495
537,700
537,877
538,053
536,697
4.4
%
4.6
%
Other assets
1,300,135
1,088,855
1,022,617
1,004,397
979,189
19.4
%
32.8
%
Total Assets
$
26,146,042
$
25,252,686
$
25,598,310
$
25,796,398
$
26,390,832
3.5
%
(0.9
)%
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits
$
21,376,554
$
21,143,866
$
21,541,174
$
21,573,499
$
22,074,041
1.1
%
(3.2
)%
Short-term borrowings
618,457
456,185
452,440
416,764
468,967
35.6
%
31.9
%
Other liabilities
873,648
624,412
478,667
472,110
520,620
39.9
%
67.8
%
Long-term borrowings
806,224
557,130
556,494
621,345
627,386
44.7
%
28.5
%
Total Liabilities
23,674,883
22,781,593
23,028,775
23,083,718
23,691,014
3.9
%
(0.1
)%
Shareholders' equity
2,471,159
2,471,093
2,569,535
2,712,680
2,699,818
—
%
(8.5
)%
Total Liabilities and Shareholders'
Equity
$
26,146,042
$
25,252,686
$
25,598,310
$
25,796,398
$
26,390,832
3.5
%
(0.9
)%
LOANS, DEPOSITS AND SHORT-TERM
BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage
$
7,554,509
$
7,417,036
$
7,289,376
$
7,279,080
$
7,145,115
1.9
%
5.7
%
Commercial and industrial
4,208,775
4,098,552
3,992,285
3,906,791
3,863,154
2.7
%
8.9
%
Real estate - residential mortgage
4,574,228
4,203,827
3,946,741
3,846,750
3,719,684
8.8
%
23.0
%
Real estate - home equity
1,110,103
1,108,808
1,098,171
1,118,248
1,126,628
0.1
%
(1.5
)%
Real estate - construction
1,273,097
1,177,446
1,210,340
1,139,779
1,111,487
8.1
%
14.5
%
Consumer
633,666
538,747
481,551
464,657
458,595
17.6
%
38.2
%
Equipment lease financing
255,060
254,897
253,521
236,344
242,967
0.1
%
5.0
%
Other(2)
53,671
49,214
39,857
32,448
11,330
9.1
%
N/M
Net loans before PPP
19,663,109
18,848,527
18,311,842
18,024,097
17,678,960
4.3
%
11.2
%
PPP
32,090
72,423
164,277
301,253
590,447
(55.7
)%
(94.6
)%
Total Net Loans
$
19,695,199
$
18,920,950
$
18,476,119
$
18,325,350
$
18,269,407
4.1
%
7.8
%
Deposits, by type:
Noninterest-bearing demand
$
7,372,896
$
7,530,777
$
7,528,391
$
7,370,963
$
7,434,155
(2.1
)%
(0.8
)%
Interest-bearing demand
5,676,600
5,403,805
5,625,286
5,819,539
6,187,096
5.0
%
(8.3
)%
Savings
6,563,003
6,406,051
6,479,196
6,403,995
6,401,619
2.5
%
2.5
%
Total demand and savings
19,612,499
19,340,633
19,632,873
19,594,497
20,022,870
1.4
%
(2.0
)%
Brokered
226,883
243,172
248,833
251,526
262,617
(6.7
)%
(13.6
)%
Time
1,537,172
1,560,061
1,659,468
1,727,476
1,788,554
(1.5
)%
(14.1
)%
Total Deposits
$
21,376,554
$
21,143,866
$
21,541,174
$
21,573,499
$
22,074,041
1.1
%
(3.2
)%
Short-term borrowings, by type:
Customer funding
$
482,457
$
436,185
$
452,440
$
416,764
$
468,967
10.6
%
2.9
%
Federal funds purchased
136,000
20,000
—
—
—
N/M
N/M
Total Short-Term Borrowings
$
618,457
$
456,185
$
452,440
$
416,764
$
468,967
35.6
%
31.9
%
(1) "ACL - loans" relates to the ACL
specifically on "Net Loans" and does not include the ACL related to
OBS credit exposures.
(2) Consists of overdrafts and net
origination fees and costs.
N/M - Not meaningful
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (UNAUDITED)
dollars in thousands
Three Months Ended
% Change from
Nine Months Ended
Sep 30
Jun 30
Mar 31
Dec 31
Sep 30
Jun 30
Sep 30
Sep 30
2022
2022
2022
2021
2021
2022
2021
2022
2021
% Change
Interest Income:
Interest income
$
233,691
$
190,299
$
173,001
$
177,724
$
184,079
22.8
%
27.0
%
$
596,991
$
545,688
9.4
%
Interest expense
18,109
11,468
11,691
12,111
12,809
57.9
%
41.4
%
41,268
47,570
(13.2
)%
Net Interest Income
215,582
178,831
161,310
165,613
171,270
20.6
%
25.9
%
555,723
498,118
11.6
%
Provision for credit losses
18,958
1,500
(6,950
)
(5,000
)
(600
)
N/M
N/M
13,508
(9,600
)
N/M
Net Interest Income after
Provision
196,624
177,331
168,260
170,613
171,870
10.9
%
14.4
%
542,215
507,718
6.8
%
Non-Interest Income:
Commercial banking:
Merchant and card
7,601
7,355
6,097
6,588
6,979
3.3
%
8.9
%
21,053
19,533
7.8
%
Cash management
6,483
6,062
5,428
5,318
5,285
6.9
%
22.7
%
17,973
15,547
15.6
%
Capital markets
4,060
3,893
1,676
2,982
2,063
4.3
%
96.8
%
9,629
6,399
50.5
%
Other commercial banking
2,664
3,049
2,807
3,592
2,411
(12.6
)%
10.5
%
8,520
8,730
(2.4
)%
Total commercial banking
20,808
20,359
16,008
18,480
16,738
2.2
%
24.3
%
57,175
50,209
13.9
%
Consumer banking:
Card
6,278
6,067
5,796
5,953
5,941
3.5
%
5.7
%
18,141
17,552
3.4
%
Overdraft
4,463
3,881
3,772
3,896
3,474
15.0
%
28.5
%
12,116
8,948
35.4
%
Other consumer banking
2,534
2,524
2,106
2,280
2,386
0.4
%
6.2
%
7,164
6,915
3.6
%
Total consumer banking
13,275
12,472
11,674
12,129
11,801
6.4
%
12.5
%
37,421
33,415
12.0
%
Wealth management
17,610
18,274
19,428
18,285
18,532
(3.6
)%
(5.0
)%
55,312
53,513
3.4
%
Mortgage banking
3,720
3,768
4,576
7,243
9,535
(1.3
)%
(61.0
)%
12,064
26,333
(54.2
)%
Other
3,802
3,510
3,551
7,739
5,971
8.3
%
(36.3
)%
10,863
12,883
(15.7
)%
Non-interest income before
investment securities gains
(losses)
59,215
58,383
55,237
63,876
62,577
1.4
%
(5.4
)%
172,835
176,353
(2.0
)%
Investment securities gains (losses),
net
(53
)
8
19
5
—
N/M
N/M
(26
)
33,511
(100.1
)%
Total Non-Interest Income
59,162
58,391
55,256
63,881
62,577
1.3
%
(5.5
)%
172,809
209,864
(17.7
)%
Non-Interest Expense:
Salaries and employee benefits
94,283
85,404
84,464
85,506
82,679
10.4
%
14.0
%
264,151
243,632
8.4
%
Data processing and software
15,807
14,685
14,315
14,612
14,335
7.6
%
10.3
%
44,807
41,828
7.1
%
Net occupancy
14,025
13,587
14,522
14,366
12,957
3.2
%
8.2
%
42,134
39,433
6.8
%
Other outside services
9,361
8,764
8,167
9,637
7,889
6.8
%
18.7
%
26,292
24,557
7.1
%
Equipment
3,548
3,422
3,423
3,539
3,416
3.7
%
3.9
%
10,393
10,268
1.2
%
FDIC insurance
3,158
2,961
3,209
3,032
2,727
6.7
%
15.8
%
9,328
7,633
22.2
%
Professional fees
2,373
2,013
1,792
1,946
2,271
17.9
%
4.5
%
6,178
7,701
(19.8
)%
Marketing
1,859
1,326
1,320
1,477
1,448
40.2
%
28.4
%
4,505
3,798
18.6
%
Intangible amortization
690
177
176
146
150
N/M
N/M
1,043
443
135.4
%
Debt extinguishment
—
—
—
674
—
N/M
N/M
—
32,575
(100.0
)%
Merger-related expenses
7,006
1,027
401
—
—
N/M
N/M
8,434
—
N/M
Other
17,448
16,364
14,189
19,084
16,724
6.6
%
4.3
%
48,001
51,943
(7.6
)%
Total Non-Interest Expense
169,558
149,730
145,978
154,019
144,596
13.2
%
17.3
%
465,266
463,811
0.3
%
Income Before Income Taxes
86,228
85,992
77,538
80,475
89,851
0.3
%
(4.0
)%
249,758
253,771
(1.6
)%
Income tax expense
15,357
16,003
13,250
18,588
14,268
(4.0
)%
7.6
%
44,610
40,160
11.1
%
Net Income
70,871
69,989
64,288
61,887
75,583
1.3
%
(6.2
)%
205,148
213,611
(4.0
)%
Preferred stock dividends
(2,562
)
(2,562
)
(2,562
)
(2,562
)
(2,562
)
—
%
—
%
(7,686
)
(7,715
)
0.4
%
Net Income Available to
Common Shareholders
$
68,309
$
67,427
$
61,726
$
59,325
$
73,021
1.3
%
(6.5
)%
$
197,462
$
205,896
(4.1
)%
Three Months Ended
% Change from
Nine Months Ended
Sep 30
Jun 30
Mar 31
Dec 31
Sep 30
Jun 30
Sep 30
Sep 30
2022
2022
2022
2021
2021
2022
2021
2022
2021
% Change
PER SHARE:
Net income available to common
shareholders:
Basic
$
0.41
$
0.42
$
0.38
$
0.37
$
0.45
(2.4
)%
(8.9
)%
$
1.21
$
1.27
(4.7
)%
Diluted
$
0.40
$
0.42
$
0.38
$
0.37
$
0.45
(4.8
)%
(11.1
)%
$
1.20
$
1.26
(4.8
)%
Cash dividends
$
0.15
$
0.15
$
0.15
$
0.22
$
0.14
—
%
7.1
%
$
0.45
$
0.42
7.1
%
Weighted average shares (basic)
167,353
160,920
160,588
161,210
162,506
4.0
%
3.0
%
162,979
162,577
0.2
%
Weighted average shares (diluted)
168,781
162,075
161,991
162,355
163,456
4.1
%
3.3
%
164,254
163,634
0.4
%
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE
SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Three months ended
September 30, 2022
June 30, 2022
September 30, 2021
Average
Interest
Yield/
Average
Interest
Yield/
Average
Interest
Yield/
Balance
(1)
Rate
Balance
(1)
Rate
Balance
(1)
Rate
ASSETS
Interest-earning assets:
Net loans
$
19,563,825
$
207,343
4.21
%
$
18,637,175
$
165,682
3.56
%
$
18,414,153
$
163,343
3.53
%
Investment securities
4,500,461
28,022
2.49
%
4,398,424
26,061
2.37
%
3,821,513
21,663
2.27
%
Loans held for sale
9,098
194
8.51
%
13,260
260
7.84
%
36,427
299
3.28
%
Other interest-earning assets
622,673
2,103
1.34
%
938,244
1,723
0.74
%
2,301,326
1,888
0.18
%
Total Interest-Earning Assets
24,696,057
237,662
3.83
%
23,987,103
193,726
3.24
%
24,573,419
187,193
3.03
%
Noninterest-Earning assets:
Cash and due from banks
152,349
160,240
200,315
Premises and equipment
223,880
216,798
228,861
Other assets
1,545,812
1,463,332
1,695,767
Less: ACL - loans(2)
(261,003
)
(249,041
)
(257,486
)
Total Assets
$
26,357,095
$
25,578,432
$
26,440,876
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-Bearing liabilities:
Demand deposits
$
5,708,059
$
1,886
0.13
%
$
5,597,975
$
797
0.06
%
$
6,168,908
$
814
0.05
%
Savings deposits
6,681,713
3,414
0.20
%
6,425,634
1,125
0.07
%
6,392,537
1,054
0.07
%
Brokered deposits
247,105
1,346
2.16
%
244,200
619
1.02
%
270,168
229
0.34
%
Time deposits
1,615,384
3,404
0.84
%
1,608,286
3,255
0.81
%
1,852,223
4,428
0.95
%
Total Interest-Bearing Deposits
14,252,261
10,050
0.28
%
13,876,095
5,796
0.17
%
14,683,836
6,525
0.18
%
Short-term borrowings
597,883
1,149
0.76
%
446,838
190
0.17
%
494,811
131
0.11
%
Long-term borrowings
761,465
6,911
3.62
%
556,992
5,482
3.94
%
627,300
6,153
3.92
%
Total Interest-Bearing
Liabilities
15,611,609
18,110
0.47
%
14,879,925
11,468
0.31
%
15,805,947
12,809
0.32
%
Noninterest-Bearing liabilities:
Demand deposits
7,535,791
7,647,618
7,439,644
Other
605,638
519,543
472,452
Total Liabilities
23,753,038
23,047,086
23,718,043
Total Deposits/Cost of Deposits
21,788,052
0.18
%
21,523,713
0.11
%
22,123,480
0.12
%
Total interest-bearing liabilities and
non-interest bearing deposits ("Cost of Funds")
23,147,400
0.31
%
22,527,543
0.20
%
23,245,591
0.22
%
Shareholders' equity
2,604,057
2,531,346
2,722,833
Total Liabilities and Shareholders'
Equity
$
26,357,095
$
25,578,432
$
26,440,876
Net interest income/net interest margin
(fully taxable equivalent)
219,552
3.54
%
182,258
3.04
%
174,384
2.82
%
Tax equivalent adjustment
(3,970
)
(3,427
)
(3,114
)
Net Interest Income
$
215,582
$
178,831
$
171,270
(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 "Net Loans" 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
Sep 30
Jun 30
Mar 31
Dec 31
Sep 30
Jun 30
Sep 30
2022
2022
2022
2021
2021
2022
2021
Loans, by type:
Real estate - commercial mortgage
$
7,566,259
$
7,340,417
$
7,294,914
$
7,157,906
$
7,134,177
3.1
%
6.1
%
Commercial and industrial
4,201,399
4,040,587
3,986,900
3,898,559
3,878,767
4.0
%
8.3
%
Real estate - residential mortgage
4,485,649
4,052,666
3,887,428
3,773,156
3,642,822
10.7
%
23.1
%
Real estate - home equity
1,099,487
1,118,494
1,106,319
1,122,042
1,128,076
(1.7
)%
(2.5
)%
Real estate - construction
1,268,590
1,188,932
1,137,649
1,117,592
1,085,846
6.7
%
16.8
%
Consumer
604,634
485,095
471,129
462,346
452,844
24.6
%
33.5
%
Equipment lease financing
252,810
253,659
236,388
238,349
247,776
(0.3
)%
2.0
%
Other(1)
35,823
42,476
36,277
15,558
(6,773
)
(15.7
)%
N/M
Net loans before PPP
19,514,651
18,522,326
18,157,004
17,785,508
17,563,535
5.4
%
11.1
%
PPP
49,174
114,849
226,114
435,042
850,618
(57.2
)%
(94.2
)%
Total Net Loans
$
19,563,825
$
18,637,175
$
18,383,118
$
18,220,550
$
18,414,153
5.0
%
6.2
%
Deposits, by type:
Noninterest-bearing demand
$
7,535,791
$
7,647,618
$
7,431,235
$
7,516,656
$
7,439,644
(1.5
)%
1.3
%
Interest-bearing demand
5,708,059
5,597,975
5,664,987
5,933,780
6,168,908
2.0
%
(7.5
)%
Savings
6,681,713
6,425,634
6,436,548
6,413,638
6,392,537
4.0
%
4.5
%
Total demand and savings
19,925,563
19,671,227
19,532,770
19,864,074
20,001,089
1.3
%
(0.4
)%
Brokered
247,105
244,200
250,350
256,192
270,168
1.2
%
(8.5
)%
Time
1,615,384
1,608,286
1,697,063
1,756,672
1,852,223
0.4
%
(12.8
)%
Total Deposits
$
21,788,052
$
21,523,713
$
21,480,183
$
21,876,938
$
22,123,480
1.2
%
(1.5
)%
Short-term borrowings, by type:
Customer funding
$
483,429
$
443,970
$
423,949
$
474,022
$
494,811
8.9
%
(2.3
)%
Federal funds purchased
96,965
2,857
—
—
—
N/M
N/M
Short-term FHLB advances and other
borrowings
17,489
11
—
—
—
N/M
N/M
Total Short-Term borrowings
$
597,883
$
446,838
$
423,949
$
474,022
$
494,811
33.8
%
20.8
%
(1) Consists of overdrafts and net
origination fees and costs.
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE
SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Nine months ended September
30
2022
2021
Average
Interest
Yield/
Average
Interest
Yield/
Balance
(1)
Rate
Balance
(1)
Rate
ASSETS
Interest-earning assets:
Net loans
$
18,865,672
$
524,150
3.71
%
$
18,765,024
$
485,330
3.46
%
Investment securities
4,376,084
78,334
2.39
%
3,589,357
63,902
2.37
%
Loans held for sale
16,898
694
5.48
%
40,551
969
3.19
%
Other interest-earning assets
937,369
4,498
0.64
%
1,986,161
4,599
0.18
%
Total Interest-Earning Assets
24,196,023
607,676
3.35
%
24,381,093
554,799
3.04
%
Noninterest-Earning assets:
Cash and due from banks
158,267
150,435
Premises and equipment
220,218
229,513
Other assets
1,534,314
1,689,094
Less: ACL - loans(2)
(253,725
)
(268,412
)
Total Assets
$
25,855,097
$
26,181,723
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-Bearing liabilities:
Demand deposits
$
5,657,165
$
3,411
0.08
%
$
5,994,878
$
2,905
0.06
%
Savings deposits
6,515,529
5,561
0.11
%
6,271,019
3,944
0.08
%
Brokered deposits
254,100
2,181
1.14
%
297,250
876
0.39
%
Time deposits
1,633,053
10,299
0.84
%
2,001,043
16,383
1.09
%
Total Interest-Bearing Deposits
14,059,847
21,452
0.20
%
14,564,190
24,108
0.22
%
Short-term borrowings
490,194
1,459
0.40
%
526,259
456
0.12
%
Long-term borrowings
643,330
18,357
3.81
%
839,396
23,006
3.66
%
Total Interest-Bearing
Liabilities
15,193,371
41,268
0.36
%
15,929,845
47,570
0.40
%
Noninterest-Bearing liabilities:
Demand deposits
7,538,597
7,108,199
Other
515,615
466,917
Total Liabilities
23,247,583
23,504,961
Total Deposits/Cost of Deposits
21,598,444
0.13
%
21,672,389
0.15
%
Total interest-bearing liabilities and
non-interest bearing deposits ("Cost of Funds")
22,731,968
0.24
%
23,038,044
0.28
%
Shareholders' equity
2,607,514
2,676,762
Total Liabilities and Shareholders'
Equity
$
25,855,097
$
26,181,723
Net interest income/net interest margin
(fully taxable equivalent)
566,408
3.13
%
507,229
2.78
%
Tax equivalent adjustment
(10,685
)
(9,111
)
Net Interest Income
$
555,723
$
498,118
(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 SHORT-TERM
BORROWINGS DETAIL (UNAUDITED):
dollars in thousands
Nine months ended September
30
2022
2021
% Change
Loans, by type:
Real estate - commercial mortgage
$
7,401,094
$
7,146,951
3.6
%
Commercial and industrial
4,075,838
3,943,736
3.3
%
Real estate - residential mortgage
4,143,850
3,409,381
21.5
%
Real estate - home equity
1,099,310
1,147,444
(4.2
)%
Real estate - construction
1,197,947
1,065,125
12.5
%
Consumer
532,396
454,434
17.2
%
Equipment lease financing
247,674
256,741
(3.5
)%
Other(1)
38,165
(10,292
)
N/M
Net loans before PPP
18,736,274
17,413,520
7.6
%
PPP
129,398
1,351,504
(90.4
)%
Total Net Loans
$
18,865,672
$
18,765,024
0.5
%
Deposits, by type:
Noninterest-bearing demand
$
7,538,597
$
7,108,199
6.1
%
Interest-bearing demand
5,657,165
5,994,878
(5.6
)%
Savings
6,515,529
6,271,019
3.9
%
Total demand and savings
19,711,291
19,374,096
1.7
%
Brokered
254,100
297,250
(14.5
)%
Time
1,633,053
2,001,043
(18.4
)%
Total Deposits
$
21,598,444
$
21,672,389
(0.3
)%
Short-term borrowings, by type:
Customer funding
450,667
526,259
(14.4
)%
Federal funds purchased
33,629
—
N/M
Short-term FHLB advances and other
borrowings
5,898
—
N/M
Total Short-Term Borrowings
$
490,194
$
526,259
(6.9
)%
N/M - Not meaningful
(1) Consists of overdrafts and net
origination fees and costs.
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION
(UNAUDITED)
dollars in thousands
Three months ended
Nine Month Ended
Sep 30
Jun 30
Mar 31
Dec 31
Sep 30
Sep 30
Sep 30
2022
2022
2022
2021
2021
2022
2021
Allowance for credit losses related to
net loans:
Balance at beginning of period
$
248,564
$
243,705
$
249,001
$
256,727
$
255,032
$
249,001
$
277,567
CECL Day 1 provision expense
7,954
—
—
—
—
7,954
—
Purchased credit deteriorated loans
1,135
—
—
—
—
1,135
—
Loans charged off:
Commercial and industrial
(1,783
)
(201
)
(227
)
(9,417
)
(647
)
(2,211
)
(5,920
)
Real estate - commercial mortgage
(86
)
—
(152
)
(369
)
(14
)
(238
)
(8,357
)
Consumer and home equity
(1,172
)
(877
)
(1,052
)
(828
)
(504
)
(3,101
)
(2,481
)
Real estate - residential mortgage
—
(66
)
—
—
(602
)
(66
)
(1,290
)
Real estate - construction
—
—
—
—
—
—
(39
)
Equipment lease financing and other
(683
)
(474
)
(469
)
(380
)
(467
)
(1,626
)
(1,871
)
Total loans charged off
(3,724
)
(1,618
)
(1,900
)
(10,994
)
(2,234
)
(7,242
)
(19,958
)
Recoveries of loans previously charged
off:
Commercial and industrial
2,213
739
1,980
5,795
2,330
4,932
3,792
Real estate - commercial mortgage
29
3,536
112
1,007
564
3,677
1,467
Consumer and home equity
682
762
454
767
504
1,898
1,578
Real estate - residential mortgage
101
92
222
89
86
415
286
Real estate - construction
—
12
32
77
697
44
1,335
Equipment lease financing and other
247
226
154
283
358
627
670
Recoveries of loans previously charged
off
3,272
5,367
2,954
8,018
4,539
11,593
9,128
Net loans recovered (charged
off)
(452
)
3,749
1,054
(2,976
)
2,305
4,351
(10,830
)
Provision for credit losses
9,637
1,110
(6,350
)
(4,750
)
(610
)
4,397
(10,010
)
Balance at end of period
$
266,838
$
248,564
$
243,705
$
249,001
$
256,727
$
266,838
$
256,727
Net (recoveries) charge offs to average
loans (annualized)
0.01
%
(0.08
)%
(0.02
)%
0.07
%
(0.05
)%
(0.05
)%
0.08
%
Allowance credit losses related to OBS
Credit Exposures(1)
Balance at beginning of period
$
14,323
$
13,933
$
14,533
$
14,783
$
14,773
Provision for credit losses
1,367
390
(600
)
(250
)
10
Balance at end of period
$
15,690
$
14,323
$
13,933
$
14,533
$
14,783
NON-PERFORMING ASSETS:
Non-accrual loans
$
178,204
$
162,530
$
136,799
$
143,666
$
138,833
Loans 90 days past due and accruing
14,559
11,016
24,182
8,453
11,389
Total non-performing loans
192,763
173,546
160,981
152,119
150,222
Other real estate owned
5,877
4,786
2,014
1,817
1,896
Total non-performing assets
$
198,640
$
178,332
$
162,995
$
153,936
$
152,118
NON-PERFORMING LOANS, BY TYPE:
Commercial and industrial
$
29,831
$
44,713
$
30,193
$
30,629
$
32,697
Real estate - commercial mortgage
96,281
59,940
64,190
54,044
52,100
Real estate - residential mortgage
41,597
42,922
39,308
39,399
37,077
Consumer and home equity
10,016
10,552
11,465
11,505
11,509
Real estate - construction
1,456
1,357
672
901
965
Equipment lease financing and other
13,582
14,062
15,153
15,641
15,874
Total non-performing loans
$
192,763
$
173,546
$
160,981
$
152,119
$
150,222
(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, 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
Sep 30
Jun 30
Mar 31
Dec 31
Sep 30
2022
2022
2022
2021
2021
Operating net income available to
common shareholders
Net income available to common
shareholders
$
68,309
$
67,427
$
61,726
$
59,325
$
73,021
Plus: Core deposit intangible
amortization, net of tax
406
—
—
—
—
Plus: Merger-related expenses, net of
tax
5,535
811
317
—
—
Plus: CECL day 1 provision expense, net of
tax
6,283
—
—
—
—
Operating net income available to common
shareholders (numerator)
$
80,533
$
68,238
$
62,043
$
59,325
$
73,021
Weighted average shares (diluted)
(denominator)
168,781
162,075
161,991
162,355
163,456
Operating net income available to common
shareholders, per share (diluted)
$
0.48
$
0.42
$
0.38
$
0.37
$
0.45
Common shareholders' equity (tangible),
per share
Shareholders' equity
$
2,471,159
$
2,471,093
$
2,569,535
$
2,712,680
$
2,699,818
Less: Preferred stock
(192,878
)
(192,878
)
(192,878
)
(192,878
)
(192,878
)
Less: Goodwill and intangible assets
(561,495
)
(537,700
)
(537,877
)
(538,053
)
(536,697
)
Tangible common shareholders' equity
(numerator)
$
1,716,786
$
1,740,515
$
1,838,780
$
1,981,749
$
1,970,243
Shares outstanding, end of period
(denominator)
167,399
161,057
160,669
160,490
161,429
Common shareholders' equity (tangible),
per share
$
10.26
$
10.81
$
11.44
$
12.35
$
12.21
Operating return on average
assets
Net income
$
70,871
$
69,989
$
64,288
$
61,887
$
75,583
Plus: Core deposit intangible
amortization, net of tax
406
—
—
—
—
Plus: Merger-related expenses, net of
tax
5,535
811
317
—
—
Plus: CECL day 1 provision expense, net of
tax
6,283
—
—
—
—
Operating net income (numerator)
$
83,095
$
70,800
$
64,605
$
61,887
$
75,583
Total average assets (denominator)
$
26,357,095
$
25,578,432
$
25,622,462
$
26,136,536
$
26,440,876
Operating return on average assets,
annualized
1.25
%
1.11
%
1.02
%
0.94
%
1.13
%
Return on average common shareholders'
equity (tangible)
Net income available to common
shareholders
$
68,309
$
67,427
$
61,726
$
59,325
$
73,021
Plus: Merger-related expenses, net of
tax
5,535
811
317
—
—
Plus: CECL day 1 provision expense, net of
tax
6,283
—
—
—
—
Plus: Intangible amortization, net of
tax
545
140
138
114
118
Operating net income available to common
shareholders (numerator)
$
80,672
$
68,378
$
62,181
$
59,439
$
73,139
Average shareholders' equity
$
2,604,057
$
2,531,346
$
2,688,834
$
2,713,198
$
2,722,833
Less: Average preferred stock
(192,878
)
(192,878
)
(192,878
)
(192,878
)
(192,878
)
Less: Average goodwill and intangible
assets
(562,285
)
(537,786
)
(537,976
)
(536,638
)
(536,772
)
Average tangible common shareholders'
equity (denominator)
$
1,848,894
$
1,800,682
$
1,957,980
$
1,983,682
$
1,993,183
Return on average common shareholders'
equity (tangible), annualized
17.31
%
15.23
%
12.88
%
11.89
%
14.56
%
Three months ended
Sep 30
Jun 30
Mar 31
Dec 31
Sep 30
2022
2022
2022
2021
2021
Tangible common equity to tangible
assets (TCE Ratio)
Shareholders' equity
$
2,471,159
$
2,471,093
$
2,569,535
$
2,712,680
$
2,699,818
Less: Preferred stock
(192,878
)
(192,878
)
(192,878
)
(192,878
)
(192,878
)
Less: Goodwill and intangible assets
(561,495
)
(537,700
)
(537,877
)
(538,053
)
(536,697
)
Tangible common shareholders' equity
(numerator)
$
1,716,786
$
1,740,515
$
1,838,780
$
1,981,749
$
1,970,243
Total assets
$
26,146,042
$
25,252,686
$
25,598,310
$
25,796,398
$
26,390,832
Less: Goodwill and intangible assets
(561,495
)
(537,700
)
(537,877
)
(538,053
)
(536,697
)
Total tangible assets (denominator)
$
25,584,547
$
24,714,986
$
25,060,433
$
25,258,345
$
25,854,135
Tangible common equity to tangible
assets
6.71
%
7.04
%
7.34
%
7.85
%
7.62
%
Tangible common equity to tangible
assets (TCE Ratio) excluding AOCI
Shareholders' equity
$
2,471,159
$
2,471,093
$
2,569,535
$
2,712,680
$
2,699,818
Less: Preferred stock
(192,878
)
(192,878
)
(192,878
)
(192,878
)
(192,878
)
Less: Accumulated other comprehensive
income (loss)
(442,947
)
(304,210
)
(158,855
)
27,411
25,615
Less: Goodwill and intangible assets
(561,495
)
(537,700
)
(537,877
)
(538,053
)
(536,697
)
Tangible common shareholders' equity
(numerator)
$
2,159,733
$
2,044,725
$
1,997,635
$
1,954,338
$
1,944,628
Total assets
$
26,146,042
$
25,252,686
$
25,598,310
$
25,796,398
$
26,390,832
Less: Goodwill and intangible assets
(561,495
)
(537,700
)
(537,877
)
(538,053
)
(536,697
)
Plus: AOCI - unrealized losses/(gains) on
AFS investments securities
368,196
249,424
112,965
(40,444
)
(41,787
)
Total tangible assets (denominator)
$
25,952,743
$
24,964,410
$
25,173,398
$
25,217,901
$
25,812,348
Tangible common equity to tangible assets,
excluding AOCI
8.32
%
8.19
%
7.94
%
7.75
%
7.53
%
Efficiency ratio
Non-interest expense
$
169,558
$
149,730
$
145,978
$
154,019
$
144,596
Less: Amortization of tax credit
investments
(696
)
(696
)
(696
)
(1,547
)
(1,546
)
Less: Merger-related expenses
(7,006
)
(1,027
)
(401
)
—
—
Less: Intangible amortization
(690
)
(177
)
(176
)
(146
)
(150
)
Less: Debt extinguishment costs
—
—
—
(674
)
—
Non-interest expense (numerator)
$
161,166
$
147,830
$
144,705
$
151,652
$
142,900
Net interest income
$
215,582
$
178,831
$
161,310
$
165,613
$
171,270
Tax equivalent adjustment
3,970
3,427
3,288
3,184
3,114
Plus: Total non-interest income
59,162
58,391
55,256
63,881
62,577
Less: Investment securities (gains)
losses, net
53
(8
)
(19
)
(5
)
—
Total revenue (denominator)
$
278,767
$
240,641
$
219,835
$
232,673
$
236,961
Efficiency ratio
57.8
%
61.4
%
65.8
%
65.2
%
60.3
%
Operating non-interest expenses to
total average assets (annualized)
Non-interest expense
$
169,558
$
149,730
$
145,978
$
154,019
$
144,596
Less: Amortization of tax credit
investments
(696
)
(696
)
(696
)
(1,547
)
(1,546
)
Less: Intangible amortization
(690
)
(177
)
(176
)
(146
)
(150
)
Less: Merger-related expenses
(7,006
)
(1,027
)
(401
)
—
—
Less: Debt extinguishment costs
—
—
—
(674
)
—
Non-interest expense (numerator)
$
161,166
$
147,830
$
144,705
$
151,652
$
142,900
Total average assets (denominator)
$
26,357,095
$
25,578,432
$
25,622,462
$
26,136,536
$
26,440,876
Operating non-interest expenses to total
average assets, (annualized)
2.43
%
2.32
%
2.29
%
2.30
%
2.14
%
Three months ended
Sep 30
Jun 30
Mar 31
Dec 31
Sep 30
2022
2022
2022
2021
2021
Asset Quality, excluding PPP
Net loans recovered (charged-off)
(numerator)
$
(452
)
$
3,749
$
1,054
$
(2,976
)
$
2,305
Average net loans
$
19,563,825
$
18,637,175
$
18,383,118
$
18,220,550
$
18,414,153
Less: Average PPP loans
(49,174
)
(114,849
)
(226,114
)
(435,042
)
(850,618
)
Total adjusted average loans
(denominator)
$
19,514,651
$
18,522,326
$
18,157,004
$
17,785,508
$
17,563,535
Net charge-offs (recoveries) to adjusted
average loans (annualized)
0.01
%
(0.08
)%
(0.02
)%
0.07
%
(0.05
)%
Non-performing loans (numerator)
$
192,763
$
173,546
$
160,981
$
152,119
$
150,222
Net loans
$
19,695,199
$
18,920,950
$
18,476,119
$
18,325,350
$
18,269,407
Less: PPP loans
(32,090
)
(72,423
)
(164,277
)
(301,253
)
(590,447
)
Total adjusted loans (denominator)
$
19,663,109
$
18,848,527
$
18,311,842
$
18,024,097
$
17,678,960
Non-performing loans to total adjusted
loans
0.98
%
0.92
%
0.88
%
0.84
%
0.85
%
ACL - loans (numerator)
$
266,838
$
248,564
$
243,705
$
249,001
$
256,727
Net loans
$
19,695,199
$
18,920,950
$
18,476,119
$
18,325,350
$
18,269,407
Less: PPP loans
(32,090
)
(72,423
)
(164,277
)
(301,253
)
(590,447
)
Total adjusted loans (denominator)
$
19,663,109
$
18,848,527
$
18,311,842
$
18,024,097
$
17,678,960
ACL - loans to total adjusted loans
1.36
%
1.32
%
1.33
%
1.38
%
1.45
%
Pre-provision net revenue
Net interest income
$
215,582
$
178,831
$
161,310
$
165,613
$
171,270
Non-interest income
59,162
58,391
55,256
63,881
62,577
Less: Investment securities (gains)
losses, net
53
(8
)
(19
)
(5
)
—
Total revenue
$
274,797
$
237,214
$
216,547
$
229,489
$
233,847
Non-interest expense
$
169,558
$
149,730
$
145,978
$
154,019
$
144,596
Less: Amortization on tax credit
investments
(696
)
(696
)
(696
)
(1,547
)
(1,546
)
Less: Merger-related expenses
(7,006
)
(1,027
)
(401
)
—
—
Less: Intangible amortization
(690
)
(177
)
(176
)
(146
)
(150
)
Less: Debt extinguishment
—
—
—
(674
)
—
Total non-interest expense
$
161,166
$
147,830
$
144,705
$
151,652
$
142,900
Pre-provision net revenue
$
113,631
$
89,384
$
71,842
$
77,837
$
90,947
Note: numbers may not sum due to
rounding.
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Media Contact: Laura Wakeley (717) 291-2616 Investor Contact:
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