Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the
“Corporation”) reported net income available to common shareholders
of $79.3 million, or $0.47 per diluted share, for the fourth
quarter of 2022, an increase of $11.0 million, or 16.0%, in
comparison to the third quarter of 2022. The Corporation reported
net income available to common shareholders of $276.7 million, or
$1.67 per diluted share, for the year ended December 31, 2022, an
increase of $11.5 million or 4.3%, in comparison to the year ended
December 31, 2021. The results for the third and fourth quarters of
2022 include the impact of the consummation of the acquisition by
the Corporation of Prudential Bancorp, Inc. ("Prudential Bancorp")
on July 1, 2022.
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“2022 was a record year for Fulton, as we continued to execute
on our strategy to Grow the bank, Deliver effectively for
customers, Operate with excellence, and Serve our stakeholders,”
said Curtis J. Myers, Chairman and CEO of Fulton Financial
Corporation. "I’m very proud of our team's results, especially
given the large number of strategic initiatives, we tackled,
including the Prudential Bancorp acquisition - our first whole-bank
acquisition in over a decade. Coming out of 2022, we are well
positioned for continued success in 2023."
Operating net income available to common shareholders was $81.2
million, or $0.48 per diluted share, for the fourth quarter of
2022, calculated as shown below.
Three months ended
(in thousands except per share data)
December 31, 2022
Net income available to common
shareholders
$79,271
Plus: Core deposit intangible
amortization
514
Plus: Merger-related expenses
1,894
Less: Tax impact of adjustments
(506)
Operating net income available to common
shareholders (numerator)
$81,173
Weighted average shares (diluted)
(denominator)
169,136
Operating net income available to common
shareholders per share (diluted)(1)
$0.48
(1) Non-GAAP financial measure.
Net Interest Income and Balance
Sheet
Net interest income for the fourth quarter of 2022 was $225.9
million, an increase of $10.3 million in comparison to the third
quarter of 2022. The net interest margin for the fourth quarter of
2022 increased 15 basis points, to 3.69%, in comparison to 3.54% in
the third quarter of 2022.
The linked-quarter increase in net interest income was primarily
due to rising interest rates resulting in increases in interest
income from net loans of $33.8 million. An increase in the average
balances for net loans of $440.7 million also contributed to the
increase in interest income. Interest expense from interest-bearing
liabilities for the fourth quarter of 2022 increased by $23.8
million to $41.9 million in comparison to $18.1 million in the
third quarter of 2022 primarily due to rising interest rates
resulting in increases in interest expense from interest-bearing
deposits and borrowings of $12.3 million and $11.5 million,
respectively. An increase in the average balance for borrowings of
$666.2 million in the fourth quarter of 2022 in comparison to the
third quarter of 2022 also contributed to the increase in interest
expense.
For the fourth quarter of 2022, net interest income was $225.9
million, an increase of $60.3 million, or 36.4%, in comparison to
the fourth quarter of 2021 primarily driven by rising interest
rates resulting in increases in interest income from net loans,
investment securities and other interest-earning assets of $81.6
million, $5.0 million and $3.5 million, respectively. Increases in
the average balances for net loans and investment securities of
$1,784.0 million and $408.4 million, respectively, driven in part
by the Prudential Bancorp acquisition, also contributed to the
increase in interest income. Interest expense from interest-bearing
liabilities for the fourth quarter of 2022 increased by $29.8
million to $41.9 million in comparison to $12.1 million in the
fourth quarter of 2021 primarily driven by rising interest rates
resulting in increases in interest expense from interest-bearing
deposits and borrowings of $16.5 million and $13.3 million,
respectively. An increase in the average balance for borrowings of
$928.4 million in the fourth quarter of 2022 in comparison to the
fourth quarter of 2021 also contributed to the increase in interest
expense.
Total average interest-earning assets for the fourth quarter of
2022 was $24.8 billion, an increase of $99.2 million from the third
quarter of 2022 primarily driven by the aforementioned increases in
average net loans of $440.7 million, partially offset by decreases
in average investment securities and average other interest-earning
assets of $169.8 million and $171.9 million, respectively.
Total average interest-earning assets for the fourth quarter of
2022 increased by $516.9 million from the fourth quarter of 2021
driven in part by the Prudential Bancorp acquisition. Average net
loans for the fourth quarter of 2022 were $20.0 billion, an
increase of $1.8 billion from the same period in 2021. Included in
average net loans for the fourth quarter of 2022 were Paycheck
Protection Program ("PPP") loans with an average balance of $25.5
million, a decrease of $409.5 million from the fourth quarter of
2021. Compared to the fourth quarter of 2021, average other
interest-earning assets decreased $1,649.6 million and average
investment securities increased $408.4 million.
Total average interest-bearing liabilities increased $130.7
million, to $15.7 billion, in the fourth quarter of 2022 in
comparison to $15.6 billion in the third quarter of 2022 driven by
an increase in the average balance for borrowings of $666.2
million, partially offset by a decrease in the average balance for
total interest-bearing deposits of $535.4 million.
Total average interest-bearing liabilities for the fourth
quarter of 2022 increased $285.0 million in comparison to $15.5
billion in the fourth quarter of 2021, driven by an increase in the
average balance for borrowings of $928.4 million, partially offset
by a decrease in the average balance for total interest-bearing
deposits of $643.5 million.
Asset Quality
In the fourth quarter of 2022, a provision for credit losses of
$14.5 million was recorded in comparison to a provision for credit
losses of $19.0 million in the third quarter of 2022, and a
negative provision for credit losses of $5.0 million in the fourth
quarter of 2021. Included in the third quarter of 2022 provision
for credit losses was a CECL Day 1 provision for credit losses of
$8.0 million for the acquired Prudential Bancorp loan portfolio.
Excluding the CECL Day 1 Provision, the third quarter of 2022
provision for credit losses was $11.0 million. Excluding the CECL
Day 1 Provision, the linked-quarter increase in the provision for
credit losses of $3.5 million was primarily due to loan growth and
changes to the macroeconomic outlook.
Non-performing assets were $177.7 million, or 0.66% of total
assets, at December 31, 2022, in comparison to $198.6 million, or
0.76% at September 30, 2022, and $153.9 million, or 0.60% of total
assets, at December 31, 2021.
Net charge-offs for the fourth quarter of 2022 were 0.23% of
total average loans in comparison to 0.01% and 0.07% in the third
quarter of 2022 and the fourth quarter of 2021, respectively. Net
charge-offs of $11.7 million for the fourth quarter of 2022 were
primarily due to a charge-off for a commercial office loan due to
credit-related concerns.
Non-interest Income
Non-interest income before investment securities gains in the
fourth quarter of 2022 was $54.3 million, a decrease of $4.9
million, or 8.3%, from the third quarter of 2022. The decrease in
non-interest income was driven primarily by decreases in mortgage
banking income, commercial customer swap fees, reflected in capital
markets, overdraft fees and cash management fees of $1.6 million,
$1.3 million, $1.1 million and $0.7 million, respectively.
Compared to the fourth quarter of 2021, non-interest income
before investment securities gains in the fourth quarter of 2022
decreased $9.6 million, or 15.0%, from $63.9 million. The decrease
in non-interest income was primarily due to decreases of $5.1
million in mortgage banking income, $3.8 million in other income,
primarily due to a decline from equity method investments of $4.1
million, and $0.8 million in wealth management revenues.
Non-interest Expense
Non-interest expense, excluding merger-related expenses of $1.9
million, was $166.6 million in the fourth quarter of 2022, an
increase of $4.0 million, or 2.5%, compared to $162.6 million,
excluding merger-related expenses of $7.0 million, in the third
quarter of 2022. The increase was primarily due to increases of
$1.5 million in other outside services expense, $0.6 million in
professional fees, $0.5 million in marketing expense, and $1.6
million for a contingent liability, $0.8 million for branch-related
closures and $0.6 million in fraud-related losses which are
reflected in other non-interest expenses, partially offset by a
$1.6 million decrease in salaries and employee benefits
expense.
Compared to the fourth quarter of 2021, non-interest expense,
excluding merger-related expenses of $1.9 million, increased $12.5
million, or 8.1%, in the fourth quarter of 2022 primarily due to
increases of $7.2 million in salaries and employee benefits
expense, $1.2 million in other outside services expense, $1.0
million in professional fees, $0.9 million in marketing expense,
$0.8 million in data processing and software expense, $0.5 million
in intangible asset amortization expense related to the acquisition
of Prudential Bancorp, and $0.8 million for branch-related closures
reflected in other non-interest expense.
Income Tax Expense
For the full-year 2022, the effective tax rate was 17.3%, in
comparison to 17.6% for the full-year of 2021.
Additional information on Fulton is available on the Internet at
www.fultonbank.com.
Safe Harbor Statement
This press release may contain forward-looking statements with
respect to the Corporation’s financial condition, results of
operations and business. Do not unduly rely on forward-looking
statements. Forward-looking statements can be identified by the use
of words such as "may," "should," "will," "could," "estimates,"
"predicts," "potential," "continue," "anticipates," "believes,"
"plans," "expects," "future," "intends," “projects,” the negative
of these terms and other comparable terminology. These
forward-looking statements may include projections of, or guidance
on, the Corporation’s future financial performance, expected levels
of future expenses, including future credit losses, anticipated
growth strategies, descriptions of new business initiatives and
anticipated trends in the Corporation’s business or financial
results.
Forward-looking statements are neither historical facts, nor
assurance of future performance. Instead, the statements are based
on current beliefs, expectations and assumptions regarding the
future of the Corporation’s business, future plans and strategies,
projections, anticipated events and trends, the economy and other
future conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of the Corporation’s control, and actual results
and financial condition may differ materially from those indicated
in the forward-looking statements. Therefore, you should not unduly
rely on any of these forward-looking statements. Any
forward-looking statement is based only on information currently
available and speaks only as of the date when made. The Corporation
undertakes no obligation, other than as required by law, to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
A discussion of certain risks and uncertainties affecting the
Corporation, and some of the factors that could cause the
Corporation's actual results to differ materially from those
described in the forward-looking statements, can be found in the
sections entitled "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the
Corporation’s Annual Report on Form 10-K for the year ended
December 31, 2021, Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2022, June 30, 2022 and September 30, 2022 and
other current and periodic reports, which have been or will be
filed with the Securities and Exchange Commission (the "SEC") and
are or will be available in the Investor Relations section of the
Corporation's website (www.fultonbank.com) and on the SEC's website
(www.sec.gov).
Non-GAAP Financial
Measures
The Corporation uses certain financial measures in this press
release that have been derived from methods other than generally
accepted accounting principles ("GAAP"). These non-GAAP financial
measures are reconciled to the most comparable GAAP measures in
tables at the end of this press release.
FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL
INFORMATION (UNAUDITED)
in thousands, except share data,
per-share data and percentages
Three months ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2022
2022
2022
2022
2021
Ending
Balances
Investments
$
3,968,023
$
3,936,694
$
4,117,801
$
4,288,674
$
4,167,774
Net loans
20,279,547
19,695,199
18,920,950
18,476,119
18,325,350
Total assets
26,931,702
26,146,042
25,252,686
25,598,310
25,796,398
Deposits
20,649,538
21,376,554
21,143,866
21,541,174
21,573,499
Shareholders' equity
2,579,757
2,471,159
2,471,093
2,569,535
2,712,680
Average
Balances
Investments
$
3,936,579
$
4,254,216
$
4,216,507
$
4,228,827
$
3,980,045
Net loans
20,004,513
19,563,825
18,637,175
18,383,118
18,220,550
Total assets
26,386,355
26,357,095
25,578,432
25,622,462
26,136,536
Deposits
21,027,656
21,788,052
21,523,713
21,480,183
21,876,938
Shareholders' equity
2,489,148
2,604,057
2,531,346
2,688,834
2,713,198
Income
Statement
Net interest income
$
225,911
$
215,582
$
178,831
$
161,310
$
165,613
Provision for credit losses
14,513
18,958
1,500
(6,950
)
(5,000
)
Non-interest income
54,321
59,162
58,391
55,256
63,881
Non-interest expense
168,462
169,558
149,730
145,978
154,019
Income before taxes
97,257
86,228
85,992
77,538
80,475
Net income available to common
shareholders
79,271
68,309
67,427
61,726
59,325
Pre-provision net revenue(1)
115,049
113,631
89,384
71,842
77,837
Per
Share
Net income available to common
shareholders (basic)
$
0.47
$
0.41
$
0.42
$
0.38
$
0.37
Net income available to common
shareholders (diluted)
$
0.47
$
0.40
$
0.42
$
0.38
$
0.37
Operating net income available to common
shareholders(1)
$
0.48
$
0.48
$
0.42
$
0.38
$
0.37
Cash dividends
$
0.21
$
0.15
$
0.15
$
0.15
$
0.22
Common shareholders' equity
$
14.24
$
13.61
$
14.15
$
14.79
$
15.70
Common shareholders' equity
(tangible)(1)
$
10.90
$
10.26
$
10.81
$
11.44
$
12.35
Weighted average shares (basic)
167,504
167,353
160,920
160,588
161,210
Weighted average shares (diluted)
169,136
168,781
162,075
161,911
162,355
(1) Non-GAAP financial measure. Refer to
the calculation on the page titled “Reconciliation of Non-GAAP
Measures” at the end of this press release.
Three months ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2022
2022
2022
2022
2021
Asset
Quality
Net (recoveries) charge offs to average
loans
0.23
%
0.01
%
(0.08
) %
(0.02
) %
0.07
%
Non-performing loans to total loans
0.85
%
0.98
%
0.92
%
0.87
%
0.83
%
Non-performing assets to total assets
0.66
%
0.76
%
0.71
%
0.64
%
0.60
%
ACL - loans(1) to total loans
1.33
%
1.35
%
1.31
%
1.32
%
1.36
%
ACL - loans(1) to non-performing loans
157
%
138
%
143
%
151
%
164
%
Asset Quality,
excluding PPP(2)(3)
Net (recoveries) charge offs to adjusted
average loans
0.23
%
0.01
%
(0.08
) %
(0.02
) %
0.07
%
Non-performing loans to total adjusted
loans
0.85
%
0.98
%
0.92
%
0.88
%
0.84
%
ACL - loans(1) to total adjusted loans
1.33
%
1.36
%
1.32
%
1.33
%
1.38
%
Profitability
Return on average assets
1.23
%
1.07
%
1.10
%
1.02
%
0.94
%
Operating return on average assets(2)
1.26
%
1.25
%
1.11
%
1.02
%
0.94
%
Return on average common shareholders'
equity
13.70
%
11.24
%
11.57
%
10.03
%
9.34
%
Return on average common shareholders'
equity (tangible)(2)
18.59
%
17.31
%
15.23
%
12.88
%
11.89
%
Net interest margin
3.69
%
3.54
%
3.04
%
2.78
%
2.77
%
Efficiency ratio(2)
58.1
%
57.8
%
61.4
%
65.8
%
65.2
%
Non-interest expenses to total average
assets
2.53
%
2.55
%
2.35
%
2.31
%
2.34
%
Operating non-interest expenses to total
average assets(2)
2.48
%
2.43
%
2.32
%
2.29
%
2.30
%
Capital
Ratios
Tangible common equity ratio
("TCE")(2)
6.9
%
6.7
%
7.0
%
7.3
%
7.8
%
TCE ratio, (excluding AOCI)(2)(5)
8.2
%
8.3
%
8.2
%
7.9
%
7.8
%
Tier 1 leverage ratio(4)
9.4
%
9.2
%
9.1
%
8.9
%
8.6
%
Common equity Tier 1 capital ratio(4)
10.0
%
10.0
%
9.9
%
10.0
%
9.9
%
Tier 1 risk-based capital ratio(4)
10.8
%
10.9
%
10.8
%
10.9
%
10.9
%
Total risk-based capital ratio(4)
13.5
%
13.6
%
13.7
%
13.8
%
14.1
%
(1) "ACL - loans" relates to the allowance
for credit losses ("ACL") specifically on "Net Loans" and does not
include the ACL related to off-balance-sheet ("OBS") credit
exposures.
(2) Non-GAAP financial measure. Refer to
the calculation on the page titled "Reconciliation of Non-GAAP
Measures" at the end of this press release.
(3) Asset quality information excluding
PPP loans.
(4) Regulatory capital ratios as of
December 31, 2022 are preliminary and prior periods are actual.
(5) Tangible common equity ("TCE") ratio,
excluding accumulated other comprehensive income ("AOCI")
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE
SHEETS (UNAUDITED)
dollars in thousands
% Change from
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
Sep 30
Dec 31
2022
2022
2022
2022
2021
2022
2021
ASSETS
Cash and due from banks
$
126,898
$
143,465
$
158,605
$
161,462
$
172,276
(11.5
) %
(26.3
) %
Other interest-earning assets
685,209
467,164
383,715
1,054,232
1,523,973
46.7
%
(55.0
) %
Loans held for sale
7,264
14,411
17,528
27,675
35,768
(49.6
) %
(79.7
) %
Investment securities
3,968,023
3,936,694
4,117,801
4,288,674
4,167,774
0.8
%
(4.8
) %
Net loans
20,279,547
19,695,199
18,920,950
18,476,119
18,325,350
3.0
%
10.7
%
Less: ACL - loans(1)
(269,366
)
(266,838
)
(248,564
)
(243,705
)
(249,001
)
(0.9
) %
(8.2
) %
Loans, net
20,010,181
19,428,361
18,672,386
18,232,414
18,076,349
3.0
%
10.7
%
Net, premises and equipment
225,141
221,496
211,639
218,257
220,357
1.6
%
2.2
%
Accrued interest receivable
91,579
72,821
64,457
55,102
57,451
25.8
%
59.4
%
Goodwill and intangible assets
560,824
561,495
537,700
537,877
538,053
(0.1
) %
4.2
%
Other assets
1,256,583
1,300,135
1,088,855
1,022,617
1,004,397
(3.3
) %
25.1
%
Total Assets
$
26,931,702
$
26,146,042
$
25,252,686
$
25,598,310
$
25,796,398
3.0
%
4.4
%
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits
$
20,649,538
$
21,376,554
$
21,143,866
$
21,541,174
$
21,573,499
(3.4
) %
(4.3
) %
Borrowings
2,871,207
1,424,681
1,013,315
1,008,934
1,038,109
101.5
%
N/M
Other liabilities
831,200
873,648
624,412
478,667
472,110
(4.9
) %
76.1
%
Total Liabilities
24,351,945
23,674,883
22,781,593
23,028,775
23,083,718
2.9
%
5.5
%
Shareholders' equity
2,579,757
2,471,159
2,471,093
2,569,535
2,712,680
4.4
%
(4.9
) %
Total Liabilities and Shareholders'
Equity
$
26,931,702
$
26,146,042
$
25,252,686
$
25,598,310
$
25,796,398
3.0
%
4.4
%
LOANS, DEPOSITS AND BORROWINGS
DETAIL:
Loans, by type:
Real estate - commercial mortgage
$
7,693,835
$
7,554,509
$
7,417,036
$
7,289,376
$
7,279,080
1.8
%
5.7
%
Commercial and industrial
4,452,606
4,208,775
4,098,552
3,992,285
3,906,791
5.8
%
14.0
%
Real estate - residential mortgage
4,737,279
4,574,228
4,203,827
3,946,741
3,846,750
3.6
%
23.2
%
Real estate - home equity
1,102,838
1,110,103
1,108,808
1,098,171
1,118,248
(0.7
) %
(1.4
) %
Real estate - construction
1,269,925
1,273,097
1,177,446
1,210,340
1,139,779
(0.2
) %
11.4
%
Consumer
699,179
633,666
538,747
481,551
464,657
10.3
%
50.5
%
Equipment lease financing
260,143
255,060
254,897
253,521
236,344
2.0
%
10.1
%
Other(2)
43,344
53,671
49,214
39,857
32,448
(19.2
) %
33.6
%
Net loans before PPP
20,259,149
19,663,109
18,848,527
18,311,842
18,024,097
3.0
%
12.4
%
PPP
20,398
32,090
72,423
164,277
301,253
(36.4
) %
(93.2
) %
Total Net Loans
$
20,279,547
$
19,695,199
$
18,920,950
$
18,476,119
$
18,325,350
3.0
%
10.7
%
Deposits, by type:
Noninterest-bearing demand
$
7,006,388
$
7,372,896
$
7,530,777
$
7,528,391
$
7,370,963
(5.0
) %
(4.9
) %
Interest-bearing demand
5,410,903
5,676,600
5,403,805
5,625,286
5,819,539
(4.7
) %
(7.0
) %
Savings
6,434,621
6,563,003
6,406,051
6,479,196
6,403,995
(2.0
) %
0.5
%
Total demand and savings
18,851,912
19,612,499
19,340,633
19,632,873
19,594,497
(3.9
) %
(3.8
) %
Brokered
208,416
226,883
243,172
248,833
251,526
(8.1
) %
(17.1
) %
Time
1,589,210
1,537,172
1,560,061
1,659,468
1,727,476
3.4
%
(8.0
) %
Total Deposits
$
20,649,538
$
21,376,554
$
21,143,866
$
21,541,174
$
21,573,499
(3.4
) %
(4.3
) %
Borrowings, by type:
Federal funds purchased
$
191,000
$
136,000
$
20,000
$
—
$
—
40.4
%
N/M
Federal Home Loan Bank advances
1,250,000
265,500
—
—
—
N/M
N/M
Senior debt and subordinated debt
539,634
539,461
555,748
555,594
620,406
—
%
(13.0
) %
Other borrowings
890,573
483,720
437,567
453,340
417,703
84.1
%
113.2
%
Total Borrowings
$
2,871,207
$
1,424,681
$
1,013,315
$
1,008,934
$
1,038,109
101.5
%
N/M
N/M - Not meaningful
(1) "ACL - loans" relates to the ACL
specifically on "Net Loans" and does not include the ACL related to
OBS credit exposures.
(2) Consists of overdrafts and net
origination fees and costs.
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (UNAUDITED)
dollars in thousands, except per
share
Three Months Ended
% Change from
Year Ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
Sep 30
Dec 31
Dec 31
2022
2022
2022
2022
2021
2022
2021
2022
2021
% Change
Interest Income:
Interest income
$
267,847
$
233,691
$
190,299
$
173,001
$
177,724
14.6
%
50.7
%
$
864,838
$
723,412
19.5
%
Interest expense
41,936
18,109
11,468
11,691
12,111
131.6
%
N/M
83,204
59,682
39.4
%
Net Interest Income
225,911
215,582
178,831
161,310
165,613
4.8
%
36.4
%
781,634
663,730
17.8
%
Provision for credit losses
14,513
18,958
1,500
(6,950
)
(5,000
)
(23.4
) %
N/M
28,021
(14,600
)
N/M
Net Interest Income after
Provision
211,398
196,624
177,331
168,260
170,613
7.5
%
23.9
%
753,613
678,330
11.1
%
Non-Interest Income:
Commercial banking:
Merchant and card
7,223
7,601
7,355
6,097
6,588
(5.0
) %
9.6
%
28,276
26,121
8.3
%
Cash management
5,756
6,483
6,062
5,428
5,318
(11.2
) %
8.2
%
23,729
20,865
13.7
%
Capital markets
2,627
4,060
3,893
1,676
2,982
(35.3
) %
(11.9
) %
12,256
9,381
30.6
%
Other commercial banking
2,998
2,664
3,049
2,807
3,592
12.5
%
(16.5
) %
11,518
12,322
(6.5
) %
Total commercial banking
18,604
20,808
20,359
16,008
18,480
(10.6
) %
0.7
%
75,779
68,689
10.3
%
Consumer banking:
Card
6,331
6,278
6,067
5,796
5,953
0.8
%
6.3
%
24,472
23,505
4.1
%
Overdraft
3,364
4,463
3,881
3,772
3,896
(24.6
) %
(13.7
) %
15,480
12,844
20.5
%
Other consumer banking
2,380
2,534
2,524
2,106
2,280
(6.1
) %
4.4
%
9,544
9,195
3.8
%
Total consumer banking
12,075
13,275
12,472
11,674
12,129
(9.0
) %
(0.4
) %
49,496
45,544
8.7
%
Wealth management
17,531
17,610
18,274
19,428
18,285
(0.4
) %
(4.1
) %
72,843
71,798
1.5
%
Mortgage banking
2,140
3,720
3,768
4,576
7,243
(42.5
) %
(70.5
) %
14,204
33,576
(57.7
) %
Other
3,972
3,802
3,510
3,551
7,739
4.5
%
(48.7
) %
14,835
20,622
(28.1
) %
Non-interest income before
investment securities gains
(losses)
54,322
59,215
58,383
55,237
63,876
(8.3
) %
(15.0
) %
227,157
240,229
(5.4
) %
Investment securities gains (losses),
net
(1
)
(53
)
8
19
5
98.1
%
(120.0
) %
(27
)
33,516
(100.1
) %
Total Non-Interest Income
54,321
59,162
58,391
55,256
63,881
(8.2
) %
(15.0
) %
227,130
273,745
(17.0
) %
Non-Interest Expense:
Salaries and employee benefits
92,733
94,283
85,404
84,464
85,506
(1.6
) %
8.5
%
356,884
329,138
8.4
%
Data processing and software
15,448
15,807
14,685
14,315
14,612
(2.3
) %
5.7
%
60,255
56,440
6.8
%
Net occupancy
14,061
14,025
13,587
14,522
14,366
0.3
%
(2.1
) %
56,195
53,799
4.5
%
Other outside services
10,860
9,361
8,764
8,167
9,637
16.0
%
12.7
%
37,152
34,194
8.7
%
Equipment
3,640
3,548
3,422
3,423
3,539
2.6
%
2.9
%
14,033
13,807
1.6
%
FDIC insurance
3,219
3,158
2,961
3,209
3,032
1.9
%
6.2
%
12,547
10,665
17.6
%
Professional fees
2,945
2,373
2,013
1,792
1,946
24.1
%
51.3
%
9,123
9,647
(5.4
) %
Marketing
2,380
1,859
1,326
1,320
1,477
28.0
%
61.1
%
6,885
5,275
30.5
%
Intangible amortization
688
690
177
176
146
(0.3
) %
N/M
1,731
589
N/M
Debt extinguishment
—
—
—
—
674
N/M
N/M
—
33,249
(100.0
) %
Merger-related expenses
1,894
7,006
1,027
401
—
(73.0
) %
N/M
10,328
—
N/M
Other
20,594
17,448
16,364
14,189
19,084
18.0
%
7.9
%
68,595
71,027
(3.4
) %
Total Non-Interest Expense
168,462
169,558
149,730
145,978
154,019
(0.6
) %
9.4
%
633,728
617,830
2.6
%
Income Before Income Taxes
97,257
86,228
85,992
77,538
80,475
12.8
%
20.9
%
347,015
334,245
3.8
%
Income tax expense
15,424
15,357
16,003
13,250
18,588
0.4
%
(17.0
) %
60,034
58,748
2.2
%
Net Income
81,833
70,871
69,989
64,288
61,887
15.5
%
32.2
%
286,981
275,497
4.2
%
Preferred stock dividends
(2,562
)
(2,562
)
(2,562
)
(2,562
)
(2,562
)
—
%
—
%
(10,248
)
(10,277
)
0.3
%
Net Income Available to
Common Shareholders
$
79,271
$
68,309
$
67,427
$
61,726
$
59,325
16.0
%
33.6
%
$
276,733
$
265,220
4.3
%
Three Months Ended
% Change from
Year Ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
Sep 30
Dec 31
Dec 31
2022
2022
2022
2022
2021
2022
2021
2022
2021
% Change
PER SHARE:
Net income available to common
shareholders:
Basic
$
0.47
$
0.41
$
0.42
$
0.38
$
0.37
14.6
%
27.0
%
$
1.69
$
1.63
3.7
%
Diluted
$
0.47
$
0.40
$
0.42
$
0.38
$
0.37
17.5
%
27.0
%
$
1.67
$
1.62
3.1
%
Cash dividends
$
0.21
$
0.15
$
0.15
$
0.15
$
0.22
40.0
%
(4.5
) %
$
0.66
$
0.64
3.1
%
Weighted average shares (basic)
167,504
167,353
160,920
160,588
161,210
0.1
%
3.9
%
164,119
162,233
1.2
%
Weighted average shares (diluted)
169,136
168,781
162,075
161,911
162,355
0.2
%
4.2
%
165,472
163,307
1.3
%
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE
SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Three months ended
December 31, 2022
September 30, 2022
December 31, 2021
Average
Yield/
Average
Yield/
Average
Yield/
Balance
Interest(1)
Rate
Balance
Interest(1)
Rate
Balance
Interest(1)
Rate
ASSETS
Interest-earning assets:
Net loans
$
20,004,513
$
241,453
4.80
%
$
19,563,825
$
207,343
4.21
%
$
18,220,550
$
159,057
3.47
%
Investment securities
4,330,635
27,781
2.56
%
4,500,461
28,022
2.49
%
3,922,197
22,424
2.29
%
Loans held for sale
9,264
171
7.39
%
9,098
194
8.51
%
35,235
333
3.77
%
Other interest-earning assets
450,818
2,752
2.43
%
622,673
2,103
1.34
%
2,100,392
(905
)
(0.19
) %
Total Interest-Earning Assets
24,795,230
272,157
4.36
%
24,696,057
237,662
3.83
%
24,278,374
180,909
2.96
%
Noninterest-Earning assets:
Cash and due from banks
149,472
152,349
211,958
Premises and equipment
223,245
223,880
226,319
Other assets
1,488,684
1,545,812
1,677,028
Less: ACL - loans(2)
(270,276
)
(261,003
)
(257,143
)
Total Assets
$
26,386,355
$
26,357,095
$
26,136,536
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-Bearing liabilities:
Demand deposits
$
5,479,443
$
4,589
0.33
%
$
5,708,059
$
1,886
0.13
%
$
5,933,780
$
756
0.05
%
Savings deposits
6,466,775
11,539
0.71
%
6,681,713
3,414
0.20
%
6,413,638
992
0.06
%
Brokered deposits
215,729
1,947
3.58
%
247,105
1,346
2.16
%
256,192
220
0.34
%
Time deposits
1,554,885
4,302
1.10
%
1,615,384
3,404
0.84
%
1,756,672
3,928
0.89
%
Total Interest-Bearing Deposits
13,716,832
22,377
0.65
%
14,252,261
10,050
0.28
%
14,360,282
5,896
0.16
%
Borrowings
2,025,522
19,559
3.83
%
1,359,348
8,060
2.38
%
1,097,095
6,216
2.29
%
Total Interest-Bearing
Liabilities
15,742,354
41,936
1.06
%
15,611,609
18,110
0.47
%
15,457,377
12,112
0.31
%
Noninterest-Bearing liabilities:
Demand deposits
7,310,824
7,535,791
7,516,656
Other
844,029
605,638
449,305
Total Liabilities
23,897,207
23,753,038
23,423,338
Total Deposits/Cost of Deposits
21,027,656
0.42
%
21,788,052
0.18
%
21,876,938
0.11
%
Total interest-bearing liabilities and
non-interest bearing deposits ("Cost of Funds")
23,053,178
0.72
%
23,147,400
0.31
%
22,974,033
0.21
%
Shareholders' equity
2,489,148
2,604,057
2,713,198
Total Liabilities and Shareholders'
Equity
$
26,386,355
$
26,357,095
$
26,136,536
Net interest income/net interest margin
(fully taxable equivalent)
230,221
3.69
%
219,552
3.54
%
168,797
2.77
%
Tax equivalent adjustment
(4,310
)
(3,970
)
(3,184
)
Net Interest Income
$
225,911
$
215,582
$
165,613
(1) Presented on a fully
taxable-equivalent basis using a 21% federal tax rate and statutory
interest expense disallowances.
(2) "ACL - loans" relates to the ACL
specifically on "Net Loans" and does not include the ACL related to
OBS credit exposures.
FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND BORROWINGS
DETAIL (UNAUDITED):
dollars in thousands
Three months ended
% Change from
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
Sep 30
Dec 31
2022
2022
2022
2022
2021
2022
2021
Loans, by type:
Real estate - commercial mortgage
$
7,696,997
$
7,566,259
$
7,340,417
$
7,294,914
$
7,157,906
1.7
%
7.5
%
Commercial and industrial
4,347,406
4,201,399
4,040,587
3,986,900
3,898,559
3.5
%
11.5
%
Real estate - residential mortgage
4,643,784
4,485,649
4,052,666
3,887,428
3,773,156
3.5
%
23.1
%
Real estate - home equity
1,106,325
1,099,487
1,118,494
1,106,319
1,122,042
0.6
%
(1.4
) %
Real estate - construction
1,209,998
1,268,590
1,188,932
1,137,649
1,117,592
(4.6
) %
8.3
%
Consumer
679,108
604,634
485,095
471,129
462,346
12.3
%
46.9
%
Equipment lease financing
255,291
252,810
253,659
236,388
238,349
1.0
%
7.1
%
Other(1)
40,075
35,823
42,476
36,277
15,558
11.9
%
N/M
Net loans before PPP
19,978,984
19,514,651
18,522,326
18,157,004
17,785,508
2.4
%
12.3
%
PPP
25,529
49,174
114,849
226,114
435,042
(48.1
) %
(94.1
) %
Total Net Loans
$
20,004,513
$
19,563,825
$
18,637,175
$
18,383,118
$
18,220,550
2.3
%
9.8
%
Deposits, by type:
Noninterest-bearing demand
$
7,310,824
$
7,535,791
$
7,647,618
$
7,431,235
$
7,516,656
(3.0
) %
(2.7
) %
Interest-bearing demand
5,479,443
5,708,059
5,597,975
5,664,987
5,933,780
(4.0
) %
(7.7
) %
Savings
6,466,775
6,681,713
6,425,634
6,436,548
6,413,638
(3.2
) %
0.8
%
Total demand and savings
19,257,042
19,925,563
19,671,227
19,532,770
19,864,074
(3.4
) %
(3.1
) %
Brokered
215,729
247,105
244,200
250,350
256,192
(12.7
) %
(15.8
) %
Time
1,554,885
1,615,384
1,608,286
1,697,063
1,756,672
(3.7
) %
(11.5
) %
Total Deposits
$
21,027,656
$
21,788,052
$
21,523,713
$
21,480,183
$
21,876,938
(3.5
) %
(3.9
) %
Borrowings, by type:
Federal funds purchased
$
261,737
$
96,965
$
2,857
$
—
$
—
N/M
N/M
Federal Home Loan Bank advances
564,692
206,152
—
—
—
N/M
N/M
Senior debt and subordinated debt
539,550
554,735
555,701
608,961
622,108
(2.7
) %
(13.3
) %
Other borrowings
659,543
501,496
445,261
424,854
474,987
31.5
%
38.9
%
Total Borrowings
$
2,025,522
$
1,359,348
$
1,003,819
$
1,033,815
$
1,097,095
49.0
%
84.6
%
(1) Consists of overdrafts and net
origination fees and costs.
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE
SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Year Ended December 31
2022
2021
Average
Yield/
Average
Yield/
Balance
Interest(1)
Rate
Balance
Interest(1)
Rate
ASSETS
Interest-earning assets:
Net loans
$
19,152,740
$
765,603
4.00
%
$
18,627,787
$
644,387
3.46
%
Investment securities
4,364,627
106,115
2.43
%
3,673,250
86,325
2.35
%
Loans held for sale
14,974
866
5.78
%
39,211
1,302
3.32
%
Other interest-earning assets
814,731
7,249
0.89
%
2,014,954
3,694
0.18
%
Total Interest-Earning Assets
24,347,072
879,833
3.61
%
24,355,202
735,708
3.02
%
Noninterest-Earning assets:
Cash and due from banks
156,050
165,942
Premises and equipment
220,982
228,708
Other assets
1,505,277
1,686,053
Less: ACL - loans(2)
(257,897
)
(265,572
)
Total Assets
$
25,971,484
$
26,170,333
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-Bearing liabilities:
Demand deposits
$
5,593,942
$
8,219
0.15
%
$
5,979,479
$
3,662
0.06
%
Savings deposits
6,458,165
16,642
0.26
%
6,306,967
4,936
0.08
%
Brokered deposits
262,359
4,097
1.56
%
286,901
1,096
0.38
%
Time deposits
1,617,804
14,871
0.92
%
1,939,446
20,311
1.05
%
Total Interest-Bearing Deposits
13,932,270
43,829
0.31
%
14,512,793
30,005
0.21
%
Total borrowings
1,358,357
39,375
2.89
%
1,297,963
29,677
2.29
%
Total Interest-Bearing
Liabilities
15,290,627
83,204
0.54
%
15,810,756
59,682
0.38
%
Noninterest-Bearing liabilities:
Demand deposits
7,522,304
7,211,153
Other
598,230
462,478
Total Liabilities
23,411,161
23,484,387
Total Deposits/Cost of Deposits
21,454,574
0.20
%
21,723,946
0.14
%
Total interest-bearing liabilities and
non-interest bearing deposits ("Cost of Funds")
22,812,931
0.36
%
23,021,909
0.26
%
Shareholders' equity
2,560,323
2,685,946
Total Liabilities and Shareholders'
Equity
$
25,971,484
$
26,170,333
Net interest income/net interest margin
(fully taxable equivalent)
796,629
3.27
%
676,026
2.78
%
Tax equivalent adjustment
(14,995
)
(12,296
)
Net Interest Income
$
781,634
$
663,730
(1) Presented on a fully
taxable-equivalent basis using a 21% federal tax rate and statutory
interest expense disallowances.
(2) "ACL - loans" relates to the ACL
specifically on "Net Loans" and does not include the ACL related to
OBS credit exposures.
FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND BORROWINGS
DETAIL (UNAUDITED):
dollars in thousands
Year Ended December 31
2022
2021
% Change
Loans, by type:
Real estate - commercial mortgage
$
7,523,806
$
7,149,712
5.2
%
Commercial and industrial
4,126,916
3,932,351
4.9
%
Real estate - residential mortgage
4,261,527
3,501,072
21.7
%
Real estate - home equity
1,101,142
1,141,042
(3.5
) %
Real estate - construction
1,178,550
1,078,350
9.3
%
Consumer
569,305
456,427
24.7
%
Equipment lease financing
249,595
252,104
(1.0
) %
Other(1)
38,682
(3,776
)
N/M
Net loans before PPP
19,049,523
17,507,282
8.8
%
PPP
103,217
1,120,505
(90.8
) %
Total Net Loans
$
19,152,740
$
18,627,787
2.8
%
Deposits, by type:
Noninterest-bearing demand
$
7,522,304
$
7,211,153
4.3
%
Interest-bearing demand
5,593,942
5,979,479
(6.4
) %
Savings
6,458,165
6,306,967
2.4
%
Total demand and savings
19,574,411
19,497,599
0.4
%
Brokered
262,359
286,901
(8.6
) %
Time
1,617,804
1,939,446
(16.6
) %
Total Deposits
$
21,454,574
$
21,723,946
(1.2
) %
Borrowings, by type:
Federal funds purchased
$
91,125
$
—
N/M
Federal Home Loan Bank advances
194,295
126,677
53.4
%
Senior debt and subordinated debt
564,337
657,386
(14.2
) %
Other borrowings
508,600
513,900
(1.0
) %
Total Borrowings
$
1,358,357
$
1,297,963
4.7
%
N/M - Not meaningful
(1) Consists of overdrafts and net
origination fees and costs.
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION
(UNAUDITED)
dollars in thousands
Three months ended
Year Ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
Dec 31
Dec 31
2022
2022
2022
2022
2021
2022
2021
Allowance for credit losses related to
net loans:
Balance at beginning of period
$
266,838
$
248,564
$
243,705
$
249,001
$
256,727
$
249,001
$
277,567
CECL Day 1 provision expense
—
7,954
—
—
—
7,954
—
Initial purchased credit deteriorated
loans
—
1,135
—
—
—
1,135
—
Loans charged off:
Commercial and industrial
(179
)
(1,783
)
(201
)
(227
)
(9,417
)
(2,390
)
(15,337
)
Real estate - commercial mortgage
(12,235
)
(86
)
—
(152
)
(369
)
(12,473
)
(8,726
)
Consumer and home equity
(1,311
)
(1,172
)
(877
)
(1,052
)
(828
)
(4,412
)
(3,309
)
Real estate - residential mortgage
—
—
(66
)
—
—
(66
)
(1,290
)
Real estate - construction
—
—
—
—
—
—
(39
)
Equipment lease financing and other
(505
)
(683
)
(474
)
(469
)
(380
)
(2,131
)
(2,251
)
Total loans charged off
(14,230
)
(3,724
)
(1,618
)
(1,900
)
(10,994
)
(21,472
)
(30,952
)
Recoveries of loans previously charged
off:
Commercial and industrial
961
2,213
739
1,980
5,795
5,893
9,587
Real estate - commercial mortgage
183
29
3,536
112
1,007
3,860
2,474
Consumer and home equity
683
682
762
454
767
2,581
2,345
Real estate - residential mortgage
10
101
92
222
89
425
375
Real estate - construction
530
—
12
32
77
574
1,412
Equipment lease financing and other
132
247
226
154
283
759
953
Recoveries of loans previously charged
off
2,499
3,272
5,367
2,954
8,018
14,092
17,146
Net loans recovered (charged
off)
(11,731
)
(452
)
3,749
1,054
(2,976
)
(7,380
)
(13,806
)
Provision for credit losses
14,259
9,637
1,110
(6,350
)
(4,750
)
18,656
(14,760
)
Balance at end of period
$
269,366
$
266,838
$
248,564
$
243,705
$
249,001
$
269,366
$
249,001
Net (recoveries) charge offs to average
loans
0.23
%
0.01
%
(0.08
) %
(0.02
) %
0.07
%
0.04
%
0.07
%
Provision for credit losses related to
OBS Credit Exposures
Provision for credit losses
$
254
$
1,367
$
390
($
600
)
($
250
)
NON-PERFORMING ASSETS:
Non-accrual loans
$
144,443
$
178,204
$
162,530
$
136,799
$
143,666
Loans 90 days past due and accruing
27,463
14,559
11,016
24,182
8,453
Total non-performing loans
171,906
192,763
173,546
160,981
152,119
Other real estate owned
5,790
5,877
4,786
2,014
1,817
Total non-performing assets
$
177,696
$
198,640
$
178,332
$
162,995
$
153,936
NON-PERFORMING LOANS, BY TYPE:
Commercial and industrial
$
28,288
$
29,831
$
44,713
$
30,193
$
30,629
Real estate - commercial mortgage
72,634
96,281
59,940
64,190
54,044
Real estate - residential mortgage
46,509
41,597
42,922
39,308
39,399
Consumer and home equity
9,800
10,016
10,552
11,465
11,505
Real estate - construction
1,368
1,456
1,357
672
901
Equipment lease financing and other
13,307
13,582
14,062
15,153
15,641
Total non-performing loans
$
171,906
$
192,763
$
173,546
$
160,981
$
152,119
FULTON FINANCIAL CORPORATION
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(dollars in thousands, except per share
data and percentages)
Explanatory note:
This press release contains supplemental
financial information, as detailed below, that has been derived by
methods other than Generally Accepted Accounting Principles
("GAAP"). The Corporation has presented these non-GAAP financial
measures because it believes that these measures provide useful and
comparative information to assess trends in the Corporation's
results of operations. Presentation of these non-GAAP financial
measures is consistent with how the Corporation evaluates its
performance internally and these non-GAAP financial measures are
frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in the
Corporation's industry. Management believes that these non-GAAP
financial measures, in addition to GAAP measures, are also useful
to investors to evaluate the Corporation's results. Investors
should recognize that the Corporation's presentation of these
non-GAAP financial measures might not be comparable to
similarly-titled measures of other companies. These non-GAAP
financial measures should not be considered a substitute for GAAP
basis measures, and the Corporation strongly encourages a review of
its condensed consolidated financial statements in their entirety.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP measure follow:
Three months ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2022
2022
2022
2022
2021
Operating net income available to
common shareholders
Net income available to common
shareholders
$
79,271
$
68,309
$
67,427
$
61,726
$
59,325
Plus: Core deposit intangible
amortization
514
514
—
—
—
Plus: Merger-related expenses
1,894
7,006
1,027
401
—
Plus: CECL Day 1 Provision expense
—
7,954
—
—
—
Less: Tax impact of adjustments
(506
)
(3,250
)
(216
)
(84
)
—
Operating net income available to common
shareholders (numerator)
$
81,173
$
80,533
$
68,238
$
62,043
$
59,325
Weighted average shares (diluted)
(denominator)
169,136
168,781
162,075
161,911
162,355
Operating net income available to common
shareholders, per share (diluted)
$
0.48
$
0.48
$
0.42
$
0.38
$
0.37
Common shareholders' equity (tangible),
per share
Shareholders' equity
$
2,579,757
$
2,471,159
$
2,471,093
$
2,569,535
$
2,712,680
Less: Preferred stock
(192,878
)
(192,878
)
(192,878
)
(192,878
)
(192,878
)
Less: Goodwill and intangible assets
(560,824
)
(561,495
)
(537,700
)
(537,877
)
(538,053
)
Tangible common shareholders' equity
(numerator)
$
1,826,055
$
1,716,786
$
1,740,515
$
1,838,780
$
1,981,749
Shares outstanding, end of period
(denominator)
167,599
167,399
161,057
160,669
160,490
Common shareholders' equity (tangible),
per share
$
10.90
$
10.26
$
10.81
$
11.44
$
12.35
Operating return on average
assets
Net income
$
81,833
$
70,871
$
69,989
$
64,288
$
61,887
Plus: Core deposit intangible
amortization
514
514
—
—
—
Plus: Merger-related expenses
1,894
7,006
1,027
401
—
Plus: CECL Day 1 Provision expense
—
7,954
—
—
—
Less: Tax impact of adjustments
(506
)
(3,250
)
(216
)
(84
)
—
Operating net income (numerator)
$
83,735
$
83,095
$
70,800
$
64,605
$
61,887
Total average assets (denominator)
$
26,386,355
$
26,357,095
$
25,578,432
$
25,622,462
$
26,136,536
Operating return on average assets
1.26
%
1.25
%
1.11
%
1.02
%
0.94
%
Return on average common shareholders'
equity (tangible)
Net income available to common
shareholders
$
79,271
$
68,309
$
67,427
$
61,726
$
59,325
Plus: Intangible amortization
688
690
177
176
146
Plus: Merger-related expenses
1,894
7006
1027
401
—
Plus: CECL Day 1 Provision expense
—
7,954
—
—
—
Less: Tax impact of adjustments
(542
)
(3,287
)
(253
)
(122
)
(32
)
Operating net income available to common
shareholders (numerator)
$
81,311
$
80,672
$
68,378
$
62,181
$
59,439
Average shareholders' equity
$
2,489,148
$
2,604,057
$
2,531,346
$
2,688,834
$
2,713,198
Less: Average preferred stock
(192,878
)
(192,878
)
(192,878
)
(192,878
)
(192,878
)
Less: Average goodwill and intangible
assets
(561,219
)
(562,285
)
(537,786
)
(537,976
)
(536,638
)
Average tangible common shareholders'
equity (denominator)
$
1,735,051
$
1,848,894
$
1,800,682
$
1,957,980
$
1,983,682
Return on average common shareholders'
equity (tangible)
18.59
%
17.31
%
15.23
%
12.88
%
11.89
%
Three months ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2022
2022
2022
2022
2021
Tangible common equity to tangible
assets (TCE Ratio)
Shareholders' equity
$
2,579,757
$
2,471,159
$
2,471,093
$
2,569,535
$
2,712,680
Less: Preferred stock
(192,878
)
(192,878
)
(192,878
)
(192,878
)
(192,878
)
Less: Goodwill and intangible assets
(560,824
)
(561,495
)
(537,700
)
(537,877
)
(538,053
)
Tangible common shareholders' equity
(numerator)
$
1,826,055
$
1,716,786
$
1,740,515
$
1,838,780
$
1,981,749
Total assets
$
26,931,702
$
26,146,042
$
25,252,686
$
25,598,310
$
25,796,398
Less: Goodwill and intangible assets
(560,824
)
(561,495
)
(537,700
)
(537,877
)
(538,053
)
Total tangible assets (denominator)
$
26,370,878
$
25,584,547
$
24,714,986
$
25,060,433
$
25,258,345
Tangible common equity to tangible
assets
6.92
%
6.71
%
7.04
%
7.34
%
7.85
%
Tangible common equity to tangible
assets (TCE Ratio) excluding AOCI
Shareholders' equity
$
2,579,757
$
2,471,159
$
2,471,093
$
2,569,535
$
2,712,680
Less: Preferred stock
(192,878
)
(192,878
)
(192,878
)
(192,878
)
(192,878
)
Less: Accumulated other comprehensive
income (loss)
(385,476
)
(442,947
)
(304,210
)
(158,855
)
27,411
Less: Goodwill and intangible assets
(560,824
)
(561,495
)
(537,700
)
(537,877
)
(538,053
)
Tangible common shareholders' equity
(numerator)
$
2,211,531
$
2,159,733
$
2,044,725
$
1,997,635
$
1,954,338
Total assets
$
26,931,702
$
26,146,042
$
25,252,686
$
25,598,310
$
25,796,398
Less: Goodwill and intangible assets
(560,824
)
(561,495
)
(537,700
)
(537,877
)
(538,053
)
Plus: AOCI - unrealized losses/(gains) on
AFS investments securities
632,456
368,196
249,424
112,965
(40,444
)
Total tangible assets (denominator)
$
27,003,334
$
25,952,743
$
24,964,410
$
25,173,398
$
25,217,901
Tangible common equity to tangible assets,
excluding AOCI
8.19
%
8.32
%
8.19
%
7.94
%
7.75
%
Efficiency ratio
Non-interest expense
$
168,462
$
169,558
$
149,730
$
145,978
$
154,019
Less: Amortization of tax credit
investments
(696
)
(696
)
(696
)
(696
)
(1,547
)
Less: Merger-related expenses
(1,894
)
(7,006
)
(1,027
)
(401
)
—
Less: Intangible amortization
(688
)
(690
)
(177
)
(176
)
(146
)
Less: Debt extinguishment costs
—
—
—
—
(674
)
Non-interest expense (numerator)
$
165,184
$
161,166
$
147,830
$
144,705
$
151,652
Net interest income
$
225,911
$
215,582
$
178,831
$
161,310
$
165,613
Tax equivalent adjustment
4,310
3,970
3,427
3,288
3,184
Plus: Total non-interest income
54,321
59,162
58,391
55,256
63,881
Less: Investment securities (gains)
losses, net
1
53
(8
)
(19
)
(5
)
Total revenue (denominator)
$
284,543
$
278,767
$
240,641
$
219,835
$
232,673
Efficiency ratio
58.1
%
57.8
%
61.4
%
65.8
%
65.2
%
Operating non-interest expenses to
total average assets
Non-interest expense
$
168,462
$
169,558
$
149,730
$
145,978
$
154,019
Less: Amortization of tax credit
investments
(696
)
(696
)
(696
)
(696
)
(1,547
)
Less: Intangible amortization
(688
)
(690
)
(177
)
(176
)
(146
)
Less: Merger-related expenses
(1,894
)
(7,006
)
(1,027
)
(401
)
—
Less: Debt extinguishment costs
—
—
—
—
(674
)
Non-interest expense (numerator)
$
165,184
$
161,166
$
147,830
$
144,705
$
151,652
Total average assets (denominator)
$
26,386,355
$
26,357,095
$
25,578,432
$
25,622,462
$
26,136,536
Operating non-interest expenses to total
average assets
2.48
%
2.43
%
2.32
%
2.29
%
2.30
%
Three months ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2022
2022
2022
2022
2021
Asset Quality, excluding PPP
Net loans recovered (charged-off)
(numerator)
$
(11,731
)
$
(452
)
$
3,749
$
1,054
$
(2,976
)
Average net loans
$
20,004,513
$
19,563,825
$
18,637,175
$
18,383,118
$
18,220,550
Less: Average PPP loans
(25,529
)
(49,174
)
(114,849
)
(226,114
)
(435,042
)
Total adjusted average loans
(denominator)
$
19,978,984
$
19,514,651
$
18,522,326
$
18,157,004
$
17,785,508
Net charge-offs (recoveries) to adjusted
average loans
0.23
%
0.01
%
(0.08
) %
(0.02
) %
0.07
%
Non-performing loans (numerator)
$
171,906
$
192,763
$
173,546
$
160,981
$
152,119
Net loans
$
20,279,547
$
19,695,199
$
18,920,950
$
18,476,119
$
18,325,350
Less: PPP loans
(20,398
)
(32,090
)
(72,423
)
(164,277
)
(301,253
)
Total adjusted loans (denominator)
$
20,259,149
$
19,663,109
$
18,848,527
$
18,311,842
$
18,024,097
Non-performing loans to total adjusted
loans
0.85
%
0.98
%
0.92
%
0.88
%
0.84
%
ACL - loans (numerator)
$
269,366
$
266,838
$
248,564
$
243,705
$
249,001
Net loans
$
20,279,547
$
19,695,199
$
18,920,950
$
18,476,119
$
18,325,350
Less: PPP loans
(20,398
)
(32,090
)
(72,423
)
(164,277
)
(301,253
)
Total adjusted loans (denominator)
$
20,259,149
$
19,663,109
$
18,848,527
$
18,311,842
$
18,024,097
ACL - loans to total adjusted loans
1.33
%
1.36
%
1.32
%
1.33
%
1.38
%
Pre-provision net revenue
Net interest income
$
225,911
$
215,582
$
178,831
$
161,310
$
165,613
Non-interest income
54,321
59,162
58,391
55,256
63,881
Less: Investment securities (gains)
losses, net
1
53
(8
)
(19
)
(5
)
Total revenue
$
280,233
$
274,797
$
237,214
$
216,547
$
229,489
Non-interest expense
$
168,462
$
169,558
$
149,730
$
145,978
$
154,019
Less: Amortization on tax credit
investments
(696
)
(696
)
(696
)
(696
)
(1,547
)
Less: Merger-related expenses
(1,894
)
(7,006
)
(1,027
)
(401
)
—
Less: Intangible amortization
(688
)
(690
)
(177
)
(176
)
(146
)
Less: Debt extinguishment
—
—
—
—
(674
)
Total non-interest expense
$
165,184
$
161,166
$
147,830
$
144,705
$
151,652
Pre-provision net revenue
$
115,049
$
113,631
$
89,384
$
71,842
$
77,837
Note: numbers may not sum due to
rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230117006074/en/
Media: Lacey Dean (717) 735-8688 Investor: Matt Jozwiak (717)
327-2657
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