Fulton Financial Corporation (NASDAQ: FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $70 million, or $0.43 per diluted share, for the first quarter of 2021.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210420006149/en/

"Fulton achieved solid financial performance during the first quarter, despite the continuing challenges brought about by COVID-19,” said E. Philip Wenger, Chairman and CEO of Fulton Financial Corporation. “We experienced record earnings per share, our mortgage business remained strong, our wealth management business grew to record highs, and asset quality remained stable. The balance sheet restructuring we announced in March had minimal net impact on our earnings in the first quarter, but it will meaningfully enhance our net interest income beginning in the second quarter and going forward.”

Net Interest Income and Balance Sheet

Net interest income for the first quarter of 2021 was $164 million, $3 million higher than the fourth quarter of 2020. Net interest margin for the first quarter of 2021 increased 4 basis points, to 2.79%, from 2.75% in the fourth quarter of 2020. The increases in net interest income and net interest margin in comparison to the fourth quarter of 2020 were primarily due to the forgiveness of Paycheck Protection Program ("PPP") loans and the acceleration of the recognition of related fee income as well as growth in average investment securities and other earning assets during the quarter.

Total average assets for the first quarter of 2021 were $26.1 billion, an increase of $333 million from the fourth quarter of 2020, driven by growth in other interest-earning assets and investment securities. Average loans, net of unearned income, were $19.0 billion, relatively unchanged compared to the fourth quarter of 2020. Average loans included loans originated under the PPP. Average PPP loans were $1.7 billion for the first quarter of 2021 compared to $1.8 billion for the fourth quarter of 2020. First quarter loan balances were impacted by the net effect of $579 million of PPP loans forgiven and $685 million of new loans originated under the third phase of the PPP in the first quarter of 2021 .

Average loans and yields, by type, for the first quarter of 2021 in comparison to the fourth quarter of 2020 are summarized in the following table:

 

Three months ended

 

 

 

March 31, 2021

 

December 31, 2020

 

Growth

 

Balance

 

Yield (1)

 

Balance

 

Yield (1)

 

$

 

%

 

(dollars in thousands)

Average Loans, net of unearned income, by type:

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,128,997

 

 

 

3.15

%

 

$

7,101,363

 

 

 

3.21

%

 

$

27,634

 

 

 

0.4

 

%

Commercial and industrial(2)

5,722,080

 

 

 

2.57

%

 

5,855,305

 

 

 

2.57

%

 

(133,225

)

 

 

(2.3

)

%

Real estate - residential mortgage

3,183,585

 

 

 

3.52

%

 

3,087,529

 

 

 

3.65

%

 

96,056

 

 

 

3.1

 

%

Real estate - home equity

1,175,218

 

 

 

3.75

%

 

1,212,113

 

 

 

3.91

%

 

(36,895

)

 

 

(3.0

)

%

Real estate - construction

1,054,718

 

 

 

3.09

%

 

1,009,284

 

 

 

3.11

%

 

45,434

 

 

 

4.5

 

%

Consumer

459,038

 

 

 

4.13

%

 

468,678

 

 

 

4.07

%

 

(9,640

)

 

 

(2.1

)

%

Equipment lease financing

266,405

 

 

 

4.11

%

 

279,059

 

 

 

3.98

%

 

(12,654

)

 

 

(4.5

)

%

Other(3)

(9,455

)

 

 

N/A

 

(18,817

)

 

 

N/A

 

9,362

 

 

 

(49.8

)

%

Total Average Loans, net of unearned income

$

18,980,586

 

 

 

3.53

%

 

$

18,994,514

 

 

 

3.45

%

 

$

(13,928

)

 

 

(0.1

)

%

 

 

 

 

 

 

 

 

 

 

 

 

(1) Presented on a fully-taxable equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances.

(2) Includes average PPP loans of $1.7 billion and $1.8 billion for the three months ended March 31, 2021 and December 31, 2020, respectively.

(3) Consists of overdrafts and net origination fees and costs.

 

 

 

 

 

 

 

 

 

 

 

 

Total average liabilities in the first quarter of 2021 increased $241 million, to $23.4 billion, from the fourth quarter of 2020 driven by increases in demand and savings deposits, partially offset by decreases in time deposits and short-term borrowings. Average deposits and interest rates, by type, for the first quarter of 2021 in comparison to the fourth quarter of 2020 are summarized in the following table:

 

Three months ended

 

 

 

March 31, 2021

 

December 31, 2020

 

Growth

 

Balance

 

Rate

 

Balance

 

Rate

 

$

 

%

 

(dollars in thousands)

Average Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

6,672,832

 

 

 

 

$

6,477,228

 

 

 

 

$

195,604

 

 

 

3.0

 

%

Interest-bearing demand

5,832,174

 

 

0.08

%

 

5,762,150

 

 

0.10

%

 

70,024

 

 

 

1.2

 

%

Savings

6,137,084

 

 

0.10

%

 

5,905,137

 

 

0.13

%

 

231,947

 

 

 

3.9

 

%

Total average demand and savings

18,642,090

 

 

0.06

%

 

18,144,515

 

 

0.07

%

 

497,575

 

 

 

2.7

 

%

Brokered

324,364

 

 

0.49

%

 

340,451

 

 

0.53

%

 

(16,087

)

 

 

(4.7

)

%

Time

2,150,570

 

 

1.23

%

 

2,306,556

 

 

1.39

%

 

(155,986

)

 

 

(6.8

)

%

Total Average Deposits

$

21,117,024

 

 

0.18

%

 

$

20,791,522

 

 

0.23

%

 

$

325,502

 

 

 

1.6

 

%

Asset Quality

In the first quarter of 2021 a reversal of provision of credit losses of $6 million was recognized, as compared to provisions for credit losses of $6 million, and $44 million for the fourth quarter of 2020 and first quarter of 2020, respectively. Several factors as of the end of the first quarter of 2021 in comparison to the end of the fourth quarter of 2020, including improved economic forecasts and a decrease in specific allocations within the allowance for credit losses for loans evaluated individually, reduced the level of the allowance for credit losses determined to be necessary at the end of the first quarter of 2021, resulting in the negative provision for credit losses.

The $44 million provision for credit losses in the first quarter of 2020 was driven primarily by assessment of the initial estimated impacts of the COVID-19 pandemic, as reflected in economic forecasts as of the end of the first quarter of 2020, on the level of expected credit losses.

Non-performing assets were $156 million, or 0.60% of total assets, at March 31, 2021, compared to $151 million, or 0.58% of total assets, and $147 million, or 0.64% of total assets at December 31, 2020 and March 31, 2020, respectively.

Annualized net charge-offs for the quarter ended March 31, 2021 were 0.13% of total average loans, compared to annualized net recoveries of 0.07% and annualized net charge-offs of 0.26% for the quarters ended December 31, 2020 and March 31, 2020, respectively.

Non-interest Income

Non-interest income in the first quarter of 2021, excluding investment securities gains, was $62 million, an increase of $6 million, or 11%, from the fourth quarter of 2020, primarily driven by increases of $5 million in mortgage banking income and $2 million in wealth management fees. The increase in mortgage banking income was due to a $6 million reversal of the valuation allowance for mortgage servicing assets.

Compared to the first quarter of 2020, non-interest income, excluding investment securities gains, in the first quarter of 2021 increased $7 million, or 13%, from $55 million, primarily driven by an $8 million increase in mortgage banking income, resulting from a combination of higher mortgage sales gains and a $6 million reversal of the mortgage servicing valuation allowance, both due to lower mortgage interest rates.

In the first quarter of 2021, Fulton completed a balance sheet restructuring involving gains on sales of Visa, Inc. Class B restricted shares of $34 million, which were offset in non-interest expense by corresponding debt extinguishment costs of $32 million, other securities losses of $0.4 million and a write-off of $1 million recognized in net interest income in connection with the purchase of certain of the Corporation's outstanding senior and subordinated notes and the prepayment of certain term Federal Home Loan Bank advances.

Non-interest Expense

Non-interest expense was $178 million in the first quarter of 2021, an increase of $24 million compared to the fourth quarter of 2020, which was driven by costs recognized during the first quarter of 2021 associated with the aforementioned balance sheet restructuring. In the fourth quarter of 2020, $15 million of charges, reflected in salaries and employee benefits and other expense, were recognized in connection with the cost saving initiatives announced in October 2020.

Compared to the first quarter of 2020, non-interest expense increased $36 million, or 25% in the first quarter of 2021, due primarily to costs associated with the previously mentioned balance sheet restructuring. Other increases were recognized in salaries and employee benefits and data processing and software, partially offset by lower professional fees.

Income Tax Expense

The effective income tax rate (ETR) for the first quarter of 2021 was 16%, as compared to 10% for both the fourth quarter of 2020 and first quarter of 2020. The increase was a result of higher income before income taxes.

Additional information on Fulton is available on the Internet at www.fult.com.

Safe Harbor Statement

This news release may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," “projects,” the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results.

Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, they are based on current beliefs, expectations and assumptions regarding the future of the Corporation’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation’s control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2020 and other current and periodic reports, which have been or will be filed with the Securities and Exchange Commission and are or will be available in the Investor Relations section of the Corporation's website (www.fult.com) and on the Securities and Exchange Commission's website (www.sec.gov).

Non-GAAP Financial Measures

The Corporation uses certain non-GAAP financial measures in this earnings release. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this release.

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

 

SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)

 

 

 

 

 

 

 

in thousands, except per-share data and percentages

 

 

 

 

 

 

 

 

Three months ended

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

2021

 

2020

 

2020

 

2020

 

2020

 

Ending Balances

 

 

 

 

 

 

 

 

 

 

Investments

$

3,612,010

 

 

 

$

3,340,424

 

 

$

3,097,721

 

 

$

2,974,813

 

 

$

3,141,440

 

 

Loans, net of unearned income

18,990,986

 

 

 

18,900,820

 

 

19,028,621

 

 

18,704,722

 

 

17,077,403

 

 

Total assets

25,892,990

 

 

 

25,906,733

 

 

25,543,281

 

 

24,617,863

 

 

22,929,859

 

 

Deposits

21,633,838

 

 

 

20,839,207

 

 

20,730,051

 

 

19,884,208

 

 

17,365,026

 

 

Shareholders' equity

2,629,655

 

 

 

2,616,828

 

 

2,390,261

 

 

2,340,501

 

 

2,285,748

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances

 

 

 

 

 

 

 

 

 

 

Investments

$

3,448,166

 

 

 

$

3,221,289

 

 

$

2,977,672

 

 

$

3,096,632

 

 

$

3,071,828

 

 

Loans, net of unearned income

18,980,586

 

 

 

18,994,514

 

 

18,880,519

 

 

18,331,797

 

 

16,860,067

 

 

Total assets

26,082,816

 

 

 

25,749,405

 

 

25,169,508

 

 

24,139,116

 

 

22,252,099

 

 

Deposits

21,117,024

 

 

 

20,791,522

 

 

20,388,447

 

 

19,276,658

 

 

17,121,428

 

 

Shareholders' equity

2,637,098

 

 

 

2,544,866

 

 

2,374,091

 

 

2,309,133

 

 

2,337,016

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement

 

 

 

 

 

 

 

 

 

 

Net interest income

$

164,448

 

 

 

$

161,591

 

 

$

154,116

 

 

$

152,754

 

 

$

160,746

 

 

Provision for credit losses

(5,500

)

 

 

6,240

 

 

7,080

 

 

19,570

 

 

44,030

 

 

Non-interest income

95,397

 

 

 

55,574

 

 

63,248

 

 

55,922

 

 

54,644

 

 

Non-interest expense

178,384

 

 

 

154,737

 

 

139,147

 

 

143,005.8

 

 

142,552

 

 

Income before taxes

86,961

 

 

 

56,187

 

 

71,137

 

 

46,101

 

 

28,808

 

 

Net income available to common shareholders

70,472

 

 

 

48,690

 

 

61,607

 

 

39,559

 

 

26,047

 

 

Pre-provision net revenue(1)

81,795

 

 

 

64,092

 

 

80,043

 

 

67,125

 

 

74,374

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (basic)

$

0.43

 

 

 

$

0.30

 

 

$

0.38

 

 

$

0.24

 

 

$

0.16

 

 

Net income available to common shareholders (diluted)

$

0.43

 

 

 

$

0.30

 

 

$

0.38

 

 

$

0.24

 

 

$

0.16

 

 

Cash dividends

$

0.14

 

 

 

$

0.17

 

 

$

0.13

 

 

$

0.13

 

 

$

0.13

 

 

Common shareholders' equity

$

14.99

 

 

 

$

14.93

 

 

$

14.74

 

 

$

14.45

 

 

$

14.16

 

 

Common shareholders' equity (tangible)(1)

$

11.69

 

 

 

$

11.62

 

 

$

11.44

 

 

$

11.15

 

 

$

10.84

 

 

Weighted average shares (basic)

162,441

 

 

 

162,242

 

 

162,061

 

 

161,715

 

 

163,475

 

 

Weighted average shares (diluted)

163,737

 

 

 

163,071

 

 

162,579

 

 

162,267

 

 

164,417

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Non-GAAP financial measure. Refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this document.

 

Three months ended

 

 

Mar 31

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

2021

2020

 

2020

 

2020

 

2020

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to average loans (annualized)

0.13

%

 

(0.07

)

%

 

(0.05

)

%

 

0.09

%

 

0.26

%

 

Non-performing loans to total loans

0.80

%

 

0.78

 

%

 

0.75

 

%

 

0.75

%

 

0.82

%

 

Non-performing assets to total assets

0.60

%

 

0.58

 

%

 

0.57

 

%

 

0.59

%

 

0.64

%

 

ACL - loans(2) to total loans

1.40

%

 

1.47

 

%

 

1.40

 

%

 

1.37

%

 

1.40

%

 

ACL - loans(2) to non-performing loans

174

%

 

189

 

%

 

188

 

%

 

183

%

 

170

%

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality, excluding PPP(1)(3)

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to average loans (annualized)

0.14

%

 

(0.08

)

%

 

(0.06

)

%

 

0.10

%

 

%

 

Non-performing loans to total adjusted loans

0.88

%

 

0.85

 

%

 

0.83

 

%

 

0.83

%

 

%

 

ACL - loans(2) to total adjusted loans

1.54

%

 

1.60

 

%

 

1.56

 

%

 

1.53

%

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

 

 

 

 

Return on average assets

1.14

%

 

0.79

 

%

 

0.97

 

%

 

0.66

%

 

0.47

%

 

Return on average shareholders' equity

11.24

%

 

7.95

 

%

 

10.32

 

%

 

6.89

%

 

4.48

%

 

Return on average common shareholders' equity (tangible)(1)

15.00

%

 

10.32

 

%

 

13.50

 

%

 

8.99

%

 

5.84

%

 

Net interest margin

2.79

%

 

2.75

 

%

 

2.70

 

%

 

2.81

%

 

3.21

%

 

Efficiency ratio(1)

63.0

%

 

62.5

 

%

 

62.3

 

%

 

66.4

%

 

64.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

Tangible common equity ratio(1)

7.5

%

 

7.4

 

%

 

7.4

 

%

 

7.5

%

 

7.8

%

 

Tier 1 leverage ratio(4)

8.3

%

 

8.2

 

%

 

7.4

 

%

 

7.6

%

 

7.9

%

 

Common equity Tier 1 capital ratio(4)

9.8

%

 

9.5

 

%

 

9.5

 

%

 

9.5

%

 

9.4

%

 

Tier 1 capital ratio(4)

10.8

%

 

10.5

 

%

 

9.5

 

%

 

9.5

%

 

9.4

%

 

Total risk-based capital ratio(4)

14.2

%

 

14.4

 

%

 

13.9

 

%

 

13.8

%

 

13.8

%

 

 

 

 

 

 

 

 

 

 

 

 

(1) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this document.

(2) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Loans, net of unearned income" and does not include the ACL related to off-balance-sheet ("OBS") credit exposures.

(3) Asset quality information excluding Paycheck Protection Program ("PPP") loans. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this document.

(4) Regulatory capital ratios as of March 31, 2021 are preliminary and prior periods are actual.

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

 

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change from

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Mar 31

 

 

2021

 

2020

 

2020

 

2020

 

2020

 

2020

 

2020

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

102,570

 

 

 

$

120,462

 

 

 

$

139,304

 

 

 

$

141,702

 

 

 

$

181,777

 

 

 

(14.9

)

%

 

(43.6

)

%

 

Other interest-earning assets

1,625,515

 

 

 

1,819,499

 

 

 

1,489,550

 

 

 

1,007,939

 

 

 

793,572

 

 

 

(10.7

)

%

 

104.8

 

%

 

Loans held for sale

34,092

 

 

 

83,886

 

 

 

93,621

 

 

 

77,415

 

 

 

40,645

 

 

 

(59.4

)

%

 

(16.1

)

%

 

Investment securities

3,612,010

 

 

 

3,340,424

 

 

 

3,097,721

 

 

 

2,974,813

 

 

 

3,141,440

 

 

 

8.1

 

%

 

15.0

 

%

 

Net Loans

18,990,986

 

 

 

18,900,820

 

 

 

19,028,621

 

 

 

18,704,722

 

 

 

17,077,403

 

 

 

0.5

 

%

 

11.2

 

%

 

Less: ACL - loans(1)

(265,986

)

 

 

(277,567

)

 

 

(266,825

)

 

 

(256,537

)

 

 

(238,508

)

 

 

(4.2

)

%

 

11.5

 

%

 

Loans, net

18,725,000

 

 

 

18,623,253

 

 

 

18,761,796

 

 

 

18,448,185

 

 

 

16,838,895

 

 

 

0.5

 

%

 

11.2

 

%

 

Net, premises and equipment

229,035

 

 

 

231,480

 

 

 

236,943

 

 

 

239,596

 

 

 

236,908

 

 

 

(1.1

)

%

 

(3.3

)

%

 

Accrued interest receivable

65,649

 

 

 

72,942

 

 

 

70,766

 

 

 

73,720

 

 

 

59,365

 

 

 

(10.0

)

%

 

10.6

 

%

 

Goodwill and intangible assets

536,544

 

 

 

536,659

 

 

 

534,907

 

 

 

535,039

 

 

 

535,171

 

 

 

 

%

 

0.3

 

%

 

Other assets

962,575

 

 

 

1,078,128

 

 

 

1,118,673

 

 

 

1,119,454

 

 

 

1,102,086

 

 

 

(10.7

)

%

 

(12.7

)

%

 

Total Assets

$

25,892,990

 

 

 

$

25,906,733

 

 

 

$

25,543,281

 

 

 

$

24,617,863

 

 

 

$

22,929,859

 

 

 

(0.1

)

%

 

12.9

 

%

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

21,633,838

 

 

 

$

20,839,207

 

 

 

$

20,730,051

 

 

 

$

19,884,208

 

 

 

$

17,365,026

 

 

 

3.8

 

%

 

24.6

 

%

 

Short-term borrowings

520,989

 

 

 

630,066

 

 

 

611,727

 

 

 

572,551

 

 

 

1,386,808

 

 

 

(17.3

)

%

 

(62.4

)

%

 

Other liabilities

482,101

 

 

 

524,369

 

 

 

515,230

 

 

 

525,407

 

 

 

513,811

 

 

 

(8.1

)

%

 

(6.2

)

%

 

FHLB advances and long-term debt

626,407

 

 

 

1,296,263

 

 

 

1,296,012

 

 

 

1,295,196

 

 

 

1,378,466

 

 

 

(51.7

)

%

 

(54.6

)

%

 

Total Liabilities

23,263,335

 

 

 

23,289,905

 

 

 

23,153,020

 

 

 

22,277,362

 

 

 

20,644,111

 

 

 

(0.1

)

%

 

12.7

 

%

 

Shareholders' equity

2,629,655

 

 

 

2,616,828

 

 

 

2,390,261

 

 

 

2,340,501

 

 

 

2,285,748

 

 

 

0.5

 

%

 

15.0

 

%

 

Total Liabilities and Shareholders' Equity

$

25,892,990

 

 

 

$

25,906,733

 

 

 

$

25,543,281

 

 

 

$

24,617,863

 

 

 

$

22,929,859

 

 

 

(0.1

)

%

 

12.9

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

 

 

 

 

 

 

 

 

 

 

Loans, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,142,137

 

 

 

$

7,105,092

 

 

 

$

7,046,330

 

 

 

$

6,934,936

 

 

 

$

6,895,069

 

 

 

0.5

 

%

 

3.6

 

%

 

Commercial and industrial

3,986,858

 

 

 

4,088,561

 

 

 

4,007,278

 

 

 

4,033,439

 

 

 

4,450,557

 

 

 

(2.5

)

%

 

(10.4

)

%

 

Real estate - residential mortgage

3,254,058

 

 

 

3,141,915

 

 

 

3,061,835

 

 

 

2,862,226

 

 

 

2,718,290

 

 

 

3.6

 

%

 

19.7

 

%

 

Real estate - home equity

1,149,958

 

 

 

1,202,913

 

 

 

1,222,709

 

 

 

1,251,455

 

 

 

1,292,677

 

 

 

(4.4

)

%

 

(11.0

)

%

 

Real estate - construction

1,083,494

 

 

 

1,047,218

 

 

 

1,007,534

 

 

 

972,909

 

 

 

947,768

 

 

 

3.5

 

%

 

14.3

 

%

 

Consumer

451,857

 

 

 

466,772

 

 

 

469,551

 

 

 

465,610

 

 

 

468,172

 

 

 

(3.2

)

%

 

(3.5

)

%

 

Equipment lease financing

260,907

 

 

 

279,118

 

 

 

280,286

 

 

 

281,897

 

 

 

289,726

 

 

 

(6.5

)

%

 

(9.9

)

%

 

Other(2)

(26,677

)

 

 

(12,481

)

 

 

(27,067

)

 

 

(34,784

)

 

 

15,144

 

 

 

113.7

 

%

 

N/M

 

 

Loans, net of unearned income before PPP

17,302,592

 

 

 

17,319,108

 

 

 

17,068,456

 

 

 

16,767,688

 

 

 

17,077,403

 

 

 

(0.1

)

%

 

1.3

 

%

 

PPP

1,688,394

 

 

 

1,581,712

 

 

 

1,960,165

 

 

 

1,937,034

 

 

 

 

 

 

6.7

 

%

 

N/M

 

 

Total Loans, net of unearned income

$

18,990,986

 

 

 

$

18,900,820

 

 

 

$

19,028,621

 

 

 

$

18,704,722

 

 

 

$

17,077,403

 

 

 

0.5

 

%

 

11.2

 

%

Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

7,046,116

 

 

 

$

6,531,002

 

 

 

$

6,378,077

 

 

 

$

6,239,055

 

 

 

$

4,531,872

 

 

 

7.9

 

%

 

55.5

 

%

 

Interest-bearing demand

5,959,909

 

 

 

5,818,564

 

 

 

5,813,935

 

 

 

5,099,405

 

 

 

4,724,520

 

 

 

2.4

 

%

 

26.1

 

%

 

Savings

6,244,513

 

 

 

5,929,792

 

 

 

5,805,431

 

 

 

5,667,893

 

 

 

5,092,865

 

 

 

5.3

 

%

 

22.6

 

%

 

Total demand and savings

19,250,538

 

 

 

18,279,358

 

 

 

17,997,443

 

 

 

17,006,353

 

 

 

14,349,257

 

 

 

5.3

 

%

 

34.2

 

%

 

Brokered

309,873

 

 

 

335,185

 

 

 

317,588

 

 

 

310,689

 

 

 

313,337

 

 

 

(7.6

)

%

 

(1.1

)

%

 

Time

2,073,427

 

 

 

2,224,664

 

 

 

2,415,020

 

 

 

2,567,166

 

 

 

2,702,432

 

 

 

(6.8

)

%

 

(23.3

)

%

 

Total Deposits

$

21,633,838

 

 

 

$

20,839,207

 

 

 

$

20,730,051

 

 

 

$

19,884,208

 

 

 

$

17,365,026

 

 

 

3.8

 

%

 

24.6

 

%

Short-term borrowings, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer funding

$

520,989

 

 

 

$

630,066

 

 

 

$

611,727

 

 

 

$

572,551

 

 

 

$

461,808

 

 

 

(17.3

)

%

 

12.8

 

%

 

Federal funds purchased

 

 

 

 

 

 

 

 

 

 

 

 

200,000

 

 

 

N/M

 

 

(100.0

)

%

 

Short-term FHLB advances

 

 

 

 

 

 

 

 

 

 

 

 

725,000

 

 

 

N/M

 

 

(100.0

)

%

 

Total Short-term Borrowings

$

520,989

 

 

 

$

630,066

 

 

 

$

611,727

 

 

 

$

572,551

 

 

 

$

1,386,808

 

 

 

(17.3

)

%

 

(62.4

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N/M - Not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit

exposures.

(2) Consists of overdrafts and net origination fees and costs.

FULTON FINANCIAL CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

dollars in thousands

 

 

 

 

 

Three Months Ended

 

% Change from

 

 

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Mar 31

 

 

 

 

 

2021

 

2020

 

2020

 

2020

 

2020

 

2020

 

2020

 

Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

$

184,936

 

 

 

$

183,645

 

 

 

$

179,159

 

 

$

180,696

 

 

$

199,378

 

 

0.7

 

%

 

(7.2

)

%

 

 

Interest expense

 

 

20,488

 

 

 

22,054

 

 

 

25,043

 

 

27,942

 

 

38,632

 

 

(7.1

)

%

 

(47.0

)

%

 

 

Net Interest Income

 

 

164,448

 

 

 

161,591

 

 

 

154,116

 

 

152,754

 

 

160,746

 

 

1.8

 

%

 

2.3

 

%

 

 

Provision for credit losses

 

 

(5,500

)

 

 

6,240

 

 

 

7,080

 

 

19,570

 

 

44,030

 

 

N/M

 

 

(112.5

)

%

 

 

Net Interest Income after Provision

 

 

169,948

 

 

 

155,351

 

 

 

147,036

 

 

133,184

 

 

116,716

 

 

9.4

 

%

 

45.6

 

%

 

Non-Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchant and card

 

 

5,768

 

 

 

5,953

 

 

 

6,237

 

 

5,326

 

 

5,624

 

 

(3.1

)

%

 

2.6

 

%

 

 

Cash management

 

 

4,921

 

 

 

4,737

 

 

 

4,742

 

 

4,503

 

 

4,742

 

 

3.9

 

%

 

3.8

 

%

 

 

Capital markets

 

 

2,800

 

 

 

3,513

 

 

 

4,696

 

 

5,004

 

 

5,075

 

 

(20.3

)

%

 

(44.8

)

%

 

 

Other commercial banking

 

 

2,853

 

 

 

2,606

 

 

 

2,636

 

 

1,914

 

 

2,978

 

 

9.5

 

%

 

(4.2

)

%

 

 

Total commercial banking

 

 

16,342

 

 

 

16,809

 

 

 

18,311

 

 

16,748

 

 

18,419

 

 

(2.8

)

%

 

(11.3

)

%

 

 

Consumer banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Card

 

 

5,878

 

 

 

5,123

 

 

 

5,002

 

 

4,966

 

 

4,685

 

 

14.7

 

%

 

25.5

 

%

 

 

Overdraft

 

 

2,724

 

 

 

3,376

 

 

 

3,015

 

 

2,107

 

 

4,058

 

 

(19.3

)

%

 

(32.9

)

%

 

 

Other consumer banking

 

 

2,152

 

 

 

2,298

 

 

 

2,406

 

 

2,065

 

 

2,496

 

 

(6.4

)

%

 

(13.8

)

%

 

 

Total consumer banking

 

 

10,754

 

 

 

10,797

 

 

 

10,423

 

 

9,138

 

 

11,239

 

 

(0.4

)

%

 

(4.3

)

%

 

 

Wealth management

 

 

17,347

 

 

 

15,653

 

 

 

14,943

 

 

13,407

 

 

15,055

 

 

10.8

 

%

 

15.2

 

%

 

 

Mortgage banking

 

 

13,960

 

 

 

9,311

 

 

 

16,801

 

 

9,964

 

 

6,234

 

 

49.9

 

%

 

123.9

 

%

 

 

Other

 

 

3,519

 

 

 

3,004

 

 

 

2,769

 

 

3,660

 

 

3,651

 

 

17.1

 

%

 

(3.6

)

%

 

 

Non-interest income before investment securities gains

 

 

61,922

 

 

 

55,574

 

 

 

63,246

 

 

52,917

 

 

54,598

 

 

11.4

 

%

 

13.4

 

%

 

 

Investment securities gains, net

 

 

33,475

 

 

 

 

 

 

2

 

 

3,005

 

 

46

 

 

N/M

 

 

N/M

 

 

 

Total Non-Interest Income

 

 

95,397

 

 

 

55,574

 

 

 

63,248

 

 

55,922

 

 

54,644

 

 

71.7

 

%

 

74.6

 

%

 

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

82,586

 

 

 

83,929

 

 

 

79,227

 

 

81,012

 

 

80,228

 

 

(1.6

)

%

 

2.9

 

%

 

 

Net occupancy

 

 

13,982

 

 

 

13,161

 

 

 

13,221

 

 

13,144

 

 

13,486

 

 

6.2

 

%

 

3.7

 

%

 

 

Data processing and software

 

 

13,561

 

 

 

11,951

 

 

 

12,285

 

 

12,193

 

 

11,645

 

 

13.5

 

%

 

16.5

 

%

 

 

Other outside services

 

 

8,490

 

 

 

8,334

 

 

 

7,617

 

 

7,600

 

 

7,881

 

 

1.9

 

%

 

7.7

 

%

 

 

Equipment

 

 

3,428

 

 

 

3,563

 

 

 

3,711

 

 

3,193

 

 

3,418

 

 

(3.8

)

%

 

0.3

 

%

 

 

Professional fees

 

 

2,779

 

 

 

2,424

 

 

 

2,879

 

 

3,331

 

 

4,202

 

 

14.6

 

%

 

(33.9

)

%

 

 

FDIC insurance

 

 

2,624

 

 

 

2,346

 

 

 

1,578

 

 

2,133

 

 

2,808

 

 

11.8

 

%

 

(6.6

)

%

 

 

Amortization of tax credit investments

 

 

1,531

 

 

 

1,532

 

 

 

1,694

 

 

1,450

 

 

1,450

 

 

(0.1

)

%

 

5.6

 

%

 

 

Marketing

 

 

1,002

 

 

 

1,098

 

 

 

1,147

 

 

1,303

 

 

1,579

 

 

(8.7

)

%

 

(36.5

)

%

 

 

Intangible amortization

 

 

115

 

 

 

132

 

 

 

132

 

 

132

 

 

132

 

 

(12.9

)

%

 

(12.9

)

%

 

 

Debt extinguishment

 

 

32,163

 

 

 

 

 

 

 

 

2,878

 

 

 

 

N/M

 

 

N/M

 

 

 

Other

 

 

16,123

 

 

 

26,268

 

 

 

15,654

 

 

14,637

 

 

15,723

 

 

(38.6

)

%

 

2.5

 

%

 

 

Total Non-Interest Expense

 

 

178,384

 

 

 

154,737

 

 

 

139,145

 

 

143,006

 

 

142,552

 

 

15.3

 

%

 

25.1

 

%

 

 

Income Before Income Taxes

 

 

86,961

 

 

 

56,187

 

 

 

71,139

 

 

46,100

 

 

28,808

 

 

54.8

 

%

 

N/M

 

 

 

Income tax expense

 

 

13,898

 

 

 

5,362

 

 

 

9,529

 

 

6,542

 

 

2,761

 

 

N/M

 

 

N/M

 

 

 

Net Income

 

 

73,063

 

 

 

50,825

 

 

 

61,610

 

 

39,558

 

 

26,047

 

 

43.8

 

%

 

N/M

 

 

 

Preferred stock dividends

 

 

(2,591

)

 

 

(2,135

)

 

 

 

 

 

 

 

 

21.4

 

%

 

N/M

 

 

 

Net Income Available to Common Shareholders

 

 

$

70,472

 

 

 

$

48,690

 

 

 

$

61,610

 

 

$

39,558

 

 

$

26,047

 

 

44.7

 

%

 

N/M

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

$

0.43

 

 

 

$

0.30

 

 

 

$

0.38

 

 

$

0.24

 

 

$

0.16

 

 

43.3

 

%

 

N/M

 

 

 

Diluted

 

 

0.43

 

 

 

0.30

 

 

 

0.38

 

 

0.24

 

 

0.16

 

 

43.3

 

%

 

N/M

 

 

 

Cash dividends

 

 

0.14

 

 

 

0.17

 

 

 

0.13

 

 

0.13

 

 

0.13

 

 

(17.6

)

%

 

7.7

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

 

162,441

 

 

 

162,242

 

 

 

162,061

 

 

161,715

 

 

163,475

 

 

0.1

 

%

 

(0.6

)

%

 

 

Weighted average shares (diluted)

 

 

163,737

 

 

 

163,071

 

 

 

162,579

 

 

162,267

 

 

164,417

 

 

0.4

 

%

 

(0.4

)

%

 

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

Three months ended

 

 

March 31, 2021

 

December 31, 2020

 

March 31, 2020

 

 

Average

 

Interest

 

Yield/

 

Average

 

Interest

 

Yield/

 

Average

 

Interest

 

Yield/

 

 

Balance

 

(1)

 

Rate

 

Balance

 

(1)

 

Rate

 

Balance

 

(1)

 

Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned income

$

18,980,586

 

 

 

$

165,462

 

 

 

3.53

%

 

$

18,994,514

 

 

 

$

164,329

 

 

 

3.45

%

 

$

16,860,067

 

 

 

$

177,496

 

 

 

4.23

%

 

Taxable investment securities

3,006,197

 

 

 

17,526

 

 

 

2.08

%

 

2,233,730

 

 

 

13,559

 

 

 

2.43

%

 

2,284,457

 

 

 

16,294

 

 

 

2.85

%

 

Tax-exempt investment securities

343,947

 

 

 

3,321

 

 

 

3.86

%

 

886,329

 

 

 

7,044

 

 

 

3.17

%

 

720,223

 

 

 

5,960

 

 

 

3.29

%

 

Total Investment Securities

3,350,144

 

 

 

20,847

 

 

 

2.49

%

 

3,120,059

 

 

 

20,603

 

 

 

2.64

%

 

3,004,680

 

 

 

22,254

 

 

 

2.96

%

 

Loans held for sale

53,465

 

 

 

471

 

 

 

3.53

%

 

76,871

 

 

 

521

 

 

 

2.71

%

 

27,178

 

 

 

320

 

 

 

4.71

%

 

Other interest-earning assets

1,900,199

 

 

 

1,136

 

 

 

0.21

%

 

1,668,454

 

 

 

1,179

 

 

 

0.28

%

 

602,270

 

 

 

2,532

 

 

 

1.69

%

 

Total Interest-earning Assets

24,284,394

 

 

 

187,916

 

 

 

3.13

%

 

23,859,898

 

 

 

186,632

 

 

 

3.12

%

 

20,494,195

 

 

 

202,602

 

 

 

3.97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

120,181

 

 

 

 

 

 

 

126,190

 

 

 

 

 

 

 

138,248

 

 

 

 

 

 

 

Premises and equipment

230,649

 

 

 

 

 

 

 

236,265

 

 

 

 

 

 

 

239,619

 

 

 

 

 

 

 

Other assets

1,728,473

 

 

 

 

 

 

 

1,799,381

 

 

 

 

 

 

 

1,590,666

 

 

 

 

 

 

 

Less: ACL - loans(2)

(280,881

)

 

 

 

 

 

 

(272,329

)

 

 

 

 

 

 

(210,629

)

 

 

 

 

 

 

Total Assets

$

26,082,816

 

 

 

 

 

 

 

$

25,749,405

 

 

 

 

 

 

 

$

22,252,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

5,832,174

 

 

 

$

1,160

 

 

 

0.08

%

 

$

5,762,150

 

 

 

$

1,457

 

 

 

0.10

%

 

$

4,649,905

 

 

 

$

5,643

 

 

 

0.49

%

 

Savings deposits

6,137,084

 

 

 

1,526

 

 

 

0.10

%

 

5,905,137

 

 

 

1,866

 

 

 

0.13

%

 

5,127,662

 

 

 

7,110

 

 

 

0.56

%

 

Brokered deposits

324,364

 

 

 

395

 

 

 

0.49

%

 

340,451

 

 

 

451

 

 

 

0.53

%

 

275,359

 

 

 

1,073

 

 

 

1.57

%

 

Time deposits

2,150,570

 

 

 

6,521

 

 

 

1.23

%

 

2,306,556

 

 

 

8,082

 

 

 

1.39

%

 

2,761,474

 

 

 

12,614

 

 

 

1.84

%

 

Total Interest-bearing Deposits

14,444,192

 

 

 

9,602

 

 

 

0.27

%

 

14,314,294

 

 

 

11,856

 

 

 

0.33

%

 

12,814,400

 

 

 

26,440

 

 

 

0.83

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

570,775

 

 

 

188

 

 

 

0.13

%

 

622,623

 

 

 

268

 

 

 

0.17

%

 

1,303,047

 

 

 

4,073

 

 

 

1.25

%

 

FHLB advances and long-term debt

1,271,170

 

 

 

10,698

 

 

 

3.38

%

 

1,296,139

 

 

 

9,930

 

 

 

3.06

%

 

1,063,214

 

 

 

8,119

 

 

 

3.06

%

 

Total Interest-bearing Liabilities

16,286,137

 

 

 

20,488

 

 

 

0.51

%

 

16,233,056

 

 

 

22,054

 

 

 

0.54

%

 

15,180,661

 

 

 

38,632

 

 

 

1.02

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

6,672,832

 

 

 

 

 

 

 

6,477,228

 

 

 

 

 

 

 

4,307,027

 

 

 

 

 

 

 

Total Deposits/Cost of Deposits

21,117,024

 

 

 

 

 

0.18

%

 

20,791,522

 

 

 

 

 

0.23

%

 

17,121,427

 

 

 

 

 

0.62

%

 

Other

486,749

 

 

 

 

 

 

 

494,255

 

 

 

 

 

 

 

427,395

 

 

 

 

 

 

 

Total Liabilities

23,445,718

 

 

 

 

 

 

 

$

23,204,539

 

 

 

 

 

 

 

19,915,083

 

 

 

 

 

 

 

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

22,958,969

 

 

 

 

 

0.36

%

 

22,710,284

 

 

 

 

 

0.39

%

 

19,487,688

 

 

 

 

 

0.80

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

2,637,098

 

 

 

 

 

 

 

2,544,866

 

 

 

 

 

 

 

2,337,016

 

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

$

26,082,816

 

 

 

 

 

 

 

$

25,749,405

 

 

 

 

 

 

 

$

22,252,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

167,428

 

 

 

2.79

%

 

 

 

164,578

 

 

 

2.75

%

 

 

 

$

163,970

 

 

 

3.21

%

 

Tax equivalent adjustment

 

 

(2,979

)

 

 

 

 

 

 

(2,987

)

 

 

 

 

 

 

$

(3,224

)

 

 

 

 

Net interest income

 

 

$

164,449

 

 

 

 

 

 

 

$

161,591

 

 

 

 

 

 

 

$

160,746

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.

 

(2) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):

dollars in thousands

 

 

Three months ended

 

% Change from

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Mar 31

 

 

2021

 

2020

 

2020

 

2020

 

2020

 

2020

 

2020

Loans, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,128,997

 

 

 

$

7,101,363

 

 

 

$

6,986,528

 

 

 

$

6,875,872

 

 

$

6,746,766

 

 

0.4

 

%

 

5.7

 

%

 

Commercial and industrial

4,033,367

 

 

 

4,024,879

 

 

 

4,030,750

 

 

 

4,451,228

 

 

4,446,750

 

 

0.2

 

%

 

(9.3

)

%

 

Real estate - residential mortgage

3,183,585

 

 

 

3,087,529

 

 

 

2,975,516

 

 

 

2,769,682

 

 

2,670,019

 

 

3.1

 

%

 

19.2

 

%

 

Real estate - home equity

1,175,218

 

 

 

1,212,113

 

 

 

1,237,602

 

 

 

1,271,190

 

 

1,300,132

 

 

(3.0

)

%

 

(9.6

)

%

 

Real estate - construction

1,054,718

 

 

 

1,009,284

 

 

 

981,589

 

 

 

941,079

 

 

929,529

 

 

4.5

 

%

 

13.5

 

%

 

Consumer

459,038

 

 

 

468,678

 

 

 

464,851

 

 

 

465,728

 

 

466,415

 

 

(2.1

)

%

 

(1.6

)

%

 

Equipment lease financing

266,405

 

 

 

279,059

 

 

 

279,217

 

 

 

284,658

 

 

284,566

 

 

(4.5

)

%

 

(6.4

)

%

 

Other(1)

(9,455

)

 

 

(18,817

)

 

 

(28,656

)

 

 

13,443

 

 

15,890

 

 

(49.8

)

%

 

N/M

 

 

Loans, net of unearned income before PPP

17,291,873

 

 

 

17,164,088

 

 

 

16,927,397

 

 

 

17,072,880

 

 

16,860,067

 

 

0.7

 

%

 

2.6

 

%

 

PPP

1,688,713

 

 

 

1,830,426

 

 

 

1,953,122

 

 

 

1,258,917

 

 

 

 

(7.7

)

%

 

N/M

 

 

Total Loans, net of unearned income

$

18,980,586

 

 

 

$

18,994,514

 

 

 

$

18,880,519

 

 

 

$

18,331,797

 

 

$

16,860,067

 

 

(0.1

)

%

 

12.6

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

6,672,832

 

 

 

$

6,477,228

 

 

 

$

6,270,683

 

 

 

$

5,789,788

 

 

$

4,307,027

 

 

3.0

 

%

 

54.9

 

%

 

Interest-bearing demand

5,832,174

 

 

 

5,762,150

 

 

 

5,591,548

 

 

 

5,103,419

 

 

4,649,905

 

 

1.2

 

%

 

25.4

 

%

 

Savings

6,137,084

 

 

 

5,905,137

 

 

 

5,716,050

 

 

 

5,446,368

 

 

5,127,662

 

 

3.9

 

%

 

19.7

 

%

 

Total demand and savings

18,642,090

 

 

 

18,144,515

 

 

 

17,578,281

 

 

 

16,339,575

 

 

14,084,594

 

 

2.7

 

%

 

32.4

 

%

 

Brokered

324,364

 

 

 

340,451

 

 

 

314,721

 

 

 

312,121

 

 

275,359

 

 

(4.7

)

%

 

17.8

 

%

 

Time

2,150,570

 

 

 

2,306,556

 

 

 

2,495,445

 

 

 

2,624,962

 

 

2,761,474

 

 

(6.8

)

%

 

(22.1

)

%

 

Total Deposits

$

21,117,024

 

 

 

$

20,791,522

 

 

 

$

20,388,447

 

 

 

$

19,276,658

 

 

$

17,121,427

 

 

1.6

 

%

 

23.3

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer funding

$

570,775

 

 

 

$

622,623

 

 

 

$

613,127

 

 

 

$

546,716

 

 

$

428,240

 

 

(8.3

)

%

 

33.3

 

%

 

Federal funds purchased

 

 

 

 

 

 

 

 

 

74,231

 

 

186,868

 

 

N/M

 

 

(100.0

)

%

 

Short-term FHLB advances and other borrowings

 

 

 

 

 

 

 

 

 

86,824

 

 

687,937

 

 

N/M

 

 

(100.0

)

%

 

Total Short-term borrowings

$

570,775

 

 

 

$

622,623

 

 

 

$

613,127

 

 

 

$

707,771

 

 

$

1,303,045

 

 

(8.3

)

%

 

(56.2

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Consists of overdrafts and net origination fees and costs.

FULTON FINANCIAL CORPORATION

 

 

 

 

ASSET QUALITY INFORMATION (UNAUDITED)

 

 

 

 

dollars in thousands

 

 

 

 

 

 

Three months ended

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

2021

 

2020

 

2020

 

2020

 

2020

Allowance for credit losses related to Loans, net of unearned income:

 

 

 

 

 

 

 

 

Balance at beginning of period

$

277,567

 

 

 

$

266,825

 

 

 

$

256,537

 

 

 

$

238,508

 

 

 

$

163,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impact of adopting CECL

 

 

 

 

 

 

 

 

 

 

 

 

45,724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

(4,319

)

 

 

(1,567

)

 

 

(2,969

)

 

 

(3,480

)

 

 

(10,899

)

 

 

Real estate - commercial mortgage

(1,837

)

 

 

(300

)

 

 

(746

)

 

 

(2,324

)

 

 

(855

)

 

 

Consumer and home equity

(847

)

 

 

(668

)

 

 

(1,093

)

 

 

(1,303

)

 

 

(1,529

)

 

 

Real estate - residential mortgage

(192

)

 

 

 

 

 

(198

)

 

 

(235

)

 

 

(187

)

 

 

Real estate - construction

(39

)

 

 

 

 

 

 

 

 

(17

)

 

 

 

 

 

Equipment lease financing and other

(968

)

 

 

(483

)

 

 

(483

)

 

 

(688

)

 

 

(533

)

 

 

Total loans charged off

(8,202

)

 

 

(3,018

)

 

 

(5,489

)

 

 

(8,047

)

 

 

(14,003

)

 

Recoveries of loans previously charged off:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

769

 

 

 

4,581

 

 

 

2,103

 

 

 

2,978

 

 

 

1,734

 

 

 

Real estate - commercial mortgage

174

 

 

 

588

 

 

 

100

 

 

 

95

 

 

 

244

 

 

 

Consumer and home equity

440

 

 

 

594

 

 

 

491

 

 

 

649

 

 

 

646

 

 

 

Real estate - residential mortgage

95

 

 

 

199

 

 

 

95

 

 

 

112

 

 

 

85

 

 

 

Real estate - construction

384

 

 

 

179

 

 

 

4,873

 

 

 

 

 

 

70

 

 

 

Equipment lease financing and other

159

 

 

 

219

 

 

 

185

 

 

 

92

 

 

 

108

 

 

 

Recoveries of loans previously charged off

2,021

 

 

 

6,360

 

 

 

7,847

 

 

 

3,926

 

 

 

2,887

 

 

Net loans recovered (charged off)

(6,181

)

 

 

3,342

 

 

 

2,358

 

 

 

(4,121

)

 

 

(11,116

)

 

Provision for credit losses

(5,400

)

 

 

7,400

 

 

 

7,930

 

 

 

22,150

 

 

 

40,280

 

 

Balance at end of period

$

265,986

 

 

 

$

277,567

 

 

 

$

266,825

 

 

 

$

256,537

 

 

 

$

238,508

 

 

Net charge-offs (recoveries) to average loans (annualized)

0.13

 

%

 

(0.07

)

%

 

(0.05

)

%

 

0.09

 

%

 

0.26

 

%

 

 

 

 

 

 

 

 

 

 

 

Allowance credit losses related to OBS Credit Exposures(1)

 

 

 

 

 

 

Balance at beginning of period

$

14,373

 

 

 

$

15,533

 

 

 

$

16,383

 

 

 

$

18,963

 

 

 

$

2,588

 

 

 

Impact of adopting CECL

 

 

 

 

 

 

 

 

 

 

 

 

12,625

 

 

 

Provision for credit losses

(100

)

 

 

(1,160

)

 

 

(850

)

 

 

(2,580

)

 

 

3,750

 

 

 

Balance at end of period

$

14,273

 

 

 

$

14,373

 

 

 

$

15,533

 

 

 

$

16,383

 

 

 

$

18,963

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING ASSETS:

 

 

 

 

 

 

 

 

 

Non-accrual loans

$

143,889

 

 

 

$

137,198

 

 

 

$

128,321

 

 

 

$

125,037

 

 

 

$

120,345

 

 

 

Loans 90 days past due and accruing

8,559

 

 

 

9,929

 

 

 

13,761

 

 

 

14,767

 

 

 

19,593

 

 

 

Total non-performing loans

152,448

 

 

 

147,127

 

 

 

142,082

 

 

 

139,804

 

 

 

139,938

 

 

 

Other real estate owned

3,664

 

 

 

4,178

 

 

 

4,565

 

 

 

5,418

 

 

 

6,593

 

 

 

Total non-performing assets

$

156,112

 

 

 

$

151,305

 

 

 

$

146,647

 

 

 

$

145,222

 

 

 

$

146,531

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING LOANS, BY TYPE:

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

31,871

 

 

 

$

32,610

 

 

 

$

37,224

 

 

 

$

39,730

 

 

 

$

41,318

 

 

 

Real estate - commercial mortgage

54,164

 

 

 

52,647

 

 

 

43,426

 

 

 

42,374

 

 

 

36,538

 

 

 

Real estate - residential mortgage

36,152

 

 

 

30,793

 

 

 

28,287

 

 

 

22,887

 

 

 

25,832

 

 

 

Consumer and home equity

13,072

 

 

 

13,090

 

 

 

12,292

 

 

 

11,911

 

 

 

11,226

 

 

 

Real estate - construction

1,440

 

 

 

1,550

 

 

 

4,051

 

 

 

4,525

 

 

 

4,379

 

 

 

Equipment lease financing and other

15,749

 

 

 

16,437

 

 

 

16,802

 

 

 

18,377

 

 

 

20,645

 

 

 

Total non-performing loans

$

152,448

 

 

 

$

147,127

 

 

 

$

142,082

 

 

 

$

139,804

 

 

 

$

139,938

 

 

 

 

 

 

 

 

 

 

 

(1) The allowance for credit losses related to OBS Credit Exposures is presented in "other liabilities" on the consolidated balance sheets.

FULTON FINANCIAL CORPORATION

 

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

 

in thousands, except per share data and percentages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Explanatory note:

This press release contains supplemental financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

 

 

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

 

 

 

 

 

2021

 

2020

 

2020

 

2020

 

2020

 

Common shareholders' equity (tangible), per share

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

$

2,629,655

 

 

$

2,616,828

 

 

$

2,390,261

 

 

$

2,340,501

 

 

$

2,285,748

 

 

Less: Preferred stock

 

 

(192,878

)

 

(192,878

)

 

 

 

 

 

 

 

Less: Goodwill and intangible assets

 

 

(536,544

)

 

(536,659

)

 

(534,907

)

 

(535,039

)

 

(535,171

)

 

Tangible common shareholders' equity (numerator)

 

 

$

1,900,233

 

 

$

1,887,291

 

 

$

1,855,354

 

 

$

1,805,462

 

 

$

1,750,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding, end of period (denominator)

 

 

162,518

 

 

162,350

 

 

162,134

 

 

161,958

 

 

161,435

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shareholders' equity (tangible), per share

 

 

$

11.69

 

 

$

11.62

 

 

$

11.44

 

 

$

11.15

 

 

$

10.84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average common shareholders' equity (tangible)

 

 

 

 

 

 

 

Net income available to common shareholders

 

 

$

70,472

 

 

$

48,690

 

 

$

61,610

 

 

$

39,558

 

 

$

26,047

 

 

Plus: Intangible amortization, net of tax

 

 

90

 

 

104

 

 

103

 

 

104

 

 

104

 

 

(Numerator)

 

$

70,562

 

 

$

48,794

 

 

$

61,713

 

 

$

39,662

 

 

$

26,151

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shareholders' equity

 

 

$

2,637,098

 

 

$

2,544,866

 

 

$

2,374,091

 

 

$

2,309,133

 

 

$

2,337,016

 

 

Less: Average preferred stock

 

 

(192,878

)

 

(127,639

)

 

 

 

 

 

 

 

Less: Average goodwill and intangible assets

 

 

(536,601

)

 

(535,474

)

 

(534,971

)

 

(535,103

)

 

(535,235

)

 

Average tangible common shareholders' equity (denominator)

 

$

1,907,619

 

 

$

1,881,753

 

 

$

1,839,120

 

 

$

1,774,030

 

 

$

1,801,781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average common shareholders' equity (tangible), annualized

 

15.00

%

 

10.32

%

 

13.50

%

 

8.99

%

 

5.84

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets (TCE Ratio)

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

$

2,629,655

 

 

$

2,616,828

 

 

$

2,390,261

 

 

$

2,340,501

 

 

$

2,285,748

 

 

Less: Preferred stock

 

 

(192,878

)

 

(192,878

)

 

 

 

 

 

 

 

Less: Goodwill and intangible assets

 

 

(536,544

)

 

(536,659

)

 

(534,907

)

 

(535,039

)

 

(535,171

)

 

Tangible common shareholders' equity (numerator)

 

 

$

1,900,233

 

 

$

1,887,291

 

 

$

1,855,354

 

 

$

1,805,462

 

 

$

1,750,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

$

25,892,990

 

 

$

25,906,733

 

 

$

25,543,281

 

 

$

24,617,863

 

 

$

22,929,859

 

 

Less: Goodwill and intangible assets

 

 

(536,544

)

 

(536,659

)

 

(534,907

)

 

(535,039

)

 

(535,171

)

 

Total tangible assets (denominator)

 

 

$

25,356,446

 

 

$

25,370,074

 

 

$

25,008,374

 

 

$

24,082,824

 

 

$

22,394,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

 

7.49

%

 

7.44

%

 

7.42

%

 

7.50

%

 

7.82

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

 

$

178,384

 

 

$

154,737

 

 

$

139,145

 

 

$

143,006

 

 

$

142,552

 

 

Less: Amortization of tax credit investments

 

 

(1,531

)

 

(1,532

)

 

(1,694

)

 

(1,450

)

 

(1,450

)

 

Less: Intangible amortization

 

 

(115

)

 

(132

)

 

(132

)

 

(132

)

 

(132

)

 

Less: 2020 cost savings initiatives

 

 

 

 

(15,400

)

 

(800

)

 

 

 

 

 

Less: Debt extinguishment costs

 

 

(32,163

)

 

 

 

 

 

(2,878

)

 

 

 

Non-interest expense (numerator)

 

 

$

144,575

 

 

$

137,673

 

 

$

136,519

 

 

$

138,546

 

 

$

140,970

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (fully taxable equivalent)

 

 

$

167,428

 

 

$

164,578

 

 

$

157,106

 

 

$

155,854

 

 

$

163,970

 

 

Plus: Total Non-interest income

 

 

95,397

 

 

55,574

 

 

63,248

 

 

55,922

 

 

54,644

 

 

Less: Investment securities gains, net

 

 

(33,475

)

 

 

 

(2

)

 

(3,005

)

 

(46

)

 

Total revenue (denominator)

 

 

$

229,350

 

 

$

220,152

 

 

$

220,352

 

 

$

208,771

 

 

$

218,568

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

63.0

%

 

62.5

%

 

62.0

%

 

66.4

%

 

64.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

 

 

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

 

 

 

 

 

2021

 

2020

 

2020

 

2020

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality, excluding PPP

 

 

 

 

 

 

 

 

 

 

 

 

Net loans recovered (charged-off) (numerator)

 

 

$

(6,181

)

 

$

3,342

 

 

$

2,358

 

 

$

(4,121

)

 

$

(11,116

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average loans, net of unearned income

 

 

$

18,980,586

 

 

$

18,994,514

 

 

$

18,880,519

 

 

$

18,331,797

 

 

$

16,860,067

 

 

Less: Average PPP loans

 

 

(1,688,713

)

 

(1,830,426

)

 

(1,953,122

)

 

(1,258,917

)

 

 

 

Total adjusted average loans (denominator)

 

 

$

17,291,873

 

 

$

17,164,088

 

 

$

16,927,397

 

 

$

17,072,880

 

 

$

16,860,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to average loans (annualized)

 

 

0.14

%

 

(0.08

)%

 

(0.06

)%

 

0.10

%

 

0.26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans (numerator)

 

 

$

152,448

 

 

$

147,127

 

 

$

142,082

 

 

$

139,804

 

 

$

139,938

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned income

 

 

$

18,990,986

 

 

$

18,900,820

 

 

$

19,028,621

 

 

$

18,704,722

 

 

$

17,077,403

 

 

Less: PPP loans

 

 

(1,688,394

)

 

(1,581,712

)

 

(1,960,165

)

 

(1,937,034

)

 

 

 

Total adjusted loans (denominator)

 

 

$

17,302,592

 

 

$

17,319,108

 

 

$

17,068,456

 

 

$

16,767,688

 

 

$

17,077,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans to adjusted total loans

 

 

0.88

%

 

0.85

%

 

0.83

%

 

0.83

%

 

0.82

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL - loans (numerator)

 

 

$

265,986

 

 

$

277,567

 

 

266,825

 

 

256,537

 

 

$

238,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned income

 

 

$

18,990,986

 

 

$

18,900,820

 

 

$

19,028,621

 

 

$

18,704,722

 

 

$

17,077,403

 

 

Less: PPP loans

 

 

(1,688,394

)

 

(1,581,712

)

 

(1,960,165

)

 

(1,937,034

)

 

 

 

Total adjusted loans (denominator)

 

 

$

17,302,592

 

 

$

17,319,108

 

 

$

17,068,456

 

 

$

16,767,688

 

 

$

17,077,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL - loans to adjusted total loans

 

 

1.54

%

 

1.60

%

 

1.56

%

 

1.53

%

 

1.40

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-provision net revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

164,448

 

 

$

161,591

 

 

$

154,116

 

 

$

152,754

 

 

$

160,746

 

 

Non-interest income

 

 

 

 

95,397

 

 

55,574

 

 

63,248

 

 

55,922

 

 

54,644

 

 

Less: Investment securities gains, net

 

 

 

 

(33,475

)

 

 

 

(2

)

 

(3,005

)

 

(46

)

 

Total revenue

 

 

 

 

$

226,370

 

 

$

217,165

 

 

$

217,362

 

 

$

205,671

 

 

$

215,344

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

 

 

 

$

178,384

 

 

$

154,737

 

 

$

139,145

 

 

$

143,006

 

 

$

142,552

 

 

Less: Debt extinguishment

 

 

 

 

(32,163

)

 

 

 

 

 

(2,878

)

 

 

 

Less: Amortization on tax credit investments

 

 

 

 

(1,531

)

 

(1,532

)

 

(1,694

)

 

(1,450

)

 

(1,450

)

 

Less: Intangible amortization

 

 

 

 

(115

)

 

(132

)

 

(132

)

 

(132

)

 

(132

)

 

Total non-interest expense

 

 

 

 

$

144,575

 

 

$

153,073

 

 

$

137,319

 

 

$

138,546

 

 

$

140,970

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-provision net revenue

 

 

 

 

$

81,795

 

 

$

64,092

 

 

$

80,043

 

 

$

67,125

 

 

$

74,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: numbers may not sum due to rounding.

Category: Earnings

Media Contact: Laura Wakeley (717) 291-2616 Investor Contact: Matt Jozwiak (717) 327-2657

Fulton Financial Corpoar... (NASDAQ:FULT)
Historical Stock Chart
From Aug 2021 to Sep 2021 Click Here for more Fulton Financial Corpoar... Charts.
Fulton Financial Corpoar... (NASDAQ:FULT)
Historical Stock Chart
From Sep 2020 to Sep 2021 Click Here for more Fulton Financial Corpoar... Charts.