LANCASTER, Pa.--(BUSINESS WIRE)-- Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income of $62.1 million, or $0.37 per diluted share, for the third quarter of 2019, and net income of $178.6 million, or $1.06 per diluted share, for the nine months ended September 30, 2019.
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“Overall, we were pleased with our third quarter results. Our consumer and commercial businesses had strong loan growth during the quarter despite the competitive headwinds in the market. Other positives for the quarter included stable credit conditions, solid fee income growth and essentially flat operating expenses, linked quarter, excluding charter consolidation expenses, prepayment penalties on FHLB advances and FDIC insurance credits,” said E. Philip Wenger, Chairman and CEO. “On the corporate front, we consolidated our last remaining affiliate banks into Fulton Bank in September. Also, in early October the Department of Justice informed us that the Department had completed its fair lending investigation of Fulton without taking any action against the company. These are two important milestones that should help facilitate growth moving forward.”
Net income per diluted share increased 5.7% in comparison to the $0.35 reported for the second quarter of 2019 and remained unchanged from the $0.37 reported for the third quarter of 2018. The increase in net income over the second quarter of 2019 was the result of increases in non-interest income and a decrease in the provision for credit losses, partially offset by a decrease in net interest income and an increase in non-interest expense.
Net Interest Income and Balance Sheet
Net interest income for the third quarter of 2019 was $161.3 million, a $3.3 million decrease from the second quarter of 2019. The decrease resulted from the impact of a 13 basis point decrease in net interest margin, partially offset by balance sheet growth. The decline in net interest margin resulted from a 12 basis point decrease in the yield on interest-earning assets and a one basis point increase in average cost of funds. The declines in asset yields were primarily the result of the 25 basis point decreases in the federal funds target rate in July and in September 2019, which had a more pronounced impact on loan yields than overall funding costs.
Total average assets for the third quarter of 2019 were $21.5 billion, an increase of $400.8 million from the second quarter of 2019, with average loans, net of unearned income, increasing $121.0 million, average other interest-earning assets increasing $100.0 million and the remaining increase occurring mainly in non interest-earning assets.
Average loans and yields, by type, for the third quarter of 2019 in comparison to the second quarter of 2019 are summarized in the following table:
Three Months Ended |
Increase/(Decrease) |
||||||||||||||||
September 30, 2019 |
June 30, 2019 |
in balance |
|||||||||||||||
Balance |
Yield (1) |
Balance |
Yield (1) |
$ |
% |
||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Average Loans and Lease, net of unearned income, by type: | |||||||||||||||||
| Real estate - commercial mortgage | $ |
6,489,456 |
4.57% |
$ |
6,424,213 |
4.67% |
$ |
65,243 |
1.0 |
% |
|||||||
| Commercial - industrial, financial and agricultural | 4,414,992 |
4.56% |
4,440,860 |
4.73% |
(25,868 |
) |
(0.6 |
%) |
|||||||||
| Real estate - residential mortgage | 2,512,899 |
4.06% |
2,366,685 |
4.09% |
146,214 |
6.2 |
% |
||||||||||
| Real estate - home equity | 1,364,161 |
5.27% |
1,404,141 |
5.35% |
(39,980 |
) |
(2.8 |
%) |
|||||||||
| Real estate - construction | 905,060 |
4.68% |
943,080 |
5.29% |
(38,020 |
) |
(4.0 |
%) |
|||||||||
| Consumer | 457,524 |
4.36% |
445,666 |
4.38% |
11,858 |
2.7 |
% |
||||||||||
| Equipment lease financing | 277,555 |
4.41% |
279,619 |
4.45% |
(2,064 |
) |
(0.7 |
%) |
|||||||||
| Other | 14,860 |
N/A |
11,812 |
N/A |
3,048 |
25.8 |
% |
||||||||||
| Total Average Loans and leases, net of unearned income | $ |
16,436,507 |
4.55% |
$ |
16,316,076 |
4.69% |
$ |
120,431 |
0.7 |
% |
|||||||
| (1) Presented on a fully-taxable equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances. | |||||||||||||||||
Total average liabilities increased $386.4 million, or 2.1%, from the second quarter of 2019, with a $575.2 million, or 3.5%, increase in average deposits being partially offset by a $209.2 million, or 19.9%, decrease in average Federal Home Loan Bank (FHLB) advances and long-term debt. Average deposits and interest rates, by type, for the third quarter of 2019 in comparison to the second quarter of 2019 are summarized in the following table:
Three Months Ended |
Increase/(Decrease) |
|||||||||||||||
September 30, 2019 |
June 30, 2019 |
in balance |
||||||||||||||
Balance |
Rate |
Balance |
Rate |
$ |
% |
|||||||||||
| (dollars in thousands) | ||||||||||||||||
| Average Deposits, by type: | ||||||||||||||||
| Noninterest-bearing demand | $ |
4,247,820 |
- % |
$ |
4,200,810 |
- % |
$ |
47,010 |
1.1% |
|||||||
| Interest-bearing demand | 4,448,112 |
0.82% |
4,186,280 |
0.78% |
261,832 |
6.3% |
||||||||||
| Savings and money market deposits | 5,026,316 |
0.87% |
4,925,788 |
0.86% |
100,528 |
2.0% |
||||||||||
| Total average demand and savings | 13,722,248 |
0.58% |
13,312,878 |
0.56% |
409,370 |
3.1% |
||||||||||
| Brokered deposits | 253,426 |
2.40% |
246,154 |
2.58% |
7,272 |
3.0% |
||||||||||
| Time deposits | 2,974,993 |
1.86% |
2,816,424 |
1.74% |
158,569 |
5.6% |
||||||||||
| Total Average Deposits | $ |
16,950,667 |
0.84% |
$ |
16,375,456 |
0.80% |
$ |
575,211 |
3.5% |
|||||||
Asset Quality
The provision for credit losses for the third quarter of 2019 was $2.2 million, down from $5.0 million for the second quarter of 2019.
Non-performing assets were $143.7 million, or 0.66% of total assets, at September 30, 2019, compared to $155.0 million, or 0.73% of total assets, at June 30, 2019 and $130.8 million, or 0.64% of total assets, at September 30, 2018.
Annualized net charge-offs for the quarter ended September 30, 2019 were 0.15% of total average loans, compared to net recoveries of 0.04% for the quarter ended June 30, 2019. The allowance for credit losses as a percentage of non-performing loans was 127% at September 30, 2019, compared to 120% at June 30, 2019.
Non-interest Income
Non-interest income in the third quarter of 2019, excluding investment securities gains, was $55.3 million, an increase of $1.2 million, or 2.2%, in comparison to the second quarter of 2019 and an increase of $4.3 million, or 8.4%, compared to the third quarter of 2018.
Consumer banking income increased, driven by growth in card income. Commercial banking income decreased slightly as higher commercial loan interest rate swap fees were offset by declines in merchant and card income and Small Business Administration (SBA) loan sale gains. Other income increased $595,000 mainly due to earnings on additional investments in bank-owned life insurance.
During the third quarter of 2019, Fulton completed a balance sheet restructuring involving the sale of approximately $400 million of investment securities and a corresponding prepayment of FHLB advances. As a result of these transactions, $4.5 million of investment securities gains were realized during the quarter.
Non-interest Expense
Non-interest expense was $146.8 million in the third quarter of 2019, an increase of $2.6 million, or 1.8%, compared to the second quarter of 2019 and an increase of $11.4 million, or 8.4%, compared to the third quarter of 2018.
Expenses incurred in the third quarter of 2019 related to the consolidation of the remaining subsidiary banks were comparable to the prior quarter, totaling approximately $5.2 million, primarily in outside services and other expenses. Increases were realized in other expenses, including approximately $4.3 million of penalties related to the prepayment of certain FHLB advances in conjunction with the previously mentioned balance sheet restructuring. These increases were partially offset by decreases in occupancy costs and FDIC insurance due to the recognition of assessment credits of $2.6 million in the third quarter of 2019.
Income Tax Expense
The effective income tax rate for the third quarter of 2019 was 13.9%, as compared to 14.2% for the second quarter of 2019.
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, 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, 2018 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019 and June 30, 2019, which have been filed with the Securities and Exchange Commission and are 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 |
|||||||||||||||
Sep 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Sep 30 |
|||||||||||
2019 |
2019 |
2019 |
2018 |
2018 |
|||||||||||
| Ending Balances | |||||||||||||||
| Investments | $ |
2,705,610 |
$ |
2,853,358 |
$ |
2,748,249 |
$ |
2,686,973 |
$ |
2,635,413 |
|||||
| Loans, net of unearned income | 16,686,866 |
16,368,458 |
16,262,633 |
16,165,800 |
15,925,093 |
||||||||||
| Total assets | 21,703,618 |
21,308,670 |
20,974,649 |
20,682,152 |
20,364,810 |
||||||||||
| Deposits | 17,342,717 |
16,388,895 |
16,377,978 |
16,376,159 |
16,249,014 |
||||||||||
| Shareholders' equity | 2,324,016 |
2,308,798 |
2,301,019 |
2,247,573 |
2,283,014 |
||||||||||
| Average Balances | |||||||||||||||
| Investments | $ |
2,829,672 |
$ |
2,790,392 |
$ |
2,699,130 |
$ |
2,646,266 |
$ |
2,596,414 |
|||||
| Loans, net of unearned income | 16,436,507 |
16,316,076 |
16,194,375 |
15,965,637 |
15,862,143 |
||||||||||
| Total assets | 21,457,800 |
21,057,030 |
20,690,365 |
20,512,130 |
20,273,232 |
||||||||||
| Deposits | 16,950,667 |
16,375,456 |
16,275,633 |
16,413,066 |
15,967,234 |
||||||||||
| Shareholders' equity | 2,315,585 |
2,301,258 |
2,265,097 |
2,281,669 |
2,269,093 |
||||||||||
| Income Statement | |||||||||||||||
| Net interest income | $ |
161,260 |
$ |
164,544 |
$ |
163,315 |
$ |
162,944 |
$ |
160,127 |
|||||
| Provision for credit losses | 2,170 |
5,025 |
5,100 |
8,200 |
1,620 |
||||||||||
| Non-interest income | 59,813 |
54,315 |
46,751 |
49,523 |
51,033 |
||||||||||
| Non-interest expense | 146,770 |
144,168 |
137,824 |
140,685 |
135,413 |
||||||||||
| Income before taxes | 72,133 |
69,666 |
67,142 |
63,582 |
74,127 |
||||||||||
| Net income | 62,108 |
59,779 |
56,663 |
58,083 |
65,633 |
||||||||||
| Pre-provision net revenue(1) | 76,741 |
76,114 |
73,775 |
78,320 |
77,370 |
||||||||||
| Per Share | |||||||||||||||
| Net income (basic) | $ |
0.38 |
$ |
0.36 |
$ |
0.33 |
$ |
0.33 |
$ |
0.37 |
|||||
| Net income (diluted) | $ |
0.37 |
$ |
0.35 |
$ |
0.33 |
$ |
0.33 |
$ |
0.37 |
|||||
| Cash dividends | $ |
0.13 |
$ |
0.13 |
$ |
0.13 |
$ |
0.16 |
$ |
0.12 |
|||||
| Tangible common equity(1) | 10.91 |
10.63 |
10.39 |
10.08 |
9.95 |
||||||||||
| Weighted average shares (basic) | 165,324 |
168,343 |
169,884 |
174,571 |
175,942 |
||||||||||
| Weighted average shares (diluted) | 166,126 |
169,168 |
170,909 |
175,473 |
177,128 |
||||||||||
| Asset Quality | |||||||||||||||
| Net charge-offs (recoveries) to average loans (annualized) | 0.15% |
-0.04% |
0.10% |
0.17% |
0.08% |
||||||||||
| Non-performing loans to total loans | 0.81% |
0.90% |
0.85% |
0.86% |
0.75% |
||||||||||
| Non-performing assets to total assets | 0.66% |
0.73% |
0.70% |
0.73% |
0.64% |
||||||||||
| Allowance for credit losses to loans outstanding | 1.04% |
1.08% |
1.05% |
1.05% |
1.05% |
||||||||||
| Allowance for loan losses to loans outstanding | 1.00% |
1.04% |
1.00% |
0.99% |
0.99% |
||||||||||
| Allowance for credit losses to non-performing loans | 127% |
120% |
123% |
121% |
140% |
||||||||||
| Allowance for loan losses to non-performing loans | 122% |
115% |
117% |
115% |
131% |
||||||||||
| Non-performing assets to tangible shareholders' equity and allowance for credit losses(1) | 7.32% |
7.94% |
7.63% |
7.97% |
6.81% |
||||||||||
| Profitability | |||||||||||||||
| Return on average assets | 1.15% |
1.14% |
1.11% |
1.12% |
1.28% |
||||||||||
| Return on average shareholders' equity | 10.64% |
10.42% |
10.15% |
10.10% |
11.48% |
||||||||||
| Return on average shareholders' equity (tangible)(1) | 14.03% |
13.60% |
13.28% |
13.17% |
14.99% |
||||||||||
| Net interest margin | 3.31% |
3.44% |
3.49% |
3.44% |
3.42% |
||||||||||
| Efficiency ratio(1) | 63.6% |
64.2% |
63.9% |
62.2% |
62.5% |
||||||||||
| Capital Ratios | |||||||||||||||
| Tangible common equity ratio(1) | 8.45% |
8.54% |
8.64% |
8.52% |
8.83% |
||||||||||
| Tier 1 leverage ratio(2) | 8.47% |
8.68% |
8.92% |
9.01% |
9.34% |
||||||||||
| Common equity Tier 1 capital ratio(2) | 9.64% |
9.96% |
10.16% |
10.22% |
10.80% |
||||||||||
| Tier 1 capital ratio(2) | 9.64% |
9.96% |
10.16% |
10.22% |
10.80% |
||||||||||
| Total risk-based capital ratio(2) | 12.02% |
12.44% |
12.63% |
12.75% |
13.34% |
||||||||||
| (1) Please refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this document. | |||||||||||||||
| (2) Regulatory capital ratios as of September 30, 2019 are preliminary and prior periods are actual. | |||||||||||||||
| FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||||||||||
| dollars in thousands | ||||||||||||||||||||||||||
% Change from |
||||||||||||||||||||||||||
Sep 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Sep 30 |
Jun 30 |
Sep 30 |
||||||||||||||||||||
2019 |
2019 |
2019 |
2018 |
2018 |
2019 |
2018 |
||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||
| Cash and due from banks | $ |
120,671 |
$ |
107,091 |
$ |
115,884 |
$ |
103,436 |
$ |
90,361 |
12.7 |
% |
33.5 |
% |
||||||||||||
| Other interest-earning assets | 572,499 |
488,968 |
411,037 |
421,534 |
388,256 |
17.1 |
% |
47.5 |
% |
|||||||||||||||||
| Loans held for sale | 33,945 |
45,754 |
27,768 |
27,099 |
27,525 |
(25.8 |
%) |
23.3 |
% |
|||||||||||||||||
| Investment securities | 2,705,610 |
2,853,358 |
2,748,249 |
2,686,973 |
2,635,413 |
(5.2 |
%) |
2.7 |
% |
|||||||||||||||||
| Loans, net of unearned income | 16,686,866 |
16,368,458 |
16,262,633 |
16,165,800 |
15,925,093 |
1.9 |
% |
4.8 |
% |
|||||||||||||||||
| Allowance for loan losses | (166,135 |
) |
(170,233 |
) |
(162,109 |
) |
(160,537 |
) |
(157,810 |
) |
(2.4 |
%) |
5.3 |
% |
||||||||||||
| Net loans | 16,520,731 |
16,198,225 |
16,100,524 |
16,005,263 |
15,767,283 |
2.0 |
% |
4.8 |
% |
|||||||||||||||||
| Premises and equipment | 237,344 |
243,300 |
239,004 |
234,529 |
231,236 |
(2.4 |
%) |
2.6 |
% |
|||||||||||||||||
| Accrued interest receivable | 60,447 |
62,984 |
62,207 |
58,879 |
58,584 |
(4.0 |
%) |
3.2 |
% |
|||||||||||||||||
| Goodwill and intangible assets | 534,178 |
535,249 |
535,356 |
531,556 |
531,556 |
(0.2 |
%) |
0.5 |
% |
|||||||||||||||||
| Other assets | 918,193 |
773,741 |
734,620 |
612,883 |
634,596 |
18.7 |
% |
44.7 |
% |
|||||||||||||||||
| Total Assets | $ |
21,703,618 |
$ |
21,308,670 |
$ |
20,974,649 |
$ |
20,682,152 |
$ |
20,364,810 |
1.9 |
% |
6.6 |
% |
||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||
| Deposits | $ |
17,342,717 |
$ |
16,388,895 |
$ |
16,377,978 |
$ |
16,376,159 |
$ |
16,249,014 |
5.8 |
% |
6.7 |
% |
||||||||||||
| Short-term borrowings | 832,860 |
1,188,390 |
829,016 |
754,777 |
485,565 |
(29.9 |
%) |
71.5 |
% |
|||||||||||||||||
| Other liabilities | 477,311 |
435,171 |
401,324 |
311,364 |
355,102 |
9.7 |
% |
34.4 |
% |
|||||||||||||||||
| FHLB advances and long-term debt | 726,714 |
987,416 |
1,065,312 |
992,279 |
992,115 |
(26.4 |
%) |
(26.8 |
%) |
|||||||||||||||||
| Total Liabilities | 19,379,602 |
18,999,872 |
18,673,630 |
18,434,579 |
18,081,796 |
2.0 |
% |
7.2 |
% |
|||||||||||||||||
| Shareholders' equity | 2,324,016 |
2,308,798 |
2,301,019 |
2,247,573 |
2,283,014 |
0.7 |
% |
1.8 |
% |
|||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ |
21,703,618 |
$ |
21,308,670 |
$ |
20,974,649 |
$ |
20,682,152 |
$ |
20,364,810 |
1.9 |
% |
6.6 |
% |
||||||||||||
| LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||||||||||
Loans, by type: |
||||||||||||||||||||||||||
| Real estate - commercial mortgage | $ |
6,604,634 |
$ |
6,497,973 |
$ |
6,428,688 |
$ |
6,434,285 |
$ |
6,337,984 |
1.6 |
% |
4.2 |
% |
||||||||||||
| Commercial - industrial, financial and agricultural | 4,494,496 |
4,365,248 |
4,429,538 |
4,404,548 |
4,288,823 |
3.0 |
% |
4.8 |
% |
|||||||||||||||||
| Real estate - residential mortgage | 2,570,793 |
2,451,966 |
2,313,908 |
2,251,044 |
2,173,548 |
4.8 |
% |
18.3 |
% |
|||||||||||||||||
| Real estate - home equity | 1,346,115 |
1,386,974 |
1,413,500 |
1,452,137 |
1,469,152 |
(2.9 |
%) |
(8.4 |
%) |
|||||||||||||||||
| Real estate - construction | 913,644 |
922,547 |
953,087 |
916,599 |
979,857 |
(1.0 |
%) |
(6.8 |
%) |
|||||||||||||||||
| Consumer | 464,213 |
452,874 |
433,545 |
419,186 |
390,708 |
2.5 |
% |
18.8 |
% |
|||||||||||||||||
| Leasing and other | 292,971 |
290,876 |
290,367 |
288,001 |
285,021 |
0.7 |
% |
2.8 |
% |
|||||||||||||||||
| Total Loans, net of unearned income | $ |
16,686,866 |
$ |
16,368,458 |
$ |
16,262,633 |
$ |
16,165,800 |
$ |
15,925,093 |
1.9 |
% |
4.8 |
% |
||||||||||||
Deposits, by type: |
||||||||||||||||||||||||||
| Noninterest-bearing demand | $ |
4,240,478 |
$ |
4,226,404 |
$ |
4,255,043 |
$ |
4,310,105 |
$ |
4,216,064 |
0.3 |
% |
0.6 |
% |
||||||||||||
| Interest-bearing demand | 4,771,109 |
4,083,615 |
4,207,442 |
4,240,974 |
4,289,181 |
16.8 |
% |
11.2 |
% |
|||||||||||||||||
| Savings and money market accounts | 5,094,387 |
4,938,998 |
4,907,346 |
4,926,937 |
4,878,982 |
3.1 |
% |
4.4 |
% |
|||||||||||||||||
| Total demand and savings | 14,105,974 |
13,249,017 |
13,369,831 |
13,478,016 |
13,384,227 |
6.5 |
% |
5.4 |
% |
|||||||||||||||||
| Brokered deposits | 256,870 |
246,116 |
251,395 |
176,239 |
164,601 |
4.4 |
% |
56.1 |
% |
|||||||||||||||||
| Time deposits | 2,979,873 |
2,893,762 |
2,756,752 |
2,721,904 |
2,700,186 |
3.0 |
% |
10.4 |
% |
|||||||||||||||||
| Total Deposits | $ |
17,342,717 |
$ |
16,388,895 |
$ |
16,377,978 |
$ |
16,376,159 |
$ |
16,249,014 |
5.8 |
% |
6.7 |
% |
||||||||||||
| Short-term borrowings, by type: | ||||||||||||||||||||||||||
| Customer repurchase agreements | $ |
58,853 |
$ |
56,496 |
$ |
54,440 |
$ |
43,499 |
$ |
82,741 |
4.2 |
% |
(28.9 |
%) |
||||||||||||
| Customer short-term promissory notes | 279,007 |
281,894 |
299,576 |
326,278 |
267,824 |
(1.0 |
%) |
4.2 |
% |
|||||||||||||||||
| Short-term FHLB advances | 475,000 |
650,000 |
475,000 |
385,000 |
85,000 |
(26.9 |
%) |
N/M |
||||||||||||||||||
| Federal funds purchased | 20,000 |
200,000 |
- |
- |
50,000 |
(90.0 |
%) |
(60.0 |
%) |
|||||||||||||||||
| Total Short-term Borrowings | $ |
832,860 |
$ |
1,188,390 |
$ |
829,016 |
$ |
754,777 |
$ |
485,565 |
(29.9 |
%) |
71.5 |
% |
||||||||||||
| N/M - Not meaningful | ||||||||||||||||||||||||||
| FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||||||||||||||||||||
| dollars in thousands | |||||||||||||||||||||||||||||||||
Three Months Ended |
% Change from |
||||||||||||||||||||||||||||||||
Sep 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Sep 30 |
Jun 30 |
Sep 30 |
Nine Months Ended Sep 30 |
||||||||||||||||||||||||||
2019 |
2019 |
2019 |
2018 |
2018 |
2019 |
2018 |
2019 |
2018 |
% Change |
||||||||||||||||||||||||
| Interest Income: | |||||||||||||||||||||||||||||||||
| Interest income | $ |
208,413 |
$ |
210,034 |
$ |
204,700 |
$ |
200,609 |
$ |
194,048 |
(0.8 |
%) |
7.4 |
% |
$ |
623,147 |
$ |
557,905 |
11.7 |
% |
|||||||||||||
| Interest expense | 47,153 |
45,490 |
41,385 |
37,665 |
33,921 |
3.7 |
% |
39.0 |
% |
134,028 |
90,393 |
48.3 |
% |
||||||||||||||||||||
| Net Interest Income | 161,260 |
164,544 |
163,315 |
162,944 |
160,127 |
(2.0 |
%) |
0.7 |
% |
489,119 |
467,512 |
4.6 |
% |
||||||||||||||||||||
| Provision for credit losses | 2,170 |
5,025 |
5,100 |
8,200 |
1,620 |
(56.8 |
%) |
34.0 |
% |
12,295 |
38,707 |
(68.2 |
%) |
||||||||||||||||||||
| Net Interest Income after Provision | 159,090 |
159,519 |
158,215 |
154,744 |
158,507 |
(0.3 |
%) |
0.4 |
% |
476,824 |
428,805 |
11.2 |
% |
||||||||||||||||||||
| Non-Interest Income: | |||||||||||||||||||||||||||||||||
| Wealth management fees | 13,867 |
14,153 |
13,239 |
13,408 |
13,066 |
(2.0 |
%) |
6.1 |
% |
41,259 |
38,740 |
6.5 |
% |
||||||||||||||||||||
| Mortgage banking income | 6,658 |
6,593 |
4,772 |
4,774 |
4,896 |
1.0 |
% |
36.0 |
% |
18,023 |
14,252 |
26.5 |
% |
||||||||||||||||||||
| Consumer banking income: | |||||||||||||||||||||||||||||||||
| Card income | 5,791 |
5,047 |
4,686 |
4,966 |
5,382 |
14.7 |
% |
7.6 |
% |
15,524 |
14,531 |
6.8 |
% |
||||||||||||||||||||
| Overdraft fees | 4,682 |
4,413 |
4,104 |
4,653 |
4,443 |
6.1 |
% |
5.4 |
% |
13,199 |
12,952 |
1.9 |
% |
||||||||||||||||||||
| Other consumer banking income | 2,860 |
2,907 |
2,587 |
2,799 |
2,840 |
(1.6 |
%) |
0.7 |
% |
8,354 |
8,522 |
(2.0 |
%) |
||||||||||||||||||||
| Total consumer banking income | 13,333 |
12,367 |
11,377 |
12,418 |
12,665 |
7.8 |
% |
5.3 |
% |
37,077 |
36,005 |
3.0 |
% |
||||||||||||||||||||
| Commercial banking income: | |||||||||||||||||||||||||||||||||
| Merchant and card income | 6,166 |
6,512 |
5,558 |
5,656 |
6,307 |
(5.3 |
%) |
(2.2 |
%) |
18,236 |
17,770 |
2.6 |
% |
||||||||||||||||||||
| Cash management fees | 4,696 |
4,638 |
4,361 |
4,340 |
4,472 |
1.3 |
% |
5.0 |
% |
13,695 |
13,242 |
3.4 |
% |
||||||||||||||||||||
| Commercial loan interest rate swap fees | 3,944 |
3,477 |
2,028 |
2,540 |
3,607 |
13.4 |
% |
9.3 |
% |
9,449 |
7,291 |
29.6 |
% |
||||||||||||||||||||
| Other commercial banking income | 3,478 |
3,815 |
2,816 |
3,466 |
3,154 |
(8.8 |
%) |
10.3 |
% |
10,109 |
9,625 |
5.0 |
% |
||||||||||||||||||||
| Total commercial banking income | 18,284 |
18,442 |
14,763 |
16,002 |
17,540 |
(0.9 |
%) |
4.2 |
% |
51,489 |
47,928 |
7.4 |
% |
||||||||||||||||||||
| Other income | 3,179 |
2,584 |
2,535 |
2,921 |
2,852 |
23.0 |
% |
11.5 |
% |
8,298 |
9,040 |
(8.2 |
%) |
||||||||||||||||||||
| Non-Interest Income before Investment Securities Gains | 55,321 |
54,139 |
46,686 |
49,523 |
51,019 |
2.2 |
% |
8.4 |
% |
156,146 |
145,965 |
7.0 |
% |
||||||||||||||||||||
| Investment securities gains, net | 4,492 |
176 |
65 |
- |
14 |
N/M |
N/M |
4,733 |
37 |
N/M |
|||||||||||||||||||||||
| Total Non-Interest Income | 59,813 |
54,315 |
46,751 |
49,523 |
51,033 |
10.1 |
% |
17.2 |
% |
160,879 |
146,002 |
10.2 |
% |
||||||||||||||||||||
| Non-Interest Expense: | |||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 78,211 |
78,991 |
77,757 |
75,745 |
76,770 |
(1.0 |
%) |
1.9 |
% |
234,959 |
227,457 |
3.3 |
% |
||||||||||||||||||||
| Net occupancy | 12,368 |
14,469 |
12,909 |
12,708 |
12,578 |
(14.5 |
%) |
(1.7 |
%) |
39,746 |
38,970 |
2.0 |
% |
||||||||||||||||||||
| Other outside services | 12,163 |
11,259 |
8,352 |
8,944 |
9,122 |
8.0 |
% |
33.3 |
% |
31,774 |
24,814 |
28.0 |
% |
||||||||||||||||||||
| Data processing and software | 11,590 |
11,268 |
10,353 |
10,203 |
10,157 |
2.9 |
% |
14.1 |
% |
33,211 |
31,083 |
6.8 |
% |
||||||||||||||||||||
| Equipment | 3,459 |
3,299 |
3,342 |
3,275 |
3,000 |
4.8 |
% |
15.3 |
% |
10,100 |
9,968 |
1.3 |
% |
||||||||||||||||||||
| Professional fees | 3,331 |
2,970 |
3,960 |
3,546 |
3,427 |
12.2 |
% |
(2.8 |
%) |
10,261 |
10,615 |
(3.3 |
%) |
||||||||||||||||||||
| Marketing | 3,322 |
2,863 |
2,160 |
1,577 |
2,692 |
16.0 |
% |
23.4 |
% |
8,345 |
7,277 |
14.7 |
% |
||||||||||||||||||||
| Amortization of tax credit investments | 1,533 |
1,492 |
1,491 |
6,538 |
1,637 |
2.7 |
% |
(6.4 |
%) |
4,516 |
4,911 |
(8.0 |
%) |
||||||||||||||||||||
| FDIC insurance | 239 |
2,755 |
2,609 |
2,563 |
2,814 |
(91.3 |
%) |
(91.5 |
%) |
5,603 |
8,430 |
(33.5 |
%) |
||||||||||||||||||||
| Intangible amortization | 1,071 |
107 |
107 |
- |
- |
N/M |
100.0 |
% |
1,285 |
- |
100.0 |
% |
|||||||||||||||||||||
| Other | 19,483 |
14,695 |
14,784 |
15,586 |
13,216 |
32.6 |
% |
47.4 |
% |
48,962 |
41,894 |
16.9 |
% |
||||||||||||||||||||
| Total Non-Interest Expense | 146,770 |
144,168 |
137,824 |
140,685 |
135,413 |
1.8 |
% |
8.4 |
% |
428,762 |
405,419 |
5.8 |
% |
||||||||||||||||||||
| Income before Income Taxes | 72,133 |
69,666 |
67,142 |
63,582 |
74,127 |
3.5 |
% |
(2.7 |
%) |
208,941 |
169,388 |
23.4 |
% |
||||||||||||||||||||
| Income tax expense | 10,025 |
9,887 |
10,479 |
5,499 |
8,494 |
1.4 |
% |
18.0 |
% |
30,391 |
19,078 |
59.3 |
% |
||||||||||||||||||||
| Net Income | $ |
62,108 |
$ |
59,779 |
$ |
56,663 |
$ |
58,083 |
$ |
65,633 |
3.9 |
% |
(5.4 |
%) |
$ |
178,550 |
$ |
150,310 |
18.8 |
% |
|||||||||||||
| PER SHARE: | |||||||||||||||||||||||||||||||||
| Net income: | |||||||||||||||||||||||||||||||||
| Basic | $ |
0.38 |
$ |
0.36 |
$ |
0.33 |
$ |
0.33 |
$ |
0.37 |
5.6 |
% |
2.7 |
% |
$ |
1.06 |
$ |
0.86 |
23.3 |
% |
|||||||||||||
| Diluted | 0.37 |
0.35 |
0.33 |
0.33 |
0.37 |
5.7 |
% |
- |
1.06 |
0.85 |
24.7 |
% |
|||||||||||||||||||||
| Cash dividends | 0.13 |
0.13 |
0.13 |
0.16 |
0.12 |
- |
8.3 |
% |
0.39 |
0.36 |
8.3 |
% |
|||||||||||||||||||||
| Weighted average shares (basic) | 165,324 |
168,343 |
169,884 |
174,571 |
175,942 |
(1.8 |
%) |
(6.0 |
%) |
167,834 |
175,672 |
(4.5 |
%) |
||||||||||||||||||||
| Weighted average shares (diluted) | 166,126 |
169,168 |
170,909 |
175,473 |
177,128 |
(1.8 |
%) |
(6.2 |
%) |
168,722 |
176,848 |
(4.6 |
%) |
||||||||||||||||||||
| N/M - not meaningful | |||||||||||||||||||||||||||||||||
| FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||||||||||||||||
| dollars in thousands | |||||||||||||||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||||||||||||||
September 30, 2019 |
June 30, 2019 |
September 30, 2018 |
|||||||||||||||||||||||||||||||
Average |
Yield/ |
Average |
Yield/ |
Average |
Yield/ |
||||||||||||||||||||||||||||
Balance |
Interest (1) |
Rate |
Balance |
Interest (1) |
Rate |
Balance |
Interest (1) |
Rate |
|||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||
| Loans, net of unearned income | $ |
16,436,507 |
$ |
188,280 |
4.55 |
% |
$ |
16,316,076 |
$ |
190,693 |
4.69 |
% |
$ |
15,862,143 |
$ |
177,329 |
4.44 |
% |
|||||||||||||||
| Taxable investment securities | 2,282,292 |
15,565 |
2.73 |
% |
2,348,443 |
15,935 |
2.71 |
% |
2,239,837 |
13,956 |
2.49 |
% |
|||||||||||||||||||||
| Tax-exempt investment securities | 516,907 |
4,650 |
3.57 |
% |
444,227 |
4,140 |
3.70 |
% |
415,908 |
3,841 |
3.67 |
% |
|||||||||||||||||||||
| Total Investment Securities | 2,799,199 |
20,215 |
2.88 |
% |
2,792,670 |
20,075 |
2.87 |
% |
2,655,745 |
17,797 |
2.68 |
% |
|||||||||||||||||||||
| Loans held for sale | 31,898 |
466 |
5.83 |
% |
24,568 |
350 |
5.71 |
% |
27,195 |
388 |
5.71 |
% |
|||||||||||||||||||||
| Other interest-earning assets | 509,579 |
2,709 |
2.12 |
% |
409,617 |
2,168 |
2.12 |
% |
416,129 |
1,601 |
1.53 |
% |
|||||||||||||||||||||
| Total Interest-earning Assets | 19,777,183 |
211,670 |
4.25 |
% |
19,542,931 |
213,286 |
4.37 |
% |
18,961,212 |
197,115 |
4.13 |
% |
|||||||||||||||||||||
| Noninterest-earning assets: | |||||||||||||||||||||||||||||||||
| Cash and due from banks | 120,967 |
116,285 |
100,568 |
||||||||||||||||||||||||||||||
| Premises and equipment | 240,383 |
240,666 |
231,280 |
||||||||||||||||||||||||||||||
| Other assets | 1,491,115 |
1,321,057 |
1,137,293 |
||||||||||||||||||||||||||||||
| Less: allowance for loan losses | (171,848 |
) |
(163,909 |
) |
(157,121 |
) |
|||||||||||||||||||||||||||
| Total Assets | $ |
21,457,800 |
$ |
21,057,030 |
$ |
20,273,232 |
|||||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
| Demand deposits | $ |
4,448,112 |
$ |
9,163 |
0.82 |
% |
$ |
4,186,280 |
$ |
8,172 |
0.78 |
% |
$ |
4,116,051 |
$ |
6,378 |
0.61 |
% |
|||||||||||||||
| Savings deposits | 5,026,316 |
11,059 |
0.87 |
% |
4,925,788 |
10,549 |
0.86 |
% |
4,718,148 |
7,569 |
0.64 |
% |
|||||||||||||||||||||
| Brokered deposits | 253,426 |
1,536 |
2.40 |
% |
246,154 |
1,582 |
2.58 |
% |
162,467 |
840 |
2.05 |
% |
|||||||||||||||||||||
| Time deposits | 2,974,993 |
13,979 |
1.86 |
% |
2,816,424 |
12,247 |
1.74 |
% |
2,672,548 |
9,032 |
1.34 |
% |
|||||||||||||||||||||
| Total Interest-bearing Deposits | 12,702,847 |
35,737 |
1.12 |
% |
12,174,646 |
32,550 |
1.07 |
% |
11,669,214 |
23,819 |
0.81 |
% |
|||||||||||||||||||||
| Short-term borrowings | 919,697 |
4,156 |
1.78 |
% |
941,504 |
4,462 |
1.89 |
% |
724,132 |
2,002 |
1.09 |
% |
|||||||||||||||||||||
| FHLB advances and long-term debt | 842,706 |
7,260 |
3.44 |
% |
1,051,919 |
8,480 |
3.23 |
% |
988,748 |
8,100 |
3.26 |
% |
|||||||||||||||||||||
| Total Interest-bearing Liabilities | 14,465,250 |
47,153 |
1.29 |
% |
14,168,069 |
45,492 |
1.29 |
% |
13,382,094 |
33,921 |
1.01 |
% |
|||||||||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||
| Demand deposits | 4,247,820 |
4,200,810 |
4,298,020 |
||||||||||||||||||||||||||||||
| Other | 429,145 |
386,893 |
324,025 |
||||||||||||||||||||||||||||||
| Total Liabilities | 19,142,215 |
18,755,772 |
18,004,139 |
||||||||||||||||||||||||||||||
| Shareholders' equity | 2,315,585 |
2,301,258 |
2,269,093 |
||||||||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ |
21,457,800 |
$ |
21,057,030 |
$ |
20,273,232 |
|||||||||||||||||||||||||||
| Net interest income/net interest margin (fully taxable equivalent) | 164,517 |
3.31 |
% |
167,794 |
3.44 |
% |
163,194 |
3.42 |
% |
||||||||||||||||||||||||
| Tax equivalent adjustment | (3,257 |
) |
(3,250 |
) |
(3,067 |
) |
|||||||||||||||||||||||||||
| Net interest income | $ |
161,260 |
$ |
164,544 |
$ |
160,127 |
|||||||||||||||||||||||||||
| (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Note: The weighted average interest rate on total average interest-bearing liabilities and average non-interest bearing demand deposits (“cost of funds”) was 1.00%, 0.99% and 0.76% for the three months ended September 30, 2019, June 30, 2019 and September 30, 2018, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | |||||||||||||||||||||
Three Months Ended |
% Change from |
||||||||||||||||||||
Sep 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Sep 30 |
Jun 30 |
Sep 30 |
|||||||||||||||
2019 |
2019 |
2019 |
2018 |
2018 |
2019 |
2018 |
|||||||||||||||
| Loans, by type: | |||||||||||||||||||||
| Real estate - commercial mortgage | $ |
6,489,456 |
$ |
6,424,213 |
$ |
6,378,145 |
$ |
6,343,024 |
$ |
6,309,663 |
1.0 |
% |
2.8 |
% |
|||||||
| Commercial - industrial, financial and agricultural | 4,414,992 |
4,440,860 |
4,462,609 |
4,329,937 |
4,304,320 |
(0.6 |
%) |
2.6 |
% |
||||||||||||
| Real estate - residential mortgage | 2,512,899 |
2,366,685 |
2,276,611 |
2,209,993 |
2,142,977 |
6.2 |
% |
17.3 |
% |
||||||||||||
| Real estate - home equity | 1,364,161 |
1,404,141 |
1,433,574 |
1,459,647 |
1,474,011 |
(2.8 |
%) |
(7.5 |
%) |
||||||||||||
| Real estate - construction | 905,060 |
943,080 |
930,246 |
931,724 |
969,575 |
(4.0 |
%) |
(6.7 |
%) |
||||||||||||
| Consumer | 457,524 |
445,666 |
424,480 |
406,436 |
375,656 |
2.7 |
% |
21.8 |
% |
||||||||||||
| Leasing and other | 292,415 |
291,431 |
288,710 |
284,876 |
285,941 |
0.3 |
% |
2.3 |
% |
||||||||||||
| Total Loans, net of unearned income | $ |
16,436,507 |
$ |
16,316,076 |
$ |
16,194,375 |
$ |
15,965,637 |
$ |
15,862,143 |
0.7 |
% |
3.6 |
% |
|||||||
| Deposits, by type: | |||||||||||||||||||||
| Noninterest-bearing demand | $ |
4,247,820 |
$ |
4,200,810 |
$ |
4,222,875 |
$ |
4,321,776 |
$ |
4,298,020 |
1.1 |
% |
(1.2 |
%) |
|||||||
| Interest-bearing demand | 4,448,112 |
4,186,280 |
4,153,984 |
4,225,157 |
4,116,051 |
6.3 |
% |
8.1 |
% |
||||||||||||
| Savings and money market accounts | 5,026,316 |
4,925,788 |
4,912,856 |
4,979,712 |
4,718,148 |
2.0 |
% |
6.5 |
% |
||||||||||||
| Total demand and savings | 13,722,248 |
13,312,878 |
13,289,715 |
13,526,645 |
13,132,219 |
3.1 |
% |
4.5 |
% |
||||||||||||
| Brokered deposits | 253,426 |
246,154 |
220,115 |
164,280 |
162,467 |
3.0 |
% |
56.0 |
% |
||||||||||||
| Time deposits | 2,974,993 |
2,816,424 |
2,765,803 |
2,722,141 |
2,672,548 |
5.6 |
% |
11.3 |
% |
||||||||||||
| Total Deposits | $ |
16,950,667 |
$ |
16,375,456 |
$ |
16,275,633 |
$ |
16,413,066 |
$ |
15,967,234 |
3.5 |
% |
6.2 |
% |
|||||||
| Short-term borrowings, by type: | |||||||||||||||||||||
| Customer repurchase agreements | $ |
61,230 |
$ |
56,171 |
$ |
56,707 |
$ |
64,102 |
$ |
148,660 |
9.0 |
% |
(58.8 |
%) |
|||||||
| Customer short-term promissory notes | 271,663 |
288,696 |
312,092 |
310,296 |
298,896 |
(5.9 |
%) |
(9.1 |
%) |
||||||||||||
| Federal funds purchased | 101,022 |
181,769 |
157,122 |
43 |
145,793 |
(44.4 |
%) |
(30.7 |
%) |
||||||||||||
| Short-term FHLB advances and other borrowings | 485,782 |
414,868 |
294,133 |
130,109 |
130,783 |
17.1 |
% |
N/M |
|||||||||||||
| Total Short-term Borrowings | $ |
919,697 |
$ |
941,504 |
$ |
820,054 |
$ |
504,550 |
$ |
724,132 |
(2.3 |
%) |
27.0 |
% |
|||||||
| N/M - Not meaningful | |||||||||||||||||||||
FULTON FINANCIAL CORPORATION |
|||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||||||||||
| dollars in thousands | |||||||||||||||||||||||||||
Nine Months Ended September 30 |
|||||||||||||||||||||||||||
2019 |
2018 |
||||||||||||||||||||||||||
Average |
Average |
||||||||||||||||||||||||||
Balance |
Interest (1) |
Yield/Rate |
Balance |
Interest (1) |
Yield/Rate |
||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||
| Loans, net of unearned income | $ |
16,316,540 |
$ |
565,095 |
4.63 |
% |
$ |
15,764,587 |
$ |
509,596 |
4.32 |
% |
|||||||||||||||
| Taxable investment securities | 2,305,472 |
46,935 |
2.71 |
% |
2,233,972 |
41,034 |
2.45 |
% |
|||||||||||||||||||
| Tax-exempt investment securities | 468,689 |
12,940 |
3.66 |
% |
412,496 |
11,307 |
3.64 |
% |
|||||||||||||||||||
| Equity securities | - |
- |
- |
167 |
5 |
13.01 |
% |
||||||||||||||||||||
| Total Investment Securities | 2,774,161 |
59,875 |
2.87 |
% |
2,646,635 |
52,346 |
2.63 |
% |
|||||||||||||||||||
| Loans held for sale | 24,357 |
1,056 |
5.78 |
% |
23,175 |
888 |
5.11 |
% |
|||||||||||||||||||
| Other interest-earning assets | 428,982 |
6,879 |
2.14 |
% |
345,512 |
4,016 |
1.55 |
% |
|||||||||||||||||||
| Total Interest-earning Assets | 19,544,040 |
632,905 |
4.33 |
% |
18,779,909 |
566,846 |
4.03 |
% |
|||||||||||||||||||
| Noninterest-earning assets: | |||||||||||||||||||||||||||
| Cash and due from banks | 116,019 |
102,352 |
|||||||||||||||||||||||||
| Premises and equipment | 239,402 |
231,195 |
|||||||||||||||||||||||||
| Other assets | 1,337,482 |
1,121,267 |
|||||||||||||||||||||||||
| Less: allowance for loan losses | (165,733 |
) |
(162,368 |
) |
|||||||||||||||||||||||
| Total Assets | $ |
21,071,210 |
$ |
20,072,355 |
|||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||
| Demand deposits | $ |
4,263,869 |
$ |
24,854 |
0.78 |
% |
$ |
4,009,596 |
$ |
15,341 |
0.51 |
% |
|||||||||||||||
| Savings deposits | 4,955,403 |
31,570 |
0.85 |
% |
4,584,377 |
17,481 |
0.51 |
% |
|||||||||||||||||||
| Brokered deposits | 240,020 |
4,500 |
2.51 |
% |
107,569 |
1,511 |
1.88 |
% |
|||||||||||||||||||
| Time deposits | 2,853,172 |
37,050 |
1.74 |
% |
2,660,008 |
25,220 |
1.27 |
% |
|||||||||||||||||||
| Total Interest-bearing Deposits | 12,312,464 |
97,974 |
1.06 |
% |
11,361,550 |
59,553 |
0.70 |
% |
|||||||||||||||||||
| Short-term borrowings | 894,116 |
12,200 |
1.81 |
% |
880,745 |
7,079 |
1.07 |
% |
|||||||||||||||||||
| FHLB advances and long-term debt | 965,111 |
23,854 |
3.30 |
% |
973,751 |
23,761 |
3.26 |
% |
|||||||||||||||||||
| Total Interest-bearing Liabilities | 14,171,691 |
134,028 |
1.26 |
% |
13,216,046 |
90,393 |
0.91 |
% |
|||||||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||||||
| Demand deposits | 4,223,927 |
4,275,443 |
|||||||||||||||||||||||||
| Other | 381,427 |
333,832 |
|||||||||||||||||||||||||
| Total Liabilities | 18,777,045 |
17,825,321 |
|||||||||||||||||||||||||
| Shareholders' equity | 2,294,165 |
2,247,034 |
|||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ |
21,071,210 |
$ |
20,072,355 |
|||||||||||||||||||||||
| Net interest income/net interest margin (fully taxable equivalent) | 498,877 |
3.41 |
% |
476,453 |
3.39 |
% |
|||||||||||||||||||||
| Tax equivalent adjustment | (9,758 |
) |
(8,941 |
) |
|||||||||||||||||||||||
| Net interest income | $ |
489,119 |
$ |
467,512 |
|||||||||||||||||||||||
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. |
|||||||||||||
| Note: The weighted average interest rate on total average interest-bearing liabilities and average non-interest bearing demand deposits (“cost of funds”) was 0.97% and 0.69% for the nine months ended September 30, 2019 and 2018, respectively. |
| AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | |||||||||
Nine Months Ended |
|||||||||
September 30 |
|||||||||
2019 |
2018 |
% Change |
|||||||
| Loans, by type: | |||||||||
| Real estate - commercial mortgage | $ |
6,431,012 |
$ |
6,304,687 |
2.0 |
% |
|||
| Commercial - industrial, financial and agricultural | 4,439,314 |
4,309,408 |
3.0 |
% |
|||||
| Real estate - residential mortgage | 2,386,264 |
2,043,223 |
16.8 |
% |
|||||
| Real estate - home equity | 1,400,371 |
1,505,069 |
(7.0 |
%) |
|||||
| Real estate - construction | 926,036 |
977,327 |
(5.2 |
%) |
|||||
| Consumer | 442,678 |
345,937 |
28.0 |
% |
|||||
| Leasing and other | 290,865 |
278,936 |
4.3 |
% |
|||||
| Total Loans, net of unearned income | $ |
16,316,540 |
$ |
15,764,587 |
3.5 |
% |
|||
| Deposits, by type: | |||||||||
| Noninterest-bearing demand | $ |
4,223,927 |
$ |
4,275,443 |
(1.2 |
%) |
|||
| Interest-bearing demand | 4,263,869 |
4,009,596 |
6.3 |
% |
|||||
| Savings and money market accounts | 4,955,403 |
4,584,377 |
8.1 |
% |
|||||
| Total demand and savings | 13,443,199 |
12,869,416 |
4.5 |
% |
|||||
| Brokered deposits | 240,020 |
107,569 |
N/M |
||||||
| Time deposits | 2,853,172 |
2,660,008 |
7.3 |
% |
|||||
| Total Deposits | $ |
16,536,391 |
$ |
15,636,993 |
5.8 |
% |
|||
| Short-term borrowings, by type: | |||||||||
| Customer repurchase agreements | $ |
250,568 |
$ |
162,345 |
54.3 |
% |
|||
| Customer short-term promissory notes | 290,669 |
307,854 |
(5.6 |
%) |
|||||
| Federal funds purchased | 146,432 |
307,114 |
(52.3 |
%) |
|||||
| Short-term FHLB advances and other borrowings | 206,447 |
103,432 |
99.6 |
% |
|||||
| Total Short-term Borrowings | $ |
894,116 |
$ |
880,745 |
1.5 |
% |
|||
| N/M - Not meaningful | |||||||||
| FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||
| ASSET QUALITY INFORMATION (UNAUDITED) | ||||||||||||||||||||||||||||
| dollars in thousands | ||||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||
Sep 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Sep 30 |
Sep 30 |
Sep 30 |
||||||||||||||||||||||
2019 |
2019 |
2019 |
2018 |
2018 |
2019 |
2018 |
||||||||||||||||||||||
| ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||||||||||
| Balance at beginning of period | $ |
176,941 |
$ |
170,372 |
$ |
169,410 |
$ |
167,826 |
$ |
169,247 |
$ |
169,410 |
$ |
176,084 |
||||||||||||||
| Loans charged off: | ||||||||||||||||||||||||||||
| Commercial - industrial, financial and agricultural | (7,181 |
) |
(1,895 |
) |
(2,787 |
) |
(6,263 |
) |
(3,541 |
) |
(11,863 |
) |
(46,178 |
) |
||||||||||||||
| Real estate - commercial mortgage | (394 |
) |
(230 |
) |
(1,145 |
) |
(762 |
) |
(650 |
) |
(1,769 |
) |
(1,283 |
) |
||||||||||||||
| Consumer and home equity | (1,375 |
) |
(1,001 |
) |
(902 |
) |
(1,884 |
) |
(1,415 |
) |
(3,278 |
) |
(4,243 |
) |
||||||||||||||
| Real estate - residential mortgage | (533 |
) |
(134 |
) |
(655 |
) |
(446 |
) |
(483 |
) |
(1,322 |
) |
(1,128 |
) |
||||||||||||||
| Real estate - construction | (45 |
) |
(3 |
) |
(95 |
) |
(392 |
) |
(212 |
) |
(143 |
) |
(976 |
) |
||||||||||||||
| Leasing and other | (600 |
) |
(448 |
) |
(785 |
) |
(889 |
) |
(582 |
) |
(1,833 |
) |
(1,632 |
) |
||||||||||||||
| Total loans charged off | (10,128 |
) |
(3,711 |
) |
(6,369 |
) |
(10,636 |
) |
(6,883 |
) |
(20,208 |
) |
(55,440 |
) |
||||||||||||||
| Recoveries of loans previously charged off: | ||||||||||||||||||||||||||||
| Commercial - industrial, financial and agricultural | 2,311 |
2,680 |
1,243 |
2,647 |
731 |
6,234 |
2,347 |
|||||||||||||||||||||
| Real estate - commercial mortgage | 444 |
169 |
136 |
94 |
928 |
749 |
1,528 |
|||||||||||||||||||||
| Consumer and home equity | 348 |
802 |
407 |
684 |
607 |
1,557 |
1,709 |
|||||||||||||||||||||
| Real estate - residential mortgage | 440 |
211 |
132 |
100 |
317 |
783 |
520 |
|||||||||||||||||||||
| Real estate - construction | 164 |
1,245 |
84 |
415 |
664 |
1,493 |
1,414 |
|||||||||||||||||||||
| Leasing and other | 107 |
148 |
229 |
80 |
595 |
484 |
957 |
|||||||||||||||||||||
| Recoveries of loans previously charged off | 3,814 |
5,255 |
2,231 |
4,020 |
3,842 |
11,300 |
8,475 |
|||||||||||||||||||||
| Net loans charged off | (6,314 |
) |
1,544 |
(4,138 |
) |
(6,616 |
) |
(3,041 |
) |
(8,908 |
) |
(46,965 |
) |
|||||||||||||||
| Provision for credit losses | 2,170 |
5,025 |
5,100 |
8,200 |
1,620 |
12,295 |
38,707 |
|||||||||||||||||||||
| Balance at end of period | $ |
172,797 |
$ |
176,941 |
$ |
170,372 |
$ |
169,410 |
$ |
167,826 |
$ |
172,797 |
$ |
167,826 |
||||||||||||||
| Net charge-offs to average loans (annualized) | 0.15 |
% |
(0.04 |
%) |
0.10 |
% |
0.17 |
% |
0.08 |
% |
0.07 |
% |
0.40 |
% |
||||||||||||||
| NON-PERFORMING ASSETS: | ||||||||||||||||||||||||||||
| Non-accrual loans | $ |
124,287 |
$ |
133,118 |
$ |
127,141 |
$ |
128,572 |
$ |
106,433 |
||||||||||||||||||
| Loans 90 days past due and accruing | 11,689 |
14,598 |
11,540 |
11,106 |
13,663 |
|||||||||||||||||||||||
| Total non-performing loans | 135,976 |
147,716 |
138,681 |
139,678 |
120,096 |
|||||||||||||||||||||||
| Other real estate owned | 7,706 |
7,241 |
9,012 |
10,518 |
10,684 |
|||||||||||||||||||||||
| Total non-performing assets | $ |
143,682 |
$ |
154,957 |
$ |
147,693 |
$ |
150,196 |
$ |
130,780 |
||||||||||||||||||
| NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||||||||||
| Commercial - industrial, financial and agricultural | $ |
37,126 |
$ |
47,260 |
$ |
50,148 |
$ |
51,269 |
$ |
43,391 |
||||||||||||||||||
| Real estate - commercial mortgage | 45,710 |
43,850 |
29,817 |
32,153 |
37,393 |
|||||||||||||||||||||||
| Real estate - residential mortgage | 20,150 |
21,659 |
22,299 |
19,101 |
19,076 |
|||||||||||||||||||||||
| Consumer and home equity | 11,012 |
12,378 |
10,770 |
10,178 |
10,362 |
|||||||||||||||||||||||
| Real estate - construction | 4,312 |
4,632 |
7,039 |
7,390 |
9,784 |
|||||||||||||||||||||||
| Leasing | 17,666 |
17,937 |
18,608 |
19,587 |
90 |
|||||||||||||||||||||||
| Total non-performing loans | $ |
135,976 |
$ |
147,716 |
$ |
138,681 |
$ |
139,678 |
$ |
120,096 |
||||||||||||||||||
| 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 |
|||||||||||||||||||||
Sep 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Sep 30 |
|||||||||||||||||
2019 |
2019 |
2019 |
2018 |
2018 |
|||||||||||||||||
| Shareholders' equity (tangible), per share | |||||||||||||||||||||
| Shareholders' equity | $ |
2,324,016 |
$ |
2,308,798 |
$ |
2,301,019 |
$ |
2,247,573 |
$ |
2,283,014 |
|||||||||||
| Less: Goodwill and intangible assets | (534,178 |
) |
(535,249 |
) |
(535,356 |
) |
(531,556 |
) |
(531,556 |
) |
|||||||||||
| Tangible shareholders' equity (numerator) | $ |
1,789,838 |
$ |
1,773,549 |
$ |
1,765,663 |
$ |
1,716,017 |
$ |
1,751,458 |
|||||||||||
| Shares outstanding, end of period (denominator) | 164,036 |
166,903 |
169,923 |
170,184 |
176,019 |
||||||||||||||||
| Shareholders' equity (tangible), per share | $ |
10.91 |
$ |
10.63 |
$ |
10.39 |
$ |
10.08 |
$ |
9.95 |
|||||||||||
| Return on average shareholders' equity (tangible) | |||||||||||||||||||||
| Net income | $ |
62,108 |
$ |
59,779 |
$ |
56,663 |
$ |
58,083 |
$ |
65,633 |
|||||||||||
| Plus: Intangible amortization, net of tax | 846 |
85 |
85 |
- |
- |
||||||||||||||||
| (Numerator) | $ |
62,954 |
$ |
59,864 |
$ |
56,748 |
$ |
58,083 |
$ |
65,633 |
|||||||||||
| Average shareholders' equity | $ |
2,315,585 |
$ |
2,301,258 |
$ |
2,265,097 |
$ |
2,281,669 |
$ |
2,269,093 |
|||||||||||
| Less: Average goodwill and intangible assets | (535,184 |
) |
(535,301 |
) |
(531,767 |
) |
(531,556 |
) |
(531,556 |
) |
|||||||||||
| Average tangible shareholders' equity (denominator) | $ |
1,780,401 |
$ |
1,765,957 |
$ |
1,733,330 |
$ |
1,750,113 |
$ |
1,737,537 |
|||||||||||
| Return on average shareholders' equity (tangible), annualized | 14.03 |
% |
13.60 |
% |
13.28 |
% |
13.17 |
% |
14.99 |
% |
|||||||||||
| Tangible Common Equity to Tangible Assets (TCE Ratio) | |||||||||||||||||||||
| Shareholders' equity | $ |
2,324,016 |
$ |
2,308,798 |
$ |
2,301,019 |
$ |
2,247,573 |
$ |
2,283,014 |
|||||||||||
| Less: Intangible assets | (534,178 |
) |
(535,249 |
) |
(535,356 |
) |
(531,556 |
) |
(531,556 |
) |
|||||||||||
| Tangible shareholders' equity (numerator) | $ |
1,789,838 |
$ |
1,773,549 |
$ |
1,765,663 |
$ |
1,716,017 |
$ |
1,751,458 |
|||||||||||
| Total assets | $ |
21,703,618 |
$ |
21,308,670 |
$ |
20,974,649 |
$ |
20,682,152 |
$ |
20,364,810 |
|||||||||||
| Less: Intangible assets | (534,178 |
) |
(535,249 |
) |
(535,356 |
) |
(531,556 |
) |
(531,556 |
) |
|||||||||||
| Total tangible assets (denominator) | $ |
21,169,440 |
$ |
20,773,421 |
$ |
20,439,293 |
$ |
20,150,596 |
$ |
19,833,254 |
|||||||||||
| Tangible Common Equity to Tangible Assets | 8.45 |
% |
8.54 |
% |
8.64 |
% |
8.52 |
% |
8.83 |
% |
|||||||||||
| Efficiency ratio | |||||||||||||||||||||
| Non-interest expense | $ |
146,770 |
$ |
144,168 |
$ |
137,824 |
$ |
140,685 |
$ |
135,413 |
|||||||||||
| Less: Intangible amortization | (1,071 |
) |
(107 |
) |
(107 |
) |
- |
- |
|||||||||||||
| Less: Amortization of tax credit investments | (1,533 |
) |
(1,492 |
) |
(1,491 |
) |
(6,538 |
) |
(1,637 |
) |
|||||||||||
| Less: Loss on redemption of FHLB advances | (4,326 |
) |
- |
- |
- |
- |
|||||||||||||||
| Non-interest expense (numerator) | $ |
139,840 |
$ |
142,569 |
$ |
136,226 |
$ |
134,147 |
$ |
133,776 |
|||||||||||
| Net interest income (fully taxable equivalent) | $ |
164,517 |
$ |
167,794 |
$ |
166,564 |
$ |
166,123 |
$ |
163,194 |
|||||||||||
| Plus: Total Non-interest income | 59,813 |
54,315 |
46,751 |
49,523 |
51,033 |
||||||||||||||||
| Less: Investment securities gains | (4,492 |
) |
(176 |
) |
(65 |
) |
- |
(14 |
) |
||||||||||||
| Net interest income (denominator) | $ |
219,838 |
$ |
221,933 |
$ |
213,250 |
$ |
215,646 |
$ |
214,213 |
|||||||||||
| Efficiency ratio | 63.6 |
% |
64.2 |
% |
63.9 |
% |
62.2 |
% |
62.5 |
% |
|||||||||||
| Non-performing assets to tangible shareholders' equity and allowance for credit losses | |||||||||||||||||||||
| Non-performing assets (numerator) | $ |
143,682 |
$ |
154,957 |
$ |
147,693 |
$ |
150,196 |
$ |
130,780 |
|||||||||||
| Tangible shareholders' equity | $ |
1,789,838 |
$ |
1,773,549 |
$ |
1,765,663 |
$ |
1,716,017 |
$ |
1,751,458 |
|||||||||||
| Plus: Allowance for credit losses | 172,797 |
176,941 |
170,372 |
169,410 |
167,826 |
||||||||||||||||
| Tangible shareholders' equity and allowance for credit losses (denominator) | $ |
1,962,635 |
$ |
1,950,490 |
$ |
1,936,035 |
$ |
1,885,427 |
$ |
1,919,284 |
|||||||||||
| Non-performing assets to tangible shareholders' equity and allowance for credit losses | 7.32 |
% |
7.94 |
% |
7.63 |
% |
7.97 |
% |
6.81 |
% |
|||||||||||
| Pre-provision net revenue | |||||||||||||||||||||
| Net interest income | $ |
161,260 |
$ |
164,544 |
$ |
163,315 |
$ |
162,944 |
$ |
160,127 |
|||||||||||
| Non-interest income | 59,813 |
54,315 |
46,751 |
49,523 |
51,033 |
||||||||||||||||
| Less: Investment securities gains | (4,492 |
) |
(176 |
) |
(65 |
) |
- |
(14 |
) |
||||||||||||
| Total revenue | $ |
216,581 |
$ |
218,683 |
$ |
210,001 |
$ |
212,467 |
$ |
211,146 |
|||||||||||
| Non-interest expense | $ |
146,770 |
$ |
144,168 |
$ |
137,824 |
$ |
140,685 |
$ |
135,413 |
|||||||||||
| Less: Loss on redemption of FHLB advances | (4,326 |
) |
- |
- |
- |
- |
|||||||||||||||
| Less: Amortization of tax credit investments | (1,533 |
) |
(1,492 |
) |
(1,491 |
) |
(6,538 |
) |
(1,637 |
) |
|||||||||||
| Less: Intangible amortization | (1,071 |
) |
(107 |
) |
(107 |
) |
- |
- |
|||||||||||||
| Total non-interest expense | $ |
139,840 |
$ |
142,569 |
$ |
136,226 |
$ |
134,147 |
$ |
133,776 |
|||||||||||
| Pre-provision net revenue | $ |
76,741 |
$ |
76,114 |
$ |
73,775 |
$ |
78,320 |
$ |
77,370 |
|||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20191022006151/en/
Media Contact: Laura Wakeley (717) 291-2616 Investor Contact: Jason Weber (717) 327-2394
Source: Fulton Financial Corporation