Skip to main content

Fulton Financial Corporation Announces Third Quarter 2023 Results

Fulton Financial Corporation (NASDAQ: FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $69.5 million, or $0.42 per diluted share, for the third quarter of 2023, a decrease of $7.5 million, or 9.7%, in comparison to the second quarter of 2023. Operating net income available to common shareholders for the three months ended September 30, 2023 was $72.2 million, or $0.43 per diluted share(1).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231017795027/en/

For the nine months ended September 30, 2023, net income available to common shareholders was $212.3 million, or $1.27 per diluted share, an increase of $14.9 million, or 7.5%, in comparison to the same period in 2022. Operating net income available to common shareholders for the nine months ended September 30, 2023 was $216.1 million, or $1.29 per diluted share(1).

"We were pleased with our third quarter results; operating earnings were solid, we generated deposit and loan growth, we maintained our net interest margin and net interest income grew," said Curtis J. Myers, Chairman and CEO of Fulton Financial Corporation. "Our results reflect solid core business trends, stable credit metrics, and modest growth in our core lines of business."

Net Interest Income and Balance Sheet

Net interest income for the third quarter of 2023 was $213.8 million, an increase of $1.0 million in comparison to the second quarter of 2023. The net interest margin for the third quarter of 2023 was 3.40%, consistent with the second quarter of 2023.

The linked-quarter increase in net interest income was primarily due to higher loan yields and an increase in the average balance of net loans, partially offset by an increase in the rate of average interest-bearing deposits and a shift in the funding mix from noninterest-bearing demand deposits to interest-bearing deposits.

(1)

Financial measure derived by methods other than generally accepted accounting principles ("GAAP"). Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of the press release.

A 20 basis points increase in the yield on average net loans and an increase in the average balance of net loans of $255.0 million in the third quarter of 2023 drove an increase in interest income of $15.5 million to $330.4 million in comparison to $314.9 million in the second quarter of 2023.

Interest expense on interest-bearing liabilities for the third quarter of 2023 increased by $14.5 million to $116.5 million in comparison to $102.1 million in the second quarter of 2023. The linked-quarter increase in interest expense in the third quarter of 2023 was primarily due to an increase in the rate on average interest-bearing deposits of 29 basis points, a decline of $348.7 million in the average balance of noninterest-bearing deposits and an increase in the average balance of interest-bearing deposits of $498.8 million in comparison to the second quarter of 2023.

For the third quarter of 2023, net interest income was $213.8 million, a decrease of $1.7 million, or 0.8%, in comparison to the third quarter of 2022. Interest income for the third quarter of 2023 increased by $96.7 million to $330.4 million in comparison to $233.7 million in the third quarter of 2022, primarily driven by rising interest rates resulting in increases in interest income from net loans and other interest-earning assets of $96.2 million and $1.1 million, respectively. Increases in the average balance of net loans in the third quarter of 2023 of $1.6 billion and in yields on net loans of 151 basis points each contributed to the increase in interest income. Interest expense on interest-bearing liabilities for the third quarter of 2023 increased by $98.4 million to $116.5 million in comparison to $18.1 million in the third quarter of 2022, primarily driven by rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings and other interest-bearing liabilities of $74.1 million and $24.3 million, respectively. A decrease in the average balance of noninterest-bearing deposits of $1.9 billion, and an increase in the average balances of interest-bearing deposits and borrowings and other interest-bearing liabilities of $1.4 billion and $1.3 billion, respectively, in the third quarter of 2023 in comparison to the third quarter of 2022 also contributed to the increase in interest expense.

Total average interest-earning assets for the third quarter of 2023 were $25.6 billion, a decrease of $47.8 million from the second quarter of 2023 primarily driven by a decrease in average other interest-earning assets of $266.3 million and a decrease in average investment securities of $36.5 million, partially offset by an increase in average net loans of $255.0 million.

Total average interest-earning assets for the third quarter of 2023 increased by $886.0 million from the third quarter of 2022. Average net loans for the third quarter of 2023 were $21.1 billion, an increase of $1.6 billion from the same period in 2022. Compared to the third quarter of 2022, average other interest-earning assets decreased $368.5 million and average investment securities decreased $302.9 million in the third quarter of 2023.

Total average interest-bearing liabilities increased $399.1 million to $18.4 billion in the third quarter of 2023 in comparison to $18.0 billion in the second quarter of 2023. The increase in average interest-bearing liabilities was driven by an increase in the average balance of total interest-bearing deposits of $498.8 million, partially offset by a decrease in the average balance of borrowings and other interest-bearing liabilities of $99.8 million.

Total average interest-bearing liabilities for the third quarter of 2023 increased $2.8 billion to $18.4 billion in comparison to $15.6 billion in the third quarter of 2022, driven by increases in the average balances of total interest-bearing deposits and borrowings and other interest-bearing liabilities of $1.4 billion and $1.3 billion, respectively.

Asset Quality

In the third quarter of 2023, a provision for credit losses of $9.9 million was recorded in comparison to $9.7 million in the second quarter of 2023 and $19.0 million in the third quarter of 2022. The provision for credit losses of $9.9 million recorded in the third quarter of 2023 was primarily due to loan growth and net charge-offs recorded during the period.

Non-performing assets were $143.5 million, or 0.52% of total assets, at September 30, 2023, in comparison to $151.6 million, or 0.55% of total assets, at June 30, 2023, and $198.6 million, or 0.76% of total assets, at September 30, 2022.

Net charge-offs for the third quarter of 2023 were 0.10% of total average loans in comparison to 0.04% and 0.01% in the second quarter of 2023 and the third quarter of 2022, respectively.

Non-interest Income

Non-interest income before investment securities gains (losses) in the third quarter of 2023 was $56.0 million, a decrease of $4.6 million, or 7.6%, from the second quarter of 2023. The decrease in non-interest income was primarily due to a $3.0 million market valuation movement in our commercial customer interest rate swap program resulting from the reference rate transition from the London Inter-Bank Offered Rate ("LIBOR") to the Secured Overnight Financing Rate ("SOFR") and is reflected as a reduction to other non-interest income. Additional contributors to the decrease in non-interest income were a decrease of $3.0 million in commercial customer interest rate swap fee income, reflected in capital markets, partially offset by increases in wealth management, overdraft fees and mortgage banking income of $0.7 million, $0.3 million and $0.3 million, respectively.

Compared to the third quarter of 2022, non-interest income before investment securities gains (losses) in the third quarter of 2023 decreased $3.3 million, or 5.5%, from $59.2 million. The decrease in non-interest income was primarily due to the aforementioned $3.0 million market valuation movement in our commercial customer interest rate swap program resulting from the reference rate transition from LIBOR to SOFR and is reflected as a reduction to other non-interest income.

Non-interest Expense

Non-interest expense was $171.0 million in the third quarter of 2023, an increase of $3.0 million, or 1.8%, compared to $168.0 million in the second quarter of 2023. The increase was primarily due to increases of $2.7 million in salaries and employee benefits expense and $1.3 million in other outside services related to a number of corporate initiatives, partially offset by a decrease of $0.5 million in charitable contributions and $0.5 million in gains on sales from fixed assets disposals, in each case, reflected in other expense. The $2.7 million increase in salaries and benefits expense was primarily driven by one additional calendar day in the third quarter of 2023 compared to the second quarter of 2023.

Compared to the third quarter of 2022, non-interest expense, excluding merger-related expenses of $7.0 million in the third quarter of 2022, increased $8.5 million, or 5.2%. The increase was primarily due to increases of $2.7 million in other outside services expense driven by a number of corporate initiatives, $2.5 million in salaries and employee benefits expense, $1.6 million in FDIC insurance expense, primarily due to the adoption of a final rule to increase base deposit insurance assessment rates effective January 1, 2023, and $1.1 million in data processing and software expense. The $2.5 million increase in salaries and benefits expense was primarily driven by annual merit increases, lower deferred employee loan origination costs, higher employee benefits expense, due to healthcare claims experience, and higher pension costs, partially offset by lower incentive plan compensation expense.

Income Tax Expense

For the third quarter of 2023, the effective tax rate was 18.9%, in comparison to 17.3% for the full-year of 2022.

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

Safe Harbor Statement

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

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

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2022, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023 and June 30, 2023 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov).

Non-GAAP Financial Measures

The Corporation uses certain financial measures in this press release that have been derived from methods other than GAAP. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this press release.

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

 

SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)

 

 

 

 

 

 

 

(dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

Three months ended

 

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

 

2023

 

2023

 

2023

 

2022

 

2022

 

Ending Balances

 

 

 

 

 

 

 

 

 

 

Investment securities

$

3,698,601

 

 

$

3,867,334

 

 

$

3,950,101

 

 

$

3,968,023

 

 

$

3,936,694

 

 

Net loans

 

21,177,508

 

 

 

21,044,685

 

 

 

20,670,188

 

 

 

20,279,547

 

 

 

19,695,199

 

 

Total assets

 

27,380,836

 

 

 

27,403,163

 

 

 

27,112,176

 

 

 

26,931,702

 

 

 

26,146,042

 

 

Deposits

 

21,421,589

 

 

 

21,206,540

 

 

 

21,316,584

 

 

 

20,649,538

 

 

 

21,376,554

 

 

Shareholders' equity

 

2,566,693

 

 

 

2,642,152

 

 

 

2,618,998

 

 

 

2,579,757

 

 

 

2,471,159

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances

 

 

 

 

 

 

 

 

 

 

Investment securities

 

3,834,824

 

 

 

3,916,130

 

 

 

3,964,615

 

 

 

3,936,579

 

 

 

4,254,216

 

 

Net loans

 

21,121,277

 

 

 

20,866,235

 

 

 

20,463,096

 

 

 

20,004,513

 

 

 

19,563,825

 

 

Total assets

 

27,377,836

 

 

 

27,235,567

 

 

 

26,900,653

 

 

 

26,386,355

 

 

 

26,357,095

 

 

Deposits

 

21,357,295

 

 

 

21,207,143

 

 

 

20,574,323

 

 

 

21,027,656

 

 

 

21,788,052

 

 

Shareholders' equity

 

2,645,977

 

 

 

2,647,464

 

 

 

2,613,316

 

 

 

2,489,148

 

 

 

2,604,057

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement

 

 

 

 

 

 

 

 

 

 

Net interest income

 

213,842

 

 

 

212,852

 

 

 

215,587

 

 

 

225,911

 

 

 

215,582

 

 

Provision for credit losses

 

9,937

 

 

 

9,747

 

 

 

24,544

 

 

 

14,513

 

 

 

18,958

 

 

Non-interest income

 

55,961

 

 

 

60,585

 

 

 

51,753

 

 

 

54,321

 

 

 

59,162

 

 

Non-interest expense

 

171,020

 

 

 

168,018

 

 

 

159,616

 

 

 

168,462

 

 

 

169,558

 

 

Income before taxes

 

88,846

 

 

 

95,672

 

 

 

83,180

 

 

 

97,257

 

 

 

86,228

 

 

Net income available to common shareholders

 

69,535

 

 

 

77,045

 

 

 

65,752

 

 

 

79,271

 

 

 

68,309

 

 

Pre-provision net revenue(1)

 

102,342

 

 

 

106,495

 

 

 

108,375

 

 

 

115,049

 

 

 

113,631

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (basic)

$

0.42

 

 

$

0.46

 

 

$

0.39

 

 

$

0.47

 

 

$

0.41

 

 

Net income available to common shareholders (diluted)

$

0.42

 

 

$

0.46

 

 

$

0.39

 

 

$

0.47

 

 

$

0.40

 

 

Operating net income available to common shareholders(1)

$

0.43

 

 

$

0.47

 

 

$

0.39

 

 

$

0.48

 

 

$

0.48

 

 

Cash dividends

$

0.16

 

 

$

0.16

 

 

$

0.15

 

 

$

0.21

 

 

$

0.15

 

 

Common shareholders' equity

$

14.47

 

 

$

14.75

 

 

$

14.67

 

 

$

14.24

 

 

$

13.61

 

 

Common shareholders' equity (tangible)(1)

$

11.05

 

 

$

11.36

 

 

$

11.26

 

 

$

10.90

 

 

$

10.26

 

 

Weighted average shares (basic)

 

164,566

 

 

 

165,854

 

 

 

166,605

 

 

 

167,504

 

 

 

167,353

 

 

Weighted average shares (diluted)

 

166,023

 

 

 

167,191

 

 

 

168,401

 

 

 

169,136

 

 

 

168,781

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

 

2023

 

2023

 

2023

 

2022

 

2022

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to average loans

 

0.10

%

 

 

0.04

%

 

 

0.27

%

 

 

0.23

%

 

 

0.01

%

 

Non-performing loans to total net loans

 

0.67

%

 

 

0.70

%

 

 

0.80

%

 

 

0.85

%

 

 

0.98

%

 

Non-performing assets to total assets

 

0.52

%

 

 

0.55

%

 

 

0.62

%

 

 

0.66

%

 

 

0.76

%

 

ACL - loans(1) to total loans

 

1.38

%

 

 

1.37

%

 

 

1.35

%

 

 

1.33

%

 

 

1.35

%

 

ACL - loans(1) to non-performing loans

 

208

%

 

 

195

%

 

 

169

%

 

 

157

%

 

 

138

%

 

 

 

 

 

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.04

%

 

 

1.17

%

 

 

1.03

%

 

 

1.23

%

 

 

1.07

%

 

Operating return on average assets(2)

 

1.08

%

 

 

1.18

%

 

 

1.04

%

 

 

1.26

%

 

 

1.25

%

 

Return on average common shareholders' equity

 

11.25

%

 

 

12.59

%

 

 

11.02

%

 

 

13.70

%

 

 

11.24

%

 

Return on average common shareholders' equity (tangible)(2)

 

15.17

%

 

 

16.52

%

 

 

14.46

%

 

 

18.59

%

 

 

17.31

%

 

Net interest margin

 

3.40

%

 

 

3.40

%

 

 

3.53

%

 

 

3.69

%

 

 

3.54

%

 

Efficiency ratio(2)

 

61.5

%

 

 

60.1

%

 

 

58.5

%

 

 

58.1

%

 

 

57.8

%

 

Non-interest expenses to total average assets

 

2.48

%

 

 

2.47

%

 

 

2.41

%

 

 

2.53

%

 

 

2.55

%

 

Operating non-interest expenses to total average assets(2)

 

2.47

%

 

 

2.46

%

 

 

2.40

%

 

 

2.48

%

 

 

2.43

%

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

Tangible common equity ratio ("TCE")(2)

 

6.8

%

 

 

7.0

%

 

 

7.0

%

 

 

6.9

%

 

 

6.7

%

 

TCE ratio, excluding AOCI(2)(3)

 

8.4

%

 

 

8.3

%

 

 

8.3

%

 

 

8.2

%

 

 

8.3

%

 

Tier 1 leverage ratio(4)

 

9.4

%

 

 

9.3

%

 

 

9.2

%

 

 

9.5

%

 

 

9.2

%

 

Common equity Tier 1 capital ratio(4)

 

10.1

%

 

 

10.1

%

 

 

9.8

%

 

 

10.0

%

 

 

10.0

%

 

Tier 1 risk-based capital ratio(4)

 

11.0

%

 

 

11.0

%

 

 

10.6

%

 

 

10.9

%

 

 

10.9

%

 

Total risk-based capital ratio(4)

 

13.8

%

 

 

13.8

%

 

 

13.4

%

 

 

13.6

%

 

 

13.6

%

 

 

 

 

 

 

 

 

 

 

 

 

(1) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet ("OBS") credit exposures.

 

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

 

(3) Tangible common equity ("TCE") ratio, excluding accumulated other comprehensive income ("AOCI").

 

(4) Regulatory capital ratios as of September 30, 2023 are preliminary estimates and prior periods are actual.

 

FULTON FINANCIAL CORPORATION

 

 

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

 

2023

 

2023

 

2023

 

2022

 

2022

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

304,042

 

 

$

123,779

 

 

$

129,003

 

 

$

126,898

 

 

$

143,465

 

 

Other interest-earning assets

 

222,781

 

 

 

505,141

 

 

 

545,355

 

 

 

685,209

 

 

 

467,164

 

 

Loans held for sale

 

20,368

 

 

 

14,673

 

 

 

6,507

 

 

 

7,264

 

 

 

14,411

 

 

Investment securities

 

3,698,601

 

 

 

3,867,334

 

 

 

3,950,101

 

 

 

3,968,023

 

 

 

3,936,694

 

 

Net loans

 

21,177,508

 

 

 

21,044,685

 

 

 

20,670,188

 

 

 

20,279,547

 

 

 

19,695,199

 

 

Less: ACL - loans(1)

 

(292,739

)

 

 

(287,442

)

 

 

(278,695

)

 

 

(269,366

)

 

 

(266,838

)

 

Loans, net

 

20,884,769

 

 

 

20,757,243

 

 

 

20,391,493

 

 

 

20,010,181

 

 

 

19,428,361

 

 

Net premises and equipment

 

215,626

 

 

 

216,322

 

 

 

216,059

 

 

 

225,141

 

 

 

221,496

 

 

Accrued interest receivable

 

101,624

 

 

 

96,991

 

 

 

90,267

 

 

 

91,579

 

 

 

72,821

 

 

Goodwill and intangible assets

 

561,284

 

 

 

561,885

 

 

 

563,502

 

 

 

560,824

 

 

 

561,495

 

 

Other assets

 

1,371,741

 

 

 

1,259,795

 

 

 

1,219,889

 

 

 

1,256,583

 

 

 

1,300,135

 

 

Total Assets

$

27,380,836

 

 

$

27,403,163

 

 

$

27,112,176

 

 

$

26,931,702

 

 

$

26,146,042

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Deposits

$

21,421,589

 

 

$

21,206,540

 

 

$

21,316,584

 

 

$

20,649,538

 

 

$

21,376,554

 

 

Borrowings

 

2,370,112

 

 

 

2,719,114

 

 

 

2,446,770

 

 

 

2,871,207

 

 

 

1,424,681

 

 

Other liabilities

 

1,022,442

 

 

 

835,357

 

 

 

729,824

 

 

 

831,200

 

 

 

873,648

 

 

Total Liabilities

 

24,814,143

 

 

 

24,761,011

 

 

 

24,493,178

 

 

 

24,351,945

 

 

 

23,674,883

 

 

Shareholders' equity

 

2,566,693

 

 

 

2,642,152

 

 

 

2,618,998

 

 

 

2,579,757

 

 

 

2,471,159

 

 

Total Liabilities and Shareholders' Equity

$

27,380,836

 

 

$

27,403,163

 

 

$

27,112,176

 

 

$

26,931,702

 

 

$

26,146,042

 

 

 

 

 

 

 

 

 

 

 

 

LOANS, DEPOSITS AND BORROWINGS DETAIL:

 

 

 

 

 

 

Loans, by type:

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

8,106,300

 

 

$

7,846,861

 

 

$

7,746,920

 

 

$

7,693,835

 

 

$

7,554,509

 

 

Commercial and industrial

 

4,577,334

 

 

 

4,599,759

 

 

 

4,596,096

 

 

 

4,473,004

 

 

 

4,240,865

 

 

Real estate - residential mortgage

 

5,279,681

 

 

 

5,147,262

 

 

 

4,880,919

 

 

 

4,737,279

 

 

 

4,574,228

 

 

Real estate - home equity

 

1,045,438

 

 

 

1,061,891

 

 

 

1,074,712

 

 

 

1,102,838

 

 

 

1,110,103

 

 

Real estate - construction

 

1,078,263

 

 

 

1,308,564

 

 

 

1,326,754

 

 

 

1,269,925

 

 

 

1,273,097

 

 

Consumer

 

743,976

 

 

 

763,530

 

 

 

730,775

 

 

 

699,179

 

 

 

633,666

 

 

Leases and other loans(2)

 

346,516

 

 

 

316,818

 

 

 

314,012

 

 

 

303,487

 

 

 

308,731

 

 

Total Net Loans

$

21,177,508

 

 

$

21,044,685

 

 

$

20,670,188

 

 

$

20,279,547

 

 

$

19,695,199

 

Deposits, by type:

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

5,575,374

 

 

$

5,865,855

 

 

$

6,403,484

 

 

$

7,006,388

 

 

$

7,372,896

 

 

Interest-bearing demand

 

5,757,487

 

 

 

5,543,320

 

 

 

5,478,237

 

 

 

5,410,903

 

 

 

5,676,600

 

 

Savings

 

6,707,729

 

 

 

6,646,448

 

 

 

6,579,806

 

 

 

6,434,621

 

 

 

6,563,003

 

 

Total demand and savings

 

18,040,590

 

 

 

18,055,623

 

 

 

18,461,527

 

 

 

18,851,912

 

 

 

19,612,499

 

 

Brokered

 

941,059

 

 

 

949,259

 

 

 

960,919

 

 

 

208,416

 

 

 

226,883

 

 

Time

 

2,439,940

 

 

 

2,201,658

 

 

 

1,894,138

 

 

 

1,589,210

 

 

 

1,537,172

 

 

Total Deposits

$

21,421,589

 

 

$

21,206,540

 

 

$

21,316,584

 

 

$

20,649,538

 

 

$

21,376,554

 

Borrowings, by type:

 

 

 

 

 

 

 

 

 

Federal funds purchased

$

544,000

 

 

$

555,000

 

 

$

525,000

 

 

$

191,000

 

 

$

136,000

 

 

Federal Home Loan Bank advances

 

730,000

 

 

 

1,165,000

 

 

 

747,000

 

 

 

1,250,000

 

 

 

265,500

 

 

Senior debt and subordinated debt

 

540,174

 

 

 

539,994

 

 

 

539,814

 

 

 

539,634

 

 

 

539,461

 

 

Other borrowings

 

555,938

 

 

 

459,120

 

 

 

634,956

 

 

 

890,573

 

 

 

483,720

 

 

Total Borrowings

$

2,370,112

 

 

$

2,719,114

 

 

$

2,446,770

 

 

$

2,871,207

 

 

$

1,424,681

 

 

 

 

 

 

 

 

 

 

 

 

(1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.

(2) Includes equipment lease financing, overdraft and net origination fees and costs.

 

 

 

 

 

 

 

 

 

 

 

FULTON FINANCIAL CORPORATION

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

 

 

 

(dollars in thousands, except per share)

 

 

 

 

 

 

 

Three Months Ended

 

Nine months ended

 

 

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Sep 30

 

 

 

2023

 

2023

 

2023

 

2022

 

2022

 

2023

 

2022

Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

330,371

 

 

$

314,912

 

 

$

289,820

 

 

$

267,847

 

 

$

233,691

 

 

$

935,103

 

 

$

596,991

 

 

Interest expense

 

 

116,529

 

 

 

102,060

 

 

 

74,233

 

 

 

41,936

 

 

 

18,109

 

 

 

292,822

 

 

 

41,268

 

 

Net Interest Income

 

 

213,842

 

 

 

212,852

 

 

 

215,587

 

 

 

225,911

 

 

 

215,582

 

 

 

642,281

 

 

 

555,723

 

 

Provision for credit losses

 

 

9,937

 

 

 

9,747

 

 

 

24,544

 

 

 

14,513

 

 

 

18,958

 

 

 

44,228

 

 

 

13,508

 

 

Net Interest Income after Provision

 

 

203,905

 

 

 

203,105

 

 

 

191,043

 

 

 

211,398

 

 

 

196,624

 

 

 

598,053

 

 

 

542,215

 

Non-Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchant and card

 

 

7,626

 

 

 

7,700

 

 

 

6,834

 

 

 

7,223

 

 

 

7,601

 

 

 

22,160

 

 

 

21,053

 

 

Cash management

 

 

5,960

 

 

 

5,835

 

 

 

5,515

 

 

 

5,756

 

 

 

6,483

 

 

 

17,310

 

 

 

17,973

 

 

Capital markets

 

 

2,960

 

 

 

6,092

 

 

 

2,344

 

 

 

2,627

 

 

 

4,060

 

 

 

11,396

 

 

 

9,629

 

 

Other commercial banking

 

 

3,176

 

 

 

3,518

 

 

 

2,820

 

 

 

2,998

 

 

 

2,664

 

 

 

9,514

 

 

 

8,520

 

 

Total commercial banking

 

 

19,722

 

 

 

23,145

 

 

 

17,513

 

 

 

18,604

 

 

 

20,808

 

 

 

60,380

 

 

 

57,175

 

 

Wealth management

 

 

19,413

 

 

 

18,678

 

 

 

18,062

 

 

 

17,531

 

 

 

17,610

 

 

 

56,152

 

 

 

55,312

 

 

Consumer banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Card

 

 

6,770

 

 

 

6,592

 

 

 

6,243

 

 

 

6,331

 

 

 

6,278

 

 

 

19,604

 

 

 

18,141

 

 

Overdraft

 

 

2,996

 

 

 

2,696

 

 

 

2,733

 

 

 

3,364

 

 

 

4,463

 

 

 

8,425

 

 

 

12,116

 

 

Other consumer banking

 

 

2,407

 

 

 

2,432

 

 

 

2,241

 

 

 

2,380

 

 

 

2,534

 

 

 

7,081

 

 

 

7,164

 

 

Total consumer banking

 

 

12,173

 

 

 

11,720

 

 

 

11,217

 

 

 

12,075

 

 

 

13,275

 

 

 

35,110

 

 

 

37,421

 

 

Mortgage banking

 

 

3,190

 

 

 

2,940

 

 

 

1,970

 

 

 

2,140

 

 

 

3,720

 

 

 

8,100

 

 

 

12,064

 

 

Other

 

 

1,463

 

 

 

4,106

 

 

 

2,968

 

 

 

3,972

 

 

 

3,802

 

 

 

8,539

 

 

 

10,863

 

 

Non-interest income before investment securities gains (losses)

 

 

55,961

 

 

 

60,589

 

 

 

51,730

 

 

 

54,322

 

 

 

59,215

 

 

 

168,281

 

 

 

172,835

 

 

Investment securities gains (losses), net

 

 

 

 

 

(4

)

 

 

23

 

 

 

(1

)

 

 

(53

)

 

 

19

 

 

 

(26

)

 

Total Non-Interest Income

 

 

55,961

 

 

 

60,585

 

 

 

51,753

 

 

 

54,321

 

 

 

59,162

 

 

 

168,300

 

 

 

172,809

 

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

96,757

 

 

 

94,102

 

 

 

89,283

 

 

 

92,733

 

 

 

94,283

 

 

 

280,142

 

 

 

264,151

 

 

Data processing and software

 

 

16,914

 

 

 

16,776

 

 

 

15,796

 

 

 

15,448

 

 

 

15,807

 

 

 

49,486

 

 

 

44,807

 

 

Net occupancy

 

 

14,561

 

 

 

14,374

 

 

 

14,438

 

 

 

14,061

 

 

 

14,025

 

 

 

43,373

 

 

 

42,134

 

 

Other outside services

 

 

12,094

 

 

 

10,834

 

 

 

10,126

 

 

 

10,860

 

 

 

9,361

 

 

 

33,054

 

 

 

26,292

 

 

FDIC insurance

 

 

4,738

 

 

 

4,895

 

 

 

4,795

 

 

 

3,219

 

 

 

3,158

 

 

 

14,427

 

 

 

9,328

 

 

Equipment

 

 

3,475

 

 

 

3,530

 

 

 

3,389

 

 

 

3,640

 

 

 

3,548

 

 

 

10,395

 

 

 

10,393

 

 

Marketing

 

 

1,913

 

 

 

1,655

 

 

 

1,886

 

 

 

2,380

 

 

 

1,859

 

 

 

5,454

 

 

 

4,505

 

 

Professional fees

 

 

1,869

 

 

 

1,829

 

 

 

2,392

 

 

 

2,945

 

 

 

2,373

 

 

 

6,090

 

 

 

6,178

 

 

Intangible amortization

 

 

601

 

 

 

1,072

 

 

 

674

 

 

 

688

 

 

 

690

 

 

 

2,347

 

 

 

1,043

 

 

Merger-related expenses

 

 

 

 

 

 

 

 

 

 

 

1,894

 

 

 

7,006

 

 

 

 

 

 

8,434

 

 

Other

 

 

18,098

 

 

 

18,951

 

 

 

16,837

 

 

 

20,594

 

 

 

17,448

 

 

 

53,888

 

 

 

48,001

 

 

Total Non-Interest Expense

 

 

171,020

 

 

 

168,018

 

 

 

159,616

 

 

 

168,462

 

 

 

169,558

 

 

 

498,656

 

 

 

465,266

 

 

Income Before Income Taxes

 

 

88,846

 

 

 

95,672

 

 

 

83,180

 

 

 

97,257

 

 

 

86,228

 

 

 

267,697

 

 

 

249,758

 

 

Income tax expense

 

 

16,749

 

 

 

16,065

 

 

 

14,866

 

 

 

15,424

 

 

 

15,357

 

 

 

47,680

 

 

 

44,610

 

 

Net Income

 

 

72,097

 

 

 

79,607

 

 

 

68,314

 

 

 

81,833

 

 

 

70,871

 

 

 

220,017

 

 

 

205,148

 

 

Preferred stock dividends

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(7,686

)

 

 

(7,686

)

 

Net Income Available to Common Shareholders

 

$

69,535

 

 

$

77,045

 

 

$

65,752

 

 

$

79,271

 

 

$

68,309

 

 

$

212,331

 

 

$

197,462

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine months ended

 

 

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Sep 30

 

 

 

2023

 

2023

 

2023

 

2022

 

2022

 

2023

 

2022

PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (basic)

 

$

0.42

 

 

$

0.46

 

 

$

0.39

 

 

$

0.47

 

 

$

0.41

 

 

$

1.28

 

 

$

1.21

 

 

Net income available to common shareholders (diluted)

 

$

0.42

 

 

$

0.46

 

 

$

0.39

 

 

$

0.47

 

 

$

0.40

 

 

$

1.27

 

 

$

1.20

 

 

Cash dividends

 

$

0.16

 

 

$

0.16

 

 

$

0.15

 

 

$

0.21

 

 

$

0.15

 

 

$

0.47

 

 

$

0.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

 

164,566

 

 

 

165,854

 

 

 

166,605

 

 

 

167,504

 

 

 

167,353

 

 

 

165,667

 

 

 

162,979

 

 

Weighted average shares (diluted)

 

 

166,023

 

 

 

167,191

 

 

 

168,401

 

 

 

169,136

 

 

 

168,781

 

 

 

167,181

 

 

 

164,254

 

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

Three months ended

 

 

September 30, 2023

 

June 30, 2023

 

September 30, 2022

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

 

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans

$

21,121,277

 

 

$

304,167

 

 

5.72

%

 

$

20,866,235

 

 

$

287,154

 

 

5.52

%

 

$

19,563,825

 

 

$

207,343

 

 

4.21

%

 

Investment securities(2)

 

4,197,550

 

 

 

27,274

 

 

2.59

%

 

 

4,234,096

 

 

 

27,303

 

 

2.57

%

 

 

4,500,461

 

 

 

28,022

 

 

2.49

%

 

Other interest-earning assets

 

263,244

 

 

 

3,372

 

 

5.11

%

 

 

529,582

 

 

 

4,860

 

 

3.68

%

 

 

631,771

 

 

 

2,297

 

 

1.45

%

 

Total Interest-Earning Assets

 

25,582,071

 

 

 

334,813

 

 

5.20

%

 

 

25,629,913

 

 

 

319,317

 

 

4.99

%

 

 

24,696,057

 

 

 

237,662

 

 

3.83

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

306,496

 

 

 

 

 

 

 

129,682

 

 

 

 

 

 

 

152,349

 

 

 

 

 

 

Premises and equipment

 

217,447

 

 

 

 

 

 

 

216,847

 

 

 

 

 

 

 

223,880

 

 

 

 

 

 

Other assets

 

1,562,233

 

 

 

 

 

 

 

1,541,657

 

 

 

 

 

 

 

1,545,812

 

 

 

 

 

 

Less: ACL - loans(3)

 

(290,411

)

 

 

 

 

 

 

(282,532

)

 

 

 

 

 

 

(261,003

)

 

 

 

 

 

Total Assets

$

27,377,836

 

 

 

 

 

 

$

27,235,567

 

 

 

 

 

 

$

26,357,095

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

5,740,229

 

 

$

18,690

 

 

1.29

%

 

$

5,535,669

 

 

$

14,612

 

 

1.06

%

 

$

5,708,059

 

 

$

1,886

 

 

0.13

%

 

Savings deposits

 

6,676,792

 

 

 

34,277

 

 

2.04

%

 

 

6,632,572

 

 

 

29,289

 

 

1.77

%

 

 

6,681,713

 

 

 

3,414

 

 

0.20

%

 

Brokered deposits

 

937,657

 

 

 

12,250

 

 

5.18

%

 

 

954,773

 

 

 

12,135

 

 

5.10

%

 

 

247,105

 

 

 

1,346

 

 

2.16

%

 

Time deposits

 

2,330,206

 

 

 

18,939

 

 

3.22

%

 

 

2,063,038

 

 

 

13,763

 

 

2.68

%

 

 

1,615,384

 

 

 

3,404

 

 

0.84

%

 

Total Interest-Bearing Deposits

 

15,684,884

 

 

 

84,156

 

 

2.13

%

 

 

15,186,052

 

 

 

69,799

 

 

1.84

%

 

 

14,252,261

 

 

 

10,050

 

 

0.28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings and other interest-bearing liabilities

 

2,691,087

 

 

 

32,373

 

 

4.74

%

 

 

2,790,860

 

 

 

32,261

 

 

4.60

%

 

 

1,359,348

 

 

 

8,060

 

 

2.35

%

 

Total Interest-Bearing Liabilities

 

18,375,971

 

 

 

116,529

 

 

2.51

%

 

 

17,976,912

 

 

 

102,060

 

 

2.27

%

 

 

15,611,609

 

 

 

18,110

 

 

0.47

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

5,672,411

 

 

 

 

 

 

 

6,021,091

 

 

 

 

 

 

 

7,535,791

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

683,477

 

 

 

 

 

 

 

590,100

 

 

 

 

 

 

 

605,638

 

 

 

 

 

 

Total Liabilities

 

24,731,859

 

 

 

 

 

 

 

24,588,103

 

 

 

 

 

 

 

23,753,038

 

 

 

 

 

 

Total Deposits/Cost of Deposits

 

21,357,295

 

 

 

 

1.56

%

 

 

21,207,143

 

 

 

 

1.32

%

 

 

21,788,052

 

 

 

 

0.18

%

 

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

 

24,048,382

 

 

 

 

1.92

%

 

 

23,998,003

 

 

 

 

1.70

%

 

 

23,147,400

 

 

 

 

0.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

2,645,977

 

 

 

 

 

 

 

2,647,464

 

 

 

 

 

 

 

2,604,057

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

$

27,377,836

 

 

 

 

 

 

$

27,235,567

 

 

 

 

 

 

$

26,357,095

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

218,284

 

 

3.40

%

 

 

 

 

217,257

 

 

3.40

%

 

 

 

 

219,552

 

 

3.54

%

 

Tax equivalent adjustment

 

 

 

(4,442

)

 

 

 

 

 

 

(4,405

)

 

 

 

 

 

 

(3,970

)

 

 

 

Net Interest Income

 

 

$

213,842

 

 

 

 

 

 

$

212,852

 

 

 

 

 

 

$

215,582

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(2) Balances include amortized historical cost for available for sale ("AFS") securities. The related unrealized holding gains (losses) are included in other assets.

 

(3) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED):

(dollars in thousands)

 

 

Three months ended

 

 

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

 

 

2023

 

2023

 

2023

 

2022

 

2022

 

Loans, by type:

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,912,801

 

$

7,775,436

 

$

7,720,975

 

$

7,696,997

 

$

7,566,259

 

 

Commercial and industrial

 

4,611,376

 

 

4,629,919

 

 

4,565,923

 

 

4,372,935

 

 

4,250,573

 

 

Real estate - residential mortgage

 

5,209,105

 

 

5,008,295

 

 

4,790,868

 

 

4,643,784

 

 

4,485,649

 

 

Real estate - home equity

 

1,045,806

 

 

1,066,615

 

 

1,086,032

 

 

1,106,325

 

 

1,099,487

 

 

Real estate - construction

 

1,254,577

 

 

1,306,286

 

 

1,276,145

 

 

1,209,998

 

 

1,268,590

 

 

Consumer

 

761,273

 

 

763,407

 

 

721,248

 

 

679,108

 

 

604,634

 

 

Leases and other loans(1)

 

326,339

 

 

316,277

 

 

301,905

 

 

295,366

 

 

288,633

 

 

Total Net Loans

$

21,121,277

 

$

20,866,235

 

$

20,463,096

 

$

20,004,513

 

$

19,563,825

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

5,672,411

 

$

6,021,091

 

$

6,641,741

 

$

7,310,824

 

$

7,535,791

 

 

Interest-bearing demand

 

5,740,229

 

 

5,535,669

 

 

5,326,566

 

 

5,479,443

 

 

5,708,059

 

 

Savings

 

6,676,792

 

 

6,632,572

 

 

6,469,468

 

 

6,466,775

 

 

6,681,713

 

 

Total demand and savings

 

18,089,432

 

 

18,189,332

 

 

18,437,775

 

 

19,257,042

 

 

19,925,563

 

 

Brokered

 

937,657

 

 

954,773

 

 

439,670

 

 

215,729

 

 

247,105

 

 

Time

 

2,330,206

 

 

2,063,038

 

 

1,696,878

 

 

1,554,885

 

 

1,615,384

 

 

Total Deposits

$

21,357,295

 

$

21,207,143

 

$

20,574,323

 

$

21,027,656

 

$

21,788,052

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings, by type:

 

 

 

 

 

 

 

 

 

 

 

Federal funds purchased

$

634,163

 

$

679,401

 

$

505,142

 

$

261,737

 

$

96,965

 

 

Federal Home Loan Bank advances

 

793,098

 

 

880,811

 

 

1,261,589

 

 

564,692

 

 

206,152

 

 

Senior debt and subordinated debt

 

540,086

 

 

539,906

 

 

539,726

 

 

539,550

 

 

554,735

 

 

Other borrowings and other interest-bearing liabilities

 

723,740

 

 

690,742

 

 

752,227

 

 

659,543

 

 

501,496

 

 

Total Borrowings

$

2,691,087

 

$

2,790,860

 

$

3,058,684

 

$

2,025,522

 

$

1,359,348

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes equipment lease financing, overdraft and net origination fees and costs.

 

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

 

 

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30

 

 

 

 

2023

 

2022

 

 

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

 

 

 

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

Net loans

 

$

20,819,280

 

 

$

854,384

 

 

5.49

%

 

$

18,865,672

 

 

$

524,150

 

 

3.71

%

 

 

Investment securities(2)

 

 

4,240,093

 

 

 

82,098

 

 

2.58

%

 

 

4,376,084

 

 

 

78,334

 

 

2.39

%

 

 

Other interest-earning assets

 

 

427,810

 

 

 

11,882

 

 

3.71

%

 

 

954,267

 

 

 

5,192

 

 

0.73

%

 

 

Total Interest-Earning Assets

 

 

25,487,183

 

 

 

948,364

 

 

4.97

%

 

 

24,196,023

 

 

 

607,676

 

 

3.35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Earning assets:

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

193,083

 

 

 

 

 

 

 

158,267

 

 

 

 

 

 

 

Premises and equipment

 

 

219,087

 

 

 

 

 

 

 

220,218

 

 

 

 

 

 

 

Other assets

 

 

1,555,891

 

 

 

 

 

 

 

1,534,314

 

 

 

 

 

 

 

Less: ACL - loans(3)

 

 

(282,144

)

 

 

 

 

 

 

(253,725

)

 

 

 

 

 

 

Total Assets

 

$

27,173,100

 

 

 

 

 

 

$

25,855,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing liabilities:

 

 

 

 

 

 

 

 

Demand deposits

 

$

5,535,671

 

 

$

41,756

 

 

1.01

%

 

$

5,657,165

 

 

$

3,411

 

 

0.08

%

 

 

Savings deposits

 

 

6,593,703

 

 

 

84,102

 

 

1.71

%

 

 

6,515,529

 

 

 

5,561

 

 

0.11

%

 

 

Brokered deposits

 

 

779,191

 

 

 

29,557

 

 

5.07

%

 

 

254,100

 

 

 

2,181

 

 

1.14

%

 

 

Time deposits

 

 

2,032,360

 

 

 

40,160

 

 

2.64

%

 

 

1,633,053

 

 

 

10,299

 

 

0.84

%

 

 

Total Interest-Bearing Deposits

 

 

14,940,925

 

 

 

195,575

 

 

1.75

%

 

 

14,059,847

 

 

 

21,452

 

 

0.20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings and other interest-bearing liabilities

 

 

2,848,704

 

 

 

97,247

 

 

4.53

%

 

 

1,133,524

 

 

 

19,816

 

 

2.34

%

 

 

Total Interest-Bearing Liabilities

 

 

17,789,629

 

 

 

292,822

 

 

2.20

%

 

 

15,193,371

 

 

 

41,268

 

 

0.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Bearing liabilities:

 

 

 

 

 

 

 

 

Demand deposits

 

 

6,108,197

 

 

 

 

 

 

 

7,538,597

 

 

 

 

 

 

 

Other

 

 

639,569

 

 

 

 

 

 

 

515,615

 

 

 

 

 

 

 

Total Liabilities

 

 

24,537,395

 

 

 

 

 

 

 

23,247,583

 

 

 

 

 

 

 

Total Deposits/Cost of Deposits

 

 

21,049,122

 

 

 

 

1.24

%

 

 

21,598,444

 

 

 

 

0.13

%

 

 

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

 

 

23,897,826

 

 

 

 

1.63

%

 

 

22,731,968

 

 

 

 

0.24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

2,635,705

 

 

 

 

 

 

 

2,607,514

 

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$

27,173,100

 

 

 

 

 

 

$

25,855,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

655,542

 

 

3.44

%

 

 

 

 

566,408

 

 

3.13

%

 

 

Tax equivalent adjustment

 

 

 

 

(13,261

)

 

 

 

 

 

 

(10,685

)

 

 

 

 

Net Interest Income

 

 

 

$

642,281

 

 

 

 

 

 

$

555,723

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(2) Balances include amortized historical cost for AFS. The related unrealized holding gains (losses) are included in other assets.

 

 

(3) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.

 

FULTON FINANCIAL CORPORATION

 

 

 

AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED):

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30

 

 

 

 

2023

 

2022

 

Loans, by type:

 

 

 

 

 

 

Real estate - commercial mortgage

 

$

7,803,775

 

$

7,401,094

 

 

Commercial and industrial

 

 

4,602,573

 

 

4,205,236

 

 

Real estate - residential mortgage

 

 

5,004,289

 

 

4,143,850

 

 

Real estate - home equity

 

 

1,066,003

 

 

1,099,310

 

 

Real estate - construction

 

 

1,278,923

 

 

1,197,947

 

 

Consumer

 

 

748,788

 

 

532,396

 

 

Leases and other loans(1)

 

 

314,929

 

 

285,839

 

 

Total Net Loans

 

$

20,819,280

 

$

18,865,672

 

 

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

 

Noninterest-bearing demand

 

$

6,108,197

 

$

7,538,597

 

 

Interest-bearing demand

 

 

5,535,671

 

 

5,657,165

 

 

Savings

 

 

6,593,703

 

 

6,515,529

 

 

Total demand and savings

 

 

18,237,571

 

 

19,711,291

 

 

Brokered

 

 

779,191

 

 

254,100

 

 

Time

 

 

2,032,360

 

 

1,633,053

 

 

Total Deposits

 

$

21,049,122

 

$

21,598,444

 

 

 

 

 

 

 

 

Borrowings, by type:

 

 

 

 

 

 

Federal funds purchased

 

$

606,708

 

$

33,629

 

 

Federal Home Loan Bank advances

 

 

976,783

 

 

69,473

 

 

Senior debt and subordinated debt

 

 

539,907

 

 

572,690

 

 

Other borrowings

 

 

725,306

 

 

457,732

 

 

Total Borrowings

 

$

2,848,704

 

$

1,133,524

 

 

 

 

 

 

 

 

(1) Includes equipment lease financing, overdraft and net origination fees and costs.

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

 

 

 

2023

 

2023

 

2023

 

2022

 

2022

 

2023

 

2022

 

Allowance for credit losses related to net loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$

287,442

 

 

$

278,695

 

 

$

269,366

 

 

$

266,838

 

 

$

248,564

 

 

$

269,366

 

 

$

249,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CECL Day 1 provision expense

 

 

 

 

 

 

 

 

 

 

 

 

 

7,954

 

 

 

 

 

 

7,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Initial purchased credit deteriorated loans

 

 

 

 

 

 

 

 

 

 

 

 

 

1,135

 

 

 

 

 

 

1,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

 

(860

)

 

 

(230

)

 

 

(13,362

)

 

 

(12,235

)

 

 

(86

)

 

 

(14,452

)

 

 

(238

)

 

 

Commercial and industrial

 

(3,220

)

 

 

(2,017

)

 

 

(612

)

 

 

(179

)

 

 

(1,783

)

 

 

(5,849

)

 

 

(2,211

)

 

 

Real estate - residential mortgage

 

 

 

 

(62

)

 

 

 

 

 

 

 

 

 

 

 

(62

)

 

 

(66

)

 

 

Consumer and home equity

 

(1,803

)

 

 

(1,313

)

 

 

(2,206

)

 

 

(1,311

)

 

 

(1,172

)

 

 

(5,322

)

 

 

(3,101

)

 

 

Leases and other loans(1)

 

(1,396

)

 

 

(1,165

)

 

 

(723

)

 

 

(505

)

 

 

(683

)

 

 

(3,284

)

 

 

(1,626

)

 

 

Total loans charged off

 

(7,279

)

 

 

(4,787

)

 

 

(16,903

)

 

 

(14,230

)

 

 

(3,724

)

 

 

(28,969

)

 

 

(7,242

)

 

Recoveries of loans previously charged off:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

 

101

 

 

 

29

 

 

 

786

 

 

 

183

 

 

 

29

 

 

 

916

 

 

 

3,677

 

 

 

Commercial and industrial

 

620

 

 

 

988

 

 

 

1,086

 

 

 

961

 

 

 

2,213

 

 

 

2,694

 

 

 

4,932

 

 

 

Real estate - residential mortgage

 

37

 

 

 

58

 

 

 

48

 

 

 

10

 

 

 

101

 

 

 

143

 

 

 

415

 

 

 

Consumer and home equity

 

1,023

 

 

 

959

 

 

 

661

 

 

 

683

 

 

 

682

 

 

 

2,643

 

 

 

1,898

 

 

 

Real estate - construction

 

 

 

 

569

 

 

 

202

 

 

 

530

 

 

 

 

 

 

771

 

 

 

44

 

 

 

Leases and other loans(1)

 

400

 

 

 

213

 

 

 

116

 

 

 

132

 

 

 

247

 

 

 

729

 

 

 

627

 

 

 

Recoveries of loans previously charged off

 

2,181

 

 

 

2,816

 

 

 

2,899

 

 

 

2,499

 

 

 

3,272

 

 

 

7,896

 

 

 

11,593

 

 

Net loans recovered (charged off)

 

(5,098

)

 

 

(1,971

)

 

 

(14,004

)

 

 

(11,731

)

 

 

(452

)

 

 

(21,073

)

 

 

4,351

 

 

Provision for credit losses

 

10,395

 

 

 

10,718

 

 

 

23,333

 

 

 

14,259

 

 

 

9,637

 

 

 

44,446

 

 

 

4,397

 

 

Balance at end of period

$

292,739

 

 

$

287,442

 

 

$

278,695

 

 

$

269,366

 

 

$

266,838

 

 

$

292,739

 

 

$

266,838

 

 

Net (recoveries) charge-offs to average loans

 

0.10

%

 

 

0.04

%

 

 

0.27

%

 

 

0.23

%

 

 

0.01

%

 

 

0.13

%

 

 

(0.03

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses related to OBS Credit Exposures

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

$

(458

)

 

$

(971

)

 

$

1,211

 

 

$

254

 

 

$

1,367

 

 

$

(218

)

 

$

1,157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

$

113,022

 

 

$

123,280

 

 

$

134,303

 

 

$

144,443

 

 

$

178,204

 

 

 

 

 

 

 

Loans 90 days past due and accruing

 

27,962

 

 

 

24,415

 

 

 

30,336

 

 

 

27,463

 

 

 

14,559

 

 

 

 

 

 

 

Total non-performing loans

 

140,984

 

 

 

147,695

 

 

 

164,639

 

 

 

171,906

 

 

 

192,763

 

 

 

 

 

 

 

Other real estate owned

 

2,549

 

 

 

3,881

 

 

 

3,304

 

 

 

5,790

 

 

 

5,877

 

 

 

 

 

 

 

Total non-performing assets

$

143,533

 

 

$

151,576

 

 

$

167,943

 

 

$

177,696

 

 

$

198,640

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING LOANS, BY TYPE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

44,058

 

 

$

55,048

 

 

$

61,322

 

 

$

72,634

 

 

$

96,281

 

 

 

 

 

 

 

Commercial and industrial

 

33,365

 

 

 

30,588

 

 

 

33,555

 

 

 

28,288

 

 

 

29,831

 

 

 

 

 

 

 

Real estate - residential mortgage

 

40,560

 

 

 

39,157

 

 

 

46,576

 

 

 

46,509

 

 

 

41,597

 

 

 

 

 

 

 

Consumer and home equity

 

11,580

 

 

 

10,469

 

 

 

8,983

 

 

 

9,800

 

 

 

10,016

 

 

 

 

 

 

 

Real estate - construction

 

677

 

 

 

1,099

 

 

 

1,509

 

 

 

1,368

 

 

 

1,456

 

 

 

 

 

 

 

Leases and other loans(1)

 

10,744

 

 

 

11,334

 

 

 

12,694

 

 

 

13,307

 

 

 

13,582

 

 

 

 

 

 

 

Total non-performing loans

$

140,984

 

 

$

147,695

 

 

$

164,639

 

 

$

171,906

 

 

$

192,763

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes equipment lease financing, overdraft and net origination fees and costs.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FULTON FINANCIAL CORPORATION

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

(dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Explanatory note:

This press release contains supplemental financial information, as detailed below, that has been derived by methods other than 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 and financial condition. 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

 

 

 

 

 

 

2023

 

2023

 

2023

 

2022

 

2022

Operating net income available to common shareholders

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

69,535

 

 

$

77,045

 

 

$

65,752

 

 

$

79,271

 

 

$

68,309

 

Plus: Core deposit intangible amortization

 

 

441

 

 

 

912

 

 

 

514

 

 

 

514

 

 

 

514

 

Plus: Merger-related expenses

 

 

 

 

 

 

 

 

 

 

 

1,894

 

 

 

7,006

 

Plus: CECL Day 1 Provision expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,954

 

Plus: Interest rate derivative transition valuation(1)

 

 

2,958

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Tax impact of adjustments

 

 

(714

)

 

 

(192

)

 

 

(108

)

 

 

(506

)

 

 

(3,250

)

Operating net income available to common shareholders (numerator)

 

$

72,220

 

 

$

77,765

 

 

$

66,158

 

 

$

81,173

 

 

$

80,533

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (diluted) (denominator)

 

 

166,023

 

 

 

167,191

 

 

 

168,401

 

 

 

169,136

 

 

 

168,781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating net income available to common shareholders, per share (diluted)

 

$

0.43

 

 

$

0.47

 

 

$

0.39

 

 

$

0.48

 

 

$

0.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shareholders' equity (tangible), per share

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

$

2,566,693

 

 

$

2,642,152

 

 

$

2,618,998

 

 

$

2,579,757

 

 

$

2,471,159

 

Less: Preferred stock

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

Less: Goodwill and intangible assets

 

 

(561,284

)

 

 

(561,885

)

 

 

(563,502

)

 

 

(560,824

)

 

 

(561,495

)

Tangible common shareholders' equity (numerator)

 

$

1,812,531

 

 

$

1,887,389

 

 

$

1,862,618

 

 

$

1,826,055

 

 

$

1,716,786

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding, end of period (denominator)

 

 

164,084

 

 

 

166,097

 

 

 

165,396

 

 

 

167,599

 

 

 

167,399

 

 

 

 

 

 

 

 

 

 

 

 

Common shareholders' equity (tangible), per share

 

$

11.05

 

 

$

11.36

 

 

$

11.26

 

 

$

10.90

 

 

$

10.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

 

 

 

 

 

 

 

 

Net income

 

$

72,097

 

 

$

79,607

 

 

$

68,314

 

 

$

81,833

 

 

$

70,871

 

Plus: Core deposit intangible amortization

 

 

441

 

 

 

912

 

 

 

514

 

 

 

514

 

 

 

514

 

Plus: Merger-related expenses

 

 

 

 

 

 

 

 

 

 

 

1,894

 

 

 

7,006

 

Plus: CECL Day 1 Provision expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,954

 

Plus: Interest rate derivative transition valuation(1)

 

 

2,958

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Tax impact of adjustments

 

 

(714

)

 

 

(192

)

 

 

(108

)

 

 

(506

)

 

 

(3,250

)

Operating net income (numerator)

 

$

74,782

 

 

$

80,327

 

 

$

68,720

 

 

$

83,735

 

 

$

83,095

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total average assets

 

$

27,377,836

 

 

$

27,235,567

 

 

$

26,900,653

 

 

$

26,386,355

 

 

$

26,357,095

 

Less: Average net core deposit intangible

 

 

(5,548

)

 

 

(6,417

)

 

 

(6,937

)

 

 

(7,478

)

 

 

(8,053

)

Total operating average assets (denominator)

 

$

27,372,288

 

 

$

27,229,150

 

 

$

26,893,716

 

 

$

26,378,877

 

 

$

26,349,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

1.08

%

 

 

1.18

%

 

 

1.04

%

 

 

1.26

%

 

 

1.25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

 

 

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

 

 

 

 

 

2023

 

2023

 

2023

 

2022

 

2022

Return on average common shareholders' equity (tangible)

 

 

 

 

 

 

Net income available to common shareholders

 

$

69,535

 

 

$

77,045

 

 

$

65,752

 

 

$

79,271

 

 

$

68,309

 

Plus: Intangible amortization

 

 

 

601

 

 

 

1,072

 

 

 

674

 

 

 

688

 

 

 

690

 

Plus: Merger-related expenses

 

 

 

 

 

 

 

 

 

 

 

 

1,894

 

 

 

7,006

 

Plus: CECL Day 1 Provision expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,954

 

Plus: Interest rate derivative transition valuation(1)

 

 

2,958

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Tax impact of adjustments

 

 

 

(747

)

 

 

(225

)

 

 

(142

)

 

 

(542

)

 

 

(3,287

)

Operating net income available to common shareholders (numerator)

 

$

72,347

 

 

$

77,892

 

 

$

66,284

 

 

$

81,311

 

 

$

80,672