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Fulton Financial Corporation Announces Fourth Quarter and Full-Year 2023 Results

Fulton Financial Corporation (NASDAQ: FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $61.7 million, or $0.37 per diluted share, for the fourth quarter of 2023, a decrease of $7.8 million, or 11.3%, in comparison to the third quarter of 2023. Operating net income available to common shareholders for the three months ended December 31, 2023 was $68.8 million, or $0.42 per diluted share(1).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240116531563/en/

For the year ended December 31, 2023, net income available to common shareholders was $274.0 million, or $1.64 per diluted share, a decrease of $2.7 million, or 1.0%, in comparison to the same period in 2022. Operating net income available to common shareholders for the year-ended December 31, 2023 was $285.0 million, or $1.71 per diluted share(1).

During the fourth quarter of 2023, the Corporation launched the "FultonFirst" initiative that is focused on evaluating and improving how Fulton operates. Approximately $3.2 million was recorded in the fourth quarter of 2023 related to this initiative. Additionally, the Corporation recognized a Federal Deposit Insurance Corporation ("FDIC") special assessment charge of $6.5 million.

"2023 was an extraordinary year and we were pleased with our results," said Curtis J. Myers, Chairman and CEO of Fulton Financial Corporation. "Our team advanced our strategic objectives. We grew loans and deposits in a challenging environment, delivered enhancements to the customer experience, continued to operate with excellence and served our stakeholders well. Looking forward, 2024 is full of opportunity."

Net Interest Income and Balance Sheet

Net interest income for the fourth quarter of 2023 was $212.0 million, a decrease of $1.8 million in comparison to the third quarter of 2023. The net interest margin for the fourth quarter of 2023 decreased four basis points, to 3.36%, in comparison to 3.40% in the third quarter of 2023.

(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.

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

An 11 basis point increase in the yield on average net loans and an increase in the average balance of net loans of $134.5 million in the fourth quarter of 2023 drove an increase in interest income of $7.8 million to $338.1 million in comparison to $330.4 million in the third quarter of 2023.

Interest expense on interest-bearing liabilities for the fourth quarter of 2023 increased by $9.6 million to $126.1 million in comparison to $116.5 million in the third quarter of 2023. The linked-quarter increase in interest expense in the fourth quarter of 2023 was primarily due to an increase in the rate on average interest-bearing deposits of 26 basis points, a decline of $232.3 million in the average balance of noninterest-bearing deposits and an increase in the average balance of interest-bearing deposits of $351.6 million in comparison to the third quarter of 2023, partially offset by a decrease in the rate on borrowings and other interest-bearing deposits of 16 basis points and a decrease in the average balance of borrowings and other interest-bearing deposits of $149.4 million.

For the fourth quarter of 2023, net interest income was $212.0 million, a decrease of $13.9 million, or 6.2%, in comparison to the fourth quarter of 2022. Interest income for the fourth quarter of 2023 increased by $70.3 million to $338.1 million in comparison to $267.8 million in the fourth quarter of 2022, primarily driven by rising interest rates resulting in an increase in interest income from net loans of $70.1 million. Increases in the average balance of net loans of $1.3 billion and in yields on net loans of 103 basis points in the fourth quarter of 2023 compared to the fourth quarter of 2022 each contributed to the increase in interest income. Interest expense on interest-bearing liabilities for the fourth quarter of 2023 increased by $84.2 million to $126.1 million in comparison to $41.9 million in the fourth 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 $74.3 million and $9.9 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 $2.3 billion and $516.2 million, respectively, in the fourth quarter of 2023 in comparison to the fourth quarter of 2022 also contributed to the increase in interest expense.

Total average interest-earning assets for the fourth quarter of 2023 were $25.6 billion, an increase of $61.8 million from the third quarter of 2023 primarily driven by an increase in average net loans of $134.5 million, partially offset by a decrease in average investment securities of $76.8 million.

Total average interest-earning assets for the fourth quarter of 2023 increased by $848.6 million from the fourth quarter of 2022. Average net loans for the fourth quarter of 2023 were $21.3 billion, an increase of $1.3 billion from the same period in 2022. Compared to the fourth quarter of 2022, average investment securities decreased $209.9 million and average other interest-earning assets decreased $192.8 million in the fourth quarter of 2023.

Total average interest-bearing liabilities increased $202.2 million to $18.6 billion in the fourth quarter of 2023 in comparison to $18.4 billion in the third 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 $351.6 million, partially offset by a decrease in the average balance of borrowings and other interest-bearing liabilities of $149.4 million.

Total average interest-bearing liabilities for the fourth quarter of 2023 increased $2.8 billion to $18.6 billion in comparison to $15.7 billion in the fourth quarter of 2022, driven by increases in the average balances of total interest-bearing deposits and borrowings and other interest-bearing liabilities of $2.3 billion and $0.5 billion, respectively.

Asset Quality

In the fourth quarter of 2023, a provision for credit losses of $9.8 million was recorded in comparison to $9.9 million in the third quarter of 2023 and $14.5 million in the fourth quarter of 2022. The provision for credit losses of $9.8 million recorded in the fourth quarter of 2023 was primarily due to loan growth and some weakening of credit metrics.

Non-performing assets were $154.2 million, or 0.56% of total assets, at December 31, 2023, in comparison to $143.5 million, or 0.52% of total assets, at September 30, 2023, and $177.7 million, or 0.66% of total assets, at December 31, 2022.

Net charge-offs for the fourth quarter of 2023 were 0.15% of total average loans in comparison to 0.10% and 0.23% in the third quarter of 2023 and the fourth quarter of 2022, respectively.

Non-interest Income

Non-interest income before investment securities gains (losses) in the fourth quarter of 2023 was $60.1 million, an increase of $4.2 million, or 7.4%, from the third quarter of 2023. The increase in non-interest income was primarily due to a $4.1 million linked-quarter net change from market movements 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"), reflected as an increase to other non-interest income. Additional contributors to the increase in non-interest income were increases of $1.4 million in commercial customer interest rate swap fee income, reflected in capital markets, and a $0.6 million increase in cash surrender value of life insurance policies, reflected in other income, partially offset by decreases in mortgage banking income, income from equity method investments, reflected in other income, and merchant and card income of $0.9 million, $0.7 million and $0.6 million, respectively.

Compared to the fourth quarter of 2022, non-interest income before investment securities gains (losses) in the fourth quarter of 2023 increased $5.8 million, or 10.7%, from $54.3 million. The increase in non-interest income was primarily due to increases of $1.9 million in wealth management revenues, $1.6 million in commercial customer interest rate swap fee income, reflected in capital markets, a $1.1 million market valuation movement in our commercial customer interest rate swap program resulting from the reference rate transition from LIBOR to SOFR and reflected as an increase to other non-interest income, a $0.7 million increase in cash surrender value of life insurance policies, reflected in other income, a $0.3 million increase in cash management fee income and a $0.3 million increase in gains on sale from Small Business Association ("SBA") loans, reflected in other commercial banking income.

Non-interest Expense

Non-interest expense was $180.6 million in the fourth quarter of 2023, an increase of $9.5 million, or 5.6%, compared to $171.0 million in the third quarter of 2023. The increase was primarily due to increases of $6.4 million in FDIC insurance expense, primarily due to the special assessment of $6.5 million charged to recover the loss to the Deposit Insurance Fund in connection with the closures of certain banks in 2023, $2.6 million in other outside services related to consulting fees incurred for the FultonFirst initiative, $1.6 million in marketing expense due to a targeted customer deposit acquisition program and brand marketing campaigns in growth markets, partially offset by a $0.7 million gain from debt extinguishment recorded in the fourth quarter of 2023, reflected in other expense. Included in salaries and benefits expense was $0.6 million for severance expense incurred as a result of the FultonFirst initiative.

Compared to the fourth quarter of 2022, non-interest expense, excluding merger-related expenses of $1.9 million in the fourth quarter of 2022, increased $14.0 million, or 8.4%. The increase was primarily due to increases of $7.9 million in FDIC insurance expense, primarily due to the special assessment of $6.5 million discussed above and the adoption of a final rule to increase base deposit insurance assessment rates effective January 1, 2023, $4.5 million in salaries and employee benefits expense, $3.8 million in other outside services expense driven by the FultonFirst initiative, partially offset by a $1.6 million decrease related to a contingent liability recorded in 2022 and a $0.7 million gain from debt extinguishment recorded in the fourth quarter of 2023, both reflected in other expense. The $4.5 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. Also included in salaries and benefits expense was $0.6 million for severance expense incurred as a result of the FultonFirst initiative.

Income Tax Expense

For 2023 the effective tax rate was 18.5% in comparison to 17.3% for 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, June 30, 2023 and September 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

 

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

 

2023

 

2023

 

2023

 

2023

 

2022

 

Ending Balances

 

 

 

 

 

 

 

 

 

 

Investment securities

$

3,666,274

 

$

3,698,601

 

$

3,867,334

 

$

3,950,101

 

$

3,968,023

 

Net loans

 

21,351,094

 

 

21,177,508

 

 

21,044,685

 

 

20,670,188

 

 

20,279,547

 

Total assets

 

27,560,704

 

 

27,375,177

 

 

27,403,163

 

 

27,112,176

 

 

26,931,702

 

Deposits

 

21,537,623

 

 

21,421,589

 

 

21,206,540

 

 

21,316,584

 

 

20,649,538

 

Shareholders' equity

 

2,750,044

 

 

2,566,693

 

 

2,642,152

 

 

2,618,998

 

 

2,579,757

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances

 

 

 

 

 

 

 

 

 

 

Investment securities

 

3,665,261

 

 

3,834,824

 

 

3,916,130

 

 

3,964,615

 

 

3,936,579

 

Net loans

 

21,255,779

 

 

21,121,277

 

 

20,866,235

 

 

20,463,096

 

 

20,004,513

 

Total assets

 

27,397,671

 

 

27,377,836

 

 

27,235,567

 

 

26,900,653

 

 

26,386,355

 

Deposits

 

21,476,548

 

 

21,357,295

 

 

21,207,143

 

 

20,574,323

 

 

21,027,656

 

Shareholders' equity

 

2,618,024

 

 

2,645,977

 

 

2,647,464

 

 

2,613,316

 

 

2,489,148

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement

 

 

 

 

 

 

 

 

 

 

Net interest income

 

212,006

 

 

213,842

 

 

212,852

 

 

215,587

 

 

225,911

 

Provision for credit losses

 

9,808

 

 

9,937

 

 

9,747

 

 

24,544

 

 

14,513

 

Non-interest income

 

59,378

 

 

55,961

 

 

60,585

 

 

51,753

 

 

54,321

 

Non-interest expense

 

180,552

 

 

171,020

 

 

168,018

 

 

159,616

 

 

168,462

 

Income before taxes

 

81,024

 

 

88,846

 

 

95,672

 

 

83,180

 

 

97,257

 

Net income available to common shareholders

 

61,701

 

 

69,535

 

 

77,045

 

 

65,752

 

 

79,271

 

Pre-provision net revenue(1)

 

100,050

 

 

102,342

 

 

106,495

 

 

108,375

 

 

115,049

 

 

 

 

 

 

 

 

 

 

 

 

Per Share

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (basic)

$

0.38

 

$

0.42

 

$

0.46

 

$

0.39

 

$

0.47

 

Net income available to common shareholders (diluted)

$

0.37

 

$

0.42

 

$

0.46

 

$

0.39

 

$

0.47

 

Operating net income available to common shareholders(1)

$

0.42

 

$

0.43

 

$

0.47

 

$

0.39

 

$

0.48

 

Cash dividends

$

0.17

 

$

0.16

 

$

0.16

 

$

0.15

 

$

0.21

 

Common shareholders' equity

$

15.61

 

$

14.47

 

$

14.75

 

$

14.67

 

$

14.24

 

Common shareholders' equity (tangible)(1)

$

12.19

 

$

11.05

 

$

11.36

 

$

11.26

 

$

10.90

 

Weighted average shares (basic)

 

163,975

 

 

164,566

 

 

165,854

 

 

166,605

 

 

167,504

 

Weighted average shares (diluted)

 

165,650

 

 

166,023

 

 

167,191

 

 

168,401

 

 

169,136

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

 

2023

 

2023

 

2023

 

2023

 

2022

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to average loans

 

0.15 %

 

 

0.10 %

 

 

0.04 %

 

 

0.27 %

 

 

0.23 %

 

Non-performing loans to total net loans

 

0.72 %

 

 

0.67 %

 

 

0.70 %

 

 

0.80 %

 

 

0.85 %

 

Non-performing assets to total assets

 

0.56 %

 

 

0.52 %

 

 

0.55 %

 

 

0.62 %

 

 

0.66 %

 

ACL - loans(1) to total loans

 

1.37 %

 

 

1.38 %

 

 

1.37 %

 

 

1.35 %

 

 

1.33 %

 

ACL - loans(1) to non-performing loans

 

191 %

 

 

208 %

 

 

195 %

 

 

169 %

 

 

157 %

 

 

 

 

 

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

0.93 %

 

 

1.04 %

 

 

1.17 %

 

 

1.03 %

 

 

1.23 %

 

Operating return on average assets(2)

 

1.03 %

 

 

1.08 %

 

 

1.18 %

 

 

1.04 %

 

 

1.26 %

 

Return on average common shareholders' equity

 

10.09 %

 

 

11.25 %

 

 

12.59 %

 

 

11.02 %

 

 

13.70 %

 

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

 

14.68 %

 

 

15.17 %

 

 

16.52 %

 

 

14.46 %

 

 

18.59 %

 

Net interest margin

 

3.36 %

 

 

3.40 %

 

 

3.40 %

 

 

3.53 %

 

 

3.69 %

 

Efficiency ratio(2)

 

62.0 %

 

 

61.5 %

 

 

60.1 %

 

 

58.5 %

 

 

58.1 %

 

Non-interest expenses to total average assets

 

2.61 %

 

 

2.48 %

 

 

2.47 %

 

 

2.41 %

 

 

2.53 %

 

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

 

2.47 %

 

 

2.47 %

 

 

2.46 %

 

 

2.40 %

 

 

2.48 %

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

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

 

7.4 %

 

 

6.8 %

 

 

7.0 %

 

 

7.0 %

 

 

6.9 %

 

Tier 1 leverage ratio(3)

 

9.5 %

 

 

9.4 %

 

 

9.3 %

 

 

9.2 %

 

 

9.5 %

 

Common equity Tier 1 capital ratio(3)

 

10.4 %

 

 

10.3 %

 

 

10.1 %

 

 

9.8 %

 

 

10.0 %

 

Tier 1 risk-based capital ratio(3)

 

11.2 %

 

 

11.1 %

 

 

11.0 %

 

 

10.6 %

 

 

10.9 %

 

Total risk-based capital ratio(3)

 

14.1 %

 

 

14.0 %

 

 

13.8 %

 

 

13.4 %

 

 

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) Regulatory capital ratios as of December 31, 2023 are preliminary estimates and prior periods are actual.

 

FULTON FINANCIAL CORPORATION

 

 

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

 

2023

 

2023

 

2023

 

2023

 

2022

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

300,343

 

 

$

304,042

 

 

$

123,779

 

 

$

129,003

 

 

$

126,898

 

 

Other interest-earning assets

 

373,772

 

 

 

222,781

 

 

 

505,141

 

 

 

545,355

 

 

 

685,209

 

 

Loans held for sale

 

15,158

 

 

 

20,368

 

 

 

14,673

 

 

 

6,507

 

 

 

7,264

 

 

Investment securities

 

3,666,274

 

 

 

3,698,601

 

 

 

3,867,334

 

 

 

3,950,101

 

 

 

3,968,023

 

 

Net loans

 

21,351,094

 

 

 

21,177,508

 

 

 

21,044,685

 

 

 

20,670,188

 

 

 

20,279,547

 

 

Less: ACL - loans(1)

 

(293,404

)

 

 

(292,739

)

 

 

(287,442

)

 

 

(278,695

)

 

 

(269,366

)

 

Loans, net

 

21,057,690

 

 

 

20,884,769

 

 

 

20,757,243

 

 

 

20,391,493

 

 

 

20,010,181

 

 

Net premises and equipment

 

222,881

 

 

 

215,626

 

 

 

216,322

 

 

 

216,059

 

 

 

225,141

 

 

Accrued interest receivable

 

107,972

 

 

 

101,624

 

 

 

96,991

 

 

 

90,267

 

 

 

91,579

 

 

Goodwill and intangible assets

 

560,687

 

 

 

561,284

 

 

 

561,885

 

 

 

563,502

 

 

 

560,824

 

 

Other assets

 

1,255,927

 

 

 

1,366,082

 

 

 

1,259,795

 

 

 

1,219,889

 

 

 

1,256,583

 

 

Total Assets

$

27,560,704

 

 

$

27,375,177

 

 

$

27,403,163

 

 

$

27,112,176

 

 

$

26,931,702

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Deposits

$

21,537,623

 

 

$

21,421,589

 

 

$

21,206,540

 

 

$

21,316,584

 

 

$

20,649,538

 

 

Borrowings

 

2,487,526

 

 

 

2,370,112

 

 

 

2,719,114

 

 

 

2,446,770

 

 

 

2,871,207

 

 

Other liabilities

 

785,511

 

 

 

1,016,783

 

 

 

835,357

 

 

 

729,824

 

 

 

831,200

 

 

Total Liabilities

 

24,810,660

 

 

 

24,808,484

 

 

 

24,761,011

 

 

 

24,493,178

 

 

 

24,351,945

 

 

Shareholders' equity

 

2,750,044

 

 

 

2,566,693

 

 

 

2,642,152

 

 

 

2,618,998

 

 

 

2,579,757

 

 

Total Liabilities and Shareholders' Equity

$

27,560,704

 

 

$

27,375,177

 

 

$

27,403,163

 

 

$

27,112,176

 

 

$

26,931,702

 

 

 

 

 

 

 

 

 

 

 

 

LOANS, DEPOSITS AND BORROWINGS DETAIL:

 

 

 

 

 

 

Loans, by type:

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

8,127,728

 

 

$

8,106,300

 

 

$

7,846,861

 

 

$

7,746,920

 

 

$

7,693,835

 

 

Commercial and industrial

 

4,545,552

 

 

 

4,577,334

 

 

 

4,599,759

 

 

 

4,596,096

 

 

 

4,473,004

 

 

Real estate - residential mortgage

 

5,325,923

 

 

 

5,279,681

 

 

 

5,147,262

 

 

 

4,880,919

 

 

 

4,737,279

 

 

Real estate - home equity

 

1,047,184

 

 

 

1,045,438

 

 

 

1,061,891

 

 

 

1,074,712

 

 

 

1,102,838

 

 

Real estate - construction

 

1,239,075

 

 

 

1,078,263

 

 

 

1,308,564

 

 

 

1,326,754

 

 

 

1,269,925

 

 

Consumer

 

729,318

 

 

 

743,976

 

 

 

763,530

 

 

 

730,775

 

 

 

699,179

 

 

Leases and other loans(2)

 

336,314

 

 

 

346,516

 

 

 

316,818

 

 

 

314,012

 

 

 

303,487

 

 

Total Net Loans

$

21,351,094

 

 

$

21,177,508

 

 

$

21,044,685

 

 

$

20,670,188

 

 

$

20,279,547

 

Deposits, by type:

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

5,314,094

 

 

$

5,575,374

 

 

$

5,865,855

 

 

$

6,403,484

 

 

$

7,006,388

 

 

Interest-bearing demand

 

5,722,695

 

 

 

5,757,487

 

 

 

5,543,320

 

 

 

5,478,237

 

 

 

5,410,903

 

 

Savings

 

6,616,901

 

 

 

6,707,729

 

 

 

6,646,448

 

 

 

6,579,806

 

 

 

6,434,621

 

 

Total demand and savings

 

17,653,690

 

 

 

18,040,590

 

 

 

18,055,623

 

 

 

18,461,527

 

 

 

18,851,912

 

 

Brokered

 

1,144,692

 

 

 

941,059

 

 

 

949,259

 

 

 

960,919

 

 

 

208,416

 

 

Time

 

2,739,241

 

 

 

2,439,940

 

 

 

2,201,658

 

 

 

1,894,138

 

 

 

1,589,210

 

 

Total Deposits

$

21,537,623

 

 

$

21,421,589

 

 

$

21,206,540

 

 

$

21,316,584

 

 

$

20,649,538

 

Borrowings, by type:

 

 

 

 

 

 

 

 

 

Federal funds purchased

$

240,000

 

 

$

544,000

 

 

$

555,000

 

 

$

525,000

 

 

$

191,000

 

 

Federal Home Loan Bank advances

 

1,100,000

 

 

 

730,000

 

 

 

1,165,000

 

 

 

747,000

 

 

 

1,250,000

 

 

Senior debt and subordinated debt

 

535,384

 

 

 

540,174

 

 

 

539,994

 

 

 

539,814

 

 

 

539,634

 

 

Other borrowings

 

612,142

 

 

 

555,938

 

 

 

459,120

 

 

 

634,956

 

 

 

890,573

 

 

Total Borrowings

$

2,487,526

 

 

$

2,370,112

 

 

$

2,719,114

 

 

$

2,446,770

 

 

$

2,871,207

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

Year ended

 

 

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Dec 31

 

 

 

2023

 

2023

 

2023

 

2023

 

2022

 

2023

 

2022

Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

338,134

 

 

$

330,371

 

 

$

314,912

 

 

$

289,820

 

 

$

267,847

 

 

$

1,273,236

 

 

$

864,838

 

 

Interest expense

 

 

126,128

 

 

 

116,529

 

 

 

102,060

 

 

 

74,233

 

 

 

41,936

 

 

 

418,950

 

 

 

83,204

 

 

Net Interest Income

 

 

212,006

 

 

 

213,842

 

 

 

212,852

 

 

 

215,587

 

 

 

225,911

 

 

 

854,286

 

 

 

781,634

 

 

Provision for credit losses

 

 

9,808

 

 

 

9,937

 

 

 

9,747

 

 

 

24,544

 

 

 

14,513

 

 

 

54,036

 

 

 

28,021

 

 

Net Interest Income after Provision

 

 

202,198

 

 

 

203,905

 

 

 

203,105

 

 

 

191,043

 

 

 

211,398

 

 

 

800,250

 

 

 

753,613

 

Non-Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchant and card

 

 

7,045

 

 

 

7,626

 

 

 

7,700

 

 

 

6,834

 

 

 

7,223

 

 

 

29,205

 

 

 

28,276

 

 

Cash management

 

 

6,030

 

 

 

5,960

 

 

 

5,835

 

 

 

5,515

 

 

 

5,756

 

 

 

23,340

 

 

 

23,729

 

 

Capital markets

 

 

4,258

 

 

 

2,960

 

 

 

6,092

 

 

 

2,344

 

 

 

2,627

 

 

 

15,654

 

 

 

12,256

 

 

Other commercial banking

 

 

3,447

 

 

 

3,176

 

 

 

3,518

 

 

 

2,820

 

 

 

2,998

 

 

 

12,961

 

 

 

11,518

 

 

Total commercial banking

 

 

20,780

 

 

 

19,722

 

 

 

23,145

 

 

 

17,513

 

 

 

18,604

 

 

 

81,160

 

 

 

75,779

 

 

Wealth management

 

 

19,388

 

 

 

19,413

 

 

 

18,678

 

 

 

18,062

 

 

 

17,531

 

 

 

75,541

 

 

 

72,843

 

 

Consumer banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Card

 

 

6,739

 

 

 

6,770

 

 

 

6,592

 

 

 

6,243

 

 

 

6,331

 

 

 

26,343

 

 

 

24,472

 

 

Overdraft

 

 

2,991

 

 

 

2,996

 

 

 

2,696

 

 

 

2,733

 

 

 

3,364

 

 

 

11,416

 

 

 

15,480

 

 

Other consumer banking

 

 

2,357

 

 

 

2,407

 

 

 

2,432

 

 

 

2,241

 

 

 

2,380

 

 

 

9,438

 

 

 

9,544

 

 

Total consumer banking

 

 

12,087

 

 

 

12,173

 

 

 

11,720

 

 

 

11,217

 

 

 

12,075

 

 

 

47,197

 

 

 

49,496

 

 

Mortgage banking

 

 

2,288

 

 

 

3,190

 

 

 

2,940

 

 

 

1,970

 

 

 

2,140

 

 

 

10,388

 

 

 

14,204

 

 

Other

 

 

5,587

 

 

 

1,463

 

 

 

4,106

 

 

 

2,968

 

 

 

3,972

 

 

 

14,125

 

 

 

14,835

 

 

Non-interest income before investment securities gains (losses)

 

 

60,130

 

 

 

55,961

 

 

 

60,589

 

 

 

51,730

 

 

 

54,322

 

 

 

228,411

 

 

 

227,157

 

 

Investment securities gains (losses), net

 

 

(752

)

 

 

 

 

 

(4

)

 

 

23

 

 

 

(1

)

 

 

(733

)

 

 

(27

)

 

Total Non-Interest Income

 

 

59,378

 

 

 

55,961

 

 

 

60,585

 

 

 

51,753

 

 

 

54,321

 

 

 

227,678

 

 

 

227,130

 

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

97,275

 

 

 

96,757

 

 

 

94,102

 

 

 

89,283

 

 

 

92,733

 

 

 

377,417

 

 

 

356,884

 

 

Data processing and software

 

 

16,985

 

 

 

16,914

 

 

 

16,776

 

 

 

15,796

 

 

 

15,448

 

 

 

66,471

 

 

 

60,255

 

 

Other outside services

 

 

14,670

 

 

 

12,094

 

 

 

10,834

 

 

 

10,126

 

 

 

10,860

 

 

 

47,724

 

 

 

37,152

 

 

Net occupancy

 

 

14,647

 

 

 

14,561

 

 

 

14,374

 

 

 

14,438

 

 

 

14,061

 

 

 

58,019

 

 

 

56,195

 

 

FDIC insurance

 

 

11,138

 

 

 

4,738

 

 

 

4,895

 

 

 

4,795

 

 

 

3,219

 

 

 

25,565

 

 

 

12,547

 

 

Equipment

 

 

3,995

 

 

 

3,475

 

 

 

3,530

 

 

 

3,389

 

 

 

3,640

 

 

 

14,390

 

 

 

14,033

 

 

Marketing

 

 

3,550

 

 

 

1,913

 

 

 

1,655

 

 

 

1,886

 

 

 

2,380

 

 

 

9,004

 

 

 

6,885

 

 

Professional fees

 

 

2,302

 

 

 

1,869

 

 

 

1,829

 

 

 

2,392

 

 

 

2,945

 

 

 

8,392

 

 

 

9,123

 

 

Intangible amortization

 

 

597

 

 

 

601

 

 

 

1,072

 

 

 

674

 

 

 

688

 

 

 

2,944

 

 

 

1,731

 

 

Merger-related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,894

 

 

 

 

 

 

10,328

 

 

Other

 

 

15,393

 

 

 

18,098

 

 

 

18,951

 

 

 

16,837

 

 

 

20,594

 

 

 

69,281

 

 

 

68,595

 

 

Total Non-Interest Expense

 

 

180,552

 

 

 

171,020

 

 

 

168,018

 

 

 

159,616

 

 

 

168,462

 

 

 

679,207

 

 

 

633,728

 

 

Income Before Income Taxes

 

 

81,024

 

 

 

88,846

 

 

 

95,672

 

 

 

83,180

 

 

 

97,257

 

 

 

348,721

 

 

 

347,015

 

 

Income tax expense

 

 

16,761

 

 

 

16,749

 

 

 

16,065

 

 

 

14,866

 

 

 

15,424

 

 

 

64,441

 

 

 

60,034

 

 

Net Income

 

 

64,263

 

 

 

72,097

 

 

 

79,607

 

 

 

68,314

 

 

 

81,833

 

 

 

284,280

 

 

 

286,981

 

 

Preferred stock dividends

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(10,248

)

 

 

(10,248

)

 

Net Income Available to Common Shareholders

 

$

61,701

 

 

$

69,535

 

 

$

77,045

 

 

$

65,752

 

 

$

79,271

 

 

$

274,032

 

 

$

276,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year ended

 

 

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Dec 31

 

 

 

2023

 

2023

 

2023

 

2023

 

2022

 

2023

 

2022

PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (basic)

 

$

0.38

 

 

$

0.42

 

 

$

0.46

 

 

$

0.39

 

 

$

0.47

 

 

$

1.66

 

 

$

1.69

 

 

 

Net income available to common shareholders (diluted)

 

$

0.37

 

 

$

0.42

 

 

$

0.46

 

 

$

0.39

 

 

$

0.47

 

 

$

1.64

 

 

$

1.67

 

 

Cash dividends

 

$

0.17

 

 

$

0.16

 

 

$

0.16

 

 

$

0.15

 

 

$

0.21

 

 

$

0.64

 

 

$

0.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

 

163,975

 

 

 

164,566

 

 

 

165,854

 

 

 

166,605

 

 

 

167,504

 

 

 

165,241

 

 

 

164,119

 

 

Weighted average shares (diluted)

 

 

165,650

 

 

 

166,023

 

 

 

167,191

 

 

 

168,401

 

 

 

169,136

 

 

 

166,769

 

 

 

165,472

 

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

Three months ended

 

 

December 31, 2023

 

September 30, 2023

 

December 31, 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

$

21,255,779

 

 

$

311,992

 

 

5.83

%

 

$

21,121,277

 

 

$

304,167

 

 

5.72

%

 

$

20,004,513

 

 

$

241,453

 

 

4.80

%

 

Investment securities(2)

 

4,120,750

 

 

 

27,227

 

 

2.64

%

 

 

4,197,550

 

 

 

27,274

 

 

2.59

%

 

 

4,330,635

 

 

 

27,781

 

 

2.56

%

 

Other interest-earning assets

 

267,329

 

 

 

3,464

 

 

5.17

%

 

 

263,244

 

 

 

3,372

 

 

5.11

%

 

 

460,082

 

 

 

2,923

 

 

2.53

%

 

Total Interest-Earning Assets

 

25,643,858

 

 

 

342,683

 

 

5.31

%

 

 

25,582,071

 

 

 

334,813

 

 

5.20

%

 

 

24,795,230

 

 

 

272,157

 

 

4.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

282,614

 

 

 

 

 

 

 

306,496

 

 

 

 

 

 

 

149,472

 

 

 

 

 

 

Premises and equipment

 

219,994

 

 

 

 

 

 

 

217,447

 

 

 

 

 

 

 

223,245

 

 

 

 

 

 

Other assets

 

1,545,535

 

 

 

 

 

 

 

1,562,233

 

 

 

 

 

 

 

1,488,684

 

 

 

 

 

 

Less: ACL - loans(3)

 

(294,330

)

 

 

 

 

 

 

(290,411

)

 

 

 

 

 

 

(270,276

)

 

 

 

 

 

Total Assets

$

27,397,671

 

 

 

 

 

 

$

27,377,836

 

 

 

 

 

 

$

26,386,355

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

5,723,169

 

 

$

20,737

 

 

1.44

%

 

$

5,740,229

 

 

$

18,690

 

 

1.29

%

 

$

5,479,443

 

 

$

4,589

 

 

0.33

%

 

Savings deposits

 

6,682,512

 

 

 

38,239

 

 

2.27

%

 

 

6,676,792

 

 

 

34,277

 

 

2.04

%

 

 

6,466,775

 

 

 

11,539

 

 

0.71

%

 

Brokered deposits

 

1,051,369

 

 

 

14,078

 

 

5.31

%

 

 

937,657

 

 

 

12,250

 

 

5.18

%

 

 

215,729

 

 

 

1,947

 

 

3.58

%

 

Time deposits

 

2,579,400

 

 

 

23,575

 

 

3.63

%

 

 

2,330,206

 

 

 

18,939

 

 

3.22

%

 

 

1,554,885

 

 

 

4,302

 

 

1.10

%

 

Total Interest-Bearing Deposits

 

16,036,450

 

 

 

96,629

 

 

2.39

%

 

 

15,684,884

 

 

 

84,156

 

 

2.13

%

 

 

13,716,832

 

 

 

22,377

 

 

0.65

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings and other interest-bearing liabilities

 

2,541,727

 

 

 

29,499

 

 

4.58

%

 

 

2,691,087

 

 

 

32,373

 

 

4.74

%

 

 

2,025,522

 

 

 

19,559

 

 

3.83

%

 

Total Interest-Bearing Liabilities

 

18,578,177

 

 

 

126,128

 

 

2.69

%

 

 

18,375,971

 

 

 

116,529

 

 

2.51

%

 

 

15,742,354

 

 

 

41,936

 

 

1.06

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

5,440,098

 

 

 

 

 

 

 

5,672,411

 

 

 

 

 

 

 

7,310,824

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

761,372

 

 

 

 

 

 

 

683,477

 

 

 

 

 

 

 

844,029

 

 

 

 

 

 

Total Liabilities

 

24,779,647

 

 

 

 

 

 

 

24,731,859

 

 

 

 

 

 

 

23,897,207

 

 

 

 

 

 

Total Deposits/Cost of Deposits

 

21,476,548

 

 

 

 

1.79

%

 

 

21,357,295

 

 

 

 

1.56

%

 

 

21,027,656

 

 

 

 

0.42

%

 

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

 

24,018,275

 

 

 

 

2.08

%

 

 

24,048,382

 

 

 

 

1.92

%

 

 

23,053,178

 

 

 

 

0.72

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

2,618,024

 

 

 

 

 

 

 

2,645,977

 

 

 

 

 

 

 

2,489,148

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

$

27,397,671

 

 

 

 

 

 

$

27,377,836

 

 

 

 

 

 

$

26,386,355

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

216,555

 

 

3.36

%

 

 

 

 

218,284

 

 

3.40

%

 

 

 

 

230,221

 

 

3.69

%

 

Tax equivalent adjustment

 

 

 

(4,549

)

 

 

 

 

 

 

(4,442

)

 

 

 

 

 

 

(4,310

)

 

 

 

Net Interest Income

 

 

$

212,006

 

 

 

 

 

 

$

213,842

 

 

 

 

 

 

$

225,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

 

 

2023

 

2023

 

2023

 

2023

 

2022

 

Loans, by type:

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

8,090,627

 

$

7,912,801

 

$

7,775,436

 

$

7,720,975

 

$

7,696,997

 

 

Commercial and industrial

 

4,579,441

 

 

4,611,376

 

 

4,629,919

 

 

4,565,923

 

 

4,372,935

 

 

Real estate - residential mortgage

 

5,303,632

 

 

5,209,105

 

 

5,008,295

 

 

4,790,868

 

 

4,643,784

 

 

Real estate - home equity

 

1,043,753

 

 

1,045,806

 

 

1,066,615

 

 

1,086,032

 

 

1,106,325

 

 

Real estate - construction

 

1,153,601

 

 

1,254,577

 

 

1,306,286

 

 

1,276,145

 

 

1,209,998

 

 

Consumer

 

746,011

 

 

761,273

 

 

763,407

 

 

721,248

 

 

679,108

 

 

Leases and other loans(1)

 

338,714

 

 

326,339

 

 

316,277

 

 

301,905

 

 

295,366

 

 

Total Net Loans

$

21,255,779

 

$

21,121,277

 

$

20,866,235

 

$

20,463,096

 

$

20,004,513

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

5,440,098

 

$

5,672,411

 

$

6,021,091

 

$

6,641,741

 

$

7,310,824

 

 

Interest-bearing demand

 

5,723,169

 

 

5,740,229

 

 

5,535,669

 

 

5,326,566

 

 

5,479,443

 

 

Savings

 

6,682,512

 

 

6,676,792

 

 

6,632,572

 

 

6,469,468

 

 

6,466,775

 

 

Total demand and savings

 

17,845,779

 

 

18,089,432

 

 

18,189,332

 

 

18,437,775

 

 

19,257,042

 

 

Brokered

 

1,051,369

 

 

937,657

 

 

954,773

 

 

439,670

 

 

215,729

 

 

Time

 

2,579,400

 

 

2,330,206

 

 

2,063,038

 

 

1,696,878

 

 

1,554,885

 

 

Total Deposits

$

21,476,548

 

$

21,357,295

 

$

21,207,143

 

$

20,574,323

 

$

21,027,656

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings, by type:

 

 

 

 

 

 

 

 

 

 

 

Federal funds purchased

$

446,707

 

$

634,163

 

$

679,401

 

$

505,142

 

$

261,737

 

 

Federal Home Loan Bank advances

 

760,087

 

 

793,098

 

 

880,811

 

 

1,261,589

 

 

564,692

 

 

Senior debt and subordinated debt

 

539,186

 

 

540,086

 

 

539,906

 

 

539,726

 

 

539,550

 

 

Other borrowings and other interest-bearing liabilities

 

795,747

 

 

723,740

 

 

690,742

 

 

752,227

 

 

659,543

 

 

Total Borrowings

$

2,541,727

 

$

2,691,087

 

$

2,790,860

 

$

3,058,684

 

$

2,025,522

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

 

 

 

 

 

 

 

 

 

Year ended December 31

 

 

 

 

2023

 

2022

 

 

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

 

 

 

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

Net loans

 

$

20,929,302

 

 

$

1,166,376

 

 

5.57

%

 

$

19,152,740

 

 

$

765,603

 

 

4.00

%

 

 

Investment securities(2)

 

 

4,210,010

 

 

 

109,325

 

 

2.59

%

 

 

4,364,627

 

 

 

106,115

 

 

2.43

%

 

 

Other interest-earning assets

 

 

387,360

 

 

 

15,346

 

 

3.96

%

 

 

829,705

 

 

 

8,115

 

 

0.98

%

 

 

Total Interest-Earning Assets

 

 

25,526,672

 

 

 

1,291,047

 

 

5.06

%

 

 

24,347,072

 

 

 

879,833

 

 

3.61

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Earning assets:

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

215,649

 

 

 

 

 

 

 

156,050

 

 

 

 

 

 

 

Premises and equipment

 

 

219,315

 

 

 

 

 

 

 

220,982

 

 

 

 

 

 

 

Other assets

 

 

1,553,284

 

 

 

 

 

 

 

1,505,277

 

 

 

 

 

 

 

Less: ACL - loans(3)

 

 

(285,216

)

 

 

 

 

 

 

(257,897

)

 

 

 

 

 

 

Total Assets

 

$

27,229,704

 

 

 

 

 

 

$

25,971,484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing liabilities:

 

 

 

 

 

 

 

 

Demand deposits

 

$

5,582,930

 

 

$

62,494

 

 

1.12

%

 

$

5,593,942

 

 

$

8,219

 

 

0.15

%

 

 

Savings deposits

 

 

6,616,087

 

 

 

122,340

 

 

1.85

%

 

 

6,458,165

 

 

 

16,642

 

 

0.26

%

 

 

Brokered deposits

 

 

847,795

 

 

 

43,635

 

 

5.15

%

 

 

262,359

 

 

 

4,097

 

 

1.56

%

 

 

Time deposits

 

 

2,170,245

 

 

 

63,735

 

 

2.94

%

 

 

1,617,804

 

 

 

14,871

 

 

0.92

%

 

 

Total Interest-Bearing Deposits

 

 

15,217,057

 

 

 

292,204

 

 

1.92

%

 

 

13,932,270

 

 

 

43,829

 

 

0.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings and other interest-bearing liabilities

 

 

2,771,330

 

 

 

126,746

 

 

4.54

%

 

 

1,358,357

 

 

 

39,375

 

 

2.89

%

 

 

Total Interest-Bearing Liabilities

 

 

17,988,387

 

 

 

418,950

 

 

2.32

%

 

 

15,290,627

 

 

 

83,204

 

 

0.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Bearing liabilities:

 

 

 

 

 

 

 

 

Demand deposits

 

 

5,939,799

 

 

 

 

 

 

 

7,522,304

 

 

 

 

 

 

 

Other

 

 

670,269

 

 

 

 

 

 

 

598,230

 

 

 

 

 

 

 

Total Liabilities

 

 

24,598,455

 

 

 

 

 

 

 

23,411,161

 

 

 

 

 

 

 

Total Deposits/Cost of Deposits

 

 

21,156,856

 

 

 

 

1.38

%

 

 

21,454,574

 

 

 

 

0.20

%

 

 

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

 

 

23,928,186

 

 

 

 

1.75

%

 

 

22,812,931

 

 

 

 

0.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

2,631,249

 

 

 

 

 

 

 

2,560,323

 

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$

27,229,704

 

 

 

 

 

 

$

25,971,484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

872,097

 

 

3.42

%

 

 

 

 

796,629

 

 

3.27

%

 

 

Tax equivalent adjustment

 

 

 

 

(17,811

)

 

 

 

 

 

 

(14,995

)

 

 

 

 

Net Interest Income

 

 

 

$

854,286

 

 

 

 

 

 

$

781,634

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

 

 

 

 

 

 

 

 

 

Year ended December 31

 

 

 

 

2023

 

2022

 

Loans, by type:

 

 

 

 

 

 

Real estate - commercial mortgage

 

$

7,876,076

 

$

7,523,806

 

 

Commercial and industrial

 

 

4,596,742

 

 

4,230,133

 

 

Real estate - residential mortgage

 

 

5,079,739

 

 

4,261,527

 

 

Real estate - home equity

 

 

1,060,396

 

 

1,101,142

 

 

Real estate - construction

 

 

1,247,336

 

 

1,178,550

 

 

Consumer

 

 

748,089

 

 

569,305

 

 

Leases and other loans(1)

 

 

320,924

 

 

288,277

 

 

Total Net Loans

 

$

20,929,302

 

$

19,152,740

 

 

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

 

Noninterest-bearing demand

 

$

5,939,799

 

$

7,522,304

 

 

Interest-bearing demand

 

 

5,582,930

 

 

5,593,942

 

 

Savings

 

 

6,616,087

 

 

6,458,165

 

 

Total demand and savings

 

 

18,138,816

 

 

19,574,411

 

 

Brokered

 

 

847,795

 

 

262,359

 

 

Time

 

 

2,170,245

 

 

1,617,804

 

 

Total Deposits

 

$

21,156,856

 

$

21,454,574

 

 

 

 

 

 

 

 

Borrowings, by type:

 

 

 

 

 

 

Federal funds purchased

 

$

566,379

 

$

91,125

 

 

Federal Home Loan Bank advances

 

 

922,164

 

 

194,295

 

 

Senior debt and subordinated debt

 

 

539,726

 

 

564,337

 

 

Other borrowings

 

 

743,061

 

 

508,600

 

 

Total Borrowings

 

$

2,771,330

 

$

1,358,357

 

 

 

 

 

 

 

 

(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

 

Year Ended

 

 

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Dec 31

 

Dec 31

 

 

 

2023

 

2023

 

2023

 

2023

 

2022

 

2023

 

2022

 

Allowance for credit losses related to net loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$

292,739

 

 

$

287,442

 

 

$

278,695

 

 

$

269,366

 

 

$

266,838

 

 

$

269,366

 

 

$

249,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CECL Day 1 provision expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,954

 

 

 

Initial purchased credit deteriorated loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,135

 

 

 

Loans charged off:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

 

(3,547

)

 

 

(860

)

 

 

(230

)

 

 

(13,362

)

 

 

(12,235

)

 

 

(17,999

)

 

 

(12,473

)

 

 

Commercial and industrial

 

(3,397

)

 

 

(3,220

)

 

 

(2,017

)

 

 

(612

)

 

 

(179

)

 

 

(9,246

)

 

 

(2,390

)

 

 

Real estate - residential mortgage

 

 

 

 

 

 

 

(62

)

 

 

 

 

 

 

 

 

(62

)

 

 

(66

)

 

 

Consumer and home equity

 

(2,192

)

 

 

(1,803

)

 

 

(1,313

)

 

 

(2,206

)

 

 

(1,311

)

 

 

(7,514

)

 

 

(4,412

)

 

 

Real estate - construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leases and other loans(1)

 

(1,096

)

 

 

(1,396

)

 

 

(1,165

)

 

 

(723

)

 

 

(505

)

 

 

(4,380

)

 

 

(2,131

)

 

 

Total loans charged off

 

(10,232

)

 

 

(7,279

)

 

 

(4,787

)

 

 

(16,903

)

 

 

(14,230

)

 

 

(39,201

)

 

 

(21,472

)

 

Recoveries of loans previously charged off:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

 

160

 

 

 

101

 

 

 

29

 

 

 

786

 

 

 

183

 

 

 

1,076

 

 

 

3,860

 

 

 

Commercial and industrial

 

779

 

 

 

620

 

 

 

988

 

 

 

1,086

 

 

 

961

 

 

 

3,473

 

 

 

5,893

 

 

 

Real estate - residential mortgage

 

278

 

 

 

37

 

 

 

58

 

 

 

48

 

 

 

10

 

 

 

421

 

 

 

425

 

 

 

Consumer and home equity

 

555

 

 

 

1,023

 

 

 

959

 

 

 

661

 

 

 

683

 

 

 

3,198

 

 

 

2,581

 

 

 

Real estate - construction

 

87

 

 

 

 

 

 

569

 

 

 

202

 

 

 

530

 

 

 

858

 

 

 

574

 

 

 

Leases and other loans(1)

 

374

 

 

 

400

 

 

 

213

 

 

 

116

 

 

 

132

 

 

 

1,103

 

 

 

759

 

 

 

Recoveries of loans previously charged off

 

2,233

 

 

 

2,181

 

 

 

2,816

 

 

 

2,899

 

 

 

2,499

 

 

 

10,129

 

 

 

14,092

 

 

Net loans (charged off) recovered

 

(7,999

)

 

 

(5,098

)

 

 

(1,971

)

 

 

(14,004

)

 

 

(11,731

)

 

 

(29,072

)

 

 

(7,380

)

 

Provision for credit losses

 

8,664

 

 

 

10,395

 

 

 

10,718

 

 

 

23,333

 

 

 

14,259

 

 

 

53,110

 

 

 

18,656

 

 

Balance at end of period

$

293,404

 

 

$

292,739

 

 

$

287,442

 

 

$

278,695

 

 

$

269,366

 

 

$

293,404

 

 

$

269,366

 

 

Net charge-offs (recoveries) to average loans

 

0.15

%

 

 

0.10

%

 

 

0.04

%

 

 

0.27

%

 

 

0.23

%

 

 

0.14

%

 

 

0.04

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses related to OBS Credit Exposures

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

$

1,144

 

 

$

(458

)

 

$

(971

)

 

$

1,211

 

 

$

254

 

 

$

926

 

 

$

1,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

$

121,620

 

 

$

113,022

 

 

$

123,280

 

 

$

134,303

 

 

$

144,443

 

 

 

 

 

 

 

Loans 90 days past due and accruing

 

31,721

 

 

 

27,962

 

 

 

24,415

 

 

 

30,336

 

 

 

27,463

 

 

 

 

 

 

 

Total non-performing loans

 

153,341

 

 

 

140,984

 

 

 

147,695

 

 

 

164,639

 

 

 

171,906

 

 

 

 

 

 

 

Other real estate owned

 

896

 

 

 

2,549

 

 

 

3,881

 

 

 

3,304

 

 

 

5,790

 

 

 

 

 

 

 

Total non-performing assets

$

154,237

 

 

$

143,533

 

 

$

151,576

 

 

$

167,943

 

 

$

177,696

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING LOANS, BY TYPE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

46,527

 

 

$

44,058

 

 

$

55,048

 

 

$

61,322

 

 

$

72,634

 

 

 

 

 

 

 

Commercial and industrial

 

41,020

 

 

 

33,365

 

 

 

30,588

 

 

 

33,555

 

 

 

28,288

 

 

 

 

 

 

 

Real estate - residential mortgage

 

42,029

 

 

 

40,560

 

 

 

39,157

 

 

 

46,576

 

 

 

46,509

 

 

 

 

 

 

 

Consumer and home equity

 

10,878

 

 

 

11,580

 

 

 

10,469

 

 

 

8,983

 

 

 

9,800

 

 

 

 

 

 

 

Real estate - construction

 

2,876

 

 

 

677

 

 

 

1,099

 

 

 

1,509

 

 

 

1,368

 

 

 

 

 

 

 

Leases and other loans(1)

 

10,011

 

 

 

10,744

 

 

 

11,334

 

 

 

12,694

 

 

 

13,307

 

 

 

 

 

 

 

Total non-performing loans

$

153,341

 

 

$

140,984

 

 

$

147,695

 

 

$

164,639

 

 

$

171,906

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

 

 

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

 

 

 

 

 

2023

 

2023

 

2023

 

2023

 

2022

Operating net income available to common shareholders

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

61,701

 

 

$

69,535

 

 

$

77,045

 

 

$

65,752

 

 

$

79,271

 

Plus: Core deposit intangible amortization

 

 

441

 

 

 

441

 

 

 

912

 

 

 

514

 

 

 

514

 

Plus: Merger-related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,894

 

Plus: Interest rate derivative transition valuation(1)

 

 

(1,102

)

 

 

2,958

 

 

 

 

 

 

 

 

 

 

Plus: FDIC special assessment

 

 

6,494

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus: FultonFirst initiative

 

 

3,197

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Tax impact of adjustments

 

 

(1,896

)

 

 

(714

)

 

 

(192

)

 

 

(108

)

 

 

(506

)

Operating net income available to common shareholders (numerator)

 

$

68,835

 

 

$

72,220

 

 

$

77,765

 

 

$

66,158

 

 

$

81,173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (diluted) (denominator)

 

 

165,650

 

 

 

166,023

 

 

 

167,191

 

 

 

168,401

 

 

 

169,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.42

 

 

$

0.43

 

 

$

0.47

 

 

$

0.39

 

 

$

0.48