Skip to main content

Fulton Financial Corporation Announces First Quarter 2024 Results

Fulton Financial Corporation (NASDAQ: FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $59.4 million, or $0.36 per diluted share, for the first quarter of 2024, a decrease of $2.3 million, or 3.8%, in comparison to the fourth quarter of 2023. Operating net income available to common shareholders for the three months ended March 31, 2024 was $65.4 million, or $0.40 per diluted share(1), a decrease of $3.5 million, or 5.0% in comparison to the fourth quarter of 2023.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240416112442/en/

“We are pleased with our first quarter results, which are a good start to the year; operating earnings were solid, deposit growth outpaced loan growth during the quarter, net interest margin was in line with our expectations, and asset quality remained stable,” said Curtis J. Myers, Chairman and CEO of Fulton Financial Corporation. “We are focused and making progress on our strategic initiatives.”

Net Interest Income and Balance Sheet

Net interest income for the first quarter of 2024 was $206.9 million, a decrease of $5.1 million in comparison to the fourth quarter of 2023, due to slight decreases in both average interest-earning assets and the net interest margin.

Total average interest-earning assets for the first quarter of 2024 were $25.6 billion, a decrease of $41.0 million from the fourth quarter of 2023 primarily driven by a decrease in average investment securities and average other interest-earning assets of $137.0 million and $18.3 million, respectively, partially offset by an increase in average net loans of $114.3 million.

Total average interest-bearing liabilities increased $347.9 million to $18.9 billion in the first quarter of 2024 in comparison to $18.6 billion in the fourth quarter of 2023. The increase in average interest-bearing liabilities was driven by an increase in the average balance of total interest-bearing deposits and the average balance of borrowings and other interest-bearing liabilities of $281.2 million and $66.6 million, respectively.

(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 net interest margin for the first quarter of 2024 decreased four basis points to 3.32% in comparison to 3.36% in the fourth quarter of 2023. The decrease 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 and a lower rate on average borrowings and other interest-bearing liabilities.

A seven basis point increase in the yield on average net loans and an increase in the average balance of net loans of $114.3 million in the first quarter of 2024 drove an increase in interest income of $1.5 million to $339.7 million in comparison to $338.1 million in the fourth quarter of 2023.

Interest expense on interest-bearing liabilities for the first quarter of 2024 increased by $6.6 million to $132.7 million in comparison to $126.1 million in the fourth quarter of 2023. The linked-quarter increase in interest expense in the first quarter of 2024 was primarily due to an increase in the rate on average interest-bearing deposits of 16 basis points, a decline of $379.0 million in the average balance of noninterest-bearing deposits and an increase in the average balance of interest-bearing deposits of $281.2 million in comparison to the fourth quarter of 2023, partially offset by a decrease in the rate on borrowings and other interest-bearing liabilities of 12 basis points.

For the first quarter of 2024, net interest income was $206.9 million, a decrease of $8.7 million, or 4.0%, in comparison to the first quarter of 2023. Interest income for the first quarter of 2024 increased by $49.8 million to $339.7 million in comparison to $289.8 million in the first quarter of 2023, primarily driven by rising interest rates resulting in an increase in interest income from net loans of $50.6 million.

Total average interest-earning assets for the first quarter of 2024 increased by $357.0 million from the first quarter of 2023. Average net loans for the first quarter of 2024 were $21.4 billion, an increase of $0.9 billion from the same period in 2023. Compared to the first quarter of 2023, average investment securities decreased $305.9 million and average other interest-earning assets decreased $244.1 million in the first quarter of 2024.

Total average interest-bearing liabilities for the first quarter of 2024 increased $1.9 billion to $18.9 billion in comparison to $17.0 billion in the first quarter of 2023, driven by an increase in the average balance of total interest-bearing deposits of $2.4 billion, partially offset by a decrease in the average balance of borrowings and other interest-bearing liabilities of $0.5 billion.

Increases in the average balance of net loans of $0.9 billion and yields on net loans of 69 basis points in the first quarter of 2024 compared to the first quarter of 2023 each contributed to the increase in interest income.

Interest expense on interest-bearing liabilities for the first quarter of 2024 increased by $58.5 million to $132.7 million in comparison to $74.2 million in the first quarter of 2023, primarily driven by rising interest rates resulting in an increase to interest expense from interest-bearing deposits of $62.0 million. A decrease in the average balance of noninterest-bearing deposits of $1.6 billion and an increase in the average balance of interest-bearing deposits of $2.4 billion, in the first quarter of 2024 in comparison to the first quarter of 2023 also contributed to the increase in interest expense.

Asset Quality

The provision for credit losses was $10.9 million in the first quarter of 2024 compared to $9.8 million in the fourth quarter of 2023 and $24.5 million in the first quarter of 2023. The provision for credit losses of $10.9 million recorded in the first quarter of 2024 was primarily due to net charge-offs of $8.6 million and loan growth.

Non-performing assets were $156.4 million, or 0.57% of total assets, at March 31, 2024, in comparison to $154.2 million, or 0.56% of total assets, at December 31, 2023, and $167.9 million, or 0.62% of total assets, at March 31, 2023.

Net charge-offs for the first quarter of 2024 were 0.16% of total average loans in comparison to 0.15% and 0.27% in the fourth quarter of 2023 and the first quarter of 2023, respectively.

Non-interest Income

Non-interest income before investment securities gains (losses) in the first quarter of 2024 was $57.1 million, a decrease of $3.0 million, or 5.0%, from the fourth quarter of 2023. The decrease in non-interest income was due to a $2.0 million decrease in commercial customer interest rate swap fee income, reflected in capital markets, a $2.2 million decrease in other non-interest income (including a $0.9 million decrease in income from equity method investments and a $1.0 million 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")). These decreases were partially offset by increases in wealth management revenues due to an increase in assets under management and mortgage banking income due to higher loan sales volumes and higher spreads.

Compared to the first quarter of 2023, non-interest income before investment securities gains (losses) increased $5.4 million, or 10.5%, from $51.7 million. The increase in non-interest income was primarily due to increases of $2.1 million in wealth management revenues due to an increase in assets under management, $1.3 million in commercial banking income, $1.1 million in mortgage banking income and $0.5 million in consumer banking income. The increase in commercial banking income was primarily due to increases of $0.8 million in cash management fee income and $0.3 million in gains on sale from Small Business Administration loans, reflected in other commercial banking income. The increase in mortgage banking income was driven by higher loan sale volumes and higher spreads.

Non-interest Expense

Non-interest expense was $177.6 million in the first quarter of 2024, a decrease of $3.0 million, or 1.6%, compared to $180.6 million in the fourth quarter of 2023. The decrease was primarily due to a $5.0 million decrease in FDIC insurance expense, which included special assessment charges of $1.0 million in the first quarter of 2024 and $6.5 million in the fourth quarter of 2023, assessed to recover the loss to the Deposit Insurance Fund in connection with the closures of certain banks in 2023. The decrease was partially offset by an increase in FultonFirst implementation costs and loss on asset disposals of $3.1 million. The FultonFirst implementation costs and loss on asset disposals of $6.3 million in the first quarter of 2024 included a $3.6 million loss on disposal of assets, reflected in other non-interest expense, $2.5 million of consulting service expense, included in other outside services, and $0.2 million of severance expense, reflected in salaries and employee benefits expense. The FultonFirst implementation costs and loss on asset disposals of $3.2 million in the fourth quarter of 2023 included $2.6 million of consulting services, reflected in other outside services, and $0.6 million of severance expense, included in salaries and employee benefits expense.

Excluding FultonFirst implementation costs and loss on asset disposals, and FDIC expense noted above in the first quarter of 2024 and the fourth quarter of 2023, non-interest expense decreased $0.5 million, or 0.3%, compared to the fourth quarter of 2023, largely due to decreases in marketing expense of $1.6 million and salaries and employee benefits expense of $1.4 million, partially offset by increases in snow removal costs of $1.1 million, included in net occupancy expense, $0.7 million in data processing and software expense and a debt extinguishment gain of $0.7 million recorded in the fourth quarter of 2023. The $1.6 million decrease in marketing expense was the result of higher costs incurred in the fourth quarter of 2023 related to a targeted customer deposit acquisition program and brand marketing campaigns in growth markets. The $1.4 million decrease in salaries and benefits expense was primarily due to a decrease in healthcare costs and variable incentive expenses, partially offset by an increase in payroll taxes due to the reset of payroll tax caps.

Compared to the first quarter of 2023, excluding the FultonFirst implementation costs and loss on asset disposals of $6.3 million discussed above, non-interest expense increased $11.7 million, or 7.3%. The increase was primarily due to increases of $6.0 million in salaries and employee benefits expense, $1.9 million in data processing and software expense primarily due to technology investments made in 2023, $1.7 million in net occupancy expense driven by snow removal costs, $1.3 million in FDIC insurance, which includes the $1.0 million special assessment charge noted above, and $0.7 million in other outside services expense. The $6.0 million increase in salaries and benefits expense was primarily due to merit increases and healthcare costs.

Income Tax Expense

For the first quarter of 2024 the effective tax rate was 18.0% in comparison to 18.5% for the full-year of 2023.

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, 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 and shares data)

 

 

 

 

 

 

 

 

Three months ended

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

Ending Balances

 

 

 

 

 

 

 

 

 

 

Investment securities

$

3,783,392

 

 

$

3,666,274

 

 

$

3,698,601

 

 

$

3,867,334

 

 

$

3,950,101

 

 

Net loans

 

21,444,483

 

 

 

21,351,094

 

 

 

21,177,508

 

 

 

21,044,685

 

 

 

20,670,188

 

 

Total assets

 

27,642,957

 

 

 

27,571,915

 

 

 

27,375,177

 

 

 

27,403,163

 

 

 

27,112,176

 

 

Deposits

 

21,741,950

 

 

 

21,537,623

 

 

 

21,421,589

 

 

 

21,206,540

 

 

 

21,316,584

 

 

Shareholders' equity

 

2,757,679

 

 

 

2,760,139

 

 

 

2,566,693

 

 

 

2,642,152

 

 

 

2,618,998

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances

 

 

 

 

 

 

 

 

 

 

Investment securities

 

3,672,844

 

 

 

3,665,261

 

 

 

3,834,824

 

 

 

3,916,130

 

 

 

3,964,615

 

 

Net loans

 

21,370,033

 

 

 

21,255,779

 

 

 

21,121,277

 

 

 

20,866,235

 

 

 

20,463,096

 

 

Total assets

 

27,427,626

 

 

 

27,397,671

 

 

 

27,377,836

 

 

 

27,235,567

 

 

 

26,900,653

 

 

Deposits

 

21,378,754

 

 

 

21,476,548

 

 

 

21,357,295

 

 

 

21,207,143

 

 

 

20,574,323

 

 

Shareholders' equity

 

2,766,945

 

 

 

2,618,024

 

 

 

2,645,977

 

 

 

2,647,464

 

 

 

2,613,316

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement

 

 

 

 

 

 

 

 

 

 

Net interest income

 

206,937

 

 

 

212,006

 

 

 

213,842

 

 

 

212,852

 

 

 

215,587

 

 

Provision for credit losses

 

10,925

 

 

 

9,808

 

 

 

9,937

 

 

 

9,747

 

 

 

24,544

 

 

Non-interest income

 

57,140

 

 

 

59,378

 

 

 

55,961

 

 

 

60,585

 

 

 

51,753

 

 

Non-interest expense

 

177,600

 

 

 

180,552

 

 

 

171,020

 

 

 

168,018

 

 

 

159,616

 

 

Income before taxes

 

75,552

 

 

 

81,024

 

 

 

88,846

 

 

 

95,672

 

 

 

83,180

 

 

Net income available to common shareholders

 

59,379

 

 

 

61,701

 

 

 

69,535

 

 

 

77,045

 

 

 

65,752

 

 

Pre-provision net revenue(1)

 

94,184

 

 

 

100,050

 

 

 

102,342

 

 

 

106,495

 

 

 

108,375

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (basic)

$

0.36

 

 

$

0.38

 

 

$

0.42

 

 

$

0.46

 

 

$

0.39

 

 

Net income available to common shareholders (diluted)

$

0.36

 

 

$

0.37

 

 

$

0.42

 

 

$

0.46

 

 

$

0.39

 

 

Operating net income available to common shareholders(1)

$

0.40

 

 

$

0.42

 

 

$

0.43

 

 

$

0.47

 

 

$

0.39

 

 

Cash dividends

$

0.17

 

 

$

0.17

 

 

$

0.16

 

 

$

0.16

 

 

$

0.15

 

 

Common shareholders' equity

$

15.82

 

 

$

15.67

 

 

$

14.47

 

 

$

14.75

 

 

$

14.67

 

 

Common shareholders' equity (tangible)(1)

$

12.37

 

 

$

12.25

 

 

$

11.05

 

 

$

11.36

 

 

$

11.26

 

 

Weighted average shares (basic)

 

162,706

 

 

 

163,975

 

 

 

164,566

 

 

 

165,854

 

 

 

166,605

 

 

Weighted average shares (diluted)

 

164,520

 

 

 

165,650

 

 

 

166,023

 

 

 

167,191

 

 

 

168,401

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

Net charge-offs to average loans

 

0.16

%

 

 

0.15

%

 

 

0.10

%

 

 

0.04

%

 

 

0.27

%

 

Non-performing loans to total net loans

 

0.73

%

 

 

0.72

%

 

 

0.67

%

 

 

0.70

%

 

 

0.80

%

 

Non-performing assets to total assets

 

0.57

%

 

 

0.56

%

 

 

0.52

%

 

 

0.55

%

 

 

0.62

%

 

ACL - loans(1) to total loans

 

1.39

%

 

 

1.37

%

 

 

1.38

%

 

 

1.37

%

 

 

1.35

%

 

ACL - loans(1) to non-performing loans

 

191

%

 

 

191

%

 

 

208

%

 

 

195

%

 

 

169

%

 

 

 

 

 

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

0.91

%

 

 

0.93

%

 

 

1.04

%

 

 

1.17

%

 

 

1.03

%

 

Operating return on average assets(2)

 

1.00

%

 

 

1.03

%

 

 

1.08

%

 

 

1.18

%

 

 

1.04

%

 

Return on average common shareholders' equity

 

9.28

%

 

 

10.09

%

 

 

11.25

%

 

 

12.59

%

 

 

11.02

%

 

Operating return on average common shareholders' equity (tangible)(2)

 

13.08

%

 

 

14.68

%

 

 

15.17

%

 

 

16.52

%

 

 

14.46

%

 

Net interest margin

 

3.32

%

 

 

3.36

%

 

 

3.40

%

 

 

3.40

%

 

 

3.53

%

 

Efficiency ratio(2)

 

63.2

%

 

 

62.0

%

 

 

61.5

%

 

 

60.1

%

 

 

58.5

%

 

Non-interest expense to total average assets

 

2.60

%

 

 

2.61

%

 

 

2.48

%

 

 

2.47

%

 

 

2.41

%

 

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

 

2.49

%

 

 

2.47

%

 

 

2.47

%

 

 

2.46

%

 

 

2.40

%

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios(3)

 

 

 

 

 

 

 

 

 

 

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

 

7.4

%

 

 

7.4

%

 

 

6.8

%

 

 

7.0

%

 

 

7.0

%

 

Tier 1 leverage ratio

 

9.4

%

 

 

9.5

%

 

 

9.4

%

 

 

9.3

%

 

 

9.2

%

 

Common equity Tier 1 capital ratio

 

10.2

%

 

 

10.3

%

 

 

10.3

%

 

 

10.1

%

 

 

9.8

%

 

Tier 1 risk-based capital ratio

 

11.0

%

 

 

11.2

%

 

 

11.1

%

 

 

11.0

%

 

 

10.6

%

 

Total risk-based capital ratio

 

13.9

%

 

 

14.0

%

 

 

14.0

%

 

 

13.8

%

 

 

13.4

%

 

 

 

 

 

 

 

 

 

 

 

 

(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 March 31, 2024 are preliminary estimates and prior periods are actual.

 

 

FULTON FINANCIAL CORPORATION

 

 

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

$

247,581

 

 

$

300,343

 

 

$

304,042

 

 

$

123,779

 

 

$

129,003

 

Other interest-earning assets

 

231,389

 

 

 

373,772

 

 

 

222,781

 

 

 

505,141

 

 

 

545,355

 

Loans held for sale

 

10,624

 

 

 

15,158

 

 

 

20,368

 

 

 

14,673

 

 

 

6,507

 

Investment securities

 

3,783,392

 

 

 

3,666,274

 

 

 

3,698,601

 

 

 

3,867,334

 

 

 

3,950,101

 

Net loans

 

21,444,483

 

 

 

21,351,094

 

 

 

21,177,508

 

 

 

21,044,685

 

 

 

20,670,188

 

Less: ACL - loans(1)

 

(297,888

)

 

 

(293,404

)

 

 

(292,739

)

 

 

(287,442

)

 

 

(278,695

)

Loans, net

 

21,146,595

 

 

 

21,057,690

 

 

 

20,884,769

 

 

 

20,757,243

 

 

 

20,391,493

 

Net premises and equipment

 

213,541

 

 

 

222,881

 

 

 

215,626

 

 

 

216,322

 

 

 

216,059

 

Accrued interest receivable

 

107,089

 

 

 

107,972

 

 

 

101,624

 

 

 

96,991

 

 

 

90,267

 

Goodwill and intangible assets

 

560,114

 

 

 

560,687

 

 

 

561,284

 

 

 

561,885

 

 

 

563,502

 

Other assets

 

1,342,632

 

 

 

1,267,138

 

 

 

1,366,082

 

 

 

1,259,795

 

 

 

1,219,889

 

Total Assets

$

27,642,957

 

 

$

27,571,915

 

 

$

27,375,177

 

 

$

27,403,163

 

 

$

27,112,176

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Deposits

$

21,741,950

 

 

$

21,537,623

 

 

$

21,421,589

 

 

$

21,206,540

 

 

$

21,316,584

 

Borrowings

 

2,296,040

 

 

 

2,487,526

 

 

 

2,370,112

 

 

 

2,719,114

 

 

 

2,446,770

 

Other liabilities

 

847,288

 

 

 

786,627

 

 

 

1,016,783

 

 

 

835,357

 

 

 

729,824

 

Total Liabilities

 

24,885,278

 

 

 

24,811,776

 

 

 

24,808,484

 

 

 

24,761,011

 

 

 

24,493,178

 

Shareholders' equity

 

2,757,679

 

 

 

2,760,139

 

 

 

2,566,693

 

 

 

2,642,152

 

 

 

2,618,998

 

Total Liabilities and Shareholders' Equity

$

27,642,957

 

 

$

27,571,915

 

 

$

27,375,177

 

 

$

27,403,163

 

 

$

27,112,176

 

 

 

 

 

 

 

 

 

 

 

LOANS, DEPOSITS AND BORROWINGS DETAIL:

 

 

 

 

 

 

Loans, by type:

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

8,252,117

 

 

$

8,127,728

 

 

$

8,106,300

 

 

$

7,846,861

 

 

$

7,746,920

 

Commercial and industrial

 

4,467,589

 

 

 

4,545,552

 

 

 

4,577,334

 

 

 

4,599,759

 

 

 

4,596,096

 

Real estate - residential mortgage

 

5,395,720

 

 

 

5,325,923

 

 

 

5,279,681

 

 

 

5,147,262

 

 

 

4,880,919

 

Real estate - home equity

 

1,040,335

 

 

 

1,047,184

 

 

 

1,045,438

 

 

 

1,061,891

 

 

 

1,074,712

 

Real estate - construction

 

1,249,199

 

 

 

1,239,075

 

 

 

1,078,263

 

 

 

1,308,564

 

 

 

1,326,754

 

Consumer

 

698,421

 

 

 

729,318

 

 

 

743,976

 

 

 

763,530

 

 

 

730,775

 

Leases and other loans(2)

 

341,102

 

 

 

336,314

 

 

 

346,516

 

 

 

316,818

 

 

 

314,012

 

Total Net Loans

$

21,444,483

 

 

$

21,351,094

 

 

$

21,177,508

 

 

$

21,044,685

 

 

$

20,670,188

 

Deposits, by type:

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

5,086,514

 

 

$

5,314,094

 

 

$

5,575,374

 

 

$

5,865,855

 

 

$

6,403,484

 

Interest-bearing demand

 

5,521,017

 

 

 

5,722,695

 

 

 

5,757,487

 

 

 

5,543,320

 

 

 

5,478,237

 

Savings

 

6,846,038

 

 

 

6,616,901

 

 

 

6,707,729

 

 

 

6,646,448

 

 

 

6,579,806

 

Total demand and savings

 

17,453,569

 

 

 

17,653,690

 

 

 

18,040,590

 

 

 

18,055,623

 

 

 

18,461,527

 

Brokered

 

1,152,427

 

 

 

1,144,692

 

 

 

941,059

 

 

 

949,259

 

 

 

960,919

 

Time

 

3,135,954

 

 

 

2,739,241

 

 

 

2,439,940

 

 

 

2,201,658

 

 

 

1,894,138

 

Total Deposits

$

21,741,950

 

 

$

21,537,623

 

 

$

21,421,589

 

 

$

21,206,540

 

 

$

21,316,584

 

Borrowings, by type:

 

 

 

 

 

 

 

 

Federal funds purchased

$

 

 

$

240,000

 

 

$

544,000

 

 

$

555,000

 

 

$

525,000

 

Federal Home Loan Bank advances

 

900,000

 

 

 

1,100,000

 

 

 

730,000

 

 

 

1,165,000

 

 

 

747,000

 

Senior debt and subordinated debt

 

535,566

 

 

 

535,384

 

 

 

540,174

 

 

 

539,994

 

 

 

539,814

 

Other borrowings

 

860,474

 

 

 

612,142

 

 

 

555,938

 

 

 

459,120

 

 

 

634,956

 

Total Borrowings

$

2,296,040

 

 

$

2,487,526

 

 

$

2,370,112

 

 

$

2,719,114

 

 

$

2,446,770

 

 

 

 

 

 

 

 

 

 

 

(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 and share data)

 

 

 

Three months ended

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

Net Interest Income:

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

339,666

 

 

$

338,134

 

 

$

330,371

 

 

$

314,912

 

 

$

289,820

 

 

Interest expense

 

 

132,729

 

 

 

126,128

 

 

 

116,529

 

 

 

102,060

 

 

 

74,233

 

 

Net Interest Income

 

 

206,937

 

 

 

212,006

 

 

 

213,842

 

 

 

212,852

 

 

 

215,587

 

 

Provision for credit losses

 

 

10,925

 

 

 

9,808

 

 

 

9,937

 

 

 

9,747

 

 

 

24,544

 

 

Net Interest Income after Provision

 

 

196,012

 

 

 

202,198

 

 

 

203,905

 

 

 

203,105

 

 

 

191,043

 

 

Non-Interest Income:

 

 

 

 

 

 

 

 

 

 

 

Wealth management

 

 

20,155

 

 

 

19,388

 

 

 

19,413

 

 

 

18,678

 

 

 

18,062

 

 

Commercial banking:

 

 

 

 

 

 

 

 

 

 

 

Merchant and card

 

 

6,808

 

 

 

7,045

 

 

 

7,626

 

 

 

7,700

 

 

 

6,834

 

 

Cash management

 

 

6,305

 

 

 

6,030

 

 

 

5,960

 

 

 

5,835

 

 

 

5,515

 

 

Capital markets

 

 

2,341

 

 

 

4,258

 

 

 

2,960

 

 

 

6,092

 

 

 

2,344

 

 

Other commercial banking

 

 

3,375

 

 

 

3,447

 

 

 

3,176

 

 

 

3,518

 

 

 

2,820

 

 

Total commercial banking

 

 

18,829

 

 

 

20,780

 

 

 

19,722

 

 

 

23,145

 

 

 

17,513

 

 

Consumer banking:

 

 

 

 

 

 

 

 

 

 

 

Card

 

 

6,628

 

 

 

6,739

 

 

 

6,770

 

 

 

6,592

 

 

 

6,243

 

 

Overdraft

 

 

2,786

 

 

 

2,991

 

 

 

2,996

 

 

 

2,696

 

 

 

2,733

 

 

Other consumer banking

 

 

2,254

 

 

 

2,357

 

 

 

2,407

 

 

 

2,432

 

 

 

2,241

 

 

Total consumer banking

 

 

11,668

 

 

 

12,087

 

 

 

12,173

 

 

 

11,720

 

 

 

11,217

 

 

Mortgage banking

 

 

3,090

 

 

 

2,288

 

 

 

3,190

 

 

 

2,940

 

 

 

1,970

 

 

Other

 

 

3,398

 

 

 

5,587

 

 

 

1,463

 

 

 

4,106

 

 

 

2,968

 

 

Non-interest income before investment securities gains (losses)

 

 

57,140

 

 

 

60,130

 

 

 

55,961

 

 

 

60,589

 

 

 

51,730

 

 

Investment securities gains (losses), net

 

 

 

 

 

(752

)

 

 

 

 

 

(4

)

 

 

23

 

 

Total Non-Interest Income

 

 

57,140

 

 

 

59,378

 

 

 

55,961

 

 

 

60,585

 

 

 

51,753

 

 

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

95,481

 

 

 

97,275

 

 

 

96,757

 

 

 

94,102

 

 

 

89,283

 

 

Data processing and software

 

 

17,661

 

 

 

16,985

 

 

 

16,914

 

 

 

16,776

 

 

 

15,796

 

 

Net occupancy

 

 

16,149

 

 

 

14,647

 

 

 

14,561

 

 

 

14,374

 

 

 

14,438

 

 

Other outside services

 

 

13,283

 

 

 

14,670

 

 

 

12,094

 

 

 

10,834

 

 

 

10,126

 

 

FDIC insurance

 

 

6,104

 

 

 

11,138

 

 

 

4,738

 

 

 

4,895

 

 

 

4,795

 

 

Equipment

 

 

4,040

 

 

 

3,995

 

 

 

3,475

 

 

 

3,530

 

 

 

3,389

 

 

Professional fees

 

 

2,088

 

 

 

2,302

 

 

 

1,869

 

 

 

1,829

 

 

 

2,392

 

 

Marketing

 

 

1,912

 

 

 

3,550

 

 

 

1,913

 

 

 

1,655

 

 

 

1,886

 

 

Intangible amortization

 

 

573

 

 

 

597

 

 

 

601

 

 

 

1,072

 

 

 

674

 

 

Other

 

 

20,309

 

 

 

15,393

 

 

 

18,098

 

 

 

18,951

 

 

 

16,837

 

 

Total Non-Interest Expense

 

 

177,600

 

 

 

180,552

 

 

 

171,020

 

 

 

168,018

 

 

 

159,616

 

 

Income Before Income Taxes

 

 

75,552

 

 

 

81,024

 

 

 

88,846

 

 

 

95,672

 

 

 

83,180

 

 

Income tax expense

 

 

13,611

 

 

 

16,761

 

 

 

16,749

 

 

 

16,065

 

 

 

14,866

 

 

Net Income

 

 

61,941

 

 

 

64,263

 

 

 

72,097

 

 

 

79,607

 

 

 

68,314

 

 

Preferred stock dividends

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

Net Income Available to Common Shareholders

 

$

59,379

 

 

$

61,701

 

 

$

69,535

 

 

$

77,045

 

 

$

65,752

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (basic)

 

$

0.36

 

 

$

0.38

 

 

$

0.42

 

 

$

0.46

 

 

$

0.39

 

 

Net income available to common shareholders (diluted)

 

$

0.36

 

 

$

0.37

 

 

$

0.42

 

 

$

0.46

 

 

$

0.39

 

 

Cash dividends

 

$

0.17

 

 

$

0.17

 

 

$

0.16

 

 

$

0.16

 

 

$

0.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

 

162,706

 

 

 

163,975

 

 

 

164,566

 

 

 

165,854

 

 

 

166,605

 

 

Weighted average shares (diluted)

 

 

164,520

 

 

 

165,650

 

 

 

166,023

 

 

 

167,191

 

 

 

168,401

 

 

 

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

Three months ended

 

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

 

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans(2)

$

21,370,033

 

 

$

313,882

 

 

5.90

%

 

$

21,255,779

 

 

$

311,992

 

 

5.83

%

 

$

20,463,096

 

 

$

263,065

 

 

5.21

%

 

Investment securities(3)

 

3,983,753

 

 

 

27,048

 

 

2.71

%

 

 

4,120,750

 

 

 

27,227

 

 

2.64

%

 

 

4,289,643

 

 

 

27,522

 

 

2.60

%

 

Other interest-earning assets

 

249,079

 

 

 

3,328

 

 

5.36

%

 

 

267,329

 

 

 

3,464

 

 

5.17

%

 

 

493,130

 

 

 

3,648

 

 

3.00

%

 

Total Interest-Earning Assets

 

25,602,865

 

 

 

344,258

 

 

5.40

%

 

 

25,643,858

 

 

 

342,683

 

 

5.31

%

 

 

25,245,869

 

 

 

294,235

 

 

4.73

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

282,895

 

 

 

 

 

 

 

282,614

 

 

 

 

 

 

 

141,254

 

 

 

 

 

 

Premises and equipment

 

223,375

 

 

 

 

 

 

 

219,994

 

 

 

 

 

 

 

223,025

 

 

 

 

 

 

Other assets

 

1,614,746

 

 

 

 

 

 

 

1,545,535

 

 

 

 

 

 

 

1,563,806

 

 

 

 

 

 

Less: ACL - loans(4)

 

(296,255

)

 

 

 

 

 

 

(294,330

)

 

 

 

 

 

 

(273,301

)

 

 

 

 

 

Total Assets

$

27,427,626

 

 

 

 

 

 

$

27,397,671

 

 

 

 

 

 

$

26,900,653

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

5,596,725

 

 

$

20,500

 

 

1.47

%

 

$

5,723,169

 

 

$

20,737

 

 

1.44

%

 

$

5,326,566

 

 

$

8,455

 

 

0.64

%

 

Savings deposits

 

6,669,228

 

 

 

38,797

 

 

2.34

%

 

 

6,682,512

 

 

 

38,239

 

 

2.27

%

 

 

6,469,468

 

 

 

20,535

 

 

1.29

%

 

Brokered deposits

 

1,083,382

 

 

 

14,655

 

 

5.44

%

 

 

1,051,369

 

 

 

14,078

 

 

5.31

%

 

 

439,670

 

 

 

5,173

 

 

4.77

%

 

Time deposits

 

2,968,344

 

 

 

29,622

 

 

4.01

%

 

 

2,579,400

 

 

 

23,575

 

 

3.63

%

 

 

1,696,878

 

 

 

7,458

 

 

1.78

%

 

Total Interest-Bearing Deposits

 

16,317,679

 

 

 

103,574

 

 

2.55

%

 

 

16,036,450

 

 

 

96,629

 

 

2.39

%

 

 

13,932,582

 

 

 

41,621

 

 

1.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings and other interest-bearing liabilities

 

2,608,376

 

 

 

29,155

 

 

4.46

%

 

 

2,541,727

 

 

 

29,499

 

 

4.58

%

 

 

3,058,684

 

 

 

32,613

 

 

4.32

%

 

Total Interest-Bearing Liabilities

 

18,926,055

 

 

 

132,729

 

 

2.82

%

 

 

18,578,177

 

 

 

126,128

 

 

2.69

%

 

 

16,991,266

 

 

 

74,234

 

 

1.78

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

5,061,075

 

 

 

 

 

 

 

5,440,098

 

 

 

 

 

 

 

6,641,741

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

673,551

 

 

 

 

 

 

 

761,372

 

 

 

 

 

 

 

654,330

 

 

 

 

 

 

Total Liabilities

 

24,660,681

 

 

 

 

 

 

 

24,779,647

 

 

 

 

 

 

 

24,287,337

 

 

 

 

 

 

Total Deposits

 

21,378,754

 

 

 

 

1.95

%

 

 

21,476,548

 

 

 

 

1.79

%

 

 

20,574,323

 

 

 

 

0.82

%

 

Total interest-bearing liabilities and non-interest bearing deposits

 

23,987,130

 

 

 

 

2.22

%

 

 

24,018,275

 

 

 

 

2.08

%

 

 

23,633,007

 

 

 

 

1.27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

2,766,945

 

 

 

 

 

 

 

2,618,024

 

 

 

 

 

 

 

2,613,316

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

$

27,427,626

 

 

 

 

 

 

$

27,397,671

 

 

 

 

 

 

$

26,900,653

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

211,529

 

 

3.32

%

 

 

 

 

216,555

 

 

3.36

%

 

 

 

 

220,001

 

 

3.53

%

 

Tax equivalent adjustment

 

 

 

(4,592

)

 

 

 

 

 

 

(4,549

)

 

 

 

 

 

 

(4,414

)

 

 

 

Net Interest Income

 

 

$

206,937

 

 

 

 

 

 

$

212,006

 

 

 

 

 

 

$

215,587

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(2) Average balances include non-performing loans.

 

(3) Average balances include amortized historical cost for available for sale ("AFS") securities; the related unrealized holding gains (losses) are included in other assets.

 

(4) ACL - loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities.

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED):

(dollars in thousands)

 

Three months ended

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

2024

 

2023

 

2023

 

2023

 

2023

 

Loans, by type:

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

8,166,018

 

$

8,090,627

 

$

7,912,801

 

$

7,775,436

 

$

7,720,975

 

Commercial and industrial

 

4,517,179

 

 

4,579,441

 

 

4,611,376

 

 

4,629,919

 

 

4,565,923

 

Real estate - residential mortgage

 

5,353,905

 

 

5,303,632

 

 

5,209,105

 

 

5,008,295

 

 

4,790,868

 

Real estate - home equity

 

1,039,321

 

 

1,043,753

 

 

1,045,806

 

 

1,066,615

 

 

1,086,032

 

Real estate - construction

 

1,240,640

 

 

1,153,601

 

 

1,254,577

 

 

1,306,286

 

 

1,276,145

 

Consumer

 

721,523

 

 

746,011

 

 

761,273

 

 

763,407

 

 

721,248

 

Leases and other loans(1)

 

331,447

 

 

338,714

 

 

326,339

 

 

316,277

 

 

301,905

 

Total Net Loans

$

21,370,033

 

$

21,255,779

 

$

21,121,277

 

$

20,866,235

 

$

20,463,096

 

 

 

 

 

 

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

5,061,075

 

$

5,440,098

 

$

5,672,411

 

$

6,021,091

 

$

6,641,741

 

Interest-bearing demand

 

5,596,725

 

 

5,723,169

 

 

5,740,229

 

 

5,535,669

 

 

5,326,566

 

Savings

 

6,669,228

 

 

6,682,512

 

 

6,676,792

 

 

6,632,572

 

 

6,469,468

 

Total demand and savings

 

17,327,028

 

 

17,845,779

 

 

18,089,432

 

 

18,189,332

 

 

18,437,775

 

Brokered

 

1,083,382

 

 

1,051,369

 

 

937,657

 

 

954,773

 

 

439,670

 

Time

 

2,968,344

 

 

2,579,400

 

 

2,330,206

 

 

2,063,038

 

 

1,696,878

 

Total Deposits

$

21,378,754

 

$

21,476,548

 

$

21,357,295

 

$

21,207,143

 

$

20,574,323

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings, by type:

 

 

 

 

 

 

 

 

 

 

Federal funds purchased

$

173,659

 

$

446,707

 

$

634,163

 

$

679,401

 

$

505,142

 

Federal Home Loan Bank advances

 

902,890

 

 

760,087

 

 

793,098

 

 

880,811

 

 

1,261,589

 

Senior debt and subordinated debt

 

535,479

 

 

539,186

 

 

540,086

 

 

539,906

 

 

539,726

 

Other borrowings and other interest-bearing liabilities

 

996,348

 

 

795,747

 

 

723,740

 

 

690,742

 

 

752,227

 

Total Borrowings

$

2,608,376

 

$

2,541,727

 

$

2,691,087

 

$

2,790,860

 

$

3,058,684

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

Allowance for credit losses related to net loans:

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$

293,404

 

 

$

292,739

 

 

$

287,442

 

 

$

278,695

 

 

$

269,366

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off:

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

 

(26

)

 

 

(3,547

)

 

 

(860

)

 

 

(230

)

 

 

(13,362

)

 

Commercial and industrial

 

(7,632

)

 

 

(3,397

)

 

 

(3,220

)

 

 

(2,017

)

 

 

(612

)

 

Real estate - residential mortgage

 

(251

)

 

 

 

 

 

 

 

 

(62

)

 

 

 

 

Consumer and home equity

 

(2,238

)

 

 

(2,192

)

 

 

(1,803

)

 

 

(1,313

)

 

 

(2,206

)

 

Real estate - construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leases and other loans(1)

 

(805

)

 

 

(1,096

)

 

 

(1,396

)

 

 

(1,165

)

 

 

(723

)

 

Total loans charged off

 

(10,952

)

 

 

(10,232

)

 

 

(7,279

)

 

 

(4,787

)

 

 

(16,903

)

 

Recoveries of loans previously charged off:

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

 

152

 

 

 

160

 

 

 

101

 

 

 

29

 

 

 

786

 

 

Commercial and industrial

 

1,248

 

 

 

779

 

 

 

620

 

 

 

988

 

 

 

1,086

 

 

Real estate - residential mortgage

 

116

 

 

 

278

 

 

 

37

 

 

 

58

 

 

 

48

 

 

Consumer and home equity

 

676

 

 

 

555

 

 

 

1,023

 

 

 

959

 

 

 

661

 

 

Real estate - construction

 

 

 

 

87

 

 

 

 

 

 

569

 

 

 

202

 

 

Leases and other loans(1)

 

162

 

 

 

374

 

 

 

400

 

 

 

213

 

 

 

116

 

 

Recoveries of loans previously charged off

 

2,354

 

 

 

2,233

 

 

 

2,181

 

 

 

2,816

 

 

 

2,899

 

 

Net loans charged off

 

(8,598

)

 

 

(7,999

)

 

 

(5,098

)

 

 

(1,971

)

 

 

(14,004

)

 

Provision for credit losses

 

13,082

 

 

 

8,664

 

 

 

10,395

 

 

 

10,718

 

 

 

23,333

 

 

Balance at end of period

$

297,888

 

 

$

293,404

 

 

$

292,739

 

 

$

287,442

 

 

$

278,695

 

 

Net charge-offs to average loans

 

0.16

%

 

 

0.15

%

 

 

0.10

%

 

 

0.04

%

 

 

0.27

%

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses related to OBS Credit Exposures

 

 

 

 

 

 

Provision for credit losses

$

(2,157

)

 

$

1,144

 

 

$

(458

)

 

$

(971

)

 

$

1,211

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING ASSETS:

 

 

 

 

 

 

 

 

 

Non-accrual loans

$

129,628

 

 

$

121,620

 

 

$

113,022

 

 

$

123,280

 

 

$

134,303

 

 

Loans 90 days past due and accruing

 

26,521

 

 

 

31,721

 

 

 

27,962

 

 

 

24,415

 

 

 

30,336

 

 

Total non-performing loans

 

156,149

 

 

 

153,341

 

 

 

140,984

 

 

 

147,695

 

 

 

164,639

 

 

Other real estate owned

 

277

 

 

 

896

 

 

 

2,549

 

 

 

3,881

 

 

 

3,304

 

 

Total non-performing assets

$

156,426

 

 

$

154,237

 

 

$

143,533

 

 

$

151,576

 

 

$

167,943

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING LOANS, BY TYPE:

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

47,891

 

 

$

46,527

 

 

$

44,058

 

 

$

55,048

 

 

$

61,322

 

 

Commercial and industrial

 

44,118

 

 

 

41,020

 

 

 

33,365

 

 

 

30,588

 

 

 

33,555

 

 

Real estate - residential mortgage

 

40,685

 

 

 

42,029

 

 

 

40,560

 

 

 

39,157

 

 

 

46,576

 

 

Consumer and home equity

 

10,172

 

 

 

10,878

 

 

 

11,580

 

 

 

10,469

 

 

 

8,983

 

 

Real estate - construction

 

3,148

 

 

 

2,876

 

 

 

677

 

 

 

1,099

 

 

 

1,509

 

 

Leases and other loans(1)

 

10,135

 

 

 

10,011

 

 

 

10,744

 

 

 

11,334

 

 

 

12,694

 

 

Total non-performing loans

$

156,149

 

 

$

153,341

 

 

$

140,984

 

 

$

147,695

 

 

$

164,639

 

 

 

 

 

 

 

 

 

 

 

(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 and 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

 

 

 

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

 

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

Operating net income available to common shareholders

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

59,379

 

 

$

61,701

 

 

$

69,535

 

 

$

77,045

 

 

$

65,752

 

Plus: Core deposit intangible amortization

 

 

441

 

 

 

441

 

 

 

441

 

 

 

912

 

 

 

514

 

Plus: Interest rate derivative transition valuation(1)

 

 

(151

)

 

 

(1,102

)

 

 

2,958

 

 

 

 

 

 

 

Plus: FDIC special assessment

 

 

956

 

 

 

6,494

 

 

 

 

 

 

 

 

 

 

Plus: FultonFirst implementation and asset disposals

 

 

6,329

 

 

 

3,197

 

 

 

 

 

 

 

 

 

 

Less: Tax impact of adjustments

 

 

(1,591

)

 

 

(1,896

)

 

 

(714

)

 

 

(192

)

 

 

(108

)

Operating net income available to common shareholders (numerator)

 

$

65,363

 

 

$

68,835

 

 

$

72,220

 

 

$

77,765

 

 

$

66,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (diluted) (denominator)

 

 

164,520

 

 

 

165,650

 

 

 

166,023

 

 

 

167,191

 

 

 

168,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.40

 

 

$

0.42

 

 

$

0.43

 

 

$

0.47

 

 

$

0.39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shareholders' equity (tangible), per share

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

$

2,757,679

 

 

$

2,760,139

 

 

$

2,566,693

 

 

$

2,642,152

 

 

$

2,618,998

 

Less: Preferred stock

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

Less: Goodwill and intangible assets

 

 

(560,114

)

 

 

(560,687

)

 

 

(561,284

)

 

 

(561,885

)

 

 

(563,502

)

Tangible common shareholders' equity (numerator)

 

$

2,004,687

 

 

$

2,006,574

 

 

$

1,812,531

 

 

$

1,887,389

 

 

$

1,862,618

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding, end of period (denominator)

 

 

162,087

 

 

 

163,801

 

 

 

164,084

 

 

 

166,097

 

 

 

165,396

 

 

 

 

 

 

 

 

 

 

 

 

Common shareholders' equity (tangible), per share

 

$

12.37

 

 

$

12.25

 

 

$

11.05

 

 

$

11.36

 

 

$

11.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

 

 

 

 

 

 

 

 

Net income

 

$

61,941

 

 

$

64,263

 

 

$

72,097

 

 

$

79,607

 

 

$

68,314

 

Plus: Core deposit intangible amortization

 

 

441

 

 

 

441

 

 

 

441

 

 

 

912

 

 

 

514

 

Plus: Interest rate derivative transition valuation(1)

 

 

(151

)

 

 

(1,102

)

 

 

2,958

 

 

 

 

 

 

 

Plus: FDIC special assessment

 

 

956

 

 

 

6,494

 

 

 

 

 

 

 

 

 

 

Plus: FultonFirst implementation and asset disposals

 

 

6,329

 

 

 

3,197

 

 

 

 

 

 

 

 

 

 

Less: Tax impact of adjustments

 

 

(1,591

)

 

 

(1,896

)

 

 

(714

)

 

 

(192

)

 

 

(108

)

Operating net income (numerator)

 

$

67,925

 

 

$

71,397

 

 

$

74,782

 

 

$

80,327

 

 

$

68,720

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total average assets

 

$

27,427,626

 

 

$

27,397,671

 

 

$

27,377,836

 

 

$

27,235,567

 

 

$

26,900,653

 

Less: Average net core deposit intangible

 

 

(4,666

)

 

 

(5,106

)

 

 

(5,548

)

 

 

(6,417

)

 

 

(6,937

)

Total operating average assets (denominator)

 

$

27,422,960

 

 

$

27,392,565

 

 

$

27,372,288

 

 

$

27,229,150

 

 

$

26,893,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

1.00

%

 

 

1.03

%

 

 

1.08

%

 

 

1.18

%

 

 

1.04

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

 

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

Operating return on average common shareholders' equity (tangible)

 

 

 

 

 

 

Net income available to common shareholders

 

$

59,379

 

 

$

61,701

 

 

$

69,535

 

 

$

77,045

 

 

$

65,752

 

Plus: Intangible amortization

 

 

 

573

 

 

 

597

 

 

 

601

 

 

 

1,072

 

 

 

674

 

Plus: Interest rate derivative transition valuation(1)

 

 

(151

)

 

 

(1,102

)

 

 

2,958

 

 

 

 

 

 

 

Plus: FDIC special assessment

 

 

956

 

 

 

6,494

 

 

 

 

 

 

 

 

 

 

Plus: FultonFirst implementation and asset disposals

 

 

6,329

 

 

 

3,197

 

 

 

 

 

 

 

 

 

 

Less: Tax impact of adjustments

 

 

 

(1,618

)

 

 

(1,929

)

 

 

(747

)

 

 

(225

)

 

 

(142

)

Adjusted net income available to common shareholders (numerator)

 

$

65,468

 

 

$

68,958

 

 

$

72,347

 

 

$

77,892

 

 

$

66,284

 

 

 

 

 

 

 

 

 

 

 

 

Average shareholders' equity

 

$

2,766,945

 

 

$

2,618,024

 

 

$

2,645,977

 

 

$

2,647,464

 

 

$

2,613,316

 

Less: Average preferred stock

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

Less: Average goodwill and intangible assets

 

 

(560,393

)

 

 

(560,977

)

 

 

(561,578

)

 

 

(563,146

)

 

 

(561,744

)

Average tangible common shareholders' equity (denominator)

 

$

2,013,674

 

 

$

1,864,169

 

 

$

1,891,521

 

 

$

1,891,440

 

 

$

1,858,694

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average common shareholders' equity (tangible)

 

 

13.08

%

 

 

14.68

%

 

 

15.17

%

 

 

16.52

%

 

 

14.46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets (TCE Ratio)

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

$

2,757,679

 

 

$

2,760,139

 

 

$

2,566,693

 

 

$

2,642,152

 

 

$

2,618,998

 

Less: Preferred stock

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

Less: Goodwill and intangible assets

 

 

(560,114

)

 

 

(560,687

)

 

 

(561,284

)

 

 

(561,885

)

 

 

(563,502

)

Tangible common shareholders' equity (numerator)

 

$

2,004,687

 

 

$

2,006,574

 

 

$

1,812,531

 

 

$

1,887,389

 

 

$

1,862,618

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

27,642,957

 

 

$

27,571,915

 

 

$

27,375,177

 

 

$

27,403,163

 

 

$

27,112,176

 

Less: Goodwill and intangible assets

 

 

(560,114

)

 

 

(560,687

)

 

 

(561,284

)

 

 

(561,885

)

 

 

(563,502

)

Total tangible assets (denominator)

 

$

27,082,843

 

 

$

27,011,228

 

 

$

26,813,893

 

 

$

26,841,278

 

 

$

26,548,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

 

7.40

%

 

 

7.43

%

 

 

6.76

%

 

 

7.03

%

 

 

7.02

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

$

177,600

 

 

$

180,552

 

 

$

171,020

 

 

$

168,018

 

 

$

159,616

 

Less: FDIC special assessment

 

 

(956

)

 

 

(6,494

)

 

 

 

 

 

 

 

 

 

Less: FultonFirst implementation and asset disposals

 

 

(6,329

)

 

 

(3,197

)

 

 

 

 

 

 

 

 

 

Less: Intangible amortization

 

 

(573

)

 

 

(597

)

 

 

(601

)

 

 

(1,072

)

 

 

(674

)

Less: Debt extinguishment

 

 

 

 

 

720

 

 

 

 

 

 

 

 

 

 

Non-interest expense (numerator)

 

$

169,742

 

 

$

170,984

 

 

$

170,419

 

 

$

166,946

 

 

$

158,942

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

206,937

 

 

$

212,006

 

 

$

213,842

 

 

$

212,852

 

 

$

215,587

 

Tax equivalent adjustment

 

 

4,592

 

 

 

4,549

 

 

 

4,442

 

 

 

4,405

 

 

 

4,414

 

Plus: Total non-interest income

 

 

57,140

 

 

 

59,378

 

 

 

55,961

 

 

 

60,585

 

 

 

51,753

 

Plus: Interest rate derivative transition valuation(1)

 

 

(151

)

 

 

(1,102

)

 

 

2,958

 

 

 

 

 

 

 

Less: Investment securities (gains) losses, net

 

 

 

 

 

752

 

 

 

 

 

 

4

 

 

 

(23

)

Total revenue (denominator)

 

$

268,518

 

 

$

275,583

 

 

$

277,203

 

 

$

277,846

 

 

$

271,731

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

63.2

%

 

 

62.0

%

 

 

61.5

%

 

 

60.1

%

 

 

58.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

 

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

Operating non-interest expense to total average assets

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

$

177,600

 

 

$

180,552

 

 

$

171,020

 

 

$

168,018

 

 

$

159,616

 

Less: Intangible amortization

 

 

(573

)

 

 

(597

)

 

 

(601

)

 

 

(1,072

)

 

 

(674

)

Less: FDIC special assessment

 

 

(956

)

 

 

(6,494

)

 

 

 

 

 

 

 

 

 

Less: FultonFirst implementation and asset disposals