Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income of $59.8 million, or $0.35 per diluted share, for the second quarter of 2019, and net income of $116.4 million, or $0.68 per diluted share, for the six months ended June 30, 2019.
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“Overall, we were pleased with the second quarter results which were driven by strong fee income and continued growth in our consumer business. Our commercial pipeline continues to build, so we are cautiously optimistic about growth in the second half of the year, despite the competitive headwinds,” said E. Philip Wenger, Chairman and CEO. “On the corporate front, our final BSA/AML order was terminated and we consolidated another one of our affiliate banks, which are two important milestones that should help facilitate growth moving forward.”
Net income per diluted share increased 6.1% in comparison to the $0.33 reported for the first quarter of 2019 and increased 75.0% from the $0.20 reported for the second quarter of 2018. The second quarter of 2018 included a credit loss related to a single, large commercial lending relationship (the “Commercial Relationship”) which equated to $0.16 per diluted share.
Net Interest Income and Balance Sheet
Net interest income for the second quarter of 2019 was $164.5 million, a $1.2 million, or 0.8%, increase from the first quarter of 2019. The increase resulted from balance sheet growth and one additional day in the second quarter, partially offset by the impact of a five basis point decrease in net interest margin. The decline in net interest margin resulted from a six basis point increase in the average cost of funds, which outpaced a two basis point increase in the average yield on interest-earning assets.
Total average assets for the second quarter of 2019 were $21.1 billion, an increase of $366.7 million from the first quarter of 2019, with average loans, net of unearned income, increasing $121.7 million, or 0.8%.
Average loans and yields, by type, for the second quarter of 2019 in comparison to the first quarter of 2019 are summarized in the following table:
Three Months Ended | |||||||||||||||||||||
June 30, 2019 | March 31, 2019 | Increase/(Decrease) | |||||||||||||||||||
Balance | Yield (1) | Balance | Yield (1) | $ | % | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
| Average Loans, net of unearned income, by type: | |||||||||||||||||||||
| Real estate - commercial mortgage | $ | 6,424,213 | 4.67 | % | $ | 6,378,145 | 4.69 | % | $ | 46,068 | 0.7 | % | |||||||||
| Commercial - industrial, financial and agricultural | 4,440,860 | 4.73 | % | 4,462,609 | 4.66 | % | (21,749 | ) | (0.5 | %) | |||||||||||
| Real estate - residential mortgage | 2,366,685 | 4.09 | % | 2,276,611 | 4.06 | % | 90,074 | 4.0 | % | ||||||||||||
| Real estate - home equity | 1,404,141 | 5.35 | % | 1,433,574 | 5.33 | % | (29,433 | ) | (2.1 | %) | |||||||||||
| Real estate - construction | 943,080 | 5.29 | % | 930,246 | 4.83 | % | 12,834 | 1.4 | % | ||||||||||||
| Consumer | 445,666 | 4.38 | % | 424,480 | 4.49 | % | 21,186 | 5.0 | % | ||||||||||||
| Leasing | 279,619 | 4.45 | % | 276,949 | 4.40 | % | 2,670 | 1.0 | % | ||||||||||||
| Other | 11,812 | N/A | 11,761 | N/A | 51 | 0.4 | % | ||||||||||||||
| Total Average Loans, net of unearned income | $ | 16,316,076 | 4.69 | % | $ | 16,194,375 | 4.65 | % | $ | 121,701 | 0.8 | % | |||||||||
(1) | Presented on a fully-taxable equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances. | |||||||||||||
Total average liabilities increased $330.5 million, or 1.8%, from the first quarter of 2019, with average deposits increasing $99.8 million, or 0.6%, and short-term borrowings increasing $121.5 million, or 14.8%. Average deposits and interest rates, by type, for the second quarter of 2019 in comparison to the first quarter of 2019 are summarized in the following table:
Three Months Ended | |||||||||||||||||||||
June 30, 2019 | March 31, 2019 | Increase/(Decrease) | |||||||||||||||||||
Balance | Rate | Balance | Rate | $ | % | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
| Average Deposits, by type: | |||||||||||||||||||||
| Noninterest-bearing demand | $ | 4,200,810 | - | % | $ | 4,222,875 | - | % | $ | (22,065 | ) | (0.5 | %) | ||||||||
| Interest-bearing demand | 4,186,280 | 0.78 | % | 4,153,984 | 0.73 | % | 32,296 | 0.8 | % | ||||||||||||
| Savings and money market deposits | 4,925,788 | 0.86 | % | 4,912,856 | 0.82 | % | 12,932 | 0.3 | % | ||||||||||||
| Total average demand and savings | 13,312,878 | 0.56 | % | 13,289,715 | 0.53 | % | 23,163 | 0.2 | % | ||||||||||||
| Brokered deposits | 246,154 | 2.58 | % | 220,115 | 2.55 | % | 26,039 | 11.8 | % | ||||||||||||
| Time deposits | 2,816,424 | 1.74 | % | 2,765,803 | 1.59 | % | 50,621 | 1.8 | % | ||||||||||||
| Total Average Deposits | $ | 16,375,456 | 0.80 | % | $ | 16,275,633 | 0.74 | % | $ | 99,823 | 0.6 | % | |||||||||
Asset Quality
The provision for credit losses for the second quarter of 2019 was $5.0 million, down slightly from $5.1 million for the first quarter of 2019. During the second quarter of 2018, Fulton recorded a $33.1 million provision for credit losses, mainly related to the Commercial Relationship mentioned above.
Non-performing assets were $155.0 million, or 0.73% of total assets, at June 30, 2019, compared to $147.7 million, or 0.70% of total assets, at March 31, 2019 and $134.9 million, or 0.67% of total assets, at June 30, 2018.
Annualized net recoveries for the quarter ended June 30, 2019 were 0.04% of total average loans, compared to net charge-offs of 0.10% and 1.01% for the quarters ended March 31, 2019 and June 30, 2018, respectively. The allowance for credit losses as a percentage of non-performing loans was 120% at June 30, 2019, compared to 123% at March 31, 2019 and 137% at June 30, 2018.
Non-interest Income
Non-interest income in the second quarter of 2019, excluding investment securities gains, was $54.1 million, an increase of $7.5 million, or 16.0%, in comparison to the first quarter of 2019 and an increase of $5.0 million, or 10.3%, compared to the second quarter of 2018. In the second quarter of 2019 in comparison to the first quarter of 2019, increases were realized in all categories, including mortgage banking income, wealth management fees and consumer banking income. Increases in commercial banking income were realized in commercial loan interest rate swap fees, merchant and card income and Small Business Administration income, which is included in other commercial banking income.
Non-interest Expense
Non-interest expense was $144.2 million in the second quarter of 2019, an increase of $6.3 million, or 4.6%, compared to the first quarter of 2019 and an increase of $10.8 million, or 8.1%, compared to the second quarter of 2018. Expenses incurred in the second quarter of 2019 related to charter consolidation activities were $5.1 million, as compared to $1.5 million in the first quarter of 2019, including $2.5 million in outside services expense, $1.6 million in salaries and benefits and approximately $1.0 million in various other expense categories. Increases were also realized in occupancy expense and marketing. These increases were partially offset by a decrease in professional fees.
Income Tax Expense
The effective income tax rate for the second quarter of 2019 was 14.2%, as compared to 15.6% for the first quarter of 2019.
Additional information on Fulton is available on the Internet at www.fult.com.
Safe Harbor Statement
This news release may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," “projects,” the negative of these terms and other comparable terminology. These forward looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results.
Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, they are based on current beliefs, expectations and assumptions regarding the future of the Corporation’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation’s control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2018 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, which have been filed with the Securities and Exchange Commission and are available in the Investor Relations section of the Corporation's website (www.fult.com) and on the Securities and Exchange Commission's website (www.sec.gov).
Non-GAAP Financial Measures
The Corporation uses certain non-GAAP financial measures in this earnings release. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this release.
| FULTON FINANCIAL CORPORATION | ||||||||||||||
| SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||
| in thousands, except per-share data and percentages | ||||||||||||||
Three Months Ended | ||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | ||||||||||
2019 | 2019 | 2018 | 2018 | 2018 | ||||||||||
| Ending Balances | ||||||||||||||
| Investments | $ | 2,853,358 | $ | 2,748,249 | $ | 2,686,973 | $ | 2,635,413 | $ | 2,593,283 | ||||
| Loans, net of unearned income | 16,368,458 | 16,262,633 | 16,165,800 | 15,925,093 | 15,792,969 | |||||||||
| Total assets | 21,308,670 | 20,974,649 | 20,682,152 | 20,364,810 | 20,172,539 | |||||||||
| Deposits | 16,388,895 | 16,377,978 | 16,376,159 | 16,249,014 | 15,599,799 | |||||||||
| Shareholders' equity | 2,308,798 | 2,301,019 | 2,247,573 | 2,283,014 | 2,245,785 | |||||||||
| Average Balances | ||||||||||||||
| Investments | $ | 2,790,392 | $ | 2,699,130 | $ | 2,646,266 | $ | 2,596,414 | $ | 2,601,705 | ||||
| Loans, net of unearned income | 16,316,076 | 16,194,375 | 15,965,637 | 15,862,143 | 15,768,377 | |||||||||
| Total assets | 21,057,030 | 20,690,365 | 20,512,130 | 20,273,232 | 20,063,375 | |||||||||
| Deposits | 16,375,456 | 16,275,633 | 16,413,066 | 15,967,234 | 15,517,424 | |||||||||
| Shareholders' equity | 2,301,258 | 2,265,097 | 2,281,669 | 2,269,093 | 2,246,904 | |||||||||
| Income Statement | ||||||||||||||
| Net interest income | $ | 164,544 | $ | 163,315 | $ | 162,944 | $ | 160,127 | $ | 156,067 | ||||
| Provision for credit losses | 5,025 | 5,100 | 8,200 | 1,620 | 33,117 | |||||||||
| Non-interest income | 54,315 | 46,751 | 49,523 | 51,033 | 49,094 | |||||||||
| Non-interest expense | 144,168 | 137,824 | 140,685 | 135,413 | 133,345 | |||||||||
| Income before taxes | 69,666 | 67,142 | 63,582 | 74,127 | 38,699 | |||||||||
| Net income | 59,779 | 56,663 | 58,083 | 65,633 | 35,197 | |||||||||
| Pre-provision net revenue(1) | 76,114 | 73,775 | 78,320 | 77,370 | 73,449 | |||||||||
| Per Share | ||||||||||||||
| Net income (basic) | $ | 0.36 | $ | 0.33 | $ | 0.33 | $ | 0.37 | $ | 0.20 | ||||
| Net income (diluted) | $ | 0.35 | $ | 0.33 | $ | 0.33 | $ | 0.37 | $ | 0.20 | ||||
| Cash dividends | $ | 0.13 | $ | 0.13 | $ | 0.16 | $ | 0.12 | $ | 0.12 | ||||
| Tangible common equity(1) | 10.63 | 10.39 | 10.08 | 9.95 | 9.75 | |||||||||
| Weighted average shares (basic) | 168,343 | 169,884 | 174,571 | 175,942 | 175,764 | |||||||||
| Weighted average shares (diluted) | 169,168 | 170,909 | 175,473 | 177,128 | 176,844 | |||||||||
| Asset Quality | ||||||||||||||
| Net charge-offs (recoveries) to average loans (annualized) | (0.04%) | 0.10% | 0.17% | 0.08% | 1.01% | |||||||||
| Non-performing loans to total loans | 0.90% | 0.85% | 0.86% | 0.75% | 0.78% | |||||||||
| Non-performing assets to total assets | 0.73% | 0.70% | 0.73% | 0.64% | 0.67% | |||||||||
| Allowance for credit losses to loans outstanding | 1.08% | 1.05% | 1.05% | 1.05% | 1.07% | |||||||||
| Allowance for loan losses to loans outstanding | 1.04% | 1.00% | 0.99% | 0.99% | 0.99% | |||||||||
| Allowance for credit losses to non-performing loans | 120% | 123% | 121% | 140% | 137% | |||||||||
| Allowance for loan losses to non-performing loans | 115% | 117% | 115% | 131% | 126% | |||||||||
| Non-performing assets to tangible shareholders' equity and allowance for credit losses(1) | 7.94% | 7.63% | 7.97% | 6.81% | 7.16% | |||||||||
| Profitability | ||||||||||||||
| Return on average assets | 1.14% | 1.11% | 1.12% | 1.28% | 0.70% | |||||||||
| Return on average shareholders' equity | 10.42% | 10.15% | 10.10% | 11.48% | 6.28% | |||||||||
| Return on average shareholders' equity (tangible)(1) | 13.60% | 13.28% | 13.17% | 14.99% | 8.23% | |||||||||
| Net interest margin | 3.44% | 3.49% | 3.44% | 3.42% | 3.39% | |||||||||
| Efficiency ratio(1) | 64.2% | 63.9% | 62.2% | 62.5% | 63.3% | |||||||||
| Capital Ratios | ||||||||||||||
| Tangible common equity ratio(1) | 8.54% | 8.64% | 8.52% | 8.83% | 8.73% | |||||||||
| Tier 1 leverage ratio(2) | 8.89% | 8.92% | 9.01% | 9.34% | 9.20% | |||||||||
| Common equity Tier 1 capital ratio(2) | 9.94% | 10.16% | 10.22% | 10.80% | 10.60% | |||||||||
| Tier 1 capital ratio(2) | 9.94% | 10.16% | 10.22% | 10.80% | 10.60% | |||||||||
| Total risk-based capital ratio(2) | 12.42% | 12.63% | 12.75% | 13.34% | 13.18% | |||||||||
| (1) Please refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this document. | |||||
| (2) Regulatory capital ratios as of June 30, 2019 are preliminary and prior periods are actual. |
| FULTON FINANCIAL CORPORATION | |||||||||||||||||||||
| CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) | |||||||||||||||||||||
| dollars in thousands | |||||||||||||||||||||
% Change from | |||||||||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Jun 30 | |||||||||||||||
2019 | 2019 | 2018 | 2018 | 2018 | 2019 | 2018 | |||||||||||||||
| ASSETS | |||||||||||||||||||||
| Cash and due from banks | $ | 107,091 | $ | 115,884 | $ | 103,436 | $ | 90,361 | $ | 99,742 | (7.6 | %) | 7.4 | % | |||||||
| Other interest-earning assets | 488,968 | 411,037 | 421,534 | 388,256 | 364,802 | 19.0 | % | 34.0 | % | ||||||||||||
| Loans held for sale | 45,754 | 27,768 | 27,099 | 27,525 | 35,898 | 64.8 | % | 27.5 | % | ||||||||||||
| Investment securities | 2,853,358 | 2,748,249 | 2,686,973 | 2,635,413 | 2,593,283 | 3.8 | % | 10.0 | % | ||||||||||||
| Loans, net of unearned income | 16,368,458 | 16,262,633 | 16,165,800 | 15,925,093 | 15,792,969 | 0.7 | % | 3.6 | % | ||||||||||||
| Allowance for loan losses | (170,233 | ) | (162,109 | ) | (160,537 | ) | (157,810 | ) | (156,050 | ) | 5.0 | % | 9.1 | % | |||||||
| Net loans | 16,198,225 | 16,100,524 | 16,005,263 | 15,767,283 | 15,636,919 | 0.6 | % | 3.6 | % | ||||||||||||
| Premises and equipment | 243,300 | 239,004 | 234,529 | 231,236 | 230,195 | 1.8 | % | 5.7 | % | ||||||||||||
| Accrued interest receivable | 62,984 | 62,207 | 58,879 | 58,584 | 55,208 | 1.2 | % | 14.1 | % | ||||||||||||
| Goodwill and intangible assets | 535,249 | 535,356 | 531,556 | 531,556 | 531,556 | (0.0 | %) | 0.7 | % | ||||||||||||
| Other assets | 773,741 | 734,620 | 612,883 | 634,596 | 624,936 | 5.3 | % | 23.8 | % | ||||||||||||
| Total Assets | $ | 21,308,670 | $ | 20,974,649 | $ | 20,682,152 | $ | 20,364,810 | $ | 20,172,539 | 1.6 | % | 5.6 | % | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
| Deposits | $ | 16,388,895 | $ | 16,377,978 | $ | 16,376,159 | $ | 16,249,014 | $ | 15,599,799 | 0.1 | % | 5.1 | % | |||||||
| Short-term borrowings | 1,188,390 | 829,016 | 754,777 | 485,565 | 983,833 | 43.3 | % | 20.8 | % | ||||||||||||
| Other liabilities | 435,171 | 401,324 | 311,364 | 355,102 | 351,174 | 8.4 | % | 23.9 | % | ||||||||||||
| FHLB advances and long-term debt | 987,416 | 1,065,312 | 992,279 | 992,115 | 991,948 | (7.3 | %) | (0.5 | %) | ||||||||||||
| Total Liabilities | 18,999,872 | 18,673,630 | 18,434,579 | 18,081,796 | 17,926,754 | 1.7 | % | 6.0 | % | ||||||||||||
| Shareholders' equity | 2,308,798 | 2,301,019 | 2,247,573 | 2,283,014 | 2,245,785 | 0.3 | % | 2.8 | % | ||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 21,308,670 | $ | 20,974,649 | $ | 20,682,152 | $ | 20,364,810 | $ | 20,172,539 | 1.6 | % | 5.6 | % | |||||||
| LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | |||||||||||||||||||||
| Loans, by type: | |||||||||||||||||||||
| Real estate - commercial mortgage | $ | 6,497,973 | $ | 6,428,688 | $ | 6,434,285 | $ | 6,337,984 | $ | 6,304,475 | 1.1 | % | 3.1 | % | |||||||
| Commercial - industrial, financial and agricultural | 4,365,248 | 4,429,538 | 4,404,548 | 4,288,823 | 4,264,602 | (1.5 | %) | 2.4 | % | ||||||||||||
| Real estate - residential mortgage | 2,451,966 | 2,313,908 | 2,251,044 | 2,173,548 | 2,094,530 | 6.0 | % | 17.1 | % | ||||||||||||
| Real estate - home equity | 1,386,974 | 1,413,500 | 1,452,137 | 1,469,152 | 1,491,395 | (1.9 | %) | (7.0 | %) | ||||||||||||
| Real estate - construction | 922,547 | 953,087 | 916,599 | 979,857 | 990,705 | (3.2 | %) | (6.9 | %) | ||||||||||||
| Consumer | 452,874 | 433,545 | 419,186 | 390,708 | 360,315 | 4.5 | % | 25.7 | % | ||||||||||||
| Leasing and other | 290,876 | 290,367 | 288,001 | 285,021 | 286,947 | 0.2 | % | 1.4 | % | ||||||||||||
| Total Loans, net of unearned income | $ | 16,368,458 | $ | 16,262,633 | $ | 16,165,800 | $ | 15,925,093 | $ | 15,792,969 | 0.7 | % | 3.6 | % | |||||||
| Deposits, by type: | |||||||||||||||||||||
| Noninterest-bearing demand | $ | 4,226,404 | $ | 4,255,043 | $ | 4,310,105 | $ | 4,216,064 | $ | 4,324,659 | (0.7 | %) | (2.3 | %) | |||||||
| Interest-bearing demand | 4,083,615 | 4,207,442 | 4,240,974 | 4,289,181 | 3,854,680 | (2.9 | %) | 5.9 | % | ||||||||||||
| Savings and money market accounts | 4,938,998 | 4,907,346 | 4,926,937 | 4,878,982 | 4,597,510 | 0.6 | % | 7.4 | % | ||||||||||||
| Total demand and savings | 13,249,017 | 13,369,831 | 13,478,016 | 13,384,227 | 12,776,849 | (0.9 | %) | 3.7 | % | ||||||||||||
| Brokered deposits | 246,116 | 251,395 | 176,239 | 164,601 | 161,447 | (2.1 | %) | 52.4 | % | ||||||||||||
| Time deposits | 2,893,762 | 2,756,752 | 2,721,904 | 2,700,186 | 2,661,503 | 5.0 | % | 8.7 | % | ||||||||||||
| Total Deposits | $ | 16,388,895 | $ | 16,377,978 | $ | 16,376,159 | $ | 16,249,014 | $ | 15,599,799 | 0.1 | % | 5.1 | % | |||||||
| Short-term borrowings, by type: | |||||||||||||||||||||
| Customer repurchase agreements | $ | 56,496 | $ | 54,440 | $ | 43,499 | $ | 82,741 | $ | 152,594 | 3.8 | % | (63.0 | %) | |||||||
| Customer short-term promissory notes | 281,894 | 299,576 | 326,278 | 267,824 | 303,239 | (5.9 | %) | (7.0 | %) | ||||||||||||
| Short-term FHLB advances | 650,000 | 475,000 | 385,000 | 85,000 | 185,000 | 36.8 | % | N/M | |||||||||||||
| Federal funds purchased | 200,000 | - | - | 50,000 | 343,000 | 100.0 | % | (41.7 | %) | ||||||||||||
| Total Short-term Borrowings | $ | 1,188,390 | $ | 829,016 | $ | 754,777 | $ | 485,565 | $ | 983,833 | 43.3 | % | 20.8 | % | |||||||
| N/M - Not meaningful | |||||||||||||||||||||
| FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||||||||||||||||||
| dollars in thousands | ||||||||||||||||||||||||||||||||||
Three Months Ended | % Change from | |||||||||||||||||||||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Jun 30 | Six Months Ended Jun 30 | |||||||||||||||||||||||||||
2019 | 2019 | 2018 | 2018 | 2018 | 2019 | 2018 | 2019 | 2018 | % Change | |||||||||||||||||||||||||
| Interest Income: | ||||||||||||||||||||||||||||||||||
| Interest income | $ | 210,034 | $ | 204,700 | $ | 200,609 | $ | 194,048 | $ | 186,170 | 2.6 | % | 12.8 | % | $ | 414,734 | $ | 363,857 | 14.0 | % | ||||||||||||||
| Interest expense | 45,490 | 41,385 | 37,665 | 33,921 | 30,103 | 9.9 | % | 51.1 | % | 86,875 | 56,472 | 53.8 | % | |||||||||||||||||||||
| Net Interest Income | 164,544 | 163,315 | 162,944 | 160,127 | 156,067 | 0.8 | % | 5.4 | % | 327,859 | 307,385 | 6.7 | % | |||||||||||||||||||||
| Provision for credit losses | 5,025 | 5,100 | 8,200 | 1,620 | 33,117 | (1.5 | %) | (84.8 | %) | 10,125 | 37,087 | (72.7 | %) | |||||||||||||||||||||
| Net Interest Income after Provision | 159,519 | 158,215 | 154,744 | 158,507 | 122,950 | 0.8 | % | 29.7 | % | 317,734 | 270,298 | 17.5 | % | |||||||||||||||||||||
| Non-Interest Income: | ||||||||||||||||||||||||||||||||||
| Wealth management fees | 14,153 | 13,239 | 13,408 | 13,066 | 12,803 | 6.9 | % | 10.5 | % | 27,392 | 25,674 | 6.7 | % | |||||||||||||||||||||
| Mortgage banking income | 6,593 | 4,772 | 4,774 | 4,896 | 5,163 | 38.2 | % | 27.7 | % | 11,365 | 9,356 | 21.5 | % | |||||||||||||||||||||
| Consumer banking income: | ||||||||||||||||||||||||||||||||||
| Card income | 5,047 | 4,686 | 4,966 | 5,382 | 4,708 | 7.7 | % | 7.2 | % | 9,733 | 9,149 | 6.4 | % | |||||||||||||||||||||
| Overdraft fees | 4,413 | 4,104 | 4,653 | 4,443 | 4,268 | 7.5 | % | 3.4 | % | 8,517 | 8,509 | 0.1 | % | |||||||||||||||||||||
| Other consumer banking income | 2,907 | 2,587 | 2,799 | 2,840 | 2,955 | 12.4 | % | (1.6 | %) | 5,494 | 5,682 | (3.3 | %) | |||||||||||||||||||||
| Total consumer banking income | 12,367 | 11,377 | 12,418 | 12,665 | 11,931 | 8.7 | % | 3.7 | % | 23,744 | 23,340 | 1.7 | % | |||||||||||||||||||||
| Commercial banking income: | ||||||||||||||||||||||||||||||||||
| Merchant and card income | 6,512 | 5,558 | 5,656 | 6,307 | 6,155 | 17.2 | % | 5.8 | % | 12,070 | 11,463 | 5.3 | % | |||||||||||||||||||||
| Cash management fees | 4,638 | 4,361 | 4,340 | 4,472 | 4,452 | 6.4 | % | 4.2 | % | 8,999 | 8,770 | 2.6 | % | |||||||||||||||||||||
| Commercial loan interest rate swap fees | 3,477 | 2,028 | 2,540 | 3,607 | 2,393 | 71.4 | % | 45.3 | % | 5,505 | 3,684 | 49.4 | % | |||||||||||||||||||||
| Other commercial banking income | 3,815 | 2,816 | 3,466 | 3,154 | 3,431 | 35.5 | % | 11.2 | % | 6,631 | 6,471 | 2.5 | % | |||||||||||||||||||||
| Total commercial banking income | 18,442 | 14,763 | 16,002 | 17,540 | 16,431 | 24.9 | % | 12.2 | % | 33,205 | 30,388 | 9.3 | % | |||||||||||||||||||||
| Other income | 2,584 | 2,535 | 2,921 | 2,852 | 2,762 | 1.9 | % | (6.4 | %) | 5,119 | 6,188 | (17.3 | %) | |||||||||||||||||||||
| Non-Interest Income before Investment Securities Gains | 54,139 | 46,686 | 49,523 | 51,019 | 49,090 | 16.0 | % | 10.3 | % | 100,825 | 94,946 | 6.2 | % | |||||||||||||||||||||
| Investment securities gains, net | 176 | 65 | - | 14 | 4 | 170.8 | % | N/M | 241 | 23 | N/M | |||||||||||||||||||||||
| Total Non-Interest Income | 54,315 | 46,751 | 49,523 | 51,033 | 49,094 | 16.2 | % | 10.6 | % | 101,066 | 94,969 | 6.4 | % | |||||||||||||||||||||
| Non-Interest Expense: | ||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 78,991 | 77,757 | 75,745 | 76,770 | 74,919 | 1.6 | % | 5.4 | % | 156,748 | 150,687 | 4.0 | % | |||||||||||||||||||||
| Net occupancy expense | 14,469 | 12,909 | 12,708 | 12,578 | 12,760 | 12.1 | % | 13.4 | % | 27,378 | 26,392 | 3.7 | % | |||||||||||||||||||||
| Data processing and software | 11,268 | 10,353 | 10,203 | 10,157 | 10,453 | 8.8 | % | 7.8 | % | 21,621 | 20,926 | 3.3 | % | |||||||||||||||||||||
| Other outside services | 11,259 | 8,352 | 8,944 | 9,122 | 7,568 | 34.8 | % | 48.8 | % | 19,611 | 15,692 | 25.0 | % | |||||||||||||||||||||
| Equipment expense | 3,299 | 3,342 | 3,275 | 3,000 | 3,434 | (1.3 | %) | (3.9 | %) | 6,641 | 6,968 | (4.7 | %) | |||||||||||||||||||||
| Professional fees | 2,970 | 3,960 | 3,546 | 3,427 | 2,372 | (25.0 | %) | 25.2 | % | 6,930 | 7,188 | (3.6 | %) | |||||||||||||||||||||
| Marketing | 2,863 | 2,160 | 1,577 | 2,692 | 2,335 | 32.5 | % | 22.6 | % | 5,023 | 4,585 | 9.6 | % | |||||||||||||||||||||
| FDIC insurance expense | 2,755 | 2,609 | 2,563 | 2,814 | 2,663 | 5.6 | % | 3.5 | % | 5,364 | 5,616 | (4.5 | %) | |||||||||||||||||||||
| Amortization of tax credit investments | 1,492 | 1,491 | 6,538 | 1,637 | 1,637 | 0.0 | % | (8.9 | %) | 2,983 | 3,274 | (8.9 | %) | |||||||||||||||||||||
| Intangible amortization | 107 | 107 | - | - | - | - | 100.0 | % | 214 | - | 100.0 | % | ||||||||||||||||||||||
| Other | 14,695 | 14,784 | 15,586 | 13,216 | 15,204 | (0.6 | %) | (3.3 | %) | 29,479 | 28,678 | 2.8 | % | |||||||||||||||||||||
| Total Non-Interest Expense | 144,168 | 137,824 | 140,685 | 135,413 | 133,345 | 4.6 | % | 8.1 | % | 281,992 | 270,006 | 4.4 | % | |||||||||||||||||||||
| Income before Income Taxes | 69,666 | 67,142 | 63,582 | 74,127 | 38,699 | 3.8 | % | 80.0 | % | 136,808 | 95,261 | 43.6 | % | |||||||||||||||||||||
| Income tax expense | 9,887 | 10,479 | 5,499 | 8,494 | 3,502 | (5.6 | %) | N/M | 20,366 | 10,584 | 92.4 | % | ||||||||||||||||||||||
| Net Income | $ | 59,779 | $ | 56,663 | $ | 58,083 | $ | 65,633 | $ | 35,197 | 5.5 | % | 69.8 | % | $ | 116,442 | $ | 84,677 | 37.5 | % | ||||||||||||||
| PER SHARE: | ||||||||||||||||||||||||||||||||||
| Net income: | ||||||||||||||||||||||||||||||||||
| Basic | $ | 0.36 | $ | 0.33 | $ | 0.33 | $ | 0.37 | $ | 0.20 | 9.1 | % | 80.0 | % | $ | 0.69 | $ | 0.48 | 43.8 | % | ||||||||||||||
| Diluted | 0.35 | 0.33 | 0.33 | 0.37 | 0.20 | 6.1 | % | 75.0 | % | 0.68 | 0.48 | 41.7 | % | |||||||||||||||||||||
| Cash dividends | 0.13 | 0.13 | 0.16 | 0.12 | 0.12 | - | 8.3 | % | 0.26 | 0.24 | 8.3 | % | ||||||||||||||||||||||
| Weighted average shares (basic) | 168,343 | 169,884 | 174,571 | 175,942 | 175,764 | (0.9 | %) | (4.2 | %) | 169,109 | 175,535 | (3.7 | %) | |||||||||||||||||||||
| Weighted average shares (diluted) | 169,168 | 170,909 | 175,473 | 177,128 | 176,844 | (1.0 | %) | (4.3 | %) | 170,042 | 176,506 | (3.7 | %) | |||||||||||||||||||||
| N/M - not meaningful | ||||||||||||||||||||||||||||||||||
| FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||||
| dollars in thousands | ||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||
June 30, 2019 | March 31, 2019 | June 30, 2018 | ||||||||||||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||||||||||||||
Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | ||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||||
| Loans, net of unearned income | $ | 16,316,076 | $ | 190,694 | 4.69 | % | $ | 16,194,375 | $ | 186,122 | 4.65 | % | $ | 15,768,377 | $ | 170,006 | 4.32 | % | ||||||||||||||||
| Taxable investment securities | 2,348,443 | 15,935 | 2.71 | % | 2,285,724 | 15,435 | 2.70 | % | 2,262,789 | 13,885 | 2.45 | % | ||||||||||||||||||||||
| Tax-exempt investment securities | 444,227 | 4,141 | 3.70 | % | 444,132 | 4,150 | 3.71 | % | 408,715 | 3,713 | 3.63 | % | ||||||||||||||||||||||
| Total Investment Securities | 2,792,670 | 20,076 | 2.87 | % | 2,729,856 | 19,585 | 2.87 | % | 2,671,504 | 17,598 | 2.63 | % | ||||||||||||||||||||||
| Loans held for sale | 24,568 | 350 | 5.71 | % | 16,434 | 240 | 5.85 | % | 22,237 | 284 | 5.11 | % | ||||||||||||||||||||||
| Other interest-earning assets | 409,617 | 2,168 | 2.12 | % | 366,175 | 2,002 | 2.20 | % | 316,381 | 1,243 | 1.57 | % | ||||||||||||||||||||||
| Total Interest-earning Assets | 19,542,931 | 213,288 | 4.37 | % | 19,306,840 | 207,949 | 4.35 | % | 18,778,499 | 189,131 | 4.04 | % | ||||||||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||||||||||||
| Cash and due from banks | 116,285 | 110,693 | 100,811 | |||||||||||||||||||||||||||||||
| Premises and equipment | 240,666 | 237,124 | 232,048 | |||||||||||||||||||||||||||||||
| Other assets | 1,321,057 | 1,197,034 | 1,112,913 | |||||||||||||||||||||||||||||||
| Less: allowance for loan losses | (163,909 | ) | (161,326 | ) | (160,896 | ) | ||||||||||||||||||||||||||||
| Total Assets | $ | 21,057,030 | $ | 20,690,365 | $ | 20,063,375 | ||||||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
| Demand deposits | $ | 4,186,280 | $ | 8,173 | 0.78 | % | $ | 4,153,984 | $ | 7,519 | 0.73 | % | $ | 3,952,115 | $ | 4,959 | 0.50 | % | ||||||||||||||||
| Savings deposits | 4,925,788 | 10,550 | 0.86 | % | 4,912,856 | 9,962 | 0.82 | % | 4,538,083 | 5,545 | 0.49 | % | ||||||||||||||||||||||
| Brokered deposits | 246,154 | 1,582 | 2.58 | % | 220,115 | 1,382 | 2.55 | % | 85,242 | 396 | 1.87 | % | ||||||||||||||||||||||
| Time deposits | 2,816,424 | 12,245 | 1.74 | % | 2,765,803 | 10,826 | 1.59 | % | 2,660,411 | 8,385 | 1.26 | % | ||||||||||||||||||||||
| Total Interest-bearing Deposits | 12,174,646 | 32,550 | 1.07 | % | 12,052,758 | 29,689 | 1.00 | % | 11,235,850 | 19,285 | 0.69 | % | ||||||||||||||||||||||
| Short-term borrowings | 941,504 | 4,462 | 1.89 | % | 820,054 | 3,582 | 1.76 | % | 1,023,160 | 3,036 | 1.18 | % | ||||||||||||||||||||||
| FHLB advances and long-term debt | 1,051,919 | 8,480 | 3.23 | % | 1,002,463 | 8,114 | 3.26 | % | 945,177 | 7,783 | 3.30 | % | ||||||||||||||||||||||
| Total Interest-bearing Liabilities | 14,168,069 | 45,492 | 1.29 | % | 13,875,275 | 41,385 | 1.21 | % | 13,204,187 | 30,104 | 0.91 | % | ||||||||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
| Demand deposits | 4,200,810 | 4,222,875 | 4,281,574 | |||||||||||||||||||||||||||||||
| Other | 386,893 | 327,118 | 330,710 | |||||||||||||||||||||||||||||||
| Total Liabilities | 18,755,772 | 18,425,268 | 17,816,471 | |||||||||||||||||||||||||||||||
| Shareholders' equity | 2,301,258 | 2,265,097 | 2,246,904 | |||||||||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 21,057,030 | $ | 20,690,365 | $ | 20,063,375 | ||||||||||||||||||||||||||||
| Net interest income/net interest margin (fully taxable equivalent) | 167,796 | 3.44 | % | 166,564 | 3.49 | % | 159,027 | 3.39 | % | |||||||||||||||||||||||||
| Tax equivalent adjustment | (3,252 | ) | (3,249 | ) | (2,960 | ) | ||||||||||||||||||||||||||||
| Net interest income | $ | 164,544 | $ | 163,315 | $ | 156,067 | ||||||||||||||||||||||||||||
| (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. | |||||||||||||||||||
| Note: The weighted average interest rate on total average interest-bearing liabilities and average non-interest bearing demand deposits (“cost of funds”) was 0.99%, 0.93% and 0.69% for the three months ended June 30, 2019, March 31, 2019 and June 30, 2018, respectively. | |||||||||||||||||||
| AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||||||||
Three Months Ended | % Change from | |||||||||||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Jun 30 | ||||||||||||||||||
2019 | 2019 | 2018 | 2018 | 2018 | 2019 | 2018 | ||||||||||||||||||
| Loans, by type: | ||||||||||||||||||||||||
| Real estate - commercial mortgage | $ | 6,424,213 | $ | 6,378,145 | $ | 6,343,024 | $ | 6,309,663 | $ | 6,298,534 | 0.7 | % | 2.0 | % | ||||||||||
| Commercial - industrial, financial and agricultural | 4,440,860 | 4,462,609 | 4,329,937 | 4,304,320 | 4,335,097 | (0.5 | %) | 2.4 | % | |||||||||||||||
| Real estate - residential mortgage | 2,366,685 | 2,276,611 | 2,209,993 | 2,142,977 | 2,026,161 | 4.0 | % | 16.8 | % | |||||||||||||||
| Real estate - home equity | 1,404,141 | 1,433,574 | 1,459,647 | 1,474,011 | 1,502,936 | (2.1 | %) | (6.6 | %) | |||||||||||||||
| Real estate - construction | 943,080 | 930,246 | 931,724 | 969,575 | 978,327 | 1.4 | % | (3.6 | %) | |||||||||||||||
| Consumer | 445,666 | 424,480 | 406,436 | 375,656 | 345,572 | 5.0 | % | 29.0 | % | |||||||||||||||
| Leasing and other | 291,431 | 288,710 | 284,876 | 285,941 | 281,750 | 0.9 | % | 3.4 | % | |||||||||||||||
| Total Loans, net of unearned income | $ | 16,316,076 | $ | 16,194,375 | $ | 15,965,637 | $ | 15,862,143 | $ | 15,768,377 | 0.8 | % | 3.5 | % | ||||||||||
| Deposits, by type: | ||||||||||||||||||||||||
| Noninterest-bearing demand | $ | 4,200,810 | $ | 4,222,875 | $ | 4,321,776 | $ | 4,298,020 | $ | 4,281,574 | (0.5 | %) | (1.9 | %) | ||||||||||
| Interest-bearing demand | 4,186,280 | 4,153,984 | 4,225,157 | 4,116,051 | 3,952,115 | 0.8 | % | 5.9 | % | |||||||||||||||
| Savings and money market accounts | 4,925,788 | 4,912,856 | 4,979,712 | 4,718,148 | 4,538,083 | 0.3 | % | 8.5 | % | |||||||||||||||
| Total demand and savings | 13,312,878 | 13,289,715 | 13,526,645 | 13,132,219 | 12,771,772 | 0.2 | % | 4.2 | % | |||||||||||||||
| Brokered deposits | 246,154 | 220,115 | 164,280 | 162,467 | 85,242 | 11.8 | % | N/M | ||||||||||||||||
| Time deposits | 2,816,424 | 2,765,803 | 2,722,141 | 2,672,548 | 2,660,412 | 1.8 | % | 5.9 | % | |||||||||||||||
| Total Deposits | $ | 16,375,456 | $ | 16,275,633 | $ | 16,413,066 | $ | 15,967,234 | $ | 15,517,424 | 0.6 | % | 5.5 | % | ||||||||||
| Short-term borrowings, by type: | ||||||||||||||||||||||||
| Customer repurchase agreements | $ | 56,171 | $ | 56,707 | $ | 64,102 | $ | 148,660 | $ | 162,276 | (0.9 | %) | (65.4 | %) | ||||||||||
| Customer short-term promissory notes | 288,696 | 312,092 | 310,296 | 298,896 | 316,049 | (7.5 | %) | (8.7 | %) | |||||||||||||||
| Federal funds purchased | 181,769 | 157,122 | 43 | 145,793 | 398,297 | 15.7 | % | (54.4 | %) | |||||||||||||||
| Short-term FHLB advances and other borrowings | 414,868 | 294,133 | 130,109 | 130,783 | 146,538 | 41.0 | % | N/M | ||||||||||||||||
| Total Short-term Borrowings | $ | 941,504 | $ | 820,054 | $ | 504,550 | $ | 724,132 | $ | 1,023,160 | 14.8 | % | (8.0 | %) | ||||||||||
| N/M - Not meaningful | ||||||||||||||||||||||||
| FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||
| CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||
| dollars in thousands | ||||||||||||||||||||||||
Six Months Ended June 30 | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
Balance | Interest (1) | Yield/Rate | Balance | Interest (1) | Yield/Rate | |||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans, net of unearned income | $ | 16,255,562 | $ | 376,816 | 4.67 | % | $ | 15,715,001 | $ | 332,267 | 4.26 | % | ||||||||||||
| Taxable investment securities | 2,317,257 | 31,370 | 2.71 | % | 2,230,991 | 27,078 | 2.43 | % | ||||||||||||||||
| Tax-exempt investment securities | 444,180 | 8,291 | 3.71 | % | 410,761 | 7,466 | 3.64 | % | ||||||||||||||||
| Equity securities | - | - | - | 253 | 5 | 8.30 | % | |||||||||||||||||
| Total Investment Securities | 2,761,437 | 39,661 | 2.87 | % | 2,642,005 | 34,549 | 2.62 | % | ||||||||||||||||
| Loans held for sale | 20,523 | 590 | 5.76 | % | 21,132 | 500 | 4.73 | % | ||||||||||||||||
| Other interest-earning assets | 388,016 | 4,170 | 2.16 | % | 309,620 | 2,415 | 1.56 | % | ||||||||||||||||
| Total Interest-earning Assets | 19,425,538 | 421,237 | 4.36 | % | 18,687,758 | 369,731 | 3.98 | % | ||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||
| Cash and due from banks | 113,504 | 103,258 | ||||||||||||||||||||||
| Premises and equipment | 238,905 | 231,152 | ||||||||||||||||||||||
| Other assets | 1,259,388 | 1,113,118 | ||||||||||||||||||||||
| Less: allowance for loan losses | (162,624 | ) | (165,035 | ) | ||||||||||||||||||||
| Total Assets | $ | 20,874,711 | $ | 19,970,251 | ||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Demand deposits | $ | 4,170,221 | $ | 15,692 | 0.76 | % | $ | 3,955,485 | $ | 8,963 | 0.46 | % | ||||||||||||
| Savings deposits | 4,919,357 | 20,512 | 0.84 | % | 4,516,384 | 9,912 | 0.44 | % | ||||||||||||||||
| Brokered deposits | 233,206 | 2,964 | 2.56 | % | 79,665 | 671 | 1.70 | % | ||||||||||||||||
| Time deposits | 2,791,254 | 23,071 | 1.67 | % | 2,653,634 | 16,188 | 1.23 | % | ||||||||||||||||
| Total Interest-bearing Deposits | 12,114,038 | 62,239 | 1.04 | % | 11,205,168 | 35,734 | 0.64 | % | ||||||||||||||||
| Short-term borrowings | 881,115 | 8,044 | 1.83 | % | 960,348 | 5,077 | 1.06 | % | ||||||||||||||||
| FHLB advances and long-term debt | 1,027,328 | 16,594 | 3.24 | % | 966,129 | 15,661 | 3.25 | % | ||||||||||||||||
| Total Interest-bearing Liabilities | 14,022,481 | 86,877 | 1.25 | % | 13,131,645 | 56,472 | 0.87 | % | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Demand deposits | 4,211,782 | 4,263,968 | ||||||||||||||||||||||
| Other | 357,170 | 338,817 | ||||||||||||||||||||||
| Total Liabilities | 18,591,433 | 17,734,430 | ||||||||||||||||||||||
| Shareholders' equity | 2,283,278 | 2,235,821 | ||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 20,874,711 | $ | 19,970,251 | ||||||||||||||||||||
| Net interest income/net interest margin (fully taxable equivalent) | 334,360 | 3.46 | % | 313,259 | 3.37 | % | ||||||||||||||||||
| Tax equivalent adjustment | (6,501 | ) | (5,874 | ) | ||||||||||||||||||||
| Net interest income | $ | 327,859 | $ | 307,385 | ||||||||||||||||||||
| (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. | ||||||||||||
| Note: The weighted average interest rate on total average interest-bearing liabilities and average non-interest bearing demand deposits (“cost of funds”) was 0.96% and 0.65% for the six months ended June 30, 2019 and 2018, respectively. |
| AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||
Six Months Ended | ||||||||||||||
June 30 | ||||||||||||||
2019 | 2018 | % Change | ||||||||||||
| Loans, by type: | ||||||||||||||
| Real estate - commercial mortgage | $ | 6,401,305 | $ | 6,302,157 | 1.6 | % | ||||||||
| Commercial - industrial, financial and agricultural | 4,451,677 | 4,311,994 | 3.2 | % | ||||||||||
| Real estate - residential mortgage | 2,321,897 | 1,992,520 | 16.5 | % | ||||||||||
| Real estate - home equity | 1,418,776 | 1,520,855 | (6.7 | %) | ||||||||||
| Real estate - construction | 936,699 | 981,269 | (4.5 | %) | ||||||||||
| Consumer | 435,131 | 330,831 | 31.5 | % | ||||||||||
| Leasing and other | 290,077 | 275,375 | 5.3 | % | ||||||||||
| Total Loans, net of unearned income | $ | 16,255,562 | $ | 15,715,001 | 3.4 | % | ||||||||
| Deposits, by type: | ||||||||||||||
| Noninterest-bearing demand | $ | 4,211,782 | $ | 4,263,968 | (1.2 | %) | ||||||||
| Interest-bearing demand | 4,170,221 | 3,955,485 | 5.4 | % | ||||||||||
| Savings and money market accounts | 4,919,357 | 4,516,384 | 8.9 | % | ||||||||||
| Total demand and savings | 13,301,360 | 12,735,837 | 4.4 | % | ||||||||||
| Brokered deposits | 233,206 | 79,665 | N/M | |||||||||||
| Time deposits | 2,791,254 | 2,653,634 | 5.2 | % | ||||||||||
| Total Deposits | $ | 16,325,820 | $ | 15,469,136 | 5.5 | % | ||||||||
| Short-term borrowings, by type: | ||||||||||||||
| Customer repurchase agreements | $ | 191,880 | $ | 169,300 | 13.3 | % | ||||||||
| Customer short-term promissory notes | 300,329 | 312,407 | (3.9 | %) | ||||||||||
| Federal funds purchased | 169,514 | 389,111 | (56.4 | %) | ||||||||||
| Short-term FHLB advances and other borrowings | 219,392 | 89,530 | N/M | |||||||||||
| Total Short-term Borrowings | $ | 881,115 | $ | 960,348 | (8.3 | %) | ||||||||
| N/M - Not meaningful | ||||||||||||||
| FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||||||||||||
| ASSET QUALITY INFORMATION (UNAUDITED) | |||||||||||||||||||||||||||||||||
| dollars in thousands | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Jun 30 | Jun 30 | |||||||||||||||||||||||||||
2019 | 2019 | 2018 | 2018 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||
| ALLOWANCE FOR CREDIT LOSSES: | |||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 170,372 | $ | 169,410 | $ | 167,826 | $ | 169,247 | $ | 176,019 | $ | 169,410 | $ | 176,084 | |||||||||||||||||||
| Loans charged off: | |||||||||||||||||||||||||||||||||
| Commercial - industrial, financial and agricultural | (1,895 | ) | (2,787 | ) | (6,263 | ) | (3,541 | ) | (38,632 | ) | (4,682 | ) | (42,637 | ) | |||||||||||||||||||
| Real estate - commercial mortgage | (230 | ) | (1,145 | ) | (762 | ) | (650 | ) | (366 | ) | (1,375 | ) | (633 | ) | |||||||||||||||||||
| Consumer and home equity | (1,001 | ) | (902 | ) | (1,884 | ) | (1,415 | ) | (1,528 | ) | (1,903 | ) | (2,828 | ) | |||||||||||||||||||
| Real estate - residential mortgage | (134 | ) | (655 | ) | (446 | ) | (483 | ) | (483 | ) | (789 | ) | (645 | ) | |||||||||||||||||||
| Real estate - construction | (3 | ) | (95 | ) | (392 | ) | (212 | ) | (606 | ) | (98 | ) | (764 | ) | |||||||||||||||||||
| Leasing and other | (448 | ) | (785 | ) | (889 | ) | (582 | ) | (545 | ) | (1,233 | ) | (1,050 | ) | |||||||||||||||||||
| Total loans charged off | (3,711 | ) | (6,369 | ) | (10,636 | ) | (6,883 | ) | (42,160 | ) | (10,080 | ) | (48,557 | ) | |||||||||||||||||||
| Recoveries of loans previously charged off: | |||||||||||||||||||||||||||||||||
| Commercial - industrial, financial and agricultural | 2,680 | 1,243 | 2,647 | 731 | 541 | 3,923 | 1,616 | ||||||||||||||||||||||||||
| Real estate - commercial mortgage | 169 | 136 | 94 | 928 | 321 | 305 | 600 | ||||||||||||||||||||||||||
| Consumer and home equity | 802 | 407 | 684 | 607 | 717 | 1,209 | 1,102 | ||||||||||||||||||||||||||
| Real estate - residential mortgage | 211 | 132 | 100 | 317 | 96 | 343 | 203 | ||||||||||||||||||||||||||
| Real estate - construction | 1,245 | 84 | 415 | 664 | 444 | 1,329 | 750 | ||||||||||||||||||||||||||
| Leasing and other | 148 | 229 | 80 | 595 | 152 | 377 | 362 | ||||||||||||||||||||||||||
| Recoveries of loans previously charged off | 5,255 | 2,231 | 4,020 | 3,842 | 2,271 | 7,486 | 4,633 | ||||||||||||||||||||||||||
| Net loans charged off | 1,544 | (4,138 | ) | (6,616 | ) | (3,041 | ) | (39,889 | ) | (2,594 | ) | (43,924 | ) | ||||||||||||||||||||
| Provision for credit losses | 5,025 | 5,100 | 8,200 | 1,620 | 33,117 | 10,125 | 37,087 | ||||||||||||||||||||||||||
| Balance at end of period | $ | 176,941 | $ | 170,372 | $ | 169,410 | $ | 167,826 | $ | 169,247 | $ | 176,941 | $ | 169,247 | |||||||||||||||||||
| Net charge-offs to average loans (annualized) | (0.04 | %) | 0.10 | % | 0.17 | % | 0.08 | % | 1.01 | % | 0.03 | % | 0.56 | % | |||||||||||||||||||
| NON-PERFORMING ASSETS: | |||||||||||||||||||||||||||||||||
| Non-accrual loans | $ | 133,118 | $ | 127,141 | $ | 128,572 | $ | 106,433 | $ | 111,116 | |||||||||||||||||||||||
| Loans 90 days past due and accruing | 14,598 | 11,540 | 11,106 | 13,663 | 12,628 | ||||||||||||||||||||||||||||
| Total non-performing loans | 147,716 | 138,681 | 139,678 | 120,096 | 123,744 | ||||||||||||||||||||||||||||
| Other real estate owned | 7,241 | 9,012 | 10,518 | 10,684 | 11,181 | ||||||||||||||||||||||||||||
| Total non-performing assets | $ | 154,957 | $ | 147,693 | $ | 150,196 | $ | 130,780 | $ | 134,925 | |||||||||||||||||||||||
| NON-PERFORMING LOANS, BY TYPE: | |||||||||||||||||||||||||||||||||
| Commercial - industrial, financial and agricultural | $ | 47,260 | $ | 50,148 | $ | 51,269 | $ | 43,391 | $ | 44,045 | |||||||||||||||||||||||
| Real estate - commercial mortgage | 43,850 | 29,817 | 32,153 | 37,393 | 39,278 | ||||||||||||||||||||||||||||
| Real estate - residential mortgage | 21,659 | 22,299 | 19,101 | 19,076 | 18,888 | ||||||||||||||||||||||||||||
| Consumer and home equity | 12,378 | 10,770 | 10,178 | 10,362 | 12,038 | ||||||||||||||||||||||||||||
| Real estate - construction | 4,632 | 7,039 | 7,390 | 9,784 | 9,319 | ||||||||||||||||||||||||||||
| Leasing | 17,937 | 18,608 | 19,587 | 90 | 176 | ||||||||||||||||||||||||||||
| Total non-performing loans | $ | 147,716 | $ | 138,681 | $ | 139,678 | $ | 120,096 | $ | 123,744 | |||||||||||||||||||||||
| FULTON FINANCIAL CORPORATION | |||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) | |||||||||||||
| in thousands, except per share data and percentages | |||||||||||||
Explanatory note: | This press release contains supplemental financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow: | ||||||||||||
Three Months Ended | |||||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||
2019 | 2019 | 2018 | 2018 | 2018 | |||||||||||||
| Shareholders' equity (tangible), per share | |||||||||||||||||
| Shareholders' equity | $ | 2,308,798 | $ | 2,301,019 | $ | 2,247,573 | $ | 2,283,014 | $ | 2,245,785 | |||||||
| Less: Goodwill and intangible assets | (535,249) | (535,356) | (531,556) | (531,556) | (531,556) | ||||||||||||
| Tangible shareholders' equity (numerator) | $ | 1,773,549 | $ | 1,765,663 | $ | 1,716,017 | $ | 1,751,458 | $ | 1,714,229 | |||||||
| Shares outstanding, end of period (denominator) | 166,903 | 169,923 | 170,184 | 176,019 | 175,847 | ||||||||||||
| Shareholders' equity (tangible), per share | $ | 10.63 | $ | 10.39 | $ | 10.08 | $ | 9.95 | $ | 9.75 | |||||||
| Return on average shareholders' equity (tangible) | |||||||||||||||||
| Net income | $ | 59,779 | $ | 56,663 | $ | 58,083 | $ | 65,633 | $ | 35,197 | |||||||
| Plus: Intangible amortization, net of tax | 85 | 85 | - | - | - | ||||||||||||
| (Numerator) | $ | 59,864 | $ | 56,748 | $ | 58,083 | $ | 65,633 | $ | 35,197 | |||||||
| Average shareholders' equity | $ | 2,301,258 | $ | 2,265,097 | $ | 2,281,669 | $ | 2,269,093 | $ | 2,246,904 | |||||||
| Less: Average goodwill and intangible assets | (535,301) | (531,767) | (531,556) | (531,556) | (531,556) | ||||||||||||
| Average tangible shareholders' equity (denominator) | $ | 1,765,957 | $ | 1,733,330 | $ | 1,750,113 | $ | 1,737,537 | $ | 1,715,348 | |||||||
| Return on average shareholders' equity (tangible), annualized | 13.60% | 13.28% | 13.17% | 14.99% | 8.23% | ||||||||||||
| Tangible Common Equity to Tangible Assets (TCE Ratio) | |||||||||||||||||
| Shareholders' equity | $ | 2,308,798 | $ | 2,301,019 | $ | 2,247,573 | $ | 2,283,014 | $ | 2,245,785 | |||||||
| Less: Intangible assets | (535,249) | (535,356) | (531,556) | (531,556) | (531,556) | ||||||||||||
| Tangible shareholders' equity (numerator) | $ | 1,773,549 | $ | 1,765,663 | $ | 1,716,017 | $ | 1,751,458 | $ | 1,714,229 | |||||||
| Total assets | $ | 21,308,670 | $ | 20,974,649 | $ | 20,682,152 | $ | 20,364,810 | $ | 20,172,539 | |||||||
| Less: Intangible assets | (535,249) | (535,356) | (531,556) | (531,556) | (531,556) | ||||||||||||
| Total tangible assets (denominator) | $ | 20,773,421 | $ | 20,439,293 | $ | 20,150,596 | $ | 19,833,254 | $ | 19,640,983 | |||||||
| Tangible Common Equity to Tangible Assets | 8.54% | 8.64% | 8.52% | 8.83% | 8.73% | ||||||||||||
| Efficiency ratio | |||||||||||||||||
| Non-interest expense | $ | 144,168 | $ | 137,824 | $ | 140,685 | $ | 135,413 | $ | 133,345 | |||||||
| Less: Intangible amortization | (107) | (107) | - | - | - | ||||||||||||
| Less: Amortization of tax credit investments | (1,492) | (1,491) | (6,538) | (1,637) | (1,637) | ||||||||||||
| Non-interest expense (numerator) | $ | 142,569 | $ | 136,226 | $ | 134,147 | $ | 133,776 | $ | 131,708 | |||||||
| Net interest income (fully taxable equivalent) | $ | 167,796 | $ | 166,564 | $ | 166,123 | $ | 163,194 | $ | 159,027 | |||||||
| Plus: Total Non-interest income | 54,315 | 46,751 | 49,523 | 51,033 | 49,094 | ||||||||||||
| Less: Investment securities gains | (176) | (65) | - | (14) | (4) | ||||||||||||
| Net interest income (denominator) | $ | 221,935 | $ | 213,250 | $ | 215,646 | $ | 214,213 | $ | 208,117 | |||||||
| Efficiency ratio | 64.2% | 63.9% | 62.2% | 62.5% | 63.3% | ||||||||||||
| Non-performing assets to tangible shareholders' equity and allowance for credit losses | |||||||||||||||||
| Non-performing assets (numerator) | $ | 154,957 | $ | 147,693 | $ | 150,196 | $ | 130,780 | $ | 134,925 | |||||||
| Tangible shareholders' equity | $ | 1,773,549 | $ | 1,765,663 | $ | 1,716,017 | $ | 1,751,458 | $ | 1,714,229 | |||||||
| Plus: Allowance for credit losses | 176,941 | 170,372 | 169,410 | 167,826 | 169,247 | ||||||||||||
| Tangible shareholders' equity and allowance for credit losses (denominator) | $ | 1,950,490 | $ | 1,936,035 | $ | 1,885,427 | $ | 1,919,284 | $ | 1,883,476 | |||||||
| Non-performing assets to tangible shareholders' equity and allowance for credit losses | 7.94% | 7.63% | 7.97% | 6.81% | 7.16% | ||||||||||||
| Pre-provision net revenue | |||||||||||||||||
| Net interest income | $ | 164,544 | $ | 163,315 | $ | 162,944 | $ | 160,127 | $ | 156,067 | |||||||
| Non-interest income | 54,315 | 46,751 | 49,523 | 51,033 | 49,094 | ||||||||||||
| Less: Investment securities gains | (176) | (65) | - | (14) | (4) | ||||||||||||
| Total revenue | $ | 218,683 | $ | 210,001 | $ | 212,467 | $ | 211,146 | $ | 205,157 | |||||||
| Non-interest expense | $ | 144,168 | $ | 137,824 | $ | 140,685 | $ | 135,413 | $ | 133,345 | |||||||
| Less: Amortization of tax credit investments | (1,492) | (1,491) | (6,538) | (1,637) | (1,637) | ||||||||||||
| Less: Intangible amortization | (107) | (107) | - | - | - | ||||||||||||
| Total non-interest expense | $ | 142,569 | $ | 136,226 | $ | 134,147 | $ | 133,776 | $ | 131,708 | |||||||
| Pre-provision net revenue | $ | 76,114 | $ | 73,775 | $ | 78,320 | $ | 77,370 | $ | 73,449 | |||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190716006014/en/
Contacts:
Investor Contact: Jason Weber (717) 327-2394
