Fulton Financial Announces First Quarter 2022 Results

LANCASTER, Pa.–(BUSINESS WIRE)–Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $61.7 million, or $0.38 per diluted share, for the first quarter of 2022, an increase of $2.4 million, or 4.0%, in comparison to the fourth quarter of 2021.

“Overall, we are pleased with our first quarter results. Our consumer and commercial businesses had solid loan growth during the quarter despite the volatile rate environment. We again saw record income in our wealth management business. Our asset quality remained stable, and we saw a decline in operating expenses linked quarter,” said E. Phillip Wenger, Chairman and CEO. “On the corporate front, we were pleased to be able to raise our quarterly dividend. And our announcement of our intent to acquire Prudential Bancorp, Inc. later this year will help grow Fulton’s presence in Philadelphia, which is a strategically important market for us.”

Net Interest Income and Balance Sheet

Net interest income for the first quarter of 2022 was $161.3 million, $4.3 million lower than the fourth quarter of 2021. The net interest margin for the first quarter of 2022 increased 1 basis point, to 2.78%, from 2.77% in the fourth quarter of 2021.

The linked-quarter decrease in net interest income was primarily due to a decrease in loan fees related to Paycheck Protection Program (“PPP”) loans, which were $4.4 million in the first quarter of 2022 compared to $10.0 million in the fourth quarter of 2021, partially offset by lower interest expense. The linked-quarter increase in net interest margin was primarily due to an increase in average net loans to $18.4 billion from $18.2 billion coupled with a decrease in lower yielding other interest-earning assets to $1.3 billion from $2.1 billion. The PPP loan balance was $164.3 million and $301.3 million as of March 31, 2022 and December 31, 2021, respectively.

For the first quarter of 2022, net interest income was $161.3 million, a decrease of $3.1 million, or 1.9%, in comparison to the first quarter of 2021. The net interest margin for the first quarter of 2022 decreased 1 basis point, to 2.78% from 2.79% in the first quarter of 2021. The yield on average interest-earning assets declined 15 basis points and the rate on average interest-bearing liabilities declined 20 basis points in the first quarter of 2022 in comparison to the first quarter of 2021.

The year-over-year decrease in net interest income was primarily due to a decline in interest income on loans of $14.4 million, from $165.5 million in the first quarter of 2021 compared to $151.1 million for the first quarter of 2022. The decline in interest income on loans was primarily due to a decline of $15.0 million in PPP loan fees. Interest expense on interest-bearing deposits and long-term borrowings declined by $4.0 million and $4.7 million, respectively, in the first quarter of 2022 in comparison to the first quarter of 2021. The decline in interest expense on interest-bearing deposits in the first quarter of 2022 was primarily due to a decrease in rate of 11 basis points. The decline in interest expense on long-term borrowings in the first quarter of 2022 was driven by a $661.3 million decrease in average balance due to the balance sheet restructuring in the first quarter of 2021, which included the prepayment of $536.0 million of long-term Federal Home Loan Bank (“FHLB”) advances and the cash tender offer for $75 million and $60.0 million of the Corporation’s outstanding subordinated and senior notes, respectively.

Total average interest-earning assets for the first quarter of 2022 was $23.9 billion, a decrease of $382.2 million from the fourth quarter of 2021, primarily due to a decrease of $842.2 million in average other interest-earning assets, partially offset by increases in average taxable investment securities and average net loans of $271.7 million and $162.6 million, respectively.

Total average interest-earning assets for the first quarter of 2022 decreased $388.2 million from the first quarter of 2021. Average net loans for the first quarter of 2022 were $18.4 billion, a decrease of $597.5 million from the same period in 2021. Included in average net loans for the first quarter of 2022 were PPP loans with an average balance of $226.1 million, a decrease of $1.5 billion from the first quarter of 2021. The decrease in average PPP loans for the first quarter of 2022 was partially offset by increases in average residential mortgage loans, average commercial mortgage loans and average real estate construction loans of $703.8 million, $165.9 million and $82.9 million, respectively. Average taxable investment securities increased $635.1 million for the first quarter of 2022 compared to the first quarter of 2021.

Total average interest-bearing liabilities decreased $374.6 million, to $15.1 billion, in the first quarter of 2022 compared to the fourth quarter of 2021, driven by decreases of $268.8 million in demand deposits and $59.6 million in time deposits.

Total average interest-bearing liabilities for the first quarter of 2022 decreased $1.2 billion from the first quarter of 2021, driven by a decrease in total interest-bearing deposits of $395.2 million and a decrease in long-term borrowings of $661.3 million. Average noninterest-bearing deposits increased $758.4 million for the first quarter of 2022 compared to the first quarter of 2021.

On March 21, 2022, the Corporation announced that its Board of Directors approved the repurchase of up to $75 million of shares of Fulton’s common stock commencing on April 1, 2022 and expiring on December 31, 2022.

Asset Quality

In the first quarter of 2022, a negative provision for credit losses of $7.0 million was recognized, as compared to a negative provision for credit losses of $5.0 million in the fourth quarter of 2021, and a negative provision for credit losses of $5.5 million in the first quarter of 2021. The negative provision for credit losses for the first quarter of 2022 was recorded to adjust the allowance for credit losses as a result of improved economic conditions.

Non-performing assets were $163.0 million, or 0.64% of total assets, at March 31, 2022, compared to $153.9 million, or 0.60% of total assets, and $156.1 million, or 0.60% of total assets, at December 31, 2021 and March 31, 2021, respectively.

Annualized net charge-offs (recoveries) for the quarter ended March 31, 2022, were (0.02)% of total average loans, compared to 0.07% and 0.13% for the quarters ended December 31, 2021 and March 31, 2021, respectively.

Non-interest Income

Non-interest income before investment securities gains in the first quarter of 2022 was $55.2 million, a decrease of $8.6 million, or 13.5%, from the fourth quarter of 2021. The decrease in non-interest income was primarily due to declines in income from equity method investments of $4.0 million reflected in other income, mortgage banking income of $2.7 million due to lower gains on sales, and capital markets income of $1.3 million primarily due to lower fee income from commercial customer interest rate swaps, partially offset by an increase of $1.1 million in wealth management income.

Compared to the first quarter of 2021, non-interest income before investment securities gains in the first quarter of 2022 decreased $6.7 million, or 10.8%, from $61.9 million. The decrease in non-interest income was primarily due to a $9.4 million decrease in mortgage banking income due to lower gains on sale, partially offset by a $2.1 million increase in wealth management income.

In the first quarter of 2021, Fulton completed balance sheet restructurings involving sales of investment securities and corresponding prepayments of FHLB advances, subordinated debt and senior notes. The balance sheet restructuring involved gains on sales of Visa, Inc. Class B restricted shares of $34.0 million that were offset in non-interest expense by debt extinguishment of costs of $33.2 million.

Non-interest Expense

Non-interest expense was $146.0 million in the first quarter of 2022, a decrease of $8.0 million, or 5.2%, compared to the fourth quarter of 2021. The decrease was primarily due to decreases in charitable contributions and donations of $2.2 million, state-related taxes of $1.7 million and a net gain for owned fixed assets of $1.5 million, all reflected in other expense. Additionally, the decrease in non-interest expense was also driven by decreases in other outside services of $1.5 million and salaries and benefits of $1.0 million. Included in non-interest expense was $0.4 million for merger-related expenses associated with the pending acquisition of Prudential Bancorp, Inc.

Compared to the first quarter of 2021, non-interest expense decreased $32.4 million, or 18.2%, in the first quarter of 2022, primarily due to debt extinguishment costs of $33.2 million related to the prepayment of FHLB advances, subordinated debt and senior notes during the first quarter of 2021.

Income Tax Expense

For the first quarter of 2022, the effective tax rate was moderately lower at 17.1%, compared to 17.6% for the full-year of 2021.

Additional information on Fulton is available on the Internet at www.fultonbank.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, 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, 2021 and other current and periodic reports, which have been or will be filed with the Securities and Exchange Commission (the “SEC”), including the risks, uncertainties and assumptions regarding the Corporation’s pending acquisition of Prudential Bancorp, Inc. set forth under the heading “Safe Harbor Statement” in the Corporation’s Current Report on Form 8-K filed on March 2, 2022, 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 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 (GAAP: Generally Accepted Accounting Principles).

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

 

SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)

 

 

 

 

 

 

 

in thousands, except per-share data and percentages

 

 

 

 

 

 

 

 

Three months ended

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

2022

 

2021

 

2021

 

2021

 

2021

 

Ending Balances

 

 

 

 

 

 

 

 

 

 

Investments

$

4,288,674

 

 

$

4,167,774

 

 

$

4,000,760

 

 

$

3,921,658

 

 

$

3,612,010

 

 

Net loans

 

18,476,119

 

 

 

18,325,350

 

 

 

18,269,407

 

 

 

18,586,756

 

 

 

18,990,986

 

 

Total assets

 

25,598,310

 

 

 

25,796,398

 

 

 

26,390,832

 

 

 

26,079,774

 

 

 

25,892,990

 

 

Deposits

 

21,541,174

 

 

 

21,573,499

 

 

 

22,074,041

 

 

 

21,724,312

 

 

 

21,633,838

 

 

Shareholders’ equity

 

2,569,535

 

 

 

2,712,680

 

 

 

2,699,818

 

 

 

2,692,958

 

 

 

2,629,655

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances

 

 

 

 

 

 

 

 

 

 

Investments

$

4,228,827

 

 

$

3,980,045

 

 

$

3,914,627

 

 

$

3,670,333

 

 

$

3,448,166

 

 

Net loans

 

18,383,118

 

 

 

18,220,550

 

 

 

18,414,153

 

 

 

18,906,556

 

 

 

18,980,586

 

 

Total assets

 

25,622,462

 

 

 

26,136,536

 

 

 

26,440,876

 

 

 

26,017,542

 

 

 

26,082,816

 

 

Deposits

 

21,480,183

 

 

 

21,876,938

 

 

 

22,123,480

 

 

 

21,765,601

 

 

 

21,117,024

 

 

Shareholders’ equity

 

2,688,834

 

 

 

2,713,198

 

 

 

2,722,833

 

 

 

2,669,413

 

 

 

2,637,098

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement

 

 

 

 

 

 

 

 

 

 

Net interest income

$

161,310

 

 

$

165,613

 

 

$

171,270

 

 

$

162,399

 

 

$

164,448

 

 

Provision for credit losses

 

(6,950

)

 

 

(5,000

)

 

 

(600

)

 

 

(3,500

)

 

 

(5,500

)

 

Non-interest income

 

55,256

 

 

 

63,881

 

 

 

62,577

 

 

 

51,890

 

 

 

95,397

 

 

Non-interest expense

 

145,978

 

 

 

154,019

 

 

 

144,596

 

 

 

140,831

 

 

 

178,384

 

 

Income before taxes

 

77,538

 

 

 

80,475

 

 

 

89,851

 

 

 

76,958

 

 

 

86,961

 

 

Net income available to common shareholders

 

61,726

 

 

 

59,325

 

 

 

73,021

 

 

 

62,402

 

 

 

70,472

 

 

Pre-provision net revenue(1)

 

71,842

 

 

 

77,837

 

 

 

90,947

 

 

 

75,575

 

 

 

81,795

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (basic)

$

0.38

 

 

$

0.37

 

 

$

0.45

 

 

$

0.38

 

 

$

0.43

 

 

Net income available to common shareholders (diluted)

$

0.38

 

 

$

0.37

 

 

$

0.45

 

 

$

0.38

 

 

$

0.43

 

 

Cash dividends

$

0.15

 

 

$

0.22

 

 

$

0.14

 

 

$

0.14

 

 

$

0.14

 

 

Common shareholders’ equity

$

14.79

 

 

$

15.70

 

 

$

15.53

 

 

$

15.34

 

 

$

14.99

 

 

Common shareholders’ equity (tangible)(1)

$

11.44

 

 

$

12.35

 

 

$

12.21

 

 

$

12.05

 

 

$

11.69

 

 

Weighted average shares (basic)

 

160,588

 

 

 

161,210

 

 

 

162,506

 

 

 

162,785

 

 

 

162,441

 

 

Weighted average shares (diluted)

 

161,911

 

 

 

162,355

 

 

 

163,456

 

 

 

163,858

 

 

 

163,737

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

2022

 

2021

 

2021

 

2021

 

2021

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

Net (recoveries) charge offs to average loans (annualized)

 

(0.02

)%

 

 

0.07

%

 

 

(0.05

)%

 

 

0.15

%

 

 

0.13

%

 

Non-performing loans to total loans

 

0.87

%

 

 

0.83

%

 

 

0.82

%

 

 

0.83

%

 

 

0.80

%

 

Non-performing assets to total assets

 

0.64

%

 

 

0.60

%

 

 

0.58

%

 

 

0.60

%

 

 

0.60

%

 

ACL – loans(2) to total loans

 

1.32

%

 

 

1.36

%

 

 

1.41

%

 

 

1.37

%

 

 

1.40

%

 

ACL – loans(2) to non-performing loans

 

151

%

 

 

164

%

 

 

171

%

 

 

166

%

 

 

174

%

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality, excluding PPP(1)(3)

 

 

 

 

 

 

 

 

 

 

Net (recoveries) charge offs to adjusted average loans (annualized)

 

(0.02

)%

 

 

0.07

%

 

 

(0.05

)%

 

 

0.16

%

 

 

0.14

%

 

Non-performing loans to total adjusted loans

 

0.88

%

 

 

0.84

%

 

 

0.85

%

 

 

0.88

%

 

 

0.88

%

 

ACL – loans(2) to total adjusted loans

 

1.33

%

 

 

1.38

%

 

 

1.45

%

 

 

1.46

%

 

 

1.54

%

 

 

 

 

 

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.02

%

 

 

0.94

%

 

 

1.13

%

 

 

1.00

%

 

 

1.14

%

 

Return on average common shareholders’ equity

 

10.03

%

 

 

9.34

%

 

 

11.45

%

 

 

10.01

%

 

 

11.73

%

 

Return on average common shareholders’ equity (tangible)(1)

 

12.88

%

 

 

11.89

%

 

 

14.56

%

 

 

12.93

%

 

 

15.00

%

 

Net interest margin

 

2.78

%

 

 

2.77

%

 

 

2.82

%

 

 

2.73

%

 

 

2.79

%

 

Efficiency ratio(1)

 

65.8

%

 

 

65.2

%

 

 

60.3

%

 

 

63.8

%

 

 

63.0

%

 

Non-interest expenses to total average assets(1)

 

2.29

%

 

 

2.30

%

 

 

2.14

%

 

 

2.14

%

 

 

2.25

%

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

Tangible common equity ratio(1)

 

7.3

%

 

 

7.8

%

 

 

7.6

%

 

 

7.7

%

 

 

7.5

%

 

Tier 1 leverage ratio(4)

 

8.9

%

 

 

8.6

%

 

 

8.4

%

 

 

8.5

%

 

 

8.2

%

 

Common equity Tier 1 capital ratio(4)

 

10.0

%

 

 

9.9

%

 

 

10.1

%

 

 

10.0

%

 

 

9.7

%

 

Tier 1 risk-based capital ratio(4)

 

10.9

%

 

 

10.9

%

 

 

11.1

%

 

 

11.0

%

 

 

10.7

%

 

Total risk-based capital ratio(4)

 

13.8

%

 

 

14.1

%

 

 

14.4

%

 

 

14.5

%

 

 

14.3

%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(2) “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.

 

(3) Asset quality information excluding Paycheck Protection Program (“PPP”) loans. Refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this document.

 

(4) Regulatory capital ratios as of March 31, 2022 are preliminary and prior periods are actual.

 

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

 

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change from

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Mar 31

 

 

2022

 

2021

 

2021

 

2021

 

2021

 

2021

 

2021

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

161,462

 

 

$

172,276

 

 

$

260,564

 

 

$

143,002

 

 

$

102,570

 

 

(6.3

)%

 

57.4

%

 

Other interest-earning assets

 

1,054,232

 

 

 

1,523,973

 

 

 

2,271,738

 

 

 

1,823,688

 

 

 

1,625,515

 

 

(30.8

)%

 

(35.1

)%

 

Loans held for sale

 

27,675

 

 

 

35,768

 

 

 

43,123

 

 

 

41,924

 

 

 

34,092

 

 

(22.6

)%

 

(18.8

)%

 

Investment securities

 

4,288,674

 

 

 

4,167,774

 

 

 

4,000,760

 

 

 

3,921,658

 

 

 

3,612,010

 

 

2.9

%

 

18.7

%

 

Net loans

 

18,476,119

 

 

 

18,325,350

 

 

 

18,269,407

 

 

 

18,586,756

 

 

 

18,990,986

 

 

0.8

%

 

(2.7

)%

 

Less: ACL – loans(1)

 

(243,705

)

 

 

(249,001

)

 

 

(256,727

)

 

 

(255,032

)

 

 

(265,986

)

 

(2.1

)%

 

(8.4

)%

 

Loans, net

 

18,232,414

 

 

 

18,076,349

 

 

 

18,012,680

 

 

 

18,331,724

 

 

 

18,725,000

 

 

0.9

%

 

(2.6

)%

 

Net, premises and equipment

 

218,257

 

 

 

220,357

 

 

 

228,179

 

 

 

228,353

 

 

 

229,035

 

 

(1.0

)%

 

(4.7

)%

 

Accrued interest receivable

 

55,102

 

 

 

57,451

 

 

 

57,902

 

 

 

63,232

 

 

 

65,649

 

 

(4.1

)%

 

(16.1

)%

 

Goodwill and intangible assets

 

537,877

 

 

 

538,053

 

 

 

536,697

 

 

 

536,847

 

 

 

536,544

 

 

%

 

0.2

%

 

Other assets

 

1,022,617

 

 

 

1,004,397

 

 

 

979,189

 

 

 

989,346

 

 

 

962,575

 

 

1.8

%

 

6.2

%

 

Total Assets

$

25,598,310

 

 

$

25,796,398

 

 

$

26,390,832

 

 

$

26,079,774

 

 

$

25,892,990

 

 

(0.8

)%

 

(1.1

)%

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

21,541,174

 

 

$

21,573,499

 

 

$

22,074,041

 

 

$

21,724,312

 

 

$

21,633,838

 

 

(0.1

)%

 

(0.4

)%

 

Short-term borrowings

 

452,440

 

 

 

416,764

 

 

 

468,967

 

 

 

533,749

 

 

 

520,989

 

 

8.6

%

 

(13.2

)%

 

Other liabilities

 

478,667

 

 

 

472,110

 

 

 

520,620

 

 

 

501,542

 

 

 

482,101

 

 

1.4

%

 

(0.7

)%

 

Long-term borrowings

 

556,494

 

 

 

621,345

 

 

 

627,386

 

 

 

627,213

 

 

 

626,407

 

 

(10.4

)%

 

(11.2

)%

 

Total Liabilities

 

23,028,775

 

 

 

23,083,718

 

 

 

23,691,014

 

 

 

23,386,816

 

 

 

23,263,335

 

 

(0.2

)%

 

(1.0

)%

 

Shareholders’ equity

 

2,569,535

 

 

 

2,712,680

 

 

 

2,699,818

 

 

 

2,692,958

 

 

 

2,629,655

 

 

(5.3

)%

 

(2.3

)%

 

Total Liabilities and Shareholders’ Equity

$

25,598,310

 

 

$

25,796,398

 

 

$

26,390,832

 

 

$

26,079,774

 

 

$

25,892,990

 

 

(0.8

)%

 

(1.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

 

 

 

 

 

 

 

 

 

 

Loans, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate – commercial mortgage

$

7,289,376

 

 

$

7,279,080

 

 

$

7,145,115

 

 

$

7,152,932

 

 

$

7,142,137

 

 

0.1

%

 

2.1

%

 

Commercial and industrial

 

3,992,285

 

 

 

3,906,791

 

 

 

3,863,154

 

 

 

3,870,462

 

 

 

3,986,858

 

 

2.2

%

 

0.1

%

 

Real estate – residential mortgage

 

3,946,741

 

 

 

3,846,750

 

 

 

3,719,684

 

 

 

3,555,897

 

 

 

3,254,058

 

 

2.6

%

 

21.3

%

 

Real estate – home equity

 

1,098,171

 

 

 

1,118,248

 

 

 

1,126,628

 

 

 

1,136,128

 

 

 

1,149,958

 

 

(1.8

)%

 

(4.5

)%

 

Real estate – construction

 

1,210,340

 

 

 

1,139,779

 

 

 

1,111,487

 

 

 

1,070,755

 

 

 

1,083,494

 

 

6.2

%

 

11.7

%

 

Consumer

 

481,551

 

 

 

464,657

 

 

 

458,595

 

 

 

448,433

 

 

 

451,857

 

 

3.6

%

 

6.6

%

 

Equipment lease financing

 

253,521

 

 

 

236,344

 

 

 

242,967

 

 

 

252,158

 

 

 

260,907

 

 

7.3

%

 

(2.8

)%

 

Other(2)

 

39,857

 

 

 

32,448

 

 

 

11,330

 

 

 

(14,410

)

 

 

(26,677

)

 

22.8

%

 

N/M

 

 

Net loans before PPP

 

18,311,842

 

 

 

18,024,097

 

 

 

17,678,960

 

 

 

17,472,355

 

 

 

17,302,592

 

 

1.6

%

 

5.8

%

 

PPP

 

164,277

 

 

 

301,253

 

 

 

590,447

 

 

 

1,114,401

 

 

 

1,688,394

 

 

(45.5

)%

 

(90.3

)%

 

Total Net Loans

$

18,476,119

 

 

$

18,325,350

 

 

$

18,269,407

 

 

$

18,586,756

 

 

$

18,990,986

 

 

0.8

%

 

(2.7

)%

Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

7,528,391

 

 

$

7,370,963

 

 

$

7,434,155

 

 

$

7,442,132

 

 

$

7,046,116

 

 

2.1

%

 

6.8

%

 

Interest-bearing demand

 

5,625,286

 

 

 

5,819,539

 

 

 

6,187,096

 

 

 

5,795,404

 

 

 

5,959,909

 

 

(3.3

)%

 

(5.6

)%

 

Savings

 

6,479,196

 

 

 

6,403,995

 

 

 

6,401,619

 

 

 

6,276,554

 

 

 

6,244,513

 

 

1.2

%

 

3.8

%

 

Total demand and savings

 

19,632,873

 

 

 

19,594,497

 

 

 

20,022,870

 

 

 

19,514,090

 

 

 

19,250,538

 

 

0.2

%

 

2.0

%

 

Brokered

 

248,833

 

 

 

251,526

 

 

 

262,617

 

 

 

277,444

 

 

 

309,873

 

 

(1.1

)%

 

(19.7

)%

 

Time

 

1,659,468

 

 

 

1,727,476

 

 

 

1,788,554

 

 

 

1,932,778

 

 

 

2,073,427

 

 

(3.9

)%

 

(20.0

)%

 

Total Deposits

$

21,541,174

 

 

$

21,573,499

 

 

$

22,074,041

 

 

$

21,724,312

 

 

$

21,633,838

 

 

(0.1

)%

 

(0.4

)%

Short-term borrowings, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer funding

$

452,440

 

 

$

416,764

 

 

$

468,967

 

 

$

533,749

 

 

$

520,989

 

 

8.6

%

 

(13.2

)%

 

Total Short-Term Borrowings

$

452,440

 

 

$

416,764

 

 

$

468,967

 

 

$

533,749

 

 

$

520,989

 

 

8.6

%

 

(13.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(2) Consists of overdrafts and net origination fees and costs.

 

N/M – Not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

FULTON FINANCIAL CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

dollars in thousands

 

 

 

 

 

Three Months Ended

 

% Change from

 

 

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Mar 31

 

 

 

 

 

2022

 

2021

 

2021

 

2021

 

2021

 

2021

 

2021

 

Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

$

173,001

 

 

$

177,724

 

 

$

184,079

 

 

$

176,673

 

 

$

184,937

 

 

(2.7

)%

 

(6.5

)%

 

 

Interest expense

 

 

 

11,691

 

 

 

12,111

 

 

 

12,809

 

 

 

14,274

 

 

 

20,488

 

 

(3.5

)%

 

(42.9

)%

 

 

Net Interest Income

 

 

 

161,310

 

 

 

165,613

 

 

 

171,270

 

 

 

162,399

 

 

 

164,449

 

 

(2.6

)%

 

(1.9

)%

 

 

Provision for credit losses

 

 

 

(6,950

)

 

 

(5,000

)

 

 

(600

)

 

 

(3,500

)

 

 

(5,500

)

 

39.0

%

 

26.4

%

 

 

Net Interest Income after Provision

 

 

 

168,260

 

 

 

170,613

 

 

 

171,870

 

 

 

165,899

 

 

 

169,949

 

 

(1.4

)%

 

(1.0

)%

 

Non-Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchant and card

 

 

 

6,097

 

 

 

6,588

 

 

 

6,979

 

 

 

6,786

 

 

 

5,768

 

 

(7.5

)%

 

5.7

%

 

 

Cash management

 

 

 

5,428

 

 

 

5,318

 

 

 

5,285

 

 

 

5,341

 

 

 

4,921

 

 

2.1

%

 

10.3

%

 

 

Capital markets

 

 

 

1,676

 

 

 

2,982

 

 

 

2,063

 

 

 

1,536

 

 

 

2,800

 

 

(43.8

)%

 

(40.1

)%

 

 

Other commercial banking

 

 

 

2,807

 

 

 

3,592

 

 

 

2,411

 

 

 

3,466

 

 

 

2,853

 

 

(21.9

)%

 

(1.6

)%

 

 

Total commercial banking

 

 

 

16,008

 

 

 

18,480

 

 

 

16,738

 

 

 

17,129

 

 

 

16,342

 

 

(13.4

)%

 

(2.0

)%

 

 

Consumer banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Card

 

 

 

5,796

 

 

 

5,953

 

 

 

5,941

 

 

 

5,733

 

 

 

5,878

 

 

(2.6

)%

 

(1.4

)%

 

 

Overdraft

 

 

 

3,772

 

 

 

3,896

 

 

 

3,474

 

 

 

2,750

 

 

 

2,724

 

 

(3.2

)%

 

38.5

%

 

 

Other consumer banking

 

 

 

2,106

 

 

 

2,280

 

 

 

2,386

 

 

 

2,377

 

 

 

2,152

 

 

(7.6

)%

 

(2.1

)%

 

 

Total consumer banking

 

 

 

11,674

 

 

 

12,129

 

 

 

11,801

 

 

 

10,860

 

 

 

10,754

 

 

(3.8

)%

 

8.6

%

 

 

Wealth management

 

 

 

19,428

 

 

 

18,285

 

 

 

18,532

 

 

 

17,634

 

 

 

17,347

 

 

6.3

%

 

12.0

%

 

 

Mortgage banking

 

 

 

4,576

 

 

 

7,243

 

 

 

9,535

 

 

 

2,838

 

 

 

13,960

 

 

(36.8

)%

 

(67.2

)%

 

 

Other

 

 

 

3,551

 

 

 

7,739

 

 

 

5,971

 

 

 

3,393

 

 

 

3,518

 

 

(54.1

)%

 

0.9

%

 

 

Non-interest income before

investment securities gains

 

 

 

55,237

 

 

 

63,876

 

 

 

62,577

 

 

 

51,854

 

 

 

61,921

 

 

(13.5

)%

 

(10.8

)%

 

 

Investment securities gains, net

 

 

 

19

 

 

 

5

 

 

 

 

 

 

36

 

 

 

33,475

 

 

N/M

 

 

(99.9

)%

 

 

Total Non-Interest Income

 

 

 

55,256

 

 

 

63,881

 

 

 

62,577

 

 

 

51,890

 

 

 

95,396

 

 

(13.5

)%

 

(42.1

)%

 

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

 

84,464

 

 

 

85,506

 

 

 

82,679

 

 

 

78,367

 

 

 

82,586

 

 

(1.2

)%

 

2.3

%

 

 

Net occupancy

 

 

 

14,522

 

 

 

14,366

 

 

 

12,957

 

 

 

12,494

 

 

 

13,982

 

 

1.1

%

 

3.9

%

 

 

Data processing and software

 

 

 

14,315

 

 

 

14,612

 

 

 

14,335

 

 

 

13,932

 

 

 

13,561

 

 

(2.0

)%

 

5.6

%

 

 

Other outside services

 

 

 

8,167

 

 

 

9,637

 

 

 

7,889

 

 

 

8,178

 

 

 

8,490

 

 

(15.3

)%

 

(3.8

)%

 

 

Equipment

 

 

 

3,423

 

 

 

3,539

 

 

 

3,416

 

 

 

3,424

 

 

 

3,428

 

 

(3.3

)%

 

(0.1

)%

 

 

FDIC insurance

 

 

 

3,209

 

 

 

3,032

 

 

 

2,727

 

 

 

2,282

 

 

 

2,624

 

 

5.8

%

 

22.3

%

 

 

Professional fees

 

 

 

1,792

 

 

 

1,946

 

 

 

2,271

 

 

 

2,651

 

 

 

2,779

 

 

(7.9

)%

 

(35.5

)%

 

 

Marketing

 

 

 

1,320

 

 

 

1,477

 

 

 

1,448

 

 

 

1,348

 

 

 

1,002

 

 

(10.6

)%

 

31.7

%

 

 

Intangible amortization

 

 

 

176

 

 

 

146

 

 

 

150

 

 

 

178

 

 

 

115

 

 

20.5

%

 

53.0

%

 

 

Debt extinguishment

 

 

 

 

 

 

674

 

 

 

 

 

 

412

 

 

 

32,163

 

 

(100.0

)%

 

(100.0

)%

 

 

Merger-related expenses

 

 

 

401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N/M

 

 

N/M

 

 

 

Other

 

 

 

14,189

 

 

 

19,084

 

 

 

16,724

 

 

 

17,565

 

 

 

17,654

 

 

(25.6

)%

 

(19.6

)%

 

 

Total Non-Interest Expense

 

 

 

145,978

 

 

 

154,019

 

 

 

144,596

 

 

 

140,831

 

 

 

178,384

 

 

(5.2

)%

 

(18.2

)%

 

 

Income Before Income Taxes

 

 

 

77,538

 

 

 

80,475

 

 

 

89,851

 

 

 

76,958

 

 

 

86,961

 

 

(3.6

)%

 

(10.8

)%

 

 

Income tax expense

 

 

 

13,250

 

 

 

18,588

 

 

 

14,268

 

 

 

11,994

 

 

 

13,898

 

 

(28.7

)%

 

(4.7

)%

 

 

Net Income

 

 

 

64,288

 

 

 

61,887

 

 

 

75,583

 

 

 

64,964

 

 

 

73,063

 

 

3.9

%

 

(12.0

)%

 

 

Preferred stock dividends

 

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,591

)

 

%

 

1.1

%

 

 

Net Income Available to Common

Shareholders

 

 

$

61,726

 

 

$

59,325

 

 

$

73,021

 

 

$

62,402

 

 

$

70,472

 

 

4.0

%

 

(12.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

$

0.38

 

 

$

0.37

 

 

$

0.45

 

 

$

0.38

 

 

$

0.43

 

 

2.7

%

 

(11.6

)%

 

 

Diluted

 

 

$

0.38

 

 

$

0.37

 

 

$

0.45

 

 

$

0.38

 

 

$

0.43

 

 

2.7

%

 

(11.6

)%

 

 

Cash dividends

 

 

$

0.15

 

 

$

0.22

 

 

$

0.14

 

 

$

0.14

 

 

$

0.14

 

 

(31.8

)%

 

7.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

 

 

160,588

 

 

 

161,210

 

 

 

162,506

 

 

 

162,785

 

 

 

162,441

 

 

(0.4

)%

 

(1.1

)%

 

 

Weighted average shares (diluted)

 

 

 

161,911

 

 

 

162,355

 

 

 

163,456

 

 

 

163,858

 

 

 

163,737

 

 

(0.3

)%

 

(1.1

)%

 

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

Three months ended

 

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

 

 

Average

 

Interest

 

Yield/

 

Average

 

Interest

 

Yield/

 

Average

 

Interest

 

Yield/

 

 

Balance

 

(1)

 

Rate

 

Balance

 

(1)

 

Rate

 

Balance

 

(1)

 

Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans

$

18,383,118

 

 

$

151,127

 

 

3.32

%

 

$

18,220,550

 

 

$

159,057

 

 

3.47

%

 

$

18,980,586

 

 

$

165,462

 

 

3.53

%

 

Taxable investment securities

 

3,073,643

 

 

 

15,213

 

 

1.71

%

 

 

2,801,934

 

 

 

14,006

 

 

1.75

%

 

 

2,438,496

 

 

 

13,691

 

 

2.08

%

 

Tax-exempt investment securities

 

1,152,709

 

 

 

9,038

 

 

3.13

%

 

 

1,120,263

 

 

 

8,418

 

 

3.00

%

 

 

911,648

 

 

 

7,156

 

 

3.13

%

 

Total Investment Securities

 

4,226,352

 

 

 

24,251

 

 

2.29

%

 

 

3,922,197

 

 

 

22,424

 

 

2.29

%

 

 

3,350,144

 

 

 

20,847

 

 

2.49

%

 

Loans held for sale

 

28,549

 

 

 

241

 

 

3.37

%

 

 

35,235

 

 

 

333

 

 

3.77

%

 

 

53,465

 

 

 

471

 

 

3.53

%

 

Other interest-earning assets

 

1,258,174

 

 

 

671

 

 

0.22

%

 

 

2,100,392

 

 

 

(905

)

 

(0.19

)%

 

 

1,900,199

 

 

 

1,136

 

 

0.24

%

 

Total Interest-Earning Assets

 

23,896,193

 

 

 

176,290

 

 

2.98

%

 

 

24,278,374

 

 

 

180,909

 

 

2.96

%

 

 

24,284,394

 

 

 

187,916

 

 

3.13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

162,320

 

 

 

 

 

 

 

211,958

 

 

 

 

 

 

 

120,181

 

 

 

 

 

 

Premises and equipment

 

219,932

 

 

 

 

 

 

 

226,319

 

 

 

 

 

 

 

230,649

 

 

 

 

 

 

Other assets

 

1,595,039

 

 

 

 

 

 

 

1,677,028

 

 

 

 

 

 

 

1,728,473

 

 

 

 

 

 

Less: ACL – loans(2)

 

(251,022

)

 

 

 

 

 

 

(257,143

)

 

 

 

 

 

 

(280,881

)

 

 

 

 

 

Total Assets

$

25,622,462

 

 

 

 

 

 

$

26,136,536

 

 

 

 

 

 

$

26,082,816

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

5,664,987

 

 

$

728

 

 

0.05

%

 

$

5,933,780

 

 

$

756

 

 

0.05

%

 

$

5,832,174

 

 

$

1,160

 

 

0.08

%

 

Savings deposits

 

6,436,548

 

 

 

1,021

 

 

0.06

%

 

 

6,413,638

 

 

 

992

 

 

0.06

%

 

 

6,137,084

 

 

 

1,526

 

 

0.10

%

 

Brokered deposits

 

250,350

 

 

 

216

 

 

0.35

%

 

 

256,192

 

 

 

220

 

 

0.34

%

 

 

324,364

 

 

 

395

 

 

0.49

%

 

Time deposits

 

1,697,063

 

 

 

3,640

 

 

0.87

%

 

 

1,756,672

 

 

 

3,928

 

 

0.89

%

 

 

2,150,570

 

 

 

6,521

 

 

1.23

%

 

Total Interest-Bearing Deposits

 

14,048,948

 

 

 

5,605

 

 

0.16

%

 

 

14,360,282

 

 

 

5,896

 

 

0.16

%

 

 

14,444,192

 

 

 

9,602

 

 

0.27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

423,949

 

 

 

121

 

 

0.12

%

 

 

474,022

 

 

 

128

 

 

0.11

%

 

 

570,775

 

 

 

188

 

 

0.13

%

 

Long-term borrowings

 

609,866

 

 

 

5,966

 

 

3.91

%

 

 

623,073

 

 

 

6,088

 

 

3.91

%

 

 

1,271,170

 

 

 

10,698

 

 

3.38

%

 

Total Interest-Bearing Liabilities

 

15,082,763

 

 

 

11,692

 

 

0.31

%

 

 

15,457,377

 

 

 

12,112

 

 

0.31

%

 

 

16,286,137

 

 

 

20,488

 

 

0.51

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

7,431,235

 

 

 

 

 

 

 

7,516,656

 

 

 

 

 

 

 

6,672,832

 

 

 

 

 

 

Other

 

419,630

 

 

 

 

 

 

 

449,305

 

 

 

 

 

 

 

486,749

 

 

 

 

 

 

Total Liabilities

 

22,933,628

 

 

 

 

 

 

 

23,423,338

 

 

 

 

 

 

 

23,445,718

 

 

 

 

 

 

Total Deposits/Cost of Deposits

 

21,480,183

 

 

 

 

0.11

%

 

 

21,876,938

 

 

 

 

0.11

%

 

 

21,117,024

 

 

 

 

0.18

%

 

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

 

22,513,998

 

 

 

 

0.21

%

 

 

22,974,033

 

 

 

 

0.21

%

 

 

22,958,969

 

 

 

 

0.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

2,688,834

 

 

 

 

 

 

 

2,713,198

 

 

 

 

 

 

 

2,637,098

 

 

 

 

 

 

Total Liabilities and Shareholders’ Equity

$

25,622,462

 

 

 

 

 

 

$

26,136,536

 

 

 

 

 

 

$

26,082,816

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

164,598

 

 

2.78

%

 

 

 

 

168,797

 

 

2.77

%

 

 

 

 

167,428

 

 

2.79

%

 

Tax equivalent adjustment

 

 

 

(3,288

)

 

 

 

 

 

 

(3,184

)

 

 

 

 

 

 

(2,979

)

 

 

 

Net Interest Income

 

 

$

161,310

 

 

 

 

 

 

$

165,613

 

 

 

 

 

 

$

164,449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(2) “ACL – loans” relates to the ACL specifically on “Net Loans” and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):

dollars in thousands

 

 

Three months ended

 

% Change from

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Mar 31

 

 

2022

 

2021

 

2021

 

2021

 

2021

 

2021

 

2021

Loans, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate – commercial mortgage

$

7,294,914

 

$

7,157,906

 

$

7,134,177

 

 

$

7,177,622

 

 

$

7,128,997

 

 

1.9

%

 

2.3

%

 

Commercial and industrial

 

3,986,900

 

 

3,898,559

 

 

3,878,767

 

 

 

3,920,771

 

 

 

4,033,367

 

 

2.3

%

 

(1.2

)%

 

Real estate – residential mortgage

 

3,887,428

 

 

3,773,156

 

 

3,642,822

 

 

 

3,396,690

 

 

 

3,183,585

 

 

3.0

%

 

22.1

%

 

Real estate – home equity

 

1,106,319

 

 

1,122,042

 

 

1,128,076

 

 

 

1,139,558

 

 

 

1,175,218

 

 

(1.4

)%

 

(5.9

)%

 

Real estate – construction

 

1,137,649

 

 

1,117,592

 

 

1,085,846

 

 

 

1,054,469

 

 

 

1,054,718

 

 

1.8

%

 

7.9

%

 

Consumer

 

471,129

 

 

462,346

 

 

452,844

 

 

 

451,486

 

 

 

459,038

 

 

1.9

%

 

2.6

%

 

Equipment lease financing

 

236,388

 

 

238,349

 

 

247,776

 

 

 

256,248

 

 

 

266,405

 

 

(0.8

)%

 

(11.3

)%

 

Other(1)

 

36,277

 

 

15,558

 

 

(6,773

)

 

 

(14,677

)

 

 

(9,455

)

 

133.2

%

 

N/M

 

 

Net loans before PPP

 

18,157,004

 

 

17,785,508

 

 

17,563,535

 

 

 

17,382,167

 

 

 

17,291,873

 

 

2.1

%

 

5.0

%

 

PPP

 

226,114

 

 

435,042

 

 

850,618

 

 

 

1,524,389

 

 

 

1,688,713

 

 

(48.0

)%

 

(86.6

)%

 

Total Net Loans

$

18,383,118

 

$

18,220,550

 

$

18,414,153

 

 

$

18,906,556

 

 

$

18,980,586

 

 

0.9

%

 

(3.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

7,431,235

 

$

7,516,656

 

$

7,439,644

 

 

$

7,203,696

 

 

$

6,672,832

 

 

(1.1

)%

 

11.4

%

 

Interest-bearing demand

 

5,664,987

 

 

5,933,780

 

 

6,168,908

 

 

 

5,979,855

 

 

 

5,832,174

 

 

(4.5

)%

 

(2.9

)%

 

Savings

 

6,436,548

 

 

6,413,638

 

 

6,392,537

 

 

 

6,280,629

 

 

 

6,137,084

 

 

0.4

%

 

4.9

%

 

Total demand and savings

 

19,532,770

 

 

19,864,074

 

 

20,001,089

 

 

 

19,464,180

 

 

 

18,642,090

 

 

(1.7

)%

 

4.8

%

 

Brokered

 

250,350

 

 

256,192

 

 

270,168

 

 

 

297,815

 

 

 

324,364

 

 

(2.3

)%

 

(22.8

)%

 

Time

 

1,697,063

 

 

1,756,672

 

 

1,852,223

 

 

 

2,003,606

 

 

 

2,150,570

 

 

(3.4

)%

 

(21.1

)%

 

Total Deposits

$

21,480,183

 

$

21,876,938

 

$

22,123,480

 

 

$

21,765,601

 

 

$

21,117,024

 

 

(1.8

)%

 

1.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer funding

$

423,949

 

$

474,022

 

$

494,811

 

 

$

514,025

 

 

$

570,775

 

 

(10.6

)%

 

(25.7

)%

 

Total Short-Term borrowings

$

423,949

 

$

474,022

 

$

494,811

 

 

$

514,025

 

 

$

570,775

 

 

(10.6

)%

 

(25.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Consists of overdrafts 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

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

Allowance for credit losses related to net loans:

 

 

 

 

 

 

 

 

Balance at beginning of period

$

249,001

 

 

$

256,727

 

 

$

255,032

 

 

$

265,986

 

 

$

277,567

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

(227

)

 

 

(9,417

)

 

 

(647

)

 

 

(954

)

 

 

(4,319

)

 

Real estate – commercial mortgage

 

(152

)

 

 

(369

)

 

 

(14

)

 

 

(6,506

)

 

 

(1,837

)

 

Consumer and home equity

 

(1,052

)

 

 

(828

)

 

 

(504

)

 

 

(1,130

)

 

 

(847

)

 

Real estate – residential mortgage

 

 

 

 

 

 

 

(602

)

 

 

(496

)

 

 

(192

)

 

Real estate – construction

 

 

 

 

 

 

 

 

 

 

 

 

 

(39

)

 

Equipment lease financing and other

 

(469

)

 

 

(380

)

 

 

(467

)

 

 

(436

)

 

 

(968

)

 

Total loans charged off

 

(1,900

)

 

 

(10,994

)

 

 

(2,234

)

 

 

(9,522

)

 

 

(8,202

)

Recoveries of loans previously charged off:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

1,980

 

 

 

5,795

 

 

 

2,330

 

 

 

693

 

 

 

769

 

 

Real estate – commercial mortgage

 

112

 

 

 

1,007

 

 

 

564

 

 

 

729

 

 

 

174

 

 

Consumer and home equity

 

454

 

 

 

767

 

 

 

504

 

 

 

634

 

 

 

440

 

 

Real estate – residential mortgage

 

222

 

 

 

89

 

 

 

86

 

 

 

105

 

 

 

95

 

 

Real estate – construction

 

32

 

 

 

77

 

 

 

697

 

 

 

254

 

 

 

384

 

 

Equipment lease financing and other

 

154

 

 

 

283

 

 

 

358

 

 

 

153

 

 

 

159

 

 

Recoveries of loans previously charged off

 

2,954

 

 

 

8,018

 

 

 

4,539

 

 

 

2,568

 

 

 

2,021

 

Net loans recovered (charged off)

 

1,054

 

 

 

(2,976

)

 

 

2,305

 

 

 

(6,954

)

 

 

(6,181

)

Provision for credit losses

 

(6,350

)

 

 

(4,750

)

 

 

(610

)

 

 

(4,000

)

 

 

(5,400

)

Balance at end of period

$

243,705

 

 

$

249,001

 

 

$

256,727

 

 

$

255,032

 

 

$

265,986

 

Net (recoveries) charge offs to average loans (annualized)

 

(0.02

) %

 

 

0.07

%

 

 

(0.05

) %

 

 

0.15

%

 

 

0.13

%

 

 

 

 

 

 

 

 

 

 

 

Allowance credit losses related to OBS Credit Exposures(1)

 

 

 

 

 

 

Balance at beginning of period

$

14,533

 

 

$

14,783

 

 

$

14,773

 

 

$

14,273

 

 

$

14,373

 

 

Provision for credit losses

 

(600

)

 

 

(250

)

 

 

10

 

 

 

500

 

 

 

(100

)

 

Balance at end of period

$

13,933

 

 

$

14,533

 

 

$

14,783

 

 

$

14,773

 

 

$

14,273

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING ASSETS:

 

 

 

 

 

 

 

 

 

Non-accrual loans

$

136,799

 

 

$

143,666

 

 

$

138,833

 

 

$

147,864

 

 

$

143,889

 

 

Loans 90 days past due and accruing

 

24,182

 

 

 

8,453

 

 

 

11,389

 

 

 

5,865

 

 

 

8,559

 

 

Total non-performing loans

 

160,981

 

 

 

152,119

 

 

 

150,222

 

 

 

153,729

 

 

 

152,448

 

 

Other real estate owned

 

2,014

 

 

 

1,817

 

 

 

1,896

 

 

 

2,779

 

 

 

3,664

 

 

Total non-performing assets

$

162,995

 

 

$

153,936

 

 

$

152,118

 

 

$

156,508

 

 

$

156,112

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING LOANS, BY TYPE:

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

30,193

 

 

$

30,629

 

 

$

32,697

 

 

$

33,522

 

 

$

31,871

 

 

Real estate – commercial mortgage

 

64,190

 

 

 

54,044

 

 

 

52,100

 

 

 

53,693

 

 

 

54,164

 

 

Real estate – residential mortgage

 

39,308

 

 

 

39,399

 

 

 

37,077

 

 

 

38,185

 

 

 

36,152

 

 

Consumer and home equity

 

11,465

 

 

 

11,505

 

 

 

11,509

 

 

 

11,408

 

 

 

13,072

 

 

Real estate – construction

 

672

 

 

 

901

 

 

 

965

 

 

 

1,016

 

 

 

1,440

 

 

Equipment lease financing and other

 

15,153

 

 

 

15,641

 

 

 

15,874

 

 

 

15,905

 

 

 

15,749

 

 

Total non-performing loans

$

160,981

 

 

$

152,119

 

 

$

150,222

 

 

$

153,729

 

 

$

152,448

 

 

 

 

 

 

 

 

 

 

(1) The allowance for credit losses related to OBS Credit Exposures is presented in “other liabilities” on the consolidated balance sheets.

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

 

 

 

 

2022

 

2021

 

2021

 

2021

 

2021

Common shareholders’ equity (tangible), per share

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

$

2,569,535

 

 

$

2,712,680

 

 

$

2,699,818

 

 

$

2,692,958

 

 

$

2,629,655

 

Less: Preferred stock

 

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

Less: Goodwill and intangible assets

 

 

 

(537,877

)

 

 

(538,053

)

 

 

(536,697

)

 

 

(536,847

)

 

 

(536,544

)

Tangible common shareholders’ equity (numerator)

 

 

$

1,838,780

 

 

$

1,981,749

 

 

$

1,970,243

 

 

$

1,963,233

 

 

$

1,900,233

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding, end of period (denominator)

 

 

 

160,669

 

 

 

160,490

 

 

 

161,429

 

 

 

162,988

 

 

 

162,518

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shareholders’ equity (tangible), per share

 

 

$

11.44

 

 

$

12.35

 

 

$

12.21

 

 

$

12.05

 

 

$

11.69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average common shareholders’ equity (tangible)

 

 

 

 

 

 

Net income available to common shareholders

 

 

$

61,726

 

 

$

59,325

 

 

$

73,021

 

 

$

62,402

 

 

$

70,472

 

Plus: Merger-related expenses, net of tax

 

 

 

 

317

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus: Intangible amortization, net of tax

 

 

 

138

 

 

 

114

 

 

 

118

 

 

 

140

 

 

 

90

 

Net income available to common shareholder’s (numerator)

 

$

62,181

 

 

$

59,439

 

 

$

73,139

 

 

$

62,542

 

 

$

70,562

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shareholders’ equity

 

 

$

2,688,834

 

 

$

2,713,198

 

 

$

2,722,833

 

 

$

2,669,413

 

 

$

2,637,098

 

Less: Average preferred stock

 

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

Less: Average goodwill and intangible assets

 

 

 

(537,976

)

 

 

(536,638

)

 

 

(536,772

)

 

 

(536,470

)

 

 

(536,601

)

Average tangible common shareholders’ equity (denominator)

 

$

1,957,980

 

 

$

1,983,682

 

 

$

1,993,183

 

 

$

1,940,065

 

 

$

1,907,619

 

 

 

 

 

 

 

 

 

 

 

 

Return on average common shareholders’ equity (tangible), annualized

 

 

12.88

%

 

 

11.89

%

 

 

14.56

%

 

 

12.93

%

 

 

15.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets (TCE Ratio)

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

$

2,569,535

 

 

$

2,712,680

 

 

$

2,699,818

 

 

$

2,692,958

 

 

$

2,629,655

 

Less: Preferred stock

 

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

 

 

(192,878

)

Less: Goodwill and intangible assets

 

 

 

(537,877

)

 

 

(538,053

)

 

 

(536,697

)

 

 

(536,847

)

 

 

(536,544

)

Tangible common shareholders’ equity (numerator)

 

 

$

1,838,780

 

 

$

1,981,749

 

 

$

1,970,243

 

 

$

1,963,233

 

 

$

1,900,233

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

$

25,598,310

 

 

$

25,796,398

 

 

$

26,390,832

 

 

$

26,079,774

 

 

$

25,892,990

 

Less: Goodwill and intangible assets

 

 

 

(537,877

)

 

 

(538,053

)

 

 

(536,697

)

 

 

(536,847

)

 

 

(536,544

)

Total tangible assets (denominator)

 

 

$

25,060,433

 

 

$

25,258,345

 

 

$

25,854,135

 

 

$

25,542,927

 

 

$

25,356,446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

 

 

7.34

%

 

 

7.85

%

 

 

7.62

%

 

 

7.69

%

 

 

7.49

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

 

$

145,978

 

 

$

154,019

 

 

$

144,596

 

 

$

140,831

 

 

$

178,384

 

Less: Amortization of tax credit investments

 

 

 

(696

)

 

 

(1,547

)

 

 

(1,546

)

 

 

(1,563

)

 

 

(1,531

)

Less: Merger-related expenses

 

 

 

(401

)

 

 

 

 

 

 

 

 

 

 

 

 

Less: Intangible amortization

 

 

 

(176

)

 

 

(146

)

 

 

(150

)

 

 

(178

)

 

 

(115

)

Less: Debt extinguishment costs

 

 

 

 

 

 

(674

)

 

 

 

 

 

(412

)

 

 

(32,163

)

Non-interest expense (numerator)

 

 

$

144,705

 

 

$

151,652

 

 

$

142,900

 

 

$

138,678

 

 

$

144,575

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

161,310

 

 

$

165,613

 

 

$

171,270

 

 

$

162,399

 

 

$

164,449

 

Tax equivalent adjustment

 

 

 

3,288

 

 

 

3,184

 

 

 

3,114

 

 

 

3,018

 

 

 

2,979

 

Plus: Total non-interest income

 

 

 

55,256

 

 

 

63,881

 

 

 

62,577

 

 

 

51,890

 

 

 

95,396

 

Less: Investment securities gains, net

 

 

 

(19

)

 

 

(5

)

 

 

 

 

 

(36

)

 

 

(33,475

)

Total revenue (denominator)

 

 

$

219,835

 

 

$

232,673

 

 

$

236,961

 

 

$

217,271

 

 

$

229,349

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

 

65.8

%

 

 

65.2

%

 

 

60.3

%

 

 

63.8

%

 

 

63.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

 

 

 

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

 

 

 

 

 

 

2022

 

2021

 

2021

 

2021

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses to total average assets (annualized)

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

 

$

145,978

 

 

$

154,019

 

 

$

144,596

 

 

$

140,831

 

 

$

178,384

 

Less: Amortization of tax credit investments

 

 

 

(696

)

 

 

(1,547

)

 

 

(1,546

)

 

 

(1,563

)

 

 

(1,531

)

Less: Intangible amortization

 

 

 

(176

)

 

 

(146

)

 

 

(150

)

 

 

(178

)

 

 

(115

)

Less: Merger-related expenses

 

 

 

(401

)

 

 

 

 

 

 

 

 

 

 

 

 

Less: Debt extinguishment costs

 

 

 

 

 

 

(674

)

 

 

 

 

 

(412

)

 

 

(32,163

)

Non-interest expense (numerator)

 

 

$

144,705

 

 

$

151,652

 

 

$

142,900

 

 

$

138,678

 

 

$

144,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total average assets (denominator)

 

 

$

25,622,462

 

 

$

26,136,536

 

 

$

26,440,876

 

 

$

26,017,542

 

 

$

26,082,816

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses to total average assets, (annualized)

 

 

 

2.29

%

 

 

2.30

%

 

 

2.14

%

 

 

2.14

%

 

 

2.25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality, excluding PPP

 

 

 

 

 

 

 

 

 

 

 

Net loans recovered (charged-off) (numerator)

 

 

$

1,054

 

 

$

(2,976

)

 

$

2,305

 

 

$

(6,954

)

 

$

(6,181

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average net loans

 

 

$

18,383,118

 

 

$

18,220,550

 

 

$

18,414,153

 

 

$

18,906,556

 

 

$

18,980,586

 

Less: Average PPP loans

 

 

 

(226,114

)

 

 

(435,042

)

 

 

(850,618

)

 

 

(1,524,389

)

 

 

(1,688,713

)

Total adjusted average loans (denominator)

 

 

$

18,157,004

 

 

$

17,785,508

 

 

$

17,563,535

 

 

$

17,382,167

 

 

$

17,291,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to adjusted average loans (annualized)

 

 

 

(0.02

) %

 

 

0.07

%

 

 

(0.05

) %

 

 

0.16

%

 

 

0.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans (numerator)

 

 

$

160,981

 

 

$

152,119

 

 

$

150,222

 

 

$

153,729

 

 

$

152,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans

 

 

$

18,476,119

 

 

$

18,325,350

 

 

$

18,269,407

 

 

$

18,586,756

 

 

$

18,990,986

 

Less: PPP loans

 

 

 

(164,277

)

 

 

(301,253

)

 

 

(590,447

)

 

 

(1,114,401

)

 

 

(1,688,394

)

Total adjusted loans (denominator)

 

 

$

18,311,842

 

 

$

18,024,097

 

 

$

17,678,960

 

 

$

17,472,355

 

 

$

17,302,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans to total adjusted loans

 

 

 

0.88

%

 

 

0.84

%

 

 

0.85

%

 

 

0.88

%

 

 

0.88

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL – loans (numerator)

 

 

$

243,705

 

 

$

249,001

 

 

$

256,727

 

 

$

255,032

 

 

$

265,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans

 

 

$

18,476,119

 

 

$

18,325,350

 

 

$

18,269,407

 

 

$

18,586,756

 

 

$

18,990,986

 

Less: PPP loans

 

 

 

(164,277

)

 

 

(301,253

)

 

 

(590,447

)

 

 

(1,114,401

)

 

 

(1,688,394

)

Total adjusted loans (denominator)

 

 

$

18,311,842

 

 

$

18,024,097

 

 

$

17,678,960

 

 

$

17,472,355

 

 

$

17,302,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL – loans to total adjusted loans

 

 

 

1.33

%

 

 

1.38

%

 

 

1.45

%

 

 

1.46

%

 

 

1.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-provision net revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

161,310

 

 

$

165,613

 

 

$

171,270

 

 

$

162,399

 

 

$

164,449

 

Non-interest income

 

 

 

 

 

55,256

 

 

 

63,881

 

 

 

62,577

 

 

 

51,890

 

 

 

95,396

 

Less: Investment securities gains, net

 

 

 

 

 

(19

)

 

 

(5

)

 

 

 

 

 

(36

)

 

 

(33,475

)

Total revenue

 

 

 

 

$

216,547

 

 

$

229,489

 

 

$

233,847

 

 

$

214,253

 

 

$

226,370

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

 

 

 

$

145,978

 

 

$

154,019

 

 

$

144,596

 

 

$

140,831

 

 

$

178,384

 

Less: Amortization on tax credit investments

 

 

 

 

 

(696

)

 

 

(1,547

)

 

 

(1,546

)

 

 

(1,563

)

 

 

(1,531

)

Less: Merger-related expenses

 

 

 

(401

)

 

 

 

 

 

 

 

 

 

 

 

 

Less: Intangible amortization

 

 

 

 

 

(176

)