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FULTON FINANCIAL ANNOUNCES FIRST QUARTER 2021 RESULTS
Fulton Financial Corporation (NASDAQ: FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $70 million, or $0.43 per diluted share, for the first quarter of 2021.
"Fulton achieved solid financial performance during the first quarter, despite the continuing challenges brought about by COVID-19,” said E. Philip Wenger, Chairman and CEO of Fulton Financial Corporation. “We experienced record earnings per share, our mortgage business remained strong, our wealth management business grew to record highs, and asset quality remained stable. The balance sheet restructuring we announced in March had minimal net impact on our earnings in the first quarter, but it will meaningfully enhance our net interest income beginning in the second quarter and going forward.”
Net Interest Income and Balance Sheet
Net interest income for the first quarter of 2021 was $164 million, $3 million higher than the fourth quarter of 2020. Net interest margin for the first quarter of 2021 increased 4 basis points, to 2.79%, from 2.75% in the fourth quarter of 2020. The increases in net interest income and net interest margin in comparison to the fourth quarter of 2020 were primarily due to the forgiveness of Paycheck Protection Program ("PPP") loans and the recognition of related fee income as well as growth in average investment securities and other earning assets during the quarter.
Total average assets for the first quarter of 2021 were $26.1 billion, an increase of $333 million from the fourth quarter of 2020, driven by growth in other interest-earning assets and investment securities. Average loans, net of unearned income, were $19.0 billion, relatively unchanged compared to the fourth quarter of 2020. Average loans included loans originated under the PPP. Average PPP loans were $1.7 billion for the first quarter of 2021 compared to $1.8 billion for the fourth quarter of 2020. First quarter loan balances were impacted by the net effect of $579 million of PPP loans forgiven and $685 million of new loans originated under the third phase of the PPP in the first quarter of 2021 .
Average loans and yields, by type, for the first quarter of 2021 in comparison to the fourth quarter of 2020 are summarized in the following table:
Three months ended | ||||||||||||||||||||||||
March 31, 2021 | December 31, 2020 | Growth | ||||||||||||||||||||||
Balance | Yield (1) | Balance | Yield (1) | $ | % | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Average Loans, net of unearned income, by type: | ||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 7,128,997 | 3.15 | % | $ | 7,101,363 | 3.21 | % | $ | 27,634 | 0.4 | % | ||||||||||||
Commercial and industrial(2) | 5,722,080 | 2.57 | % | 5,855,305 | 2.57 | % | (133,225 | ) | (2.3 | ) | % | |||||||||||||
Real estate - residential mortgage | 3,183,585 | 3.52 | % | 3,087,529 | 3.65 | % | 96,056 | 3.1 | % | |||||||||||||||
Real estate - home equity | 1,175,218 | 3.75 | % | 1,212,113 | 3.91 | % | (36,895 | ) | (3.0 | ) | % | |||||||||||||
Real estate - construction | 1,054,718 | 3.09 | % | 1,009,284 | 3.11 | % | 45,434 | 4.5 | % | |||||||||||||||
Consumer | 459,038 | 4.13 | % | 468,678 | 4.07 | % | (9,640 | ) | (2.1 | ) | % | |||||||||||||
Equipment lease financing | 266,405 | 4.11 | % | 279,059 | 3.98 | % | (12,654 | ) | (4.5 | ) | % | |||||||||||||
Other(3) | (9,455 | ) | N/A | (18,817 | ) | N/A | 9,362 | (49.8 | ) | % | ||||||||||||||
Total Average Loans, net of unearned income | $ | 18,980,586 | 3.53 | % | $ | 18,994,514 | 3.45 | % | $ | (13,928 | ) | (0.1 | ) | % | ||||||||||
(1) Presented on a fully-taxable equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances. | ||||||||||||||||||||||||
(2) Includes average PPP loans of $1.7 billion and $1.8 billion for the three months ended March 31, 2021 and December 31, 2020, respectively. | ||||||||||||||||||||||||
(3) Consists of overdrafts and net origination fees and costs. | ||||||||||||||||||||||||
Total average liabilities in the first quarter of 2021 increased $241 million, to $23.4 billion, from the fourth quarter of 2020 driven by increases in demand and savings deposits, partially offset by decreases in time deposits and short-term borrowings. Average deposits and interest rates, by type, for the first quarter of 2021 in comparison to the fourth quarter of 2020 are summarized in the following table:
Three months ended | ||||||||||||||||||||||
March 31, 2021 | December 31, 2020 | Growth | ||||||||||||||||||||
Balance | Rate | Balance | Rate | $ | % | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Average Deposits, by type: | ||||||||||||||||||||||
Noninterest-bearing demand | $ | 6,672,832 | — | $ | 6,477,228 | — | $ | 195,604 | 3.0 | % | ||||||||||||
Interest-bearing demand | 5,832,174 | 0.08 | % | 5,762,150 | 0.10 | % | 70,024 | 1.2 | % | |||||||||||||
Savings | 6,137,084 | 0.10 | % | 5,905,137 | 0.13 | % | 231,947 | 3.9 | % | |||||||||||||
Total average demand and savings | 18,642,090 | 0.06 | % | 18,144,515 | 0.07 | % | 497,575 | 2.7 | % | |||||||||||||
Brokered | 324,364 | 0.49 | % | 340,451 | 0.53 | % | (16,087 | ) | (4.7 | ) | % | |||||||||||
Time | 2,150,570 | 1.23 | % | 2,306,556 | 1.39 | % | (155,986 | ) | (6.8 | ) | % | |||||||||||
Total Average Deposits | $ | 21,117,024 | 0.18 | % | $ | 20,791,522 | 0.23 | % | $ | 325,502 | 1.6 | % | ||||||||||
Asset Quality
In the first quarter of 2021 a reversal of provision of credit losses of $6 million was recognized, as compared to provisions for credit losses of $6 million, and $44 million for the fourth quarter of 2020 and first quarter of 2020, respectively. Several factors as of the end of the first quarter of 2021 in comparison to the end of the fourth quarter of 2020, including improved economic forecasts and a decrease in specific allocations within the allowance for credit losses for loans evaluated individually, reduced the level of the allowance for credit losses determined to be necessary at the end of the first quarter of 2021, resulting in the negative provision for credit losses.
The $44 million provision for credit losses in the first quarter of 2020 was driven primarily by assessment of the initial estimated impacts of the COVID-19 pandemic, as reflected in economic forecasts as of the end of the first quarter of 2020, on the level of expected credit losses.
Non-performing assets were $156 million, or 0.60% of total assets, at March 31, 2021, compared to $151 million, or 0.58% of total assets, and $147 million, or 0.64% of total assets at December 31, 2020 and March 31, 2020, respectively.
Annualized net charge-offs for the quarter ended March 31, 2021 were 0.13% of total average loans, compared to annualized net recoveries of 0.07% and annualized net charge-offs of 0.26% for the quarters ended December 31, 2020 and March 31, 2020, respectively.
Non-interest Income
Non-interest income in the first quarter of 2021, excluding investment securities gains, was $62 million, an increase of $6 million, or 11%, from the fourth quarter of 2020, primarily driven by increases of $5 million in mortgage banking income and $2 million in wealth management fees. The increase in mortgage banking income was due to a $6 million reversal of the valuation allowance for mortgage servicing assets.
Compared to the first quarter of 2020, non-interest income, excluding investment securities gains, in the first quarter of 2021 increased $7 million, or 13%, from $55 million, primarily driven by an $8 million increase in mortgage banking income, resulting from a combination of higher mortgage sales gains and a $6 million reversal of the mortgage servicing valuation allowance, both due to lower mortgage interest rates.
In the first quarter of 2021, Fulton completed a balance sheet restructuring involving gains on sales of Visa, Inc. Class B restricted shares of $34 million, which were offset in non-interest expense by corresponding debt extinguishment costs of $32 million, other securities losses of $0.4 million and a write-off of $1 million recognized in net interest income in connection with the purchase of certain of the Corporation's outstanding senior and subordinated notes and the prepayment of certain term Federal Home Loan Bank advances.
Non-interest Expense
Non-interest expense was $178 million in the first quarter of 2021, an increase of $24 million compared to the fourth quarter of 2020, which was driven by costs recognized during the first quarter of 2021 associated with the aforementioned balance sheet restructuring. In the fourth quarter of 2020, $15 million of charges, reflected in salaries and employee benefits and other expense, were recognized in connection with the cost saving initiatives announced in October 2020.
Compared to the first quarter of 2020, non-interest expense increased $36 million, or 25% in the first quarter of 2021, due primarily to costs associated with the previously mentioned balance sheet restructuring. Other increases were recognized in salaries and employee benefits and data processing and software, partially offset by lower professional fees.
Income Tax Expense
The effective income tax rate (ETR) for the first quarter of 2021 was 16%, as compared to 10% for both the fourth quarter of 2020 and first quarter of 2020. The increase was a result of higher income before income taxes.
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, 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, 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, 2020 and other current and periodic reports, which have been or will be filed with the Securities and Exchange Commission and are or will be 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
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in thousands, except per-share data and percentages | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||
Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||||||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||||
Ending Balances | |||||||||||||||||||||
Investments | $ | 3,612,010 | $ | 3,340,424 | $ | 3,097,721 | $ | 2,974,813 | $ | 3,141,440 | |||||||||||
Loans, net of unearned income | 18,990,986 | 18,900,820 | 19,028,621 | 18,704,722 | 17,077,403 | ||||||||||||||||
Total assets | 25,892,990 | 25,906,733 | 25,543,281 | 24,617,863 | 22,929,859 | ||||||||||||||||
Deposits | 21,633,838 | 20,839,207 | 20,730,051 | 19,884,208 | 17,365,026 | ||||||||||||||||
Shareholders' equity | 2,629,655 | 2,616,828 | 2,390,261 | 2,340,501 | 2,285,748 | ||||||||||||||||
Average Balances | |||||||||||||||||||||
Investments | $ | 3,448,166 | $ | 3,221,289 | $ | 2,977,672 | $ | 3,096,632 | $ | 3,071,828 | |||||||||||
Loans, net of unearned income | 18,980,586 | 18,994,514 | 18,880,519 | 18,331,797 | 16,860,067 | ||||||||||||||||
Total assets | 26,082,816 | 25,749,405 | 25,169,508 | 24,139,116 | 22,252,099 | ||||||||||||||||
Deposits | 21,117,024 | 20,791,522 | 20,388,447 | 19,276,658 | 17,121,428 | ||||||||||||||||
Shareholders' equity | 2,637,098 | 2,544,866 | 2,374,091 | 2,309,133 | 2,337,016 | ||||||||||||||||
Income Statement | |||||||||||||||||||||
Net interest income | $ | 164,448 | $ | 161,591 | $ | 154,116 | $ | 152,754 | $ | 160,746 | |||||||||||
Provision for credit losses | (5,500 | ) | 6,240 | 7,080 | 19,570 | 44,030 | |||||||||||||||
Non-interest income | 95,397 | 55,574 | 63,248 | 55,922 | 54,644 | ||||||||||||||||
Non-interest expense | 178,384 | 154,737 | 139,147 | 143,006 | 142,552 | ||||||||||||||||
Income before taxes | 86,961 | 56,187 | 71,137 | 46,101 | 28,808 | ||||||||||||||||
Net income available to common shareholders | 70,472 | 48,690 | 61,607 | 39,559 | 26,047 | ||||||||||||||||
Pre-provision net revenue(1) | 81,795 | 64,092 | 80,043 | 67,125 | 74,374 | ||||||||||||||||
Per Share | |||||||||||||||||||||
Net income available to common shareholders (basic) | $ | 0.43 | $ | 0.30 | $ | 0.38 | $ | 0.24 | $ | 0.16 | |||||||||||
Net income available to common shareholders (diluted) | $ | 0.43 | $ | 0.30 | $ | 0.38 | $ | 0.24 | $ | 0.16 | |||||||||||
Cash dividends | $ | 0.14 | $ | 0.17 | $ | 0.13 | $ | 0.13 | $ | 0.13 | |||||||||||
Common shareholders' equity | $ | 14.99 | $ | 14.93 | $ | 14.74 | $ | 14.45 | $ | 14.16 | |||||||||||
Common shareholders' equity (tangible)(1) | $ | 11.69 | $ | 11.62 | $ | 11.44 | $ | 11.15 | $ | 10.84 | |||||||||||
Weighted average shares (basic) | 162,441 | 162,242 | 162,061 | 161,715 | 163,475 | ||||||||||||||||
Weighted average shares (diluted) | 163,737 | 163,071 | 162,579 | 162,267 | 164,417 | ||||||||||||||||
(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 | |||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||
Asset Quality | |||||||||||||||
Net charge-offs (recoveries) to average loans (annualized) | 0.13 | % | (0.07 | )% | (0.05 | )% | 0.09 | % | 0.26 | % | |||||
Non-performing loans to total loans | 0.80 | % | 0.78 | % | 0.75 | % | 0.75 | % | 0.82 | % | |||||
Non-performing assets to total assets | 0.60 | % | 0.58 | % | 0.57 | % | 0.59 | % | 0.64 | % | |||||
ACL - loans(2) to total loans | 1.40 | % | 1.47 | % | 1.40 | % | 1.37 | % | 1.40 | % | |||||
ACL - loans(2) to non-performing loans | 174 | % | 189 | % | 188 | % | 183 | % | 170 | % | |||||
Asset Quality, excluding PPP(1)(3) | |||||||||||||||
Net charge-offs (recoveries) to average loans (annualized) | 0.14 | % | (0.08 | )% | (0.06 | )% | 0.10 | % | — | % | |||||
Non-performing loans to total adjusted loans | 0.88 | % | 0.85 | % | 0.83 | % | 0.83 | % | — | % | |||||
ACL - loans(2) to total adjusted loans | 1.54 | % | 1.60 | % | 1.56 | % | 1.53 | % | — | % | |||||
Profitability | |||||||||||||||
Return on average assets | 1.14 | % | 0.79 | % | 0.97 | % | 0.66 | % | 0.47 | % | |||||
Return on average shareholders' equity | 11.24 | % | 7.95 | % | 10.32 | % | 6.89 | % | 4.48 | % | |||||
Return on average common shareholders' equity (tangible)(1) | 15.00 | % | 10.32 | % | 13.50 | % | 8.99 | % | 5.84 | % | |||||
Net interest margin | 2.79 | % | 2.75 | % | 2.70 | % | 2.81 | % | 3.21 | % | |||||
Efficiency ratio(1) | 63.0 | % | 62.5 | % | 62.3 | % | 66.4 | % | 64.5 | % | |||||
Capital Ratios | |||||||||||||||
Tangible common equity ratio(1) | 7.5 | % | 7.4 | % | 7.4 | % | 7.5 | % | 7.8 | % | |||||
Tier 1 leverage ratio(4) | 8.3 | % | 8.2 | % | 7.4 | % | 7.6 | % | 7.9 | % | |||||
Common equity Tier 1 capital ratio(4) | 9.8 | % | 9.5 | % | 9.5 | % | 9.5 | % | 9.4 | % | |||||
Tier 1 capital ratio(4) | 10.8 | % | 10.5 | % | 9.5 | % | 9.5 | % | 9.4 | % | |||||
Total risk-based capital ratio(4) | 14.2 | % | 14.4 | % | 13.9 | % | 13.8 | % | 13.8 | % | |||||
(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 "Loans, net of unearned income" 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, 2021 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 | |||||||||||||||||||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 102,570 | $ | 120,462 | $ | 139,304 | $ | 141,702 | $ | 181,777 | (14.9 | ) | % | (43.6 | ) | % | |||||||||||||||||
Other interest-earning assets | 1,625,515 | 1,819,499 | 1,489,550 | 1,007,939 | 793,572 | (10.7 | ) | % | 104.8 | % | |||||||||||||||||||||||
Loans held for sale | 34,092 | 83,886 | 93,621 | 77,415 | 40,645 | (59.4 | ) | % | (16.1 | ) | % | ||||||||||||||||||||||
Investment securities | 3,612,010 | 3,340,424 | 3,097,721 | 2,974,813 | 3,141,440 | 8.1 | % | 15.0 | % | ||||||||||||||||||||||||
Net Loans | 18,990,986 | 18,900,820 | 19,028,621 | 18,704,722 | 17,077,403 | 0.5 | % | 11.2 | % | ||||||||||||||||||||||||
Less: ACL - loans(1) | (265,986 | ) | (277,567 | ) | (266,825 | ) | (256,537 | ) | (238,508 | ) | (4.2 | ) | % | 11.5 | % | ||||||||||||||||||
Loans, net | 18,725,000 | 18,623,253 | 18,761,796 | 18,448,185 | 16,838,895 | 0.5 | % | 11.2 | % | ||||||||||||||||||||||||
Net, premises and equipment | 229,035 | 231,480 | 236,943 | 239,596 | 236,908 | (1.1 | ) | % | (3.3 | ) | % | ||||||||||||||||||||||
Accrued interest receivable | 65,649 | 72,942 | 70,766 | 73,720 | 59,365 | (10.0 | ) | % | 10.6 | % | |||||||||||||||||||||||
Goodwill and intangible assets | 536,544 | 536,659 | 534,907 | 535,039 | 535,171 | — | % | 0.3 | % | ||||||||||||||||||||||||
Other assets | 962,575 | 1,078,128 | 1,118,673 | 1,119,454 | 1,102,086 | (10.7 | ) | % | (12.7 | ) | % | ||||||||||||||||||||||
Total Assets | $ | 25,892,990 | $ | 25,906,733 | $ | 25,543,281 | $ | 24,617,863 | $ | 22,929,859 | (0.1 | ) | % | 12.9 | % | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||
Deposits | $ | 21,633,838 | $ | 20,839,207 | $ | 20,730,051 | $ | 19,884,208 | $ | 17,365,026 | 3.8 | % | 24.6 | % | |||||||||||||||||||
Short-term borrowings | 520,989 | 630,066 | 611,727 | 572,551 | 1,386,808 | (17.3 | ) | % | (62.4 | ) | % | ||||||||||||||||||||||
Other liabilities | 482,101 | 524,369 | 515,230 | 525,407 | 513,811 | (8.1 | ) | % | (6.2 | ) | % | ||||||||||||||||||||||
FHLB advances and long-term debt | 626,407 | 1,296,263 | 1,296,012 | 1,295,196 | 1,378,466 | (51.7 | ) | % | (54.6 | ) | % | ||||||||||||||||||||||
Total Liabilities | 23,263,335 | 23,289,905 | 23,153,020 | 22,277,362 | 20,644,111 | (0.1 | ) | % | 12.7 | % | |||||||||||||||||||||||
Shareholders' equity | 2,629,655 | 2,616,828 | 2,390,261 | 2,340,501 | 2,285,748 | 0.5 | % | 15.0 | % | ||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 25,892,990 | $ | 25,906,733 | $ | 25,543,281 | $ | 24,617,863 | $ | 22,929,859 | (0.1 | ) | % | 12.9 | % | ||||||||||||||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | |||||||||||||||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 7,142,137 | $ | 7,105,092 | $ | 7,046,330 | $ | 6,934,936 | $ | 6,895,069 | 0.5 | % | 3.6 | % | |||||||||||||||||||
Commercial and industrial | 3,986,858 | 4,088,561 | 4,007,278 | 4,033,439 | 4,450,557 | (2.5 | ) | % | (10.4 | ) | % | ||||||||||||||||||||||
Real estate - residential mortgage | 3,254,058 | 3,141,915 | 3,061,835 | 2,862,226 | 2,718,290 | 3.6 | % | 19.7 | % | ||||||||||||||||||||||||
Real estate - home equity | 1,149,958 | 1,202,913 | 1,222,709 | 1,251,455 | 1,292,677 | (4.4 | ) | % | (11.0 | ) | % | ||||||||||||||||||||||
Real estate - construction | 1,083,494 | 1,047,218 | 1,007,534 | 972,909 | 947,768 | 3.5 | % | 14.3 | % | ||||||||||||||||||||||||
Consumer | 451,857 | 466,772 | 469,551 | 465,610 | 468,172 | (3.2 | ) | % | (3.5 | ) | % | ||||||||||||||||||||||
Equipment lease financing | 260,907 | 279,118 | 280,286 | 281,897 | 289,726 | (6.5 | ) | % | (9.9 | ) | % | ||||||||||||||||||||||
Other(2) | (26,677 | ) | (12,481 | ) | (27,067 | ) | (34,784 | ) | 15,144 | 113.7 | % | N/M | |||||||||||||||||||||
Loans, net of unearned income before PPP | 17,302,592 | 17,319,108 | 17,068,456 | 16,767,688 | 17,077,403 | (0.1 | ) | % | 1.3 | % | |||||||||||||||||||||||
PPP | 1,688,394 | 1,581,712 | 1,960,165 | 1,937,034 | — | 6.7 | % | N/M | |||||||||||||||||||||||||
Total Loans, net of unearned income | $ | 18,990,986 | $ | 18,900,820 | $ | 19,028,621 | $ | 18,704,722 | $ | 17,077,403 | 0.5 | % | 11.2 | % | |||||||||||||||||||
Deposits, by type: | |||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 7,046,116 | $ | 6,531,002 | $ | 6,378,077 | $ | 6,239,055 | $ | 4,531,872 | 7.9 | % | 55.5 | % | |||||||||||||||||||
Interest-bearing demand | 5,959,909 | 5,818,564 | 5,813,935 | 5,099,405 | 4,724,520 | 2.4 | % | 26.1 | % | ||||||||||||||||||||||||
Savings | 6,244,513 | 5,929,792 | 5,805,431 | 5,667,893 | 5,092,865 | 5.3 | % | 22.6 | % | ||||||||||||||||||||||||
Total demand and savings | 19,250,538 | 18,279,358 | 17,997,443 | 17,006,353 | 14,349,257 | 5.3 | % | 34.2 | % | ||||||||||||||||||||||||
Brokered | 309,873 | 335,185 | 317,588 | 310,689 | 313,337 | (7.6 | ) | % | (1.1 | ) | % | ||||||||||||||||||||||
Time | 2,073,427 | 2,224,664 | 2,415,020 | 2,567,166 | 2,702,432 | (6.8 | ) | % | (23.3 | ) | % | ||||||||||||||||||||||
Total Deposits | $ | 21,633,838 | $ | 20,839,207 | $ | 20,730,051 | $ | 19,884,208 | $ | 17,365,026 | 3.8 | % | 24.6 | % | |||||||||||||||||||
Short-term borrowings, by type: | |||||||||||||||||||||||||||||||||
Customer funding | $ | 520,989 | $ | 630,066 | $ | 611,727 | $ | 572,551 | $ | 461,808 | (17.3 | ) | % | 12.8 | % | ||||||||||||||||||
Federal funds purchased | — | — | — | — | 200,000 | N/M | (100.0 | ) | % | ||||||||||||||||||||||||
Short-term FHLB advances | — | — | — | — | 725,000 | N/M | (100.0 | ) | % | ||||||||||||||||||||||||
Total Short-term Borrowings | $ | 520,989 | $ | 630,066 | $ | 611,727 | $ | 572,551 | $ | 1,386,808 | (17.3 | ) | % | (62.4 | ) | % | |||||||||||||||||
N/M - Not meaningful | |||||||||||||||||||||||||||||||||
(1) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures. | |||||||||||||||||||||||||||||||||
(2) Consists of overdrafts and net origination fees and costs. | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||||||||||||||
Interest Income: | |||||||||||||||||||||||||||||||||
Interest income | $ | 184,936 | $ | 183,645 | $ | 179,159 | $ | 180,696 | $ | 199,378 | 0.7 | % | (7.2 | ) | % | ||||||||||||||||||
Interest expense | 20,488 | 22,054 | 25,043 | 27,942 | 38,632 | (7.1 | ) | % | (47.0 | ) | % | ||||||||||||||||||||||
Net Interest Income | 164,448 | 161,591 | 154,116 | 152,754 | 160,746 | 1.8 | % | 2.3 | % | ||||||||||||||||||||||||
Provision for credit losses | (5,500 | ) | 6,240 | 7,080 | 19,570 | 44,030 | N/M | (112.5 | ) | % | |||||||||||||||||||||||
Net Interest Income after Provision | 169,948 | 155,351 | 147,036 | 133,184 | 116,716 | 9.4 | % | 45.6 | % | ||||||||||||||||||||||||
Non-Interest Income: | |||||||||||||||||||||||||||||||||
Commercial banking: | |||||||||||||||||||||||||||||||||
Merchant and card | 5,768 | 5,953 | 6,237 | 5,326 | 5,624 | (3.1 | ) | % | 2.6 | % | |||||||||||||||||||||||
Cash management | 4,921 | 4,737 | 4,742 | 4,503 | 4,742 | 3.9 | % | 3.8 | % | ||||||||||||||||||||||||
Capital markets | 2,800 | 3,513 | 4,696 | 5,004 | 5,075 | (20.3 | ) | % | (44.8 | ) | % | ||||||||||||||||||||||
Other commercial banking | 2,853 | 2,606 | 2,636 | 1,914 | 2,978 | 9.5 | % | (4.2 | ) | % | |||||||||||||||||||||||
Total commercial banking | 16,342 | 16,809 | 18,311 | 16,748 | 18,419 | (2.8 | ) | % | (11.3 | ) | % | ||||||||||||||||||||||
Consumer banking: | |||||||||||||||||||||||||||||||||
Card | 5,878 | 5,123 | 5,002 | 4,966 | 4,685 | 14.7 | % | 25.5 | % | ||||||||||||||||||||||||
Overdraft | 2,724 | 3,376 | 3,015 | 2,107 | 4,058 | (19.3 | ) | % | (32.9 | ) | % | ||||||||||||||||||||||
Other consumer banking | 2,152 | 2,298 | 2,406 | 2,065 | 2,496 | (6.4 | ) | % | (13.8 | ) | % | ||||||||||||||||||||||
Total consumer banking | 10,754 | 10,797 | 10,423 | 9,138 | 11,239 | (0.4 | ) | % | (4.3 | ) | % | ||||||||||||||||||||||
Wealth management | 17,347 | 15,653 | 14,943 | 13,407 | 15,055 | 10.8 | % | 15.2 | % | ||||||||||||||||||||||||
Mortgage banking | 13,960 | 9,311 | 16,801 | 9,964 | 6,234 | 49.9 | % | 123.9 | % | ||||||||||||||||||||||||
Other | 3,519 | 3,004 | 2,769 | 3,660 | 3,651 | 17.1 | % | (3.6 | ) | % | |||||||||||||||||||||||
Non-interest income before investment securities gains | 61,922 | 55,574 | 63,246 | 52,917 | 54,598 | 11.4 | % | 13.4 | % | ||||||||||||||||||||||||
Investment securities gains, net | 33,475 | — | 2 | 3,005 | 46 | N/M | N/M | ||||||||||||||||||||||||||
Total Non-Interest Income | 95,397 | 55,574 | 63,248 | 55,922 | 54,644 | 71.7 | % | 74.6 | % | ||||||||||||||||||||||||
Non-Interest Expense: | |||||||||||||||||||||||||||||||||
Salaries and employee benefits | 82,586 | 83,929 | 79,227 | 81,012 | 80,228 | (1.6 | ) | % | 2.9 | % | |||||||||||||||||||||||
Net occupancy | 13,982 | 13,161 | 13,221 | 13,144 | 13,486 | 6.2 | % | 3.7 | % | ||||||||||||||||||||||||
Data processing and software | 13,561 | 11,951 | 12,285 | 12,193 | 11,645 | 13.5 | % | 16.5 | % | ||||||||||||||||||||||||
Other outside services | 8,490 | 8,334 | 7,617 | 7,600 | 7,881 | 1.9 | % | 7.7 | % | ||||||||||||||||||||||||
Equipment | 3,428 | 3,563 | 3,711 | 3,193 | 3,418 | (3.8 | ) | % | 0.3 | % | |||||||||||||||||||||||
Professional fees | 2,779 | 2,424 | 2,879 | 3,331 | 4,202 | 14.6 | % | (33.9 | ) | % | |||||||||||||||||||||||
FDIC insurance | 2,624 | 2,346 | 1,578 | 2,133 | 2,808 | 11.8 | % | (6.6 | ) | % | |||||||||||||||||||||||
Amortization of tax credit investments | 1,531 | 1,532 | 1,694 | 1,450 | 1,450 | (0.1 | ) | % | 5.6 | % | |||||||||||||||||||||||
Marketing | 1,002 | 1,098 | 1,147 | 1,303 | 1,579 | (8.7 | ) | % | (36.5 | ) | % | ||||||||||||||||||||||
Intangible amortization | 115 | 132 | 132 | 132 | 132 | (12.9 | ) | % | (12.9 | ) | % | ||||||||||||||||||||||
Debt extinguishment | 32,163 | — | — | 2,878 | — | N/M | N/M | ||||||||||||||||||||||||||
Other | 16,123 | 26,268 | 15,654 | 14,637 | 15,723 | (38.6 | ) | % | 2.5 | % | |||||||||||||||||||||||
Total Non-Interest Expense | 178,384 | 154,737 | 139,145 | 143,006 | 142,552 | 15.3 | % | 25.1 | % | ||||||||||||||||||||||||
Income Before Income Taxes | 86,961 | 56,187 | 71,139 | 46,100 | 28,808 | 54.8 | % | N/M | |||||||||||||||||||||||||
Income tax expense | 13,898 | 5,362 | 9,529 | 6,542 | 2,761 | N/M | N/M | ||||||||||||||||||||||||||
Net Income | 73,063 | 50,825 | 61,610 | 39,558 | 26,047 | 43.8 | % | N/M | |||||||||||||||||||||||||
Preferred stock dividends | (2,591 | ) | (2,135 | ) | — | — | — | 21.4 | % | N/M | |||||||||||||||||||||||
Net Income Available to Common Shareholders | $ | 70,472 | $ | 48,690 | $ | 61,610 | $ | 39,558 | $ | 26,047 | 44.7 | % | N/M | ||||||||||||||||||||
PER SHARE: | |||||||||||||||||||||||||||||||||
Net income: | |||||||||||||||||||||||||||||||||
Basic | $ | 0.43 | $ | 0.30 | $ | 0.38 | $ | 0.24 | $ | 0.16 | 43.3 | % | N/M | ||||||||||||||||||||
Diluted | 0.43 | 0.30 | 0.38 | 0.24 | 0.16 | 43.3 | % | N/M | |||||||||||||||||||||||||
Cash dividends | 0.14 | 0.17 | 0.13 | 0.13 | 0.13 | (17.6 | ) | % | 7.7 | % | |||||||||||||||||||||||
Weighted average shares (basic) | 162,441 | 162,242 | 162,061 | 161,715 | 163,475 | 0.1 | % | (0.6 | ) | % | |||||||||||||||||||||||
Weighted average shares (diluted) | 163,737 | 163,071 | 162,579 | 162,267 | 164,417 | 0.4 | % | (0.4 | ) | % | |||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | December 31, 2020 | March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
Average | Interest | Yield/ | Average | Interest | Yield/ | Average | Interest | Yield/ | ||||||||||||||||||||||||||||||||||
Balance | (1) | Rate | Balance | (1) | Rate | Balance | (1) | Rate | ||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||
Loans, net of unearned income | $ | 18,980,586 | $ | 165,462 | 3.53 | % | $ | 18,994,514 | $ | 164,329 | 3.45 | % | $ | 16,860,067 | $ | 177,496 | 4.23 | % | ||||||||||||||||||||||||
Taxable investment securities | 2,438,496 | 13,691 | 2.08 | % | 2,233,730 | 13,559 | 2.43 | % | 2,284,457 | 16,294 | 2.85 | % | ||||||||||||||||||||||||||||||
Tax-exempt investment securities | 911,648 | 7,156 | 3.13 | % | 886,329 | 7,044 | 3.17 | % | 720,223 | 5,960 | 3.29 | % | ||||||||||||||||||||||||||||||
Total Investment Securities | 3,350,144 | 20,847 | 2.49 | % | 3,120,059 | 20,603 | 2.64 | % | 3,004,680 | 22,254 | 2.96 | % | ||||||||||||||||||||||||||||||
Loans held for sale | 53,465 | 471 | 3.53 | % | 76,871 | 521 | 2.71 | % | 27,178 | 320 | 4.71 | % | ||||||||||||||||||||||||||||||
Other interest-earning assets | 1,900,199 | 1,136 | 0.24 | % | 1,668,454 | 1,179 | 0.28 | % | 602,270 | 2,532 | 1.69 | % | ||||||||||||||||||||||||||||||
Total Interest-earning Assets | 24,284,394 | 187,916 | 3.13 | % | 23,859,898 | 186,632 | 3.12 | % | 20,494,195 | 202,602 | 3.97 | % | ||||||||||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 120,181 | 126,190 | 138,248 | |||||||||||||||||||||||||||||||||||||||
Premises and equipment | 230,649 | 236,265 | 239,619 | |||||||||||||||||||||||||||||||||||||||
Other assets | 1,728,473 | 1,799,381 | 1,590,666 | |||||||||||||||||||||||||||||||||||||||
Less: ACL - loans(2) | (280,881 | ) | (272,329 | ) | (210,629 | ) | ||||||||||||||||||||||||||||||||||||
Total Assets | $ | 26,082,816 | $ | 25,749,405 | $ | 22,252,099 | ||||||||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||
Demand deposits | $ | 5,832,174 | $ | 1,160 | 0.08 | % | $ | 5,762,150 | $ | 1,457 | 0.10 | % | $ | 4,649,905 | $ | 5,643 | 0.49 | % | ||||||||||||||||||||||||
Savings deposits | 6,137,084 | 1,526 | 0.10 | % | 5,905,137 | 1,866 | 0.13 | % | 5,127,662 | 7,110 | 0.56 | % | ||||||||||||||||||||||||||||||
Brokered deposits | 324,364 | 395 | 0.49 | % | 340,451 | 451 | 0.53 | % | 275,359 | 1,073 | 1.57 | % | ||||||||||||||||||||||||||||||
Time deposits | 2,150,570 | 6,521 | 1.23 | % | 2,306,556 | 8,082 | 1.39 | % | 2,761,474 | 12,614 | 1.84 | % | ||||||||||||||||||||||||||||||
Total Interest-bearing Deposits | 14,444,192 | 9,602 | 0.27 | % | 14,314,294 | 11,856 | 0.33 | % | 12,814,400 | 26,440 | 0.83 | % | ||||||||||||||||||||||||||||||
Short-term borrowings | 570,775 | 188 | 0.13 | % | 622,623 | 268 | 0.17 | % | 1,303,047 | 4,073 | 1.25 | % | ||||||||||||||||||||||||||||||
FHLB advances and long-term debt | 1,271,170 | 10,698 | 3.38 | % | 1,296,139 | 9,930 | 3.06 | % | 1,063,214 | 8,119 | 3.06 | % | ||||||||||||||||||||||||||||||
Total Interest-bearing Liabilities | 16,286,137 | 20,488 | 0.51 | % | 16,233,056 | 22,054 | 0.54 | % | 15,180,661 | 38,632 | 1.02 | % | ||||||||||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||
Demand deposits | 6,672,832 | 6,477,228 | 4,307,027 | |||||||||||||||||||||||||||||||||||||||
Total Deposits/Cost of Deposits | 21,117,024 | 0.18 | % | 20,791,522 | 0.23 | % | 17,121,427 | 0.62 | % | |||||||||||||||||||||||||||||||||
Other | 486,749 | 494,255 | 427,395 | |||||||||||||||||||||||||||||||||||||||
Total Liabilities | 23,445,718 | 23,204,539 | 19,915,083 | |||||||||||||||||||||||||||||||||||||||
Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds") | 22,958,969 | 0.36 | % | 22,710,284 | 0.39 | % | 19,487,688 | 0.80 | % | |||||||||||||||||||||||||||||||||
Shareholders' equity | 2,637,098 | 2,544,866 | 2,337,016 | |||||||||||||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 26,082,816 | $ | 25,749,405 | $ | 22,252,099 | ||||||||||||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 167,428 | 2.79 | % | 164,578 | 2.75 | % | $ | 163,970 | 3.21 | % | ||||||||||||||||||||||||||||||||
Tax equivalent adjustment | (2,979 | ) | (2,987 | ) | $ | (3,224 | ) | |||||||||||||||||||||||||||||||||||
Net interest income | $ | 164,449 | $ | 161,591 | $ | 160,746 | ||||||||||||||||||||||||||||||||||||
(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 "Loans, net of unearned income" 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 | |||||||||||||||||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 7,128,997 | $ | 7,101,363 | $ | 6,986,528 | $ | 6,875,872 | $ | 6,746,766 | 0.4 | % | 5.7 | % | |||||||||||||||||
Commercial and industrial | 4,033,367 | 4,024,879 | 4,030,750 | 4,451,228 | 4,446,750 | 0.2 | % | (9.3 | ) | % | |||||||||||||||||||||
Real estate - residential mortgage | 3,183,585 | 3,087,529 | 2,975,516 | 2,769,682 | 2,670,019 | 3.1 | % | 19.2 | % | ||||||||||||||||||||||
Real estate - home equity | 1,175,218 | 1,212,113 | 1,237,602 | 1,271,190 | 1,300,132 | (3.0 | ) | % | (9.6 | ) | % | ||||||||||||||||||||
Real estate - construction | 1,054,718 | 1,009,284 | 981,589 | 941,079 | 929,529 | 4.5 | % | 13.5 | % | ||||||||||||||||||||||
Consumer | 459,038 | 468,678 | 464,851 | 465,728 | 466,415 | (2.1 | ) | % | (1.6 | ) | % | ||||||||||||||||||||
Equipment lease financing | 266,405 | 279,059 | 279,217 | 284,658 | 284,566 | (4.5 | ) | % | (6.4 | ) | % | ||||||||||||||||||||
Other(1) | (9,455 | ) | (18,817 | ) | (28,656 | ) | 13,443 | 15,890 | (49.8 | ) | % | N/M | |||||||||||||||||||
Loans, net of unearned income before PPP | 17,291,873 | 17,164,088 | 16,927,397 | 17,072,880 | 16,860,067 | 0.7 | % | 2.6 | % | ||||||||||||||||||||||
PPP | 1,688,713 | 1,830,426 | 1,953,122 | 1,258,917 | — | (7.7 | ) | % | N/M | ||||||||||||||||||||||
Total Loans, net of unearned income | $ | 18,980,586 | $ | 18,994,514 | $ | 18,880,519 | $ | 18,331,797 | $ | 16,860,067 | (0.1 | ) | % | 12.6 | % | ||||||||||||||||
Deposits, by type: | |||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 6,672,832 | $ | 6,477,228 | $ | 6,270,683 | $ | 5,789,788 | $ | 4,307,027 | 3.0 | % | 54.9 | % | |||||||||||||||||
Interest-bearing demand | 5,832,174 | 5,762,150 | 5,591,548 | 5,103,419 | 4,649,905 | 1.2 | % | 25.4 | % | ||||||||||||||||||||||
Savings | 6,137,084 | 5,905,137 | 5,716,050 | 5,446,368 | 5,127,662 | 3.9 | % | 19.7 | % | ||||||||||||||||||||||
Total demand and savings | 18,642,090 | 18,144,515 | 17,578,281 | 16,339,575 | 14,084,594 | 2.7 | % | 32.4 | % | ||||||||||||||||||||||
Brokered | 324,364 | 340,451 | 314,721 | 312,121 | 275,359 | (4.7 | ) | % | 17.8 | % | |||||||||||||||||||||
Time | 2,150,570 | 2,306,556 | 2,495,445 | 2,624,962 | 2,761,474 | (6.8 | ) | % | (22.1 | ) | % | ||||||||||||||||||||
Total Deposits | $ | 21,117,024 | $ | 20,791,522 | $ | 20,388,447 | $ | 19,276,658 | $ | 17,121,427 | 1.6 | % | 23.3 | % | |||||||||||||||||
Short-term borrowings, by type: | |||||||||||||||||||||||||||||||
Customer funding | $ | 570,775 | $ | 622,623 | $ | 613,127 | $ | 546,716 | $ | 428,240 | (8.3 | ) | % | 33.3 | % | ||||||||||||||||
Federal funds purchased | — | — | — | 74,231 | 186,868 | N/M | (100.0 | ) | % | ||||||||||||||||||||||
Short-term FHLB advances and other borrowings | — | — | — | 86,824 | 687,937 | N/M | (100.0 | ) | % | ||||||||||||||||||||||
Total Short-term borrowings | $ | 570,775 | $ | 622,623 | $ | 613,127 | $ | 707,771 | $ | 1,303,045 | (8.3 | ) | % | (56.2 | ) | % | |||||||||||||||
(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 | |||||||||||||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||||||||
Allowance for credit losses related to Loans, net of unearned income: | |||||||||||||||||||||||||
Balance at beginning of period | $ | 277,567 | $ | 266,825 | $ | 256,537 | $ | 238,508 | $ | 163,620 | |||||||||||||||
Impact of adopting CECL | — | — | — | — | 45,724 | ||||||||||||||||||||
Loans charged off: | |||||||||||||||||||||||||
Commercial and industrial | (4,319 | ) | (1,567 | ) | (2,969 | ) | (3,480 | ) | (10,899 | ) | |||||||||||||||
Real estate - commercial mortgage | (1,837 | ) | (300 | ) | (746 | ) | (2,324 | ) | (855 | ) | |||||||||||||||
Consumer and home equity | (847 | ) | (668 | ) | (1,093 | ) | (1,303 | ) | (1,529 | ) | |||||||||||||||
Real estate - residential mortgage | (192 | ) | — | (198 | ) | (235 | ) | (187 | ) | ||||||||||||||||
Real estate - construction | (39 | ) | — | — | (17 | ) | — | ||||||||||||||||||
Equipment lease financing and other | (968 | ) | (483 | ) | (483 | ) | (688 | ) | (533 | ) | |||||||||||||||
Total loans charged off | (8,202 | ) | (3,018 | ) | (5,489 | ) | (8,047 | ) | (14,003 | ) | |||||||||||||||
Recoveries of loans previously charged off: | |||||||||||||||||||||||||
Commercial and industrial | 769 | 4,581 | 2,103 | 2,978 | 1,734 | ||||||||||||||||||||
Real estate - commercial mortgage | 174 | 588 | 100 | 95 | 244 | ||||||||||||||||||||
Consumer and home equity | 440 | 594 | 491 | 649 | 646 | ||||||||||||||||||||
Real estate - residential mortgage | 95 | 199 | 95 | 112 | 85 | ||||||||||||||||||||
Real estate - construction | 384 | 179 | 4,873 | — | 70 | ||||||||||||||||||||
Equipment lease financing and other | 159 | 219 | 185 | 92 | 108 | ||||||||||||||||||||
Recoveries of loans previously charged off | 2,021 | 6,360 | 7,847 | 3,926 | 2,887 | ||||||||||||||||||||
Net loans recovered (charged off) | (6,181 | ) | 3,342 | 2,358 | (4,121 | ) | (11,116 | ) | |||||||||||||||||
Provision for credit losses | (5,400 | ) | 7,400 | 7,930 | 22,150 | 40,280 | |||||||||||||||||||
Balance at end of period | $ | 265,986 | $ | 277,567 | $ | 266,825 | $ | 256,537 | $ | 238,508 | |||||||||||||||
Net charge-offs (recoveries) to average loans (annualized) | 0.13 | % | (0.07 | ) | % | (0.05 | ) | % | 0.09 | % | 0.26 | % | |||||||||||||
Allowance credit losses related to OBS Credit Exposures(1) | |||||||||||||||||||||||||
Balance at beginning of period | $ | 14,373 | $ | 15,533 | $ | 16,383 | $ | 18,963 | $ | 2,588 | |||||||||||||||
Impact of adopting CECL | — | — | — | — | 12,625 | ||||||||||||||||||||
Provision for credit losses | (100 | ) | (1,160 | ) | (850 | ) | (2,580 | ) | 3,750 | ||||||||||||||||
Balance at end of period | $ | 14,273 | $ | 14,373 | $ | 15,533 | $ | 16,383 | $ | 18,963 | |||||||||||||||
NON-PERFORMING ASSETS: | |||||||||||||||||||||||||
Non-accrual loans | $ | 143,889 | $ | 137,198 | $ | 128,321 | $ | 125,037 | $ | 120,345 | |||||||||||||||
Loans 90 days past due and accruing | 8,559 | 9,929 | 13,761 | 14,767 | 19,593 | ||||||||||||||||||||
Total non-performing loans | 152,448 | 147,127 | 142,082 | 139,804 | 139,938 | ||||||||||||||||||||
Other real estate owned | 3,664 | 4,178 | 4,565 | 5,418 | 6,593 | ||||||||||||||||||||
Total non-performing assets | $ | 156,112 | $ | 151,305 | $ | 146,647 | $ | 145,222 | $ | 146,531 | |||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | |||||||||||||||||||||||||
Commercial and industrial | $ | 31,871 | $ | 32,610 | $ | 37,224 | $ | 39,730 | $ | 41,318 | |||||||||||||||
Real estate - commercial mortgage | 54,164 | 52,647 | 43,426 | 42,374 | 36,538 | ||||||||||||||||||||
Real estate - residential mortgage | 36,152 | 30,793 | 28,287 | 22,887 | 25,832 | ||||||||||||||||||||
Consumer and home equity | 13,072 | 13,090 | 12,292 | 11,911 | 11,226 | ||||||||||||||||||||
Real estate - construction | 1,440 | 1,550 | 4,051 | 4,525 | 4,379 | ||||||||||||||||||||
Equipment lease financing and other | 15,749 | 16,437 | 16,802 | 18,377 | 20,645 | ||||||||||||||||||||
Total non-performing loans | $ | 152,448 | $ | 147,127 | $ | 142,082 | $ | 139,804 | $ | 139,938 | |||||||||||||||
(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 | ||||||||||||||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||||||||||
Common shareholders' equity (tangible), per share | ||||||||||||||||||||||||||
Shareholders' equity | $ | 2,629,655 | $ | 2,616,828 | $ | 2,390,261 | $ | 2,340,501 | $ | 2,285,748 | ||||||||||||||||
Less: Preferred stock | (192,878 | ) | (192,878 | ) | — | — | — | |||||||||||||||||||
Less: Goodwill and intangible assets | (536,544 | ) | (536,659 | ) | (534,907 | ) | (535,039 | ) | (535,171 | ) | ||||||||||||||||
Tangible common shareholders' equity (numerator) | $ | 1,900,233 | $ | 1,887,291 | $ | 1,855,354 | $ | 1,805,462 | $ | 1,750,577 | ||||||||||||||||
Shares outstanding, end of period (denominator) | 162,518 | 162,350 | 162,134 | 161,958 | 161,435 | |||||||||||||||||||||
Common shareholders' equity (tangible), per share | $ | 11.69 | $ | 11.62 | $ | 11.44 | $ | 11.15 | $ | 10.84 | ||||||||||||||||
Return on average common shareholders' equity (tangible) | ||||||||||||||||||||||||||
Net income available to common shareholders | $ | 70,472 | $ | 48,690 | $ | 61,610 | $ | 39,558 | $ | 26,047 | ||||||||||||||||
Plus: Intangible amortization, net of tax | 90 | 104 | 103 | 104 | 104 | |||||||||||||||||||||
(Numerator) | $ | 70,562 | $ | 48,794 | $ | 61,713 | $ | 39,662 | $ | 26,151 | ||||||||||||||||
Average shareholders' equity | $ | 2,637,098 | $ | 2,544,866 | $ | 2,374,091 | $ | 2,309,133 | $ | 2,337,016 | ||||||||||||||||
Less: Average preferred stock | (192,878 | ) | (127,639 | ) | — | — | — | |||||||||||||||||||
Less: Average goodwill and intangible assets | (536,601 | ) | (535,474 | ) | (534,971 | ) | (535,103 | ) | (535,235 | ) | ||||||||||||||||
Average tangible common shareholders' equity (denominator) | $ | 1,907,619 | $ | 1,881,753 | $ | 1,839,120 | $ | 1,774,030 | $ | 1,801,781 | ||||||||||||||||
Return on average common shareholders' equity (tangible), annualized | 15.00 | % | 10.32 | % | 13.50 | % | 8.99 | % | 5.84 | % | ||||||||||||||||
Tangible common equity to tangible assets (TCE Ratio) | ||||||||||||||||||||||||||
Shareholders' equity | $ | 2,629,655 | $ | 2,616,828 | $ | 2,390,261 | $ | 2,340,501 | $ | 2,285,748 | ||||||||||||||||
Less: Preferred stock | (192,878 | ) | (192,878 | ) | — | — | — | |||||||||||||||||||
Less: Goodwill and intangible assets | (536,544 | ) | (536,659 | ) | (534,907 | ) | (535,039 | ) | (535,171 | ) | ||||||||||||||||
Tangible common shareholders' equity (numerator) | $ | 1,900,233 | $ | 1,887,291 | $ | 1,855,354 | $ | 1,805,462 | $ | 1,750,577 | ||||||||||||||||
Total assets | $ | 25,892,990 | $ | 25,906,733 | $ | 25,543,281 | $ | 24,617,863 | $ | 22,929,859 | ||||||||||||||||
Less: Goodwill and intangible assets | (536,544 | ) | (536,659 | ) | (534,907 | ) | (535,039 | ) | (535,171 | ) | ||||||||||||||||
Total tangible assets (denominator) | $ | 25,356,446 | $ | 25,370,074 | $ | 25,008,374 | $ | 24,082,824 | $ | 22,394,688 | ||||||||||||||||
Tangible common equity to tangible assets | 7.49 | % | 7.44 | % | 7.42 | % | 7.50 | % | 7.82 | % | ||||||||||||||||
Efficiency ratio | ||||||||||||||||||||||||||
Non-interest expense | $ | 178,384 | $ | 154,737 | $ | 139,145 | $ | 143,006 | $ | 142,552 | ||||||||||||||||
Less: Amortization of tax credit investments | (1,531 | ) | (1,532 | ) | (1,694 | ) | (1,450 | ) | (1,450 | ) | ||||||||||||||||
Less: Intangible amortization | (115 | ) | (132 | ) | (132 | ) | (132 | ) | (132 | ) | ||||||||||||||||
Less: 2020 cost savings initiatives | — | (15,400 | ) | (800 | ) | — | — | |||||||||||||||||||
Less: Debt extinguishment costs | (32,163 | ) | — | — | (2,878 | ) | — | |||||||||||||||||||
Non-interest expense (numerator) | $ | 144,575 | $ | 137,673 | $ | 136,519 | $ | 138,546 | $ | 140,970 | ||||||||||||||||
Net interest income (fully taxable equivalent) | $ | 167,428 | $ | 164,578 | $ | 157,106 | $ | 155,854 | $ | 163,970 | ||||||||||||||||
Plus: Total Non-interest income | 95,397 | 55,574 | 63,248 | 55,922 | 54,644 | |||||||||||||||||||||
Less: Investment securities gains, net | (33,475 | ) | — | (2 | ) | (3,005 | ) | (46 | ) | |||||||||||||||||
Total revenue (denominator) | $ | 229,350 | $ | 220,152 | $ | 220,352 | $ | 208,771 | $ | 218,568 | ||||||||||||||||
Efficiency ratio | 63.0 | % | 62.5 | % | 62.0 | % | 66.4 | % | 64.5 | % | ||||||||||||||||
Three months ended | ||||||||||||||||||||||||||
Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | ||||||||||||||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||||||||||
Asset Quality, excluding PPP | ||||||||||||||||||||||||||
Net loans recovered (charged-off) (numerator) | $ | (6,181 | ) | $ | 3,342 | $ | 2,358 | $ | (4,121 | ) | $ | (11,116 | ) | |||||||||||||
Average loans, net of unearned income | $ | 18,980,586 | $ | 18,994,514 | $ | 18,880,519 | $ | 18,331,797 | $ | 16,860,067 | ||||||||||||||||
Less: Average PPP loans | (1,688,713 | ) | (1,830,426 | ) | (1,953,122 | ) | (1,258,917 | ) | — | |||||||||||||||||
Total adjusted average loans (denominator) | $ | 17,291,873 | $ | 17,164,088 | $ | 16,927,397 | $ | 17,072,880 | $ | 16,860,067 | ||||||||||||||||
Net charge-offs (recoveries) to average loans (annualized) | 0.14 | % | (0.08 | )% | (0.06 | )% | 0.10 | % | 0.26 | % | ||||||||||||||||
Non-performing loans (numerator) | $ | 152,448 | $ | 147,127 | $ | 142,082 | $ | 139,804 | $ | 139,938 | ||||||||||||||||
Loans, net of unearned income | $ | 18,990,986 | $ | 18,900,820 | $ | 19,028,621 | $ | 18,704,722 | $ | 17,077,403 | ||||||||||||||||
Less: PPP loans | (1,688,394 | ) | (1,581,712 | ) | (1,960,165 | ) | (1,937,034 | ) | — | |||||||||||||||||
Total adjusted loans (denominator) | $ | 17,302,592 | $ | 17,319,108 | $ | 17,068,456 | $ | 16,767,688 | $ | 17,077,403 | ||||||||||||||||
Non-performing loans to adjusted total loans | 0.88 | % | 0.85 | % | 0.83 | % | 0.83 | % | 0.82 | % | ||||||||||||||||
ACL - loans (numerator) | $ | 265,986 | $ | 277,567 | 266,825 | 256,537 | $ | 238,508 | ||||||||||||||||||
Loans, net of unearned income | $ | 18,990,986 | $ | 18,900,820 | $ | 19,028,621 | $ | 18,704,722 | $ | 17,077,403 | ||||||||||||||||
Less: PPP loans | (1,688,394 | ) | (1,581,712 | ) | (1,960,165 | ) | (1,937,034 | ) | — | |||||||||||||||||
Total adjusted loans (denominator) | $ | 17,302,592 | $ | 17,319,108 | $ | 17,068,456 | $ | 16,767,688 | $ | 17,077,403 | ||||||||||||||||
ACL - loans to adjusted total loans | 1.54 | % | 1.60 | % | 1.56 | % | 1.53 | % | 1.40 | % | ||||||||||||||||
Pre-provision net revenue | ||||||||||||||||||||||||||
Net interest income | $ | 164,448 | $ | 161,591 | $ | 154,116 | $ | 152,754 | $ | 160,746 | ||||||||||||||||
Non-interest income | 95,397 | 55,574 | 63,248 | 55,922 | 54,644 | |||||||||||||||||||||
Less: Investment securities gains, net | (33,475 | ) | — | (2 | ) | (3,005 | ) | (46 | ) | |||||||||||||||||
Total revenue | $ | 226,370 | $ | 217,165 | $ | 217,362 | $ | 205,671 | $ | 215,344 | ||||||||||||||||
Non-interest expense | $ | 178,384 | $ | 154,737 | $ | 139,145 | $ | 143,006 | $ | 142,552 | ||||||||||||||||
Less: Debt extinguishment | (32,163 | ) | — | — | (2,878 | ) | — | |||||||||||||||||||
Less: Amortization on tax credit investments | (1,531 | ) | (1,532 | ) | (1,694 | ) | (1,450 | ) | (1,450 | ) | ||||||||||||||||
Less: Intangible amortization | (115 | ) | (132 | ) | (132 | ) | (132 | ) | (132 | ) | ||||||||||||||||
Total non-interest expense | $ | 144,575 | $ | 153,073 | $ | 137,319 | $ | 138,546 | $ | 140,970 | ||||||||||||||||
Pre-provision net revenue | $ | 81,795 | $ | 64,092 | $ | 80,043 | $ | 67,125 | $ | 74,374 | ||||||||||||||||
Note: numbers may not sum due to rounding. | ||||||||||||||||||||||||||
Category: Earnings
View source version on businesswire.com: https://www.businesswire.com/news/home/20210420006149/en/
Contacts:
Investor Contact: Matt Jozwiak (717) 327-2657
