Fulton Financial Corporation Announces Second Quarter 2024 Results
LANCASTER, Pa., July 16, 2024 /PRNewswire/ -- Fulton Financial Corporation (NASDAQ: FULT) ("Fulton" or the "Corporation") reported net income available to common shareholders of $92.4 million, or $0.52 per diluted share, for the second quarter of 2024, an increase of $33.0 million, or $0.16 per share, in comparison to the first quarter of 2024. Operating net income available to common shareholders for the three months ended June 30, 2024 was $82.5 million, or $0.47 per diluted share(1), an increase of $17.1 million, or $0.07 per share in comparison to the first quarter of 2024.
"The second quarter was an extraordinary quarter for Fulton. I want to personally thank both our new Republic teammates and our dedicated Fulton team for an exceptional effort," said Curtis J. Myers Chairman and CEO of Fulton Financial Corporation. "Fulton's solid performance, steady business trends and stable asset quality were supplemented by a meaningful contribution from the Republic transaction."
Republic Transaction
- On April 26, 2024, the Corporation announced that its wholly owned banking subsidiary, Fulton Bank, National Association ("Fulton Bank"), acquired substantially all of the assets and assumed substantially all of the deposits and certain liabilities of Republic First Bank, doing business as Republic Bank ("Republic Bank"), from the Federal Deposit Insurance Corporation (the "FDIC"), as receiver for Republic Bank (the "Acquisition"), pursuant to the terms of the Purchase and Assumption Agreement - Whole Bank, All Deposits, effective as of April 26, 2024 (the "Acquisition Date"), among the FDIC, as receiver of Republic Bank, the FDIC and Fulton Bank.
- The Acquisition included total assets with preliminary fair values of approximately $4.8 billion including total loans with preliminary fair values of approximately $2.5 billion and investments with a fair value of $1.9 billion. Following the Acquisition, the Corporation sold the acquired investments with a portion of the proceeds used to repay $1.4 billion of assumed borrowings. In the Acquisition, the Corporation assumed $4.1 billion of deposits without a premium. Additionally, the Corporation received $809.9 million in cash from the FDIC and $208.5 million in cash reflected on Republic Bank's balance sheet.
(1) | Financial measure derived by methods other than generally accepted accounting principles ("GAAP"). Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of the press release. |
Financial Highlights
Second quarter of 2024 results were impacted by the following items:
- Preliminary gain on acquisition of $47.4 million (net of tax).
- Core deposit intangible of $92.6 million in connection with the Acquisition resulting in intangible amortization expense of $4.1 million for the quarter.
- Provision for credit losses of $23.4 million related to non-purchased credit deteriorated loans acquired in the Acquisition.
- Acquisition-related expenses of $13.8 million.
- Pre-tax gain of $20.3 million in connection with a sale-leaseback transaction (the "Sale-Leaseback Transaction") involving 40 Fulton Bank financial center office locations.
- Restructured a portion of the available-for-sale investment portfolio and realized a pre-tax loss of $20.3 million on the sale of $356.4 million of investment securities with the proceeds reinvested in higher-yielding securities of a similar type and similar duration.
- FultonFirst implementation and asset disposal costs of $6.3 million.
- Issued 19,166,667 shares of common stock at $15.00 per share resulting in proceeds of approximately $273.0 million net of issuance costs.
The following items highlight notable changes in the components of net income in the second quarter of 2024 compared to the first quarter of 2024:
- Net interest income totaled $241.7 million, an increase of $34.8 million. The Acquisition contributed approximately $30.7 million to the increase.
- Net interest margin was 3.43%, an increase of 11 basis points, entirely due to the Acquisition.
- Non-interest income before investment securities gains (losses) was $113.3 million compared to $57.1 million in the first quarter of 2024. The increase was primarily due to a $47.4 million gain on acquisition (net of tax) as well as $2.8 million from Republic Bank's operations. The remaining $6.1 million increase in non-interest income included a $1.3 million decrease in losses from equity method investments, a $0.9 million increase in merchant fee income due to seasonality and a merchant fee increase during the quarter, a $0.9 million increase in mortgage banking income from higher loan volumes and higher spreads, an $0.8 million increase in wealth management revenues due to an increase in assets under management in the brokerage business due to equity market returns and organic sales results, a $0.6 million increase in cash management fee income due to an increase in account analysis fees with customers electing to move funds to interest-bearing accounts along with a pricing increase and a $0.3 million increase in gains from Small Business Administration loan sales.
- Excluding the $20.3 million gain on the Sale-Leaseback Transaction, reflected in other expense, non-interest expense was $219.8 million compared to $177.6 million in the first quarter of 2024. The increase was largely due to $13.8 million of Acquisition-related expenses and $21.1 million from Republic Bank's operations. The remaining increase of $7.3 million was primarily due to a $6.7 million increase in salaries and benefits expense as a result of an increase in variable incentive expenses, the impact of the annual merit increases and approximately $1.0 million of severance costs related to the FultonFirst initiative.
Balance Sheet Summary
- Net loans totaled $24.1 billion, an increase of $2.7 billion compared to $21.4 billion as of March 31, 2024. The increase was primarily due to the Acquisition resulting in an increase of $2.5 billion based on preliminary fair values as of the Acquisition Date. The reduction in fair value on the acquired loans as of the Acquisition Date was $378.9 million, which included an adjustment for interest rates of $299.5 million, an adjustment for credit of $55.9 million on purchased credit deteriorated ("PCD") loans and an adjustment for credit of $23.4 million for non-PCD loans. Excluding the impact from the day 1 PCD credit-related adjustment of $55.9 million and purchase accounting accretion of $10.4 million, net loans acquired from Republic Bank declined approximately $33.1 million subsequent to the Acquisition Date. Excluding the Acquisition, net loans increased $123.6 million largely due to increases of $102.9 million and $63.8 million in residential mortgage loans and construction loans, respectively, partially offset by a decrease of $25.7 million in consumer loans and a $19.8 million decrease in leases and other loans.
- Deposits totaled $25.6 billion, an increase of $3.8 billion compared to $21.7 billion as of March 31, 2024. The increase was primarily due to the Acquisition resulting in an increase of $3.6 billion based on preliminary fair values as of the Acquisition Date. Deposits assumed in the Acquisition declined approximately $357.3 million subsequent to the Acquisition Date. Excluding the Acquisition, deposits increased $62.7 million largely due to increases of $180.1 million, $159.4 million and $102.8 million in interest-bearing demand deposits, time deposits and savings deposits, respectively, partially offset by decreases of $190.8 million in brokered deposits and $188.8 million in noninterest-bearing demand deposits.
Provision for Credit Losses and Asset Quality
- The provision for credit losses was $32.1 million in the second quarter of 2024 compared to $10.9 million in the first quarter of 2024. The increase was primarily related to the Acquisition, which included a provision for credit losses of $23.4 million for non-PCD loans. Excluding the Acquisition, the provision declined $2.2 million primarily due to a $1.4 million reduction in the reserve for unfunded commitments.
- Non-performing assets were $163.8 million, or 0.52% of total assets, at June 30, 2024, in comparison to $156.4 million, or 0.57% of total assets, at March 31, 2024. The dollar increase was largely due to the Acquisition.
- Net charge-offs for the second quarter of 2024 were 0.19% of total average loans in comparison to 0.16% in the first quarter of 2024.
- The allowance for credit losses attributable to net loans totaled $375.9 million, or 1.56% of total loans at June 30, 2024, an increase of $78.1 million. The Acquisition resulted in a $79.4 million increase in the allowance for credit losses.
Additional information on Fulton is available on the Internet at www.fultonbank.com.
Safe Harbor Statement
This press release may contain forward-looking statements with respect to the Corporation's financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," "projects," the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation's future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation's business or financial results.
Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, the statements are based on current beliefs, expectations and assumptions regarding the future of the Corporation's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation's control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov).
Non-GAAP Financial Measures
The Corporation uses certain financial measures in this press release that have been derived from methods other than GAAP. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this press release.
FULTON FINANCIAL CORPORATION | ||||||||||
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) | ||||||||||
(dollars in thousands, except per share and shares data) | ||||||||||
Three months ended | ||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | ||||||
2024 | 2024 | 2023 | 2023 | 2023 | ||||||
Ending Balances | ||||||||||
Investment securities | $ 4,184,027 | $ 3,783,392 | $ 3,666,274 | $ 3,698,601 | $ 3,867,334 | |||||
Net loans | 24,106,297 | 21,444,483 | 21,351,094 | 21,177,508 | 21,044,685 | |||||
Total assets | 31,769,813 | 27,642,957 | 27,571,915 | 27,375,177 | 27,403,163 | |||||
Deposits | 25,559,654 | 21,741,950 | 21,537,623 | 21,421,589 | 21,206,540 | |||||
Shareholders' equity | 3,101,609 | 2,757,679 | 2,760,139 | 2,566,693 | 2,642,152 | |||||
Average Balances | ||||||||||
Investment securities | 4,043,136 | 3,672,844 | 3,665,261 | 3,834,824 | 3,916,130 | |||||
Net loans | 23,345,914 | 21,370,033 | 21,255,779 | 21,121,277 | 20,866,235 | |||||
Total assets | 30,774,891 | 27,427,626 | 27,397,671 | 27,377,836 | 27,235,567 | |||||
Deposits | 24,642,954 | 21,378,754 | 21,476,548 | 21,357,295 | 21,207,143 | |||||
Shareholders' equity | 2,952,671 | 2,766,945 | 2,618,024 | 2,645,977 | 2,647,464 | |||||
Income Statement | ||||||||||
Net interest income | 241,720 | 206,937 | 212,006 | 213,842 | 212,852 | |||||
Provision for credit losses | 32,056 | 10,925 | 9,808 | 9,937 | 9,747 | |||||
Non-interest income | 92,994 | 57,140 | 59,378 | 55,961 | 60,585 | |||||
Non-interest expense | 199,488 | 177,600 | 180,552 | 171,020 | 168,018 | |||||
Income before taxes | 103,170 | 75,552 | 81,024 | 88,846 | 95,672 | |||||
Net income available to common shareholders | 92,413 | 59,379 | 61,701 | 69,535 | 77,045 | |||||
Per Share | ||||||||||
Net income available to common shareholders (basic) | $0.53 | $0.36 | $0.38 | $0.42 | $0.46 | |||||
Net income available to common shareholders (diluted) | $0.52 | $0.36 | $0.37 | $0.42 | $0.46 | |||||
Operating net income available to common shareholders(1) | $0.47 | $0.40 | $0.42 | $0.43 | $0.47 | |||||
Cash dividends | $0.17 | $0.17 | $0.17 | $0.16 | $0.16 | |||||
Common shareholders' equity | $16.00 | $15.82 | $15.67 | $14.47 | $14.75 | |||||
Common shareholders' equity (tangible)(1) | $12.43 | $12.37 | $12.25 | $11.05 | $11.36 | |||||
Weighted average shares (basic) | 175,305 | 162,706 | 163,975 | 164,566 | 165,854 | |||||
Weighted average shares (diluted) | 176,934 | 164,520 | 165,650 | 166,023 | 167,191 | |||||
(1) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release. | ||||||||||
Three months ended | ||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | ||||||
2024 | 2024 | 2023 | 2023 | 2023 | ||||||
Asset Quality | ||||||||||
Net charge-offs to average loans | 0.19 % | 0.16 % | 0.15 % | 0.10 % | 0.04 % | |||||
Non-performing loans to total net loans | 0.67 % | 0.73 % | 0.72 % | 0.67 % | 0.70 % | |||||
Non-performing assets to total assets | 0.52 % | 0.57 % | 0.56 % | 0.52 % | 0.55 % | |||||
ACL - loans(1) to total loans | 1.56 % | 1.39 % | 1.37 % | 1.38 % | 1.37 % | |||||
ACL - loans(1) to non-performing loans | 232 % | 191 % | 191 % | 208 % | 195 % | |||||
Profitability | ||||||||||
Return on average assets | 1.24 % | 0.91 % | 0.93 % | 1.04 % | 1.17 % | |||||
Operating return on average assets(2) | 1.11 % | 1.00 % | 1.03 % | 1.08 % | 1.18 % | |||||
Return on average common shareholders' equity | 13.47 % | 9.28 % | 10.09 % | 11.25 % | 12.59 % | |||||
Operating return on average common shareholders' equity (tangible)(2) | 15.56 % | 13.08 % | 14.68 % | 15.17 % | 16.52 % | |||||
Net interest margin | 3.43 % | 3.32 % | 3.36 % | 3.40 % | 3.40 % | |||||
Efficiency ratio(2) | 62.6 % | 63.2 % | 62.0 % | 61.5 % | 60.1 % | |||||
Non-interest expense to total average assets | 2.61 % | 2.60 % | 2.61 % | 2.48 % | 2.47 % | |||||
Operating non-interest expense to total average assets(2) | 2.55 % | 2.49 % | 2.47 % | 2.47 % | 2.46 % | |||||
Capital Ratios(3) | ||||||||||
Tangible common equity ratio ("TCE")(2) | 7.3 % | 7.4 % | 7.4 % | 6.8 % | 7.0 % | |||||
Tier 1 leverage ratio | 9.0 % | 9.3 % | 9.5 % | 9.4 % | 9.3 % | |||||
Common equity Tier 1 capital ratio | 10.3 % | 10.3 % | 10.3 % | 10.3 % | 10.1 % | |||||
Tier 1 risk-based capital ratio | 11.1 % | 11.1 % | 11.2 % | 11.1 % | 11.0 % | |||||
Total risk-based capital ratio | 13.8 % | 14.0 % | 14.0 % | 14.0 % | 13.8 % | |||||
(1) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet ("OBS") credit exposures. | ||||||||||
(2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release. | ||||||||||
(3) Regulatory capital ratios as of June 30, 2024 are preliminary estimates and prior periods are actual. | ||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) | ||||||||||
(dollars in thousands) | ||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | ||||||
2024 | 2024 | 2023 | 2023 | 2023 | ||||||
ASSETS | ||||||||||
Cash and due from banks | $ 333,238 | $ 247,581 | $ 300,343 | $ 304,042 | $ 123,779 | |||||
Other interest-earning assets | 1,188,341 | 231,389 | 373,772 | 222,781 | 505,141 | |||||
Loans held for sale | 26,822 | 10,624 | 15,158 | 20,368 | 14,673 | |||||
Investment securities | 4,184,027 | 3,783,392 | 3,666,274 | 3,698,601 | 3,867,334 | |||||
Net loans | 24,106,297 | 21,444,483 | 21,351,094 | 21,177,508 | 21,044,685 | |||||
Less: ACL - loans(1) | (375,941) | (297,888) | (293,404) | (292,739) | (287,442) | |||||
Loans, net | 23,730,356 | 21,146,595 | 21,057,690 | 20,884,769 | 20,757,243 | |||||
Net premises and equipment | 180,642 | 213,541 | 222,881 | 215,626 | 216,322 | |||||
Accrued interest receivable | 120,752 | 107,089 | 107,972 | 101,624 | 96,991 | |||||
Goodwill and intangible assets | 648,026 | 560,114 | 560,687 | 561,284 | 561,885 | |||||
Other assets | 1,357,609 | 1,342,632 | 1,267,138 | 1,366,082 | 1,259,795 | |||||
Total Assets | $ 31,769,813 | $ 27,642,957 | $ 27,571,915 | $ 27,375,177 | $ 27,403,163 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
Deposits | $ 25,559,654 | $ 21,741,950 | $ 21,537,623 | $ 21,421,589 | $ 21,206,540 | |||||
Borrowings | 2,178,597 | 2,296,040 | 2,487,526 | 2,370,112 | 2,719,114 | |||||
Other liabilities | 929,953 | 847,288 | 786,627 | 1,016,783 | 835,357 | |||||
Total Liabilities | 28,668,204 | 24,885,278 | 24,811,776 | 24,808,484 | 24,761,011 | |||||
Shareholders' equity | 3,101,609 | 2,757,679 | 2,760,139 | 2,566,693 | 2,642,152 | |||||
Total Liabilities and Shareholders' Equity | $ 31,769,813 | $ 27,642,957 | $ 27,571,915 | $ 27,375,177 | $ 27,403,163 | |||||
LOANS, DEPOSITS AND BORROWINGS DETAIL: | ||||||||||
Loans, by type: | ||||||||||
Real estate - commercial mortgage | $ 9,289,770 | $ 8,252,117 | $ 8,127,728 | $ 8,106,300 | $ 7,846,861 | |||||
Commercial and industrial | 4,967,796 | 4,467,589 | 4,545,552 | 4,577,334 | 4,599,759 | |||||
Real estate - residential mortgage | 6,248,856 | 5,395,720 | 5,325,923 | 5,279,681 | 5,147,262 | |||||
Real estate - home equity | 1,120,878 | 1,040,335 | 1,047,184 | 1,045,438 | 1,061,891 | |||||
Real estate - construction | 1,463,799 | 1,249,199 | 1,239,075 | 1,078,263 | 1,308,564 | |||||
Consumer | 692,086 | 698,421 | 729,318 | 743,976 | 763,530 | |||||
Leases and other loans(2) | 323,112 | 341,102 | 336,314 | 346,516 | 316,818 | |||||
Total Net Loans | $ 24,106,297 | $ 21,444,483 | $ 21,351,094 | $ 21,177,508 | $ 21,044,685 | |||||
Deposits, by type: | ||||||||||
Noninterest-bearing demand | $ 5,609,383 | $ 5,086,514 | $ 5,314,094 | $ 5,575,374 | $ 5,865,855 | |||||
Interest-bearing demand | 7,478,077 | 5,521,017 | 5,722,695 | 5,757,487 | 5,543,320 | |||||
Savings | 7,563,495 | 6,846,038 | 6,616,901 | 6,707,729 | 6,646,448 | |||||
Total demand and savings | 20,650,955 | 17,453,569 | 17,653,690 | 18,040,590 | 18,055,623 | |||||
Brokered | 995,975 | 1,152,427 | 1,144,692 | 941,059 | 949,259 | |||||
Time | 3,912,724 | 3,135,954 | 2,739,241 | 2,439,940 | 2,201,658 | |||||
Total Deposits | $ 25,559,654 | $ 21,741,950 | $ 21,537,623 | $ 21,421,589 | $ 21,206,540 | |||||
Borrowings, by type: | ||||||||||
Federal funds purchased | $ — | $ — | $ 240,000 | $ 544,000 | $ 555,000 | |||||
Federal Home Loan Bank advances | 750,000 | 900,000 | 1,100,000 | 730,000 | 1,165,000 | |||||
Senior debt and subordinated debt | 535,741 | 535,566 | 535,384 | 540,174 | 539,994 | |||||
Other borrowings | 892,856 | 860,474 | 612,142 | 555,938 | 459,120 | |||||
Total Borrowings | $ 2,178,597 | $ 2,296,040 | $ 2,487,526 | $ 2,370,112 | $ 2,719,114 | |||||
(1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures. | ||||||||||
(2) Includes equipment lease financing, overdraft and net origination fees and costs. | ||||||||||
FULTON FINANCIAL CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||
(dollars in thousands, except per share and share data) | |||||||||||||||
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Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | Jun 30 | ||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | |||||||||
Net Interest Income: | |||||||||||||||
Interest income | $ 400,506 | $ 339,666 | $ 338,134 | $ 330,371 | $ 314,912 | $ 740,172 | $ 604,732 | ||||||||
Interest expense | 158,786 | 132,729 | 126,128 | 116,529 | 102,060 | 291,515 | 176,293 | ||||||||
Net Interest Income | 241,720 | 206,937 | 212,006 | 213,842 | 212,852 | 448,657 | 428,439 | ||||||||
Provision for credit losses | 32,056 | 10,925 | 9,808 | 9,937 | 9,747 | 42,981 | 34,291 | ||||||||
Net Interest Income after Provision | 209,664 | 196,012 | 202,198 | 203,905 | 203,105 | 405,676 | 394,148 | ||||||||
Non-Interest Income: | |||||||||||||||
Wealth management | 20,990 | 20,155 | 19,388 | 19,413 | 18,678 | 41,144 | 36,740 | ||||||||
Commercial banking: | |||||||||||||||
Merchant and card | 7,798 | 6,808 | 7,045 | 7,626 | 7,700 | 14,607 | 14,534 | ||||||||
Cash management | 6,966 | 6,305 | 6,030 | 5,960 | 5,835 | 13,271 | 11,350 | ||||||||
Capital markets | 2,585 | 2,341 | 4,258 | 2,960 | 6,092 | 4,926 | 8,436 | ||||||||
Other commercial banking | 4,061 | 3,375 | 3,447 | 3,176 | 3,518 | 7,434 | 6,338 | ||||||||
Total commercial banking | 21,410 | 18,829 | 20,780 | 19,722 | 23,145 | 40,238 | 40,658 | ||||||||
Consumer banking: | |||||||||||||||
Card | 8,305 | 6,628 | 6,739 | 6,770 | 6,592 | 14,933 | 12,835 | ||||||||
Overdraft | 3,377 | 2,786 | 2,991 | 2,996 | 2,696 | 6,163 | 5,429 | ||||||||
Other consumer banking | 2,918 | 2,254 | 2,357 | 2,407 | 2,432 | 5,172 | 4,673 | ||||||||
Total consumer banking | 14,600 | 11,668 | 12,087 | 12,173 | 11,720 | 26,268 | 22,937 | ||||||||
Mortgage banking | 3,951 | 3,090 | 2,288 | 3,190 | 2,940 | 7,041 | 4,910 | ||||||||
Gain on acquisition, net of tax | 47,392 | — | — | — | — | 47,392 | — | ||||||||
Other | 4,933 | 3,398 | 5,587 | 1,463 | 4,106 | 8,332 | 7,075 | ||||||||
Non-interest income before investment securities | 113,276 | 57,140 | 60,130 | 55,961 | 60,589 | 170,415 | 112,320 | ||||||||
Investment securities gains (losses), net | (20,282) | — | (752) | — | (4) | (20,282) | 19 | ||||||||
Total Non-Interest Income | 92,994 | 57,140 | 59,378 | 55,961 | 60,585 | 150,133 | 112,339 | ||||||||
Non-Interest Expense: | |||||||||||||||
Salaries and employee benefits | 110,630 | 95,481 | 97,275 | 96,757 | 94,102 | 206,111 | 183,385 | ||||||||
Data processing and software | 20,357 | 17,661 | 16,985 | 16,914 | 16,776 | 38,018 | 32,571 | ||||||||
Net occupancy | 17,793 | 16,149 | 14,647 | 14,561 | 14,374 | 33,943 | 28,812 | ||||||||
Other outside services | 16,933 | 13,283 | 14,670 | 12,094 | 10,834 | 30,216 | 20,960 | ||||||||
FDIC insurance | 6,696 | 6,104 | 11,138 | 4,738 | 4,895 | 12,800 | 9,690 | ||||||||
Intangible amortization | 4,688 | 573 | 597 | 601 | 1,072 | 5,261 | 1,746 | ||||||||
Equipment | 4,561 | 4,040 | 3,995 | 3,475 | 3,530 | 8,602 | 6,920 | ||||||||
Professional fees | 2,571 | 2,088 | 2,302 | 1,869 | 1,829 | 4,659 | 4,221 | ||||||||
Marketing | 2,101 | 1,912 | 3,550 | 1,913 | 1,655 | 4,012 | 3,541 | ||||||||
Acquisition-related expenses | 13,803 | — | — | — | — | 13,803 | — | ||||||||
Other | (645) | 20,309 | 15,393 | 18,098 | 18,951 | 19,662 | 35,790 | ||||||||
Total Non-Interest Expense | 199,488 | 177,600 | 180,552 | 171,020 | 168,018 | 377,087 | 327,636 | ||||||||
Income Before Income Taxes | 103,170 | 75,552 | 81,024 | 88,846 | 95,672 | 178,722 | 178,851 | ||||||||
Income tax expense | 8,195 | 13,611 | 16,761 | 16,749 | 16,065 | 21,806 | 30,931 | ||||||||
Net Income | 94,975 | 61,941 | 64,263 | 72,097 | 79,607 | 156,916 | 147,920 | ||||||||
Preferred stock dividends | (2,562) | (2,562) | (2,562) | (2,562) | (2,562) | (5,124) | (5,124) | ||||||||
Net Income Available to Common Shareholders | $ 92,413 | $ 59,379 | $ 61,701 | $ 69,535 | $ 77,045 | $ 151,792 | $ 142,796 | ||||||||
Three months ended | Six months ended | ||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | Jun 30 | ||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | |||||||||
PER SHARE: | |||||||||||||||
Net income available to common shareholders (basic) | $0.53 | $0.36 | $0.38 | $0.42 | $0.46 | $0.90 | $0.86 | ||||||||
Net income available to common shareholders (diluted) | $0.52 | $0.36 | $0.37 | $0.42 | $0.46 | $0.89 | $0.85 | ||||||||
Cash dividends | $0.17 | $0.17 | $0.17 | $0.16 | $0.16 | $0.34 | $0.31 | ||||||||
Weighted average shares (basic) | 175,305 | 162,706 | 163,975 | 164,566 | 165,854 | 169,006 | 166,227 | ||||||||
Weighted average shares (diluted) | 176,934 | 164,520 | 165,650 | 166,023 | 167,191 | 170,769 | 167,809 | ||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Three months ended | ||||||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||
Balance | Interest(1) | Rate | Balance | Interest(1) | Rate | Balance | Interest(1) | Rate | ||||||||||
ASSETS | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||
Net loans(2) | $ 23,345,914 | $ 355,533 | 6.12 % | $ 21,370,033 | $ 313,882 | 5.90 % | $ 20,866,235 | $ 287,154 | 5.52 % | |||||||||
Investment securities(3) | 4,396,050 | 33,799 | 3.07 % | 3,983,753 | 27,048 | 2.71 % | 4,234,096 | 27,303 | 2.57 % | |||||||||
Other interest-earning assets | 1,125,886 | 15,730 | 5.61 % | 249,079 | 3,328 | 5.36 % | 529,582 | 4,860 | 3.68 % | |||||||||
Total Interest-Earning Assets | 28,867,850 | 405,062 | 5.64 % | 25,602,865 | 344,258 | 5.40 % | 25,629,913 | 319,317 | 4.99 % | |||||||||
Noninterest-earning assets: | ||||||||||||||||||
Cash and due from banks | 302,381 | 282,895 | 129,682 | |||||||||||||||
Premises and equipment | 203,166 | 223,375 | 216,847 | |||||||||||||||
Other assets | 1,759,138 | 1,614,746 | 1,541,657 | |||||||||||||||
Less: ACL - loans(4) | (357,644) | (296,255) | (282,532) | |||||||||||||||
Total Assets | $ 30,774,891 | $ 27,427,626 | $ 27,235,567 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Demand deposits | $ 7,080,302 | $ 31,748 | 1.80 % | $ 5,596,725 | $ 20,500 | 1.47 % | $ 5,535,669 | $ 14,612 | 1.06 % | |||||||||
Savings deposits | 7,309,141 | 44,901 | 2.47 % | 6,669,228 | 38,797 | 2.34 % | 6,632,572 | 29,289 | 1.77 % | |||||||||
Brokered deposits | 1,123,328 | 15,074 | 5.40 % | 1,083,382 | 14,655 | 5.44 % | 954,773 | 12,135 | 5.10 % | |||||||||
Time deposits | 3,670,158 | 39,364 | 4.31 % | 2,968,344 | 29,622 | 4.01 % | 2,063,038 | 13,763 | 2.68 % | |||||||||
Total Interest-Bearing Deposits | 19,182,929 | 131,087 | 2.75 % | 16,317,679 | 103,574 | 2.55 % | 15,186,052 | 69,799 | 1.84 % | |||||||||
Borrowings and other interest-bearing | 2,441,691 | 27,699 | 4.53 % | 2,608,376 | 29,155 | 4.46 % | 2,790,860 | 32,261.2 | 4.60 % | |||||||||
Total Interest-Bearing Liabilities | 21,624,620 | 158,786 | 2.95 % | 18,926,055 | 132,729 | 2.82 % | 17,976,912 | 102,060 | 2.27 % | |||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||
Demand deposits | 5,460,025 | 5,061,075 | 6,021,091 | |||||||||||||||
Other liabilities | 737,575 | 673,551 | 590,100 | |||||||||||||||
Total Liabilities | 27,822,220 | 24,660,681 | 24,588,103 | |||||||||||||||
Shareholders' equity | 2,952,671 | 2,766,945 | 2,647,464 | |||||||||||||||
Total Liabilities and Shareholders' Equity | $ 30,774,891 | $ 27,427,626 | $ 27,235,567 | |||||||||||||||
Net interest income/net interest margin | 246,276 | 3.43 % | 211,529 | 3.32 % | 217,257 | 3.40 % | ||||||||||||
Tax equivalent adjustment | (4,556) | (4,592) | (4,405) | |||||||||||||||
Net Interest Income | $ 241,720 | $ 206,937 | $ 212,852 | |||||||||||||||
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. | ||||||||||||||||||
(2) Average balances include non-performing loans. | ||||||||||||||||||
(3) Average balances include amortized historical cost for available for sale ("AFS") securities; the related unrealized holding gains (losses) are included in other assets. | ||||||||||||||||||
(4) ACL - loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities. | ||||||||||||||||||
FULTON FINANCIAL CORPORATION | |||||||||||
AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED) | |||||||||||
(dollars in thousands) | |||||||||||
Three months ended | |||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | |||||||
2024 | 2023 | 2023 | 2023 | 2023 | |||||||
Loans, by type: | |||||||||||
Real estate - commercial mortgage | $ 8,958,139 | $ 8,166,018 | $ 8,090,627 | $ 7,912,801 | $ 7,775,436 | ||||||
Commercial and industrial | 4,853,583 | 4,517,179 | 4,579,441 | 4,611,376 | 4,629,919 | ||||||
Real estate - residential mortgage | 5,977,132 | 5,353,905 | 5,303,632 | 5,209,105 | 5,008,295 | ||||||
Real estate - home equity | 1,117,367 | 1,039,321 | 1,043,753 | 1,045,806 | 1,066,615 | ||||||
Real estate - construction | 1,430,057 | 1,240,640 | 1,153,601 | 1,254,577 | 1,306,286 | ||||||
Consumer | 685,183 | 721,523 | 746,011 | 761,273 | 763,407 | ||||||
Leases and other loans(1) | 324,453 | 331,447 | 338,714 | 326,339 | 316,277 | ||||||
Total Net Loans | $ 23,345,914 | $ 21,370,033 | $ 21,255,779 | $ 21,121,277 | $ 20,866,235 | ||||||
Deposits, by type: | |||||||||||
Noninterest-bearing demand | $ 5,460,025 | $ 5,061,075 | $ 5,440,098 | $ 5,672,411 | $ 6,021,091 | ||||||
Interest-bearing demand | 7,080,302 | 5,596,725 | 5,723,169 | 5,740,229 | 5,535,669 | ||||||
Savings | 7,309,141 | 6,669,228 | 6,682,512 | 6,676,792 | 6,632,572 | ||||||
Total demand and savings | 19,849,468 | 17,327,028 | 17,845,779 | 18,089,432 | 18,189,332 | ||||||
Brokered | 1,123,328 | 1,083,382 | 1,051,369 | 937,657 | 954,773 | ||||||
Time | 3,670,158 | 2,968,344 | 2,579,400 | 2,330,206 | 2,063,038 | ||||||
Total Deposits | $ 24,642,954 | $ 21,378,754 | $ 21,476,548 | $ 21,357,295 | $ 21,207,143 | ||||||
Borrowings, by type: | |||||||||||
Federal funds purchased | $ 32,637 | $ 173,659 | $ 446,707 | $ 634,163 | $ 679,401 | ||||||
Federal Home Loan Bank advances | 833,726 | 902,890 | 760,087 | 793,098 | 880,811 | ||||||
Senior debt and subordinated debt | 535,656 | 535,479 | 539,186 | 540,086 | 539,906 | ||||||
Other borrowings and other interest-bearing liabilities | 1,039,672 | 996,348 | 795,747 | 723,740 | 690,742 | ||||||
Total Borrowings | $ 2,441,691 | $ 2,608,376 | $ 2,541,727 | $ 2,691,087 | $ 2,790,860 | ||||||
(1) Includes equipment lease financing, overdraft and net origination fees and costs. | |||||||||||
FULTON FINANCIAL CORPORATION | |||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||
(dollars in thousands) | |||||||||||||
Six months ended June 30 | |||||||||||||
2024 | 2023 | ||||||||||||
Average | Yield/ | Average | Yield/ | ||||||||||
Balance | Interest(1) | Rate | Balance | Interest(1) | Rate | ||||||||
ASSETS | |||||||||||||
Interest-earning assets: | |||||||||||||
Net loans(2) | $ 22,357,972 | $ 669,414 | 6.02 % | $ 20,665,779 | $ 550,219 | 5.36 % | |||||||
Investment securities(3) | 4,189,901 | 60,847 | 2.90 % | 4,261,718 | 54,824 | 2.57 % | |||||||
Other interest-earning assets | 699,547 | 19,059 | 5.47 % | 511,456 | 8,508 | 3.34 % | |||||||
Total Interest-Earning Assets | 27,247,420 | 749,320 | 5.52 % | 25,438,953 | 613,551 | 4.85 % | |||||||
Noninterest-Earning assets: | |||||||||||||
Cash and due from banks | 292,638 | 135,436 | |||||||||||
Premises and equipment | 213,270 | 219,920 | |||||||||||
Other assets | 1,686,941 | 1,552,669 | |||||||||||
Less: ACL - loans(4) | (326,950) | (277,942) | |||||||||||
Total Assets | $ 29,113,319 | $ 27,069,036 | |||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
Interest-Bearing liabilities: | |||||||||||||
Demand deposits | $ 6,338,513 | $ 52,248 | 1.66 % | $ 5,431,696 | $ 23,067 | 0.86 % | |||||||
Savings deposits | 6,989,186 | 83,699 | 2.41 % | 6,551,470 | 49,824 | 1.53 % | |||||||
Brokered deposits | 1,103,356 | 29,728 | 5.42 % | 698,644 | 17,308 | 5.00 % | |||||||
Time deposits | 3,319,249 | 68,986 | 4.18 % | 1,880,970 | 21,221 | 2.28 % | |||||||
Total Interest-Bearing Deposits | 17,750,304 | 234,661 | 2.66 % | 14,562,780 | 111,420 | 1.54 % | |||||||
Borrowings and other interest-bearing liabilities | 2,525,034 | 56,854 | 4.49 % | 2,928,819 | 64,873 | 4.43 % | |||||||
Total Interest-Bearing Liabilities | 20,275,338 | 291,515 | 2.89 % | 17,491,599 | 176,293 | 2.03 % | |||||||
Noninterest-Bearing liabilities: | |||||||||||||
Demand deposits | 5,260,550 | 6,329,701 | |||||||||||
Other liabilities | 717,623 | 617,252 | |||||||||||
Total Liabilities | 26,253,511 | 24,438,552 | |||||||||||
Shareholders' equity | 2,859,808 | 2,630,484 | |||||||||||
Total Liabilities and Shareholders' Equity | $ 29,113,319 | $ 27,069,036 | |||||||||||
Net interest income/net interest margin (fully taxable | 457,805 | 3.37 % | 437,258 | 3.46 % | |||||||||
Tax equivalent adjustment | (9,148) | (8,819) | |||||||||||
Net Interest Income | $ 448,657 | $ 428,439 | |||||||||||
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. | |||||||||||||
(2) Average balances include non-performing loans. | |||||||||||||
(3) Average balances include amortized historical cost for AFS; the related unrealized holding gains (losses) are included in other assets. | |||||||||||||
(3) ACL - loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities. | |||||||||||||
FULTON FINANCIAL CORPORATION | ||||||
AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED) | ||||||
(dollars in thousands) | ||||||
Six months ended June 30 | ||||||
2024 | 2023 | |||||
Loans, by type: | ||||||
Real estate - commercial mortgage | $ 8,562,077 | $ 7,748,356 | ||||
Commercial and industrial | 4,685,383 | 4,598,097 | ||||
Real estate - residential mortgage | 5,665,518 | 4,900,182 | ||||
Real estate - home equity | 1,078,344 | 1,076,270 | ||||
Real estate - construction | 1,335,348 | 1,291,299 | ||||
Consumer | 703,353 | 742,445 | ||||
Leases and other loans(1) | 327,949 | 309,130 | ||||
Total Net Loans | $ 22,357,972 | $ 20,665,779 | ||||
Deposits, by type: | ||||||
Noninterest-bearing demand | $ 5,260,550 | $ 6,329,701 | ||||
Interest-bearing demand | 6,338,513 | 5,431,696 | ||||
Savings | 6,989,186 | 6,551,470 | ||||
Total demand and savings | 18,588,249 | 18,312,867 | ||||
Brokered | 1,103,356 | 698,644 | ||||
Time | 3,319,249 | 1,880,970 | ||||
Total Deposits | $ 23,010,854 | $ 20,892,481 | ||||
Borrowings, by type: | ||||||
Federal funds purchased | $ 103,148 | $ 592,753 | ||||
Federal Home Loan Bank advances | 868,308 | 1,070,148 | ||||
Senior debt and subordinated debt | 535,567 | 539,817 | ||||
Other borrowings | 1,018,011 | 726,101 | ||||
Total Borrowings | $ 2,525,034 | $ 2,928,819 | ||||
(1) Includes equipment lease financing, overdraft and net origination fees and costs. | ||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||
ASSET QUALITY INFORMATION (UNAUDITED) | ||||||||||||||
(dollars in thousands) | ||||||||||||||
Three months ended | Six months ended | |||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | Jun 30 | Jun 30 | ||||||||
2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | ||||||||
Allowance for credit losses related to net loans: | ||||||||||||||
Balance at beginning of period | $ 297,888 | $ 293,404 | $ 292,739 | $ 287,442 | $ 278,695 | $ 293,404 | $ 269,366 | |||||||
CECL day 1 provision expense(1) | 23,444 | — | — | — | — | 23,444 | — | |||||||
Initial purchased credit deteriorated allowance for credit | 55,906 | — | — | — | — | 55,906 | — | |||||||
Loans charged off: | ||||||||||||||
Real estate - commercial mortgage | (7,853) | (26) | (3,547) | (860) | (230) | (7,879) | (13,592) | |||||||
Commercial and industrial | (2,955) | (7,632) | (3,397) | (3,220) | (2,017) | (10,587) | (2,629) | |||||||
Real estate - residential mortgage | (35) | (251) | — | — | (62) | (286) | (62) | |||||||
Consumer and home equity | (1,766) | (2,238) | (2,192) | (1,803) | (1,313) | (4,004) | (3,519) | |||||||
Real estate - construction | — | — | — | — | — | — | — | |||||||
Leases and other loans(2) | (1,398) | (805) | (1,096) | (1,396) | (1,165) | (2,203) | (1,888) | |||||||
Total loans charged off | (14,007) | (10,952) | (10,232) | (7,279) | (4,787) | (24,959) | (21,690) | |||||||
Recoveries of loans previously charged off: | ||||||||||||||
Real estate - commercial mortgage | 146 | 152 | 160 | 101 | 29 | 298 | 815 | |||||||
Commercial and industrial | 796 | 1,248 | 779 | 620 | 988 | 2,044 | 2,074 | |||||||
Real estate - residential mortgage | 122 | 116 | 278 | 37 | 58 | 238 | 106 | |||||||
Consumer and home equity | 1,161 | 676 | 555 | 1,023 | 959 | 1,837 | 1,620 | |||||||
Real estate - construction | 233 | — | 87 | — | 569 | 233 | 771 | |||||||
Leases and other loans(2) | 247 | 162 | 374 | 400 | 213 | 409 | 329 | |||||||
Recoveries of loans previously charged off | 2,705 | 2,354 | 2,233 | 2,181 | 2,816 | 5,059 | 5,715 | |||||||
Net loans charged off | (11,302) | (8,598) | (7,999) | (5,098) | (1,971) | (19,900) | (15,975) | |||||||
Provision for credit losses(1) | 10,005 | 13,082 | 8,664 | 10,395 | 10,718 | 23,087 | 34,051 | |||||||
Balance at end of period | $ 375,941 | $ 297,888 | $ 293,404 | $ 292,739 | $ 287,442 | $ 375,941 | $ 287,442 | |||||||
Net charge-offs to average loans | 0.19 % | 0.16 % | 0.15 % | 0.10 % | 0.04 % | 0.18 % | 0.15 % | |||||||
Provision for credit losses related to OBS Credit Exposures | ||||||||||||||
Provision for credit losses(1) | $ (1,393) | $ (2,157) | $ 1,144 | $ (458) | $ (971) | $ (3,550) | $ 240 | |||||||
NON-PERFORMING ASSETS: | ||||||||||||||
Non-accrual loans | $ 135,367 | $ 129,628 | $ 121,620 | $ 113,022 | $ 123,280 | |||||||||
Loans 90 days past due and accruing | 26,962 | 26,521 | 31,721 | 27,962 | 24,415 | |||||||||
Total non-performing loans | 162,329 | 156,149 | 153,341 | 140,984 | 147,695 | |||||||||
Other real estate owned | 1,444 | 277 | 896 | 2,549 | 3,881 | |||||||||
Total non-performing assets | $ 163,773 | $ 156,426 | $ 154,237 | $ 143,533 | $ 151,576 | |||||||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||
Commercial and industrial | $ 50,817 | $ 44,118 | $ 41,020 | $ 33,365 | $ 30,588 | |||||||||
Real estate - commercial mortgage | 46,343 | 47,891 | 46,527 | 44,058 | 55,048 | |||||||||
Real estate - residential mortgage | 40,955 | 40,685 | 42,029 | 40,560 | 39,157 | |||||||||
Consumer and home equity | 11,589 | 10,172 | 10,878 | 11,580 | 10,469 | |||||||||
Leases and other loans(2) | 9,993 | 10,135 | 10,011 | 10,744 | 11,334 | |||||||||
Real estate - construction | 2,632 | 3,148 | 2,876 | 677 | 1,099 | |||||||||
Total non-performing loans | $ 162,329 | $ 156,149 | $ 153,341 | $ 140,984 | $ 147,695 | |||||||||
(1) The sum of these amounts are reflected in the provision for credit losses in the Condensed Consolidated Statements of Income. | ||||||||||||||
(2) Includes equipment lease financing, overdraft and net origination fees and costs. | ||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||
SUMMARY OF ASSETS ACQUIRED AND LIABILITIES ASSUMED IN ACQUISITION (UNAUDITED) | ||||||
(dollars in thousands) | ||||||
as of April 26, 2024 | ||||||
Assets | Fair Value | Adjusted Assets | ||||
Cash payment received from FDIC | $ 809,920 | $ — | $ 809,920 | |||
Assets acquired: | ||||||
Cash and due from banks | 208,451 | — | 208,451 | |||
Other interest-earning assets | 37,931 | — | 37,931 | |||
Investment securities | 1,961,099 | (22,528) | 1,938,571 | |||
Net loans | 2,883,930 | (378,890) | 2,505,040 | |||
Net premises and equipment | 2,669 | (1,699) | 970 | |||
Accrued interest receivable | 16,164 | — | 16,164 | |||
Goodwill and intangible assets | — | 92,600 | 92,600 | |||
Other assets | 11,715 | 67 | 11,782 | |||
Total Assets | $ 5,121,959 | $ (310,450) | $ 4,811,509 | |||
Liabilities assumed: | ||||||
Deposits | 4,112,325 | — | 4,112,325 | |||
Borrowings | 1,434,846 | 1,130 | 1,435,976 | |||
Other liabilities | 10,771 | 1,088 | 11,859 | |||
Total Liabilities | $ 5,557,942 | $ 2,218 | $ 5,560,160 | |||
Gain on acquisition, before tax | $ 61,269 | |||||
Gain on acquisition, net of tax | $ 47,392 | |||||
FULTON FINANCIAL CORPORATION | ||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
| ||||||||||||||
(dollars in thousands, except per share and share data) | ||||||||||||||
Explanatory | This press release contains supplemental financial information, as detailed below, that has been derived by methods other than GAAP. The | |||||||||||||
Three months ended | ||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | ||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||
Operating net income available to common shareholders | ||||||||||||||
Net income available to common shareholders | $ 92,413 | $ 59,379 | $ 61,701 | $ 69,535 | $ 77,045 | |||||||||
Plus: Core deposit intangible amortization | 4,556 | 441 | 441 | 441 | 912 | |||||||||
Plus: Acquisition-related expense | 13,803 | — | — | — | — | |||||||||
Less: Non-PCD credit-related interest income from acquisition | (571) | — | — | — | — | |||||||||
Plus: CECL day 1 provision expense | 23,444 | — | — | — | — | |||||||||
Plus: Interest rate derivative transition valuation(1) | (137) | (151) | (1,102) | 2,958 | — | |||||||||
Less: Gain on acquisition, net of tax | (47,392) | — | — | — | — | |||||||||
Plus: Loss on securities restructuring | 20,282 | — | — | — | — | |||||||||
Less: Gain on sale-leaseback | (20,266) | — | — | — | — | |||||||||
Plus: FDIC special assessment | — | 956 | 6,494 | — | — | |||||||||
Plus: FultonFirst implementation and asset disposals | 6,323 | 6,329 | 3,197 | — | — | |||||||||
Less: Tax impact of adjustments | (9,961) | (1,591) | (1,896) | (714) | (192) | |||||||||
Operating net income available to common shareholders (numerator) | $ 82,494 | $ 65,363 | $ 68,835 | $ 72,220 | $ 77,765 | |||||||||
Weighted average shares (diluted) (denominator) | 176,934 | 164,520 | 165,650 | 166,023 | 167,191 | |||||||||
Operating net income available to common shareholders, per share | $ 0.47 | $ 0.40 | $ 0.42 | $ 0.43 | $ 0.47 | |||||||||
Common shareholders' equity (tangible), per share | ||||||||||||||
Shareholders' equity | $ 3,101,609 | $ 2,757,679 | $ 2,760,139 | $ 2,566,693 | $ 2,642,152 | |||||||||
Less: Preferred stock | (192,878) | (192,878) | (192,878) | (192,878) | (192,878) | |||||||||
Less: Goodwill and intangible assets | (648,026) | (560,114) | (560,687) | (561,284) | (561,885) | |||||||||
Tangible common shareholders' equity (numerator) | $ 2,260,705 | $ 2,004,687 | $ 2,006,574 | $ 1,812,531 | $ 1,887,389 | |||||||||
Shares outstanding, end of period (denominator) | 181,831 | 162,087 | 163,801 | 164,084 | 166,097 | |||||||||
Common shareholders' equity (tangible), per share | $ 12.43 | $ 12.37 | $ 12.25 | $ 11.05 | $ 11.36 | |||||||||
(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. | ||||||||||||||
(2) Results are annualized. | ||||||||||||||
Three months ended | ||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | ||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||
Operating return on average assets(2) | ||||||||||||||
Net income | $ 94,975 | $ 61,941 | $ 64,263 | $ 72,097 | $ 79,607 | |||||||||
Plus: Core deposit intangible amortization | 4,556 | 441 | 441 | 441 | 912 | |||||||||
Plus: Acquisition-related expense | 13,803 | — | — | — | — | |||||||||
Less: Non-PCD credit-related interest income from acquisition | (571) | — | — | — | — | |||||||||
Plus: CECL day 1 provision expense | 23,444 | — | — | — | — | |||||||||
Plus: Interest rate derivative transition valuation(1) | (137) | (151) | (1,102) | 2,958 | — | |||||||||
Less: Gain on acquisition, net of tax | (47,392) | — | — | — | — | |||||||||
Plus: Loss on securities restructuring | 20,282 | — | — | — | — | |||||||||
Less: Gain on sale-leaseback | (20,266) | — | — | — | — | |||||||||
Plus: FDIC special assessment | — | 956 | 6,494 | — | — | |||||||||
Plus: FultonFirst implementation and asset disposals | 6,323 | 6,329 | 3,197 | — | — | |||||||||
Less: Tax impact of adjustments | (9,961) | (1,591) | (1,896) | (714) | (192) | |||||||||
Operating net income (numerator) | $ 85,056 | $ 67,925 | $ 71,397 | $ 74,782 | $ 80,327 | |||||||||
Total average assets | $ 30,774,891 | $ 27,427,626 | $ 27,397,671 | $ 27,377,836 | $ 27,235,567 | |||||||||
Less: Average net core deposit intangible | (68,234) | (4,666) | (5,106) | (5,548) | (6,417) | |||||||||
Total operating average assets (denominator) | $ 30,706,657 | $ 27,422,960 | $ 27,392,565 | $ 27,372,288 | $ 27,229,150 | |||||||||
Operating return on average assets | 1.11 % | 1.00 % | 1.03 % | 1.08 % | 1.18 % | |||||||||
Operating return on average common shareholders' equity (tangible)(2) | ||||||||||||||
Net income available to common shareholders | $ 92,413 | $ 59,379 | $ 61,701 | $ 69,535 | $ 77,045 | |||||||||
Plus: Intangible amortization | 4,688 | 573 | 597 | 601 | 1,072 | |||||||||
Plus: Acquisition-related expense | 13,803 | — | — | — | — | |||||||||
Less: Non-PCD credit-related interest income from acquisition | (571) | — | — | — | — | |||||||||
Plus: CECL day 1 provision expense | 23,444 | — | — | — | — | |||||||||
Plus: Interest rate derivative transition valuation(1) | (137) | (151) | (1,102) | 2,958 | — | |||||||||
Less: Gain on acquisition, net of tax | (47,392) | — | — | — | — | |||||||||
Plus: Loss on securities restructuring | 20,282 | — | — | — | — | |||||||||
Less: Gain on sale-leaseback | (20,266) | — | — | — | — | |||||||||
Plus: FDIC special assessment | — | 956 | 6,494 | — | — | |||||||||
Plus: FultonFirst implementation and asset disposals | 6,323 | 6,329 | 3,197 | — | — | |||||||||
Less: Tax impact of adjustments | (9,989) | (1,618) | (1,929) | (747) | (225) | |||||||||
Adjusted net income available to common shareholders (numerator) | $ 82,598 | $ 65,468 | $ 68,958 | $ 72,347 | $ 77,892 | |||||||||
Average shareholders' equity | $ 2,952,671 | $ 2,766,945 | $ 2,618,024 | $ 2,645,977 | $ 2,647,464 | |||||||||
Less: Average preferred stock | (192,878) | (192,878) | (192,878) | (192,878) | (192,878) | |||||||||
Less: Average goodwill and intangible assets | (624,471) | (560,393) | (560,977) | (561,578) | (563,146) | |||||||||
Average tangible common shareholders' equity (denominator) | $ 2,135,322 | $ 2,013,674 | $ 1,864,169 | $ 1,891,521 | $ 1,891,440 | |||||||||
Operating return on average common shareholders' equity (tangible) | 15.56 % | 13.08 % | 14.68 % | 15.17 % | 16.52 % | |||||||||
(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. | ||||||||||||||
(2) Results are annualized. | ||||||||||||||
Three months ended | ||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | ||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||
Tangible common equity to tangible assets (TCE Ratio) | ||||||||||||||
Shareholders' equity | $ 3,101,609 | $ 2,757,679 | $ 2,760,139 | $ 2,566,693 | $ 2,642,152 | |||||||||
Less: Preferred stock | (192,878) | (192,878) | (192,878) | (192,878) | (192,878) | |||||||||
Less: Goodwill and intangible assets | (648,026) | (560,114) | (560,687) | (561,284) | (561,885) | |||||||||
Tangible common shareholders' equity (numerator) | $ 2,260,705 | $ 2,004,687 | $ 2,006,574 | $ 1,812,531 | $ 1,887,389 | |||||||||
Total assets | $ 31,769,813 | $ 27,642,957 | $ 27,571,915 | $ 27,375,177 | $ 27,403,163 | |||||||||
Less: Goodwill and intangible assets | (648,026) | (560,114) | (560,687) | (561,284) | (561,885) | |||||||||
Total tangible assets (denominator) | $ 31,121,787 | $ 27,082,843 | $ 27,011,228 | $ 26,813,893 | $ 26,841,278 | |||||||||
Tangible common equity to tangible assets | 7.26 % | 7.40 % | 7.43 % | 6.76 % | 7.03 % | |||||||||
Efficiency ratio | ||||||||||||||
Non-interest expense | $ 199,488 | $ 177,600 | $ 180,552 | $ 171,020 | $ 168,018 | |||||||||
Less: Acquisition-related expense | (13,803) | — | — | — | — | |||||||||
Less: Gain on sale-leaseback | 20,266 | — | — | — | — | |||||||||
Less: FDIC special assessment | — | (956) | (6,494) | — | — | |||||||||
Less: FultonFirst implementation and asset disposals | (6,323) | (6,329) | (3,197) | — | — | |||||||||
Less: Intangible amortization | (4,688) | (573) | (597) | (601) | (1,072) | |||||||||
Less: Debt extinguishment | — | — | 720 | — | — | |||||||||
Non-interest expense (numerator) | $ 194,940 | $ 169,742 | $ 170,984 | $ 170,419 | $ 166,946 | |||||||||
Net interest income | $ 241,720 | $ 206,937 | $ 212,006 | $ 213,842 | $ 212,852 | |||||||||
Tax equivalent adjustment | 4,556 | 4,592 | 4,549 | 4,442 | 4,405 | |||||||||
Plus: Total non-interest income | 92,994 | 57,140 | 59,378 | 55,961 | 60,585 | |||||||||
Plus: Interest rate derivative transition valuation(1) | (137) | (151) | (1,102) | 2,958 | — | |||||||||
Less: Non-PCD credit-related interest income from acquisition | (571) | — | — | — | — | |||||||||
Less: Gain on acquisition, net of tax | (47,392) | — | — | — | — | |||||||||
Plus: Investment securities (gains) losses, net | 20,282 | — | 752 | — | 4 | |||||||||
Total revenue (denominator) | $ 311,452 | $ 268,518 | $ 275,583 | $ 277,203 | $ 277,846 | |||||||||
Efficiency ratio | 62.6 % | 63.2 % | 62.0 % | 61.5 % | 60.1 % | |||||||||
Operating non-interest expense to total average assets | ||||||||||||||
Non-interest expense | $ 199,488 | $ 177,600 | $ 180,552 | $ 171,020 | $ 168,018 | |||||||||
Less: Amortization of tax credit investments | — | — | — | — | — | |||||||||
Less: Intangible amortization | (4,688) | (573) | (597) | (601) | (1,072) | |||||||||
Less: Acquisition-related expense | (13,803) | — | — | — | — | |||||||||
Less: Gain on sale-leaseback | 20,266 | — | — | — | — | |||||||||
Less: FDIC special assessment | — | (956) | (6,494) | — | — | |||||||||
Less: FultonFirst implementation and asset disposals | (6,323) | (6,329) | (3,197) | — | — | |||||||||
Non-interest expense (numerator) | $ 194,940 | $ 169,742 | $ 170,264 | $ 170,419 | $ 166,946 | |||||||||
Total average assets (denominator) | $ 30,774,891 | $ 27,427,626 | $ 27,397,671 | $ 27,377,836 | $ 27,235,567 | |||||||||
Operating non-interest expenses to total average assets | 2.55 % | 2.49 % | 2.47 % | 2.47 % | 2.46 % | |||||||||
(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. | ||||||||||||||
(2) Results are annualized. | ||||||||||||||
Note: numbers in this report may not sum due to rounding. | ||||||||||||||
Media Contact: Lacey Dean (717) 735-8688
Investor Contact: Matt Jozwiak (717) 327-2657
SOURCE Fulton Financial Corporation
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