Fulton Financial Reports First Quarter Earnings of $0.25 Per Share

  • Diluted earnings per share for the first quarter of 2017 were 25 cents, a 4.2 percent increase from the fourth quarter of 2016 and a 13.6 percent increase from the first quarter of 2016. Pre-provision net revenue of $60.9 million was 9.0% higher than the fourth quarter of 2016 and 19.8% higher than the first quarter of 2016.
  • Net interest income for the first quarter of 2017 increased $5.3 million, or 4.0 percent, compared to the fourth quarter of 2016 and $8.5 million, or 6.6 percent, compared to first quarter of 2016.
  • Net interest margin increased eleven basis points, to 3.26 percent, compared to the fourth quarter of 2016, and increased three basis points compared to the first quarter of 2016.
  • Loans at March 31, 2017 increased $263.9 million, or 1.8 percent, compared to December 31, 2016 and $1.1 billion, or 7.9 percent, compared to March 31, 2016. Average loans for the first quarter of 2017 increased 2.6 percent and 7.2 percent, compared to the fourth quarter of 2016 and the first quarter of 2016, respectively.
  • Deposits at March 31, 2017 increased $77.5 million, or 0.5 percent, compared to December 31, 2016 and $686.1 million, or 4.8 percent compared to March 31, 2016. Average deposits for the first quarter of 2017 decreased 1.0 percent compared to the fourth quarter of 2016, and increased 4.8 percent, compared to the first quarter of 2016.
  • The provision for credit losses in the first quarter of 2017 was $4.8 million, compared to a $5.0 million provision in the fourth quarter of 2016, and a $1.5 million provision in the first quarter of 2016.
  • Non-interest income, excluding investment securities gains, decreased $5.7 million, or 11.1 percent, in comparison to the fourth quarter of 2016, and increased $3.4 million, or 8.0 percent, in comparison to the first quarter of 2016.
  • Non-interest expense decreased $5.3 million, or 4.2 percent, compared to the fourth quarter of 2016 and increased $1.9 million, or 1.5 percent, compared to the first quarter of 2016.

LANCASTER, Pa.--()--Fulton Financial Corporation (NASDAQ:FULT) reported net income of $43.4 million, or 25 cents per diluted share, for the first quarter of 2017.

"We had a very good first quarter, building off the momentum we saw in our business in 2016,” said E. Philip Wenger, Chairman, President and CEO. “With increased customer confidence and business activity, we remain optimistic about our growth prospects for 2017."

Net Interest Income and Margin

Net interest income for the first quarter of 2017 increased $5.3 million, or 4.0 percent, from the fourth quarter of 2016. Net interest margin increased eleven basis points, or 3.5 percent, to 3.26 percent in the first quarter of 2017, from 3.15 percent in the fourth quarter of 2016. The average yield on interest-earning assets increased twelve basis points, while the average cost of interest-bearing liabilities remained unchanged, during the first quarter of 2017 in comparison to the fourth quarter of 2016.

Average Balance Sheet

Total average assets for the first quarter of 2017 were $19.1 billion, an increase of $300.3 million from the fourth quarter of 2016. Average loans, net of unearned income, increased $381.7 million, or 2.6 percent, in comparison to the fourth quarter of 2016. Average loans and yields, by type, for the first quarter of 2017 in comparison to the fourth quarter of 2016, are summarized in the following table:

   
Three Months Ended Increase (decrease)
March 31, 2017   December 31, 2016 in Balance
Balance   Yield (1) Balance   Yield (1) $   %
(dollars in thousands)
Average Loans, net of unearned income, by type:
Real estate - commercial mortgage $ 6,039,140 3.98 % $ 5,828,313 3.90 % $ 210,827 3.6 %
Commercial - industrial, financial and agricultural 4,205,070 3.89 % 4,081,498 3.74 % 123,572 3.0 %
Real estate - residential mortgage 1,637,669 3.76 % 1,572,895 3.75 % 64,774 4.1 %

Real estate - home equity

1,613,249

4.18

%

1,633,668

4.05

%

(20,419

)

(1.2

%)

Real estate - construction 840,968 3.97 % 845,528 3.78 % (4,560 ) (0.5 %)
Consumer 284,352 5.26 % 289,864 5.25 % (5,512 ) (1.9 %)
Leasing and other   237,114 5.08 %   224,050 5.41 %   13,064   5.8 %
 
Total Average Loans, net of unearned income $ 14,857,562 4.00 % $ 14,475,816 3.90 % $ 381,746   2.6 %
 
            (1) Presented on a fully-taxable equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.
 

Total average liabilities increased $292.4 million, or 1.8 percent, from the fourth quarter of 2016, while average deposits decreased $153.3 million, or 1.0 percent. Average deposits and interest rates, by type, for the first quarter of 2017 in comparison to the fourth quarter of 2016, are summarized in the following table:

   
Three Months Ended Increase (decrease)
March 31, 2017   December 31, 2016 in Balance
Balance   Rate Balance   Rate $   %
(dollars in thousands)
Average Deposits, by type:
Noninterest-bearing demand $ 4,301,727 - % $ 4,331,894 - % $ (30,167 ) (0.7 %)
Interest-bearing demand 3,650,931 0.25 % 3,714,391 0.21 % (63,460 ) (1.7 %)
Savings deposits   4,194,216 0.21 %   4,216,090 0.21 %   (21,874 ) (0.5 %)
Total average demand and savings 12,146,874 0.15 % 12,262,375 0.14 % (115,501 ) (0.9 %)
Time deposits   2,739,453 1.09 %   2,777,203 1.09 %   (37,750 ) (1.4 %)
 
Total Average Deposits $ 14,886,327 0.32 % $ 15,039,578 0.31 % $ (153,251 ) (1.0 %)
 

Asset Quality

Non-performing assets were $143.4 million, or 0.75 percent of total assets, at March 31, 2017, compared to $144.5 million, or 0.76 percent of total assets, at December 31, 2016 and $148.1 million, or 0.82 percent of total assets, at March 31, 2016.

Annualized net charge-offs for the quarter ended March 31, 2017 were 0.09 percent of total average loans, compared to annualized net recoveries of 0.03 percent for the quarter ended December 31, 2016, and net charge-offs of 0.20 percent for the quarter ended March 31, 2016. The allowance for credit losses as a percentage of non-performing loans was 131.3 percent at March 31, 2017, as compared to 130.2 percent at December 31, 2016 and 121.1 percent at March 31, 2016.

During the first quarter of 2017, the Corporation recorded a $4.8 million provision for credit losses, compared to a $5.0 million provision for credit losses in the fourth quarter of 2016 and a $1.5 million provision in the first quarter of 2016.

Non-interest Income

Non-interest income, excluding investment securities gains, decreased $5.7 million, or 11.1 percent, in comparison to the fourth quarter of 2016. Other service charges and fees decreased $896,000, or 6.7 percent, due to decreases in debit card income and merchant fees. Service charges on deposits decreased $414,000, or 3.2 percent, due to a decrease in overdraft fee income. Mortgage banking income decreased $2.4 million, or 34.0 percent, due primarily to lower servicing income. The driver of this decrease was the $1.7 million adjustment recorded to reduce the valuation allowance for mortgage servicing rights (MSR) in the prior quarter. Other decreases in non-interest income were driven by decreases in gains from the sale of Small Business Administration loans.

Compared to the first quarter of 2016, non-interest income, excluding investment securities gains, increased $3.4 million, or 8.0 percent, due to increases in commercial loan interest rate swap fees, mortgage banking income, and investment management and trust services income.

Gains on sales of investment securities decreased $419,000 in comparison to the fourth quarter of 2016, and increased $159,000 from the first quarter of 2016.

Non-interest Expense

Non-interest expense decreased $5.3 million, or 4.2 percent, in the first quarter of 2017, compared to the fourth quarter of 2016. Salaries and employee benefits decreased $4.0 million, or 5.5 percent, due primarily to decreases in incentive compensation and two fewer payroll days in the quarter. Other decreases occurred in outside services and losses on the disposal of fixed assets.

Compared to the first quarter of 2016, non-interest expense increased $1.9 million, or 1.5 percent, primarily due to increases in state taxes and amortization of community development investments.

Additional information on Fulton Financial Corporation 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" and similar expressions which are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, some of which are beyond the Corporation's control and ability to predict, that could cause actual results to differ materially from those expressed in the forward-looking statements.

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, 2016, which has been filed with the Securities and Exchange Commission and is 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). 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.

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
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
 
            % Change from
March 31
2017
  December 31
2016
  September 30
2016
  June 30
2016
  March 31
2016
  December 31
2016
  March 31
2016
 

ASSETS

 
Cash and due from banks $ 93,844 $ 118,763 $ 86,497 $ 84,647 $ 83,479 -21.0 % 12.4 %
Other interest-earning assets 350,387 291,252 428,966 408,086 408,060 20.3 % -14.1 %
Loans held for sale 24,783 28,697 27,836 34,330 19,719 -13.6 % 25.7 %
Investment securities 2,506,017 2,559,227 2,508,068 2,529,724 2,516,205 -2.1 % -0.4 %
Loans, net of unearned income 14,963,177 14,699,272 14,391,238 14,155,159 13,870,701 1.8 % 7.9 %
Allowance for loan losses   (170,076 )     (168,679 )     (162,526 )     (162,546 )     (163,841 ) 0.8 % 3.8 %
Net loans 14,793,101 14,530,593 14,228,712 13,992,613 13,706,860 1.8 % 7.9 %
Premises and equipment 216,171 217,806 228,009 228,861 228,057 -0.8 % -5.2 %
Accrued interest receivable 46,355 46,294 43,600 43,316 44,379 0.1 % 4.5 %
Goodwill and intangible assets 531,556 531,556 531,556 531,556 531,556 0.0 % 0.0 %
Other assets   616,362       620,059       617,818       626,902       583,939   -0.6 % 5.6 %
 
Total Assets $ 19,178,576     $ 18,944,247     $ 18,701,062     $ 18,480,035     $ 18,122,254   1.2 % 5.8 %
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Deposits $ 15,090,344 $ 15,012,864 $ 14,952,479 $ 14,292,564 $ 14,404,280 0.5 % 4.8 %
Short-term borrowings 453,317 541,317 264,042 722,214 352,883 -16.3 % 28.5 %
Other liabilities 342,323 339,548 389,819 392,708 326,128 0.8 % 5.0 %
FHLB advances and long-term debt   1,137,909       929,403       965,286       965,552       965,654   22.4 % 17.8 %
 
Total Liabilities 17,023,893 16,823,132 16,571,626 16,373,038 16,048,945 1.2 % 6.1 %
 
Shareholders' equity   2,154,683       2,121,115       2,129,436       2,106,997       2,073,309   1.6 % 3.9 %
 
Total Liabilities and Shareholders' Equity $ 19,178,576     $ 18,944,247     $ 18,701,062     $ 18,480,035     $ 18,122,254   1.2 % 5.8 %
 

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

 
Loans, by type:
Real estate - commercial mortgage $ 6,118,533 $ 6,018,582 $ 5,818,915 $ 5,635,347 $ 5,558,108 1.7 % 10.1 %
Commercial - industrial, financial and agricultural 4,167,809 4,087,486 4,024,119 4,099,177 4,035,333 2.0 % 3.3 %
Real estate - residential mortgage 1,665,142 1,601,994 1,542,696 1,447,292 1,377,459 3.9 % 20.9 %
Real estate - home equity 1,595,901 1,625,115 1,640,421 1,647,319 1,659,481 -1.8 % -3.8 %
Real estate - construction 882,983 843,649 861,634 853,699 810,872 4.7 % 8.9 %
Consumer 288,826 291,470 283,673 278,071 263,221 -0.9 % 9.7 %
Leasing and other   243,983       230,976       219,780       194,254       166,227   5.6 % 46.8 %
 
Total Loans, net of unearned income $ 14,963,177     $ 14,699,272     $ 14,391,238     $ 14,155,159     $ 13,870,701   1.8 % 7.9 %
 
Deposits, by type:
Noninterest-bearing demand $ 4,417,733 $ 4,376,137 $ 4,210,099 $ 4,125,375 $ 4,134,861 1.0 % 6.8 %
Interest-bearing demand 3,702,663 3,703,712 3,703,048 3,358,536 3,430,206 0.0 % 7.9 %
Savings and money market accounts 4,251,574 4,179,773 4,235,015 3,986,008 3,972,199 1.7 % 7.0 %
Time deposits   2,718,374       2,753,242       2,804,317       2,822,645       2,867,014   -1.3 % -5.2 %
 
Total Deposits $ 15,090,344     $ 15,012,864     $ 14,952,479     $ 14,292,564     $ 14,404,280   0.5 % 4.8 %
 
Short-term borrowings, by type:
Customer repurchase agreements $ 181,170 $ 195,734 $ 189,727 $ 168,521 $ 162,431 -7.4 % 11.5 %
Customer short-term promissory notes 87,726 67,013 65,871 69,509 76,807 30.9 % 14.2 %
Short-term FHLB advances 130,000 - - 35,000 81,000 N/M 60.5 %
Federal funds purchased   54,421       278,570       8,444       449,184       32,645   -80.5 % 66.7 %
 
Total Short-term Borrowings $ 453,317     $ 541,317     $ 264,042     $ 722,214     $ 352,883   -16.3 % 28.5 %
N/M - Not meaningful
 
 
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
in thousands, except per-share data and percentages
                               
  Three Months Ended   % Change from
Mar 31
2017
  Dec 31
2016
  Sep 30
2016
  Jun 30
2016
  Mar 31
2016
  Dec 31
2016
  Mar 31
2016
 
Interest Income:
Interest income $ 158,487 $ 153,012 $ 151,468 $ 149,309 $ 149,311 3.6 % 6.1 %
Interest expense   20,908     20,775     20,903     20,393     20,257   0.6 % 3.2 %
 
Net Interest Income 137,579 132,237 130,565 128,916 129,054 4.0 % 6.6 %
Provision for credit losses   4,800     5,000     4,141     2,511     1,530   (4.0 %) 213.7 %
 
Net Interest Income after Provision 132,779 127,237 126,424 126,405 127,524 4.4 % 4.1 %
 
Non-Interest Income:
Other service charges and fees 12,437 13,333 14,407 12,983 10,750 (6.7 %) 15.7 %
Service charges on deposit accounts 12,400 12,814 13,078 12,896 12,558 (3.2 %) (1.3 %)
Investment management and trust services 11,808 11,610 11,425 11,247 10,988 1.7 % 7.5 %
Mortgage banking income 4,596 6,959 4,529 3,897 4,030 (34.0 %) 14.0 %
Other   4,326     6,514     4,708     5,038     3,864   (33.6 %) 12.0 %
Non-Interest Income before Investment Securities Gains 45,567 51,230 48,147 46,061 42,190 (11.1 %) 8.0 %
Investment securities gains   1,106     1,525     2     76     947   (27.5 %) 16.8 %
 
Total Non-Interest Income 46,673 52,755 48,149 46,137 43,137 (11.5 %) 8.2 %
 
Non-Interest Expense:

 

Salaries and employee benefits 69,236 73,256 70,696 70,029 69,372 (5.5 %) (0.2 %)
Net occupancy expense 12,663 11,798 11,782 11,811 12,220 7.3 % 3.6 %
Other outside services 5,546 6,536 5,783 5,508 6,056 (15.1 %) (8.4 %)
Software 4,693 4,912 4,117 3,953 3,921 (4.5 %) 19.7 %
Data processing 4,286 4,530 4,610 5,476 5,400 (5.4 %) (20.6 %)
Equipment expense 3,359 3,408 3,137 2,872 3,371 (1.4 %) (0.4 %)
Professional fees 2,737 2,783 2,535 3,353 2,333 (1.7 %) 17.3 %
FDIC insurance expense 2,058 2,067 1,791 2,960 2,949 (0.4 %) (30.2 %)
Marketing 1,986 1,730 1,774 1,916 1,624 14.8 % 22.3 %
Other   15,711     16,601     13,623     13,759     13,167   (5.4 %) 19.3 %
 
Total Non-Interest Expense   122,275     127,621     119,848     121,637     120,413   (4.2 %) 1.5 %
 
Income before Income Taxes 57,177 52,371 54,725 50,905 50,248 9.2 % 13.8 %
Income tax expense   13,797     10,221     13,257     11,155     11,991   35.0 % 15.1 %
 
Net Income $ 43,380   $ 42,150   $ 41,468   $ 39,750   $ 38,257   2.9 % 13.4 %
 
 

PER SHARE:

 
Net income:
Basic $ 0.25 $ 0.24 $ 0.24 $ 0.23 $ 0.22 4.2 % 13.6 %
Diluted 0.25 0.24 0.24 0.23 0.22 4.2 % 13.6 %
 
Cash dividends $ 0.11 $ 0.12 $ 0.10 $ 0.10 $ 0.09 (8.3 %) 22.2 %
Shareholders' equity 12.36 12.19 12.30 12.17 11.96 1.4 % 3.3 %
Shareholders' equity (tangible) 9.31 9.13 9.23 9.10 8.89 2.0 % 4.7 %
 
Weighted average shares (basic) 174,150 173,554 173,020 173,394 173,331 0.3 % 0.5 %
Weighted average shares (diluted) 175,577 174,874 174,064 174,318 174,416 0.4 % 0.7 %
Shares outstanding, end of period 174,343 174,040 173,144 173,139 173,393 0.2 % 0.5 %
 

SELECTED FINANCIAL RATIOS:

 
Return on average assets 0.92 % 0.89 % 0.89 % 0.88 % 0.86 %
Return on average shareholders' equity 8.22 % 7.86 % 7.78 % 7.65 % 7.47 %
Return on average shareholders' equity (tangible) 10.93 % 10.47 % 10.38 % 10.26 % 10.07 %
Net interest margin 3.26 % 3.15 % 3.14 % 3.20 % 3.23 %
Efficiency ratio     64.76 %     67.60 %     65.16 %     67.59 %     68.33 %          
 
N/M - Not meaningful
 
 
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
 
  Three Months Ended
March 31, 2017   December 31, 2016   March 31, 2016
Average
Balance
  Interest (1)   Yield/
Rate
Average
Balance
  Interest (1)   Yield/
Rate
Average
Balance
  Interest (1)   Yield/
Rate

ASSETS

 
Interest-earning assets:
Loans, net of unearned income $ 14,857,562 $ 146,650 4.00 % $ 14,475,816 $ 141,826 3.90 % $ 13,853,420 $ 137,895 4.00 %
Taxable investment securities 2,145,656 11,914 2.19 % 2,096,086 10,941 2.07 % 2,180,593 12,003 2.20 %
Tax-exempt investment securities 403,856 4,383 4.34 % 389,047 4,234 4.35 % 259,396 3,138 4.84 %
Equity securities   11,740     176     6.08 %   13,068     181   5.52 %   14,386     218   6.10 %
 
Total Investment Securities 2,561,252 16,473 2.57 % 2,498,201 15,356 2.45 % 2,454,375 15,359 2.50 %
 
Loans held for sale 15,857 187 4.72 % 24,411 199 3.26 % 12,252 131 4.28 %
Other interest-earning assets   312,295     842     1.08 %   411,369     966   0.94 %   358,562     898   1.00 %
 
Total Interest-earning Assets 17,746,966 164,152 3.74 % 17,409,797 158,347 3.62 % 16,678,609 154,283 3.72 %
 
Noninterest-earning assets:
Cash and due from banks 116,529 117,741 98,449
Premises and equipment 217,875 226,482 226,284
Other assets 1,149,621 1,171,031 1,137,292
Less: allowance for loan losses   (170,134 )   (164,523 )   (167,372 )
 
Total Assets $ 19,060,857   $ 18,760,528   $ 17,973,262  
 
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Interest-bearing liabilities:
Demand deposits $ 3,650,931 $ 2,239 0.25 % $ 3,714,391 $ 1,927 0.21 % $ 3,438,355 $ 1,494 0.17 %
Savings deposits 4,194,216 2,211 0.21 % 4,216,090 2,249 0.21 % 3,932,824 1,804 0.18 %
Time deposits   2,739,453     7,352     1.09 %   2,777,203     7,593   1.09 %   2,867,651     7,429   1.04 %
 
Total Interest-bearing Deposits 10,584,600 11,802 0.45 % 10,707,684 11,769 0.44 % 10,238,830 10,727 0.42 %
 
Short-term borrowings 712,497 855 0.48 % 308,094 116 0.15 % 445,402 268 0.24 %
FHLB advances and long-term debt   990,044     8,252     3.35 %   947,661     8,891   3.74 %   958,213     9,262   3.88 %
 
Total Interest-bearing Liabilities 12,287,141 20,909 0.69 % 11,963,439 20,776 0.69 % 11,642,445 20,257 0.70 %
 
Noninterest-bearing liabilities:
Demand deposits 4,301,727 4,331,894 3,967,887
Other   331,442     332,540     304,131  
 
Total Liabilities 16,920,310 16,627,873 15,914,463
 
Shareholders' equity   2,140,547     2,132,655     2,058,799  
 
Total Liabilities and Shareholders' Equity $ 19,060,857   $ 18,760,528   $ 17,973,262  
 
Net interest income/net interest margin (fully taxable equivalent) 143,243   3.26 % 137,571 3.15 % 134,026 3.23 %
Tax equivalent adjustment   (5,664 )   (5,334 )   (4,972 )
 
Net interest income $ 137,579   $ 132,237   $ 129,054  
 
(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.
 
 

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

 
Three Months Ended   % Change from
March 31
2017
December 31
2016
September 30
2016
June 30
2016
March 31
2016
December 31
2016
March 31
2016
 
Loans, by type:
Real estate - commercial mortgage $ 6,039,140 $ 5,828,313 $ 5,670,888 $ 5,557,680 $ 5,487,421 3.6 % 10.1 %
Commercial - industrial, financial and agricultural 4,205,070 4,081,498 4,066,275 4,080,524 4,095,268 3.0 % 2.7 %
Real estate - residential mortgage 1,637,669 1,572,895 1,503,209 1,399,851 1,381,409 4.1 % 18.6 %
Real estate - home equity 1,613,249 1,633,668 1,640,913 1,656,140 1,674,032 (1.2 %) (3.6 %)
Real estate - construction 840,968 845,528 837,920 820,881 792,014 (0.5 %) 6.2 %
Consumer 284,352 289,864 281,517 272,293 263,295 (1.9 %) 8.0 %
Leasing and other   237,114     224,050     211,528     178,655     159,981   5.8 % 48.2 %
 
Total Loans, net of unearned income $ 14,857,562   $ 14,475,816   $ 14,212,250   $ 13,966,024   $ 13,853,420   2.6 % 7.2 %
 
Deposits, by type:
Noninterest-bearing demand $ 4,301,727 $ 4,331,894 $ 4,227,639 $ 4,077,642 $ 3,967,887 (0.7 %) 8.4 %
Interest-bearing demand 3,650,931 3,714,391 3,602,448 3,454,031 3,438,355 (1.7 %) 6.2 %
Savings and money market accounts 4,194,216 4,216,090 4,078,942 3,989,988 3,932,824 (0.5 %) 6.6 %
Time deposits   2,739,453     2,777,203     2,814,258     2,844,434     2,867,651   (1.4 %) (4.5 %)
 
Total Deposits $ 14,886,327   $ 15,039,578   $ 14,723,287   $ 14,366,095   $ 14,206,717   (1.0 %) 4.8 %
 
Short-term borrowings, by type:
Customer repurchase agreements $ 199,403 $ 200,126 $ 187,588 $ 180,595 $ 171,408 (0.4 %) 16.3 %
Customer short-term promissory notes 79,985 67,355 70,072 77,535 74,013 18.8 % 8.1 %
Federal funds purchased 308,220 40,613 148,546 138,012 183,970 658.9 % 67.5 %
Short-term FHLB advances and other borrowings   124,889     -     20,163     7,527     16,011   N/M 680.0 %
 
Total Short-term Borrowings $ 712,497   $ 308,094   $ 426,369   $ 403,669   $ 445,402   131.3 % 60.0 %
 
N/M - Not meaningful
 
 
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
 
  Three Months Ended
Mar 31
2017
  Dec 31
2016
  Sep 30
2016
  Jun 30
2016
  Mar 31
2016

ALLOWANCE FOR CREDIT LOSSES:

 
Balance at beginning of period $ 171,325 $ 165,169 $ 165,108 $ 166,065 $ 171,412
 
Loans charged off:
Commercial - industrial, financial and agricultural (5,527 ) (1,319 ) (3,144 ) (4,625 ) (6,188 )
Consumer and home equity (1,554 ) (2,156 ) (1,394 ) (1,614 ) (2,548 )
Real estate - commercial mortgage (1,224 ) (174 ) (1,350 ) (1,474 ) (582 )
Real estate - construction (247 ) 0 (150 ) (742 ) (326 )
Real estate - residential mortgage (216 ) (116 ) (802 ) (340 ) (1,068 )
Leasing and other   (639 )   (589 )   (832 )   (1,951 )   (443 )
Total loans charged off (9,407 ) (4,354 ) (7,672 ) (10,746 ) (11,155 )
Recoveries of loans previously charged off:
Commercial - industrial, financial and agricultural 4,191 2,192 1,539 2,931 2,319
Consumer and home equity 373 580 463 889 534
Real estate - commercial mortgage 450 885 296 1,367 825
Real estate - construction 548 1,080 898 1,563 383
Real estate - residential mortgage 230 288 228 420 136
Leasing and other   137     485     168     108     81  
Recoveries of loans previously charged off   5,929     5,510     3,592     7,278     4,278  
Net loans recovered (charged off) (3,478 ) 1,156 (4,080 ) (3,468 ) (6,877 )
Provision for credit losses 4,800 5,000 4,141 2,511 1,530
         
Balance at end of period $ 172,647   $ 171,325   $ 165,169   $ 165,108   $ 166,065  
 
Net charge-offs (recoveries) to average loans (annualized)   0.09 %   (0.03 %)   0.11 %   0.10 %   0.20 %
 

NON-PERFORMING ASSETS:

 
Non-accrual loans $ 117,264 $ 120,133 $ 124,017 $ 111,742 $ 122,170
Loans 90 days past due and accruing   14,268     11,505     14,095     15,992     15,013  
Total non-performing loans 131,532 131,638 138,112 127,734 137,183
Other real estate owned   11,906     12,815     11,981     11,918     10,946  
 
Total non-performing assets $ 143,438   $ 144,453   $ 150,093   $ 139,652   $ 148,129  
 

NON-PERFORMING LOANS, BY TYPE:

 
Commercial - industrial, financial and agricultural $ 43,826 $ 43,460 $ 47,330 $ 38,902 $ 39,140
Real estate - commercial mortgage 36,713 39,319 39,631 35,704 43,132
Real estate - residential mortgage 23,597 23,655 23,451 25,030 25,182
Real estate - construction 13,550 9,842 11,223 11,879 12,005
Consumer and home equity 13,408 15,045 16,426 16,061 16,210
Leasing   438     317     51     158     1,514  
 
Total non-performing loans $ 131,532   $ 131,638   $ 138,112   $ 127,734   $ 137,183  
 
 

TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:

 
Real-estate - residential mortgage $ 27,033 $ 27,617 $ 26,854 $ 27,324 $ 27,565
Real-estate - commercial mortgage 15,237 15,957 16,085 17,808 17,427
Consumer and home equity 9,638 8,633 7,707 7,191 6,562
Commercial - industrial, financial and agricultural 7,441 6,627 7,488 5,756 5,650
Real estate - construction   273     726     843     3,086     3,092  
Total accruing TDRs 59,622 59,560 58,977 61,165 60,296
Non-accrual TDRs (1)   27,220     27,850     27,904     24,887     27,277  
Total TDRs $ 86,842   $ 87,410   $ 86,881   $ 86,052   $ 87,573  
 
(1) Included within non-accrual loans above.
Total Delinquency %

DELINQUENCY RATES, BY TYPE:

Mar 31
2017
Dec 31
2016
Sep 30
2016
Jun 30
2016
Mar 31
2016
 
 
Real estate - commercial mortgage 0.78 % 0.78 % 0.87 % 0.81 % 0.93 %
Commercial - industrial, financial and agricultural 1.25 % 1.31 % 1.48 % 1.25 % 1.46 %
Real estate - construction 1.99 % 1.29 % 1.61 % 1.93 % 2.00 %
Real estate - residential mortgage 2.44 % 2.74 % 2.67 % 2.70 % 3.10 %
Consumer, home equity, leasing and other 1.22 % 1.45 % 1.53 % 1.47 % 1.48 %
         
Total   1.23 %   1.27 %   1.38 %   1.30 %   1.44 %
 

ASSET QUALITY RATIOS:

                 
Mar 31
2017
Dec 31
2016
Sep 30
2016
Jun 30
2016
Mar 31
2016
 
Non-accrual loans to total loans 0.78 % 0.82 % 0.86 % 0.79 % 0.88 %
Non-performing loans to total loans 0.88 % 0.90 % 0.96 % 0.90 % 0.99 %
Non-performing assets to total loans and OREO 0.96 % 0.98 % 1.04 % 0.99 % 1.07 %
Non-performing assets to total assets 0.75 % 0.76 % 0.80 % 0.76 % 0.82 %
Allowance for credit losses to loans outstanding 1.15 % 1.17 % 1.15 % 1.17 % 1.20 %
Allowance for credit losses to non-performing loans 131.26 % 130.15 % 119.59 % 129.26 % 121.05 %

Non-performing assets to tangible common shareholders' equity and allowance for credit losses

7.99 % 8.20 % 8.51 % 8.02 % 8.67 %
 
 
FULTON FINANCIAL CORPORATION
RECONCILIATION OF GAAP TO 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
March 31
2017
  December 31
2016
  September 30
2016
  June 30
2016
  March 31
2016

Shareholders' equity (tangible), per share

Shareholders' equity $ 2,154,683 $ 2,121,115 $ 2,129,436 $ 2,106,997 $ 2,073,309
Less: Goodwill and intangible assets   (531,556 )   (531,556 )   (531,556 )   (531,556 )   (531,556 )
Tangible shareholders' equity (numerator) $ 1,623,127   $ 1,589,559   $ 1,597,880   $ 1,575,441   $ 1,541,753  
 
Shares outstanding, end of period (denominator)   174,343     174,040     173,144     173,139     173,393  
 
Shareholders' equity (tangible), per share $ 9.31   $ 9.13   $ 9.23   $ 9.10   $ 8.89  
 

Return on average shareholders' equity (tangible)

   

 

   
Net Income - Numerator $ 43,380   $ 42,150   $ 41,468   $ 39,750   $ 38,257  
 
Average shareholders' equity $ 2,140,547 $ 2,132,655 $ 2,120,596 $ 2,089,915 $ 2,058,799
Less: Average goodwill and intangible assets   (531,556 )   (531,556 )   (531,556 )   (531,556 )   (531,556 )
Average tangible shareholders' equity (denominator) $ 1,608,991   $ 1,601,099   $ 1,589,040   $ 1,558,359   $ 1,527,243  
 
Return on average shareholders' equity (tangible), annualized   10.93 %   10.47 %   10.38 %   10.26 %   10.07 %
 

Efficiency ratio

         
Non-interest expense - Numerator $ 122,275   $ 127,621   $ 119,848   $ 121,637   $ 120,413  
 
Net interest income (fully taxable equivalent) $ 143,243 $ 137,571 $ 135,784 $ 133,890 $ 134,026
Plus: Total Non-interest income 46,673 52,755 48,149 46,137 43,137
Less: Investment securities gains   (1,106 )   (1,525 )   (2 )   (76 )   (947 )
Denominator $ 188,810   $ 188,801   $ 183,931   $ 179,951   $ 176,216  
 
Efficiency ratio   64.76 %   67.60 %   65.16 %   67.59 %   68.33 %
 

Non-performing assets to tangible shareholders' equity and allowance for credit losses

Non-performing assets (numerator) $ 143,438   $ 144,453   $ 150,093   $ 139,652   $ 148,129  
 
Tangible shareholders' equity $ 1,623,127 $ 1,589,559 $ 1,597,880 $ 1,575,441 $ 1,541,753
Plus: Allowance for credit losses   172,647     171,325     165,169     165,108     166,065  
Tangible shareholders' equity and allowance for credit losses (denominator) $ 1,795,774   $ 1,760,884   $ 1,763,049   $ 1,740,549   $ 1,707,818  
 
Non-performing assets to tangible shareholders' equity and allowance for credit losses   7.99 %   8.20 %   8.51 %   8.02 %   8.67 %
 

Pre-provision net revenue

Net interest income $ 137,579 $ 132,237 $ 130,565 $ 128,916 $ 129,054
Non-interest income 46,673 52,755 48,149 46,137 43,137
Less: Investment securities gains   (1,106 )   (1,525 )   (2 )   (76 )   (947 )
Total revenue $ 183,146   $ 183,467   $ 178,712   $ 174,977   $ 171,244  
         
Total Non-interest expense $ 122,275   $ 127,621   $ 119,848   $ 121,637   $ 120,413  
 
Pre-provision net revenue $ 60,871   $ 55,846   $ 58,864   $ 53,340   $ 50,831  
 

Contacts

Fulton Financial Corporation
Media Contact:
Laura J. Wakeley, 717-291-2616
or
Investor Contact:
Jason Weber, 717-327-2394

Contacts

Fulton Financial Corporation
Media Contact:
Laura J. Wakeley, 717-291-2616
or
Investor Contact:
Jason Weber, 717-327-2394