Fulton Financial Reports Second Quarter Net Income of $59.8 Million, or $0.35 Per Diluted Share

LANCASTER, Pa.--()--Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income of $59.8 million, or $0.35 per diluted share, for the second quarter of 2019, and net income of $116.4 million, or $0.68 per diluted share, for the six months ended June 30, 2019.

Overall, we were pleased with the second quarter results which were driven by strong fee income and continued growth in our consumer business. Our commercial pipeline continues to build, so we are cautiously optimistic about growth in the second half of the year, despite the competitive headwinds,” said E. Philip Wenger, Chairman and CEO. “On the corporate front, our final BSA/AML order was terminated and we consolidated another one of our affiliate banks, which are two important milestones that should help facilitate growth moving forward.”

Net income per diluted share increased 6.1% in comparison to the $0.33 reported for the first quarter of 2019 and increased 75.0% from the $0.20 reported for the second quarter of 2018. The second quarter of 2018 included a credit loss related to a single, large commercial lending relationship (the “Commercial Relationship”) which equated to $0.16 per diluted share.

Net Interest Income and Balance Sheet

Net interest income for the second quarter of 2019 was $164.5 million, a $1.2 million, or 0.8%, increase from the first quarter of 2019. The increase resulted from balance sheet growth and one additional day in the second quarter, partially offset by the impact of a five basis point decrease in net interest margin. The decline in net interest margin resulted from a six basis point increase in the average cost of funds, which outpaced a two basis point increase in the average yield on interest-earning assets.

Total average assets for the second quarter of 2019 were $21.1 billion, an increase of $366.7 million from the first quarter of 2019, with average loans, net of unearned income, increasing $121.7 million, or 0.8%.

Average loans and yields, by type, for the second quarter of 2019 in comparison to the first quarter of 2019 are summarized in the following table:

Three Months Ended

 

 

 

 

 

 

June 30, 2019

 

March 31, 2019

 

Increase/(Decrease)

 

 

 

 

Balance

 

Yield (1)

 

Balance

 

Yield (1)

 

$

 

%

 

 

 

 

(dollars in thousands)

 

 

 

Average Loans, net of unearned income, by type:
Real estate - commercial mortgage

$

6,424,213

4.67

%

$

6,378,145

4.69

%

$

46,068

 

0.7

%

Commercial - industrial, financial and agricultural

 

4,440,860

4.73

%

 

4,462,609

4.66

%

 

(21,749

)

(0.5

%)

Real estate - residential mortgage

 

2,366,685

4.09

%

 

2,276,611

4.06

%

 

90,074

 

4.0

%

Real estate - home equity

 

1,404,141

5.35

%

 

1,433,574

5.33

%

 

(29,433

)

(2.1

%)

Real estate - construction

 

943,080

5.29

%

 

930,246

4.83

%

 

12,834

 

1.4

%

Consumer

 

445,666

4.38

%

 

424,480

4.49

%

 

21,186

 

5.0

%

Leasing

 

279,619

4.45

%

 

276,949

4.40

%

 

2,670

 

1.0

%

Other

 

11,812

N/A

 

 

11,761

N/A

 

 

51

 

0.4

%

 
Total Average Loans, net of unearned income

$

16,316,076

4.69

%

$

16,194,375

4.65

%

$

121,701

 

0.8

%

(1)

Presented on a fully-taxable equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances.

Total average liabilities increased $330.5 million, or 1.8%, from the first quarter of 2019, with average deposits increasing $99.8 million, or 0.6%, and short-term borrowings increasing $121.5 million, or 14.8%. Average deposits and interest rates, by type, for the second quarter of 2019 in comparison to the first quarter of 2019 are summarized in the following table:

Three Months Ended

 

 

 

 

 

 

June 30, 2019

 

March 31, 2019

 

Increase/(Decrease)

 

 

 

 

Balance

 

Rate

 

Balance

 

Rate

 

$

 

%

 

 

 

 

(dollars in thousands)

 

 

 

Average Deposits, by type:
Noninterest-bearing demand

$

4,200,810

-

%

$

4,222,875

-

%

$

(22,065

)

(0.5

%)

Interest-bearing demand

 

4,186,280

0.78

%

 

4,153,984

0.73

%

 

32,296

 

0.8

%

Savings and money market deposits

 

4,925,788

0.86

%

 

4,912,856

0.82

%

 

12,932

 

0.3

%

Total average demand and savings

 

13,312,878

0.56

%

 

13,289,715

0.53

%

 

23,163

 

0.2

%

Brokered deposits

 

246,154

2.58

%

 

220,115

2.55

%

 

26,039

 

11.8

%

Time deposits

 

2,816,424

1.74

%

 

2,765,803

1.59

%

 

50,621

 

1.8

%

 
Total Average Deposits

$

16,375,456

0.80

%

$

16,275,633

0.74

%

$

99,823

 

0.6

%

Asset Quality

The provision for credit losses for the second quarter of 2019 was $5.0 million, down slightly from $5.1 million for the first quarter of 2019. During the second quarter of 2018, Fulton recorded a $33.1 million provision for credit losses, mainly related to the Commercial Relationship mentioned above.

Non-performing assets were $155.0 million, or 0.73% of total assets, at June 30, 2019, compared to $147.7 million, or 0.70% of total assets, at March 31, 2019 and $134.9 million, or 0.67% of total assets, at June 30, 2018.

Annualized net recoveries for the quarter ended June 30, 2019 were 0.04% of total average loans, compared to net charge-offs of 0.10% and 1.01% for the quarters ended March 31, 2019 and June 30, 2018, respectively. The allowance for credit losses as a percentage of non-performing loans was 120% at June 30, 2019, compared to 123% at March 31, 2019 and 137% at June 30, 2018.

Non-interest Income

Non-interest income in the second quarter of 2019, excluding investment securities gains, was $54.1 million, an increase of $7.5 million, or 16.0%, in comparison to the first quarter of 2019 and an increase of $5.0 million, or 10.3%, compared to the second quarter of 2018. In the second quarter of 2019 in comparison to the first quarter of 2019, increases were realized in all categories, including mortgage banking income, wealth management fees and consumer banking income. Increases in commercial banking income were realized in commercial loan interest rate swap fees, merchant and card income and Small Business Administration income, which is included in other commercial banking income.

Non-interest Expense

Non-interest expense was $144.2 million in the second quarter of 2019, an increase of $6.3 million, or 4.6%, compared to the first quarter of 2019 and an increase of $10.8 million, or 8.1%, compared to the second quarter of 2018. Expenses incurred in the second quarter of 2019 related to charter consolidation activities were $5.1 million, as compared to $1.5 million in the first quarter of 2019, including $2.5 million in outside services expense, $1.6 million in salaries and benefits and approximately $1.0 million in various other expense categories. Increases were also realized in occupancy expense and marketing. These increases were partially offset by a decrease in professional fees.

Income Tax Expense

The effective income tax rate for the second quarter of 2019 was 14.2%, as compared to 15.6% for the first quarter of 2019.

Additional information on Fulton is available on the Internet at www.fult.com.

Safe Harbor Statement

This news release may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," “projects,” the negative of these terms and other comparable terminology. These forward looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results.

Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, they are based on current beliefs, expectations and assumptions regarding the future of the Corporation’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation’s control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2018 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, which have been filed with the Securities and Exchange Commission and are available in the Investor Relations section of the Corporation's website (www.fult.com) and on the Securities and Exchange Commission's website (www.sec.gov).

Non-GAAP Financial Measures

The Corporation uses certain non-GAAP financial measures in this earnings release. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this release.

FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
in thousands, except per-share data and percentages

Three Months Ended

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

2019

 

2019

 

2018

 

2018

 

2018

Ending Balances
Investments

$

2,853,358

$

2,748,249

$

2,686,973

$

2,635,413

$

2,593,283

Loans, net of unearned income

 

16,368,458

 

16,262,633

 

16,165,800

 

15,925,093

 

15,792,969

Total assets

 

21,308,670

 

20,974,649

 

20,682,152

 

20,364,810

 

20,172,539

Deposits

 

16,388,895

 

16,377,978

 

16,376,159

 

16,249,014

 

15,599,799

Shareholders' equity

 

2,308,798

 

2,301,019

 

2,247,573

 

2,283,014

 

2,245,785

 
Average Balances
Investments

$

2,790,392

$

2,699,130

$

2,646,266

$

2,596,414

$

2,601,705

Loans, net of unearned income

 

16,316,076

 

16,194,375

 

15,965,637

 

15,862,143

 

15,768,377

Total assets

 

21,057,030

 

20,690,365

 

20,512,130

 

20,273,232

 

20,063,375

Deposits

 

16,375,456

 

16,275,633

 

16,413,066

 

15,967,234

 

15,517,424

Shareholders' equity

 

2,301,258

 

2,265,097

 

2,281,669

 

2,269,093

 

2,246,904

 
Income Statement
Net interest income

$

164,544

$

163,315

$

162,944

$

160,127

$

156,067

Provision for credit losses

 

5,025

 

5,100

 

8,200

 

1,620

 

33,117

Non-interest income

 

54,315

 

46,751

 

49,523

 

51,033

 

49,094

Non-interest expense

 

144,168

 

137,824

 

140,685

 

135,413

 

133,345

Income before taxes

 

69,666

 

67,142

 

63,582

 

74,127

 

38,699

Net income

 

59,779

 

56,663

 

58,083

 

65,633

 

35,197

Pre-provision net revenue(1)

 

76,114

 

73,775

 

78,320

 

77,370

 

73,449

 
Per Share
Net income (basic)

$

0.36

$

0.33

$

0.33

$

0.37

$

0.20

Net income (diluted)

$

0.35

$

0.33

$

0.33

$

0.37

$

0.20

Cash dividends

$

0.13

$

0.13

$

0.16

$

0.12

$

0.12

Tangible common equity(1)

 

10.63

 

10.39

 

10.08

 

9.95

 

9.75

Weighted average shares (basic)

 

168,343

 

169,884

 

174,571

 

175,942

 

175,764

Weighted average shares (diluted)

 

169,168

 

170,909

 

175,473

 

177,128

 

176,844

 
Asset Quality
Net charge-offs (recoveries) to average loans (annualized)

 

(0.04%)

 

0.10%

 

0.17%

 

0.08%

 

1.01%

Non-performing loans to total loans

 

0.90%

 

0.85%

 

0.86%

 

0.75%

 

0.78%

Non-performing assets to total assets

 

0.73%

 

0.70%

 

0.73%

 

0.64%

 

0.67%

Allowance for credit losses to loans outstanding

 

1.08%

 

1.05%

 

1.05%

 

1.05%

 

1.07%

Allowance for loan losses to loans outstanding

 

1.04%

 

1.00%

 

0.99%

 

0.99%

 

0.99%

Allowance for credit losses to non-performing loans

 

120%

 

123%

 

121%

 

140%

 

137%

Allowance for loan losses to non-performing loans

 

115%

 

117%

 

115%

 

131%

 

126%

Non-performing assets to tangible shareholders' equity and allowance for credit losses(1)

 

7.94%

 

7.63%

 

7.97%

 

6.81%

 

7.16%

 
 
Profitability
Return on average assets

 

1.14%

 

1.11%

 

1.12%

 

1.28%

 

0.70%

Return on average shareholders' equity

 

10.42%

 

10.15%

 

10.10%

 

11.48%

 

6.28%

Return on average shareholders' equity (tangible)(1)

 

13.60%

 

13.28%

 

13.17%

 

14.99%

 

8.23%

Net interest margin

 

3.44%

 

3.49%

 

3.44%

 

3.42%

 

3.39%

Efficiency ratio(1)

 

64.2%

 

63.9%

 

62.2%

 

62.5%

 

63.3%

 
Capital Ratios
Tangible common equity ratio(1)

 

8.54%

 

8.64%

 

8.52%

 

8.83%

 

8.73%

Tier 1 leverage ratio(2)

 

8.89%

 

8.92%

 

9.01%

 

9.34%

 

9.20%

Common equity Tier 1 capital ratio(2)

 

9.94%

 

10.16%

 

10.22%

 

10.80%

 

10.60%

Tier 1 capital ratio(2)

 

9.94%

 

10.16%

 

10.22%

 

10.80%

 

10.60%

Total risk-based capital ratio(2)

 

12.42%

 

12.63%

 

12.75%

 

13.34%

 

13.18%

(1) Please refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this document.
(2) Regulatory capital ratios as of June 30, 2019 are preliminary and prior periods are actual.

 

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands

 

 

 

 

 

% Change from

 

 

 

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

Jun 30

 

 

 

2019

2019

2018

2018

2018

2019

2018

 
ASSETS
 
Cash and due from banks

$

107,091

 

$

115,884

 

$

103,436

 

$

90,361

 

$

99,742

 

(7.6

%)

7.4

%

Other interest-earning assets

 

488,968

 

 

411,037

 

 

421,534

 

 

388,256

 

 

364,802

 

19.0

%

34.0

%

Loans held for sale

 

45,754

 

 

27,768

 

 

27,099

 

 

27,525

 

 

35,898

 

64.8

%

27.5

%

Investment securities

 

2,853,358

 

 

2,748,249

 

 

2,686,973

 

 

2,635,413

 

 

2,593,283

 

3.8

%

10.0

%

Loans, net of unearned income

 

16,368,458

 

 

16,262,633

 

 

16,165,800

 

 

15,925,093

 

 

15,792,969

 

0.7

%

3.6

%

Allowance for loan losses

 

(170,233

)

 

(162,109

)

 

(160,537

)

 

(157,810

)

 

(156,050

)

5.0

%

9.1

%

Net loans

 

16,198,225

 

 

16,100,524

 

 

16,005,263

 

 

15,767,283

 

 

15,636,919

 

0.6

%

3.6

%

Premises and equipment

 

243,300

 

 

239,004

 

 

234,529

 

 

231,236

 

 

230,195

 

1.8

%

5.7

%

Accrued interest receivable

 

62,984

 

 

62,207

 

 

58,879

 

 

58,584

 

 

55,208

 

1.2

%

14.1

%

Goodwill and intangible assets

 

535,249

 

 

535,356

 

 

531,556

 

 

531,556

 

 

531,556

 

(0.0

%)

0.7

%

Other assets

 

773,741

 

 

734,620

 

 

612,883

 

 

634,596

 

 

624,936

 

5.3

%

23.8

%

 
Total Assets

$

21,308,670

 

$

20,974,649

 

$

20,682,152

 

$

20,364,810

 

$

20,172,539

 

1.6

%

5.6

%

 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Deposits

$

16,388,895

 

$

16,377,978

 

$

16,376,159

 

$

16,249,014

 

$

15,599,799

 

0.1

%

5.1

%

Short-term borrowings

 

1,188,390

 

 

829,016

 

 

754,777

 

 

485,565

 

 

983,833

 

43.3

%

20.8

%

Other liabilities

 

435,171

 

 

401,324

 

 

311,364

 

 

355,102

 

 

351,174

 

8.4

%

23.9

%

FHLB advances and long-term debt

 

987,416

 

 

1,065,312

 

 

992,279

 

 

992,115

 

 

991,948

 

(7.3

%)

(0.5

%)

 
Total Liabilities

 

18,999,872

 

 

18,673,630

 

 

18,434,579

 

 

18,081,796

 

 

17,926,754

 

1.7

%

6.0

%

 
Shareholders' equity

 

2,308,798

 

 

2,301,019

 

 

2,247,573

 

 

2,283,014

 

 

2,245,785

 

0.3

%

2.8

%

 
Total Liabilities and Shareholders' Equity

$

21,308,670

 

$

20,974,649

 

$

20,682,152

 

$

20,364,810

 

$

20,172,539

 

1.6

%

5.6

%

 
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
 
Loans, by type:
Real estate - commercial mortgage

$

6,497,973

 

$

6,428,688

 

$

6,434,285

 

$

6,337,984

 

$

6,304,475

 

1.1

%

3.1

%

Commercial - industrial, financial and agricultural

 

4,365,248

 

 

4,429,538

 

 

4,404,548

 

 

4,288,823

 

 

4,264,602

 

(1.5

%)

2.4

%

Real estate - residential mortgage

 

2,451,966

 

 

2,313,908

 

 

2,251,044

 

 

2,173,548

 

 

2,094,530

 

6.0

%

17.1

%

Real estate - home equity

 

1,386,974

 

 

1,413,500

 

 

1,452,137

 

 

1,469,152

 

 

1,491,395

 

(1.9

%)

(7.0

%)

Real estate - construction

 

922,547

 

 

953,087

 

 

916,599

 

 

979,857

 

 

990,705

 

(3.2

%)

(6.9

%)

Consumer

 

452,874

 

 

433,545

 

 

419,186

 

 

390,708

 

 

360,315

 

4.5

%

25.7

%

Leasing and other

 

290,876

 

 

290,367

 

 

288,001

 

 

285,021

 

 

286,947

 

0.2

%

1.4

%

 
Total Loans, net of unearned income

$

16,368,458

 

$

16,262,633

 

$

16,165,800

 

$

15,925,093

 

$

15,792,969

 

0.7

%

3.6

%

 
Deposits, by type:
Noninterest-bearing demand

$

4,226,404

 

$

4,255,043

 

$

4,310,105

 

$

4,216,064

 

$

4,324,659

 

(0.7

%)

(2.3

%)

Interest-bearing demand

 

4,083,615

 

 

4,207,442

 

 

4,240,974

 

 

4,289,181

 

 

3,854,680

 

(2.9

%)

5.9

%

Savings and money market accounts

 

4,938,998

 

 

4,907,346

 

 

4,926,937

 

 

4,878,982

 

 

4,597,510

 

0.6

%

7.4

%

Total demand and savings

 

13,249,017

 

 

13,369,831

 

 

13,478,016

 

 

13,384,227

 

 

12,776,849

 

(0.9

%)

3.7

%

Brokered deposits

 

246,116

 

 

251,395

 

 

176,239

 

 

164,601

 

 

161,447

 

(2.1

%)

52.4

%

Time deposits

 

2,893,762

 

 

2,756,752

 

 

2,721,904

 

 

2,700,186

 

 

2,661,503

 

5.0

%

8.7

%

 
Total Deposits

$

16,388,895

 

$

16,377,978

 

$

16,376,159

 

$

16,249,014

 

$

15,599,799

 

0.1

%

5.1

%

 
Short-term borrowings, by type:
Customer repurchase agreements

$

56,496

 

$

54,440

 

$

43,499

 

$

82,741

 

$

152,594

 

3.8

%

(63.0

%)

Customer short-term promissory notes

 

281,894

 

 

299,576

 

 

326,278

 

 

267,824

 

 

303,239

 

(5.9

%)

(7.0

%)

Short-term FHLB advances

 

650,000

 

 

475,000

 

 

385,000

 

 

85,000

 

 

185,000

 

36.8

%

N/M

 

Federal funds purchased

 

200,000

 

 

-

 

 

-

 

 

50,000

 

 

343,000

 

100.0

%

(41.7

%)

 
Total Short-term Borrowings

$

1,188,390

 

$

829,016

 

$

754,777

 

$

485,565

 

$

983,833

 

43.3

%

20.8

%

 
N/M - Not meaningful
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands

Three Months Ended

% Change from

 

 

 

 

 

 

 

 

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Jun 30

 

 

 

Six Months Ended Jun 30

 

 

 

 

 

 

2019

 

2019

 

2018

 

2018

 

2018

 

2019

 

2018

 

 

 

2019

 

2018

 

% Change

 
Interest Income:
Interest income

$

210,034

$

204,700

$

200,609

$

194,048

$

186,170

2.6

%

12.8

%

$

414,734

$

363,857

14.0

%

Interest expense

 

45,490

 

41,385

 

37,665

 

33,921

 

30,103

9.9

%

51.1

%

 

86,875

 

56,472

53.8

%

 
Net Interest Income

 

164,544

 

163,315

 

162,944

 

160,127

 

156,067

0.8

%

5.4

%

 

327,859

 

307,385

6.7

%

Provision for credit losses

 

5,025

 

5,100

 

8,200

 

1,620

 

33,117

(1.5

%)

(84.8

%)

 

10,125

 

37,087

(72.7

%)

 
Net Interest Income after Provision

 

159,519

 

158,215

 

154,744

 

158,507

 

122,950

0.8

%

29.7

%

 

317,734

 

270,298

17.5

%

 
Non-Interest Income:
Wealth management fees

 

14,153

 

13,239

 

13,408

 

13,066

 

12,803

6.9

%

10.5

%

 

27,392

 

25,674

6.7

%

Mortgage banking income

 

6,593

 

4,772

 

4,774

 

4,896

 

5,163

38.2

%

27.7

%

 

11,365

 

9,356

21.5

%

Consumer banking income:
Card income

 

5,047

 

4,686

 

4,966

 

5,382

 

4,708

7.7

%

7.2

%

 

9,733

 

9,149

6.4

%

Overdraft fees

 

4,413

 

4,104

 

4,653

 

4,443

 

4,268

7.5

%

3.4

%

 

8,517

 

8,509

0.1

%

Other consumer banking income

 

2,907

 

2,587

 

2,799

 

2,840

 

2,955

12.4

%

(1.6

%)

 

5,494

 

5,682

(3.3

%)

Total consumer banking income

 

12,367

 

11,377

 

12,418

 

12,665

 

11,931

8.7

%

3.7

%

 

23,744

 

23,340

1.7

%

Commercial banking income:
Merchant and card income

 

6,512

 

5,558

 

5,656

 

6,307

 

6,155

17.2

%

5.8

%

 

12,070

 

11,463

5.3

%

Cash management fees

 

4,638

 

4,361

 

4,340

 

4,472

 

4,452

6.4

%

4.2

%

 

8,999

 

8,770

2.6

%

Commercial loan interest rate swap fees

 

3,477

 

2,028

 

2,540

 

3,607

 

2,393

71.4

%

45.3

%

 

5,505

 

3,684

49.4

%

Other commercial banking income

 

3,815

 

2,816

 

3,466

 

3,154

 

3,431

35.5

%

11.2

%

 

6,631

 

6,471

2.5

%

Total commercial banking income

 

18,442

 

14,763

 

16,002

 

17,540

 

16,431

24.9

%

12.2

%

 

33,205

 

30,388

9.3

%

Other income

 

2,584

 

2,535

 

2,921

 

2,852

 

2,762

1.9

%

(6.4

%)

 

5,119

 

6,188

(17.3

%)

Non-Interest Income before Investment Securities Gains

 

54,139

 

46,686

 

49,523

 

51,019

 

49,090

16.0

%

10.3

%

 

100,825

 

94,946

6.2

%

Investment securities gains, net

 

176

 

65

 

-

 

14

 

4

170.8

%

N/M

 

 

241

 

23

N/M

 

 
Total Non-Interest Income

 

54,315

 

46,751

 

49,523

 

51,033

 

49,094

16.2

%

10.6

%

 

101,066

 

94,969

6.4

%

 
Non-Interest Expense:
Salaries and employee benefits

 

78,991

 

77,757

 

75,745

 

76,770

 

74,919

1.6

%

5.4

%

 

156,748

 

150,687

4.0

%

Net occupancy expense

 

14,469

 

12,909

 

12,708

 

12,578

 

12,760

12.1

%

13.4

%

 

27,378

 

26,392

3.7

%

Data processing and software

 

11,268

 

10,353

 

10,203

 

10,157

 

10,453

8.8

%

7.8

%

 

21,621

 

20,926

3.3

%

Other outside services

 

11,259

 

8,352

 

8,944

 

9,122

 

7,568

34.8

%

48.8

%

 

19,611

 

15,692

25.0

%

Equipment expense

 

3,299

 

3,342

 

3,275

 

3,000

 

3,434

(1.3

%)

(3.9

%)

 

6,641

 

6,968

(4.7

%)

Professional fees

 

2,970

 

3,960

 

3,546

 

3,427

 

2,372

(25.0

%)

25.2

%

 

6,930

 

7,188

(3.6

%)

Marketing

 

2,863

 

2,160

 

1,577

 

2,692

 

2,335

32.5

%

22.6

%

 

5,023

 

4,585

9.6

%

FDIC insurance expense

 

2,755

 

2,609

 

2,563

 

2,814

 

2,663

5.6

%

3.5

%

 

5,364

 

5,616

(4.5

%)

Amortization of tax credit investments

 

1,492

 

1,491

 

6,538

 

1,637

 

1,637

0.0

%

(8.9

%)

 

2,983

 

3,274

(8.9

%)

Intangible amortization

 

107

 

107

 

-

 

-

 

-

-

 

100.0

%

 

214

 

-

100.0

%

Other

 

14,695

 

14,784

 

15,586

 

13,216

 

15,204

(0.6

%)

(3.3

%)

 

29,479

 

28,678

2.8

%

 
Total Non-Interest Expense

 

144,168

 

137,824

 

140,685

 

135,413

 

133,345

4.6

%

8.1

%

 

281,992

 

270,006

4.4

%

 
Income before Income Taxes

 

69,666

 

67,142

 

63,582

 

74,127

 

38,699

3.8

%

80.0

%

 

136,808

 

95,261

43.6

%

Income tax expense

 

9,887

 

10,479

 

5,499

 

8,494

 

3,502

(5.6

%)

N/M

 

 

20,366

 

10,584

92.4

%

 
Net Income

$

59,779

$

56,663

$

58,083

$

65,633

$

35,197

5.5

%

69.8

%

$

116,442

$

84,677

37.5

%

 
PER SHARE:
 
Net income:
Basic

$

0.36

$

0.33

$

0.33

$

0.37

$

0.20

9.1

%

80.0

%

$

0.69

$

0.48

43.8

%

Diluted

 

0.35

 

0.33

 

0.33

 

0.37

 

0.20

6.1

%

75.0

%

 

0.68

 

0.48

41.7

%

Cash dividends

 

0.13

 

0.13

 

0.16

 

0.12

 

0.12

-

 

8.3

%

 

0.26

 

0.24

8.3

%

 
Weighted average shares (basic)

 

168,343

 

169,884

 

174,571

 

175,942

 

175,764

(0.9

%)

(4.2

%)

 

169,109

 

175,535

(3.7

%)

Weighted average shares (diluted)

 

169,168

 

170,909

 

175,473

 

177,128

 

176,844

(1.0

%)

(4.3

%)

 

170,042

 

176,506

(3.7

%)

 
N/M - not meaningful
 
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands

Three Months Ended

 

 

 

June 30, 2019

 

March 31, 2019

 

June 30, 2018

 

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

 

 

Balance

 

Interest (1)

 

Rate

 

Balance

 

Interest (1)

 

Rate

 

Balance

 

Interest (1)

 

Rate

ASSETS
 
Interest-earning assets:
Loans, net of unearned income

$

16,316,076

 

$

190,694

 

4.69

%

$

16,194,375

 

$

186,122

 

4.65

%

$

15,768,377

 

$

170,006

 

4.32

%

 
Taxable investment securities

 

2,348,443

 

 

15,935

 

2.71

%

 

2,285,724

 

 

15,435

 

2.70

%

 

2,262,789

 

 

13,885

 

2.45

%

Tax-exempt investment securities

 

444,227

 

 

4,141

 

3.70

%

 

444,132

 

 

4,150

 

3.71

%

 

408,715

 

 

3,713

 

3.63

%

 
Total Investment Securities

 

2,792,670

 

 

20,076

 

2.87

%

 

2,729,856

 

 

19,585

 

2.87

%

 

2,671,504

 

 

17,598

 

2.63

%

 
Loans held for sale

 

24,568

 

 

350

 

5.71

%

 

16,434

 

 

240

 

5.85

%

 

22,237

 

 

284

 

5.11

%

Other interest-earning assets

 

409,617

 

 

2,168

 

2.12

%

 

366,175

 

 

2,002

 

2.20

%

 

316,381

 

 

1,243

 

1.57

%

 
Total Interest-earning Assets

 

19,542,931

 

 

213,288

 

4.37

%

 

19,306,840

 

 

207,949

 

4.35

%

 

18,778,499

 

 

189,131

 

4.04

%

 
Noninterest-earning assets:
Cash and due from banks

 

116,285

 

 

110,693

 

 

100,811

 

Premises and equipment

 

240,666

 

 

237,124

 

 

232,048

 

Other assets

 

1,321,057

 

 

1,197,034

 

 

1,112,913

 

Less: allowance for loan losses

 

(163,909

)

 

(161,326

)

 

(160,896

)

 
Total Assets

$

21,057,030

 

$

20,690,365

 

$

20,063,375

 

 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Interest-bearing liabilities:
Demand deposits

$

4,186,280

 

$

8,173

 

0.78

%

$

4,153,984

 

$

7,519

 

0.73

%

$

3,952,115

 

$

4,959

 

0.50

%

Savings deposits

 

4,925,788

 

 

10,550

 

0.86

%

 

4,912,856

 

 

9,962

 

0.82

%

 

4,538,083

 

 

5,545

 

0.49

%

Brokered deposits

 

246,154

 

 

1,582

 

2.58

%

 

220,115

 

 

1,382

 

2.55

%

 

85,242

 

 

396

 

1.87

%

Time deposits

 

2,816,424

 

 

12,245

 

1.74

%

 

2,765,803

 

 

10,826

 

1.59

%

 

2,660,411

 

 

8,385

 

1.26

%

 
Total Interest-bearing Deposits

 

12,174,646

 

 

32,550

 

1.07

%

 

12,052,758

 

 

29,689

 

1.00

%

 

11,235,850

 

 

19,285

 

0.69

%

 
Short-term borrowings

 

941,504

 

 

4,462

 

1.89

%

 

820,054

 

 

3,582

 

1.76

%

 

1,023,160

 

 

3,036

 

1.18

%

FHLB advances and long-term debt

 

1,051,919

 

 

8,480

 

3.23

%

 

1,002,463

 

 

8,114

 

3.26

%

 

945,177

 

 

7,783

 

3.30

%

 
Total Interest-bearing Liabilities

 

14,168,069

 

 

45,492

 

1.29

%

 

13,875,275

 

 

41,385

 

1.21

%

 

13,204,187

 

 

30,104

 

0.91

%

 
Noninterest-bearing liabilities:
Demand deposits

 

4,200,810

 

 

4,222,875

 

 

4,281,574

 

Other

 

386,893

 

 

327,118

 

 

330,710

 

 
Total Liabilities

 

18,755,772

 

 

18,425,268

 

 

17,816,471

 

 
Shareholders' equity

 

2,301,258

 

 

2,265,097

 

 

2,246,904

 

 
Total Liabilities and Shareholders' Equity

$

21,057,030

 

$

20,690,365

 

$

20,063,375

 

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

 

167,796

 

3.44

%

 

166,564

 

3.49

%

 

159,027

 

3.39

%

Tax equivalent adjustment

 

(3,252

)

 

(3,249

)

 

(2,960

)

 
Net interest income

$

164,544

 

$

163,315

 

$

156,067

 

 
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
Note: The weighted average interest rate on total average interest-bearing liabilities and average non-interest bearing demand deposits (“cost of funds”) was 0.99%, 0.93% and 0.69% for the three months ended June 30, 2019, March 31, 2019 and June 30, 2018, respectively.
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

Three Months Ended

 

% Change from

 

 

 

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Jun 30

 

 

 

 

 

2019

 

2019

 

2018

 

2018

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, by type:
Real estate - commercial mortgage

$

6,424,213

$

6,378,145

$

6,343,024

$

6,309,663

$

6,298,534

0.7

%

2.0

%

Commercial - industrial, financial and agricultural

 

4,440,860

 

4,462,609

 

4,329,937

 

4,304,320

 

4,335,097

(0.5

%)

2.4

%

Real estate - residential mortgage

 

2,366,685

 

2,276,611

 

2,209,993

 

2,142,977

 

2,026,161

4.0

%

16.8

%

Real estate - home equity

 

1,404,141

 

1,433,574

 

1,459,647

 

1,474,011

 

1,502,936

(2.1

%)

(6.6

%)

Real estate - construction

 

943,080

 

930,246

 

931,724

 

969,575

 

978,327

1.4

%

(3.6

%)

Consumer

 

445,666

 

424,480

 

406,436

 

375,656

 

345,572

5.0

%

29.0

%

Leasing and other

 

291,431

 

288,710

 

284,876

 

285,941

 

281,750

0.9

%

3.4

%

 
Total Loans, net of unearned income

$

16,316,076

$

16,194,375

$

15,965,637

$

15,862,143

$

15,768,377

0.8

%

3.5

%

 
Deposits, by type:
Noninterest-bearing demand

$

4,200,810

$

4,222,875

$

4,321,776

$

4,298,020

$

4,281,574

(0.5

%)

(1.9

%)

Interest-bearing demand

 

4,186,280

 

4,153,984

 

4,225,157

 

4,116,051

 

3,952,115

0.8

%

5.9

%

Savings and money market accounts

 

4,925,788

 

4,912,856

 

4,979,712

 

4,718,148

 

4,538,083

0.3

%

8.5

%

Total demand and savings

 

13,312,878

 

13,289,715

 

13,526,645

 

13,132,219

 

12,771,772

0.2

%

4.2

%

Brokered deposits

 

246,154

 

220,115

 

164,280

 

162,467

 

85,242

11.8

%

N/M

 

Time deposits

 

2,816,424

 

2,765,803

 

2,722,141

 

2,672,548

 

2,660,412

1.8

%

5.9

%

 
Total Deposits

$

16,375,456

$

16,275,633

$

16,413,066

$

15,967,234

$

15,517,424

0.6

%

5.5

%

 
Short-term borrowings, by type:
Customer repurchase agreements

$

56,171

$

56,707

$

64,102

$

148,660

$

162,276

(0.9

%)

(65.4

%)

Customer short-term promissory notes

 

288,696

 

312,092

 

310,296

 

298,896

 

316,049

(7.5

%)

(8.7

%)

Federal funds purchased

 

181,769

 

157,122

 

43

 

145,793

 

398,297

15.7

%

(54.4

%)

Short-term FHLB advances and other borrowings

 

414,868

 

294,133

 

130,109

 

130,783

 

146,538

41.0

%

N/M

 

 
Total Short-term Borrowings

$

941,504

$

820,054

$

504,550

$

724,132

$

1,023,160

14.8

%

(8.0

%)

 
N/M - Not meaningful
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands

Six Months Ended June 30

 

 

 

 

2019

 

 

 

2018

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

 

Balance

 

Interest (1)

 

Yield/Rate

 

Balance

 

Interest (1)

 

Yield/Rate

ASSETS
 
Interest-earning assets:
Loans, net of unearned income

$

16,255,562

 

$

376,816

 

4.67

%

$

15,715,001

 

$

332,267

 

4.26

%

Taxable investment securities

 

2,317,257

 

 

31,370

 

2.71

%

 

2,230,991

 

 

27,078

 

2.43

%

Tax-exempt investment securities

 

444,180

 

 

8,291

 

3.71

%

 

410,761

 

 

7,466

 

3.64

%

Equity securities

 

-

 

 

-

 

-

 

 

253

 

 

5

 

8.30

%

 
Total Investment Securities

 

2,761,437

 

 

39,661

 

2.87

%

 

2,642,005

 

 

34,549

 

2.62

%

 
Loans held for sale

 

20,523

 

 

590

 

5.76

%

 

21,132

 

 

500

 

4.73

%

Other interest-earning assets

 

388,016

 

 

4,170

 

2.16

%

 

309,620

 

 

2,415

 

1.56

%

 
Total Interest-earning Assets

 

19,425,538

 

 

421,237

 

4.36

%

 

18,687,758

 

 

369,731

 

3.98

%

 
Noninterest-earning assets:
Cash and due from banks

 

113,504

 

 

103,258

 

Premises and equipment

 

238,905

 

 

231,152

 

Other assets

 

1,259,388

 

 

1,113,118

 

Less: allowance for loan losses

 

(162,624

)

 

(165,035

)

 
Total Assets

$

20,874,711

 

$

19,970,251

 

 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Interest-bearing liabilities:
Demand deposits

$

4,170,221

 

$

15,692

 

0.76

%

$

3,955,485

 

$

8,963

 

0.46

%

Savings deposits

 

4,919,357

 

 

20,512

 

0.84

%

 

4,516,384

 

 

9,912

 

0.44

%

Brokered deposits

 

233,206

 

 

2,964

 

2.56

%

 

79,665

 

 

671

 

1.70

%

Time deposits

 

2,791,254

 

 

23,071

 

1.67

%

 

2,653,634

 

 

16,188

 

1.23

%

 
Total Interest-bearing Deposits

 

12,114,038

 

 

62,239

 

1.04

%

 

11,205,168

 

 

35,734

 

0.64

%

 
Short-term borrowings

 

881,115

 

 

8,044

 

1.83

%

 

960,348

 

 

5,077

 

1.06

%

FHLB advances and long-term debt

 

1,027,328

 

 

16,594

 

3.24

%

 

966,129

 

 

15,661

 

3.25

%

 
Total Interest-bearing Liabilities

 

14,022,481

 

 

86,877

 

1.25

%

 

13,131,645

 

 

56,472

 

0.87

%

 
Noninterest-bearing liabilities:
Demand deposits

 

4,211,782

 

 

4,263,968

 

Other

 

357,170

 

 

338,817

 

 
Total Liabilities

 

18,591,433

 

 

17,734,430

 

 
Shareholders' equity

 

2,283,278

 

 

2,235,821

 

 
Total Liabilities and Shareholders' Equity

$

20,874,711

 

$

19,970,251

 

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

 

334,360

 

3.46

%

 

313,259

 

3.37

%

Tax equivalent adjustment

 

(6,501

)

 

(5,874

)

 
Net interest income

$

327,859

 

$

307,385

 

 
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
Note: The weighted average interest rate on total average interest-bearing liabilities and average non-interest bearing demand deposits (“cost of funds”) was 0.96% and 0.65% for the six months ended June 30, 2019 and 2018, respectively.
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
 

Six Months Ended

June 30

2019

2018

% Change

 
Loans, by type:
Real estate - commercial mortgage

$

6,401,305

$

6,302,157

1.6

%

Commercial - industrial, financial and agricultural

 

4,451,677

 

4,311,994

3.2

%

Real estate - residential mortgage

 

2,321,897

 

1,992,520

16.5

%

Real estate - home equity

 

1,418,776

 

1,520,855

(6.7

%)

Real estate - construction

 

936,699

 

981,269

(4.5

%)

Consumer

 

435,131

 

330,831

31.5

%

Leasing and other

 

290,077

 

275,375

5.3

%

 
Total Loans, net of unearned income

$

16,255,562

$

15,715,001

3.4

%

 
Deposits, by type:
Noninterest-bearing demand

$

4,211,782

$

4,263,968

(1.2

%)

Interest-bearing demand

 

4,170,221

 

3,955,485

5.4

%

Savings and money market accounts

 

4,919,357

 

4,516,384

8.9

%

Total demand and savings

 

13,301,360

 

12,735,837

4.4

%

Brokered deposits

 

233,206

 

79,665

N/M

 

Time deposits

 

2,791,254

 

2,653,634

5.2

%

 
Total Deposits

$

16,325,820

$

15,469,136

5.5

%

 
Short-term borrowings, by type:
Customer repurchase agreements

$

191,880

$

169,300

13.3

%

Customer short-term promissory notes

 

300,329

 

312,407

(3.9

%)

Federal funds purchased

 

169,514

 

389,111

(56.4

%)

Short-term FHLB advances and other borrowings

 

219,392

 

89,530

N/M

 

 
Total Short-term Borrowings

$

881,115

$

960,348

(8.3

%)

 
N/M - Not meaningful
 
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
 

Three Months Ended

 

Six Months Ended

 

 

 

 

 

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Jun 30

 

Jun 30

 

 

 

 

 

 

 

2019

 

2019

 

2018

 

2018

 

2018

 

2019

 

2018

 

 

ALLOWANCE FOR CREDIT LOSSES:
 
Balance at beginning of period

$

170,372

 

$

169,410

 

$

167,826

 

$

169,247

 

$

176,019

 

$

169,410

 

$

176,084

 

 
Loans charged off:
Commercial - industrial, financial and agricultural

 

(1,895

)

 

(2,787

)

 

(6,263

)

 

(3,541

)

 

(38,632

)

 

(4,682

)

 

(42,637

)

Real estate - commercial mortgage

 

(230

)

 

(1,145

)

 

(762

)

 

(650

)

 

(366

)

 

(1,375

)

 

(633

)

Consumer and home equity

 

(1,001

)

 

(902

)

 

(1,884

)

 

(1,415

)

 

(1,528

)

 

(1,903

)

 

(2,828

)

Real estate - residential mortgage

 

(134

)

 

(655

)

 

(446

)

 

(483

)

 

(483

)

 

(789

)

 

(645

)

Real estate - construction

 

(3

)

 

(95

)

 

(392

)

 

(212

)

 

(606

)

 

(98

)

 

(764

)

Leasing and other

 

(448

)

 

(785

)

 

(889

)

 

(582

)

 

(545

)

 

(1,233

)

 

(1,050

)

Total loans charged off

 

(3,711

)

 

(6,369

)

 

(10,636

)

 

(6,883

)

 

(42,160

)

 

(10,080

)

 

(48,557

)

Recoveries of loans previously charged off:
Commercial - industrial, financial and agricultural

 

2,680

 

 

1,243

 

 

2,647

 

 

731

 

 

541

 

 

3,923

 

 

1,616

 

Real estate - commercial mortgage

 

169

 

 

136

 

 

94

 

 

928

 

 

321

 

 

305

 

 

600

 

Consumer and home equity

 

802

 

 

407

 

 

684

 

 

607

 

 

717

 

 

1,209

 

 

1,102

 

Real estate - residential mortgage

 

211

 

 

132

 

 

100

 

 

317

 

 

96

 

 

343

 

 

203

 

Real estate - construction

 

1,245

 

 

84

 

 

415

 

 

664

 

 

444

 

 

1,329

 

 

750

 

Leasing and other

 

148

 

 

229

 

 

80

 

 

595

 

 

152

 

 

377

 

 

362

 

Recoveries of loans previously charged off

 

5,255

 

 

2,231

 

 

4,020

 

 

3,842

 

 

2,271

 

 

7,486

 

 

4,633

 

Net loans charged off

 

1,544

 

 

(4,138

)

 

(6,616

)

 

(3,041

)

 

(39,889

)

 

(2,594

)

 

(43,924

)

Provision for credit losses

 

5,025

 

 

5,100

 

 

8,200

 

 

1,620

 

 

33,117

 

 

10,125

 

 

37,087

 

 
Balance at end of period

$

176,941

 

$

170,372

 

$

169,410

 

$

167,826

 

$

169,247

 

$

176,941

 

$

169,247

 

 
Net charge-offs to average loans (annualized)

 

(0.04

%)

 

0.10

%

 

0.17

%

 

0.08

%

 

1.01

%

 

0.03

%

 

0.56

%

 
NON-PERFORMING ASSETS:
 
Non-accrual loans

$

133,118

 

$

127,141

 

$

128,572

 

$

106,433

 

$

111,116

 

Loans 90 days past due and accruing

 

14,598

 

 

11,540

 

 

11,106

 

 

13,663

 

 

12,628

 

Total non-performing loans

 

147,716

 

 

138,681

 

 

139,678

 

 

120,096

 

 

123,744

 

Other real estate owned

 

7,241

 

 

9,012

 

 

10,518

 

 

10,684

 

 

11,181

 

 
Total non-performing assets

$

154,957

 

$

147,693

 

$

150,196

 

$

130,780

 

$

134,925

 

 
NON-PERFORMING LOANS, BY TYPE:
 
Commercial - industrial, financial and agricultural

$

47,260

 

$

50,148

 

$

51,269

 

$

43,391

 

$

44,045

 

Real estate - commercial mortgage

 

43,850

 

 

29,817

 

 

32,153

 

 

37,393

 

 

39,278

 

Real estate - residential mortgage

 

21,659

 

 

22,299

 

 

19,101

 

 

19,076

 

 

18,888

 

Consumer and home equity

 

12,378

 

 

10,770

 

 

10,178

 

 

10,362

 

 

12,038

 

Real estate - construction

 

4,632

 

 

7,039

 

 

7,390

 

 

9,784

 

 

9,319

 

Leasing

 

17,937

 

 

18,608

 

 

19,587

 

 

90

 

 

176

 

 
Total non-performing loans

$

147,716

 

$

138,681

 

$

139,678

 

$

120,096

 

$

123,744

 

 
 
FULTON FINANCIAL CORPORATION
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
in thousands, except per share data and percentages

Explanatory note:

This press release contains supplemental financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:

Three Months Ended

 

 

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

 

 

 

2019

 

2019

 

2018

 

2018

 

2018

Shareholders' equity (tangible), per share
Shareholders' equity

$

2,308,798

$

2,301,019

$

2,247,573

$

2,283,014

$

2,245,785

Less: Goodwill and intangible assets

 

(535,249)

 

(535,356)

 

(531,556)

 

(531,556)

 

(531,556)

Tangible shareholders' equity (numerator)

$

1,773,549

$

1,765,663

$

1,716,017

$

1,751,458

$

1,714,229

 
Shares outstanding, end of period (denominator)

 

166,903

 

169,923

 

170,184

 

176,019

 

175,847

 
Shareholders' equity (tangible), per share

$

10.63

$

10.39

$

10.08

$

9.95

$

9.75

 
Return on average shareholders' equity (tangible)
Net income

$

59,779

$

56,663

$

58,083

$

65,633

$

35,197

Plus: Intangible amortization, net of tax

 

85

 

85

 

-

 

-

 

-

(Numerator)

$

59,864

$

56,748

$

58,083

$

65,633

$

35,197

 
Average shareholders' equity

$

2,301,258

$

2,265,097

$

2,281,669

$

2,269,093

$

2,246,904

Less: Average goodwill and intangible assets

 

(535,301)

 

(531,767)

 

(531,556)

 

(531,556)

 

(531,556)

Average tangible shareholders' equity (denominator)

$

1,765,957

$

1,733,330

$

1,750,113

$

1,737,537

$

1,715,348

 
Return on average shareholders' equity (tangible), annualized

 

13.60%

 

13.28%

 

13.17%

 

14.99%

 

8.23%

 
Tangible Common Equity to Tangible Assets (TCE Ratio)
Shareholders' equity

$

2,308,798

$

2,301,019

$

2,247,573

$

2,283,014

$

2,245,785

Less: Intangible assets

 

(535,249)

 

(535,356)

 

(531,556)

 

(531,556)

 

(531,556)

Tangible shareholders' equity (numerator)

$

1,773,549

$

1,765,663

$

1,716,017

$

1,751,458

$

1,714,229

 
Total assets

$

21,308,670

$

20,974,649

$

20,682,152

$

20,364,810

$

20,172,539

Less: Intangible assets

 

(535,249)

 

(535,356)

 

(531,556)

 

(531,556)

 

(531,556)

Total tangible assets (denominator)

$

20,773,421

$

20,439,293

$

20,150,596

$

19,833,254

$

19,640,983

 
Tangible Common Equity to Tangible Assets

 

8.54%

 

8.64%

 

8.52%

 

8.83%

 

8.73%

 
Efficiency ratio
Non-interest expense

$

144,168

$

137,824

$

140,685

$

135,413

$

133,345

Less: Intangible amortization

 

(107)

 

(107)

 

-

 

-

 

-

Less: Amortization of tax credit investments

 

(1,492)

 

(1,491)

 

(6,538)

 

(1,637)

 

(1,637)

Non-interest expense (numerator)

$

142,569

$

136,226

$

134,147

$

133,776

$

131,708

 
Net interest income (fully taxable equivalent)

$

167,796

$

166,564

$

166,123

$

163,194

$

159,027

Plus: Total Non-interest income

 

54,315

 

46,751

 

49,523

 

51,033

 

49,094

Less: Investment securities gains

 

(176)

 

(65)

 

-

 

(14)

 

(4)

Net interest income (denominator)

$

221,935

$

213,250

$

215,646

$

214,213

$

208,117

 
Efficiency ratio

 

64.2%

 

63.9%

 

62.2%

 

62.5%

 

63.3%

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

$

154,957

$

147,693

$

150,196

$

130,780

$

134,925

 
Tangible shareholders' equity

$

1,773,549

$

1,765,663

$

1,716,017

$

1,751,458

$

1,714,229

Plus: Allowance for credit losses

 

176,941

 

170,372

 

169,410

 

167,826

 

169,247

Tangible shareholders' equity and allowance for credit losses (denominator)

$

1,950,490

$

1,936,035

$

1,885,427

$

1,919,284

$

1,883,476

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

 

7.94%

 

7.63%

 

7.97%

 

6.81%

 

7.16%

 
Pre-provision net revenue
Net interest income

$

164,544

$

163,315

$

162,944

$

160,127

$

156,067

Non-interest income

 

54,315

 

46,751

 

49,523

 

51,033

 

49,094

Less: Investment securities gains

 

(176)

 

(65)

 

-

 

(14)

 

(4)

Total revenue

$

218,683

$

210,001

$

212,467

$

211,146

$

205,157

 
Non-interest expense

$

144,168

$

137,824

$

140,685

$

135,413

$

133,345

Less: Amortization of tax credit investments

 

(1,492)

 

(1,491)

 

(6,538)

 

(1,637)

 

(1,637)

Less: Intangible amortization

 

(107)

 

(107)

 

-

 

-

 

-

Total non-interest expense

$

142,569

$

136,226

$

134,147

$

133,776

$

131,708

 
Pre-provision net revenue

$

76,114

$

73,775

$

78,320

$

77,370

$

73,449

 

Contacts

Media Contact: Laura Wakeley (717) 291-2616

Investor Contact: Jason Weber (717) 327-2394

Contacts

Media Contact: Laura Wakeley (717) 291-2616

Investor Contact: Jason Weber (717) 327-2394