Fulton Financial Reports Fourth Quarter and 2019 Results

2019 Key Accomplishments

  • Termination of the remaining BSA/AML regulatory orders
  • Successful consolidation of affiliate banks into Fulton Bank, N.A.
  • Record year of revenues and net income
  • Average loan growth of 4% and average deposit growth of 6%
  • Net income grew 12% and pre-provision net revenue(1) increased 4%

LANCASTER, Pa.--()--Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income of $54 million, or $0.33 per diluted share, for the fourth quarter of 2019, and net income of $233 million, or $1.39 per diluted share, for 2019.

"Overall, 2019 was another good year for Fulton as we continued to execute on our growth strategies and completed the consolidation of our remaining affiliate banks into Fulton Bank,” said E. Philip Wenger, Chairman and CEO. “I’m extremely proud of our team’s hard work this year, and continued focus on driving shareholder value. We look forward to 2020 and believe we are well-positioned to continue to advance our strategic priorities.”

Net income per diluted share for the fourth quarter of 2019 decreased 11% to $0.33 in comparison to the $0.37 reported for the third quarter of 2019 and unchanged from the fourth quarter of 2018. The decline in net income from the third quarter of 2019 was primarily the result of a decrease in net interest income and an increase in the provision for credit losses, partially offset by a decrease in non-interest expense.

For the year ended December 31, 2019, net income per diluted share increased 18% to $1.39 in comparison to the $1.18 reported for 2018. The increase in net income was driven by a lower provision for credit losses and higher net interest income, non-interest income and securities gains, partially offset by higher non-interest expense.

 

(1)

 

Non-GAAP financial measure. Please refer to the calculation and management’s reasons for using this measure on the page titled “Non-GAAP Reconciliation” in the accompanying tables.

 

Net Interest Income and Balance Sheet

Net interest income for the fourth quarter of 2019 was $159 million, a $2 million decrease from the third quarter of 2019. The decrease resulted from the impact of a 9 basis point decrease in net interest margin due mainly to the 25 basis point decrease in the federal funds rate in each of September and October 2019, partially offset by balance sheet growth. The decline in net interest margin resulted from the net impact of an 18 basis point decrease in the yield on interest-earning assets, partially offset by an 11 basis point decrease in average cost of funds. The decline in asset yields was primarily the result of a 24 basis point decrease in loan yields, partially offset by an 8 basis point increase in investment securities yields.

For the year ended December 31, 2019, net interest income increased $18 million, or 3%, driven mainly by a 4% increase in average interest-earning assets. The increase in average interest-earning assets was partially offset by the impact of a 4 basis point decrease in the net interest margin to 3.36%. The average yield on interest-earning assets increased 18 basis points and the average cost of interest-bearing liabilities increased 28 basis points from 2018.

Total average assets for the fourth quarter of 2019 were $22 billion, an increase of $356 million from the third quarter of 2019, with average loans, net of unearned income, increasing $332 million.

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

 

Three Months Ended

Increase/(Decrease)

in balance

December 31, 2019

September 30, 2019

Balance

Yield (1)

Balance

Yield (1)

$

%

(dollars in thousands)
Average Loans and Lease, net of unearned income, by type:
Real estate - commercial mortgage

$

6,561,029

4.34

%

$

6,489,456

4.57

%

$

71,573

 

1.1

%

Commercial - industrial, financial and agricultural

 

4,575,350

4.24

%

 

4,414,992

4.56

%

 

160,358

 

3.6

%

Real estate - residential mortgage

 

2,606,136

4.00

%

 

2,512,899

4.06

%

 

93,237

 

3.7

%

Real estate - home equity

 

1,331,088

4.97

%

 

1,364,161

5.27

%

 

(33,073

)

(2.4

%)

Real estate - construction

 

934,556

4.37

%

 

905,060

4.68

%

 

29,496

 

3.3

%

Consumer

 

464,606

4.44

%

 

457,524

4.36

%

 

7,082

 

1.5

%

Equipment lease financing

 

281,451

4.35

%

 

277,555

4.41

%

 

3,896

 

1.4

%

Other

 

14,058

N/A

 

 

14,860

N/A

 

 

(802

)

(5.4

%)

 
Total Average Loans and leases, net of unearned income

$

16,768,274

4.31

%

$

16,436,507

4.55

%

$

331,767

 

2.0

%

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

For the year ended December 31, 2019, average loans increased $615 million, or 4%, compared to 2018. Ending loans at December 31, 2019 increased $171 million, or 1%, compared to September 30, 2019 and increased $692 million, or 4%, compared to December 31, 2018.

Total average liabilities for the fourth quarter of 2019 increased $329 million, or 2%, from the third quarter of 2019, with a $499 million, or 3%, increase in average deposits being partially offset by a $202 million, or 22%, decrease in average short-term borrowings.

Average deposits and interest rates, by type, for the fourth quarter of 2019 in comparison to the third quarter of 2019 are summarized in the following table:

 

Three Months Ended

 

Increase/(Decrease)

in balance

December 31, 2019

 

September 30, 2019

 

Balance

 

Rate

 

Balance

 

Rate

 

$

 

%

(dollars in thousands)

 

 

 

 

Average Deposits, by type:

Noninterest-bearing demand

$

4,324,568

-

%

$

4,247,820

-

%

$

76,748

 

1.8

%

Interest-bearing demand

 

4,699,040

0.71

%

 

4,448,112

0.82

%

 

250,928

 

5.6

%

Savings and money market deposits

 

5,205,260

0.78

%

 

5,026,316

0.87

%

 

178,944

 

3.6

%

Total average demand and savings

 

14,228,868

0.52

%

 

13,722,248

0.58

%

 

506,620

 

3.7

%

Brokered deposits

 

261,689

1.94

%

 

253,426

2.40

%

 

8,263

 

3.3

%

Time deposits

 

2,959,008

1.86

%

 

2,974,993

1.86

%

 

(15,985

)

(0.5

%)

 

Total Average Deposits

$

17,449,565

0.77

%

$

16,950,667

0.84

%

$

498,898

 

2.9

%

 

For the year ended December 31, 2019, average deposits increased $934 million, or 6%, compared to 2018. Ending deposits at December 31, 2019 increased $1 billion, or 6%, compared to December 31, 2018.

Asset Quality

The provision for credit losses for the fourth quarter of 2019 was $13 million, up from $2 million for the third quarter of 2019, driven primarily by a higher allocation need for a certain commercial loan.

Non-performing assets were $168 million, or 0.77% of total assets, at December 31, 2019, compared to $144 million, or 0.66% of total assets, at September 30, 2019 and $150 million, or 0.73% of total assets, at December 31, 2018.

Annualized net charge-offs for the quarter ended December 31, 2019 were 0.17% of total average loans, compared to 0.15% for the quarter ended September 30, 2019. The allowance for credit losses as a percentage of non-performing loans was 111% at December 31, 2019, compared to 127% at September 30, 2019.

Non-interest Income

Non-interest income in the fourth quarter of 2019, excluding investment securities gains, was $55 million, essentially unchanged from the third quarter of 2019 and $6 million, or 12%, higher than the fourth quarter of 2018.

Wealth management income increased due to growth in trust and brokerage income, both organically and, with respect to brokerage income, through the acquisitions completed in the first and fourth quarters of 2019. Mortgage banking income decreased due to seasonally lower loan volumes. Consumer banking income decreased, driven by decreases in card income. Commercial banking income increased, as higher commercial loan interest rate swap fees were partially offset by declines in merchant and card income.

During the third quarter of 2019, Fulton completed a balance sheet restructuring involving the sale of approximately $400 million of investment securities and a corresponding prepayment of FHLB advances. As a result of these transactions, $5 million of investment securities gains were realized during the quarter.

For the year ended December 31, 2019, non-interest income, excluding investment securities gains, increased $16 million, or 8%, with increases across all major categories.

Non-interest Expense

Non-interest expense was $140 million in the fourth quarter of 2019, a decrease of $7 million, or 5%, compared to the third quarter of 2019 and a decrease of $1 million, or 1%, compared to the fourth quarter of 2018.

The fourth quarter of 2019 included decreases in other outside services, marketing and intangible amortization, partially offset by increases in FDIC insurance expense, due to lower assessment credits, net occupancy expense and other expenses.

The third quarter of 2019 included $5 million of expenses related to the consolidation of the remaining subsidiary banks, primarily in other outside services. The third quarter also included $4 million of penalties related to the prepayment of certain FHLB advances in conjunction with the previously mentioned balance sheet restructuring.

For the year ended December 31, 2019, non-interest expense increased $23 million, or 4%, compared to 2018. This increase was primarily due to increases in salaries and employee benefits, other outside services and other expense, partially offset by decreases in amortization of tax credit investments and FDIC insurance expense.

Expenses incurred for the years ended December 31, 2019 and 2018 related to the consolidation of the subsidiary banks were $11 million and $4 million, respectively, which were recognized in various categories in non-interest expense.

Income Tax Expense

The effective income tax rate for the fourth quarter of 2019 was 13%, as compared to 14% for the third quarter of 2019, with the decrease resulting mainly from lower income before income taxes.

The effective income tax rate for the year ended December 31, 2019 was 14%, as compared to 11% in 2018. The increase resulted mainly from higher income before income taxes.

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

Safe Harbor Statement

This news release may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," “projects,” the negative of these terms and other comparable terminology. These forward looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, 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 Reports on Form 10-Q for the quarters ended March 31, 2019, June 30, 2019 and September 30, 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

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

2019

 

2019

 

2019

 

2019

 

2018

Ending Balances
Investments

$

2,867,378

$

2,705,610

$

2,853,358

$

2,748,249

$

2,686,973

Loans, net of unearned income

 

16,857,526

 

16,686,866

 

16,368,458

 

16,262,633

 

16,165,800

Total assets

 

21,897,062

 

21,703,618

 

21,308,670

 

20,974,649

 

20,682,152

Deposits

 

17,393,913

 

17,342,717

 

16,388,895

 

16,377,978

 

16,376,159

Shareholders' equity

 

2,348,474

 

2,324,016

 

2,308,798

 

2,301,019

 

2,247,573

 
Average Balances
Investments

$

2,830,999

$

2,829,672

$

2,790,392

$

2,699,130

$

2,646,266

Loans, net of unearned income

 

16,768,274

 

16,436,507

 

16,316,076

 

16,194,375

 

15,965,637

Total assets

 

21,813,760

 

21,457,800

 

21,057,030

 

20,690,365

 

20,512,130

Deposits

 

17,449,565

 

16,950,667

 

16,375,456

 

16,275,633

 

16,413,066

Shareholders' equity

 

2,342,571

 

2,315,585

 

2,301,258

 

2,265,097

 

2,281,669

 
Income Statement
Net interest income

$

159,270

$

161,260

$

164,544

$

163,315

$

162,944

Provision for credit losses

 

12,530

 

2,170

 

5,025

 

5,100

 

8,200

Non-interest income

 

55,281

 

59,813

 

54,315

 

46,751

 

49,523

Non-interest expense

 

139,874

 

146,770

 

144,168

 

137,824

 

140,685

Income before taxes

 

62,147

 

72,133

 

69,666

 

67,142

 

63,582

Net income

 

54,087

 

62,108

 

59,779

 

56,663

 

58,083

Pre-provision net revenue(1)

 

76,324

 

76,741

 

76,114

 

73,775

 

78,320

 
Per Share
Net income (basic)

$

0.33

$

0.38

$

0.36

$

0.33

$

0.33

Net income (diluted)

$

0.33

$

0.37

$

0.35

$

0.33

$

0.33

Cash dividends

$

0.17

$

0.13

$

0.13

$

0.13

$

0.16

Tangible common equity(1)

$

11.04

$

10.91

$

10.63

$

10.39

$

10.08

Weighted average shares (basic)

 

164,135

 

165,324

 

168,343

 

169,884

 

174,571

Weighted average shares (diluted)

 

165,039

 

166,126

 

169,168

 

170,909

 

175,473

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

 

0.17%

 

0.15%

 

-0.04%

 

0.10%

 

0.17%

Non-performing loans to total loans

 

0.96%

 

0.81%

 

0.90%

 

0.85%

 

0.86%

Non-performing assets to total assets

 

0.77%

 

0.66%

 

0.73%

 

0.70%

 

0.73%

Allowance for credit losses to loans outstanding

 

1.06%

 

1.04%

 

1.08%

 

1.05%

 

1.05%

Allowance for loan losses to loans outstanding

 

1.04%

 

1.00%

 

1.04%

 

1.00%

 

0.99%

Allowance for credit losses to non-performing loans

 

111%

 

127%

 

120%

 

123%

 

121%

Allowance for loan losses to non-performing loans

 

109%

 

122%

 

115%

 

117%

 

115%

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

 

8.44%

 

7.32%

 

7.94%

 

7.63%

 

7.97%

 
 
Profitability
Return on average assets

 

0.98%

 

1.15%

 

1.14%

 

1.11%

 

1.12%

Return on average shareholders' equity

 

9.16%

 

10.64%

 

10.42%

 

10.15%

 

10.10%

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

 

11.89%

 

14.03%

 

13.60%

 

13.28%

 

13.17%

Net interest margin

 

3.22%

 

3.31%

 

3.44%

 

3.49%

 

3.44%

Efficiency ratio(1)

 

63.5%

 

63.6%

 

64.2%

 

63.9%

 

62.2%

 
Capital Ratios
Tangible common equity ratio(1)

 

8.49%

 

8.45%

 

8.54%

 

8.64%

 

8.52%

Tier 1 leverage ratio(2)

 

8.47%

 

8.52%

 

8.68%

 

8.92%

 

9.01%

Common equity Tier 1 capital ratio(2)

 

9.67%

 

9.64%

 

9.96%

 

10.16%

 

10.22%

Tier 1 capital ratio(2)

 

9.67%

 

9.64%

 

9.96%

 

10.16%

 

10.22%

Total risk-based capital ratio(2)

 

11.79%

 

12.01%

 

12.44%

 

12.63%

 

12.75%

 
 
(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 December 31, 2019 are preliminary and prior periods are actual.
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands

 

 

 

 

 

 

 

 

 

 

% Change from

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Dec 31

2019

 

2019

 

2019

 

2019

 

2018

 

2019

 

2018

 
ASSETS
 
Cash and due from banks

$

132,283

 

$

120,671

 

$

107,091

 

$

115,884

 

$

103,436

 

9.6

%

27.9

%

Other interest-earning assets

 

482,930

 

 

572,499

 

 

488,968

 

 

411,037

 

 

421,534

 

(15.6

%)

14.6

%

Loans held for sale

 

37,828

 

 

33,945

 

 

45,754

 

 

27,768

 

 

27,099

 

11.4

%

39.6

%

Investment securities

 

2,867,378

 

 

2,705,610

 

 

2,853,358

 

 

2,748,249

 

 

2,686,973

 

6.0

%

6.7

%

Loans, net of unearned income

 

16,857,526

 

 

16,686,866

 

 

16,368,458

 

 

16,262,633

 

 

16,165,800

 

1.0

%

4.3

%

Allowance for loan losses

 

(175,622

)

 

(166,135

)

 

(170,233

)

 

(162,109

)

 

(160,537

)

5.7

%

9.4

%

Net loans

 

16,681,904

 

 

16,520,731

 

 

16,198,225

 

 

16,100,524

 

 

16,005,263

 

1.0

%

4.2

%

Premises and equipment

 

240,046

 

 

237,344

 

 

243,300

 

 

239,004

 

 

234,529

 

1.1

%

2.4

%

Accrued interest receivable

 

60,898

 

 

60,447

 

 

62,984

 

 

62,207

 

 

58,879

 

0.7

%

3.4

%

Goodwill and intangible assets

 

535,303

 

 

534,178

 

 

535,249

 

 

535,356

 

 

531,556

 

0.2

%

0.7

%

Other assets

 

858,492

 

 

918,193

 

 

773,741

 

 

734,620

 

 

612,883

 

(6.5

%)

40.1

%

 
Total Assets

$

21,897,062

 

$

21,703,618

 

$

21,308,670

 

$

20,974,649

 

$

20,682,152

 

0.9

%

5.9

%

 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Deposits

$

17,393,913

 

$

17,342,717

 

$

16,388,895

 

$

16,377,978

 

$

16,376,159

 

0.3

%

6.2

%

Short-term borrowings

 

883,241

 

 

832,860

 

 

1,188,390

 

 

829,016

 

 

754,777

 

6.0

%

17.0

%

Other liabilities

 

389,665

 

 

477,311

 

 

435,171

 

 

401,324

 

 

311,364

 

(18.4

%)

25.1

%

FHLB advances and long-term debt

 

881,769

 

 

726,714

 

 

987,416

 

 

1,065,312

 

 

992,279

 

21.3

%

(11.1

%)

 
Total Liabilities

 

19,548,588

 

 

19,379,602

 

 

18,999,872

 

 

18,673,630

 

 

18,434,579

 

0.9

%

6.0

%

 
Shareholders' equity

 

2,348,474

 

 

2,324,016

 

 

2,308,798

 

 

2,301,019

 

 

2,247,573

 

1.1

%

4.5

%

 
Total Liabilities and Shareholders' Equity

$

21,897,062

 

$

21,703,618

 

$

21,308,670

 

$

20,974,649

 

$

20,682,152

 

0.9

%

5.9

%

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

$

6,700,776

 

$

6,604,634

 

$

6,497,973

 

$

6,428,688

 

$

6,434,285

 

1.5

%

4.1

%

Commercial - industrial, financial and agricultural

 

4,466,701

 

 

4,494,496

 

 

4,365,248

 

 

4,429,538

 

 

4,404,548

 

(0.6

%)

1.4

%

Real estate - residential mortgage

 

2,641,465

 

 

2,570,793

 

 

2,451,966

 

 

2,313,908

 

 

2,251,044

 

2.7

%

17.3

%

Real estate - home equity

 

1,314,944

 

 

1,346,115

 

 

1,386,974

 

 

1,413,500

 

 

1,452,137

 

(2.3

%)

(9.4

%)

Real estate - construction

 

971,079

 

 

913,644

 

 

922,547

 

 

953,087

 

 

916,599

 

6.3

%

5.9

%

Consumer

 

463,164

 

 

464,213

 

 

452,874

 

 

433,545

 

 

419,186

 

(0.2

%)

10.5

%

Leasing and other

 

299,397

 

 

292,971

 

 

290,876

 

 

290,367

 

 

288,001

 

2.2

%

4.0

%

 
Total Loans, net of unearned income

$

16,857,526

 

$

16,686,866

 

$

16,368,458

 

$

16,262,633

 

$

16,165,800

 

1.0

%

4.3

%

 
Deposits, by type:
Noninterest-bearing demand

$

4,453,324

 

$

4,240,478

 

$

4,226,404

 

$

4,255,043

 

$

4,310,105

 

5.0

%

3.3

%

Interest-bearing demand

 

4,720,188

 

 

4,771,109

 

 

4,083,615

 

 

4,207,442

 

 

4,240,974

 

(1.1

%)

11.3

%

Savings and money market accounts

 

5,153,941

 

 

5,094,387

 

 

4,938,998

 

 

4,907,346

 

 

4,926,937

 

1.2

%

4.6

%

Total demand and savings

 

14,327,453

 

 

14,105,974

 

 

13,249,017

 

 

13,369,831

 

 

13,478,016

 

1.6

%

6.3

%

Brokered deposits

 

264,531

 

 

256,870

 

 

246,116

 

 

251,395

 

 

176,239

 

3.0

%

50.1

%

Time deposits

 

2,801,929

 

 

2,979,873

 

 

2,893,762

 

 

2,756,752

 

 

2,721,904

 

(6.0

%)

2.9

%

 
Total Deposits

$

17,393,913

 

$

17,342,717

 

$

16,388,895

 

$

16,377,978

 

$

16,376,159

 

0.3

%

6.2

%

 
Short-term borrowings, by type:
Customer repurchase agreements

$

56,707

 

$

58,853

 

$

56,496

 

$

54,440

 

$

43,499

 

(3.6

%)

30.4

%

Customer short-term promissory notes

 

326,534

 

 

279,007

 

 

281,894

 

 

299,576

 

 

326,278

 

17.0

%

0.1

%

Short-term FHLB advances

 

500,000

 

 

475,000

 

 

650,000

 

 

475,000

 

 

385,000

 

5.3

%

29.9

%

Federal funds purchased

 

-

 

 

20,000

 

 

200,000

 

 

-

 

 

-

 

(100.0

%)

N/M

 

 
Total Short-term Borrowings

$

883,241

 

$

832,860

 

$

1,188,390

 

$

829,016

 

$

754,777

 

6.0

%

17.0

%

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

Three Months Ended

 

% Change from

 

 

 

 

 

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Dec 31

 

 

 

Year Ended Dec 31

 

 

2019

 

2019

 

2019

 

2019

 

2018

 

2019

 

2018

 

 

 

2019

 

2018

 

% Change

 
Interest Income:
Interest income

$

202,159

$

208,414

$

210,034

$

204,700

$

200,609

(3.0

%)

0.8

%

$

825,306

$

758,514

8.8

%

Interest expense

 

42,889

 

47,153

 

45,490

 

41,385

 

37,665

(9.0

%)

13.9

%

 

176,917

 

128,058

38.2

%

Net Interest Income

 

159,270

 

161,260

 

164,544

 

163,315

 

162,944

(1.2

%)

(2.3

%)

 

648,389

 

630,456

2.8

%

Provision for credit losses

 

12,530

 

2,170

 

5,025

 

5,100

 

8,200

N/M

 

52.8

%

 

24,825

 

46,907

(47.1

%)

Net Interest Income after Provision

 

146,740

 

159,090

 

159,519

 

158,215

 

154,744

(7.8

%)

(5.2

%)

 

623,564

 

583,549

6.9

%

 
Non-Interest Income:
Wealth management

 

14,419

 

13,867

 

14,153

 

13,239

 

13,408

4.0

%

7.5

%

 

55,678

 

52,148

6.8

%

Mortgage banking

 

5,076

 

6,658

 

6,593

 

4,772

 

4,774

(23.8

%)

6.3

%

 

23,099

 

19,026

21.4

%

Consumer banking:
Card

 

4,991

 

5,791

 

5,047

 

4,686

 

4,966

(13.8

%)

0.5

%

 

20,515

 

19,497

5.2

%

Overdraft

 

4,750

 

4,682

 

4,413

 

4,104

 

4,653

1.5

%

2.1

%

 

17,949

 

17,606

2.0

%

Other consumer banking

 

2,685

 

2,860

 

2,907

 

2,587

 

2,799

(6.1

%)

(4.1

%)

 

11,039

 

11,319

(2.5

%)

Total consumer banking

 

12,426

 

13,333

 

12,367

 

11,377

 

12,418

(6.8

%)

0.1

%

 

49,503

 

48,422

2.2

%

Commercial banking:
Merchant and card

 

5,841

 

6,166

 

6,512

 

5,558

 

5,656

(5.3

%)

3.3

%

 

24,077

 

23,427

2.8

%

Cash management

 

4,697

 

4,696

 

4,638

 

4,361

 

4,340

0.0

%

8.2

%

 

18,392

 

17,581

4.6

%

Commercial loan interest rate swap

 

5,426

 

3,944

 

3,477

 

2,028

 

2,540

37.6

%

113.6

%

 

14,875

 

9,831

51.3

%

Other commercial banking

 

3,664

 

3,478

 

3,815

 

2,816

 

3,466

5.3

%

5.7

%

 

13,773

 

13,090

5.2

%

Total commercial banking

 

19,628

 

18,284

 

18,442

 

14,763

 

16,002

7.4

%

22.7

%

 

71,117

 

63,929

11.2

%

Other

 

3,732

 

3,179

 

2,584

 

2,535

 

2,921

17.4

%

27.8

%

 

12,030

 

11,963

0.6

%

Non-Interest Income before Investment Securities Gains

 

55,281

 

55,321

 

54,139

 

46,686

 

49,523

(0.1

%)

11.6

%

 

211,427

 

195,488

8.2

%

Investment securities gains, net

 

-

 

4,492

 

176

 

65

 

-

(100.0

%)

-

 

 

4,733

 

37

N/M

 

Total Non-Interest Income

 

55,281

 

59,813

 

54,315

 

46,751

 

49,523

(7.6

%)

11.6

%

 

216,160

 

195,525

10.6

%

 
Non-Interest Expense:
Salaries and employee benefits

 

77,875

 

78,211

 

78,991

 

77,757

 

75,745

(0.4

%)

2.8

%

 

312,834

 

303,202

3.2

%

Net occupancy

 

13,080

 

12,368

 

14,469

 

12,909

 

12,708

5.8

%

2.9

%

 

52,826

 

51,678

2.2

%

Data processing and software

 

11,468

 

11,590

 

11,268

 

10,353

 

10,203

(1.1

%)

12.4

%

 

44,679

 

41,286

8.2

%

Other outside services

 

8,215

 

12,163

 

11,259

 

8,352

 

8,944

(32.5

%)

(8.2

%)

 

39,989

 

33,758

18.5

%

Equipment

 

3,475

 

3,459

 

3,299

 

3,342

 

3,275

0.5

%

6.1

%

 

13,575

 

13,243

2.5

%

Professional fees

 

2,873

 

3,331

 

2,970

 

3,960

 

3,546

(13.7

%)

(19.0

%)

 

13,134

 

14,161

(7.3

%)

FDIC insurance

 

2,177

 

239

 

2,755

 

2,609

 

2,563

N/M

 

(15.1

%)

 

7,780

 

10,993

(29.2

%)

Amortization of tax credit investments

 

1,505

 

1,533

 

1,492

 

1,491

 

6,538

(1.8

%)

(77.0

%)

 

6,021

 

11,449

(47.4

%)

Marketing

 

1,503

 

3,322

 

2,863

 

2,160

 

1,577

(54.8

%)

(4.7

%)

 

9,848

 

8,854

11.2

%

Intangible amortization

 

142

 

1,071

 

107

 

107

 

-

N/M

 

100.0

%

 

1,427

 

-

100.0

%

Prepayment penalty on FHLB advances

 

-

 

4,326

 

-

 

-

 

-

(100.0

%)

-

 

 

4,326

 

-

100.0

%

Other

 

17,561

 

15,157

 

14,695

 

14,784

 

15,586

15.9

%

12.7

%

 

62,197

 

57,480

8.2

%

Total Non-Interest Expense

 

139,874

 

146,770

 

144,168

 

137,824

 

140,685

(4.7

%)

(0.6

%)

 

568,636

 

546,104

4.1

%

Income before Income Taxes

 

62,147

 

72,133

 

69,666

 

67,142

 

63,582

(13.8

%)

(2.3

%)

 

271,088

 

232,970

16.4

%

Income tax expense

 

8,060

 

10,025

 

9,887

 

10,479

 

5,499

(19.6

%)

46.6

%

 

38,451

 

24,577

56.5

%

Net Income

$

54,087

$

62,108

$

59,779

$

56,663

$

58,083

(12.9

%)

(6.9

%)

$

232,637

$

208,393

11.6

%

 
PER SHARE:
 
Net income:
Basic

$

0.33

$

0.38

$

0.36

$

0.33

$

0.33

(13.2

%)

-

 

$

1.39

$

1.19

16.8

%

Diluted

 

0.33

 

0.37

 

0.35

 

0.33

 

0.33

(10.8

%)

-

 

 

1.39

 

1.18

17.8

%

Cash dividends

 

0.17

 

0.13

 

0.13

 

0.13

 

0.16

30.8

%

6.3

%

 

0.56

 

0.52

7.7

%

 
Weighted average shares (basic)

 

164,135

 

165,324

 

168,343

 

169,884

 

174,571

(0.7

%)

(6.0

%)

 

166,902

 

175,395

(4.8

%)

Weighted average shares (diluted)

 

165,039

 

166,126

 

169,168

 

170,909

 

175,473

(0.7

%)

(5.9

%)

 

167,792

 

176,543

(5.0

%)

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

Three Months Ended

December 31, 2019

 

September 30, 2019

 

December 31, 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

$

16,768,274

 

$

182,024

 

 

4.31

%

$

16,436,507

 

$

188,280

 

4.55

%

$

15,965,637

 

$

182,358

 

4.54

%

 
Taxable investment securities

 

2,198,252

 

 

15,621

 

 

2.84

%

 

2,282,292

 

 

15,565

 

2.73

%

 

2,283,897

 

 

15,005

 

2.74

%

Tax-exempt investment securities

 

594,487

 

 

5,058

 

 

3.38

%

 

516,907

 

 

4,650

 

3.57

%

 

426,872

 

 

3,978

 

3.71

%

 
Total Investment Securities

 

2,792,739

 

 

20,679

 

 

2.96

%

 

2,799,199

 

 

20,215

 

2.88

%

 

2,710,769

 

 

18,983

 

2.80

%

 
Loans held for sale

 

30,062

 

 

295

 

 

3.93

%

 

31,898

 

 

466

 

5.83

%

 

22,361

 

 

271

 

4.85

%

Other interest-earning assets

 

492,560

 

 

2,370

 

 

1.92

%

 

509,579

 

 

2,709

 

2.12

%

 

492,529

 

 

2,177

 

1.76

%

 
Total Interest-earning Assets

 

20,083,635

 

 

205,368

 

 

4.07

%

 

19,777,183

 

 

211,670

 

4.25

%

 

19,191,296

 

 

203,789

 

4.22

%

 
Noninterest-earning assets:
Cash and due from banks

 

128,417

 

 

120,967

 

 

111,252

 

Premises and equipment

 

239,294

 

 

240,383

 

 

233,445

 

Other assets

 

1,529,994

 

 

1,491,115

 

 

1,131,548

 

Less: allowance for loan losses

 

(167,580

)

 

(171,848

)

 

(155,411

)

 
Total Assets

$

21,813,760

 

$

21,457,800

 

$

20,512,130

 

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

$

4,699,040

 

$

8,494

 

 

0.72

%

$

4,448,112

 

$

9,163

 

0.82

%

$

4,225,157

 

$

7,448

 

0.70

%

Savings deposits

 

5,205,260

 

 

10,253

 

 

0.78

%

 

5,026,316

 

 

11,059

 

0.87

%

 

4,979,712

 

 

9,745

 

0.78

%

Brokered deposits

 

261,689

 

 

1,279

 

 

1.94

%

 

253,426

 

 

1,536

 

2.40

%

 

164,280

 

 

969

 

2.34

%

Time deposits

 

2,959,008

 

 

13,775

 

 

1.86

%

 

2,974,993

 

 

13,979

 

1.86

%

 

2,722,141

 

 

9,997

 

1.46

%

 
Total Interest-bearing Deposits

 

13,124,997

 

 

33,801

 

 

1.02

%

 

12,702,847

 

 

35,737

 

1.12

%

 

12,091,290

 

 

28,159

 

0.92

%

 
Short-term borrowings

 

717,811

 

 

2,343

 

 

1.29

%

 

919,697

 

 

4,156

 

1.78

%

 

504,550

 

 

1,410

 

1.11

%

FHLB advances and long-term debt

 

875,802

 

 

6,745

 

 

3.07

%

 

842,706

 

 

7,260

 

3.44

%

 

988,914

 

 

8,096

 

3.26

%

 
Total Interest-bearing Liabilities

 

14,718,610

 

 

42,889

 

 

1.16

%

 

14,465,250

 

 

47,153

 

1.29

%

 

13,584,754

 

 

37,665

 

1.10

%

 
Noninterest-bearing liabilities:
Demand deposits

 

4,324,568

 

 

4,247,820

 

 

4,321,776

 

Total Deposits

 

17,449,565

 

 

16,950,667

 

 

16,413,066

 

 
Other

 

428,011

 

 

429,145

 

 

323,931

 

 
Total Liabilities

 

19,471,189

 

 

19,142,215

 

 

18,230,461

 

Total Interest-bearing liabilities and non interest-bearing deposits ("Cost of Funds")

 

19,043,178

 

 

0.89

%

 

18,713,070

 

1.00

%

 

17,906,530

 

0.84

%

 
Shareholders' equity

 

2,342,571

 

 

2,315,585

 

 

2,281,669

 

 
Total Liabilities and Shareholders' Equity

$

21,813,760

 

$

21,457,800

 

$

20,512,130

 

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

 

162,479

 

 

3.22

%

 

164,517

 

3.31

%

 

166,124

 

3.44

%

Tax equivalent adjustment

 

(3,209

)

 

(3,257

)

 

(3,180

)

 
Net interest income

$

159,270

 

$

161,260

 

$

162,944

 

 
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
 
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
 

Three Months Ended

 

% Change from

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Dec 31

2019

 

2019

 

2019

 

2019

 

2018

 

2019

 

2018

 
Loans, by type:
Real estate - commercial mortgage

$

6,561,029

 

$

6,489,456

 

$

6,424,213

 

$

6,378,145

 

$

6,343,024

 

1.1

%

 

3.4

%

Commercial - industrial, financial and agricultural

 

4,575,350

 

 

4,414,992

 

 

4,440,860

 

 

4,462,609

 

 

4,329,937

 

3.6

%

 

5.7

%

Real estate - residential mortgage

 

2,606,136

 

 

2,512,899

 

 

2,366,685

 

 

2,276,611

 

 

2,209,993

 

3.7

%

 

17.9

%

Real estate - home equity

 

1,331,088

 

 

1,364,161

 

 

1,404,141

 

 

1,433,574

 

 

1,459,647

 

(2.4

%)

 

(8.8

%)

Real estate - construction

 

934,556

 

 

905,060

 

 

943,080

 

 

930,246

 

 

931,724

 

3.3

%

 

0.3

%

Consumer

 

464,606

 

 

457,524

 

 

445,666

 

 

424,480

 

 

406,436

 

1.5

%

 

14.3

%

Leasing and other

 

295,509

 

 

292,415

 

 

291,431

 

 

288,710

 

 

284,876

 

1.1

%

 

3.7

%

 
Total Loans, net of unearned income

$

16,768,274

 

$

16,436,507

 

$

16,316,076

 

$

16,194,375

 

$

15,965,637

 

2.0

%

 

5.0

%

 
Deposits, by type:
Noninterest-bearing demand

$

4,324,568

 

$

4,247,820

 

$

4,200,810

 

$

4,222,875

 

$

4,321,776

 

1.8

%

 

0.1

%

Interest-bearing demand

 

4,699,040

 

 

4,448,112

 

 

4,186,280

 

 

4,153,984

 

 

4,225,157

 

5.6

%

 

11.2

%

Savings and money market accounts

 

5,205,260

 

 

5,026,316

 

 

4,925,788

 

 

4,912,856

 

 

4,979,712

 

3.6

%

 

4.5

%

Total demand and savings

 

14,228,868

 

 

13,722,248

 

 

13,312,878

 

 

13,289,715

 

 

13,526,645

 

3.7

%

 

5.2

%

Brokered deposits

 

261,689

 

 

253,426

 

 

246,154

 

 

220,115

 

 

164,280

 

3.3

%

 

59.3

%

Time deposits

 

2,959,008

 

 

2,974,993

 

 

2,816,425

 

 

2,765,803

 

 

2,722,141

 

(0.5

%)

 

8.7

%

 
Total Deposits

$

17,449,565

 

$

16,950,667

 

$

16,375,457

 

$

16,275,633

 

$

16,413,066

 

2.9

%

 

6.3

%

 
Short-term borrowings, by type:
Customer repurchase agreements

$

59,363

 

$

61,230

 

$

56,171

 

$

56,707

 

$

64,102

 

(3.0

%)

 

(7.4

%)

Customer short-term promissory notes

 

318,166

 

 

271,663

 

 

288,696

 

 

312,092

 

 

310,296

 

17.1

%

 

2.5

%

Federal funds purchased

 

91,467

 

 

101,022

 

 

181,769

 

 

157,122

 

 

43

 

(9.5

%)

 

N/M

 

Short-term FHLB advances and other borrowings

 

248,815

 

 

485,782

 

 

414,868

 

 

294,133

 

 

130,109

 

(48.8

%)

 

91.2

%

 
Total Short-term Borrowings

$

717,811

 

$

919,697

 

$

941,504

 

$

820,054

 

$

504,550

 

(22.0

%)

 

42.3

%

 
N/M - Not meaningful

 

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands

Year Ended December 31

2019

 

2018

Average

 

 

 

 

 

Average

 

 

 

 

Balance

 

Interest (1)

 

Yield/Rate

 

Balance

 

Interest (1)

 

Yield/Rate

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

$

16,430,402

 

$

747,119

 

4.55

%

$

15,815,263

 

$

691,954

 

4.38

%

Taxable investment securities

 

2,278,448

 

 

62,556

 

2.74

%

 

2,246,555

 

 

56,039

 

2.49

%

Tax-exempt investment securities

 

500,398

 

 

17,998

 

3.57

%

 

416,119

 

 

15,285

 

3.65

%

Equity securities

 

-

 

 

-

 

-

 

 

126

 

 

5

 

3.97

%

 
Total Investment Securities

 

2,778,846

 

 

80,554

 

2.89

%

 

2,662,800

 

 

71,329

 

2.68

%

 
Loans held for sale

 

25,795

 

 

1,351

 

5.24

%

 

22,970

 

 

1,159

 

5.05

%

Other interest-earning assets

 

445,008

 

 

9,249

 

2.08

%

 

382,569

 

 

6,193

 

1.62

%

 
Total Interest-earning Assets

 

19,680,051

 

 

838,273

 

4.26

%

 

18,883,602

 

 

770,635

 

4.08

%

 
Noninterest-earning assets:
Cash and due from banks

 

119,144

 

 

104,595

 

Premises and equipment

 

239,376

 

 

231,762

 

Other assets

 

1,386,000

 

 

1,123,857

 

Less: allowance for loan losses

 

(166,198

)

 

(160,614

)

 
Total Assets

$

21,258,373

 

$

20,183,202

 

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

$

4,384,059

 

$

33,348

 

0.76

%

$

4,063,929

 

$

22,789

 

0.56

%

Savings deposits

 

5,018,381

 

 

41,823

 

0.83

%

 

4,684,023

 

 

27,226

 

0.58

%

Brokered deposits

 

245,483

 

 

5,779

 

2.35

%

 

121,863

 

 

2,480

 

2.04

%

Time deposits

 

2,869,344

 

 

50,825

 

1.77

%

 

2,675,670

 

 

35,217

 

1.32

%

 
Total Interest-bearing Deposits

 

12,517,267

 

 

131,775

 

1.05

%

 

11,545,485

 

 

87,712

 

0.76

%

 
Short-term borrowings

 

849,679

 

 

14,543

 

1.70

%

 

785,923

 

 

8,489

 

1.07

%

FHLB advances and long-term debt

 

942,600

 

 

30,599

 

3.25

%

 

977,573

 

 

31,857

 

3.26

%

 
Total Interest-bearing Liabilities

 

14,309,546

 

 

176,917

 

1.24

%

 

13,308,981

 

 

128,058

 

0.96

%

 
Noninterest-bearing liabilities:
Demand deposits

 

4,249,294

 

 

4,287,121

 

Total Deposits

 

16,766,561

 

 

15,832,606

 

 
Other

 

393,167

 

 

331,336

 

 
Total Liabilities

 

18,952,007

 

 

17,927,438

 

Total Interest-bearing liabilities and non interest-bearing deposits ("Cost of Funds")

 

18,558,840

 

0.95

%

 

17,596,102

 

0.73

%

 
 
Shareholders' equity

 

2,306,366

 

 

2,255,764

 

 
Total Liabilities and Shareholders' Equity

$

21,258,373

 

$

20,183,202

 

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

 

661,356

 

3.36

%

 

642,577

 

3.40

%

Tax equivalent adjustment

 

(12,967

)

 

(12,121

)

 
Net interest income

$

648,389

 

$

630,456

 

 
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
 
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
 

Year Ended

 

 

December 31

 

 

2019

 

2018

 

% Change

 
Loans, by type:
Real estate - commercial mortgage

$

6,463,783

 

$

6,314,349

 

2.4

%

Commercial - industrial, financial and agricultural

 

4,473,604

 

 

4,314,584

 

3.7

%

Real estate - residential mortgage

 

2,441,684

 

 

2,085,258

 

17.1

%

Real estate - home equity

 

1,382,908

 

 

1,493,620

 

(7.4

%)

Real estate - construction

 

928,183

 

 

965,835

 

(3.9

%)

Consumer

 

448,205

 

 

361,186

 

24.1

%

Leasing and other

 

292,035

 

 

280,431

 

4.1

%

 
Total Loans, net of unearned income

$

16,430,402

 

$

15,815,263

 

3.9

%

 
Deposits, by type:
Noninterest-bearing demand

$

4,249,294

 

$

4,287,121

 

(0.9

%)

Interest-bearing demand

 

4,384,059

 

 

4,063,929

 

7.9

%

Savings and money market accounts

 

5,018,381

 

 

4,684,023

 

7.1

%

Total demand and savings

 

13,651,734

 

 

13,035,073

 

4.7

%

Brokered deposits

 

245,483

 

 

121,863

 

101.4

%

Time deposits

 

2,869,344

 

 

2,675,670

 

7.2

%

 
Total Deposits

$

16,766,561

 

$

15,832,606

 

5.9

%

 
Short-term borrowings, by type:
Customer repurchase agreements

$

58,384

 

$

137,198

 

(57.4

%)

Customer short-term promissory notes

 

297,599

 

 

308,470

 

(3.5

%)

Federal funds purchased

 

132,578

 

 

229,715

 

(42.3

%)

Short-term FHLB advances and other borrowings

 

361,118

 

 

110,540

 

N/M

 
Total Short-term Borrowings

$

849,679

 

$

785,923

 

8.1

%

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

Three Months Ended

 

Year Ended

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Dec 31

 

Dec 31

2019

 

2019

 

2019

 

2019

 

2018

 

2019

 

2018

ALLOWANCE FOR CREDIT LOSSES:
 
Balance at beginning of period

$

172,797

 

$

176,941

 

$

170,372

 

$

169,410

 

$

167,826

 

$

169,410

 

$

176,084

 

 
Loans charged off:
Commercial - industrial, financial and agricultural

 

(10,547

)

 

(7,181

)

 

(1,895

)

 

(2,787

)

 

(6,263

)

 

(22,410

)

 

(52,441

)

Real estate - commercial mortgage

 

(68

)

 

(394

)

 

(230

)

 

(1,145

)

 

(762

)

 

(1,837

)

 

(2,045

)

Consumer and home equity

 

(1,416

)

 

(1,375

)

 

(1,001

)

 

(902

)

 

(1,884

)

 

(4,694

)

 

(6,127

)

Real estate - residential mortgage

 

(223

)

 

(533

)

 

(134

)

 

(655

)

 

(446

)

 

(1,545

)

 

(1,574

)

Real estate - construction

 

0

 

 

(45

)

 

(3

)

 

(95

)

 

(392

)

 

(143

)

 

(1,368

)

Leasing and other

 

(727

)

 

(600

)

 

(448

)

 

(785

)

 

(889

)

 

(2,560

)

 

(2,521

)

Total loans charged off

 

(12,981

)

 

(10,128

)

 

(3,711

)

 

(6,369

)

 

(10,636

)

 

(33,189

)

 

(66,076

)

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

 

2,487

 

 

2,311

 

 

2,680

 

 

1,243

 

 

2,647

 

 

8,721

 

 

4,994

 

Real estate - commercial mortgage

 

1,453

 

 

444

 

 

169

 

 

136

 

 

94

 

 

2,202

 

 

1,622

 

Consumer and home equity

 

437

 

 

348

 

 

802

 

 

407

 

 

684

 

 

1,994

 

 

2,393

 

Real estate - residential mortgage

 

206

 

 

440

 

 

211

 

 

132

 

 

100

 

 

989

 

 

620

 

Real estate - construction

 

1,098

 

 

164

 

 

1,245

 

 

84

 

 

415

 

 

2,591

 

 

1,829

 

Leasing and other

 

182

 

 

107

 

 

148

 

 

229

 

 

80

 

 

666

 

 

1,037

 

Recoveries of loans previously charged off

 

5,863

 

 

3,814

 

 

5,255

 

 

2,231

 

 

4,020

 

 

17,163

 

 

12,495

 

Net loans charged off (recoveries)

 

(7,118

)

 

(6,314

)

 

1,544

 

 

(4,138

)

 

(6,616

)

 

(16,026

)

 

(53,581

)

Provision for credit losses

 

12,530

 

 

2,170

 

 

5,025

 

 

5,100

 

 

8,200

 

 

24,825

 

 

46,907

 

 
Balance at end of period

$

178,209

 

$

172,797

 

$

176,941

 

$

170,372

 

$

169,410

 

$

178,209

 

$

169,410

 

 
Net charge-offs to average loans (annualized)

 

0.17

%

 

0.15

%

 

(0.04

%)

 

0.10

%

 

0.17

%

 

0.10

%

 

0.34

%

 

NON-PERFORMING ASSETS:

 
Non-accrual loans

$

145,098

 

$

124,287

 

$

133,118

 

$

127,141

 

$

128,572

 

Loans 90 days past due and accruing

 

16,057

 

 

11,689

 

 

14,598

 

 

11,540

 

 

11,106

 

Total non-performing loans

 

161,155

 

 

135,976

 

 

147,716

 

 

138,681

 

 

139,678

 

Other real estate owned

 

6,831

 

 

7,706

 

 

7,241

 

 

9,012

 

 

10,518

 

 
Total non-performing assets

$

167,986

 

$

143,682

 

$

154,957

 

$

147,693

 

$

150,196

 

 

NON-PERFORMING LOANS, BY TYPE:

 
Commercial - industrial, financial and agricultural

$

69,491

 

$

37,126

 

$

47,260

 

$

50,148

 

$

51,269

 

Real estate - commercial mortgage

 

37,279

 

 

45,710

 

 

43,850

 

 

29,817

 

 

32,153

 

Real estate - residential mortgage

 

22,411

 

 

20,150

 

 

21,659

 

 

22,299

 

 

19,101

 

Consumer and home equity

 

11,026

 

 

11,012

 

 

12,378

 

 

10,770

 

 

10,178

 

Real estate - construction

 

4,306

 

 

4,312

 

 

4,632

 

 

7,039

 

 

7,390

 

Leasing

 

16,642

 

 

17,666

 

 

17,937

 

 

18,608

 

 

19,587

 

 
Total non-performing loans

$

161,155

 

$

135,976

 

$

147,716

 

$

138,681

 

$

139,678

 

 
 
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

 

Year Ended

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Dec 31

 

Dec 31

 

Dec 31

2019

 

2019

 

2019

 

2019

 

2018

 

2019

 

2018

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

$

2,348,474

 

$

2,324,016

 

$

2,308,798

 

$

2,301,019

 

$

2,247,573

 

Less: Goodwill and intangible assets

 

(535,303

)

 

(534,178

)

 

(535,249

)

 

(535,356

)

 

(531,556

)

Tangible shareholders' equity (numerator)

$

1,813,171

 

$

1,789,838

 

$

1,773,549

 

$

1,765,663

 

$

1,716,017

 

 
Shares outstanding, end of period (denominator)

 

164,218

 

 

164,036

 

 

166,903

 

 

169,923

 

 

170,184

 

 
Shareholders' equity (tangible), per share

$

11.04

 

$

10.91

 

$

10.63

 

$

10.39

 

$

10.08

 

 
Return on average shareholders' equity (tangible)
Net income

$

54,087

 

$

62,108

 

$

59,779

 

$

56,663

 

$

58,083

 

$

232,637

 

$

208,393

 

Plus: Intangible amortization, net of tax

 

112

 

 

846

 

 

85

 

 

85

 

 

-

 

 

1,127

 

 

-

 

(Numerator)

$

54,199

 

$

62,954

 

$

59,864

 

$

56,748

 

$

58,083

 

$

233,764

 

$

208,393

 

 
Average shareholders' equity

$

2,342,571

 

$

2,315,585

 

$

2,301,258

 

$

2,265,097

 

$

2,281,669

 

$

2,306,366

 

$

2,255,764

 

Less: Goodwill and intangible assets

 

(534,190

)

 

(535,184

)

 

(535,301

)

 

(531,767

)

 

(531,556

)

 

(534,120

)

 

(531,556

)

Average tangible shareholders' equity (denominator)

$

1,808,381

 

$

1,780,401

 

$

1,765,957

 

$

1,733,330

 

$

1,750,113

 

$

1,772,246

 

$

1,724,208

 

 
Return on average shareholders' equity (tangible), annualized

 

11.89

%

 

14.03

%

 

13.60

%

 

13.28

%

 

13.17

%

 

13.19

%

 

12.09

%

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

$

2,348,474

 

$

2,324,016

 

$

2,308,798

 

$

2,301,019

 

$

2,247,573

 

Less: Goodwill and intangible assets

 

(535,303

)

 

(534,178

)

 

(535,249

)

 

(535,356

)

 

(531,556

)

Tangible shareholders' equity (numerator)

$

1,813,171

 

$

1,789,838

 

$

1,773,549

 

$

1,765,663

 

$

1,716,017

 

 
Total assets

$

21,897,062

 

$

21,703,618

 

$

21,308,670

 

$

20,974,649

 

$

20,682,152

 

Less: Goodwill and intangible assets

 

(535,303

)

 

(534,178

)

 

(535,249

)

 

(535,356

)

 

(531,556

)

Total tangible assets (denominator)

$

21,361,759

 

$

21,169,440

 

$

20,773,421

 

$

20,439,293

 

$

20,150,596

 

 
Tangible Common Equity to Tangible Assets

 

8.49

%

 

8.45

%

 

8.54

%

 

8.64

%

 

8.52

%

 
Efficiency ratio
Non-interest expense

$

139,874

 

$

146,770

 

$

144,168

 

$

137,824

 

$

140,685

 

$

568,636

 

$

546,104

 

Less: Intangible amortization

 

(142

)

 

(1,071

)

 

(107

)

 

(107

)

 

-

 

 

(1,427

)

 

-

 

Less: Amortization of tax credit investments

 

(1,505

)

 

(1,533

)

 

(1,492

)

 

(1,491

)

 

(6,538

)

 

(6,021

)

 

(11,449

)

Less: Prepayment penalty on FHLB advances

 

-

 

 

(4,326

)

 

-

 

 

-

 

 

-

 

 

(4,326

)

 

-

 

Non-interest expense (numerator)

$

138,227

 

$

139,840

 

$

142,569

 

$

136,226

 

$

134,147

 

$

556,862

 

$

534,655

 

 
Net interest income (fully taxable equivalent)

$

162,479

 

$

164,517

 

$

167,794

 

$

166,564

 

$

166,124

 

$

661,356

 

$

642,577

 

Plus: Total Non-interest income

 

55,281

 

 

59,813

 

 

54,315

 

 

46,751

 

 

49,523

 

 

216,160

 

 

195,525

 

Less: Investment securities gains

 

-

 

 

(4,492

)

 

(176

)

 

(65

)

 

-

 

 

(4,733

)

 

(37

)

Net interest income (denominator)

$

217,760

 

$

219,838

 

$

221,933

 

$

213,250

 

$

215,647

 

$

872,783

 

$

838,065

 

 
Efficiency ratio

 

63.5

%

 

63.6

%

 

64.2

%

 

63.9

%

 

62.2

%

 

63.8

%

 

63.8

%

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

$

167,986

 

$

143,682

 

$

154,957

 

$

147,693

 

$

150,196

 

 
Tangible shareholders' equity

$

1,813,171

 

$

1,789,838

 

$

1,773,549

 

$

1,765,663

 

$

1,716,017

 

Plus: Allowance for credit losses

 

178,209

 

 

172,797

 

 

176,941

 

 

170,372

 

 

169,410

 

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

$

1,991,380

 

$

1,962,635

 

$

1,950,490

 

$

1,936,035

 

$

1,885,427

 

 
Non-performing