Fulton Financial Corporation Announces Second Quarter 2022 Results

LANCASTER, Pa.--()--Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $67.4 million, or $0.42 per diluted share, for the second quarter of 2022, an increase of $5.7 million, or 9.2%, in comparison to the first quarter of 2022. The Corporation reported net income available to common shareholders of $129.2 million, or $0.80 per diluted share, for the six months ended June 30, 2022, a decrease of $3.7 million or 2.8%, in comparison to the six months ended June 30, 2021.

"Overall, we are pleased with Fulton's performance and results for the second quarter. Loan originations were strong, we began to see the positive impact of rising interest rates, and fee income was solid despite headwinds in mortgage banking and our wealth management businesses," said E. Philip Wenger, Chairman and CEO. "On the corporate front, we completed our acquisition of Prudential Bancorp, Inc., which was a very important milestone for us, and we published our first Corporate Social Responsibility report highlighting the positive impact our company and our team are making in the communities we serve."

Net Interest Income and Balance Sheet

Net interest income for the second quarter of 2022 was $178.8 million, an increase of $17.5 million in comparison to the first quarter of 2022. The net interest margin for the second quarter of 2022 increased 26 basis points, to 3.04%, from 2.78% in the first quarter of 2022.

The linked-quarter increase in net interest income was primarily due to rising interest rates resulting in increases in interest income from net loans, investment securities and other interest-earning assets of $14.6 million, $1.8 million and $1.1 million, respectively. An increase in the average balances for net loans and investment securities of $254.1 million and $172.1 million, respectively, also contributed to the increase in interest income. Interest expense from interest-bearing liabilities for the second quarter of 2022 declined by $0.2 million compared to the first quarter of 2022.

For the second quarter of 2022, net interest income was $178.8 million, an increase of $16.4 million, or 10.1%, in comparison to the second quarter of 2021 primarily driven by higher interest rates resulting in an increase in interest income from net loans of $9.2 million. Additionally, the year-over-year increase of $807.2 million in average investment securities resulted in an increase of $4.7 million in interest income for the second quarter of 2022 compared to the second quarter of 2021.

Total average interest-earning assets for the second quarter of 2022 were $24.0 billion, an increase of $90.9 million from the first quarter of 2022, primarily driven by the aforementioned increases in average net loans of $254.1 and average investment securities of $172.1 million, partially offset by a decrease in other interest-earning assets of $319.9 million.

Total average interest-earning assets for the second quarter of 2022 decreased by $295.2 million from the second quarter of 2021. Average net loans for the second quarter of 2022 were $18.6 billion , a decrease of $269.4 million from the same period in 2021. Included in average net loans for the second quarter of 2022 were Paycheck Protection Program ("PPP") loans with an average balance of $114.8 million, a decrease of $1.4 billion from the second quarter of 2021. The decrease in average PPP loans for the second quarter of 2022 was partially offset by increases in average residential mortgage loans, average commercial mortgage loans, average real estate construction loans and average commercial and industrial loans of $656.0 million, $162.8 million, $134.5 million and $119.8 million, respectively. Average investment securities increased $807.2 million, for the second quarter of 2022 compared to the second quarter of 2021.

Total average interest-bearing liabilities decreased $202.8 million, to $14.9 billion, in the second quarter of 2022 compared to the first quarter of 2022, driven by decreases of $88.8 million, $67.0 million and $52.9 million in average time deposits, average demand deposits and average long-term borrowings, respectively.

Total average interest-bearing liabilities for the second quarter of 2022 decreased $822.8 million from the second quarter of 2021, driven by decreases in average balances of $685.8 million, $69.8 million and $67.2 million in total interest-bearing deposits, long-term borrowings and short-term borrowings, respectively.

Asset Quality

In the second quarter of 2022, a provision for credit losses of $1.5 million was recorded, as compared to a negative provision for credit losses of $7.0 million in the first quarter of 2022, and a negative provision for credit losses of $3.5 million in the second quarter of 2021. The provision for credit losses for the second quarter of 2022 was recorded to adjust the allowance for credit losses as a result of strong loan growth during the quarter as well as the economic outlook.

Non-performing assets were $178.3 million, or 0.71% of total assets, at June 30, 2022, compared to $163.0 million, or 0.64% of total assets at March 31, 2022, and $156.5 million, or 0.60% of total assets, at June 30, 2021.

Annualized net charge-offs (recoveries) for the quarter ended June 30, 2022, were (0.08)% of total average loans, compared to (0.02%) and 0.15% for the quarters ended March 31, 2022 and June 30, 2021, respectively.

Non-interest Income

Non-interest income before investment securities gains in the second quarter of 2022 was $58.4 million, an increase of $3.1 million, or 5.7%, from the first quarter of 2022. The increase in non-interest income was driven by increases of $2.1 million in fee income from commercial customer interest rate swaps, $1.3 million in commercial banking merchant and card revenues and $0.8 million in consumer banking fees, partially offset a decrease of $1.2 million in wealth management revenues.

Compared to the second quarter of 2021, non-interest income before investment securities gains in the second quarter of 2022 increased $6.5 million, or 12.6%, from $51.9 million. The increase in non-interest income was primarily due to increases of $2.2 million in fee income from commercial customer interest rate swaps, $1.6 million in consumer banking fees, $0.9 million in mortgage banking income, $0.7 million in cash management fees, $0.6 million in wealth management revenues and $0.6 million in commercial banking merchant and card revenues.

Non-interest Expense

Non-interest expense, excluding merger-related expenses, was $148.7 million in the second quarter of 2022, an increase of $3.1 million, or 2.1%, compared to the first quarter of 2022. The increase was primarily due to a $1.0 million decrease in net gains on the sale of owned-fixed assets and an increase of $0.5 million in state taxes, both reflected in other expense, and a $0.9 million increase in salaries and employee benefits primarily due to merit increases and one additional day in the quarter. Included in non-interest expense for the second quarter of 2022 was $1.0 million of merger-related expenses associated with the acquisition of Prudential Bancorp, Inc., compared to $0.4 million in the first quarter of 2022.

Compared to the second quarter of 2021, non-interest expense, excluding merger-related expenses of $1.0 million, increased $7.9 million, or 5.6%, in the second quarter of 2022, primarily due to increases of $7.0 million in salaries and employee benefits and $1.1 million in net occupancy expense.

Income Tax Expense

For the second quarter of 2022, the effective tax rate was 18.6%, compared to 17.6% for the full-year of 2021.

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

Safe Harbor Statement

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

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

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2021, Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 and other current and periodic reports, which have been or will be filed with the Securities and Exchange Commission (the "SEC") and are or will be available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov).

Non-GAAP Financial Measures

The Corporation uses certain financial measures in this press release that have been derived from methods other than Generally Accepted Accounting Principles ("GAAP"). These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this press release.

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

 

SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)

 

 

 

 

 

 

 

in thousands, except per-share data and percentages

 

 

 

 

 

 

 

 

Three months ended

 

 

June 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

Ending Balances

 

 

 

 

 

 

 

 

 

 

Investments

$

4,117,801

 

 

$

4,288,674

 

 

$

4,167,774

 

 

$

4,000,760

 

 

$

3,921,658

 

 

Net loans

 

18,920,950

 

 

 

18,476,119

 

 

 

18,325,350

 

 

 

18,269,407

 

 

 

18,586,756

 

 

Total assets

 

25,252,686

 

 

 

25,598,310

 

 

 

25,796,398

 

 

 

26,390,832

 

 

 

26,079,774

 

 

Deposits

 

21,143,866

 

 

 

21,541,174

 

 

 

21,573,499

 

 

 

22,074,041

 

 

 

21,724,312

 

 

Shareholders' equity

 

2,471,093

 

 

 

2,569,535

 

 

 

2,712,680

 

 

 

2,699,818

 

 

 

2,692,958

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances

 

 

 

 

 

 

 

 

 

 

Investments

$

4,216,507

 

 

$

4,228,827

 

 

$

3,980,045

 

 

$

3,914,627

 

 

$

3,670,333

 

 

Net loans

 

18,637,175

 

 

 

18,383,118

 

 

 

18,220,550

 

 

 

18,414,153

 

 

 

18,906,556

 

 

Total assets

 

25,578,432

 

 

 

25,622,462

 

 

 

26,136,536

 

 

 

26,440,876

 

 

 

26,017,542

 

 

Deposits

 

21,523,713

 

 

 

21,480,183

 

 

 

21,876,938

 

 

 

22,123,480

 

 

 

21,765,601

 

 

Shareholders' equity

 

2,531,346

 

 

 

2,688,834

 

 

 

2,713,198

 

 

 

2,722,833

 

 

 

2,669,413

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement

 

 

 

 

 

 

 

 

 

 

Net interest income

$

178,831

 

 

$

161,310

 

 

$

165,613

 

 

$

171,270

 

 

$

162,399

 

 

Provision for credit losses

 

1,500

 

 

 

(6,950

)

 

 

(5,000

)

 

 

(600

)

 

 

(3,500

)

 

Non-interest income

 

58,391

 

 

 

55,256

 

 

 

63,881

 

 

 

62,577

 

 

 

51,890

 

 

Non-interest expense

 

149,730

 

 

 

145,978

 

 

 

154,019

 

 

 

144,596

 

 

 

140,831

 

 

Income before taxes

 

85,992

 

 

 

77,538

 

 

 

80,475

 

 

 

89,851

 

 

 

76,958

 

 

Net income available to common shareholders

 

67,427

 

 

 

61,726

 

 

 

59,325

 

 

 

73,021

 

 

 

62,402

 

 

Pre-provision net revenue(1)

 

89,384

 

 

 

71,842

 

 

 

77,837

 

 

 

90,947

 

 

 

75,575

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (basic)

$

0.42

 

 

$

0.38

 

 

$

0.37

 

 

$

0.45

 

 

$

0.38

 

 

Net income available to common shareholders (diluted)

$

0.42

 

 

$

0.38

 

 

$

0.37

 

 

$

0.45

 

 

$

0.38

 

 

Cash dividends

$

0.15

 

 

$

0.15

 

 

$

0.22

 

 

$

0.14

 

 

$

0.14

 

 

Common shareholders' equity

$

14.15

 

 

$

14.79

 

 

$

15.70

 

 

$

15.53

 

 

$

15.34

 

 

Common shareholders' equity (tangible)(1)

$

10.81

 

 

$

11.44

 

 

$

12.35

 

 

$

12.21

 

 

$

12.05

 

 

Weighted average shares (basic)

 

160,920

 

 

 

160,588

 

 

 

161,210

 

 

 

162,506

 

 

 

162,785

 

 

Weighted average shares (diluted)

 

162,075

 

 

 

161,911

 

 

 

162,355

 

 

 

163,456

 

 

 

163,858

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Non-GAAP financial measure. Refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this press release.

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

June 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

Net (recoveries) charge offs to average loans (annualized)

 

(0.08

)%

 

 

(0.02

)%

 

 

0.07

%

 

 

(0.05

)%

 

 

0.15

%

 

Non-performing loans to total loans

 

0.92

%

 

 

0.87

%

 

 

0.83

%

 

 

0.82

%

 

 

0.83

%

 

Non-performing assets to total assets

 

0.71

%

 

 

0.64

%

 

 

0.60

%

 

 

0.58

%

 

 

0.60

%

 

ACL - loans(2) to total loans

 

1.31

%

 

 

1.32

%

 

 

1.36

%

 

 

1.41

%

 

 

1.37

%

 

ACL - loans(2) to non-performing loans

 

143

%

 

 

151

%

 

 

164

%

 

 

171

%

 

 

166

%

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality, excluding PPP(1)(3)

 

 

 

 

 

 

 

 

 

 

Net (recoveries) charge offs to adjusted average loans (annualized)

 

(0.08

) %

 

 

(0.02

) %

 

 

0.07

%

 

 

(0.05

) %

 

 

0.16

%

 

Non-performing loans to total adjusted loans

 

0.92

%

 

 

0.88

%

 

 

0.84

%

 

 

0.85

%

 

 

0.88

%

 

ACL - loans(2) to total adjusted loans

 

1.32

%

 

 

1.33

%

 

 

1.38

%

 

 

1.45

%

 

 

1.46

%

 

 

 

 

 

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.10

%

 

 

1.02

%

 

 

0.94

%

 

 

1.13

%

 

 

1.00

%

 

Return on average assets, excluding merger-related expenses(1)

 

1.11

%

 

 

1.02

%

 

 

0.94

%

 

 

1.13

%

 

 

1.00

%

 

Return on average common shareholders' equity

 

11.57

%

 

 

10.03

%

 

 

9.34

%

 

 

11.45

%

 

 

10.11

%

 

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

 

15.23

%

 

 

12.88

%

 

 

11.89

%

 

 

14.56

%

 

 

12.93

%

 

Net interest margin

 

3.04

%

 

 

2.78

%

 

 

2.77

%

 

 

2.82

%

 

 

2.73

%

 

Efficiency ratio(1)

 

61.4

%

 

 

65.8

%

 

 

65.2

%

 

 

60.3

%

 

 

63.8

%

 

Non-interest expenses to total average assets

 

2.35

%

 

 

2.31

%

 

 

2.34

%

 

 

2.17

%

 

 

2.17

%

 

Non-interest expenses to total average assets(1)

 

2.32

%

 

 

2.29

%

 

 

2.30

%

 

 

2.14

%

 

 

2.14

%

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

Tangible common equity ratio ("TCE")(1)

 

7.0

%

 

 

7.3

%

 

 

7.8

%

 

 

7.6

%

 

 

7.7

%

 

TCE ratio, (excluding AOCI)(1)(5)

 

8.2

%

 

 

7.9

%

 

 

7.8

%

 

 

7.5

%

 

 

7.5

%

 

Tier 1 leverage ratio(4)

 

9.1

%

 

 

8.9

%

 

 

8.6

%

 

 

8.4

%

 

 

8.5

%

 

Common equity Tier 1 capital ratio(4)

 

10.0

%

 

 

10.0

%

 

 

9.9

%

 

 

10.1

%

 

 

10.0

%

 

Tier 1 risk-based capital ratio(4)

 

10.9

%

 

 

10.9

%

 

 

10.9

%

 

 

11.1

%

 

 

11.0

%

 

Total risk-based capital ratio(4)

 

13.8

%

 

 

13.8

%

 

 

14.1

%

 

 

14.4

%

 

 

14.5

%

 

(1) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release.

(2) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet ("OBS") credit exposures.

(3) Asset quality information excluding PPP loans.

(4) Regulatory capital ratios as of June 30, 2022 are preliminary and prior periods are actual.

(5) Tangible common equity ("TCE") ratio, excluding accumulated other comprehensive income ("AOCI")

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

 

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change from

 

 

June 30

 

Mar 31

 

Dec 31

 

Sep 30

 

June 30

 

Mar 31

 

Jun 30

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

2022

 

2021

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

158,605

 

 

$

161,462

 

 

$

172,276

 

 

$

260,564

 

 

$

143,002

 

 

(1.8

)%

 

10.9

%

 

Other interest-earning assets

 

383,715

 

 

 

1,054,232

 

 

 

1,523,973

 

 

 

2,271,738

 

 

 

1,823,688

 

 

(63.6

)%

 

(79.0

)%

 

Loans held for sale

 

17,528

 

 

 

27,675

 

 

 

35,768

 

 

 

43,123

 

 

 

41,924

 

 

(36.7

)%

 

(58.2

)%

 

Investment securities

 

4,117,801

 

 

 

4,288,674

 

 

 

4,167,774

 

 

 

4,000,760

 

 

 

3,921,658

 

 

(4.0

)%

 

5.0

%

 

Net loans

 

18,920,950

 

 

 

18,476,119

 

 

 

18,325,350

 

 

 

18,269,407

 

 

 

18,586,756

 

 

2.4

%

 

1.8

%

 

Less: ACL - loans(1)

 

(248,564

)

 

 

(243,705

)

 

 

(249,001

)

 

 

(256,727

)

 

 

(255,032

)

 

(2.0

)%

 

(2.5

)%

 

Loans, net

 

18,672,386

 

 

 

18,232,414

 

 

 

18,076,349

 

 

 

18,012,680

 

 

 

18,331,724

 

 

2.4

%

 

1.9

%

 

Net, premises and equipment

 

211,639

 

 

 

218,257

 

 

 

220,357

 

 

 

228,179

 

 

 

228,353

 

 

(3.0

)%

 

(7.3

)%

 

Accrued interest receivable

 

64,457

 

 

 

55,102

 

 

 

57,451

 

 

 

57,902

 

 

 

63,232

 

 

17.0

%

 

1.9

%

 

Goodwill and intangible assets

 

537,700

 

 

 

537,877

 

 

 

538,053

 

 

 

536,697

 

 

 

536,847

 

 

%

 

0.2

%

 

Other assets

 

1,088,855

 

 

 

1,022,617

 

 

 

1,004,397

 

 

 

979,189

 

 

 

989,346

 

 

6.5

%

 

10.1

%

 

Total Assets

$

25,252,686

 

 

$

25,598,310

 

 

$

25,796,398

 

 

$

26,390,832

 

 

$

26,079,774

 

 

(1.4

)%

 

(3.2

)%

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

21,143,866

 

 

$

21,541,174

 

 

$

21,573,499

 

 

$

22,074,041

 

 

$

21,724,312

 

 

(1.8

)%

 

(2.7

)%

 

Short-term borrowings

 

456,185

 

 

 

452,440

 

 

 

416,764

 

 

 

468,967

 

 

 

533,749

 

 

0.8

%

 

(14.5

)%

 

Other liabilities

 

624,412

 

 

 

478,667

 

 

 

472,110

 

 

 

520,620

 

 

 

501,542

 

 

30.4

%

 

24.5

%

 

Long-term borrowings

 

557,130

 

 

 

556,494

 

 

 

621,345

 

 

 

627,386

 

 

 

627,213

 

 

0.1

%

 

(11.2

)%

 

Total Liabilities

 

22,781,593

 

 

 

23,028,775

 

 

 

23,083,718

 

 

 

23,691,014

 

 

 

23,386,816

 

 

(1.1

)%

 

(2.6

)%

 

Shareholders' equity

 

2,471,093

 

 

 

2,569,535

 

 

 

2,712,680

 

 

 

2,699,818

 

 

 

2,692,958

 

 

(3.8

)%

 

(8.2

)%

 

Total Liabilities and Shareholders' Equity

$

25,252,686

 

 

$

25,598,310

 

 

$

25,796,398

 

 

$

26,390,832

 

 

$

26,079,774

 

 

(1.4

)%

 

(3.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

 

 

 

 

 

 

 

 

 

 

Loans, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,417,036

 

 

$

7,289,376

 

 

$

7,279,080

 

 

$

7,145,115

 

 

$

7,152,932

 

 

1.8

%

 

3.7

%

 

Commercial and industrial

 

4,098,552

 

 

 

3,992,285

 

 

 

3,906,791

 

 

 

3,863,154

 

 

 

3,870,462

 

 

2.7

%

 

5.9

%

 

Real estate - residential mortgage

 

4,203,827

 

 

 

3,946,741

 

 

 

3,846,750

 

 

 

3,719,684

 

 

 

3,555,897

 

 

6.5

%

 

18.2

%

 

Real estate - home equity

 

1,108,808

 

 

 

1,098,171

 

 

 

1,118,248

 

 

 

1,126,628

 

 

 

1,136,128

 

 

1.0

%

 

(2.4

)%

 

Real estate - construction

 

1,177,446

 

 

 

1,210,340

 

 

 

1,139,779

 

 

 

1,111,487

 

 

 

1,070,755

 

 

(2.7

) %

 

10.0

%

 

Consumer

 

538,747

 

 

 

481,551

 

 

 

464,657

 

 

 

458,595

 

 

 

448,433

 

 

11.9

%

 

20.1

%

 

Equipment lease financing

 

254,897

 

 

 

253,521

 

 

 

236,344

 

 

 

242,967

 

 

 

252,158

 

 

0.5

%

 

1.1

%

 

Other(2)

 

49,214

 

 

 

39,857

 

 

 

32,448

 

 

 

11,330

 

 

 

(14,410

)

 

23.5

%

 

N/M

 

Net loans before PPP

 

18,848,527

 

 

 

18,311,842

 

 

 

18,024,097

 

 

 

17,678,960

 

 

 

17,472,355

 

 

2.9

%

 

7.9

%

 

PPP

 

72,423

 

 

 

164,277

 

 

 

301,253

 

 

 

590,447

 

 

 

1,114,401

 

 

(55.9

)%

 

(93.5

)%

 

Total Net Loans

$

18,920,950

 

 

$

18,476,119

 

 

$

18,325,350

 

 

$

18,269,407

 

 

$

18,586,756

 

 

2.4

%

 

1.8

%

Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

7,530,777

 

 

$

7,528,391

 

 

$

7,370,963

 

 

$

7,434,155

 

 

$

7,442,132

 

 

%

 

1.2

%

 

Interest-bearing demand

 

5,403,805

 

 

 

5,625,286

 

 

 

5,819,539

 

 

 

6,187,096

 

 

 

5,795,404

 

 

(3.9

)%

 

(6.8

)%

 

Savings

 

6,406,051

 

 

 

6,479,196

 

 

 

6,403,995

 

 

 

6,401,619

 

 

 

6,276,554

 

 

(1.1

)%

 

2.1

%

 

Total demand and savings

 

19,340,633

 

 

 

19,632,873

 

 

 

19,594,497

 

 

 

20,022,870

 

 

 

19,514,090

 

 

(1.5

)%

 

(0.9

) %

 

Brokered

 

243,172

 

 

 

248,833

 

 

 

251,526

 

 

 

262,617

 

 

 

277,444

 

 

(2.3

)%

 

(12.4

)%

 

Time

 

1,560,061

 

 

 

1,659,468

 

 

 

1,727,476

 

 

 

1,788,554

 

 

 

1,932,778

 

 

(6.0

)%

 

(19.3

)%

 

Total Deposits

$

21,143,866

 

 

$

21,541,174

 

 

$

21,573,499

 

 

$

22,074,041

 

 

$

21,724,312

 

 

(1.8

) %

 

(2.7

)%

Short-term borrowings, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer funding

$

436,185

 

 

$

452,440

 

 

$

416,764

 

 

$

468,967

 

 

$

533,749

 

 

(3.6

)%

 

(18.3

)%

 

Federal funds purchased

 

20,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N/M

 

N/M

 

Total Short-Term Borrowings

$

456,185

 

 

$

452,440

 

 

$

416,764

 

 

$

468,967

 

 

$

533,749

 

 

0.8

%

 

(14.5

)%

(1)

"ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.

(2)

Consists of overdrafts and net origination fees and costs.

N/M - Not meaningful

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

% Change from

 

Six Months Ended

 

 

 

 

June 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

June 30

 

June 30

 

 

 

 

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

2022

 

2021

 

 

2022

 

 

 

2021

 

 

%
Change

Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

$

190,299

 

 

$

173,001

 

 

$

177,724

 

 

$

184,079

 

 

$

176,673

 

 

10.0

%

 

7.7

%

 

$

363,300

 

 

$

361,609

 

 

0.5

%

 

Interest expense

 

 

 

11,468

 

 

 

11,691

 

 

 

12,111

 

 

 

12,809

 

 

 

14,274

 

 

(1.9

)%

 

(19.7

)%

 

 

23,159

 

 

 

34,762

 

 

(33.4

)%

 

Net Interest Income

 

 

 

178,831

 

 

 

161,310

 

 

 

165,613

 

 

 

171,270

 

 

 

162,399

 

 

10.9

%

 

10.1

%

 

 

340,141

 

 

 

326,847

 

 

4.1

%

 

Provision for credit losses

 

 

 

1,500

 

 

 

(6,950

)

 

 

(5,000

)

 

 

(600

)

 

 

(3,500

)

 

121.6

%

 

142.9

%

 

 

(5,450

)

 

 

(9,000

)

 

39.4

%

 

Net Interest Income after

Provision

 

 

 

177,331

 

 

 

168,260

 

 

 

170,613

 

 

 

171,870

 

 

 

165,899

 

 

5.4

%

 

6.9

%

 

 

345,591

 

 

 

335,847

 

 

2.9

%

Non-Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchant and card

 

 

 

7,355

 

 

 

6,097

 

 

 

6,588

 

 

 

6,979

 

 

 

6,786

 

 

20.6

%

 

8.4

%

 

 

13,452

 

 

 

12,554

 

 

7.2

%

 

Cash management

 

 

 

6,062

 

 

 

5,428

 

 

 

5,318

 

 

 

5,285

 

 

 

5,341

 

 

11.7

%

 

13.5

%

 

 

11,490

 

 

 

10,262

 

 

12.0

%

 

Capital markets

 

 

 

3,893

 

 

 

1,676

 

 

 

2,982

 

 

 

2,063

 

 

 

1,536

 

 

132.3

%

 

N/M

 

 

 

5,569

 

 

 

4,336

 

 

28.4

%

 

Other commercial banking

 

 

 

3,049

 

 

 

2,807

 

 

 

3,592

 

 

 

2,411

 

 

 

3,466

 

 

8.6

%

 

(12.0

)%

 

 

5,856

 

 

 

6,319

 

 

(7.3

)%

 

Total commercial banking

 

 

 

20,359

 

 

 

16,008

 

 

 

18,480

 

 

 

16,738

 

 

 

17,129

 

 

27.2

%

 

18.9

%

 

 

36,367

 

 

 

33,471

 

 

8.7

%

 

Consumer banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Card

 

 

 

6,067

 

 

 

5,796

 

 

 

5,953

 

 

 

5,941

 

 

 

5,733

 

 

4.7

%

 

5.8

%

 

 

11,863

 

 

 

11,611

 

 

2.2

%

 

Overdraft

 

 

 

3,881

 

 

 

3,772

 

 

 

3,896

 

 

 

3,474

 

 

 

2,750

 

 

2.9

%

 

41.1

%

 

 

7,653

 

 

 

5,474

 

 

39.8

%

 

Other consumer banking

 

 

 

2,524

 

 

 

2,106

 

 

 

2,280

 

 

 

2,386

 

 

 

2,377

 

 

19.8

%

 

6.2

%

 

 

4,630

 

 

 

4,529

 

 

2.2

%

 

Total consumer banking

 

 

 

12,472

 

 

 

11,674

 

 

 

12,129

 

 

 

11,801

 

 

 

10,860

 

 

6.8

%

 

14.8

%

 

 

24,146

 

 

 

21,614

 

 

11.7

%

 

Wealth management

 

 

 

18,274

 

 

 

19,428

 

 

 

18,285

 

 

 

18,532

 

 

 

17,634

 

 

(5.9

)%

 

3.6

%

 

 

37,702

 

 

 

34,981

 

 

7.8

%

 

Mortgage banking

 

 

 

3,768

 

 

 

4,576

 

 

 

7,243

 

 

 

9,535

 

 

 

2,838

 

 

(17.7

)%

 

32.8

%

 

 

8,344

 

 

 

16,798

 

 

(50.3

)%

 

Other

 

 

 

3,510

 

 

 

3,551

 

 

 

7,739

 

 

 

5,971

 

 

 

3,393

 

 

(1.2

)%

 

3.4

%

 

 

7,061

 

 

 

6,912

 

 

2.2

%

 

Non-interest income before

investment securities gains

 

 

 

58,383

 

 

 

55,237

 

 

 

63,876

 

 

 

62,577

 

 

 

51,854

 

 

5.7

%

 

12.6

%

 

 

113,620

 

 

 

113,776

 

 

(0.1

)%

 

Investment securities gains, net

 

 

 

8

 

 

 

19

 

 

 

5

 

 

 

 

 

 

36

 

 

(57.9

)%

 

(77.8

)%

 

 

27

 

 

 

33,511

 

 

(99.9

)%

 

Total Non-Interest Income

 

 

 

58,391

 

 

 

55,256

 

 

 

63,881

 

 

 

62,577

 

 

 

51,890

 

 

5.7

%

 

12.5

%

 

 

113,647

 

 

 

147,287

 

 

(22.8

)%

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

 

85,404

 

 

 

84,464

 

 

 

85,506

 

 

 

82,679

 

 

 

78,367

 

 

1.1

%

 

9.0

%

 

 

169,868

 

 

 

160,953

 

 

5.5

%

 

Data processing and software

 

 

 

14,685

 

 

 

14,315

 

 

 

14,612

 

 

 

14,335

 

 

 

13,932

 

 

2.6

%

 

5.4

%

 

 

29,000

 

 

 

27,493

 

 

5.5

%

 

Net occupancy

 

 

 

13,587

 

 

 

14,522

 

 

 

14,366

 

 

 

12,957

 

 

 

12,494

 

 

(6.4

)%

 

8.7

%

 

 

28,109

 

 

 

26,476

 

 

6.2

%

 

Other outside services

 

 

 

8,764

 

 

 

8,167

 

 

 

9,637

 

 

 

7,889

 

 

 

8,178

 

 

7.3

%

 

7.2

%

 

 

16,931

 

 

 

16,668

 

 

1.6

%

 

Equipment

 

 

 

3,422

 

 

 

3,423

 

 

 

3,539

 

 

 

3,416

 

 

 

3,424

 

 

%

 

(0.1

)%

 

 

6,845

 

 

 

6,852

 

 

(0.1

)%

 

FDIC insurance

 

 

 

2,961

 

 

 

3,209

 

 

 

3,032

 

 

 

2,727

 

 

 

2,282

 

 

(7.7

)%

 

29.8

%

 

 

6,170

 

 

 

4,906

 

 

25.8

%

 

Professional fees

 

 

 

2,013

 

 

 

1,792

 

 

 

1,946

 

 

 

2,271

 

 

 

2,651

 

 

12.3

%

 

(24.1

)%

 

 

3,805

 

 

 

5,430

 

 

(29.9

)%

 

Marketing

 

 

 

1,326

 

 

 

1,320

 

 

 

1,477

 

 

 

1,448

 

 

 

1,348

 

 

0.5

%

 

(1.6

)%

 

 

2,646

 

 

 

2,350

 

 

12.6

%

 

Intangible amortization

 

 

 

177

 

 

 

176

 

 

 

146

 

 

 

150

 

 

 

178

 

 

0.6

%

 

(0.6

)%

 

 

353

 

 

 

293

 

 

20.5

%

 

Debt extinguishment

 

 

 

 

 

 

 

 

 

674

 

 

 

 

 

 

412

 

 

N/M

 

 

N/M

 

 

 

 

 

 

32,575

 

 

(100.0

)%

 

Merger-related expenses

 

 

 

1,027

 

 

 

401

 

 

 

 

 

 

 

 

 

 

 

N/M

 

 

N/M

 

 

 

1,428

 

 

 

 

 

N/M

 

 

Other

 

 

 

16,364

 

 

 

14,189

 

 

 

19,084

 

 

 

16,724

 

 

 

17,565

 

 

15.3

%

 

(6.8

)%

 

 

30,553

 

 

 

35,219

 

 

(13.2

)%

 

Total Non-Interest Expense

 

 

 

149,730

 

 

 

145,978

 

 

 

154,019

 

 

 

144,596

 

 

 

140,831

 

 

2.6

%

 

6.3

%

 

 

295,708

 

 

 

319,215

 

 

(7.4

)%

 

Income Before Income Taxes

 

 

 

85,992

 

 

 

77,538

 

 

 

80,475

 

 

 

89,851

 

 

 

76,958

 

 

10.9

%

 

11.7

%

 

 

163,530

 

 

 

163,919

 

 

(0.2

)%

 

Income tax expense

 

 

 

16,003

 

 

 

13,250

 

 

 

18,588

 

 

 

14,268

 

 

 

11,994

 

 

20.8

%

 

33.4

%

 

 

29,253

 

 

 

25,892

 

 

13.0

%

 

Net Income

 

 

 

69,989

 

 

 

64,288

 

 

 

61,887

 

 

 

75,583

 

 

 

64,964

 

 

8.9

%

 

7.7

%

 

 

134,277

 

 

 

138,027

 

 

(2.7

)%

 

Preferred stock dividends

 

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

%

 

%

 

 

(5,124

)

 

 

(5,153

)

 

0.6

%

 

Net Income Available to

Common Shareholders

 

 

$

67,427

 

 

$

61,726

 

 

$

59,325

 

 

$

73,021

 

 

$

62,402

 

 

9.2

%

 

8.1

%

 

$

129,153

 

 

$

132,874

 

 

(2.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

% Change from

 

Six Months Ended

 

 

 

 

June 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

June 30

 

June 30

 

 

 

 

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

2022

 

2021

 

 

2022

 

 

 

2021

 

 

%
Change

PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

$

0.42

 

 

$

0.38

 

 

$

0.37

 

 

$

0.45

 

 

$

0.38

 

 

10.5

%

 

10.5

%

 

$

0.80

 

 

$

0.81

 

 

(1.2

)%

 

Diluted

 

 

$

0.42

 

 

$

0.38

 

 

$

0.37

 

 

$

0.45

 

 

$

0.38

 

 

10.5

%

 

10.5

%

 

$

0.80

 

 

$

0.81

 

 

(1.2

)%

 

Cash dividends

 

 

$

0.15

 

 

$

0.15

 

 

$

0.22

 

 

$

0.14

 

 

$

0.14

 

 

%

 

7.1

%

 

$

0.30

 

 

$

0.28

 

 

7.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

 

 

160,920

 

 

 

160,588

 

 

 

161,210

 

 

 

162,506

 

 

 

162,785

 

 

0.2

%

 

(1.1

)%

 

 

160,755

 

 

 

162,614

 

 

(1.1

)%

 

Weighted average shares (diluted)

 

 

 

162,075

 

 

 

161,991

 

 

 

162,355

 

 

 

163,456

 

 

 

163,858

 

 

0.1

%

 

(1.1

)%

 

 

162,015

 

 

 

163,738

 

 

(1.1

)%

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

Three months ended

 

 

June 30, 2022

 

March 31, 2022

 

June 30, 2021

 

 

Average

 

Interest

 

Yield/

 

Average

 

Interest

 

Yield/

 

Average

 

Interest

 

Yield/

 

 

Balance

 

(1)

 

Rate

 

Balance

 

(1)

 

Rate

 

Balance

 

(1)

 

Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans

$

18,637,175

 

 

$

165,682

 

 

3.56

%

 

$

18,383,118

 

 

$

151,127

 

 

3.32

%

 

$

18,906,556

 

 

$

156,525

 

 

3.32

%

 

Taxable investment securities

 

3,180,159

 

 

 

16,931

 

 

1.68

%

 

 

3,073,643

 

 

 

15,213

 

 

1.71

%

 

 

2,630,090

 

 

 

13,898

 

 

1.93

%

 

Tax-exempt investment securities

 

1,218,265

 

 

 

9,130

 

 

2.99

%

 

 

1,152,709

 

 

 

9,038

 

 

3.13

%

 

 

961,141

 

 

 

7,494

 

 

3.11

%

 

Total Investment Securities

 

4,398,424

 

 

 

26,061

 

 

2.37

%

 

 

4,226,352

 

 

 

24,251

 

 

2.29

%

 

 

3,591,231

 

 

 

21,392

 

 

2.38

%

 

Loans held for sale

 

13,260

 

 

 

260

 

 

7.84

%

 

 

28,549

 

 

 

241

 

 

3.37

%

 

 

31,948

 

 

 

199

 

 

2.49

%

 

Other interest-earning assets

 

938,244

 

 

 

1,723

 

 

0.74

%

 

 

1,258,174

 

 

 

671

 

 

0.22

%

 

 

1,752,549

 

 

 

1,575

 

 

0.16

%

 

Total Interest-Earning Assets

 

23,987,103

 

 

 

193,726

 

 

3.24

%

 

 

23,896,193

 

 

 

176,290

 

 

2.98

%

 

 

24,282,284

 

 

 

179,691

 

 

2.97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

160,240

 

 

 

 

 

 

 

162,320

 

 

 

 

 

 

 

129,927

 

 

 

 

 

 

Premises and equipment

 

216,798

 

 

 

 

 

 

 

219,932

 

 

 

 

 

 

 

229,047

 

 

 

 

 

 

Other assets

 

1,463,332

 

 

 

 

 

 

 

1,595,039

 

 

 

 

 

 

 

1,643,410

 

 

 

 

 

 

Less: ACL - loans(2)

 

(249,041

)

 

 

 

 

 

 

(251,022

)

 

 

 

 

 

 

(267,126

)

 

 

 

 

 

Total Assets

$

25,578,432

 

 

 

 

 

 

$

25,622,462

 

 

 

 

 

 

$

26,017,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

5,597,975

 

 

$

797

 

 

0.06

%

 

$

5,664,987

 

 

$

728

 

 

0.05

%

 

$

5,979,855

 

 

$

932

 

 

0.06

%

 

Savings deposits

 

6,425,634

 

 

 

1,125

 

 

0.07

%

 

 

6,436,548

 

 

 

1,021

 

 

0.06

%

 

 

6,280,629

 

 

 

1,363

 

 

0.09

%

 

Brokered deposits

 

244,200

 

 

 

619

 

 

1.02

%

 

 

250,350

 

 

 

216

 

 

0.35

%

 

 

297,815

 

 

 

253

 

 

0.34

%

 

Time deposits

 

1,608,286

 

 

 

3,255

 

 

0.81

%

 

 

1,697,063

 

 

 

3,640

 

 

0.87

%

 

 

2,003,606

 

 

 

5,434

 

 

1.09

%

 

Total Interest-Bearing Deposits

 

13,876,095

 

 

 

5,796

 

 

0.17

%

 

 

14,048,948

 

 

 

5,605

 

 

0.16

%

 

 

14,561,905

 

 

 

7,982

 

 

0.22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

446,838

 

 

 

190

 

 

0.17

%

 

 

423,949

 

 

 

121

 

 

0.12

%

 

 

514,025

 

 

 

137

 

 

0.11

%

 

Long-term borrowings

 

556,992

 

 

 

5,482

 

 

3.94

%

 

 

609,866

 

 

 

5,966

 

 

3.91

%

 

 

626,795

 

 

 

6,155

 

 

3.93

%

 

Total Interest-Bearing Liabilities

 

14,879,925

 

 

 

11,468

 

 

0.31

%

 

 

15,082,763

 

 

 

11,692

 

 

0.31

%

 

 

15,702,725

 

 

 

14,274

 

 

0.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

7,647,618

 

 

 

 

 

 

 

7,431,235

 

 

 

 

 

 

 

7,203,696

 

 

 

 

 

 

Other

 

519,543

 

 

 

 

 

 

 

419,630

 

 

 

 

 

 

 

441,708

 

 

 

 

 

 

Total Liabilities

 

23,047,086

 

 

 

 

 

 

 

22,933,628

 

 

 

 

 

 

 

23,348,129

 

 

 

 

 

 

Total Deposits/Cost of Deposits

 

21,523,713

 

 

 

 

0.11

%

 

 

21,480,183

 

 

 

 

0.11

%

 

 

21,765,601

 

 

 

 

0.15

%

 

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

 

22,527,543

 

 

 

 

0.20

%

 

 

22,513,998

 

 

 

 

0.21

%

 

 

22,906,421

 

 

 

 

0.25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

2,531,346

 

 

 

 

 

 

 

2,688,834

 

 

 

 

 

 

 

2,669,413

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

$

25,578,432

 

 

 

 

 

 

$

25,622,462

 

 

 

 

 

 

$

26,017,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

182,258

 

 

3.04

%

 

 

 

 

164,598

 

 

2.78

%

 

 

 

 

165,417

 

 

2.73

%

 

Tax equivalent adjustment

 

 

 

(3,427

)

 

 

 

 

 

 

(3,288

)

 

 

 

 

 

 

(3,018

)

 

 

 

Net Interest Income

 

 

$

178,831

 

 

 

 

 

 

$

161,310

 

 

 

 

 

 

$

162,399

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

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

(2)

"ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):

dollars in thousands

 

 

Three months ended

 

% Change from

 

 

June 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Jun 30

 

 

2022

 

2022

 

2021

 

 

2021

 

 

 

2021

 

 

2022

 

2021

Loans, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,340,417

 

$

7,294,914

 

$

7,157,906

 

$

7,134,177

 

 

$

7,177,622

 

 

0.6

%

 

2.3

%

 

Commercial and industrial

 

4,040,587

 

 

3,986,900

 

 

3,898,559

 

 

3,878,767

 

 

 

3,920,771

 

 

1.3

%

 

3.1

%

 

Real estate - residential mortgage

 

4,052,666

 

 

3,887,428

 

 

3,773,156

 

 

3,642,822

 

 

 

3,396,690

 

 

4.3

%

 

19.3

%

 

Real estate - home equity

 

1,118,494

 

 

1,106,319

 

 

1,122,042

 

 

1,128,076

 

 

 

1,139,558

 

 

1.1

%

 

(1.8

)%

 

Real estate - construction

 

1,188,932

 

 

1,137,649

 

 

1,117,592

 

 

1,085,846

 

 

 

1,054,469

 

 

4.5

%

 

12.8

%

 

Consumer

 

485,095

 

 

471,129

 

 

462,346

 

 

452,844

 

 

 

451,486

 

 

3.0

%

 

7.4

%

 

Equipment lease financing

 

253,659

 

 

236,388

 

 

238,349

 

 

247,776

 

 

 

256,248

 

 

7.3

%

 

(1.0

)%

 

Other(1)

 

42,476

 

 

36,277

 

 

15,558

 

 

(6,773

)

 

 

(14,677

)

 

17.1

%

 

N/M

 

 

Net loans before PPP

 

18,522,326

 

 

18,157,004

 

 

17,785,508

 

 

17,563,535

 

 

 

17,382,167

 

 

2.0

%

 

6.6

%

 

PPP

 

114,849

 

 

226,114

 

 

435,042

 

 

850,618

 

 

 

1,524,389

 

 

(49.2

)%

 

(92.5

)%

 

Total Net Loans

$

18,637,175

 

$

18,383,118

 

$

18,220,550

 

$

18,414,153

 

 

$

18,906,556

 

 

1.4

%

 

(1.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

7,647,618

 

$

7,431,235

 

$

7,516,656

 

$

7,439,644

 

 

$

7,203,696

 

 

2.9

%

 

6.2

%

 

Interest-bearing demand

 

5,597,975

 

 

5,664,987

 

 

5,933,780

 

 

6,168,908

 

 

 

5,979,855

 

 

(1.2

)%

 

(6.4

)%

 

Savings

 

6,425,634

 

 

6,436,548

 

 

6,413,638

 

 

6,392,537

 

 

 

6,280,629

 

 

(0.2

)%

 

2.3

%

 

Total demand and savings

 

19,671,227

 

 

19,532,770

 

 

19,864,074

 

 

20,001,089

 

 

 

19,464,180

 

 

0.7

%

 

1.1

%

 

Brokered

 

244,200

 

 

250,350

 

 

256,192

 

 

270,168

 

 

 

297,815

 

 

(2.5

)%

 

(18.0

)%

 

Time

 

1,608,286

 

 

1,697,063

 

 

1,756,672

 

 

1,852,223

 

 

 

2,003,606

 

 

(5.2

)%

 

(19.7

)%

 

Total Deposits

$

21,523,713

 

$

21,480,183

 

$

21,876,938

 

$

22,123,480

 

 

$

21,765,601

 

 

0.2

%

 

(1.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer funding

$

443,970

 

$

423,949

 

$

474,022

 

$

494,811

 

 

$

514,025

 

 

4.7

%

 

(13.6

) %

 

Federal funds purchased

 

2,857

 

 

 

 

 

 

 

 

 

 

 

N/M

 

N/M

 

Short-term FHLB advances and other borrowings

 

11

 

 

 

 

 

 

 

 

 

 

 

N/M

 

N/M

 

Total Short-Term borrowings

$

446,838

 

$

423,949

 

$

474,022

 

$

494,811

 

 

$

514,025

 

 

5.4

%

 

(13.1

)%

(1) Consists of overdrafts and net origination fees and costs.

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

 

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

 

Six months ended June 30

 

 

 

2022

 

2021

 

 

 

Average

 

Interest

 

Yield/

 

Average

 

Interest

 

Yield/

 

 

 

Balance

 

(1)

 

Rate

 

Balance

 

(1)

 

Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

Net loans

 

$

18,510,845

 

 

$

316,809

 

 

3.44

%

 

$

18,943,367

 

 

$

321,987

 

 

3.42

%

 

Taxable investment securities

 

 

3,127,199

 

 

 

32,144

 

 

1.69

%

 

 

2,534,821

 

 

 

27,588

 

 

2.00

%

 

Tax-exempt investment securities

 

 

1,185,668

 

 

 

18,168

 

 

3.06

%

 

 

936,531

 

 

 

14,651

 

 

3.12

%

 

Equity securities

 

 

 

 

 

 

 

%

 

 

 

 

 

 

 

%

 

Total Investment Securities

 

 

4,312,867

 

 

 

50,312

 

 

2.33

%

 

 

3,471,352

 

 

 

42,239

 

 

2.43

%

 

Loans held for sale

 

 

20,862

 

 

 

501

 

 

4.80

%

 

 

42,647

 

 

 

671

 

 

3.14

%

 

Other interest-earning assets

 

 

1,097,326

 

 

 

2,394

 

 

0.44

%

 

 

1,825,966

 

 

 

2,711

 

 

0.19

%

 

Total Interest-Earning Assets

 

 

23,941,900

 

 

 

370,016

 

 

3.11

%

 

 

24,283,332

 

 

 

367,607

 

 

3.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Earning assets:

 

 

 

 

 

 

 

Cash and due from banks

 

 

161,274

 

 

 

 

 

 

 

125,081

 

 

 

 

 

 

Premises and equipment

 

 

218,357

 

 

 

 

 

 

 

229,843

 

 

 

 

 

 

Other assets

 

 

1,528,820

 

 

 

 

 

 

 

1,685,708

 

 

 

 

 

 

Less: ACL - loans(2)

 

 

(250,026

)

 

 

 

 

 

 

(273,965

)

 

 

 

 

 

Total Assets

 

$

25,600,325

 

 

 

 

 

 

$

26,049,999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing liabilities:

 

 

 

 

 

 

 

Demand deposits

 

$

5,631,296

 

 

$

1,525

 

 

0.06

%

 

$

5,906,423

 

 

$

2,092

 

 

0.07

%

 

Savings deposits

 

 

6,431,060

 

 

 

2,146

 

 

0.07

%

 

 

6,209,253

 

 

 

2,890

 

 

0.09

%

 

Brokered deposits

 

 

247,258

 

 

 

835

 

 

0.68

%

 

 

311,016

 

 

 

647

 

 

0.42

%

 

Time deposits

 

 

1,652,430

 

 

 

6,895

 

 

0.84

%

 

 

2,076,681

 

 

 

11,955

 

 

1.16

%

 

Total Interest-Bearing Deposits

 

 

13,962,044

 

 

 

11,401

 

 

0.16

%

 

 

14,503,373

 

 

 

17,584

 

 

0.24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

 

435,457

 

 

 

311

 

 

0.14

%

 

 

542,243

 

 

 

325

 

 

0.12

%

 

Long-term borrowings

 

 

583,283

 

 

 

11,447

 

 

3.92

%

 

 

947,203

 

 

 

16,853

 

 

3.56

%

 

Total Interest-Bearing Liabilities

 

 

14,980,784

 

 

 

23,159

 

 

0.31

%

 

 

15,992,819

 

 

 

34,762

 

 

0.44

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Bearing liabilities:

 

 

 

 

 

 

 

Demand deposits

 

 

7,540,025

 

 

 

 

 

 

 

6,939,731

 

 

 

 

 

 

Other

 

 

469,861

 

 

 

 

 

 

 

464,104

 

 

 

 

 

 

Total Liabilities

 

 

22,990,670

 

 

 

 

 

 

 

23,396,654

 

 

 

 

 

 

Total Deposits/Cost of Deposits

 

 

21,502,069

 

 

 

 

0.11

%

 

 

21,443,104

 

 

 

 

0.17

%

 

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

 

 

22,520,809

 

 

 

 

0.21

%

 

 

22,932,550

 

 

 

 

0.30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

2,609,655

 

 

 

 

 

 

 

2,653,345

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$

25,600,325

 

 

 

 

 

 

$

26,049,999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

346,857

 

 

2.91

%

 

 

 

 

332,845

 

 

2.76

%

 

Tax equivalent adjustment

 

 

 

 

(6,716

)

 

 

 

 

 

 

(5,998

)

 

 

 

Net Interest Income

 

 

 

$

340,141

 

 

 

 

 

 

$

326,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

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

(2)

"ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION

 

 

 

 

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):

dollars in thousands

 

 

 

 

 

 

 

 

 

Six months ended June 30

 

 

 

 

2022

 

 

2021

 

 

% Change

Loans, by type:

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,318,422

 

$

7,153,444

 

 

2.3

%

 

Commercial and industrial

 

4,015,709

 

 

3,976,758

 

 

1.0

%

 

Real estate - residential mortgage

 

3,970,877

 

 

3,290,726

 

 

20.7

%

 

Real estate - home equity

 

1,125,257

 

 

1,157,289

 

 

(2.8

)%

 

Real estate - construction

 

1,164,785

 

 

1,054,593

 

 

10.4

%

 

Consumer

 

461,159

 

 

455,241

 

 

1.3

%

 

Equipment lease financing

 

245,071

 

 

261,300

 

 

(6.2

)%

 

Other(1)

 

39,391

 

 

(12,081

)

 

N/M

 

 

Net loans before PPP

 

18,340,671

 

 

17,337,270

 

 

5.8

%

 

PPP

 

170,174

 

 

1,606,097

 

 

(89.4

)%

 

Total Net Loans

$

18,510,845

 

$

18,943,367

 

 

(2.3

)%

 

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

 

Noninterest-bearing demand

$

7,540,025

 

$

6,939,731

 

 

8.7

%

 

Interest-bearing demand

 

5,631,296

 

 

5,906,423

 

 

(4.7

)%

 

Savings

 

6,431,060

 

 

6,209,253

 

 

3.6

%

 

Total demand and savings

 

19,602,381

 

 

19,055,407

 

 

2.9

%

 

Brokered

 

247,258

 

 

311,016

 

 

(20.5

)%

 

Time

 

1,652,430

 

 

2,076,681

 

 

(20.4

)%

 

Total Deposits

$

21,502,069

 

$

21,443,104

 

 

0.3

%

 

 

 

 

 

 

 

Short-term borrowings, by type:

 

 

 

 

 

 

Customer funding

 

434,015

 

 

542,243

 

 

(20.0

)%

 

Federal funds purchased

 

1,436

 

 

 

 

N/M

 

 

Short-term FHLB advances and other borrowings

 

6

 

 

 

 

N/M

 

 

Total Short-Term Borrowings

$

435,457

 

$

542,243

 

 

(19.7

)%

N/M - Not meaningful

(1) Consists of overdrafts and net origination fees and costs.

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

 

 

 

ASSET QUALITY INFORMATION (UNAUDITED)

 

 

 

 

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six Month Ended

 

 

 

June 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

June 30

 

June 30

 

 

 

2022

 

2022

 

2021

 

2021

 

2021

 

2022

 

2021

 

Allowance for credit losses related to net loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$

243,705

 

 

$

249,001

 

 

$

256,727

 

 

$

255,032

 

 

$

265,986

 

 

$

249,001

 

 

$

277,567

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

(201

)

 

 

(227

)

 

 

(9,417

)

 

 

(647

)

 

 

(954

)

 

 

(428

)

 

 

(5,273

)

 

 

Real estate - commercial mortgage

 

 

 

 

(152

)

 

 

(369

)

 

 

(14

)

 

 

(6,506

)

 

 

(152

)

 

 

(8,343

)

 

 

Consumer and home equity

 

(877

)

 

 

(1,052

)

 

 

(828

)

 

 

(504

)

 

 

(1,130

)

 

 

(1,929

)

 

 

(1,977

)

 

 

Real estate - residential mortgage

 

(66

)

 

 

 

 

 

 

 

 

(602

)

 

 

(496

)

 

 

(66

)

 

 

(688

)

 

 

Real estate - construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(39

)

 

 

Equipment lease financing and other

 

(474

)

 

 

(469

)

 

 

(380

)

 

 

(467

)

 

 

(436

)

 

 

(943

)

 

 

(1,404

)

 

 

Total loans charged off

 

(1,618

)

 

 

(1,900

)

 

 

(10,994

)

 

 

(2,234

)

 

 

(9,522

)

 

 

(3,518

)

 

 

(17,724

)

 

Recoveries of loans previously charged off:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

739

 

 

 

1,980

 

 

 

5,795

 

 

 

2,330

 

 

 

693

 

 

 

2,719

 

 

 

1,462

 

 

 

Real estate - commercial mortgage

 

3,536

 

 

 

112

 

 

 

1,007

 

 

 

564

 

 

 

729

 

 

 

3,648

 

 

 

903

 

 

 

Consumer and home equity

 

762

 

 

 

454

 

 

 

767

 

 

 

504

 

 

 

634

 

 

 

1,216

 

 

 

1,074

 

 

 

Real estate - residential mortgage

 

92

 

 

 

222

 

 

 

89

 

 

 

86

 

 

 

105

 

 

 

314

 

 

 

200

 

 

 

Real estate - construction

 

12

 

 

 

32

 

 

 

77

 

 

 

697

 

 

 

254

 

 

 

44

 

 

 

638

 

 

 

Equipment lease financing and other

 

226

 

 

 

154

 

 

 

283

 

 

 

358

 

 

 

153

 

 

 

380

 

 

 

312

 

 

 

Recoveries of loans previously charged off

 

5,367

 

 

 

2,954

 

 

 

8,018

 

 

 

4,539

 

 

 

2,568

 

 

 

8,321

 

 

 

4,589

 

 

Net loans recovered (charged off)

 

3,749

 

 

 

1,054

 

 

 

(2,976

)

 

 

2,305

 

 

 

(6,954

)

 

 

4,803

 

 

 

(13,135

)

 

Provision for credit losses

 

1,110

 

 

 

(6,350

)

 

 

(4,750

)

 

 

(610

)

 

 

(4,000

)

 

 

(5,240

)

 

 

(9,400

)

 

Balance at end of period

$

248,564

 

 

$

243,705

 

 

$

249,001

 

 

$

256,727

 

 

$

255,032

 

 

$

248,564

 

 

$

255,032

 

 

Net (recoveries) charge offs to average loans (annualized)

 

(0.08

)%

 

 

(0.02

)%

 

 

0.07

%

 

 

(0.05

)%

 

 

0.15

%

 

 

(0.05

)%

 

 

0.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance credit losses related to OBS Credit Exposures(1)

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$

13,933

 

 

$

14,533

 

 

$

14,783

 

 

$

14,773

 

 

$

14,273

 

 

 

 

 

 

 

Provision for credit losses

 

390

 

 

 

(600

)

 

 

(250

)

 

 

10

 

 

 

500

 

 

 

 

 

 

 

Balance at end of period

$

14,323

 

 

$

13,933

 

 

$

14,533

 

 

$

14,783

 

 

$

14,773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

$

162,530

 

 

$

136,799

 

 

$

143,666

 

 

$

138,833

 

 

$

147,864

 

 

 

 

 

 

 

Loans 90 days past due and accruing

 

11,016

 

 

 

24,182

 

 

 

8,453

 

 

 

11,389

 

 

 

5,865

 

 

 

 

 

 

 

Total non-performing loans

 

173,546

 

 

 

160,981

 

 

 

152,119

 

 

 

150,222

 

 

 

153,729

 

 

 

 

 

 

 

Other real estate owned

 

4,786

 

 

 

2,014

 

 

 

1,817

 

 

 

1,896

 

 

 

2,779

 

 

 

 

 

 

 

Total non-performing assets

$

178,332

 

 

$

162,995

 

 

$

153,936

 

 

$

152,118

 

 

$

156,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING LOANS, BY TYPE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

44,713

 

 

$

30,193

 

 

$

30,629

 

 

$

32,697

 

 

$

33,522

 

 

 

 

 

 

 

Real estate - commercial mortgage

 

59,940

 

 

 

64,190

 

 

 

54,044

 

 

 

52,100

 

 

 

53,693

 

 

 

 

 

 

 

Real estate - residential mortgage

 

42,922

 

 

 

39,308

 

 

 

39,399

 

 

 

37,077

 

 

 

38,185

 

 

 

 

 

 

 

Consumer and home equity

 

10,552

 

 

 

11,465

 

 

 

11,505

 

 

 

11,509

 

 

 

11,408

 

 

 

 

 

 

 

Real estate - construction

 

1,357

 

 

 

672

 

 

 

901

 

 

 

965

 

 

 

1,016

 

 

 

 

 

 

 

Equipment lease financing and other

 

14,062

 

 

 

15,153

 

 

 

15,641

 

 

 

15,874

 

 

 

15,905

 

 

 

 

 

 

 

Total non-performing loans

$

173,546

 

 

$

160,981

 

 

$

152,119

 

 

$

150,222

 

 

$

153,729

 

 

 

 

 

 

(1) The allowance for credit losses related to OBS Credit Exposures is presented in "other liabilities" on the consolidated balance sheets.

FULTON FINANCIAL CORPORATION

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

in thousands, except per share data and percentages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Explanatory note:

This press release contains supplemental financial information, as detailed below, that 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

 

 

 

 

 

 

 

June 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

 

 

 

 

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

Common shareholders' equity (tangible), per share

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

$

2,471,093

 

 

$

2,569,535

 

 

$

2,712,680

 

 

$

2,699,818