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Fulton Financial Corporation Announces Second Quarter 2023 Results

Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $77.0 million, or $0.46 per diluted share, for the second quarter of 2023, an increase of $11.3 million, or 17.2%, in comparison to the first quarter of 2023. Operating net income available to common shareholders was $77.8 million, or $0.47 per diluted share(1).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230718487757/en/

For the six months ended June 30, 2023, net income available to shareholders was $142.8 million, or $0.85 per diluted share, an increase of $13.6 million, or 10.6%, in comparison to the same period in 2022. Operating net income available to common shareholders was $143.9 million, or $0.86 per diluted share(1).

"We were pleased with our second quarter performance and results," said Curtis J. Myers, Chairman and CEO of Fulton. "We saw credit metrics remain stable and credit losses return to historically low levels, strong non-interest income in many areas of our bank, and loan growth was solid and in line with expectations. Despite the challenges around deposit growth and mix the industry is facing, we meaningfully grew both deposit accounts and deposit households during the quarter."

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

Net Interest Income and Balance Sheet

Net interest income for the second quarter of 2023 was $212.9 million, a decrease of $2.7 million in comparison to the first quarter of 2023. The net interest margin for the second quarter of 2023 decreased 13 basis points, to 3.40%, in comparison to 3.53% in the first quarter of 2023.

The linked-quarter decrease in net interest income was primarily due to an increase in the rate on interest-bearing deposits and a shift in funding mix from noninterest-bearing demand deposits to interest-bearing deposits. An increase in the average balance for net loans of $403.1 million and higher loan yields in the second quarter of 2023 primarily contributed to an increase in interest income of $25.1 million to $314.9 million in comparison to $289.8 million in the first quarter of 2023. Interest expense from interest-bearing liabilities for the second quarter of 2023 increased by $27.9 million to $102.1 million in comparison to $74.2 million in the first quarter of 2023. The linked-quarter increase in interest expense in the second quarter of 2023 was primarily due to an increase in the rate on interest-bearing deposits of 63 basis points, a decline of $620.7 million in the average balance of noninterest-bearing deposits and an increase in the average balance for interest-bearing deposits of $1.3 billion in comparison to the first quarter of 2023.

For the second quarter of 2023, net interest income was $212.9 million, an increase of $34.0 million, or 19.0%, in comparison to the second quarter of 2022. Interest income for the second quarter of 2023 increased by $124.6 million to $314.9 million in comparison to $190.3 million in the second quarter of 2022 primarily driven by rising interest rates resulting in increases in interest income from net loans, investment securities and other interest-earning assets of $120.5 million, $1.2 million and $2.9 million, respectively. Increases in the average balances for net loans in the second quarter of 2023 of $2.2 billion, driven in part by the Prudential Bancorp, Inc. ("Prudential Bancorp") acquisition, contributed to the increase in interest income. Interest expense from interest-bearing liabilities for the second quarter of 2023 increased by $90.6 million to $102.1 million in comparison to $11.5 million in the second quarter of 2022 primarily driven by rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings and other interest-bearing liabilities of $64.0 million and $26.6 million, respectively. An increase in the average balance for higher rate interest-bearing deposits and borrowings and other interest-bearing liabilities of $1.3 billion and $1.8 billion, respectively, in the second quarter of 2023 in comparison to the second quarter of 2022 also contributed to the increase in interest expense.

Total average interest-earning assets for the second quarter of 2023 were $25.6 billion, an increase of $384.0 million from the first quarter of 2023 primarily driven by the aforementioned increase in average net loans of $403.1 million and an increase in average other interest-earning assets of $36.5 million, partially offset by a decrease in average investment securities of $55.5 million.

Total average interest-earning assets for the second quarter of 2023 increased by $1.6 billion from the second quarter of 2022. Average net loans for the second quarter of 2023 were $20.9 billion, an increase of $2.2 billion from the same period in 2022. Compared to the second quarter of 2022, average other interest-earning assets decreased $421.9 million and average investment securities decreased $164.3 million in the second quarter of 2023.

Total average interest-bearing liabilities increased $1.0 billion, to $18.0 billion, in the second quarter of 2023 in comparison to $17.0 billion in the first quarter of 2023 driven by an increase in the average balance for total interest-bearing deposits of $1.3 billion, partially offset by a decrease in the average balance for borrowings and other interest-bearing liabilities of $0.3 billion.

Total average interest-bearing liabilities for the second quarter of 2023 increased $3.1 billion, to $18.0 billion, in comparison to $14.9 billion in the second quarter of 2022, driven by increases in the average balances for borrowings and other interest-bearing liabilities and total interest-bearing deposits of $1.8 billion and $1.3 billion, respectively.

Asset Quality

In the second quarter of 2023, a provision for credit losses of $9.7 million was recorded in comparison to a provision for credit losses of $24.5 million in the first quarter of 2023, and a provision for credit losses of $1.5 million in the second quarter of 2022. The provision for credit losses of $9.7 million recorded in the second quarter of 2023 was primarily due to loan growth and the macroeconomic outlook.

Non-performing assets were $151.6 million, or 0.55% of total assets, at June 30, 2023, in comparison to $167.9 million, or 0.62% of total assets, at March 31, 2023, and $178.3 million, or 0.71% of total assets, at June 30, 2022.

Net charge-offs for the second quarter of 2023 were 0.04% of total average loans in comparison to 0.27% and negative 0.08% in the first quarter of 2023 and the second quarter of 2022, respectively.

Non-interest Income

Non-interest income before investment securities gains in the second quarter of 2023 was $60.6 million, an increase of $8.9 million, or 17.1%, from the first quarter of 2023. The increase in non-interest income was primarily due to an increase in commercial banking income of $5.6 million, driven by increases in commercial customer interest rate swap fee income, reflected in capital markets, and merchant and card income of $3.6 million and $0.9 million, respectively. In addition, increases from mortgage banking, wealth management, higher income from equity method investments, reflected in other non-interest income, and consumer banking of $1.0 million, $0.6 million, $0.6 million and $0.5 million, respectively, contributed to the increase in non-interest income in the second quarter of 2023.

Compared to the second quarter of 2022, non-interest income before investment securities gains in the second quarter of 2023 increased $2.2 million, or 3.8%, from $58.4 million. The increase in non-interest income was primarily due to increases in commercial customer interest rate swap fee income, reflected in capital markets, and merchant and card income of $2.1 million and $0.3 million, respectively.

Non-interest Expense

Non-interest expense was $168.0 million in the second quarter of 2023, an increase of $8.4 million, or 5.3%, compared to $159.6 million in the first quarter of 2023. The increase was primarily due to increases of $4.8 million in salaries and employee benefits expense, $1.0 million in data processing and software expense and $0.7 million in other outside services expense. Additional contributors to the increase in non-interest expense were increases of $1.3 million in owned real estate and repossession expenses and $0.5 million in state tax expense, in each case, reflected in other expense. The $4.8 million increase in salaries and benefits expense was primarily driven by annual merit increases and one additional calendar day in the quarter.

Compared to the second quarter of 2022, non-interest expense, excluding merger-related expenses of $1.0 million in the second quarter of 2022, increased $19.3 million, or 13.0%. The increase was primarily due to increases of $8.7 million in salaries and employee benefits expense, $2.1 million in other outside services expense, $2.1 million in data processing and software expense, $1.9 million in FDIC insurance expense, primarily due to the adoption of a final rule to increase base deposit insurance assessment rates effective January 1, 2023, $0.9 million in intangible amortization expense and $0.8 million in net occupancy expense. Higher expense levels compared to the second quarter of 2022 are in part due to the Prudential Bancorp acquisition. The $8.7 million increase in salaries and benefits expense was primarily driven by annual merit increases, an increase in the number of employees, employee benefits due to higher claims experience and higher pension costs.

Income Tax Expense

For the second quarter of 2023, the effective tax rate was 16.8%, in comparison to 17.3% for the full-year of 2022.

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, 2022, Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov).

Non-GAAP Financial Measures

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

FULTON FINANCIAL CORPORATION

SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)

(dollars in thousands, except per share data)

 

Three months ended

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

 

2023

 

2023

 

2022

 

2022

 

2022

 

Ending Balances

 

 

 

 

 

 

 

 

 

 

Investment securities

$

3,867,334

 

 

$

3,950,101

 

 

$

3,968,023

 

 

$

3,936,694

 

 

$

4,117,801

 

 

Net loans

 

21,044,685

 

 

 

20,670,188

 

 

 

20,279,547

 

 

 

19,695,199

 

 

 

18,920,950

 

 

Total assets

 

27,403,163

 

 

 

27,112,176

 

 

 

26,931,702

 

 

 

26,146,042

 

 

 

25,252,686

 

 

Deposits

 

21,206,540

 

 

 

21,316,584

 

 

 

20,649,538

 

 

 

21,376,554

 

 

 

21,143,866

 

 

Shareholders' equity

 

2,642,152

 

 

 

2,618,998

 

 

 

2,579,757

 

 

 

2,471,159

 

 

 

2,471,093

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances

 

 

 

 

 

 

 

 

 

 

Investment securities

 

3,916,130

 

 

 

3,964,615

 

 

 

3,936,579

 

 

 

4,254,216

 

 

 

4,216,507

 

 

Net loans

 

20,866,235

 

 

 

20,463,096

 

 

 

20,004,513

 

 

 

19,563,825

 

 

 

18,637,175

 

 

Total assets

 

27,235,567

 

 

 

26,900,653

 

 

 

26,386,355

 

 

 

26,357,095

 

 

 

25,578,432

 

 

Deposits

 

21,207,143

 

 

 

20,574,323

 

 

 

21,027,656

 

 

 

21,788,052

 

 

 

21,523,713

 

 

Shareholders' equity

 

2,647,464

 

 

 

2,613,316

 

 

 

2,489,148

 

 

 

2,604,057

 

 

 

2,531,346

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement

 

 

 

 

 

 

 

 

 

 

Net interest income

 

212,852

 

 

 

215,587

 

 

 

225,911

 

 

 

215,582

 

 

 

178,831

 

 

Provision for credit losses

 

9,747

 

 

 

24,544

 

 

 

14,513

 

 

 

18,958

 

 

 

1,500

 

 

Non-interest income

 

60,585

 

 

 

51,753

 

 

 

54,321

 

 

 

59,162

 

 

 

58,391

 

 

Non-interest expense

 

168,018

 

 

 

159,616

 

 

 

168,462

 

 

 

169,558

 

 

 

149,730

 

 

Income before taxes

 

95,672

 

 

 

83,180

 

 

 

97,257

 

 

 

86,228

 

 

 

85,992

 

 

Net income available to common shareholders

 

77,045

 

 

 

65,752

 

 

 

79,271

 

 

 

68,309

 

 

 

67,427

 

 

Pre-provision net revenue(1)

 

106,495

 

 

 

108,375

 

 

 

115,049

 

 

 

113,631

 

 

 

89,384

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (basic)

$

0.46

 

 

$

0.39

 

 

$

0.47

 

 

$

0.41

 

 

$

0.42

 

 

Net income available to common shareholders (diluted)

$

0.46

 

 

$

0.39

 

 

$

0.47

 

 

$

0.40

 

 

$

0.42

 

 

Operating net income available to common shareholders(1)

$

0.47

 

 

$

0.39

 

 

$

0.48

 

 

$

0.48

 

 

$

0.42

 

 

Cash dividends

$

0.16

 

 

$

0.15

 

 

$

0.21

 

 

$

0.15

 

 

$

0.15

 

 

Common shareholders' equity

$

14.75

 

 

$

14.67

 

 

$

14.24

 

 

$

13.61

 

 

$

14.15

 

 

Common shareholders' equity (tangible)(1)

$

11.36

 

 

$

11.26

 

 

$

10.90

 

 

$

10.26

 

 

$

10.81

 

 

Weighted average shares (basic)

 

165,854

 

 

 

166,605

 

 

 

167,504

 

 

 

167,353

 

 

 

160,920

 

 

Weighted average shares (diluted)

 

167,191

 

 

 

168,401

 

 

 

169,136

 

 

 

168,781

 

 

 

162,075

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

 

2023

 

2023

 

2022

 

2022

 

2022

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to average loans

 

0.04

%

 

 

0.27

%

 

 

0.23

%

 

 

0.01

%

 

 

(0.08

)%

 

Non-performing loans to total net loans

 

0.70

%

 

 

0.80

%

 

 

0.85

%

 

 

0.98

%

 

 

0.92

%

 

Non-performing assets to total assets

 

0.55

%

 

 

0.62

%

 

 

0.66

%

 

 

0.76

%

 

 

0.71

%

 

ACL - loans(1) to total loans

 

1.37

%

 

 

1.35

%

 

 

1.33

%

 

 

1.35

%

 

 

1.31

%

 

ACL - loans(1) to non-performing loans

 

195

%

 

 

169

%

 

 

157

%

 

 

138

%

 

 

143

%

 

 

 

 

 

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.17

%

 

 

1.03

%

 

 

1.23

%

 

 

1.07

%

 

 

1.10

%

 

Operating return on average assets(2)

 

1.18

%

 

 

1.04

%

 

 

1.26

%

 

 

1.25

%

 

 

1.11

%

 

Return on average common shareholders' equity

 

12.59

%

 

 

11.02

%

 

 

13.70

%

 

 

11.24

%

 

 

11.57

%

 

Return on average common shareholders' equity (tangible)(2)

 

16.52

%

 

 

14.46

%

 

 

18.59

%

 

 

17.31

%

 

 

15.23

%

 

Net interest margin

 

3.40

%

 

 

3.53

%

 

 

3.69

%

 

 

3.54

%

 

 

3.04

%

 

Efficiency ratio(2)

 

60.1

%

 

 

58.5

%

 

 

58.1

%

 

 

57.8

%

 

 

61.4

%

 

Non-interest expenses to total average assets

 

2.47

%

 

 

2.41

%

 

 

2.53

%

 

 

2.55

%

 

 

2.35

%

 

Operating non-interest expenses to total average assets(2)

 

2.46

%

 

 

2.40

%

 

 

2.48

%

 

 

2.43

%

 

 

2.32

%

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

Tangible common equity ratio ("TCE")(2)

 

7.0

%

 

 

7.0

%

 

 

6.9

%

 

 

6.7

%

 

 

7.0

%

 

TCE ratio, (excluding AOCI)(2)(3)

 

8.3

%

 

 

8.3

%

 

 

8.2

%

 

 

8.3

%

 

 

8.2

%

 

Tier 1 leverage ratio(4)

 

9.3

%

 

 

9.2

%

 

 

9.5

%

 

 

9.2

%

 

 

9.1

%

 

Common equity Tier 1 capital ratio(4)

 

10.1

%

 

 

9.8

%

 

 

10.0

%

 

 

10.0

%

 

 

9.9

%

 

Tier 1 risk-based capital ratio(4)

 

10.9

%

 

 

10.6

%

 

 

10.9

%

 

 

10.9

%

 

 

10.8

%

 

Total risk-based capital ratio(4)

 

13.7

%

 

 

13.4

%

 

 

13.6

%

 

 

13.6

%

 

 

13.7

%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

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

 

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

 

(4) Regulatory capital ratios as of June 30, 2023 are preliminary and prior periods are actual.

 

 

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

 

2023

 

2023

 

2022

 

2022

 

2022

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

123,779

 

 

$

129,003

 

 

$

126,898

 

 

$

143,465

 

 

$

158,605

 

 

Other interest-earning assets

 

505,141

 

 

 

545,355

 

 

 

685,209

 

 

 

467,164

 

 

 

383,715

 

 

Loans held for sale

 

14,673

 

 

 

6,507

 

 

 

7,264

 

 

 

14,411

 

 

 

17,528

 

 

Investment securities

 

3,867,334

 

 

 

3,950,101

 

 

 

3,968,023

 

 

 

3,936,694

 

 

 

4,117,801

 

 

Net loans

 

21,044,685

 

 

 

20,670,188

 

 

 

20,279,547

 

 

 

19,695,199

 

 

 

18,920,950

 

 

Less: ACL - loans(1)

 

(287,442

)

 

 

(278,695

)

 

 

(269,366

)

 

 

(266,838

)

 

 

(248,564

)

 

Loans, net

 

20,757,243

 

 

 

20,391,493

 

 

 

20,010,181

 

 

 

19,428,361

 

 

 

18,672,386

 

 

Net premises and equipment

 

216,322

 

 

 

216,059

 

 

 

225,141

 

 

 

221,496

 

 

 

211,639

 

 

Accrued interest receivable

 

96,991

 

 

 

90,267

 

 

 

91,579

 

 

 

72,821

 

 

 

64,457

 

 

Goodwill and intangible assets

 

561,885

 

 

 

563,502

 

 

 

560,824

 

 

 

561,495

 

 

 

537,700

 

 

Other assets

 

1,259,795

 

 

 

1,219,889

 

 

 

1,256,583

 

 

 

1,300,135

 

 

 

1,088,855

 

 

Total Assets

$

27,403,163

 

 

$

27,112,176

 

 

$

26,931,702

 

 

$

26,146,042

 

 

$

25,252,686

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Deposits

$

21,206,540

 

 

$

21,316,584

 

 

$

20,649,538

 

 

$

21,376,554

 

 

$

21,143,866

 

 

Borrowings

 

2,719,114

 

 

 

2,446,770

 

 

 

2,871,207

 

 

 

1,424,681

 

 

 

1,013,315

 

 

Other liabilities

 

835,357

 

 

 

729,824

 

 

 

831,200

 

 

 

873,648

 

 

 

624,412

 

 

Total Liabilities

 

24,761,011

 

 

 

24,493,178

 

 

 

24,351,945

 

 

 

23,674,883

 

 

 

22,781,593

 

 

Shareholders' equity

 

2,642,152

 

 

 

2,618,998

 

 

 

2,579,757

 

 

 

2,471,159

 

 

 

2,471,093

 

 

Total Liabilities and Shareholders' Equity

$

27,403,163

 

 

$

27,112,176

 

 

$

26,931,702

 

 

$

26,146,042

 

 

$

25,252,686

 

 

 

 

 

 

 

 

 

 

 

 

LOANS, DEPOSITS AND BORROWINGS DETAIL:

 

 

 

 

 

 

Loans, by type:

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,846,861

 

 

$

7,746,920

 

 

$

7,693,835

 

 

$

7,554,509

 

 

$

7,417,036

 

 

Commercial and industrial

 

4,599,759

 

 

 

4,596,096

 

 

 

4,473,004

 

 

 

4,240,865

 

 

 

4,170,975

 

 

Real estate - residential mortgage

 

5,147,262

 

 

 

4,880,919

 

 

 

4,737,279

 

 

 

4,574,228

 

 

 

4,203,827

 

 

Real estate - home equity

 

1,061,891

 

 

 

1,074,712

 

 

 

1,102,838

 

 

 

1,110,103

 

 

 

1,108,808

 

 

Real estate - construction

 

1,308,564

 

 

 

1,326,754

 

 

 

1,269,925

 

 

 

1,273,097

 

 

 

1,177,446

 

 

Consumer

 

763,530

 

 

 

730,775

 

 

 

699,179

 

 

 

633,666

 

 

 

538,747

 

 

Leases and other loans(2)

 

316,818

 

 

 

314,012

 

 

 

303,487

 

 

 

308,731

 

 

 

304,111

 

 

Total Net Loans

$

21,044,685

 

 

$

20,670,188

 

 

$

20,279,547

 

 

$

19,695,199

 

 

$

18,920,950

 

Deposits, by type:

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

5,865,855

 

 

$

6,403,484

 

 

$

7,006,388

 

 

$

7,372,896

 

 

$

7,530,777

 

 

Interest-bearing demand

 

5,543,320

 

 

 

5,478,237

 

 

 

5,410,903

 

 

 

5,676,600

 

 

 

5,403,805

 

 

Savings

 

6,646,448

 

 

 

6,579,806

 

 

 

6,434,621

 

 

 

6,563,003

 

 

 

6,406,051

 

 

Total demand and savings

 

18,055,623

 

 

 

18,461,527

 

 

 

18,851,912

 

 

 

19,612,499

 

 

 

19,340,633

 

 

Brokered

 

949,259

 

 

 

960,919

 

 

 

208,416

 

 

 

226,883

 

 

 

243,172

 

 

Time

 

2,201,658

 

 

 

1,894,138

 

 

 

1,589,210

 

 

 

1,537,172

 

 

 

1,560,061

 

 

Total Deposits

$

21,206,540

 

 

$

21,316,584

 

 

$

20,649,538

 

 

$

21,376,554

 

 

$

21,143,866

 

Borrowings, by type:

 

 

 

 

 

 

 

 

 

Federal funds purchased

$

555,000

 

 

$

525,000

 

 

$

191,000

 

 

$

136,000

 

 

$

20,000

 

 

Federal Home Loan Bank advances

 

1,165,000

 

 

 

747,000

 

 

 

1,250,000

 

 

 

265,500

 

 

 

 

 

Senior debt and subordinated debt

 

539,994

 

 

 

539,814

 

 

 

539,634

 

 

 

539,461

 

 

 

555,748

 

 

Other borrowings

 

459,120

 

 

 

634,956

 

 

 

890,573

 

 

 

483,720

 

 

 

437,567

 

 

Total Borrowings

$

2,719,114

 

 

$

2,446,770

 

 

$

2,871,207

 

 

$

1,424,681

 

 

$

1,013,315

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(2) Includes equipment lease financing, overdraft and net origination fees and costs.

 

 

 

 

 

 

 

 

 

 

 

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(dollars in thousands, except per share)

 

 

 

Three Months Ended

 

Six months ended

 

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Jun 30

 

 

 

2023

 

2023

 

2022

 

2022

 

2022

 

2023

 

2022

Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

314,912

 

 

$

289,820

 

 

$

267,847

 

 

$

233,691

 

 

$

190,299

 

 

$

604,732

 

 

$

363,300

 

 

Interest expense

 

 

102,060

 

 

 

74,233

 

 

 

41,936

 

 

 

18,109

 

 

 

11,468

 

 

 

176,293

 

 

 

23,159

 

 

Net Interest Income

 

 

212,852

 

 

 

215,587

 

 

 

225,911

 

 

 

215,582

 

 

 

178,831

 

 

 

428,439

 

 

 

340,141

 

 

Provision for credit losses

 

 

9,747

 

 

 

24,544

 

 

 

14,513

 

 

 

18,958

 

 

 

1,500

 

 

 

34,291

 

 

 

(5,450

)

 

Net Interest Income after Provision

 

 

203,105

 

 

 

191,043

 

 

 

211,398

 

 

 

196,624

 

 

 

177,331

 

 

 

394,148

 

 

 

345,591

 

Non-Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth management

 

 

18,678

 

 

 

18,062

 

 

 

17,531

 

 

 

17,610

 

 

 

18,274

 

 

 

36,740

 

 

 

37,702

 

 

Commercial banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchant and card

 

 

7,700

 

 

 

6,834

 

 

 

7,223

 

 

 

7,601

 

 

 

7,355

 

 

 

14,534

 

 

 

13,452

 

 

Cash management

 

 

5,835

 

 

 

5,515

 

 

 

5,756

 

 

 

6,483

 

 

 

6,062

 

 

 

11,350

 

 

 

11,490

 

 

Capital markets

 

 

6,092

 

 

 

2,344

 

 

 

2,627

 

 

 

4,060

 

 

 

3,893

 

 

 

8,436

 

 

 

5,569

 

 

Other commercial banking

 

 

3,518

 

 

 

2,820

 

 

 

2,998

 

 

 

2,664

 

 

 

3,049

 

 

 

6,338

 

 

 

5,856

 

 

Total commercial banking

 

 

23,145

 

 

 

17,513

 

 

 

18,604

 

 

 

20,808

 

 

 

20,359

 

 

 

40,658

 

 

 

36,367

 

 

Consumer banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Card

 

 

6,592

 

 

 

6,243

 

 

 

6,331

 

 

 

6,278

 

 

 

6,067

 

 

 

12,835

 

 

 

11,863

 

 

Overdraft

 

 

2,696

 

 

 

2,733

 

 

 

3,364

 

 

 

4,463

 

 

 

3,881

 

 

 

5,429

 

 

 

7,653

 

 

Other consumer banking

 

 

2,432

 

 

 

2,241

 

 

 

2,380

 

 

 

2,534

 

 

 

2,524

 

 

 

4,673

 

 

 

4,630

 

 

Total consumer banking

 

 

11,720

 

 

 

11,217

 

 

 

12,075

 

 

 

13,275

 

 

 

12,472

 

 

 

22,937

 

 

 

24,146

 

 

Mortgage banking

 

 

2,940

 

 

 

1,970

 

 

 

2,140

 

 

 

3,720

 

 

 

3,768

 

 

 

4,910

 

 

 

8,344

 

 

Other

 

 

4,106

 

 

 

2,968

 

 

 

3,972

 

 

 

3,802

 

 

 

3,510

 

 

 

7,075

 

 

 

7,061

 

 

Non-interest income before investment securities gains (losses)

 

 

60,589

 

 

 

51,730

 

 

 

54,322

 

 

 

59,215

 

 

 

58,383

 

 

 

112,320

 

 

 

113,620

 

 

Investment securities gains (losses), net

 

 

(4

)

 

 

23

 

 

 

(1

)

 

 

(53

)

 

 

8

 

 

 

19

 

 

 

27

 

 

Total Non-Interest Income

 

 

60,585

 

 

 

51,753

 

 

 

54,321

 

 

 

59,162

 

 

 

58,391

 

 

 

112,339

 

 

 

113,647

 

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

94,102

 

 

 

89,283

 

 

 

92,733

 

 

 

94,283

 

 

 

85,404

 

 

 

183,385

 

 

 

169,868

 

 

Data processing and software

 

 

16,776

 

 

 

15,796

 

 

 

15,448

 

 

 

15,807

 

 

 

14,685

 

 

 

32,571

 

 

 

29,000

 

 

Net occupancy

 

 

14,374

 

 

 

14,438

 

 

 

14,061

 

 

 

14,025

 

 

 

13,587

 

 

 

28,812

 

 

 

28,109

 

 

Other outside services

 

 

10,834

 

 

 

10,126

 

 

 

10,860

 

 

 

9,361

 

 

 

8,764

 

 

 

20,960

 

 

 

16,931

 

 

FDIC insurance

 

 

4,895

 

 

 

4,795

 

 

 

3,219

 

 

 

3,158

 

 

 

2,961

 

 

 

9,690

 

 

 

6,170

 

 

Equipment

 

 

3,530

 

 

 

3,389

 

 

 

3,640

 

 

 

3,548

 

 

 

3,422

 

 

 

6,920

 

 

 

6,845

 

 

Professional fees

 

 

1,829

 

 

 

2,392

 

 

 

2,945

 

 

 

2,373

 

 

 

2,013

 

 

 

4,221

 

 

 

3,805

 

 

Marketing

 

 

1,655

 

 

 

1,886

 

 

 

2,380

 

 

 

1,859

 

 

 

1,326

 

 

 

3,541

 

 

 

2,646

 

 

Intangible amortization

 

 

1,072

 

 

 

674

 

 

 

688

 

 

 

690

 

 

 

177

 

 

 

1,746

 

 

 

353

 

 

Merger-related expenses

 

 

 

 

 

 

 

 

1,894

 

 

 

7,006

 

 

 

1,027

 

 

 

 

 

 

1,428

 

 

Other

 

 

18,951

 

 

 

16,837

 

 

 

20,594

 

 

 

17,448

 

 

 

16,364

 

 

 

35,790

 

 

 

30,553

 

 

Total Non-Interest Expense

 

 

168,018

 

 

 

159,616

 

 

 

168,462

 

 

 

169,558

 

 

 

149,730

 

 

 

327,636

 

 

 

295,708

 

 

Income Before Income Taxes

 

 

95,672

 

 

 

83,180

 

 

 

97,257

 

 

 

86,228

 

 

 

85,992

 

 

 

178,851

 

 

 

163,530

 

 

Income tax expense

 

 

16,065

 

 

 

14,866

 

 

 

15,424

 

 

 

15,357

 

 

 

16,003

 

 

 

30,931

 

 

 

29,253

 

 

Net Income

 

 

79,607

 

 

 

68,314

 

 

 

81,833

 

 

 

70,871

 

 

 

69,989

 

 

 

147,920

 

 

 

134,277

 

 

Preferred stock dividends

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(2,562

)

 

 

(5,124

)

 

 

(5,124

)

 

Net Income Available to Common Shareholders

 

$

77,045

 

 

$

65,752

 

 

$

79,271

 

 

$

68,309

 

 

$

67,427

 

 

$

142,796

 

 

$

129,153

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Jun 30

 

 

 

2023

 

2023

 

2022

 

2022

 

2022

 

2023

 

2022

PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.46

 

 

$

0.39

 

 

$

0.47

 

 

$

0.41

 

 

$

0.42

 

 

$

0.86

 

 

$

0.80

 

 

Diluted

 

$

0.46

 

 

$

0.39

 

 

$

0.47

 

 

$

0.40

 

 

$

0.42

 

 

$

0.85

 

 

$

0.80

 

 

Cash dividends

 

$

0.16

 

 

$

0.15

 

 

$

0.21

 

 

$

0.15

 

 

$

0.15

 

 

$

0.31

 

 

$

0.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

 

165,854

 

 

 

166,605

 

 

 

167,504

 

 

 

167,353

 

 

 

160,920

 

 

 

166,227

 

 

 

160,755

 

 

Weighted average shares (diluted)

 

 

167,191

 

 

 

168,401

 

 

 

169,136

 

 

 

168,781

 

 

 

162,075

 

 

 

167,809

 

 

 

162,015

 

 

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

(dollars in thousands)

 

 

Three months ended

 

 

June 30, 2023

 

March 31, 2023

 

June 30, 2022

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

 

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans

$

20,866,235

 

 

$

287,154

 

 

5.52

%

 

$

20,463,096

 

 

$

263,065

 

 

5.21

%

 

$

18,637,175

 

 

$

165,682

 

 

3.56

%

 

Investment securities(2)

 

4,234,096

 

 

 

27,303

 

 

2.57

%

 

 

4,289,643

 

 

 

27,522

 

 

2.60

%

 

 

4,398,424

 

 

 

26,061

 

 

2.37

%

 

Other interest-earning assets

 

529,582

 

 

 

4,860

 

 

3.68

%

 

 

493,130

 

 

 

3,648

 

 

3.00

%

 

 

951,504

 

 

 

1,983

 

 

0.83

%

 

Total Interest-Earning Assets

 

25,629,913

 

 

 

319,317

 

 

4.99

%

 

 

25,245,869

 

 

 

294,235

 

 

4.73

%

 

 

23,987,103

 

 

 

193,726

 

 

3.24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

129,682

 

 

 

 

 

 

 

141,254

 

 

 

 

 

 

 

160,240

 

 

 

 

 

 

Premises and equipment

 

216,847

 

 

 

 

 

 

 

223,025

 

 

 

 

 

 

 

216,798

 

 

 

 

 

 

Other assets

 

1,541,657

 

 

 

 

 

 

 

1,563,806

 

 

 

 

 

 

 

1,463,332

 

 

 

 

 

 

Less: ACL - loans(3)

 

(282,532

)

 

 

 

 

 

 

(273,301

)

 

 

 

 

 

 

(249,041

)

 

 

 

 

 

Total Assets

$

27,235,567

 

 

 

 

 

 

$

26,900,653

 

 

 

 

 

 

$

25,578,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

5,535,669

 

 

$

14,612

 

 

1.06

%

 

$

5,326,566

 

 

$

8,455

 

 

0.64

%

 

$

5,597,975

 

 

$

797

 

 

0.06

%

 

Savings deposits

 

6,632,572

 

 

 

29,289

 

 

1.77

%

 

 

6,469,468

 

 

 

20,535

 

 

1.29

%

 

 

6,425,634

 

 

 

1,125

 

 

0.07

%

 

Brokered deposits

 

954,773

 

 

 

12,135

 

 

5.10

%

 

 

439,670

 

 

 

5,173

 

 

4.77

%

 

 

244,200

 

 

 

619

 

 

1.02

%

 

Time deposits

 

2,063,038

 

 

 

13,763

 

 

2.68

%

 

 

1,696,878

 

 

 

7,458

 

 

1.78

%

 

 

1,608,286

 

 

 

3,255

 

 

0.81

%

 

Total Interest-Bearing Deposits

 

15,186,052

 

 

 

69,799

 

 

1.84

%

 

 

13,932,582

 

 

 

41,621

 

 

1.21

%

 

 

13,876,095

 

 

 

5,796

 

 

0.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings and other interest-bearing liabilities

 

2,790,860

 

 

 

32,261

 

 

4.60

%

 

 

3,058,684

 

 

 

32,613

 

 

4.32

%

 

 

1,003,830

 

 

 

5,672

 

 

2.27

%

 

Total Interest-Bearing Liabilities

 

17,976,912

 

 

 

102,060

 

 

2.27

%

 

 

16,991,266

 

 

 

74,234

 

 

1.78

%

 

 

14,879,925

 

 

 

11,468

 

 

0.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

6,021,091

 

 

 

 

 

 

 

6,641,741

 

 

 

 

 

 

 

7,647,618

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

590,100

 

 

 

 

 

 

 

654,330

 

 

 

 

 

 

 

519,543

 

 

 

 

 

 

Total Liabilities

 

24,588,103

 

 

 

 

 

 

 

24,287,337

 

 

 

 

 

 

 

23,047,086

 

 

 

 

 

 

Total Deposits/Cost of Deposits

 

21,207,143

 

 

 

 

1.32

%

 

 

20,574,323

 

 

 

 

0.82

%

 

 

21,523,713

 

 

 

 

0.11

%

 

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

 

23,998,003

 

 

 

 

1.70

%

 

 

23,633,007

 

 

 

 

1.27

%

 

 

22,527,543

 

 

 

 

0.20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

2,647,464

 

 

 

 

 

 

 

2,613,316

 

 

 

 

 

 

 

2,531,346

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

$

27,235,567

 

 

 

 

 

 

$

26,900,653

 

 

 

 

 

 

$

25,578,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

217,257

 

 

3.40

%

 

 

 

 

220,001

 

 

3.53

%

 

 

 

 

182,258

 

 

3.04

%

 

Tax equivalent adjustment

 

 

 

(4,405

)

 

 

 

 

 

 

(4,414

)

 

 

 

 

 

 

(3,427

)

 

 

 

Net Interest Income

 

 

$

212,852

 

 

 

 

 

 

$

215,587

 

 

 

 

 

 

$

178,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

(2) Balances include amortized historical cost for available for sale ("AFS") securities. The related unrealized holding gains (losses) are included in other assets.

 

(3) "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 BORROWINGS DETAIL (UNAUDITED):

(dollars in thousands)

 

 

Three months ended

 

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

 

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

 

2022

 

Loans, by type:

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,775,436

 

$

7,720,975

 

$

7,696,997

 

$

7,566,259

 

$

7,340,417

 

 

Commercial and industrial

 

4,629,919

 

 

4,565,923

 

 

4,372,935

 

 

4,250,573

 

 

4,155,436

 

 

Real estate - residential mortgage

 

5,008,295

 

 

4,790,868

 

 

4,643,784

 

 

4,485,649

 

 

4,052,666

 

 

Real estate - home equity

 

1,066,615

 

 

1,086,032

 

 

1,106,325

 

 

1,099,487

 

 

1,118,494

 

 

Real estate - construction

 

1,306,286

 

 

1,276,145

 

 

1,209,998

 

 

1,268,590

 

 

1,188,932

 

 

Consumer

 

763,407

 

 

721,248

 

 

679,108

 

 

604,634

 

 

485,095

 

 

Leases and other loans(1)

 

316,277

 

 

301,905

 

 

295,366

 

 

288,633

 

 

296,135

 

 

Total Net Loans

$

20,866,235

 

$

20,463,096

 

$

20,004,513

 

$

19,563,825

 

$

18,637,175

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

6,021,091

 

$

6,641,741

 

$

7,310,824

 

$

7,535,791

 

$

7,647,618

 

 

Interest-bearing demand

 

5,535,669

 

 

5,326,566

 

 

5,479,443

 

 

5,708,059

 

 

5,597,975

 

 

Savings

 

6,632,572

 

 

6,469,468

 

 

6,466,775

 

 

6,681,713

 

 

6,425,634

 

 

Total demand and savings

 

18,189,332

 

 

18,437,775

 

 

19,257,042

 

 

19,925,563

 

 

19,671,227

 

 

Brokered

 

954,773

 

 

439,670

 

 

215,729

 

 

247,105

 

 

244,200

 

 

Time

 

2,063,038

 

 

1,696,878

 

 

1,554,885

 

 

1,615,384

 

 

1,608,286

 

 

Total Deposits

$

21,207,143

 

$

20,574,323

 

$

21,027,656

 

$

21,788,052

 

$

21,523,713

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings, by type:

 

 

 

 

 

 

 

 

 

 

 

Federal funds purchased

$

679,401

 

$

505,142

 

$

261,737

 

$

96,965

 

$

2,857

 

 

Federal Home Loan Bank advances

 

880,811

 

 

1,261,589

 

 

564,692

 

 

206,152

 

 

 

 

Senior debt and subordinated debt

 

539,906

 

 

539,726

 

 

539,550

 

 

554,735

 

 

555,701

 

 

Other borrowings and other interest-bearing liabilities

 

690,742

 

 

752,227

 

 

659,543

 

 

501,496

 

 

445,261

 

 

Total Borrowings

$

2,790,860

 

$

3,058,684

 

$

2,025,522

 

$

1,359,348

 

$

1,003,819

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes equipment lease financing, overdraft and net origination fees and costs.

 

 

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

(dollars in thousands)

 

 

 

Six months ended June 30

 

 

 

 

2023

 

2022

 

 

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

 

 

 

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

Net loans

 

$

20,665,779

 

 

$

550,219

 

 

5.36

%

 

$

18,510,845

 

 

$

316,809

 

 

3.44

%

 

 

Investment securities(2)

 

 

4,261,718

 

 

 

54,824

 

 

2.57

%

 

 

4,312,867

 

 

 

50,312

 

 

2.33

%

 

 

Other interest-earning assets

 

 

511,456

 

 

 

8,508

 

 

3.34

%

 

 

1,118,188

 

 

 

2,895

 

 

0.52

%

 

 

Total Interest-Earning Assets

 

 

25,438,953

 

 

 

613,551

 

 

4.85

%

 

 

23,941,900

 

 

 

370,016

 

 

3.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Earning assets:

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

135,436

 

 

 

 

 

 

 

161,274

 

 

 

 

 

 

 

Premises and equipment

 

 

219,920

 

 

 

 

 

 

 

218,357

 

 

 

 

 

 

 

Other assets

 

 

1,552,669

 

 

 

 

 

 

 

1,528,820

 

 

 

 

 

 

 

Less: ACL - loans(3)

 

 

(277,942

)

 

 

 

 

 

 

(250,026

)

 

 

 

 

 

 

Total Assets

 

$

27,069,036

 

 

 

 

 

 

$

25,600,325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing liabilities:

 

 

 

 

 

 

 

 

Demand deposits

 

$

5,431,696

 

 

$

23,067

 

 

0.86

%

 

$

5,631,296

 

 

$

1,525

 

 

0.06

%

 

 

Savings deposits

 

 

6,551,470

 

 

 

49,824

 

 

1.53

%

 

 

6,431,060

 

 

 

2,146

 

 

0.07

%

 

 

Brokered deposits

 

 

698,644

 

 

 

17,308

 

 

5.00

%

 

 

247,258

 

 

 

835

 

 

0.68

%

 

 

Time deposits

 

 

1,880,970

 

 

 

21,221

 

 

2.28

%

 

 

1,652,430

 

 

 

6,895

 

 

0.84

%

 

 

Total Interest-Bearing Deposits

 

 

14,562,780

 

 

 

111,420

 

 

1.54

%

 

 

13,962,044

 

 

 

11,401

 

 

0.16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings and other interest-bearing liabilities

 

 

2,928,819

 

 

 

64,873

 

 

4.43

%

 

 

1,018,740

 

 

 

11,758

 

 

2.31

%

 

 

Total Interest-Bearing Liabilities

 

 

17,491,599

 

 

 

176,293

 

 

2.03

%

 

 

14,980,784

 

 

 

23,159

 

 

0.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Bearing liabilities:

 

 

 

 

 

 

 

 

Demand deposits

 

 

6,329,701

 

 

 

 

 

 

 

7,540,025

 

 

 

 

 

 

 

Other

 

 

617,252

 

 

 

 

 

 

 

469,861

 

 

 

 

 

 

 

Total Liabilities

 

 

24,438,552

 

 

 

 

 

 

 

22,990,670

 

 

 

 

 

 

 

Total Deposits/Cost of Deposits

 

 

20,892,481

 

 

 

 

1.08

%

 

 

21,502,069

 

 

 

 

0.11

%

 

 

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

 

 

23,821,300

 

 

 

 

1.49

%

 

 

22,520,809

 

 

 

 

0.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

2,630,484

 

 

 

 

 

 

 

2,609,655

 

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$

27,069,036

 

 

 

 

 

 

$

25,600,325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

437,258

 

 

3.46

%

 

 

 

 

346,857

 

 

2.91

%

 

 

Tax equivalent adjustment

 

 

 

 

(8,819

)

 

 

 

 

 

 

(6,716

)

 

 

 

 

Net Interest Income

 

 

 

$

428,439

 

 

 

 

 

 

$

340,141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

(2) Balances include amortized historical cost for AFS. The related unrealized holding gains (losses) are included in other assets.

 

 

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

 

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED):

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Six months ended June 30

 

 

 

 

2023

 

2022

 

Loans, by type:

 

 

 

 

 

 

Real estate - commercial mortgage

 

$

7,748,356

 

$

7,318,422

 

 

Commercial and industrial

 

 

4,598,097

 

 

4,185,883

 

 

Real estate - residential mortgage

 

 

4,900,182

 

 

3,970,877

 

 

Real estate - home equity

 

 

1,076,270

 

 

1,125,257

 

 

Real estate - construction

 

 

1,291,299

 

 

1,164,785

 

 

Consumer

 

 

742,445

 

 

461,159

 

 

Leases and other loans(1)

 

 

309,130

 

 

284,462

 

 

Total Net Loans

 

$

20,665,779

 

$

18,510,845

 

 

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

 

Noninterest-bearing demand

 

$

6,329,701

 

$

7,540,025

 

 

Interest-bearing demand

 

 

5,431,696

 

 

5,631,296

 

 

Savings

 

 

6,551,470

 

 

6,431,060

 

 

Total demand and savings

 

 

18,312,867

 

 

19,602,381

 

 

Brokered

 

 

698,644

 

 

247,258

 

 

Time

 

 

1,880,970

 

 

1,652,430

 

 

Total Deposits

 

$

20,892,481

 

$

21,502,069

 

 

 

 

 

 

 

 

Borrowings, by type:

 

 

 

 

 

 

Federal funds purchased

 

$

592,753

 

$

1,436

 

 

Federal Home Loan Bank advances

 

 

1,070,148

 

 

6

 

 

Senior debt and subordinated debt

 

 

539,817

 

 

582,184

 

 

Other borrowings

 

 

726,101

 

 

435,114

 

 

Total Borrowings

 

$

2,928,819

 

$

1,018,740

 

 

 

 

 

 

 

 

N/M - Not meaningful

 

 

 

 

 

(1) Includes equipment lease financing, overdraft and net origination fees and costs.

 

FULTON FINANCIAL CORPORATION

ASSET QUALITY INFORMATION (UNAUDITED)

(dollars in thousands)

 

 

Three months ended

 

Six Months Ended

 

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Jun 30

 

Jun 30

 

 

 

2023

 

2023

 

2022

 

2022

 

2022

 

2023

 

2022

 

Allowance for credit losses related to net loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$

278,695

 

 

$

269,366

 

 

$

266,838

 

 

$

248,564

 

 

$

243,705

 

 

$

269,366

 

 

$

249,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CECL Day 1 provision expense

 

 

 

 

 

 

 

 

 

 

7,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Initial purchased credit deteriorated loans

 

 

 

 

 

 

 

 

 

 

1,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

 

(230

)

 

 

(13,362

)

 

 

(12,235

)

 

 

(86

)

 

 

 

 

 

(13,592

)

 

 

(152

)

 

 

Commercial and industrial

 

(2,017

)

 

 

(612

)

 

 

(179

)

 

 

(1,783

)

 

 

(201

)

 

 

(2,629

)

 

 

(428

)

 

 

Real estate - residential mortgage

 

(62

)

 

 

 

 

 

 

 

 

 

 

 

(66

)

 

 

(62

)

 

 

(66

)

 

 

Consumer and home equity

 

(1,313

)

 

 

(2,206

)

 

 

(1,311

)

 

 

(1,172

)

 

 

(877

)

 

 

(3,519

)

 

 

(1,929

)

 

 

Real estate - construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leases and other loans(1)

 

(1,165

)

 

 

(723

)

 

 

(505

)

 

 

(683

)

 

 

(474

)

 

 

(1,888

)

 

 

(943

)

 

 

Total loans charged off

 

(4,787

)

 

 

(16,903

)

 

 

(14,230

)

 

 

(3,724

)

 

 

(1,618

)

 

 

(21,690

)

 

 

(3,518

)

 

Recoveries of loans previously charged off:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

 

29

 

 

 

786

 

 

 

183

 

 

 

29

 

 

 

3,536

 

 

 

815

 

 

 

3,648

 

 

 

Commercial and industrial

 

988

 

 

 

1,086

 

 

 

961

 

 

 

2,213

 

 

 

739

 

 

 

2,074

 

 

 

2,719

 

 

 

Real estate - residential mortgage

 

58

 

 

 

48

 

 

 

10

 

 

 

101

 

 

 

92

 

 

 

106

 

 

 

314

 

 

 

Consumer and home equity

 

959

 

 

 

661

 

 

 

683

 

 

 

682

 

 

 

762

 

 

 

1,620

 

 

 

1,216

 

 

 

Real estate - construction

 

569

 

 

 

202

 

 

 

530

 

 

 

 

 

 

12

 

 

 

771

 

 

 

44

 

 

 

Leases and other loans(1)

 

213

 

 

 

116

 

 

 

132

 

 

 

247

 

 

 

226

 

 

 

329

 

 

 

380

 

 

 

Recoveries of loans previously charged off

 

2,816

 

 

 

2,899

 

 

 

2,499

 

 

 

3,272

 

 

 

5,367

 

 

 

5,715

 

 

 

8,321

 

 

Net loans recovered (charged off)

 

(1,971

)

 

 

(14,004

)

 

 

(11,731

)

 

 

(452

)

 

 

3,749

 

 

 

(15,975

)

 

 

4,803

 

 

Provision for credit losses

 

10,718

 

 

 

23,333

 

 

 

14,259

 

 

 

9,637

 

 

 

1,110

 

 

 

34,051

 

 

 

(5,240

)

 

Balance at end of period

$

287,442

 

 

$

278,695

 

 

$

269,366

 

 

$

266,838

 

 

$

248,564

 

 

$

287,442

 

 

$

248,564

 

 

Net (recoveries) charge-offs to average loans

 

0.04

%

 

 

0.27

%

 

 

0.23

%

 

 

0.01

%

 

 

(0.08

)%

 

 

0.15

%

 

 

(0.05

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses related to OBS Credit Exposures

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

$

(971

)

 

$

1,211

 

 

$

254

 

 

$

1,367

 

 

$

390

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

$

123,280

 

 

$

134,303

 

 

$

144,443

 

 

$

178,204

 

 

$

162,530

 

 

 

 

 

 

 

Loans 90 days past due and accruing

 

24,415

 

 

 

30,336

 

 

 

27,463

 

 

 

14,559

 

 

 

11,016

 

 

 

 

 

 

 

Total non-performing loans

 

147,695

 

 

 

164,639

 

 

 

171,906

 

 

 

192,763

 

 

 

173,546

 

 

 

 

 

 

 

Other real estate owned

 

3,881

 

 

 

3,304

 

 

 

5,790

 

 

 

5,877

 

 

 

4,786

 

 

 

 

 

 

 

Total non-performing assets

$

151,576

 

 

$

167,943

 

 

$

177,696

 

 

$

198,640

 

 

$

178,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING LOANS, BY TYPE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

55,048

 

 

$

61,322

 

 

$

72,634

 

 

$

96,281

 

 

$

59,940

 

 

 

 

 

 

 

Commercial and industrial

 

30,588

 

 

 

33,555

 

 

 

28,288

 

 

 

29,831

 

 

 

44,713

 

 

 

 

 

 

 

Real estate - residential mortgage

 

39,157

 

 

 

46,576

 

 

 

46,509

 

 

 

41,597

 

 

 

42,922

 

 

 

 

 

 

 

Consumer and home equity

 

10,469

 

 

 

8,983

 

 

 

9,800

 

 

 

10,016

 

 

 

10,552

 

 

 

 

 

 

 

Real estate - construction

 

1,099

 

 

 

1,509

 

 

 

1,368

 

 

 

1,456

 

 

 

1,357

 

 

 

 

 

 

 

Leases and other loans(1)

 

11,334

 

 

 

12,694

 

 

 

13,307

 

 

 

13,582

 

 

 

14,062

 

 

 

 

 

 

 

Total non-performing loans

$

147,695

 

 

$

164,639

 

 

$

171,906

 

 

$

192,763

 

 

$

173,546

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes equipment lease financin