Attached files
file | filename |
---|---|
EX-99.3 - PRESENTATION MATERIALS TO BE DISCUSSED DURING THE CONFERENCE CALL AND WEBCAST - FULTON FINANCIAL CORP | q2ccslides.htm |
EX-99.1 - PRESS RELEASE DATED JULY 17, 2018 - FULTON FINANCIAL CORP | exhibit9916-30x18.htm |
8-K - 8-K - FULTON FINANCIAL CORP | a8-k6x30x18.htm |
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||||||
dollars in thousands, except per-share data and percentages | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | ||||||||||||||||
2018 | 2018 | 2017 | 2017 | 2017 | ||||||||||||||||
Ending Balances | ||||||||||||||||||||
Investments | $ | 2,593,283 | $ | 2,592,823 | $ | 2,547,956 | $ | 2,561,516 | $ | 2,488,699 | ||||||||||
Loans, net of unearned income | 15,792,969 | 15,696,284 | 15,768,247 | 15,486,899 | 15,346,617 | |||||||||||||||
Total assets | 20,172,539 | 19,948,941 | 20,036,905 | 20,062,860 | 19,647,435 | |||||||||||||||
Deposits | 15,599,799 | 15,477,103 | 15,797,532 | 16,141,780 | 15,357,361 | |||||||||||||||
Shareholders' equity | 2,245,785 | 2,235,493 | 2,229,857 | 2,225,786 | 2,191,770 | |||||||||||||||
Average Balances | ||||||||||||||||||||
Investments | $ | 2,601,705 | $ | 2,556,986 | $ | 2,566,337 | $ | 2,523,758 | $ | 2,488,684 | ||||||||||
Loans, net of unearned income | 15,768,377 | 15,661,032 | 15,560,185 | 15,392,067 | 15,127,205 | |||||||||||||||
Total assets | 20,063,375 | 19,876,093 | 20,072,579 | 19,872,726 | 19,300,975 | |||||||||||||||
Deposits | 15,517,424 | 15,420,312 | 16,056,789 | 15,875,469 | 15,089,104 | |||||||||||||||
Shareholders' equity | 2,246,904 | 2,224,615 | 2,237,031 | 2,215,389 | 2,181,189 | |||||||||||||||
Income Statement | ||||||||||||||||||||
Net interest income | $ | 156,067 | $ | 151,318 | $ | 149,413 | $ | 146,809 | $ | 141,563 | ||||||||||
Provision for credit losses | 33,117 | 3,970 | 6,730 | 5,075 | 6,700 | |||||||||||||||
Non-interest income | 49,094 | 45,875 | 56,956 | 51,974 | 52,371 | |||||||||||||||
Non-interest expense | 133,345 | 136,661 | 138,452 | 132,157 | 132,695 | |||||||||||||||
Income before taxes | 38,699 | 56,562 | 61,187 | 61,551 | 54,539 | |||||||||||||||
Net income | 35,197 | 49,480 | 34,001 | 48,905 | 45,467 | |||||||||||||||
Pre-provision net revenue(1) | 73,449 | 62,150 | 69,361 | 65,532 | 62,954 | |||||||||||||||
Per Share | ||||||||||||||||||||
Net income (basic) | $ | 0.20 | $ | 0.28 | $ | 0.19 | $ | 0.28 | $ | 0.26 | ||||||||||
Net income (diluted) | 0.20 | 0.28 | 0.19 | 0.28 | 0.26 | |||||||||||||||
Cash dividends | 0.12 | 0.12 | 0.14 | 0.11 | 0.11 | |||||||||||||||
Tangible common equity(1) | 9.75 | 9.71 | 9.70 | 9.68 | 9.50 | |||||||||||||||
Weighted average shares (basic) | 175,764 | 175,303 | 175,132 | 174,991 | 174,597 | |||||||||||||||
Weighted average shares (diluted) | 176,844 | 176,568 | 176,374 | 176,216 | 175,532 | |||||||||||||||
Asset Quality | ||||||||||||||||||||
Net charge-offs to average loans (annualized) | 1.01% | 0.10% | 0.14 | % | 0.14 | % | 0.11 | % | ||||||||||||
Non-performing loans to total loans | 0.78% | 0.86% | 0.85 | % | 0.88 | % | 0.88 | % | ||||||||||||
Non-performing assets to total assets | 0.67% | 0.73% | 0.72 | % | 0.73 | % | 0.75 | % | ||||||||||||
Allowance for credit losses to loans outstanding | 1.07% | 1.12% | 1.12 | % | 1.13 | % | 1.14 | % | ||||||||||||
Allowance for loan losses to loans outstanding | 0.99 | % | 1.04 | % | 1.08 | % | 1.11 | % | 1.12 | % | ||||||||||
Allowance for credit losses to non-performing loans | 136.77% | 130.73% | 130.67 | % | 128.05 | % | 128.92 | % | ||||||||||||
Allowance for loan losses to non-performing loans | 126.11% | 121.22% | 126.08 | % | 126.22 | % | 126.96 | % | ||||||||||||
Non-performing assets to tangible shareholders' equity and allowance for credit losses(1) | 7.16% | 7.73% | 7.71 | % | 7.87 | % | 8.02 | % | ||||||||||||
Total delinquency rate | 1.18% | 1.19% | 1.24 | % | 1.28 | % | 1.20 | % | ||||||||||||
Profitability | ||||||||||||||||||||
Return on average assets | 0.70 | % | 1.01 | % | 0.67 | % | 0.98 | % | 0.94 | % | ||||||||||
Return on average shareholders' equity | 6.28% | 9.02% | 6.03 | % | 8.76 | % | 8.36 | % | ||||||||||||
Return on average shareholders' equity (tangible)(1) | 8.23% | 11.85% | 7.91 | % | 11.52 | % | 11.06 | % | ||||||||||||
Net interest margin | 3.39 | % | 3.35 | % | 3.29 | % | 3.27 | % | 3.29 | % | ||||||||||
Efficiency ratio(1) | 63.29% | 67.48% | 64.24 | % | 64.30 | % | 65.33 | % | ||||||||||||
Capital Ratios | ||||||||||||||||||||
Tangible common equity ratio(1) | 8.73 | % | 8.78 | % | 8.71 | % | 8.67 | % | 8.68 | % | ||||||||||
Tier 1 leverage ratio(2) | 9.20% | 9.20% | 8.93 | % | 8.97 | % | 9.06 | % | ||||||||||||
Common equity Tier 1 capital ratio(2) | 10.60 | % | 10.70 | % | 10.38 | % | 10.42 | % | 10.25 | % | ||||||||||
Tier 1 capital ratio(2) | 10.60 | % | 10.70% | 10.38 | % | 10.42 | % | 10.25 | % | |||||||||||
Total risk-based capital ratio(2) | 13.20 | % | 13.30% | 13.02 | % | 13.09 | % | 12.95 | % | |||||||||||
Financial information, as adjusted (3) | ||||||||||||||||||||
Net income | $ | 49,635 | ||||||||||||||||||
Net income per share, diluted | $ | 0.28 | ||||||||||||||||||
Return on average assets | 0.98 | % | ||||||||||||||||||
Return on average shareholders' equity | 8.80 | % | ||||||||||||||||||
Return on average shareholders' equity (tangible) | 11.55 | % | ||||||||||||||||||
(1) Please refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this document. | ||||||||||||||||||||
(2) Regulatory capital ratios as of June 30, 2018 are preliminary and remaining periods are actual. | ||||||||||||||||||||
(3)Excluding the re-measurement of net deferred tax assets of $15.6 million, which is considered a Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the page titled “Reconciliation of Non-GAAP Measures" at the end of this document. | ||||||||||||||||||||
Exhibit 99.2 | ||||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||
% Change from | ||||||||||||||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Jun 30 | ||||||||||||||||||||
2018 | 2018 | 2017 | 2017 | 2017 | 2018 | 2017 | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||
Cash and due from banks | $ | 99,742 | $ | 100,151 | $ | 108,291 | $ | 99,803 | $ | 94,938 | (0.4 | )% | 5.1 | % | ||||||||||||
Other interest-earning assets | 364,802 | 267,806 | 354,566 | 645,796 | 392,842 | 36.2 | % | (7.1 | )% | |||||||||||||||||
Loans held for sale | 35,898 | 23,450 | 31,530 | 23,049 | 62,354 | 53.1 | % | (42.4 | )% | |||||||||||||||||
Investment securities | 2,593,283 | 2,592,823 | 2,547,956 | 2,561,516 | 2,488,699 | — | % | 4.2 | % | |||||||||||||||||
Loans, net of unearned income | 15,792,969 | 15,696,284 | 15,768,247 | 15,486,899 | 15,346,617 | 0.6 | % | 2.9 | % | |||||||||||||||||
Allowance for loan losses | (156,050 | ) | (163,217 | ) | (169,910 | ) | (172,245 | ) | (172,342 | ) | (4.4 | )% | (9.5 | )% | ||||||||||||
Net loans | 15,636,919 | 15,533,067 | 15,598,337 | 15,314,654 | 15,174,275 | 0.7 | % | 3.0 | % | |||||||||||||||||
Premises and equipment | 230,195 | 230,313 | 222,802 | 221,551 | 217,558 | (0.1 | )% | 5.8 | % | |||||||||||||||||
Accrued interest receivable | 55,208 | 53,060 | 52,910 | 50,082 | 47,603 | 4.0 | % | 16.0 | % | |||||||||||||||||
Goodwill and intangible assets | 531,556 | 531,556 | 531,556 | 531,556 | 531,556 | — | % | — | % | |||||||||||||||||
Other assets | 624,936 | 616,715 | 588,957 | 614,853 | 637,610 | 1.3 | % | (2.0 | )% | |||||||||||||||||
Total Assets | $ | 20,172,539 | $ | 19,948,941 | $ | 20,036,905 | $ | 20,062,860 | $ | 19,647,435 | 1.1 | % | 2.7 | % | ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||
Deposits | $ | 15,599,799 | $ | 15,477,103 | $ | 15,797,532 | $ | 16,141,780 | $ | 15,357,361 | 0.8 | % | 1.6 | % | ||||||||||||
Short-term borrowings | 983,833 | 937,852 | 617,524 | 298,751 | 694,859 | 4.9 | % | 41.6 | % | |||||||||||||||||
Other liabilities | 351,174 | 359,994 | 353,646 | 358,384 | 365,484 | (2.5 | )% | (3.9 | )% | |||||||||||||||||
FHLB advances and long-term debt | 991,948 | 938,499 | 1,038,346 | 1,038,159 | 1,037,961 | 5.7 | % | (4.4 | )% | |||||||||||||||||
Total Liabilities | 17,926,754 | 17,713,448 | 17,807,048 | 17,837,074 | 17,455,665 | 1.2 | % | 2.7 | % | |||||||||||||||||
Shareholders' equity | 2,245,785 | 2,235,493 | 2,229,857 | 2,225,786 | 2,191,770 | 0.5 | % | 2.5 | % | |||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 20,172,539 | $ | 19,948,941 | $ | 20,036,905 | $ | 20,062,860 | $ | 19,647,435 | 1.1 | % | 2.7 | % | ||||||||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 6,304,475 | $ | 6,332,508 | $ | 6,364,804 | $ | 6,275,140 | $ | 6,262,008 | (0.4 | )% | 0.7 | % | ||||||||||||
Commercial - industrial, financial and agricultural | 4,264,602 | 4,299,072 | 4,300,297 | 4,223,075 | 4,245,849 | (0.8 | )% | 0.4 | % | |||||||||||||||||
Real estate - residential mortgage | 2,094,530 | 1,976,524 | 1,954,711 | 1,887,907 | 1,784,712 | 6.0 | % | 17.4 | % | |||||||||||||||||
Real estate - home equity | 1,491,395 | 1,514,241 | 1,559,719 | 1,567,473 | 1,579,739 | (1.5 | )% | (5.6 | )% | |||||||||||||||||
Real estate - construction | 990,705 | 976,131 | 1,006,935 | 973,108 | 938,900 | 1.5 | % | 5.5 | % | |||||||||||||||||
Consumer | 360,315 | 326,766 | 313,783 | 302,448 | 283,156 | 10.3 | % | 27.2 | % | |||||||||||||||||
Leasing and other | 286,947 | 271,042 | 267,998 | 257,748 | 252,253 | 5.9 | % | 13.8 | % | |||||||||||||||||
Total Loans, net of unearned income | $ | 15,792,969 | $ | 15,696,284 | $ | 15,768,247 | $ | 15,486,899 | $ | 15,346,617 | 0.6 | % | 2.9 | % | ||||||||||||
Deposits, by type: | ||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 4,324,659 | $ | 4,291,821 | $ | 4,437,294 | $ | 4,363,915 | $ | 4,574,619 | 0.8 | % | (5.5 | )% | ||||||||||||
Interest-bearing demand | 3,854,680 | 3,984,423 | 4,018,107 | 4,119,419 | 3,650,204 | (3.3 | )% | 5.6 | % | |||||||||||||||||
Savings and money market accounts | 4,597,510 | 4,487,277 | 4,586,746 | 4,790,985 | 4,386,128 | 2.5 | % | 4.8 | % | |||||||||||||||||
Total demand and savings | 12,776,849 | 12,763,521 | 13,042,147 | 13,274,319 | 12,610,951 | 0.1 | % | 1.3 | % | |||||||||||||||||
Brokered deposits | 161,447 | 64,195 | 90,473 | 109,936 | — | 151.5 | % | — | % | |||||||||||||||||
Time deposits | 2,661,503 | 2,649,387 | 2,664,912 | 2,757,525 | 2,746,410 | 0.5 | % | (3.1 | )% | |||||||||||||||||
Total Deposits | $ | 15,599,799 | $ | 15,477,103 | $ | 15,797,532 | $ | 16,141,780 | $ | 15,357,361 | 0.8 | % | 1.6 | % | ||||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||||||||
Customer repurchase agreements | $ | 152,594 | $ | 165,186 | $ | 172,017 | $ | 185,945 | $ | 174,224 | (7.6 | )% | (12.4 | )% | ||||||||||||
Customer short-term promissory notes | 303,239 | 342,666 | 225,507 | 106,994 | 74,366 | (11.5 | )% | N/M | ||||||||||||||||||
Short-term FHLB advances | 185,000 | 35,000 | — | — | 240,000 | N/M | (22.9 | )% | ||||||||||||||||||
Federal funds purchased | 343,000 | 395,000 | 220,000 | 5,812 | 206,269 | (13.2 | )% | 66.3 | % | |||||||||||||||||
Total Short-term Borrowings | $ | 983,833 | $ | 937,852 | $ | 617,524 | $ | 298,751 | $ | 694,859 | 4.9 | % | 41.6 | % | ||||||||||||
N/M - Not meaningful |
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | % Change from | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Jun 30 | Jun 30 | |||||||||||||||||||||||||||||||||||
2018 | 2018 | 2017 | 2017 | 2017 | 2018 | 2017 | 2018 | 2017 | % Change | |||||||||||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 186,170 | $ | 177,687 | $ | 174,987 | $ | 171,511 | $ | 163,881 | 4.8 | % | 13.6 | % | $ | 363,857 | $ | 322,368 | 12.9 | % | ||||||||||||||||||||||
Interest expense | 30,103 | 26,369 | 25,574 | 24,702 | 22,318 | 14.2 | % | 34.9 | % | 56,472 | 43,226 | 30.6 | % | |||||||||||||||||||||||||||||
Net Interest Income | 156,067 | 151,318 | 149,413 | 146,809 | 141,563 | 3.1 | % | 10.2 | % | 307,385 | 279,142 | 10.1 | % | |||||||||||||||||||||||||||||
Provision for credit losses | 33,117 | 3,970 | 6,730 | 5,075 | 6,700 | N/M | N/M | 37,087 | 11,500 | N/M | ||||||||||||||||||||||||||||||||
Net Interest Income after Provision | 122,950 | 147,348 | 142,683 | 141,734 | 134,863 | (16.6 | )% | (8.8 | )% | 270,298 | 267,642 | 1.0 | % | |||||||||||||||||||||||||||||
Non-Interest Income: | ||||||||||||||||||||||||||||||||||||||||||
Other service charges and fees: | ||||||||||||||||||||||||||||||||||||||||||
Merchant fees | 4,920 | 4,115 | 4,308 | 4,398 | 4,531 | 19.6 | % | 8.6 | % | 9,035 | 8,138 | 11.0 | % | |||||||||||||||||||||||||||||
Debit card income | 3,077 | 2,817 | 3,526 | 2,830 | 2,884 | 9.2 | % | 6.7 | % | 5,894 | 5,549 | 6.2 | % | |||||||||||||||||||||||||||||
Commercial loan interest rate swap fees | 2,393 | 1,291 | 2,914 | 1,954 | 3,768 | 85.4 | % | (36.5 | )% | 3,684 | 6,826 | (46.0 | )% | |||||||||||||||||||||||||||||
Letter of credit fees | 956 | 992 | 1,037 | 1,056 | 1,109 | (3.6 | )% | (13.8 | )% | 1,948 | 2,309 | (15.6 | )% | |||||||||||||||||||||||||||||
Foreign exchange income | 591 | 533 | 510 | 470 | 446 | 10.8 | % | 32.6 | % | 1,124 | 780 | 44.1 | % | |||||||||||||||||||||||||||||
Other | 1,728 | 1,671 | 1,534 | 1,543 | 1,604 | 3.4 | % | 7.7 | % | 3,399 | 3,177 | 7.0 | % | |||||||||||||||||||||||||||||
Total | 13,665 | 11,419 | 13,829 | 12,251 | 14,342 | 19.7 | % | (4.7 | )% | 25,084 | 26,779 | (6.3 | )% | |||||||||||||||||||||||||||||
Service charges on deposit accounts: | ||||||||||||||||||||||||||||||||||||||||||
Overdraft fees | 5,092 | 5,145 | 5,609 | 5,844 | 5,648 | (1.0 | )% | (9.8 | )% | 10,237 | 11,116 | (7.9 | )% | |||||||||||||||||||||||||||||
Cash management fees | 4,452 | 4,317 | 3,669 | 3,624 | 3,614 | 3.1 | % | 23.2 | % | 8,769 | 7,151 | 22.6 | % | |||||||||||||||||||||||||||||
Other | 2,726 | 2,500 | 3,392 | 3,554 | 3,652 | 9.0 | % | (25.4 | )% | 5,226 | 7,047 | (25.8 | )% | |||||||||||||||||||||||||||||
Total | 12,270 | 11,962 | 12,670 | 13,022 | 12,914 | 2.6 | % | (5.0 | )% | 24,232 | 25,314 | (4.3 | )% | |||||||||||||||||||||||||||||
Investment management and trust services | 12,803 | 12,871 | 13,152 | 12,157 | 12,132 | (0.5 | )% | 5.5 | % | 25,674 | 23,940 | 7.2 | % | |||||||||||||||||||||||||||||
Mortgage banking income | 5,163 | 4,193 | 4,386 | 4,805 | 6,141 | 23.1 | % | (15.9 | )% | 9,356 | 10,737 | (12.9 | )% | |||||||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||||||||||||
Credit card income | 2,866 | 2,816 | 2,778 | 2,829 | 2,666 | 1.8 | % | 7.5 | % | 5,682 | 5,314 | 6.9 | % | |||||||||||||||||||||||||||||
Small business administration lending income | 846 | 357 | 1,355 | 565 | 1,163 | 137.0 | % | (27.3 | )% | 1,203 | 1,591 | (24.4 | )% | |||||||||||||||||||||||||||||
Other income | 1,477 | 2,238 | 6,854 | 1,748 | 1,577 | (34.0 | )% | (6.3 | )% | 3,715 | 2,827 | 31.4 | % | |||||||||||||||||||||||||||||
Total | 5,189 | 5,411 | 10,987 | 5,142 | 5,406 | (4.1 | )% | (4.0 | )% | 10,600 | 9,732 | 8.9 | % | |||||||||||||||||||||||||||||
Non-Interest Income before Investment Securities Gains | 49,090 | 45,856 | 55,024 | 47,377 | 50,935 | 7.1 | % | (3.6 | )% | 94,946 | 96,502 | (1.6 | )% | |||||||||||||||||||||||||||||
Investment securities gains | 4 | 19 | 1,932 | 4,597 | 1,436 | (78.9 | )% | (99.7 | )% | 23 | 2,542 | (99.1 | )% | |||||||||||||||||||||||||||||
Total Non-Interest Income | 49,094 | 45,875 | 56,956 | 51,974 | 52,371 | 7.0 | % | (6.3 | )% | 94,969 | 99,044 | (4.1 | )% | |||||||||||||||||||||||||||||
Non-Interest Expense: | ||||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | 74,919 | 75,768 | 73,504 | 72,894 | 74,496 | (1.1 | )% | 0.6 | % | 150,687 | 143,732 | 4.8 | % | |||||||||||||||||||||||||||||
Net occupancy expense | 12,760 | 13,632 | 12,549 | 12,180 | 12,316 | (6.4 | )% | 3.6 | % | 26,392 | 24,979 | 5.7 | % | |||||||||||||||||||||||||||||
Data processing and software | 10,453 | 10,473 | 10,401 | 10,301 | 9,054 | (0.2 | )% | 15.5 | % | 20,926 | 18,033 | 16.0 | % | |||||||||||||||||||||||||||||
Other outside services | 7,568 | 8,124 | 7,665 | 6,582 | 7,708 | (6.8 | )% | (1.8 | )% | 15,692 | 13,254 | 18.4 | % | |||||||||||||||||||||||||||||
Professional fees | 2,372 | 4,816 | 3,632 | 3,388 | 2,931 | (50.7 | )% | (19.1 | )% | 7,188 | 5,668 | 26.8 | % | |||||||||||||||||||||||||||||
Equipment expense | 3,434 | 3,534 | 3,244 | 3,298 | 3,034 | (2.8 | )% | 13.2 | % | 6,968 | 6,393 | 9.0 | % | |||||||||||||||||||||||||||||
FDIC insurance expense | 2,663 | 2,953 | 3,618 | 3,007 | 2,366 | (9.8 | )% | 12.6 | % | 5,616 | 4,424 | 26.9 | % | |||||||||||||||||||||||||||||
Marketing | 2,335 | 2,250 | 1,725 | 2,089 | 2,234 | 3.8 | % | 4.5 | % | 4,585 | 4,220 | 8.6 | % | |||||||||||||||||||||||||||||
Amortization of tax credit investments | 1,637 | 1,637 | 3,376 | 3,503 | 3,151 | — | % | (48.0 | )% | 3,274 | 4,149 | (21.1 | )% | |||||||||||||||||||||||||||||
Other | 15,204 | 13,474 | 18,738 | 14,915 | 15,405 | 12.8 | % | (1.3 | )% | 28,678 | 30,118 | (4.8 | )% | |||||||||||||||||||||||||||||
Total Non-Interest Expense | 133,345 | 136,661 | 138,452 | 132,157 | 132,695 | (2.4 | )% | 0.5 | % | 270,006 | 254,970 | 5.9 | % | |||||||||||||||||||||||||||||
Income Before Income Taxes | 38,699 | 56,562 | 61,187 | 61,551 | 54,539 | (31.6 | )% | (29.0 | )% | 95,261 | 111,716 | (14.7 | )% | |||||||||||||||||||||||||||||
Income tax expense | 3,502 | 7,082 | 27,186 | 12,646 | 9,072 | (50.6 | )% | (61.4 | )% | 10,584 | 22,869 | (53.7 | )% | |||||||||||||||||||||||||||||
Net Income | $ | 35,197 | $ | 49,480 | $ | 34,001 | $ | 48,905 | $ | 45,467 | (28.9 | )% | (22.6 | )% | $ | 84,677 | $ | 88,847 | (4.7 | )% | ||||||||||||||||||||||
PER SHARE: | ||||||||||||||||||||||||||||||||||||||||||
Net income: | ||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.20 | $ | 0.28 | $ | 0.19 | $ | 0.28 | $ | 0.26 | (28.6 | )% | (23.1 | )% | $ | 0.48 | $ | 0.51 | (5.9 | )% | ||||||||||||||||||||||
Diluted | 0.20 | 0.28 | 0.19 | 0.28 | 0.26 | (28.6 | )% | (23.1 | )% | 0.48 | 0.51 | (5.9 | )% | |||||||||||||||||||||||||||||
Weighted average shares (basic) | 175,764 | 175,303 | 175,132 | 174,991 | 174,597 | 0.3 | % | 0.7 | % | 175,535 | 174,399 | 0.7 | % | |||||||||||||||||||||||||||||
Weighted average shares (diluted) | 176,844 | 176,568 | 176,374 | 176,216 | 175,532 | 0.2 | % | 0.7 | % | 176,506 | 175,579 | 0.5 | % | |||||||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||
June 30, 2018 | March 31, 2018 | June 30, 2017 | ||||||||||||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||||||||||||||
Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | ||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||
Loans, net of unearned income | $ | 15,768,377 | $ | 170,006 | 4.32% | $ | 15,661,032 | $ | 162,262 | 4.19% | $ | 15,127,205 | $ | 152,649 | 4.05% | |||||||||||||||||||
Taxable investment securities | 2,262,789 | 13,885 | 2.45% | 2,198,838 | 13,193 | 2.40% | 2,090,120 | 11,473 | 2.20% | |||||||||||||||||||||||||
Tax-exempt investment securities | 408,715 | 3,713 | 3.63% | 412,830 | 3,753 | 3.64% | 404,680 | 4,394 | 4.34% | |||||||||||||||||||||||||
Equity securities | — | — | —% | 509 | 5 | 3.93% | 10,759 | 148 | 5.52% | |||||||||||||||||||||||||
Total Investment Securities | 2,671,504 | 17,598 | 2.63% | 2,612,177 | 16,951 | 2.60% | 2,505,559 | 16,015 | 2.56% | |||||||||||||||||||||||||
Loans held for sale | 22,237 | 284 | 5.11% | 20,015 | 216 | 4.31% | 19,750 | 201 | 4.07% | |||||||||||||||||||||||||
Other interest-earning assets | 316,381 | 1,243 | 1.57% | 302,783 | 1,172 | 1.55% | 324,719 | 802 | 0.99% | |||||||||||||||||||||||||
Total Interest-earning Assets | 18,778,499 | 189,131 | 4.04% | 18,596,007 | 180,601 | 3.93% | 17,977,233 | 169,667 | 3.78% | |||||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||||
Cash and due from banks | 100,811 | 105,733 | 103,078 | |||||||||||||||||||||||||||||||
Premises and equipment | 232,048 | 230,247 | 218,075 | |||||||||||||||||||||||||||||||
Other assets | 1,112,913 | 1,113,326 | 1,174,745 | |||||||||||||||||||||||||||||||
Less: allowance for loan losses | (160,896 | ) | (169,220 | ) | (172,156 | ) | ||||||||||||||||||||||||||||
Total Assets | $ | 20,063,375 | $ | 19,876,093 | $ | 19,300,975 | ||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
Demand deposits | $ | 3,952,115 | $ | 4,959 | 0.50% | $ | 3,958,894 | $ | 4,004 | 0.41% | $ | 3,690,059 | $ | 2,780 | 0.30% | |||||||||||||||||||
Savings deposits | 4,538,083 | 5,545 | 0.49% | 4,494,445 | 4,367 | 0.39% | 4,315,495 | 2,710 | 0.25% | |||||||||||||||||||||||||
Brokered deposits | 85,242 | 396 | 1.87% | 74,026 | 276 | 1.51% | — | — | —% | |||||||||||||||||||||||||
Time deposits | 2,660,410 | 8,385 | 1.26% | 2,646,779 | 7,803 | 1.20% | 2,696,033 | 7,394 | 1.10% | |||||||||||||||||||||||||
Total Interest-bearing Deposits | 11,235,850 | 19,285 | 0.69% | 11,174,144 | 16,450 | 0.60% | 10,701,587 | 12,884 | 0.48% | |||||||||||||||||||||||||
Short-term borrowings | 1,023,160 | 3,036 | 1.18% | 896,839 | 2,041 | 0.91% | 633,102 | 974 | 0.61% | |||||||||||||||||||||||||
FHLB advances and long-term debt | 945,177 | 7,783 | 3.30% | 987,315 | 7,878 | 3.21% | 1,070,845 | 8,460 | 3.16% | |||||||||||||||||||||||||
Total Interest-bearing Liabilities | 13,204,187 | 30,104 | 0.91% | 13,058,298 | 26,369 | 0.82% | 12,405,534 | 22,318 | 0.72% | |||||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
Demand deposits | 4,281,574 | 4,246,168 | 4,387,517 | |||||||||||||||||||||||||||||||
Other | 330,710 | 347,012 | 326,735 | |||||||||||||||||||||||||||||||
Total Liabilities | 17,816,471 | 17,651,478 | 17,119,786 | |||||||||||||||||||||||||||||||
Shareholders' equity | 2,246,904 | 2,224,615 | 2,181,189 | |||||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 20,063,375 | $ | 19,876,093 | $ | 19,300,975 | ||||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 159,027 | 3.39% | 154,232 | 3.35% | 147,349 | 3.29% | ||||||||||||||||||||||||||||
Tax equivalent adjustment | (2,960 | ) | (2,914 | ) | (5,786 | ) | ||||||||||||||||||||||||||||
Net interest income | $ | 156,067 | $ | 151,318 | $ | 141,563 | ||||||||||||||||||||||||||||
(1) Three months ended June 30, 2018 and March 31, 2018 are presented on a fully taxable-equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances. Prior periods are presented on a fully taxable-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances. | ||||||||||||||||||||||||||||||||||
Note: The weighted average interest rate on total average interest-bearing liabilities and average non-interest bearing demand deposits (“cost of funds”) was 0.69%, 0.62% and 0.53% for the three months ended June 30, 2018, March 31, 2018 and June 30, 2017, respectively. | ||||||||||||||||||||||||||||||||||
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||||||||||||||||||
Three Months Ended | % Change from | |||||||||||||||||||||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Jun 30 | ||||||||||||||||||||||||||||
2018 | 2018 | 2017 | 2017 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 6,298,534 | $ | 6,305,821 | $ | 6,232,674 | $ | 6,208,630 | $ | 6,163,844 | (0.1 | )% | 2.2 | % | ||||||||||||||||||||
Commercial - industrial, financial and agricultural | 4,335,097 | 4,288,634 | 4,263,199 | 4,257,075 | 4,221,025 | 1.1 | % | 2.7 | % | |||||||||||||||||||||||||
Real estate - residential mortgage | 2,026,161 | 1,958,505 | 1,926,067 | 1,841,559 | 1,707,929 | 3.5 | % | 18.6 | % | |||||||||||||||||||||||||
Real estate - home equity | 1,502,936 | 1,538,974 | 1,560,713 | 1,569,898 | 1,587,680 | (2.3 | )% | (5.3 | )% | |||||||||||||||||||||||||
Real estate - construction | 978,327 | 984,242 | 1,004,166 | 943,029 | 897,321 | (0.6 | )% | 9.0 | % | |||||||||||||||||||||||||
Consumer | 345,572 | 315,927 | 312,320 | 318,546 | 300,967 | 9.4 | % | 14.8 | % | |||||||||||||||||||||||||
Leasing and other | 281,750 | 268,930 | 261,046 | 253,330 | 248,439 | 4.8 | % | 13.4 | % | |||||||||||||||||||||||||
Total Loans, net of unearned income | $ | 15,768,377 | $ | 15,661,032 | $ | 15,560,185 | $ | 15,392,067 | $ | 15,127,205 | 0.7 | % | 4.2 | % | ||||||||||||||||||||
Deposits, by type: | ||||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 4,281,574 | $ | 4,246,168 | $ | 4,454,456 | $ | 4,494,897 | $ | 4,387,517 | 0.8 | % | (2.4 | )% | ||||||||||||||||||||
Interest-bearing demand | 3,952,115 | 3,958,894 | 4,037,879 | 3,943,118 | 3,690,059 | (0.2 | )% | 7.1 | % | |||||||||||||||||||||||||
Savings and money market accounts | 4,538,083 | 4,494,445 | 4,752,337 | 4,603,155 | 4,315,495 | 1.0 | % | 5.2 | % | |||||||||||||||||||||||||
Total demand and savings | 12,771,772 | 12,699,507 | 13,244,672 | 13,041,170 | 12,393,071 | 0.6 | % | 3.1 | % | |||||||||||||||||||||||||
Brokered deposits | 85,242 | 74,026 | 105,135 | 89,767 | — | 15.2 | % | 100.0 | % | |||||||||||||||||||||||||
Time deposits | 2,660,410 | 2,646,779 | 2,706,982 | 2,744,532 | 2,696,033 | 0.5 | % | (1.3 | )% | |||||||||||||||||||||||||
Total Deposits | $ | 15,517,424 | $ | 15,420,312 | $ | 16,056,789 | $ | 15,875,469 | $ | 15,089,104 | 0.6 | % | 2.8 | % | ||||||||||||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||||||||||||||||
Customer repurchase agreements | $ | 162,276 | $ | 175,292 | $ | 179,948 | $ | 176,415 | $ | 199,657 | (7.4 | )% | (18.7 | )% | ||||||||||||||||||||
Customer short-term promissory notes | 316,049 | 308,725 | 195,951 | 80,147 | 77,554 | 2.4 | % | N/M | ||||||||||||||||||||||||||
Federal funds purchased | 398,297 | 379,822 | 15,374 | 90,453 | 242,375 | 4.9 | % | 64.3 | % | |||||||||||||||||||||||||
Short-term FHLB advances and other borrowings | 146,538 | 33,000 | 11 | 55,326 | 113,516 | N/M | 29.1 | % | ||||||||||||||||||||||||||
Total Short-term Borrowings | $ | 1,023,160 | $ | 896,839 | $ | 391,284 | $ | 402,341 | $ | 633,102 | 14.1 | % | 61.6 | % | ||||||||||||||||||||
N/M - Not meaningful |
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||||||
dollars in thousands | |||||||||||||||||||||||
Six Months Ended June 30 | |||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Balance | Interest (1) | Yield/Rate | Balance | Interest (1) | Yield/Rate | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans, net of unearned income | $ | 15,715,001 | $ | 332,268 | 4.26 | % | $ | 14,993,129 | $ | 299,299 | 4.02 | % | |||||||||||
Taxable investment securities | 2,230,991 | 27,078 | 2.43 | % | 2,117,733 | 23,387 | 2.21 | % | |||||||||||||||
Tax-exempt investment securities | 410,761 | 7,466 | 3.64 | % | 404,271 | 8,777 | 4.34 | % | |||||||||||||||
Equity securities | 253 | 5 | 8.30 | % | 11,247 | 324 | 5.81 | % | |||||||||||||||
Total Investment Securities | 2,642,005 | 34,549 | 2.62 | % | 2,533,251 | 32,488 | 2.57 | % | |||||||||||||||
Loans held for sale | 21,132 | 500 | 4.73 | % | 17,814 | 388 | 4.36 | % | |||||||||||||||
Other interest-earning assets | 309,620 | 2,415 | 1.56 | % | 318,542 | 1,644 | 1.03 | % | |||||||||||||||
Total Interest-earning Assets | $ | 18,687,758 | 369,732 | 3.98 | % | $ | 17,862,736 | 333,819 | 3.76 | % | |||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||
Cash and due from banks | 103,258 | 109,766 | |||||||||||||||||||||
Premises and equipment | 231,152 | 217,974 | |||||||||||||||||||||
Other assets | 1,113,118 | 1,162,254 | |||||||||||||||||||||
Less: allowance for loan losses | (165,035 | ) | (171,151 | ) | |||||||||||||||||||
Total Assets | $ | 19,970,251 | $ | 19,181,579 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | $ | 3,955,485 | $ | 8,963 | 0.46 | % | $ | 3,670,603 | $ | 5,019 | 0.28 | % | |||||||||||
Savings deposits | 4,516,384 | 9,912 | 0.44 | % | 4,255,190 | 4,921 | 0.23 | % | |||||||||||||||
Brokered deposits | 79,665 | 672 | 1.70 | % | — | — | — | % | |||||||||||||||
Time deposits | 2,653,634 | 16,188 | 1.23 | % | 2,717,624 | 14,745 | 1.09 | % | |||||||||||||||
Total Interest-bearing Deposits | 11,205,168 | 35,735 | 0.64 | % | 10,643,417 | 24,685 | 0.47 | % | |||||||||||||||
Short-term borrowings | 960,348 | 5,077 | 1.06 | % | 672,580 | 1,829 | 0.54 | % | |||||||||||||||
FHLB advances and long-term debt | 966,129 | 15,661 | 3.25 | % | 1,030,667 | 16,712 | 3.25 | % | |||||||||||||||
Total Interest-bearing Liabilities | 13,131,645 | 56,473 | 0.87 | % | 12,346,664 | 43,226 | 0.70 | % | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | 4,263,968 | 4,344,859 | |||||||||||||||||||||
Other | 338,817 | 329,076 | |||||||||||||||||||||
Total Liabilities | 17,734,430 | 17,020,599 | |||||||||||||||||||||
Shareholders' equity | 2,235,821 | 2,160,980 | |||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 19,970,251 | $ | 19,181,579 | |||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 313,259 | 3.37 | % | 290,593 | 3.28 | % | |||||||||||||||||
Tax equivalent adjustment | (5,874 | ) | (11,451 | ) | |||||||||||||||||||
Net interest income | $ | 307,385 | $ | 279,142 | |||||||||||||||||||
(1) Six months ended June 30, 2018 is presented on a fully taxable-equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances. Prior periods are presented on a fully taxable-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances. | |||||||||||||||||||||||
Note: The weighted average interest rate on total average interest-bearing liabilities and average non-interest bearing demand deposits (“cost of funds”) was 0.65% and 0.52% for the six months ended June 30, 2018 and 2017, respectively. | |||||||||||||||||||||||
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | |||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||
June 30 | |||||||||||||||||||||||
2018 | 2017 | % Change | |||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 6,302,157 | $ | 6,101,836 | 3.3 | % | |||||||||||||||||
Commercial - industrial, financial and agricultural | 4,311,994 | 4,213,094 | 2.3 | % | |||||||||||||||||||
Real estate - residential mortgage | 1,992,520 | 1,672,994 | 19.1 | % | |||||||||||||||||||
Real estate - home equity | 1,520,855 | 1,600,394 | (5.0 | )% | |||||||||||||||||||
Real estate - construction | 981,269 | 869,299 | 12.9 | % | |||||||||||||||||||
Consumer | 330,831 | 292,704 | 13.0 | % | |||||||||||||||||||
Leasing and other | 275,375 | 242,808 | 13.4 | % | |||||||||||||||||||
Total Loans, net of unearned income | $ | 15,715,001 | $ | 14,993,129 | 4.8 | % | |||||||||||||||||
Deposits, by type: | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 4,263,968 | $ | 4,344,859 | (1.9 | )% | |||||||||||||||||
Interest-bearing demand | 3,955,485 | 3,670,603 | 7.8 | % | |||||||||||||||||||
Savings and money market accounts | 4,516,384 | 4,255,190 | 6.1 | % | |||||||||||||||||||
Total demand and savings | 12,735,837 | 12,270,652 | 3.8 | % | |||||||||||||||||||
Brokered deposits | 79,665 | — | 100.0 | % | |||||||||||||||||||
Time deposits | 2,653,634 | 2,717,624 | (2.4 | )% | |||||||||||||||||||
Total Deposits | $ | 15,469,136 | $ | 14,988,276 | 3.2 | % | |||||||||||||||||
Short-term borrowings, by type: | |||||||||||||||||||||||
Customer repurchase agreements | $ | 169,300 | $ | 199,945 | (15.3 | )% | |||||||||||||||||
Customer short-term promissory notes | 312,407 | 78,348 | N/M | ||||||||||||||||||||
Federal funds purchased | 389,111 | 275,116 | 41.4 | % | |||||||||||||||||||
Short-term FHLB advances and other borrowings | 89,530 | 119,171 | (24.9 | )% | |||||||||||||||||||
Total Short-term Borrowings | $ | 960,348 | $ | 672,580 | 42.8 | % | |||||||||||||||||
N/M - Not meaningful |
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||
ASSET QUALITY INFORMATION (UNAUDITED) | ||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Jun 30 | Jun 30 | ||||||||||||||||||||||||
2018 | 2018 | 2017 | 2017 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 176,019 | $ | 176,084 | $ | 174,749 | $ | 174,998 | $ | 172,647 | $ | 176,084 | $ | 171,325 | ||||||||||||||||
Loans charged off: | ||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | (38,632 | ) | (4,005 | ) | (5,473 | ) | (2,714 | ) | (5,353 | ) | (42,637 | ) | (10,880 | ) | ||||||||||||||||
Consumer and home equity | (1,528 | ) | (1,300 | ) | (1,071 | ) | (920 | ) | (1,022 | ) | (2,828 | ) | (2,576 | ) | ||||||||||||||||
Real estate - construction | (606 | ) | (158 | ) | — | (2,744 | ) | (774 | ) | (764 | ) | (1,021 | ) | |||||||||||||||||
Real estate - residential mortgage | (483 | ) | (162 | ) | (152 | ) | (195 | ) | (124 | ) | (645 | ) | (340 | ) | ||||||||||||||||
Real estate - commercial mortgage | (366 | ) | (267 | ) | (220 | ) | (483 | ) | (242 | ) | (633 | ) | (1,466 | ) | ||||||||||||||||
Leasing and other | (545 | ) | (505 | ) | (457 | ) | (739 | ) | (1,200 | ) | (1,050 | ) | (1,839 | ) | ||||||||||||||||
Total loans charged off | (42,160 | ) | (6,397 | ) | (7,373 | ) | (7,795 | ) | (8,715 | ) | (48,557 | ) | (18,122 | ) | ||||||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 541 | 1,075 | 941 | 665 | 1,974 | 1,616 | 6,165 | |||||||||||||||||||||||
Consumer and home equity | 717 | 385 | 466 | 445 | 685 | 1,102 | 1,058 | |||||||||||||||||||||||
Real estate - construction | 444 | 306 | 32 | 629 | 373 | 750 | 921 | |||||||||||||||||||||||
Real estate - residential mortgage | 96 | 107 | 186 | 219 | 151 | 203 | 381 | |||||||||||||||||||||||
Real estate - commercial mortgage | 321 | 279 | 178 | 106 | 934 | 600 | 1,384 | |||||||||||||||||||||||
Leasing and other | 152 | 210 | 175 | 407 | 249 | 362 | 386 | |||||||||||||||||||||||
Recoveries of loans previously charged off | 2,271 | 2,362 | 1,978 | 2,471 | 4,366 | 4,633 | 10,295 | |||||||||||||||||||||||
Net loans recovered charged off | (39,889 | ) | (4,035 | ) | (5,395 | ) | (5,324 | ) | (4,349 | ) | (43,924 | ) | (7,827 | ) | ||||||||||||||||
Provision for credit losses | 33,117 | 3,970 | 6,730 | 5,075 | 6,700 | 37,087 | 11,500 | |||||||||||||||||||||||
Balance at end of period | $ | 169,247 | $ | 176,019 | $ | 176,084 | $ | 174,749 | $ | 174,998 | $ | 169,247 | $ | 174,998 | ||||||||||||||||
Net charge-offs to average loans (annualized) | 1.01 | % | 0.10 | % | 0.14 | % | 0.14 | % | 0.11 | % | 0.56 | % | 0.10 | % | ||||||||||||||||
NON-PERFORMING ASSETS: | ||||||||||||||||||||||||||||||
Non-accrual loans | $ | 111,116 | $ | 122,966 | $ | 124,749 | $ | 123,345 | $ | 122,600 | ||||||||||||||||||||
Loans 90 days past due and accruing | 12,628 | 11,676 | 10,010 | 13,124 | 13,143 | |||||||||||||||||||||||||
Total non-performing loans | 123,744 | 134,642 | 134,759 | 136,469 | 135,743 | |||||||||||||||||||||||||
Other real estate owned | 11,181 | 10,744 | 9,823 | 10,542 | 11,432 | |||||||||||||||||||||||||
Total non-performing assets | $ | 134,925 | $ | 145,386 | $ | 144,582 | $ | 147,011 | $ | 147,175 | ||||||||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | $ | 44,045 | $ | 54,915 | $ | 54,309 | $ | 54,209 | $ | 51,320 | ||||||||||||||||||||
Real estate - commercial mortgage | 39,278 | 36,183 | 35,446 | 34,650 | 32,576 | |||||||||||||||||||||||||
Real estate - residential mortgage | 18,888 | 20,169 | 20,972 | 21,643 | 21,846 | |||||||||||||||||||||||||
Consumer and home equity | 12,038 | 12,272 | 11,803 | 12,472 | 13,156 | |||||||||||||||||||||||||
Real estate - construction | 9,319 | 10,931 | 12,197 | 13,415 | 16,564 | |||||||||||||||||||||||||
Leasing | 176 | 172 | 32 | 80 | 281 | |||||||||||||||||||||||||
Total non-performing loans | $ | 123,744 | $ | 134,642 | $ | 134,759 | $ | 136,469 | $ | 135,743 | ||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE: | ||||||||||||||||||||||||||||||
Real-estate - residential mortgage | $ | 25,055 | $ | 25,602 | $ | 26,016 | $ | 26,193 | $ | 26,368 | ||||||||||||||||||||
Real-estate - commercial mortgage | 16,420 | 18,181 | 13,959 | 14,439 | 13,772 | |||||||||||||||||||||||||
Consumer and home equity | 16,212 | 16,091 | 15,584 | 14,822 | 12,064 | |||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 11,199 | 11,740 | 10,820 | 7,512 | 8,086 | |||||||||||||||||||||||||
Real estate - construction | — | — | — | 169 | 1,475 | |||||||||||||||||||||||||
Total accruing TDRs | $ | 68,886 | $ | 71,614 | $ | 66,379 | $ | 63,135 | $ | 61,765 | ||||||||||||||||||||
Non-accrual TDRs (1) | 24,743 | 24,897 | 29,051 | 28,742 | 29,373 | |||||||||||||||||||||||||
Total TDRs | $ | 93,629 | $ | 96,511 | $ | 95,430 | $ | 91,877 | $ | 91,138 | ||||||||||||||||||||
(1) Included within non-accrual loans above. | ||||||||||||||||||||||||||||||
DELINQUENCY RATES, BY TYPE: | Total Delinquency % | |||||||||||||||||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | ||||||||||||||||||||||||||
2018 | 2018 | 2017 | 2017 | 2017 | ||||||||||||||||||||||||||
Real estate - commercial mortgage | 0.77 | % | 0.77 | % | 0.77 | % | 0.75 | % | 0.66 | % | ||||||||||||||||||||
Commercial - industrial, financial and agricultural | 1.44 | % | 1.48 | % | 1.50 | % | 1.54 | % | 1.43 | % | ||||||||||||||||||||
Real estate - construction | 1.02 | % | 1.12 | % | 1.32 | % | 1.50 | % | 1.82 | % | ||||||||||||||||||||
Real estate - residential mortgage | 1.90 | % | 1.91 | % | 2.04 | % | 2.25 | % | 2.08 | % | ||||||||||||||||||||
Consumer, home equity, leasing and other | 1.22 | % | 1.20 | % | 1.37 | % | 1.38 | % | 1.34 | % | ||||||||||||||||||||
Total | 1.18 | % | 1.19 | % | 1.24 | % | 1.28 | % | 1.20 | % | ||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) | ||||||||||||||||||||||||||||||||||
in thousands, except per share data and percentages | ||||||||||||||||||||||||||||||||||
Explanatory note: | This press release contains supplemental financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow: | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Jun 30 | Jun 30 | ||||||||||||||||||||||||||||
2018 | 2018 | 2017 | 2017 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||
Shareholders' equity (tangible), per share | ||||||||||||||||||||||||||||||||||
Shareholders' equity | $ | 2,245,785 | $ | 2,235,493 | $ | 2,229,857 | $ | 2,225,786 | $ | 2,191,770 | ||||||||||||||||||||||||
Less: Goodwill and intangible assets | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | ||||||||||||||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,714,229 | $ | 1,703,937 | $ | 1,698,301 | $ | 1,694,230 | $ | 1,660,214 | ||||||||||||||||||||||||
Shares outstanding, end of period (denominator) | 175,847 | 175,404 | 175,170 | 175,057 | 174,740 | |||||||||||||||||||||||||||||
Shareholders' equity (tangible), per share | $ | 9.75 | $ | 9.71 | $ | 9.70 | $ | 9.68 | $ | 9.50 | ||||||||||||||||||||||||
Return on average shareholders' equity (tangible) | ||||||||||||||||||||||||||||||||||
Net income (numerator) | $ | 35,197 | $ | 49,480 | $ | 34,001 | $ | 48,905 | $ | 45,467 | $ | 84,677 | $ | 88,847 | ||||||||||||||||||||
Average shareholders' equity | $ | 2,246,904 | $ | 2,224,615 | $ | 2,237,031 | $ | 2,215,389 | $ | 2,181,189 | $ | 2,235,821 | $ | 2,160,980 | ||||||||||||||||||||
Less: Average goodwill and intangible assets | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | ||||||||||||||||||||
Average tangible shareholders' equity (denominator) | $ | 1,715,348 | $ | 1,693,059 | $ | 1,705,475 | $ | 1,683,833 | $ | 1,649,633 | $ | 1,704,265 | $ | 1,629,424 | ||||||||||||||||||||
Return on average shareholders' equity (tangible), annualized | 8.23 | % | 11.85 | % | 7.91 | % | 11.52 | % | 11.06 | % | 10.02 | % | 11.00 | % | ||||||||||||||||||||
Tangible Common Equity to Tangible Assets (TCE Ratio) | ||||||||||||||||||||||||||||||||||
Shareholders' equity | $ | 2,245,785 | $ | 2,235,493 | $ | 2,229,857 | $ | 2,225,786 | $ | 2,191,770 | ||||||||||||||||||||||||
Less: Intangible assets | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | ||||||||||||||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,714,229 | $ | 1,703,937 | $ | 1,698,301 | $ | 1,694,230 | $ | 1,660,214 | ||||||||||||||||||||||||
Total assets | $ | 20,172,539 | $ | 19,948,941 | $ | 20,036,905 | $ | 20,062,860 | $ | 19,647,435 | ||||||||||||||||||||||||
Less: Intangible assets | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | ||||||||||||||||||||||||
Total tangible assets (denominator) | $ | 19,640,983 | $ | 19,417,385 | $ | 19,505,349 | $ | 19,531,304 | $ | 19,115,879 | ||||||||||||||||||||||||
Tangible Common Equity to Tangible Assets | 8.73 | % | 8.78 | % | 8.71 | % | 8.67 | % | 8.68 | % | ||||||||||||||||||||||||
Efficiency ratio | ||||||||||||||||||||||||||||||||||
Non-interest expense | $ | 133,345 | $ | 136,661 | $ | 138,452 | $ | 132,157 | $ | 132,695 | $ | 270,006 | $ | 254,970 | ||||||||||||||||||||
Less: Amortization on tax credit investments | (1,637 | ) | (1,637 | ) | (3,376 | ) | (3,503 | ) | (3,151 | ) | (3,274 | ) | (4,149 | ) | ||||||||||||||||||||
Non-interest expense (numerator) | $ | 131,708 | $ | 135,024 | $ | 135,076 | $ | 128,654 | $ | 129,544 | $ | 266,732 | $ | 250,821 | ||||||||||||||||||||
Net interest income (fully taxable equivalent) | $ | 159,027 | $ | 154,232 | $ | 155,253 | $ | 152,721 | $ | 147,349 | $ | 313,259 | $ | 290,593 | ||||||||||||||||||||
Plus: Total Non-interest income | 49,094 | 45,875 | 56,956 | 51,974 | 52,371 | 94,969 | 99,044 | |||||||||||||||||||||||||||
Less: Investment securities gains | (4 | ) | (19 | ) | (1,932 | ) | (4,597 | ) | (1,436 | ) | (23 | ) | (2,542 | ) | ||||||||||||||||||||
Net interest income (denominator) | $ | 208,117 | $ | 200,088 | $ | 210,277 | $ | 200,098 | $ | 198,284 | $ | 408,205 | $ | 387,095 | ||||||||||||||||||||
Efficiency ratio | 63.29 | % | 67.48 | % | 64.24 | % | 64.30 | % | 65.33 | % | 65.34 | % | 64.80 | % | ||||||||||||||||||||
Non-performing assets to tangible shareholders' equity and allowance for credit losses | ||||||||||||||||||||||||||||||||||
Non-performing assets (numerator) | $ | 134,925 | $ | 145,386 | $ | 144,582 | $ | 147,011 | $ | 147,175 | ||||||||||||||||||||||||
Tangible shareholders' equity | $ | 1,714,229 | $ | 1,703,937 | 1,698,301 | 1,694,230 | $ | 1,660,214 | ||||||||||||||||||||||||||
Plus: Allowance for credit losses | 169,247 | 176,019 | 176,084 | 174,749 | 174,998 | |||||||||||||||||||||||||||||
Tangible shareholders' equity and allowance for credit losses (denominator) | $ | 1,883,476 | $ | 1,879,956 | $ | 1,874,385 | $ | 1,868,979 | $ | 1,835,212 | ||||||||||||||||||||||||
Non-performing assets to tangible shareholders' equity and allowance for credit losses | 7.16 | % | 7.73 | % | 7.71 | % | 7.87 | % | 8.02 | % | ||||||||||||||||||||||||
Pre-provision net revenue | ||||||||||||||||||||||||||||||||||
Net interest income | $ | 156,067 | $ | 151,318 | $ | 149,413 | $ | 146,809 | $ | 141,563 | $ | 307,385 | $ | 279,142 | ||||||||||||||||||||
Non-interest income | 49,094 | 45,875 | 56,956 | 51,974 | 52,371 | 94,969 | 99,044 | |||||||||||||||||||||||||||
Less: Investment securities gains | (4 | ) | (19 | ) | (1,932 | ) | (4,597 | ) | (1,436 | ) | (23 | ) | (2,542 | ) | ||||||||||||||||||||
Total revenue | $ | 205,157 | $ | 197,174 | $ | 204,437 | $ | 194,186 | $ | 192,498 | $ | 402,331 | $ | 375,644 | ||||||||||||||||||||
Non-interest expense | $ | 133,345 | $ | 136,661 | $ | 138,452 | $ | 132,157 | $ | 132,695 | $ | 270,006 | $ | 254,970 | ||||||||||||||||||||
Less: Amortization on tax credit investments | (1,637 | ) | (1,637 | ) | (3,376 | ) | (3,503 | ) | (3,151 | ) | (3,274 | ) | (4,149 | ) | ||||||||||||||||||||
Total non-interest expense | $ | 131,708 | $ | 135,024 | $ | 135,076 | $ | 128,654 | $ | 129,544 | $ | 266,732 | $ | 250,821 | ||||||||||||||||||||
Pre-provision net revenue | $ | 73,449 | $ | 62,150 | $ | 69,361 | $ | 65,532 | $ | 62,954 | $ | 135,599 | $ | 124,823 | ||||||||||||||||||||
Reconciliation of Net Income; Net Income per share, diluted; and Selected Financial Ratios, adjusted to exclude the Tax Charge recognized in the fourth quarter of 2017 related to the re-measurement of net deferred tax assets: | ||||||||||||||||||||||||||||||||||
Net income and Net income per share, diluted | ||||||||||||||||||||||||||||||||||
Net income | $ | 34,001 | ||||||||||||||||||||||||||||||||
Plus: Re-measurement of net deferred tax assets | 15,634 | |||||||||||||||||||||||||||||||||
Net Income, adjusted (numerator) | $ | 49,635 | ||||||||||||||||||||||||||||||||
Weighted average shares (diluted) | 176,374 | |||||||||||||||||||||||||||||||||
Net income per share, diluted | $ | 0.28 | ||||||||||||||||||||||||||||||||
Return on average assets | ||||||||||||||||||||||||||||||||||
Net income | $ | 34,001 | ||||||||||||||||||||||||||||||||
Plus: Re-measurement of net deferred tax assets | 15,634 | |||||||||||||||||||||||||||||||||
Net Income, adjusted (numerator) | $ | 49,635 | ||||||||||||||||||||||||||||||||
Average assets (denominator) | $ | 20,072,579 | ||||||||||||||||||||||||||||||||
Return on average assets, annualized | 0.98 | % | ||||||||||||||||||||||||||||||||
Return on average shareholders' equity | ||||||||||||||||||||||||||||||||||
Net income | $ | 34,001 | ||||||||||||||||||||||||||||||||
Plus: Re-measurement of net deferred tax assets | 15,634 | |||||||||||||||||||||||||||||||||
Net Income, adjusted (numerator) | $ | 49,635 | ||||||||||||||||||||||||||||||||
Average shareholders' equity (denominator) | $ | 2,237,031 | ||||||||||||||||||||||||||||||||
Return on average shareholders' equity, annualized | 8.80 | % | ||||||||||||||||||||||||||||||||
Return on average shareholders' equity (tangible) | ||||||||||||||||||||||||||||||||||
Net Income, as reported | $ | 34,001 | ||||||||||||||||||||||||||||||||
Plus: Re-measurement of net deferred tax assets | 15,634 | |||||||||||||||||||||||||||||||||
Net Income, adjusted (numerator) | $ | 49,635 | ||||||||||||||||||||||||||||||||
Average shareholders' equity | $ | 2,237,031 | ||||||||||||||||||||||||||||||||
Less: Average goodwill and intangible assets | (531,556 | ) | ||||||||||||||||||||||||||||||||
Average tangible shareholders' equity (denominator) | $ | 1,705,475 | ||||||||||||||||||||||||||||||||
Return on average shareholders' equity (tangible), annualized | 11.55 | % | ||||||||||||||||||||||||||||||||