FULTON FINANCIAL CORPORATION | ||||||||||||||||||||
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||||||
dollars in thousands, except per-share data and percentages | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | ||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||
Ending Balances | ||||||||||||||||||||
Investments | $ | 2,635,413 | $ | 2,593,283 | $ | 2,592,823 | $ | 2,547,956 | $ | 2,561,516 | ||||||||||
Loans, net of unearned income | 15,925,093 | 15,792,969 | 15,696,284 | 15,768,247 | 15,486,899 | |||||||||||||||
Total assets | 20,364,810 | 20,172,539 | 19,948,941 | 20,036,905 | 20,062,860 | |||||||||||||||
Deposits | 16,249,014 | 15,599,799 | 15,477,103 | 15,797,532 | 16,141,780 | |||||||||||||||
Shareholders' equity | 2,283,014 | 2,245,785 | 2,235,493 | 2,229,857 | 2,225,786 | |||||||||||||||
Average Balances | ||||||||||||||||||||
Investments | $ | 2,596,414 | $ | 2,601,705 | $ | 2,556,986 | $ | 2,566,337 | $ | 2,523,758 | ||||||||||
Loans, net of unearned income | 15,862,143 | 15,768,377 | 15,661,032 | 15,560,185 | 15,392,067 | |||||||||||||||
Total assets | 20,273,232 | 20,063,375 | 19,876,093 | 20,072,579 | 19,872,726 | |||||||||||||||
Deposits | 15,967,234 | 15,517,424 | 15,420,312 | 16,056,789 | 15,875,469 | |||||||||||||||
Shareholders' equity | 2,269,093 | 2,246,904 | 2,224,615 | 2,237,031 | 2,215,389 | |||||||||||||||
Income Statement | ||||||||||||||||||||
Net interest income | $ | 160,127 | $ | 156,067 | $ | 151,318 | $ | 149,413 | $ | 146,809 | ||||||||||
Provision for credit losses | 1,620 | 33,117 | 3,970 | 6,730 | 5,075 | |||||||||||||||
Non-interest income | 51,033 | 49,094 | 45,875 | 56,956 | 51,974 | |||||||||||||||
Non-interest expense | 135,413 | 133,345 | 136,661 | 138,452 | 132,157 | |||||||||||||||
Income before taxes | 74,127 | 38,699 | 56,562 | 61,187 | 61,551 | |||||||||||||||
Net income | 65,633 | 35,197 | 49,480 | 34,001 | 48,905 | |||||||||||||||
Pre-provision net revenue(1) | 77,370 | 73,449 | 62,150 | 69,361 | 65,532 | |||||||||||||||
Per Share | ||||||||||||||||||||
Net income (basic) | $ | 0.37 | $ | 0.20 | $ | 0.28 | $ | 0.19 | $ | 0.28 | ||||||||||
Net income (diluted) | 0.37 | 0.20 | 0.28 | 0.19 | 0.28 | |||||||||||||||
Cash dividends | 0.12 | 0.12 | 0.12 | 0.14 | 0.11 | |||||||||||||||
Tangible common equity(1) | 9.95 | 9.75 | 9.71 | 9.70 | 9.68 | |||||||||||||||
Weighted average shares (basic) | 175,942 | 175,764 | 175,303 | 175,132 | 174,991 | |||||||||||||||
Weighted average shares (diluted) | 177,128 | 176,844 | 176,568 | 176,374 | 176,216 | |||||||||||||||
Asset Quality | ||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.08% | 1.01% | 0.10% | 0.14 | % | 0.14 | % | |||||||||||||
Non-performing loans to total loans | 0.75% | 0.78% | 0.86% | 0.85 | % | 0.88 | % | |||||||||||||
Non-performing assets to total assets | 0.64% | 0.67% | 0.73% | 0.72 | % | 0.73 | % | |||||||||||||
Allowance for credit losses to loans outstanding | 1.05% | 1.07% | 1.12% | 1.12 | % | 1.13 | % | |||||||||||||
Allowance for loan losses to loans outstanding | 0.99 | % | 0.99 | % | 1.04 | % | 1.08 | % | 1.11 | % | ||||||||||
Allowance for credit losses to non-performing loans | 139.74% | 136.77% | 130.73% | 130.67 | % | 128.05 | % | |||||||||||||
Allowance for loan losses to non-performing loans | 131.40% | 126.11% | 121.22% | 126.08 | % | 126.22 | % | |||||||||||||
Non-performing assets to tangible shareholders' equity and allowance for credit losses(1) | 6.81% | 7.16% | 7.73% | 7.71 | % | 7.87 | % | |||||||||||||
Total delinquency rate | 1.15% | 1.18% | 1.19% | 1.24 | % | 1.28 | % | |||||||||||||
Profitability | ||||||||||||||||||||
Return on average assets | 1.28 | % | 0.70 | % | 1.01 | % | 0.67 | % | 0.98 | % | ||||||||||
Return on average shareholders' equity | 11.48% | 6.28% | 9.02% | 6.03 | % | 8.76 | % | |||||||||||||
Return on average shareholders' equity (tangible)(1) | 14.99% | 8.23% | 11.85% | 7.91 | % | 11.52 | % | |||||||||||||
Net interest margin | 3.42 | % | 3.39 | % | 3.35 | % | 3.29 | % | 3.27 | % | ||||||||||
Efficiency ratio(1) | 62.5 | % | 63.3 | % | 67.5 | % | 64.2 | % | 64.3 | % | ||||||||||
Capital Ratios | ||||||||||||||||||||
Tangible common equity ratio(1) | 8.83 | % | 8.73 | % | 8.78 | % | 8.71 | % | 8.67 | % | ||||||||||
Tier 1 leverage ratio(2) | 9.30% | 9.20% | 9.20% | 8.93 | % | 8.97 | % | |||||||||||||
Common equity Tier 1 capital ratio(2) | 10.70 | % | 10.60 | % | 10.70 | % | 10.38 | % | 10.42 | % | ||||||||||
Tier 1 capital ratio(2) | 10.70 | % | 10.60 | % | 10.70% | 10.38 | % | 10.42 | % | |||||||||||
Total risk-based capital ratio(2) | 13.25 | % | 13.20 | % | 13.30% | 13.02 | % | 13.09 | % | |||||||||||
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 September 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 | ||||||||||||||||||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Sep 30 | ||||||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | 2018 | 2017 | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||
Cash and due from banks | $ | 90,361 | $ | 99,742 | $ | 100,151 | $ | 108,291 | $ | 99,803 | (9.4 | )% | (9.5 | )% | ||||||||||||
Other interest-earning assets | 388,256 | 364,802 | 267,806 | 354,566 | 645,796 | 6.4 | % | (39.9 | )% | |||||||||||||||||
Loans held for sale | 27,525 | 35,898 | 23,450 | 31,530 | 23,049 | (23.3 | )% | 19.4 | % | |||||||||||||||||
Investment securities | 2,635,413 | 2,593,283 | 2,592,823 | 2,547,956 | 2,561,516 | 1.6 | % | 2.9 | % | |||||||||||||||||
Loans, net of unearned income | 15,925,093 | 15,792,969 | 15,696,284 | 15,768,247 | 15,486,899 | 0.8 | % | 2.8 | % | |||||||||||||||||
Allowance for loan losses | (157,810 | ) | (156,050 | ) | (163,217 | ) | (169,910 | ) | (172,245 | ) | 1.1 | % | (8.4 | )% | ||||||||||||
Net loans | 15,767,283 | 15,636,919 | 15,533,067 | 15,598,337 | 15,314,654 | 0.8 | % | 3.0 | % | |||||||||||||||||
Premises and equipment | 231,236 | 230,195 | 230,313 | 222,802 | 221,551 | 0.5 | % | 4.4 | % | |||||||||||||||||
Accrued interest receivable | 58,584 | 55,208 | 53,060 | 52,910 | 50,082 | 6.1 | % | 17.0 | % | |||||||||||||||||
Goodwill and intangible assets | 531,556 | 531,556 | 531,556 | 531,556 | 531,556 | — | % | — | % | |||||||||||||||||
Other assets | 634,596 | 624,936 | 616,715 | 588,957 | 614,853 | 1.5 | % | 3.2 | % | |||||||||||||||||
Total Assets | $ | 20,364,810 | $ | 20,172,539 | $ | 19,948,941 | $ | 20,036,905 | $ | 20,062,860 | 1.0 | % | 1.5 | % | ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||
Deposits | $ | 16,249,014 | $ | 15,599,799 | $ | 15,477,103 | $ | 15,797,532 | $ | 16,141,780 | 4.2 | % | 0.7 | % | ||||||||||||
Short-term borrowings | 485,565 | 983,833 | 937,852 | 617,524 | 298,751 | (50.6 | )% | 62.5 | % | |||||||||||||||||
Other liabilities | 355,102 | 351,174 | 359,994 | 353,646 | 358,384 | 1.1 | % | (0.9 | )% | |||||||||||||||||
FHLB advances and long-term debt | 992,115 | 991,948 | 938,499 | 1,038,346 | 1,038,159 | — | % | (4.4 | )% | |||||||||||||||||
Total Liabilities | 18,081,796 | 17,926,754 | 17,713,448 | 17,807,048 | 17,837,074 | 0.9 | % | 1.4 | % | |||||||||||||||||
Shareholders' equity | 2,283,014 | 2,245,785 | 2,235,493 | 2,229,857 | 2,225,786 | 1.7 | % | 2.6 | % | |||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 20,364,810 | $ | 20,172,539 | $ | 19,948,941 | $ | 20,036,905 | $ | 20,062,860 | 1.0 | % | 1.5 | % | ||||||||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 6,337,984 | $ | 6,304,475 | $ | 6,332,508 | $ | 6,364,804 | $ | 6,275,140 | 0.5 | % | 1.0 | % | ||||||||||||
Commercial - industrial, financial and agricultural | 4,288,823 | 4,264,602 | 4,299,072 | 4,300,297 | 4,223,075 | 0.6 | % | 1.6 | % | |||||||||||||||||
Real estate - residential mortgage | 2,173,548 | 2,094,530 | 1,976,524 | 1,954,711 | 1,887,907 | 3.8 | % | 15.1 | % | |||||||||||||||||
Real estate - home equity | 1,469,152 | 1,491,395 | 1,514,241 | 1,559,719 | 1,567,473 | (1.5 | )% | (6.3 | )% | |||||||||||||||||
Real estate - construction | 979,857 | 990,705 | 976,131 | 1,006,935 | 973,108 | (1.1 | )% | 0.7 | % | |||||||||||||||||
Consumer | 390,708 | 360,315 | 326,766 | 313,783 | 302,448 | 8.4 | % | 29.2 | % | |||||||||||||||||
Leasing and other | 285,021 | 286,947 | 271,042 | 267,998 | 257,748 | (0.7 | )% | 10.6 | % | |||||||||||||||||
Total Loans, net of unearned income | $ | 15,925,093 | $ | 15,792,969 | $ | 15,696,284 | $ | 15,768,247 | $ | 15,486,899 | 0.8 | % | 2.8 | % | ||||||||||||
Deposits, by type: | ||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 4,216,064 | $ | 4,324,659 | $ | 4,291,821 | $ | 4,437,294 | $ | 4,363,915 | (2.5 | )% | (3.4 | )% | ||||||||||||
Interest-bearing demand | 4,289,181 | 3,854,680 | 3,984,423 | 4,018,107 | 4,119,419 | 11.3 | % | 4.1 | % | |||||||||||||||||
Savings and money market accounts | 4,878,982 | 4,597,510 | 4,487,277 | 4,586,746 | 4,790,985 | 6.1 | % | 1.8 | % | |||||||||||||||||
Total demand and savings | 13,384,227 | 12,776,849 | 12,763,521 | 13,042,147 | 13,274,319 | 4.8 | % | 0.8 | % | |||||||||||||||||
Brokered deposits | 164,601 | 161,447 | 64,195 | 90,473 | 109,936 | 2.0 | % | 49.7 | % | |||||||||||||||||
Time deposits | 2,700,186 | 2,661,503 | 2,649,387 | 2,664,912 | 2,757,525 | 1.5 | % | (2.1 | )% | |||||||||||||||||
Total Deposits | $ | 16,249,014 | $ | 15,599,799 | $ | 15,477,103 | $ | 15,797,532 | $ | 16,141,780 | 4.2 | % | 0.7 | % | ||||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||||||||
Customer repurchase agreements | $ | 82,741 | $ | 152,594 | $ | 165,186 | $ | 172,017 | $ | 185,945 | (45.8 | )% | (55.5 | )% | ||||||||||||
Customer short-term promissory notes | 267,824 | 303,239 | 342,666 | 225,507 | 106,994 | (11.7 | )% | 150.3 | % | |||||||||||||||||
Short-term FHLB advances | 85,000 | 185,000 | 35,000 | — | — | (54.1 | )% | N/M | ||||||||||||||||||
Federal funds purchased | 50,000 | 343,000 | 395,000 | 220,000 | 5,812 | (85.4 | )% | N/M | ||||||||||||||||||
Total Short-term Borrowings | $ | 485,565 | $ | 983,833 | $ | 937,852 | $ | 617,524 | $ | 298,751 | (50.6 | )% | 62.5 | % | ||||||||||||
N/M - Not meaningful |
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | % Change from | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Sep 30 | Sep 30 | |||||||||||||||||||||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | 2018 | 2017 | 2018 | 2017 | % Change | |||||||||||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 194,048 | $ | 186,170 | $ | 177,687 | $ | 174,987 | $ | 171,511 | 4.2 | % | 13.1 | % | $ | 557,905 | $ | 493,879 | 13.0 | % | ||||||||||||||||||||||
Interest expense | 33,921 | 30,103 | 26,369 | 25,574 | 24,702 | 12.7 | % | 37.3 | % | 90,393 | 67,928 | 33.1 | % | |||||||||||||||||||||||||||||
Net Interest Income | 160,127 | 156,067 | 151,318 | 149,413 | 146,809 | 2.6 | % | 9.1 | % | 467,512 | 425,951 | 9.8 | % | |||||||||||||||||||||||||||||
Provision for credit losses | 1,620 | 33,117 | 3,970 | 6,730 | 5,075 | (95.1 | )% | (68.1 | )% | 38,707 | 16,575 | 133.5 | % | |||||||||||||||||||||||||||||
Net Interest Income after Provision | 158,507 | 122,950 | 147,348 | 142,683 | 141,734 | 28.9 | % | 11.8 | % | 428,805 | 409,376 | 4.7 | % | |||||||||||||||||||||||||||||
Non-Interest Income: | ||||||||||||||||||||||||||||||||||||||||||
Other service charges and fees: | ||||||||||||||||||||||||||||||||||||||||||
Merchant fees | 5,006 | 4,920 | 4,115 | 4,308 | 4,398 | 1.7 | % | 13.8 | % | 14,041 | 12,536 | 12.0 | % | |||||||||||||||||||||||||||||
Commercial loan interest rate swap fees | 3,607 | 2,393 | 1,291 | 2,914 | 1,954 | 50.7 | % | 84.6 | % | 7,291 | 8,780 | (17.0 | )% | |||||||||||||||||||||||||||||
Debit card income | 3,604 | 3,077 | 2,817 | 3,526 | 2,830 | 17.1 | % | 27.3 | % | 9,498 | 8,379 | 13.4 | % | |||||||||||||||||||||||||||||
Letter of credit fees | 983 | 956 | 992 | 1,037 | 1,056 | 2.8 | % | (6.9 | )% | 2,931 | 3,366 | (12.9 | )% | |||||||||||||||||||||||||||||
Foreign exchange income | 542 | 591 | 533 | 510 | 470 | (8.3 | )% | 15.3 | % | 1,666 | 1,249 | 33.4 | % | |||||||||||||||||||||||||||||
Other | 1,691 | 1,728 | 1,671 | 1,534 | 1,543 | (2.1 | )% | 9.6 | % | 5,090 | 4,720 | 7.8 | % | |||||||||||||||||||||||||||||
Total | 15,433 | 13,665 | 11,419 | 13,829 | 12,251 | 12.9 | % | 26.0 | % | 40,517 | 39,030 | 3.8 | % | |||||||||||||||||||||||||||||
Service charges on deposit accounts: | ||||||||||||||||||||||||||||||||||||||||||
Overdraft fees | 5,167 | 5,092 | 5,145 | 5,609 | 5,844 | 1.5 | % | (11.6 | )% | 15,404 | 16,960 | (9.2 | )% | |||||||||||||||||||||||||||||
Cash management fees | 4,472 | 4,452 | 4,317 | 3,669 | 3,624 | 0.4 | % | 23.4 | % | 13,241 | 10,775 | 22.9 | % | |||||||||||||||||||||||||||||
Other | 2,620 | 2,726 | 2,500 | 3,392 | 3,554 | (3.9 | )% | (26.3 | )% | 7,846 | 10,601 | (26.0 | )% | |||||||||||||||||||||||||||||
Total | 12,259 | 12,270 | 11,962 | 12,670 | 13,022 | (0.1 | )% | (5.9 | )% | 36,491 | 38,336 | (4.8 | )% | |||||||||||||||||||||||||||||
Investment management and trust services | 13,066 | 12,803 | 12,871 | 13,152 | 12,157 | 2.1 | % | 7.5 | % | 38,740 | 36,097 | 7.3 | % | |||||||||||||||||||||||||||||
Mortgage banking income | 4,896 | 5,163 | 4,193 | 4,386 | 4,805 | (5.2 | )% | 1.9 | % | 14,252 | 15,542 | (8.3 | )% | |||||||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||||||||||||
Credit card income | 3,080 | 2,866 | 2,816 | 2,778 | 2,829 | 7.5 | % | 8.9 | % | 8,762 | 8,143 | 7.6 | % | |||||||||||||||||||||||||||||
Small business administration lending income | 530 | 846 | 357 | 1,355 | 565 | (37.4 | )% | (6.2 | )% | 1,733 | 2,156 | (19.6 | )% | |||||||||||||||||||||||||||||
Other income | 1,755 | 1,477 | 2,238 | 6,854 | 1,748 | 18.8 | % | 0.4 | % | 5,470 | 4,575 | 19.6 | % | |||||||||||||||||||||||||||||
Total | 5,365 | 5,189 | 5,411 | 10,987 | 5,142 | 3.4 | % | 4.3 | % | 15,965 | 14,874 | 7.3 | % | |||||||||||||||||||||||||||||
Non-Interest Income before Investment Securities Gains | 51,019 | 49,090 | 45,856 | 55,024 | 47,377 | 3.9 | % | 7.7 | % | 145,965 | 143,879 | 1.4 | % | |||||||||||||||||||||||||||||
Investment securities gains | 14 | 4 | 19 | 1,932 | 4,597 | N/M | (99.7 | )% | 37 | 7,139 | (99.5 | )% | ||||||||||||||||||||||||||||||
Total Non-Interest Income | 51,033 | 49,094 | 45,875 | 56,956 | 51,974 | 3.9 | % | (1.8 | )% | 146,002 | 151,018 | (3.3 | )% | |||||||||||||||||||||||||||||
Non-Interest Expense: | ||||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | 76,770 | 74,919 | 75,768 | 73,504 | 72,894 | 2.5 | % | 5.3 | % | 227,457 | 216,626 | 5.0 | % | |||||||||||||||||||||||||||||
Net occupancy expense | 12,578 | 12,760 | 13,632 | 12,549 | 12,180 | (1.4 | )% | 3.3 | % | 38,970 | 37,159 | 4.9 | % | |||||||||||||||||||||||||||||
Data processing and software | 10,157 | 10,453 | 10,473 | 10,401 | 10,301 | (2.8 | )% | (1.4 | )% | 31,083 | 28,334 | 9.7 | % | |||||||||||||||||||||||||||||
Other outside services | 9,122 | 7,568 | 8,124 | 7,665 | 6,582 | 20.5 | % | 38.6 | % | 24,814 | 19,836 | 25.1 | % | |||||||||||||||||||||||||||||
Professional fees | 3,427 | 2,372 | 4,816 | 3,632 | 3,388 | 44.5 | % | 1.2 | % | 10,615 | 9,056 | 17.2 | % | |||||||||||||||||||||||||||||
Equipment expense | 3,000 | 3,434 | 3,534 | 3,244 | 3,298 | (12.6 | )% | (9.0 | )% | 9,968 | 9,691 | 2.9 | % | |||||||||||||||||||||||||||||
FDIC insurance expense | 2,814 | 2,663 | 2,953 | 3,618 | 3,007 | 5.7 | % | (6.4 | )% | 8,430 | 7,431 | 13.4 | % | |||||||||||||||||||||||||||||
Marketing | 2,692 | 2,335 | 2,250 | 1,725 | 2,089 | 15.3 | % | 28.9 | % | 7,277 | 6,309 | 15.3 | % | |||||||||||||||||||||||||||||
Amortization of tax credit investments | 1,637 | 1,637 | 1,637 | 3,376 | 3,503 | — | % | (53.3 | )% | 4,911 | 7,652 | (35.8 | )% | |||||||||||||||||||||||||||||
Other | 13,216 | 15,204 | 13,474 | 18,738 | 14,915 | (13.1 | )% | (11.4 | )% | 41,894 | 45,033 | (7.0 | )% | |||||||||||||||||||||||||||||
Total Non-Interest Expense | 135,413 | 133,345 | 136,661 | 138,452 | 132,157 | 1.6 | % | 2.5 | % | 405,419 | 387,127 | 4.7 | % | |||||||||||||||||||||||||||||
Income Before Income Taxes | 74,127 | 38,699 | 56,562 | 61,187 | 61,551 | 91.5 | % | 20.4 | % | 169,388 | 173,267 | (2.2 | )% | |||||||||||||||||||||||||||||
Income tax expense | 8,494 | 3,502 | 7,082 | 27,186 | 12,646 | 142.5 | % | (32.8 | )% | 19,078 | 35,515 | (46.3 | )% | |||||||||||||||||||||||||||||
Net Income | $ | 65,633 | $ | 35,197 | $ | 49,480 | $ | 34,001 | $ | 48,905 | 86.5 | % | 34.2 | % | $ | 150,310 | $ | 137,752 | 9.1 | % | ||||||||||||||||||||||
PER SHARE: | ||||||||||||||||||||||||||||||||||||||||||
Net income: | ||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.37 | $ | 0.20 | $ | 0.28 | $ | 0.19 | $ | 0.28 | 85.0 | % | 32.1 | % | $ | 0.86 | $ | 0.79 | 8.9 | % | ||||||||||||||||||||||
Diluted | 0.37 | 0.20 | 0.28 | 0.19 | 0.28 | 85.0 | % | 32.1 | % | 0.85 | 0.78 | 9.0 | % | |||||||||||||||||||||||||||||
Weighted average shares (basic) | 175,942 | 175,764 | 175,303 | 175,132 | 174,991 | 0.1 | % | 0.5 | % | 175,672 | 174,582 | 0.6 | % | |||||||||||||||||||||||||||||
Weighted average shares (diluted) | 177,128 | 176,844 | 176,568 | 176,374 | 176,216 | 0.2 | % | 0.5 | % | 176,848 | 175,776 | 0.6 | % | |||||||||||||||||||||||||||||
N/M - not meaningful |
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||
September 30, 2018 | June 30, 2018 | September 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 | $ | 15,862,143 | $ | 177,329 | 4.44% | $ | 15,768,377 | $ | 170,006 | 4.32% | $ | 15,392,067 | $ | 159,454 | 4.12% | |||||||||||||||||||
Taxable investment securities | 2,239,837 | 13,956 | 2.49% | 2,262,789 | 13,885 | 2.45% | 2,115,931 | 11,423 | 2.16% | |||||||||||||||||||||||||
Tax-exempt investment securities | 415,908 | 3,841 | 3.67% | 408,715 | 3,713 | 3.61% | 408,594 | 4,492 | 4.37% | |||||||||||||||||||||||||
Equity securities | — | — | —% | — | — | —% | 8,709 | 143 | 6.52% | |||||||||||||||||||||||||
Total Investment Securities | 2,655,745 | 17,797 | 2.68% | 2,671,504 | 17,598 | 2.63% | 2,533,234 | 16,058 | 2.53% | |||||||||||||||||||||||||
Loans held for sale | 27,195 | 388 | 5.71% | 22,237 | 284 | 5.11% | 22,456 | 243 | 4.33% | |||||||||||||||||||||||||
Other interest-earning assets | 416,129 | 1,601 | 1.53% | 316,381 | 1,243 | 1.57% | 590,676 | 1,667 | 1.12% | |||||||||||||||||||||||||
Total Interest-earning Assets | 18,961,212 | 197,115 | 4.13% | 18,778,499 | 189,131 | 4.04% | 18,538,433 | 177,422 | 3.80% | |||||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||||
Cash and due from banks | 100,568 | 100,811 | 101,643 | |||||||||||||||||||||||||||||||
Premises and equipment | 231,280 | 232,048 | 220,129 | |||||||||||||||||||||||||||||||
Other assets | 1,137,293 | 1,112,913 | 1,186,622 | |||||||||||||||||||||||||||||||
Less: allowance for loan losses | (157,121 | ) | (160,896 | ) | (174,101 | ) | ||||||||||||||||||||||||||||
Total Assets | $ | 20,273,232 | $ | 20,063,375 | $ | 19,872,726 | ||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
Demand deposits | $ | 4,116,051 | $ | 6,378 | 0.61% | $ | 3,952,115 | $ | 4,959 | 0.50% | $ | 3,943,118 | $ | 3,847 | 0.39% | |||||||||||||||||||
Savings deposits | 4,718,148 | 7,569 | 0.64% | 4,538,083 | 5,545 | 0.49% | 4,603,155 | 3,962 | 0.34% | |||||||||||||||||||||||||
Brokered deposits | 162,467 | 840 | 2.05% | 85,242 | 396 | 1.87% | 89,767 | 277 | 1.23% | |||||||||||||||||||||||||
Time deposits | 2,672,548 | 9,032 | 1.34% | 2,660,410 | 8,385 | 1.26% | 2,744,532 | 7,937 | 1.15% | |||||||||||||||||||||||||
Total Interest-bearing Deposits | 11,669,214 | 23,819 | 0.81% | 11,235,850 | 19,285 | 0.69% | 11,380,572 | 16,023 | 0.56% | |||||||||||||||||||||||||
Short-term borrowings | 724,132 | 2,002 | 1.09% | 1,023,160 | 3,036 | 1.18% | 402,341 | 578 | 0.57% | |||||||||||||||||||||||||
FHLB advances and long-term debt | 988,748 | 8,100 | 3.26% | 945,177 | 7,783 | 3.30% | 1,038,062 | 8,100 | 3.11% | |||||||||||||||||||||||||
Total Interest-bearing Liabilities | 13,382,094 | 33,921 | 1.01% | 13,204,187 | 30,104 | 0.91% | 12,820,975 | 24,701 | 0.77% | |||||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
Demand deposits | 4,298,020 | 4,281,574 | 4,494,897 | |||||||||||||||||||||||||||||||
Other | 324,025 | 330,710 | 341,465 | |||||||||||||||||||||||||||||||
Total Liabilities | 18,004,139 | 17,816,471 | 17,657,337 | |||||||||||||||||||||||||||||||
Shareholders' equity | 2,269,093 | 2,246,904 | 2,215,389 | |||||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 20,273,232 | $ | 20,063,375 | $ | 19,872,726 | ||||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 163,194 | 3.42% | 159,027 | 3.39% | 152,721 | 3.27% | ||||||||||||||||||||||||||||
Tax equivalent adjustment | (3,067 | ) | (2,960 | ) | (5,912 | ) | ||||||||||||||||||||||||||||
Net interest income | $ | 160,127 | $ | 156,067 | $ | 146,809 | ||||||||||||||||||||||||||||
(1) Three months ended September 30, 2018 and June 30, 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 0.76%, 0.69% and 0.57% for the three months ended September 30, 2018, June 30, 2018 and September 30, 2017, respectively. | ||||||||||||||||||||||||||||||||||
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||||||||||||||||||
Three Months Ended | % Change from | |||||||||||||||||||||||||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Sep 30 | ||||||||||||||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 6,309,663 | $ | 6,298,534 | $ | 6,305,821 | $ | 6,232,674 | $ | 6,208,630 | 0.2 | % | 1.6 | % | ||||||||||||||||||||
Commercial - industrial, financial and agricultural | 4,304,320 | 4,335,097 | 4,288,634 | 4,263,199 | 4,257,075 | (0.7 | )% | 1.1 | % | |||||||||||||||||||||||||
Real estate - residential mortgage | 2,142,977 | 2,026,161 | 1,958,505 | 1,926,067 | 1,841,559 | 5.8 | % | 16.4 | % | |||||||||||||||||||||||||
Real estate - home equity | 1,474,011 | 1,502,936 | 1,538,974 | 1,560,713 | 1,569,898 | (1.9 | )% | (6.1 | )% | |||||||||||||||||||||||||
Real estate - construction | 969,575 | 978,327 | 984,242 | 1,004,166 | 943,029 | (0.9 | )% | 2.8 | % | |||||||||||||||||||||||||
Consumer | 375,656 | 345,572 | 315,927 | 312,320 | 318,546 | 8.7 | % | 17.9 | % | |||||||||||||||||||||||||
Leasing and other | 285,941 | 281,750 | 268,930 | 261,046 | 253,330 | 1.5 | % | 12.9 | % | |||||||||||||||||||||||||
Total Loans, net of unearned income | $ | 15,862,143 | $ | 15,768,377 | $ | 15,661,033 | $ | 15,560,185 | $ | 15,392,067 | 0.6 | % | 3.1 | % | ||||||||||||||||||||
Deposits, by type: | ||||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 4,298,020 | $ | 4,281,574 | $ | 4,246,168 | $ | 4,454,456 | $ | 4,494,897 | 0.4 | % | (4.4 | )% | ||||||||||||||||||||
Interest-bearing demand | 4,116,051 | 3,952,115 | 3,958,894 | 4,037,879 | 3,943,118 | 4.1 | % | 4.4 | % | |||||||||||||||||||||||||
Savings and money market accounts | 4,718,148 | 4,538,083 | 4,494,445 | 4,752,337 | 4,603,155 | 4.0 | % | 2.5 | % | |||||||||||||||||||||||||
Total demand and savings | 13,132,219 | 12,771,772 | 12,699,507 | 13,244,672 | 13,041,170 | 2.8 | % | 0.7 | % | |||||||||||||||||||||||||
Brokered deposits | 162,467 | 85,242 | 74,026 | 105,135 | 89,767 | 90.6 | % | 81.0 | % | |||||||||||||||||||||||||
Time deposits | 2,672,548 | 2,660,410 | 2,646,779 | 2,706,982 | 2,744,532 | 0.5 | % | (2.6 | )% | |||||||||||||||||||||||||
Total Deposits | $ | 15,967,234 | $ | 15,517,424 | $ | 15,420,312 | $ | 16,056,789 | $ | 15,875,469 | 2.9 | % | 0.6 | % | ||||||||||||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||||||||||||||||
Customer repurchase agreements | $ | 148,660 | $ | 162,276 | $ | 175,292 | $ | 179,948 | $ | 176,415 | (8.4 | )% | (15.7 | )% | ||||||||||||||||||||
Customer short-term promissory notes | 298,896 | 316,049 | 308,725 | 195,951 | 80,147 | (5.4 | )% | N/M | ||||||||||||||||||||||||||
Federal funds purchased | 145,793 | 398,297 | 379,822 | 15,374 | 90,453 | (63.4 | )% | 61.2 | % | |||||||||||||||||||||||||
Short-term FHLB advances and other borrowings | 130,783 | 146,538 | 33,000 | 11 | 55,326 | (10.8 | )% | 136.4 | % | |||||||||||||||||||||||||
Total Short-term Borrowings | $ | 724,132 | $ | 1,023,160 | $ | 896,839 | $ | 391,284 | $ | 402,341 | (29.2 | )% | 80.0 | % | ||||||||||||||||||||
N/M - Not meaningful |
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||||||
dollars in thousands | |||||||||||||||||||||||
Nine Months Ended September 30 | |||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Balance | Interest (1) | Yield/Rate | Balance | Interest (1) | Yield/Rate | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans, net of unearned income | $ | 15,764,587 | $ | 509,596 | 4.32 | % | $ | 15,127,569 | $ | 458,753 | 4.05 | % | |||||||||||
Taxable investment securities | 2,233,972 | 41,034 | 2.45 | % | 2,117,127 | 34,811 | 2.19 | % | |||||||||||||||
Tax-exempt investment securities | 412,496 | 11,307 | 3.64 | % | 405,728 | 13,268 | 4.34 | % | |||||||||||||||
Equity securities | 167 | 5 | 13.01 | % | 10,391 | 467 | 6.01 | % | |||||||||||||||
Total Investment Securities | 2,646,635 | 52,346 | 2.63 | % | 2,533,246 | 48,546 | 2.55 | % | |||||||||||||||
Loans held for sale | 23,175 | 888 | 5.11 | % | 19,378 | 631 | 4.34 | % | |||||||||||||||
Other interest-earning assets | 345,512 | 4,016 | 1.55 | % | 410,250 | 3,311 | 1.08 | % | |||||||||||||||
Total Interest-earning Assets | $ | 18,779,909 | 566,846 | 4.03 | % | $ | 18,090,443 | 511,241 | 3.78 | % | |||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||
Cash and due from banks | 102,352 | 107,029 | |||||||||||||||||||||
Premises and equipment | 231,195 | 218,700 | |||||||||||||||||||||
Other assets | 1,121,267 | 1,170,466 | |||||||||||||||||||||
Less: allowance for loan losses | (162,368 | ) | (172,145 | ) | |||||||||||||||||||
Total Assets | $ | 20,072,355 | $ | 19,414,493 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | $ | 4,009,596 | $ | 15,341 | 0.51 | % | $ | 3,762,439 | $ | 8,865 | 0.32 | % | |||||||||||
Savings deposits | 4,584,377 | 17,481 | 0.51 | % | 4,372,453 | 8,883 | 0.27 | % | |||||||||||||||
Brokered deposits | 107,569 | 1,511 | 1.88 | % | 30,251 | 277 | 1.23 | % | |||||||||||||||
Time deposits | 2,660,008 | 25,220 | 1.27 | % | 2,726,693 | 22,684 | 1.11 | % | |||||||||||||||
Total Interest-bearing Deposits | 11,361,550 | 59,553 | 0.70 | % | 10,891,836 | 40,709 | 0.50 | % | |||||||||||||||
Short-term borrowings | 880,745 | 7,079 | 1.07 | % | 581,511 | 2,407 | 0.55 | % | |||||||||||||||
FHLB advances and long-term debt | 973,751 | 23,761 | 3.26 | % | 1,033,159 | 24,812 | 3.21 | % | |||||||||||||||
Total Interest-bearing Liabilities | 13,216,046 | 90,393 | 0.91 | % | 12,506,506 | 67,928 | 0.73 | % | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | 4,275,443 | 4,395,421 | |||||||||||||||||||||
Other | 333,832 | 333,250 | |||||||||||||||||||||
Total Liabilities | 17,825,321 | 17,235,177 | |||||||||||||||||||||
Shareholders' equity | 2,247,034 | 2,179,316 | |||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 20,072,355 | $ | 19,414,493 | |||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 476,453 | 3.39 | % | 443,313 | 3.27 | % | |||||||||||||||||
Tax equivalent adjustment | (8,941 | ) | (17,362 | ) | |||||||||||||||||||
Net interest income | $ | 467,512 | $ | 425,951 | |||||||||||||||||||
(1) Nine months ended September 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 0.69% and 0.54% for the nine months ended September 30, 2018 and 2017, respectively. | |||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30 | |||||||||||||||||||||||
2018 | 2017 | % Change | |||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 6,304,687 | $ | 6,137,824 | 2.7 | % | |||||||||||||||||
Commercial - industrial, financial and agricultural | 4,309,408 | 4,227,918 | 1.9 | % | |||||||||||||||||||
Real estate - residential mortgage | 2,043,223 | 1,729,799 | 18.1 | % | |||||||||||||||||||
Real estate - home equity | 1,505,069 | 1,590,117 | (5.3 | )% | |||||||||||||||||||
Real estate - construction | 977,327 | 894,146 | 9.3 | % | |||||||||||||||||||
Consumer | 345,937 | 301,414 | 14.8 | % | |||||||||||||||||||
Leasing and other | 278,936 | 246,351 | 13.2 | % | |||||||||||||||||||
Total Loans, net of unearned income | $ | 15,764,587 | $ | 15,127,569 | 4.2 | % | |||||||||||||||||
Deposits, by type: | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 4,275,443 | $ | 4,395,421 | (2.7 | )% | |||||||||||||||||
Interest-bearing demand | 4,009,596 | 3,762,439 | 6.6 | % | |||||||||||||||||||
Savings and money market accounts | 4,584,377 | 4,372,453 | 4.8 | % | |||||||||||||||||||
Total demand and savings | 12,869,416 | 12,530,313 | 2.7 | % | |||||||||||||||||||
Brokered deposits | 107,569 | 30,251 | N/M | ||||||||||||||||||||
Time deposits | 2,660,008 | 2,726,693 | (2.4 | )% | |||||||||||||||||||
Total Deposits | $ | 15,636,993 | $ | 15,287,257 | 2.3 | % | |||||||||||||||||
Short-term borrowings, by type: | |||||||||||||||||||||||
Customer repurchase agreements | $ | 162,345 | $ | 192,015 | (15.5 | )% | |||||||||||||||||
Customer short-term promissory notes | 307,854 | 78,955 | N/M | ||||||||||||||||||||
Federal funds purchased | 307,114 | 212,885 | 44.3 | % | |||||||||||||||||||
Short-term FHLB advances and other borrowings | 103,432 | 97,656 | 5.9 | % | |||||||||||||||||||
Total Short-term Borrowings | $ | 880,745 | $ | 581,511 | 51.5 | % | |||||||||||||||||
N/M - Not meaningful |
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||
ASSET QUALITY INFORMATION (UNAUDITED) | ||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Sep 30 | Sep 30 | ||||||||||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 169,247 | $ | 176,019 | $ | 176,084 | $ | 174,749 | $ | 174,998 | $ | 176,084 | $ | 171,325 | ||||||||||||||||
Loans charged off: | ||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | (3,541 | ) | (38,632 | ) | (4,005 | ) | (5,473 | ) | (2,714 | ) | (46,178 | ) | (13,594 | ) | ||||||||||||||||
Consumer and home equity | (1,415 | ) | (1,528 | ) | (1,300 | ) | (1,071 | ) | (920 | ) | (4,243 | ) | (3,496 | ) | ||||||||||||||||
Real estate - commercial mortgage | (650 | ) | (366 | ) | (267 | ) | (220 | ) | (483 | ) | (1,283 | ) | (1,949 | ) | ||||||||||||||||
Real estate - residential mortgage | (483 | ) | (483 | ) | (162 | ) | (152 | ) | (195 | ) | (1,128 | ) | (535 | ) | ||||||||||||||||
Real estate - construction | (212 | ) | (606 | ) | (158 | ) | — | (2,744 | ) | (976 | ) | (3,765 | ) | |||||||||||||||||
Leasing and other | (582 | ) | (545 | ) | (505 | ) | (457 | ) | (739 | ) | (1,632 | ) | (2,578 | ) | ||||||||||||||||
Total loans charged off | (6,883 | ) | (42,160 | ) | (6,397 | ) | (7,373 | ) | (7,795 | ) | (55,440 | ) | (25,917 | ) | ||||||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 731 | 541 | 1,075 | 941 | 665 | 2,347 | 6,830 | |||||||||||||||||||||||
Consumer and home equity | 607 | 717 | 385 | 466 | 445 | 1,709 | 1,503 | |||||||||||||||||||||||
Real estate - commercial mortgage | 928 | 321 | 279 | 178 | 106 | 1,528 | 1,490 | |||||||||||||||||||||||
Real estate - residential mortgage | 317 | 96 | 107 | 186 | 219 | 520 | 600 | |||||||||||||||||||||||
Real estate - construction | 664 | 444 | 306 | 32 | 629 | 1,414 | 1,550 | |||||||||||||||||||||||
Leasing and other | 595 | 152 | 210 | 175 | 407 | 957 | 793 | |||||||||||||||||||||||
Recoveries of loans previously charged off | 3,842 | 2,271 | 2,362 | 1,978 | 2,471 | 8,475 | 12,766 | |||||||||||||||||||||||
Net loans recovered charged off | (3,041 | ) | (39,889 | ) | (4,035 | ) | (5,395 | ) | (5,324 | ) | (46,965 | ) | (13,151 | ) | ||||||||||||||||
Provision for credit losses | 1,620 | 33,117 | 3,970 | 6,730 | 5,075 | 38,707 | 16,575 | |||||||||||||||||||||||
Balance at end of period | $ | 167,826 | $ | 169,247 | $ | 176,019 | $ | 176,084 | $ | 174,749 | $ | 167,826 | $ | 174,749 | ||||||||||||||||
Net charge-offs to average loans (annualized) | 0.08 | % | 1.01 | % | 0.10 | % | 0.14 | % | 0.14 | % | 0.40 | % | 0.12 | % | ||||||||||||||||
NON-PERFORMING ASSETS: | ||||||||||||||||||||||||||||||
Non-accrual loans | $ | 106,433 | $ | 111,116 | $ | 122,966 | $ | 124,749 | $ | 123,345 | ||||||||||||||||||||
Loans 90 days past due and accruing | 13,663 | 12,628 | 11,676 | 10,010 | 13,124 | |||||||||||||||||||||||||
Total non-performing loans | 120,096 | 123,744 | 134,642 | 134,759 | 136,469 | |||||||||||||||||||||||||
Other real estate owned | 10,684 | 11,181 | 10,744 | 9,823 | 10,542 | |||||||||||||||||||||||||
Total non-performing assets | $ | 130,780 | $ | 134,925 | $ | 145,386 | $ | 144,582 | $ | 147,011 | ||||||||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | $ | 43,391 | $ | 44,045 | $ | 54,915 | $ | 54,309 | $ | 54,209 | ||||||||||||||||||||
Real estate - commercial mortgage | 37,393 | 39,278 | 36,183 | 35,446 | 34,650 | |||||||||||||||||||||||||
Real estate - residential mortgage | 19,076 | 18,888 | 20,169 | 20,972 | 21,643 | |||||||||||||||||||||||||
Consumer and home equity | 10,362 | 12,038 | 12,272 | 11,803 | 12,472 | |||||||||||||||||||||||||
Real estate - construction | 9,784 | 9,319 | 10,931 | 12,197 | 13,415 | |||||||||||||||||||||||||
Leasing | 90 | 176 | 172 | 32 | 80 | |||||||||||||||||||||||||
Total non-performing loans | $ | 120,096 | $ | 123,744 | $ | 134,642 | $ | 134,759 | $ | 136,469 | ||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE: | ||||||||||||||||||||||||||||||
Real-estate - residential mortgage | $ | 24,810 | $ | 25,055 | $ | 25,602 | $ | 26,016 | $ | 26,193 | ||||||||||||||||||||
Consumer and home equity | 16,216 | 16,212 | 16,091 | 15,584 | 14,822 | |||||||||||||||||||||||||
Real-estate - commercial mortgage | 15,690 | 16,420 | 18,181 | 13,959 | 14,439 | |||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 10,342 | 11,199 | 11,740 | 10,820 | 7,512 | |||||||||||||||||||||||||
Real estate - construction | — | — | — | — | 169 | |||||||||||||||||||||||||
Total accruing TDRs | $ | 67,058 | $ | 68,886 | $ | 71,614 | $ | 66,379 | $ | 63,135 | ||||||||||||||||||||
Non-accrual TDRs (1) | 23,238 | 24,743 | 24,897 | 29,051 | 28,742 | |||||||||||||||||||||||||
Total TDRs | $ | 90,296 | $ | 93,629 | $ | 96,511 | $ | 95,430 | $ | 91,877 | ||||||||||||||||||||
(1) Included within non-accrual loans above. | ||||||||||||||||||||||||||||||
DELINQUENCY RATES, BY TYPE: | Total Delinquency % | |||||||||||||||||||||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | ||||||||||||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||||||||||||
Real estate - commercial mortgage | 0.81 | % | 0.77 | % | 0.77 | % | 0.77 | % | 0.75 | % | ||||||||||||||||||||
Commercial - industrial, financial and agricultural | 1.21 | % | 1.44 | % | 1.48 | % | 1.50 | % | 1.54 | % | ||||||||||||||||||||
Real estate - construction | 1.04 | % | 1.02 | % | 1.12 | % | 1.32 | % | 1.50 | % | ||||||||||||||||||||
Real estate - residential mortgage | 1.95 | % | 1.90 | % | 1.91 | % | 2.04 | % | 2.25 | % | ||||||||||||||||||||
Consumer, home equity, leasing and other | 1.31 | % | 1.22 | % | 1.20 | % | 1.37 | % | 1.38 | % | ||||||||||||||||||||
Total | 1.15 | % | 1.18 | % | 1.19 | % | 1.24 | % | 1.28 | % | ||||||||||||||||||||
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 | ||||||||||||||||||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | ||||||||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||||||||
Shareholders' equity (tangible), per share | ||||||||||||||||||||||||||
Shareholders' equity | $ | 2,283,014 | $ | 2,245,785 | $ | 2,235,493 | $ | 2,229,857 | $ | 2,225,786 | ||||||||||||||||
Less: Goodwill and intangible assets | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | ||||||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,751,458 | $ | 1,714,229 | $ | 1,703,937 | $ | 1,698,301 | $ | 1,694,230 | ||||||||||||||||
Shares outstanding, end of period (denominator) | 176,019 | 175,847 | 175,404 | 175,170 | 175,057 | |||||||||||||||||||||
Shareholders' equity (tangible), per share | $ | 9.95 | $ | 9.75 | $ | 9.71 | $ | 9.70 | $ | 9.68 | ||||||||||||||||
Return on average shareholders' equity (tangible) | ||||||||||||||||||||||||||
Net income (numerator) | $ | 65,633 | $ | 35,197 | $ | 49,480 | $ | 34,001 | $ | 48,905 | ||||||||||||||||
Average shareholders' equity | $ | 2,269,093 | $ | 2,246,904 | $ | 2,224,615 | $ | 2,237,031 | $ | 2,215,389 | ||||||||||||||||
Less: Average goodwill and intangible assets | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | ||||||||||||||||
Average tangible shareholders' equity (denominator) | $ | 1,737,537 | $ | 1,715,348 | $ | 1,693,059 | $ | 1,705,475 | $ | 1,683,833 | ||||||||||||||||
Return on average shareholders' equity (tangible), annualized | 14.99 | % | 8.23 | % | 11.85 | % | 7.91 | % | 11.52 | % | ||||||||||||||||
Tangible Common Equity to Tangible Assets (TCE Ratio) | ||||||||||||||||||||||||||
Shareholders' equity | $ | 2,283,014 | $ | 2,245,785 | $ | 2,235,493 | $ | 2,229,857 | $ | 2,225,786 | ||||||||||||||||
Less: Intangible assets | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | ||||||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,751,458 | $ | 1,714,229 | $ | 1,703,937 | $ | 1,698,301 | $ | 1,694,230 | ||||||||||||||||
Total assets | $ | 20,364,810 | $ | 20,172,539 | $ | 19,948,941 | $ | 20,036,905 | $ | 20,062,860 | ||||||||||||||||
Less: Intangible assets | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | (531,556 | ) | ||||||||||||||||
Total tangible assets (denominator) | $ | 19,833,254 | $ | 19,640,983 | $ | 19,417,385 | $ | 19,505,349 | $ | 19,531,304 | ||||||||||||||||
Tangible Common Equity to Tangible Assets | 8.83 | % | 8.73 | % | 8.78 | % | 8.71 | % | 8.67 | % | ||||||||||||||||
Efficiency ratio | ||||||||||||||||||||||||||
Non-interest expense | $ | 135,413 | $ | 133,345 | $ | 136,661 | $ | 138,452 | $ | 132,157 | ||||||||||||||||
Less: Amortization on tax credit investments | (1,637 | ) | (1,637 | ) | (1,637 | ) | (3,376 | ) | (3,503 | ) | ||||||||||||||||
Non-interest expense (numerator) | $ | 133,776 | $ | 131,708 | $ | 135,024 | $ | 135,076 | $ | 128,654 | ||||||||||||||||
Net interest income (fully taxable equivalent) | $ | 163,194 | $ | 159,027 | $ | 154,232 | $ | 155,253 | $ | 152,721 | ||||||||||||||||
Plus: Total Non-interest income | 51,032 | 49,094 | 45,875 | 56,956 | 51,974 | |||||||||||||||||||||
Less: Investment securities gains | (14 | ) | (4 | ) | (19 | ) | (1,932 | ) | (4,597 | ) | ||||||||||||||||
Net interest income (denominator) | $ | 214,212 | $ | 208,117 | $ | 200,088 | $ | 210,277 | $ | 200,098 | ||||||||||||||||
Efficiency ratio | 62.5 | % | 63.3 | % | 67.5 | % | 64.2 | % | 64.3 | % | ||||||||||||||||
Non-performing assets to tangible shareholders' equity and allowance for credit losses | ||||||||||||||||||||||||||
Non-performing assets (numerator) | $ | 130,780 | $ | 134,925 | $ | 145,386 | $ | 144,582 | $ | 147,011 | ||||||||||||||||
Tangible shareholders' equity | $ | 1,751,458 | $ | 1,714,229 | 1,703,937 | 1,698,301 | $ | 1,694,230 | ||||||||||||||||||
Plus: Allowance for credit losses | 167,826 | 169,247 | 176,019 | 176,084 | 174,749 | |||||||||||||||||||||
Tangible shareholders' equity and allowance for credit losses (denominator) | $ | 1,919,284 | $ | 1,883,476 | $ | 1,879,956 | $ | 1,874,385 | $ | 1,868,979 | ||||||||||||||||
Non-performing assets to tangible shareholders' equity and allowance for credit losses | 6.81 | % | 7.16 | % | 7.73 | % | 7.71 | % | 7.87 | % | ||||||||||||||||
Pre-provision net revenue | ||||||||||||||||||||||||||
Net interest income | $ | 160,127 | $ | 156,067 | $ | 151,318 | $ | 149,413 | $ | 146,809 | ||||||||||||||||
Non-interest income | 51,033 | 49,094 | 45,875 | 56,956 | 51,974 | |||||||||||||||||||||
Less: Investment securities gains | (14 | ) | (4 | ) | (19 | ) | (1,932 | ) | (4,597 | ) | ||||||||||||||||
Total revenue | $ | 211,146 | $ | 205,157 | $ | 197,174 | $ | 204,437 | $ | 194,186 | ||||||||||||||||
Non-interest expense | $ | 135,413 | $ | 133,345 | $ | 136,661 | $ | 138,452 | $ | 132,157 | ||||||||||||||||
Less: Amortization on tax credit investments | (1,637 | ) | (1,637 | ) | (1,637 | ) | (3,376 | ) | (3,503 | ) | ||||||||||||||||
Total non-interest expense | $ | 133,776 | $ | 131,708 | $ | 135,024 | $ | 135,076 | $ | 128,654 | ||||||||||||||||
Pre-provision net revenue | $ | 77,370 | $ | 73,449 | $ | 62,150 | $ | 69,361 | $ | 65,532 | ||||||||||||||||
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 | % | ||||||||||||||||||||||||