Attached files
| file | filename |
|---|---|
| EX-99.3 - REVISED PRESENTATION SUPERCEDING CONFERENCE CALL PRESENTATION - FULTON FINANCIAL CORP | a123119earningsccslidesr.htm |
| EX-99.1 - REVISED AND RESTATED PRESS RELEASE DATED FEBRUARY 12, 2020 - FULTON FINANCIAL CORP | exhibit99112-31x19.htm |
| 8-K/A - 8-K/A - FULTON FINANCIAL CORP | a8k2-12x20.htm |
FULTON FINANCIAL CORPORATION | REVISED AS OF FEBRUARY 12, 2020 | |||||||||||||||||||
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||||||
in thousands, except per-share data and percentages | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | ||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | ||||||||||||||||
Ending Balances | ||||||||||||||||||||
Investments | $ | 2,867,378 | $ | 2,705,610 | $ | 2,853,358 | $ | 2,748,249 | $ | 2,686,973 | ||||||||||
Loans, net of unearned income | 16,837,526 | 16,686,866 | 16,368,458 | 16,262,633 | 16,165,800 | |||||||||||||||
Total assets | 21,886,040 | 21,703,618 | 21,308,670 | 20,974,649 | 20,682,152 | |||||||||||||||
Deposits | 17,393,913 | 17,342,717 | 16,388,895 | 16,377,978 | 16,376,159 | |||||||||||||||
Shareholders' equity | 2,342,176 | 2,324,016 | 2,308,798 | 2,301,019 | 2,247,573 | |||||||||||||||
Average Balances | ||||||||||||||||||||
Investments | $ | 2,830,999 | $ | 2,829,672 | $ | 2,790,392 | $ | 2,699,130 | $ | 2,646,266 | ||||||||||
Loans, net of unearned income | 16,768,057 | 16,436,507 | 16,316,076 | 16,194,375 | 15,965,637 | |||||||||||||||
Total assets | 21,812,438 | 21,457,800 | 21,057,030 | 20,690,365 | 20,512,130 | |||||||||||||||
Deposits | 17,449,565 | 16,950,667 | 16,375,456 | 16,275,633 | 16,413,066 | |||||||||||||||
Shareholders' equity | 2,341,397 | 2,315,585 | 2,301,258 | 2,265,097 | 2,281,669 | |||||||||||||||
Income Statement | ||||||||||||||||||||
Net interest income | $ | 159,270 | $ | 161,260 | $ | 164,544 | $ | 163,315 | $ | 162,944 | ||||||||||
Provision for credit losses | 20,530 | 2,170 | 5,025 | 5,100 | 8,200 | |||||||||||||||
Non-interest income | 55,281 | 59,813 | 54,315 | 46,751 | 49,523 | |||||||||||||||
Non-interest expense | 138,974 | 146,770 | 144,168 | 137,824 | 140,685 | |||||||||||||||
Income before taxes | 55,047 | 72,133 | 69,666 | 67,142 | 63,582 | |||||||||||||||
Net income | 47,788 | 62,108 | 59,779 | 56,663 | 58,083 | |||||||||||||||
Pre-provision net revenue(1) | 77,224 | 76,741 | 76,114 | 73,775 | 78,320 | |||||||||||||||
Per Share | ||||||||||||||||||||
Net income (basic) | $ | 0.29 | $ | 0.38 | $ | 0.36 | $ | 0.33 | $ | 0.33 | ||||||||||
Net income (diluted) | $ | 0.29 | $ | 0.37 | $ | 0.35 | $ | 0.33 | $ | 0.33 | ||||||||||
Cash dividends | $ | 0.17 | $ | 0.13 | $ | 0.13 | $ | 0.13 | $ | 0.16 | ||||||||||
Tangible common equity(1) | $ | 11.00 | $ | 10.91 | $ | 10.63 | $ | 10.39 | $ | 10.08 | ||||||||||
Weighted average shares (basic) | 164,135 | 165,324 | 168,343 | 169,884 | 174,571 | |||||||||||||||
Weighted average shares (diluted) | 165,039 | 166,126 | 169,168 | 170,909 | 175,473 | |||||||||||||||
Asset Quality | ||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.65 | % | 0.15% | -0.04% | 0.10% | 0.17 | % | |||||||||||||
Non-performing loans to total loans | 0.84 | % | 0.81% | 0.90% | 0.85% | 0.86 | % | |||||||||||||
Non-performing assets to total assets | 0.68 | % | 0.66% | 0.73% | 0.70% | 0.73 | % | |||||||||||||
Allowance for credit losses to loans outstanding | 0.99 | % | 1.04% | 1.08% | 1.05% | 1.05 | % | |||||||||||||
Allowance for loan losses to loans outstanding | 0.97 | % | 1.00 | % | 1.04 | % | 1.00 | % | 0.99 | % | ||||||||||
Allowance for credit losses to non-performing loans | 118 | % | 127% | 120% | 123% | 121.00 | % | |||||||||||||
Allowance for loan losses to non-performing loans | 116 | % | 122% | 115% | 117% | 115.00 | % | |||||||||||||
Non-performing assets to tangible shareholders' equity and allowance for credit losses(1) | 7.50 | % | 7.32% | 7.94% | 7.63% | 7.97 | % | |||||||||||||
Profitability | ||||||||||||||||||||
Return on average assets | 0.87 | % | 1.15 | % | 1.14 | % | 1.11 | % | 1.12 | % | ||||||||||
Return on average shareholders' equity | 8.10 | % | 10.64% | 10.42% | 10.15% | 10.10 | % | |||||||||||||
Return on average shareholders' equity (tangible)(1) | 10.52 | % | 14.03% | 13.60% | 13.28% | 13.17 | % | |||||||||||||
Net interest margin | 3.22 | % | 3.31 | % | 3.44 | % | 3.49 | % | 3.44 | % | ||||||||||
Efficiency ratio(1) | 63.1 | % | 63.6 | % | 64.2 | % | 63.9 | % | 62.2 | % | ||||||||||
Capital Ratios | ||||||||||||||||||||
Tangible common equity ratio(1) | 8.46 | % | 8.45 | % | 8.54 | % | 8.64 | % | 8.52 | % | ||||||||||
Tier 1 leverage ratio(2) | 8.47% | 8.52% | 8.68% | 8.92% | 9.01 | % | ||||||||||||||
Common equity Tier 1 capital ratio(2) | 9.67 | % | 9.64 | % | 9.96 | % | 10.16 | % | 10.22 | % | ||||||||||
Tier 1 capital ratio(2) | 9.67 | % | 9.64 | % | 9.96 | % | 10.16% | 10.22 | % | |||||||||||
Total risk-based capital ratio(2) | 11.79 | % | 12.01 | % | 12.44 | % | 12.63% | 12.75 | % | |||||||||||
(1) Please refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this document. | ||||||||||||||||||||
(2) Regulatory capital ratios as of December 31, 2019 are preliminary and prior periods are actual. | ||||||||||||||||||||
FULTON FINANCIAL CORPORATION | REVISED AS OF FEBRUARY 12, 2020 | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||
% Change from | ||||||||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Dec 31 | ||||||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||
Cash and due from banks | $ | 132,283 | $ | 120,671 | $ | 107,091 | $ | 115,884 | $ | 103,436 | 9.6 | % | 27.9 | % | ||||||||||||
Other interest-earning assets | 482,930 | 572,499 | 488,968 | 411,037 | 421,534 | (15.6 | )% | 14.6 | % | |||||||||||||||||
Loans held for sale | 37,828 | 33,945 | 45,754 | 27,768 | 27,099 | 11.4 | % | 39.6 | % | |||||||||||||||||
Investment securities | 2,867,378 | 2,705,610 | 2,853,358 | 2,748,249 | 2,686,973 | 6.0 | % | 6.7 | % | |||||||||||||||||
Loans, net of unearned income | 16,837,526 | 16,686,866 | 16,368,458 | 16,262,633 | 16,165,800 | 0.9 | % | 4.2 | % | |||||||||||||||||
Allowance for loan losses | (163,622 | ) | (166,135 | ) | (170,233 | ) | (162,109 | ) | (160,537 | ) | (1.5 | )% | 1.9 | % | ||||||||||||
Net loans | 16,673,904 | 16,520,731 | 16,198,225 | 16,100,524 | 16,005,263 | 0.9 | % | 4.2 | % | |||||||||||||||||
Premises and equipment | 240,046 | 237,344 | 243,300 | 239,004 | 234,529 | 1.1 | % | 2.4 | % | |||||||||||||||||
Accrued interest receivable | 60,898 | 60,447 | 62,984 | 62,207 | 58,879 | 0.7 | % | 3.4 | % | |||||||||||||||||
Goodwill and intangible assets | 535,303 | 534,178 | 535,249 | 535,356 | 531,556 | 0.2 | % | 0.7 | % | |||||||||||||||||
Other assets | 855,470 | 918,193 | 773,741 | 734,620 | 612,883 | (6.8 | )% | 39.6 | % | |||||||||||||||||
Total Assets | $ | 21,886,040 | $ | 21,703,618 | $ | 21,308,670 | $ | 20,974,649 | $ | 20,682,152 | 0.8 | % | 5.8 | % | ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||
Deposits | $ | 17,393,913 | $ | 17,342,717 | $ | 16,388,895 | $ | 16,377,978 | $ | 16,376,159 | 0.3 | % | 6.2 | % | ||||||||||||
Short-term borrowings | 883,241 | 832,860 | 1,188,390 | 829,016 | 754,777 | 6.0 | % | 17.0 | % | |||||||||||||||||
Other liabilities | 384,941 | 477,311 | 435,171 | 401,324 | 311,364 | (19.4 | )% | 23.6 | % | |||||||||||||||||
FHLB advances and long-term debt | 881,769 | 726,714 | 987,416 | 1,065,312 | 992,279 | 21.3 | % | (11.1 | )% | |||||||||||||||||
Total Liabilities | 19,543,864 | 19,379,602 | 18,999,872 | 18,673,630 | 18,434,579 | 0.8 | % | 6.0 | % | |||||||||||||||||
Shareholders' equity | 2,342,176 | 2,324,016 | 2,308,798 | 2,301,019 | 2,247,573 | 0.8 | % | 4.2 | % | |||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 21,886,040 | $ | 21,703,618 | $ | 21,308,670 | $ | 20,974,649 | $ | 20,682,152 | 0.8 | % | 5.8 | % | ||||||||||||
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||||||||||||||
Loans, by type: | ||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 6,700,776 | $ | 6,604,634 | $ | 6,497,973 | $ | 6,428,688 | $ | 6,434,285 | 1.5 | % | 4.1 | % | ||||||||||||
Commercial - industrial, financial and agricultural | 4,446,701 | 4,494,496 | 4,365,248 | 4,429,538 | 4,404,548 | (1.1 | )% | 1.0 | % | |||||||||||||||||
Real estate - residential mortgage | 2,641,465 | 2,570,793 | 2,451,966 | 2,313,908 | 2,251,044 | 2.7 | % | 17.3 | % | |||||||||||||||||
Real estate - home equity | 1,314,944 | 1,346,115 | 1,386,974 | 1,413,500 | 1,452,137 | (2.3 | )% | (9.4 | )% | |||||||||||||||||
Real estate - construction | 971,079 | 913,644 | 922,547 | 953,087 | 916,599 | 6.3 | % | 5.9 | % | |||||||||||||||||
Consumer | 463,164 | 464,213 | 452,874 | 433,545 | 419,186 | (0.2 | )% | 10.5 | % | |||||||||||||||||
Leasing and other | 299,397 | 292,971 | 290,876 | 290,367 | 288,001 | 2.2 | % | 4.0 | % | |||||||||||||||||
Total Loans, net of unearned income | $ | 16,837,526 | $ | 16,686,866 | $ | 16,368,458 | $ | 16,262,633 | $ | 16,165,800 | 0.9 | % | 4.2 | % | ||||||||||||
Deposits, by type: | ||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 4,453,324 | $ | 4,240,478 | $ | 4,226,404 | $ | 4,255,043 | $ | 4,310,105 | 5.0 | % | 3.3 | % | ||||||||||||
Interest-bearing demand | 4,720,188 | 4,771,109 | 4,083,615 | 4,207,442 | 4,240,974 | (1.1 | )% | 11.3 | % | |||||||||||||||||
Savings and money market accounts | 5,153,941 | 5,094,387 | 4,938,998 | 4,907,346 | 4,926,937 | 1.2 | % | 4.6 | % | |||||||||||||||||
Total demand and savings | 14,327,453 | 14,105,974 | 13,249,017 | 13,369,831 | 13,478,016 | 1.6 | % | 6.3 | % | |||||||||||||||||
Brokered deposits | 264,531 | 256,870 | 246,116 | 251,395 | 176,239 | 3.0 | % | 50.1 | % | |||||||||||||||||
Time deposits | 2,801,929 | 2,979,873 | 2,893,762 | 2,756,752 | 2,721,904 | (6.0 | )% | 2.9 | % | |||||||||||||||||
Total Deposits | $ | 17,393,913 | $ | 17,342,717 | $ | 16,388,895 | $ | 16,377,978 | $ | 16,376,159 | 0.3 | % | 6.2 | % | ||||||||||||
Short-term borrowings, by type: | ||||||||||||||||||||||||||
Customer repurchase agreements | $ | 56,707 | $ | 58,853 | $ | 56,496 | $ | 54,440 | $ | 43,499 | (3.6 | )% | 30.4 | % | ||||||||||||
Customer short-term promissory notes | 326,534 | 279,007 | 281,894 | 299,576 | 326,278 | 17.0 | % | 0.1 | % | |||||||||||||||||
Short-term FHLB advances | 500,000 | 475,000 | 650,000 | 475,000 | 385,000 | 5.3 | % | 29.9 | % | |||||||||||||||||
Federal funds purchased | — | 20,000 | 200,000 | — | — | (100.0 | )% | N/M | ||||||||||||||||||
Total Short-term Borrowings | $ | 883,241 | $ | 832,860 | $ | 1,188,390 | $ | 829,016 | $ | 754,777 | 6.0 | % | 17.0 | % | ||||||||||||
N/M - Not meaningful | ||||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | REVISED AS OF FEBRUARY 12, 2020 | ||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||||||||||||||||||||||||||||
in thousands | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended | % Change from | Year ended | |||||||||||||||||||||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Dec 31 | December 31 | ||||||||||||||||||||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | % Change | ||||||||||||||||||||||||||||||||
Interest Income: | |||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 202,159 | $ | 208,413 | $ | 210,034 | $ | 204,700 | $ | 200,609 | (3.0 | )% | 0.8 | % | $ | 825,306 | $ | 758,514 | 8.8 | % | |||||||||||||||||||||
Interest expense | 42,889 | 47,153 | 45,490 | 41,385 | 37,665 | (9.0 | )% | 13.9 | % | 176,917 | 128,058 | 38.2 | % | ||||||||||||||||||||||||||||
Net Interest Income | 159,270 | 161,260 | 164,544 | 163,315 | 162,944 | (1.2 | )% | (2.3 | )% | 648,389 | 630,456 | 2.8 | % | ||||||||||||||||||||||||||||
Provision for credit losses | 20,530 | 2,170 | 5,025 | 5,100 | 8,200 | N/M | 150.4 | % | 32,825 | 46,907 | (30.0 | )% | |||||||||||||||||||||||||||||
Net Interest Income after Provision | 138,740 | 159,090 | 159,519 | 158,215 | 154,744 | (12.8 | )% | (10.3 | )% | 615,564 | 583,549 | 5.5 | % | ||||||||||||||||||||||||||||
Non-Interest Income: | |||||||||||||||||||||||||||||||||||||||||
Wealth management | 14,419 | 13,867 | 14,153 | 13,239 | 13,408 | 4.0 | % | 7.5 | % | 55,678 | 52,148 | 6.8 | % | ||||||||||||||||||||||||||||
Mortgage banking | 5,076 | 6,658 | 6,593 | 4,772 | 4,774 | (23.8 | )% | 6.3 | % | 23,099 | 19,026 | 21.4 | % | ||||||||||||||||||||||||||||
Consumer banking: | |||||||||||||||||||||||||||||||||||||||||
Card | 4,991 | 5,791 | 5,047 | 4,686 | 4,966 | (13.8 | )% | 0.5 | % | 20,515 | 19,497 | 5.2 | % | ||||||||||||||||||||||||||||
Overdraft | 4,750 | 4,682 | 4,413 | 4,104 | 4,653 | 1.5 | % | 2.1 | % | 17,949 | 17,606 | 1.9 | % | ||||||||||||||||||||||||||||
Other consumer banking | 2,685 | 2,860 | 2,907 | 2,587 | 2,799 | (6.1 | )% | (4.1 | )% | 11,039 | 11,319 | (2.5 | )% | ||||||||||||||||||||||||||||
Total consumer banking | 12,426 | 13,333 | 12,367 | 11,377 | 12,418 | (6.8 | )% | 0.1 | % | 49,503 | 48,422 | 2.2 | % | ||||||||||||||||||||||||||||
Commercial banking: | |||||||||||||||||||||||||||||||||||||||||
Merchant and card | 5,841 | 6,166 | 6,512 | 5,558 | 5,656 | (5.3 | )% | 3.3 | % | 24,077 | 23,427 | 2.8 | % | ||||||||||||||||||||||||||||
Cash management | 4,697 | 4,696 | 4,638 | 4,361 | 4,340 | — | % | 8.2 | % | 18,392 | 17,581 | 4.6 | % | ||||||||||||||||||||||||||||
Commercial loan interest rate swap | 5,426 | 3,944 | 3,477 | 2,028 | 2,540 | 37.6 | % | 113.6 | % | 14,875 | 9,831 | 51.3 | % | ||||||||||||||||||||||||||||
Other commercial banking | 3,664 | 3,478 | 3,815 | 2,816 | 3,466 | 5.3 | % | 5.7 | % | 13,773 | 13,090 | 5.2 | % | ||||||||||||||||||||||||||||
Total commercial banking | 19,628 | 18,284 | 18,442 | 14,763 | 16,002 | 7.4 | % | 22.7 | % | 71,117 | 63,929 | 11.2 | % | ||||||||||||||||||||||||||||
Other | 3,732 | 3,179 | 2,584 | 2,535 | 2,921 | 17.4 | % | 27.8 | % | 12,030 | 11,963 | 0.6 | % | ||||||||||||||||||||||||||||
Non-Interest Income before Investment Securities Gains | 55,281 | 55,321 | 54,139 | 46,686 | 49,523 | (0.1 | )% | 11.6 | % | 211,427 | 195,488 | 8.2 | % | ||||||||||||||||||||||||||||
Investment securities gains, net | — | 4,492 | 176 | 65 | — | (100.0 | )% | — | % | 4,733 | 37 | N/M | |||||||||||||||||||||||||||||
Total Non-Interest Income | 55,281 | 59,813 | 54,315 | 46,751 | 49,523 | (7.6 | )% | 11.6 | % | 216,160 | 195,525 | 10.6 | % | ||||||||||||||||||||||||||||
Non-Interest Expense: | |||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | 76,975 | 78,211 | 78,991 | 77,757 | 75,745 | (1.6 | )% | 1.6 | % | 311,934 | 303,202 | 2.9 | % | ||||||||||||||||||||||||||||
Net occupancy | 13,080 | 12,368 | 14,469 | 12,909 | 12,708 | 5.8 | % | 2.9 | % | 52,826 | 51,678 | 2.2 | % | ||||||||||||||||||||||||||||
Data processing and software | 11,468 | 11,590 | 11,268 | 10,353 | 10,203 | (1.1 | )% | 12.4 | % | 44,679 | 41,286 | 8.2 | % | ||||||||||||||||||||||||||||
Other outside services | 8,215 | 12,163 | 11,259 | 8,352 | 8,944 | (32.5 | )% | (8.2 | )% | 39,989 | 33,758 | 18.5 | % | ||||||||||||||||||||||||||||
Equipment | 3,475 | 3,459 | 3,299 | 3,342 | 3,275 | 0.5 | % | 6.1 | % | 13,575 | 13,243 | 2.5 | % | ||||||||||||||||||||||||||||
Professional fees | 2,873 | 3,331 | 2,970 | 3,960 | 3,546 | (13.7 | )% | (19.0 | )% | 13,134 | 14,161 | (7.3 | )% | ||||||||||||||||||||||||||||
FDIC insurance | 2,177 | 239 | 2,755 | 2,609 | 2,563 | N/M | (15.1 | )% | 7,780 | 10,993 | (29.2 | )% | |||||||||||||||||||||||||||||
Amortization of tax credit investments | 1,505 | 1,533 | 1,492 | 1,491 | 6,538 | (1.8 | )% | (77.0 | )% | 6,021 | 11,449 | (47.4 | )% | ||||||||||||||||||||||||||||
Marketing | 1,503 | 3,322 | 2,863 | 2,160 | 1,577 | (54.8 | )% | (4.7 | )% | 9,848 | 8,854 | 11.2 | % | ||||||||||||||||||||||||||||
Intangible amortization | 142 | 1,071 | 107 | 107 | — | N/M | 100.0 | % | 1,427 | — | 100.0 | % | |||||||||||||||||||||||||||||
Prepayment penalty on FHLB advances | — | 4,326 | — | — | (100.0 | )% | — | % | 4,326 | — | 100.0 | % | |||||||||||||||||||||||||||||
Other | 17,561 | 15,157 | 14,695 | 14,784 | 15,586 | 15.9 | % | 12.7 | % | 62,197 | 57,480 | 8.2 | % | ||||||||||||||||||||||||||||
Total Non-Interest Expense | 138,974 | 146,770 | 144,168 | 137,824 | 140,685 | (5.3 | )% | (1.2 | )% | 567,736 | 546,104 | 4.0 | % | ||||||||||||||||||||||||||||
Income Before Income Taxes | 55,047 | 72,133 | 69,666 | 67,142 | 63,582 | (23.7 | )% | (13.4 | )% | 263,988 | 232,970 | 13.3 | % | ||||||||||||||||||||||||||||
Income tax expense | 7,258 | 10,025 | 9,887 | 10,479 | 5,499 | (27.6 | )% | 32.0 | % | 37,649 | 24,577 | 53.2 | % | ||||||||||||||||||||||||||||
Net Income | $ | 47,789 | $ | 62,108 | $ | 59,779 | $ | 56,663 | $ | 58,083 | (23.1 | )% | (17.7 | )% | $ | 226,339 | $ | 208,393 | 8.6 | % | |||||||||||||||||||||
PER SHARE: | |||||||||||||||||||||||||||||||||||||||||
Net income: | |||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.29 | $ | 0.38 | $ | 0.36 | $ | 0.33 | $ | 0.33 | (23.7 | )% | (12.1 | )% | $ | 1.36 | $ | 1.19 | 14.3 | % | |||||||||||||||||||||
Diluted | 0.29 | 0.37 | 0.35 | 0.33 | 0.33 | (21.6 | )% | (12.1 | )% | 1.35 | 1.18 | 14.4 | % | ||||||||||||||||||||||||||||
Cash dividends | 0.17 | 0.13 | 0.13 | 0.13 | 0.16 | 30.8 | % | 6.3 | % | 0.56 | 0.52 | 7.7 | % | ||||||||||||||||||||||||||||
Weighted average shares (basic) | 164,135 | 165,324 | 168,343 | 169,884 | 174,571 | (0.7 | )% | (6.0 | )% | 166,902 | 175,395 | (4.8 | )% | ||||||||||||||||||||||||||||
Weighted average shares (diluted) | 165,039 | 166,126 | 169,168 | 170,909 | 175,473 | (0.7 | )% | (5.9 | )% | 167,792 | 176,543 | (5.0 | )% | ||||||||||||||||||||||||||||
N/M - not meaningful | |||||||||||||||||||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | REVISED AS OF FEBRUARY 12, 2020 | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||||||||||||||||
dollars in thousands | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | ||||||||||||||||||||||||||||
Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||
Loans, net of unearned income | $ | 16,768,057 | $ | 182,024 | 4.31% | $ | 16,436,507 | $ | 188,280 | 4.55% | $ | 15,965,637 | $ | 182,358 | 4.54% | ||||||||||||||||||
Taxable investment securities | 2,198,252 | 15,621 | 2.84% | 2,282,292 | 15,565 | 2.73% | 2,283,897 | 15,005 | 2.74% | ||||||||||||||||||||||||
Tax-exempt investment securities | 594,487 | 5,058 | 3.38% | 516,907 | 4,650 | 3.57% | 426,872 | 3.978 | 3.71% | ||||||||||||||||||||||||
Total Investment Securities | 2,792,739 | 20,679 | 2.96% | 2,799,199 | 20,215 | 2.88% | 2,710,769 | 18.983 | 2.80% | ||||||||||||||||||||||||
Loans held for sale | 30,062 | 295 | 3.93% | 31,898 | 466 | 5.83% | 22,361 | 271 | 4.85% | ||||||||||||||||||||||||
Other interest-earning assets | 492,560 | 2,370 | 1.92% | 509,579 | 2,709 | 2.12% | 492,529 | 2,177 | 1.76% | ||||||||||||||||||||||||
Total Interest-earning Assets | 20,083,418 | 205,368 | 4.07% | 19,777,183 | 211,670 | 4.25% | 19,191,296 | 203.789 | 4.22% | ||||||||||||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||||||||||||
Cash and due from banks | 128,417 | 120,967 | 111,252 | ||||||||||||||||||||||||||||||
Premises and equipment | 239,294 | 240,383 | 233,445 | ||||||||||||||||||||||||||||||
Other assets | 1,528,758 | 1,491,115 | 1,131,548 | ||||||||||||||||||||||||||||||
Less: allowance for loan losses | (167,449 | ) | (171,848 | ) | (155,411 | ) | |||||||||||||||||||||||||||
Total Assets | $ | 21,812,438 | $ | 21,457,800 | $ | 20,512,130 | |||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Demand deposits | $ | 4,699,040 | $ | 8,494 | 0.72% | $ | 4,448,112 | $ | 9,163 | 0.82% | $ | 4,225,157 | $ | 7,448 | 0.70% | ||||||||||||||||||
Savings deposits | 5,205,260 | 10,253 | 0.78% | 5,026,316 | 11,059 | 0.87% | 4,979,712 | 9,745 | 0.78% | ||||||||||||||||||||||||
Brokered deposits | 261,689 | 1,279 | 1.94% | 253,426 | 1,536 | 2.40% | 164,280 | 969 | 2.34% | ||||||||||||||||||||||||
Time deposits | 2,959,008 | 13,775 | 1.86% | 2,974,993 | 13,979 | 1.86% | 2,722,141 | 9,997 | 1.46% | ||||||||||||||||||||||||
Total Interest-bearing Deposits | 13,124,997 | 33,801 | 1.02% | 12,702,847 | 35,737 | 1.12% | 12,091,290 | 28,159 | 0.92% | ||||||||||||||||||||||||
Short-term borrowings | 717,811 | 2,343 | 1.29% | 919,697 | 4,156 | 1.78% | 504,550 | 1,410 | 1.11% | ||||||||||||||||||||||||
FHLB advances and long-term debt | 875,802 | 6,745 | 3.07% | 842,706 | 7,260 | 3.44% | 988,914 | 8,096 | 3.26% | ||||||||||||||||||||||||
Total Interest-bearing Liabilities | 14,718,610 | 42,889 | 1.16% | 14,465,250 | 47,153 | 1.29% | 13,584,754 | 37,665 | 1.10% | ||||||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Demand deposits | 4,324.568 | 4,247,820 | 4,321,776 | ||||||||||||||||||||||||||||||
Total Deposits | 17,449.565 | 16,950,667 | 16,413,066 | ||||||||||||||||||||||||||||||
Other | 427.863 | 429,145 | 323,931 | ||||||||||||||||||||||||||||||
Total Liabilities | 19,471.041 | 19,142,215 | 18,230,461 | ||||||||||||||||||||||||||||||
Total Interest-bearing liabilities and non interest-bearing deposits ("Cost of Funds") | 19,043.178 | 0.89% | 18,713,070 | 1.00% | 17,906,530 | 0.84% | |||||||||||||||||||||||||||
Shareholders' equity | 2,341.397 | 2,315,585 | 2,281,669 | ||||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 21,812,438 | $ | 21,457,800 | $ | 20,512,130 | |||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 162,479 | 3.22% | 164,517 | 3.31% | 166,124 | 3.44% | |||||||||||||||||||||||||||
Tax equivalent adjustment | (3,209 | ) | (3,257 | ) | (3,180 | ) | |||||||||||||||||||||||||||
Net interest income | $ | 159,270 | $ | 161,260 | $ | 162,944 | |||||||||||||||||||||||||||
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. | |||||||||||||||||||||||||||||||||
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | |||||||||||||||||||||||||||||||||
Three Months Ended | % Change from | ||||||||||||||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Dec 31 | |||||||||||||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 6,561,029 | $ | 6,489,456 | $ | 6,424,213 | $ | 6,378,145 | $ | 6,343,024 | 1.1 | % | 3.4 | % | |||||||||||||||||||
Commercial - industrial, financial and agricultural | 4,575,133 | 4,414,992 | 4,440,860 | 4,462,609 | 4,329,937 | 3.6 | % | 5.7 | % | ||||||||||||||||||||||||
Real estate - residential mortgage | 2,606,136 | 2,512,899 | 2,366,685 | 2,276,611 | 2,209,993 | 3.7 | % | 17.9 | % | ||||||||||||||||||||||||
Real estate - home equity | 1,331,088 | 1,364,161 | 1,404,141 | 1,433,574 | 1,459,647 | (2.4 | )% | (8.8 | )% | ||||||||||||||||||||||||
Real estate - construction | 934,556 | 905,060 | 943,080 | 930,246 | 931,724 | 3.3 | % | 0.3 | % | ||||||||||||||||||||||||
Consumer | 464,606 | 457,524 | 445,666 | 424,480 | 406,436 | 1.5 | % | 14.3 | % | ||||||||||||||||||||||||
Leasing and other | 295,509 | 292,415 | 291,431 | 288,710 | 284,876 | 1.1 | % | 3.7 | % | ||||||||||||||||||||||||
Total Loans, net of unearned income | $ | 16,768,057 | $ | 16,436,507 | $ | 16,316,076 | $ | 16,194,375 | $ | 15,965,637 | 2.0 | % | 5.0 | % | |||||||||||||||||||
Deposits, by type: | |||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 4,324,568 | $ | 4,247,820 | $ | 4,200,810 | $ | 4,222,875 | $ | 4,321,776 | 1.8 | % | 0.1 | % | |||||||||||||||||||
Interest-bearing demand | 4,699,040 | 4,448,112 | 4,186,280 | 4,153,984 | 4,225,157 | 5.6 | % | 11.2 | % | ||||||||||||||||||||||||
Savings and money market accounts | 5,205,260 | 5,026,316 | 4,925,788 | 4,912,856 | 4,979,712 | 3.6 | % | 4.5 | % | ||||||||||||||||||||||||
Total demand and savings | 14,228,868 | 13,722,248 | 13,312,878 | 13,289,715 | 13,526,645 | 3.7 | % | 5.2 | % | ||||||||||||||||||||||||
Brokered deposits | 261,689 | 253,426 | 246,154 | 220,115 | 164,280 | 3.3 | % | 59.3 | % | ||||||||||||||||||||||||
Time deposits | 2,959,008 | 2,974,993 | 2,816,425 | 2,765,803 | 2,722,141 | (0.5 | )% | 8.7 | % | ||||||||||||||||||||||||
Total Deposits | $ | 17,449,565 | $ | 16,950,667 | $ | 16,375,457 | $ | 16,275,633 | $ | 16,413,066 | 2.9 | % | 6.3 | % | |||||||||||||||||||
Short-term borrowings, by type: | |||||||||||||||||||||||||||||||||
Customer repurchase agreements | $ | 59,363 | $ | 61,230 | $ | 56,171 | $ | 56,707 | $ | 64,102 | (3.0 | )% | (7.4 | )% | |||||||||||||||||||
Customer short-term promissory notes | 318,166 | 271,663 | 288,696 | 312,092 | 310,296 | 17.1 | % | 2.5 | % | ||||||||||||||||||||||||
Federal funds purchased | 91,467 | 101,022 | 181,769 | 157,122 | 43 | (9.5 | )% | N/M | |||||||||||||||||||||||||
Short-term FHLB advances and other borrowings | 248,815 | 485,782 | 414,868 | 294,133 | 130,109 | (48.8 | )% | 91.2 | % | ||||||||||||||||||||||||
Total Short-term Borrowings | $ | 717,811 | $ | 919,697 | $ | 941,504 | $ | 820,054 | $ | 504,550 | (22.0 | )% | 42.3 | % | |||||||||||||||||||
FULTON FINANCIAL CORPORATION | REVISED AS OF FEBRUARY 12, 2020 | ||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||||||
dollars in thousands | |||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Balance | Interest (1) | Yield/Rate | Balance | Interest (1) | Yield/Rate | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans, net of unearned income | $ | 16,430,347 | $ | 747,119 | 4.55 | % | $ | 15,815,263 | $ | 691,954 | 4.38 | % | |||||||||||
Taxable investment securities | 2,278,448 | 62,556 | 2.74 | % | 2,246,555 | 56,039 | 2.49 | % | |||||||||||||||
Tax-exempt investment securities | 500,398 | 17,998 | 3.57 | % | 416,119 | 15,285 | 3.65 | % | |||||||||||||||
Equity securities | — | — | — | % | 126 | 5 | 3.97 | % | |||||||||||||||
Total Investment Securities | 2,778,846 | 80,554 | 2.89 | % | 2,662,800 | 71,329 | 2.68 | % | |||||||||||||||
Loans held for sale | 25,795 | 1,351 | 5.24 | % | 22,970 | 1,159 | 5.05 | % | |||||||||||||||
Other interest-earning assets | 445,008 | 9,249 | 2.08 | % | 382,569 | 6,193 | 1.62 | % | |||||||||||||||
Total Interest-earning Assets | 19,679,996 | 838,273 | 4.26 | % | 18,883,602 | 770,635 | 4.08 | % | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||
Cash and due from banks | 119,144 | 104,595 | |||||||||||||||||||||
Premises and equipment | 239,376 | 231,762 | |||||||||||||||||||||
Other assets | 1,385,689 | 1,123,857 | |||||||||||||||||||||
Less: allowance for loan losses | (166,165 | ) | (160,614 | ) | |||||||||||||||||||
Total Assets | $ | 21,258,040 | $ | 20,183,202 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | $ | 4,384,059 | $ | 33,348 | 0.76 | % | $ | 4,063,929 | $ | 22,789 | 0.56 | % | |||||||||||
Savings deposits | 5,018,381 | 41,823 | 0.83 | % | 4,684,023 | 27,226 | 0.58 | % | |||||||||||||||
Brokered deposits | 245,483 | 5,779 | 2.35 | % | 121,863 | 2,480 | 2.04 | % | |||||||||||||||
Time deposits | 2,869,344 | 50,825 | 1.77 | % | 2,675,670 | 35,217 | 1.32 | % | |||||||||||||||
Total Interest-bearing Deposits | 12,517,267 | 131,775 | 1.05 | % | 11,545,485 | 87,712 | 0.76 | % | |||||||||||||||
Short-term borrowings | 849,679 | 14,543 | 1.70 | % | 785,923 | 8,489 | 1.07 | % | |||||||||||||||
FHLB advances and long-term debt | 942,600 | 30,599 | 3.25 | % | 977,573 | 31,857 | 3.26 | % | |||||||||||||||
Total Interest-bearing Liabilities | 14,309,546 | 176,917 | 1.24 | % | 13,308,981 | 128,058 | 0.96 | % | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | 4,249,294 | 4,287,121 | |||||||||||||||||||||
Total Deposits | 16,766,561 | 15,832,606 | |||||||||||||||||||||
Other | 393,130 | 331,336 | |||||||||||||||||||||
Total Liabilities | 18,951,970 | 17,927,438 | |||||||||||||||||||||
Total Interest-bearing liabilities and non interest-bearing deposits ("Cost of Funds") | 18,558,840 | 0.95 | % | 17,596,102 | 0.73 | % | |||||||||||||||||
Shareholders' equity | 2,306,070 | 2,255,764 | |||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 21,258,040 | $ | 20,183,202 | |||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 661,356 | 3.36 | % | 642,577 | 3.40 | % | |||||||||||||||||
Tax equivalent adjustment | (12,967 | ) | (12,121 | ) | |||||||||||||||||||
Net interest income | $ | 648,389 | $ | 630,456 | |||||||||||||||||||
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. | |||||||||||||||||||||||
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | |||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||
December 31 | |||||||||||||||||||||||
2019 | 2018 | % Change | |||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 6,463,783 | $ | 6,314,349 | 2.4 | % | |||||||||||||||||
Commercial - industrial, financial and agricultural | 4,473,549 | 4,314,584 | 3.7 | % | |||||||||||||||||||
Real estate - residential mortgage | 2,441,684 | 2,085,258 | 17.1 | % | |||||||||||||||||||
Real estate - home equity | 1,382,908 | 1,493,620 | (7.4 | )% | |||||||||||||||||||
Real estate - construction | 928,183 | 965,835 | (3.9 | )% | |||||||||||||||||||
Consumer | 448,205 | 361,186 | 24.1 | % | |||||||||||||||||||
Leasing and other | 292,035 | 280,431 | 4.1 | % | |||||||||||||||||||
Total Loans, net of unearned income | $ | 16,430,347 | $ | 15,815,263 | 3.9 | % | |||||||||||||||||
Deposits, by type: | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 4,249,294 | $ | 4,287,121 | (0.9 | )% | |||||||||||||||||
Interest-bearing demand | 4,384,059 | 4,063,929 | 7.9 | % | |||||||||||||||||||
Savings and money market accounts | 5,018,381 | 4,684,023 | 7.1 | % | |||||||||||||||||||
Total demand and savings | 13,651,734 | 13,035,073 | 4.7 | % | |||||||||||||||||||
Brokered deposits | 245,483 | 121,863 | 101.4 | % | |||||||||||||||||||
Time deposits | 2,869,344 | 2,675,670 | 7.2 | % | |||||||||||||||||||
Total Deposits | $ | 16,766,561 | $ | 15,832,606 | 5.9 | % | |||||||||||||||||
Short-term borrowings, by type: | |||||||||||||||||||||||
Customer repurchase agreements | $ | 58,384 | $ | 137,198 | (57.4 | )% | |||||||||||||||||
Customer short-term promissory notes | 297,599 | 308,470 | (3.5 | )% | |||||||||||||||||||
Federal funds purchased | 132,578 | 229,715 | (42.3 | )% | |||||||||||||||||||
Short-term FHLB advances and other borrowings | 361,118 | 110,540 | N/M | ||||||||||||||||||||
Total Short-term Borrowings | $ | 849,679 | $ | 785,923 | 8.1 | % | |||||||||||||||||
N/M - not meaningful | |||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | REVISED AS OF FEBRUARY 12, 2020 | |||||||||||||||||||||||||||
ASSET QUALITY INFORMATION (UNAUDITED) | ||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Dec 31 | |||||||||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||||||||||
Balance at beginning of period | $ | 172,797 | $ | 176,941 | $ | 170,372 | $ | 169,410 | $ | 167,826 | $ | 169,410 | $ | 176,084 | ||||||||||||||
Loans charged off: | ||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | (30,547 | ) | (7,181 | ) | (1,895 | ) | (2,787 | ) | (6,263 | ) | (42,410 | ) | (52,441 | ) | ||||||||||||||
Real estate - commercial mortgage | (68 | ) | (394 | ) | (230 | ) | (1,145 | ) | (762 | ) | (1,837 | ) | (2,045 | ) | ||||||||||||||
Consumer and home equity | (1,416 | ) | (1,375 | ) | (1,001 | ) | (902 | ) | (1,884 | ) | (4,694 | ) | (6,127 | ) | ||||||||||||||
Real estate - residential mortgage | (223 | ) | (533 | ) | (134 | ) | (655 | ) | (446 | ) | (1,545 | ) | (1,574 | ) | ||||||||||||||
Real estate - construction | — | (45 | ) | (3 | ) | (95 | ) | (392 | ) | (143 | ) | (1,368 | ) | |||||||||||||||
Leasing and other | (727 | ) | (600 | ) | (448 | ) | (785 | ) | (889 | ) | (2,560 | ) | (2,521 | ) | ||||||||||||||
Total loans charged off | (32,981 | ) | (10,128 | ) | (3,711 | ) | (6,369 | ) | (10,636 | ) | (53,189 | ) | (66,076 | ) | ||||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | 2,487 | 2,311 | 2,680 | 1,243 | 2,647 | 8,721 | 4,994 | |||||||||||||||||||||
Real estate - commercial mortgage | 1,453 | 444 | 169 | 136 | 94 | 2,202 | 1,622 | |||||||||||||||||||||
Consumer and home equity | 437 | 348 | 802 | 407 | 684 | 1,994 | 2,393 | |||||||||||||||||||||
Real estate - residential mortgage | 206 | 440 | 211 | 132 | 100 | 989 | 620 | |||||||||||||||||||||
Real estate - construction | 1,098 | 164 | 1,245 | 84 | 415 | 2,591 | 1,829 | |||||||||||||||||||||
Leasing and other | 182 | 107 | 148 | 229 | 80 | 666 | 1,037 | |||||||||||||||||||||
Recoveries of loans previously charged off | 5,863 | 3,814 | 5,255 | 2,231 | 4,020 | 17,163 | 12,495 | |||||||||||||||||||||
Net loans recovered (charged off) | (27,118 | ) | (6,314 | ) | 1,544 | (4,138 | ) | (6,616 | ) | (36,026 | ) | (53,581 | ) | |||||||||||||||
Provision for credit losses | 20,530 | 2,170 | 5,025 | 5,100 | 8,200 | 32,825 | 46,907 | |||||||||||||||||||||
Balance at end of period | $ | 166,209 | $ | 172,797 | $ | 176,941 | $ | 170,372 | $ | 169,410 | $ | 166,209 | $ | 169,410 | ||||||||||||||
Net charge-offs (recoveries) to average loans (annualized) | 0.65 | % | 0.15 | % | (0.04 | )% | 0.10 | % | 0.17 | % | 0.22 | % | 0.34 | % | ||||||||||||||
NON-PERFORMING ASSETS: | ||||||||||||||||||||||||||||
Non-accrual loans | $ | 125,098 | $ | 124,287 | $ | 133,118 | $ | 127,141 | $ | 128,572 | ||||||||||||||||||
Loans 90 days past due and accruing | 16,057 | 11,689 | 14,598 | 11,540 | 11,106 | |||||||||||||||||||||||
Total non-performing loans | 141,155 | 135,976 | 147,716 | 138,681 | 139,678 | |||||||||||||||||||||||
Other real estate owned | 6,831 | 7,706 | 7,241 | 9,012 | 10,518 | |||||||||||||||||||||||
Total non-performing assets | $ | 147,986 | $ | 143,682 | $ | 154,957 | $ | 147,693 | $ | 150,196 | ||||||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||||||||||
Commercial - industrial, financial and agricultural | $ | 49,491 | $ | 37,126 | $ | 47,260 | $ | 50,148 | $ | 51,269 | ||||||||||||||||||
Real estate - commercial mortgage | 37,279 | 45,710 | 43,850 | 29,817 | 32,153 | |||||||||||||||||||||||
Real estate - residential mortgage | 22,411 | 20,150 | 21,659 | 22,299 | 19,101 | |||||||||||||||||||||||
Consumer and home equity | 11,026 | 11,012 | 12,378 | 10,770 | 10,178 | |||||||||||||||||||||||
Real estate - construction | 4,306 | 4,312 | 4,632 | 7,039 | 7,390 | |||||||||||||||||||||||
Leasing | 16,642 | 17,666 | 17,937 | 18,608 | 19,587 | |||||||||||||||||||||||
Total non-performing loans | $ | 141,155 | $ | 135,976 | $ | 147,716 | $ | 138,681 | $ | 139,678 | ||||||||||||||||||
FULTON FINANCIAL CORPORATION | REVISED AS OF FEBRUARY 12, 2020 | |||||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (UNAUDITED) | ||||||||||||||||||||||||||||||||||
in thousands, except per share data and percentages | ||||||||||||||||||||||||||||||||||
Explanatory note: | This press release contains certain 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 quarterly results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow: | |||||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Dec 31 | Dec 31 | ||||||||||||||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
Shareholders' equity (tangible), per share | ||||||||||||||||||||||||||||||||||
Shareholders' equity | $ | 2,342,176 | $ | 2,324,016 | $ | 2,308,798 | $ | 2,301,019 | $ | 2,247,573 | ||||||||||||||||||||||||
Less: Goodwill and intangible assets | (535,303 | ) | (534,178 | ) | (535,249 | ) | (535,356 | ) | (531,556 | ) | ||||||||||||||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,806,873 | $ | 1,789,838 | $ | 1,773,549 | $ | 1,765,663 | $ | 1,716,017 | ||||||||||||||||||||||||
Shares outstanding, end of period (denominator) | 164,218 | 164,036 | 166,903 | 169,923 | 170,184 | |||||||||||||||||||||||||||||
Shareholders' equity (tangible), per share | $ | 11.00 | $ | 10.91 | $ | 10.63 | $ | 10.39 | $ | 10.08 | ||||||||||||||||||||||||
Return on average shareholders' equity (tangible) | ||||||||||||||||||||||||||||||||||
Net income | $ | 47,789 | $ | 62,108 | $ | 59,779 | $ | 56,663 | $ | 58,083 | $ | 226,339 | $ | 208,393 | ||||||||||||||||||||
Plus: Intangible amortization, net of tax | 112 | 846 | 85 | 85 | — | 1,127 | — | |||||||||||||||||||||||||||
Numerator | $ | 47,901 | $ | 62,954 | $ | 59,864 | $ | 56,748 | $ | 58,083 | $ | 227,466 | $ | 208,393 | ||||||||||||||||||||
Average shareholders' equity | $ | 2,341,397 | $ | 2,315,585 | $ | 2,301,258 | $ | 2,265,097 | $ | 2,281,669 | $ | 2,306,070 | $ | 2,255,764 | ||||||||||||||||||||
Less: Goodwill and intangible assets | (534,190 | ) | (535,184 | ) | (535,301 | ) | (531,767 | ) | (531,556 | ) | $ | (534,120 | ) | $ | (531,556 | ) | ||||||||||||||||||
Average tangible shareholders' equity (denominator) | $ | 1,807,207 | $ | 1,780,401 | $ | 1,765,957 | $ | 1,733,330 | $ | 1,750,113 | $ | 1,771,950 | $ | 1,724,208 | ||||||||||||||||||||
Return on average shareholders' equity (tangible), annualized | 10.52 | % | 14.03 | % | 13.60 | % | 13.28 | % | 13.17 | % | 12.84 | % | 12.09 | % | ||||||||||||||||||||
Tangible Common Equity to Tangible Assets (TCE Ratio) | ||||||||||||||||||||||||||||||||||
Shareholders' equity | $ | 2,342,176 | $ | 2,324,016 | $ | 2,308,798 | $ | 2,301,019 | $ | 2,247,573 | ||||||||||||||||||||||||
Less: Goodwill and intangible assets | (535,303 | ) | (534,178 | ) | (535,249 | ) | (535,356 | ) | (531,556 | ) | ||||||||||||||||||||||||
Tangible shareholders' equity (numerator) | $ | 1,806,873 | $ | 1,789,838 | $ | 1,773,549 | $ | 1,765,663 | $ | 1,716,017 | ||||||||||||||||||||||||
Total assets | $ | 21,886,040 | $ | 21,703,618 | $ | 21,308,670 | $ | 20,974,649 | $ | 20,682,152 | ||||||||||||||||||||||||
Less: Goodwill and intangible assets | (535,303 | ) | (534,178 | ) | (535,249 | ) | (535,356 | ) | (531,556 | ) | ||||||||||||||||||||||||
Total tangible assets (denominator) | $ | 21,350,737 | $ | 21,169,440 | $ | 20,773,421 | $ | 20,439,293 | $ | 20,150,596 | ||||||||||||||||||||||||
Tangible Common Equity to Tangible Assets | 8.46 | % | 8.45 | % | 8.54 | % | 8.64 | % | 8.52 | % | ||||||||||||||||||||||||
Efficiency ratio | ||||||||||||||||||||||||||||||||||
Non-interest expense | $ | 138,974 | $ | 146,770 | $ | 144,168 | $ | 137,824 | $ | 140,685 | $ | 567,736 | $ | 546,104 | ||||||||||||||||||||
Less: Intangible amortization | (142 | ) | (1,071 | ) | (107 | ) | (107 | ) | — | (1,427 | ) | — | ||||||||||||||||||||||
Less: Amortization of tax credit investments | (1,505 | ) | (1,533 | ) | (1,492 | ) | (1,491 | ) | (6,538 | ) | (6,021 | ) | (11,449 | ) | ||||||||||||||||||||
Less: Prepayment penalty on FHLB advances | — | (4,326 | ) | — | — | — | (4,326 | ) | — | |||||||||||||||||||||||||
Non-interest expense (numerator) | $ | 137,327 | $ | 139,840 | $ | 142,569 | $ | 136,226 | $ | 134,147 | $ | 555,962 | $ | 534,655 | ||||||||||||||||||||
Net interest income (fully taxable equivalent) | $ | 162,479 | $ | 164,517 | $ | 167,794 | $ | 166,564 | $ | 166,124 | $ | 661,356 | $ | 642,577 | ||||||||||||||||||||
Plus: Total Non-interest income | 55,281 | 59,813 | 54,315 | 46,751 | 49,523 | 216,160 | 195,525 | |||||||||||||||||||||||||||
Less: Investment securities gains | — | (4,492 | ) | (176 | ) | (65 | ) | — | (4,733 | ) | (37 | ) | ||||||||||||||||||||||
Net interest income (denominator) | $ | 217,760 | $ | 219,838 | $ | 221,933 | $ | 213,250 | $ | 215,647 | $ | 872,783 | $ | 838,065 | ||||||||||||||||||||
Efficiency ratio | 63.1 | % | 63.6 | % | 64.2 | % | 63.9 | % | 62.2 | % | 63.7 | % | 63.8 | % | ||||||||||||||||||||
Non-performing assets to tangible common shareholders' equity and allowance for credit losses | ||||||||||||||||||||||||||||||||||
Non-performing assets (numerator) | $ | 147,986 | $ | 143,682 | $ | 154,957 | $ | 147,693 | $ | 150,196 | ||||||||||||||||||||||||
Tangible shareholders' equity | $ | 1,806,873 | $ | 1,789,838 | 1,773,549 | 1,765,663 | $ | 1,716,017 | ||||||||||||||||||||||||||
Plus: Allowance for credit losses | 166,209 | 172,797 | 176,941 | 170,372 | 169,410 | |||||||||||||||||||||||||||||
Tangible shareholders' equity and allowance for credit losses (denominator) | $ | 1,973,082 | $ | 1,962,635 | $ | 1,950,490 | $ | 1,936,035 | $ | 1,885,427 | ||||||||||||||||||||||||
Non-performing assets to tangible shareholders' equity and allowance for credit losses | 7.50 | % | 7.32 | % | 7.94 | % | 7.63 | % | 7.97 | % | ||||||||||||||||||||||||
Pre-provision net revenue | ||||||||||||||||||||||||||||||||||
Net interest income | $ | 159,270 | $ | 161,260 | $ | 164,544 | $ | 163,315 | $ | 162,944 | $ | 648,389 | $ | 630,456 | ||||||||||||||||||||
Non-interest income | 55,281 | 59,813 | 54,315 | 46,751 | 49,523 | 216,160 | 195,525 | |||||||||||||||||||||||||||
Less: Investment securities gains | — | (4,492 | ) | (176 | ) | (65 | ) | — | (4,733 | ) | (37 | ) | ||||||||||||||||||||||
Total revenue | $ | 214,551 | $ | 216,581 | $ | 218,683 | $ | 210,001 | $ | 212,467 | $ | 859,816 | $ | 825,944 | ||||||||||||||||||||
Non-interest expense | $ | 138,974 | $ | 146,770 | $ | 144,168 | $ | 137,824 | $ | 140,685 | $ | 567,736 | $ | 546,104 | ||||||||||||||||||||
Less: Prepayment penalty on FHLB advances | — | (4,326 | ) | — | — | — | (4,326 | ) | — | |||||||||||||||||||||||||
Less: Amortization of tax credit investments | (1,505 | ) | (1,533 | ) | (1,492 | ) | (1,491 | ) | (6,538 | ) | (6,021 | ) | (11,449 | ) | ||||||||||||||||||||
Less: Intangible amortization | (142 | ) | (1,071 | ) | (107 | ) | (107 | ) | — | (1,427 | ) | — | ||||||||||||||||||||||
Total non-interest expense | $ | 137,327 | $ | 139,840 | $ | 142,569 | $ | 136,226 | $ | 134,147 | $ | 555,962 | $ | 534,655 | ||||||||||||||||||||
Pre-provision net revenue | $ | 77,224 | $ | 76,741 | $ | 76,114 | $ | 73,775 | $ | 78,320 | $ | 303,854 | $ | 291,289 | ||||||||||||||||||||