Fulton Financial Corporation Announces Third Quarter 2024 Results

PR Newswire · 10/15 20:30

LANCASTER, Pa., Oct. 15, 2024 /PRNewswire/ -- Fulton Financial Corporation (NASDAQ: FULT) ("Fulton" or the "Corporation") reported net income available to common shareholders of $60.6 million, or $0.33 per diluted share, for the third quarter of 2024, a decrease of $31.8 million, or $0.19 per share, in comparison to the second quarter of 2024. Operating net income available to common shareholders for the three months ended September 30, 2024 was $91.3 million, or $0.50 per diluted share(1), an increase of $8.8 million, or $0.03 per share, in comparison to the second quarter of 2024.

"We are excited about the progress we made on key strategic initiatives and pleased to see that this work has generated record operating earnings this quarter," said Curtis J. Myers, Chairman and CEO of Fulton. "We continue to see strong operating revenue growth, improvement in operating efficiency and profitability, combined with solid organic capital generation."

Financial Highlights

Third quarter of 2024 operating results of $0.50 per diluted share represented an all-time high for Fulton and was impacted by the following items:

  • Solid net interest margin of 3.49%, an increase of six basis points compared to the prior quarter.



  • Excluding brokered deposits, customer deposits increased $745.0 million compared to the prior quarter.



  • Common equity tier 1 capital increased to 10.5%, compared to 10.3% in the prior quarter.



  • Tangible shareholders' equity per common share increased $0.59, or 4.7%, to $13.02 compared to the prior quarter.



  • Acquisition-related(2) expenses of $14.2 million.



  • FultonFirst implementation and asset disposal costs of $9.4 million.

The following items highlight notable changes in the components of net income in the third quarter of 2024 compared to the second quarter of 2024:

  • Net interest income totaled $258.0 million, an increase of $16.3 million, which was largely due to the full-quarter impact of the Acquisition and an increase in on-balance sheet liquidity.



  • Non-interest income before investment securities gains (losses) was $59.7 million compared to $113.3 million in the second quarter of 2024. The decrease was primarily due to a $55.1 million change in the gain on acquisition (net of tax) with a $7.7 million reduction recorded in the third quarter of 2024.



  • Non-interest expense was $226.1 million compared to $219.8 million in the second quarter of 2024, excluding the $20.3 million gain on the sale-leaseback transaction, reflected in other expense in the second quarter of 2024. The increase was largely due to an $8.2 million increase in salaries and benefits expense driven by a $4.9 million increase in employee severance costs related to the FultonFirst initiative, a full-quarter impact of salaries and benefits from the Acquisition resulting in an increase of $2.7 million and a $1.7 million increase in incentive compensation expense. The increase in salaries and benefits expense was partially offset by a $1.4 million decrease in consulting costs related to the FultonFirst initiative.

Balance Sheet Summary

  • Net loans totaled $24.2 billion, an increase of $69.8 million compared to $24.1 billion as of June 30, 2024. The increase was largely due to increases of $203.7 million and $53.8 million in commercial mortgage loans and residential mortgage loans, respectively, partially offset by decreases of $130.8 million, $53.1 million and $40.4 million in construction loans, commercial and industrial loans and consumer loans, respectively. Excluding the impact from the day 1 Purchased Credit Deteriorated ("PCD") adjustment of $55.9 million and purchase accounting accretion of $24.9 million, net loans acquired in the Acquisition declined approximately $82.3 million since the Acquisition Date. Excluding purchase accounting accretion of $14.5 million, net loans acquired in the Acquisition declined approximately $49.2 million to $2.5 billion, compared to the second quarter of 2024.



  • Deposits totaled $26.2 billion, an increase of $592.5 million compared to $25.6 billion as of June 30, 2024. The increase was primarily due to increases of $374.2 million, $301.4 million and $177.1 million in time deposits, interest-bearing demand deposits and savings deposits, respectively, partially offset by decreases of $152.5 million in brokered deposits and $107.7 million in noninterest-bearing demand deposits. Deposits assumed in the Acquisition declined approximately $248.6 million since the Acquisition Date and increased approximately $108.7 million to $3.9 billion compared to the second quarter of 2024.

Provision for Credit Losses and Asset Quality

  • The provision for credit losses was $11.9 million in the third quarter of 2024 compared to $32.1 million in the second quarter of 2024. The decrease was primarily related to the Acquisition, which included a provision for credit losses of $23.4 million for non-PCD loans in the second quarter of 2024.



  • Non-performing assets were $205.0 million, or 0.64% of total assets, at September 30, 2024, in comparison to $174.0 million, or 0.55% of total assets, at June 30, 2024.



  • Net charge-offs for the third quarter of 2024 were 0.18% of total average loans in comparison to 0.19% in the second quarter of 2024.



  • The allowance for credit losses attributable to net loans remained relatively unchanged and totaled $376.0 million, or 1.56% of total loans at September 30, 2024, compared to $375.9 million, or 1.56% of total loans at June 30, 2024.

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

(1)

Financial measure derived by methods other than generally accepted accounting principles ("GAAP"). Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of the press release.




(2)

On April 26, 2024, the Corporation announced that its wholly owned banking subsidiary, Fulton Bank, National Association ("Fulton Bank"), acquired substantially all of the assets and assumed substantially all of the deposits and certain liabilities of Republic First Bank, doing business as Republic Bank ("Republic Bank"), from the Federal Deposit Insurance Corporation (the "FDIC"), as receiver for Republic Bank (the "Acquisition"), pursuant to the terms of the Purchase and Assumption Agreement - Whole Bank, All Deposits, effective as of April 26, 2024 (the "Acquisition Date"), among the FDIC, as receiver of Republic Bank, the FDIC and Fulton Bank.

Safe Harbor Statement

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

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

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov).

Non-GAAP Financial Measures

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

FULTON FINANCIAL CORPORATION













SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)













(dollars in thousands, except per share and shares data)















Three months ended



Sep 30

Jun 30

Mar 31

Dec  31

Sep 30



2024

2024

2024

2023

2023

Ending Balances



















Investment securities

$   4,545,278

$    4,184,027

$   3,783,392

$   3,666,274

$   3,698,601

Net loans

24,176,075

24,106,297

21,444,483

21,351,094

21,177,508

Total assets

32,185,726

31,769,813

27,642,957

27,571,915

27,375,177

Deposits

26,152,144

25,559,654

21,741,950

21,537,623

21,421,589

Shareholders' equity

3,203,943

3,101,609

2,757,679

2,760,139

2,566,693























Average Balances



















Investment securities

4,237,805

4,043,136

3,672,844

3,665,261

3,834,824

Net loans

24,147,801

23,345,914

21,370,033

21,255,779

21,121,277

Total assets

31,895,235

30,774,891

27,427,626

27,397,671

27,377,836

Deposits

25,778,259

24,642,954

21,378,754

21,476,548

21,357,295

Shareholders' equity

3,160,322

2,952,671

2,766,945

2,618,024

2,645,977























Income Statement



















Net interest income

258,009

241,720

206,937

212,006

213,842

Provision for credit losses

11,929

32,056

10,925

9,808

9,937

Non-interest income

59,673

92,994

57,140

59,378

55,961

Non-interest expense

226,089

199,488

177,600

180,552

171,020

Income before taxes

79,664

103,170

75,552

81,024

88,846

Net income available to common shareholders

60,644

92,413

59,379

61,701

69,535























Per Share



















Net income available to common shareholders (basic)

$0.33

$0.53

$0.36

$0.38

$0.42

Net income available to common shareholders (diluted)

$0.33

$0.52

$0.36

$0.37

$0.42

Operating net income available to common shareholders(1)

$0.50

$0.47

$0.40

$0.42

$0.43

Cash dividends

$0.17

$0.17

$0.17

$0.17

$0.16

Common shareholders' equity

$16.55

$16.00

$15.82

$15.67

$14.47

Common shareholders' equity (tangible)(1)

$13.02

$12.43

$12.37

$12.25

$11.05

Weighted average shares (basic)

181,905

175,305

162,706

163,975

164,566

Weighted average shares (diluted)

183,609

176,934

164,520

165,650

166,023























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

























Three months ended



Sep 30

Jun 30

Mar 31

Dec  31

Sep 30



2024

2024

2024

2023

2023

Asset Quality



















Net charge-offs to average loans

0.18 %

0.19 %

0.16 %

0.15 %

0.10 %

Non-performing loans to total net loans

0.84 %

0.72 %

0.73 %

0.72 %

0.67 %

Non-performing assets to total assets

0.64 %

0.55 %

0.57 %

0.56 %

0.52 %

ACL - loans(1) to total loans

1.56 %

1.56 %

1.39 %

1.37 %

1.38 %

ACL - loans(1) to non-performing loans

186 %

218 %

191 %

191 %

208 %























Profitability



















Return on average assets

0.79 %

1.24 %

0.91 %

0.93 %

1.04 %

Operating return on average assets(2)

1.17 %

1.11 %

1.00 %

1.03 %

1.08 %

Return on average common shareholders' equity

8.13 %

13.47 %

9.28 %

10.09 %

11.25 %

Operating return on average common shareholders' equity (tangible)(2)

15.65 %

15.56 %

13.08 %

14.68 %

15.17 %

Net interest margin

3.49 %

3.43 %

3.32 %

3.36 %

3.40 %

Efficiency ratio(2)

59.6 %

62.6 %

63.2 %

62.0 %

61.5 %

Non-interest expense to total average assets

2.82 %

2.61 %

2.60 %

2.61 %

2.48 %

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

2.45 %

2.55 %

2.49 %

2.47 %

2.47 %























Capital Ratios(3)



















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

7.5 %

7.3 %

7.4 %

7.4 %

6.8 %

Tier 1 leverage ratio

8.9 %

9.2 %

9.3 %

9.5 %

9.4 %

Common equity Tier 1 capital ratio

10.5 %

10.3 %

10.3 %

10.3 %

10.3 %

Tier 1 risk-based capital ratio

11.3 %

11.1 %

11.1 %

11.2 %

11.1 %

Total risk-based capital ratio

14.0 %

13.8 %

14.0 %

14.0 %

14.0 %























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

    ("OBS") credit exposures.

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

(3) Regulatory capital ratios as of September 30, 2024 are preliminary estimates and prior periods are actual.

 

FULTON FINANCIAL CORPORATION



CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)



(dollars in thousands)





























Sep 30

Jun 30

Mar 31

Dec  31

Sep 30




2024

2024

2024

2023

2023

ASSETS

















Cash and due from banks

$     296,500

$     333,238

$     247,581

$     300,343

$     304,042


Other interest-earning assets

1,287,392

1,188,341

231,389

373,772

222,781


Loans held for sale

17,678

26,822

10,624

15,158

20,368


Investment securities

4,545,278

4,184,027

3,783,392

3,666,274

3,698,601


Net loans

24,176,075

24,106,297

21,444,483

21,351,094

21,177,508


Less: ACL - loans(1)

(375,961)

(375,941)

(297,888)

(293,404)

(292,739)


   Loans, net

23,800,114

23,730,356

21,146,595

21,057,690

20,884,769


Net premises and equipment

171,731

180,642

213,541

222,881

215,626


Accrued interest receivable

115,903

120,752

107,089

107,972

101,624


Goodwill and intangible assets

641,739

648,026

560,114

560,687

561,284


Other assets

1,309,391

1,357,609

1,342,632

1,267,138

1,366,082


    Total Assets

$ 32,185,726

$ 31,769,813

$ 27,642,957

$ 27,571,915

$ 27,375,177

LIABILITIES AND SHAREHOLDERS' EQUITY

















Deposits

$ 26,152,144

$ 25,559,654

$ 21,741,950

$ 21,537,623

$ 21,421,589


Borrowings

2,052,227

2,178,597

2,296,040

2,487,526

2,370,112


Other liabilities

777,412

929,953

847,288

786,627

1,016,783


    Total Liabilities

28,981,783

28,668,204

24,885,278

24,811,776

24,808,484


Shareholders' equity

3,203,943

3,101,609

2,757,679

2,760,139

2,566,693


    Total Liabilities and Shareholders' Equity

$ 32,185,726

$ 31,769,813

$ 27,642,957

$ 27,571,915

$ 27,375,177






















LOANS, DEPOSITS AND BORROWINGS DETAIL:











Loans, by type:

















Real estate - commercial mortgage

$  9,493,479

$  9,289,770

$  8,252,117

$  8,127,728

$  8,106,300


Commercial and industrial

4,914,734

4,967,796

4,467,589

4,545,552

4,577,334


Real estate - residential mortgage

6,302,624

6,248,856

5,395,720

5,325,923

5,279,681


Real estate - home equity

1,144,402

1,120,878

1,040,335

1,047,184

1,045,438


Real estate - construction

1,332,954

1,463,799

1,249,199

1,239,075

1,078,263


Consumer

651,717

692,086

698,421

729,318

743,976


Leases and other loans(2)

336,165

323,112

341,102

336,314

346,516


Total Net Loans

$ 24,176,075

$ 24,106,297

$ 21,444,483

$ 21,351,094

$ 21,177,508

Deposits, by type:

















Noninterest-bearing demand

$  5,501,699

$  5,609,383

$  5,086,514

$  5,314,094

$  5,575,374


Interest-bearing demand

7,779,472

7,478,077

5,521,017

5,722,695

5,757,487


Savings

7,740,595

7,563,495

6,846,038

6,616,901

6,707,729


     Total demand and savings

21,021,766

20,650,955

17,453,569

17,653,690

18,040,590


Brokered

843,473

995,975

1,152,427

1,144,692

941,059


Time

4,286,905

3,912,724

3,135,954

2,739,241

2,439,940


Total Deposits

$ 26,152,144

$ 25,559,654

$ 21,741,950

$ 21,537,623

$ 21,421,589

Borrowings, by type:

















Federal funds purchased

$              —

$              —

$              —

$     240,000

$     544,000


Federal Home Loan Bank advances

950,000

750,000

900,000

1,100,000

730,000


Senior debt and subordinated debt

535,917

535,741

535,566

535,384

540,174


Other borrowings

566,310

892,856

860,474

612,142

555,938


Total Borrowings

$  2,052,227

$  2,178,597

$  2,296,040

$  2,487,526

$  2,370,112






















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

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






















 

FULTON FINANCIAL CORPORATION







CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)







(dollars in thousands, except per share and share data)













Three months ended

Nine months ended







Sep 30

Jun 30

Mar 31

Dec  31

Sep 30

Sep 30






2024

2024

2024

2023

2023

2024

2023

Net Interest Income:





























Interest income

$ 427,656

$ 400,506

$ 339,666

$ 338,134

$ 330,371

$  1,167,828

$ 935,103


Interest expense

169,647

158,786

132,729

126,128

116,529

461,162

292,822


    Net Interest Income

258,009

241,720

206,937

212,006

213,842

706,666

642,281


Provision for credit losses

11,929

32,056

10,925

9,808

9,937

54,910

44,228


    Net Interest Income after Provision

246,080

209,664

196,012

202,198

203,905

651,756

598,053

Non-Interest Income:





























Wealth management

21,596

20,990

20,155

19,388

19,413

62,741

56,152


Commercial banking:





























   Merchant and card

7,496

7,798

6,808

7,045

7,626

22,103

22,160


   Cash management

7,201

6,966

6,305

6,030

5,960

20,473

17,310


   Capital markets

3,311

2,585

2,341

4,258

2,960

8,236

11,396


   Other commercial banking

4,281

4,061

3,375

3,447

3,176

11,716

9,514


Total commercial banking

22,289

21,410

18,829

20,780

19,722

62,528

60,380


Consumer banking:





























  Card

7,917

8,305

6,628

6,739

6,770

22,850

19,604


  Overdraft

3,957

3,377

2,786

2,991

2,996

10,120

8,425


  Other consumer banking

3,054

2,918

2,254

2,357

2,407

8,226

7,081


Total consumer banking

14,928

14,600

11,668

12,087

12,173

41,196

35,110


Mortgage banking

3,142

3,951

3,090

2,288

3,190

10,183

8,100


Gain on acquisition, net of tax

(7,706)

47,392

—

—

—

39,685

—


Other

5,425

4,933

3,398

5,587

1,463

13,756

8,539


Non-interest income before investment securities gains (losses)

59,674

113,276

57,140

60,130

55,961

230,089

168,281


Investment securities gains (losses), net

(1)

(20,282)

—

(752)

—

(20,283)

19


    Total Non-Interest Income

59,673

92,994

57,140

59,378

55,961

209,806

168,300

Non-Interest Expense:





























Salaries and employee benefits

118,824

110,630

95,481

97,275

96,757

324,935

280,142


Data processing and software

20,314

20,357

17,661

16,985

16,914

58,332

49,486


Net occupancy

18,999

17,793

16,149

14,647

14,561

52,942

43,373


Other outside services

15,839

16,933

13,283

14,670

12,094

46,055

33,054


Intangible amortization

6,287

4,688

573

597

601

11,548

2,347


FDIC insurance

5,109

6,696

6,104

11,138

4,738

17,909

14,427


Equipment



4,860

4,561

4,040

3,995

3,475

13,461

10,395


Professional fees

2,811

2,571

2,088

2,302

1,869

7,470

6,090


Marketing

2,251

2,101

1,912

3,550

1,913

6,263

5,454


Acquisition-related expenses

14,195

13,803

—

—

—

27,998

—


Other

16,600

(645)

20,309

15,393

18,098

36,263

53,888


    Total Non-Interest Expense

226,089

199,488

177,600

180,552

171,020

603,176

498,656


    Income Before Income Taxes

79,664

103,170

75,552

81,024

88,846

258,386

267,697


Income tax expense

16,458

8,195

13,611

16,761

16,749

38,264

47,680


    Net Income

63,206

94,975

61,941

64,263

72,097

220,122

220,017


Preferred stock dividends

(2,562)

(2,562)

(2,562)

(2,562)

(2,562)

(7,686)

(7,686)


     Net Income Available to Common  Shareholders

$   60,644

$   92,413

$   59,379

$   61,701

$   69,535

$ 212,436

$ 212,331






































Three months ended

Nine months ended







Sep 30

Jun 30

Mar 31

Dec  31

Sep 30

Sep 30






2024

2024

2024

2023

2023

2024

2023

PER SHARE:





























Net income available to common shareholders (basic)

$0.33

$0.53

$0.36

$0.38

$0.42

$1.23

$1.28


Net income available to common shareholders (diluted)

$0.33

$0.52

$0.36

$0.37

$0.42

$1.21

$1.27


Cash dividends

$0.17

$0.17

$0.17

$0.17

$0.16

$0.51

$0.47


































Weighted average shares (basic)

181,905

175,305

162,706

163,975

164,566

173,337

165,667


Weighted average shares (diluted)

183,609

176,934

164,520

165,650

166,023

175,033

167,181

 

FULTON FINANCIAL CORPORATION











CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)









(dollars in thousands)















Three months ended




September 30, 2024

June 30, 2024

September 30, 2023




Average





Yield/

Average





Yield/

Average





Yield/




Balance

Interest(1)

Rate

Balance

Interest(1)

Rate

Balance

Interest(1)

Rate

ASSETS







































































Interest-earning assets:

































Net loans(2)

$  24,147,801

$ 376,160

6.20 %

$  23,345,914

$ 355,533

6.12 %

$  21,121,277

$ 304,167

5.72 %


Investment securities(3)

4,526,885

37,853

3.34 %

4,396,050

33,799

3.07 %

4,197,550

27,274

2.59 %


Other interest-earning assets

1,338,592

18,068

5.37 %

1,125,886

15,730

5.61 %

263,244

3,372

5.11 %


Total Interest-Earning Assets

30,013,278

432,081

5.74 %

28,867,850

405,062

5.64 %

25,582,071

334,813

5.20 %






































Noninterest-earning assets:

































Cash and due from banks

306,427









302,381









306,496









Premises and equipment

181,285









203,166









217,447









Other assets

1,772,052









1,759,138









1,562,233









Less: ACL - loans(4)

(377,807)









(357,644)









(290,411)









Total Assets

$  31,895,235









$  30,774,891









$  27,377,836













































LIABILITIES AND SHAREHOLDERS' EQUITY





































































Interest-bearing liabilities:

































Demand deposits

$ 7,668,583

$   38,768

2.01 %

$ 7,080,302

$   31,748

1.80 %

$ 5,740,229

$   18,690

1.29 %


Savings deposits

7,663,599

49,477

2.57 %

7,309,141

44,901

2.47 %

6,676,792

34,277

2.04 %


Brokered deposits

842,661

11,344

5.36 %

1,123,328

15,074

5.40 %

937,657

12,250

5.18 %


Time deposits

4,107,466

45,735

4.43 %

3,670,158

39,364

4.31 %

2,330,206

18,939

3.22 %


Total Interest-Bearing Deposits

20,282,309

145,324

2.85 %

19,182,929

131,087

2.75 %

15,684,884

84,156

2.13 %








































Borrowings and other interest-bearing liabilities

2,229,348

24,324

4.34 %

2,441,691

27,699

4.53 %

2,691,087

32,373

4.74 %


Total Interest-Bearing Liabilities

22,511,657

169,648

3.00 %

21,624,620

158,786

2.95 %

18,375,971

116,529

2.51 %






































Noninterest-bearing liabilities:

































Demand deposits

5,495,950









5,460,025









5,672,411









Other liabilities

727,306









737,575









683,477









Total Liabilities

28,734,913









27,822,220









24,731,859









Shareholders' equity

3,160,322









2,952,671









2,645,977









Total Liabilities and Shareholders' Equity

$  31,895,235









$  30,774,891









$  27,377,836















































Net interest income/net interest margin (fully

taxable equivalent)



262,433

3.49 %





246,276

3.43 %





218,284

3.40 %


Tax equivalent adjustment



(4,424)









(4,556)









(4,442)





Net Interest Income



$ 258,009









$ 241,720









$ 213,842











































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

















(2) Average balances include non-performing loans.


(3) Average balances include amortized historical cost for available for sale ("AFS") securities; the related unrealized holding gains (losses) are included in other assets.


(4) ACL - loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities.

 

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED)

(dollars in thousands)




Three months ended





Sep 30

Jun 30

Mar 31

Dec  31

Sep 30





2024

2024

2024

2023

2023

Loans, by type:





















Real estate - commercial mortgage

$ 9,318,273

$ 8,958,139

$ 8,166,018

$ 8,090,627

$ 7,912,801



Commercial and industrial

4,998,051

4,853,583

4,517,179

4,579,441

4,611,376



Real estate - residential mortgage

6,268,922

5,977,132

5,353,905

5,303,632

5,209,105



Real estate - home equity

1,122,313

1,117,367

1,039,321

1,043,753

1,045,806



Real estate - construction

1,437,907

1,430,057

1,240,640

1,153,601

1,254,577



Consumer

682,602

685,183

721,523

746,011

761,273



Leases and other loans(1)

319,733

324,453

331,447

338,714

326,339



Total Net Loans

$  24,147,801

$  23,345,914

$  21,370,033

$  21,255,779

$  21,121,277

























Deposits, by type:





















Noninterest-bearing demand

$ 5,495,950

$ 5,460,025

$ 5,061,075

$ 5,440,098

$ 5,672,411



Interest-bearing demand

7,668,583

7,080,302

5,596,725

5,723,169

5,740,229



Savings

7,663,599

7,309,141

6,669,228

6,682,512

6,676,792



     Total demand and savings

20,828,132

19,849,468

17,327,028

17,845,779

18,089,432



Brokered

842,661

1,123,328

1,083,382

1,051,369

937,657



Time

4,107,466

3,670,158

2,968,344

2,579,400

2,330,206



Total Deposits

$  25,778,259

$  24,642,954

$  21,378,754

$  21,476,548

$  21,357,295

























Borrowings, by type:





















Federal funds purchased

$            —

$      32,637

$    173,659

$    446,707

$    634,163



Federal Home Loan Bank advances

754,130

833,726

902,890

760,087

793,098



Senior debt and subordinated debt

535,831

535,656

535,479

539,186

540,086



Other borrowings and other interest-bearing liabilities

939,387

1,039,672

996,348

795,747

723,740



Total Borrowings

$ 2,229,348

$ 2,441,691

$ 2,608,376

$ 2,541,727

$ 2,691,087























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

 

FULTON FINANCIAL CORPORATION



















CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)











(dollars in thousands)

















Nine months ended September 30






2024

2023






Average





Yield/

Average





Yield/






Balance

Interest(1)

Rate

Balance

Interest(1)

Rate

ASSETS







































Interest-earning assets:













Net loans(2)

$      22,918,845

$   1,045,573

6.09 %

$      20,819,280

$      854,384

5.49 %


Investment securities(3)

4,303,048

98,701

3.05 %

4,240,093

82,098

2.58 %


Other interest-earning assets

921,483

37,126

5.38 %

427,810

11,882

3.71 %


Total Interest-Earning Assets

28,143,376

1,181,400

5.60 %

25,487,183

948,364

4.97 %




























Noninterest-Earning assets:













Cash and due from banks

297,268









193,083









Premises and equipment

202,531









219,087









Other assets

1,828,085









1,555,891









Less: ACL - loans(4)

(353,567)









(282,144)









Total Assets

$      30,117,693









$      27,173,100



































LIABILITIES AND SHAREHOLDERS' EQUITY







































Interest-Bearing liabilities:













Demand deposits

$        6,785,106

$        91,016

1.79 %

$        5,535,671

$        41,756

1.01 %


Savings deposits

7,215,631

133,175

2.47 %

6,593,703

84,102

1.71 %


Brokered deposits

1,015,823

41,073

5.40 %

779,191

29,557

5.07 %


Time deposits

3,583,905

114,721

4.28 %

2,032,360

40,160

2.64 %


Total Interest-Bearing Deposits

18,600,465

379,985

2.73 %

14,940,925

195,575

1.75 %






























Borrowings and other interest-bearing liabilities

2,425,753

81,177

4.47 %

2,848,704

97,247

4.53 %


Total Interest-Bearing Liabilities

21,026,218

461,162

2.93 %

17,789,629

292,822

2.20 %




























Noninterest-Bearing liabilities:













Demand deposits

5,339,590









6,108,197









Other liabilities

791,175









639,569









Total Liabilities

27,156,983









24,537,395









Shareholders' equity

2,960,710









2,635,705









Total Liabilities and Shareholders' Equity

$      30,117,693









$      27,173,100





































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





720,238

3.42 %





655,542

3.44 %


Tax equivalent adjustment





(13,572)









(13,261)





Net Interest Income





$      706,666









$      642,281

































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







(2) Average balances include non-performing loans.

























(3) Average balances include amortized historical cost for AFS; the related unrealized holding gains (losses) are included in other assets.


(4) ACL - loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities.

 

FULTON FINANCIAL CORPORATION





AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED)

(dollars in thousands)




















Nine months ended September 30







2024

2023

Loans, by type:











Real estate - commercial mortgage

$              8,803,503

$              7,803,775



Commercial and industrial

4,786,976

4,602,573



Real estate - residential mortgage

5,844,317

5,004,289



Real estate - home equity

1,091,526

1,066,003



Real estate - construction

1,370,134

1,278,923



Consumer

697,204

748,788



Leases and other loans(1)

325,185

314,929



Total Net Loans

$            22,918,845

$            20,819,280















Deposits, by type:











Noninterest-bearing demand

$              5,339,590

$              6,108,197



Interest-bearing demand

6,785,106

5,535,671



Savings

7,215,631

6,593,703



   Total demand and savings

19,340,327

18,237,571



Brokered

1,015,823

779,191



Time

3,583,905

2,032,360



Total Deposits

$            23,940,055

$            21,049,122















Borrowings, by type:











Federal funds purchased



$                    68,515

$                  606,708



Federal Home Loan Bank advances

829,971

976,783



Senior debt and subordinated debt

535,656

539,907



Other borrowings

991,611

725,306



Total Borrowings

$              2,425,753

$              2,848,704















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

 

FULTON FINANCIAL CORPORATION















ASSET QUALITY INFORMATION (UNAUDITED)















(dollars in thousands)



















Three months ended

Nine months ended September 30




Sep 30

Jun 30

Mar 31

Dec  31

Sep 30

Sep 30

Sep 30




2024

2024

2024

2023

2023

2024

2023

Allowance for credit losses related to net loans:























Balance at beginning of period

$  375,941

$  297,888

$  293,404

$  292,739

$  287,442

$  293,404

$  269,366
































CECL day 1 provision expense(1)

—

23,444

—

—

—

23,444

—


Initial purchased credit deteriorated allowance for credit losses

(1,139)

55,906

—

—

—

54,767

—


Loans charged off:



























    Real estate - commercial mortgage

(2,723)

(7,853)

(26)

(3,547)

(860)

(10,602)

(14,452)


    Commercial and industrial

(6,256)

(2,955)

(7,632)

(3,397)

(3,220)

(16,843)

(5,849)


    Real estate - residential mortgage

(1,131)

(35)

(251)

—

—

(1,417)

(62)


    Consumer and home equity

(2,308)

(1,766)

(2,238)

(2,192)

(1,803)

(6,312)

(5,322)


    Real estate - construction

—

—

—

—

—

—

—


    Leases and other loans(2)

(726)

(1,398)

(805)

(1,096)

(1,396)

(2,929)

(3,284)


    Total loans charged off

(13,144)

(14,007)

(10,952)

(10,232)

(7,279)

(38,103)

(28,969)

Recoveries of loans previously charged off:



























    Real estate - commercial mortgage

107

146

152

160

101

405

916


    Commercial and industrial

1,008

796

1,248

779

620

3,052

2,694


    Real estate - residential mortgage

130

122

116

278

37

368

143


    Consumer and home equity

545

1,161

676

555

1,023

2,382

2,643


    Real estate - construction

103

233

—

87

—

336

771


    Leases and other loans(2)

129

247

162

374

400

538

729


    Recoveries of loans previously charged off

2,022

2,705

2,354

2,233

2,181

7,081

7,896

Net loans charged off

(11,122)

(11,302)

(8,598)

(7,999)

(5,098)

(31,022)

(21,073)

Provision for credit losses(1)

12,281

10,005

13,082

8,664

10,395

35,368

44,446

Balance at end of period

$  375,961

$  375,941

$  297,888

$  293,404

$  292,739

$  375,961

$  292,739

Net charge-offs to average loans

0.18 %

0.19 %

0.16 %

0.15 %

0.10 %

0.18 %

0.13 %






























Provision for credit losses related to OBS Credit Exposures



















Provision for credit losses(1)

$   (352)

$ (1,393)

$ (2,157)

$    1,144

$   (458)

$ (3,902)

$   (218)






























NON-PERFORMING ASSETS:

























Non-accrual loans

$  175,861

$  145,630

$  129,628

$  121,620

$  113,022









Loans 90 days past due and accruing

26,286

26,962

26,521

31,721

27,962









    Total non-performing loans

202,147

172,592

156,149

153,341

140,984









Other real estate owned

2,844

1,444

277

896

2,549









Total non-performing assets

$  204,991

$  174,036

$  156,426

$  154,237

$  143,533





































NON-PERFORMING LOANS, BY TYPE:

























Commercial and industrial

$  64,450

$  58,433

$  44,118

$  41,020

$  33,365









Real estate - commercial mortgage

71,505

48,615

47,891

46,527

44,058









Real estate - residential mortgage

41,727

41,033

40,685

42,029

40,560









Consumer and home equity

12,792

11,886

10,172

10,878

11,580









Leases and other loans(2)

9,927

9,993

10,135

10,011

10,744









Real estate - construction

1,746

2,632

3,148

2,876

677









Total non-performing loans

$  202,147

$  172,592

$  156,149

$  153,341

$  140,984











(1) The sum of these amounts are reflected in the provision for credit losses in the Condensed Consolidated Statements of Income.

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

 

FULTON FINANCIAL CORPORATION

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

 

(dollars in thousands, except per share and share data)




























Explanatory note:

This press release contains supplemental financial information, as detailed below, that has been derived by methods other than 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 and financial condition. 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












2024

2024

2024

2023

2023

Operating net income available to common shareholders



















Net income available to common shareholders

$        60,644

$       92,413

$       59,379

$       61,701

$       69,535

Less: Non-PCD credit-related interest income from acquisition

(815)

(571)

—

—

—

Less: Interest rate derivative transition valuation(1)

138

(137)

(151)

(1,102)

2,958

Less: Loss (gain) on acquisition, net of tax

7,706

(47,392)

—

—

—

Plus: Loss on securities restructuring

—

20,282

—

—

—

Plus: Core deposit intangible amortization

6,155

4,556

441

441

441

Plus: Acquisition-related expense

14,195

13,803

—

—

—

Plus: CECL day 1 provision expense

—

23,444

—

—

—

Less: Gain on sale-leaseback

—

(20,266)

—

—

—

Plus: FDIC special assessment

(16)

—

956

6,494

—

Plus: FultonFirst implementation and asset disposals

9,385

6,323

6,329

3,197

—

Less: Tax impact of adjustments

(6,099)

(9,961)

(1,591)

(1,896)

(714)

Operating net income available to common shareholders (numerator)

$        91,293

$       82,494

$       65,363

$       68,835

$       72,220






























Weighted average shares (diluted) (denominator)

183,609

176,934

164,520

165,650

166,023






























Operating net income available to common shareholders, per share (diluted)

$           0.50

$          0.47

$          0.40

$          0.42

$          0.43






























Common shareholders' equity (tangible), per share



















Shareholders' equity

$     3,203,943

$    3,101,609

$    2,757,679

$    2,760,139

$    2,566,693

Less: Preferred stock

(192,878)

(192,878)

(192,878)

(192,878)

(192,878)

Less: Goodwill and intangible assets

(641,739)

(648,026)

(560,114)

(560,687)

(561,284)

Tangible common shareholders' equity (numerator)

$     2,369,326

$    2,260,705

$    2,004,687

$    2,006,574

$    1,812,531






















Shares outstanding, end of period (denominator)

181,957

181,831

162,087

163,801

164,084






















Common shareholders' equity (tangible), per share

$          13.02

$         12.43

$         12.37

$         12.25

$         11.05

(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.

(2) Results are annualized.























































































































































































Three months ended












Sep 30

Jun 30

Mar 31

Dec  31

Sep 30












2024

2024

2024

2023

2023

Operating return on average assets(2)



















Net income

$        63,206

$       94,975

$       61,941

$       64,263

$       72,097

Less: Non-PCD credit-related interest income from acquisition

(815)

(571)

—

—

—

Less: Interest rate derivative transition valuation(1)

138

(137)

(151)

(1,102)

2,958

Less: Loss (gain) on acquisition, net of tax

7,706

(47,392)

—

—

—

Plus: Loss on securities restructuring

—

20,282

—

—

—

Plus: Core deposit intangible amortization

6,155

4,556

441

441

441

Plus: Acquisition-related expense

14,195

13,803

—

—

—

Plus: CECL day 1 provision expense

—

23,444

—

—

—

Less: Gain on sale-leaseback

—

(20,266)

—

—

—

Plus: FDIC special assessment

(16)

—

956

6,494

—

Plus: FultonFirst implementation and asset disposals

9,385

6,323

6,329

3,197

—

Less: Tax impact of adjustments

(6,099)

(9,961)

(1,591)

(1,896)

(714)

Operating net income (numerator)

$        93,855

$       85,056

$       67,925

$       71,397

$       74,782






























Total average assets



$   31,895,235

$  30,774,891

$  27,427,626

$  27,397,671

$  27,377,836

Less: Average net core deposit intangible

(89,350)

(68,234)

(4,666)

(5,106)

(5,548)

Total operating average assets  (denominator)

$   31,805,885

$  30,706,657

$  27,422,960

$  27,392,565

$  27,372,288






























Operating return on average assets

1.17 %

1.11 %

1.00 %

1.03 %

1.08 %






























Operating return on average common shareholders' equity (tangible)(2)











Net income available to common shareholders

$        60,644

$       92,413

$       59,379

$       61,701

$       69,535

Less: Non-PCD credit-related interest income from acquisition

(815)

(571)

—

—

—

Less: Interest rate derivative transition valuation(1)

138

(137)

(151)

(1,102)

2,958

Less: Loss (gain) on acquisition, net of tax

7,706

(47,392)

—

—

—

Plus: Loss on securities restructuring

—

20,282

—

—

—

Plus: Intangible amortization



6,287

4,688

573

597

601

Plus: Acquisition-related expense



14,195

13,803

—

—

—

Plus: CECL day 1 provision expense

—

23,444

—

—

—

Less: Gain on sale-leaseback

—

(20,266)

—

—

—

Plus: FDIC special assessment

(16)

—

956

6,494

—

Plus: FultonFirst implementation and asset disposals

9,385

6,323

6,329

3,197

—

Less: Tax impact of adjustments



(6,127)

(9,989)

(1,618)

(1,929)

(747)

Adjusted net income available to common shareholders (numerator)

$        91,397

$       82,598

$       65,468

$       68,958

$       72,347






















Average shareholders' equity

$     3,160,322

$    2,952,671

$    2,766,945

$    2,618,024

$    2,645,977

Less: Average preferred stock

(192,878)

(192,878)

(192,878)

(192,878)

(192,878)

Less: Average goodwill and intangible assets

(644,814)

(624,471)

(560,393)

(560,977)

(561,578)

Average tangible common shareholders' equity (denominator)

$     2,322,630

$    2,135,322

$    2,013,674

$    1,864,169

$    1,891,521






















Operating return on average common shareholders' equity (tangible)

15.65 %

15.56 %

13.08 %

14.68 %

15.17 %

(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.

(2) Results are annualized.



























































































































Three months ended












Sep 30

Jun 30

Mar 31

Dec  31

Sep 30












2024

2024

2024

2023

2023

Tangible common equity to tangible assets (TCE Ratio)



















Shareholders' equity

$     3,203,943

$    3,101,609

$    2,757,679

$    2,760,139

$    2,566,693

Less: Preferred stock

(192,878)

(192,878)

(192,878)

(192,878)

(192,878)

Less: Goodwill and intangible assets

(641,739)

(648,026)

(560,114)

(560,687)

(561,284)

Tangible common shareholders' equity (numerator)

$     2,369,326

$    2,260,705

$    2,004,687

$    2,006,574

$    1,812,531






























Total assets

$   32,185,726

$  31,769,813

$  27,642,957

$  27,571,915

$  27,375,177

Less: Goodwill and intangible assets

(641,739)

(648,026)

(560,114)

(560,687)

(561,284)

Total tangible assets (denominator)

$   31,543,987

$  31,121,787

$  27,082,843

$  27,011,228

$  26,813,893






























Tangible common equity to tangible assets

7.51 %

7.26 %

7.40 %

7.43 %

6.76 %






























Efficiency ratio























Non-interest expense

$      226,089

$     199,488

$     177,600

$     180,552

$     171,020

Less: Acquisition-related expense

(14,195)

(13,803)

—

—

—

Plus: Gain on sale-leaseback

—

20,266

—

—

—

Less: FDIC special assessment

16

—

(956)

(6,494)

—

Less: FultonFirst implementation and asset disposals

(9,385)

(6,323)

(6,329)

(3,197)

—

Less: Intangible amortization

(6,287)

(4,688)

(573)

(597)

(601)

Less: Debt extinguishment

—

—

—

720

—

Operating non-interest expense (numerator)

$      196,238

$     194,940

$     169,742

$     170,984

$     170,419






















Net interest income

$      258,009

$     241,720

$     206,937

$     212,006

$     213,842

Tax equivalent adjustment

4,424

4,556

4,592

4,549

4,442

Plus: Total non-interest income

59,673

92,994

57,140

59,378

55,961

Less: Interest rate derivative transition valuation(1)

138

(137)

(151)

(1,102)

2,958

Less: Non-PCD credit-related interest income from acquisition

(815)

(571)

—

—

—

Less: Loss (gain) on acquisition, net of tax

7,706

(47,392)

—

—

—

Plus: Investment securities (gains) losses, net

1

20,282

—

752

—

Total revenue (denominator)

$      329,136

$     311,452

$     268,518

$     275,583

$     277,203






















Efficiency ratio

59.62 %

62.59 %

63.21 %

62.04 %

61.48 %






























Operating non-interest expense to total average assets



















Non-interest expense

$      226,089

$     199,488

$     177,600

$     180,552

$     171,020

Less: Intangible amortization

(6,287)

(4,688)

(573)

(597)

(601)

Less: Acquisition-related expense

(14,195)

(13,803)

—

—

—

Plus: Gain on sale-leaseback

—

20,266

—

—

—

Less: FDIC special assessment

16

—

(956)

(6,494)

—

Less: FultonFirst implementation and asset disposals

(9,385)

(6,323)

(6,329)

(3,197)

—

Operating non-interest expense (numerator)

$      196,238

$     194,940

$     169,742

$     170,264

$     170,419






























Total average assets (denominator)

$   31,895,235

$  30,774,891

$  27,427,626

$  27,397,671

$  27,377,836






























Operating non-interest expenses to total average assets

2.45 %

2.55 %

2.49 %

2.47 %

2.47 %

(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.

(2) Results are annualized.





















Note: numbers in this report may not sum due to rounding.





















 

Media Contact: Lacey Dean (717) 735-8688

Investor Contact: Matt Jozwiak (717) 327-2657

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/fulton-financial-corporation-announces-third-quarter-2024-results-302276932.html

SOURCE Fulton Financial Corporation