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