Company Announcements

Fulton Financial Announces Second Quarter 2021 Results

LANCASTER, Pa.--(BUSINESS WIRE)--Jul. 20, 2021-- Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $62 million, or $0.38 per diluted share, for the second quarter of 2021.

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"In the second quarter, Fulton Financial again achieved solid performance,” said E. Philip Wenger, Chairman and CEO of Fulton Financial Corporation. "Our results reflect stable to improving core business trends, a disciplined operating environment, growth in wealth management revenues and stable asset quality.”

Net Interest Income and Balance Sheet

Net interest income for the second quarter of 2021 was $162 million, $2 million lower than the first quarter of 2021. Net interest margin for the second quarter of 2021 decreased 6 basis points, to 2.73%, from 2.79% in the first quarter of 2021. The decreases in net interest income and net interest margin in comparison to the first quarter of 2021 were primarily due to lower fee income recognized related to the Paycheck Protection Program ("PPP") loans, which were $12 million in the second quarter of 2021 compared to $19 million for the first quarter of 2021, as well as lower yields on loans.

Total average interest-earning assets for the second quarter of 2021 were $24 billion, a decrease of $2 million from the first quarter of 2021, driven by a decline in PPP loans and other interest-earning assets, partially offset by growth in the commercial and residential real estate loan portfolios as well as investment securities. Average Net Loans1, which include loans originated under the PPP, were $18.9 billion, a decrease of $74 million compared to the first quarter of 2021. Average PPP loans were $1.5 billion for the second quarter of 2021 compared to $1.7 billion for the first quarter of 2021. Second quarter loan balances were impacted by the net effect of $639 million of PPP loans forgiven and $60 million of new loans originated under the third phase of the PPP in the second quarter of 2021.

___________________________________
1
Loans and lease receivables, (net of unearned income)

Average loans and yields, by type, for the second quarter of 2021 in comparison to the first quarter of 2021 are summarized in the following table:

 

Three months ended

 

 

 

June 30, 2021

 

March 31, 2021

 

Growth

 

Balance

 

Yield (1)

 

Balance

 

Yield (1)

 

$

 

%

 

(dollars in thousands)

Average Net Loans by type:

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,177,622

 

 

3.16

%

 

$

7,128,997

 

 

3.15

%

 

$

48,625

 

 

0.7

%

Commercial and industrial(2)

5,445,160

 

 

2.58

%

 

5,722,080

 

 

2.57

%

 

(276,920)

 

 

(4.8)

%

Real estate - residential mortgage

3,396,690

 

 

3.39

%

 

3,183,585

 

 

3.52

%

 

213,105

 

 

6.7

%

Real estate - home equity

1,139,558

 

 

3.71

%

 

1,175,218

 

 

3.75

%

 

(35,660)

 

 

(3.0)

%

Real estate - construction

1,054,469

 

 

3.05

%

 

1,054,718

 

 

3.09

%

 

(249)

 

 

(0.0)

%

Consumer

451,486

 

 

3.89

%

 

459,038

 

 

4.13

%

 

(7,552)

 

 

(1.6)

%

Equipment lease financing

256,248

 

 

3.74

%

 

266,405

 

 

4.11

%

 

(10,157)

 

 

(3.8)

%

Other(3)

(14,677)

 

 

N/A

 

(9,455)

 

 

N/A

 

(5,222)

 

 

55.2

%

Total Average Net Loans

$

18,906,556

 

 

3.32

%

 

$

18,980,586

 

 

3.53

%

 

$

(74,030)

 

 

(0.4)

%

 

 

 

 

 

 

 

 

 

 

 

 

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

(2) Includes average PPP loans of $1.5 billion and $1.7 billion for the three months ended June 30, 2021 and March 31, 2021, respectively.

(3) Consists of overdrafts and net origination fees and costs.

Total average liabilities decreased $98 million, to $23.3 billion, in the second quarter of 2021 compared to the first quarter of 2021 driven by decreases in short-term and long-term borrowings, partially offset by increases in average deposits. Average deposits and interest rates, by type, for the second quarter of 2021 in comparison to the first quarter of 2021 are summarized in the following table:

 

Three months ended

 

 

 

June 30, 2021

 

March 31, 2021

 

Growth

 

Balance

 

Rate

 

Balance

 

Rate

 

$

 

%

 

(dollars in thousands)

Average Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

7,203,696

 

 

 

 

$

6,672,832

 

 

 

 

$

530,864

 

 

8.0

%

Interest-bearing demand

5,979,855

 

 

0.06

%

 

5,832,174

 

 

0.08

%

 

147,681

 

 

2.5

%

Savings

6,280,629

 

 

0.09

%

 

6,137,084

 

 

0.10

%

 

143,545

 

 

2.3

%

Total average demand and savings

19,464,180

 

 

0.05

%

 

18,642,090

 

 

0.06

%

 

822,090

 

 

4.4

%

Brokered

297,815

 

 

0.34

%

 

324,364

 

 

0.49

%

 

(26,549)

 

 

(8.2)

%

Time

2,003,606

 

 

1.09

%

 

2,150,570

 

 

1.23

%

 

(146,964)

 

 

(6.8)

%

Total Average Deposits

$

21,765,601

 

 

0.15

%

 

$

21,117,024

 

 

0.18

%

 

$

648,577

 

 

3.1

%

Asset Quality

In the second quarter of 2021, a negative provision for credit losses of $4 million was recognized, as compared to a negative provision for credit losses of $6 million recognized in the first quarter of 2021. A $20 million provision for credit losses was recognized in the second quarter of 2020. Consistent with the first quarter of 2021, improved economic forecasts and a decrease in specific allocations within the allowance for credit losses for loans evaluated individually reduced the level of the allowance for credit losses determined to be necessary at the end of the second quarter of 2021.

The $20 million provision for credit losses in the second quarter of 2020 reflected expected credit losses based on economic forecasts as of the end of the second quarter of 2020 and the assessment of the estimated impacts of the COVID-19 pandemic at that time.

Non-performing assets were $157 million, or 0.60% of total assets, at June 30, 2021, compared to $156 million, or 0.60% of total assets, and $145 million, or 0.59% of total assets at March 31, 2021 and June 30, 2020, respectively.

Annualized net charge-offs for the quarter ended June 30, 2021 were 0.15% of total average loans, compared to 0.13% and 0.09% for the quarters ended March 31, 2021 and June 30, 2020, respectively.

Non-interest Income

Non-interest income in the second quarter of 2021, excluding investment securities gains, was $52 million, a decrease of $10 million, or 16%, from the first quarter of 2021, primarily driven by decreases of $11 million in mortgage banking income and a $1 million decrease in capital markets income. The decrease in mortgage banking income was due to lower mortgage sales and gain-on-sale spreads on loans sold, as well as a $2 million addition to the valuation allowance for mortgage servicing assets. The $1 million decrease in capital markets income was the result of lower commercial loan interest rate swap revenues.

Compared to the second quarter of 2020, non-interest income, excluding investment securities gains, in the second quarter of 2021 decreased $1 million, or 2%, from $53 million, primarily driven by a $7 million decrease in mortgage banking income, resulting from a combination of lower mortgage sales gains and higher rates. During the second quarter of 2020, mortgage banking income was higher as a result of lower mortgage interest rates which drove an increase in activity. The decrease in mortgage banking income was partially offset by a $4 million increase in wealth management income and a $2 million increase in consumer banking income.

Net investment securities gains were $33 million lower compared to the first quarter of 2021. In the first quarter of 2021, Fulton completed a balance sheet restructuring involving gains on sales of Visa, Inc. Class B restricted shares of $34 million, which were offset in non-interest expense by corresponding debt extinguishment costs of $32 million, other securities losses of $0.4 million and a write-off of $1 million recognized in net interest income in connection with the purchase of certain of the Corporation's outstanding senior and subordinated notes and the prepayment of term Federal Home Loan Bank advances.

Non-interest Expense

Non-interest expense was $141 million in the second quarter of 2021, a decrease of $38 million compared to the first quarter of 2021, with the decrease driven by costs recognized during the first quarter of 2021 associated with the aforementioned balance sheet restructuring.

Compared to the second quarter of 2020, non-interest expense decreased $2 million, or 2%, in the second quarter of 2021, due primarily to a decrease in salaries and employee benefits and debt extinguishment costs. In the second quarter of 2020 a $3 million prepayment penalty on redemption of FHLB advances was incurred. These decreases were partially offset by increases in multiple other non-interest expense categories.

Income Tax Expense

The effective income tax rate (ETR) was 16% for both the second and first quarters of 2021 as compared to 14% for second quarter of 2020. The increase was a result of higher income before income taxes, while net favorable permanent differences were relatively the same compared to the second quarter of 2020.

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

Safe Harbor Statement

This news 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, they 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, 2020, Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 and other current and periodic reports, which have been or will be filed with the Securities and Exchange Commission and are or will be available in the Investor Relations section of the Corporation's website (www.fult.com) and on the Securities and Exchange Commission's website (www.sec.gov).

Non-GAAP Financial Measures

The Corporation uses certain non-GAAP financial measures in this earnings release. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this release.

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

 

SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)

 

 

 

 

 

 

 

in thousands, except per-share data and percentages

 

 

 

 

 

 

 

 

Three months ended

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

 

2021

 

2021

 

2020

 

2020

 

2020

 

Ending Balances

 

 

 

 

 

 

 

 

 

 

Investments

$

3,921,658

 

$

3,612,010

 

$

3,340,424

 

$

3,097,721

 

$

2,974,813

 

Net Loans

18,586,756

 

18,990,986

 

18,900,820

 

19,028,621

 

18,704,722

 

Total assets

26,079,774

 

25,892,990

 

25,906,733

 

25,543,281

 

24,617,863

 

Deposits

21,724,312

 

21,633,838

 

20,839,207

 

20,730,051

 

19,884,208

 

Shareholders' equity

2,692,958

 

2,629,655

 

2,616,828

 

2,390,261

 

2,340,501

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances

 

 

 

 

 

 

 

 

 

 

Investments

$

3,670,333

 

$

3,448,166

 

$

3,221,289

 

$

2,977,672

 

$

3,096,632

 

Net Loans

18,906,556

 

18,980,586

 

18,994,514

 

18,880,519

 

18,331,797

 

Total assets

26,017,542

 

26,082,816

 

25,749,405

 

25,169,508

 

24,139,116

 

Deposits

21,765,601

 

21,117,024

 

20,791,522

 

20,388,447

 

19,276,658

 

Shareholders' equity

2,669,413

 

2,637,098

 

2,544,866

 

2,374,091

 

2,309,133

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement

 

 

 

 

 

 

 

 

 

 

Net interest income

$

162,399

 

 

$

164,448

 

 

$

161,591

 

 

$

154,116

 

 

$

152,754

 

 

Provision for credit losses

(3,500)

 

 

(5,500)

 

 

6,240

 

 

7,080

 

 

19,570

 

 

Non-interest income

51,890

 

 

95,397

 

 

55,574

 

 

63,248

 

 

55,922

 

 

Non-interest expense

140,831

 

 

178,384

 

 

154,737

 

 

139,147

 

 

143,006

 

 

Income before taxes

76,958

 

 

86,961

 

 

56,187

 

 

71,137

 

 

46,101

 

 

Net income available to common shareholders

62,402

 

 

70,472

 

 

48,690

 

 

61,607

 

 

39,559

 

 

Pre-provision net revenue(1)

75,575

 

 

81,795

 

 

64,092

 

 

80,043

 

 

67,125

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (basic)

$

0.38

 

 

$

0.43

 

 

$

0.30

 

 

$

0.38

 

 

$

0.24

 

 

Net income available to common shareholders (diluted)

$

0.38

 

 

$

0.43

 

 

$

0.30

 

 

$

0.38

 

 

$

0.24

 

 

Cash dividends

$

0.14

 

 

$

0.14

 

 

$

0.17

 

 

$

0.13

 

 

$

0.13

 

 

Common shareholders' equity

$

15.34

 

 

$

14.99

 

 

$

14.93

 

 

$

14.74

 

 

$

14.45

 

 

Common shareholders' equity (tangible)(1)

$

12.05

 

 

$

11.69

 

 

$

11.62

 

 

$

11.44

 

 

$

11.15

 

 

Weighted average shares (basic)

162,785

 

 

162,441

 

 

162,242

 

 

162,061

 

 

161,715

 

 

Weighted average shares (diluted)

163,858

 

 

163,737

 

 

163,071

 

 

162,579

 

 

162,267

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Non-GAAP financial measure. Refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this document.

 

Three months ended

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

 

2021

 

2021

 

2020

 

2020

 

2020

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to average loans (annualized)

0.15

%

 

0.13

%

 

(0.07)

%

 

(0.05)

%

 

0.09

%

 

Non-performing loans to total loans

0.83

%

 

0.80

%

 

0.78

%

 

0.75

%

 

0.75

%

 

Non-performing assets to total assets

0.60

%

 

0.60

%

 

0.58

%

 

0.57

%

 

0.59

%

 

ACL - loans(2) to total loans

1.37

%

 

1.40

%

 

1.47

%

 

1.40

%

 

1.37

%

 

ACL - loans(2) to non-performing loans

166

%

 

174

%

 

189

%

 

188

%

 

183

%

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality, excluding PPP (1)(3)

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to adjusted average loans (annualized)

0.16

%

 

0.14

%

 

(0.08)

%

 

(0.06)

%

 

0.10

%

 

Non-performing loans to total adjusted loans

0.88

%

 

0.88

%

 

0.85

%

 

0.83

%

 

0.83

%

 

ACL - loans(2) to total adjusted loans

1.46

%

 

1.54

%

 

1.60

%

 

1.56

%

 

1.53

%

 

 

 

 

 

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

 

 

 

 

Return on average assets

1.00

%

 

1.14

%

 

0.79

%

 

0.97

%

 

0.66

%

 

Return on average common shareholders' equity

9.38

%

 

10.84

%

 

7.61

%

 

10.32

%

 

6.89

%

 

Return on average common shareholders' equity (tangible)(1)

12.93

%

 

15.00

%

 

10.32

%

 

13.50

%

 

8.99

%

 

Net interest margin

2.73

%

 

2.79

%

 

2.75

%

 

2.70

%

 

2.81

%

 

Efficiency ratio(1)

63.8

%

 

63.0

%

 

62.5

%

 

62.3

%

 

66.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

Tangible common equity ratio(1)

7.7

%

 

7.5

%

 

7.4

%

 

7.4

%

 

7.5

%

 

Tier 1 leverage ratio(4)

8.4

%

 

8.3

%

 

8.2

%

 

7.4

%

 

7.6

%

 

Common equity Tier 1 capital ratio(4)

9.9

%

 

9.8

%

 

9.5

%

 

9.5

%

 

9.5

%

 

Tier 1 capital ratio(4)

10.9

%

 

10.8

%

 

10.5

%

 

9.5

%

 

9.5

%

 

Total risk-based capital ratio(4)

14.3

%

 

14.2

%

 

14.4

%

 

13.9

%

 

13.8

%

 

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

(2) "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.

(3) Asset quality information excluding Paycheck Protection Program ("PPP") loans. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this document.

(4) Regulatory capital ratios as of June 30, 2021 are preliminary and prior periods are actual.

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

 

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change from

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Jun 30

 

 

2021

 

2021

 

2020

 

2020

 

2020

 

2021

 

2020

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

143,002

 

 

$

102,570

 

 

$

120,462

 

 

$

139,304

 

 

$

141,702

 

 

39.4

%

 

0.9

%

 

Other interest-earning assets

1,823,688

 

 

1,625,515

 

 

1,819,499

 

 

1,489,550

 

 

1,007,939

 

 

12.2

%

 

80.9

%

 

Loans held for sale

41,924

 

 

34,092

 

 

83,886

 

 

93,621

 

 

77,415

 

 

23.0

%

 

(45.8)

%

 

Investment securities

3,921,658

 

 

3,612,010

 

 

3,340,424

 

 

3,097,721

 

 

2,974,813

 

 

8.6

%

 

31.8

%

 

Net Loans

18,586,756

 

 

18,990,986

 

 

18,900,820

 

 

19,028,621

 

 

18,704,722

 

 

(2.1)

%

 

(0.6)

%

 

Less: ACL - loans(1)

(255,032)

 

 

(265,986)

 

 

(277,567)

 

 

(266,825)

 

 

(256,537)

 

 

(4.1)

%

 

(0.6)

%

 

Loans, net

18,331,724

 

 

18,725,000

 

 

18,623,253

 

 

18,761,796

 

 

18,448,185

 

 

(2.1)

%

 

(0.6)

%

 

Net, premises and equipment

228,353

 

 

229,035

 

 

231,480

 

 

236,943

 

 

239,596

 

 

(0.3)

%

 

(4.7)

%

 

Accrued interest receivable

63,232

 

 

65,649

 

 

72,942

 

 

70,766

 

 

73,720

 

 

(3.7)

%

 

(14.2)

%

 

Goodwill and intangible assets

536,847

 

 

536,544

 

 

536,659

 

 

534,907

 

 

535,039

 

 

0.1

%

 

0.3

%

 

Other assets

989,346

 

 

962,575

 

 

1,078,128

 

 

1,118,673

 

 

1,119,454

 

 

2.8

%

 

(11.6)

%

 

Total Assets

$

26,079,774

 

 

$

25,892,990

 

 

$

25,906,733

 

 

$

25,543,281

 

 

$

24,617,863

 

 

0.7

%

 

5.9

%

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

21,724,312

 

 

$

21,633,838

 

 

$

20,839,207

 

 

$

20,730,051

 

 

$

19,884,208

 

 

0.4

%

 

9.3

%

 

Short-term borrowings

533,749

 

 

520,989

 

 

630,066

 

 

611,727

 

 

572,551

 

 

2.4

%

 

(6.8)

%

 

Other liabilities

501,542

 

 

482,101

 

 

524,369

 

 

515,230

 

 

525,407

 

 

4.0

%

 

(4.5)

%

 

Long-term borrowings

627,213

 

 

626,407

 

 

1,296,263

 

 

1,296,012

 

 

1,295,196

 

 

0.1

%

 

(51.6)

%

 

Total Liabilities

23,386,816

 

 

23,263,335

 

 

23,289,905

 

 

23,153,020

 

 

22,277,362

 

 

0.5

%

 

5.0

%

 

Shareholders' equity

2,692,958

 

 

2,629,655

 

 

2,616,828

 

 

2,390,261

 

 

2,340,501

 

 

2.4

%

 

15.1

%

 

Total Liabilities and Shareholders' Equity

$

26,079,774

 

 

$

25,892,990

 

 

$

25,906,733

 

 

$

25,543,281

 

 

$

24,617,863

 

 

0.7

%

 

5.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

 

 

 

 

 

 

 

 

 

 

Loans, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,152,932

 

 

$

7,142,137

 

 

$

7,105,092

 

 

$

7,046,330

 

 

$

6,934,936

 

 

0.2

%

 

3.1

%

 

Commercial and industrial

3,870,462

 

 

3,986,858

 

 

4,088,561

 

 

4,007,278

 

 

4,033,439

 

 

(2.9)

%

 

(4.0)

%

 

Real estate - residential mortgage

3,555,897

 

 

3,254,058

 

 

3,141,915

 

 

3,061,835

 

 

2,862,226

 

 

9.3

%

 

24.2

%

 

Real estate - home equity

1,136,128

 

 

1,149,958

 

 

1,202,913

 

 

1,222,709

 

 

1,251,455

 

 

(1.2)

%

 

(9.2)

%

 

Real estate - construction

1,070,755

 

 

1,083,494

 

 

1,047,218

 

 

1,007,534

 

 

972,909

 

 

(1.2)

%

 

10.1

%

 

Consumer

448,433

 

 

451,857

 

 

466,772

 

 

469,551

 

 

465,610

 

 

(0.8)

%

 

(3.7)

%

 

Equipment lease financing

252,158

 

 

260,907

 

 

279,118

 

 

280,286

 

 

281,897

 

 

(3.4)

%

 

(10.5)

%

 

Other(2)

(14,410)

 

 

(26,677)

 

 

(12,481)

 

 

(27,067)

 

 

(34,784)

 

 

(46.0)

%

 

(58.6)

%

 

Net Loans before PPP

17,472,355

 

 

17,302,592

 

 

17,319,108

 

 

17,068,456

 

 

16,767,688

 

 

1.0

%

 

4.2

%

 

PPP

1,114,401

 

 

1,688,394

 

 

1,581,712

 

 

1,960,165

 

 

1,937,034

 

 

(34.0)

%

 

(42.5)

%

 

Total Net Loans

$

18,586,756

 

 

$

18,990,986

 

 

$

18,900,820

 

 

$

19,028,621

 

 

$

18,704,722

 

 

(2.1)

%

 

(0.6)

%

Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

7,442,132

 

 

$

7,046,116

 

 

$

6,531,002

 

 

$

6,378,077

 

 

$

6,239,055

 

 

5.6

%

 

19.3

%

 

Interest-bearing demand

5,795,404

 

 

5,959,909

 

 

5,818,564

 

 

5,813,935

 

 

5,099,405

 

 

(2.8)

%

 

13.6

%

 

Savings

6,276,554

 

 

6,244,513

 

 

5,929,792

 

 

5,805,431

 

 

5,667,893

 

 

0.5

%

 

10.7

%

 

Total demand and savings

19,514,090

 

 

19,250,538

 

 

18,279,358

 

 

17,997,443

 

 

17,006,353

 

 

1.4

%

 

14.7

%

 

Brokered

277,444

 

 

309,873

 

 

335,185

 

 

317,588

 

 

310,689

 

 

(10.5)

%

 

(10.7)

%

 

Time

1,932,778

 

 

2,073,427

 

 

2,224,664

 

 

2,415,020

 

 

2,567,166

 

 

(6.8)

%

 

(24.7)

%

 

Total Deposits

$

21,724,312

 

 

$

21,633,838

 

 

$

20,839,207

 

 

$

20,730,051

 

 

$

19,884,208

 

 

0.4

%

 

9.3

%

Short-term borrowings, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer funding

$

533,749

 

 

$

520,989

 

 

$

630,066

 

 

$

611,727

 

 

$

572,551

 

 

2.4

%

 

(6.8)

%

 

Total Short-term Borrowings

$

533,749

 

 

$

520,989

 

 

$

630,066

 

 

$

611,727

 

 

$

572,551

 

 

2.4

%

 

(6.8)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(2) Consists of overdrafts and net origination fees and costs.

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

 

 

 

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

% Change from

 

 

 

Six Months Ended

 

 

 

 

 

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Jun 30

 

 

 

Jun 30

 

 

 

 

 

 

 

2021

 

2021

 

2020

 

2020

 

2020

 

2021

 

2020

 

 

 

2021

 

2020

 

% Change

 

Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

$

176,673

 

 

$

184,936

 

 

$

183,645

 

 

$

179,159

 

 

$

180,696

 

 

(4.5)

%

 

(2.2)

%

 

 

 

$

361,609

 

 

$

380,074

 

 

(4.9)

%

 

 

Interest expense

 

 

14,274

 

 

20,488

 

 

22,054

 

 

25,043

 

 

27,942

 

 

(30.3)

%

 

(48.9)

%

 

 

 

34,762

 

 

66,574

 

 

(47.8)

%

 

 

Net Interest Income

 

 

162,399

 

 

164,448

 

 

161,591

 

 

154,116

 

 

152,754

 

 

(1.2)

%

 

6.3

%

 

 

 

326,847

 

 

313,500

 

 

4.3

%

 

 

Provision for credit losses

 

 

(3,500)

 

 

(5,500)

 

 

6,240

 

 

7,080

 

 

19,570

 

 

(36.4)

%

 

(117.9)

%

 

 

 

(9,000)

 

 

63,600

 

 

(114.2)

%

 

 

Net Interest Income after Provision

 

 

165,899

 

 

169,948

 

 

155,351

 

 

147,036

 

 

133,184

 

 

(2.4)

%

 

24.6

%

 

 

 

335,847

 

 

249,900

 

 

34.4

%

 

Non-Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchant and card

 

 

6,786

 

 

5,768

 

 

5,953

 

 

6,237

 

 

5,326

 

 

17.6

%

 

27.4

%

 

 

 

12,554

 

 

10,950

 

 

14.6

%

 

 

Cash management

 

 

5,341

 

 

4,921

 

 

4,737

 

 

4,742

 

 

4,503

 

 

8.5

%

 

18.6

%

 

 

 

10,262

 

 

9,245

 

 

11.0

%

 

 

Capital markets

 

 

1,536

 

 

2,800

 

 

3,513

 

 

4,696

 

 

5,004

 

 

(45.1)

%

 

(69.3)

%

 

 

 

4,336

 

 

10,079

 

 

(57.0)

%

 

 

Other commercial banking

 

 

3,466

 

 

2,853

 

 

2,606

 

 

2,636

 

 

1,914

 

 

21.5

%

 

81.1

%

 

 

 

6,319

 

 

4,892

 

 

29.2

%

 

 

Total commercial banking

 

 

17,129

 

 

16,342

 

 

16,809

 

 

18,311

 

 

16,748

 

 

4.8

%

 

2.3

%

 

 

 

33,471

 

 

35,167

 

 

(4.8)

%

 

 

Consumer banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Card

 

 

5,733

 

 

5,878

 

 

5,123

 

 

5,002

 

 

4,966

 

 

(2.5)

%

 

15.4

%

 

 

 

11,611

 

 

9,651

 

 

20.3

%

 

 

Overdraft

 

 

2,750

 

 

2,724

 

 

3,376

 

 

3,015

 

 

2,107

 

 

1.0

%

 

30.5

%

 

 

 

5,474

 

 

6,165

 

 

(11.2)

%

 

 

Other consumer banking

 

 

2,377

 

 

2,152

 

 

2,298

 

 

2,406

 

 

2,065

 

 

10.5

%

 

15.1

%

 

 

 

4,529

 

 

4,561

 

 

(0.7)

%

 

 

Total consumer banking

 

 

10,860

 

 

10,754

 

 

10,797

 

 

10,423

 

 

9,138

 

 

1.0

%

 

18.8

%

 

 

 

21,614

 

 

20,377

 

 

6.1

%

 

 

Wealth management

 

 

17,634

 

 

17,347

 

 

15,653

 

 

14,943

 

 

13,407

 

 

1.7

%

 

31.5

%

 

 

 

34,981

 

 

28,462

 

 

22.9

%

 

 

Mortgage banking

 

 

2,838

 

 

13,960

 

 

9,311

 

 

16,801

 

 

9,964

 

 

(79.7)

%

 

(71.5)

%

 

 

 

16,798

 

 

16,198

 

 

3.7

%

 

 

Other

 

 

3,393

 

 

3,519

 

 

3,004

 

 

2,769

 

 

3,660

 

 

(3.6)

%

 

(7.3)

%

 

 

 

6,912

 

 

7,311

 

 

(5.5)

%

 

 

Non-interest income before investment securities gains

 

 

51,854

 

 

61,922

 

 

55,574

 

 

63,246

 

 

52,917

 

 

(16.3)

%

 

(2.0)

%

 

 

 

113,776

 

 

107,515

 

 

5.8

%

 

 

Investment securities gains, net

 

 

36

 

 

33,475

 

 

 

 

2

 

 

3,005

 

 

(99.9)

%

 

(98.8)

%

 

 

 

33,511

 

 

3,051

 

 

N/M

 

 

Total Non-Interest Income

 

 

51,890

 

 

95,397

 

 

55,574

 

 

63,248

 

 

55,922

 

 

(45.6)

%

 

(7.2)

%

 

 

 

147,287

 

 

110,566

 

 

33.2

%

 

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

78,367

 

 

82,586

 

 

83,929

 

 

79,227

 

 

81,012

 

 

(5.1)

%

 

(3.3)

%

 

 

 

160,953

 

 

161,240

 

 

(0.2)

%

 

 

Net occupancy

 

 

12,494

 

 

13,982

 

 

13,161

 

 

13,221

 

 

13,144

 

 

(10.6)

%

 

(4.9)

%

 

 

 

26,476

 

 

26,630

 

 

(0.6)

%

 

 

Data processing and software

 

 

13,932

 

 

13,561

 

 

11,951

 

 

12,285

 

 

12,193

 

 

2.7

%

 

14.3

%

 

 

 

27,493

 

 

23,838

 

 

15.3

%

 

 

Other outside services

 

 

8,178

 

 

8,490

 

 

8,334

 

 

7,617

 

 

7,600

 

 

(3.7)

%

 

7.6

%

 

 

 

16,668

 

 

15,481

 

 

7.7

%

 

 

Equipment

 

 

3,424

 

 

3,428

 

 

3,563

 

 

3,711

 

 

3,193

 

 

(0.1)

%

 

7.2

%

 

 

 

6,852

 

 

6,611

 

 

3.6

%

 

 

Professional fees

 

 

2,651

 

 

2,779

 

 

2,424

 

 

2,879

 

 

3,331

 

 

(4.6)

%

 

(20.4)

%

 

 

 

5,430

 

 

7,533

 

 

(27.9)

%

 

 

FDIC insurance

 

 

2,282

 

 

2,624

 

 

2,346

 

 

1,578

 

 

2,133

 

 

(13.0)

%

 

7.0

%

 

 

 

4,906

 

 

4,941

 

 

(0.7)

%

 

 

Amortization of tax credit investments

 

 

1,563

 

 

1,531

 

 

1,532

 

 

1,694

 

 

1,450

 

 

2.1

%

 

7.8

%

 

 

 

3,094

 

 

2,900

 

 

6.7

%

 

 

Marketing

 

 

1,348

 

 

1,002

 

 

1,098

 

 

1,147

 

 

1,303

 

 

34.5

%

 

3.5

%

 

 

 

2,350

 

 

2,882

 

 

(0.7)

%

 

 

Intangible amortization

 

 

178

 

 

115

 

 

132

 

 

132

 

 

132

 

 

54.8

%

 

34.8

%

 

 

 

293

 

 

264

 

 

11.0

%

 

 

Debt extinguishment

 

 

412

 

 

32,163

 

 

 

 

 

 

2,878

 

 

(98.7)

%

 

(98.7)

%

 

 

 

32,575

 

 

2,878

 

 

N/M

 

 

Other

 

 

16,002

 

 

16,123

 

 

26,268

 

 

15,654

 

 

14,637

 

 

(0.8)

%

 

9.3

%

 

 

 

32,125

 

 

30,360

 

 

5.8

%

 

 

Total Non-Interest Expense

 

 

140,831

 

 

178,383

 

 

154,738

 

 

139,145

 

 

143,006

 

 

(21.1)

%

 

(1.5)

%

 

 

 

319,215

 

 

285,558

 

 

11.8

%

 

 

Income Before Income Taxes

 

 

76,958

 

 

86,961

 

 

56,187

 

 

71,139

 

 

46,100

 

 

(11.5)

%

 

66.9

%

 

 

 

163,919

 

 

74,909

 

 

118.8

%

 

 

Income tax expense

 

 

11,994

 

 

13,898

 

 

5,362

 

 

9,529

 

 

6,542

 

 

(13.7)

%

 

83.3

%

 

 

 

25,892

 

 

9,303

 

 

N/M

 

 

Net Income

 

 

64,964

 

 

73,063

 

 

50,825

 

 

61,610

 

 

39,558

 

 

(11.1)

%

 

64.2

%

 

 

 

138,027

 

 

65,606

 

 

110.4

%

 

 

Preferred stock dividends

 

 

(2,562)

 

 

(2,591)

 

 

(2,135)

 

 

 

 

 

 

(1.1)

%

 

N/M

 

 

 

(5,153)

 

 

 

 

N/M

 

 

Net Income Available to Common Shareholders

 

 

$

62,402

 

 

$

70,472

 

 

$

48,690

 

 

$

61,610

 

 

$

39,558

 

 

(11.5)

%

 

57.7

%

 

 

 

$

132,874

 

 

$

65,606

 

 

102.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

$

0.38

 

 

$

0.43

 

 

$

0.30

 

 

$

0.38

 

 

$

0.24

 

 

(11.6)

%

 

58.3

%

 

 

 

$

0.81

 

 

$

0.40

 

 

102.5

%

 

 

Diluted

 

 

0.38

 

 

0.43

 

 

0.30

 

 

0.38

 

 

0.24

 

 

(11.6)

%

 

58.3

%

 

 

 

0.81

 

 

0.40

 

 

102.5

%

 

 

Cash dividends

 

 

0.14

 

 

0.14

 

 

0.17

 

 

0.13

 

 

0.13

 

 

%

 

7.7

%

 

 

 

0.28

 

 

0.26

 

 

7.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

 

162,785

 

 

162,441

 

 

162,242

 

 

162,061

 

 

161,715

 

 

0.2

%

 

0.7

%

 

 

 

162,614

 

 

162,582

 

 

%

 

 

Weighted average shares (diluted)

 

 

163,858

 

 

163,737

 

 

163,071

 

 

162,579

 

 

162,267

 

 

0.1

%

 

1.0

%

 

 

 

163,738

 

 

163,326

 

 

0.3

%

 

N/M - Not meaningful

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

Three months ended

 

 

June 30, 2021

 

March 31, 2021

 

June 30, 2020

 

 

Average

 

Interest

 

Yield/

 

Average

 

Interest

 

Yield/

 

Average

 

Interest

 

Yield/

 

 

Balance

 

(1)

 

Rate

 

Balance

 

(1)

 

Rate

 

Balance

 

(1)

 

Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loans

$

18,906,556

 

 

$

156,525

 

 

3.32

%

 

$

18,980,586

 

 

$

165,462

 

 

3.53

%

 

$

18,331,797

 

 

$

160,613

 

 

3.52

%

 

Taxable investment securities

2,630,090

 

 

13,898

 

 

1.93

%

 

2,438,496

 

 

13,691

 

 

2.08

%

 

2,200,870

 

 

15,171

 

 

2.76

%

 

Tax-exempt investment securities

961,141

 

 

7,494

 

 

3.11

%

 

911,648

 

 

7,156

 

 

3.13

%

 

830,836

 

 

6,737

 

 

3.23

%

 

Total Investment Securities

3,591,231

 

 

21,392

 

 

2.38

%

 

3,350,144

 

 

20,847

 

 

2.49

%

 

3,031,706

 

 

21,908

 

 

2.89

%

 

Loans held for sale

31,948

 

 

199

 

 

2.49

%

 

53,465

 

 

471

 

 

3.53

%

 

55,608

 

 

509

 

 

3.66

%

 

Other interest-earning assets

1,752,549

 

 

1,575

 

 

0.16

%

 

1,900,199

 

 

1,136

 

 

0.24

%

 

815,910

 

 

766

 

 

0.38

%

 

Total Interest-earning Assets

24,282,284

 

 

179,691

 

 

2.97

%

 

24,284,394

 

 

187,916

 

 

3.13

%

 

22,235,021

 

 

183,796

 

 

3.32

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

129,927

 

 

 

 

 

 

120,181

 

 

 

 

 

 

153,728

 

 

 

 

 

 

Premises and equipment

229,047

 

 

 

 

 

 

230,649

 

 

 

 

 

 

240,417

 

 

 

 

 

 

Other assets

1,643,410

 

 

 

 

 

 

1,728,473

 

 

 

 

 

 

1,761,038

 

 

 

 

 

 

Less: ACL - loans(2)

(267,126)

 

 

 

 

 

 

(280,881)

 

 

 

 

 

 

(251,088)

 

 

 

 

 

 

Total Assets

$

26,017,542

 

 

 

 

 

 

$

26,082,816

 

 

 

 

 

 

$

24,139,116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

5,979,855

 

 

$

932

 

 

0.06

%

 

$

5,832,174

 

 

$

1,160

 

 

0.08

%

 

$

5,103,419

 

 

$

2,219

 

 

0.17

%

 

Savings deposits

6,280,629

 

 

1,363

 

 

0.09

%

 

6,137,084

 

 

1,526

 

 

0.10

%

 

5,446,368

 

 

3,331

 

 

0.25

%

 

Brokered deposits

297,815

 

 

253

 

 

0.34

%

 

324,364

 

 

395

 

 

0.49

%

 

312,121

 

 

422

 

 

0.54

%

 

Time deposits

2,003,606

 

 

5,434

 

 

1.09

%

 

2,150,570

 

 

6,521

 

 

1.23

%

 

2,624,962

 

 

11,145

 

 

1.71

%

 

Total Interest-bearing Deposits

14,561,905

 

 

7,982

 

 

0.22

%

 

14,444,192

 

 

9,602

 

 

0.27

%

 

13,486,870

 

 

17,118

 

 

0.51

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

514,025

 

 

137

 

 

0.11

%

 

570,775

 

 

188

 

 

0.13

%

 

707,771

 

 

517

 

 

0.29

%

 

Long-term borrowings

626,795

 

 

6,155

 

 

3.93

%

 

1,271,170

 

 

10,698

 

 

3.38

%

 

1,361,421

 

 

10,307

 

 

3.03

%

 

Total Interest-bearing Liabilities

15,702,725

 

 

14,274

 

 

0.36

%

 

16,286,137

 

 

20,488

 

 

0.51

%

 

15,556,062

 

 

27,942

 

 

0.72

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

7,203,696

 

 

 

 

 

 

6,672,832

 

 

 

 

 

 

5,789,788

 

 

 

 

 

 

Total Deposits/Cost of Deposits

21,765,601

 

 

 

 

0.15

%

 

21,117,024

 

 

 

 

0.18

%

 

19,276,658

 

 

 

 

0.36

%

 

Other

441,708

 

 

 

 

 

 

486,749

 

 

 

 

 

 

484,133

 

 

 

 

 

 

Total Liabilities

23,348,129

 

 

 

 

 

 

23,445,718

 

 

 

 

 

 

21,829,983

 

 

 

 

 

 

Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")

22,906,421

 

 

 

 

0.25

%

 

22,958,969

 

 

 

 

0.36

%

 

21,345,850

 

 

 

 

0.53

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

2,669,413

 

 

 

 

 

 

2,637,098

 

 

 

 

 

 

2,309,133

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

$

26,017,542

 

 

 

 

 

 

$

26,082,816

 

 

 

 

 

 

$

24,139,116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

165,417

 

 

2.73

%

 

 

 

167,428

 

 

2.79

%

 

 

 

155,854

 

 

2.81

%

 

Tax equivalent adjustment

 

 

(3,018)

 

 

 

 

 

 

(2,979)

 

 

 

 

 

 

(3,100)

 

 

 

 

Net interest income

 

 

$

162,399

 

 

 

 

 

 

$

164,449

 

 

 

 

 

 

$

152,754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):

dollars in thousands

 

 

Three months ended

 

% Change from

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

Mar 31

 

Jun 30

 

 

2021

 

2021

 

2020

 

2020

 

2020

 

2021

 

2020

Loans, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial mortgage

$

7,177,622

 

 

$

7,128,997

 

 

$

7,101,363

 

 

$

6,986,528

 

 

$

6,875,872

 

 

0.7

%

 

4.4

%

 

Commercial and industrial

3,920,771

 

 

4,033,367

 

 

4,024,879

 

 

4,030,750

 

 

4,451,228

 

 

(2.8)

%

 

(11.9)

%

 

Real estate - residential mortgage

3,396,690

 

 

3,183,585

 

 

3,087,529

 

 

2,975,516

 

 

2,769,682

 

 

6.7

%

 

22.6

%

 

Real estate - home equity

1,139,558

 

 

1,175,218

 

 

1,212,113

 

 

1,237,602

 

 

1,271,190

 

 

(3.0)

%

 

(10.4)

%

 

Real estate - construction

1,054,469

 

 

1,054,718

 

 

1,009,284

 

 

981,589

 

 

941,079

 

 

%

 

12.0

%

 

Consumer

451,486

 

 

459,038

 

 

468,678

 

 

464,851

 

 

465,728

 

 

(1.6)

%

 

(3.1)

%

 

Equipment lease financing

256,248

 

 

266,405

 

 

279,059

 

 

279,217

 

 

284,658

 

 

(3.8)

%

 

(10.0)

%

 

Other(1)

(14,677)

 

 

(9,455)

 

 

(18,817)

 

 

(28,656)

 

 

13,443

 

 

55.2

%

 

N/M

 

Net Loans before PPP

17,382,167

 

 

17,291,873

 

 

17,164,088

 

 

16,927,397

 

 

17,072,880

 

 

0.5

%

 

1.8

%

 

PPP

1,524,389

 

 

1,688,713

 

 

1,830,426

 

 

1,953,122

 

 

1,258,917

 

 

(9.7)

%

 

21.1

%

 

Total Net Loans

$

18,906,556

 

 

$

18,980,586

 

 

$

18,994,514

 

 

$

18,880,519

 

 

$

18,331,797

 

 

(0.4)

%

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

7,203,696

 

 

$

6,672,832

 

 

$

6,477,228

 

 

$

6,270,683

 

 

$

5,789,788

 

 

8.0

%

 

24.4

%

 

Interest-bearing demand

5,979,855

 

 

5,832,174

 

 

5,762,150

 

 

5,591,548

 

 

5,103,419

 

 

2.5

%

 

17.2

%

 

Savings

6,280,629

 

 

6,137,084

 

 

5,905,137

 

 

5,716,050

 

 

5,446,368

 

 

2.3

%

 

15.3

%

 

Total demand and savings

19,464,180

 

 

18,642,090

 

 

18,144,515

 

 

17,578,281

 

 

16,339,575

 

 

4.4

%

 

19.1

%

 

Brokered

297,815

 

 

324,364

 

 

340,451

 

 

314,721

 

 

312,121

 

 

(8.2)

%

 

(4.6)

%

 

Time

2,003,606

 

 

2,150,570

 

 

2,306,556

 

 

2,495,445

 

 

2,624,962

 

 

(6.8)

%

 

(23.7)

%

 

Total Deposits

$

21,765,601

 

 

$

21,117,024

 

 

$

20,791,522

 

 

$

20,388,447

 

 

$

19,276,658

 

 

3.1

%

 

12.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings, by type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer funding

$

514,025

 

 

$

570,775

 

 

$

622,623

 

 

$

613,127

 

 

$

546,716

 

 

(9.9)

%

 

(6.0)

%

 

Federal funds purchased

 

 

 

 

 

 

 

 

74,231

 

 

N/M

 

(100.0)

%

 

Short-term FHLB advances and other borrowings

 

 

 

 

 

 

 

 

86,824

 

 

N/M

 

(100.0)

%

 

Total Short-term borrowings

$

514,025

 

 

$

570,775

 

 

$

622,623

 

 

$

613,127

 

 

$

707,771

 

 

(9.9)

%

 

(27.4)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N/M - Not meaningful

(1) Consists of overdrafts and net origination fees and costs.

FULTON FINANCIAL CORPORATION

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

 

 

 

 

 

 

 

dollars in thousands

 

 

 

 

 

 

 

 

 

 

Six months ended June 30

 

 

 

 

2021

 

2020

 

 

 

 

Average

 

Interest

 

Yield/

 

Average

 

Interest

 

Yield/

 

 

 

 

Balance

 

(1)

 

Rate

 

Balance

 

(1)

 

Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

Net Loans

 

$

18,943,367

 

 

$

321,987

 

 

3.42

%

 

$

17,595,932

 

 

$

338,110

 

 

3.86

%

 

 

Taxable investment securities

 

2,534,821

 

 

27,588

 

 

2.00

%

 

2,242,663

 

 

31,465

 

 

2.81

%

 

 

Tax-exempt investment securities

 

936,531

 

 

14,651

 

 

3.12

%

 

775,530

 

 

12,698

 

 

3.26

%

 

 

Total Investment Securities

 

3,471,352

 

 

42,239

 

 

2.43

%

 

3,018,193

 

 

44,163

 

 

2.92

%

 

 

Loans held for sale

 

42,647

 

 

671

 

 

3.14

%

 

41,393

 

 

829

 

 

4.00

%

 

 

Other interest-earning assets

 

1,825,966

 

 

2,711

 

 

0.19

%

 

709,091

 

 

3,297

 

 

4.31

%

 

 

Total Interest-earning Assets

 

24,283,332

 

 

367,607

 

 

3.05

%

 

21,364,609

 

 

386,399

 

 

3.63

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

Cash and due from banks

 

125,081

 

 

 

 

 

 

145,988

 

 

 

 

 

 

 

Premises and equipment

 

229,843

 

 

 

 

 

 

240,019

 

 

 

 

 

 

 

Other assets

 

1,685,708

 

 

 

 

 

 

1,675,849

 

 

 

 

 

 

 

Less: ACL - loans(2)

 

(273,965)

 

 

 

 

 

 

(230,858)

 

 

 

 

 

 

 

Total Assets

 

$

26,049,999

 

 

 

 

 

 

$

23,195,607

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

Demand deposits

 

$

5,906,423

 

 

$

2,092

 

 

0.07

%

 

$

4,876,662

 

 

$

8,020

 

 

0.33

%

 

 

Savings deposits

 

6,209,253

 

 

2,890

 

 

0.09

%

 

5,287,015

 

 

10,441

 

 

0.40

%

 

 

Brokered deposits

 

311,016

 

 

647

 

 

0.42

%

 

293,756

 

 

1,495

 

 

1.02

%

 

 

Time deposits

 

2,076,681

 

 

11,955

 

 

1.16

%

 

2,693,202

 

 

23,602

 

 

1.76

%

 

 

Total Interest-bearing Deposits

 

14,503,373

 

 

17,584

 

 

0.24

%

 

13,150,635

 

 

43,558

 

 

0.67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

542,243

 

 

325

 

 

0.12

%

 

1,005,409

 

 

4,590

 

 

0.91

%

 

 

Long-term borrowings

 

947,203

 

 

16,853

 

 

3.56

%

 

1,212,318

 

 

18,426

 

 

3.04

%

 

 

Total Interest-bearing Liabilities

 

15,992,819

 

 

34,762

 

 

0.44

%

 

15,368,362

 

 

66,574

 

 

0.87

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

Demand deposits

 

6,939,731

 

 

 

 

 

 

5,048,408

 

 

 

 

 

 

 

Total Deposits/Cost of Deposits

 

21,443,104

 

 

 

 

0.17

%

 

18,199,043

 

 

 

 

0.48

%

 

 

Other

 

464,104

 

 

 

 

 

 

455,763

 

 

 

 

 

 

 

Total Liabilities

 

23,396,654

 

 

 

 

 

 

20,872,533

 

 

 

 

 

 

 

Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")

 

22,932,550

 

 

 

 

0.30

%

 

20,416,770

 

 

 

 

0.65

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

2,653,345

 

 

 

 

 

 

2,323,074

 

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$

26,049,999

 

 

 

 

 

 

$

23,195,607

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

332,845

 

 

2.76

%

 

 

 

319,825

 

 

3.01

%

 

 

Tax equivalent adjustment

 

 

 

(5,998)

 

 

 

 

 

 

(6,325)

 

 

 

 

 

Net interest income

 

 

 

$

326,847

 

 

 

 

 

 

$

313,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

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

 

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):

dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 30

 

 

 

 

 

2021

 

2020

 

% Change

Loans, by type:

 

 

 

 

 

 

 

Real estate - commercial mortgage

 

$

7,153,444

 

 

$

6,811,318

 

 

5.0

%

 

Commercial and industrial

 

3,976,758

 

 

4,448,990

 

 

(10.6)

%

 

Real estate - residential mortgage

 

3,290,726

 

 

2,719,851

 

 

21.0

%

 

Real estate - home equity

 

1,157,289

 

 

1,285,661

 

 

(10.0)

%

 

Real estate - construction

 

1,054,593

 

 

935,304

 

 

12.8

%

 

Consumer

 

455,241

 

 

466,071

 

 

(2.3)

%

 

Equipment lease financing

 

261,300

 

 

284,612

 

 

(8.2)

%

 

Other(1)

 

(12,081)

 

 

14,667

 

 

N/M

 

Net Loans before PPP

 

17,337,270

 

 

16,966,474

 

 

2.2

%

 

PPP

 

1,606,097

 

 

629,458

 

 

N/M

 

Total Net Loans

 

$

18,943,367

 

 

$

17,595,932

 

 

7.7

%

 

 

 

 

 

 

 

 

Deposits, by type:

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

6,939,731

 

 

$

5,048,408

 

 

37.5

%

 

Interest-bearing demand

 

5,906,423

 

 

4,876,662

 

 

21.1

%

 

Savings

 

6,209,253

 

 

5,287,015

 

 

17.4

%

 

Total demand and savings

 

19,055,407

 

 

15,212,085

 

 

25.3

%

 

Brokered

 

311,016

 

 

293,756

 

 

5.9

%

 

Time

 

2,076,681

 

 

2,693,202

 

 

(22.9)

%

 

Total Deposits

 

$

21,443,104

 

 

$

18,199,043

 

 

17.8

%

 

 

 

 

 

 

 

 

Short-term borrowings, by type:

 

 

 

 

 

 

 

Customer funding

 

542,243

 

 

487,478

 

 

11.2

%

 

Federal funds purchased

 

 

 

130,549

 

 

N/M

 

Short-term FHLB advances and other borrowings

 

 

 

387,382

 

 

N/M

 

Total Short-term Borrowings

 

$

542,243

 

 

$

1,005,409

 

 

(46.1)

%

 

 

 

 

 

 

 

 

N/M - Not meaningful

 

 

 

 

 

 

(1) Consists of overdrafts and net origination fees and costs.

 

 

FULTON FINANCIAL CORPORATION

 

 

 

 

ASSET QUALITY INFORMATION (UNAUDITED)

 

 

 

 

dollars in thousands

 

 

 

 

 

 

Three months ended

 

 

Jun 30

 

Mar 31

 

Dec 31

 

Sep 30

 

Jun 30

 

 

2021

 

2021

 

2020

 

2020

 

2020

Allowance for credit losses related to Net Loans:

 

 

 

 

 

 

 

 

Balance at beginning of period

$

265,986

 

 

$

277,567

 

 

$

266,825

 

 

$

256,537

 

 

$

238,508

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

(954)

 

 

(4,319)

 

 

(1,567)

 

 

(2,969)