LANCASTER, Pa.--(BUSINESS WIRE)--Fulton Financial Corporation (NASDAQ:FULT) ("Fulton" or the "Corporation") reported net income available to common shareholders of $79.3 million, or $0.47 per diluted share, for the fourth quarter of 2022, an increase of $11.0 million, or 16.0%, in comparison to the third quarter of 2022. The Corporation reported net income available to common shareholders of $276.7 million, or $1.67 per diluted share, for the year ended December 31, 2022, an increase of $11.5 million or 4.3%, in comparison to the year ended December 31, 2021. The results for the third and fourth quarters of 2022 include the impact of the consummation of the acquisition by the Corporation of Prudential Bancorp, Inc. ("Prudential Bancorp") on July 1, 2022.
"2022 was a record year for Fulton, as we continued to execute on our strategy to Grow the bank, Deliver effectively for customers, Operate with excellence, and Serve our stakeholders," said Curtis J. Myers, Chairman and CEO of Fulton Financial Corporation. "I'm very proud of our team's results, especially given the large number of strategic initiatives, we tackled, including the Prudential Bancorp acquisition - our first whole-bank acquisition in over a decade. Coming out of 2022, we are well positioned for continued success in 2023."
Operating net income available to common shareholders was $81.2 million, or $0.48 per diluted share, for the fourth quarter of 2022, calculated as shown below.
Three months ended | ||||||
(in thousands except per share data) | December 31, 2022 | |||||
Net income available to common shareholders | $79,271 | |||||
Plus: Core deposit intangible amortization | 514 | |||||
Plus: Merger-related expenses | 1,894 | |||||
Less: Tax impact of adjustments | (506) | |||||
Operating net income available to common shareholders (numerator) | $81,173 | |||||
Weighted average shares (diluted) (denominator) | 169,136 | |||||
Operating net income available to common shareholders per share (diluted)(1) | $0.48 | |||||
(1) Non-GAAP financial measure. |
Net Interest Income and Balance Sheet
Net interest income for the fourth quarter of 2022 was $225.9 million, an increase of $10.3 million in comparison to the third quarter of 2022. The net interest margin for the fourth quarter of 2022 increased 15 basis points, to 3.69%, in comparison to 3.54% in the third quarter of 2022.
The linked-quarter increase in net interest income was primarily due to rising interest rates resulting in increases in interest income from net loans of $33.8 million. An increase in the average balances for net loans of $440.7 million also contributed to the increase in interest income. Interest expense from interest-bearing liabilities for the fourth quarter of 2022 increased by $23.8 million to $41.9 million in comparison to $18.1 million in the third quarter of 2022 primarily due to rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings of $12.3 million and $11.5 million, respectively. An increase in the average balance for borrowings of $666.2 million in the fourth quarter of 2022 in comparison to the third quarter of 2022 also contributed to the increase in interest expense.
For the fourth quarter of 2022, net interest income was $225.9 million, an increase of $60.3 million, or 36.4%, in comparison to the fourth quarter of 2021 primarily driven by rising interest rates resulting in increases in interest income from net loans, investment securities and other interest-earning assets of $81.6 million, $5.0 million and $3.5 million, respectively. Increases in the average balances for net loans and investment securities of $1,784.0 million and $408.4 million, respectively, driven in part by the Prudential Bancorp acquisition, also contributed to the increase in interest income. Interest expense from interest-bearing liabilities for the fourth quarter of 2022 increased by $29.8 million to $41.9 million in comparison to $12.1 million in the fourth quarter of 2021 primarily driven by rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings of $16.5 million and $13.3 million, respectively. An increase in the average balance for borrowings of $928.4 million in the fourth quarter of 2022 in comparison to the fourth quarter of 2021 also contributed to the increase in interest expense.
Total average interest-earning assets for the fourth quarter of 2022 was $24.8 billion, an increase of $99.2 million from the third quarter of 2022 primarily driven by the aforementioned increases in average net loans of $440.7 million, partially offset by decreases in average investment securities and average other interest-earning assets of $169.8 million and $171.9 million, respectively.
Total average interest-earning assets for the fourth quarter of 2022 increased by $516.9 million from the fourth quarter of 2021 driven in part by the Prudential Bancorp acquisition. Average net loans for the fourth quarter of 2022 were $20.0 billion, an increase of $1.8 billion from the same period in 2021. Included in average net loans for the fourth quarter of 2022 were Paycheck Protection Program ("PPP") loans with an average balance of $25.5 million, a decrease of $409.5 million from the fourth quarter of 2021. Compared to the fourth quarter of 2021, average other interest-earning assets decreased $1,649.6 million and average investment securities increased $408.4 million.
Total average interest-bearing liabilities increased $130.7 million, to $15.7 billion, in the fourth quarter of 2022 in comparison to $15.6 billion in the third quarter of 2022 driven by an increase in the average balance for borrowings of $666.2 million, partially offset by a decrease in the average balance for total interest-bearing deposits of $535.4 million.
Total average interest-bearing liabilities for the fourth quarter of 2022 increased $285.0 million in comparison to $15.5 billion in the fourth quarter of 2021, driven by an increase in the average balance for borrowings of $928.4 million, partially offset by a decrease in the average balance for total interest-bearing deposits of $643.5 million.
Asset Quality
In the fourth quarter of 2022, a provision for credit losses of $14.5 million was recorded in comparison to a provision for credit losses of $19.0 million in the third quarter of 2022, and a negative provision for credit losses of $5.0 million in the fourth quarter of 2021. Included in the third quarter of 2022 provision for credit losses was a CECL Day 1 provision for credit losses of $8.0 million for the acquired Prudential Bancorp loan portfolio. Excluding the CECL Day 1 Provision, the third quarter of 2022 provision for credit losses was $11.0 million. Excluding the CECL Day 1 Provision, the linked-quarter increase in the provision for credit losses of $3.5 million was primarily due to loan growth and changes to the macroeconomic outlook.
Non-performing assets were $177.7 million, or 0.66% of total assets, at December 31, 2022, in comparison to $198.6 million, or 0.76% at September 30, 2022, and $153.9 million, or 0.60% of total assets, at December 31, 2021.
Net charge-offs for the fourth quarter of 2022 were 0.23% of total average loans in comparison to 0.01% and 0.07% in the third quarter of 2022 and the fourth quarter of 2021, respectively. Net charge-offs of $11.7 million for the fourth quarter of 2022 were primarily due to a charge-off for a commercial office loan due to credit-related concerns.
Non-interest Income
Non-interest income before investment securities gains in the fourth quarter of 2022 was $54.3 million, a decrease of $4.9 million, or 8.3%, from the third quarter of 2022. The decrease in non-interest income was driven primarily by decreases in mortgage banking income, commercial customer swap fees, reflected in capital markets, overdraft fees and cash management fees of $1.6 million, $1.3 million, $1.1 million and $0.7 million, respectively.
Compared to the fourth quarter of 2021, non-interest income before investment securities gains in the fourth quarter of 2022 decreased $9.6 million, or 15.0%, from $63.9 million. The decrease in non-interest income was primarily due to decreases of $5.1 million in mortgage banking income, $3.8 million in other income, primarily due to a decline from equity method investments of $4.1 million, and $0.8 million in wealth management revenues.
Non-interest Expense
Non-interest expense, excluding merger-related expenses of $1.9 million, was $166.6 million in the fourth quarter of 2022, an increase of $4.0 million, or 2.5%, compared to $162.6 million, excluding merger-related expenses of $7.0 million, in the third quarter of 2022. The increase was primarily due to increases of $1.5 million in other outside services expense, $0.6 million in professional fees, $0.5 million in marketing expense, and $1.6 million for a contingent liability, $0.8 million for branch-related closures and $0.6 million in fraud-related losses which are reflected in other non-interest expenses, partially offset by a $1.6 million decrease in salaries and employee benefits expense.
Compared to the fourth quarter of 2021, non-interest expense, excluding merger-related expenses of $1.9 million, increased $12.5 million, or 8.1%, in the fourth quarter of 2022 primarily due to increases of $7.2 million in salaries and employee benefits expense, $1.2 million in other outside services expense, $1.0 million in professional fees, $0.9 million in marketing expense, $0.8 million in data processing and software expense, $0.5 million in intangible asset amortization expense related to the acquisition of Prudential Bancorp, and $0.8 million for branch-related closures reflected in other non-interest expense.
Income Tax Expense
For the full-year 2022, the effective tax rate was 17.3%, in comparison to 17.6% for the full-year of 2021.
Additional information on Fulton is available on the Internet at www.fultonbank.com.
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, 2021, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022 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 generally accepted accounting principles ("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) | ||||||||||||||||||||
in thousands, except share data, per-share data and percentages | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | ||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | ||||||||||||||||
Ending Balances | ||||||||||||||||||||
Investments | $ | 3,968,023 | $ | 3,936,694 | $ | 4,117,801 | $ | 4,288,674 | $ | 4,167,774 | ||||||||||
Net loans | 20,279,547 | 19,695,199 | 18,920,950 | 18,476,119 | 18,325,350 | |||||||||||||||
Total assets | 26,931,702 | 26,146,042 | 25,252,686 | 25,598,310 | 25,796,398 | |||||||||||||||
Deposits | 20,649,538 | 21,376,554 | 21,143,866 | 21,541,174 | 21,573,499 | |||||||||||||||
Shareholders' equity | 2,579,757 | 2,471,159 | 2,471,093 | 2,569,535 | 2,712,680 | |||||||||||||||
Average Balances | ||||||||||||||||||||
Investments | $ | 3,936,579 | $ | 4,254,216 | $ | 4,216,507 | $ | 4,228,827 | $ | 3,980,045 | ||||||||||
Net loans | 20,004,513 | 19,563,825 | 18,637,175 | 18,383,118 | 18,220,550 | |||||||||||||||
Total assets | 26,386,355 | 26,357,095 | 25,578,432 | 25,622,462 | 26,136,536 | |||||||||||||||
Deposits | 21,027,656 | 21,788,052 | 21,523,713 | 21,480,183 | 21,876,938 | |||||||||||||||
Shareholders' equity | 2,489,148 | 2,604,057 | 2,531,346 | 2,688,834 | 2,713,198 | |||||||||||||||
Income Statement | ||||||||||||||||||||
Net interest income | $ | 225,911 | $ | 215,582 | $ | 178,831 | $ | 161,310 | $ | 165,613 | ||||||||||
Provision for credit losses | 14,513 | 18,958 | 1,500 | (6,950 | ) | (5,000 | ) | |||||||||||||
Non-interest income | 54,321 | 59,162 | 58,391 | 55,256 | 63,881 | |||||||||||||||
Non-interest expense | 168,462 | 169,558 | 149,730 | 145,978 | 154,019 | |||||||||||||||
Income before taxes | 97,257 | 86,228 | 85,992 | 77,538 | 80,475 | |||||||||||||||
Net income available to common shareholders | 79,271 | 68,309 | 67,427 | 61,726 | 59,325 | |||||||||||||||
Pre-provision net revenue(1) | 115,049 | 113,631 | 89,384 | 71,842 | 77,837 | |||||||||||||||
Per Share | ||||||||||||||||||||
Net income available to common shareholders (basic) | $ | 0.47 | $ | 0.41 | $ | 0.42 | $ | 0.38 | $ | 0.37 | ||||||||||
Net income available to common shareholders (diluted) | $ | 0.47 | $ | 0.40 | $ | 0.42 | $ | 0.38 | $ | 0.37 | ||||||||||
Operating net income available to common shareholders(1) | $ | 0.48 | $ | 0.48 | $ | 0.42 | $ | 0.38 | $ | 0.37 | ||||||||||
Cash dividends | $ | 0.21 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.22 | ||||||||||
Common shareholders' equity | $ | 14.24 | $ | 13.61 | $ | 14.15 | $ | 14.79 | $ | 15.70 | ||||||||||
Common shareholders' equity (tangible)(1) | $ | 10.90 | $ | 10.26 | $ | 10.81 | $ | 11.44 | $ | 12.35 | ||||||||||
Weighted average shares (basic) | 167,504 | 167,353 | 160,920 | 160,588 | 161,210 | |||||||||||||||
Weighted average shares (diluted) | 169,136 | 168,781 | 162,075 | 161,911 | 162,355 | |||||||||||||||
(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 | ||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | ||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | ||||||||||||||||
Asset Quality | ||||||||||||||||||||
Net (recoveries) charge offs to average loans | 0.23 | % | 0.01 | % | (0.08 | ) % | (0.02 | ) % | 0.07 | % | ||||||||||
Non-performing loans to total loans | 0.85 | % | 0.98 | % | 0.92 | % | 0.87 | % | 0.83 | % | ||||||||||
Non-performing assets to total assets | 0.66 | % | 0.76 | % | 0.71 | % | 0.64 | % | 0.60 | % | ||||||||||
ACL - loans(1) to total loans | 1.33 | % | 1.35 | % | 1.31 | % | 1.32 | % | 1.36 | % | ||||||||||
ACL - loans(1) to non-performing loans | 157 | % | 138 | % | 143 | % | 151 | % | 164 | % | ||||||||||
Asset Quality, excluding PPP(2)(3) | ||||||||||||||||||||
Net (recoveries) charge offs to adjusted average loans | 0.23 | % | 0.01 | % | (0.08 | ) % | (0.02 | ) % | 0.07 | % | ||||||||||
Non-performing loans to total adjusted loans | 0.85 | % | 0.98 | % | 0.92 | % | 0.88 | % | 0.84 | % | ||||||||||
ACL - loans(1) to total adjusted loans | 1.33 | % | 1.36 | % | 1.32 | % | 1.33 | % | 1.38 | % | ||||||||||
Profitability | ||||||||||||||||||||
Return on average assets | 1.23 | % | 1.07 | % | 1.10 | % | 1.02 | % | 0.94 | % | ||||||||||
Operating return on average assets(2) | 1.26 | % | 1.25 | % | 1.11 | % | 1.02 | % | 0.94 | % | ||||||||||
Return on average common shareholders' equity | 13.70 | % | 11.24 | % | 11.57 | % | 10.03 | % | 9.34 | % | ||||||||||
Return on average common shareholders' equity (tangible)(2) | 18.59 | % | 17.31 | % | 15.23 | % | 12.88 | % | 11.89 | % | ||||||||||
Net interest margin | 3.69 | % | 3.54 | % | 3.04 | % | 2.78 | % | 2.77 | % | ||||||||||
Efficiency ratio(2) | 58.1 | % | 57.8 | % | 61.4 | % | 65.8 | % | 65.2 | % | ||||||||||
Non-interest expenses to total average assets | 2.53 | % | 2.55 | % | 2.35 | % | 2.31 | % | 2.34 | % | ||||||||||
Operating non-interest expenses to total average assets(2) | 2.48 | % | 2.43 | % | 2.32 | % | 2.29 | % | 2.30 | % | ||||||||||
Capital Ratios | ||||||||||||||||||||
Tangible common equity ratio ("TCE")(2) | 6.9 | % | 6.7 | % | 7.0 | % | 7.3 | % | 7.8 | % | ||||||||||
TCE ratio, (excluding AOCI)(2)(5) | 8.2 | % | 8.3 | % | 8.2 | % | 7.9 | % | 7.8 | % | ||||||||||
Tier 1 leverage ratio(4) | 9.4 | % | 9.2 | % | 9.1 | % | 8.9 | % | 8.6 | % | ||||||||||
Common equity Tier 1 capital ratio(4) | 10.0 | % | 10.0 | % | 9.9 | % | 10.0 | % | 9.9 | % | ||||||||||
Tier 1 risk-based capital ratio(4) | 10.8 | % | 10.9 | % | 10.8 | % | 10.9 | % | 10.9 | % | ||||||||||
Total risk-based capital ratio(4) | 13.5 | % | 13.6 | % | 13.7 | % | 13.8 | % | 14.1 | % | ||||||||||
(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) Asset quality information excluding PPP loans. | ||||||||||||||||||||
(4) Regulatory capital ratios as of December 31, 2022 are preliminary and prior periods are actual. | ||||||||||||||||||||
(5) Tangible common equity ("TCE") ratio, excluding accumulated other comprehensive income ("AOCI") | ||||||||||||||||||||
FULTON FINANCIAL CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) | |||||||||||||||||||||||||
dollars in thousands | |||||||||||||||||||||||||
% Change from | |||||||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Dec 31 | |||||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Cash and due from banks | $ | 126,898 | $ | 143,465 | $ | 158,605 | $ | 161,462 | $ | 172,276 | (11.5 | ) % | (26.3 | ) % | |||||||||||
Other interest-earning assets | 685,209 | 467,164 | 383,715 | 1,054,232 | 1,523,973 | 46.7 | % | (55.0 | ) % | ||||||||||||||||
Loans held for sale | 7,264 | 14,411 | 17,528 | 27,675 | 35,768 | (49.6 | ) % | (79.7 | ) % | ||||||||||||||||
Investment securities | 3,968,023 | 3,936,694 | 4,117,801 | 4,288,674 | 4,167,774 | 0.8 | % | (4.8 | ) % | ||||||||||||||||
Net loans | 20,279,547 | 19,695,199 | 18,920,950 | 18,476,119 | 18,325,350 | 3.0 | % | 10.7 | % | ||||||||||||||||
Less: ACL - loans(1) | (269,366 | ) | (266,838 | ) | (248,564 | ) | (243,705 | ) | (249,001 | ) | (0.9 | ) % | (8.2 | ) % | |||||||||||
Loans, net | 20,010,181 | 19,428,361 | 18,672,386 | 18,232,414 | 18,076,349 | 3.0 | % | 10.7 | % | ||||||||||||||||
Net, premises and equipment | 225,141 | 221,496 | 211,639 | 218,257 | 220,357 | 1.6 | % | 2.2 | % | ||||||||||||||||
Accrued interest receivable | 91,579 | 72,821 | 64,457 | 55,102 | 57,451 | 25.8 | % | 59.4 | % | ||||||||||||||||
Goodwill and intangible assets | 560,824 | 561,495 | 537,700 | 537,877 | 538,053 | (0.1 | ) % | 4.2 | % | ||||||||||||||||
Other assets | 1,256,583 | 1,300,135 | 1,088,855 | 1,022,617 | 1,004,397 | (3.3 | ) % | 25.1 | % | ||||||||||||||||
Total Assets | $ | 26,931,702 | $ | 26,146,042 | $ | 25,252,686 | $ | 25,598,310 | $ | 25,796,398 | 3.0 | % | 4.4 | % | |||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||
Deposits | $ | 20,649,538 | $ | 21,376,554 | $ | 21,143,866 | $ | 21,541,174 | $ | 21,573,499 | (3.4 | ) % | (4.3 | ) % | |||||||||||
Borrowings | 2,871,207 | 1,424,681 | 1,013,315 | 1,008,934 | 1,038,109 | 101.5 | % | N/M | |||||||||||||||||
Other liabilities | 831,200 | 873,648 | 624,412 | 478,667 | 472,110 | (4.9 | ) % | 76.1 | % | ||||||||||||||||
Total Liabilities | 24,351,945 | 23,674,883 | 22,781,593 | 23,028,775 | 23,083,718 | 2.9 | % | 5.5 | % | ||||||||||||||||
Shareholders' equity | 2,579,757 | 2,471,159 | 2,471,093 | 2,569,535 | 2,712,680 | 4.4 | % | (4.9 | ) % | ||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 26,931,702 | $ | 26,146,042 | $ | 25,252,686 | $ | 25,598,310 | $ | 25,796,398 | 3.0 | % | 4.4 | % | |||||||||||
LOANS, DEPOSITS AND BORROWINGS DETAIL: | |||||||||||||||||||||||||
Loans, by type: | |||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 7,693,835 | $ | 7,554,509 | $ | 7,417,036 | $ | 7,289,376 | $ | 7,279,080 | 1.8 | % | 5.7 | % | |||||||||||
Commercial and industrial | 4,452,606 | 4,208,775 | 4,098,552 | 3,992,285 | 3,906,791 | 5.8 | % | 14.0 | % | ||||||||||||||||
Real estate - residential mortgage | 4,737,279 | 4,574,228 | 4,203,827 | 3,946,741 | 3,846,750 | 3.6 | % | 23.2 | % | ||||||||||||||||
Real estate - home equity | 1,102,838 | 1,110,103 | 1,108,808 | 1,098,171 | 1,118,248 | (0.7 | ) % | (1.4 | ) % | ||||||||||||||||
Real estate - construction | 1,269,925 | 1,273,097 | 1,177,446 | 1,210,340 | 1,139,779 | (0.2 | ) % | 11.4 | % | ||||||||||||||||
Consumer | 699,179 | 633,666 | 538,747 | 481,551 | 464,657 | 10.3 | % | 50.5 | % | ||||||||||||||||
Equipment lease financing | 260,143 | 255,060 | 254,897 | 253,521 | 236,344 | 2.0 | % | 10.1 | % | ||||||||||||||||
Other(2) | 43,344 | 53,671 | 49,214 | 39,857 | 32,448 | (19.2 | ) % | 33.6 | % | ||||||||||||||||
Net loans before PPP | 20,259,149 | 19,663,109 | 18,848,527 | 18,311,842 | 18,024,097 | 3.0 | % | 12.4 | % | ||||||||||||||||
PPP | 20,398 | 32,090 | 72,423 | 164,277 | 301,253 | (36.4 | ) % | (93.2 | ) % | ||||||||||||||||
Total Net Loans | $ | 20,279,547 | $ | 19,695,199 | $ | 18,920,950 | $ | 18,476,119 | $ | 18,325,350 | 3.0 | % | 10.7 | % | |||||||||||
Deposits, by type: | |||||||||||||||||||||||||
Noninterest-bearing demand | $ | 7,006,388 | $ | 7,372,896 | $ | 7,530,777 | $ | 7,528,391 | $ | 7,370,963 | (5.0 | ) % | (4.9 | ) % | |||||||||||
Interest-bearing demand | 5,410,903 | 5,676,600 | 5,403,805 | 5,625,286 | 5,819,539 | (4.7 | ) % | (7.0 | ) % | ||||||||||||||||
Savings | 6,434,621 | 6,563,003 | 6,406,051 | 6,479,196 | 6,403,995 | (2.0 | ) % | 0.5 | % | ||||||||||||||||
Total demand and savings | 18,851,912 | 19,612,499 | 19,340,633 | 19,632,873 | 19,594,497 | (3.9 | ) % | (3.8 | ) % | ||||||||||||||||
Brokered | 208,416 | 226,883 | 243,172 | 248,833 | 251,526 | (8.1 | ) % | (17.1 | ) % | ||||||||||||||||
Time | 1,589,210 | 1,537,172 | 1,560,061 | 1,659,468 | 1,727,476 | 3.4 | % | (8.0 | ) % | ||||||||||||||||
Total Deposits | $ | 20,649,538 | $ | 21,376,554 | $ | 21,143,866 | $ | 21,541,174 | $ | 21,573,499 | (3.4 | ) % | (4.3 | ) % | |||||||||||
Borrowings, by type: | |||||||||||||||||||||||||
Federal funds purchased | $ | 191,000 | $ | 136,000 | $ | 20,000 | $ | - | $ | - | 40.4 | % | N/M | ||||||||||||
Federal Home Loan Bank advances | 1,250,000 | 265,500 | - | - | - | N/M | N/M | ||||||||||||||||||
Senior debt and subordinated debt | 539,634 | 539,461 | 555,748 | 555,594 | 620,406 | - | % | (13.0 | ) % | ||||||||||||||||
Other borrowings | 890,573 | 483,720 | 437,567 | 453,340 | 417,703 | 84.1 | % | 113.2 | % | ||||||||||||||||
Total Borrowings | $ | 2,871,207 | $ | 1,424,681 | $ | 1,013,315 | $ | 1,008,934 | $ | 1,038,109 | 101.5 | % | N/M | ||||||||||||
N/M - Not meaningful | |||||||||||||||||||||||||
(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, except per share | |||||||||||||||||||||||||||||||||||||
Three Months Ended | % Change from | Year Ended | |||||||||||||||||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Dec 31 | Dec 31 | ||||||||||||||||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||
Interest Income: | |||||||||||||||||||||||||||||||||||||
Interest income | $ | 267,847 | $ | 233,691 | $ | 190,299 | $ | 173,001 | $ | 177,724 | 14.6 | % | 50.7 | % | $ | 864,838 | $ | 723,412 | 19.5 | % | |||||||||||||||||
Interest expense | 41,936 | 18,109 | 11,468 | 11,691 | 12,111 | 131.6 | % | N/M | 83,204 | 59,682 | 39.4 | % | |||||||||||||||||||||||||
Net Interest Income | 225,911 | 215,582 | 178,831 | 161,310 | 165,613 | 4.8 | % | 36.4 | % | 781,634 | 663,730 | 17.8 | % | ||||||||||||||||||||||||
Provision for credit losses | 14,513 | 18,958 | 1,500 | (6,950 | ) | (5,000 | ) | (23.4 | ) % | N/M | 28,021 | (14,600 | ) | N/M | |||||||||||||||||||||||
Net Interest Income after Provision | 211,398 | 196,624 | 177,331 | 168,260 | 170,613 | 7.5 | % | 23.9 | % | 753,613 | 678,330 | 11.1 | % | ||||||||||||||||||||||||
Non-Interest Income: | |||||||||||||||||||||||||||||||||||||
Commercial banking: | |||||||||||||||||||||||||||||||||||||
Merchant and card | 7,223 | 7,601 | 7,355 | 6,097 | 6,588 | (5.0 | ) % | 9.6 | % | 28,276 | 26,121 | 8.3 | % | ||||||||||||||||||||||||
Cash management | 5,756 | 6,483 | 6,062 | 5,428 | 5,318 | (11.2 | ) % | 8.2 | % | 23,729 | 20,865 | 13.7 | % | ||||||||||||||||||||||||
Capital markets | 2,627 | 4,060 | 3,893 | 1,676 | 2,982 | (35.3 | ) % | (11.9 | ) % | 12,256 | 9,381 | 30.6 | % | ||||||||||||||||||||||||
Other commercial banking | 2,998 | 2,664 | 3,049 | 2,807 | 3,592 | 12.5 | % | (16.5 | ) % | 11,518 | 12,322 | (6.5 | ) % | ||||||||||||||||||||||||
Total commercial banking | 18,604 | 20,808 | 20,359 | 16,008 | 18,480 | (10.6 | ) % | 0.7 | % | 75,779 | 68,689 | 10.3 | % | ||||||||||||||||||||||||
Consumer banking: | |||||||||||||||||||||||||||||||||||||
Card | 6,331 | 6,278 | 6,067 | 5,796 | 5,953 | 0.8 | % | 6.3 | % | 24,472 | 23,505 | 4.1 | % | ||||||||||||||||||||||||
Overdraft | 3,364 | 4,463 | 3,881 | 3,772 | 3,896 | (24.6 | ) % | (13.7 | ) % | 15,480 | 12,844 | 20.5 | % | ||||||||||||||||||||||||
Other consumer banking | 2,380 | 2,534 | 2,524 | 2,106 | 2,280 | (6.1 | ) % | 4.4 | % | 9,544 | 9,195 | 3.8 | % | ||||||||||||||||||||||||
Total consumer banking | 12,075 | 13,275 | 12,472 | 11,674 | 12,129 | (9.0 | ) % | (0.4 | ) % | 49,496 | 45,544 | 8.7 | % | ||||||||||||||||||||||||
Wealth management | 17,531 | 17,610 | 18,274 | 19,428 | 18,285 | (0.4 | ) % | (4.1 | ) % | 72,843 | 71,798 | 1.5 | % | ||||||||||||||||||||||||
Mortgage banking | 2,140 | 3,720 | 3,768 | 4,576 | 7,243 | (42.5 | ) % | (70.5 | ) % | 14,204 | 33,576 | (57.7 | ) % | ||||||||||||||||||||||||
Other | 3,972 | 3,802 | 3,510 | 3,551 | 7,739 | 4.5 | % | (48.7 | ) % | 14,835 | 20,622 | (28.1 | ) % | ||||||||||||||||||||||||
Non-interest income before investment securities gains (losses) | 54,322 | 59,215 | 58,383 | 55,237 | 63,876 | (8.3 | ) % | (15.0 | ) % | 227,157 | 240,229 | (5.4 | ) % | ||||||||||||||||||||||||
Investment securities gains (losses), net | (1 | ) | (53 | ) | 8 | 19 | 5 | 98.1 | % | (120.0 | ) % | (27 | ) | 33,516 | (100.1 | ) % | |||||||||||||||||||||
Total Non-Interest Income | 54,321 | 59,162 | 58,391 | 55,256 | 63,881 | (8.2 | ) % | (15.0 | ) % | 227,130 | 273,745 | (17.0 | ) % | ||||||||||||||||||||||||
Non-Interest Expense: | |||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | 92,733 | 94,283 | 85,404 | 84,464 | 85,506 | (1.6 | ) % | 8.5 | % | 356,884 | 329,138 | 8.4 | % | ||||||||||||||||||||||||
Data processing and software | 15,448 | 15,807 | 14,685 | 14,315 | 14,612 | (2.3 | ) % | 5.7 | % | 60,255 | 56,440 | 6.8 | % | ||||||||||||||||||||||||
Net occupancy | 14,061 | 14,025 | 13,587 | 14,522 | 14,366 | 0.3 | % | (2.1 | ) % | 56,195 | 53,799 | 4.5 | % | ||||||||||||||||||||||||
Other outside services | 10,860 | 9,361 | 8,764 | 8,167 | 9,637 | 16.0 | % | 12.7 | % | 37,152 | 34,194 | 8.7 | % | ||||||||||||||||||||||||
Equipment | 3,640 | 3,548 | 3,422 | 3,423 | 3,539 | 2.6 | % | 2.9 | % | 14,033 | 13,807 | 1.6 | % | ||||||||||||||||||||||||
FDIC insurance | 3,219 | 3,158 | 2,961 | 3,209 | 3,032 | 1.9 | % | 6.2 | % | 12,547 | 10,665 | 17.6 | % | ||||||||||||||||||||||||
Professional fees | 2,945 | 2,373 | 2,013 | 1,792 | 1,946 | 24.1 | % | 51.3 | % | 9,123 | 9,647 | (5.4 | ) % | ||||||||||||||||||||||||
Marketing | 2,380 | 1,859 | 1,326 | 1,320 | 1,477 | 28.0 | % | 61.1 | % | 6,885 | 5,275 | 30.5 | % | ||||||||||||||||||||||||
Intangible amortization | 688 | 690 | 177 | 176 | 146 | (0.3 | ) % | N/M | 1,731 | 589 | N/M | ||||||||||||||||||||||||||
Debt extinguishment | - | - | - | - | 674 | N/M | N/M | - | 33,249 | (100.0 | ) % | ||||||||||||||||||||||||||
Merger-related expenses | 1,894 | 7,006 | 1,027 | 401 | - | (73.0 | ) % | N/M | 10,328 | - | N/M | ||||||||||||||||||||||||||
Other | 20,594 | 17,448 | 16,364 | 14,189 | 19,084 | 18.0 | % | 7.9 | % | 68,595 | 71,027 | (3.4 | ) % | ||||||||||||||||||||||||
Total Non-Interest Expense | 168,462 | 169,558 | 149,730 | 145,978 | 154,019 | (0.6 | ) % | 9.4 | % | 633,728 | 617,830 | 2.6 | % | ||||||||||||||||||||||||
Income Before Income Taxes | 97,257 | 86,228 | 85,992 | 77,538 | 80,475 | 12.8 | % | 20.9 | % | 347,015 | 334,245 | 3.8 | % | ||||||||||||||||||||||||
Income tax expense | 15,424 | 15,357 | 16,003 | 13,250 | 18,588 | 0.4 | % | (17.0 | ) % | 60,034 | 58,748 | 2.2 | % | ||||||||||||||||||||||||
Net Income | 81,833 | 70,871 | 69,989 | 64,288 | 61,887 | 15.5 | % | 32.2 | % | 286,981 | 275,497 | 4.2 | % | ||||||||||||||||||||||||
Preferred stock dividends | (2,562 | ) | (2,562 | ) | (2,562 | ) | (2,562 | ) | (2,562 | ) | - | % | - | % | (10,248 | ) | (10,277 | ) | 0.3 | % | |||||||||||||||||
Net Income Available to Common Shareholders | $ | 79,271 | $ | 68,309 | $ | 67,427 | $ | 61,726 | $ | 59,325 | 16.0 | % | 33.6 | % | $ | 276,733 | $ | 265,220 | 4.3 | % | |||||||||||||||||
Three Months Ended | % Change from | Year Ended | |||||||||||||||||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Dec 31 | Dec 31 | ||||||||||||||||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||
PER SHARE: | |||||||||||||||||||||||||||||||||||||
Net income available to common shareholders: | |||||||||||||||||||||||||||||||||||||
Basic | $ | 0.47 | $ | 0.41 | $ | 0.42 | $ | 0.38 | $ | 0.37 | 14.6 | % | 27.0 | % | $ | 1.69 | $ | 1.63 | 3.7 | % | |||||||||||||||||
Diluted | $ | 0.47 | $ | 0.40 | $ | 0.42 | $ | 0.38 | $ | 0.37 | 17.5 | % | 27.0 | % | $ | 1.67 | $ | 1.62 | 3.1 | % | |||||||||||||||||
Cash dividends | $ | 0.21 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.22 | 40.0 | % | (4.5 | ) % | $ | 0.66 | $ | 0.64 | 3.1 | % | |||||||||||||||||
Weighted average shares (basic) | 167,504 | 167,353 | 160,920 | 160,588 | 161,210 | 0.1 | % | 3.9 | % | 164,119 | 162,233 | 1.2 | % | ||||||||||||||||||||||||
Weighted average shares (diluted) | 169,136 | 168,781 | 162,075 | 161,911 | 162,355 | 0.2 | % | 4.2 | % | 165,472 | 163,307 | 1.3 | % | ||||||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||
December 31, 2022 | September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||||||||||||
Balance | Interest(1) | Rate | Balance | Interest(1) | Rate | Balance | Interest(1) | Rate | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||
Net loans | $ | 20,004,513 | $ | 241,453 | 4.80 | % | $ | 19,563,825 | $ | 207,343 | 4.21 | % | $ | 18,220,550 | $ | 159,057 | 3.47 | % | ||||||||||||||
Investment securities | 4,330,635 | 27,781 | 2.56 | % | 4,500,461 | 28,022 | 2.49 | % | 3,922,197 | 22,424 | 2.29 | % | ||||||||||||||||||||
Loans held for sale | 9,264 | 171 | 7.39 | % | 9,098 | 194 | 8.51 | % | 35,235 | 333 | 3.77 | % | ||||||||||||||||||||
Other interest-earning assets | 450,818 | 2,752 | 2.43 | % | 622,673 | 2,103 | 1.34 | % | 2,100,392 | (905 | ) | (0.19 | ) % | |||||||||||||||||||
Total Interest-Earning Assets | 24,795,230 | 272,157 | 4.36 | % | 24,696,057 | 237,662 | 3.83 | % | 24,278,374 | 180,909 | 2.96 | % | ||||||||||||||||||||
Noninterest-Earning assets: | ||||||||||||||||||||||||||||||||
Cash and due from banks | 149,472 | 152,349 | 211,958 | |||||||||||||||||||||||||||||
Premises and equipment | 223,245 | 223,880 | 226,319 | |||||||||||||||||||||||||||||
Other assets | 1,488,684 | 1,545,812 | 1,677,028 | |||||||||||||||||||||||||||||
Less: ACL - loans(2) | (270,276 | ) | (261,003 | ) | (257,143 | ) | ||||||||||||||||||||||||||
Total Assets | $ | 26,386,355 | $ | 26,357,095 | $ | 26,136,536 | ||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Interest-Bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | $ | 5,479,443 | $ | 4,589 | 0.33 | % | $ | 5,708,059 | $ | 1,886 | 0.13 | % | $ | 5,933,780 | $ | 756 | 0.05 | % | ||||||||||||||
Savings deposits | 6,466,775 | 11,539 | 0.71 | % | 6,681,713 | 3,414 | 0.20 | % | 6,413,638 | 992 | 0.06 | % | ||||||||||||||||||||
Brokered deposits | 215,729 | 1,947 | 3.58 | % | 247,105 | 1,346 | 2.16 | % | 256,192 | 220 | 0.34 | % | ||||||||||||||||||||
Time deposits | 1,554,885 | 4,302 | 1.10 | % | 1,615,384 | 3,404 | 0.84 | % | 1,756,672 | 3,928 | 0.89 | % | ||||||||||||||||||||
Total Interest-Bearing Deposits | 13,716,832 | 22,377 | 0.65 | % | 14,252,261 | 10,050 | 0.28 | % | 14,360,282 | 5,896 | 0.16 | % | ||||||||||||||||||||
Borrowings | 2,025,522 | 19,559 | 3.83 | % | 1,359,348 | 8,060 | 2.38 | % | 1,097,095 | 6,216 | 2.29 | % | ||||||||||||||||||||
Total Interest-Bearing Liabilities | 15,742,354 | 41,936 | 1.06 | % | 15,611,609 | 18,110 | 0.47 | % | 15,457,377 | 12,112 | 0.31 | % | ||||||||||||||||||||
Noninterest-Bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | 7,310,824 | 7,535,791 | 7,516,656 | |||||||||||||||||||||||||||||
Other | 844,029 | 605,638 | 449,305 | |||||||||||||||||||||||||||||
Total Liabilities | 23,897,207 | 23,753,038 | 23,423,338 | |||||||||||||||||||||||||||||
Total Deposits/Cost of Deposits | 21,027,656 | 0.42 | % | 21,788,052 | 0.18 | % | 21,876,938 | 0.11 | % | |||||||||||||||||||||||
Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds") | 23,053,178 | 0.72 | % | 23,147,400 | 0.31 | % | 22,974,033 | 0.21 | % | |||||||||||||||||||||||
Shareholders' equity | 2,489,148 | 2,604,057 | 2,713,198 | |||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 26,386,355 | $ | 26,357,095 | $ | 26,136,536 | ||||||||||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 230,221 | 3.69 | % | 219,552 | 3.54 | % | 168,797 | 2.77 | % | |||||||||||||||||||||||
Tax equivalent adjustment | (4,310 | ) | (3,970 | ) | (3,184 | ) | ||||||||||||||||||||||||||
Net Interest Income | $ | 225,911 | $ | 215,582 | $ | 165,613 | ||||||||||||||||||||||||||
(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 BORROWINGS DETAIL (UNAUDITED): | ||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||
Three months ended | % Change from | |||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Dec 31 | ||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||
Loans, by type: | ||||||||||||||||||||
Real estate - commercial mortgage | $ | 7,696,997 | $ | 7,566,259 | $ | 7,340,417 | $ | 7,294,914 | $ | 7,157,906 | 1.7 | % | 7.5 | % | ||||||
Commercial and industrial | 4,347,406 | 4,201,399 | 4,040,587 | 3,986,900 | 3,898,559 | 3.5 | % | 11.5 | % | |||||||||||
Real estate - residential mortgage | 4,643,784 | 4,485,649 | 4,052,666 | 3,887,428 | 3,773,156 | 3.5 | % | 23.1 | % | |||||||||||
Real estate - home equity | 1,106,325 | 1,099,487 | 1,118,494 | 1,106,319 | 1,122,042 | 0.6 | % | (1.4 | ) % | |||||||||||
Real estate - construction | 1,209,998 | 1,268,590 | 1,188,932 | 1,137,649 | 1,117,592 | (4.6 | ) % | 8.3 | % | |||||||||||
Consumer | 679,108 | 604,634 | 485,095 | 471,129 | 462,346 | 12.3 | % | 46.9 | % | |||||||||||
Equipment lease financing | 255,291 | 252,810 | 253,659 | 236,388 | 238,349 | 1.0 | % | 7.1 | % | |||||||||||
Other(1) | 40,075 | 35,823 | 42,476 | 36,277 | 15,558 | 11.9 | % | N/M | ||||||||||||
Net loans before PPP | 19,978,984 | 19,514,651 | 18,522,326 | 18,157,004 | 17,785,508 | 2.4 | % | 12.3 | % | |||||||||||
PPP | 25,529 | 49,174 | 114,849 | 226,114 | 435,042 | (48.1 | ) % | (94.1 | ) % | |||||||||||
Total Net Loans | $ | 20,004,513 | $ | 19,563,825 | $ | 18,637,175 | $ | 18,383,118 | $ | 18,220,550 | 2.3 | % | 9.8 | % | ||||||
Deposits, by type: | ||||||||||||||||||||
Noninterest-bearing demand | $ | 7,310,824 | $ | 7,535,791 | $ | 7,647,618 | $ | 7,431,235 | $ | 7,516,656 | (3.0 | ) % | (2.7 | ) % | ||||||
Interest-bearing demand | 5,479,443 | 5,708,059 | 5,597,975 | 5,664,987 | 5,933,780 | (4.0 | ) % | (7.7 | ) % | |||||||||||
Savings | 6,466,775 | 6,681,713 | 6,425,634 | 6,436,548 | 6,413,638 | (3.2 | ) % | 0.8 | % | |||||||||||
Total demand and savings | 19,257,042 | 19,925,563 | 19,671,227 | 19,532,770 | 19,864,074 | (3.4 | ) % | (3.1 | ) % | |||||||||||
Brokered | 215,729 | 247,105 | 244,200 | 250,350 | 256,192 | (12.7 | ) % | (15.8 | ) % | |||||||||||
Time | 1,554,885 | 1,615,384 | 1,608,286 | 1,697,063 | 1,756,672 | (3.7 | ) % | (11.5 | ) % | |||||||||||
Total Deposits | $ | 21,027,656 | $ | 21,788,052 | $ | 21,523,713 | $ | 21,480,183 | $ | 21,876,938 | (3.5 | ) % | (3.9 | ) % | ||||||
Borrowings, by type: | ||||||||||||||||||||
Federal funds purchased | $ | 261,737 | $ | 96,965 | $ | 2,857 | $ | - | $ | - | N/M | N/M | ||||||||
Federal Home Loan Bank advances | 564,692 | 206,152 | - | - | - | N/M | N/M | |||||||||||||
Senior debt and subordinated debt | 539,550 | 554,735 | 555,701 | 608,961 | 622,108 | (2.7 | ) % | (13.3 | ) % | |||||||||||
Other borrowings | 659,543 | 501,496 | 445,261 | 424,854 | 474,987 | 31.5 | % | 38.9 | % | |||||||||||
Total Borrowings | $ | 2,025,522 | $ | 1,359,348 | $ | 1,003,819 | $ | 1,033,815 | $ | 1,097,095 | 49.0 | % | 84.6 | % | ||||||
(1) Consists of overdrafts and net origination fees and costs. | ||||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||||
Year Ended December 31 | ||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||||||||
Balance | Interest(1) | Rate | Balance | Interest(1) | Rate | |||||||||||||||||
ASSETS | ||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Net loans | $ | 19,152,740 | $ | 765,603 | 4.00 | % | $ | 18,627,787 | $ | 644,387 | 3.46 | % | ||||||||||
Investment securities | 4,364,627 | 106,115 | 2.43 | % | 3,673,250 | 86,325 | 2.35 | % | ||||||||||||||
Loans held for sale | 14,974 | 866 | 5.78 | % | 39,211 | 1,302 | 3.32 | % | ||||||||||||||
Other interest-earning assets | 814,731 | 7,249 | 0.89 | % | 2,014,954 | 3,694 | 0.18 | % | ||||||||||||||
Total Interest-Earning Assets | 24,347,072 | 879,833 | 3.61 | % | 24,355,202 | 735,708 | 3.02 | % | ||||||||||||||
Noninterest-Earning assets: | ||||||||||||||||||||||
Cash and due from banks | 156,050 | 165,942 | ||||||||||||||||||||
Premises and equipment | 220,982 | 228,708 | ||||||||||||||||||||
Other assets | 1,505,277 | 1,686,053 | ||||||||||||||||||||
Less: ACL - loans(2) | (257,897 | ) | (265,572 | ) | ||||||||||||||||||
Total Assets | $ | 25,971,484 | $ | 26,170,333 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||
Interest-Bearing liabilities: | ||||||||||||||||||||||
Demand deposits | $ | 5,593,942 | $ | 8,219 | 0.15 | % | $ | 5,979,479 | $ | 3,662 | 0.06 | % | ||||||||||
Savings deposits | 6,458,165 | 16,642 | 0.26 | % | 6,306,967 | 4,936 | 0.08 | % | ||||||||||||||
Brokered deposits | 262,359 | 4,097 | 1.56 | % | 286,901 | 1,096 | 0.38 | % | ||||||||||||||
Time deposits | 1,617,804 | 14,871 | 0.92 | % | 1,939,446 | 20,311 | 1.05 | % | ||||||||||||||
Total Interest-Bearing Deposits | 13,932,270 | 43,829 | 0.31 | % | 14,512,793 | 30,005 | 0.21 | % | ||||||||||||||
Total borrowings | 1,358,357 | 39,375 |
| 2.89 | % | 1,297,963 | 29,677 | 2.29 | % | |||||||||||||
Total Interest-Bearing Liabilities | 15,290,627 | 83,204 | 0.54 | % | 15,810,756 | 59,682 | 0.38 | % | ||||||||||||||
Noninterest-Bearing liabilities: | ||||||||||||||||||||||
Demand deposits | 7,522,304 | 7,211,153 | ||||||||||||||||||||
Other | 598,230 | 462,478 | ||||||||||||||||||||
Total Liabilities | 23,411,161 | 23,484,387 | ||||||||||||||||||||
Total Deposits/Cost of Deposits | 21,454,574 | 0.20 | % | 21,723,946 | 0.14 | % | ||||||||||||||||
Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds") | 22,812,931 | 0.36 | % | 23,021,909 | 0.26 | % | ||||||||||||||||
Shareholders' equity | 2,560,323 | 2,685,946 | ||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 25,971,484 | $ | 26,170,333 | ||||||||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 796,629 | 3.27 | % | 676,026 | 2.78 | % | ||||||||||||||||
Tax equivalent adjustment | (14,995 | ) | (12,296 | ) | ||||||||||||||||||
Net Interest Income | $ | 781,634 | $ | 663,730 | ||||||||||||||||||
(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 BORROWINGS DETAIL (UNAUDITED): | |||||||||
dollars in thousands | |||||||||
Year Ended December 31 | |||||||||
2022 | 2021 | % Change | |||||||
Loans, by type: | |||||||||
Real estate - commercial mortgage | $ | 7,523,806 | $ | 7,149,712 | 5.2 | % | |||
Commercial and industrial | 4,126,916 | 3,932,351 | 4.9 | % | |||||
Real estate - residential mortgage | 4,261,527 | 3,501,072 | 21.7 | % | |||||
Real estate - home equity | 1,101,142 | 1,141,042 | (3.5 | ) % | |||||
Real estate - construction | 1,178,550 | 1,078,350 | 9.3 | % | |||||
Consumer | 569,305 | 456,427 | 24.7 | % | |||||
Equipment lease financing | 249,595 | 252,104 | (1.0 | ) % | |||||
Other(1) | 38,682 | (3,776 | ) | N/M | |||||
Net loans before PPP | 19,049,523 | 17,507,282 | 8.8 | % | |||||
PPP | 103,217 | 1,120,505 | (90.8 | ) % | |||||
Total Net Loans | $ | 19,152,740 | $ | 18,627,787 | 2.8 | % | |||
Deposits, by type: | |||||||||
Noninterest-bearing demand | $ | 7,522,304 | $ | 7,211,153 | 4.3 | % | |||
Interest-bearing demand | 5,593,942 | 5,979,479 | (6.4 | ) % | |||||
Savings | 6,458,165 | 6,306,967 | 2.4 | % | |||||
Total demand and savings | 19,574,411 | 19,497,599 | 0.4 | % | |||||
Brokered | 262,359 | 286,901 | (8.6 | ) % | |||||
Time | 1,617,804 | 1,939,446 | (16.6 | ) % | |||||
Total Deposits | $ | 21,454,574 | $ | 21,723,946 | (1.2 | ) % | |||
Borrowings, by type: | |||||||||
Federal funds purchased | $ | 91,125 | $ | - | N/M | ||||
Federal Home Loan Bank advances | 194,295 | 126,677 | 53.4 | % | |||||
Senior debt and subordinated debt | 564,337 | 657,386 | (14.2 | ) % | |||||
Other borrowings | 508,600 | 513,900 | (1.0 | ) % | |||||
Total Borrowings | $ | 1,358,357 | $ | 1,297,963 | 4.7 | % | |||
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 | Year Ended | |||||||||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Dec 31 | Dec 31 | ||||||||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Allowance for credit losses related to net loans: | ||||||||||||||||||||||||||||
Balance at beginning of period | $ | 266,838 | $ | 248,564 | $ | 243,705 | $ | 249,001 | $ | 256,727 | $ | 249,001 | $ | 277,567 | ||||||||||||||
CECL Day 1 provision expense | - | 7,954 | - | - | - | 7,954 | - | |||||||||||||||||||||
Initial purchased credit deteriorated loans | - | 1,135 | - | - | - | 1,135 | - | |||||||||||||||||||||
Loans charged off: | ||||||||||||||||||||||||||||
Commercial and industrial | (179 | ) | (1,783 | ) | (201 | ) | (227 | ) | (9,417 | ) | (2,390 | ) | (15,337 | ) | ||||||||||||||
Real estate - commercial mortgage | (12,235 | ) | (86 | ) | - | (152 | ) | (369 | ) | (12,473 | ) | (8,726 | ) | |||||||||||||||
Consumer and home equity | (1,311 | ) | (1,172 | ) | (877 | ) | (1,052 | ) | (828 | ) | (4,412 | ) | (3,309 | ) | ||||||||||||||
Real estate - residential mortgage | - | - | (66 | ) | - | - | (66 | ) | (1,290 | ) | ||||||||||||||||||
Real estate - construction | - | - | - | - | - | - | (39 | ) | ||||||||||||||||||||
Equipment lease financing and other | (505 | ) | (683 | ) | (474 | ) | (469 | ) | (380 | ) | (2,131 | ) | (2,251 | ) | ||||||||||||||
Total loans charged off | (14,230 | ) | (3,724 | ) | (1,618 | ) | (1,900 | ) | (10,994 | ) | (21,472 | ) | (30,952 | ) | ||||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||||||||||
Commercial and industrial | 961 | 2,213 | 739 | 1,980 | 5,795 | 5,893 | 9,587 | |||||||||||||||||||||
Real estate - commercial mortgage | 183 | 29 | 3,536 | 112 | 1,007 | 3,860 | 2,474 | |||||||||||||||||||||
Consumer and home equity | 683 | 682 | 762 | 454 | 767 | 2,581 | 2,345 | |||||||||||||||||||||
Real estate - residential mortgage | 10 | 101 | 92 | 222 | 89 | 425 | 375 | |||||||||||||||||||||
Real estate - construction | 530 | - | 12 | 32 | 77 | 574 | 1,412 | |||||||||||||||||||||
Equipment lease financing and other | 132 | 247 | 226 | 154 | 283 | 759 | 953 | |||||||||||||||||||||
Recoveries of loans previously charged off | 2,499 | 3,272 | 5,367 | 2,954 | 8,018 | 14,092 | 17,146 | |||||||||||||||||||||
Net loans recovered (charged off) | (11,731 | ) | (452 | ) | 3,749 | 1,054 | (2,976 | ) | (7,380 | ) | (13,806 | ) | ||||||||||||||||
Provision for credit losses | 14,259 | 9,637 | 1,110 | (6,350 | ) | (4,750 | ) | 18,656 | (14,760 | ) | ||||||||||||||||||
Balance at end of period | $ | 269,366 | $ | 266,838 | $ | 248,564 | $ | 243,705 | $ | 249,001 | $ | 269,366 | $ | 249,001 | ||||||||||||||
Net (recoveries) charge offs to average loans | 0.23 | % | 0.01 | % | (0.08 | ) % | (0.02 | ) % | 0.07 | % | 0.04 | % | 0.07 | % | ||||||||||||||
Provision for credit losses related to OBS Credit Exposures | ||||||||||||||||||||||||||||
Provision for credit losses | $ | 254 | $ | 1,367 | $ | 390 | ($ | 600 | ) | ($ | 250 | ) | ||||||||||||||||
NON-PERFORMING ASSETS: | ||||||||||||||||||||||||||||
Non-accrual loans | $ | 144,443 | $ | 178,204 | $ | 162,530 | $ | 136,799 | $ | 143,666 | ||||||||||||||||||
Loans 90 days past due and accruing | 27,463 | 14,559 | 11,016 | 24,182 | 8,453 | |||||||||||||||||||||||
Total non-performing loans | 171,906 | 192,763 | 173,546 | 160,981 | 152,119 | |||||||||||||||||||||||
Other real estate owned | 5,790 | 5,877 | 4,786 | 2,014 | 1,817 | |||||||||||||||||||||||
Total non-performing assets | $ | 177,696 | $ | 198,640 | $ | 178,332 | $ | 162,995 | $ | 153,936 | ||||||||||||||||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||||||||||
Commercial and industrial | $ | 28,288 | $ | 29,831 | $ | 44,713 | $ | 30,193 | $ | 30,629 | ||||||||||||||||||
Real estate - commercial mortgage | 72,634 | 96,281 | 59,940 | 64,190 | 54,044 | |||||||||||||||||||||||
Real estate - residential mortgage | 46,509 | 41,597 | 42,922 | 39,308 | 39,399 | |||||||||||||||||||||||
Consumer and home equity | 9,800 | 10,016 | 10,552 | 11,465 | 11,505 | |||||||||||||||||||||||
Real estate - construction | 1,368 | 1,456 | 1,357 | 672 | 901 | |||||||||||||||||||||||
Equipment lease financing and other | 13,307 | 13,582 | 14,062 | 15,153 | 15,641 | |||||||||||||||||||||||
Total non-performing loans | $ | 171,906 | $ | 192,763 | $ | 173,546 | $ | 160,981 | $ | 152,119 | ||||||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) | ||||||||||||||||||||||||
(dollars in thousands, except per share data and percentages) | ||||||||||||||||||||||||
Explanatory note: | This press release contains supplemental financial information, as detailed below, that has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow: | |||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | ||||||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | ||||||||||||||||||||
Operating net income available to common shareholders | ||||||||||||||||||||||||
Net income available to common shareholders | $ | 79,271 | $ | 68,309 | $ | 67,427 | $ | 61,726 | $ | 59,325 | ||||||||||||||
Plus: Core deposit intangible amortization | 514 | 514 | - | - | - | |||||||||||||||||||
Plus: Merger-related expenses | 1,894 | 7,006 | 1,027 | 401 | - | |||||||||||||||||||
Plus: CECL Day 1 Provision expense | - | 7,954 | - | - | - | |||||||||||||||||||
Less: Tax impact of adjustments | (506 | ) | (3,250 | ) | (216 | ) | (84 | ) | - | |||||||||||||||
Operating net income available to common shareholders (numerator) | $ | 81,173 | $ | 80,533 | $ | 68,238 | $ | 62,043 | $ | 59,325 | ||||||||||||||
Weighted average shares (diluted) (denominator) | 169,136 | 168,781 | 162,075 | 161,911 | 162,355 | |||||||||||||||||||
Operating net income available to common shareholders, per share (diluted) | $ | 0.48 | $ | 0.48 | $ | 0.42 | $ | 0.38 | $ | 0.37 | ||||||||||||||
Common shareholders' equity (tangible), per share | ||||||||||||||||||||||||
Shareholders' equity | $ | 2,579,757 | $ | 2,471,159 | $ | 2,471,093 | $ | 2,569,535 | $ | 2,712,680 | ||||||||||||||
Less: Preferred stock | (192,878 | ) | (192,878 | ) | (192,878 | ) | (192,878 | ) | (192,878 | ) | ||||||||||||||
Less: Goodwill and intangible assets | (560,824 | ) | (561,495 | ) | (537,700 | ) | (537,877 | ) | (538,053 | ) | ||||||||||||||
Tangible common shareholders' equity (numerator) | $ | 1,826,055 | $ | 1,716,786 | $ | 1,740,515 | $ | 1,838,780 | $ | 1,981,749 | ||||||||||||||
Shares outstanding, end of period (denominator) | 167,599 | 167,399 | 161,057 | 160,669 | 160,490 | |||||||||||||||||||
Common shareholders' equity (tangible), per share | $ | 10.90 | $ | 10.26 | $ | 10.81 | $ | 11.44 | $ | 12.35 | ||||||||||||||
Operating return on average assets | ||||||||||||||||||||||||
Net income | $ | 81,833 | $ | 70,871 | $ | 69,989 | $ | 64,288 | $ | 61,887 | ||||||||||||||
Plus: Core deposit intangible amortization | 514 | 514 | - | - | - | |||||||||||||||||||
Plus: Merger-related expenses | 1,894 | 7,006 | 1,027 | 401 | - | |||||||||||||||||||
Plus: CECL Day 1 Provision expense | - | 7,954 | - | - | - | |||||||||||||||||||
Less: Tax impact of adjustments | (506 | ) | (3,250 | ) | (216 | ) | (84 | ) | - | |||||||||||||||
Operating net income (numerator) | $ | 83,735 | $ | 83,095 | $ | 70,800 | $ | 64,605 | $ | 61,887 | ||||||||||||||
Total average assets (denominator) | $ | 26,386,355 | $ | 26,357,095 | $ | 25,578,432 | $ | 25,622,462 | $ | 26,136,536 | ||||||||||||||
Operating return on average assets | 1.26 | % | 1.25 | % | 1.11 | % | 1.02 | % | 0.94 | % | ||||||||||||||
Return on average common shareholders' equity (tangible) | ||||||||||||||||||||||||
Net income available to common shareholders | $ | 79,271 | $ | 68,309 | $ | 67,427 | $ | 61,726 | $ | 59,325 | ||||||||||||||
Plus: Intangible amortization | 688 | 690 | 177 | 176 | 146 | |||||||||||||||||||
Plus: Merger-related expenses | 1,894 | 7006 | 1027 | 401 | - | |||||||||||||||||||
Plus: CECL Day 1 Provision expense | - | 7,954 | - | - | - | |||||||||||||||||||
Less: Tax impact of adjustments | (542 | ) | (3,287 | ) | (253 | ) | (122 | ) | (32 | ) | ||||||||||||||
Operating net income available to common shareholders (numerator) | $ | 81,311 | $ | 80,672 | $ | 68,378 | $ | 62,181 | $ | 59,439 | ||||||||||||||
Average shareholders' equity | $ | 2,489,148 | $ | 2,604,057 | $ | 2,531,346 | $ | 2,688,834 | $ | 2,713,198 | ||||||||||||||
Less: Average preferred stock | (192,878 | ) | (192,878 | ) | (192,878 | ) | (192,878 | ) | (192,878 | ) | ||||||||||||||
Less: Average goodwill and intangible assets | (561,219 | ) | (562,285 | ) | (537,786 | ) | (537,976 | ) | (536,638 | ) | ||||||||||||||
Average tangible common shareholders' equity (denominator) | $ | 1,735,051 | $ | 1,848,894 | $ | 1,800,682 | $ | 1,957,980 | $ | 1,983,682 | ||||||||||||||
Return on average common shareholders' equity (tangible) | 18.59 | % | 17.31 | % | 15.23 | % | 12.88 | % | 11.89 | % | ||||||||||||||
Three months ended | ||||||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | ||||||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | ||||||||||||||||||||
Tangible common equity to tangible assets (TCE Ratio) | ||||||||||||||||||||||||
Shareholders' equity | $ | 2,579,757 | $ | 2,471,159 | $ | 2,471,093 | $ | 2,569,535 | $ | 2,712,680 | ||||||||||||||
Less: Preferred stock | (192,878 | ) | (192,878 | ) | (192,878 | ) | (192,878 | ) | (192,878 | ) | ||||||||||||||
Less: Goodwill and intangible assets | (560,824 | ) | (561,495 | ) | (537,700 | ) | (537,877 | ) | (538,053 | ) | ||||||||||||||
Tangible common shareholders' equity (numerator) | $ | 1,826,055 | $ | 1,716,786 | $ | 1,740,515 | $ | 1,838,780 | $ | 1,981,749 | ||||||||||||||
Total assets | $ | 26,931,702 | $ | 26,146,042 | $ | 25,252,686 | $ | 25,598,310 | $ | 25,796,398 | ||||||||||||||
Less: Goodwill and intangible assets | (560,824 | ) | (561,495 | ) | (537,700 | ) | (537,877 | ) | (538,053 | ) | ||||||||||||||
Total tangible assets (denominator) | $ | 26,370,878 | $ | 25,584,547 | $ | 24,714,986 | $ | 25,060,433 | $ | 25,258,345 | ||||||||||||||
Tangible common equity to tangible assets | 6.92 | % | 6.71 | % | 7.04 | % | 7.34 | % | 7.85 | % | ||||||||||||||
Tangible common equity to tangible assets (TCE Ratio) excluding AOCI | ||||||||||||||||||||||||
Shareholders' equity | $ | 2,579,757 | $ | 2,471,159 | $ | 2,471,093 | $ | 2,569,535 | $ | 2,712,680 | ||||||||||||||
Less: Preferred stock | (192,878 | ) | (192,878 | ) | (192,878 | ) | (192,878 | ) | (192,878 | ) | ||||||||||||||
Less: Accumulated other comprehensive income (loss) | (385,476 | ) | (442,947 | ) | (304,210 | ) | (158,855 | ) | 27,411 | |||||||||||||||
Less: Goodwill and intangible assets | (560,824 | ) | (561,495 | ) | (537,700 | ) | (537,877 | ) | (538,053 | ) | ||||||||||||||
Tangible common shareholders' equity (numerator) | $ | 2,211,531 | $ | 2,159,733 | $ | 2,044,725 | $ | 1,997,635 | $ | 1,954,338 | ||||||||||||||
Total assets | $ | 26,931,702 | $ | 26,146,042 | $ | 25,252,686 | $ | 25,598,310 | $ | 25,796,398 | ||||||||||||||
Less: Goodwill and intangible assets | (560,824 | ) | (561,495 | ) | (537,700 | ) | (537,877 | ) | (538,053 | ) | ||||||||||||||
Plus: AOCI - unrealized losses/(gains) on AFS investments securities | 632,456 | 368,196 | 249,424 | 112,965 | (40,444 | ) | ||||||||||||||||||
Total tangible assets (denominator) | $ | 27,003,334 | $ | 25,952,743 | $ | 24,964,410 | $ | 25,173,398 | $ | 25,217,901 | ||||||||||||||
Tangible common equity to tangible assets, excluding AOCI | 8.19 | % | 8.32 | % | 8.19 | % | 7.94 | % | 7.75 | % | ||||||||||||||
Efficiency ratio | ||||||||||||||||||||||||
Non-interest expense | $ | 168,462 | $ | 169,558 | $ | 149,730 | $ | 145,978 | $ | 154,019 | ||||||||||||||
Less: Amortization of tax credit investments | (696 | ) | (696 | ) | (696 | ) | (696 | ) | (1,547 | ) | ||||||||||||||
Less: Merger-related expenses | (1,894 | ) | (7,006 | ) | (1,027 | ) | (401 | ) | - | |||||||||||||||
Less: Intangible amortization | (688 | ) | (690 | ) | (177 | ) | (176 | ) | (146 | ) | ||||||||||||||
Less: Debt extinguishment costs | - | - | - | - | (674 | ) | ||||||||||||||||||
Non-interest expense (numerator) | $ | 165,184 | $ | 161,166 | $ | 147,830 | $ | 144,705 | $ | 151,652 | ||||||||||||||
Net interest income | $ | 225,911 | $ | 215,582 | $ | 178,831 | $ | 161,310 | $ | 165,613 | ||||||||||||||
Tax equivalent adjustment | 4,310 | 3,970 | 3,427 | 3,288 | 3,184 | |||||||||||||||||||
Plus: Total non-interest income | 54,321 | 59,162 | 58,391 | 55,256 | 63,881 | |||||||||||||||||||
Less: Investment securities (gains) losses, net | 1 | 53 | (8 | ) | (19 | ) | (5 | ) | ||||||||||||||||
Total revenue (denominator) | $ | 284,543 | $ | 278,767 | $ | 240,641 | $ | 219,835 | $ | 232,673 | ||||||||||||||
Efficiency ratio | 58.1 | % | 57.8 | % | 61.4 | % | 65.8 | % | 65.2 | % | ||||||||||||||
Operating non-interest expenses to total average assets | ||||||||||||||||||||||||
Non-interest expense | $ | 168,462 | $ | 169,558 | $ | 149,730 | $ | 145,978 | $ | 154,019 | ||||||||||||||
Less: Amortization of tax credit investments | (696 | ) | (696 | ) | (696 | ) | (696 | ) | (1,547 | ) | ||||||||||||||
Less: Intangible amortization | (688 | ) | (690 | ) | (177 | ) | (176 | ) | (146 | ) | ||||||||||||||
Less: Merger-related expenses | (1,894 | ) | (7,006 | ) | (1,027 | ) | (401 | ) | - | |||||||||||||||
Less: Debt extinguishment costs | - | - | - | - | (674 | ) | ||||||||||||||||||
Non-interest expense (numerator) | $ | 165,184 | $ | 161,166 | $ | 147,830 | $ | 144,705 | $ | 151,652 | ||||||||||||||
Total average assets (denominator) | $ | 26,386,355 | $ | 26,357,095 | $ | 25,578,432 | $ | 25,622,462 | $ | 26,136,536 | ||||||||||||||
Operating non-interest expenses to total average assets | 2.48 | % | 2.43 | % | 2.32 | % | 2.29 | % | 2.30 | % | ||||||||||||||
Three months ended | ||||||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | ||||||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | ||||||||||||||||||||
Asset Quality, excluding PPP | ||||||||||||||||||||||||
Net loans recovered (charged-off) (numerator) | $ | (11,731 | ) | $ | (452 | ) | $ | 3,749 | $ | 1,054 | $ | (2,976 | ) | |||||||||||
Average net loans | $ | 20,004,513 | $ | 19,563,825 | $ | 18,637,175 | $ | 18,383,118 | $ | 18,220,550 | ||||||||||||||
Less: Average PPP loans | (25,529 | ) | (49,174 | ) | (114,849 | ) | (226,114 | ) | (435,042 | ) | ||||||||||||||
Total adjusted average loans (denominator) | $ | 19,978,984 | $ | 19,514,651 | $ | 18,522,326 | $ | 18,157,004 | $ | 17,785,508 | ||||||||||||||
Net charge-offs (recoveries) to adjusted average loans | 0.23 | % | 0.01 | % | (0.08 | ) % | (0.02 | ) % | 0.07 | % | ||||||||||||||
Non-performing loans (numerator) | $ | 171,906 | $ | 192,763 | $ | 173,546 | $ | 160,981 | $ | 152,119 | ||||||||||||||
Net loans | $ | 20,279,547 | $ | 19,695,199 | $ | 18,920,950 | $ | 18,476,119 | $ | 18,325,350 | ||||||||||||||
Less: PPP loans | (20,398 | ) | (32,090 | ) | (72,423 | ) | (164,277 | ) | (301,253 | ) | ||||||||||||||
Total adjusted loans (denominator) | $ | 20,259,149 | $ | 19,663,109 | $ | 18,848,527 | $ | 18,311,842 | $ | 18,024,097 | ||||||||||||||
Non-performing loans to total adjusted loans | 0.85 | % | 0.98 | % | 0.92 | % | 0.88 | % | 0.84 | % | ||||||||||||||
ACL - loans (numerator) | $ | 269,366 | $ | 266,838 | $ | 248,564 | $ | 243,705 | $ | 249,001 | ||||||||||||||
Net loans | $ | 20,279,547 | $ | 19,695,199 | $ | 18,920,950 | $ | 18,476,119 | $ | 18,325,350 | ||||||||||||||
Less: PPP loans | (20,398 | ) | (32,090 | ) | (72,423 | ) | (164,277 | ) | (301,253 | ) | ||||||||||||||
Total adjusted loans (denominator) | $ | 20,259,149 | $ | 19,663,109 | $ | 18,848,527 | $ | 18,311,842 | $ | 18,024,097 | ||||||||||||||
ACL - loans to total adjusted loans | 1.33 | % | 1.36 | % | 1.32 | % | 1.33 | % | 1.38 | % | ||||||||||||||
Pre-provision net revenue | ||||||||||||||||||||||||
Net interest income | $ | 225,911 | $ | 215,582 | $ | 178,831 | $ | 161,310 | $ | 165,613 | ||||||||||||||
Non-interest income | 54,321 | 59,162 | 58,391 | 55,256 | 63,881 | |||||||||||||||||||
Less: Investment securities (gains) losses, net | 1 | 53 | (8 | ) | (19 | ) | (5 | ) | ||||||||||||||||
Total revenue | $ | 280,233 | $ | 274,797 | $ | 237,214 | $ | 216,547 | $ | 229,489 | ||||||||||||||
Non-interest expense | $ | 168,462 | $ | 169,558 | $ | 149,730 | $ | 145,978 | $ | 154,019 | ||||||||||||||
Less: Amortization on tax credit investments | (696 | ) | (696 | ) | (696 | ) | (696 | ) | (1,547 | ) | ||||||||||||||
Less: Merger-related expenses | (1,894 | ) | (7,006 | ) | (1,027 | ) | (401 | ) | - | |||||||||||||||
Less: Intangible amortization | (688 | ) | (690 | ) | (177 | ) | (176 | ) | (146 | ) | ||||||||||||||
Less: Debt extinguishment | - | - | - | - | (674 | ) | ||||||||||||||||||
Total non-interest expense | $ | 165,184 | $ | 161,166 | $ | 147,830 | $ | 144,705 | $ | 151,652 | ||||||||||||||
Pre-provision net revenue | $ | 115,049 | $ | 113,631 | $ | 89,384 | $ | 71,842 | $ | 77,837 | ||||||||||||||
Note: numbers may not sum due to rounding. | ||||||||||||||||||||||||
Contacts
Media: Lacey Dean (717) 735-8688
Investor: Matt Jozwiak (717) 327-2657
