FULT
LANCASTER, Pa., Jan. 21, 2025 /PRNewswire/ -- Fulton Financial Corporation (NASDAQ: FULT) ("Fulton" or the "Corporation") reported net income available to common shareholders of $66.1 million, or $0.36 per diluted share, for the fourth quarter of 2024, an increase of $5.4 million, or $0.03 per share, in comparison to the third quarter of 2024. Operating net income available to common shareholders for the three months ended December 31, 2024 was $88.9 million, or $0.48 per diluted share(1), a decrease of $2.4 million, or $0.02 per share, in comparison to the third quarter of 2024. Net income available to common shareholders for the year ended December 31, 2024 was $278.5 million, or $1.57 per diluted share, an increase of $4.5 million, and a decrease of $0.07 per diluted share in comparison to the year ended December 31, 2023. Operating net income available to common shareholders for the year ended December 31, 2024 was $328.1 million, or $1.85 per diluted share(1), an increase of $43.1 million, or $0.14 per diluted share, in comparison to the year ended December 31, 2023.
"2024 was a record year for Fulton. Operating diluted earnings per share of $1.85 represents an 8% increase over the prior year," said Curtis J. Myers, Chairman and CEO of Fulton. "We made significant progress, both operationally and strategically, and are now realizing the benefits of these efforts in our results. With a strong quarter and year, we are very excited and well positioned for continued success in 2025."
Financial Highlights
Fourth quarter of 2024 operating results of $0.48 per diluted share were impacted by the following items:
The following items highlight notable changes in the components of net income in the fourth quarter of 2024 compared to the third quarter of 2024:
Balance Sheet Summary
Provision for Credit Losses and Asset Quality
Additional information on Fulton is available on the Internet at www.fultonbank.com.
(1)
Financial measure derived by methods other than generally accepted accounting principles ("GAAP"). Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of the press release.
(2)
Regulatory capital ratios as of December 31, 2024 are preliminary estimates and prior periods are actual.
(3)
On April 26, 2024, the Corporation announced that its wholly owned banking subsidiary, Fulton Bank, National Association ("Fulton Bank"), acquired substantially all of the assets and assumed substantially all of the deposits and certain liabilities of Republic First Bank, doing business as Republic Bank ("Republic Bank"), from the Federal Deposit Insurance Corporation (the "FDIC"), as receiver for Republic Bank (the Acquisition"), pursuant to the terms of the Purchase and Assumption Agreement - Whole Bank, All Deposits, effective as of April 26, 2024 (the "Acquisition Date"), among the FDIC, as receiver of Republic Bank, the FDIC and Fulton Bank.
(4)
Commercial loans includes real estate - commercial mortgage, commercial and industrial, leases and other loans and includes an increase in commercial construction loans of $53.4 million, reflected in real estate - construction. Consumer loans includes real estate - residential mortgage, real estate - home equity, consumer and includes an increase of $8.6 million in residential construction loans, reflected in real estate - construction.
Safe Harbor Statement
This press release may contain forward-looking statements with respect to the Corporation's financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," "projects," the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation's future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation's business or financial results.
Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, the statements are based on current beliefs, expectations and assumptions regarding the future of the Corporation's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation's control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov).
Non-GAAP Financial Measures
The Corporation uses certain financial measures in this press release that have been derived from methods other than GAAP. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this press release.
FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
(dollars in thousands, except per share and shares data)
Three months ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2024
2024
2024
2024
2023
Ending Balances
Investment securities
$ 4,806,468
$ 4,545,278
$ 4,184,027
$ 3,783,392
$ 3,666,274
Net loans
24,044,919
24,176,075
24,106,297
21,444,483
21,351,094
Total assets
32,065,059
32,185,726
31,769,813
27,642,957
27,571,915
Deposits
26,129,433
26,152,144
25,559,654
21,741,950
21,537,623
Shareholders' equity
3,197,325
3,203,943
3,101,609
2,757,679
2,760,139
Average Balances
Investment securities(1)
4,771,537
4,237,805
4,043,136
3,672,844
3,665,261
Net loans
24,068,784
24,147,801
23,345,914
21,370,033
21,255,779
Total assets
32,098,852
31,895,235
30,774,891
27,427,626
27,397,671
Deposits
26,313,378
25,778,259
24,642,954
21,378,754
21,476,548
Shareholders' equity
3,219,026
3,160,322
2,952,671
2,766,945
2,618,024
Income Statement
Net interest income
253,659
258,009
241,720
206,937
212,006
Provision for credit losses
16,725
11,929
32,056
10,925
9,808
Non-interest income
65,924
59,673
92,994
57,140
59,378
Non-interest expense
216,615
226,089
199,488
177,600
180,552
Income before taxes
86,243
79,664
103,170
75,552
81,024
Net income available to common shareholders
66,058
60,644
92,413
59,379
61,701
Per Share
Net income available to common shareholders (basic)
$0.36
$0.33
$0.53
$0.36
$0.38
Net income available to common shareholders (diluted)
$0.36
$0.33
$0.52
$0.36
$0.37
Operating net income available to common shareholders(2)
$0.48
$0.50
$0.47
$0.40
$0.42
Cash dividends
$0.18
$0.17
$0.17
$0.17
$0.17
Common shareholders' equity
$16.50
$16.55
$16.00
$15.82
$15.67
Common shareholders' equity (tangible)(2)
$13.01
$13.02
$12.43
$12.37
$12.25
Weighted average shares (basic)
182,032
181,905
175,305
162,706
163,975
Weighted average shares (diluted)
183,867
183,609
176,934
164,520
165,650
(1) Average balances include related unrealized holding gains (losses) for available for sale ("AFS") securities..
(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.
Three months ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2024
2024
2024
2024
2023
Asset Quality
Net charge-offs to average loans
0.22 %
0.18 %
0.19 %
0.16 %
0.15 %
Non-performing loans to total net loans
0.92 %
0.84 %
0.72 %
0.73 %
0.72 %
Non-performing assets to total assets
0.69 %
0.64 %
0.55 %
0.57 %
0.56 %
ACL - loans(1) to total loans
1.58 %
1.56 %
1.56 %
1.39 %
1.37 %
ACL - loans(1) to non-performing loans
172 %
186 %
218 %
191 %
191 %
Profitability
Return on average assets
0.85 %
0.79 %
1.24 %
0.91 %
0.93 %
Operating return on average assets(2)
1.14 %
1.17 %
1.11 %
1.00 %
1.03 %
Return on average common shareholders' equity
8.68 %
8.13 %
13.47 %
9.28 %
10.09 %
Operating return on average common shareholders' equity (tangible)(2)
14.83 %
15.65 %
15.56 %
13.08 %
14.68 %
Net interest margin
3.41 %
3.49 %
3.43 %
3.32 %
3.36 %
Efficiency ratio(2)
58.4 %
59.6 %
62.6 %
63.2 %
62.0 %
Non-interest expense to total average assets
2.68 %
2.82 %
2.61 %
2.60 %
2.61 %
Operating non-interest expense to total average assets(2)
2.36 %
2.45 %
2.55 %
2.49 %
2.47 %
Capital Ratios(3)
Tangible common equity ratio ("TCE")(2)
7.5 %
7.5 %
7.3 %
7.4 %
7.4 %
Tier 1 leverage ratio
9.0 %
9.0 %
9.2 %
9.3 %
9.5 %
Common equity Tier 1 capital ratio
10.6 %
10.5 %
10.3 %
10.3 %
10.3 %
Tier 1 risk-based capital ratio
11.4 %
11.3 %
11.1 %
11.1 %
11.2 %
Total risk-based capital ratio
14.1 %
14.0 %
13.8 %
14.0 %
14.0 %
(1) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet
("OBS") credit exposures.
(2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release.
(3) Regulatory capital ratios as of December 31, 2024 are preliminary estimates and prior periods are actual.
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2024
2024
2024
2024
2023
ASSETS
Cash and due from banks
$ 279,041
$ 296,500
$ 333,238
$ 247,581
$ 300,343
Other interest-earning assets
924,404
1,287,392
1,188,341
231,389
373,772
Loans held for sale
25,618
17,678
26,822
10,624
15,158
Investment securities
4,806,468
4,545,278
4,184,027
3,783,392
3,666,274
Net loans
24,044,919
24,176,075
24,106,297
21,444,483
21,351,094
Less: ACL - loans(1)
(379,156)
(375,961)
(375,941)
(297,888)
(293,404)
Loans, net
23,665,763
23,800,114
23,730,356
21,146,595
21,057,690
Net premises and equipment
195,527
171,731
180,642
213,541
222,881
Accrued interest receivable
117,029
115,903
120,752
107,089
107,972
Goodwill and intangible assets
635,458
641,739
648,026
560,114
560,687
Other assets
1,415,751
1,309,391
1,357,609
1,342,632
1,267,138
Total Assets
$ 32,065,059
$ 32,185,726
$ 31,769,813
$ 27,642,957
$ 27,571,915
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
$ 26,129,433
$ 26,152,144
$ 25,559,654
$ 21,741,950
$ 21,537,623
Borrowings
1,782,048
2,052,227
2,178,597
2,296,040
2,487,526
Other liabilities
956,253
777,412
929,953
847,288
786,627
Total Liabilities
28,867,734
28,981,783
28,668,204
24,885,278
24,811,776
Shareholders' equity
3,197,325
3,203,943
3,101,609
2,757,679
2,760,139
Total Liabilities and Shareholders' Equity
$ 32,065,059
$ 32,185,726
$ 31,769,813
$ 27,642,957
$ 27,571,915
LOANS, DEPOSITS AND BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage
$ 9,601,858
$ 9,493,479
$ 9,289,770
$ 8,252,117
$ 8,127,728
Commercial and industrial
4,605,589
4,914,734
4,967,796
4,467,589
4,545,552
Real estate - residential mortgage
6,349,643
6,302,624
6,248,856
5,395,720
5,325,923
Real estate - home equity
1,160,616
1,144,402
1,120,878
1,040,335
1,047,184
Real estate - construction
1,394,899
1,332,954
1,463,799
1,249,199
1,239,075
Consumer
616,856
651,717
692,086
698,421
729,318
Leases and other loans(2)
315,458
336,165
323,112
341,102
336,314
Total Net Loans
$ 24,044,919
$ 24,176,075
$ 24,106,297
$ 21,444,483
$ 21,351,094
Deposits, by type:
Noninterest-bearing demand
$ 5,499,760
$ 5,501,699
$ 5,609,383
$ 5,086,514
$ 5,314,094
Interest-bearing demand
7,843,604
7,779,472
7,478,077
5,521,017
5,722,695
Savings
7,792,114
7,740,595
7,563,495
6,846,038
6,616,901
Total demand and savings
21,135,478
21,021,766
20,650,955
17,453,569
17,653,690
Brokered
843,857
843,473
995,975
1,152,427
1,144,692
Time
4,150,098
4,286,905
3,912,724
3,135,954
2,739,241
Total Deposits
$ 26,129,433
$ 26,152,144
$ 25,559,654
$ 21,741,950
$ 21,537,623
Borrowings, by type:
Federal funds purchased
$ —
$ —
$ —
$ —
$ 240,000
Federal Home Loan Bank advances
850,000
950,000
750,000
900,000
1,100,000
Senior debt and subordinated debt
367,316
535,917
535,741
535,566
535,384
Other borrowings
564,732
566,310
892,856
860,474
612,142
Total Borrowings
$ 1,782,048
$ 2,052,227
$ 2,178,597
$ 2,296,040
$ 2,487,526
(1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.
(2) Includes equipment lease financing, overdraft and net origination fees and costs.
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands, except per share and share data)
Three months ended
Year ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
Dec 31
2024
2024
2024
2024
2023
2024
2023
Net Interest Income:
Interest income
$ 414,368
$ 427,656
$ 400,506
$ 339,666
$ 338,134
$ 1,582,196
$ 1,273,236
Interest expense
160,709
169,647
158,786
132,729
126,128
621,871
418,950
Net Interest Income
253,659
258,009
241,720
206,937
212,006
960,325
854,286
Provision for credit losses
16,725
11,929
32,056
10,925
9,808
71,636
54,036
Net Interest Income after Provision
236,934
246,080
209,664
196,012
202,198
888,689
800,250
Non-Interest Income:
Wealth management
22,002
21,596
20,990
20,155
19,388
84,743
75,541
Commercial banking:
Merchant and card
7,082
7,496
7,798
6,808
7,045
29,186
29,205
Cash management
7,633
7,201
6,966
6,305
6,030
28,106
23,340
Capital markets
2,797
3,311
2,585
2,341
4,258
11,033
15,654
Other commercial banking
4,942
4,281
4,061
3,375
3,447
16,657
12,961
Total commercial banking
22,454
22,289
21,410
18,829
20,780
84,982
81,160
Consumer banking:
Card
8,064
7,917
8,305
6,628
6,739
30,914
26,343
Overdraft
3,644
3,957
3,377
2,786
2,991
13,764
11,416
Other consumer banking
2,601
3,054
2,918
2,254
2,357
10,826
9,438
Total consumer banking
14,309
14,928
14,600
11,668
12,087
55,504
47,197
Mortgage banking
3,759
3,142
3,951
3,090
2,288
13,943
10,388
Gain on acquisition, net of tax
(2,689)
(7,706)
47,392
—
—
36,996
—
Other
6,089
5,425
4,933
3,398
5,587
19,846
14,125
Non-interest income before investment securities gains (losses)
65,924
59,674
113,276
57,140
60,130
296,014
228,411
Investment securities losses, net
—
(1)
(20,282)
—
(752)
(20,283)
(733)
Total Non-Interest Income
65,924
59,673
92,994
57,140
59,378
275,731
227,678
Non-Interest Expense:
Salaries and employee benefits
107,886
118,824
110,630
95,481
97,275
432,821
377,417
Data processing and software
19,550
20,314
20,357
17,661
16,985
77,882
66,471
Net occupancy
16,417
18,999
17,793
16,149
14,647
69,359
58,019
Other outside services
14,531
15,839
16,933
13,283
14,670
60,586
47,724
Intangible amortization
6,282
6,287
4,688
573
597
17,830
2,944
FDIC insurance
5,921
5,109
6,696
6,104
11,138
23,829
25,565
Equipment
4,388
4,860
4,561
4,040
3,995
17,850
14,390
Professional fees
3,387
2,811
2,571
2,088
2,302
10,857
8,392
Marketing
2,695
2,251
2,101
1,912
3,550
8,958
9,004
Acquisition-related expenses
9,637
14,195
13,803
—
—
37,635
—
Other
25,921
16,600
(645)
20,309
15,393
62,184
69,281
Total Non-Interest Expense
216,615
226,089
199,488
177,600
180,552
819,791
679,207
Income Before Income Taxes
86,243
79,664
103,170
75,552
81,024
344,629
348,721
Income tax expense
17,623
16,458
8,195
13,611
16,761
55,886
64,441
Net Income
68,620
63,206
94,975
61,941
64,263
288,743
284,280
Preferred stock dividends
(2,562)
(2,562)
(2,562)
(2,562)
(2,562)
(10,248)
(10,248)
Net Income Available to Common Shareholders
$ 66,058
$ 60,644
$ 92,413
$ 59,379
$ 61,701
$ 278,495
$ 274,032
Three months ended
Year ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
Dec 31
2024
2024
2024
2024
2023
2024
2023
PER SHARE:
Net income available to common shareholders (basic)
$0.36
$0.33
$0.53
$0.36
$0.38
$1.59
$1.66
Net income available to common shareholders (diluted)
$0.36
$0.33
$0.52
$0.36
$0.37
$1.57
$1.64
Cash dividends
$0.18
$0.17
$0.17
$0.17
$0.17
$0.69
$0.64
Weighted average shares (basic)
182,032
181,905
175,305
162,706
163,975
175,523
165,241
Weighted average shares (diluted)
183,867
183,609
176,934
164,520
165,650
177,223
166,769
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
(dollars in thousands)
Three months ended
December 31, 2024
September 30, 2024
December 31, 2023
Average
Yield/
Average
Yield/
Average
Yield/
Balance
Interest(1)
Rate
Balance
Interest(1)
Rate
Balance
Interest(1)
Rate
ASSETS
Interest-earning assets:
Net loans(2)
$ 24,068,784
$ 360,642
5.97 %
$ 24,147,801
$ 376,160
6.20 %
$ 21,255,779
$ 311,992
5.83 %
Investment securities(3)
5,033,765
44,616
3.54 %
4,526,885
37,853
3.34 %
4,120,750
27,227
2.64 %
Other interest-earning assets
1,086,536
13,453
4.93 %
1,338,592
18,068
5.37 %
267,329
3,464
5.17 %
Total Interest-Earning Assets
30,189,085
418,711
5.53 %
30,013,278
432,081
5.74 %
25,643,858
342,683
5.31 %
Noninterest-earning assets:
Cash and due from banks
288,867
306,427
282,614
Premises and equipment
183,801
181,285
219,994
Other assets
1,816,421
1,772,052
1,545,535
Less: ACL - loans(4)
(379,322)
(377,807)
(294,330)
Total Assets
$ 32,098,852
$ 31,895,235
$ 27,397,671
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits
$ 7,838,590
$ 37,952
1.93 %
$ 7,668,583
$ 38,768
2.01 %
$ 5,723,169
$ 20,737
1.44 %
Savings deposits
7,806,303
47,280
2.41 %
7,663,599
49,477
2.57 %
6,682,512
38,239
2.27 %
Brokered deposits
877,526
10,619
4.81 %
842,661
11,344
5.36 %
1,051,369
14,078
5.31 %
Time deposits
4,232,849
46,023
4.33 %
4,107,466
45,735
4.43 %
2,579,400
23,575
3.63 %
Total Interest-Bearing Deposits
20,755,268
141,874
2.72 %
20,282,309
145,324
2.85 %
16,036,450
96,629
2.39 %
Borrowings and other interest-bearing liabilities
1,847,431
18,835
4.06 %
2,229,348
24,324
4.34 %
2,541,727
29,499
4.58 %
Total Interest-Bearing Liabilities
22,602,699
160,709
2.83 %
22,511,657
169,648
3.00 %
18,578,177
126,128
2.69 %
Noninterest-bearing liabilities:
Demand deposits
5,558,110
5,495,950
5,440,098
Other liabilities
719,017
727,306
761,372
Total Liabilities
28,879,826
28,734,913
24,779,647
Shareholders' equity
3,219,026
3,160,322
2,618,024
Total Liabilities and Shareholders' Equity
$ 32,098,852
$ 31,895,235
$ 27,397,671
Net interest income/net interest margin (fully taxable equivalent)
258,002
3.41 %
262,433
3.49 %
216,555
3.36 %
Tax equivalent adjustment
(4,343)
(4,424)
(4,549)
Net Interest Income
$ 253,659
$ 258,009
$ 212,006
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
(2) Average balances include non-performing loans.
(3) Average balances include amortized historical cost for available for sale ("AFS") securities; the related unrealized holding gains (losses) are included in other assets.
(4) ACL - loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities.
FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED)
(dollars in thousands)
Three months ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2024
2024
2024
2024
2023
Loans, by type:
Real estate - commercial mortgage
$ 9,595,996
$ 9,318,273
$ 8,958,139
$ 8,166,018
$ 8,090,627
Commercial and industrial
4,730,101
4,998,051
4,853,583
4,517,179
4,579,441
Real estate - residential mortgage
6,319,205
6,268,922
5,977,132
5,353,905
5,303,632
Real estate - home equity
1,116,665
1,122,313
1,117,367
1,039,321
1,043,753
Real estate - construction
1,312,245
1,437,907
1,430,057
1,240,640
1,153,601
Consumer
665,261
682,602
685,183
721,523
746,011
Leases and other loans(1)
329,311
319,733
324,453
331,447
338,714
Total Net Loans
$ 24,068,784
$ 24,147,801
$ 23,345,914
$ 21,370,033
$ 21,255,779
Deposits, by type:
Noninterest-bearing demand
$ 5,558,110
$ 5,495,950
$ 5,460,025
$ 5,061,075
$ 5,440,098
Interest-bearing demand
7,838,590
7,668,583
7,080,302
5,596,725
5,723,169
Savings
7,806,303
7,663,599
7,309,141
6,669,228
6,682,512
Total demand and savings
21,203,003
20,828,132
19,849,468
17,327,028
17,845,779
Brokered
877,526
842,661
1,123,328
1,083,382
1,051,369
Time
4,232,849
4,107,466
3,670,158
2,968,344
2,579,400
Total Deposits
$ 26,313,378
$ 25,778,259
$ 24,642,954
$ 21,378,754
$ 21,476,548
Borrowings, by type:
Federal funds purchased
$ 54
$ —
$ 32,637
$ 173,659
$ 446,707
Federal Home Loan Bank advances
727,957
754,130
833,726
902,890
760,087
Senior debt and subordinated debt
449,795
535,831
535,656
535,479
539,186
Other borrowings and other interest-bearing liabilities
669,625
939,387
1,039,672
996,348
795,747
Total Borrowings
$ 1,847,431
$ 2,229,348
$ 2,441,691
$ 2,608,376
$ 2,541,727
(1) Includes equipment lease financing, overdraft and net origination fees and costs.
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
(dollars in thousands)
Year ended December 31
2024
2023
Average
Yield/
Average
Yield/
Balance
Interest(1)
Rate
Balance
Interest(1)
Rate
ASSETS
Interest-earning assets:
Net loans(2)
$ 23,145,114
$ 1,406,216
6.08 %
$ 20,929,302
$ 1,166,376
5.57 %
Investment securities(3)
4,486,726
143,317
3.19 %
4,210,010
109,325
2.59 %
Other interest-earning assets
962,971
50,578
5.25 %
387,360
15,346
3.96 %
Total Interest-Earning Assets
28,594,811
1,600,111
5.60 %
25,526,672
1,291,047
5.06 %
Noninterest-Earning assets:
Cash and due from banks
295,156
215,649
Premises and equipment
197,823
219,315
Other assets
1,761,083
1,553,284
Less: ACL - loans(4)
(375,743)
(285,216)
Total Assets
$ 30,473,130
$ 27,229,704
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-Bearing liabilities:
Demand deposits
$ 7,049,915
$ 128,969
1.83 %
$ 5,582,930
$ 62,494
1.12 %
Savings deposits
7,364,106
180,455
2.45 %
6,616,087
122,340
1.85 %
Brokered deposits
981,060
51,691
5.27 %
847,795
43,635
5.15 %
Time deposits
3,747,029
160,744
4.29 %
2,170,245
63,735
2.94 %
Total Interest-Bearing Deposits
19,142,110
521,859
2.73 %
15,217,057
292,204
1.92 %
Borrowings and other interest-bearing liabilities
2,280,382
100,012
4.39 %
2,771,330
126,746
4.54 %
Total Interest-Bearing Liabilities
21,422,492
621,871
2.90 %
17,988,387
418,950
2.32 %
Noninterest-Bearing liabilities:
Demand deposits
5,394,518
5,939,799
Other liabilities
630,478
670,269
Total Liabilities
27,447,488
24,598,455
Shareholders' equity
3,025,642
2,631,249
Total Liabilities and Shareholders' Equity
$ 30,473,130
$ 27,229,704
Net interest income/net interest margin (fully taxable equivalent)
978,240
3.42 %
872,097
3.42 %
Tax equivalent adjustment
(17,915)
(17,811)
Net Interest Income
$ 960,325
$ 854,286
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
(2) Average balances include non-performing loans.
(3) Average balances include amortized historical cost for AFS; the related unrealized holding gains (losses) are included in other assets.
(4) ACL - loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities.
FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED)
(dollars in thousands)
Year ended December 31
2024
2023
Loans, by type:
Real estate - commercial mortgage
$ 9,052,738
$ 7,876,076
Commercial and industrial
4,779,254
4,596,742
Real estate - residential mortgage
5,925,708
5,079,739
Real estate - home equity
1,060,520
1,060,396
Real estate - construction
1,275,562
1,247,336
Consumer
725,308
748,089
Leases and other loans(1)
326,024
320,924
Total Net Loans
$ 23,145,114
$ 20,929,302
Deposits, by type:
Noninterest-bearing demand
$ 5,394,518
$ 5,939,799
Interest-bearing demand
7,049,915
5,582,930
Savings
7,364,106
6,616,087
Total demand and savings
19,808,539
18,138,816
Brokered
981,060
847,795
Time
3,747,029
2,170,245
Total Deposits
$ 24,536,628
$ 21,156,856
Borrowings, by type:
Federal funds purchased
$ 51,306
$ 566,379
Federal Home Loan Bank advances
804,328
922,164
Senior debt and subordinated debt
514,073
539,726
Other borrowings
910,675
743,061
Total Borrowings
$ 2,280,382
$ 2,771,330
(1) Includes equipment lease financing, overdraft and net origination fees and costs.
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
(dollars in thousands)
Three months ended
Year ended December 31
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
Dec 31
Dec 31
2024
2024
2024
2024
2023
2024
2023
Allowance for credit losses related to net loans:
Balance at beginning of period
$ 375,961
$ 375,941
$ 297,888
$ 293,404
$ 292,739
$ 293,404
$ 269,366
CECL day 1 provision expense(1)
—
—
23,444
—
—
23,444
—
Initial purchased credit deteriorated allowance for credit losses
(136)
(1,139)
55,906
—
—
54,631
—
Loans charged off:
Real estate - commercial mortgage
(2,844)
(2,723)
(7,853)
(26)
(3,547)
(13,186)
(17,999)
Commercial and industrial
(9,480)
(6,256)
(2,955)
(7,632)
(3,397)
(26,585)
(9,246)
Real estate - residential mortgage
(55)
(1,131)
(35)
(251)
—
(1,472)
(62)
Consumer and home equity
(2,179)
(2,308)
(1,766)
(2,238)
(2,192)
(8,490)
(7,514)
Real estate - construction
—
—
—
—
—
—
—
Leases and other loans(2)
(1,768)
(726)
(1,398)
(805)
(1,096)
(4,696)
(4,380)
Total loans charged off
(16,326)
(13,144)
(14,007)
(10,952)
(10,232)
(54,429)
(39,201)
Recoveries of loans previously charged off:
Real estate - commercial mortgage
199
107
146
152
160
603
1,076
Commercial and industrial
1,387
1,008
796
1,248
779
4,440
3,473
Real estate - residential mortgage
104
130
122
116
278
472
421
Consumer and home equity
974
545
1,161
676
555
3,357
3,198
Real estate - construction
47
103
233
—
87
382
858
Leases and other loans(2)
194
129
247
162
374
730
1,103
Recoveries of loans previously charged off
2,905
2,022
2,705
2,354
2,233
9,984
10,129
Net loans charged off
(13,421)
(11,122)
(11,302)
(8,598)
(7,999)
(44,445)
(29,072)
Provision for credit losses(1)
16,752
12,281
10,005
13,082
8,664
52,122
53,110
Balance at end of period
$ 379,156
$ 375,961
$ 375,941
$ 297,888
$ 293,404
$ 379,156
$ 293,404
Net charge-offs to average loans(3)
0.22 %
0.18 %
0.19 %
0.16 %
0.15 %
0.19 %
0.14 %
Provision for credit losses related to OBS Credit Exposures
Provision for credit losses(1)
$ (27)
$ (352)
$ (1,393)
$ (2,157)
$ 1,144
$ (3,930)
$ 926
NON-PERFORMING ASSETS:
Non-accrual loans
$ 189,293
$ 175,861
$ 145,630
$ 129,628
$ 121,620
Loans 90 days past due and accruing
30,781
26,286
26,962
26,521
31,721
Total non-performing loans
220,074
202,147
172,592
156,149
153,341
Other real estate owned
2,621
2,844
1,444
277
896
Total non-performing assets
$ 222,695
$ 204,991
$ 174,036
$ 156,426
$ 154,237
NON-PERFORMING LOANS, BY TYPE:
Commercial and industrial
$ 43,677
$ 64,450
$ 58,433
$ 44,118
$ 41,020
Real estate - commercial mortgage
102,359
71,467
48,615
47,891
46,527
Real estate - residential mortgage
45,901
41,727
41,033
40,685
42,029
Consumer and home equity
14,374
12,830
11,886
10,172
10,878
Leases and other loans(2)
12,017
9,927
9,993
10,135
10,011
Real estate - construction
1,746
1,746
2,632
3,148
2,876
Total non-performing loans
$ 220,074
$ 202,147
$ 172,592
$ 156,149
$ 153,341
(1) The sum of these amounts are reflected in the provision for credit losses in the Condensed Consolidated Statements of Income.
(2) Includes equipment lease financing, overdraft and net origination fees and costs.
(3) Quarterly results are annualized.
FULTON FINANCIAL CORPORATION
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
(dollars in thousands, except per share and share data)
Explanatory note:
This press release contains supplemental financial information, as detailed below, that has been derived by methods other than GAAP. The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:
Three months ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2024
2024
2024
2024
2023
Operating net income available to common shareholders
Net income available to common shareholders
$ 66,058
$ 60,644
$ 92,413
$ 59,379
$ 61,701
Less: Other revenue
(269)
(677)
(708)
(151)
(1,102)
Plus: Gain on acquisition, net of tax
2,689
7,706
(47,392)
—
—
Plus: Loss on securities restructuring
—
—
20,282
—
—
Plus: Core deposit intangible amortization
6,155
6,155
4,556
441
441
Plus: Acquisition-related expense
9,637
14,195
13,803
—
—
Plus: CECL day 1 provision expense
—
—
23,444
—
—
Less: Gain on sale-leaseback
—
—
(20,266)
—
—
Plus: FDIC special assessment
—
(16)
—
956
6,494
Plus: FultonFirst implementation and asset disposals
10,001
9,385
6,323
6,329
3,197
Less: Tax impact of adjustments
(5,360)
(6,099)
(9,961)
(1,591)
(1,896)
Operating net income available to common shareholders (numerator)
$ 88,911
$ 91,293
$ 82,494
$ 65,363
$ 68,835
Weighted average shares (diluted) (denominator)
183,867
183,609
176,934
164,520
165,650
Operating net income available to common shareholders, per share (diluted)
$ 0.48
$ 0.50
$ 0.47
$ 0.40
$ 0.42
Common shareholders' equity (tangible), per share
Shareholders' equity
$ 3,197,325
$ 3,203,943
$ 3,101,609
$ 2,757,679
$ 2,760,139
Less: Preferred stock
(192,878)
(192,878)
(192,878)
(192,878)
(192,878)
Less: Goodwill and intangible assets
(635,458)
(641,739)
(648,026)
(560,114)
(560,687)
Tangible common shareholders' equity (numerator)
$ 2,368,989
$ 2,369,326
$ 2,260,705
$ 2,004,687
$ 2,006,574
Shares outstanding, end of period (denominator)
182,089
181,957
181,831
162,087
163,801
Common shareholders' equity (tangible), per share
$ 13.01
$ 13.02
$ 12.43
$ 12.37
$ 12.25
(1) Results are annualized.
Three months ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2024
2024
2024
2024
2023
Operating return on average assets(1)
Net income
$ 68,620
$ 63,206
$ 94,975
$ 61,941
$ 64,263
Less: Other revenue
(269)
(677)
(708)
(151)
(1,102)
Less: Gain on acquisition, net of tax
2,689
7,706
(47,392)
—
—
Plus: Loss on securities restructuring
—
—
20,282
—
—
Plus: Core deposit intangible amortization
6,155
6,155
4,556
441
441
Plus: Acquisition-related expense
9,637
14,195
13,803
—
—
Plus: CECL day 1 provision expense
—
—
23,444
—
—
Less: Gain on sale-leaseback
—
—
(20,266)
—
—
Plus: FDIC special assessment
—
(16)
—
956
6,494
Plus: FultonFirst implementation and asset disposals
10,001
9,385
6,323
6,329
3,197
Less: Tax impact of adjustments
(5,360)
(6,099)
(9,961)
(1,591)
(1,896)
Operating net income (numerator)
$ 91,473
$ 93,855
$ 85,056
$ 67,925
$ 71,397
Total average assets
$ 32,098,852
$ 31,895,235
$ 30,774,891
$ 27,427,626
$ 27,397,671
Less: Average net core deposit intangible
(83,173)
(89,350)
(68,234)
(4,666)
(5,106)
Total operating average assets (denominator)
$ 32,015,679
$ 31,805,885
$ 30,706,657
$ 27,422,960
$ 27,392,565
Operating return on average assets
1.14 %
1.17 %
1.11 %
1.00 %
1.03 %
Operating return on average common shareholders' equity (tangible)(1)
Net income available to common shareholders
$ 66,058
$ 60,644
$ 92,413
$ 59,379
$ 61,701
Less: Other revenue
(269)
(677)
(708)
(151)
(1,102)
Less: Gain on acquisition, net of tax
2,689
7,706
(47,392)
—
—
Plus: Loss on securities restructuring
—
—
20,282
—
—
Plus: Intangible amortization
6,282
6,287
4,688
573
597
Plus: Acquisition-related expense
9,637
14,195
13,803
—
—
Plus: CECL day 1 provision expense
—
—
23,444
—
—
Less: Gain on sale-leaseback
—
—
(20,266)
—
—
Plus: FDIC special assessment
—
(16)
—
956
6,494
Plus: FultonFirst implementation and asset disposals
10,001
9,385
6,323
6,329
3,197
Less: Tax impact of adjustments
(5,387)
(6,127)
(9,989)
(1,618)
(1,929)
Adjusted net income available to common shareholders (numerator)
$ 89,011
$ 91,397
$ 82,598
$ 65,468
$ 68,958
Average shareholders' equity
$ 3,219,026
$ 3,160,322
$ 2,952,671
$ 2,766,945
$ 2,618,024
Less: Average preferred stock
(192,878)
(192,878)
(192,878)
(192,878)
(192,878)
Less: Average goodwill and intangible assets
(638,507)
(644,814)
(624,471)
(560,393)
(560,977)
Average tangible common shareholders' equity (denominator)
$ 2,387,641
$ 2,322,630
$ 2,135,322
$ 2,013,674
$ 1,864,169
Operating return on average common shareholders' equity (tangible)
14.83 %
15.65 %
15.56 %
13.08 %
14.68 %
(1) Results are annualized.
Three months ended
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
2024
2024
2024
2024
2023
Tangible common equity to tangible assets (TCE Ratio)
Shareholders' equity
$ 3,197,325
$ 3,203,943
$ 3,101,609
$ 2,757,679
$ 2,760,139
Less: Preferred stock
(192,878)
(192,878)
(192,878)
(192,878)
(192,878)
Less: Goodwill and intangible assets
(635,458)
(641,739)
(648,026)
(560,114)
(560,687)
Tangible common shareholders' equity (numerator)
$ 2,368,989
$ 2,369,326
$ 2,260,705
$ 2,004,687
$ 2,006,574
Total assets
$ 32,065,059
$ 32,185,726
$ 31,769,813
$ 27,642,957
$ 27,571,915
Less: Goodwill and intangible assets
(635,458)
(641,739)
(648,026)
(560,114)
(560,687)
Total tangible assets (denominator)
$ 31,429,601
$ 31,543,987
$ 31,121,787
$ 27,082,843
$ 27,011,228
Tangible common equity to tangible assets
7.54 %
7.51 %
7.26 %
7.40 %
7.43 %
Efficiency ratio
Non-interest expense
$ 216,615
$ 226,089
$ 199,488
$ 177,600
$ 180,552
Less: Acquisition-related expense
(9,637)
(14,195)
(13,803)
—
—
Plus: Gain on sale-leaseback
—
—
20,266
—
—
Less: FDIC special assessment
—
16
—
(956)
(6,494)
Less: FultonFirst implementation and asset disposals
(10,001)
(9,385)
(6,323)
(6,329)
(3,197)
Less: Intangible amortization
(6,282)
(6,287)
(4,688)
(573)
(597)
Less: Debt extinguishment
—
—
—
—
720
Operating non-interest expense (numerator)
$ 190,695
$ 196,238
$ 194,940
$ 169,742
$ 170,984
Net interest income
$ 253,659
$ 258,009
$ 241,720
$ 206,937
$ 212,006
Tax equivalent adjustment
4,343
4,424
4,556
4,592
4,549
Plus: Total non-interest income
65,924
59,673
92,994
57,140
59,378
Less: Other revenue
(269)
(677)
(708)
(151)
(1,102)
Less: Gain on acquisition, net of tax
2,689
7,706
(47,392)
—
—
Plus: Investment securities (gains) losses, net
—
1
20,282
—
752
Total revenue (denominator)
$ 326,346
$ 329,136
$ 311,452
$ 268,518
$ 275,583
Efficiency ratio
58.43 %
59.62 %
62.59 %
63.21 %
62.04 %
Operating non-interest expense to total average assets
Non-interest expense
$ 216,615
$ 226,089
$ 199,488
$ 177,600
$ 180,552
Less: Intangible amortization
(6,282)
(6,287)
(4,688)
(573)
(597)
Less: Acquisition-related expense
(9,637)
(14,195)
(13,803)
—
—
Plus: Gain on sale-leaseback
—
—
20,266
—
—
Less: FDIC special assessment
—
16
—
(956)
(6,494)
Less: FultonFirst implementation and asset disposals
(10,001)
(9,385)
(6,323)
(6,329)
(3,197)
Operating non-interest expense (numerator)
$ 190,695
$ 196,238
$ 194,940
$ 169,742
$ 170,264
Total average assets (denominator)
$ 32,098,852
$ 31,895,235
$ 30,774,891
$ 27,427,626
$ 27,397,671
Operating non-interest expenses to total average assets
2.36 %
2.45 %
2.55 %
2.49 %
2.47 %
(1) Results are annualized.
Year Ended
Dec 31
Dec 31
2024
2023
Operating net income available to common shareholders
Net income available to common shareholders
$ 278,495
$ 274,032
Less: Other revenue
(1,805)
1,855
Plus: Gain on acquisition, net of tax
(36,996)
—
Plus: Loss on securities restructuring
20,282
—
Plus: Core deposit intangible amortization
17,307
2,308
Plus: Acquisition-related expense
37,635
—
Plus: CECL day 1 provision expense
23,444
—
Less: Gain on sale-leaseback
(20,266)
—
Plus: FDIC special assessment
940
6,494
Plus: FultonFirst implementation and asset disposals
32,038
3,197
Less: Tax impact of adjustments
(23,011)
(2,909)
Operating net income available to common shareholders (numerator)
$ 328,063
$ 284,977
Weighted average shares (diluted) (denominator)
177,223
166,769
Operating net income available to common shareholders, per share (diluted)
$ 1.85
$ 1.71
Note: numbers in this report may not sum due to rounding.
Media Contact: Lacey Dean (717) 735-8688Investor Contact: Matt Jozwiak (717) 327-2657
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SOURCE Fulton Financial Corporation