Fulton Financial Corporation Announces Second Quarter 2024 Results

Rhea-AI Summary

Fulton Financial (NASDAQ: FULT) reported Q2 2024 net income of $92.4 million, or $0.52 per diluted share, a $33.0 million increase from Q1. The quarter was significantly impacted by the acquisition of Republic Bank, contributing to a $47.4 million gain (net of tax). Key financial highlights include:

- Net interest income increased by $34.8 million to $241.7 million
- Non-interest income rose to $113.3 million, up from $57.1 million in Q1
- Net loans grew to $24.1 billion, a $2.7 billion increase
- Deposits increased by $3.8 billion to $25.6 billion
- Provision for credit losses was $32.1 million, up from $10.9 million in Q1

The company also completed a $273.0 million common stock offering and a sale-leaseback transaction resulting in a $20.3 million pre-tax gain.

Positive

• Net income increased by $33.0 million to $92.4 million in Q2 2024
• Acquisition of Republic Bank contributed a $47.4 million gain (net of tax)
• Net interest income grew by $34.8 million to $241.7 million
• Non-interest income increased significantly from $57.1 million to $113.3 million
• Net loans expanded by $2.7 billion to $24.1 billion
• Deposits rose by $3.8 billion to $25.6 billion
• Completed a $273.0 million common stock offering
• Realized a $20.3 million pre-tax gain from a sale-leaseback transaction

Negative

• Provision for credit losses increased from $10.9 million to $32.1 million
• Non-performing assets rose to $163.8 million, or 0.52% of total assets
• Net charge-offs increased to 0.19% of total average loans, up from 0.16% in Q1
• Incurred $13.8 million in acquisition-related expenses
• Realized a $20.3 million pre-tax loss on the sale of investment securities

Insights

Financial Analyst

The second quarter results for Fulton Financial Corporation reveal several important financial metrics. Net income available to shareholders saw a significant increase to $92.4 million from $33.0 million in the first quarter. This growth reflects positively on the company's operational efficiency and might indicate strong momentum moving forward. The acquisition of Republic First Bank was a notable event, bringing in $4.8 billion in assets and $4.1 billion in deposits, contributing significantly to the increase in net loans to $24.1 billion. Additionally, the issuance of approximately 19 million shares at $15.00 per share resulted in proceeds of $273.0 million, strengthening the company's capital base. However, the increase in provision for credit losses to $32.1 million from $10.9 million in the previous quarter warrants attention, especially for potential loan defaults from the acquired non-performing assets. Furthermore, non-interest income saw a substantial rise due to a $47.4 million gain on acquisition and other operational improvements. Investors should also note the $20.3 million pre-tax gain from a sale-leaseback transaction, which may not be recurrent. On the whole, Fulton's financial performance this quarter is robust, yet it is essential to scrutinize the sustainability of these gains and the integration of acquired assets.

Market Research Analyst

From a market perspective, the acquisition of Republic First Bank is a strategic move that enhances Fulton's footprint and operational scale. The addition of $4.1 billion in deposits and $2.5 billion in loans provides significant liquidity and potential for new business opportunities. Such acquisitions usually indicate aggressive growth strategies which can yield long-term benefits. However, there's a need to closely monitor how well Fulton integrates these assets and manages any inherited risks, particularly given the increase in provision for credit losses from acquired non-performing assets. Furthermore, the bank's ability to convert the newly acquired deposits into profitable loans and investments will be crucial. The reinvestment of proceeds from sold investments into higher-yielding securities is promising and may enhance future revenue streams. The market should keep an eye on Fulton's adaptive strategies in a competitive banking environment and its operational integration post-acquisition. Overall, this acquisition and the quarterly results position Fulton for future growth, but execution risk remains a key factor to watch.

Credit Risk Analyst

The quarter's increased provision for credit losses, which rose to $32.1 million primarily due to non-purchased credit deteriorated loans from the Republic acquisition, signals cautionary red flags regarding credit quality. The increase in non-performing assets to $163.8 million, up from $156.4 million in the previous quarter, underlines potential risks in loan performance. Moreover, the net charge-offs ratio has increased slightly, indicating some deterioration in the loan portfolio's quality. The allowance for credit losses attributable to net loans now stands at 1.56% of total loans, reflecting an adequate buffer for expected loan losses, but any further economic downturn could exacerbate loan defaults. For investors, the key takeaway is the careful balance between growth and credit risk management. The absorption of Republic Bank's assets should be carefully watched to ensure that Fulton maintains credit discipline and limits exposure to high-risk loans.

LANCASTER, Pa., July 16, 2024 /PRNewswire/ -- Fulton Financial Corporation (NASDAQ: FULT) ("Fulton" or the "Corporation") reported net income available to common shareholders of $92.4 million, or $0.52 per diluted share, for the second quarter of 2024, an increase of $33.0 million, or $0.16 per share, in comparison to the first quarter of 2024. Operating net income available to common shareholders for the three months ended June 30, 2024 was $82.5 million, or $0.47 per diluted share⁽¹⁾, an increase of $17.1 million, or $0.07 per share in comparison to the first quarter of 2024.

"The second quarter was an extraordinary quarter for Fulton. I want to personally thank both our new Republic teammates and our dedicated Fulton team for an exceptional effort," said Curtis J. Myers Chairman and CEO of Fulton Financial Corporation. "Fulton's solid performance, steady business trends and stable asset quality were supplemented by a meaningful contribution from the Republic transaction."

Republic Transaction

• 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.
  
  
• The Acquisition included total assets with preliminary fair values of approximately $4.8 billion including total loans with preliminary fair values of approximately $2.5 billion and investments with a fair value of $1.9 billion. Following the Acquisition, the Corporation sold the acquired investments with a portion of the proceeds used to repay $1.4 billion of assumed borrowings. In the Acquisition, the Corporation assumed $4.1 billion of deposits without a premium. Additionally, the Corporation received $809.9 million in cash from the FDIC and $208.5 million in cash reflected on Republic Bank's balance sheet.

(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.

Financial Highlights

Second quarter of 2024 results were impacted by the following items:

• Preliminary gain on acquisition of $47.4 million (net of tax).
  
  
• Core deposit intangible of $92.6 million in connection with the Acquisition resulting in intangible amortization expense of $4.1 million for the quarter.
  
  
• Provision for credit losses of $23.4 million related to non-purchased credit deteriorated loans acquired in the Acquisition.
  
  
• Acquisition-related expenses of $13.8 million.
  
  
• Pre-tax gain of $20.3 million in connection with a sale-leaseback transaction (the "Sale-Leaseback Transaction") involving 40 Fulton Bank financial center office locations.
  
  
• Restructured a portion of the available-for-sale investment portfolio and realized a pre-tax loss of $20.3 million on the sale of $356.4 million of investment securities with the proceeds reinvested in higher-yielding securities of a similar type and similar duration.
  
  
• FultonFirst implementation and asset disposal costs of $6.3 million.
  
  
• Issued 19,166,667 shares of common stock at $15.00 per share resulting in proceeds of approximately $273.0 million net of issuance costs.

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

• Net interest income totaled $241.7 million, an increase of $34.8 million. The Acquisition contributed approximately $30.7 million to the increase.
  
  
• Net interest margin was 3.43%, an increase of 11 basis points, entirely due to the Acquisition.
  
  
• Non-interest income before investment securities gains (losses) was $113.3 million compared to $57.1 million in the first quarter of 2024. The increase was primarily due to a $47.4 million gain on acquisition (net of tax) as well as $2.8 million from Republic Bank's operations. The remaining $6.1 million increase in non-interest income included a $1.3 million decrease in losses from equity method investments, a $0.9 million increase in merchant fee income due to seasonality and a merchant fee increase during the quarter, a $0.9 million increase in mortgage banking income from higher loan volumes and higher spreads, an $0.8 million increase in wealth management revenues due to an increase in assets under management in the brokerage business due to equity market returns and organic sales results, a $0.6 million increase in cash management fee income due to an increase in account analysis fees with customers electing to move funds to interest-bearing accounts along with a pricing increase and a $0.3 million increase in gains from Small Business Administration loan sales.
  
  
• Excluding the $20.3 million gain on the Sale-Leaseback Transaction, reflected in other expense, non-interest expense was $219.8 million compared to $177.6 million in the first quarter of 2024. The increase was largely due to $13.8 million of Acquisition-related expenses and $21.1 million from Republic Bank's operations. The remaining increase of $7.3 million was primarily due to a $6.7 million increase in salaries and benefits expense as a result of an increase in variable incentive expenses, the impact of the annual merit increases and approximately $1.0 million of severance costs related to the FultonFirst initiative.

Balance Sheet Summary

• Net loans totaled $24.1 billion, an increase of $2.7 billion compared to $21.4 billion as of March 31, 2024. The increase was primarily due to the Acquisition resulting in an increase of $2.5 billion based on preliminary fair values as of the Acquisition Date. The reduction in fair value on the acquired loans as of the Acquisition Date was $378.9 million, which included an adjustment for interest rates of $299.5 million, an adjustment for credit of $55.9 million on purchased credit deteriorated ("PCD") loans and an adjustment for credit of $23.4 million for non-PCD loans. Excluding the impact from the day 1 PCD credit-related adjustment of $55.9 million and purchase accounting accretion of $10.4 million, net loans acquired from Republic Bank declined approximately $33.1 million subsequent to the Acquisition Date. Excluding the Acquisition, net loans increased $123.6 million largely due to increases of $102.9 million and $63.8 million in residential mortgage loans and construction loans, respectively, partially offset by a decrease of $25.7 million in consumer loans and a $19.8 million decrease in leases and other loans.
  
  
• Deposits totaled $25.6 billion, an increase of $3.8 billion compared to $21.7 billion as of March 31, 2024. The increase was primarily due to the Acquisition resulting in an increase of $3.6 billion based on preliminary fair values as of the Acquisition Date. Deposits assumed in the Acquisition declined approximately $357.3 million subsequent to the Acquisition Date. Excluding the Acquisition, deposits increased $62.7 million largely due to increases of $180.1 million, $159.4 million and $102.8 million in interest-bearing demand deposits, time deposits and savings deposits, respectively, partially offset by decreases of $190.8 million in brokered deposits and $188.8 million in noninterest-bearing demand deposits.

Provision for Credit Losses and Asset Quality

• The provision for credit losses was $32.1 million in the second quarter of 2024 compared to $10.9 million in the first quarter of 2024. The increase was primarily related to the Acquisition, which included a provision for credit losses of $23.4 million for non-PCD loans. Excluding the Acquisition, the provision declined $2.2 million primarily due to a $1.4 million reduction in the reserve for unfunded commitments.
  
  
• Non-performing assets were $163.8 million, or 0.52% of total assets, at June 30, 2024, in comparison to $156.4 million, or 0.57% of total assets, at March 31, 2024. The dollar increase was largely due to the Acquisition.
  
  
• Net charge-offs for the second quarter of 2024 were 0.19% of total average loans in comparison to 0.16% in the first quarter of 2024.
  
  
• The allowance for credit losses attributable to net loans totaled $375.9 million, or 1.56% of total loans at June 30, 2024, an increase of $78.1 million. The Acquisition resulted in a $79.4 million increase in the allowance for credit losses.

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, 2023, Quarterly Report on Form 10-Q for the quarter ended March 31, 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
	Jun 30		Mar 31		Dec  31		Sep 30		June 30
	2024		2024		2023		2023		2023
Ending Balances
Investment securities	$   4,184,027		$    3,783,392		$   3,666,274		$   3,698,601		$   3,867,334
Net loans	24,106,297		21,444,483		21,351,094		21,177,508		21,044,685
Total assets	31,769,813		27,642,957		27,571,915		27,375,177		27,403,163
Deposits	25,559,654		21,741,950		21,537,623		21,421,589		21,206,540
Shareholders' equity	3,101,609		2,757,679		2,760,139		2,566,693		2,642,152
Average Balances
Investment securities	4,043,136		3,672,844		3,665,261		3,834,824		3,916,130
Net loans	23,345,914		21,370,033		21,255,779		21,121,277		20,866,235
Total assets	30,774,891		27,427,626		27,397,671		27,377,836		27,235,567
Deposits	24,642,954		21,378,754		21,476,548		21,357,295		21,207,143
Shareholders' equity	2,952,671		2,766,945		2,618,024		2,645,977		2,647,464
Income Statement
Net interest income	241,720		206,937		212,006		213,842		212,852
Provision for credit losses	32,056		10,925		9,808		9,937		9,747
Non-interest income	92,994		57,140		59,378		55,961		60,585
Non-interest expense	199,488		177,600		180,552		171,020		168,018
Income before taxes	103,170		75,552		81,024		88,846		95,672
Net income available to common shareholders	92,413		59,379		61,701		69,535		77,045
Per Share
Net income available to common shareholders (basic)	$0.53		$0.36		$0.38		$0.42		$0.46
Net income available to common shareholders (diluted)	$0.52		$0.36		$0.37		$0.42		$0.46
Operating net income available to common shareholders(1)	$0.47		$0.40		$0.42		$0.43		$0.47
Cash dividends	$0.17		$0.17		$0.17		$0.16		$0.16
Common shareholders' equity	$16.00		$15.82		$15.67		$14.47		$14.75
Common shareholders' equity (tangible)(1)	$12.43		$12.37		$12.25		$11.05		$11.36
Weighted average shares (basic)	175,305		162,706		163,975		164,566		165,854
Weighted average shares (diluted)	176,934		164,520		165,650		166,023		167,191
(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
	Jun 30		Mar 31		Dec  31		Sep 30		June 30
	2024		2024		2023		2023		2023
Asset Quality
Net charge-offs to average loans	0.19 %		0.16 %		0.15 %		0.10 %		0.04 %
Non-performing loans to total net loans	0.67 %		0.73 %		0.72 %		0.67 %		0.70 %
Non-performing assets to total assets	0.52 %		0.57 %		0.56 %		0.52 %		0.55 %
ACL - loans(1) to total loans	1.56 %		1.39 %		1.37 %		1.38 %		1.37 %
ACL - loans(1) to non-performing loans	232 %		191 %		191 %		208 %		195 %
Profitability
Return on average assets	1.24 %		0.91 %		0.93 %		1.04 %		1.17 %
Operating return on average assets(2)	1.11 %		1.00 %		1.03 %		1.08 %		1.18 %
Return on average common shareholders' equity	13.47 %		9.28 %		10.09 %		11.25 %		12.59 %
Operating return on average common shareholders' equity (tangible)(2)	15.56 %		13.08 %		14.68 %		15.17 %		16.52 %
Net interest margin	3.43 %		3.32 %		3.36 %		3.40 %		3.40 %
Efficiency ratio(2)	62.6 %		63.2 %		62.0 %		61.5 %		60.1 %
Non-interest expense to total average assets	2.61 %		2.60 %		2.61 %		2.48 %		2.47 %
Operating non-interest expense to total average assets(2)	2.55 %		2.49 %		2.47 %		2.47 %		2.46 %
Capital Ratios(3)
Tangible common equity ratio ("TCE")(2)	7.3 %		7.4 %		7.4 %		6.8 %		7.0 %
Tier 1 leverage ratio	9.0 %		9.3 %		9.5 %		9.4 %		9.3 %
Common equity Tier 1 capital ratio	10.3 %		10.3 %		10.3 %		10.3 %		10.1 %
Tier 1 risk-based capital ratio	11.1 %		11.1 %		11.2 %		11.1 %		11.0 %
Total risk-based capital ratio	13.8 %		14.0 %		14.0 %		14.0 %		13.8 %
(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 June 30, 2024 are preliminary estimates and prior periods are actual.

 

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
		Jun 30		Mar 31		Dec  31		Sep 30		Jun 30
		2024		2024		2023		2023		2023
ASSETS
	Cash and due from banks	$     333,238		$     247,581		$     300,343		$     304,042		$     123,779
	Other interest-earning assets	1,188,341		231,389		373,772		222,781		505,141
	Loans held for sale	26,822		10,624		15,158		20,368		14,673
	Investment securities	4,184,027		3,783,392		3,666,274		3,698,601		3,867,334
	Net loans	24,106,297		21,444,483		21,351,094		21,177,508		21,044,685
	Less: ACL - loans(1)	(375,941)		(297,888)		(293,404)		(292,739)		(287,442)
	Loans, net	23,730,356		21,146,595		21,057,690		20,884,769		20,757,243
	Net premises and equipment	180,642		213,541		222,881		215,626		216,322
	Accrued interest receivable	120,752		107,089		107,972		101,624		96,991
	Goodwill and intangible assets	648,026		560,114		560,687		561,284		561,885
	Other assets	1,357,609		1,342,632		1,267,138		1,366,082		1,259,795
	Total Assets	$ 31,769,813		$ 27,642,957		$ 27,571,915		$ 27,375,177		$ 27,403,163
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits	$ 25,559,654		$ 21,741,950		$ 21,537,623		$ 21,421,589		$ 21,206,540
	Borrowings	2,178,597		2,296,040		2,487,526		2,370,112		2,719,114
	Other liabilities	929,953		847,288		786,627		1,016,783		835,357
	Total Liabilities	28,668,204		24,885,278		24,811,776		24,808,484		24,761,011
	Shareholders' equity	3,101,609		2,757,679		2,760,139		2,566,693		2,642,152
	Total Liabilities and Shareholders' Equity	$ 31,769,813		$ 27,642,957		$ 27,571,915		$ 27,375,177		$ 27,403,163
LOANS, DEPOSITS AND BORROWINGS DETAIL:
Loans, by type:
	Real estate - commercial mortgage	$  9,289,770		$  8,252,117		$  8,127,728		$  8,106,300		$  7,846,861
	Commercial and industrial	4,967,796		4,467,589		4,545,552		4,577,334		4,599,759
	Real estate - residential mortgage	6,248,856		5,395,720		5,325,923		5,279,681		5,147,262
	Real estate - home equity	1,120,878		1,040,335		1,047,184		1,045,438		1,061,891
	Real estate - construction	1,463,799		1,249,199		1,239,075		1,078,263		1,308,564
	Consumer	692,086		698,421		729,318		743,976		763,530
	Leases and other loans(2)	323,112		341,102		336,314		346,516		316,818
	Total Net Loans	$ 24,106,297		$ 21,444,483		$ 21,351,094		$ 21,177,508		$ 21,044,685
Deposits, by type:
	Noninterest-bearing demand	$  5,609,383		$  5,086,514		$  5,314,094		$  5,575,374		$  5,865,855
	Interest-bearing demand	7,478,077		5,521,017		5,722,695		5,757,487		5,543,320
	Savings	7,563,495		6,846,038		6,616,901		6,707,729		6,646,448
	Total demand and savings	20,650,955		17,453,569		17,653,690		18,040,590		18,055,623
	Brokered	995,975		1,152,427		1,144,692		941,059		949,259
	Time	3,912,724		3,135,954		2,739,241		2,439,940		2,201,658
	Total Deposits	$ 25,559,654		$ 21,741,950		$ 21,537,623		$ 21,421,589		$ 21,206,540
Borrowings, by type:
	Federal funds purchased	$              —		$              —		$     240,000		$     544,000		$     555,000
	Federal Home Loan Bank advances	750,000		900,000		1,100,000		730,000		1,165,000
	Senior debt and subordinated debt	535,741		535,566		535,384		540,174		539,994
	Other borrowings	892,856		860,474		612,142		555,938		459,120
	Total Borrowings	$  2,178,597		$  2,296,040		$  2,487,526		$  2,370,112		$  2,719,114
(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										Six months ended
			Jun 30		Mar 31		Dec  31		Sep 30		June 30		Jun 30
			2024		2024		2023		2023		2023		2024		2023
Net Interest Income:
	Interest income		$ 400,506		$ 339,666		$ 338,134		$ 330,371		$ 314,912		$ 740,172		$ 604,732
	Interest expense		158,786		132,729		126,128		116,529		102,060		291,515		176,293
	Net Interest Income		241,720		206,937		212,006		213,842		212,852		448,657		428,439
	Provision for credit losses		32,056		10,925		9,808		9,937		9,747		42,981		34,291
	Net Interest Income after Provision		209,664		196,012		202,198		203,905		203,105		405,676		394,148
Non-Interest Income:
	Wealth management		20,990		20,155		19,388		19,413		18,678		41,144		36,740
	Commercial banking:
	Merchant and card		7,798		6,808		7,045		7,626		7,700		14,607		14,534
	Cash management		6,966		6,305		6,030		5,960		5,835		13,271		11,350
	Capital markets		2,585		2,341		4,258		2,960		6,092		4,926		8,436
	Other commercial banking		4,061		3,375		3,447		3,176		3,518		7,434		6,338
	Total commercial banking		21,410		18,829		20,780		19,722		23,145		40,238		40,658
	Consumer banking:
	Card		8,305		6,628		6,739		6,770		6,592		14,933		12,835
	Overdraft		3,377		2,786		2,991		2,996		2,696		6,163		5,429
	Other consumer banking		2,918		2,254		2,357		2,407		2,432		5,172		4,673
	Total consumer banking		14,600		11,668		12,087		12,173		11,720		26,268		22,937
	Mortgage banking		3,951		3,090		2,288		3,190		2,940		7,041		4,910
	Gain on acquisition, net of tax		47,392		—		—		—		—		47,392		—
	Other		4,933		3,398		5,587		1,463		4,106		8,332		7,075
	Non-interest income before investment securities gains (losses)		113,276		57,140		60,130		55,961		60,589		170,415		112,320
	Investment securities gains (losses), net		(20,282)		—		(752)		—		(4)		(20,282)		19
	Total Non-Interest Income		92,994		57,140		59,378		55,961		60,585		150,133		112,339
Non-Interest Expense:
	Salaries and employee benefits		110,630		95,481		97,275		96,757		94,102		206,111		183,385
	Data processing and software		20,357		17,661		16,985		16,914		16,776		38,018		32,571
	Net occupancy		17,793		16,149		14,647		14,561		14,374		33,943		28,812
	Other outside services		16,933		13,283		14,670		12,094		10,834		30,216		20,960
	FDIC insurance		6,696		6,104		11,138		4,738		4,895		12,800		9,690
	Intangible amortization		4,688		573		597		601		1,072		5,261		1,746
	Equipment		4,561		4,040		3,995		3,475		3,530		8,602		6,920
	Professional fees		2,571		2,088		2,302		1,869		1,829		4,659		4,221
	Marketing		2,101		1,912		3,550		1,913		1,655		4,012		3,541
	Acquisition-related expenses		13,803		—		—		—		—		13,803		—
	Other		(645)		20,309		15,393		18,098		18,951		19,662		35,790
	Total Non-Interest Expense		199,488		177,600		180,552		171,020		168,018		377,087		327,636
	Income Before Income Taxes		103,170		75,552		81,024		88,846		95,672		178,722		178,851
	Income tax expense		8,195		13,611		16,761		16,749		16,065		21,806		30,931
	Net Income		94,975		61,941		64,263		72,097		79,607		156,916		147,920
	Preferred stock dividends		(2,562)		(2,562)		(2,562)		(2,562)		(2,562)		(5,124)		(5,124)
	Net Income Available to Common  Shareholders		$   92,413		$   59,379		$   61,701		$   69,535		$   77,045		$ 151,792		$ 142,796
			Three months ended										Six months ended
			Jun 30		Mar 31		Dec  31		Sep 30		June 30		Jun 30
			2024		2024		2023		2023		2023		2024		2023
PER SHARE:
	Net income available to common shareholders (basic)		$0.53		$0.36		$0.38		$0.42		$0.46		$0.90		$0.86
	Net income available to common shareholders (diluted)		$0.52		$0.36		$0.37		$0.42		$0.46		$0.89		$0.85
	Cash dividends		$0.17		$0.17		$0.17		$0.16		$0.16		$0.34		$0.31
	Weighted average shares (basic)		175,305		162,706		163,975		164,566		165,854		169,006		166,227
	Weighted average shares (diluted)		176,934		164,520		165,650		166,023		167,191		170,769		167,809

 

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
(dollars in thousands)
		Three months ended
		June 30, 2024						March 31, 2024						June 30, 2023
		Average				Yield/		Average				Yield/		Average				Yield/
		Balance		Interest(1)		Rate		Balance		Interest(1)		Rate		Balance		Interest(1)		Rate
ASSETS
Interest-earning assets:
	Net loans(2)	$  23,345,914		$ 355,533		6.12 %		$  21,370,033		$ 313,882		5.90 %		$  20,866,235		$ 287,154		5.52 %
	Investment securities(3)	4,396,050		33,799		3.07 %		3,983,753		27,048		2.71 %		4,234,096		27,303		2.57 %
	Other interest-earning assets	1,125,886		15,730		5.61 %		249,079		3,328		5.36 %		529,582		4,860		3.68 %
	Total Interest-Earning Assets	28,867,850		405,062		5.64 %		25,602,865		344,258		5.40 %		25,629,913		319,317		4.99 %
Noninterest-earning assets:
	Cash and due from banks	302,381						282,895						129,682
	Premises and equipment	203,166						223,375						216,847
	Other assets	1,759,138						1,614,746						1,541,657
	Less: ACL - loans(4)	(357,644)						(296,255)						(282,532)
	Total Assets	$  30,774,891						$  27,427,626						$  27,235,567
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits	$ 7,080,302		$   31,748		1.80 %		$ 5,596,725		$   20,500		1.47 %		$ 5,535,669		$   14,612		1.06 %
	Savings deposits	7,309,141		44,901		2.47 %		6,669,228		38,797		2.34 %		6,632,572		29,289		1.77 %
	Brokered deposits	1,123,328		15,074		5.40 %		1,083,382		14,655		5.44 %		954,773		12,135		5.10 %
	Time deposits	3,670,158		39,364		4.31 %		2,968,344		29,622		4.01 %		2,063,038		13,763		2.68 %
	Total Interest-Bearing Deposits	19,182,929		131,087		2.75 %		16,317,679		103,574		2.55 %		15,186,052		69,799		1.84 %
	Borrowings and other interest-bearing liabilities	2,441,691		27,699		4.53 %		2,608,376		29,155		4.46 %		2,790,860		32,261.2		4.60 %
	Total Interest-Bearing Liabilities	21,624,620		158,786		2.95 %		18,926,055		132,729		2.82 %		17,976,912		102,060		2.27 %
Noninterest-bearing liabilities:
	Demand deposits	5,460,025						5,061,075						6,021,091
	Other liabilities	737,575						673,551						590,100
	Total Liabilities	27,822,220						24,660,681						24,588,103
	Shareholders' equity	2,952,671						2,766,945						2,647,464
	Total Liabilities and Shareholders' Equity	$  30,774,891						$  27,427,626						$  27,235,567
	Net interest income/net interest margin (fully taxable equivalent)			246,276		3.43 %				211,529		3.32 %				217,257		3.40 %
	Tax equivalent adjustment			(4,556)						(4,592)						(4,405)
	Net Interest Income			$ 241,720						$ 206,937						$ 212,852
	(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
		Jun 30		Mar 31		Dec  31		Sep 30		June 30
		2024		2023		2023		2023		2023
Loans, by type:
	Real estate - commercial mortgage	$ 8,958,139		$ 8,166,018		$ 8,090,627		$ 7,912,801		$ 7,775,436
	Commercial and industrial	4,853,583		4,517,179		4,579,441		4,611,376		4,629,919
	Real estate - residential mortgage	5,977,132		5,353,905		5,303,632		5,209,105		5,008,295
	Real estate - home equity	1,117,367		1,039,321		1,043,753		1,045,806		1,066,615
	Real estate - construction	1,430,057		1,240,640		1,153,601		1,254,577		1,306,286
	Consumer	685,183		721,523		746,011		761,273		763,407
	Leases and other loans(1)	324,453		331,447		338,714		326,339		316,277
	Total Net Loans	$  23,345,914		$  21,370,033		$  21,255,779		$  21,121,277		$  20,866,235
Deposits, by type:
	Noninterest-bearing demand	$ 5,460,025		$ 5,061,075		$ 5,440,098		$ 5,672,411		$ 6,021,091
	Interest-bearing demand	7,080,302		5,596,725		5,723,169		5,740,229		5,535,669
	Savings	7,309,141		6,669,228		6,682,512		6,676,792		6,632,572
	Total demand and savings	19,849,468		17,327,028		17,845,779		18,089,432		18,189,332
	Brokered	1,123,328		1,083,382		1,051,369		937,657		954,773
	Time	3,670,158		2,968,344		2,579,400		2,330,206		2,063,038
	Total Deposits	$  24,642,954		$  21,378,754		$  21,476,548		$  21,357,295		$  21,207,143
Borrowings, by type:
	Federal funds purchased	$      32,637		$    173,659		$    446,707		$    634,163		$    679,401
	Federal Home Loan Bank advances	833,726		902,890		760,087		793,098		880,811
	Senior debt and subordinated debt	535,656		535,479		539,186		540,086		539,906
	Other borrowings and other interest-bearing liabilities	1,039,672		996,348		795,747		723,740		690,742
	Total Borrowings	$ 2,441,691		$ 2,608,376		$ 2,541,727		$ 2,691,087		$ 2,790,860
(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)
			Six months ended June 30
			2024						2023
			Average				Yield/		Average				Yield/
			Balance		Interest(1)		Rate		Balance		Interest(1)		Rate
ASSETS
Interest-earning assets:
	Net loans(2)		$      22,357,972		$      669,414		6.02 %		$      20,665,779		$      550,219		5.36 %
	Investment securities(3)		4,189,901		60,847		2.90 %		4,261,718		54,824		2.57 %
	Other interest-earning assets		699,547		19,059		5.47 %		511,456		8,508		3.34 %
	Total Interest-Earning Assets		27,247,420		749,320		5.52 %		25,438,953		613,551		4.85 %
Noninterest-Earning assets:
	Cash and due from banks		292,638						135,436
	Premises and equipment		213,270						219,920
	Other assets		1,686,941						1,552,669
	Less: ACL - loans(4)		(326,950)						(277,942)
	Total Assets		$      29,113,319						$      27,069,036
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-Bearing liabilities:
	Demand deposits		$        6,338,513		$        52,248		1.66 %		$        5,431,696		$        23,067		0.86 %
	Savings deposits		6,989,186		83,699		2.41 %		6,551,470		49,824		1.53 %
	Brokered deposits		1,103,356		29,728		5.42 %		698,644		17,308		5.00 %
	Time deposits		3,319,249		68,986		4.18 %		1,880,970		21,221		2.28 %
	Total Interest-Bearing Deposits		17,750,304		234,661		2.66 %		14,562,780		111,420		1.54 %
	Borrowings and other interest-bearing liabilities		2,525,034		56,854		4.49 %		2,928,819		64,873		4.43 %
	Total Interest-Bearing Liabilities		20,275,338		291,515		2.89 %		17,491,599		176,293		2.03 %
Noninterest-Bearing liabilities:
	Demand deposits		5,260,550						6,329,701
	Other liabilities		717,623						617,252
	Total Liabilities		26,253,511						24,438,552
	Shareholders' equity		2,859,808						2,630,484
	Total Liabilities and Shareholders' Equity		$      29,113,319						$      27,069,036
	Net interest income/net interest margin (fully taxable equivalent)				457,805		3.37 %				437,258		3.46 %
	Tax equivalent adjustment				(9,148)						(8,819)
	Net Interest Income				$      448,657						$      428,439
	(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.
	(3) 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)
			Six months ended June 30
			2024		2023
Loans, by type:
	Real estate - commercial mortgage		$              8,562,077		$              7,748,356
	Commercial and industrial		4,685,383		4,598,097
	Real estate - residential mortgage		5,665,518		4,900,182
	Real estate - home equity		1,078,344		1,076,270
	Real estate - construction		1,335,348		1,291,299
	Consumer		703,353		742,445
	Leases and other loans(1)		327,949		309,130
	Total Net Loans		$            22,357,972		$            20,665,779
Deposits, by type:
	Noninterest-bearing demand		$              5,260,550		$              6,329,701
	Interest-bearing demand		6,338,513		5,431,696
	Savings		6,989,186		6,551,470
	Total demand and savings		18,588,249		18,312,867
	Brokered		1,103,356		698,644
	Time		3,319,249		1,880,970
	Total Deposits		$            23,010,854		$            20,892,481
Borrowings, by type:
	Federal funds purchased		$                  103,148		$                  592,753
	Federal Home Loan Bank advances		868,308		1,070,148
	Senior debt and subordinated debt		535,567		539,817
	Other borrowings		1,018,011		726,101
	Total Borrowings		$              2,525,034		$              2,928,819
(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										Six months ended June 30
		Jun 30		Mar 31		Dec  31		Sep 30		June 30		Jun 30		Jun 30
		2024		2024		2023		2023		2023		2024		2023
Allowance for credit losses related to net loans:
Balance at beginning of period		$  297,888		$  293,404		$  292,739		$  287,442		$  278,695		$  293,404		$  269,366
	CECL day 1 provision expense(1)	23,444		—		—		—		—		23,444		—
	Initial purchased credit deteriorated allowance for credit losses	55,906		—		—		—		—		55,906		—
	Loans charged off:
	Real estate - commercial mortgage	(7,853)		(26)		(3,547)		(860)		(230)		(7,879)		(13,592)
	Commercial and industrial	(2,955)		(7,632)		(3,397)		(3,220)		(2,017)		(10,587)		(2,629)
	Real estate - residential mortgage	(35)		(251)		—		—		(62)		(286)		(62)
	Consumer and home equity	(1,766)		(2,238)		(2,192)		(1,803)		(1,313)		(4,004)		(3,519)
	Real estate - construction	—		—		—		—		—		—		—
	Leases and other loans(2)	(1,398)		(805)		(1,096)		(1,396)		(1,165)		(2,203)		(1,888)
	Total loans charged off	(14,007)		(10,952)		(10,232)		(7,279)		(4,787)		(24,959)		(21,690)
Recoveries of loans previously charged off:
	Real estate - commercial mortgage	146		152		160		101		29		298		815
	Commercial and industrial	796		1,248		779		620		988		2,044		2,074
	Real estate - residential mortgage	122		116		278		37		58		238		106
	Consumer and home equity	1,161		676		555		1,023		959		1,837		1,620
	Real estate - construction	233		—		87		—		569		233		771
	Leases and other loans(2)	247		162		374		400		213		409		329
	Recoveries of loans previously charged off	2,705		2,354		2,233		2,181		2,816		5,059		5,715
Net loans charged off		(11,302)		(8,598)		(7,999)		(5,098)		(1,971)		(19,900)		(15,975)
Provision for credit losses(1)		10,005		13,082		8,664		10,395		10,718		23,087		34,051
Balance at end of period		$  375,941		$  297,888		$  293,404		$  292,739		$  287,442		$  375,941		$  287,442
Net charge-offs to average loans		0.19 %		0.16 %		0.15 %		0.10 %		0.04 %		0.18 %		0.15 %
Provision for credit losses related to OBS Credit Exposures
	Provision for credit losses(1)	$ (1,393)		$ (2,157)		$    1,144		$   (458)		$   (971)		$ (3,550)		$      240
NON-PERFORMING ASSETS:
	Non-accrual loans	$  135,367		$  129,628		$  121,620		$  113,022		$  123,280
	Loans 90 days past due and accruing	26,962		26,521		31,721		27,962		24,415
	Total non-performing loans	162,329		156,149		153,341		140,984		147,695
	Other real estate owned	1,444		277		896		2,549		3,881
	Total non-performing assets	$  163,773		$  156,426		$  154,237		$  143,533		$  151,576
NON-PERFORMING LOANS, BY TYPE:
	Commercial and industrial	$  50,817		$  44,118		$  41,020		$  33,365		$  30,588
	Real estate - commercial mortgage	46,343		47,891		46,527		44,058		55,048
	Real estate - residential mortgage	40,955		40,685		42,029		40,560		39,157
	Consumer and home equity	11,589		10,172		10,878		11,580		10,469
	Leases and other loans(2)	9,993		10,135		10,011		10,744		11,334
	Real estate - construction	2,632		3,148		2,876		677		1,099
	Total non-performing loans	$  162,329		$  156,149		$  153,341		$  140,984		$  147,695
(1) The sum of these amounts are reflected in the provision for credit losses in the Condensed Consolidated Statements of Income.
(2) Includes equipment lease financing, overdraft and net origination fees and costs.

 

FULTON FINANCIAL CORPORATION
SUMMARY OF ASSETS ACQUIRED AND LIABILITIES ASSUMED IN ACQUISITION (UNAUDITED)
(dollars in thousands)
as of April 26, 2024
		Assets Acquired/Liabilities Assumed		Fair Value Adjustments		Adjusted Assets Acquired/Liabilities Assumed
Cash payment received from FDIC		$                809,920		$                          —		$                809,920
Assets acquired:
Cash and due from banks		208,451		—		208,451
Other interest-earning assets		37,931		—		37,931
Investment securities		1,961,099		(22,528)		1,938,571
Net loans		2,883,930		(378,890)		2,505,040
Net premises and equipment		2,669		(1,699)		970
Accrued interest receivable		16,164		—		16,164
Goodwill and intangible assets		—		92,600		92,600
Other assets		11,715		67		11,782
Total Assets		$             5,121,959		$              (310,450)		$             4,811,509
Liabilities assumed:
Deposits		4,112,325		—		4,112,325
Borrowings		1,434,846		1,130		1,435,976
Other liabilities		10,771		1,088		11,859
Total Liabilities		$             5,557,942		$                    2,218		$             5,560,160
Gain on acquisition, before tax		$                  61,269
Gain on acquisition, net of tax		$                  47,392

 

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
						Jun 30		Mar 31		Dec  31		Sep 30		June 30
						2024		2024		2023		2023		2023
Operating net income available to common shareholders
Net income available to common shareholders						$        92,413		$       59,379		$       61,701		$       69,535		$       77,045
Plus: Core deposit intangible amortization						4,556		441		441		441		912
Plus: Acquisition-related expense						13,803		—		—		—		—
Less: Non-PCD credit-related interest income from acquisition						(571)		—		—		—		—
Plus: CECL day 1 provision expense						23,444		—		—		—		—
Plus: Interest rate derivative transition valuation(1)						(137)		(151)		(1,102)		2,958		—
Less: Gain on acquisition, net of tax						(47,392)		—		—		—		—
Plus: Loss on securities restructuring						20,282		—		—		—		—
Less: Gain on sale-leaseback						(20,266)		—		—		—		—
Plus: FDIC special assessment						—		956		6,494		—		—
Plus: FultonFirst implementation and asset disposals						6,323		6,329		3,197		—		—
Less: Tax impact of adjustments						(9,961)		(1,591)		(1,896)		(714)		(192)
Operating net income available to common shareholders (numerator)						$        82,494		$       65,363		$       68,835		$       72,220		$       77,765
Weighted average shares (diluted) (denominator)						176,934		164,520		165,650		166,023		167,191
Operating net income available to common shareholders, per share (diluted)						$           0.47		$          0.40		$          0.42		$          0.43		$          0.47
Common shareholders' equity (tangible), per share
Shareholders' equity						$     3,101,609		$    2,757,679		$    2,760,139		$    2,566,693		$    2,642,152
Less: Preferred stock						(192,878)		(192,878)		(192,878)		(192,878)		(192,878)
Less: Goodwill and intangible assets						(648,026)		(560,114)		(560,687)		(561,284)		(561,885)
Tangible common shareholders' equity (numerator)						$     2,260,705		$    2,004,687		$    2,006,574		$    1,812,531		$    1,887,389
Shares outstanding, end of period (denominator)						181,831		162,087		163,801		164,084		166,097
Common shareholders' equity (tangible), per share						$          12.43		$         12.37		$         12.25		$         11.05		$         11.36
(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.
(2) Results are annualized.
						Three months ended
						Jun 30		Mar 31		Dec  31		Sep 30		June 30
						2024		2024		2023		2023		2023
Operating return on average assets(2)
Net income						$        94,975		$       61,941		$       64,263		$       72,097		$       79,607
Plus: Core deposit intangible amortization						4,556		441		441		441		912
Plus: Acquisition-related expense						13,803		—		—		—		—
Less: Non-PCD credit-related interest income from acquisition						(571)		—		—		—		—
Plus: CECL day 1 provision expense						23,444		—		—		—		—
Plus: Interest rate derivative transition valuation(1)						(137)		(151)		(1,102)		2,958		—
Less: Gain on acquisition, net of tax						(47,392)		—		—		—		—
Plus: Loss on securities restructuring						20,282		—		—		—		—
Less: Gain on sale-leaseback						(20,266)		—		—		—		—
Plus: FDIC special assessment						—		956		6,494		—		—
Plus: FultonFirst implementation and asset disposals						6,323		6,329		3,197		—		—
Less: Tax impact of adjustments						(9,961)		(1,591)		(1,896)		(714)		(192)
Operating net income (numerator)						$        85,056		$       67,925		$       71,397		$       74,782		$       80,327
Total average assets						$   30,774,891		$  27,427,626		$  27,397,671		$  27,377,836		$  27,235,567
Less: Average net core deposit intangible						(68,234)		(4,666)		(5,106)		(5,548)		(6,417)
Total operating average assets  (denominator)						$   30,706,657		$  27,422,960		$  27,392,565		$  27,372,288		$  27,229,150
Operating return on average assets						1.11 %		1.00 %		1.03 %		1.08 %		1.18 %
Operating return on average common shareholders' equity (tangible)(2)
Net income available to common shareholders						$        92,413		$       59,379		$       61,701		$       69,535		$       77,045
Plus: Intangible amortization						4,688		573		597		601		1,072
Plus: Acquisition-related expense						13,803		—		—		—		—
Less: Non-PCD credit-related interest income from acquisition						(571)		—		—		—		—
Plus: CECL day 1 provision expense						23,444		—		—		—		—
Plus: Interest rate derivative transition valuation(1)						(137)		(151)		(1,102)		2,958		—
Less: Gain on acquisition, net of tax						(47,392)		—		—		—		—
Plus: Loss on securities restructuring						20,282		—		—		—		—
Less: Gain on sale-leaseback						(20,266)		—		—		—		—
Plus: FDIC special assessment						—		956		6,494		—		—
Plus: FultonFirst implementation and asset disposals						6,323		6,329		3,197		—		—
Less: Tax impact of adjustments						(9,989)		(1,618)		(1,929)		(747)		(225)
Adjusted net income available to common shareholders (numerator)						$        82,598		$       65,468		$       68,958		$       72,347		$       77,892
Average shareholders' equity						$     2,952,671		$    2,766,945		$    2,618,024		$    2,645,977		$    2,647,464
Less: Average preferred stock						(192,878)		(192,878)		(192,878)		(192,878)		(192,878)
Less: Average goodwill and intangible assets						(624,471)		(560,393)		(560,977)		(561,578)		(563,146)
Average tangible common shareholders' equity (denominator)						$     2,135,322		$    2,013,674		$    1,864,169		$    1,891,521		$    1,891,440
Operating return on average common shareholders' equity (tangible)						15.56 %		13.08 %		14.68 %		15.17 %		16.52 %
(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.
(2) Results are annualized.
						Three months ended
						Jun 30		Mar 31		Dec  31		Sep 30		June 30
						2024		2024		2023		2023		2023
Tangible common equity to tangible assets (TCE Ratio)
Shareholders' equity						$     3,101,609		$    2,757,679		$    2,760,139		$    2,566,693		$    2,642,152
Less: Preferred stock						(192,878)		(192,878)		(192,878)		(192,878)		(192,878)
Less: Goodwill and intangible assets						(648,026)		(560,114)		(560,687)		(561,284)		(561,885)
Tangible common shareholders' equity (numerator)						$     2,260,705		$    2,004,687		$    2,006,574		$    1,812,531		$    1,887,389
Total assets						$   31,769,813		$  27,642,957		$  27,571,915		$  27,375,177		$  27,403,163
Less: Goodwill and intangible assets						(648,026)		(560,114)		(560,687)		(561,284)		(561,885)
Total tangible assets (denominator)						$   31,121,787		$  27,082,843		$  27,011,228		$  26,813,893		$  26,841,278
Tangible common equity to tangible assets						7.26 %		7.40 %		7.43 %		6.76 %		7.03 %
Efficiency ratio
Non-interest expense						$      199,488		$     177,600		$     180,552		$     171,020		$     168,018
Less: Acquisition-related expense						(13,803)		—		—		—		—
Less: Gain on sale-leaseback						20,266		—		—		—		—
Less: FDIC special assessment						—		(956)		(6,494)		—		—
Less: FultonFirst implementation and asset disposals						(6,323)		(6,329)		(3,197)		—		—
Less: Intangible amortization						(4,688)		(573)		(597)		(601)		(1,072)
Less: Debt extinguishment						—		—		720		—		—
Non-interest expense (numerator)						$      194,940		$     169,742		$     170,984		$     170,419		$     166,946
Net interest income						$      241,720		$     206,937		$     212,006		$     213,842		$     212,852
Tax equivalent adjustment						4,556		4,592		4,549		4,442		4,405
Plus: Total non-interest income						92,994		57,140		59,378		55,961		60,585
Plus: Interest rate derivative transition valuation(1)						(137)		(151)		(1,102)		2,958		—
Less: Non-PCD credit-related interest income from acquisition						(571)		—		—		—		—
Less: Gain on acquisition, net of tax						(47,392)		—		—		—		—
Plus: Investment securities (gains) losses, net						20,282		—		752		—		4
Total revenue (denominator)						$      311,452		$     268,518		$     275,583		$     277,203		$     277,846
Efficiency ratio						62.6 %		63.2 %		62.0 %		61.5 %		60.1 %
Operating non-interest expense to total average assets
Non-interest expense						$      199,488		$     177,600		$     180,552		$     171,020		$     168,018
Less: Amortization of tax credit investments						—		—		—		—		—
Less: Intangible amortization						(4,688)		(573)		(597)		(601)		(1,072)
Less: Acquisition-related expense						(13,803)		—		—		—		—
Less: Gain on sale-leaseback						20,266		—		—		—		—
Less: FDIC special assessment						—		(956)		(6,494)		—		—
Less: FultonFirst implementation and asset disposals						(6,323)		(6,329)		(3,197)		—		—
Non-interest expense (numerator)						$      194,940		$     169,742		$     170,264		$     170,419		$     166,946
Total average assets (denominator)						$   30,774,891		$  27,427,626		$  27,397,671		$  27,377,836		$  27,235,567
Operating non-interest expenses to total average assets						2.55 %		2.49 %		2.47 %		2.47 %		2.46 %
(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.
(2) Results are annualized.
Note: numbers in this report may not sum due to rounding.

 

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SOURCE Fulton Financial Corporation

FAQ

What was Fulton Financial's (FULT) earnings per share in Q2 2024?

Fulton Financial (FULT) reported earnings of $0.52 per diluted share in Q2 2024, an increase of $0.16 per share compared to Q1 2024.

How did the Republic Bank acquisition impact Fulton Financial's (FULT) Q2 2024 results?

The Republic Bank acquisition significantly impacted Fulton Financial's Q2 2024 results, contributing a $47.4 million gain (net of tax), increasing net loans by $2.5 billion, and adding $3.6 billion in deposits based on preliminary fair values.

What was Fulton Financial's (FULT) net interest income in Q2 2024?

Fulton Financial's (FULT) net interest income in Q2 2024 was $241.7 million, an increase of $34.8 million compared to Q1 2024, with approximately $30.7 million of the increase attributed to the Republic Bank acquisition.

How much did Fulton Financial (FULT) raise through its common stock offering in Q2 2024?

Fulton Financial (FULT) raised approximately $273.0 million, net of issuance costs, through a common stock offering of 19,166,667 shares at $15.00 per share in Q2 2024.