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.
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“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:
— Solid net interest margin of 3.41%, with a decrease in total cost of funds of 14 basis points compared to the prior quarter.
— Non-interest expense decreased $9.5 million to $216.6 million compared to $226.1 million in the prior quarter. Operating non-interest expense decreased $5.5 million to $190.7 million(1) compared to $196.2 million in the prior quarter.
— Provision for credit losses was $16.7 million resulting in an allowance for credit losses attributable to net loans of $379.2 million, or 1.58% of total net loans at December 31, 2024.
— Average noninterest-bearing deposits increased $62.2 million compared to the prior quarter.
— Common equity tier 1 capital ratio(2) increased to approximately 10.6% compared to 10.5% in the prior quarter.
— Acquisition-related(3) expenses of $9.6 million.
— FultonFirst implementation and asset disposal costs of $10.0 million, including $8.5 million in connection with the Corporation's plan to consolidate fifteen financial centers in early 2025.
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:
— Net interest income totaled $253.7 million, a decrease of $4.4 million, which was largely due to a decline in short-term interest rates. A decrease in interest income on net loans of $15.4 million was partially offset by a decrease in interest expense on interest-bearing liabilities of $8.9 million. An increase in interest income on investment securities of $6.8 million was partially offset by a decrease in interest income on other interest-earning assets of $4.6 million. $1.1 million in fees were realized during the quarter due to early payoffs in the leasing portfolio. Purchase loan mark accretion from loans acquired in the Acquisition was $13.9 million in the fourth quarter of 2024 compared to $14.5 million in the prior quarter.
— Non-interest income before investment securities gains (losses) was $65.9 million compared to $59.7 million in the prior quarter. The increase was primarily due to a $5.0 million change in the gain on acquisition (net of tax). A $2.7 million reduction in the gain on acquisition (net of tax) was recorded in the fourth quarter of 2024.
— Non-interest expense was $216.6 million compared to $226.1 million in the prior quarter. The decrease was largely due to a $10.9 million decrease in employee salaries and benefits expense, a $4.6 million decrease in acquisition-related expense and a $2.6 million decrease in net occupancy expense, partially offset by $7.8 million of fixed asset and disposal costs in connection with planned FultonFirst financial center consolidations. The decrease in employee salaries and benefits expense was driven by a $4.9 million decrease in employee severance costs related to the FultonFirst initiative, a $3.4 million decrease due to cost savings realized related to the Acquisition and a $2.5 million decrease in employee incentive compensation costs.
Balance Sheet Summary
— Net loans totaled $24.0 billion, a decrease of $131.2 million, compared to $24.2 billion as of September 30, 2024. The decline in balance was due to a net decrease of $168.1 million in commercial and other loans(4), partially offset by an increase of $36.9 million in consumer loans(4).
— Deposits totaled $26.1 billion, a decrease of $22.7 million, compared to $26.2 billion as of September 30, 2024. The decrease was primarily due to a decrease of $136.8 million in time deposits, partially offset by increases of $64.1 million in interest-bearing demand deposits and $51.5 million in savings deposits.
Provision for Credit Losses and Asset Quality
— The provision for credit losses was $16.7 million in the fourth quarter of 2024, resulting in an allowance for credit losses attributable to net loans of $379.2 million, or 1.58% of total net loans at December 31, 2024, compared to $376.0 million, or 1.56% of total net loans at September 30, 2024.
— Non-performing assets were $222.7 million, or 0.69% of total assets, at December 31, 2024, in comparison to $205.0 million, or 0.64% of total assets, at September 30, 2024.
— Net charge-offs for the fourth quarter of 2024 were 0.22% of total average loans in comparison to 0.18% in the prior quarter.
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 December31, 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 (theAcquisition”), 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 CORPORATIONSUMMARY 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 2023Ending BalancesInvestment securities $ 4,806,468 $ 4,545,278 $ 4,184,027 $ 3,783,392 $ 3,666,274Net loans 24,044,919 24,176,075 24,106,297 21,444,483 21,351,094Total assets 32,065,059 32,185,726 31,769,813 27,642,957 27,571,915Deposits 26,129,433 26,152,144 25,559,654 21,741,950 21,537,623Shareholders' equity 3,197,325 3,203,943 3,101,609 2,757,679 2,760,139Average BalancesInvestment securities(1) 4,771,537 4,237,805 4,043,136 3,672,844 3,665,261Net loans 24,068,784 24,147,801 23,345,914 21,370,033 21,255,779Total assets 32,098,852 31,895,235 30,774,891 27,427,626 27,397,671Deposits 26,313,378 25,778,259 24,642,954 21,378,754 21,476,548Shareholders' equity 3,219,026 3,160,322 2,952,671 2,766,945 2,618,024Income StatementNet interest income 253,659 258,009 241,720 206,937 212,006Provision for credit losses 16,725 11,929 32,056 10,925 9,808Non-interest income 65,924 59,673 92,994 57,140 59,378Non-interest expense 216,615 226,089 199,488 177,600 180,552Income before taxes 86,243 79,664 103,170 75,552 81,024Net income available to common shareholders 66,058 60,644 92,413 59,379 61,701Per ShareNet income available to common shareholders (basic) $0.36 $0.33 $0.53 $0.36 $0.38Net income available to common shareholders (diluted) $0.36 $0.33 $0.52 $0.36 $0.37Operating net income available to common shareholders(2) $0.48 $0.50 $0.47 $0.40 $0.42Cash dividends $0.18 $0.17 $0.17 $0.17 $0.17Common shareholders' equity $16.50 $16.55 $16.00 $15.82 $15.67Common shareholders' equity (tangible)(2) $13.01 $13.02 $12.43 $12.37 $12.25Weighted average shares (basic) 182,032 181,905 175,305 162,706 163,975Weighted 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 2023Asset QualityNet 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%ProfitabilityReturn 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 December31, 2024 are preliminary estimates and prior periods are actual.
FULTON FINANCIAL CORPORATIONCONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)(dollars in thousands) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2024 2024 2024 2024 2023ASSETS 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 $ 27,571,915LIABILITIES 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 $ 27,571,915LOANS, 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 $ 21,351,094Deposits, 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 $ 21,537,623Borrowings, 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 CORPORATIONCONDENSED 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 2023Net 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 236,934 246,080 209,664 196,012 202,198 888,689 800,250Non-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 59,378 275,731 227,678Non-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 2023PER 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 CORPORATIONCONDENSED 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) RateASSETSInterest-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 $ 27,397,671LIABILITIES AND SHAREHOLDERS' EQUITYInterest-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 CORPORATIONAVERAGE 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 2023Loans, 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 $ 21,255,779Deposits, 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 $ 21,476,548Borrowings, 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 CORPORATIONCONDENSED 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) RateASSETSInterest-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 $ 27,229,704LIABILITIES AND SHAREHOLDERS' EQUITYInterest-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 CORPORATIONAVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED)(dollars in thousands) Year ended December 31 2024 2023Loans, 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 $ 20,929,302Deposits, 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 $ 21,156,856Borrowings, 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 CORPORATIONASSET 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 2023Allowance 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 10,129Net 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 53,110Balance at end of period $ 379,156 $ 375,961 $ 375,941 $ 297,888 $ 293,404 $ 379,156 $ 293,404Net 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) $ 926NON-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 $ 154,237NON-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 CORPORATIONRECONCILIATION 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 2023Operating net income available to common shareholdersNet income available to common shareholders $ 66,058 $ 60,644 $ 92,413 $ 59,379 $ 61,701Less: 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 441Plus: 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 6,494Plus: FultonFirst implementation and asset disposals 10,001 9,385 6,323 6,329 3,197Less: 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 $ 68,835Weighted average shares (diluted) (denominator) 183,867 183,609 176,934 164,520 165,650Operating net income available to common shareholders, per share (diluted) $ 0.48 $ 0.50 $ 0.47 $ 0.40 $ 0.42Common shareholders' equity (tangible), per shareShareholders' equity $ 3,197,325 $ 3,203,943 $ 3,101,609 $ 2,757,679 $ 2,760,139Less: 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 $ 2,006,574Shares outstanding, end of period (denominator) 182,089 181,957 181,831 162,087 163,801Common 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 2023Operating return on average assets(1)Net income $ 68,620 $ 63,206 $ 94,975 $ 61,941 $ 64,263Less: 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 441Plus: 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 6,494Plus: FultonFirst implementation and asset disposals 10,001 9,385 6,323 6,329 3,197Less: 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 $ 71,397Total average assets $ 32,098,852 $ 31,895,235 $ 30,774,891 $ 27,427,626 $ 27,397,671Less: 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 $ 27,392,565Operating 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 $ 61,701Less: 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 597Plus: 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 6,494Plus: FultonFirst implementation and asset disposals 10,001 9,385 6,323 6,329 3,197Less: 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 $ 68,958Average shareholders' equity $ 3,219,026 $ 3,160,322 $ 2,952,671 $ 2,766,945 $ 2,618,024Less: 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 $ 1,864,169Operating 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 2023Tangible common equity to tangible assets (TCE Ratio)Shareholders' equity $ 3,197,325 $ 3,203,943 $ 3,101,609 $ 2,757,679 $ 2,760,139Less: 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 $ 2,006,574Total assets $ 32,065,059 $ 32,185,726 $ 31,769,813 $ 27,642,957 $ 27,571,915Less: 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 $ 27,011,228Tangible common equity to tangible assets 7.54% 7.51% 7.26% 7.40% 7.43%Efficiency ratioNon-interest expense $ 216,615 $ 226,089 $ 199,488 $ 177,600 $ 180,552Less: 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 – – – – 720Operating non-interest expense (numerator) $ 190,695 $ 196,238 $ 194,940 $ 169,742 $ 170,984Net interest income $ 253,659 $ 258,009 $ 241,720 $ 206,937 $ 212,006Tax equivalent adjustment 4,343 4,424 4,556 4,592 4,549Plus: Total non-interest income 65,924 59,673 92,994 57,140 59,378Less: 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 – 752Total revenue (denominator) $ 326,346 $ 329,136 $ 311,452 $ 268,518 $ 275,583Efficiency ratio 58.43% 59.62% 62.59% 63.21% 62.04%Operating non-interest expense to total average assetsNon-interest expense $ 216,615 $ 226,089 $ 199,488 $ 177,600 $ 180,552Less: 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 $ 170,264Total average assets (denominator) $ 32,098,852 $ 31,895,235 $ 30,774,891 $ 27,427,626 $ 27,397,671Operating 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 2023Operating net income available to common shareholdersNet income available to common shareholders $ 278,495 $ 274,032Less: Other revenue (1,805) 1,855Plus: Gain on acquisition, net of tax (36,996) -Plus: Loss on securities restructuring 20,282 -Plus: Core deposit intangible amortization 17,307 2,308Plus: 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 6,494Plus: FultonFirst implementation and asset disposals 32,038 3,197Less: Tax impact of adjustments (23,011) (2,909)Operating net income available to common shareholders (numerator) $ 328,063 $ 284,977Weighted average shares (diluted) (denominator) 177,223 166,769Operating net income available to common shareholders, per share (diluted) $ 1.85 $ 1.71Note: 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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