10/19/2021 | Press release | Distributed by Public on 10/19/2021 14:49
Three months ended | ||||||||||||
September 30, 2021 | June 30, 2021 | Growth | ||||||||||
Balance |
Yield (1)
|
Balance |
Yield (1)
|
$ | % | |||||||
(dollars in thousands) | ||||||||||||
Average Net Loans by type: | ||||||||||||
Real estate - commercial mortgage | $ | 7,134,177 | 3.11 | % | $ | 7,177,622 | 3.16 | % | $ | (43,445) | (0.6) | % |
Commercial and industrial(2)
|
4,729,385 | 2.79 | % | 5,445,160 | 2.58 | % | (715,775) | (13.1) | % | |||
Real estate - residential mortgage | 3,642,822 | 3.39 | % | 3,396,690 | 3.39 | % | 246,132 | 7.2 | % | |||
Real estate - home equity | 1,128,076 | 3.68 | % | 1,139,558 | 3.71 | % | (11,482) | (1.0) | % | |||
Real estate - construction | 1,085,846 | 3.13 | % | 1,054,469 | 3.05 | % | 31,377 | 3.0 | % | |||
Consumer | 452,844 | 4.00 | % | 451,486 | 3.89 | % | 1,358 | 0.3 | % | |||
Equipment lease financing | 247,776 | 3.88 | % | 256,248 | 3.74 | % | (8,472) | (3.3) | % | |||
Other(3)
|
(6,773) | N/A | (14,677) | N/A | 7,904 | 53.9 | % | |||||
Total Average Net Loans | $ | 18,414,153 | 3.53 | % | $ | 18,906,556 | 3.32 | % | $ | (492,403) | (2.6) | % |
(1) Presented on a fully-taxable equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances. | ||||||||||||
(2) Includes average PPP loans of $0.9 billion and $1.5 billion for the three months ended September 30, 2021 and June 30, 2021, respectively. | ||||||||||||
(3) Consists of overdrafts and net origination fees and costs. | ||||||||||||
Three months ended | ||||||||||||
September 30, 2021 | June 30, 2021 | Growth | ||||||||||
Balance | Rate | Balance | Rate | $ | % | |||||||
(dollars in thousands) | ||||||||||||
Average Deposits, by type: | ||||||||||||
Noninterest-bearing demand | $ | 7,439,644 | - | $ | 7,203,696 | - | $ | 235,948 | 3.3 | % | ||
Interest-bearing demand | 6,168,908 | 0.05 | % | 5,979,855 | 0.06 | % | 189,053 | 3.2 | % | |||
Savings | 6,392,537 | 0.07 | % | 6,280,629 | 0.09 | % | 111,908 | 1.8 | % | |||
Total average demand and savings | 20,001,089 | 0.04 | % | 19,464,180 | 0.05 | % | 536,909 | 2.8 | % | |||
Brokered | 270,168 | 0.34 | % | 297,815 | 0.34 | % | (27,647) | (9.3) | % | |||
Time | 1,852,223 | 0.95 | % | 2,003,606 | 1.09 | % | (151,383) | (7.6) | % | |||
Total Average Deposits | $ | 22,123,480 | 0.12 | % | $ | 21,765,601 | 0.15 | % | $ | 357,879 | 1.6 | % |
FULTON FINANCIAL CORPORATION | ||||||||||
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) | ||||||||||
in thousands, except per-share data and percentages | ||||||||||
Three months ended | ||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | ||||||
2021 | 2021 | 2021 | 2020 | 2020 | ||||||
Ending Balances | ||||||||||
Investments | $ | 4,000,760 | $ | 3,921,658 | $ | 3,612,010 | $ | 3,340,424 | $ | 3,097,721 |
Net Loans | 18,269,407 | 18,586,756 | 18,990,986 | 18,900,820 | 19,028,621 | |||||
Total assets | 26,390,832 | 26,079,774 | 25,892,990 | 25,906,733 | 25,543,281 | |||||
Deposits | 22,074,041 | 21,724,312 | 21,633,838 | 20,839,207 | 20,730,051 | |||||
Shareholders' equity | 2,699,818 | 2,692,958 | 2,629,655 | 2,616,828 | 2,390,261 | |||||
Average Balances | ||||||||||
Investments | $ | 3,914,627 | $ | 3,670,333 | $ | 3,448,166 | $ | 3,221,289 | $ | 2,977,672 |
Net Loans | 18,414,153 | 18,906,556 | 18,980,586 | 18,994,514 | 18,880,519 | |||||
Total assets | 26,440,876 | 26,017,542 | 26,082,816 | 25,749,405 | 25,169,508 | |||||
Deposits | 22,123,480 | 21,765,601 | 21,117,024 | 20,791,522 | 20,388,447 | |||||
Shareholders' equity | 2,722,833 | 2,669,413 | 2,637,098 | 2,544,866 | 2,374,091 | |||||
Income Statement | ||||||||||
Net interest income | $ | 171,270 | $ | 162,399 | $ | 164,448 | $ | 161,591 | $ | 154,116 |
Provision for credit losses | (600) | (3,500) | (5,500) | 6,240 | 7,080 | |||||
Non-interest income | 62,577 | 51,890 | 95,397 | 55,574 | 63,249 | |||||
Non-interest expense | 144,596 | 140,831 | 178,384 | 154,737 | 139,145 | |||||
Income before taxes | 89,851 | 76,958 | 86,961 | 56,187 | 71,140 | |||||
Net income available to common shareholders | 73,021 | 62,402 | 70,472 | 48,690 | 61,611 | |||||
Pre-provision net revenue(1)
|
90,947 | 75,575 | 81,795 | 64,092 | 80,044 | |||||
Per Share | ||||||||||
Net income available to common shareholders (basic) | $ | 0.45 | $ | 0.38 | $ | 0.43 | $ | 0.30 | $ | 0.38 |
Net income available to common shareholders (diluted) | $ | 0.45 | $ | 0.38 | $ | 0.43 | $ | 0.30 | $ | 0.38 |
Cash dividends | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.17 | $ | 0.13 |
Common shareholders' equity | $ | 15.53 | $ | 15.34 | $ | 14.99 | $ | 14.93 | $ | 14.74 |
Common shareholders' equity (tangible)(1)
|
$ | 12.21 | $ | 12.05 | $ | 11.69 | $ | 11.62 | $ | 11.44 |
Weighted average shares (basic) | 162,506 | 162,785 | 162,441 | 162,242 | 162,061 | |||||
Weighted average shares (diluted) | 163,456 | 163,858 | 163,737 | 163,071 | 162,579 | |||||
(1) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this document.
|
Three months ended | ||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | ||||||
2021 | 2021 | 2021 | 2020 | 2020 | ||||||
Asset Quality | ||||||||||
Net charge-offs (recoveries) to average loans (annualized) | (0.05) | % | 0.15 | % | 0.13 | % | (0.07) | % | (0.05) | % |
Non-performing loans to total loans | 0.82 | % | 0.83 | % | 0.80 | % | 0.78 | % | 0.75 | % |
Non-performing assets to total assets | 0.58 | % | 0.60 | % | 0.60 | % | 0.58 | % | 0.57 | % |
ACL - loans(2) to total loans
|
1.41 | % | 1.37 | % | 1.40 | % | 1.47 | % | 1.40 | % |
ACL - loans(2) to non-performing loans
|
171 | % | 166 | % | 174 | % | 189 | % | 188 | % |
Asset Quality, excluding PPP(1)(3)
|
||||||||||
Net charge-offs (recoveries) to adjusted average loans (annualized) | (0.05) | % | 0.16 | % | 0.14 | % | (0.08) | % | (0.06) | % |
Non-performing loans to total adjusted loans | 0.85 | % | 0.88 | % | 0.88 | % | 0.85 | % | 0.83 | % |
ACL - loans(2) to total adjusted loans
|
1.45 | % | 1.46 | % | 1.54 | % | 1.60 | % | 1.56 | % |
Profitability | ||||||||||
Return on average assets | 1.13 | % | 1.00 | % | 1.14 | % | 0.79 | % | 0.97 | % |
Return on average common shareholders' equity | 10.64 | % | 9.38 | % | 10.84 | % | 7.61 | % | 10.32 | % |
Return on average common shareholders' equity (tangible)(1)
|
14.56 | % | 12.93 | % | 15.00 | % | 10.32 | % | 13.35 | % |
Net interest margin | 2.82 | % | 2.73 | % | 2.79 | % | 2.75 | % | 2.70 | % |
Efficiency ratio(1)
|
60.3 | % | 63.8 | % | 63.0 | % | 62.5 | % | 62.3 | % |
Non-interest expenses to total average assets(1)
|
2.14 | % | 2.14 | % | 2.25 | % | 2.13 | % | 2.16 | % |
Capital Ratios | ||||||||||
Tangible common equity ratio(1)
|
7.6 | % | 7.7 | % | 7.5 | % | 7.4 | % | 7.4 | % |
Tier 1 leverage ratio(4)
|
8.4 | % | 8.5 | % | 8.3 | % | 8.2 | % | 7.5 | % |
Common equity Tier 1 capital ratio(4)
|
10.1 | % | 10.0 | % | 9.8 | % | 9.5 | % | 9.6 | % |
Tier 1 risk-based capital ratio(4)
|
11.1 | % | 11.0 | % | 10.8 | % | 10.5 | % | 9.6 | % |
Total risk-based capital ratio(4)
|
14.5 | % | 14.5 | % | 14.2 | % | 14.4 | % | 13.8 | % |
(1) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this document. | ||||||||||
(2) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet ("OBS") credit exposures. | ||||||||||
(3) Asset quality information excluding Paycheck Protection Program ("PPP") loans. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this document. | ||||||||||
(4) Regulatory capital ratios as of September 30, 2021 are preliminary and prior periods are actual.
|
FULTON FINANCIAL CORPORATION | ||||||||||||||
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) | ||||||||||||||
dollars in thousands | ||||||||||||||
% Change from | ||||||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Sep 30 | ||||||||
2021 | 2021 | 2021 | 2020 | 2020 | 2021 | 2020 | ||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | 260,564 | $ | 143,002 | $ | 102,570 | $ | 120,462 | $ | 139,304 | 82.2 | % | 87.0 | % |
Other interest-earning assets | 2,271,738 | 1,823,688 | 1,625,515 | 1,819,499 | 1,489,550 | 24.6 | % | 52.5 | % | |||||
Loans held for sale | 43,123 | 41,924 | 34,092 | 83,886 | 93,621 | 2.9 | % | (53.9) | % | |||||
Investment securities | 4,000,760 | 3,921,658 | 3,612,010 | 3,340,424 | 3,097,721 | 2.0 | % | 29.2 | % | |||||
Net Loans | 18,269,407 | 18,586,756 | 18,990,986 | 18,900,820 | 19,028,621 | (1.7) | % | (4.0) | % | |||||
Less: ACL - loans(1)
|
(256,727) | (255,032) | (265,986) | (277,567) | (266,825) | 0.7 | % | (3.8) | % | |||||
Loans, net | 18,012,680 | 18,331,724 | 18,725,000 | 18,623,253 | 18,761,796 | (1.7) | % | (4.0) | % | |||||
Net, premises and equipment | 228,179 | 228,353 | 229,035 | 231,480 | 236,943 | (0.1) | % | (3.7) | % | |||||
Accrued interest receivable | 57,902 | 63,232 | 65,649 | 72,942 | 70,766 | (8.4) | % | (18.2) | % | |||||
Goodwill and intangible assets | 536,697 | 536,847 | 536,544 | 536,659 | 534,907 | - | % | 0.3 | % | |||||
Other assets | 979,189 | 989,346 | 962,575 | 1,078,128 | 1,118,673 | (1.0) | % | (12.5) | % | |||||
Total Assets | $ | 26,390,832 | $ | 26,079,774 | $ | 25,892,990 | $ | 25,906,733 | $ | 25,543,281 | 1.2 | % | 3.3 | % |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
Deposits | $ | 22,074,041 | $ | 21,724,312 | $ | 21,633,838 | $ | 20,839,207 | $ | 20,730,051 | 1.6 | % | 6.5 | % |
Short-term borrowings | 468,967 | 533,749 | 520,989 | 630,066 | 611,727 | (12.1) | % | (23.3) | % | |||||
Other liabilities | 520,620 | 501,542 | 482,101 | 524,369 | 515,230 | 3.8 | % | 1.0 | % | |||||
Long-term borrowings | 627,386 | 627,213 | 626,407 | 1,296,263 | 1,296,012 | - | % | (51.6) | % | |||||
Total Liabilities | 23,691,014 | 23,386,816 | 23,263,335 | 23,289,905 | 23,153,020 | 1.3 | % | 2.3 | % | |||||
Shareholders' equity | 2,699,818 | 2,692,958 | 2,629,655 | 2,616,828 | 2,390,261 | 0.3 | % | 13.0 | % | |||||
Total Liabilities and Shareholders' Equity | $ | 26,390,832 | $ | 26,079,774 | $ | 25,892,990 | $ | 25,906,733 | $ | 25,543,281 | 1.2 | % | 3.3 | % |
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: | ||||||||||||||
Loans, by type: | ||||||||||||||
Real estate - commercial mortgage | $ | 7,145,115 | $ | 7,152,932 | $ | 7,142,137 | $ | 7,105,092 | $ | 7,046,330 | (0.1) | % | 1.4 | % |
Commercial and industrial | 3,863,154 | 3,870,462 | 3,986,858 | 4,088,561 | 4,007,278 | (0.2) | % | (3.6) | % | |||||
Real estate - residential mortgage | 3,719,684 | 3,555,897 | 3,254,058 | 3,141,915 | 3,061,835 | 4.6 | % | 21.5 | % | |||||
Real estate - home equity | 1,126,628 | 1,136,128 | 1,149,958 | 1,202,913 | 1,222,709 | (0.8) | % | (7.9) | % | |||||
Real estate - construction | 1,111,487 | 1,070,755 | 1,083,494 | 1,047,218 | 1,007,534 | 3.8 | % | 10.3 | % | |||||
Consumer | 458,595 | 448,433 | 451,857 | 466,772 | 469,551 | 2.3 | % | (2.3) | % | |||||
Equipment lease financing | 242,967 | 252,158 | 260,907 | 279,118 | 280,286 | (3.6) | % | (13.3) | % | |||||
Other(2)
|
11,330 | (14,410) | (26,677) | (12,481) | (27,067) | N/M | N/M | |||||||
Net Loans before PPP | 17,678,960 | 17,472,355 | 17,302,592 | 17,319,108 | 17,068,456 | 1.2 | % | 3.6 | % | |||||
PPP | 590,447 | 1,114,401 | 1,688,394 | 1,581,712 | 1,960,165 | (47.0) | % | (69.9) | % | |||||
Total Net Loans | $ | 18,269,407 | $ | 18,586,756 | $ | 18,990,986 | $ | 18,900,820 | $ | 19,028,621 | (1.7) | % | (4.0) | % |
Deposits, by type: | ||||||||||||||
Noninterest-bearing demand | $ | 7,434,155 | $ | 7,442,132 | $ | 7,046,116 | $ | 6,531,002 | $ | 6,378,077 | (0.1) | % | 16.6 | % |
Interest-bearing demand | 6,187,096 | 5,795,404 | 5,959,909 | 5,818,564 | 5,813,935 | 6.8 | % | 6.4 | % | |||||
Savings | 6,401,619 | 6,276,554 | 6,244,513 | 5,929,792 | 5,805,431 | 2.0 | % | 10.3 | % | |||||
Total demand and savings | 20,022,870 | 19,514,090 | 19,250,538 | 18,279,358 | 17,997,443 | 2.6 | % | 11.3 | % | |||||
Brokered | 262,617 | 277,444 | 309,873 | 335,185 | 317,588 | (5.3) | % | (17.3) | % | |||||
Time | 1,788,554 | 1,932,778 | 2,073,427 | 2,224,664 | 2,415,020 | (7.5) | % | (25.9) | % | |||||
Total Deposits | $ | 22,074,041 | $ | 21,724,312 | $ | 21,633,838 | $ | 20,839,207 | $ | 20,730,051 | 1.6 | % | 6.5 | % |
Short-term borrowings, by type: | ||||||||||||||
Customer funding | $ | 468,967 | $ | 533,749 | $ | 520,989 | $ | 630,066 | $ | 611,727 | (12.1) | % | (23.3) | % |
Total Short-term Borrowings | $ | 468,967 | $ | 533,749 | $ | 520,989 | $ | 630,066 | $ | 611,727 | (12.1) | % | (23.3) | % |
(1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures. | ||||||||||||||
(2) Consists of overdrafts and net origination fees and costs. |
FULTON FINANCIAL CORPORATION | ||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||||
dollars in thousands | ||||||||||||||||||||
Three Months Ended | % Change from | Nine Months Ended | ||||||||||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Sep 30 | Sep 30 | |||||||||||||
2021 | 2021 | 2021 | 2020 | 2020 | 2021 | 2020 | 2021 | 2020 | % Change | |||||||||||
Interest Income: | ||||||||||||||||||||
Interest income | $ | 184,079 | $ | 176,673 | $ | 184,936 | $ | 183,645 | $ | 179,159 | 4.2 | % | 2.7 | % | $ | 545,688 | $ | 559,233 | (2.4) | % |
Interest expense | 12,809 | 14,274 | 20,488 | 22,054 | 25,043 | (10.3) | % | (48.9) | % | 47,570 | 91,617 | (48.1) | % | |||||||
Net Interest Income | 171,270 | 162,399 | 164,448 | 161,591 | 154,116 | 5.5 | % | 11.1 | % | 498,118 | 467,616 | 6.5 | % | |||||||
Provision for credit losses | (600) | (3,500) | (5,500) | 6,240 | 7,080 | 82.9 | % | (108.5) | % | (9,600) | 70,680 | (113.6) | % | |||||||
Net Interest Income after Provision | 171,870 | 165,899 | 169,948 | 155,351 | 147,036 | 3.6 | % | 16.9 | % | 507,718 | 396,936 | 27.9 | % | |||||||
Non-Interest Income: | ||||||||||||||||||||
Commercial banking: | ||||||||||||||||||||
Merchant and card | 6,979 | 6,786 | 5,768 | 5,953 | 6,237 | 2.8 | % | 11.9 | % | 19,533 | 17,187 | 13.6 | % | |||||||
Cash management | 5,285 | 5,341 | 4,921 | 4,737 | 4,742 | (1.0) | % | 11.5 | % | 15,547 | 13,987 | 11.2 | % | |||||||
Capital markets | 2,063 | 1,536 | 2,800 | 3,513 | 4,696 | 34.3 | % | (56.1) | % | 6,399 | 14,775 | (56.7) | % | |||||||
Other commercial banking | 2,411 | 3,466 | 2,853 | 2,606 | 2,636 | (30.4) | % | (8.5) | % | 8,730 | 7,528 | 16.0 | % | |||||||
Total commercial banking | 16,738 | 17,129 | 16,342 | 16,809 | 18,311 | (2.3) | % | (8.6) | % | 50,209 | 53,477 | (6.1) | % | |||||||
Consumer banking: | ||||||||||||||||||||
Card | 5,941 | 5,733 | 5,878 | 5,123 | 5,002 | 3.6 | % | 18.8 | % | 17,552 | 14,653 | 19.8 | % | |||||||
Overdraft | 3,474 | 2,750 | 2,724 | 3,376 | 3,015 | 26.3 | % | 15.2 | % | 8,948 | 9,180 | (2.5) | % | |||||||
Other consumer banking | 2,386 | 2,377 | 2,152 | 2,298 | 2,406 | 0.4 | % | (0.8) | % | 6,915 | 6,967 | (0.7) | % | |||||||
Total consumer banking | 11,801 | 10,860 | 10,754 | 10,797 | 10,423 | 8.7 | % | 13.2 | % | 33,415 | 30,800 | 8.5 | % | |||||||
Wealth management | 18,532 | 17,634 | 17,347 | 15,653 | 14,943 | 5.1 | % | 24.0 | % | 53,513 | 43,405 | 23.3 | % | |||||||
Mortgage banking | 9,535 | 2,838 | 13,960 | 9,311 | 16,801 | N/M | (43.2) | % | 26,333 | 32,998 | (20.2) | % | ||||||||
Other | 5,971 | 3,393 | 3,519 | 3,004 | 2,769 | 76.0 | % | 115.6 | % | 12,883 | 10,080 | 27.8 | % | |||||||
Non-interest income before investment securities gains | 62,577 | 51,854 | 61,922 | 55,574 | 63,247 | 20.7 | % | (1.1) | % | 176,353 | 170,761 | 3.3 | % | |||||||
Investment securities gains, net | - | 36 | 33,475 | - | 2 | (100.0) | % | (100.0) | % | 33,511 | 3,053 | N/M | ||||||||
Total Non-Interest Income | 62,577 | 51,890 | 95,397 | 55,574 | 63,249 | 20.6 | % | (1.1) | % | 209,864 | 173,814 | 20.7 | % | |||||||
Non-Interest Expense: | ||||||||||||||||||||
Salaries and employee benefits | 82,679 | 78,367 | 82,586 | 83,929 | 79,227 | 5.5 | % | 4.4 | % | 243,632 | 240,467 | 1.3 | % | |||||||
Data processing and software | 14,335 | 13,932 | 13,561 | 11,951 | 12,285 | 2.9 | % | 16.7 | % | 41,828 | 36,123 | 15.8 | % | |||||||
Net occupancy | 12,957 | 12,494 | 13,982 | 13,161 | 13,221 | 3.7 | % | (2.0) | % | 39,433 | 39,851 | (1.0) | % | |||||||
Other outside services | 7,889 | 8,178 | 8,490 | 8,334 | 7,617 | (3.5) | % | 3.6 | % | 24,557 | 23,098 | 6.3 | % | |||||||
Equipment | 3,416 | 3,424 | 3,428 | 3,563 | 3,711 | (0.2) | % | (7.9) | % | 10,268 | 10,322 | (0.5) | % | |||||||
Professional fees | 2,271 | 2,651 | 2,779 | 2,424 | 2,879 | (14.3) | % | (21.1) | % | 7,701 | 10,412 | (26.0) | % | |||||||
FDIC insurance | 2,727 | 2,282 | 2,624 | 2,346 | 1,578 | 19.5 | % | 72.8 | % | 7,633 | 6,519 | 17.1 | % | |||||||
Amortization of tax credit investments | 1,546 | 1,563 | 1,531 | 1,532 | 1,694 | (1.1) | % | (8.7) | % | 4,640 | 4,594 | 1.0 | % | |||||||
Marketing | 1,448 | 1,348 | 1,002 | 1,098 | 1,147 | 7.4 | % | 26.2 | % | 3,798 | 4,029 | (5.7) | % | |||||||
Intangible amortization | 150 | 178 | 115 | 132 | 132 | (15.7) | % | 13.6 | % | 443 | 397 | 11.6 | % | |||||||
Debt extinguishment | - | 412 | 32,163 | - | - | (100.0) | % | (100.0) | % | 32,575 | 2,878 | N/M | ||||||||
Other | 15,178 | 16,002 | 16,123 | 26,268 | 15,654 | (5.1) | % | (3.0) | % | 47,303 | 46,014 | 2.8 | % | |||||||
Total Non-Interest Expense | 144,596 | 140,831 | 178,384 | 154,737 | 139,145 | 2.7 | % | 3.9 | % | 463,811 | 424,705 | 9.2 | % | |||||||
Income Before Income Taxes | 89,851 | 76,958 | 86,961 | 56,187 | 71,140 | 16.8 | % | 26.3 | % | 253,771 | 146,045 | 73.8 | % | |||||||
Income tax expense | 14,268 | 11,994 | 13,898 | 5,362 | 9,529 | 19.0 | % | 49.7 | % | 40,160 | 18,832 | 113.3 | % | |||||||
Net Income | 75,583 | 64,964 | 73,063 | 50,825 | 61,611 | 16.3 | % | 22.7 | % | 213,611 | 127,213 | 67.9 | % | |||||||
Preferred stock dividends | (2,562) | (2,562) | (2,591) | (2,135) | - | - | % | N/M | (7,715) | - | N/M | |||||||||
Net Income Available to Common Shareholders | $ | 73,021 | $ | 62,402 | $ | 70,472 | $ | 48,690 | $ | 61,611 | 17.0 | % | 18.5 | % | $ | 205,896 | $ | 127,213 | 61.9 | % |
PER SHARE: | ||||||||||||||||||||
Net income available to common shareholders: | ||||||||||||||||||||
Basic | $ | 0.45 | $ | 0.38 | $ | 0.43 | $ | 0.30 | $ | 0.38 | 18.4 | % | 18.4 | % | $ | 1.27 | $ | 0.78 | 62.8 | % |
Diluted | 0.45 | 0.38 | 0.43 | 0.30 | 0.38 | 18.4 | % | 18.4 | % | 1.26 | 0.78 | 61.5 | % | |||||||
Cash dividends | 0.14 | 0.14 | 0.14 | 0.17 | 0.13 | - | % | 7.7 | % | 0.42 | 0.39 | 7.7 | % | |||||||
Weighted average shares (basic) | 162,506 | 162,785 | 162,441 | 162,242 | 162,061 | (0.2) | % | 0.3 | % | 162,577 | 162,416 | 0.1 | % | |||||||
Weighted average shares (diluted) | 163,456 | 163,858 | 163,737 | 163,071 | 162,579 | (0.2) | % | 0.5 | % | 163,634 | 163,083 | 0.3 | % |
FULTON FINANCIAL CORPORATION | ||||||||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||
dollars in thousands | ||||||||||||||||||
Three months ended | ||||||||||||||||||
September 30, 2021 | June 30, 2021 | September 30, 2020 | ||||||||||||||||
Average | Interest | Yield/ | Average | Interest | Yield/ | Average | Interest | Yield/ | ||||||||||
Balance | (1) | Rate | Balance | (1) | Rate | Balance | (1) | Rate | ||||||||||
ASSETS | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||
Net Loans | $ | 18,414,153 | $ | 163,343 | 3.53 | % | $ | 18,906,556 | $ | 156,525 | 3.32 | % | $ | 18,880,519 | $ | 160,344 | 3.38 | % |
Taxable investment securities | 2,785,828 | 13,757 | 1.80 | % | 2,630,090 | 13,898 | 1.93 | % | 2,011,893 | 13,150 | 2.61 | % | ||||||
Tax-exempt investment securities | 1,035,685 | 7,906 | 3.05 | % | 961,141 | 7,494 | 3.11 | % | 861,764 | 6,899 | 3.19 | % | ||||||
Total Investment Securities | 3,821,513 | 21,663 | 2.27 | % | 3,591,231 | 21,392 | 2.38 | % | 2,873,657 | 20,049 | 2.79 | % | ||||||
Loans held for sale | 36,427 | 299 | 3.28 | % | 31,948 | 199 | 2.49 | % | 79,999 | 728 | 3.64 | % | ||||||
Other interest-earning assets | 2,301,326 | 1,888 | 0.18 | % | 1,752,549 | 1,575 | 0.16 | % | 1,387,327 | 1,028 | 0.30 | % | ||||||
Total Interest-earning Assets | 24,573,419 | 187,193 | 3.03 | % | 24,282,284 | 179,691 | 2.97 | % | 23,221,502 | 182,149 | 3.13 | % | ||||||
Noninterest-earning assets: | ||||||||||||||||||
Cash and due from banks | 200,315 | 129,927 | 138,567 | |||||||||||||||
Premises and equipment | 228,861 | 229,047 | 239,183 | |||||||||||||||
Other assets | 1,695,767 | 1,643,410 | 1,835,190 | |||||||||||||||
Less: ACL - loans(2)
|
(257,486) | (267,126) | (264,934) | |||||||||||||||
Total Assets | $ | 26,440,876 | $ | 26,017,542 | $ | 25,169,508 | ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Demand deposits | $ | 6,168,908 | $ | 814 | 0.05 | % | $ | 5,979,855 | $ | 932 | 0.06 | % | $ | 5,591,548 | $ | 1,913 | 0.14 | % |
Savings deposits | 6,392,537 | 1,054 | 0.07 | % | 6,280,629 | 1,363 | 0.09 | % | 5,716,050 | 2,347 | 0.16 | % | ||||||
Brokered deposits | 270,168 | 229 | 0.34 | % | 297,815 | 253 | 0.34 | % | 314,721 | 440 | 0.56 | % | ||||||
Time deposits | 1,852,223 | 4,428 | 0.95 | % | 2,003,606 | 5,434 | 1.09 | % | 2,495,445 | 9,931 | 1.58 | % | ||||||
Total Interest-bearing Deposits | 14,683,836 | 6,525 | 0.18 | % | 14,561,905 | 7,982 | 0.22 | % | 14,117,764 | 14,631 | 0.41 | % | ||||||
Short-term borrowings | 494,811 | 131 | 0.11 | % | 514,025 | 137 | 0.11 | % | 613,127 | 370 | 0.24 | % | ||||||
Long-term borrowings | 627,300 | 6,153 | 3.92 | % | 626,795 | 6,155 | 3.93 | % | 1,295,515 | 10,042 | 3.10 | % | ||||||
Total Interest-bearing Liabilities | 15,805,947 | 12,809 | 0.32 | % | 15,702,725 | 14,274 | 0.36 | % | 16,026,406 | 25,043 | 0.62 | % | ||||||
Noninterest-bearing liabilities: | ||||||||||||||||||
Demand deposits | 7,439,644 | 7,203,696 | 6,270,683 | |||||||||||||||
Other | 472,452 | 441,708 | 498,328 | |||||||||||||||
Total Liabilities | 23,718,043 | 23,348,129 | 22,795,417 | |||||||||||||||
Total Deposits/Cost of Deposits | 22,123,480 | 0.12 | % | 21,765,601 | 0.15 | % | 20,388,447 | 0.29 | % | |||||||||
Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds") | 23,245,591 | 0.22 | % | 22,906,421 | 0.25 | % | 22,297,089 | 0.45 | % | |||||||||
Shareholders' equity | 2,722,833 | 2,669,413 | 2,374,091 | |||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 26,440,876 | $ | 26,017,542 | $ | 25,169,508 | ||||||||||||
Net interest income/net interest margin (fully taxable equivalent) | 174,384 | 2.82 | % | 165,417 | 2.73 | % | 157,106 | 2.70 | % | |||||||||
Tax equivalent adjustment | (3,114) | (3,018) | (2,990) | |||||||||||||||
Net interest income | $ | 171,270 | $ | 162,399 | $ | 154,116 | ||||||||||||
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. | ||||||||||||||||||
(2) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures. |
FULTON FINANCIAL CORPORATION | ||||||||||||||
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED): | ||||||||||||||
dollars in thousands | ||||||||||||||
Three months ended | % Change from | |||||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Sep 30 | ||||||||
2021 | 2021 | 2021 | 2020 | 2020 | 2021 | 2020 | ||||||||
Loans, by type: | ||||||||||||||
Real estate - commercial mortgage | $ | 7,134,177 | $ | 7,177,622 | $ | 7,128,997 | $ | 7,101,363 | $ | 6,986,528 | (0.6) | % | 2.1 | % |
Commercial and industrial | 3,878,767 | 3,920,771 | 4,033,367 | 4,024,879 | 4,030,750 | (1.1) | % | (3.8) | % | |||||
Real estate - residential mortgage | 3,642,822 | 3,396,690 | 3,183,585 | 3,087,529 | 2,975,516 | 7.2 | % | 22.4 | % | |||||
Real estate - home equity | 1,128,076 | 1,139,558 | 1,175,218 | 1,212,113 | 1,237,602 | (1.0) | % | (8.8) | % | |||||
Real estate - construction | 1,085,846 | 1,054,469 | 1,054,718 | 1,009,284 | 981,589 | 3.0 | % | 10.6 | % | |||||
Consumer | 452,844 | 451,486 | 459,038 | 468,678 | 464,851 | 0.3 | % | (2.6) | % | |||||
Equipment lease financing | 247,776 | 256,248 | 266,405 | 279,059 | 279,217 | (3.3) | % | (11.3) | % | |||||
Other(1)
|
(6,773) | (14,677) | (9,455) | (18,817) | (28,656) | 53.9 | % | 76.4 | % | |||||
Net Loans before PPP | 17,563,535 | 17,382,167 | 17,291,873 | 17,164,088 | 16,927,397 | 1.0 | % | 3.8 | % | |||||
PPP | 850,618 | 1,524,389 | 1,688,713 | 1,830,426 | 1,953,122 | (44.2) | % | (56.4) | % | |||||
Total Net Loans | $ | 18,414,153 | $ | 18,906,556 | $ | 18,980,586 | $ | 18,994,514 | $ | 18,880,519 | (2.6) | % | (2.5) | % |
Deposits, by type: | ||||||||||||||
Noninterest-bearing demand | $ | 7,439,644 | $ | 7,203,696 | $ | 6,672,832 | $ | 6,477,228 | $ | 6,270,683 | 3.3 | % | 18.6 | % |
Interest-bearing demand | 6,168,908 | 5,979,855 | 5,832,174 | 5,762,150 | 5,591,548 | 3.2 | % | 10.3 | % | |||||
Savings | 6,392,537 | 6,280,629 | 6,137,084 | 5,905,137 | 5,716,050 | 1.8 | % | 11.8 | % | |||||
Total demand and savings | 20,001,089 | 19,464,180 | 18,642,090 | 18,144,515 | 17,578,281 | 2.8 | % | 13.8 | % | |||||
Brokered | 270,168 | 297,815 | 324,364 | 340,451 | 314,721 | (9.3) | % | (14.2) | % | |||||
Time | 1,852,223 | 2,003,606 | 2,150,570 | 2,306,556 | 2,495,445 | (7.6) | % | (25.8) | % | |||||
Total Deposits | $ | 22,123,480 | $ | 21,765,601 | $ | 21,117,024 | $ | 20,791,522 | $ | 20,388,447 | 1.6 | % | 8.5 | % |
Short-term borrowings, by type: | ||||||||||||||
Customer funding | $ | 494,811 | $ | 514,025 | $ | 570,775 | $ | 622,623 | $ | 613,127 | (3.7) | % | (19.3) | % |
Total Short-term borrowings | $ | 494,811 | $ | 514,025 | $ | 570,775 | $ | 622,623 | $ | 613,127 | (3.7) | % | (19.3) | % |
(1) Consists of overdrafts and net origination fees and costs.
|
FULTON FINANCIAL CORPORATION | ||||||||||||
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||
dollars in thousands | ||||||||||||
Nine months ended September 30 | ||||||||||||
2021 | 2020 | |||||||||||
Average | Interest | Yield/ | Average | Interest | Yield/ | |||||||
Balance | (1) | Rate | Balance | (1) | Rate | |||||||
ASSETS | ||||||||||||
Interest-earning assets: | ||||||||||||
Net Loans | $ | 18,765,024 | $ | 485,330 | 3.46 | % | $ | 18,027,253 | $ | 498,455 | 3.69 | % |
Taxable investment securities | 2,619,411 | 41,345 | 1.93 | % | 2,165,180 | 44,615 | 2.75 | % | ||||
Tax-exempt investment securities | 969,946 | 22,557 | 3.10 | % | 804,484 | 19,596 | 3.24 | % | ||||
Total Investment Securities | 3,589,357 | 63,902 | 2.37 | % | 2,969,664 | 64,211 | 2.88 | % | ||||
Loans held for sale | 40,551 | 969 | 3.19 | % | 54,355 | 1,557 | 3.82 | % | ||||
Other interest-earning assets | 1,986,161 | 4,599 | 0.18 | % | 936,819 | 4,325 | 0.62 | % | ||||
Total Interest-earning Assets | 24,381,093 | 554,799 | 3.04 | % | 21,988,091 | 568,548 | 3.45 | % | ||||
Noninterest-earning assets: | ||||||||||||
Cash and due from banks | 150,435 | 143,496 | ||||||||||
Premises and equipment | 229,513 | 239,739 | ||||||||||
Other assets | 1,689,094 | 1,729,351 | ||||||||||
Less: ACL - loans(2)
|
(268,412) | (242,300) | ||||||||||
Total Assets | $ | 26,181,723 | $ | 23,858,377 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Interest-bearing liabilities: | ||||||||||||
Demand deposits | $ | 5,994,878 | $ | 2,905 | 0.06 | % | $ | 5,116,696 | $ | 9,933 | 0.26 | % |
Savings deposits | 6,271,019 | 3,944 | 0.08 | % | 5,431,071 | 12,788 | 0.31 | % | ||||
Brokered deposits | 297,250 | 876 | 0.39 | % | 300,795 | 1,935 | 0.86 | % | ||||
Time deposits | 2,001,043 | 16,383 | 1.09 | % | 2,626,802 | 33,533 | 1.71 | % | ||||
Total Interest-bearing Deposits | 14,564,190 | 24,108 | 0.22 | % | 13,475,364 | 58,189 | 0.58 | % | ||||
Short-term borrowings | 526,259 | 456 | 0.12 | % | 873,694 | 4,960 | 0.76 | % | ||||
Long-term borrowings | 839,396 | 23,006 | 3.66 | % | 1,240,253 | 28,468 | 3.06 | % | ||||
Total Interest-bearing Liabilities | 15,929,845 | 47,570 | 0.40 | % | 15,589,311 | 91,617 | 0.78 | % | ||||
Noninterest-bearing liabilities: | ||||||||||||
Demand deposits | 7,108,199 | 5,458,807 | ||||||||||
Other | 466,917 | 470,055 | ||||||||||
Total Liabilities | 23,504,961 | 21,518,173 | ||||||||||
Total Deposits/Cost of Deposits | 21,672,389 | 0.15 | % | 18,934,171 | 0.41 | % | ||||||
Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds") | 23,038,044 | 0.28 | % | 21,048,118 | 0.58 | % | ||||||
Shareholders' equity | 2,676,762 | 2,340,204 | ||||||||||
Total Liabilities and Shareholders' Equity | $ | 26,181,723 | $ | 23,858,377 | ||||||||
Net interest income/net interest margin (fully taxable equivalent) | 507,229 | 2.78 | % | 476,931 | 2.90 | % | ||||||
Tax equivalent adjustment | (9,111) | (9,315) | ||||||||||
Net interest income | $ | 498,118 | $ | 467,616 | ||||||||
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. | ||||||||||||
(2) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures. |
FULTON FINANCIAL CORPORATION | ||||||
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED): | ||||||
dollars in thousands | ||||||
Nine months ended September 30 | ||||||
2021 | 2020 | % Change | ||||
Loans, by type: | ||||||
Real estate - commercial mortgage | $ | 7,146,951 | $ | 6,870,148 | 4.0 | % |
Commercial and industrial | 3,943,736 | 4,308,559 | (8.5) | % | ||
Real estate - residential mortgage | 3,409,381 | 2,805,694 | 21.5 | % | ||
Real estate - home equity | 1,147,444 | 1,269,525 | (9.6) | % | ||
Real estate - construction | 1,065,125 | 950,845 | 12.0 | % | ||
Consumer | 454,434 | 465,661 | (2.4) | % | ||
Equipment lease financing | 256,741 | 282,800 | (9.2) | % | ||
Other(1)
|
(10,292) | 121 | N/M | |||
Net Loans before PPP | 17,413,520 | 16,953,353 | 2.7 | % | ||
PPP | 1,351,504 | 1,073,900 | 25.9 | % | ||
Total Net Loans | $ | 18,765,024 | $ | 18,027,253 | 4.1 | % |
Deposits, by type: | ||||||
Noninterest-bearing demand | $ | 7,108,199 | $ | 5,458,807 | 30.2 | % |
Interest-bearing demand | 5,994,878 | 5,116,696 | 17.2 | % | ||
Savings | 6,271,019 | 5,431,071 | 15.5 | % | ||
Total demand and savings | 19,374,096 | 16,006,574 | 21.0 | % | ||
Brokered | 297,250 | 300,795 | (1.2) | % | ||
Time | 2,001,043 | 2,626,802 | (23.8) | % | ||
Total Deposits | $ | 21,672,389 | $ | 18,934,171 | 14.5 | % |
Short-term borrowings, by type: | ||||||
Customer funding | 526,259 | 529,667 | (0.6) | % | ||
Federal funds purchased | - | 86,715 | N/M | |||
Short-term FHLB advances and other borrowings | - | 257,312 | N/M | |||
Total Short-term Borrowings | $ | 526,259 | $ | 873,694 | (39.8) | % |
N/M - Not meaningful | ||||||
(1) Consists of overdrafts and net origination fees and costs. |
FULTON FINANCIAL CORPORATION | ||||||||||||||
ASSET QUALITY INFORMATION (UNAUDITED) | ||||||||||||||
dollars in thousands | ||||||||||||||
Three months ended | Nine months ended | |||||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Sep 30 | Sep 30 | ||||||||
2021 | 2021 | 2021 | 2020 | 2020 | 2021 | 2020 | ||||||||
Allowance for credit losses related to Net Loans: | ||||||||||||||
Balance at beginning of period | $ | 255,032 | $ | 265,986 | $ | 277,567 | $ | 266,825 | $ | 256,537 | $ | 277,567 | $ | 163,620 |
Impact of adopting CECL | - | - | - | - | - | - | 45,724 | |||||||
Loans charged off: | ||||||||||||||
Commercial and industrial | (647) | (954) | (4,319) | (1,567) | (2,969) | (5,920) | (17,348) | |||||||
Real estate - commercial mortgage | (14) | (6,506) | (1,837) | (300) | (746) | (8,357) | (3,925) | |||||||
Consumer and home equity | (504) | (1,130) | (847) | (668) | (1,093) | (2,481) | (3,925) | |||||||
Real estate - residential mortgage | (602) | (496) | (192) | - | (198) | (1,290) | (620) | |||||||
Real estate - construction | - | - | (39) | - | - | (39) | (17) | |||||||
Equipment lease financing and other | (467) | (436) | (968) | (483) | (483) | (1,871) | (1,704) | |||||||
Total loans charged off | (2,234) | (9,522) | (8,202) | (3,018) | (5,489) | (19,958) | (27,539) | |||||||
Recoveries of loans previously charged off: | ||||||||||||||
Commercial and industrial | 2,330 | 693 | 769 | 4,581 | 2,103 | 3,792 | 6,815 | |||||||
Real estate - commercial mortgage | 564 | 729 | 174 | 588 | 100 | 1,467 | 439 | |||||||
Consumer and home equity | 504 | 634 | 440 | 594 | 491 | 1,578 | 1,786 | |||||||
Real estate - residential mortgage | 86 | 105 | 95 | 199 | 95 | 286 | 292 | |||||||
Real estate - construction | 697 | 254 | 384 | 179 | 4,873 | 1,335 | 4,943 | |||||||
Equipment lease financing and other | 358 | 153 | 159 | 219 | 185 | 670 | 385 | |||||||
Recoveries of loans previously charged off | 4,539 | 2,568 | 2,021 | 6,360 | 7,847 | 9,128 | 14,660 | |||||||
Net loans recovered (charged off) | 2,305 | (6,954) | (6,181) | 3,342 | 2,358 | (10,830) | (12,879) | |||||||
Provision for credit losses | (610) | (4,000) | (5,400) | 7,400 | 7,930 | (10,010) | 70,360 | |||||||
Balance at end of period | $ | 256,727 | $ | 255,032 | $ | 265,986 | $ | 277,567 | $ | 266,825 | $ | 256,727 | $ | 266,825 |
Net charge-offs (recoveries) to average loans (annualized) | (0.05) | % | 0.15 | % | 0.13 | % | (0.07) | % | (0.05) | % | 0.08 | % | 0.10 | % |
Allowance credit losses related to OBS Credit Exposures(1)
|
||||||||||||||
Balance at beginning of period | $ | 14,773 | $ | 14,273 | $ | 14,373 | $ | 15,533 | $ | 16,383 | ||||
Provision for credit losses | 10 | 500 | (100) | (1,160) | (850) | |||||||||
Balance at end of period | $ | 14,783 | $ | 14,773 | $ | 14,273 | $ | 14,373 | $ | 15,533 | ||||
NON-PERFORMING ASSETS: | ||||||||||||||
Non-accrual loans | $ | 138,833 | $ | 147,864 | $ | 143,889 | $ | 137,198 | $ | 128,321 | ||||
Loans 90 days past due and accruing | 11,389 | 5,865 | 8,559 | 9,929 | 13,761 | |||||||||
Total non-performing loans | 150,222 | 153,729 | 152,448 | 147,127 | 142,082 | |||||||||
Other real estate owned | 1,896 | 2,779 | 3,664 | 4,178 | 4,565 | |||||||||
Total non-performing assets | $ | 152,118 | $ | 156,508 | $ | 156,112 | $ | 151,305 | $ | 146,647 | ||||
NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||
Commercial and industrial | $ | 32,697 | $ | 33,522 | $ | 31,871 | $ | 32,610 | $ | 37,224 | ||||
Real estate - commercial mortgage | 52,100 | 53,693 | 54,164 | 52,647 | 43,426 | |||||||||
Real estate - residential mortgage | 37,077 | 38,185 | 36,152 | 30,793 | 28,287 | |||||||||
Consumer and home equity | 11,509 | 11,408 | 13,072 | 13,090 | 12,292 | |||||||||
Real estate - construction | 965 | 1,016 | 1,440 | 1,550 | 4,051 | |||||||||
Equipment lease financing and other | 15,874 | 15,905 | 15,749 | 16,437 | 16,802 | |||||||||
Total non-performing loans | $ | 150,222 | $ | 153,729 | $ | 152,448 | $ | 147,127 | $ | 142,082 | ||||
(1) The allowance for credit losses related to OBS Credit Exposures is presented in "other liabilities" on the consolidated balance sheets. | ||||||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) |
||||||||||
in thousands, except per share data and percentages | ||||||||||
Explanatory note: | This press release contains supplemental financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow: | |||||||||
Three months ended | ||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | ||||||
2021 | 2021 | 2021 | 2020 | 2020 | ||||||
Common shareholders' equity (tangible), per share | ||||||||||
Shareholders' equity | $ | 2,699,818 | $ | 2,692,958 | $ | 2,629,655 | $ | 2,616,828 | $ | 2,390,261 |
Less: Preferred stock | (192,878) | (192,878) | (192,878) | (192,878) | - | |||||
Less: Goodwill and intangible assets | (536,697) | (536,847) | (536,544) | (536,659) | (534,907) | |||||
Tangible common shareholders' equity (numerator) | $ | 1,970,243 | $ | 1,963,233 | $ | 1,900,233 | $ | 1,887,291 | $ | 1,855,354 |
Shares outstanding, end of period (denominator) | 161,429 | 162,988 | 162,518 | 162,350 | 162,134 | |||||
Common shareholders' equity (tangible), per share | $ | 12.21 | $ | 12.05 | $ | 11.69 | $ | 11.62 | $ | 11.44 |
Return on average common shareholders' equity (tangible) | ||||||||||
Net income available to common shareholders | $ | 73,021 | $ | 62,402 | $ | 70,472 | $ | 48,690 | $ | 61,611 |
Plus: Intangible amortization, net of tax | 118 | 140 | 90 | 104 | 103 | |||||
(Numerator) | $ | 73,139 | $ | 62,542 | $ | 70,562 | $ | 48,794 | $ | 61,714 |
Average shareholders' equity | $ | 2,722,833 | $ | 2,669,413 | $ | 2,637,098 | $ | 2,544,866 | $ | 2,374,091 |
Less: Average preferred stock | (192,878) | (192,878) | (192,878) | (127,639) | - | |||||
Less: Average goodwill and intangible assets | (536,772) | (536,470) | (536,601) | (535,474) | (534,971) | |||||
Average tangible common shareholders' equity (denominator) | $ | 1,993,183 | $ | 1,940,065 | $ | 1,907,619 | $ | 1,881,753 | $ | 1,839,120 |
Return on average common shareholders' equity (tangible), annualized | 14.56% | 12.93% | 15.00% | 10.32% | 13.35% | |||||
Tangible common equity to tangible assets (TCE Ratio) | ||||||||||
Shareholders' equity | $ | 2,699,818 | $ | 2,692,958 | $ | 2,629,655 | $ | 2,616,828 | $ | 2,390,261 |
Less: Preferred stock | (192,878) | (192,878) | (192,878) | (192,878) | - | |||||
Less: Goodwill and intangible assets | (536,697) | (536,847) | (536,544) | (536,659) | (534,907) | |||||
Tangible common shareholders' equity (numerator) | $ | 1,970,243 | $ | 1,963,233 | $ | 1,900,233 | $ | 1,887,291 | $ | 1,855,354 |
Total assets | $ | 26,390,832 | $ | 26,079,774 | $ | 25,892,990 | $ | 25,906,733 | $ | 25,543,281 |
Less: Goodwill and intangible assets | (536,697) | (536,847) | (536,544) | (536,659) | (534,907) | |||||
Total tangible assets (denominator) | $ | 25,854,135 | $ | 25,542,927 | $ | 25,356,446 | $ | 25,370,074 | $ | 25,008,374 |
Tangible common equity to tangible assets | 7.62% | 7.69% | 7.49% | 7.44% | 7.42% | |||||
Efficiency ratio | ||||||||||
Non-interest expense | $ | 144,596 | $ | 140,831 | $ | 178,384 | $ | 154,737 | $ | 139,145 |
Less: Amortization of tax credit investments | (1,546) | (1,563) | (1,531) | (1,532) | (1,694) | |||||
Less: Intangible amortization | (150) | (178) | (115) | (132) | (132) | |||||
Less: 2020 cost savings initiatives | - | - | - | (15,400) | (800) | |||||
Less: Debt extinguishment costs | - | (412) | (32,163) | - | - | |||||
Non-interest expense (numerator) | $ | 142,900 | $ | 138,678 | $ | 144,575 | $ | 137,673 | $ | 136,519 |
Net interest income | $ | 171,270 | $ | 162,399 | $ | 164,449 | $ | 161,591 | $ | 154,116 |
Tax equivalent adjustment | 3,114 | 3,018 | 2,979 | 2,987 | 2,990 | |||||
Plus: Total Non-interest income | 62,577 | 51,890 | 95,397 | 55,574 | 63,249 | |||||
Less: Investment securities gains, net | - | (36) | (33,475) | - | (2) | |||||
Total revenue (denominator) | $ | 236,961 | $ | 217,271 | $ | 229,350 | $ | 220,152 | $ | 220,353 |
Efficiency ratio | 60.3% | 63.8% | 63.0% | 62.5% | 62.0% |
Three months ended | ||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | ||||||
2021 | 2021 | 2021 | 2020 | 2020 | ||||||
Non-interest expenses to total average assets (annualized) | ||||||||||
Non-interest expense | $ | 144,596 | $ | 140,831 | $ | 178,384 | $ | 154,737 | $ | 139,145 |
Less: Amortization of tax credit investments | (1,546) | (1,563) | (1,531) | (1,532) | (1,694) | |||||
Less: Intangible amortization | (150) | (178) | (115) | (132) | (132) | |||||
Less: 2020 cost savings initiatives | - | - | - | (15,400) | (800) | |||||
Less: Debt extinguishment costs | - | (412) | (32,163) | - | - | |||||
Non-interest expense (numerator) | $ | 142,900 | $ | 138,678 | $ | 144,575 | $ | 137,673 | $ | 136,519 |
Total average assets (denominator) | $ | 26,440,876 | $ | 26,017,542 | $ | 26,082,816 | $ | 25,749,405 | $ | 25,169,508 |
Non-interest expenses to total average assets, (annualized) | 2.14 | % | 2.14 | % | 2.25 | % | 2.13 | % | 2.16 | % |
Asset Quality, excluding PPP | ||||||||||
Net loans recovered (charged-off) (numerator) | $ | 2,305 | $ | (6,954) | $ | (6,181) | $ | 3,342 | $ | 2,358 |
Average Net Loans | $ | 18,414,153 | $ | 18,906,556 | $ | 18,980,586 | $ | 18,994,514 | $ | 18,880,519 |
Less: Average PPP loans | (850,618) | (1,524,389) | (1,688,713) | (1,830,426) | (1,953,122) | |||||
Total adjusted average loans (denominator) | $ | 17,563,535 | $ | 17,382,167 | $ | 17,291,873 | $ | 17,164,088 | $ | 16,927,397 |
Net charge-offs (recoveries) to adjusted average loans (annualized) | (0.05)% | 0.16% | 0.14% | (0.08)% | (0.06)% | |||||
Non-performing loans (numerator) | $ | 150,222 | $ | 153,729 | $ | 152,448 | $ | 147,127 | $ | 142,082 |
Net Loans | $ | 18,269,407 | $ | 18,586,756 | $ | 18,990,986 | $ | 18,900,820 | $ | 19,028,621 |
Less: PPP loans | (590,447) | (1,114,401) | (1,688,394) | (1,581,712) | (1,960,165) | |||||
Total adjusted loans (denominator) | $ | 17,678,960 | $ | 17,472,355 | $ | 17,302,592 | $ | 17,319,108 | $ | 17,068,456 |
Non-performing loans to total adjusted loans | 0.85% | 0.88% | 0.88% | 0.85% | 0.83% | |||||
ACL - loans (numerator) | $ | 256,727 | $ | 255,032 | $ | 265,986 | $ | 277,567 | $ | 266,825 |
Net Loans | $ | 18,269,407 | $ | 18,586,756 | $ | 18,990,986 | $ | 18,900,820 | $ | 19,028,621 |
Less: PPP loans | (590,447) | (1,114,401) | (1,688,394) | (1,581,712) | (1,960,165) | |||||
Total adjusted loans (denominator) | $ | 17,678,960 | $ | 17,472,355 | $ | 17,302,592 | $ | 17,319,108 | $ | 17,068,456 |
ACL - loans to total adjusted loans | 1.45% | 1.46% | 1.54% | 1.60% | 1.56% | |||||
Pre-provision net revenue | ||||||||||
Net interest income | $ | 171,270 | $ | 162,399 | $ | 164,448 | $ | 161,591 | $ | 154,116 |
Non-interest income | 62,577 | 51,890 | 95,397 | 55,574 | 63,249 | |||||
Less: Investment securities gains, net | - | (36) | (33,475) | - | (2) | |||||
Total revenue | $ | 233,847 | $ | 214,253 | $ | 226,370 | $ | 217,165 | $ | 217,363 |
Non-interest expense | $ | 144,596 | $ | 140,831 | $ | 178,384 | $ | 154,737 | $ | 139,145 |
Less: Debt extinguishment | - | (412) | (32,163) | - | - | |||||
Less: Amortization on tax credit investments | (1,546) | (1,563) | (1,531) | (1,532) | (1,694) | |||||
Less: Intangible amortization | (150) | (178) | (115) | (132) | (132) | |||||
Total non-interest expense | $ | 142,900 | $ | 138,678 | $ | 144,575 | $ | 153,073 | $ | 137,319 |
Pre-provision net revenue | $ | 90,947 | $ | 75,575 | $ | 81,795 | $ | 64,092 | $ | 80,044 |
Note: numbers may not sum due to rounding. |