Fulton Financial Reports First Quarter Earnings of $0.22 per Share
/EINPresswire.com/ -- LANCASTER, PA -- (Marketwired) -- 04/19/16 -- Fulton Financial Corporation (NASDAQ: FULT)
- Diluted earnings per share for the first quarter of 2016 were 22 cents, unchanged from both the fourth quarter of 2015 and the first quarter of 2015. Pre-provision net revenue of $50.8 million was 6.6% lower than the fourth quarter of 2015 and 11.2% higher than the first quarter of 2015.
- Net interest income for the first quarter of 2016 increased $1.3 million, or 1.0 percent, compared to the fourth quarter of 2015 and $5.5 million, or 4.4 percent compared to first quarter of 2015.
- Net interest margin increased four basis points to 3.23 percent compared to the fourth quarter of 2015, and decreased four basis points compared to the first quarter of 2015.
- Loans at March 31, 2016 increased $32.1 million, or 0.2 percent, compared to December 31, 2015 and $755.2 million, or 5.8 percent, compared to March 31, 2015. Average loans for the first quarter of 2016 increased 1.4 percent and 5.8 percent compared to the fourth quarter of 2015 and the first quarter of 2015, respectively.
- Deposits at March 31, 2016 increased $272.0 million, or 1.9 percent, compared to December 31, 2015 and $889.8 million, or 6.6 percent, compared to March 31, 2015. Average deposits for the first quarter of 2016 decreased 0.1 percent compared to the fourth quarter of 2015, and increased 6.2 percent, compared to the first quarter of 2015.
- The provision for credit losses in the first quarter of 2016 was $1.5 million, compared to a $2.8 million provision in the fourth quarter of 2015 and a negative $3.7 million provision in the first quarter of 2015.
- Non-interest income, excluding investment securities gains, decreased $2.9 million, or 6.4 percent, in comparison to the fourth quarter of 2015, and increased $1.6 million, or 3.9 percent, in comparison to the first quarter of 2015.
- Non-interest expense increased $2.0 million, or 1.7 percent, compared to the fourth quarter of 2015 and $1.9 million, or 1.6 percent, compared to the first quarter of 2015.
Fulton Financial Corporation (NASDAQ: FULT) reported net income of $38.3 million, or 22 cents per diluted share, for the first quarter of 2016.
"Fulton's first quarter resulted in double digit pre-provision net revenue growth year-over-year, a clear reflection of our efforts to focus on organic growth and take advantage of the local market disruption," said E. Philip Wenger, Chairman, President and CEO. "Our commercial loan pipeline remains strong while our fee income businesses continue to build momentum, so we remain optimistic that we can create meaningful positive operating leverage in 2016."
Net Interest Income and Margin
Net interest income for the first quarter of 2016 increased $1.3 million, or 1.0 percent, from the fourth quarter of 2015. Net interest margin increased four basis points, or 1.3 percent, to 3.23 percent in the first quarter of 2016, from 3.19 percent in the fourth quarter of 2015. The average yield on interest-earning assets increased five basis points, while the average cost of interest-bearing liabilities increased one basis point, during the first quarter of 2016 in comparison to the fourth quarter of 2015.
Average Balance Sheet
Total average assets for the first quarter of 2016 were $18.0 billion, an increase of $194.3 million from the fourth quarter of 2015. Average loans, net of unearned income, increased $194.2 million, or 1.4 percent, in comparison to the fourth quarter of 2015. Average loans and yields, by type, for the first quarter of 2016 in comparison to the fourth quarter of 2015, are summarized in the following table:
Increase
Three Months Ended (decrease)
------------------------------------
March 31, 2016 December 31, 2015 in Balance
----------------- ----------------- ----------------
Yield Yield
Balance (1) Balance (1) $ %
----------- ----- ----------- ----- --------- -----
(dollars in thousands)
Average Loans, net
of unearned income,
by type:
Real estate -
commercial
mortgage $ 5,487,421 4.03% $ 5,365,640 4.05% $ 121,781 2.3%
Commercial -
industrial,
financial and
agricultural 4,095,268 3.79% 4,035,287 3.74% 59,981 1.5%
Real estate - home
equity 1,674,032 4.10% 1,694,455 4.07% (20,423) (1.2%)
Real estate -
residential
mortgage 1,381,409 3.78% 1,377,116 3.79% 4,293 0.3%
Real estate -
construction 792,014 3.82% 765,555 3.75% 26,459 3.5%
Consumer 263,295 5.53% 267,726 5.72% (4,431) (1.7%)
Leasing and other 159,981 7.46% 153,487 5.31% 6,494 4.2%
----------- ----- ----------- ----- --------- -----
Total Average
Loans, net of
unearned income $13,853,420 4.00% $13,659,266 3.96% $ 194,154 1.4%
=========== ===== =========== ===== ========= =====
(1) Presented on a fully-taxable equivalent basis using
a 35% Federal tax rate and statutory interest expense
disallowances.
Total average liabilities increased $172.3 million, or 1.1 percent, from the fourth quarter of 2015, while average deposits decreased $11.8 million, or 0.1 percent. Average deposits and interest rates, by type, for the first quarter of 2016 in comparison to the fourth quarter of 2015, are summarized in the following table:
Increase
Three Months Ended (decrease)
------------------------------------
March 31, 2016 December 31, 2015 in Balance
----------------- ----------------- ------------------
Balance Rate Balance Rate $ %
----------- ----- ----------- ----- ----------- -----
(dollars in thousands)
Average Deposits,
by type:
Noninterest-
bearing demand $ 3,967,887 -% $ 3,999,118 -% $ (31,231) (0.8%)
Interest-
bearing demand 3,438,355 0.17% 3,411,904 0.13% 26,451 0.8%
Savings
deposits 3,932,824 0.18% 3,903,741 0.17% 29,083 0.7%
----------- ----- ----------- ----- ----------- -----
Total average
demand and
savings 11,339,066 0.12% 11,314,763 0.10% 24,303 0.2%
Time deposits 2,867,651 1.04% 2,903,715 1.03% (36,064) (1.2%)
----------- ----- ----------- ----- ----------- -----
Total Average
Deposits $14,206,717 0.30% $14,218,478 0.29% $ (11,761) (0.1%)
=========== ===== =========== ===== =========== =====
Asset Quality
Non-performing assets were $148.1 million, or 0.82 percent of total assets, at March 31, 2016, compared to $155.9 million, or 0.87 percent of total assets, at December 31, 2015 and $163.5 million, or 0.94 percent of total assets, at March 31, 2015.
Annualized net charge-offs for the quarter ended March 31, 2016 were 0.20 percent of total average loans, compared to 0.02 percent for the quarter ended December 31, 2015 and 0.08 percent for the quarter ended March 31, 2015. The allowance for credit losses as a percentage of non-performing loans was 121.1 percent at March 31, 2016, as compared to 118.4 percent at December 31, 2015 and 120.3 percent at March 31, 2015.
During the first quarter of 2016, the Corporation recorded a $1.5 million provision for credit losses, compared to a $2.8 million provision for credit losses in the fourth quarter of 2015 and a negative $3.7 million provision in the first quarter of 2015.
Non-interest Income
Non-interest income, excluding investment securities gains, decreased $2.9 million, or 6.4 percent, in comparison to the fourth quarter of 2015. Other service charges and fees decreased $1.9 million, or 15.2 percent, due to decreases in commercial loan interest rate swap fees and debit card income. Service charges on deposits decreased $351,000, or 2.7 percent, due to a decrease in overdraft fee income. Mortgage banking income decreased $287,000, or 6.6 percent, due to lower servicing income.
Compared to the first quarter of 2015, non-interest income, excluding investment securities gains, increased $1.6 million, or 3.9 percent, due to increases in merchant fees, commercial loan interest rate swap fees, and other service charges and fees, partially offset by a decrease in mortgage banking income.
Gains on sales of investment securities increased $171,000 in comparison to the fourth quarter of 2015, and decreased $3.2 million from the first quarter of 2015, which included gains from the sales of two pooled trust preferred debt securities in 2015.
Non-interest Expense
Non-interest expense increased $2.0 million, or 1.7 percent, in the first quarter of 2016, compared to the fourth quarter of 2015. Salaries and employee benefits increased $3.9 million, or 6.0 percent, driven by seasonally higher payroll taxes and higher costs for certain benefits. Offsetting these increases were net decreases in multiple expense categories.
Compared to the first quarter of 2015, non-interest expense increased $2.0 million, or 1.6 percent, reflecting increases in salaries and employee benefits, data processing, and software costs partially offset by lower net occupancy expense, other real estate owned and repossession expense, equipment expense and professional fees.
About Fulton Financial
Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company that has banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates, headquartered as indicated: Fulton Bank, N.A., Lancaster, PA; Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Bethlehem, PA; FNB Bank, N.A., Danville, PA; Fulton Bank of New Jersey, Mt. Laurel, NJ; and The Columbia Bank, Columbia, MD.
The Corporation's investment management and trust services are offered at all banks through Fulton Financial Advisors, a division of Fulton Bank, N.A. Residential mortgage lending is offered by all banks under the Fulton Mortgage Company brand.
Additional information on Fulton Financial Corporation is available on the Internet at www.fult.com.
Safe Harbor Statement
This news 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" and similar expressions which are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, some of which are beyond the Corporation's control and ability to predict, that could cause actual results to differ materially from those expressed in the forward-looking statements.
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, 2015, which has been filed with the Securities and Exchange Commission and is available in the Investor Relations section of the Corporation's website (www.fult.com) and on the Securities and Exchange Commission's website (www.sec.gov). 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.
Non-GAAP Financial Measures
The Corporation uses certain non-GAAP financial measures in this earnings release. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this release.
http://media.marketwire.com/attachments/201604/95929_Q1EarningsCCPresentationMarketwired41816..pdf
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
% Change from
---------------------
March 31 March 31 December 31 March 31 December 31
2016 2015 2015 2015 2015
----------- ----------- ------------ -------- -----------
ASSETS
---------------
Cash and due
from banks $ 83,479 $ 91,870 $ 101,120 (9.1%) (17.4%)
Other
interest-
earning
assets 408,060 703,667 292,516 (42.0%) 39.5%
Loans held
for sale 19,719 34,124 16,886 (42.2%) 16.8%
Investment
securities 2,516,205 2,259,802 2,484,773 11.3% 1.3%
Loans, net of
unearned
income 13,870,701 13,115,505 13,838,602 5.8% 0.2%
Allowance for
loan losses (163,841) (177,701) (169,054) (7.8%) (3.1%)
----------- ----------- ------------
Net loans 13,706,860 12,937,804 13,669,548 5.9% 0.3%
Premises and
equipment 228,057 226,241 225,535 0.8% 1.1%
Accrued
interest
receivable 44,379 42,216 42,767 5.1% 3.8%
Goodwill and
intangible
assets 531,556 531,672 531,556 - -
Other assets 583,939 535,945 550,017 9.0% 6.2%
----------- ----------- ------------
Total
Assets $18,122,254 $17,363,341 $ 17,914,718 4.4% 1.2%
=========== =========== ============
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Deposits $14,404,280 $13,514,497 $ 14,132,317 6.6% 1.9%
Short-term
borrowings 352,883 410,105 497,663 (14.0%) (29.1%)
Other
liabilities 326,128 312,709 293,302 4.3% 11.2%
FHLB advances
and long-
term debt 965,654 1,094,517 949,542 (11.8%) 1.7%
----------- ----------- ------------
Total
Liabilities 16,048,945 15,331,828 15,872,824 4.7% 1.1%
Shareholders'
equity 2,073,309 2,031,513 2,041,894 2.1% 1.5%
----------- ----------- ------------
Total
Liabil-
ities and
Share-
holders'
Equity $18,122,254 $17,363,341 $ 17,914,718 4.4% 1.2%
=========== =========== ============
LOANS, DEPOSITS AND SHORT-
TERM BORROWINGS DETAIL:
---------------------------
Loans, by
type:
Real estate -
commercial
mortgage $ 5,558,108 $ 5,227,101 $ 5,462,330 6.3% 1.8%
Commercial -
industrial,
financial
and
agricultural 4,035,333 3,762,631 4,088,962 7.2% (1.3%)
Real estate -
home equity 1,659,481 1,701,623 1,684,439 (2.5%) (1.5%)
Real estate -
residential
mortgage 1,377,459 1,364,788 1,376,160 0.9% 0.1%
Real estate -
construction 810,872 677,806 799,988 19.6% 1.4%
Consumer 263,221 257,301 268,588 2.3% (2.0%)
Leasing and
other 166,227 124,255 158,135 33.8% 5.1%
----------- ----------- ------------
Total Loans,
net of
unearned
income $13,870,701 $13,115,505 $ 13,838,602 5.8% 0.2%
=========== =========== ============
Deposits, by
type:
Noninterest-
bearing
demand $ 4,134,861 $ 3,765,677 $ 3,948,114 9.8% 4.7%
Interest-
bearing
demand 3,430,206 3,133,748 3,451,207 9.5% (0.6%)
Savings
deposits 3,972,199 3,567,652 3,868,046 11.3% 2.7%
Time deposits 2,867,014 3,047,420 2,864,950 (5.9%) 0.1%
----------- ----------- ------------
Total
Deposits $14,404,280 $13,514,497 $ 14,132,317 6.6% 1.9%
=========== =========== ============
Short-term
borrowings, by
type:
Customer
repurchase
agreements $ 162,431 $ 161,886 $ 111,496 0.3% 45.7%
Customer
short-term
promissory
notes 76,807 93,176 78,932 (17.6%) (2.7%)
Short-term
FHLB
advances 81,000 155,000 110,000 (47.7%) (26.4%)
Federal funds
purchased 32,645 43 197,235 N/M (83.4%)
----------- ----------- ------------
Total Short-
term
Borrowings $ 352,883 $ 410,105 $ 497,663 (14.0%) (29.1%)
=========== =========== ============
N/M - Not
meaningful
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
in thousands, except per-share data and percentages
Three Months Ended % Change from
------------------------------ -------------------
Mar 31 Mar 31 Dec 31 Mar 31 Dec 31
2016 2015 2015 2015 2015
--------- --------- --------- -------- --------
Interest Income:
Interest income $ 149,311 $ 145,772 $ 147,560 2.4% 1.2%
Interest expense 20,257 22,191 19,761 (8.7%) 2.5%
--------- --------- ---------
Net Interest
Income 129,054 123,581 127,799 4.4% 1.0%
Provision for credit
losses 1,530 (3,700) 2,750 N/M (44.4%)
--------- --------- ---------
Net Interest
Income after
Provision 127,524 127,281 125,049 0.2% 2.0%
Non-Interest Income:
Service charges on
deposit accounts 12,558 11,569 12,909 8.5% (2.7%)
Investment
management and
trust services 10,988 10,889 10,919 0.9% 0.6%
Other service
charges and fees 10,750 9,363 12,676 14.8% (15.2%)
Mortgage banking
income 4,030 4,688 4,317 (14.0%) (6.6%)
Other 3,864 4,083 4,242 (5.4%) (8.9%)
--------- --------- ---------
Non-Interest
Income before
Investment
Securities Gains 42,190 40,592 45,063 3.9% (6.4%)
Investment
securities gains 947 4,145 776 (77.2%) 22.0%
--------- --------- ---------
Total Non-Interest
Income 43,137 44,737 45,839 (3.6%) (5.9%)
Non-Interest Expense:
Salaries and
employee benefits 69,372 64,990 65,467 6.7% 6.0%
Net occupancy
expense 12,220 13,692 11,566 (10.8%) 5.7%
Other outside
services 6,056 5,750 6,537 5.3% (7.4%)
Data processing 5,400 4,768 5,127 13.3% 5.3%
Software 3,921 3,318 4,068 18.2% (3.6%)
Equipment expense 3,371 3,958 3,626 (14.8%) (7.0%)
FDIC insurance
expense 2,949 2,822 2,896 4.5% 1.8%
Professional fees 2,333 2,871 2,814 (18.7%) (17.1%)
Marketing 1,624 1,233 1,754 31.7% (7.4%)
Other real estate
owned and
repossession
expense 638 1,362 1,123 (53.2%) (43.2%)
Operating risk loss 540 827 987 (34.7%) (45.3%)
Intangible
amortization - 130 6 N/M N/M
Other 11,989 12,757 12,468 (6.0%) (3.8%)
--------- --------- ---------
Total Non-Interest
Expense 120,413 118,478 118,439 1.6% 1.7%
--------- --------- ---------
Income before
Income Taxes 50,248 53,540 52,449 (6.1%) (4.2%)
Income tax expense 11,991 13,504 13,914 (11.2%) (13.8%)
--------- --------- ---------
Net Income $ 38,257 $ 40,036 $ 38,535 (4.4%) (0.7%)
========= ========= =========
PER SHARE:
Net income:
Basic $ 0.22 $ 0.22 $ 0.22 - -
Diluted 0.22 0.22 0.22 - -
Cash dividends $ 0.09 $ 0.09 $ 0.11 - (18.2%)
Shareholders' equity 11.96 11.34 11.72 5.5% 2.0%
Shareholders' equity
(tangible) 8.89 8.37 8.67 6.2% 2.5%
Weighted average
shares (basic) 173,331 178,471 173,709 (2.9%) (0.2%)
Weighted average
shares (diluted) 174,416 179,457 174,833 (2.8%) (0.2%)
Shares outstanding,
end of period 173,393 179,098 174,176 (3.2%) (0.4%)
SELECTED FINANCIAL
RATIOS:
Return on average
assets 0.86% 0.95% 0.86%
Return on average
shareholders'
equity 7.47% 8.05% 7.51%
Return on average
shareholders'
equity (tangible) 10.07% 10.96% 10.16%
Net interest margin 3.23% 3.27% 3.19%
Efficiency ratio 68.33% 70.16% 66.63%
N/M - Not meaningful
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Three Months Ended
--------------------------------------------
March 31, 2016
------------------------------------------
Average Yield/
Balance Interest (1) Rate
------------- ------------- ------------
ASSETS
-------------------------------
Interest-earning assets:
Loans, net of unearned income $ 13,853,420 $ 137,895 4.00%
Taxable investment securities 2,180,593 12,003 2.20%
Tax-exempt investment
securities 259,396 3,138 4.84%
Equity securities 14,386 218 6.10%
------------- ------------- ------------
Total Investment Securities 2,454,375 15,359 2.50%
Loans held for sale 12,252 131 4.28%
Other interest-earning assets 358,562 898 1.00%
------------- ------------- ------------
Total Interest-earning Assets 16,678,609 154,283 3.72%
Noninterest-earning assets:
Cash and due from banks 98,449
Premises and equipment 226,284
Other assets 1,137,292
Less: allowance for loan
losses (167,372)
-------------
Total Assets $ 17,973,262
=============
LIABILITIES AND SHAREHOLDERS'
EQUITY
-------------------------------
Interest-bearing liabilities:
Demand deposits $ 3,438,355 $ 1,494 0.17%
Savings deposits 3,932,824 1,804 0.18%
Time deposits 2,867,651 7,429 1.04%
------------- ------------- ------------
Total Interest-bearing
Deposits 10,238,830 10,727 0.42%
Short-term borrowings 445,402 268 0.24%
FHLB advances and long-term
debt 958,213 9,262 3.88%
------------- ------------- ------------
Total Interest-bearing
Liabilities 11,642,445 20,257 0.70%
Noninterest-bearing
liabilities:
Demand deposits 3,967,887
Other 304,131
-------------
Total Liabilities 15,914,463
Shareholders' equity 2,058,799
-------------
Total Liabilities and
Shareholders' Equity $ 17,973,262
=============
Net interest income/net interest margin
(fully taxable equivalent) 134,026 3.23%
============
Tax equivalent adjustment (4,972)
-------------
Net interest income $ 129,054
=============
Three Months Ended
---------------------------------------------
March 31, 2015
-------------------------------------------
Average Yield/
Balance Interest (1) Rate
-------------- ------------- ------------
ASSETS
-------------------------------
Interest-earning assets:
Loans, net of unearned income$ 13,095,528 $ 133,055 4.11%
Taxable investment securities 2,005,542 11,282 2.25%
Tax-exempt investment
securities 229,082 3,212 5.61%
Equity securities 32,210 450 5.66%
-------------- ------------- ------------
Total Investment Securities 2,266,834 14,944 2.64%
Loans held for sale 17,002 173 4.07%
Other interest-earning assets 474,033 2,105 1.78%
-------------- ------------- ------------
Total Interest-earning Assets 15,853,397 150,277 3.83%
Noninterest-earning assets:
Cash and due from banks 105,271
Premises and equipment 226,391
Other assets 1,114,078
Less: allowance for loan
losses (183,927)
--------------
Total Assets $ 17,115,210
==============
LIABILITIES AND SHAREHOLDERS'
EQUITY
-------------------------------
Interest-bearing liabilities:
Demand deposits $ 3,135,927 $ 983 0.13%
Savings deposits 3,517,057 1,119 0.13%
Time deposits 3,061,593 7,721 1.02%
-------------- ------------- ------------
Total Interest-bearing
Deposits 9,714,577 9,823 0.41%
Short-term borrowings 309,215 77 0.10%
FHLB advances and long-term
debt 1,124,074 12,291 4.40%
-------------- ------------- ------------
Total Interest-bearing
Liabilities 11,147,866 22,191 0.80%
Noninterest-bearing
liabilities:
Demand deposits 3,662,040
Other 289,341
--------------
Total Liabilities 15,099,247
Shareholders' equity 2,015,963
--------------
Total Liabilities and
Shareholders' Equity $ 17,115,210
==============
Net interest income/net
interest margin (fully
taxable equivalent) 128,086 3.27%
============
Tax equivalent adjustment (4,505)
-------------
Net interest income $ 123,581
=============
Three Months Ended
--------------------------------------------
December 31, 2015
--------------------------------------------
Average Yield/
Balance Interest (1) Rate
--------------- --------------- ----------
ASSETS
-------------------------------
Interest-earning assets:
Loans, net of unearned income$ 13,659,266 $ 136,317 3.96%
Taxable investment securities 2,170,397 11,801 2.17%
Tax-exempt investment
securities 246,727 3,085 5.00%
Equity securities 15,524 208 5.33%
--------------- --------------- ----------
Total Investment Securities 2,432,648 15,094 2.48%
Loans held for sale 15,713 169 4.31%
Other interest-earning assets 399,309 864 0.86%
--------------- --------------- ----------
Total Interest-earning Assets 16,506,936 152,444 3.67%
Noninterest-earning assets:
Cash and due from banks 106,810
Premises and equipment 226,335
Other assets 1,108,094
Less: allowance for loan
losses (169,251)
---------------
Total Assets $ 17,778,924
===============
LIABILITIES AND SHAREHOLDERS'
EQUITY
-------------------------------
Interest-bearing liabilities:
Demand deposits $ 3,411,904 $ 1,207 0.13%
Savings deposits 3,903,741 1,633 0.17%
Time deposits 2,903,715 7,549 1.03%
--------------- --------------- ----------
Total Interest-bearing
Deposits 10,219,360 10,389 0.40%
Short-term borrowings 281,497 100 0.14%
FHLB advances and long-term
debt 950,792 9,272 3.88%
--------------- --------------- ----------
Total Interest-bearing
Liabilities 11,451,649 19,761 0.69%
Noninterest-bearing
liabilities:
Demand deposits 3,999,118
Other 291,388
---------------
Total Liabilities 15,742,155
Shareholders' equity 2,036,769
---------------
Total Liabilities and
Shareholders' Equity $ 17,778,924
===============
Net interest income/net
interest margin (fully
taxable equivalent) 132,683 3.19%
==========
Tax equivalent adjustment (4,884)
---------------
Net interest income $ 127,799
===============
(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and
statutory interest expense disallowances.
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
--------------------------------------------------------------------------
Three Months Ended % Change from
------------------------------------ ---------------------
March 31 March 31 December 31 March 31 December 31
2016 2015 2015 2015 2015
----------- ----------- ------------ -------- -----------
Loans, by type:
Real estate -
commercial
mortgage $ 5,487,421 $ 5,163,845 $ 5,365,640 6.3% 2.3%
Commercial -
industrial,
financial
and
agricultural 4,095,268 3,770,187 4,035,287 8.6% 1.5%
Real estate -
home equity 1,674,032 1,721,300 1,694,455 (2.7%) (1.2%)
Real estate -
residential
mortgage 1,381,409 1,370,376 1,377,116 0.8% 0.3%
Real estate -
construction 792,014 688,690 765,555 15.0% 3.5%
Consumer 263,295 259,138 267,726 1.6% (1.7%)
Leasing and
other 159,981 121,992 153,487 31.1% 4.2%
----------- ----------- ------------
Total Loans,
net of
unearned
income $13,853,420 $13,095,528 $ 13,659,266 5.8% 1.4%
=========== =========== ============
Deposits, by
type:
Noninterest-
bearing
demand $ 3,967,887 $ 3,662,040 $ 3,999,118 8.4% (0.8%)
Interest-
bearing
demand 3,438,355 3,135,927 3,411,904 9.6% 0.8%
Savings
deposits 3,932,824 3,517,057 3,903,741 11.8% 0.7%
Time deposits 2,867,651 3,061,593 2,903,715 (6.3%) (1.2%)
----------- ----------- ------------
Total
Deposits $14,206,717 $13,376,617 $ 14,218,478 6.2% (0.1%)
=========== =========== ============
Short-term
borrowings, by
type:
Customer
repurchase
agreements $ 171,408 $ 173,625 $ 142,004 (1.3%) 20.7%
Customer
short-term
promissory
notes 74,013 86,258 80,568 (14.2%) (8.1%)
Federal funds
purchased 183,970 25,054 44,468 634.3% 313.7%
Short-term
FHLB
advances and
other
borrowings 16,011 24,278 14,457 (34.1%) 10.7%
----------- ----------- ------------
Total Short-
term
Borrowings $ 445,402 $ 309,215 $ 281,497 44.0% 58.2%
=========== =========== ============
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
Three Months Ended
-------------------------------------------
Mar 31 Mar 31 Dec 31
2016 2015 2015
------------- ------------- -------------
ALLOWANCE FOR CREDIT LOSSES:
-------------------------------
Balance at beginning of
period $ 171,412 $ 185,931 $ 169,395
Loans charged off:
Commercial - industrial,
financial and agricultural (6,188) (1,863) (970)
Consumer and home equity (2,548) (1,548) (1,466)
Real estate - residential
mortgage (1,068) (1,281) (513)
Real estate - commercial
mortgage (582) (709) (1,207)
Real estate - construction (326) - 0
Leasing and other (443) (363) (1,304)
------------- ------------- -------------
Total loans charged off (11,155) (5,764) (5,460)
Recoveries of loans
previously charged off:
Commercial - industrial,
financial and agricultural 2,319 786 1,409
Consumer and home equity 534 492 825
Real estate - residential
mortgage 136 159 775
Real estate - commercial
mortgage 825 436 1,072
Real estate - construction 383 1,147 548
Leasing and other 81 171 98
------------- ------------- -------------
Recoveries of loans
previously charged off 4,278 3,191 4,727
------------- ------------- -------------
Net loans charged off (6,877) (2,573) (733)
Provision for credit losses 1,530 (3,700) 2,750
------------- ------------- -------------
Balance at end of period $ 166,065 $ 179,658 $ 171,412
============= ============= =============
Net charge-offs to average
loans (annualized) 0.20% 0.08% 0.02%
============= ============= =============
NON-PERFORMING ASSETS:
-------------------------------
Non-accrual loans $ 122,170 $ 129,929 $ 129,523
Loans 90 days past due and
accruing 15,013 19,365 15,291
------------- ------------- -------------
Total non-performing loans 137,183 149,294 144,814
Other real estate owned 10,946 14,251 11,099
------------- ------------- -------------
Total non-performing assets $ 148,129 $ 163,545 $ 155,913
============= ============= =============
NON-PERFORMING LOANS, BY TYPE:
-------------------------------
Real estate - commercial
mortgage $ 43,132 $ 46,331 $ 41,170
Commercial - industrial,
financial and agricultural 39,140 43,265 44,071
Real estate - residential
mortgage 25,182 28,595 28,484
Consumer and home equity 16,210 16,939 17,123
Real estate - construction 12,005 14,140 12,460
Leasing 1,514 24 1,506
------------- ------------- -------------
Total non-performing loans $ 137,183 $ 149,294 $ 144,814
============= ============= =============
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:
---------------------------------------------
Real-estate - residential
mortgage $ 27,565 $ 31,574 $ 28,511
Real-estate - commercial
mortgage 17,427 23,468 17,563
Consumer and home equity 6,562 3,118 4,589
Commercial - industrial,
financial and agricultural 5,650 6,975 5,953
Real estate - construction 3,092 7,791 3,942
------------- ------------- -------------
Total accruing TDRs 60,296 72,926 60,558
Non-accrual TDRs (1) 27,277 29,392 31,035
------------- ------------- -------------
Total TDRs $ 87,573 $ 102,318 $ 91,593
============= ============= =============
(1) Included within non-accrual
loans above.
DELINQUENCY RATES, BY TYPE:
Mar 31, 2016 Mar 31, 2015 Dec 31, 2015
------------------- ------------------- -------------------
≥90 ≥90 ≥90
31-89 Days 31-89 Days 31-89 Days
Days (2) Total Days (2) Total Days (2) Total
----- ------- ----- ----- ------- ----- ----- ------- -----
Real estate -
commercial
mortgage 0.15% 0.78% 0.93% 0.50% 0.89% 1.39% 0.14% 0.77% 0.91%
Commercial -
industrial,
financial and
agricultural 0.49% 0.97% 1.46% 0.26% 1.15% 1.41% 0.21% 1.06% 1.27%
Real estate -
construction 0.52% 1.48% 2.00% 0.31% 2.09% 2.40% 0.28% 1.59% 1.87%
Real estate -
residential
mortgage 1.27% 1.83% 3.10% 1.75% 2.10% 3.85% 1.33% 2.07% 3.40%
Consumer, home
equity,
leasing and
other 0.63% 0.85% 1.48% 0.92% 0.81% 1.73% 0.70% 0.88% 1.58%
----- ------- ----- ----- ------- ----- ----- ------- -----
Total 0.45% 0.99% 1.44% 0.62% 1.14% 1.76% 0.37% 1.04% 1.41%
===== ======= ===== ===== ======= ===== ===== ======= =====
(2) Includes non-accrual loans
ASSET QUALITY RATIOS:
-------------------------------
Mar 31 Mar 31 Dec 31
2016 2015 2015
-------------- -------------- --------------
Non-accrual loans to total
loans 0.88% 0.99% 0.94%
Non-performing loans to total
loans 0.99% 1.14% 1.05%
Non-performing assets to
total loans and OREO 1.07% 1.25% 1.13%
Non-performing assets to
total assets 0.82% 0.94% 0.87%
Allowance for credit losses
to loans outstanding 1.20% 1.37% 1.24%
Allowance for credit losses
to non-performing loans 121.05% 120.34% 118.37%
Non-performing assets to
tangible common
shareholders'equity and
allowance for credit losses
8.67% 9.74% 9.27%
FULTON FINANCIAL CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (UNAUDITED)
in thousands, except per share data and percentages
Explanatory This press release contains supplemental financial
note: 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
-------------------------------------------
March 31 March 31 December 31
2016 2015 2015
------------- ------------- -------------
Shareholders' equity
(tangible), per share
-------------------------------
Shareholders' equity $ 2,073,309 $ 2,031,513 $ 2,041,894
Less: Goodwill and intangible
assets (531,556) (531,672) (531,556)
------------- ------------- -------------
Tangible shareholders' equity
(numerator) $ 1,541,753 $ 1,499,841 $ 1,510,338
============= ============= =============
Shares outstanding, end of
period (denominator) 173,393 179,098 174,176
============= ============= =============
Shareholders' equity
(tangible), per share $ 8.89 $ 8.37 $ 8.67
============= ============= =============
Return on average common
shareholders' equity
(tangible)
-------------------------------
Net income $ 38,257 $ 40,036 $ 38,535
Plus: Intangible
amortization, net of tax - 85 4
------------- ------------- -------------
Numerator $ 38,257 $ 40,121 $ 38,539
============= ============= =============
Average shareholders' equity $ 2,058,799 $ 2,015,963 2,036,769
Less: Average goodwill and
intangible assets (531,556) (531,732) (531,559)
------------- ------------- -------------
Average tangible
shareholders' equity
(denominator) $ 1,527,243 $ 1,484,231 $ 1,505,210
============= ============= =============
Return on average common
shareholders' equity
(tangible), annualized 10.07% 10.96% 10.16%
============= ============= =============
Efficiency ratio
-------------------------------
Non-interest expense $ 120,413 $ 118,478 $ 118,439
Less: Intangible amortization - (130) (6)
------------- ------------- -------------
Numerator $ 120,413 $ 118,348 $ 118,433
============= ============= =============
Net interest income (fully
taxable equivalent) $ 134,026 $ 128,086 $ 132,683
Plus: Total Non-interest
income 43,137 44,737 45,839
Less: Investment securities
gains (947) (4,145) (776)
------------- ------------- -------------
Denominator $ 176,216 $ 168,678 $ 177,746
============= ============= =============
Efficiency ratio 68.33% 70.16% 66.63%
============= ============= =============
Non-performing assets to
tangible common
shareholders' equity and
allowance for credit losses
-------------------------------
Non-performing assets
(numerator) $ 148,129 $ 163,545 $ 155,913
============= ============= =============
Tangible shareholders' equity $ 1,541,753 $ 1,499,841 $ 1,510,338
Plus: Allowance for credit
losses 166,065 179,658 171,412
------------- ------------- -------------
Tangible shareholders' equity
and allowance for credit
losses (denominator) $ 1,707,818 $ 1,679,499 $ 1,681,750
============= ============= =============
Non-performing assets to
tangible common
shareholders' equity and
allowance for credit
losses 8.67% 9.74% 9.27%
============= ============= =============
Pre-provision net revenue
-------------------------------
Net interest income $ 129,054 $ 123,581 $ 127,799
Non-interest income 43,137 44,737 45,839
Less: Investment securities
gains (947) (4,145) (776)
------------- ------------- -------------
Total revenue $ 171,244 $ 164,173 $ 172,862
============= ============= =============
Non-interest expense $ 120,413 $ 118,478 $ 118,439
============= ============= =============
Pre-provision net revenue $ 50,831 $ 45,695 $ 54,423
============= ============= =============
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