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Section 1: 8-K (8-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
    
Date of Report (date of earliest event reported):
April 16, 2019

Fulton Financial Corporation
(Exact name of Registrant as specified in its Charter)

Pennsylvania
0-10587
23-2195389
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification Number)
One Penn Square
Lancaster, Pennsylvania
 
17604
(Address of principal executive offices)
 
(Zip Code)
Registrant's telephone number, including area code: 717-291-2411
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
     £  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
     £  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
     £  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
     £  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company £

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. £







Item 2.02 - Results of Operations and Financial Condition

On April 16, 2019, Fulton Financial Corporation (the "Corporation") issued a press release (the "Press Release") announcing its results of operations for the first quarter ended March 31, 2019. A copy of the Press Release and supplementary financial information which accompanied the Press Release, are attached as Exhibits 99.1 and 99.2, respectively, to this Current Report and are incorporated herein by reference. The Corporation also posted on its Investor Relations website, www.fult.com, presentation materials the Corporation intends to use during a conference call and webcast to discuss those results on Wednesday, April 17, 2019 at 10:00 a.m. Eastern Time. A copy of the presentation materials is attached as Exhibit 99.3 to this Current Report and is incorporated herein by reference.    

Forward-Looking Statements

This Current Report on Form 8-K, including the Exhibits hereto, 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. Statements relating to the "outlook" or "2019 Outlook" contained in Exhibit 99.3 to this Current Report are forward looking statements. These forward looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, 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, they 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, 2018, 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).

Item 9.01 Financial Statements And Exhibits
(d)    Exhibits.

Exhibit No.
Description
Press Release dated April 16, 2019.
Supplementary financial information for the quarter ended March 31, 2019.
Presentation materials to be discussed during the conference call and webcast on April 17, 2019.






SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date: April 16, 2019
FULTON FINANCIAL CORPORATION

 
By:  /s/ Mark R. McCollom                     
 
       Mark R. McCollom
 
       Senior Executive Vice President and
 
       Chief Financial Officer




(Back To Top)

Section 2: EX-99.1 (PRESS RELEASE DATED APRIL 16, 2019)

Exhibit
Exhibit 99.1

FULTON FINANCIAL
CORPORATION


FOR IMMEDIATE RELEASE
Media Contact: Laura Wakeley (717) 291-2616
Investor Contact: Jason Weber (717) 327-2394


Fulton Financial reports first quarter net income of $56.7 million, or $0.33 per share

(April 16, 2019) - Lancaster, PA - Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income of $56.7 million, or $0.33 per diluted share, for the first quarter of 2019.

“Overall, I am pleased with our first quarter results as we saw seasonally strong loan growth to start the year with stable credit conditions and a five basis point increase in our net interest margin,” said E. Philip Wenger, Chairman and CEO. “We look forward to building off the first quarter momentum by continuing to execute on our corporate strategies that will allow us to grow earnings and enhance shareholder value”.

Net income per diluted share was unchanged from the $0.33 reported for the fourth quarter of 2018 and increased 17.9% from the first quarter of 2018.

Net Interest Income and Balance Sheet
Net interest income for the first quarter of 2019 was $163.3 million, slightly higher than the fourth quarter of 2018, as the positive impact of a five basis point increase in the net interest margin, to 3.49%, and an increase in average loans, was largely offset by two fewer days of interest accruals during the first quarter of 2019 in comparison to the fourth quarter of 2018. The improvement in the net interest margin resulted from a thirteen basis point increase in the average yield on interest-earning assets which outpaced the nine basis point increase in the average cost of funds.

Total average assets for the first quarter of 2019 were $20.7 billion, an increase of $178.2 million from the fourth quarter of 2018. Average loans, net of unearned income, increased $228.7 million, or 1.4%, in comparison to the fourth quarter of 2018.





Average loans and yields, by type, for the first quarter of 2019 in comparison to the fourth quarter of 2018 are summarized in the following table:
 
Three Months Ended
 

 
March 31, 2019
 
December 31, 2018
 
Growth
 
Balance
 
Yield (1)
 
Balance
 
Yield (1)
 
$
 
%
 
(dollars in thousands)
Average Loans, net of unearned income, by type:
 
 
 
 
 
 
 
 
 
 
 
    Real estate - commercial mortgage
$
6,378,145

 
4.69
%
 
$
6,343,024

 
4.57
%
 
$
35,121

 
0.6
 %
    Commercial - industrial, financial, and agricultural
4,462,609

 
4.66
%
 
4,329,937

 
4.51
%
 
132,672

 
3.1
 %
    Real estate - residential mortgage
2,276,611

 
4.06
%
 
2,209,993

 
4.01
%
 
66,618

 
3.0
 %
    Real estate - home equity
1,433,574

 
5.33
%
 
1,459,647

 
5.19
%
 
(26,073
)
 
(1.8
)%
    Real estate - construction
930,246

 
4.83
%
 
931,724

 
4.63
%
 
(1,478
)
 
(0.2
)%
    Consumer
424,480

 
4.49
%
 
406,436

 
4.57
%
 
18,044

 
4.4
 %
    Leasing
276,949

 
4.40
%
 
274,134

 
4.63
%
 
2,815

 
1.0
 %
    Other
11,761

 
N/A

 
10,742

 
N/A

 
1,019

 
9.5
 %
Total Average Loans, net of unearned income
$
16,194,375

 
4.65
%
 
$
15,965,637

 
4.54
%
 
$
228,738

 
1.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
(1) Presented on a fully-taxable equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances.
    
Total average liabilities increased $194.8 million, or 1.1%, from the fourth quarter of 2018, while average deposits decreased $137.4 million, or 0.8%. Average deposits and interest rates, by type, for the first quarter of 2019 in comparison to the fourth quarter of 2018 are summarized in the following table:
 
Three Months Ended
 

 
March 31, 2019
 
December 31, 2018
 
Growth
 
Balance
 
Rate
 
Balance
 
Rate
 
$
 
%
 
(dollars in thousands)
Average Deposits, by type:
 
 
 
 
 
 
 
 
 
 
 
    Noninterest-bearing demand
$
4,222,875

 
%
 
$
4,321,776

 
%
 
$
(98,901
)
 
(2.3
)%
    Interest-bearing demand
4,153,984

 
0.73
%
 
4,225,157

 
0.70
%
 
(71,173
)
 
(1.7
)%
    Savings and money market deposits
4,912,856

 
0.82
%
 
4,979,712

 
0.78
%
 
(66,856
)
 
(1.3
)%
Total average demand and savings
13,289,715

 
0.53
%
 
13,526,645

 
0.50
%
 
(236,930
)
 
(1.8
)%
    Brokered deposits
220,115

 
2.55
%
 
164,280

 
2.34
%
 
55,835

 
34.0
 %
    Time deposits
2,765,803

 
1.59
%
 
2,722,141

 
1.46
%
 
43,662

 
1.6
 %
Total Average Deposits
$
16,275,633

 
0.74
%
 
$
16,413,066

 
0.68
%
 
$
(137,433
)
 
(0.8
)%

Asset Quality
The provision for credit losses for the first quarter of 2019 was $5.1 million, compared to $8.2 million for the fourth quarter of 2018.
Non-performing assets were $147.7 million, or 0.70% of total assets, at March 31, 2019, compared to $150.2 million, or 0.73% of total assets, at December 31, 2018 and $145.4 million, or 0.73% of total assets, at March 31, 2018.




Annualized net charge-offs for the quarter ended March 31, 2019 were 0.10% of total average loans, compared to 0.17% and 0.10% for the quarters ended December 31, 2018 and March 31, 2018, respectively. The allowance for credit losses as a percentage of non-performing loans was 123% at March 31, 2019, compared to 121% at December 31, 2018 and a 131% at March 31, 2018.

Non-interest Income    
Non-interest income in the first quarter of 2019, excluding investment securities gains, was $46.7 million, a decrease of $2.8 million, or 5.7%, in comparison to the fourth quarter of 2018 and an increase of $0.8 million, or 1.8%, compared to the first quarter of 2018. Seasonal decreases occurred in consumer fees, specifically overdraft fees and card income. In addition, commercial fees showed a decrease in Small Business Administration lending income and commercial loan interest rate swap fees.

Non-interest Expense
Non-interest expense was $137.8 million in the first quarter of 2019, a decrease of $2.9 million, or 2.0%, compared to the fourth quarter of 2018 and an increase of $1.2 million, or 0.9%, compared to the first quarter of 2018. The decrease in amortization of tax credit investments resulted from $4.9 million of amortization of a tax credit investment in the fourth quarter of 2018 that generated a corresponding credit to income taxes. Excluding the amortization of this tax credit investment in the fourth quarter, non-interest expense increased $2.0 million, or 1.5%, in the first quarter of 2019, which was driven by increases in salaries and employee benefits, specifically a seasonal increase in payroll taxes, marketing and professional fees. These increases were partially offset by a decrease in other outside services.
In the first quarter of 2019, the Corporation incurred $1.0 million of costs related to the consolidation of eight branches, unchanged from the fourth quarter of 2018. Expenses related to charter consolidation efforts were $1.5 million in the first quarter of 2019, a $600,000 increase from the fourth quarter of 2018.
Income Tax Expense
The effective income tax rate for the first quarter of 2019 was 15.6%, as compared to 8.6% for the fourth quarter of 2018. Excluding the impact of the aforementioned tax credit, the effective income tax rate for the fourth quarter would have been 14.6%.
Additional information on Fulton 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," “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, 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, they 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, 2018, 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).

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.



(Back To Top)

Section 3: EX-99.2 (SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED MAR 31, 2019)

Exhibit
FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
 
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
 
 
 
 
 
 
 
dollars in thousands, except per-share data and percentages
 
 
 
 
 
 
 
 
Three Months Ended
 
 
Mar 31
 
Dec 31
 
Sep 30
 
Jun 30
 
Mar 31
 
 
2019
 
2018
 
2018
 
2018
 
2018
 
Ending Balances
 
 
 
 
 
 
 
 
 
 
Investments
$
2,748,249

 
$
2,686,973

 
$
2,635,413

 
$
2,593,283

 
$
2,592,823

 
Loans, net of unearned income
16,262,633

 
16,165,800

 
15,925,093

 
15,792,969

 
15,696,284

 
Total assets
20,974,649

 
20,682,152

 
20,364,810

 
20,172,539

 
19,948,941

 
Deposits
16,377,978

 
16,376,159

 
16,249,014

 
15,599,799

 
15,477,103

 
Shareholders' equity
2,301,019

 
2,247,573

 
2,283,014

 
2,245,785

 
2,235,493

 
 
 
 
 
 
 
 
 
 
 
 
Average Balances
 
 
 
 
 
 
 
 
 
 
Investments
$
2,699,130

 
$
2,646,266

 
$
2,596,414

 
$
2,601,705

 
$
2,556,986

 
Loans, net of unearned income
16,194,375

 
15,965,637

 
15,862,143

 
15,768,377

 
15,661,032

 
Total assets
20,690,365

 
20,512,130

 
20,273,232

 
20,063,375

 
19,876,093

 
Deposits
16,275,633

 
16,413,066

 
15,967,234

 
15,517,424

 
15,420,312

 
Shareholders' equity
2,265,097

 
2,281,669

 
2,269,093

 
2,246,904

 
2,224,615

 
 
 
 
 
 
 
 
 
 
 
 
Income Statement
 
 
 
 
 
 
 
 
 
 
Net interest income
$
163,315

 
$
162,944

 
$
160,127

 
$
156,067

 
$
151,318

 
Provision for credit losses
5,100

 
8,200

 
1,620

 
33,117

 
3,970

 
Non-interest income
46,751

 
49,523

 
51,033

 
49,094

 
45,875

 
Non-interest expense
137,824

 
140,685

 
135,413

 
133,345

 
136,661

 
Income before taxes
67,142

 
63,582

 
74,127

 
38,699

 
56,562

 
Net income
56,663

 
58,083

 
65,633

 
35,197

 
49,480

 
Pre-provision net revenue(1)
73,775

 
78,320

 
77,370

 
73,449

 
62,150

 
 
 
 
 
 
 
 
 
 
 
 
Per Share
 
 
 
 
 
 
 
 
 
 
Net income (basic)
$
0.33

 
$
0.33

 
$
0.37

 
$
0.20

 
$
0.28

 
Net income (diluted)
0.33

 
0.33

 
0.37

 
0.20

 
0.28

 
Cash dividends
0.13

 
0.16

 
0.12

 
0.12

 
0.12

 
Tangible common equity(1)
10.39

 
10.08

 
9.95

 
9.75

 
9.71

 
Weighted average shares (basic)
169,884

 
174,571

 
175,942

 
175,764

 
175,303

 
Weighted average shares (diluted)
170,909

 
175,473

 
177,128

 
176,844

 
176,568

 
 
 
 
 
 
 
 
 
 
 
 
Asset Quality
 
 
 
 
 
 
 
 
 
 
Net charge-offs to average loans (annualized)
0.10%

 
0.17%

 
0.08%

 
1.01%

 
0.10%

 
Non-performing loans to total loans
0.85%

 
0.86%

 
0.75%

 
0.78%

 
0.86%

 
Non-performing assets to total assets
0.70%

 
0.73%

 
0.64%

 
0.67%

 
0.73%

 
Allowance for credit losses to loans outstanding
1.05%

 
1.05%

 
1.05%

 
1.07%

 
1.12%

 
Allowance for loan losses to loans outstanding
1.00
%
 
0.99
%
 
0.99
%
 
0.99
%
 
1.04
%
 
Allowance for credit losses to non-performing loans
123%

 
121
%
 
140
%
 
137
%
 
131
%
 
Allowance for loan losses to non-performing loans
117%

 
115
%
 
131
%
 
126
%
 
121
%
 
Non-performing assets to tangible shareholders' equity
     and allowance for credit losses(1)
7.63%

 
7.97%

 
6.81%

 
7.16%

 
7.73%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



Profitability
 
 
 
 
 
 
 
 
 
 
Return on average assets
1.11
%
 
1.12
%
 
1.28
%
 
0.70
%
 
1.01
%
 
Return on average shareholders' equity
10.15%

 
10.10%

 
11.48%

 
6.28%

 
9.02%

 
Return on average shareholders' equity (tangible)(1)
13.28%

 
13.17%

 
14.99%

 
8.23%

 
11.85%

 
Net interest margin
3.49
%
 
3.44
%
 
3.42
%
 
3.39
%
 
3.35
%
 
Efficiency ratio(1)
63.9
%
 
62.2
%
 
62.5
%
 
63.3
%
 
67.5
%
 
 
 
 
 
 
 
 
 
 
 
 
Capital Ratios
 
 
 
 
 
 
 
 
 
 
Tangible common equity ratio(1)
8.64
%
 
8.52
%
 
8.83
%
 
8.73
%
 
8.78
%
 
Tier 1 leverage ratio(2)
9.00%

 
9.01%

 
9.34

 
9.20%

 
9.21
%
 
Common equity Tier 1 capital ratio(2)
10.30
%
 
10.22
%
 
10.80
%
 
10.60
%
 
10.59
%
 
Tier 1 capital ratio(2)
10.30
%
 
10.22
%
 
10.80
%
 
10.60
%
 
10.59
%
 
Total risk-based capital ratio(2)
12.80
%
 
12.75
%
 
13.34
%
 
13.18
%
 
13.22
%
 
 
 
 
 
 
 
 
 
 
 
 
(1) Please refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this document.
 
(2) Regulatory capital ratios as of March 31, 2019 are preliminary and remaining periods are actual.
 
 
 
 
 
 
 
 
 
 
 
 





Exhibit 99.2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
 
 
 
 
 
 
dollars in thousands
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 % Change from
 
 
Mar 31
 
Dec 31
 
Sep 30
 
Jun 30
 
Mar 31
 
Dec 31
 
Mar 31
 
 
2019
 
2018
 
2018
 
2018
 
2018
 
2018
 
2018
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
115,884

 
$
103,436

 
$
90,361

 
$
99,742

 
$
100,151

 
12.0
 %
 
15.7
 %
 
Other interest-earning assets
411,037

 
421,534

 
388,256

 
364,802

 
267,806

 
(2.5
)%
 
53.5
 %
 
Loans held for sale
27,768

 
27,099

 
27,525

 
35,898

 
23,450

 
2.5
 %
 
18.4
 %
 
Investment securities
2,748,249

 
2,686,973

 
2,635,413

 
2,593,283

 
2,592,823

 
2.3
 %
 
6.0
 %
 
Loans, net of unearned income
16,262,633

 
16,165,800

 
15,925,093

 
15,792,969

 
15,696,284

 
0.6
 %
 
3.6
 %
 
Allowance for loan losses
(162,109
)
 
(160,537
)
 
(157,810
)
 
(156,050
)
 
(163,217
)
 
1.0
 %
 
(0.7
)%
 
     Net loans
16,100,524

 
16,005,263

 
15,767,283

 
15,636,919

 
15,533,067

 
0.6
 %
 
3.7
 %
 
Premises and equipment
239,004

 
234,529

 
231,236

 
230,195

 
230,313

 
1.9
 %
 
3.8
 %
 
Accrued interest receivable
62,207

 
58,879

 
58,584

 
55,208

 
53,060

 
5.7
 %
 
17.2
 %
 
Goodwill and intangible assets
535,356

 
531,556

 
531,556

 
531,556

 
531,556

 
0.7
 %
 
0.7
 %
 
Other assets
734,620

 
612,883

 
634,596

 
624,936

 
616,715

 
19.9
 %
 
19.1
 %
 
    Total Assets
$
20,974,649

 
$
20,682,152

 
$
20,364,810

 
$
20,172,539

 
$
19,948,941

 
1.4
 %
 
5.1
 %
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
$
16,377,978

 
$
16,376,159

 
$
16,249,014

 
$
15,599,799

 
$
15,477,103

 
 %
 
5.8
 %
 
Short-term borrowings
829,016

 
754,777

 
485,565

 
983,833

 
937,852

 
9.8
 %
 
(11.6
)%
 
Other liabilities
401,324

 
311,364

 
355,102

 
351,174

 
359,994

 
28.9
 %
 
11.5
 %
 
FHLB advances and long-term debt
1,065,312

 
992,279

 
992,115

 
991,948

 
938,499

 
7.4
 %
 
13.5
 %
 
    Total Liabilities
18,673,630

 
18,434,579

 
18,081,796

 
17,926,754

 
17,713,448

 
1.3
 %
 
5.4
 %
 
Shareholders' equity
2,301,019

 
2,247,573

 
2,283,014

 
2,245,785

 
2,235,493

 
2.4
 %
 
2.9
 %
 
    Total Liabilities and Shareholders' Equity
$
20,974,649

 
$
20,682,152

 
$
20,364,810

 
$
20,172,539

 
$
19,948,941

 
1.4
 %
 
5.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
 
 
 
 
 
 
 
 
 
 
 
 
Loans, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
6,428,688

 
$
6,434,285

 
$
6,337,984

 
$
6,304,475

 
$
6,332,508

 
(0.1
)%
 
1.5
 %
 
Commercial - industrial, financial and agricultural
4,429,538

 
4,404,548

 
4,288,823

 
4,264,602

 
4,299,072

 
0.6
 %
 
3.0
 %
 
Real estate - residential mortgage
2,313,908

 
2,251,044

 
2,173,548

 
2,094,530

 
1,976,524

 
2.8
 %
 
17.1
 %
 
Real estate - home equity
1,413,500

 
1,452,137

 
1,469,152

 
1,491,395

 
1,514,241

 
(2.7
)%
 
(6.7
)%
 
Real estate - construction
953,087

 
916,599

 
979,857

 
990,705

 
976,131

 
4.0
 %
 
(2.4
)%
 
Consumer
433,545

 
419,186

 
390,708

 
360,315

 
326,766

 
3.4
 %
 
32.7
 %
 
Leasing and other
290,367

 
288,001

 
285,021

 
286,947

 
271,042

 
0.8
 %
 
7.1
 %
 
Total Loans, net of unearned income
$
16,262,633

 
$
16,165,800

 
$
15,925,093

 
$
15,792,969

 
$
15,696,284

 
0.6
 %
 
3.6
 %
Deposits, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand
$
4,255,043

 
$
4,310,105

 
$
4,216,064

 
$
4,324,659

 
$
4,291,821

 
(1.3
)%
 
(0.9
)%
 
Interest-bearing demand
4,207,442

 
4,240,974

 
4,289,181

 
3,854,680

 
3,984,423

 
(0.8
)%
 
5.6
 %
 
Savings and money market accounts
4,907,346

 
4,926,937

 
4,878,982

 
4,597,510

 
4,487,277

 
(0.4
)%
 
9.4
 %
 
Total demand and savings
13,369,831

 
13,478,016

 
13,384,227

 
12,776,849

 
12,763,521

 
(0.8
)%
 
4.8
 %
 
Brokered deposits
251,395

 
176,239

 
164,601

 
161,447

 
64,195

 
42.6
 %
 
N/M

 
Time deposits
2,756,752

 
2,721,904

 
2,700,186

 
2,661,503

 
2,649,387

 
1.3
 %
 
4.1
 %
 
Total Deposits
$
16,377,978

 
$
16,376,159

 
$
16,249,014

 
$
15,599,799

 
$
15,477,103

 
 %
 
5.8
 %
Short-term borrowings, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer repurchase agreements
$
54,440

 
$
43,499

 
$
82,741

 
$
152,594

 
$
165,186

 
25.2
 %
 
(67.0
)%
 
Customer short-term promissory notes
299,576

 
326,278

 
267,824

 
303,239

 
342,666

 
(8.2
)%
 
(12.6
)%
 
Short-term FHLB advances
475,000

 
385,000

 
85,000

 
185,000

 
35,000

 
23.4
 %
 
N/M

 
Federal funds purchased

 

 
50,000

 
343,000

 
395,000

 
 %
 
(100.0
)%
 
Total Short-term Borrowings
$
829,016

 
$
754,777

 
$
485,565

 
$
983,833

 
$
937,852

 
9.8
 %
 
(11.6
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N/M - Not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 





FULTON FINANCIAL CORPORATION
 
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
 
dollars in thousands
 
 
 
 
 
 
Three Months Ended
 
 % Change from
 
 
 
 
 
 
Mar 31
 
Dec 31
 
Sep 30
 
Jun 30
 
Mar 31
 
Dec 31
 
Mar 31
 
 
 
 
 
 
2019
 
2018
 
2018
 
2018
 
2018
 
2018
 
2018
 
 
Interest Income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
 
$
204,700

 
$
200,609

 
$
194,048

 
$
186,170

 
$
177,687

 
2.0
 %
 
15.2
 %
 
 
 
Interest expense
 
 
41,385

 
37,665

 
33,921

 
30,103

 
26,369

 
9.9
 %
 
56.9
 %
 
 
 
    Net Interest Income
 
 
163,315

 
162,944

 
160,127

 
156,067

 
151,318

 
0.2
 %
 
7.9
 %
 
 
 
Provision for credit losses
 
 
5,100

 
8,200

 
1,620

 
33,117

 
3,970

 
(37.8
)%
 
28.5
 %
 
 
 
    Net Interest Income after Provision
 
 
158,215

 
154,744

 
158,507

 
122,950

 
147,348

 
2.2
 %
 
7.4
 %
 
 
Non-Interest Income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wealth management fees
 
 
13,239

 
13,408

 
13,066

 
12,803

 
12,871

 
(1.3
)%
 
2.9
 %
 
 
 
Mortgage banking income
 
 
4,772

 
4,774

 
4,896

 
5,163

 
4,193

 
 %
 
13.8
 %
 
 
 
Consumer banking income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Card income
 
 
4,686

 
4,966

 
5,382

 
4,708

 
4,441

 
(5.6
)%
 
5.5
 %
 
 
 
   Overdraft fees
 
 
4,104

 
4,653

 
4,443

 
4,268

 
4,241

 
(11.8
)%
 
(3.2
)%
 
 
 
   Other consumer banking income
 
 
2,587

 
2,799

 
2,840

 
2,955

 
2,726

 
(7.6
)%
 
(5.1
)%
 
 
 
     Total consumer banking income
 
 
11,377

 
12,418

 
12,665

 
11,931

 
11,408

 
(8.4
)%
 
(0.3
)%
 
 
 
Commercial banking income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Merchant and card income
 
 
5,558

 
5,656

 
6,307

 
6,155

 
5,308

 
(1.7
)%
 
4.7
 %
 
 
 
   Cash management fees
 
 
4,361

 
4,340

 
4,472

 
4,452

 
4,317

 
0.5
 %
 
1.0
 %
 
 
 
   Commercial loan interest rate swap fees
 
 
2,028

 
2,540

 
3,607

 
2,393

 
1,291

 
(20.2
)%
 
57.1
 %
 
 
 
   Other commercial banking income
 
 
2,816

 
3,466

 
3,154

 
3,431

 
3,040

 
(18.8
)%
 
(7.4
)%
 
 
 
     Total commercial banking income
 
 
14,763

 
16,002

 
17,540

 
16,431

 
13,956

 
(7.7
)%
 
5.8
 %
 
 
 
Other income
 
 
2,535

 
2,921

 
2,852

 
2,762

 
3,428

 
(13.2
)%
 
(26.1
)%
 
 
 
     Non-interest income before investment securities gains
 
 
46,686

 
49,523

 
51,019

 
49,090

 
45,856

 
(5.7
)%
 
1.8
 %
 
 
 
Investment securities gains, net
 
 
65

 

 
14

 
4

 
19

 
N/M

 
N/M

 
 
 
    Total Non-Interest Income
 
 
46,751

 
49,523

 
51,033

 
49,094

 
45,875

 
(5.6
)%
 
1.9
 %
 
 
Non-Interest Expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
 
77,757

 
75,745

 
76,770

 
74,919

 
75,768

 
2.7
 %
 
2.6
 %
 
 
 
Net occupancy expense
 
 
12,909

 
12,708

 
12,578

 
12,760

 
13,632

 
1.6
 %
 
(5.3
)%
 
 
 
Data processing and software
 
 
10,353

 
10,203

 
10,157

 
10,453

 
10,473

 
1.5
 %
 
(1.1
)%
 
 
 
Other outside services
 
 
8,352

 
8,944

 
9,122

 
7,568

 
8,124

 
(6.6
)%
 
2.8
 %
 
 
 
Professional fees
 
 
3,960

 
3,546

 
3,427

 
2,372

 
4,816

 
11.7
 %
 
(17.8
)%
 
 
 
Equipment expense
 
 
3,342

 
3,275

 
3,000

 
3,434

 
3,534

 
2.0
 %
 
(5.4
)%
 
 
 
FDIC insurance expense
 
 
2,609

 
2,563

 
2,814

 
2,663

 
2,953

 
1.8
 %
 
(11.6
)%
 
 
 
Marketing
 
 
2,160

 
1,577

 
2,692

 
2,335

 
2,250

 
37.0
 %
 
(4.0
)%
 
 
 
Amortization of tax credit investments
 
 
1,491

 
6,538

 
1,637

 
1,637

 
1,637

 
(77.2
)%
 
(8.9
)%
 
 
 
Intangible amortization
 
 
107

 

 

 

 

 
100.0
 %
 
100.0
 %
 
 
 
Other
 
 
14,784

 
15,586

 
13,216

 
15,204

 
13,474

 
(5.1
)%
 
9.7
 %
 
 
 
    Total Non-Interest Expense
 
 
137,824

 
140,685

 
135,413

 
133,345

 
136,661

 
(2.0
)%
 
0.9
 %
 
 
 
    Income Before Income Taxes
 
 
67,142

 
63,582

 
74,127

 
38,699

 
56,562

 
5.6
 %
 
18.7
 %
 
 
 
Income tax expense
 
 
10,479

 
5,499

 
8,494

 
3,502

 
7,082

 
90.6
 %
 
48.0
 %
 
 
 
    Net Income
 
 
$
56,663

 
$
58,083

 
$
65,633

 
$
35,197

 
$
49,480

 
(2.4
)%
 
14.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PER SHARE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Basic
 
 
$
0.33

 
$
0.33

 
$
0.37

 
$
0.20

 
$
0.28

 
 %
 
17.9
 %
 
 
 
    Diluted
 
 
0.33

 
0.33

 
0.37

 
0.20

 
0.28

 
 %
 
17.9
 %
 
 
 
Cash dividends
 
 
0.13

 
0.16

 
0.12

 
0.12

 
0.12

 
(18.8
)%
 
8.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares (basic)
 
 
169,884

 
174,571

 
175,942

 
175,764

 
175,303

 
(2.7
)%
 
(3.1
)%
 
 
 
Weighted average shares (diluted)
 
 
170,909

 
175,473

 
177,128

 
176,844

 
176,568

 
(2.6
)%
 
(3.2
)%
 
 
N/M - not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 







FULTON FINANCIAL CORPORATION
 
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
 
 
 
 Three Months Ended
 
 
March 31, 2019
 
December 31, 2018
 
March 31, 2018
 
 
 
Average
 
 
 
Yield/
 
Average
 
 
 
Yield/
 
Average
 
 
 
Yield/
 
 
 
Balance
 
Interest (1)
 
Rate
 
Balance
 
Interest (1)
 
Rate
 
Balance
 
Interest (1)
 
Rate
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income
$
16,194,375

 
$
186,122

 
4.65%
 
$
15,965,637

 
$
182,358

 
4.54%
 
$
15,661,032

 
$
162,262

 
4.19%
 
 
Taxable investment securities
2,285,724

 
15,435

 
2.70%
 
2,283,897

 
15,005

 
2.63%
 
2,198,838

 
13,193

 
2.40%
 
 
Tax-exempt investment securities
444,132

 
4,150

 
3.71%
 
426,872

 
3,978

 
3.71%
 
412,830

 
3,753

 
3.64%
 
 
Equity securities

 

 
—%
 

 

 
—%
 
509

 
5

 
3.93%
 
 
Total Investment Securities
2,729,856

 
19,585

 
2.87%
 
2,710,769

 
18,983

 
2.80%
 
2,612,177

 
16,951

 
2.60%
 
 
Loans held for sale
16,434

 
240

 
5.85%
 
22,361

 
271

 
4.85%
 
20,015

 
216

 
4.31%
 
 
Other interest-earning assets
366,175

 
2,002

 
2.20%
 
492,529

 
2,177

 
1.76%
 
302,783

 
1,172

 
1.55%
 
 
Total Interest-earning Assets
19,306,840

 
207,949

 
4.35%
 
19,191,296

 
203,789

 
4.22%
 
18,596,007

 
180,601

 
3.93%
 
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
110,693

 
 
 
 
 
111,252

 
 
 
 
 
105,733

 
 
 
 
 
 
Premises and equipment
237,124

 
 
 
 
 
233,445

 
 
 
 
 
230,247

 
 
 
 
 
 
Other assets
1,197,034

 
 
 
 
 
1,131,548

 
 
 
 
 
1,113,326

 
 
 
 
 
 
Less: allowance for loan losses
(161,326
)
 
 
 
 
 
(155,411
)
 
 
 
 
 
(169,220
)
 
 
 
 
 
 
Total Assets
$
20,690,365

 
 
 
 
 
$
20,512,130

 
 
 
 
 
$
19,876,093

 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
$
4,153,984

 
$
7,519

 
0.73%
 
$
4,225,157

 
$
7,448

 
0.70%
 
$
3,958,894

 
$
4,004

 
0.41%
 
 
Savings deposits
4,912,856

 
9,962

 
0.82%
 
4,979,712

 
9,745

 
0.78%
 
4,494,445

 
4,367

 
0.39%
 
 
Brokered deposits
220,115

 
1,382

 
2.55%
 
164,280

 
969

 
2.34%
 
74,026

 
276

 
1.51%
 
 
Time deposits
2,765,803

 
10,826

 
1.59%
 
2,722,141

 
9,997

 
1.46%
 
2,646,779

 
7,803

 
1.20%
 
 
Total Interest-bearing Deposits
12,052,758

 
29,689

 
1.00%
 
12,091,290

 
28,159

 
0.92%
 
11,174,144

 
16,450

 
0.60%
 
 
Short-term borrowings
820,054

 
3,582

 
1.76%
 
504,550

 
1,410

 
1.11%
 
896,839

 
2,041

 
0.91%
 
 
FHLB advances and long-term debt
1,002,463

 
8,114

 
3.26%
 
988,914

 
8,096

 
3.26%
 
987,315

 
7,878

 
3.21%
 
 
Total Interest-bearing Liabilities
13,875,275

 
41,385

 
1.21%
 
13,584,754

 
37,665

 
1.10%
 
13,058,298

 
26,369

 
0.82%
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
4,222,875

 
 
 
 
 
4,321,776

 
 
 
 
 
4,246,168

 
 
 
 
 
 
Other
327,118

 
 
 
 
 
323,931

 
 
 
 
 
347,012

 
 
 
 
 
 
Total Liabilities
18,425,268

 
 
 
 
 
18,230,461

 
 
 
 
 
17,651,478

 
 
 
 
 
 
Shareholders' equity
2,265,097

 
 
 
 
 
2,281,669

 
 
 
 
 
2,224,615

 
 
 
 
 
 
Total Liabilities and Shareholders' Equity
$
20,690,365

 
 
 
 
 
$
20,512,130

 
 
 
 
 
$