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Fulton Financial Reports Fourth Quarter and 2018 Results

LANCASTER, Pa.--(BUSINESS WIRE)--

Fulton Financial Corporation (FULT) (the “Corporation”) reported net income of $58.1 million, or $0.33 per diluted share, for the fourth quarter of 2018, and net income of $208.4 million, or $1.18 per diluted share, for 2018.

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"Overall, 2018 was another good year for Fulton as we continued to execute on our growth strategies and benefited from multiple interest rate hikes from the Federal Reserve which translated into record levels of revenue and earnings,” said E. Philip Wenger, Chairman and CEO. “I’m extremely proud of our team’s hard work this year, and continued focus on driving shareholder value. We look forward to 2019 and believe we are well-positioned for an even better year.”

Net Interest Income and Margin

Net interest income for the fourth quarter of 2018 increased $2.8 million, or 1.8%, from the third quarter of 2018 and net interest margin increased two basis points, to 3.44%. The average yield on interest-earning assets and the average cost of interest-bearing liabilities each increased nine basis points. The nine basis point increase in the average yield on interest-earning assets was primarily due to a ten basis point increase in loan yields. The nine basis point increase in the average cost of interest-bearing liabilities reflected an 11 basis point increase in the cost of interest-bearing deposits.

For the year ended December 31, 2018, net interest income increased $55.1 million, or 9.6%, from 2017. Net interest margin increased 12 basis points, to 3.40%. The average yield on interest-earning assets increased 29 basis points and the average cost of interest-bearing liabilities increased 22 basis points from 2017.

Balance Sheet

Total average assets for the fourth quarter of 2018 were $20.5 billion, an increase of $238.9 million from the third quarter of 2018. Average loans, net of unearned income, increased $103.5 million, or 0.7%, in comparison to the third quarter of 2018. Average loans and yields, by type, for the fourth quarter of 2018 in comparison to the third quarter of 2018 are summarized in the following table:

    Three Months Ended    
December 31, 2018   September 30, 2018 Growth
Balance   Yield (1) Balance   Yield (1) $ %

 

(dollars in thousands)

Average Loans, net of unearned income, by type:
Real estate - commercial mortgage $ 6,343,024 4.57 % $ 6,309,663 4.46 % $ 33,361 0.5 %
Commercial - industrial, financial and agricultural 4,329,937 4.51 % 4,304,320 4.36 % 25,617 0.6 %
Real estate - residential mortgage 2,209,993 4.01 % 2,142,977 3.96 % 67,016 3.1 %
Real estate - home equity 1,459,647 5.19 % 1,474,011 4.99 % (14,364 ) (1.0 %)
Real estate - construction 931,724 4.63 % 969,575 4.58 % (37,851 ) (3.9 %)
Consumer 406,436 4.57 % 375,656 4.50 % 30,780 8.2 %
Leasing 274,134 4.63 % 276,456 4.66 % (2,322 ) (0.8 %)
Other   10,742 N/A     9,485 N/A     1,257   13.3 %
Total Average Loans, net of unearned income $ 15,965,637 4.54 % $ 15,862,143 4.44 % $ 103,494   0.7 %
 
(1) Presented on a fully-taxable equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
N/A - Not applicable

For the year ended December 31, 2018, average loans increased $578.7 million, or 3.8%, compared to 2017. Ending loans at December 31, 2018 increased $240.7 million, or 1.5%, compared to September 30, 2018 and increased $397.6 million, or 2.5%, compared to December 31, 2017.

Total average liabilities increased $226.3 million, or 1.3%, from the third quarter of 2018, while average deposits increased $445.8 million, or 2.8%. Average deposits and interest rates, by type, for the fourth quarter of 2018 in comparison to the third quarter of 2018 are summarized in the following table:

    Three Months Ended    
December 31, 2018   September 30, 2018 Growth
Balance   Rate Balance   Rate $ %
(dollars in thousands)
Average Deposits, by type:
Noninterest-bearing demand $ 4,321,776 - % $ 4,298,020 - % $ 23,756 0.6 %
Interest-bearing demand 4,225,157 0.70 % 4,116,051 0.61 % 109,106 2.7 %
Savings and money market deposits   4,979,712 0.78 %   4,718,148 0.64 %   261,564 5.5 %
Total average demand and savings 13,526,645 0.50 % 13,132,219 0.42 % 394,426 3.0 %
Brokered deposits 164,280 2.34 % 162,467 2.05 % 1,813 1.1 %
Time deposits   2,722,141 1.46 %   2,672,548 1.34 %   49,593 1.9 %
 
Total Average Deposits $ 16,413,066 0.68 % $ 15,967,234 0.59 % $ 445,832 2.8 %

For the year ended December 31, 2018, average deposits increased $351.4 million, or 2.3%, compared to 2017. Ending deposits at December 31, 2018 increased $127.1 million, or 0.8%, compared to September 30, 2018 and increased $578.6 million, or 3.7%, compared to December 31, 2017.

Asset Quality

Non-performing assets were $150.2 million, or 0.73% of total assets, at December 31, 2018, compared to $130.8 million, or 0.64% of total assets, at September 30, 2018 and $144.6 million, or 0.72% of total assets, at December 31, 2017.

Annualized net charge-offs for the quarter ended December 31, 2018 were 0.17% of total average loans compared to 0.08% for the quarter ended September 30, 2018. The allowance for credit losses as a percentage of non-performing loans was 121% at December 31, 2018, as compared to 140% at September 30, 2018 and 131% at December 31, 2017.

During the fourth quarter of 2018, the Corporation recorded an $8.2 million provision for credit losses, compared to a $1.6 million provision for credit losses in the third quarter of 2018. For the year ended December 31, 2018, the provision for credit losses was $46.9 million, an increase of $23.6 million from 2017.

The increases in non-performing loans and the provision for credit losses during the fourth quarter of 2018 were primarily the result of a single relationship, including commercial loans and leases.

Non-interest Income

Non-interest income in the fourth quarter of 2018, excluding investment securities gains, decreased $1.5 million, or 2.9%, in comparison to the third quarter of 2018. This decline was due primarily to decreases in commercial loan interest rate swap fees and merchant fees. The decline was partially offset by gains in investment management and trust services income and small business administration (SBA) lending income.

For the year ended December 31, 2018, non-interest income, excluding investment securities gains, decreased $3.4 million, or 1.7%, primarily due to a $5.1 million net gain recognized upon the settlement of litigation in 2017 and decreases in commercial loan interest rate swap fees, overdraft fees, SBA lending income and mortgage banking income, which included a $1.3 million mortgage servicing rights valuation allowance reversal in 2017. Partially offsetting these decreases were increases in investment management and trust services income, merchant fees, and credit and debit card income.

Non-interest Expense

Non-interest expense increased $5.3 million, or 3.9%, in the fourth quarter of 2018, compared to the third quarter of 2018. Amortization of tax credit investments increased $4.9 million, due to the amortization of a tax credit investment that generated a corresponding credit to income taxes in the quarter. The $2.4 million increase in other expenses, due primarily to branch consolidation costs and other real estate owned expense, was partially offset by a decrease in marketing expense.

For the year ended December 31, 2018, non-interest expense increased $20.5 million, or 3.9%, compared to 2017. This increase was primarily due to increases in salaries and employee benefits, other outside services, data processing and software, net occupancy expense and professional fees.

Income Tax Expense

The effective income tax rate for the fourth quarter of 2018 was 8.6%, as compared to 11.5% for the third quarter of 2018. The decrease in the effective income tax rate resulted mainly from the aforementioned tax credit and lower income before income taxes.

The effective income tax rate for the year ended December 31, 2018 was 10.5% compared to 26.7% in 2017, due primarily to the new federal corporate income tax rate, which became effective January 1, 2018.

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," “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 related 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, 2017 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2018, June 30, 2018 and September 30, 2018, which have been filed with the Securities and Exchange Commission and are 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.

 
FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
in thousands, except per-share data and percentages
Three Months Ended
Dec 31   Sep 30   Jun 30   Mar 31   Dec 31
  2018     2018     2018     2018     2017  

Ending Balances

Investments $ 2,686,973 $ 2,635,413 $ 2,593,283 $ 2,592,823 $ 2,547,956
Loans, net of unearned income 16,165,800 15,925,093 15,792,969 15,696,284 15,768,247
Total assets 20,682,152 20,364,810 20,172,539 19,948,941 20,036,905
Deposits 16,376,159 16,249,014 15,599,799 15,477,103 15,797,532
Shareholders' equity 2,247,573 2,283,014 2,245,785 2,235,493 2,229,857
 

Average Balances

Investments $ 2,646,266 $ 2,596,414 $ 2,601,705 $ 2,556,986 $ 2,566,337
Loans, net of unearned income 15,965,637 15,862,143 15,768,377 15,661,032 15,560,185
Total assets 20,512,130 20,273,232 20,063,375 19,876,093 20,072,579
Deposits 16,413,066 15,967,234 15,517,424 15,420,312 16,056,789
Shareholders' equity 2,281,669 2,269,093 2,246,904 2,224,615 2,237,031
 

Income Statement

Net interest income $ 162,944 $ 160,127 $ 156,067 $ 151,318 $ 149,413
Provision for credit losses 8,200 1,620 33,117 3,970 6,730
Non-interest income 49,523 51,033 49,094 45,875 56,956
Non-interest expense 140,685 135,413 133,345 136,661 138,452
Income before taxes 63,582 74,127 38,699 56,562 61,187
Net income 58,083 65,633 35,197 49,480 34,001
Pre-provision net revenue(1) 78,320 77,370 73,449 62,150 69,361
 

Per Share

Net income (basic) $ 0.33 $ 0.37 $ 0.20 $ 0.28 $ 0.19
Net income (diluted) 0.33 0.37 0.20 0.28 0.19
Cash dividends 0.16 0.12 0.12 0.12 0.14
Tangible common equity(1) 10.08 9.95 9.75 9.71 9.70
Weighted average shares (basic) 174,571 175,942 175,764 175,303 175,132
Weighted average shares (diluted) 175,473 177,128 176,844 176,568 176,374
 

Asset Quality

Net charge-offs to average loans (annualized) 0.17 % 0.08 % 1.01 % 0.10 % 0.14 %
Non-performing loans to total loans 0.86 % 0.75 % 0.78 % 0.86 % 0.85 %
Non-performing assets to total assets 0.73 % 0.64 % 0.67 % 0.73 % 0.72 %
Allowance for credit losses to loans outstanding 1.05 % 1.05 % 1.07 % 1.12 % 1.12 %
Allowance for loan losses to loans outstanding 0.99 % 0.99 % 0.99 % 1.04 % 1.08 %
Allowance for credit losses to non-performing loans 121.29 % 139.74 % 136.77 % 130.73 % 130.67 %
Allowance for loan losses to non-performing loans 114.93 % 131.40 % 126.11 % 121.22 % 126.08 %
Non-performing assets to tangible shareholders' equity

and allowance for credit losses(1)

7.97 % 6.81 % 7.16 % 7.73 % 7.71 %
Total delinquency rate 1.08 % 1.15 % 1.18 % 1.19 % 1.24 %
 

Profitability

Return on average assets 1.12 % 1.28 % 0.70 % 1.01 % 0.67 %
Return on average shareholders' equity 10.10 % 11.48 % 6.28 % 9.02 % 6.03 %
Return on average shareholders' equity (tangible)(1) 13.17 % 14.99 % 8.23 % 11.85 % 7.91 %
Net interest margin 3.44 % 3.42 % 3.39 % 3.35 % 3.29 %
Efficiency ratio(1) 62.2 % 62.5 % 63.3 % 67.5 % 64.2 %
 

Capital Ratios

Tangible common equity ratio(1) 8.52 % 8.83 % 8.73 % 8.78 % 8.71 %
Tier 1 leverage ratio(2) 8.92 % 9.34 % 9.20 % 9.20 % 8.93 %
Common equity Tier 1 capital ratio(2) 10.24 % 10.80 % 10.60 % 10.70 % 10.38 %
Tier 1 capital ratio(2) 10.24 % 10.80 % 10.60 % 10.70 % 10.38 %
Total risk-based capital ratio(2) 12.74 % 13.34 % 13.20 % 13.30 % 13.02 %
 

Financial information, as adjusted (3):

Net income $ 49,635
Net income per share, diluted $ 0.28
Return on average assets 0.98 %
Return on average shareholders' equity 8.80 %
Return on average shareholders' equity (tangible) 11.55 %
 
(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 December 31, 2018 are preliminary and prior periods are actual.
(3)Excluding the re-measurement of net deferred tax assets of $15.6 million, which is considered a Non-GAAP financial measure. Please refer to the calculation and management’s reasons for using this measure on the page titled “Reconciliation of Non-GAAP Measures" at the end of this document.
             
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
    % Change from
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Dec 31
  2018       2018       2018       2018       2017     2018     2017  
 

ASSETS

 
Cash and due from banks $ 103,436 $ 90,361 $ 99,742 $ 100,151 $ 108,291 14.5 % (4.5 %)
Other interest-earning assets 421,534 388,256 364,802 267,806 354,566 8.6 % 18.9 %
Loans held for sale 27,099 27,525 35,898 23,450 31,530 (1.5 %) (14.1 %)
Investment securities 2,686,973 2,635,413 2,593,283 2,592,823 2,547,956 2.0 % 5.5 %
Loans, net of unearned income 16,165,800 15,925,093 15,792,969 15,696,284 15,768,247 1.5 % 2.5 %
Allowance for loan losses   (160,537 )     (157,810 )     (156,050 )     (163,217 )     (169,910 ) 1.7 % (5.5 %)
Net loans 16,005,263 15,767,283 15,636,919 15,533,067 15,598,337 1.5 % 2.6 %
Premises and equipment 234,529 231,236 230,195 230,313 222,802 1.4 % 5.3 %
Accrued interest receivable 58,879 58,584 55,208 53,060 52,910 0.5 % 11.3 %
Goodwill and intangible assets 531,556 531,556 531,556 531,556 531,556 - -
Other assets   612,883       634,596       624,936       616,715       588,957   (3.4 %) 4.1 %
 
Total Assets $ 20,682,152     $ 20,364,810     $ 20,172,539     $ 19,948,941     $ 20,036,905   1.6 % 3.2 %
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Deposits $ 16,376,159 $ 16,249,014 $ 15,599,799 $ 15,477,103 $ 15,797,532 0.8 % 3.7 %
Short-term borrowings 754,777 485,565 983,833 937,852 617,524 55.4 % 22.2 %
Other liabilities 311,364 355,102 351,174 359,994 353,646 (12.3 %) (12.0 %)
FHLB advances and long-term debt   992,279       992,115       991,948       938,499       1,038,346   0.0 % (4.4 %)
 
Total Liabilities 18,434,579 18,081,796 17,926,754 17,713,448 17,807,048 2.0 % 3.5 %
 
Shareholders' equity   2,247,573       2,283,014       2,245,785       2,235,493       2,229,857   (1.6 %) 0.8 %
 
Total Liabilities and Shareholders' Equity $ 20,682,152     $ 20,364,810     $ 20,172,539     $ 19,948,941     $ 20,036,905   1.6 % 3.2 %
 

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

 
Loans, by type:
Real estate - commercial mortgage $ 6,434,285 $ 6,337,984 $ 6,304,475 $ 6,332,508 $ 6,364,804 1.5 % 1.1 %
Commercial - industrial, financial and agricultural 4,404,548 4,288,823 4,264,602 4,299,072 4,300,297 2.7 % 2.4 %
Real estate - residential mortgage 2,251,044 2,173,548 2,094,530 1,976,524 1,954,711 3.6 % 15.2 %
Real estate - home equity 1,452,137 1,469,152 1,491,395 1,514,241 1,559,719 (1.2 %) (6.9 %)
Real estate - construction 916,599 979,857 990,705 976,131 1,006,935 (6.5 %) (9.0 %)
Consumer 419,186 390,708 360,315 326,766 313,783 7.3 % 33.6 %
Leasing and other   288,001       285,021       286,947       271,042       267,998   1.0 % 7.5 %
 
Total Loans, net of unearned income $ 16,165,800     $ 15,925,093     $ 15,792,969     $ 15,696,284     $ 15,768,247   1.5 % 2.5 %
 
Deposits, by type:
Noninterest-bearing demand $ 4,310,105 $ 4,216,064 $ 4,324,659 $ 4,291,821 $ 4,437,294 2.2 % (2.9 %)
Interest-bearing demand 4,240,974 4,289,181 3,854,680 3,984,423 4,018,107 (1.1 %) 5.5 %
Savings and money market accounts   4,926,937       4,878,982       4,597,510       4,487,277       4,586,746   1.0 % 7.4 %
Total demand and savings 13,478,016 13,384,227 12,776,849 12,763,521 13,042,147 0.7 % 3.3 %
Brokered deposits 176,239 164,601 161,447 64,195 90,473 7.1 % 94.8 %
Time deposits   2,721,904       2,700,186       2,661,503       2,649,387       2,664,912   0.8 % 2.1 %
 
Total Deposits $ 16,376,159     $ 16,249,014     $ 15,599,799     $ 15,477,103     $ 15,797,532   0.8 % 3.7 %
 
Short-term borrowings, by type:
Customer repurchase agreements $ 118,499 $ 82,741 $ 152,594 $ 165,186 $ 172,017 43.2 % (31.1 %)
Customer short-term promissory notes 326,278 267,824 303,239 342,666 225,507 21.8 % 44.7 %
Short-term FHLB advances 310,000 85,000 185,000 35,000 - 264.7 % (100.0 %)
Federal funds purchased   -       50,000       343,000       395,000       220,000   N/M N/M
 
Total Short-term Borrowings $ 754,777     $ 485,565     $ 983,833     $ 937,852     $ 617,524   55.4 % 22.2 %
 
N/M - Not meaningful
 
                       
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands                                        
    Three Months Ended   % Change from
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Dec 31 Year Ended Dec 31
  2018   2018   2018   2018   2017 2018   2017     2018   2017 % Change  
 
Interest Income:
Interest income $ 200,609 $ 194,048 $ 186,170 $ 177,687 $ 174,987 3.4 % 14.6 % $ 758,514 $ 668,866 13.4 %
Interest expense   37,665   33,921   30,103   26,369   25,574 11.0 % 47.3 %   128,058   93,502 37.0 %
 
Net Interest Income 162,944 160,127 156,067 151,318 149,413 1.8 % 9.1 % 630,456 575,364 9.6 %
Provision for credit losses   8,200   1,620   33,117   3,970   6,730 N/M 21.8 %   46,907   23,305 101.3 %
 
Net Interest Income after Provision 154,744 158,507 122,950 147,348 142,683 (2.4 %) 8.5 % 583,549 552,059 5.7 %
 
Non-Interest Income:
Other service charges and fees:
Merchant fees 4,366 5,006 4,920 4,115 4,308 (12.8 %) 1.3 % 18,407 16,845 9.3 %
Debit card income 3,214 3,604 3,077 2,817 3,526 (10.8 %) (8.9 %) 12,712 11,905 6.8 %
Commercial loan interest rate swap fees 2,540 3,607 2,393 1,291 2,914 (29.6 %) (12.8 %) 9,831 11,694 (15.9 %)
Letter of credit fees 1,001 983 956 992 1,037 1.9 % (3.5 %) 3,932 4,403 (10.7 %)
Foreign exchange income 484 542 591 533 510 (10.7 %) (5.0 %) 2,150 1,759 22.2 %
Other   1,655   1,691   1,728   1,671   1,534 (2.1 %) 7.9 %   6,745   6,253 7.9 %
Total 13,260 15,433 13,665 11,419 13,829 (14.1 %) (4.1 %) 53,777 52,859 1.7 %
Service charges on deposit accounts:
Overdraft fees 5,432 5,167 5,092 5,145 5,609 5.1 % (3.2 %) 20,836 22,569 (7.7 %)
Cash management fees 4,340 4,472 4,452 4,317 3,669 (3.0 %) 18.3 % 17,581 14,444 21.7 %
Other   2,626   2,620   2,726   2,500   3,392 0.2 % (22.6 %)   10,472   13,993 (25.2 %)
Total 12,398 12,259 12,270 11,962 12,670 1.1 % (2.1 %) 48,889 51,006 (4.2 %)
Investment management and trust services 13,408 13,066 12,803 12,871 13,152 2.6 % 1.9 % 52,148 49,249 5.9 %
Mortgage banking income 4,774 4,896 5,163 4,193 4,386 (2.5 %) 8.8 % 19,026 19,928 (4.5 %)
Other:
Credit card income 3,041 3,080 2,866 2,816 2,778 (1.3 %) 9.5 % 11,803 10,920 8.1 %
Small Business Administration lending income 741 530 846 357 1,355 39.8 % (45.3 %) 2,474 3,511 (29.5 %)
Other income   1,901   1,755   1,477   2,238   6,854 8.3 % (72.3 %)   7,371   11,430 (35.5 %)
Total   5,683   5,365   5,189   5,411   10,987 5.9 % (48.3 %)   21,648   25,861 (16.3 %)
Non-Interest Income before Investment Securities Gains 49,523 51,019 49,090 45,856 55,024 (2.9 %) (10.0 %) 195,488 198,903 (1.7 %)
Investment securities gains   -   14   4   19   1,932 N/M (100.0 %)   37   9,071 (99.6 %)
 
Total Non-Interest Income 49,523 51,033 49,094 45,875 56,956 (3.0 %) (13.1 %) 195,525 207,974 (6.0 %)
 
Non-Interest Expense:

 

Salaries and employee benefits 75,745 76,770 74,919 75,768 73,504 (1.3 %) 3.0 % 303,202 290,130 4.5 %
Net occupancy expense 12,708 12,578 12,760 13,632 12,549 1.0 % 1.3 % 51,678 49,708 4.0 %
Data processing and software 10,203 10,157 10,453 10,473 10,401 0.5 % (1.9 %) 41,286 38,735 6.6 %
Other outside services 8,944 9,122 7,568 8,124 7,665 (2.0 %) 16.7 % 33,758 27,501 22.8 %
Amortization of tax credit investments 6,538 1,637 1,637 1,637 3,376 N/M 93.7 % 11,449 11,028 3.8 %
Professional fees 3,546 3,427 2,372 4,816 3,632 3.5 % (2.4 %) 14,161 12,688 11.6 %
Equipment expense 3,275 3,000 3,434 3,534 3,244 9.2 % 1.0 % 13,243 12,935 2.4 %
FDIC insurance expense 2,563 2,814 2,663 2,953 3,618 (8.9 %) (29.2 %) 10,993 11,049 (0.5 %)
Marketing 1,577 2,692 2,335 2,250 1,725 (41.4 %) (8.6 %) 8,854 8,034 10.2 %
Other   15,586   13,216   15,204   13,474   18,738 17.9 % (16.8 %)   57,480   63,771 (9.9 %)
 
Total Non-Interest Expense   140,685   135,413   133,345   136,661   138,452 3.9 % 1.6 %   546,104   525,579 3.9 %
 
Income before Income Taxes 63,582 74,127 38,699 56,562 61,187 (14.2 %) 3.9 % 232,970 234,454 (0.6 %)
Income tax expense   5,499   8,494   3,502   7,082   27,186 (35.3 %) (79.8 %)   24,577   62,701 (60.8 %)
 
Net Income $ 58,083 $ 65,633 $ 35,197 $ 49,480 $ 34,001 (11.5 %) 70.8 % $ 208,393 $ 171,753 21.3 %
 

PER SHARE:

 
Net income:
Basic $ 0.33 $ 0.37 $ 0.20 $ 0.28 $ 0.19 (10.8 %) 73.7 % $ 1.19 $ 0.98 21.4 %
Diluted 0.33 0.37 0.20 0.28 0.19 (10.8 %) 73.7 % 1.18 0.98 20.4 %
Cash dividends 0.16 0.12 0.12 0.12 0.14 33.3 % 14.3 % 0.52 0.47 10.6 %
 
Weighted average shares (basic) 174,571 175,942 175,764 175,303 175,132 (0.8 %) (0.3 %) 175,395 174,721 0.4 %
Weighted average shares (diluted)   175,473     177,128     176,844     176,568     176,374   (0.9 %)   (0.5 %)       176,543     175,932   0.3 %
 

N/M - Not meaningful

 
...
                 
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
    Three Months Ended
December 31, 2018 September 30, 2018 December 31, 2017
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 $ 15,965,637 $ 182,358 4.54 % $ 15,862,143 $ 177,329 4.44 % $ 15,560,185 $ 162,050 4.14 %
 
Taxable investment securities 2,283,897 15,005 2.74 % 2,239,837 13,956 2.49 % 2,177,833 12,218 2.24 %
Tax-exempt investment securities 426,872 3,978 3.71 % 415,908 3,841 3.67 % 411,398 4,526 4.40 %
Equity securities   -     -   -     -     -   -     2,219     33   5.91 %
 
Total Investment Securities 2,710,769 18,983 2.80 % 2,655,745 17,797 2.68 % 2,591,450 16,777 2.59 %
 
Loans held for sale 22,361 271 4.85 % 27,195 388 5.71 % 21,874 245 4.48 %
Other interest-earning assets   492,529     2,177   1.76 %   416,129     1,601   1.53 %   571,981     1,755   1.22 %
 
Total Interest-earning Assets 19,191,296 203,789 4.22 % 18,961,212 197,115 4.13 % 18,745,490