Market Overview

Fulton Financial Reports Third Quarter Earnings of $0.28 Per Share

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  • Diluted earnings per share for the third quarter of 2017 were 28
    cents, a 7.7 percent increase from the second quarter of 2017 and a
    16.7 percent increase from the third quarter of 2016. Net income was
    $48.9 million, an increase of 7.6 percent and 17.9 percent, compared
    to the second quarter of 2017 and third quarter of 2016, respectively.
  • Pre-provision net revenue of $65.5 million was 4.1% higher than the
    second quarter of 2017 and 11.3% higher than the third quarter of 2016.
  • Net interest income for the third quarter of 2017 increased $5.2
    million, or 3.7 percent, compared to the second quarter of 2017 and
    $16.2 million, or 12.4 percent, compared to the third quarter of 2016.
  • Net interest margin decreased two basis points, to 3.27 percent,
    compared to the second quarter of 2017, and increased 13 basis points
    compared to the third quarter of 2016.
  • Loans at September 30, 2017 increased $140.3 million, or 0.9 percent,
    compared to June 30, 2017 and $1.1 billion, or 7.6 percent, compared
    to September 30, 2016. Average loans for the third quarter of 2017
    increased 1.8 percent and 8.3 percent compared to the second quarter
    of 2017 and the third quarter of 2016, respectively.
  • Deposits at September 30, 2017 increased $784.4 million, or 5.1
    percent, compared to June 30, 2017 and $1.2 billion, or 8.0 percent,
    compared, to September 30, 2016. Average deposits for the third
    quarter of 2017 increased 5.2 percent and 7.8 percent compared to the
    second quarter of 2017 and the third quarter of 2016, respectively.
  • The provision for credit losses in the third quarter of 2017 was $5.1
    million, compared to a $6.7 million provision in the second quarter of
    2017, and a $4.1 million provision in the third quarter of 2016.
  • Non-interest income, excluding investment securities gains, decreased
    $3.6 million, or 7.0 percent, in comparison to the second quarter of
    2017, and decreased $770,000, or 1.6 percent, in comparison to the
    third quarter of 2016.
  • Non-interest expense decreased $538,000, or 0.4 percent, compared to
    the second quarter of 2017 and increased $12.3 million, or 10.3
    percent, compared to the third quarter of 2016.

Fulton Financial Corporation (NASDAQ:FULT) reported net income of $48.9
million, or 28 cents per diluted share, for the third quarter of 2017.

This press release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20171017006594/en/

"Overall, we are pleased with our third quarter financial performance as
we've hit a couple of key milestones that help us continue to drive
shareholder value," said E. Philip Wenger, Chairman, President and CEO.
"I'm extremely proud of our team's continued focus on growth, efficiency
and profitability. This resulted in total revenue that hit a record
level in the third quarter and helped our company reach $20 billion in
assets."

Net Interest Income and Margin

Net interest income for the third quarter of 2017 increased $5.2
million, or 3.7 percent, from the second quarter of 2017. Net interest
margin decreased two basis points, or 0.6 percent, to 3.27 percent in
the third quarter of 2017, from 3.29 percent in the second quarter of
2017. The average yield on interest-earning assets increased two basis
points, while the average cost of interest-bearing liabilities increased
five basis points, during the third quarter of 2017 in comparison to the
second quarter of 2017. The two basis point increase in the average
yield on interest-earning assets reflects a seven basis point increase
in loan yields, which was partially offset by higher levels of
lower-yielding other interest-earning assets in the third quarter of
2017.

Average Balance Sheet

Total average assets for the third quarter of 2017 were $19.9 billion,
an increase of $571.8 million from the second quarter of 2017. Average
loans, net of unearned income, increased $264.9 million, or 1.8 percent,
in comparison to the second quarter of 2017. Average loans and yields,
by type, for the third quarter of 2017 in comparison to the second
quarter of 2017, are summarized in the following table:

       
Three Months Ended Increase (decrease)
September 30, 2017 June 30, 2017 in Balance
Balance   Yield (1) Balance Yield (1)   $     %
(dollars in thousands)
Average Loans, net of unearned income, by type:
Real estate - commercial mortgage $ 6,208,630 4.07 % $ 6,163,844 4.00 % $ 44,786 0.7 %
Commercial - industrial, financial and agricultural 4,257,075 4.08 % 4,221,025 4.00 % 36,050 0.9 %
Real estate - residential mortgage 1,841,559 3.83 % 1,707,929 3.77 % 133,630 7.8 %
Real estate - home equity 1,569,898 4.48 % 1,587,680 4.33 % (17,782 ) (1.1 %)
Real estate - construction 943,029 4.05 % 897,321 3.98 % 45,708 5.1 %
Consumer 318,546 4.94 % 300,966 5.03 % 17,580 5.8 %
Leasing and other   253,330 4.91 %   248,440 5.04 %   4,890   2.0 %
 
Total Average Loans, net of unearned income $ 15,392,067 4.12 % $ 15,127,205 4.05 % $ 264,862   1.8 %

(1) Presented on a fully-taxable equivalent basis using a 35% Federal
tax rate and statutory interest expense disallowances.

Total average liabilities increased $537.6 million, or 3.1 percent, from
the second quarter of 2017, while average deposits increased $786.4
million, or 5.2 percent. Average deposits and interest rates, by type,
for the third quarter of 2017 in comparison to the second quarter of
2017, are summarized in the following table:

       
Three Months Ended Increase (decrease)
September 30, 2017
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