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Fulton Financial Corporation Announces First Quarter 2025 Results

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LANCASTER, Pa., April 15, 2025 /PRNewswire/ -- Fulton Financial Corporation (NASDAQ: FULT) ("Fulton" or the "Corporation") reported net income available to common shareholders of $90.4 million, or $0.49 per diluted share, for the first quarter of 2025, an increase of $24.4 million, or $0.13 per share, in comparison to the fourth quarter of 2024. Operating net income available to common shareholders for the three months ended March 31, 2025 was $95.5 million, or $0.52 per diluted share(1), an increase of $6.5 million, or $0.04 per share, in comparison to the fourth quarter of 2024.

"We are pleased with our first quarter operating earnings of $0.52 per diluted share and encouraged by the strong start to the year," said Curtis J. Myers, Chairman and CEO of Fulton. "Our team continues to be disciplined in our approach to creating value for all stakeholders while remaining focused on the long term during this uncertain and dynamic environment."

Financial Highlights

First quarter of 2025 operating results of $0.52 per diluted share were impacted by the following items:

  • Solid net interest margin of 3.43% with a 12 basis point decrease in total cost of funds compared to the prior quarter.
  • Non-interest expense decreased $27.2 million to $189.5 million compared to $216.6 million in the prior quarter. Operating non-interest expense decreased $7.8 million to $182.9 million(1) compared to $190.7 million in the prior quarter.
  • Provision for credit losses was $13.9 million resulting in an allowance for credit losses attributable to net loans of $379.7 million, or 1.59% of total net loans as of March 31, 2025.
  • Excluding brokered deposits, customer deposits increased $304.9 million, or 4.9% annualized, compared to the prior quarter.
  • Common equity tier 1 capital ratio(2) increased to approximately 11.0% compared to 10.8% in the prior quarter.

The following items highlight notable changes in the components of net income and the balance sheet in the first quarter of 2025 compared to the fourth quarter of 2024:

  • Net interest income totaled $251.2 million, a decrease of $2.5 million, primarily due to a decline in short-term interest rates and day count. A decrease in interest income on net loans of $13.0 million was partially offset by a decrease in interest expense on interest-bearing liabilities of $12.2 million. A $4.3 million decrease in interest income on other interest-earning assets was partially offset by a $2.6 million increase in interest income on investment securities. Purchase loan mark accretion from loans acquired in the Acquisition(3) was $13.1 million in the first quarter of 2025 compared to $13.9 million in the prior quarter.
  • Non-interest income before investment securities gains (losses) was $67.2 million compared to $65.9 million in the prior quarter. The $1.3 million increase was primarily due to a $2.7 million reduction in the gain on acquisition (net of tax) recorded in the fourth quarter of 2024 and a $2.4 million increase in income from equity method investments, reflected in other income, partially offset by a $0.6 million decrease in mortgage banking income, a $0.5 million decrease in debit card fee income, a $0.5 million decrease in Small Business Administration loan income, a $0.5 million decrease in merchant fee income, a $0.3 million decrease in commercial customer interest rate derivative fee income, reflected in capital markets income, a $0.3 million decrease in overdraft fee income and a $0.2 million decrease in wealth management revenues.
  • Non-interest expense was $189.5 million compared to $216.6 million in the prior quarter. The $27.2 million decrease was primarily due to a $10.0 million decrease in FultonFirst implementation and asset disposal expense and a $9.3 million decrease in acquisition-related expense. Excluding the FultonFirst implementation and asset disposal-related expense, the decrease in non-interest expense was primarily due to a $4.4 million decrease in professional fees driven by a recovery of previously incurred fees, a $3.7 million decrease in employee salaries and benefits expense primarily related to cost savings realized in connection with the Acquisition and the FultonFirst initiative.

Balance Sheet Summary

  • Net loans totaled $23.9 billion, a decrease of $182.3 million, compared to $24.0 billion as of December 31, 2024. The decrease in net loans was due to a $244.3 million net decrease in commercial and other loans(4) partially offset by a $62.0 million increase in consumer loans(4). The decrease in commercial and other loans was partially due to the payoff in the quarter of $94.2 million of special mention loans and substandard loans. Commercial and other loans in non-accrual status decreased during the first quarter.
  • Deposits totaled $26.3 billion, an increase of $199.5 million, compared to $26.1 billion as of December 31, 2024. The increase was primarily due to a $416.4 million increase in savings deposits, partially offset by decreases of $105.4 million in brokered deposits, $63.8 million in noninterest-bearing demand deposits and $39.2 million in interest-bearing demand deposits.

Provision for Credit Losses and Asset Quality

  • The provision for credit losses was $13.9 million in the first quarter of 2025 resulting in a $379.7 million allowance for credit losses attributable to net loans, or 1.59% of total net loans as of March 31, 2025, compared to $379.2 million, or 1.58% of total net loans as of December 31, 2024.
  • Non-performing assets were $199.0 million, or 0.62% of total assets, as of March 31, 2025, in comparison to $222.7 million, or 0.69% of total assets, as of December 31, 2024.
  • Annualized net charge-offs for the first quarter of 2025 were 0.21% of total average loans in comparison to 0.22% in the prior quarter.

Additional information on Fulton is available on the Internet at www.fultonbank.com.

(1)

Financial measure derived by methods other than generally accepted accounting principles ("GAAP"). Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of the press release.



(2)

Regulatory capital ratios as of March 31, 2025, are preliminary estimates and prior periods are actual.



(3)

On April 26, 2024, the Corporation announced that its wholly owned banking subsidiary, Fulton Bank, National Association ("Fulton Bank"), acquired substantially all of the assets and assumed substantially all of the deposits and certain liabilities of Republic First Bank, doing business as Republic Bank ("Republic Bank"), from the Federal Deposit Insurance Corporation (the "FDIC"), as receiver for Republic Bank (the "Acquisition"), pursuant to the terms of the Purchase and Assumption Agreement - Whole Bank, All Deposits, effective as of April 26, 2024 among the FDIC, as receiver of Republic Bank, the FDIC and Fulton Bank.



(4)

Commercial loans include real estate - commercial mortgage, commercial and industrial, leases and other loans and includes a $231.2 million decrease in commercial construction loans reflected in real estate - construction. Consumer loans include real estate - residential mortgage, real estate - home equity, consumer and includes an $11.7 million increase in residential construction loans, reflected in real estate - construction.

Safe Harbor Statement

This press 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, including future credit losses, 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, the statements 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, 2024 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov).

Non-GAAP Financial Measures

The Corporation uses certain financial measures in this press release that have been derived from methods other than GAAP. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this press release.

FULTON FINANCIAL CORPORATION















SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)















(dollars in thousands, except per share and shares data)
















Three months ended










Mar 31


Dec 31


Sep 30


Jun 30


Mar  31










2025


2024


2024


2024


2024









Ending Balances


















Investment securities

$   5,071,323


$    4,806,468


$   4,545,278


$   4,184,027


$   3,783,392









Net loans

23,862,574


24,044,919


24,176,075


24,106,297


21,444,483









Total assets

32,132,028


32,071,810


32,185,726


31,769,813


27,642,957









Deposits

26,328,972


26,129,433


26,152,144


25,559,654


21,741,950









Shareholders' equity

3,274,321


3,197,325


3,203,943


3,101,609


2,757,679



























Average Balances


















Investment securities(1)

4,906,952


4,771,537


4,237,805


4,043,136


3,672,844









Net loans

24,006,863


24,068,784


24,147,801


23,345,914


21,370,033









Total assets

31,971,601


32,098,852


31,895,235


30,774,891


27,427,626









Deposits

26,169,883


26,313,378


25,778,259


24,642,954


21,378,754









Shareholders' equity

3,254,125


3,219,026


3,160,322


2,952,671


2,766,945



























Income Statement


















Net interest income

251,187


253,659


258,009


241,720


206,937









Provision for credit losses

13,898


16,725


11,929


32,056


10,925









Non-interest income

67,232


65,924


59,673


92,994


57,140









Non-interest expense

189,460


216,615


226,089


199,488


177,600









Income before taxes

115,061


86,243


79,664


103,170


75,552









Net income available to common
shareholders

90,425


66,058


60,644


92,413


59,379



























Per Share


















Net income available to common
shareholders (basic)

$0.50


$0.36


$0.33


$0.53


$0.36









Net income available to common
shareholders (diluted)

$0.49


$0.36


$0.33


$0.52


$0.36









Operating net income available to common
shareholders(2)

$0.52


$0.48


$0.50


$0.47


$0.40









Cash dividends

$0.18


$0.18


$0.17


$0.17


$0.17









Common shareholders' equity

$16.91


$16.50


$16.55


$16.00


$15.82









Common shareholders' equity (tangible)(2)

$13.46


$13.01


$13.02


$12.43


$12.37









Weighted average shares (basic)

182,179


182,032


181,905


175,305


162,706









Weighted average shares (diluted)

184,077


183,867


183,609


176,934


164,520









(1) Average balances include related unrealized holding gains (losses) for available for sale ("AFS") securities.

(2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release.























Three months ended










Mar 31


Dec 31


Sep 30


Jun 30


Mar  31










2025


2024


2024


2024


2024









Asset Quality


















Net charge-offs to average loans

0.21 %


0.22 %


0.18 %


0.19 %


0.16 %









Non-performing loans to total net loans

0.82 %


0.92 %


0.84 %


0.72 %


0.73 %









Non-performing assets to total assets

0.62 %


0.69 %


0.64 %


0.55 %


0.57 %









ACL - loans(1) to total loans

1.59 %


1.58 %


1.56 %


1.56 %


1.39 %









ACL - loans(1) to non-performing loans

193 %


172 %


186 %


218 %


191 %



























Profitability


















Return on average assets

1.18 %


0.85 %


0.79 %


1.24 %


0.91 %









Operating return on average assets(2)

1.25 %


1.14 %


1.17 %


1.11 %


1.00 %









Return on average common shareholders'
equity

11.98 %


8.68 %


8.13 %


13.47 %


9.28 %









Operating return on average common
shareholders' equity (tangible)(2)

15.95 %


14.83 %


15.65 %


15.56 %


13.08 %









Net interest margin

3.43 %


3.41 %


3.49 %


3.43 %


3.32 %









Efficiency ratio(2)

56.7 %


58.4 %


59.6 %


62.6 %


63.2 %









Non-interest expense to total average assets

2.40 %


2.68 %


2.82 %


2.61 %


2.60 %









Operating non-interest expense to total
average assets(2)

2.32 %


2.36 %


2.45 %


2.55 %


2.49 %



























Capital Ratios(3)


















Tangible common equity ratio ("TCE")(2)

7.8 %


7.5 %


7.5 %


7.3 %


7.4 %









Tier 1 leverage ratio

9.2 %


9.0 %


9.0 %


9.2 %


9.3 %









Common equity Tier 1 capital ratio

11.0 %


10.8 %


10.5 %


10.3 %


10.3 %









Tier 1 risk-based capital ratio

11.8 %


11.5 %


11.3 %


11.1 %


11.1 %









Total risk-based capital ratio

14.4 %


14.3 %


14.0 %


13.8 %


14.0 %



























(1) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet

    ("OBS") credit exposures.





(2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release.





(3) Regulatory capital ratios as of March 31, 2025 are preliminary estimates and prior periods are actual.









 

FULTON FINANCIAL CORPORATION



CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)



(dollars in thousands)
















Mar 31


Dec 31


Sep 30


Jun 30


Mar 31



2025


2024


2024


2024


2024

ASSETS










Cash and due from banks

$     388,503


$     279,041


$     296,500


$     333,238


$     247,581


Other interest-earning assets

778,117


924,404


1,287,392


1,188,341


231,389


Loans held for sale

15,965


25,618


17,678


26,822


10,624


Investment securities

5,071,323


4,806,468


4,545,278


4,184,027


3,783,392


Net loans

23,862,574


24,044,919


24,176,075


24,106,297


21,444,483


Less: ACL - loans(1)

(379,677)


(379,156)


(375,961)


(375,941)


(297,888)


   Loans, net

23,482,897


23,665,763


23,800,114


23,730,356


21,146,595


Net premises and equipment

186,873


195,527


171,731


180,642


213,541


Accrued interest receivable

116,215


117,029


115,903


120,752


107,089


Goodwill and intangible assets

629,189


635,458


641,739


648,026


560,114


Other assets

1,462,946


1,422,502


1,309,391


1,357,609


1,342,632


    Total Assets

$ 32,132,028


$ 32,071,810


$ 32,185,726


$ 31,769,813


$ 27,642,957

LIABILITIES AND SHAREHOLDERS' EQUITY










Deposits

$ 26,328,972


$ 26,129,433


$ 26,152,144


$ 25,559,654


$ 21,741,950


Borrowings

1,657,200


1,782,048


2,052,227


2,178,597


2,296,040


Other liabilities

871,535


963,004


777,412


929,953


847,288


    Total Liabilities

28,857,707


28,874,485


28,981,783


28,668,204


24,885,278


Shareholders' equity

3,274,321


3,197,325


3,203,943


3,101,609


2,757,679


    Total Liabilities and Shareholders' Equity

$ 32,132,028


$ 32,071,810


$ 32,185,726


$ 31,769,813


$ 27,642,957












LOANS, DEPOSITS AND BORROWINGS DETAIL:







Loans, by type:










Real estate - commercial mortgage

$  9,676,517


$  9,601,858


$  9,493,479


$  9,289,770


$  8,252,117


Commercial and industrial

4,531,266


4,605,589


4,914,734


4,967,796


4,467,589


Real estate - residential mortgage

6,409,657


6,349,643


6,302,624


6,248,856


5,395,720


Real estate - home equity

1,170,470


1,160,616


1,144,402


1,120,878


1,040,335


Real estate - construction

1,175,445


1,394,899


1,332,954


1,463,799


1,249,199


Consumer

597,305


616,856


651,717


692,086


698,421


Leases and other loans(2)

301,914


315,458


336,165


323,112


341,102


Total Net Loans

$ 23,862,574


$ 24,044,919


$ 24,176,075


$ 24,106,297


$ 21,444,483

Deposits, by type:










Noninterest-bearing demand

$  5,435,934


$  5,499,760


$  5,501,699


$  5,609,383


$  5,086,514


Interest-bearing demand

7,804,388


7,843,604


7,779,472


7,478,077


5,521,017


Savings

8,208,526


7,792,114


7,740,595


7,563,495


6,846,038


     Total demand and savings

21,448,848


21,135,478


21,021,766


20,650,955


17,453,569


Brokered

738,458


843,857


843,473


995,975


1,152,427


Time

4,141,666


4,150,098


4,286,905


3,912,724


3,135,954


Total Deposits

$ 26,328,972


$ 26,129,433


$ 26,152,144


$ 25,559,654


$ 21,741,950

Borrowings, by type:










Federal Home Loan Bank advances

$     750,000


$     850,000


$     950,000


$     750,000


$     900,000


Senior debt and subordinated debt

367,396


367,316


535,917


535,741


535,566


Other borrowings

539,804


564,732


566,310


892,856


860,474


Total Borrowings

$  1,657,200


$  1,782,048


$  2,052,227


$  2,178,597


$  2,296,040












(1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.

(2) Includes equipment lease financing, overdraft and net origination fees and costs.












 

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(dollars in thousands, except per share and share data)




Three months ended




Mar 31


Dec 31


Sep 30


Jun 30


Mar  31




2025


2024


2024


2024


2024

Net Interest Income:












Interest income


$       399,692


$       414,368


$       427,656


$       400,506


$       339,666


Interest expense


148,505


160,709


169,647


158,786


132,729


    Net Interest Income


251,187


253,659


258,009


241,720


206,937


Provision for credit losses


13,898


16,725


11,929


32,056


10,925


    Net Interest Income after Provision


237,289


236,934


246,080


209,664


196,012

Non-Interest Income:












Wealth management


21,785


22,002


21,596


20,990


20,155


Commercial banking:












   Merchant and card


6,591


7,082


7,496


7,798


6,808


   Cash management


7,799


7,633


7,201


6,966


6,305


   Capital markets


2,411


2,797


3,311


2,585


2,341


   Other commercial banking


4,528


4,942


4,281


4,061


3,375


Total commercial banking


21,329


22,454


22,289


21,410


18,829


Consumer banking:












  Card


7,544


8,064


7,917


8,305


6,628


  Overdraft


3,295


3,644


3,957


3,377


2,786


  Other consumer banking


2,229


2,601


3,054


2,918


2,254


Total consumer banking


13,068


14,309


14,928


14,600


11,668


Mortgage banking


3,138


3,759


3,142


3,951


3,090


Gain on acquisition, net of tax



(2,689)


(7,706)


47,392



Other


7,914


6,089


5,425


4,933


3,398


Non-interest income before investment securities
gains (losses)


67,234


65,924


59,674


113,276


57,140


Investment securities losses, net


(2)



(1)


(20,282)



    Total Non-Interest Income


67,232


65,924


59,673


92,994


57,140

Non-Interest Expense:












Salaries and employee benefits


103,526


107,886


118,824


110,630


95,481


Data processing and software


18,599


19,550


20,314


20,357


17,661


Net occupancy


18,207


16,417


18,999


17,793


16,149


Other outside services


11,837


14,531


15,839


16,933


13,283


Intangible amortization


6,269


6,282


6,287


4,688


573


FDIC insurance


5,597


5,921


5,109


6,696


6,104


Equipment


4,150


4,388


4,860


4,561


4,040


Marketing


2,521


2,695


2,251


2,101


1,912


Professional fees


(1,078)


3,387


2,811


2,571


2,088


Acquisition-related expenses


380


9,637


14,195


13,803



Other


19,452


25,921


16,600


(645)


20,309


    Total Non-Interest Expense


189,460


216,615


226,089


199,488


177,600


    Income Before Income Taxes


115,061


86,243


79,664


103,170


75,552


Income tax expense


22,074


17,623


16,458


8,195


13,611


    Net Income


92,987


68,620


63,206


94,975


61,941


Preferred stock dividends


(2,562)


(2,562)


(2,562)


(2,562)


(2,562)


     Net Income Available to Common  Shareholders


$         90,425


$         66,058


$         60,644


$         92,413


$         59,379
















Three months ended




Mar 31


Dec 31


Sep 30


Jun 30


Mar  31




2025


2024


2024


2024


2024

PER SHARE:












Net income available to common shareholders (basic)


$0.50


$0.36


$0.33


$0.53


$0.36


Net income available to common shareholders (diluted)


$0.49


$0.36


$0.33


$0.52


$0.36


Cash dividends


$0.18


$0.18


$0.17


$0.17


$0.17














Weighted average shares (basic)


182,179


182,032


181,905


175,305


162,706


Weighted average shares (diluted)


184,077


183,867


183,609


176,934


164,520

 

FULTON FINANCIAL CORPORATION







CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)






(dollars in thousands)









Three months ended



March 31, 2025


December 31, 2024


March 31, 2024



Average




Yield/


Average




Yield/


Average




Yield/



Balance


Interest(1)


Rate


Balance


Interest(1)


Rate


Balance


Interest(1)


Rate

ASSETS





































Interest-earning assets:


















Net loans(2)

$  24,006,863


$ 347,626


5.86 %


$  24,068,784


$ 360,642


5.97 %


$  21,370,033


$ 313,882


5.90 %


Investment securities(3)

5,199,000


47,242


3.63 %


5,033,765


44,616


3.54 %


3,983,753


27,048


2.71 %


Other interest-earning assets

793,126


9,164


4.67 %


1,086,536


13,453


4.93 %


249,079


3,328


5.36 %


Total Interest-Earning Assets

29,998,989


404,032


5.44 %


30,189,085


418,711


5.53 %


25,602,865


344,258


5.40 %




















Noninterest-earning assets:


















Cash and due from banks

301,897






288,867






282,895






Premises and equipment

191,248






183,801






223,375






Other assets

1,864,996






1,816,421






1,614,746






Less: ACL - loans(4)

(385,529)






(379,322)






(296,255)






Total Assets

$  31,971,601






$  32,098,852






$  27,427,626
























LIABILITIES AND SHAREHOLDERS' EQUITY




































Interest-bearing liabilities:


















Demand deposits

$ 7,753,586


$   34,189


1.79 %


$ 7,838,590


$   37,952


1.93 %


$ 5,596,725


$   20,500


1.47 %


Savings deposits

7,971,728


45,101


2.29 %


7,806,303


47,280


2.41 %


6,669,228


38,797


2.34 %


Brokered deposits

904,722


10,038


4.50 %


877,526


10,619


4.81 %


1,083,382


14,655


5.44 %


Time deposits

4,127,784


41,564


4.08 %


4,232,849


46,023


4.33 %


2,968,344


29,622


4.01 %


Total Interest-Bearing Deposits

20,757,820


130,892


2.56 %


20,755,268


141,874


2.72 %


16,317,679


103,574


2.55 %





















Borrowings and other interest-bearing
liabilities

1,754,900


17,613


4.07 %


1,847,431


18,835


4.06 %


2,608,376


29,155


4.46 %


Total Interest-Bearing Liabilities

22,512,720


148,505


2.67 %

Für dich aus unserer Redaktion zusammengestellt

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