EX-99.2 3 exhibit9929-30x18.htm SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED SEP 30, 2018 Exhibit
FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
 
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
 
 
 
 
 
 
 
dollars in thousands, except per-share data and percentages
 
 
 
 
 
 
 
 
Three Months Ended
 
 
Sep 30
 
Jun 30
 
Mar 31
 
Dec 31
 
Sep 30
 
 
2018
 
2018
 
2018
 
2017
 
2017
 
Ending Balances
 
 
 
 
 
 
 
 
 
 
Investments
$
2,635,413

 
$
2,593,283

 
$
2,592,823

 
$
2,547,956

 
$
2,561,516

 
Loans, net of unearned income
15,925,093

 
15,792,969

 
15,696,284

 
15,768,247

 
15,486,899

 
Total assets
20,364,810

 
20,172,539

 
19,948,941

 
20,036,905

 
20,062,860

 
Deposits
16,249,014

 
15,599,799

 
15,477,103

 
15,797,532

 
16,141,780

 
Shareholders' equity
2,283,014

 
2,245,785

 
2,235,493

 
2,229,857

 
2,225,786

 
 
 
 
 
 
 
 
 
 
 
 
Average Balances
 
 
 
 
 
 
 
 
 
 
Investments
$
2,596,414

 
$
2,601,705

 
$
2,556,986

 
$
2,566,337

 
$
2,523,758

 
Loans, net of unearned income
15,862,143

 
15,768,377

 
15,661,032

 
15,560,185

 
15,392,067

 
Total assets
20,273,232

 
20,063,375

 
19,876,093

 
20,072,579

 
19,872,726

 
Deposits
15,967,234

 
15,517,424

 
15,420,312

 
16,056,789

 
15,875,469

 
Shareholders' equity
2,269,093

 
2,246,904

 
2,224,615

 
2,237,031

 
2,215,389

 
 
 
 
 
 
 
 
 
 
 
 
Income Statement
 
 
 
 
 
 
 
 
 
 
Net interest income
$
160,127

 
$
156,067

 
$
151,318

 
$
149,413

 
$
146,809

 
Provision for credit losses
1,620

 
33,117

 
3,970

 
6,730

 
5,075

 
Non-interest income
51,033

 
49,094

 
45,875

 
56,956

 
51,974

 
Non-interest expense
135,413

 
133,345

 
136,661

 
138,452

 
132,157

 
Income before taxes
74,127

 
38,699

 
56,562

 
61,187

 
61,551

 
Net income
65,633

 
35,197

 
49,480

 
34,001

 
48,905

 
Pre-provision net revenue(1)
77,370

 
73,449

 
62,150

 
69,361

 
65,532

 
 
 
 
 
 
 
 
 
 
 
 
Per Share
 
 
 
 
 
 
 
 
 
 
Net income (basic)
$
0.37

 
$
0.20

 
$
0.28

 
$
0.19

 
$
0.28

 
Net income (diluted)
0.37

 
0.20

 
0.28

 
0.19

 
0.28

 
Cash dividends
0.12

 
0.12

 
0.12

 
0.14

 
0.11

 
Tangible common equity(1)
9.95

 
9.75

 
9.71

 
9.70

 
9.68

 
Weighted average shares (basic)
175,942

 
175,764

 
175,303

 
175,132

 
174,991

 
Weighted average shares (diluted)
177,128

 
176,844

 
176,568

 
176,374

 
176,216

 
 
 
 
 
 
 
 
 
 
 
 
Asset Quality
 
 
 
 
 
 
 
 
 
 
Net charge-offs to average loans (annualized)
0.08%

 
1.01%

 
0.10%

 
0.14
%
 
0.14
%
 
Non-performing loans to total loans
0.75%

 
0.78%

 
0.86%

 
0.85
%
 
0.88
%
 
Non-performing assets to total assets
0.64%

 
0.67%

 
0.73%

 
0.72
%
 
0.73
%
 
Allowance for credit losses to loans outstanding
1.05%

 
1.07%

 
1.12%

 
1.12
%
 
1.13
%
 
Allowance for loan losses to loans outstanding
0.99
%
 
0.99
%
 
1.04
%
 
1.08
%
 
1.11
%
 
Allowance for credit losses to non-performing loans
139.74%

 
136.77%

 
130.73%

 
130.67
%
 
128.05
%
 
Allowance for loan losses to non-performing loans
131.40%

 
126.11%

 
121.22%

 
126.08
%
 
126.22
%
 
Non-performing assets to tangible shareholders' equity
     and allowance for credit losses(1)
6.81%

 
7.16%

 
7.73%

 
7.71
%
 
7.87
%
 
Total delinquency rate
1.15%

 
1.18%

 
1.19%

 
1.24
%
 
1.28
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Profitability
 
 
 
 
 
 
 
 
 
 
Return on average assets
1.28
%
 
0.70
%
 
1.01
%
 
0.67
%
 
0.98
%
 
Return on average shareholders' equity
11.48%

 
6.28%

 
9.02%

 
6.03
%
 
8.76
%
 
Return on average shareholders' equity (tangible)(1)
14.99%

 
8.23%

 
11.85%

 
7.91
%
 
11.52
%
 
Net interest margin
3.42
%
 
3.39
%
 
3.35
%
 
3.29
%
 
3.27
%
 
Efficiency ratio(1)
62.5
%
 
63.3
%
 
67.5
%
 
64.2
%
 
64.3
%
 
 
 
 
 
 
 
 
 
 
 
 
Capital Ratios
 
 
 
 
 
 
 
 
 
 
Tangible common equity ratio(1)
8.83
%
 
8.73
%
 
8.78
%
 
8.71
%
 
8.67
%
 
Tier 1 leverage ratio(2)
9.30%

 
9.20%

 
9.20%

 
8.93
%
 
8.97
%
 
Common equity Tier 1 capital ratio(2)
10.70
%
 
10.60
%
 
10.70
%
 
10.38
%
 
10.42
%
 
Tier 1 capital ratio(2)
10.70
%
 
10.60
%
 
10.70%

 
10.38
%
 
10.42
%
 
Total risk-based capital ratio(2)
13.25
%
 
13.20
%
 
13.30%

 
13.02
%
 
13.09
%
 
 
 
 
 
 
 
 
 
 
 
 
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 September 30, 2018 are preliminary and remaining periods are actual.
 
(3)Excluding the re-measurement of net deferred tax assets of $15.6 million, which is considered a Non-GAAP based 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.
 
 
 
 
 
 
 
 
 
 
 
 




Exhibit 99.2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
 
 
 
 
 
 
dollars in thousands
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 % Change from
 
 
Sep 30
 
Jun 30
 
Mar 31
 
Dec 31
 
Sep 30
 
Jun 30
 
Sep 30
 
 
2018
 
2018
 
2018
 
2017
 
2017
 
2018
 
2017
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
90,361

 
$
99,742

 
$
100,151

 
$
108,291

 
$
99,803

 
(9.4
)%
 
(9.5
)%
 
Other interest-earning assets
388,256

 
364,802

 
267,806

 
354,566

 
645,796

 
6.4
 %
 
(39.9
)%
 
Loans held for sale
27,525

 
35,898

 
23,450

 
31,530

 
23,049

 
(23.3
)%
 
19.4
 %
 
Investment securities
2,635,413

 
2,593,283

 
2,592,823

 
2,547,956

 
2,561,516

 
1.6
 %
 
2.9
 %
 
Loans, net of unearned income
15,925,093

 
15,792,969

 
15,696,284

 
15,768,247

 
15,486,899

 
0.8
 %
 
2.8
 %
 
Allowance for loan losses
(157,810
)
 
(156,050
)
 
(163,217
)
 
(169,910
)
 
(172,245
)
 
1.1
 %
 
(8.4
)%
 
     Net loans
15,767,283

 
15,636,919

 
15,533,067

 
15,598,337

 
15,314,654

 
0.8
 %
 
3.0
 %
 
Premises and equipment
231,236

 
230,195

 
230,313

 
222,802

 
221,551

 
0.5
 %
 
4.4
 %
 
Accrued interest receivable
58,584

 
55,208

 
53,060

 
52,910

 
50,082

 
6.1
 %
 
17.0
 %
 
Goodwill and intangible assets
531,556

 
531,556

 
531,556

 
531,556

 
531,556

 
—
 %
 
—
 %
 
Other assets
634,596

 
624,936

 
616,715

 
588,957

 
614,853

 
1.5
 %
 
3.2
 %
 
    Total Assets
$
20,364,810

 
$
20,172,539

 
$
19,948,941

 
$
20,036,905

 
$
20,062,860

 
1.0
 %
 
1.5
 %
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
$
16,249,014

 
$
15,599,799

 
$
15,477,103

 
$
15,797,532

 
$
16,141,780

 
4.2
 %
 
0.7
 %
 
Short-term borrowings
485,565

 
983,833

 
937,852

 
617,524

 
298,751

 
(50.6
)%
 
62.5
 %
 
Other liabilities
355,102

 
351,174

 
359,994

 
353,646

 
358,384

 
1.1
 %
 
(0.9
)%
 
FHLB advances and long-term debt
992,115

 
991,948

 
938,499

 
1,038,346

 
1,038,159

 
—
 %
 
(4.4
)%
 
    Total Liabilities
18,081,796

 
17,926,754

 
17,713,448

 
17,807,048

 
17,837,074

 
0.9
 %
 
1.4
 %
 
Shareholders' equity
2,283,014

 
2,245,785

 
2,235,493

 
2,229,857

 
2,225,786

 
1.7
 %
 
2.6
 %
 
    Total Liabilities and Shareholders' Equity
$
20,364,810

 
$
20,172,539

 
$
19,948,941

 
$
20,036,905

 
$
20,062,860

 
1.0
 %
 
1.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
 
 
 
 
 
 
 
 
 
 
 
 
Loans, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
6,337,984

 
$
6,304,475

 
$
6,332,508

 
$
6,364,804

 
$
6,275,140

 
0.5
 %
 
1.0
 %
 
Commercial - industrial, financial and agricultural
4,288,823

 
4,264,602

 
4,299,072

 
4,300,297

 
4,223,075

 
0.6
 %
 
1.6
 %
 
Real estate - residential mortgage
2,173,548

 
2,094,530

 
1,976,524

 
1,954,711

 
1,887,907

 
3.8
 %
 
15.1
 %
 
Real estate - home equity
1,469,152

 
1,491,395

 
1,514,241

 
1,559,719

 
1,567,473

 
(1.5
)%
 
(6.3
)%
 
Real estate - construction
979,857

 
990,705

 
976,131

 
1,006,935

 
973,108

 
(1.1
)%
 
0.7
 %
 
Consumer
390,708

 
360,315

 
326,766

 
313,783

 
302,448

 
8.4
 %
 
29.2
 %
 
Leasing and other
285,021

 
286,947

 
271,042

 
267,998

 
257,748

 
(0.7
)%
 
10.6
 %
 
Total Loans, net of unearned income
$
15,925,093

 
$
15,792,969

 
$
15,696,284

 
$
15,768,247

 
$
15,486,899

 
0.8
 %
 
2.8
 %
Deposits, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand
$
4,216,064

 
$
4,324,659

 
$
4,291,821

 
$
4,437,294

 
$
4,363,915

 
(2.5
)%
 
(3.4
)%
 
Interest-bearing demand
4,289,181

 
3,854,680

 
3,984,423

 
4,018,107

 
4,119,419

 
11.3
 %
 
4.1
 %
 
Savings and money market accounts
4,878,982

 
4,597,510

 
4,487,277

 
4,586,746

 
4,790,985

 
6.1
 %
 
1.8
 %
 
Total demand and savings
13,384,227

 
12,776,849

 
12,763,521

 
13,042,147

 
13,274,319

 
4.8
 %
 
0.8
 %
 
Brokered deposits
164,601

 
161,447

 
64,195

 
90,473

 
109,936

 
2.0
 %
 
49.7
 %
 
Time deposits
2,700,186

 
2,661,503

 
2,649,387

 
2,664,912

 
2,757,525

 
1.5
 %
 
(2.1
)%
 
Total Deposits
$
16,249,014

 
$
15,599,799

 
$
15,477,103

 
$
15,797,532

 
$
16,141,780

 
4.2
 %
 
0.7
 %
Short-term borrowings, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer repurchase agreements
$
82,741

 
$
152,594

 
$
165,186

 
$
172,017

 
$
185,945

 
(45.8
)%
 
(55.5
)%
 
Customer short-term promissory notes
267,824

 
303,239

 
342,666

 
225,507

 
106,994

 
(11.7
)%
 
150.3
 %
 
Short-term FHLB advances
85,000

 
185,000

 
35,000

 
—

 
—

 
(54.1
)%
 
N/M

 
Federal funds purchased
50,000

 
343,000

 
395,000

 
220,000

 
5,812

 
(85.4
)%
 
N/M

 
Total Short-term Borrowings
$
485,565

 
$
983,833

 
$
937,852

 
$
617,524

 
$
298,751

 
(50.6
)%
 
62.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N/M - Not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 




FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
 
 
 
 
 
 
 
 
dollars in thousands
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 % Change from
 
 
 
Nine Months Ended
 
 
 
 
 
 
 
Sep 30
 
Jun 30
 
Mar 31
 
Dec 31
 
Sep 30
 
Jun 30
 
Sep 30
 
 
 
Sep 30
 
 
 
 
 
 
 
2018
 
2018
 
2018
 
2017
 
2017
 
2018
 
2017
 
 
 
2018
 
2017
 
% Change
 
Interest Income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
 
$
194,048

 
$
186,170

 
$
177,687

 
$
174,987

 
$
171,511

 
4.2
 %
 
13.1
 %
 
 
 
$
557,905

 
$
493,879

 
13.0
 %
 
 
Interest expense
 
 
33,921

 
30,103

 
26,369

 
25,574

 
24,702

 
12.7
 %
 
37.3
 %
 
 
 
90,393

 
67,928

 
33.1
 %
 
 
    Net Interest Income
 
 
160,127

 
156,067

 
151,318

 
149,413

 
146,809

 
2.6
 %
 
9.1
 %
 
 
 
467,512

 
425,951

 
9.8
 %
 
 
Provision for credit losses
 
 
1,620

 
33,117

 
3,970

 
6,730

 
5,075

 
(95.1
)%
 
(68.1
)%
 
 
 
38,707

 
16,575

 
133.5
 %
 
 
    Net Interest Income after Provision
 
 
158,507

 
122,950

 
147,348

 
142,683

 
141,734

 
28.9
 %
 
11.8
 %
 
 
 
428,805

 
409,376

 
4.7
 %
 
Non-Interest Income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other service charges and fees:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchant fees
 
 
5,006

 
4,920

 
4,115

 
4,308

 
4,398

 
1.7
 %
 
13.8
 %
 
 
 
14,041

 
12,536

 
12.0
 %
 
 
Commercial loan interest rate swap fees
 
 
3,607

 
2,393

 
1,291

 
2,914

 
1,954

 
50.7
 %
 
84.6
 %
 
 
 
7,291

 
8,780

 
(17.0
)%
 
 
Debit card income
 
 
3,604

 
3,077

 
2,817

 
3,526

 
2,830

 
17.1
 %
 
27.3
 %
 
 
 
9,498

 
8,379

 
13.4
 %
 
 
Letter of credit fees
 
 
983

 
956

 
992

 
1,037

 
1,056

 
2.8
 %
 
(6.9
)%
 
 
 
2,931

 
3,366

 
(12.9
)%
 
 
Foreign exchange income
 
 
542

 
591

 
533

 
510

 
470

 
(8.3
)%
 
15.3
 %
 
 
 
1,666

 
1,249

 
33.4
 %
 
 
Other
 
 
1,691

 
1,728

 
1,671

 
1,534

 
1,543

 
(2.1
)%
 
9.6
 %
 
 
 
5,090

 
4,720

 
7.8
 %
 
 
     Total
 
 
15,433

 
13,665

 
11,419

 
13,829

 
12,251

 
12.9
 %
 
26.0
 %
 
 
 
40,517

 
39,030

 
3.8
 %
 
Service charges on deposit accounts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overdraft fees
 
 
5,167

 
5,092

 
5,145

 
5,609

 
5,844

 
1.5
 %
 
(11.6
)%
 
 
 
15,404

 
16,960

 
(9.2
)%
 
 
Cash management fees
 
 
4,472

 
4,452

 
4,317

 
3,669

 
3,624

 
0.4
 %
 
23.4
 %
 
 
 
13,241

 
10,775

 
22.9
 %
 
 
Other
 
 
2,620

 
2,726

 
2,500

 
3,392

 
3,554

 
(3.9
)%
 
(26.3
)%
 
 
 
7,846

 
10,601

 
(26.0
)%
 
 
     Total
 
 
12,259

 
12,270

 
11,962

 
12,670

 
13,022

 
(0.1
)%
 
(5.9
)%
 
 
 
36,491

 
38,336

 
(4.8
)%
 
 
Investment management and trust services
 
 
13,066

 
12,803

 
12,871

 
13,152

 
12,157

 
2.1
 %
 
7.5
 %
 
 
 
38,740

 
36,097

 
7.3
 %
 
 
Mortgage banking income
 
 
4,896

 
5,163

 
4,193

 
4,386

 
4,805

 
(5.2
)%
 
1.9
 %
 
 
 
14,252

 
15,542

 
(8.3
)%
 
 
Other:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit card income
 
 
3,080

 
2,866

 
2,816

 
2,778

 
2,829

 
7.5
 %
 
8.9
 %
 
 
 
8,762

 
8,143

 
7.6
 %
 
 
Small business administration lending income
 
 
530

 
846

 
357

 
1,355

 
565

 
(37.4
)%
 
(6.2
)%
 
 
 
1,733

 
2,156

 
(19.6
)%
 
 
Other income
 
 
1,755

 
1,477

 
2,238

 
6,854

 
1,748

 
18.8
 %
 
0.4
 %
 
 
 
5,470

 
4,575

 
19.6
 %
 
 
     Total
 
 
5,365

 
5,189

 
5,411

 
10,987

 
5,142

 
3.4
 %
 
4.3
 %
 
 
 
15,965

 
14,874

 
7.3
 %
 
 
  Non-Interest Income before Investment Securities Gains
 
 
51,019

 
49,090

 
45,856


55,024

 
47,377

 
3.9
 %
 
7.7
 %
 
 
 
145,965

 
143,879

 
1.4
 %
 
 
Investment securities gains
 
 
14

 
4

 
19

 
1,932

 
4,597

 
N/M

 
(99.7
)%
 
 
 
37

 
7,139

 
(99.5
)%
 
 
    Total Non-Interest Income
 
 
51,033

 
49,094

 
45,875

 
56,956

 
51,974

 
3.9
 %
 
(1.8
)%
 
 
 
146,002

 
151,018

 
(3.3
)%
 
Non-Interest Expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
 
76,770

 
74,919

 
75,768

 
73,504

 
72,894

 
2.5
 %
 
5.3
 %
 
 
 
227,457

 
216,626

 
5.0
 %
 
 
Net occupancy expense
 
 
12,578

 
12,760

 
13,632

 
12,549

 
12,180

 
(1.4
)%
 
3.3
 %
 
 
 
38,970

 
37,159

 
4.9
 %
 
 
Data processing and software
 
 
10,157

 
10,453

 
10,473

 
10,401

 
10,301

 
(2.8
)%
 
(1.4
)%
 
 
 
31,083

 
28,334

 
9.7
 %
 
 
Other outside services
 
 
9,122

 
7,568

 
8,124

 
7,665

 
6,582

 
20.5
 %
 
38.6
 %
 
 
 
24,814

 
19,836

 
25.1
 %
 
 
Professional fees
 
 
3,427

 
2,372

 
4,816

 
3,632

 
3,388

 
44.5
 %
 
1.2
 %
 
 
 
10,615

 
9,056

 
17.2
 %
 
 
Equipment expense
 
 
3,000

 
3,434

 
3,534

 
3,244

 
3,298

 
(12.6
)%
 
(9.0
)%
 
 
 
9,968

 
9,691

 
2.9
 %
 
 
FDIC insurance expense
 
 
2,814

 
2,663

 
2,953

 
3,618

 
3,007

 
5.7
 %
 
(6.4
)%
 
 
 
8,430

 
7,431

 
13.4
 %
 
 
Marketing
 
 
2,692

 
2,335

 
2,250

 
1,725

 
2,089

 
15.3
 %
 
28.9
 %
 
 
 
7,277

 
6,309

 
15.3
 %
 
 
Amortization of tax credit investments
 
 
1,637

 
1,637

 
1,637

 
3,376

 
3,503

 
—
 %
 
(53.3
)%
 
 
 
4,911

 
7,652

 
(35.8
)%
 
 
Other
 
 
13,216

 
15,204

 
13,474

 
18,738

 
14,915

 
(13.1
)%
 
(11.4
)%
 
 
 
41,894

 
45,033

 
(7.0
)%
 
 
    Total Non-Interest Expense
 
 
135,413

 
133,345

 
136,661

 
138,452

 
132,157

 
1.6
 %
 
2.5
 %
 
 
 
405,419

 
387,127

 
4.7
 %
 
 
    Income Before Income Taxes
 
 
74,127

 
38,699

 
56,562

 
61,187

 
61,551

 
91.5
 %
 
20.4
 %
 
 
 
169,388

 
173,267

 
(2.2
)%
 
 
Income tax expense
 
 
8,494

 
3,502

 
7,082

 
27,186

 
12,646

 
142.5
 %
 
(32.8
)%
 
 
 
19,078

 
35,515

 
(46.3
)%
 
 
    Net Income
 
 
$
65,633

 
$
35,197

 
$
49,480

 
$
34,001

 
$
48,905

 
86.5
 %
 
34.2
 %
 
 
 
$
150,310

 
$
137,752

 
9.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PER SHARE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Basic
 
 
$
0.37

 
$
0.20

 
$
0.28

 
$
0.19

 
$
0.28

 
85.0
 %
 
32.1
 %
 
 
 
$
0.86

 
$
0.79

 
8.9
 %
 
 
    Diluted
 
 
0.37

 
0.20

 
0.28

 
0.19

 
0.28

 
85.0
 %
 
32.1
 %
 
 
 
0.85

 
0.78

 
9.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Weighted average shares (basic)
 
 
175,942

 
175,764

 
175,303

 
175,132

 
174,991

 
0.1
 %
 
0.5
 %
 
 
 
175,672

 
174,582

 
0.6
 %
 
 
Weighted average shares (diluted)
 
 
177,128

 
176,844

 
176,568

 
176,374

 
176,216

 
0.2
 %
 
0.5
 %
 
 
 
176,848

 
175,776

 
0.6
 %
 
N/M - not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 






FULTON FINANCIAL CORPORATION
 
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
 
 
 
 Three Months Ended
 
 
September 30, 2018
 
June 30, 2018
 
September 30, 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
$
15,862,143

 
$
177,329

 
4.44%
 
$
15,768,377

 
$
170,006

 
4.32%
 
$
15,392,067

 
$
159,454

 
4.12%
 
 
Taxable investment securities
2,239,837

 
13,956

 
2.49%
 
2,262,789

 
13,885

 
2.45%
 
2,115,931

 
11,423

 
2.16%
 
 
Tax-exempt investment securities
415,908

 
3,841

 
3.67%
 
408,715

 
3,713

 
3.61%
 
408,594

 
4,492

 
4.37%
 
 
Equity securities
—

 
—

 
—%
 
—

 
—

 
—%
 
8,709

 
143

 
6.52%
 
 
Total Investment Securities
2,655,745

 
17,797

 
2.68%
 
2,671,504

 
17,598

 
2.63%
 
2,533,234

 
16,058

 
2.53%
 
 
Loans held for sale
27,195

 
388

 
5.71%
 
22,237

 
284

 
5.11%
 
22,456

 
243

 
4.33%
 
 
Other interest-earning assets
416,129

 
1,601

 
1.53%
 
316,381

 
1,243

 
1.57%
 
590,676

 
1,667

 
1.12%
 
 
Total Interest-earning Assets
18,961,212

 
197,115

 
4.13%
 
18,778,499

 
189,131

 
4.04%
 
18,538,433

 
177,422

 
3.80%
 
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
100,568

 
 
 
 
 
100,811

 
 
 
 
 
101,643

 
 
 
 
 
 
Premises and equipment
231,280

 
 
 
 
 
232,048

 
 
 
 
 
220,129

 
 
 
 
 
 
Other assets
1,137,293

 
 
 
 
 
1,112,913

 
 
 
 
 
1,186,622

 
 
 
 
 
 
Less: allowance for loan losses
(157,121
)
 
 
 
 
 
(160,896
)
 
 
 
 
 
(174,101
)
 
 
 
 
 
 
Total Assets
$
20,273,232

 
 
 
 
 
$
20,063,375

 
 
 
 
 
$
19,872,726

 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
$
4,116,051

 
$
6,378

 
0.61%
 
$
3,952,115

 
$
4,959

 
0.50%
 
$
3,943,118

 
$
3,847

 
0.39%
 
 
Savings deposits
4,718,148

 
7,569

 
0.64%
 
4,538,083

 
5,545

 
0.49%
 
4,603,155

 
3,962

 
0.34%
 
 
Brokered deposits
162,467

 
840

 
2.05%
 
85,242

 
396

 
1.87%
 
89,767

 
277

 
1.23%
 
 
Time deposits
2,672,548

 
9,032

 
1.34%
 
2,660,410

 
8,385

 
1.26%
 
2,744,532

 
7,937

 
1.15%
 
 
Total Interest-bearing Deposits
11,669,214

 
23,819

 
0.81%
 
11,235,850

 
19,285

 
0.69%
 
11,380,572

 
16,023

 
0.56%
 
 
Short-term borrowings
724,132

 
2,002

 
1.09%
 
1,023,160

 
3,036

 
1.18%
 
402,341

 
578

 
0.57%
 
 
FHLB advances and long-term debt
988,748

 
8,100

 
3.26%
 
945,177

 
7,783

 
3.30%
 
1,038,062

 
8,100

 
3.11%
 
 
Total Interest-bearing Liabilities
13,382,094

 
33,921

 
1.01%
 
13,204,187

 
30,104

 
0.91%
 
12,820,975

 
24,701

 
0.77%
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
4,298,020

 
 
 
 
 
4,281,574

 
 
 
 
 
4,494,897

 
 
 
 
 
 
Other
324,025

 
 
 
 
 
330,710

 
 
 
 
 
341,465

 
 
 
 
 
 
Total Liabilities
18,004,139

 
 
 
 
 
17,816,471

 
 
 
 
 
17,657,337

 
 
 
 
 
 
Shareholders' equity
2,269,093

 
 
 
 
 
2,246,904

 
 
 
 
 
2,215,389

 
 
 
 
 
 
Total Liabilities and Shareholders' Equity
$
20,273,232

 
 
 
 
 
$
20,063,375

 
 
 
 
 
$
19,872,726

 
 
 
 
 
 
Net interest income/net interest margin (fully taxable equivalent)
 
 
163,194

 
3.42%
 
 
 
159,027

 
3.39%
 
 
 
152,721

 
3.27%
 
 
Tax equivalent adjustment
 
 
(3,067
)
 
 
 
 
 
(2,960
)
 
 
 
 
 
(5,912
)
 
 
 
 
Net interest income
 
 
$
160,127

 
 
 
 
 
$
156,067

 
 
 
 
 
$
146,809

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Three months ended September 30, 2018 and June 30, 2018 are presented on a fully taxable-equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances. Prior periods are presented on a fully taxable-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.
 
 
Note: The weighted average interest rate on total average interest-bearing liabilities and average non-interest bearing demand deposits (“cost of funds”) was 0.76%, 0.69% and 0.57% for the three months ended September 30, 2018, June 30, 2018 and September 30, 2017, respectively.
 
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
% Change from
 
 
 
 
 
Sep 30
 
Jun 30
 
Mar 31
 
Dec 31
 
Sep 30
 
Jun 30
 
Sep 30
 
 
 
 
 
 
 
2018
 
2018
 
2018
 
2017
 
2017
 
2018
 
2017
 
 
 
 
 
Loans, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
6,309,663

 
$
6,298,534

 
$
6,305,821

 
$
6,232,674

 
$
6,208,630

 
0.2
 %
 
1.6
 %
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
4,304,320

 
4,335,097

 
4,288,634

 
4,263,199

 
4,257,075

 
(0.7
)%
 
1.1
 %
 
 
 
 
 
 
Real estate - residential mortgage
2,142,977

 
2,026,161

 
1,958,505

 
1,926,067

 
1,841,559

 
5.8
 %
 
16.4
 %
 
 
 
 
 
 
Real estate - home equity
1,474,011

 
1,502,936

 
1,538,974

 
1,560,713

 
1,569,898

 
(1.9
)%
 
(6.1
)%
 
 
 
 
 
 
Real estate - construction
969,575

 
978,327

 
984,242

 
1,004,166

 
943,029

 
(0.9
)%
 
2.8
 %
 
 
 
 
 
 
Consumer
375,656

 
345,572

 
315,927

 
312,320

 
318,546

 
8.7
 %
 
17.9
 %
 
 
 
 
 
 
Leasing and other
285,941

 
281,750

 
268,930

 
261,046

 
253,330

 
1.5
 %
 
12.9
 %
 
 
 
 
 
 
Total Loans, net of unearned income
$
15,862,143

 
$
15,768,377

 
$
15,661,033

 
$
15,560,185

 
$
15,392,067

 
0.6
 %
 
3.1
 %
 
 
 
 
 
Deposits, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand
$
4,298,020

 
$
4,281,574

 
$
4,246,168

 
$
4,454,456

 
$
4,494,897

 
0.4
 %
 
(4.4
)%
 
 
 
 
 
 
Interest-bearing demand
4,116,051

 
3,952,115

 
3,958,894

 
4,037,879

 
3,943,118

 
4.1
 %
 
4.4
 %
 
 
 
 
 
 
Savings and money market accounts
4,718,148

 
4,538,083

 
4,494,445

 
4,752,337

 
4,603,155

 
4.0
 %
 
2.5
 %
 
 
 
 
 
 
     Total demand and savings
13,132,219

 
12,771,772

 
12,699,507

 
13,244,672

 
13,041,170

 
2.8
 %
 
0.7
 %
 
 
 
 
 
 
Brokered deposits
162,467

 
85,242

 
74,026

 
105,135

 
89,767

 
90.6
 %
 
81.0
 %
 
 
 
 
 
 
Time deposits
2,672,548

 
2,660,410

 
2,646,779

 
2,706,982

 
2,744,532

 
0.5
 %
 
(2.6
)%
 
 
 
 
 
 
Total Deposits
$
15,967,234

 
$
15,517,424


$
15,420,312

 
$
16,056,789

 
$
15,875,469

 
2.9
 %
 
0.6
 %
 
 
 
 
 
Short-term borrowings, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer repurchase agreements
$
148,660

 
$
162,276

 
$
175,292

 
$
179,948

 
$
176,415

 
(8.4
)%
 
(15.7
)%
 
 
 
 
 
 
Customer short-term promissory notes
298,896

 
316,049

 
308,725

 
195,951

 
80,147

 
(5.4
)%
 
N/M

 
 
 
 
 
 
Federal funds purchased
145,793

 
398,297

 
379,822

 
15,374

 
90,453

 
(63.4
)%
 
61.2
 %
 
 
 
 
 
 
Short-term FHLB advances and other borrowings
130,783

 
146,538

 
33,000

 
11

 
55,326

 
(10.8
)%
 
136.4
 %
 
 
 
 
 
 
Total Short-term Borrowings
$
724,132

 
$
1,023,160

 
$
896,839

 
$
391,284

 
$
402,341

 
(29.2
)%
 
80.0
 %
 
 
 
 
 
N/M - Not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
 
 
 
 
 
 
dollars in thousands
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30
 
 
 
2018
 
2017
 
 
 
Average
 
 
 
 
 
Average
 
 
 
 
 
 
 
Balance
 
Interest (1)
 
Yield/Rate
 
Balance
 
Interest (1)
 
Yield/Rate
ASSETS
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
Loans, net of unearned income
 
$
15,764,587

 
$
509,596

 
4.32
 %
 
$
15,127,569

 
$
458,753

 
4.05
%
 
Taxable investment securities
 
2,233,972

 
41,034

 
2.45
 %
 
2,117,127

 
34,811

 
2.19
%
 
Tax-exempt investment securities
 
412,496

 
11,307

 
3.64
 %
 
405,728

 
13,268

 
4.34
%
 
Equity securities
 
167

 
5

 
13.01
 %
 
10,391

 
467

 
6.01
%
 
Total Investment Securities
 
2,646,635

 
52,346

 
2.63
 %
 
2,533,246

 
48,546

 
2.55
%
 
Loans held for sale
 
23,175

 
888

 
5.11
 %
 
19,378

 
631

 
4.34
%
 
Other interest-earning assets
 
345,512

 
4,016

 
1.55
 %
 
410,250

 
3,311

 
1.08
%
 
Total Interest-earning Assets
 
$
18,779,909

 
566,846

 
4.03
 %
 
$
18,090,443

 
511,241

 
3.78
%
Noninterest-earning assets:
 
 
 
 
 
 
 
Cash and due from banks
 
102,352

 
 
 
 
 
107,029

 
 
 
 
 
Premises and equipment
 
231,195

 
 
 
 
 
218,700

 
 
 
 
 
Other assets
 
1,121,267

 
 
 
 
 
1,170,466

 
 
 
 
 
Less: allowance for loan losses
 
(162,368
)
 
 
 
 
 
(172,145
)
 
 
 
 
 
Total Assets
 
$
20,072,355

 
 
 
 
 
$
19,414,493

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
Demand deposits
 
$
4,009,596

 
$
15,341

 
0.51
 %
 
$
3,762,439

 
$
8,865

 
0.32
%
 
Savings deposits
 
4,584,377

 
17,481

 
0.51
 %
 
4,372,453

 
8,883

 
0.27
%
 
Brokered deposits
 
107,569

 
1,511

 
1.88
 %
 
30,251

 
277

 
1.23
%
 
Time deposits
 
2,660,008

 
25,220

 
1.27
 %
 
2,726,693

 
22,684

 
1.11
%
 
Total Interest-bearing Deposits
 
11,361,550

 
59,553

 
0.70
 %
 
10,891,836

 
40,709

 
0.50
%
 
Short-term borrowings
 
880,745

 
7,079

 
1.07
 %
 
581,511

 
2,407

 
0.55
%
 
FHLB advances and long-term debt
 
973,751

 
23,761

 
3.26
 %
 
1,033,159

 
24,812

 
3.21
%
 
Total Interest-bearing Liabilities
 
13,216,046

 
90,393

 
0.91
 %
 
12,506,506

 
67,928

 
0.73
%
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
Demand deposits
 
4,275,443

 
 
 
 
 
4,395,421

 
 
 
 
 
Other
 
333,832

 
 
 
 
 
333,250

 
 
 
 
 
Total Liabilities
 
17,825,321

 
 
 
 
 
17,235,177

 
 
 
 
 
Shareholders' equity
 
2,247,034

 
 
 
 
 
2,179,316

 
 
 
 
 
Total Liabilities and Shareholders' Equity
 
$
20,072,355

 
 
 
 
 
$
19,414,493

 
 
 
 
 
Net interest income/net interest margin (fully taxable equivalent)
 
 
 
476,453

 
3.39
 %
 
 
 
443,313

 
3.27
%
 
Tax equivalent adjustment
 
 
 
(8,941
)
 
 
 
 
 
(17,362
)
 
 
 
Net interest income
 
 
 
$
467,512

 
 
 
 
 
$
425,951

 
 
(1) Nine months ended September 30, 2018 is presented on a fully taxable-equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances. Prior periods are presented on a fully taxable-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.
Note: The weighted average interest rate on total average interest-bearing liabilities and average non-interest bearing demand deposits (“cost of funds”) was 0.69% and 0.54% for the nine months ended September 30, 2018 and 2017, respectively.

 
 
 
 
 
 
 
 
 
Nine Months Ended
 
 
 
 
 
 
 
 
 
 
 
September 30
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
% Change
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, by type:
 
 
 
 
 
 
 
Real estate - commercial mortgage
 
$
6,304,687

 
$
6,137,824

 
2.7
 %
 
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
 
4,309,408

 
4,227,918

 
1.9
 %
 
 
 
 
 
 
 
Real estate - residential mortgage
 
2,043,223

 
1,729,799

 
18.1
 %
 
 
 
 
 
 
 
Real estate - home equity
 
1,505,069

 
1,590,117

 
(5.3
)%
 
 
 
 
 
 
 
Real estate - construction
 
977,327

 
894,146

 
9.3
 %
 
 
 
 
 
 
 
Consumer
 
345,937

 
301,414

 
14.8
 %
 
 
 
 
 
 
 
Leasing and other
 
278,936

 
246,351

 
13.2
 %
 
 
 
 
 
 
 
Total Loans, net of unearned income
 
$
15,764,587

 
$
15,127,569

 
4.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits, by type:
 
 
 
 
 
 
 
Noninterest-bearing demand
 
$
4,275,443

 
$
4,395,421

 
(2.7
)%
 
 
 
 
 
 
 
Interest-bearing demand
 
4,009,596

 
3,762,439

 
6.6
 %
 
 
 
 
 
 
 
Savings and money market accounts
 
4,584,377

 
4,372,453

 
4.8
 %
 
 
 
 
 
 
 
Total demand and savings
 
12,869,416

 
12,530,313

 
2.7
 %
 
 
 
 
 
 
 
Brokered deposits
 
107,569

 
30,251

 
N/M

 
 
 
 
 
 
 
Time deposits
 
2,660,008

 
2,726,693

 
(2.4
)%
 
 
 
 
 
 
 
Total Deposits
 
$
15,636,993

 
$
15,287,257

 
2.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings, by type:
 
 
 
 
 
 
 
Customer repurchase agreements
 
$
162,345

 
$
192,015

 
(15.5
)%
 
 
 
 
 
 
 
Customer short-term promissory notes
 
307,854

 
78,955

 
N/M

 
 
 
 
 
 
 
Federal funds purchased
 
307,114

 
212,885

 
44.3
 %
 
 
 
 
 
 
 
Short-term FHLB advances and other borrowings
 
103,432

 
97,656

 
5.9
 %
 
 
 
 
 
 
 
Total Short-term Borrowings
 
$
880,745

 
$
581,511

 
51.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N/M - Not meaningful
 
 
 
 
 
 
 
 
 
 
 




FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
 
 
 
 
ASSET QUALITY INFORMATION (UNAUDITED)
 
 
 
 
 
 
 
 
 
 
dollars in thousands
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
 
Sep 30
 
Jun 30
 
Mar 31
 
Dec 31
 
Sep 30
 
Sep 30
 
Sep 30
 
 
 
 
2018
 
2018
 
2018
 
2017
 
2017
 
2018
 
2017
 
 
ALLOWANCE FOR CREDIT LOSSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
169,247

 
$
176,019

 
$
176,084

 
$
174,749

 
$
174,998

 
$
176,084

 
$
171,325

 
 
 
Loans charged off:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial - industrial, financial and agricultural
(3,541
)
 
(38,632
)
 
(4,005
)
 
(5,473
)
 
(2,714
)
 
(46,178
)
 
(13,594
)
 
 
 
    Consumer and home equity
(1,415
)
 
(1,528
)
 
(1,300
)
 
(1,071
)
 
(920
)
 
(4,243
)
 
(3,496
)
 
 
 
    Real estate - commercial mortgage
(650
)
 
(366
)
 
(267
)
 
(220
)
 
(483
)
 
(1,283
)
 
(1,949
)
 
 
 
    Real estate - residential mortgage
(483
)
 
(483
)
 
(162
)
 
(152
)
 
(195
)
 
(1,128
)
 
(535
)
 
 
 
    Real estate - construction
(212
)
 
(606
)
 
(158
)
 
—

 
(2,744
)
 
(976
)
 
(3,765
)
 
 
 
    Leasing and other
(582
)
 
(545
)
 
(505
)
 
(457
)
 
(739
)
 
(1,632
)
 
(2,578
)
 
 
 
    Total loans charged off
(6,883
)
 
(42,160
)
 
(6,397
)
 
(7,373
)
 
(7,795
)
 
(55,440
)
 
(25,917
)
 
 
Recoveries of loans previously charged off:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial - industrial, financial and agricultural
731

 
541

 
1,075

 
941

 
665

 
2,347

 
6,830

 
 
 
    Consumer and home equity
607

 
717

 
385

 
466

 
445

 
1,709

 
1,503

 
 
 
    Real estate - commercial mortgage
928

 
321

 
279

 
178

 
106

 
1,528

 
1,490

 
 
 
    Real estate - residential mortgage
317

 
96

 
107

 
186

 
219

 
520

 
600

 
 
 
    Real estate - construction
664

 
444

 
306

 
32

 
629

 
1,414

 
1,550

 
 
 
    Leasing and other
595

 
152

 
210

 
175

 
407

 
957

 
793

 
 
 
    Recoveries of loans previously charged off
3,842

 
2,271

 
2,362

 
1,978

 
2,471

 
8,475

 
12,766

 
 
Net loans recovered charged off
(3,041
)
 
(39,889
)
 
(4,035
)
 
(5,395
)
 
(5,324
)
 
(46,965
)
 
(13,151
)
 
 
Provision for credit losses
1,620

 
33,117

 
3,970

 
6,730

 
5,075

 
38,707

 
16,575

 
 
Balance at end of period
$
167,826

 
$
169,247

 
$
176,019

 
$
176,084

 
$
174,749

 
$
167,826

 
$
174,749

 
 
Net charge-offs to average loans (annualized)
0.08
%
 
1.01
%
 
0.10
%
 
0.14
%
 
0.14
%
 
0.40
%
 
0.12
%
 
 
NON-PERFORMING ASSETS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-accrual loans
$
106,433

 
$
111,116

 
$
122,966

 
$
124,749

 
$
123,345

 
 
 
 
 
 
 
Loans 90 days past due and accruing
13,663

 
12,628

 
11,676

 
10,010

 
13,124

 
 
 
 
 
 
 
    Total non-performing loans
120,096

 
123,744

 
134,642

 
134,759

 
136,469

 
 
 
 
 
 
 
Other real estate owned
10,684

 
11,181

 
10,744

 
9,823

 
10,542

 
 
 
 
 
 
 
Total non-performing assets
$
130,780

 
$
134,925

 
$
145,386

 
$
144,582

 
$
147,011

 
 
 
 
 
 
NON-PERFORMING LOANS, BY TYPE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
$
43,391

 
$
44,045

 
$
54,915

 
$
54,309

 
$
54,209

 
 
 
 
 
 
 
Real estate - commercial mortgage
37,393

 
39,278

 
36,183

 
35,446

 
34,650

 
 
 
 
 
 
 
Real estate - residential mortgage
19,076

 
18,888

 
20,169

 
20,972

 
21,643

 
 
 
 
 
 
 
Consumer and home equity
10,362

 
12,038

 
12,272

 
11,803

 
12,472

 
 
 
 
 
 
 
Real estate - construction
9,784

 
9,319

 
10,931

 
12,197

 
13,415

 
 
 
 
 
 
 
Leasing
90

 
176

 
172

 
32

 
80

 
 
 
 
 
 
 
Total non-performing loans
$
120,096

 
$
123,744

 
$
134,642

 
$
134,759

 
$
136,469

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real-estate - residential mortgage
$
24,810

 
$
25,055

 
$
25,602

 
$
26,016

 
$
26,193

 
 
 
 
 
 
 
Consumer and home equity
16,216

 
16,212

 
16,091

 
15,584

 
14,822

 
 
 
 
 
 
 
Real-estate - commercial mortgage
15,690

 
16,420

 
18,181

 
13,959

 
14,439

 
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
10,342

 
11,199

 
11,740

 
10,820

 
7,512

 
 
 
 
 
 
 
Real estate - construction
—

 
—

 
—

 
—

 
169

 
 
 
 
 
 
 
Total accruing TDRs
$
67,058

 
$
68,886

 
$
71,614

 
$
66,379

 
$
63,135

 
 
 
 
 
 
 
Non-accrual TDRs (1)
23,238

 
24,743

 
24,897

 
29,051

 
28,742

 
 
 
 
 
 
 
Total TDRs
$
90,296

 
$
93,629

 
$
96,511

 
$
95,430

 
$
91,877

 
 
 
 
 
 
(1) Included within non-accrual loans above.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DELINQUENCY RATES, BY TYPE:
Total Delinquency %
 
 
 
 
 
 
 
 
Sep 30
 
Jun 30
 
Mar 31
 
Dec 31
 
Sep 30
 
 
 
 
 
 
 
2018
 
2018
 
2018
 
2017
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
0.81
%
 
0.77
%
 
0.77
%
 
0.77
%
 
0.75
%
 
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
1.21
%
 
1.44
%
 
1.48
%
 
1.50
%
 
1.54
%
 
 
 
 
 
 
 
Real estate - construction
1.04
%
 
1.02
%
 
1.12
%
 
1.32
%
 
1.50
%
 
 
 
 
 
 
 
Real estate - residential mortgage
1.95
%
 
1.90
%
 
1.91
%
 
2.04
%
 
2.25
%
 
 
 
 
 
 
 
Consumer, home equity, leasing and other
1.31
%
 
1.22
%
 
1.20
%
 
1.37
%
 
1.38
%
 
 
 
 
 
 
 
Total
1.15
%
 
1.18
%
 
1.19
%
 
1.24
%
 
1.28
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





FULTON FINANCIAL CORPORATION
 
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

 
in thousands, except per share data and percentages
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Explanatory note:
This press release contains supplemental financial 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
 
 
 
 
 
 
 
Sep 30
 
Jun 30
 
Mar 31
 
Dec 31
 
Sep 30
 
 
 
 
 
 
 
 
2018
 
2018
 
2018
 
2017
 
2017
 
Shareholders' equity (tangible), per share
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders' equity
 
 
$
2,283,014

 
$
2,245,785

 
$
2,235,493

 
$
2,229,857

 
$
2,225,786

 
Less: Goodwill and intangible assets
 
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
Tangible shareholders' equity (numerator)
 
 
$
1,751,458

 
$
1,714,229

 
$
1,703,937

 
$
1,698,301

 
$
1,694,230

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares outstanding, end of period (denominator)
 
 
176,019

 
175,847

 
175,404

 
175,170

 
175,057

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders' equity (tangible), per share
 
 
$
9.95

 
$
9.75

 
$
9.71

 
$
9.70

 
$
9.68

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average shareholders' equity (tangible)
 
 
 
 
 
 
 
Net income (numerator)
 
$
65,633

 
$
35,197

 
$
49,480

 
$
34,001

 
$
48,905

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average shareholders' equity
 
 
$
2,269,093

 
$
2,246,904

 
$
2,224,615

 
$
2,237,031

 
$
2,215,389

 
Less: Average goodwill and intangible assets
 
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
Average tangible shareholders' equity (denominator)
 
$
1,737,537

 
$
1,715,348

 
$
1,693,059

 
$
1,705,475

 
$
1,683,833

 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average shareholders' equity (tangible), annualized
 
14.99
%
 
8.23
%
 
11.85
%
 
7.91
%
 
11.52
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible Common Equity to Tangible Assets (TCE Ratio)
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders' equity
 
 
$
2,283,014

 
$
2,245,785

 
$
2,235,493

 
$
2,229,857

 
$
2,225,786

 
Less: Intangible assets
 
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
Tangible shareholders' equity (numerator)
 
 
$
1,751,458

 
$
1,714,229

 
$
1,703,937

 
$
1,698,301

 
$
1,694,230

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
 
 
 
 
 
$
20,364,810

 
$
20,172,539

 
$
19,948,941

 
$
20,036,905

 
$
20,062,860

 
Less: Intangible assets
 
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
Total tangible assets (denominator)
 
 
$
19,833,254

 
$
19,640,983

 
$
19,417,385

 
$
19,505,349

 
$
19,531,304

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible Common Equity to Tangible Assets
 
 
8.83
%
 
8.73
%
 
8.78
%
 
8.71
%
 
8.67
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Efficiency ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest expense
 
 
$
135,413

 
$
133,345

 
$
136,661

 
$
138,452

 
$
132,157

 
Less: Amortization on tax credit investments
 
 
(1,637
)
 
(1,637
)
 
(1,637
)
 
(3,376
)
 
(3,503
)
 
Non-interest expense (numerator)
 
 
$
133,776

 
$
131,708

 
$
135,024

 
$
135,076

 
$
128,654

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income (fully taxable equivalent)
 
 
$
163,194

 
$
159,027

 
$
154,232

 
$
155,253

 
$
152,721

 
Plus: Total Non-interest income
 
 
51,032

 
49,094

 
45,875

 
56,956

 
51,974

 
Less: Investment securities gains
 
 
(14
)
 
(4
)
 
(19
)
 
(1,932
)
 
(4,597
)
 
Net interest income (denominator)
 
 
$
214,212

 
$
208,117

 
$
200,088

 
$
210,277

 
$
200,098

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Efficiency ratio
 
 
62.5
%
 
63.3
%
 
67.5
%
 
64.2
%
 
64.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-performing assets to tangible shareholders' equity and allowance for credit losses
 
Non-performing assets (numerator)
 
 
$
130,780

 
$
134,925

 
$
145,386

 
$
144,582

 
$
147,011

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible shareholders' equity
 
 
$
1,751,458

 
$
1,714,229

 
1,703,937

 
1,698,301

 
$
1,694,230

 
Plus: Allowance for credit losses
 
 
167,826

 
169,247

 
176,019

 
176,084

 
174,749

 
Tangible shareholders' equity and allowance for credit losses (denominator)
$
1,919,284

 
$
1,883,476

 
$
1,879,956

 
$
1,874,385

 
$
1,868,979

 
 
 
 
 
 
 
 
 
 
 
 
Non-performing assets to tangible shareholders' equity and allowance for credit losses
6.81
%
 
7.16
%
 
7.73
%
 
7.71
%
 
7.87
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



Pre-provision net revenue
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
 
 
$
160,127

 
$
156,067

 
$
151,318

 
$
149,413

 
$
146,809

 
Non-interest income
 
 
 
51,033

 
49,094

 
45,875

 
56,956

 
51,974

 
Less: Investment securities gains
 
 
 
(14
)
 
(4
)
 
(19
)
 
(1,932
)
 
(4,597
)
 
Total revenue
 
 
 
 
$
211,146

 
$
205,157

 
$
197,174

 
$
204,437

 
$
194,186

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest expense
 
 
 
$
135,413

 
$
133,345

 
$
136,661

 
$
138,452

 
$
132,157

 
Less: Amortization on tax credit investments
 
 
(1,637
)
 
(1,637
)
 
(1,637
)
 
(3,376
)
 
(3,503
)
 
Total non-interest expense
 
 
 
$
133,776

 
$
131,708

 
$
135,024

 
$
135,076

 
$
128,654

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-provision net revenue
 
 
$
77,370

 
$
73,449

 
$
62,150

 
$
69,361

 
$
65,532

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Net Income; Net Income per share, diluted; and Selected Financial Ratios, adjusted to exclude the Tax Charge recognized in the fourth quarter of 2017 related to the re-measurement of net deferred tax assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income and Net income per share, diluted
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
 
 
 
 
$
34,001

 
 
 
Plus: Re-measurement of net deferred tax assets
 
 
 
 
 
 
15,634

 
 
 
Net Income, adjusted (numerator)
 
 
 
 
 
 
$
49,635

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares (diluted)
 
 
 
 
 
 
176,374

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per share, diluted
 
 
 
 
 
 
 
 
 
 
 
$
0.28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
 
 
 
 
$
34,001

 
 
 
Plus: Re-measurement of net deferred tax assets
 
 
 
 
 
 
15,634

 
 
 
Net Income, adjusted (numerator)
 
 
 
 
 
 
$
49,635

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average assets (denominator)
 
 
 
 
 
 
 
 
 
 
 
$
20,072,579

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets, annualized
 
 
 
 
 
 
0.98
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average shareholders' equity
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
 
 
 
 
$
34,001

 
 
 
Plus: Re-measurement of net deferred tax assets
 
 
 
 
 
 
15,634

 
 
 
Net Income, adjusted (numerator)
 
 
 
 
 
 
$
49,635

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average shareholders' equity (denominator)
 
 
 
 
 
 
$
2,237,031

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average shareholders' equity, annualized
 
 
 
 
 
 
8.80
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average shareholders' equity (tangible)
 
 
 
 
 
 
 
 
 
 
Net Income, as reported
 
 
 
 
 
 
 
 
 
 
 
$
34,001

 
 
 
Plus: Re-measurement of net deferred tax assets
 
 
 
 
 
 
15,634

 
 
 
Net Income, adjusted (numerator)
 
 
 
 
 
 
$
49,635

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average shareholders' equity
 
 
 
 
 
 
 
 
 
 
 
$
2,237,031

 
 
 
Less: Average goodwill and intangible assets
 
 
 
 
 
 
(531,556
)
 
 
 
Average tangible shareholders' equity (denominator)
 
 
 
 
 
 
$
1,705,475

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average shareholders' equity (tangible), annualized
 
 
 
 
 
 
11.55
%