EX-99.2 3 exhibit99212-31x18.htm SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER AND YEAR ENDED DEC 31, 2018 Exhibit
FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
 
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
 
 
 
 
 
 
 
dollars 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.
 
 
 
 
 
 
 
 
 
 
 
 




Exhibit 99.2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
 
 
 
 
 
 
dollars in thousands
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 % Change from
 
 
December 31
 
September 30
 
June 30
 
March 31
 
December 31
 
September 30
 
December 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

 
—
 %
 
(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

 
—

 
N/M

 
N/M

 
Federal funds purchased
—

 
50,000

 
343,000

 
395,000

 
220,000

 
N/M

 
(100.0
)%
 
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)
 
 
 
 
 
 
 
 
in thousands, except per-share data and percentages
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 % Change from
 
 
Year ended
 
 
 
 
 
 
 
Dec 31
 
Sep 30
 
Jun 30
 
Mar 31
 
Dec 31
 
Sep 30
 
Dec 31
 
 
December 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
)%
 
(8.8
)%
 
 
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

 
1.8
 %
 
(3.5
)%
 
 
3,932

 
4,403

 
(10.7
)%
 
 
Foreign exchange income
 
 
484

 
542

 
591

 
533

 
510

 
(10.7
)%
 
(5.1
)%
 
 
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
 %
 
 
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
 %
 
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
)%
 
 
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

 
N/M

 
 
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

 
180.827

 
3.83%
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
111,252

 
 
 
 
 
100,568

 
 
 
 
 
112,958

 
 
 
 
 
Premises and equipment
233,445

 
 
 
 
 
231,280

 
 
 
 
 
223,698

 
 
 
 
 
Other assets
1,131,548

 
 
 
 
 
1,137,293

 
 
 
 
 
1,163,686

 
 
 
 
 
Less: allowance for loan losses
(155,411
)
 
 
 
 
 
(157,121
)
 
 
 
 
 
(173,253
)
 
 
 
 
 
Total Assets
$
20,512,130

 
 
 
 
 
$
20,273,232

 
 
 
 
 
$
20,072,579

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
$
4,225.157

 
$
7,448

 
0.70%
 
$
4,116,051

 
$
6,378

 
0.61%
 
$
4,037,879

 
$
4,111

 
0.40%
 
Savings deposits
4,979.712

 
9,745

 
0.78%
 
4,718,148

 
7,569

 
0.64%
 
4,752,337

 
4,594

 
0.38%
 
Brokered deposits
164,280

 
969

 
2.34%
 
162,467

 
840

 
2.05%
 
105,135

 
336

 
1.27%
 
Time deposits
2,722.141

 
9,997

 
1.46%
 
2,672,548

 
9,032

 
1.34%
 
2,706,982

 
8,041

 
1.18%
 
Total Interest-bearing Deposits
12,091,290

 
28,159

 
0.92%
 
11,669,214

 
23,819

 
0.81%
 
11,602,333

 
17,082

 
0.58%
 
Short-term borrowings
504,550

 
1,410

 
1.11%
 
724,132

 
2,002

 
1.09%
 
391,284

 
372

 
0.38%
 
FHLB advances and long-term debt
988,914

 
8,096

 
3.26%
 
988,748

 
8,100

 
3.26%
 
1,038,257

 
8,120

 
3.12%
 
Total Interest-bearing Liabilities
13,584,754

 
37,665

 
1.10%
 
13,382,094

 
33,921

 
1.01%
 
13,031,874

 
25,574

 
0.78%
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
4,321.776

 
 
 
 
 
4,298,020

 
 
 
 
 
4,454,456

 
 
 
 
 
Other
323.931

 
 
 
 
 
324,025

 
 
 
 
 
349,218

 
 
 
 
 
Total Liabilities
18,230.461

 
 
 
 
 
18,004,139

 
 
 
 
 
17,835,548

 
 
 
 
 
Shareholders' equity
2,281.669

 
 
 
 
 
2,269,093

 
 
 
 
 
2,237,031

 
 
 
 
 
Total Liabilities and Shareholders' Equity
$
20,512,130

 
 
 
 
 
$
20,273,232

 
 
 
 
 
$
20,072,579

 
 
 
 
 
Net interest income/net interest margin (fully taxable equivalent)
 
166,124

 
3.44%
 
 
 
163,194

 
3.42%
 
 
 
155,253

 
3.29%
 
Tax equivalent adjustment
 
 
(3,180
)
 
 
 
 
 
(3,067
)
 
 
 
 
 
(5,840
)
 
 
 
Net interest income
 
 
$
162,944

 
 
 
 
 
$
160,127

 
 
 
 
 
$
149,413

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Three months ended December 31, 2018 and September 30, 2018 are presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. December 31, 2017 is 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 0.84%, 0.76% and 0.58% for the three months ended December 31, 2018, September 30, 2018 and December 31, 2017, respectively.
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
% Change from
 
 
 
 
 
 
Dec 31
 
Sep 30
 
Jun 30
 
Mar 31
 
Dec 31
 
Sep 30
 
Dec 31
 
 
 
 
 
 
2018
 
2018
 
2018
 
2018
 
2017
 
2018
 
2017
 
 
 
 
Loans, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
6,343,024

 
$
6,309,663

 
$
6,298,534

 
$
6,305,821

 
$
6,232,674

 
0.5
 %
 
1.8
 %
 
 
 
 
 
Commercial - industrial, financial and agricultural
4,329,937

 
4,304,320

 
4,335,097

 
4,288,634

 
4,263,199

 
0.6
 %
 
1.6
 %
 
 
 
 
 
Real estate - residential mortgage
2,209,993

 
2,142,977

 
2,026,161

 
1,958,505

 
1,926,067

 
3.1
 %
 
14.7
 %
 
 
 
 
 
Real estate - home equity
1,459,647

 
1,474,011

 
1,502,936

 
1,538,974

 
1,560,713

 
(1.0
)%
 
(6.5
)%
 
 
 
 
 
Real estate - construction
931,724

 
969,575

 
978,327

 
984,242

 
1,004,166

 
(3.9
)%
 
(7.2
)%
 
 
 
 
 
Consumer
406,436

 
375,656

 
345,572

 
315,927

 
312,320

 
8.2
 %
 
30.1
 %
 
 
 
 
 
Leasing and other
284,876

 
285,941

 
281,750

 
268,930

 
261,046

 
(0.4
)%
 
9.1
 %
 
 
 
 
 
Total Loans, net of unearned income
$
15,965,637

 
$
15,862,143

 
$
15,768,377

 
$
15,661,033

 
$
15,560,185

 
0.7
 %
 
2.6
 %
 
 
 
 
Deposits, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand
$
4,321,776

 
$
4,298,020

 
$
4,281,574

 
$
4,246,168

 
$
4,454,456

 
0.6
 %
 
(3.0
)%
 
 
 
 
 
Interest-bearing demand
4,225,157

 
4,116,051

 
3,952,115

 
3,958,894

 
4,037,879

 
2.7
 %
 
4.6
 %
 
 
 
 
 
Savings and money market accounts
4,979,712

 
4,718,148

 
4,538,083

 
4,494,445

 
4,752,337

 
5.5
 %
 
4.8
 %
 
 
 
 
 
Total demand and savings
13,526,645

 
13,132,219

 
12,771,772

 
12,699,507

 
13,244,672

 
3.0
 %
 
2.1
 %
 
 
 
 
 
Brokered deposits
164,280

 
162,467

 
85,242

 
74,026

 
105,135

 
1.1
 %
 
56.3
 %
 
 
 
 
 
Time deposits
2,722,141

 
2,672,548

 
2,660,410

 
2,646,779

 
2,706,982

 
1.9
 %
 
0.6
 %
 
 
 
 
 
Total Deposits
$
16,413,066

 
$
15,967,234

 
$
15,517,424

 
$
15,420,312

 
$
16,056,789

 
2.8
 %
 
2.2
 %
 
 
 
 
Short-term borrowings, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer repurchase agreements
$
64,102

 
$
148,660

 
$
162,276

 
$
175,292

 
$
179,948

 
(56.9
)%
 
(64.4
)%
 
 
 
 
 
Customer short-term promissory notes
312,742

 
298,896

 
316,049

 
308,725

 
195,951

 
4.6
 %
 
59.6
 %
 
 
 
 
 
Federal funds purchased
43

 
145,793

 
398,297

 
379,822

 
15,374

 
(100.0
)%
 
(99.7
)%
 
 
 
 
 
Short-term FHLB advances and other borrowings
127,663

 
130,783

 
146,538

 
33,000

 
11

 
(2.4
)%
 
N/M

 
 
 
 
 
Total Short-term Borrowings
$
504,550

 
$
724,132

 
$
1,023,160

 
$
896,839

 
$
391,284

 
(30.3
)%
 
28.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
 
 
 
 
 
 
dollars in thousands
 
 
 
 
 
 
 
 
 
Year Ended December 31
 
 
 
2018
 
2017
 
 
 
Average
 
 
 
 
 
Average
 
 
 
 
 
 
 
Balance
 
Interest (1)
 
Yield/Rate
 
Balance
 
Interest (1)
 
Yield/Rate
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
Loans, net of unearned income
 
$
15,815,263

 
$
691,954

 
4.38
 %
 
$
15,236,612

 
$
620,803

 
4.07
%
 
Taxable investment securities
 
2,246,555

 
56,039

 
2.49
 %
 
2,132,426

 
47,029

 
2.21
%
 
Tax-exempt investment securities
 
416,119

 
15,285

 
3.65
 %
 
407,157

 
17,794

 
4.37
%
 
Equity securities
 
126

 
5

 
3.97
 %
 
8,331

 
500

 
6.00
%
 
Total Investment Securities
 
2,662,800

 
71,329

 
2.68
 %
 
2,547,914

 
65,323

 
2.56
%
 
Loans held for sale
 
22,970

 
1,159

 
5.05
 %
 
20,008

 
876

 
4.38
%
 
Other interest-earning assets
 
382,569

 
6,193

 
1.62
 %
 
451,015

 
5,066

 
1.12
%
 
Total Interest-earning Assets
 
18,883,602

 
770,635

 
4.08
 %
 
18,255,549

 
692,068

 
3.79
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-earning assets:
 
 
 
 
 
 
 
Cash and due from banks
 
104,595

 
 
 
 
 
108,523

 
 
 
 
 
Premises and equipment
 
231,762

 
 
 
 
 
219,960

 
 
 
 
 
Other assets
 
1,123,857

 
 
 
 
 
1,168,759

 
 
 
 
 
Less: allowance for loan losses
 
(160,614
)
 
 
 
 
 
(172,424
)
 
 
 
 
 
Total Assets
 
$
20,183,202

 
 
 
 
 
$
19,580,367

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
Demand deposits
 
$
4,063,929

 
$
22,789

 
0.56
 %
 
$
3,831,865

 
$
12,976

 
0.34
%
 
Savings deposits
 
4,684,023

 
27,226

 
0.58
 %
 
4,468,205

 
13,477

 
0.30
%
 
Brokered deposits
 
121,863

 
2,480

 
2.04
 %
 
49,126

 
613

 
1.25
%
 
Time deposits
 
2,675,670

 
35,217

 
1.32
 %
 
2,721,724

 
30,726

 
1.13
%
 
Total Interest-bearing Deposits
 
11,545,485

 
87,712

 
0.76
 %
 
11,070,920

 
57,792

 
0.52
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings
 
785,923

 
8,489

 
1.07
 %
 
533,564

 
2,779

 
0.52
%
 
FHLB advances and long-term debt
 
977,573

 
31,857

 
3.26
 %
 
1,034,444

 
32,932

 
3.18
%
 
Total Interest-bearing Liabilities
 
13,308,981

 
128,058

 
0.96
 %
 
12,638,928

 
93,503

 
0.74
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
Demand deposits
 
4,287,121

 
 
 
 
 
4,410,301

 
 
 
 
 
Other
 
331,336

 
 
 
 
 
337,275

 
 
 
 
 
Total Liabilities
 
17,927,438

 
 
 
 
 
17,386,504

 
 
 
 
 
Shareholders' equity
 
2,255,764

 
 
 
 
 
2,193,863

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Liabilities and Shareholders' Equity
 
$
20,183,202

 
 
 
 
 
$
19,580,367

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income/net interest margin (fully taxable equivalent)
 
 
 
642,577

 
3.40
 %
 
 
 
598,565

 
3.28
%
 
Tax equivalent adjustment
 
 
 
(12,121
)
 
 
 
 
 
(23,201
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
 
 
$
630,456

 
 
 
 
 
$
575,364

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Year ended December 31, 2018 is presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. Prior period is 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 0.73% and 0.55% for the year ended December 31, 2018 and 2017, respectively.
 
 
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
 
 
 
 
 
 
 
 
 
Year Ended
 
 
 
 
 
 
 
 
 
 
 
December 31
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
% Change
 
 
 
 
 
 
Loans, by type:
 
 
 
 
 
 
 
Real estate - commercial mortgage
 
$
6,314,349

 
$
6,161,731

 
2.5
 %
 
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
 
4,314,584

 
4,236,810

 
1.8
 %
 
 
 
 
 
 
 
Real estate - residential mortgage
 
2,085,258

 
1,779,270

 
17.2
 %
 
 
 
 
 
 
 
Real estate - home equity
 
1,493,620

 
1,582,705

 
(5.6
)%
 
 
 
 
 
 
 
Real estate - construction
 
965,835

 
921,879

 
4.8
 %
 
 
 
 
 
 
 
Consumer
 
361,186

 
304,162

 
18.7
 %
 
 
 
 
 
 
 
Leasing and other
 
280,431

 
250,055

 
12.1
 %
 
 
 
 
 
 
 
Total Loans, net of unearned income
 
$
15,815,263

 
$
15,236,612

 
3.8
 %
 
 
 
 
 
 
Deposits, by type:
 
 
 
 
 
 
 
Noninterest-bearing demand
 
$
4,287,121

 
$
4,410,301

 
(2.8
)%
 
 
 
 
 
 
 
Interest-bearing demand
 
4,063,929

 
3,831,865

 
6.1
 %
 
 
 
 
 
 
 
Savings and money market accounts
 
4,684,023

 
4,468,205

 
4.8
 %
 
 
 
 
 
 
 
Total demand and savings
 
13,035,073

 
12,710,371

 
2.6
 %
 
 
 
 
 
 
 
Brokered deposits
 
121,863

 
49,126

 
148.1
 %
 
 
 
 
 
 
 
Time deposits
 
2,675,670

 
2,721,724

 
(1.7
)%
 
 
 
 
 
 
 
Total Deposits
 
$
15,832,606

 
$
15,481,221

 
2.3
 %
 
 
 
 
 
 
Short-term borrowings, by type:
 
 
 
 
 
 
 
Customer repurchase agreements
 
$
138,198

 
$
188,769

 
(26.8
)%
 
 
 
 
 
 
 
Customer short-term promissory notes
 
308,470

 
108,649

 
183.9
 %
 
 
 
 
 
 
 
Federal funds purchased
 
229,715

 
163,102

 
40.8
 %
 
 
 
 
 
 
 
Short-term FHLB advances and other borrowings
 
109,540

 
73,044

 
50.0
 %
 
 
 
 
 
 
 
Total Short-term Borrowings
 
$
785,923

 
$
533,564

 
47.3
 %
 
 
 
 
 
 




FULTON FINANCIAL CORPORATION
 
 
 
 
 
 
 
 
 
ASSET QUALITY INFORMATION (UNAUDITED)
 
 
 
 
 
 
 
 
 
dollars in thousands
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Year Ended
 
 
Dec 31
 
Sep 30
 
Jun 30
 
Mar 31
 
Dec 31
 
Dec 31
 
 
2018
 
2018
 
2018
 
2018
 
2017
 
2018
 
2017
ALLOWANCE FOR CREDIT LOSSES:
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
167,826

 
$
169,247

 
$
176,019

 
$
176,084

 
$
174,749

 
$
176,084

 
$
171,325

 
Loans charged off:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial - industrial, financial and agricultural
(6,263
)
 
(3,541
)
 
(38,632
)
 
(4,005
)
 
(5,473
)
 
(52,441
)
 
(19,067
)
 
    Consumer and home equity
(1,884
)
 
(1,415
)
 
(1,528
)
 
(1,300
)
 
(1,071
)
 
(6,127
)
 
(4,567
)
 
    Real estate - commercial mortgage
(762
)
 
(650
)
 
(366
)
 
(267
)
 
(220
)
 
(2,045
)
 
(2,169
)
 
    Real estate - residential mortgage
(446
)
 
(483
)
 
(483
)
 
(162
)
 
(152
)
 
(1,574
)
 
(687
)
 
    Real estate - construction
(392
)
 
(212
)
 
(606
)
 
(158
)
 
—

 
(1,368
)
 
(3,765
)
 
    Leasing and other
(889
)
 
(582
)
 
(545
)
 
(505
)
 
(457
)
 
(2,521
)
 
(3,035
)
 
    Total loans charged off
(10,636
)
 
(6,883
)
 
(42,160
)
 
(6,397
)
 
(7,373
)
 
(66,076
)
 
(33,290
)
Recoveries of loans previously charged off:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial - industrial, financial and agricultural
2,647

 
731

 
541

 
1,075

 
941

 
4,994

 
7,771

 
    Consumer and home equity
684

 
607

 
717

 
385

 
466

 
2,393

 
1,969

 
    Real estate - commercial mortgage
94

 
928

 
321

 
279

 
178

 
1,622

 
1,668

 
    Real estate - residential mortgage
100

 
317

 
96

 
107

 
186

 
620

 
786

 
    Real estate - construction
415

 
664

 
444

 
306

 
32

 
1,829

 
1,582

 
    Leasing and other
80

 
595

 
152

 
210

 
175

 
1,037

 
968

 
    Recoveries of loans previously charged off
4,020

 
3,842

 
2,271

 
2,362

 
1,978

 
12,495

 
14,744

Net loans recovered (charged off)
(6,616
)
 
(3,041
)
 
(39,889
)
 
(4,035
)
 
(5,395
)
 
(53,581
)
 
(18,546
)
Provision for credit losses
8,200

 
1,620

 
33,117

 
3,970

 
6,730

 
46,907

 
23,305

Balance at end of period
$
169,410

 
$
167,826

 
$
169,247

 
$
176,019

 
$
176,084

 
$
169,410

 
$
176,084

Net charge-offs (recoveries) to average loans (annualized)
0.17
%
 
0.08
%
 
1.01
%
 
0.10
%
 
0.14
%
 
0.34
%
 
0.12
%
NON-PERFORMING ASSETS:
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-accrual loans
$
128,572

 
$
106,433

 
$
111,116

 
$
122,966

 
$
124,749

 
 
 
 
 
Loans 90 days past due and accruing
11,106

 
13,663

 
12,628

 
11,676

 
10,010

 
 
 
 
 
    Total non-performing loans
139,678

 
120,096

 
123,744

 
134,642

 
134,759

 
 
 
 
 
Other real estate owned
10,518

 
10,684

 
11,181

 
10,744

 
9,823

 
 
 
 
 
Total non-performing assets
$
150,196

 
$
130,780

 
$
134,925

 
$
145,386

 
$
144,582

 
 
 
 
NON-PERFORMING LOANS, BY TYPE:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
$
51,269

 
$
43,391

 
$
44,045

 
$
54,915

 
$
54,309

 
 
 
 
 
Real estate - commercial mortgage
32,153

 
37,393

 
39,278

 
36,183

 
35,446

 
 
 
 
 
Real estate - residential mortgage
19,101

 
19,076

 
18,888

 
20,169

 
20,972

 
 
 
 
 
Consumer and home equity
10,178

 
10,362

 
12,038

 
12,272

 
11,803

 
 
 
 
 
Real estate - construction
7,390

 
9,784

 
9,319

 
10,931

 
12,197

 
 
 
 
 
Leasing
19,587

 
90

 
176

 
172

 
32

 
 
 
 
 
Total non-performing loans
$
139,678

 
$
120,096

 
$
123,744

 
$
134,642

 
$
134,759

 
 
 
 
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:
 
 
 
 
 
 
 
 
 
 
 
 
 
Real-estate - residential mortgage
$
24,102

 
$
24,810

 
$
25,055

 
$
25,602

 
$
26,016

 
 
 
 
 
Consumer and home equity
16,675

 
16,216

 
16,212

 
16,091

 
15,584

 
 
 
 
 
Real-estate - commercial mortgage
15,685

 
15,690

 
16,420

 
18,181

 
13,959

 
 
 
 
 
Commercial - industrial, financial and agricultural
5,143

 
10,342

 
11,199

 
11,740

 
10,820

 
 
 
 
 
Total accruing TDRs
61,605

 
67,058

 
68,886

 
71,614

 
66,379

 
 
 
 
 
Non-accrual TDRs (1)
28,659

 
23,238

 
24,743

 
24,897

 
29,051

 
 
 
 
 
Total TDRs
$
90,264

 
$
90,296

 
$
93,629

 
$
96,511

 
$
95,430

 
 
 
 
(1) Included within non-accrual loans above.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



DELINQUENCY RATES, BY TYPE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Delinquency
 
 
 
 
 
 
Dec 31
 
Sep 30
 
Jun 30
 
Mar 31
 
Dec 31
 
 
 
 
 
 
2018
 
2018
 
2018
 
2018
 
2017
 
 
 
 
 
Real estate - commercial mortgage
0.69
%
 
0.81
%
 
0.77
%
 
0.77
%
 
0.77
%
 
 
 
 
 
Commercial - industrial, financial and agricultural
1.02
%
 
1.21
%
 
1.44
%
 
1.48
%
 
1.50
%
 
 
 
 
 
Real estate - construction
1.08
%
 
1.04
%
 
1.02
%
 
1.12
%
 
1.32
%
 
 
 
 
 
Real estate - residential mortgage
2.14
%
 
1.95
%
 
1.90
%
 
1.91
%
 
2.04
%
 
 
 
 
 
Consumer, home equity, leasing and other
1.24
%
 
1.31
%
 
1.22
%
 
1.20
%
 
1.37
%
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 

1.08
%
 
1.15
%
 
1.18
%
 
1.19
%
 
1.24
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




FULTON FINANCIAL CORPORATION
 
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (UNAUDITED)
 
in thousands, except per share data and percentages
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Explanatory note:
This press release contains certain 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 quarterly 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
 
 
 
 
 
 
 
Dec 31
 
Sep 30
 
Jun 30
 
Mar 31
 
Dec 31
 
 
 
 
 
 
 
 
2018
 
2018
 
2018
 
2018
 
2017
 
Shareholders' equity (tangible), per share
 
 
 
 
 
 
 
 
 
 
 
Shareholders' equity
 
 
$
2,247,573

 
$
2,283,014

 
$
2,245,785

 
$
2,235,493

 
$
2,229,857

 
Less: Goodwill and intangible assets
 
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
Tangible shareholders' equity (numerator)
 
$
1,716,017

 
$
1,751,458

 
$
1,714,229

 
$
1,703,937

 
$
1,698,301

 
Shares outstanding, end of period (denominator)
 
170,184

 
176,019

 
175,847

 
175,404

 
175,170

 
Shareholders' equity (tangible), per share
 
$
10.08

 
$
9.95

 
$
9.75

 
$
9.71

 
$
9.70

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average common shareholders' equity (tangible)
 
 
 
 
 
 
 
 
 
 
 
Net Income - Numerator
 
$
58,083

 
$
65,633

 
$
35,197

 
$
49,480

 
$
34,001

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average shareholders' equity
 
 
$
2,281,669

 
$
2,269,093

 
$
2,246,904

 
$
2,224,615

 
$
2,237,031

 
Less: Average goodwill and intangible assets
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
Average tangible shareholders' equity (denominator)
 
$
1,750,113

 
$
1,737,537

 
$
1,715,348

 
$
1,693,059

 
$
1,705,475

 
Return on average common shareholders' equity (tangible), annualized
 
13.17
%
 
14.99
%
 
8.23
%
 
11.85
%
 
7.91
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible Common Equity to Tangible Assets (TCE Ratio)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders' equity
 
 
 
$
2,247,573

 
$
2,283,014

 
$
2,245,785

 
$
2,235,493

 
$
2,229,857

 
Less: Intangible assets
 
 
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
Tangible shareholders' equity (numerator)
 
 
 
$
1,716,017

 
$
1,751,458

 
$
1,714,229

 
$
1,703,937

 
$
1,698,301

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
 
 
$
20,682,152

 
$
20,364,810

 
$
20,172,539

 
$
19,948,941

 
$
20,036,905

 
Less: Intangible assets
 
 
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
Total tangible assets (denominator)
 
 
 
$
20,150,596

 
$
19,833,254

 
$
19,640,983

 
$
19,417,385

 
$
19,505,349

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible Common Equity to Tangible Assets
 
 
 
8.52
%
 
8.83
%
 
8.73
%
 
8.78
%
 
8.71
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Efficiency ratio
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest expense
 
 
$
140,685

 
$
135,413

 
$
133,345

 
$
136,661

 
$
138,452

 
Less: Amortization of tax credit investments
 
 
(6,538
)
 
(1,637
)
 
(1,637
)
 
(1,637
)
 
(3,376
)
 
Non-interest expense (numerator)
 
 
$
134,147

 
$
133,776

 
$
131,708

 
$
135,024

 
$
135,076

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income (fully taxable equivalent)
 
 
$
166,124

 
$
163,194

 
$
159,027

 
$
154,232

 
$
155,253

 
Plus: Total Non-interest income
 
 
49,523

 
51,033

 
49,094

 
45,875

 
56,956

 
Less: Investment securities gains
 
 
—

 
(14
)
 
(4
)
 
(19
)
 
(1,932
)
 
Net interest income (denominator)
 
 
$
215,647

 
$
214,213

 
$
208,117

 
$
200,088

 
$
210,277

 
Efficiency ratio
 
 
62.2
%
 
62.5
%
 
63.3
%
 
67.5
%
 
64.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-performing assets to tangible common shareholders' equity and allowance for credit losses
 
 
 
 
 
 
 
 
 
 
 
 
Non-performing assets (numerator)
 
 
$
150,196

 
$
130,780

 
$
134,925

 
$
145,386

 
$
144,582

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible shareholders' equity
 
 
$
1,716,017

 
$
1,751,458

 
1,714,229

 
1,703,937

 
$
1,698,301

 
Plus: Allowance for credit losses
 
 
169,410

 
167,826

 
169,247

 
176,019

 
176,084

 
Tangible shareholders' equity and allowance for credit losses (denominator)
$
1,885,427

 
$
1,919,284

 
$
1,883,476

 
$
1,879,956

 
$
1,874,385

 
Non-performing assets to tangible common shareholders' equity and allowance for credit losses
7.97
%
 
6.81
%
 
7.16
%
 
7.73
%
 
7.71
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-provision net revenue
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
 
 
$
162,944

 
$
160,127

 
$
156,067

 
$
151,318

 
$
149,413

 
Non-interest income
 
 
 
49,523

 
51,033

 
49,094

 
45,875

 
56,956

 
Less: Investment securities gains
 
 
 
—

 
(14
)
 
(4
)
 
(19
)
 
(1,932
)
 
Total revenue
 
 
 
$
212,467

 
$
211,146

 
$
205,157

 
$
197,174

 
$
204,437

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest expense
 
 
 
$
140,685

 
$
135,413

 
$
133,345

 
$
136,661

 
$
138,452

 
Less: Amortization of tax credit investments (1)
 
 
(6,538
)
 
(1,637
)
 
(1,637
)
 
(1,637
)
 
(3,376
)
 
Total non-interest expense, as adjusted
 
 
 
$
134,147

 
$
133,776

 
$
131,708

 
$
135,024

 
$
135,076

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-provision net revenue
 
 
 
 
 
$
78,320

 
$
77,370

 
$
73,449

 
$
62,150

 
$
69,361

 
 



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

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

 
Net Income, adjusted (numerator)
 
 
 
 
 
 
 
 
 
 
$
49,635

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares (diluted) (denominator)
 
 
 
 
 
 
 
 
 
 
176,374

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per share, diluted
 
 
 
 
 
 
 
 
 
 
$
0.28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
34,001

 
Plus: Estimated 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: Estimated 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: Estimated 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
%