FULTON FINANCIAL CORP - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED JUN 30, 2017

Attached files

file	filename
EX-99.3 - PRESENTATION MATERIALS TO BE DISCUSSED DURING THE CONFERENCE CALL AND WEBCAST - FULTON FINANCIAL CORP	q2ccearningspresentation.htm
EX-99.1 - PRESS RELEASE DATED JULY 18, 2017 - FULTON FINANCIAL CORP	exhibit9916-30x17.htm
8-K - 8-K - FULTON FINANCIAL CORP	a8-k6x30x17.htm



Exhibit 99.2

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
																	% Change from
		Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31		Jun 30
		2017			2017			2016			2016			2016			2017		2016
ASSETS
	Cash and due from banks	$	94,938		$	93,844		$	118,763		$	86,497		$	84,647		1.2	%	12.2	%
	Other interest-earning assets	392,842			350,387			291,252			428,966			408,086			12.1	%	(3.7	)%
	Loans held for sale	62,354			24,783			28,697			27,836			34,330			151.6	%	81.6	%
	Investment securities	2,488,699			2,506,017			2,559,227			2,508,068			2,529,724			(0.7	)%	(1.6	)%
	Loans, net of unearned income	15,346,617			14,963,177			14,699,272			14,391,238			14,155,159			2.6	%	8.4	%
	Allowance for loan losses	(172,342		)	(170,076		)	(168,679		)	(162,526		)	(162,546		)	1.3	%	6.0	%
	Net loans	15,174,275			14,793,101			14,530,593			14,228,712			13,992,613			2.6	%	8.4	%
	Premises and equipment	217,558			216,171			217,806			228,009			228,861			0.6	%	(4.9	)%
	Accrued interest receivable	47,603			46,355			46,294			43,600			43,316			2.7	%	9.9	%
	Goodwill and intangible assets	531,556			531,556			531,556			531,556			531,556			—	%	—	%
	Other assets	637,610			616,362			620,059			617,818			626,902			3.4	%	1.7	%
	Total Assets	$	19,647,435		$	19,178,576		$	18,944,247		$	18,701,062		$	18,480,035		2.4	%	6.3	%
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits	$	15,357,361		$	15,090,344		$	15,012,864		$	14,952,479		$	14,292,564		1.8	%	7.5	%
	Short-term borrowings	694,859			453,317			541,317			264,042			722,214			53.3	%	(3.8	)%
	Other liabilities	365,484			342,323			339,548			389,819			392,708			6.8	%	(6.9	)%
	FHLB advances and long-term debt	1,037,961			1,137,909			929,403			965,286			965,552			(8.8	)%	7.5	%
	Total Liabilities	17,455,665			17,023,893			16,823,132			16,571,626			16,373,038			2.5	%	6.6	%
	Shareholders' equity	2,191,770			2,154,683			2,121,115			2,129,436			2,106,997			1.7	%	4.0	%
	Total Liabilities and Shareholders' Equity	$	19,647,435		$	19,178,576		$	18,944,247		$	18,701,062		$	18,480,035		2.4	%	6.3	%

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
	Real estate - commercial mortgage	$	6,262,008		$	6,118,533		$	6,018,582		$	5,818,915		$	5,635,347		2.3	%	11.1	%
	Commercial - industrial, financial and agricultural	4,245,849			4,167,809			4,087,486			4,024,119			4,099,177			1.9	%	3.6	%
	Real estate - residential mortgage	1,784,712			1,665,142			1,601,994			1,542,696			1,447,292			7.2	%	23.3	%
	Real estate - home equity	1,579,739			1,595,901			1,625,115			1,640,421			1,647,319			(1.0	)%	(4.1	)%
	Real estate - construction	938,900			882,983			843,649			861,634			853,699			6.3	%	10.0	%
	Consumer	283,156			288,826			291,470			283,673			278,071			(2.0	)%	1.8	%
	Leasing and other	252,253			243,983			230,976			219,780			194,254			3.4	%	29.9	%
	Total Loans, net of unearned income	$	15,346,617		$	14,963,177		$	14,699,272		$	14,391,238		$	14,155,159		2.6	%	8.4	%
Deposits, by type:
	Noninterest-bearing demand	$	4,574,619		$	4,417,733		$	4,376,137		$	4,210,099		$	4,125,375		3.6	%	10.9	%
	Interest-bearing demand	3,650,204			3,702,663			3,703,712			3,703,048			3,358,536			(1.4	)%	8.7	%
	Savings and money market accounts	4,386,128			4,251,574			4,179,773			4,235,015			3,986,008			3.2	%	10.0	%
	Time deposits	2,746,410			2,718,374			2,753,242			2,804,317			2,822,645			1.0	%	(2.7	)%
	Total Deposits	$	15,357,361		$	15,090,344		$	15,012,864		$	14,952,479		$	14,292,564		1.8	%	7.5	%
Short-term borrowings, by type:
	Customer repurchase agreements	$	174,224		$	181,170		$	195,734		$	189,727		$	168,521		(3.8	)%	3.4	%
	Customer short-term promissory notes	74,366			87,726			67,013			65,871			69,509			(15.2	)%	7.0	%
	Short-term FHLB advances	240,000			130,000			—			—			35,000			84.6	%	585.7	%
	Federal funds purchased	206,269			54,421			278,570			8,444			449,184			279.0	%	(54.1	)%
	Total Short-term Borrowings	$	694,859		$	453,317		$	541,317		$	264,042		$	722,214		53.3	%	(3.8	)%


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				Six Months Ended
		Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31		Jun 30		Jun 30
		2017			2017			2016			2016			2016			2017		2016		2017			2016			% Change
Interest Income:
	Interest income	$	163,881		$	158,487		$	153,012		$	151,468		$	149,309		3.4	%	9.8	%	$	322,368		$	298,620		8.0	%
	Interest expense	22,318			20,908			20,775			20,903			20,393			6.7	%	9.4	%	43,226			40,650			6.3	%
	Net Interest Income	141,563			137,579			132,237			130,565			128,916			2.9	%	9.8	%	279,142			257,970			8.2	%
	Provision for credit losses	6,700			4,800			5,000			4,141			2,511			39.6	%	166.8	%	11,500			4,041			N/M
	Net Interest Income after Provision	134,863			132,779			127,237			126,424			126,405			1.6	%	6.7	%	267,642			253,929			5.4	%
Non-Interest Income:
	Other service charges and fees	14,342			12,437			13,333			14,407			12,983			15.3	%	10.5	%	26,779			23,733			12.8	%
	Service charges on deposit accounts	12,914			12,400			12,814			13,078			12,896			4.1	%	0.1	%	25,314			25,454			(0.6	)%
	Investment management and trust services	12,132			11,808			11,610			11,425			11,247			2.7	%	7.9	%	23,940			22,235			7.7	%
	Mortgage banking income	6,141			4,596			6,959			4,529			3,897			33.6	%	57.6	%	10,737			7,927			35.4	%
	Other	5,406			4,326			6,514			4,708			5,038			25.0	%	7.3	%	9,732			8,902			9.3	%
	Non-Interest Income before Investment Securities Gains	50,935			45,567			51,230			48,147			46,061			11.8	%	10.6	%	96,502			88,251			9.3	%
	Investment securities gains	1,436			1,106			1,525			2			76			29.8	%	N/M		2,542			1,023			148.5	%
	Total Non-Interest Income	52,371			46,673			52,755			48,149			46,137			12.2	%	13.5	%	99,044			89,274			10.9	%
Non-Interest Expense:
	Salaries and employee benefits	74,496			69,236			73,256			70,696			70,029			7.6	%	6.4	%	143,732			139,401			3.1	%
	Net occupancy expense	12,316			12,663			11,798			11,782			11,811			(2.7	)%	4.3	%	24,979			24,031			3.9	%
	Other outside services	7,708			5,546			6,536			5,783			5,508			39.0	%	39.9	%	13,254			11,564			14.6	%
	Data processing	4,619			4,286			4,530			4,610			5,476			7.8	%	(15.7	)%	8,905			10,876			(18.1	)%
	Software	4,435			4,693			4,912			4,117			3,953			(5.5	)%	12.2	%	9,128			7,874			15.9	%
	Amortization of tax credit investments	3,151			998			—			—			—			215.7	%	100.0	%	4,149			—			100.0	%
	Equipment expense	3,034			3,359			3,408			3,137			2,872			(9.7	)%	5.6	%	6,393			6,243			2.4	%
	Professional fees	2,931			2,737			2,783			2,535			3,353			7.1	%	(12.6	)%	5,668			5,686			(0.3	)%
	FDIC insurance expense	2,366			2,058			2,067			1,791			2,960			15.0	%	(20.1	)%	4,424			5,909			(25.1	)%
	Marketing	2,234			1,986			1,730			1,774			1,916			12.5	%	16.6	%	4,220			3,540			19.2	%
	Other	15,405			14,713			16,601			13,623			13,759			4.7	%	12.0	%	30,118			26,926			11.9	%
	Total Non-Interest Expense	132,695			122,275			127,621			119,848			121,637			8.5	%	9.1	%	254,970			242,050			5.3	%
	Income Before Income Taxes	54,539			57,177			52,371			54,725			50,905			(4.6	)%	7.1	%	111,716			101,153			10.4	%
	Income tax expense	9,072			13,797			10,221			13,257			11,155			(34.2	)%	(18.7	)%	22,869			23,146			(1.2	)%
	Net Income	$	45,467		$	43,380		$	42,150		$	41,468		$	39,750		4.8	%	14.4	%	$	88,847		$	78,007		13.9	%
PER SHARE:
	Net income:
	Basic	$	0.26		$	0.25		$	0.24		$	0.24		$	0.23		4.0	%	13.0	%	$	0.51		$	0.45		13.3	%
	Diluted	0.26			0.25			0.24			0.24			0.23			4.0	%	13.0	%	0.51			0.45			13.3	%

	Cash dividends	$	0.11		$	0.11		$	0.12		$	0.10		$	0.10		—	%	10.0	%	$	0.22		$	0.19		15.8	%
	Shareholders' equity	12.54			12.36			12.19			12.30			12.17			1.5	%	3.0	%	12.54			12.17			3.0	%
	Shareholders' equity (tangible)	9.50			9.31			9.13			9.23			9.10			2.0	%	4.4	%	9.50			9.10			4.4	%

	Weighted average shares (basic)	174,597			174,150			173,554			173,020			173,394			0.3	%	0.7	%	174,399			173,363			0.6	%
	Weighted average shares (diluted)	175,532			175,577			174,874			174,064			174,318			—	%	0.7	%	175,579			174,367			0.7	%
	Shares outstanding, end of period	174,740			174,343			174,040			173,144			173,139			0.2	%	0.9	%	174,740			173,139			0.9	%
SELECTED FINANCIAL RATIOS:
	Return on average assets	0.94		%	0.92		%	0.89		%	0.89		%	0.88		%					0.93		%	0.87		%
	Return on average shareholders' equity	8.36		%	8.22		%	7.86		%	7.78		%	7.65		%					8.29		%	7.56		%
	Return on average shareholders' equity (tangible)	11.06		%	10.93		%	10.47		%	10.38		%	10.26		%					11.00		%	10.17		%
	Net interest margin	3.29		%	3.26		%	3.15		%	3.14		%	3.20		%					3.28		%	3.22		%
	Efficiency ratio	65.33		%	64.23		%	67.60		%	65.16		%	67.59		%					64.80		%	67.96		%
N/M - Not meaningful



FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Three Months Ended
		June 30, 2017								March 31, 2017								June 30, 2016
		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	$	15,127,205		$	152,649		4.05%		$	14,857,562		$	146,650		4.00%		$	13,966,024		$	138,317		3.98%
	Taxable investment securities	2,090,120			11,473			2.12%		2,145,656			11,914			2.19%		2,127,780			11,159			2.10%
	Tax-exempt investment securities	404,680			4,394			4.34%		403,856			4,383			4.34%		314,851			3,570			4.54%
	Equity securities	10,759			148			5.52%		11,740			176			6.08%		14,220			185			5.23%
	Total Investment Securities	2,505,559			16,015			2.56%		2,561,252			16,473			2.57%		2,456,851			14,914			2.43%
	Loans held for sale	19,750			201			4.07%		15,857			187			4.72%		19,449			188			3.87%
	Other interest-earning assets	324,719			802			0.99%		312,295			842			1.08%		357,211			864			0.96%
	Total Interest-earning Assets	17,977,233			169,667			3.78%		17,746,966			164,152			3.74%		16,799,535			154,283			3.69%
Noninterest-earning assets:
	Cash and due from banks	103,078								116,529								100,860
	Premises and equipment	218,075								217,875								227,517
	Other assets	1,174,745								1,149,621								1,189,226
	Less: allowance for loan losses	(172,156		)						(170,134		)						(164,573		)
	Total Assets	$	19,300,975							$	19,060,857							$	18,152,565
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits	$	3,690,059		$	2,780		0.30%		$	3,650,931		$	2,239		0.25%		$	3,454,031		$	1,527		0.18%
	Savings deposits	4,315,495			2,710			0.25%		4,194,216			2,211			0.21%		3,989,988			1,886			0.19%
	Time deposits	2,696,033			7,394			1.10%		2,739,453			7,352			1.08%		2,844,434			7,474			1.06%
	Total Interest-bearing Deposits	10,701,587			12,884			0.48%		10,584,600			11,802			0.45%		10,288,453			10,887			0.43%
	Short-term borrowings	633,102			974			0.61%		712,497			855			0.48%		403,669			217			0.21%
	FHLB advances and long-term debt	1,070,845			8,460			3.16%		990,044			8,252			3.35%		965,526			9,289			3.86%
	Total Interest-bearing Liabilities	12,405,534			22,318			0.72%		12,287,141			20,909			0.69%		11,657,648			20,393			0.70%
Noninterest-bearing liabilities:
	Demand deposits	4,387,517								4,301,727								4,077,642
	Other	326,735								331,442								327,360
	Total Liabilities	17,119,786								16,920,310								16,062,650
	Shareholders' equity	2,181,189								2,140,547								2,089,915
	Total Liabilities and Shareholders' Equity	$	19,300,975							$	19,060,857							$	18,152,565
	Net interest income/net interest margin (fully taxable equivalent)				147,349			3.29%					143,243			3.26%					133,890			3.20%
	Tax equivalent adjustment				(5,786		)						(5,664		)						(4,974		)
	Net interest income				$	141,563							$	137,579							$	128,916

	(1) Presented on a tax-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 0.53%, 0.51% and 0.52% for the three months ended June 30, 2017, March 31, 2017 and June 30, 2016, respectively.


AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
		Three Months Ended														% Change from
		Jun 30			Mar 31			Dec 31		Sep 30			Jun 30			Mar 31		Jun 30
		2017			2017			2016		2016			2016			2017		2016
Loans, by type:
	Real estate - commercial mortgage	$	6,163,844		$	6,039,140		$	5,828,313	$	5,670,888		$	5,557,680		2.1	%	10.9		%
	Commercial - industrial, financial and agricultural	4,221,025			4,205,070			4,081,498		4,066,275			4,080,524			0.4	%	3.4		%
	Real estate - residential mortgage	1,707,929			1,637,669			1,572,895		1,503,209			1,399,851			4.3	%	22.0		%
	Real estate - home equity	1,587,680			1,613,249			1,633,668		1,640,913			1,656,140			(1.6	)%	(4.1		)%
	Real estate - construction	897,321			840,968			845,528		837,920			820,881			6.7	%	9.3		%
	Consumer	300,966			284,352			289,864		281,517			272,293			5.8	%	10.5		%
	Leasing and other	248,440			237,114			224,050		211,528			178,655			4.8	%	39.1		%
	Total Loans, net of unearned income	$	15,127,205		$	14,857,562		$	14,475,816	$	14,212,250		$	13,966,024		1.8	%	8.3		%
Deposits, by type:
	Noninterest-bearing demand	$	4,387,517		$	4,301,727		$	4,331,894	$	4,227,639		$	4,077,642		2.0	%	7.6		%
	Interest-bearing demand	3,690,059			3,650,931			3,714,391		3,602,448			3,454,031			1.1	%	6.8		%
	Savings and money market accounts	4,315,495			4,194,216			4,216,090		4,078,942			3,989,988			2.9	%	8.2		%
	Time deposits	2,696,033			2,739,453			2,777,203		2,814,258			2,844,434			(1.6	)%	(5.2		)%
	Total Deposits	$	15,089,104		$	14,886,327		$	15,039,578	$	14,723,287		$	14,366,095		1.4	%	5.0		%
Short-term borrowings, by type:
	Customer repurchase agreements	$	199,657		$	199,403		$	200,126	$	187,587		$	180,595		0.1	%	10.6		%
	Customer short-term promissory notes	77,554			79,985			67,355		70,072			77,535			(3.0	)%	—		%
	Federal funds purchased	242,375			308,220			40,613		148,546			138,012			(21.4	)%	75.6		%
	Short-term FHLB advances and other borrowings	113,516			124,889			—		20,163			7,527			(9.1	)%	1,408.1		%
	Total Short-term Borrowings	$	633,102		$	712,497		$	308,094	$	426,368		$	403,669		(11.1	)%	56.8		%
N/M - Not meaningful



FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Six Months Ended June 30
		2017								2016
		Average								Average
		Balance			Interest (1)			Yield/Rate		Balance			Interest (1)			Yield/Rate
ASSETS
Interest-earning assets:
	Loans, net of unearned income	$	14,993,129		$	299,299		4.02	%	$	13,909,722		$	276,212		3.99	%
	Taxable investment securities	2,117,733			23,387			2.16	%	2,154,187			23,162			2.15	%
	Tax-exempt investment securities	404,271			8,777			4.34	%	287,123			6,708			4.67	%
	Equity securities	11,247			324			5.81	%	14,303			403			5.67	%
	Total Investment Securities	2,533,251			32,488			2.57	%	2,455,613			30,273			2.47	%
	Loans held for sale	17,814			388			4.36	%	15,850			319			4.03	%
	Other interest-earning assets	318,542			1,644			1.03	%	357,887			1,762			0.98	%
	Total Interest-earning Assets	17,862,736			333,819			3.76	%	16,739,072			308,566			3.70	%
Noninterest-earning assets:
	Cash and due from banks	109,766								99,654
	Premises and equipment	217,974								226,901
	Other assets	1,162,254								1,163,259
	Less: allowance for loan losses	(171,151		)						(165,972		)
	Total Assets	$	19,181,579							$	18,062,914
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits	$	3,670,603		5,019			0.28	%	$	3,446,193		3,021			0.18	%
	Savings deposits	4,255,190			4,921			0.23	%	3,961,405			3,690			0.19	%
	Time deposits	2,717,624			14,745			1.09	%	2,856,044			14,903			1.05	%
	Total Interest-bearing Deposits	10,643,417			24,685			0.47	%	10,263,642			21,614			0.42	%

	Short-term borrowings	672,580			1,829			0.54	%	424,535			485			0.23	%
	FHLB advances and long-term debt	1,030,667			16,712			3.25	%	961,870			18,551			3.87	%
	Total Interest-bearing Liabilities	12,346,664			43,226			0.70	%	11,650,047			40,650			0.70	%
Noninterest-bearing liabilities:
	Demand deposits	4,344,859								4,022,764
	Other	329,076								315,746
	Total Liabilities	17,020,599								15,988,557
	Shareholders' equity	2,160,980								2,074,357
	Total Liabilities and Shareholders' Equity	$	19,181,579							$	18,062,914
	Net interest income/net interest margin (fully taxable equivalent)				290,593			3.28	%				267,916			3.22	%
	Tax equivalent adjustment				(11,451		)						(9,946		)
	Net interest income				$	279,142							$	257,970
(1) Presented on a tax-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 0.52% for the six months ended June 30, 2017 and June 30, 2016.


AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
		Six Months Ended
		June 30
		2017			2016			% Change
Loans, by type:
	Real estate - commercial mortgage	$	6,101,836		$	5,522,550		10.5	%
	Commercial - industrial, financial and agricultural	4,213,094			4,087,897			3.1	%
	Real estate - residential mortgage	1,672,994			1,390,631			20.3	%
	Real estate - home equity	1,600,394			1,665,086			(3.9	)%
	Real estate - construction	869,299			806,448			7.8	%
	Consumer	292,704			267,794			9.3	%
	Leasing and other	242,808			169,316			43.4	%
	Total Loans, net of unearned income	$	14,993,129		$	13,909,722		7.8	%
Deposits, by type:
	Noninterest-bearing demand	$	4,344,859		$	4,022,764		8.0	%
	Interest-bearing demand	3,670,603			3,446,193			6.5	%
	Savings and money market accounts	4,255,190			3,961,405			7.4	%
	Time deposits	2,717,624			2,856,044			(4.8	)%

	Total Deposits	$	14,988,276		$	14,286,406		4.9	%
Short-term borrowings, by type:
	Customer repurchase agreements	$	199,945		$	176,001		13.6	%
	Customer short-term promissory notes	78,348			75,774			3.4	%
	Federal funds purchased	275,116			160,991			70.9	%
	Short-term FHLB advances and other borrowings	119,171			11,769			912.6	%
	Total Short-term Borrowings	$	672,580		$	424,535		58.4	%



FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
		Three Months Ended															Six Months Ended
		Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Jun 30			Jun 30
		2017			2017			2016			2016			2016			2017			2016
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period		$	172,647		$	171,325		$	165,169		$	165,108		$	166,065		$	171,325		$	171,412
	Loans charged off:
	Commercial - industrial, financial and agricultural	(5,353		)	(5,527		)	(1,319		)	(3,144		)	(4,625		)	(10,880		)	(10,813		)
	Consumer and home equity	(1,022		)	(1,554		)	(2,156		)	(1,394		)	(1,614		)	(2,576		)	(4,162		)
	Real estate - construction	(774		)	(247		)	—			(150		)	(742		)	(1,021		)	(1,068		)
	Real estate - commercial mortgage	(242		)	(1,224		)	(174		)	(1,350		)	(1,474		)	(1,466		)	(2,056		)
	Real estate - residential mortgage	(124		)	(216		)	(116		)	(802		)	(340		)	(340		)	(1,408		)
	Leasing and other	(1,200		)	(639		)	(589		)	(832		)	(1,951		)	(1,839		)	(2,394		)
	Total loans charged off	(8,715		)	(9,407		)	(4,354		)	(7,672		)	(10,746		)	(18,122		)	(21,901		)
Recoveries of loans previously charged off:
	Commercial - industrial, financial and agricultural	1,974			4,191			2,192			1,539			2,931			6,165			5,250
	Consumer and home equity	685			373			580			463			889			1,058			1,423
	Real estate - construction	373			548			1,080			898			1,563			921			1,946
	Real estate - commercial mortgage	934			450			885			296			1,367			1,384			2,192
	Real estate - residential mortgage	151			230			288			228			420			381			556
	Leasing and other	249			137			485			168			108			386			189
	Recoveries of loans previously charged off	4,366			5,929			5,510			3,592			7,278			10,295			11,556
Net loans recovered (charged off)		(4,349		)	(3,478		)	1,156			(4,080		)	(3,468		)	(7,827		)	(10,345		)
Provision for credit losses		6,700			4,800			5,000			4,141			2,511			11,500			4,041
Balance at end of period		$	174,998		$	172,647		$	171,325		$	165,169		$	165,108		$	174,998		$	165,108
Net charge-offs (recoveries) to average loans (annualized)		0.11		%	0.09		%	(0.03		)%	0.11		%	0.10		%	0.10		%	0.15		%
NON-PERFORMING ASSETS:
	Non-accrual loans	$	122,600		$	117,264		$	120,133		$	124,017		$	111,742
	Loans 90 days past due and accruing	13,143			14,268			11,505			14,095			15,992
	Total non-performing loans	135,743			131,532			131,638			138,112			127,734
	Other real estate owned	11,432			11,906			12,815			11,981			11,918
	Total non-performing assets	$	147,175		$	143,438		$	144,453		$	150,093		$	139,652
NON-PERFORMING LOANS, BY TYPE:
	Commercial - industrial, financial and agricultural	$	51,320		$	43,826		$	43,460		$	47,330		$	38,902
	Real estate - commercial mortgage	32,576			36,713			39,319			39,631			35,704
	Real estate - residential mortgage	21,846			23,597			23,655			23,451			25,030
	Real estate - construction	16,564			13,550			9,842			11,223			11,879
	Consumer and home equity	13,156			13,408			15,045			16,426			16,061
	Leasing	281			438			317			51			158
	Total non-performing loans	$	135,743		$	131,532		$	131,638		$	138,112		$	127,734

TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:
	Real-estate - residential mortgage	$	26,368		$	27,033		$	27,617		$	26,854		$	27,324
	Real-estate - commercial mortgage	16,743			15,237			15,957			16,085			17,808
	Consumer and home equity	12,064			9,638			8,633			7,707			7,191
	Commercial - industrial, financial and agricultural	8,086			7,441			6,627			7,488			5,756
	Real estate - construction	1,475			273			726			843			3,086
	Total accruing TDRs	$	64,736		$	59,622		$	59,560		$	58,977		$	61,165
	Non-accrual TDRs (1)	29,373			27,220			27,850			27,904			24,887
	Total TDRs	$	94,109		$	86,842		$	87,410		$	86,881		$	86,052
(1) Included within non-accrual loans above.




DELINQUENCY RATES, BY TYPE:		Total Delinquency %
		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30
		2017		2017		2016		2016		2016

	Real estate - commercial mortgage	0.66	%	0.78	%	0.78	%	0.87	%	0.81	%
	Commercial - industrial, financial and agricultural	1.43	%	1.25	%	1.31	%	1.48	%	1.25	%
	Real estate - construction	1.82	%	1.99	%	1.29	%	1.61	%	1.93	%
	Real estate - residential mortgage	2.08	%	2.44	%	2.74	%	2.67	%	2.70	%
	Consumer, home equity, leasing and other	1.34	%	1.22	%	1.45	%	1.53	%	1.47	%
	Total	1.20	%	1.23	%	1.27	%	1.38	%	1.30	%



ASSET QUALITY RATIOS:
		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30
		2017		2017		2016		2016		2016
	Non-accrual loans to total loans	0.80	%	0.78	%	0.82	%	0.86	%	0.79	%
	Non-performing loans to total loans	0.88	%	0.88	%	0.90	%	0.96	%	0.90	%
	Non-performing assets to total loans and OREO	0.96	%	0.96	%	0.98	%	1.04	%	0.99	%
	Non-performing assets to total assets	0.75	%	0.75	%	0.76	%	0.80	%	0.76	%
	Allowance for credit losses to loans outstanding	1.14	%	1.15	%	1.17	%	1.15	%	1.17	%
	Allowance for credit losses to non-performing loans	128.92	%	131.26	%	130.15	%	119.59	%	129.26	%
	Non-performing assets to tangible common shareholders' equity and allowance for credit losses	8.02	%	7.99	%	8.20	%	8.51	%	8.02	%



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															Six Months Ended
		Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Jun 30			Jun 30
		2017			2017			2016			2016			2016			2017			2016
Shareholders' equity (tangible), per share
Shareholders' equity		$	2,191,770		$	2,154,683		$	2,121,115		$	2,129,436		$	2,106,997
Less: Goodwill and intangible assets		(531,556		)	(531,556		)	(531,556		)	(531,556		)	(531,556		)
Tangible shareholders' equity (numerator)		$	1,660,214		$	1,623,127		$	1,589,559		$	1,597,880		$	1,575,441

Shares outstanding, end of period (denominator)		174,740			174,343			174,040			173,144			173,139

Shareholders' equity (tangible), per share		$	9.50		$	9.31		$	9.13		$	9.23		$	9.10

Return on average shareholders' equity (tangible)
Net income - Numerator		$	45,467		$	43,380		$	42,150		$	41,468		$	39,750		$	88,847		$	78,007

Average shareholders' equity		$	2,181,189		$	2,140,547		$	2,132,655		$	2,120,596		$	2,089,915		$	2,160,980		$	2,074,357
Less: Average goodwill and intangible assets		(531,556		)	(531,556		)	(531,556		)	(531,556		)	(531,556		)	(531,556		)	(531,556		)
Average tangible shareholders' equity (denominator)		$	1,649,633		$	1,608,991		$	1,601,099		$	1,589,040		$	1,558,359		$	1,629,424		$	1,542,801

Return on average shareholders' equity (tangible), annualized		11.06		%	10.93		%	10.47		%	10.38		%	10.26		%	11.00		%	10.17		%

Efficiency ratio
Non-interest expense		$	132,695		$	122,275		$	127,621		$	119,848		$	121,637		$	254,970		$	242,050
Less: Amortization on tax credit investments (1)		(3,151		)	(998		)	—			—			—			(4,149		)	—
Non-interest expense - Numerator		$	129,544		$	121,277		$	127,621		$	119,848		$	121,637		$	250,821		$	242,050

Net interest income (fully taxable equivalent)		$	147,349		$	143,243		$	137,571		$	135,784		$	133,890		$	290,593		$	267,916
Plus: Total Non-interest income		52,371			46,673			52,755			48,149			46,137			99,044			89,274
Less: Investment securities gains		(1,436		)	(1,106		)	(1,525		)	(2		)	(76		)	(2,542		)	(1,023		)
Denominator		$	198,284		$	188,810		$	188,801		$	183,931		$	179,951		$	387,095		$	356,167

Efficiency ratio		65.33		%	64.23		%	67.60		%	65.16		%	67.59		%	64.80		%	67.96		%

Non-performing assets to tangible shareholders' equity and allowance for credit losses
Non-performing assets (numerator)		$	147,175		$	143,438		$	144,453		$	150,093		$	139,652

Tangible shareholders' equity		$	1,660,214		$	1,623,127		1,589,559			1,597,880			$	1,575,441
Plus: Allowance for credit losses		174,998			172,647			171,325			165,169			165,108
Tangible shareholders' equity and allowance for credit losses (denominator)		$	1,835,212		$	1,795,774		$	1,760,884		$	1,763,049		$	1,740,549

Non-performing assets to tangible shareholders' equity and allowance for credit losses		8.02		%	7.99		%	8.20		%	8.51		%	8.02		%


Pre-provision net revenue
Net interest income		$	141,563		$	137,579		$	132,237		$	130,565		$	128,916		$	279,142		$	257,970
Non-interest income		52,371			46,673			52,755			48,149			46,137			99,044			89,274
Less: Investment securities gains		(1,436		)	(1,106		)	(1,525		)	(2		)	(76		)	(2,542		)	(1,023		)
Total revenue		$	192,498		$	183,146		$	183,467		$	178,712		$	174,977		$	375,644		$	346,221

Non-interest expense		$	132,695		$	122,275		$	127,621		$	119,848		$	121,637		$	254,970		$	242,050
Less: Amortization on tax credit investments (1)		(3,151		)	(998		)	—			—			—			(4,149		)	—
Total non-interest expense		$	129,544		$	121,277		$	127,621		$	119,848		$	121,637		$	250,821		$	242,050

Pre-provision net revenue		$	62,954		$	61,869		$	55,846		$	58,864		$	53,340		$	124,823		$	104,171

(1) Amortization expense for tax credit investments that are considered to be affordable housing projects under applicable accounting guidance is included in income taxes. Amortization expense for other tax credit investments that are not considered to be affordable housing projects is included in non-interest expense. If amortization expense for all tax credit investments were recorded in income taxes, the effective tax rate for the quarter ended June 30, 2017 would have been 21.2% vs 16.6%.

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FULTON FINANCIAL CORP - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED JUN 30, 2017 - July 18, 2017

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