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D A T A A S O F S E P T E M B E R 3 0 , 2 0 1 7
U N L E S S O T H E R W I S E N O T E D
INVESTOR PRESENTATION
FORWARD-LOOKING STATEMENTS
This presentation may contain forward-looking statements with respect to Fulton Financial Corporation’s financial
condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking
statements can be identified by the use of words such as “may,” “should,” “will,” “could,” “estimates,” “predicts,”
“potential,” “continue,” “anticipates,” “believes,” “plans,” “expects,” “future,” “intends” and similar expressions which
are intended to identify forward-looking statements. Management’s “2017 Outlook” contained herein is comprised of
forward-looking statements.
Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, some
of which are beyond the Corporation’s control and ability to predict, that could cause actual results to differ materially
from those expressed in the forward-looking statements. The Corporation undertakes no obligation, other than as
required by law, to update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise.
A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the
Corporation’s actual results to differ materially from those described in the forward-looking statements, can be found
in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of
Operations” in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2016 and Quarterly
Reports on Form 10-Q for the quarters ended March 31, 2017 and June 30, 2017 and other periodic reports, which the
Corporation files with the Securities and Exchange Commission (the “SEC”) and are available in the Investor Relations
section of the Corporation’s website (www.fult.com) and on the SEC’s website (www.sec.gov).
The Corporation uses certain non-GAAP financial measures in this presentation. These non-GAAP financial measures
are reconciled to the most comparable GAAP measures at the end of this presentation.
2
WHY FULTON?
• Risk Management Foundation
• Management Depth and Experience
• Stability of Geographic Markets / Franchise Value
• Strong Capital & Reserves
• Commitment to Enhancing Shareholder Value
• Relationship Banking Strategy / Customer Experience
• Quality Loan Growth / Solid Asset Quality
• Attractive Core Deposit Profile
• Prudent Expense Management
• Balance Sheet Is Positioned for Rising Interest Rates
3
A VALUABLE FRANCHISE
• 243 community banking offices across
the Mid-Atlantic
• Asset size: $20.1 billion
• 3,700+ team members (3,560 FTEs (1))
• Market capitalization: $3.3 billion (2)
4
(1) Average full-time equivalent employees.
(2) Based on shares outstanding and the closing price as of September 30, 2017.
STRONG POSITION IN ATTRACTIVE MARKETS
5
Note: Data as of June 30, 2017 per Federal Deposit Insurance Corporation (FDIC) Summary of Deposits. Household Income Data as of June 30, 2017 per SNL Financial LC.
(1) Median HH Income, 2017 – 2022 Projected Population Change and 2017 – 2022 Projected HH Income Change are weighted by deposits in each MSA.
Median
Deposits Market Market Household (HH)
Metropolitan Statistical Area (MSA) (in millions) Rank Share Income Population HH Income
Lancaster, PA 3,131 1 28.28% 64,827 2.16% 9.70%
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 2,966 14 0.81% 70,516 1.31% 9.81%
Allentown-Bethlehem-Easton, PA-NJ 1,471 4 8.87% 66,384 1.33% 8.45%
New York-Newark-Jersey City, NY-NJ-PA 1,342 60 0.08% 74,466 1.90% 9.82%
Baltimore-Columbia-Towson, MD 997 9 1.38% 77,704 2.51% 7.89%
York-Hanover, PA 861 3 12.17% 63,858 1.50% 6.30%
Harrisburg-Carlisle, PA 791 5 5.74% 63,998 2.20% 7.57%
Lebanon, PA 758 1 34.47% 58,732 2.61% 7.10%
Reading, P 638 7 3.89% 62,208 0.67% 8.75%
Hagerstown-Martinsburg, MD-WV 511 2 14.38% 59,641 3.33% 4.82%
Top 10 Fulton Financial Corporation MSAs (1) 13,466$ 67,389$ 1.84% 8.75%
Total Franchise (1) 15,493$ 67,068$ 1.89% 8.57%
Nationwide 61,045$ 3.50% 8.86%
2018-2023 Projected Change
Name
Position
Years at
Fulton
Years in
Financial
Services
Prior
Experience
E. Philip Wenger
Chairman,
President and CEO
38 38 Various roles since joining in 1979
Craig Roda
Senior EVP/ Community
Banking
38 38 Various roles since joining in 1979
Philmer Rohrbaugh (1) Senior EVP/ COO and CFO 5 40 KPMG, Arthur Andersen
Curtis Myers
Senior EVP/ President and
COO of Fulton Bank
27 27 Various roles since joining in 1990
Meg Mueller Senior EVP/ CCO 21 31 Various roles since joining in 1996
Angela Sargent
Senior EVP/ CIO and
IT Manager
25 25 Various roles since joining in 1992
Betsy Chivinski (1) Senior EVP/ CRO 23 35 Various roles since joining in 1994
DEEP EXECUTIVE MANAGEMENT TEAM
6
(1) Includes years of service in public accounting as a financial services industry specialist
THIRD QUARTER HIGHLIGHTS
Diluted Earnings Per Share: $0.28 in 3Q17, 7.7% increase from 2Q17 and 16.7% increase from 3Q16
Pre-Provision Net Revenue(1): $65.5 million, 4.1% increase from 2Q17 and 11.3% increase from 3Q16
Linked Quarter
Loan and Core(2) Deposit Growth: 1.8% increase in average loans, and 5.2% increase in average core deposits
Net Interest Income & Margin: Net interest income increased 3.7%, reflecting the impact of loan growth and
one additional day in the current quarter. Net interest margin decreased 2 basis points, due to increases in
lower-yielding other interest-earning assets as loan growth lagged deposit growth, and a 4 basis point increase
in cost of funds
Non-Interest Income(3) & Non-Interest Expense: 7.0% decrease in non-interest income and relatively flat non-
interest expense
Asset Quality: $1.6 million decrease in provision for credit losses
Year-over-Year
Loan and Core(2) Deposit Growth: 8.3% increase in average loans and 9.5% increase in average core deposits
Net Interest Income & Margin: 12.4% increase in net interest income, reflecting the impact of loan growth and
a 13 basis point increase in net interest margin
Non-Interest Income(3) & Non-Interest Expense: 1.6% decrease in non-interest income and, excluding
amortization of tax credits investments in 3Q17, 7.3% increase in non-interest expense
Asset Quality: $0.9 million increase in provision for credit losses
7
(1) Non-GAAP based financial measure. Please refer to the calculation and management’s reason for using the measure on the slide titled “Non-GAAP Reconciliation” at the end
of this presentation.
(2) Consists of non-interest bearing demand deposits, interest-bearing demand deposits, and savings and money market accounts.
(3) Excluding securities gains.
INCOME STATEMENT SUMMARY – QUARTERLY
Net Income of $48.9 million; a 7.6% increase from 2Q17 and a
17.9% increase from 3Q16. Earnings per share increased 7.7%
from 2Q17 and 16.7% from 3Q16.
Net Interest Income
From 2Q17: Increase of 3.7%, reflecting the impact of loan growth and an
additional day in the quarter, partially offset by a 2 basis point decrease
in net interest margin (NIM)
From 3Q16: Increase of 12.4%, driven by loan growth and the impact of a
13 basis point increase in NIM, driven by three Federal Funds rate
increases and long-term debt re-financings at lower rates
Loan Loss Provision
$5.1 million provision in 3Q17; decrease compared to 2Q17 due to
slower loan growth
Non-Interest Income
From 2Q17: Decrease of 7.0% driven primarily by commercial loan
interest rate swap fees, mortgage servicing income and Small Business
Administration (SBA) loan sale gains. In 2Q17, Mortgage banking income
was increased by reversal of mortgage servicing rights (MSR) valuation
allowance of $1.3 million. Excluding this, non-interest income was down
4.5%
From 3Q16: Decrease of 1.6% driven primarily by commercial loan
interest rate swap fees, partially offset by an increase in investment
management and trust services income
Non-Interest Expenses
From 2Q17: Decrease of 0.4% due to lower salaries and benefits, outside
services and other real estate expenses, partially offset by increases in
software and data processing expense and other expense categories
From 3Q16: Increase of 10.3% due to higher salaries expense,
amortization of tax credit investments, FDIC insurance expense, state
taxes, data processing and software expense and other outside services,
slightly offset by a decrease in other real estate expenses. Excluding the
tax credit amortization, non-interest expenses increased 7.3%
Income Taxes
Higher effective tax rate compared to 2Q17 mainly due to higher pre-tax
income and lower excess tax benefits on stock compensation
8
(1) ROA is return an average assets determined by dividing net income for the period indicated by average assets, annualized.
(2) ROE is return on average shareholders’ equity determined by dividing net income for the period indicated by average shareholders’ equity, annualized.
(3) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Reconciliation” at the end of this presentation.
3Q17 2Q17 3Q16
Net Interest Income 146,809$ 5,246$ 16,244$
Provision for Credit Losses 5,075 (1,625) 934
Non-Interest Income 47,377 (3,558) (770)
Securities Gains 4,597 3,161 4,595
Non-Interest Expense 132,157 (538) 12,309
Income before Income Taxes 61,551 7,012 6,826
Income Taxes 12,646 3,574 (611)
Net Income 48,905$ 3,438$ 7,437$
Earnings Per Share (Diluted) 0.28$ 0.02$ 0.04$
ROA (1) 0.98% 0.04% 0.09%
ROE (2) 8.76% 0.40% 0.98%
ROE (tangible) (3) 11.52% 0.46% 1.14%
Efficiency ratio (3) 64.3% (1.0%) (0.9%)
(dollars in thousands, except per-share data)
Change from
NET INTEREST INCOME AND MARGIN
Net Interest Income & Net Interest Margin
~ $730
million
~ $610
million
$130.6 $132.2
$137.6 $141.6
$146.8
3.14%
3.15%
3.26%
3.29% 3.27%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
3Q16 4Q16 1Q17 2Q17 3Q17
Net Interest Income
Net Interest Margin (Fully-taxable equivalent basis, or FTE)
Average Interest-Earning Assets & Yields
Average Liabilities & Rates
$3.0 $2.9 $2.9 $2.9 $3.1
$14.2 $14.5 $14.9 $15.1 $15.4
3.63% 3.62% 3.74% 3.78% 3.80%
0.00%
2.00%
4.00%
$-
$5.0
$10.0
$15.0
$20.0
3Q16 4Q16 1Q17 2Q17 3Q17
Securities & Other Loans Earning Asset Yield (FTE)
$14.7 $15.0 $14.9 $15.1 $15.9
$1.4 $1.3 $1.7 $1.7
$1.4
0.70% 0.70% 0.69% 0.72%
0.77%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
$-
$5.0
$10.0
$15.0
$20.0
3Q16 4Q16 1Q17 2Q17 3Q17
Deposits Borrowings Cost of Interest-bearing Liabilities
($ IN MILLIONS) ($ IN BILLIONS)
($ IN BILLIONS)
9
LOAN PORTFOLIO COMPOSITION & YIELD
10
Note: Loan portfolio composition is based on average balances for the years ended December 31, 2013 to 2016, and nine months ending September 30, 2017.
(1) Presented on a fully-taxable equivalent basis.
$4.9 $5.1 $5.2
$5.6
$6.1
$3.7 $3.7 $3.9
$4.1
$4.2
$1.7 $1.7
$1.7
$1.7
$1.6 $1.3
$1.4
$1.4
$1.5
$1.7
$0.6
$0.6
$0.7
$0.8
$0.9
$0.4
$0.4
$0.4
$0.4
$0.6
4.39% 4.21%
4.04% 3.95% 4.05%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
2013 2014 2015 2016 Sep 2017
Comm'l Mtg Comm'l Home Equity Res Mtg Construction Consumer/Other FTE loan yield (1)
$13.3
A
ve
ra
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Loa
n
Po
rtf
o
lio
B
al
an
ce
s,
in
b
ill
io
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s
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Loa
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Po
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Y
ie
ld
(1
)
Average loans for the first nine months of 2017 are up 8.0% compared to the first nine months of 2016.
$12.6 $12.9
$14.1
$15.1
DEPOSIT PORTFOLIO COMPOSITION
11
Note: Deposit composition is based on average balances for the periods indicated. Average brokered deposits were $30.3 million and $0 as of nine months ended September
30, 2017 and 2016, respectively; the percentage balance in both comparative periods was 0%.
Average demand and savings are up 8.1% compared to the nine months ended September 30, 2016;
while total average deposits are up 5.9%.
18%
29%
25%
19%
9%
Time Deposits Non-Int DDA Int DDA
Money Mkt Savings
Nine Months Ended September 30, 2017
20%
28%
24%
18%
10%
Time Deposits Non-Int DDA Int DDA
Money Mkt Savings
Nine Months Ended September 30, 2016
1) A variety of interest rate scenarios are used to measure the effects of sudden and gradual movements upward and downward in the yield curve. These results are
compared to the results obtained in a flat or unchanged interest rate scenario. Simulation of net interest income is used primarily to measure the Corporation’s short-
term earnings exposure to rate movements. The Corporation’s policy limits the potential exposure of net interest income, in a non-parallel instantaneous shock, to
10% of the base case net interest income for a 100 basis point shock in interest rates, 15% for a 200 basis point shock and 20% for a 300 basis point shock. A "shock" is
an immediate upward or downward movement of interest rates. The shocks do not take into account changes in customer behavior that could result in changes to mix
and/or volumes in the balance sheet, nor do they account for competitive pricing over the forward 12-month period. These results include the effect of implicit and
explicit floors that limit further reduction in interest rates.
2) The actual impact of changes in interest rates on the Corporation’s net interest income may differ materially from the anticipated amounts presented above.
Rate Annual Change in %
Change (1) Net Interest Income (2) Change
+300 bps $ 93.9 million 15.5%
+200 bps $ 64.5 million 10.6%
+100 bps $ 32.9 million 5.4%
- 100 bps $ (49.0) million -8.1%
POSITIONED FOR RISING INTEREST RATE ENVIRONMENT
SEPTEMBER 30, 2017
12
ASSET QUALITY
($ IN MILLIONS)
13
Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans
119.59%
130.15% 131.26% 128.92% 128.05%
1.15% 1.17% 1.15% 1.14% 1.13%
0.00%
1.00%
2.00%
3.00%
0.0%
25.0%
50.0%
75.0%
100.0%
125.0%
150.0%
3Q16 4Q16 1Q17 2Q17 3Q17
Allowance/NPLs Allowance/Loans
Net Charge-offs (NCOs) and NCOs to Average Loans Allowance for Credit Losses (Allowance) to NPLs & Loans
$4.1
$(1.2)
$3.5
$4.3
$5.3
0.11%
-0.03%
0.09% 0.11%
0.14%
-0.10%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
$(2.0)
$-
$2.0
$4.0
$6.0
3Q16 4Q16 1Q17 2Q17 3Q17
NCOs NCOs/Average Loans (annualized)
$4.1
$5.0 $4.8
$6.7
$5.1
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
3Q16 4Q16 1Q17 2Q17 3Q17
$138.1
$131.6 $131.5 $135.7 $136.5
0.96% 0.90% 0.88% 0.88% 0.88%
0.00%
0.50%
1.00
1.50%
2.00%
$0.0
$40.0
$80.0
$120.0
$160.0
3Q16 4Q16 1Q17 2Q17 3Q17
NPL NPLs/Loans
NON-INTEREST INCOME – QUARTER COMPARISON
($ IN MILLIONS)
Non-Interest Income, Excluding Securities Gains
~ $730
million
~ $610
million
$48.1
$51.2
$45.6
$50.9
$47.4
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
3Q16 4Q16 1Q17 2Q17 3Q17
Mortgage Banking Income & Spreads
Other Non-Interest Income
1.73% 1.94% 1.62%
1.44%
1.62%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
$(1.0)
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
3Q16(2) 4Q16(2) 1Q17 2Q17(2) 3Q17
Gains on Sales Servicing Income Spread on Sales (1)
$4.5
$7.0
$4.6
$6.1
$4.8
$-
$10.0
$20.0
$30.0
$40.0
$50.0
3Q16 4Q16 1Q17 2Q17 3Q17
Invt Mgmt & Trust Srvs Deposit Srv Chgs Oth Srv Chgs Other
$43.6
$44.2 $41.0 $44.8 $42.6
(1) Represents Gains on Sales divided by total new commitments to originate residential mortgage
loans for customers.
(2) Servicing income includes $1.3 million Mortgage Servicing Rights (MSR) impairment charge in
3Q16 and $1.7 million and $1.3 million recoveries in 4Q16 and 2Q17, respectively.
14
NON-INTEREST EXPENSES – QUARTER COMPARISON
($ IN MILLIONS)
Non-Interest Expense & Efficiency Ratio (1)
~ $730
million
~ $610
million
$119.8
$127.6
$122.3
$132.7 $132.2
65.2%
67.6%
64.2% 65.3% 64.3%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
3Q16 4Q16 1Q17 2Q17 3Q17
Salaries and Employee Benefits & Staffing
Other Non-Interest Expenses
3,490 3,560
-
2,000
4,000
6,000
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
3Q16 4Q16 1Q17 2Q17 3Q17
Total Salaries Employee Benefits Average Full-time Equivalent Employees
$70.7
$73.3
$69.2
$74.5 $72.9
$-
$10.0
$20.0
$30.0
$40.0
$5 .0
$6 .0
$70.0
3Q16 4Q16 1Q17 2Q17 3Q17
Occp & Equip Data Processing & Software Outside Srvs Other
$49.1
$54.4 $53.0
$58.2 $59.3
(1) Non-GAAP based financial measure. Please refer to the calculation and
management’s reasons for using this measure on the slide titled “Non-
GAAP Reconciliation” at the end of this presentation.
15
PROFITABILITY & CAPITAL
16
ROA(1) ROE and ROE (tangible)(2)
Tangible Common Equity Ratio(2) Diluted Earnings Per Common Share
7.78% 7.86% 8.22%
8.36% 8.76%
10.38% 10.47%
10.93% 11.06%
11.52%
0.00%
4.00%
8.00%
12.00%
3Q16 4Q16 1Q17 2Q17 3Q17
ROE ROE (tangible)
0.89%
0.89% 0.92% 0.94%
0.98%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
3Q16 4Q16 1Q17 2Q17 3Q17
(1) ROA is return an average assets determined by dividing net income for the period indicated by average assets, annualized.
(2) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Reconciliation” at the end of this presentation.
8.8% 8.6% 8.7% 8.7% 8.7%
0.0%
4.
8.
12.0
3Q16 4Q16 1Q17 2Q17 3Q17
$0.24 $0.24
$0.25
$0.26
$0.28
$-
$0.05
$0.10
$ .15
$0.20
$0.25
$0.30
3Q16 4Q16 1Q17 2Q17 3Q17
STOCK REPURCHASE PROGRAMS
June 2012 to October 2017
Repurchase Programs (1)
Shares Repurchased 31.88 million
% of Outstanding Shares 15.9% (2)
Amount Repurchased $375.1 million
Average Purchase Price $11.77
demand and savings
(1) Share repurchases completed from June 2012 through October 2017.
(2) Total shares repurchased as a percentage of outstanding common stock on June 30, 2012.
(3) Up to an additional $31.4 million of common stock may be repurchased under the current program.
In October 2015, the Board of Directors approved a new repurchase program of up to $50 million of the
Corporation’s common stock, or approximately 2.3% of outstanding shares, through December 31, 2016. In
November 2016, the Board of Directors extended the timeframe for its stock repurchase program to
December 31, 2017. The following is a summary of purchases under this program:
# Shares Total Cost Per Share
1Q 2016 917,000 $11.2 million $12.21
2Q 2016 393,000 $ 5.1 million $12.87
3Q 2016 176,000 $ 2.3 million $13.00
Total 1,486,000 $18.6 million(3) $12.48
17
AVERAGE ASSETS AND ROA, BY BANK
Nine Months Ended
September 30, 2017
Average Assets
($ Millions) 2017 2016
Fulton Bank, N.A. $11,003 1.08% 1.07%
The Columbia Bank 2,369 0.93% 0.95%
Lafayette Ambassador Bank 1,542 0.80% 0.93%
Fulton Bank of New Jersey 3,907 0.71% 0.68%
FNB Bank, N.A. 350 0.96% 0.59%
Swineford National Bank 315 0.77% 0.50%
Fulton Financial Corporation $19,414 0.95% 0.87%
Nine Months Ended Sep 30,
Return on Average Assets (1)
(1) Net Income divided by average assets, annualized.
18
2017 OUTLOOK
The following outlook remains unchanged from prior quarter except in
the case of Non-Interest Income and Net Interest Margin outlook:
• Loans & Deposits: Annual average growth rate in the mid- to high-single digits
• Asset Quality: Provision driven primarily by loan growth
• Non-Interest Income (Excluding Securities Gains): 4Q17 outlook lowered to
mid-single digit growth rate (from mid- to high-single digit growth rate)
reflecting the actual nine month 2017 experience
• Non-Interest Expense: Low- to mid-single digit growth rate
• Capital: Focus on utilizing capital to support growth and provide appropriate
returns to our shareholders
• Net Interest Margin: 4Q17 outlook lowered to an increase of 2 to 6 basis points
(from 3 to 9 basis points) reflecting trends in deposit pricing, the interest-
earning asset mix and the uncertainty of an additional rate increase or the
timing of it
19
APPENDIX
AVERAGE LOAN PORTFOLIO AND YIELDS
21
Note: Yields presented on a fully taxable-equivalent basis, using a 35% federal tax rate and statutory interest expense disallowances.
Average loan portfolio and yield are for the three months ended September 30, 2017.
Balance Yield 2Q 2017 3Q 2016 2Q 2017 3Q 2016
Comm'l Mort 6,209$ 4.07% 45$ 538$ 0.07% 0.08%
Commercial 4,257 4.08% 36 191 0.08% 0.32%
Resid Mort 1,841 3.83% 133 338 0.06% 0.07%
Home Equity 1,570 4.48% (18) (71) 0.15% 0.40%
Construction 943 4.05% 46 105 0.07% 0.29%
Cons./Other 572 4.91% 23 79 (0.13%) (0.14%)
Total Loans 15,392$ 4.12% 265$ 1,180$ 0.07% 0.19%
(dollars in millions)
Balance From3Q 2017
Change in
Yield From
AVERAGE CUSTOMER FUNDING AND RATES
22
Balance Rate 2Q 2017 3Q 2016 2Q 2017 3Q 2016
Nonint DDA 4,495$ - % 107$ 267$ - % - %
Int DDA 3,943 0.39% 253 341 0.09% 0.20%
Savings/MMDA 4,603 0.34% 288 524 0.09% 0.14%
Brokered Deposits 90 1.23% 90 90 1.23% 1.23%
CD's 2,745 1.15% 49 (69) 0.05% 0.08%
Total Deposits 15,876 0.40% 787 1,153 0.06% 0.09%
Cash Mgt 256 0.19% (21) (2) 0.10% 0.10%
Total Customer Funding 16,132$ 0.40% 766$ 1,151$ 0.06% 0.10%
(dollars in millions)
Balance From3Q 2017
Change In
Rate From
Note: Average customer funding and the rate are for the three months ended September 30, 2017.
ENDING LOAN DISTRIBUTION BY STATE
SEPTEMBER 30, 2017
23
Comm'l Consumer
Comm'l Mortgage Constr. Res. Mtg. & Other Total
(in thousands)
Pennsylvania 3,129,220$ 3,274,457$ 516,258$ 730,036$ 1,285,685$ 8,935,656$
New Jersey 541,509 1,449,842 173,653 263,220 395,725 2,823,949
Maryland 333,622 688,343 141,526 405,946 280,427 1,849,864
Virginia 105,357 527,096 65,291 405,887 62,368 1,165,999
Delaware 113,367 335,402 76,380 82,818 103,464 711,431
4,223,075$ 6,275,140$ 973,108$ 1,887,907$ 2,127,669$ 15,486,899$
NON-PERFORMING LOANS(1)
SEPTEMBER 30, 2017
24
Comm'l Consumer Ending Loans NPLs/Loans
Comm'l Mortgage Constr. Res. Mtg. & Other Total NPLs by State by State
Pennsylvania 35,338$ 11,081$ 5,765$ 9,772$ 6,044$ 68,000$ 8,935,656$ 0.76%
New Jersey 6,566 13,593 2,597 4,539 4,177 31,472 2,823,949 1.11%
Maryland 1,366 1,583 429 1,541 1,453 6,372 1,849,864 0.34%
Virginia 7,031 1,857 1,169 4,521 567 15,145 1,165,999 1.30%
Delaware 3,908 6,536 3,455 1,270 311 15,480 711,431 2.18%
54,209$ 34,650$ 13,415$ 21,643$ 12,552$ 136,469$ 15,486,899$ 0.88%
Ending Loans 4,233,075$ 6,275,140$ 973,108$ 1,887,907$ 2,127,669$ 15,496,899$
Non-performing Loan % (9/30/17) 1.28% 0.55% 1.38% 1.15% 0.59% 0.88%
Non-performing Loan % (9/30/16) 1.18% 0.68% 1.30% 1.52% 0.77% 0.96%
(dollars in thousands)
(1) Includes loans ≥ 90 days past due and accruing, and non-accrual loans.
NET CHARGE-OFFS (RECOVERIES)
THREE MONTHS ENDED SEPTEMBER 30, 2017
25
Annualized
Comm'l Consumer Average Loans Charge-Offs to
Comm'l Mortgage Constr. Res. Mtg. & Other Total by State Average Loans
Pennsylvania 1,409$ 240$ 2,204$ 156$ 391$ 4,400$ 8,951,377$ 0.20%
New Jersey 287 144 (33) (47) 287 638 2,802,908 0.09%
Maryland 356 (1) (56) (5) 112 406 1,816,912 0.09%
Virginia - - - (123) 7 (116) 1,119,299 -0.04%
Delaware (3) (6) - (5) 10 (4) 701,571 0.00%
2,049$ 377$ 2,115$ (24)$ 807$ 5,324$ 15,392,067$ 0.14%
Average Loans 4,257,075$ 6,208,630$ 943,029$ 1,841,559$ 2,141,774$ 15,392,067$
Annualized Net Charge-offs
(Recoveries) to Average Loans 0.19% 0.02% 0.90% -0.01% 0.15% 0.14%
(dollars in thousands)
INVESTMENT PORTFOLIO
SEPTEMBER 30, 2017
26
Weighted Avg.
Remaining
Life Amortized Unrealized Estimated
(in years) Cost Gain (Loss) Fair Value
(dollars in millions)
Residential mortgage-backed securities 4.4 1,185 (3) 1,182
Collateralized mortgage obligations 3.5 602$ (8)$ 594$
State and municipal securities 8.2 415 (1) 414
Commercial mortgage-backed securities 3.9 162 (0) 162
Auction rate securities 5.0 107 (9) 98
Corporate debt securities 9.6 92 1 93
U.S. Government sponsored agency securities 5.7 6 (0) 6
Bank stocks N/A 6 6 12
Other equity securities N/A 1 (0) 1
Total Investments 5.0 2,576$ (15)$ 2,561$
NON-INTEREST INCOME
(EXCLUDING SECURITIES GAINS)
27
3Q 2017 2Q 2017 3Q 2016 2Q 2017 3Q 2016
Investment management and trust services 12,157$ 12,132$ 11,425$ 25$ 732$
Overdraft fees 5,844 5,648 5,770 196 74
Mortgage banking income 4,805 6,141 4,529 (1,336) 276
Merchant fees 4,398 4,531 4,220 (133) 178
Cash management fees 3,624 3,614 3,605 10 19
Other service charges 3,554 3,652 3,704 (98) (150)
Debit card income 2,830 2,884 2,718 (54) 112
Credit card income 2,829 2,666 2,668 163 161
Commercial loan interest rate swap fees 1,954 3,768 4,359 (1,814) (2,405)
Letter of credit fees 1,056 1,109 1,078 (53) (22)
Other income 4,326 4,790 4,071 (464) 255
Total Non-Interest Income 47,377$ 50,935$ 48,147$ (3,558)$ (770)$
(in thousands)
Change From
NON-INTEREST EXPENSE
28
3Q 2017 2Q 2017 3Q 2016 2Q 2017 3Q 2016
Salaries and employee benefits 72,894$ 74,496$ 70,696$ (1,602)$ 2,198$
Net occupancy expense 12,180 12,316 11,782 (136) 398
Data processing and software 10,301 9,054 8,727 1,247 1,574
Other outside services 6,582 7,708 5,783 (1,126) 799
Amortization of tax credit investments 3,503 3,151 - 352 3,503
Professional fees 3,388 2,931 2,535 457 853
Equipment expense 3,298 3,034 3,137 264 161
FDIC insurance expense 3,007 2,366 1,791 641 1,216
Supplies and postage 2,558 2,597 2,560 (39) (2)
Marketing 2,089 2,234 1,774 (145) 315
Telecommunications 1,233 1,379 1,411 (146) (178)
Operating risk loss 1,114 754 556 360 558
OREO & repo expenses, net (40) 917 742 (957) (782)
Other expenses 10,050 9,758 8,354 292 1,696
Total Non-Interest Expenses 132,157$ 132,695$ 119,848$ (538)$ 12,309$
(in thousands)
Change From
A SUSTAINABLE PAYOUT
$0.30
$0.32
$0.34
$0.38
$0.41
$0.33
3.12%
2.44%
2.75%
2.92%
2.18%
2.35%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
$0.00
$0.04
$0.08
$0.12
$0.16
$0.20
$0.24
$0.28
$0.32
$0.36
$0.40
$0.44
2012 2013 2014 2015 2016 YTD 9/2017
Cash Dividend Yield(1)
29
(1) Annual dividend per share divided by period-end stock price.
(2) Compounded annual growth rate from December 31, 2012 to annualized September 30 , 2017.
Cash Dividend Per Common Share & Yield
CAGR (2) = 8.0%
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NON-GAAP RECONCILIATION
Note: The Corporation has presented the following non-GAAP (Generally Accepted Accounting Principles) financial measures because it believes
that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition.
Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-
GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the
Corporation's industry. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be
comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP
basis measures and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.
30
Sep 30 Sep 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30
2016 2017 2016 2016 2017 2017 2017
Efficiency ratio
Non-interest expense - Numerator 361,899$ 387,127$ 119,848$ 127,621$ 122,275$ 132,695$ 132,157$
Less: Amortization of tax credit investments - (7,652) - - (998) (3,151) (3,503)
Numerator 361,899$ 379,475$ 119,848$ 127,621$ 121,277$ 129,544$ 128,654$
Net interest income (fully taxable-equivalent) 403,700$ 443,313$ 135,784$ 137,571$ 143,243$ 147,349$ 152,721$
Plus: Total Non-interest income 137,423 151,018 48,149 52,755 46,673 52,371 51,974
Less: Investment securities gains (1,025) (7,139) (2) (1,525) (1,106) (1,436) (4,597)
Denominator 540,098$ 587,192$ 183,931$ 188,801$ 188,810$ 198,284$ 200,098$
Efficiency ratio (1) 67.0% 64.6% 65.2% 67.6% 64.2% 65.3% 64.3%
Sep 30 Sep 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30
2016 2017 2016 2016 2017 2017 2017
Return on Average Shareholders' Equity (ROE) (Tangible)
et i come - Numerator 119,475$ 137,752$ 41,468$ 42,150$ 43,380$ 45,467$ 48,905$
Av age sh r holders' equity 2,089,882$ 2,179,316$ 2,120,596$ 2,132,655$ 2,140,547$ 2,181,189$ 2,215,389$
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) 1,558,326$ 1,647,760$ 1,589,040$ 1,601,099$ 1,608,991$ 1,649,633$ 1,683,833$
Return on average shareholders' equity (tangible), annualized 10.24% 11.18% 10.38% 10.47% 10.93% 11.06% 11.52%
(dollars in thousands)
Three Months Ended
Three Months Ended
Nine Months Ended
Nine Months Ended
(dollars in thousands)
(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 September 30, 2017 would have been 24.8% vs 20.5%.
NON-GAAP RECONCILIATION (CON’T)
31
Sep 30 Dec 31 Mar 31 Jun 30 Sep 30
2016 2016 2017 2017 2017
Tangible Common Equity to Tangible Assets (TCE Ratio)
Shareholders' equity 2,129,436$ 2,121,115$ 2,154,683$ 2,191,770$ 2,225,786$
Less: Intangible assets (531,556) (531,556) (531,556) (531,556) (531,556)
Tangible shareholders' equity (numerator) 1,597,880$ 1,589,559$ 1,623,127$ 1,660,214$ 1,694,230$
Total assets 18,701,062$ 18,944,247$ 19,178,576$ 19,647,435$ 20,062,860$
Less: Intangible assets (531,556) (531,556) (531,556) (531,556) (531,556)
Total tangible assets (denominator) 18,169,506$ 18,412,691$ 18,647,020$ 19,115,879$ 19,531,304$
Tangible Common Equity to Tangible Assets 8.8% 8.6% 8.7% 8.7% 8.7%
Sep 30 Dec 31 Mar 31 Jun 30 Sep 30
2016 2016 2017 2017 2017
Pre-Provision Net Revenue
Net interest income 130,565$ 132,237$ 137,579$ 141,563$ 146,809$
Non-interest income 48,149 52,755 46,673 52,371 51,974
Less: Investment securities gains (2) (1,525) (1,106) (1,436) (4,597)
Total Revenue 178,712$ 183,467$ 183,146$ 192,498$ 194,186$
Total Non-interest expense 119,848$ 127,621$ 122,275$ 132,695$ 132,157$
Less: Amortization of tax credit investments - - (998) (3,151) (3,503)
119,848$ 127,621$ 121,277$ 129,544$ 128,654$
Pre-Provision Net Revenue 58,864$ 55,846$ 61,869$ 62,954$ 65,532$
Three Months Ended
(dollars in thousands)
(in thousands)
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