Attached files
| file | filename |
|---|---|
| EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER AND YEAR ENDED DEC 31, 2017 - FULTON FINANCIAL CORP | copyofexhibit99212-31x17.htm |
| EX-99.1 - PRESS RELEASE DATED JANUARY 22, 2018 - FULTON FINANCIAL CORP | copyofexhibit99112-31x17.htm |
| 8-K/A - 8-K/A - FULTON FINANCIAL CORP | a1231178-ka.htm |
D A T A A S O F D E C E M B E R 3 1 , 2 0 1 7
U N L E S S O T H E R W I S E N O T E D
2017 AND FOURTH QUARTER RESULTS
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 “2018 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, June 30, 2017 and September 30, 2017, which have
been filed with the Securities and Exchange Commission and are available in the Investor Relations section of the
Corporation’s website (www.fult.com) and on the Securities and Exchange Commission’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
2017 HIGHLIGHTS
2017 net income of $171.8 million, or $0.98 per share. Excluding tax charge(1)(2), 2017 net income was
$187.4 million, or $1.07 per share.
2017 Key Accomplishments
Record year of revenues and net income, excluding tax charge(1)
Average loan growth of 7.8% and average demand and savings deposit growth of 8.1%
Asset quality continues to be stable
Pre-provision net revenue(2) increased 18.7%
Fulton Financial surpasses $20 billion in total assets
FOURTH QUARTER HIGHLIGHTS
Fourth quarter net income of $34.0 million, or $0.19 per share. Excluding tax charge(1)(2), fourth
quarter net income was $49.6 million, or $0.28 per share.
Average loan growth of 1.1% and average demand and savings deposit growth of 1.6%, linked quarter
Asset quality continues to be stable
Pre-provision net revenue(2) increased 5.8%, linked quarter
3
(1) In the fourth quarter of 2017, a $15.6 million charge to income taxes was recorded related to the re-measurement of net deferred tax assets resulting from the new federal tax
legislation enacted in December 2017.
(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.
THE IMPACT OF TAX REFORM
During the fourth quarter of 2017, the Corporation recorded a $15.6 million charge(1) to income taxes related to
the re-measurement of net deferred tax assets as a result of a new federal tax legislation enacted in December
2017. In the following table, the “As Adjusted” column presents Income Taxes, Net Income, Earnings Per Share
(Diluted) and selected financial ratios adjusted to exclude this charge:
4
(1) This charge was estimated by the Corporation as of December 31, 2017 based on an initial analysis of the Act and may be adjusted in future periods following completion of the
Corporation’s 2017 federal income tax return and evaluation of the effects, if any, of implementation guidance or regulations that may be issued by the Internal Revenue Service
on the Corporation’s initial analysis of the Act.
(2) The information presented in the “As Adjusted” column and ROE (tangible) are non-GAAP based financial measures. Please refer to the calculation and management’s reasons for
using these measures on the slide titled “Non-GAAP Reconciliation” at the end of this presentation.
Fourth Quarter 2017 Full Year 2017
As Reported Adjustment As Adjusted(2) As Reported Adjustment As Adjusted(2)
Income before Income Taxes 61,187 - 61,187 234,454 - 234,454
Income Taxes 27,186 (15,634) 11,552 62,701 (15,634) 47,067
Net Income 34,001$ 15,634$ 49,635$ 171,753$ 15,634$ 187,387$
Earnings Per Share (Diluted) $0.19 0.09$ 0.28$ $0.98 0.09$ 1.07$
ROA 0.67% 0.31% 0.98% 0.88% 0.08% 0.96%
ROE 6.03% 2.77% 8.80% 7.83% 0.71% 8.54%
ROE (tangible) (2) 7.91% 3.64% 11.55% 10.33% 0.94% 11.27%
(dollars in thousands, except per-share data)
INCOME STATEMENT SUMMARY – YEAR TO DATE
Net Income of $171.8 million; 6.3% increase from
2016. Earnings per share increased 5.4% to $0.98.
Net Interest Income
10.5% increase, reflecting the impact of loan
growth and a 10 basis point higher net interest
margin (NIM)
Loan Loss Provision
$23.3 million provision in 2017, attributed to loan
growth with generally improved credit metrics
Non-Interest Income
Excluding securities gains, 6.0% increase driven
largely by the $5.1 million litigation settlement
recognized in the fourth quarter of 2017,
investment management and trust (IMT) fees as
well as increases in Small Business Administration
(SBA) income, debit and credit card income and
merchant fees
Non-Interest Expenses
7.4% increase from 2016 primarily due to
amortization of tax credit investments, higher
salaries and benefits expense, state taxes, write-off
of certain accumulated capital expenditures related
to in-process technology initiatives in commercial
banking and other outside services
Income Taxes
34.5% increase due to the tax charge of $15.6
million, somewhat offset by lower effective tax rate
(ETR)
5
(1) ROA is return an average assets determined by dividing net income for the period indicated by average assets, annualized.
(2) ROE is return on average shareholders’ equity determined by dividing net income for the period indicated by average shareholders’ equity, annualized.
(3) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Reconciliation” at the end of this presentation.
YTD December
2017 2016 Change
Net Interest Income 575,364$ 520,772$ 54,592$
Provision for Credit Losses 23,305 13,182 10,123
Non-Interest Income 198,903 187,628 11,275
Securities Gains 9,071 2,550 6,521
Non-Interest Expense 525,579 489,519 36,060
Income before Income Taxes 234,454 208,249 26,205
Income Taxes 62,701 46,624 16,077
Net Income 171,753$ 161,625$ 10,128$
Earnings Per Share (Diluted) $0.98 0.93$ 0.05$
ROA (1) 0.88% 0.88% -
ROE (2) 7.83% 7.69% 0.14%
ROE (tangible) (3) 10.33% 10.30% 0.03%
Efficiency ratio (3) 64.5% 67.2% (2.7%)
(dollars in thousands, except per-share data)
INCOME STATEMENT SUMMARY – QUARTERLY COMPARISON
6
(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.
4Q17 3Q17 4Q16
Net Interest Income 149,413 2,604$ 17,176$
Provision for Credit Losses 6,730 1,655 1,730
Non-Interest Income 55,024 7,647 3,794
Securities Gains 1,932 (2,665) 407
Non-Interest Expense 138,452 6,295 10,831
Income before Income Taxes 61,187 (364) 8,816
Income Taxes 27,186 14,540 16,965
Net Income 34,001$ (14,904)$ (8,149)$
Earnings Per Share (Diluted) 0.19$ (0.09)$ (0.05)$
ROA (1) 0.67% (0.31%) (0.22%)
ROE (2) 6.03% (2.73%) (1.83%)
ROE (tangible) (3) 7.91% (3.61%) (2.56%)
Efficiency ratio (3) 64.2% (0.1%) (3.4%)
(dollars in thousands, except per-share data)
Change from
Net Income of $34.0 million, 30.5% decrease from 3Q17 and 19.3%
decrease from 4Q16.
Excluding the tax charge of $15.6 million, earnings per share remained
unchanged from 3Q17 and increased 16.7% from 4Q16.
Net Interest Income
From 3Q17: Increase of 1.8%, reflecting the impact of loan growth and a 2
basis point increase in NIM
From 4Q16: Increase of 13.0%, driven by loan growth and the impact of a
14 basis point increase in NIM reflecting multiple Federal Funds rate
increases, and long-term debt refinancing at lower rates
Loan Loss Provision
$6.7 million provision in 4Q17; asset quality continues to be stable
Non-Interest Income
From 3Q17: 16.1% increase driven by $5.1 million litigation settlement,
IMT fees, commercial loan swap fees, SBA income and debit card income
From 4Q16: 7.4% increase related the litigation settlement. Excluding the
settlement, non-interest income decreased 2.6% attributed to higher
mortgage banking income (which includes a $1.7 million favorable
mortgage servicing valuation adjustment in 4Q16)
Non-Interest Expenses
From 3Q17: 4.8% increase driven by other outside services, higher salaries
and benefits, other real estate and repossession expense, FDIC insurance
expense and write-off of certain accumulated capital expenditures related
to in-process technology initiatives in commercial banking
From 4Q16: 8.5% increase due to write-off of certain accumulated capital
expenditures related to in-process technology initiatives in commercial
banking, amortization of tax credit investments, FDIC insurance expense,
other outside services, data processing and software and, to a lesser
extent, OREO and repossession expense, occupancy expense and
professional fees
Income Taxes
44.4% ETR in 4Q17 vs. 20.5% in 3Q17 and 19.5% in 4Q16. Excluding the
tax charge, ETR for 4Q17 was 18.9%.
NET INTEREST INCOME AND MARGIN – QUARTERLY COMPARISON
Net Interest Income & Net Interest Margin
~ $730
million
~ $610
million
$132.2
$137.6 $141.6
$146.8 $149.4
3.15%
3.26% 3.29%
3.27% 3.29%
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
4Q16 1Q17 2Q17 3Q17 4Q17
Net Interest Income
Net Interest Margin (Fully-taxable equivalent basis, or FTE)
Average Interest-Earning Assets & Yields
Average Liabilities & Rates
$2.9 $2.9 $2.9 $3.1 $3.2
$14.5 $14.9 $15.1
$15.4 $15.6
3.62% 3.74% 3.78% 3.80% 3.83%
0.00%
2.00%
4.00%
$-
$5.0
$10.0
$15.0
$20.0
4Q16 1Q17 2Q17 3Q17 4Q17
Securities & Other Loans Earning Asset Yield (FTE)
$15.0 $14.9 $15.1 $15.9 $16.1
$1.3 $1.7 $1.7
$1.4 $1.4
0.70% 0.69%
0.72%
0.77% 0.78%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
$-
$5.0
$10.0
$15.0
$20.0
4Q16 1Q17 2Q17 3Q17 4Q17
Deposits Borrowings Cost of Interest-bearing Liabilit ies
($ IN MILLIONS) ($ IN BILLIONS)
($ IN BILLIONS)
7
ASSET QUALITY – ANNUAL COMPARISON
($ IN MILLIONS)
8
Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans
134.26%
118.37%
130.15% 130.67%
1.42%
1.24% 1.17% 1.12%
0.00%
1.00%
2.00%
3.00%
0.0%
40.0%
80.0%
120.0%
160.0%
2014 2015 2016 2017
Allowance/NPLs Allowance/Loans
Net Charge-offs (NCOs) and NCOs to Average Loans Allowance for Credit Losses (Allowance) to NPLs & Loans
$31.5
$16.8
$13.3
$18.6
0.24%
0.13%
0.09%
0.12%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
2014 2015 2016 2017
NCOs NCOs/Average Loans (annualized)
$12.5
$2.3
$13.2
$23.3
$-
$5.0
$10.0
$15.0
$20.0
$25.0
2014 2015 2016 2017
138.48
144.81
131.64 $134.8
1.06% 1.05%
0.90% 0.85%
0.00%
0.50%
1.00%
1.50%
-
25.00
50.00
75.00
100.00
125.00
150.00
2014 2015 2016 2017
NPL NPLs/Loans
NON-INTEREST INCOME – QUARTER COMPARISON
($ IN MILLIONS)
Non-Interest Income, Excluding Securities Gains
~ $730
million
~ $610
million
$51.2
$45.6
$50.9
$47.4
$55.0
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
4Q16 1Q17 2Q17 3Q17 4Q17
Mortgage Banking Income & Spreads
Other Non-Interest Income
1.94%
1.62% 1.44% 1.62% 1.36%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
4Q16(2) 1Q17 2Q17(2) 3Q17 4Q17
Gains on Sales Servicing Income Spread on Sales (1)
$7.0
$4.6
$6.1
$4.8
$4.4
$-
$ 0.0
$20.0
30.0
40.0
0.0
4Q16 1Q17 2Q17 3Q17 4Q17
Invt Mgmt & Trust Srvs Deposit Srv Chgs Oth Srv Chgs Other
$44.2
$41.0
$44.8 $42.6
$50.6
(1) Represents Gains on Sales divided by total new commitments to originate residential mortgage
loans for customers.
(2) Servicing income includes $1.7 million and $1.3 million MSR recoveries in 4Q16 and 2Q17,
respectively.
9
NON-INTEREST EXPENSES – QUARTERLY COMPARISON
($ IN MILLIONS)
Non-Interest Expense & Efficiency Ratio (1)
~ $730
million
~ $610
million
$127.6
$122.3
$132.7 $132.2
$138.5
67.6%
64.2%
65.3%
64.3% 64.2%
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
$160.0
4Q16 1Q17 2Q17 3Q17 4Q17
Salaries and Employee Benefits & Staffing
Other Non-Interest Expenses
3,490 3,590
-
2,000
4,000
6,000
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
4Q16 1Q17 2Q17 3Q17 4Q17
Total Salaries Employee Benefits Average Full-time Equivalent Employees
$73.3 $69.2
$74.5 $72.9 $73.5
$-
$10.0
$20.0
$30.0
$40.0
$5 .0
$6 .0
$70.0
4Q16 1Q17 2Q17 3Q17 4Q17
Occp & Equip Data Processing & Software Outside Srvs Other
$54.4 $53.0
$58.2 $59.3
$65.0
(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.
10
PROFITABILITY & CAPITAL – ANNUAL COMPARISON
11
ROA(1) ROE and ROE (tangible)(2)
Tangible Common Equity Ratio(2) Diluted Earnings Per Common Share
7.62% 7.38% 7.69% 7.83%
10.31% 10.01% 10.30% 10.33%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
2014 2015 2016 2017
ROE ROE (tangible)
0.93% 0.86% 0.88% 0.88%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
2014 2015 2016 2017
(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% 8.7% 8.6% 8.7%
0.0%
4.
8.
12.0
2014 2015 2016 2017
$0.84 $0.85
$0.93
$0.98
$-
$0.20
$0.40
$ .60
$0.80
$1.00
$1.20
2014 2015 2016 2017
2018 OUTLOOK
• Loans & Deposits: Average annual loan and core deposit growth rates in the mid single digits
• Asset Quality: Provision driven primarily by loan growth
• Non-Interest Income(1): Low single-digit growth
• Non-Interest Expense: Including amortization of tax free investments, low single-digit growth
rate
• Capital: Focus on utilizing capital to support loan growth and provide appropriate returns to
shareholders
• Net Interest Margin: Tax reform legislation impacts the computation of 2018 tax equivalent net
interest margin percentages. As a result of the impact of the lower corporate income tax rate on
primarily the tax-free loan portfolio, NIM in the first quarter of 2018 is expected to decline 1 to 5
basis points. However for the full year 2018, the outlook for NIM is an increase of 2 to 7 basis
points.
• Effective Tax Rate: Anticipated to range between 11% to 16% depending on level of tax credits
realized
12
(1) Excluding securities gains and the litigation settlement of $5.1 million recognized in the fourth quarter of 2017
NON-GAAP RECONCILIATION
D ec 31, Sep 30, Jun 30, M ar 31, D ec 31,
2017 2017 2017 2017 2016 2017 2016
Eff iciency rat io
Non-interest expense 138,452$ 132,157$ 132,695$ 122,275$ 127,621$ 525,579$ 489,519$
Less: Amortization of tax credit investments (3,376) (3,503) (3,151) (998) - (11,028) -
Numerator 135,076$ 128,654$ 129,544$ 121,277$ 127,621$ 514,551$ 489,519$
Net interest income (fully taxable equivalent) 155,253$ 152,721$ 147,349$ 143,243$ 137,571$ 598,565$ 541,271$
P lus: Total Non-interest income 56,956 51,974 52,371 46,673 52,755 207,974 190,178
Less: Investment securities (gains) losses (1,932) (4,597) (1,436) (1,106) (1,525) (9,071) (2,550)
Denominator 210,277$ 200,098$ 198,284$ 188,810$ 188,801$ 797,468$ 728,899$
Efficiency ratio 64.24% 64.30% 65.33% 64.23% 67.60% 64.52% 67.16%
D ec 31, Sep 30, D ec 31,
2017 2017 2016 2017 2016 2015 2014
(dollars in thousands)
R eturn o n A verage Shareho lders' Equity (R OE) (T angible)
Net income 34,001$ 48,905$ 42,150$ 171,753$ 161,625$ 149,502$ 157,894$
P lus: Intangible amortization, net of tax - - - - - 161 818
Numerator 34,001$ 48,905$ 42,150$ 171,753$ 161,625$ 149,663$ 158,712$
Average shareholders' equity 2,237,031$ 2,215,389$ 2,132,655$ 2,193,863$ 2,100,634$ 2,026,883$ 2,071,640$
Less: Average goodwill and intangible assets (531,556) (531,556) (531,556) (531,556) (531,556) (531,618) (532,425)
Average tangible shareholders' equity (denominator) 1,705,475$ 1,683,833$ 1,601,099$ 1,662,307$ 1,569,078$ 1,495,265$ 1,539,215$
Return on average common shareholders' equity (tangible), annualized 7.91% 11.52% 10.47% 10.33% 10.30% 10.01% 10.31%
(dollars in thousands)
T hree M o nths Ended
Year Ended D ec 31,
Year Ended D ec 31,
T hree M o nths Ended
Note: The Corporation has presented the following non-GAAP (Generally Accepted Accounting Principles) financial measures because it believes
that these measures provide seful 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.
13
NON-GAAP RECONCILIATION (CONTINUED)
D ec 3 1, D ec 3 1, D ec 3 1, D ec 3 1,
2 0 17 2 0 16 2 0 15 2 0 14
Tang ib le C ommon Equit y t o Tang ib le A sset s ( TC E R at io )
Shareholders' equity 2,229,857$ 2,121,115$ 2,041,894$ 1,996,665$
Less: Intangible assets (531,556) (531,556) (531,556) (531,803)
Tangible shareholders' equity (numerator) 1,698,301$ 1,589,559$ 1,510,338$ 1,464,862$
Total assets 20,036,905$ 18,944,247$ 17,914,718$ 17,124,767$
Less: Intangible assets (531,556) (531,556) (531,556) (531,803)
Total tangible assets (denominator) 19,505,349$ 18,412,691$ 17,383,162$ 16,592,964$
Tangible Common Equity to Tangible Assets 8 .71% 8 .6 3 % 8 .6 9 % 8 .8 3 %
D ec 3 1, Sep 3 0 ,
2 0 17 2 0 17 2 0 17 2 0 16 2 0 15 2 0 14
Pre- Provision N et R evenue
Net interest income 149,413$ 146,809$ 575,364$ 520,772$ 499,994$ 514,867$
on-interest income 56,956 51,974 207,974 190,178 181,839 167,379
Less: Investment securit ies gains (1,932) (4,597) (9,071) (2,550) (9,066) (2,041)
Total Revenue 204,437 194,186 774,267 708,400 672,767 680,205
Non-interest expense 138,452 132,157 525,579 489,519 480,160 459,246
Less: Loss on redemption of TruPS - - - - (5,626) -
Less: Amort izat ion of tax credit investments (3,376) (3,503) (11,028) - - -
Total Non-interest expense, as adjusted 135,076 128,654 514,551 489,519 474,534 459,246
Pre- Provision N et R evenue 69,361$ 65,532$ 259,716$ 218,881$ 198,233$ 220,959$
(dollars in thousands)
(dollars in thousands)
Y ear Ended D ec 3 1,
Three M ont hs Ended
14
15
NON-GAAP RECONCILIATION (CONTINUED)
T hree M o nths Ended Year Ended
D ec 31, D ec 31,
2017 2017
Diluted earnings per share
Net income 34,001$ 171,753$
Plus: Re-measurement of net deferred tax assets 15,634 15,634
Net Income, adjusted (numerator) 49,635$ 187,387$
Weighted average shares (diluted) (denominator) 176,374 175,932
Net income per share, diluted 0.28$ 1.07$
Return on average assets
Net income 34,001$ 171,753$
Plus: Re-measurement of net deferred tax assets 15,634 15,634
Net Income, adjusted (numerator) 49,635$ 187,387$
Average assets (denominator) 20,072,579$ 19,580,367$
Return on average assets, annualized 0.98% 0.96%
Return on average shareholders' equity
Net income 34,001$ 171,753$
Plus: Re-measurement of net deferred tax assets 15,634 15,634
Net Income, adjusted (numerator) 49,635$ 187,387$
Average shareholders' equity (denominator) 2,237,031$ 2,193,863$
Return on average shareholders' equity, annualized 8.80% 8.54%
Return on average shareholders' equity (tangible)
Net Income, as reported 34,001$ 171,753$
Plus: Re-measurement of net deferred tax assets 15,634 15,634
Net Income, adjusted (numerator) 49,635$ 187,387$
Average shareholders' equity 2,237,031$ 2,193,863$
Less: Average goodw ill and intangible assets (531,556) (531,556)
Average tangible shareholders' equity (denominator) 1,705,475$ 1,662,307$
Return on average shareholders' equity (tangible), annualized 11.55% 11.27%
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 re-measurement of net deferred tax assets:
www.fult.com