FULTON FINANCIAL CORP - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED MAR 31, 2018

Attached files

file	filename
EX-99.3 - PRESENTATION MATERIALS TO BE DISCUSSED DURING THE CONFERENCE CALL AND WEBCAST - FULTON FINANCIAL CORP	q1ccearningsdeck33118.htm
EX-99.1 - PRESS RELEASE DATED APRIL 17, 2018 - FULTON FINANCIAL CORP	exhibit9913-31x18.htm
8-K - 8-K - FULTON FINANCIAL CORP	a8-k3x31x18.htm



FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
dollars in thousands, except per-share data and percentages
	Three Months Ended
	March 31			December 31			September 30			June 30			March 31
	2018			2017			2017			2017			2017
Ending Balances
Investments	$	2,592,823		$	2,547,956		$	2,561,516		$	2,488,699		$	2,506,017
Loans, net of unearned income	15,696,284			15,768,247			15,486,899			15,346,617			14,963,177
Total assets	19,948,941			20,036,905			20,062,860			19,647,435			19,178,576
Deposits	15,477,103			15,797,532			16,141,780			15,357,361			15,090,344
Shareholders' equity	2,235,493			2,229,857			2,225,786			2,191,770			2,154,683

Average Balances
Investments	$	2,556,986		$	2,566,337		$	2,523,758		$	2,488,684		$	2,528,061
Loans, net of unearned income	15,661,032			15,560,185			15,392,067			15,127,205			14,857,562
Total assets	19,876,093			20,072,579			19,872,726			19,300,975			19,060,857
Deposits	15,420,312			16,056,789			15,875,469			15,089,104			14,886,327
Shareholders' equity	2,224,615			2,237,031			2,215,389			2,181,189			2,140,547

Income Statement
Net interest income	$	151,318		$	149,413		$	146,809		$	141,563		$	137,579
Provision for credit losses	3,970			6,730			5,075			6,700			4,800
Non-interest income	45,875			56,956			51,974			52,371			46,673
Non-interest expense	136,661			138,452			132,157			132,695			122,275
Income before taxes	56,562			61,187			61,551			54,539			57,177
Net income	49,480			34,001			48,905			45,467			43,380
Pre-provision net revenue	62,150			69,361			65,532			62,954			61,869

Per Share
Net income (basic)	$	0.28		$	0.19		$	0.28		$	0.26		$	0.25
Net income (diluted)	0.28			0.19			0.28			0.26			0.25
Cash dividends	0.12			0.14			0.11			0.11			0.11
Tangible common equity	9.71			9.70			9.68			9.50			9.31
Weighted average shares (basic)	175,303			175,132			174,991			174,597			174,150
Weighted average shares (diluted)	176,568			176,374			176,216			175,532			175,577

Asset Quality
Net charge-offs to average loans (annualized)	0.10%			0.14		%	0.14		%	0.11		%	0.09		%
Non-accrual loans to total loans	0.78%			0.79		%	0.80		%	0.80		%	0.78		%
Non-performing loans to total loans	0.86%			0.85		%	0.88		%	0.88		%	0.88		%
Non-performing assets to total loans and other real estate owned	0.93%			0.92		%	0.95		%	0.96		%	0.96		%
Non-performing assets to total assets	0.73		%	0.72		%	0.73		%	0.75		%	0.75		%
Allowance for credit losses to loans outstanding	1.12%			1.12		%	1.13		%	1.14		%	1.15		%
Allowance for credit losses to non-performing loans	130.73%			130.67		%	128.05		%	128.92		%	131.26		%
Non-performing assets to tangible shareholders' equity and allowance for credit losses⁽¹⁾	7.73%			7.71		%	7.87		%	8.02		%	7.99		%
Total delinquency rate	1.19%			1.24		%	1.28		%	1.20		%	1.23		%



Profitability
Return on average assets	1.01	%	0.67		%	0.98	%	0.94	%	0.92	%
Return on average shareholders' equity	9.02%		6.03		%	8.76	%	8.36	%	8.22	%
Return on average shareholders' equity (tangible)⁽¹⁾	11.85%		7.91		%	11.52	%	11.06	%	10.93	%
Net interest margin	3.35	%	3.29		%	3.27	%	3.29	%	3.26	%
Efficiency ratio⁽¹⁾	67.48%		64.24		%	64.30	%	65.33	%	64.23	%

Capital Ratios
Tangible common equity ratio⁽¹⁾	8.78	%	8.71		%	8.67	%	8.68	%	8.70	%
Tier 1 leverage ratio⁽²⁾	9.20%		8.93		%	8.97	%	9.06	%	9.02	%
Common equity Tier 1 capital ratio⁽²⁾	10.70	%	10.38		%	10.42	%	10.25	%	10.43	%
Tier 1 capital ratio⁽²⁾	10.70%		10.38		%	10.42	%	10.25	%	10.43	%
Total risk-based capital ratio⁽²⁾	13.30%		13.02		%	13.09	%	12.95	%	13.18	%

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 March 31, 2018 are preliminary and remaining periods are actual.
(3)Excluding the re-measurement of net deferred tax assets of $15.6 million, which is considered a Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the page titled “Reconciliation of Non-GAAP Measures" at the end of this document.



Exhibit 99.2

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
																	% Change from
		Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31		Mar 31
		2018			2017			2017			2017			2017			2017		2017
ASSETS
	Cash and due from banks	$	100,151		$	108,291		$	99,803		$	94,938		$	93,844		(7.5	)%	6.7	%
	Other interest-earning assets	267,806			354,566			645,796			392,842			350,387			(24.5	)%	(23.6	)%
	Loans held for sale	23,450			31,530			23,049			62,354			24,783			(25.6	)%	(5.4	)%
	Investment securities	2,592,823			2,547,956			2,561,516			2,488,699			2,506,017			1.8	%	3.5	%
	Loans, net of unearned income	15,696,284			15,768,247			15,486,899			15,346,617			14,963,177			(0.5	)%	4.9	%
	Allowance for loan losses	(163,217		)	(169,910		)	(172,245		)	(172,342		)	(170,076		)	(3.9	)%	(4.0	)%
	Net loans	15,533,067			15,598,337			15,314,654			15,174,275			14,793,101			(0.4	)%	5.0	%
	Premises and equipment	230,313			222,802			221,551			217,558			216,171			3.4	%	6.5	%
	Accrued interest receivable	53,060			52,910			50,082			47,603			46,355			0.3	%	14.5	%
	Goodwill and intangible assets	531,556			531,556			531,556			531,556			531,556			—	%	—	%
	Other assets	616,715			588,957			614,853			637,610			616,362			4.7	%	0.1	%
	Total Assets	$	19,948,941		$	20,036,905		$	20,062,860		$	19,647,435		$	19,178,576		(0.4	)%	4.0	%
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits	$	15,477,103		$	15,797,532		$	16,141,780		$	15,357,361		$	15,090,344		(2.0	)%	2.6	%
	Short-term borrowings	937,852			617,524			298,751			694,859			453,317			51.9	%	106.9	%
	Other liabilities	359,994			353,646			358,384			365,484			342,323			1.8	%	5.2	%
	FHLB advances and long-term debt	938,499			1,038,346			1,038,159			1,037,961			1,137,909			(9.6	)%	(17.5	)%
	Total Liabilities	17,713,448			17,807,048			17,837,074			17,455,665			17,023,893			(0.5	)%	4.1	%
	Shareholders' equity	2,235,493			2,229,857			2,225,786			2,191,770			2,154,683			0.3	%	3.8	%
	Total Liabilities and Shareholders' Equity	$	19,948,941		$	20,036,905		$	20,062,860		$	19,647,435		$	19,178,576		(0.4	)%	4.0	%

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
	Real estate - commercial mortgage	$	6,332,508		$	6,364,804		$	6,275,140		$	6,262,008		$	6,118,533		(0.5	)%	3.5	%
	Commercial - industrial, financial and agricultural	4,299,072			4,300,297			4,223,075			4,245,849			4,167,809			—	%	3.1	%
	Real estate - residential mortgage	1,976,524			1,954,711			1,887,907			1,784,712			1,665,142			1.1	%	18.7	%
	Real estate - home equity	1,514,241			1,559,719			1,567,473			1,579,739			1,595,901			(2.9	)%	(5.1	)%
	Real estate - construction	976,131			1,006,935			973,108			938,900			882,983			(3.1	)%	10.5	%
	Consumer	326,766			313,783			302,448			283,156			288,826			4.1	%	13.1	%
	Leasing and other	271,042			267,998			257,748			252,253			243,983			1.1	%	11.1	%
	Total Loans, net of unearned income	$	15,696,284		$	15,768,247		$	15,486,899		$	15,346,617		$	14,963,177		(0.5	)%	4.9	%
Deposits, by type:
	Noninterest-bearing demand	$	4,291,821		$	4,437,294		$	4,363,915		$	4,574,619		$	4,417,733		(3.3	)%	(2.9	)%
	Interest-bearing demand	3,984,423			4,018,107			4,119,419			3,650,204			3,702,663			(0.8	)%	7.6	%
	Savings and money market accounts	4,487,277			4,586,746			4,790,985			4,386,128			4,251,574			(2.2	)%	5.5	%
	Total demand and savings	12,763,521			13,042,147			13,274,319			12,610,951			12,371,970			(2.1	)%	3.2	%
	Brokered deposits	64,195			90,473			109,936			—			—			(29.0	)%	—	%
	Time deposits	2,649,387			2,664,912			2,757,525			2,746,410			2,718,374			(0.6	)%	(2.5	)%
	Total Deposits	$	15,477,103		$	15,797,532		$	16,141,780		$	15,357,361		$	15,090,344		(2.0	)%	2.6	%
Short-term borrowings, by type:
	Customer repurchase agreements	$	165,186		$	172,017		$	185,945		$	174,224		$	181,170		(4.0	)%	(8.8	)%
	Customer short-term promissory notes	342,666			225,507			106,994			74,366			87,726			52.0	%	N/M
	Short-term FHLB advances	35,000			—			—			240,000			130,000			—	%	(73.1	)%
	Federal funds purchased	395,000			220,000			5,812			206,269			54,421			79.5	%	N/M
	Total Short-term Borrowings	$	937,852		$	617,524		$	298,751		$	694,859		$	453,317		51.9	%	106.9	%


N/M - Not meaningful



FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands
		Three Months Ended										% Change from
		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31		Mar 31
		2018		2017		2017		2017		2017		2017		2016
Interest Income:
	Interest income	$	177,687	$	174,987	$	171,511	$	163,881	$	158,487	1.5	%	12.1	%
	Interest expense	26,369		25,574		24,702		22,318		20,908		3.1	%	26.1	%
	Net Interest Income	151,318		149,413		146,809		141,563		137,579		1.3	%	10.0	%
	Provision for credit losses	3,970		6,730		5,075		6,700		4,800		(41.0	)%	(17.3	)%
	Net Interest Income after Provision	147,348		142,683		141,734		134,863		132,779		3.3	%	11.0	%
Non-Interest Income:
Other service charges and fees:
	Merchant fees	4,115		4,308		4,398		4,531		3,607		(4.5	)%	14.1	%
	Debit card income	2,817		3,526		2,830		2,884		2,665		(20.1	)%	5.7	%
	Commercial loan interest rate swap fees	1,291		2,914		1,954		3,768		3,058		(55.7	)%	(57.8	)%
	Letter of credit fees	992		1,037		1,056		1,109		1,200		(4.3	)%	(17.3	)%
	Foreign exchange income	533		510		470		446		334		4.5	%	59.6	%
	Other	1,671		1,534		1,543		1,604		1,573		8.9	%	6.2	%
	Total	11,419		13,829		12,251		14,342		12,437		(17.4	)%	(8.2	)%
Service charges on deposit accounts:
	Overdraft fees	5,145		5,609		5,844		5,648		5,469		(8.3	)%	(5.9	)%
	Cash management fees	4,317		3,669		3,624		3,614		3,537		17.7	%	22.1	%
	Other	2,500		3,392		3,554		3,652		3,394		(26.3	)%	(26.3	)%
	Total	11,962		12,670		13,022		12,914		12,400		(5.6	)%	(3.5	)%
	Investment management and trust services	12,871		13,152		12,157		12,132		11,808		(2.1	)%	9.0	%
	Mortgage banking income	4,193		4,386		4,805		6,141		4,596		(4.4	)%	(8.8	)%
	Other:
	Credit card income	2,816		2,778		2,829		2,666		2,648		1.4	%	6.3	%
	Small business administration lending income	357		1,355		565		1,163		429		(73.7	)%	(16.8	)%
	Other income	2,238		6,854		1,748		1,577		1,249		(67.3	)%	79.2	%
	Total	5,411		10,987		5,142		5,406		4,326		(50.8	)%	25.1	%
	Non-Interest Income before Investment Securities Gains	45,856		55,024		47,377		50,935		45,567		(16.7	)%	0.6	%
	Investment securities gains	19		1,932		4,597		1,436		1,106		(99.0	)%	(98.3	)%
	Total Non-Interest Income	45,875		56,956		51,974		52,371		46,673		(19.5	)%	(1.7	)%
Non-Interest Expense:
	Salaries and employee benefits	75,768		73,504		72,894		74,496		69,236		3.1	%	9.4	%
	Net occupancy expense	13,632		12,549		12,180		12,316		12,663		8.6	%	7.7	%
	Data processing and software	10,473		10,401		10,301		9,054		8,979		0.7	%	16.6	%
	Other outside services	8,124		7,665		6,582		7,708		5,546		6.0	%	46.5	%
	Professional fees	4,816		3,632		3,388		2,931		2,737		32.6	%	76.0	%
	Equipment expense	3,534		3,244		3,298		3,034		3,359		8.9	%	5.2	%
	FDIC insurance expense	2,953		3,618		3,007		2,366		2,058		(18.4	)%	43.5	%
	Marketing	2,250		1,725		2,089		2,234		1,986		30.4	%	13.3	%
	Amortization of tax credit investments	1,637		3,376		3,503		3,151		998		(51.5	)%	64.0	%
	Other	13,474		18,738		14,915		15,405		14,713		(28.1	)%	(8.4	)%
	Total Non-Interest Expense	136,661		138,452		132,157		132,695		122,275		(1.3	)%	11.8	%
	Income Before Income Taxes	56,562		61,187		61,551		54,539		57,177		(7.6	)%	(1.1	)%
	Income tax expense	7,082		27,186		12,646		9,072		13,797		(73.9	)%	(48.7	)%
	Net Income	$	49,480	$	34,001	$	48,905	$	45,467	$	43,380	45.5	%	14.1	%

N/M - Not meaningful



FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Three Months Ended
		March 31, 2018								December 31, 2017								March 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	$	15,661,032		$	162,262		4.19%		$	15,560,185		$	162,050		4.14%		$	14,857,562		$	146,650		4.00%
	Taxable investment securities	2,198,838			13,193			2.40%		2,177,833			12,218			2.24%		2,145,656			11,914			2.22%
	Tax-exempt investment securities	412,830			3,753			3.64%		411,398			4,526			4.40%		403,856			4,383			4.34%
	Equity securities	509			5			3.93%		2,219			33			5.91%		11,740			176			6.08%
	Total Investment Securities	2,612,177			16,951			2.60%		2,591,450			16,777			2.59%		2,561,252			16,473			2.57%
	Loans held for sale	20,015			216			4.31%		21,874			245			4.48%		15,857			187			4.72%
	Other interest-earning assets	302,783			1,172			1.55%		571,981			1,755			1.22%		312,295			842			1.08%
	Total Interest-earning Assets	18,596,007			180,601			3.93%		18,745,490			180,827			3.83%		17,746,966			164,152			3.74%
Noninterest-earning assets:
	Cash and due from banks	105,733								112,958								116,529
	Premises and equipment	230,247								223,698								217,875
	Other assets	1,113,326								1,163,686								1,149,621
	Less: allowance for loan losses	(169,220		)						(173,253		)						(170,134		)
	Total Assets	$	19,876,093							$	20,072,579							$	19,060,857
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits	$	3,958,894		$	4,004		0.41%		$	4,037,879		$	4,111		0.40%		$	3,650,931		$	2,239		0.25%
	Savings deposits	4,494,445			4,367			0.39%		4,752,337			4,594			0.38%		4,194,216			2,211			0.21%
	Brokered deposits	74,026			276			1.51%		105,135			336			1.27%		—			—			—%
	Time deposits	2,646,779			7,803			1.20%		2,706,982			8,041			1.18%		2,739,453			7,351			1.09%
	Total Interest-bearing Deposits	11,174,144			16,450			0.60%		11,602,333			17,082			0.58%		10,584,600			11,801			0.45%
	Short-term borrowings	896,839			2,041			0.91%		391,284			372			0.38%		712,497			855			0.48%
	FHLB advances and long-term debt	987,315			7,878			3.21%		1,038,257			8,120			3.12%		990,044			8,252			3.35%
	Total Interest-bearing Liabilities	13,058,298			26,369			0.82%		13,031,874			25,574			0.78%		12,287,141			20,908			0.69%
Noninterest-bearing liabilities:
	Demand deposits	4,246,168								4,454,456								4,301,727
	Other	347,012								349,218								331,442
	Total Liabilities	17,651,478								17,835,548								16,920,310
	Shareholders' equity	2,224,615								2,237,031								2,140,547
	Total Liabilities and Shareholders' Equity	$	19,876,093							$	20,072,579							$	19,060,857
	Net interest income/net interest margin (fully taxable equivalent)				154,232			3.35%					155,253			3.29%					143,244			3.26%
	Tax equivalent adjustment				(2,914		)						(5,840		)						(5,665		)
	Net interest income				$	151,318							$	149,413							$	137,579

	(1) Three months ended March 31, 2018 presented on a fully taxable-equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances. Prior periods are presented on a fully taxable-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.
	Note: The weighted average interest rate on total average interest-bearing liabilities and average non-interest bearing demand deposits (“cost of funds”) was 0.62%, 0.58% and 0.51% for the three months ended March 31, 2018, December 31, 2017 and March 31, 2017, respectively.
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
		Three Months Ended														% Change from
		Mar 31			Dec 31			Sep 30		Jun 30			Mar 31			Dec 31		Mar 31
		2018			2017			2017		2016			2017			2017		2017
Loans, by type:
	Real estate - commercial mortgage	$	6,305,821		$	6,232,674		$	6,208,630	$	6,163,844		$	6,039,140		1.2	%	4.4		%
	Commercial - industrial, financial and agricultural	4,288,634			4,263,199			4,257,075		4,221,025			4,205,070			0.6	%	2.0		%
	Real estate - residential mortgage	1,958,505			1,926,067			1,841,559		1,707,929			1,637,669			1.7	%	19.6		%
	Real estate - home equity	1,538,974			1,560,713			1,569,898		1,587,680			1,613,249			(1.4	)%	(4.6		)%
	Real estate - construction	984,242			1,004,166			943,029		897,321			840,966			(2.0	)%	17.0		%
	Consumer	315,927			312,320			318,546		300,967			284,352			1.2	%	11.1		%
	Leasing and other	268,930			261,046			253,330		248,439			237,114			3.0	%	13.4		%
	Total Loans, net of unearned income	$	15,661,032		$	15,560,185		$	15,392,067	$	15,127,205		$	14,857,562		0.6	%	5.4		%
Deposits, by type:
	Noninterest-bearing demand	$	4,246,168		$	4,454,456		$	4,494,897	$	4,387,517		$	4,301,727		(4.7	)%	(1.3		)%
	Interest-bearing demand	3,958,894			4,037,879			3,943,118		3,690,059			3,650,931			(2.0	)%	8.4		%
	Savings and money market accounts	4,494,445			4,752,337			4,603,155		4,315,495			4,194,216			(5.4	)%	7.2		%
	Total demand and savings	12,699,507			13,244,672			13,041,170		12,393,071			12,146,874			(4.1	)%	4.5		%
	Brokered deposits	74,026			105,135			89,767		—			—			(29.6	)%	100.0		%
	Time deposits	2,646,779			2,706,982			2,744,532		2,696,033			2,739,453			(2.2	)%	(3.4		)%
	Total Deposits	$	15,420,312		$	16,056,789		$	15,875,469	$	15,089,104		$	14,886,327		(4.0	)%	3.6		%
Short-term borrowings, by type:
	Customer repurchase agreements	$	175,292		$	179,948		$	176,415	$	199,657		$	199,403		(2.6	)%	(12.1		)%
	Customer short-term promissory notes	308,725			195,951			80,147		77,554			79,985			57.6	%	N/M
	Federal funds purchased	379,822			15,374			90,453		242,375			308,220			N/M		23.2		%
	Short-term FHLB advances and other borrowings	33,000			11			55,326		113,516			124,889			N/M		(73.6		)%
	Total Short-term Borrowings	$	896,839		$	391,284		$	402,341	$	633,102		$	712,497		129.2	%	25.9		%
N/M - Not meaningful



FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
		Three Months Ended
		Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
		2018			2017			2017			2017			2017
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period		$	176,084		$	174,749		$	174,998		$	172,647		$	171,325
	Loans charged off:
	Commercial - industrial, financial and agricultural	(4,005		)	(5,473		)	(2,714		)	(5,353		)	(5,527		)
	Consumer and home equity	(1,300		)	(1,071		)	(920		)	(1,022		)	(1,554		)
	Real estate - commercial mortgage	(267		)	(220		)	(483		)	(242		)	(1,224		)
	Real estate - residential mortgage	(162		)	(152		)	(195		)	(124		)	(216		)
	Real estate - construction	(158		)	—			(2,744		)	(774		)	(247		)
	Leasing and other	(505		)	(457		)	(739		)	(1,200		)	(639		)
	Total loans charged off	(6,397		)	(7,373		)	(7,795		)	(8,715		)	(9,407		)
Recoveries of loans previously charged off:
	Commercial - industrial, financial and agricultural	1,075			941			665			1,974			4,191
	Consumer and home equity	385			466			445			685			373
	Real estate - commercial mortgage	279			178			106			934			450
	Real estate - residential mortgage	107			186			219			151			230
	Real estate - construction	306			32			629			373			548
	Leasing and other	210			175			407			249			137
	Recoveries of loans previously charged off	2,362			1,978			2,471			4,366			5,929
Net loans recovered charged off		(4,035		)	(5,395		)	(5,324		)	(4,349		)	(3,478		)
Provision for credit losses		3,970			6,730			5,075			6,700			4,800
Balance at end of period		$	176,019		$	176,084		$	174,749		$	174,998		$	172,647
Net charge-offs to average loans (annualized)		0.10		%	0.14		%	0.14		%	0.11		%	0.09		%
NON-PERFORMING ASSETS:
	Non-accrual loans	$	122,966		$	124,749		$	123,345		$	122,600		$	117,264
	Loans 90 days past due and accruing	11,676			10,010			13,124			13,143			14,268
	Total non-performing loans	134,642			134,759			136,469			135,743			131,532
	Other real estate owned	10,744			9,823			10,542			11,432			11,906
	Total non-performing assets	$	145,386		$	144,582		$	147,011		$	147,175		$	143,438
NON-PERFORMING LOANS, BY TYPE:
	Commercial - industrial, financial and agricultural	$	54,915		$	54,309		$	54,209		$	51,320		$	43,826
	Real estate - commercial mortgage	36,183			35,446			34,650			32,576			36,713
	Real estate - residential mortgage	20,169			20,972			21,643			21,846			23,597
	Real estate - construction	10,931			12,197			13,415			16,564			13,550
	Consumer and home equity	12,272			11,803			12,472			13,156			13,408
	Leasing	172			32			80			281			438
	Total non-performing loans	$	134,642		$	134,759		$	136,469		$	135,743		$	131,532

TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:
	Real-estate - residential mortgage	$	25,602		$	26,016		$	26,193		$	26,368		$	27,033
	Real-estate - commercial mortgage	18,181			13,959			14,439			13,772			15,237
	Consumer and home equity	16,091			15,584			14,822			12,064			9,638
	Commercial - industrial, financial and agricultural	11,740			10,820			7,512			8,086			7,441
	Real estate - construction	—			—			169			1,475			273
	Total accruing TDRs	$	71,614		$	66,379		$	63,135		$	61,765		$	59,622
	Non-accrual TDRs (1)	24,897			29,051			28,742			29,373			27,220
	Total TDRs	$	96,511		$	95,430		$	91,877		$	91,138		$	86,842
(1) Included within non-accrual loans above.




DELINQUENCY RATES, BY TYPE:		Total Delinquency %
		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31
		2018		2017		2017		2017		2017

	Real estate - commercial mortgage	0.77	%	0.77	%	0.75	%	0.66	%	0.78	%
	Commercial - industrial, financial and agricultural	1.48	%	1.50	%	1.54	%	1.43	%	1.25	%
	Real estate - construction	1.12	%	1.32	%	1.50	%	1.82	%	1.99	%
	Real estate - residential mortgage	1.91	%	2.04	%	2.25	%	2.08	%	2.44	%
	Consumer, home equity, leasing and other	1.20	%	1.37	%	1.38	%	1.34	%	1.22	%
	Total	1.19	%	1.24	%	1.28	%	1.20	%	1.23	%



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
		Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
		2018			2017			2017			2017			2017
Shareholders' equity (tangible), per share
Shareholders' equity		$	2,235,493		$	2,229,857		$	2,225,786		$	2,191,770		$	2,154,683
Less: Goodwill and intangible assets		(531,556		)	(531,556		)	(531,556		)	(531,556		)	(531,556		)
Tangible shareholders' equity (numerator)		$	1,703,937		$	1,698,301		$	1,694,230		$	1,660,214		$	1,623,127

Shares outstanding, end of period (denominator)		175,404			175,170			175,057			174,740			174,343

Shareholders' equity (tangible), per share		$	9.71		$	9.70		$	9.68		$	9.50		$	9.31

Return on average shareholders' equity (tangible)
Net income (numerator)		$	49,480		$	34,001		$	48,905		$	45,467		$	43,380

Average shareholders' equity		$	2,224,615		$	2,237,031		$	2,215,389		$	2,181,189		$	2,140,547
Less: Average goodwill and intangible assets		(531,556		)	(531,556		)	(531,556		)	(531,556		)	(531,556		)
Average tangible shareholders' equity (denominator)		$	1,693,059		$	1,705,475		$	1,683,833		$	1,649,633		$	1,608,991

Return on average shareholders' equity (tangible), annualized		11.85		%	7.91		%	11.52		%	11.06		%	10.93		%

Tangible Common Equity to Tangible Assets (TCE Ratio)
Shareholders' equity		2,235,493			2,229,857			2,225,786			2,191,770			2,154,683
Less: Intangible assets		(531,556		)	(531,556		)	(531,556		)	(531,556		)	(531,556		)
Tangible shareholders' equity (numerator)		1,703,937			1,698,301			1,694,230			1,660,214			1,623,127

Total assets		19,948,941			20,036,905			20,062,860			19,647,435			19,178,576
Less: Intangible assets		(531,556		)	(531,556		)	(531,556		)	(531,556		)	(531,556		)
Total tangible assets (denominator)		19,417,385			19,505,349			19,531,304			19,115,879			18,647,020

Tangible Common Equity to Tangible Assets		8.78		%	8.71		%	8.67		%	8.68		%	8.70		%

Efficiency ratio
Non-interest expense		$	136,661		$	138,452		$	132,157		$	132,695		$	122,275
Less: Amortization on tax credit investments		(1,637		)	(3,376		)	(3,503		)	(3,151		)	(998		)
Non-interest expense (numerator)		$	135,024		$	135,076		$	128,654		$	129,544		$	121,277

Net interest income (fully taxable equivalent)		$	154,232		$	155,253		$	152,721		$	147,349		$	143,243
Plus: Total Non-interest income		45,875			56,956			51,974			52,371			46,673
Less: Investment securities gains		(19		)	(1,932		)	(4,597		)	(1,436		)	(1,106		)
Net interest income (denominator)		$	200,088		$	210,277		$	200,098		$	198,284		$	188,810

Efficiency ratio		67.48		%	64.24		%	64.30		%	65.33		%	64.23		%

Non-performing assets to tangible shareholders' equity and allowance for credit losses
Non-performing assets (numerator)		$	145,386		$	144,582		$	147,011		$	147,175		$	143,438

Tangible shareholders' equity		$	1,703,937		$	1,698,301		1,694,230			1,660,214			$	1,623,127
Plus: Allowance for credit losses		176,019			176,084			174,749			174,998			172,647
Tangible shareholders' equity and allowance for credit losses (denominator)		$	1,879,956		$	1,874,385		$	1,868,979		$	1,835,212		$	1,795,774

Non-performing assets to tangible shareholders' equity and allowance for credit losses		7.73		%	7.71		%	7.87		%	8.02		%	7.99		%



Pre-provision net revenue
Net interest income	$	151,318		$	149,413		$	146,809		$	141,563		$	137,579
Non-interest income	45,875			56,956			51,974			52,371			46,673
Less: Investment securities gains	(19		)	(1,932		)	(4,597		)	(1,436		)	(1,106		)
Total revenue	$	197,174		$	204,437		$	194,186		$	192,498		$	183,146

Non-interest expense	$	136,661		$	138,452		$	132,157		$	132,695		$	122,275
Less: Amortization on tax credit investments	(1,637		)	(3,376		)	(3,503		)	(3,151		)	(998		)
Total non-interest expense	$	135,024		$	135,076		$	128,654		$	129,544		$	121,277

Pre-provision net revenue	$	62,150		$	69,361		$	65,532		$	62,954		$	61,869





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


Net income and Net income per share, diluted
Net income				$	34,001
Plus: Re-measurement of net deferred tax assets				15,634
Net Income, adjusted (numerator)				$	49,635

Weighted average shares (diluted)				176,374

Net income per share, diluted				$	0.28

Return on average assets
Net income				$	34,001
Plus: Re-measurement of net deferred tax assets				15,634
Net Income, adjusted (numerator)				$	49,635

Average assets (denominator)				$	20,072,579

Return on average assets, annualized				0.98		%

Return on average shareholders' equity
Net income				$	34,001
Plus: Re-measurement of net deferred tax assets				15,634
Net Income, adjusted (numerator)				$	49,635

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

Return on average shareholders' equity, annualized				8.80		%

Return on average shareholders' equity (tangible)
Net Income, as reported				$	34,001
Plus: Re-measurement of net deferred tax assets				15,634
Net Income, adjusted (numerator)				$	49,635

Average shareholders' equity				$	2,237,031
Less: Average goodwill and intangible assets				(531,556		)
Average tangible shareholders' equity (denominator)				$	1,705,475

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

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FULTON FINANCIAL CORP - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED MAR 31, 2018 - April 17, 2018

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