FULTON FINANCIAL CORP - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED JUN 30, 2018

Attached files

file	filename
EX-99.3 - PRESENTATION MATERIALS TO BE DISCUSSED DURING THE CONFERENCE CALL AND WEBCAST - FULTON FINANCIAL CORP	q2ccslides.htm
EX-99.1 - PRESS RELEASE DATED JULY 17, 2018 - FULTON FINANCIAL CORP	exhibit9916-30x18.htm
8-K - 8-K - FULTON FINANCIAL CORP	a8-k6x30x18.htm



FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
dollars in thousands, except per-share data and percentages
	Three Months Ended
	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
	2018			2018			2017			2017			2017
Ending Balances
Investments	$	2,593,283		$	2,592,823		$	2,547,956		$	2,561,516		$	2,488,699
Loans, net of unearned income	15,792,969			15,696,284			15,768,247			15,486,899			15,346,617
Total assets	20,172,539			19,948,941			20,036,905			20,062,860			19,647,435
Deposits	15,599,799			15,477,103			15,797,532			16,141,780			15,357,361
Shareholders' equity	2,245,785			2,235,493			2,229,857			2,225,786			2,191,770

Average Balances
Investments	$	2,601,705		$	2,556,986		$	2,566,337		$	2,523,758		$	2,488,684
Loans, net of unearned income	15,768,377			15,661,032			15,560,185			15,392,067			15,127,205
Total assets	20,063,375			19,876,093			20,072,579			19,872,726			19,300,975
Deposits	15,517,424			15,420,312			16,056,789			15,875,469			15,089,104
Shareholders' equity	2,246,904			2,224,615			2,237,031			2,215,389			2,181,189

Income Statement
Net interest income	$	156,067		$	151,318		$	149,413		$	146,809		$	141,563
Provision for credit losses	33,117			3,970			6,730			5,075			6,700
Non-interest income	49,094			45,875			56,956			51,974			52,371
Non-interest expense	133,345			136,661			138,452			132,157			132,695
Income before taxes	38,699			56,562			61,187			61,551			54,539
Net income	35,197			49,480			34,001			48,905			45,467
Pre-provision net revenue⁽¹⁾	73,449			62,150			69,361			65,532			62,954

Per Share
Net income (basic)	$	0.20		$	0.28		$	0.19		$	0.28		$	0.26
Net income (diluted)	0.20			0.28			0.19			0.28			0.26
Cash dividends	0.12			0.12			0.14			0.11			0.11
Tangible common equity⁽¹⁾	9.75			9.71			9.70			9.68			9.50
Weighted average shares (basic)	175,764			175,303			175,132			174,991			174,597
Weighted average shares (diluted)	176,844			176,568			176,374			176,216			175,532

Asset Quality
Net charge-offs to average loans (annualized)	1.01%			0.10%			0.14		%	0.14		%	0.11		%
Non-performing loans to total loans	0.78%			0.86%			0.85		%	0.88		%	0.88		%
Non-performing assets to total assets	0.67%			0.73%			0.72		%	0.73		%	0.75		%
Allowance for credit losses to loans outstanding	1.07%			1.12%			1.12		%	1.13		%	1.14		%
Allowance for loan losses to loans outstanding	0.99		%	1.04		%	1.08		%	1.11		%	1.12		%
Allowance for credit losses to non-performing loans	136.77%			130.73%			130.67		%	128.05		%	128.92		%
Allowance for loan losses to non-performing loans	126.11%			121.22%			126.08		%	126.22		%	126.96		%
Non-performing assets to tangible shareholders' equity and allowance for credit losses⁽¹⁾	7.16%			7.73%			7.71		%	7.87		%	8.02		%
Total delinquency rate	1.18%			1.19%			1.24		%	1.28		%	1.20		%



Profitability
Return on average assets	0.70	%	1.01	%	0.67		%	0.98	%	0.94	%
Return on average shareholders' equity	6.28%		9.02%		6.03		%	8.76	%	8.36	%
Return on average shareholders' equity (tangible)⁽¹⁾	8.23%		11.85%		7.91		%	11.52	%	11.06	%
Net interest margin	3.39	%	3.35	%	3.29		%	3.27	%	3.29	%
Efficiency ratio⁽¹⁾	63.29%		67.48%		64.24		%	64.30	%	65.33	%

Capital Ratios
Tangible common equity ratio⁽¹⁾	8.73	%	8.78	%	8.71		%	8.67	%	8.68	%
Tier 1 leverage ratio⁽²⁾	9.20%		9.20%		8.93		%	8.97	%	9.06	%
Common equity Tier 1 capital ratio⁽²⁾	10.60	%	10.70	%	10.38		%	10.42	%	10.25	%
Tier 1 capital ratio⁽²⁾	10.60	%	10.70%		10.38		%	10.42	%	10.25	%
Total risk-based capital ratio⁽²⁾	13.20	%	13.30%		13.02		%	13.09	%	12.95	%

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 June 30, 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
		Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31		Jun 30
		2018			2018			2017			2017			2017			2018		2017
ASSETS
	Cash and due from banks	$	99,742		$	100,151		$	108,291		$	99,803		$	94,938		(0.4	)%	5.1	%
	Other interest-earning assets	364,802			267,806			354,566			645,796			392,842			36.2	%	(7.1	)%
	Loans held for sale	35,898			23,450			31,530			23,049			62,354			53.1	%	(42.4	)%
	Investment securities	2,593,283			2,592,823			2,547,956			2,561,516			2,488,699			—	%	4.2	%
	Loans, net of unearned income	15,792,969			15,696,284			15,768,247			15,486,899			15,346,617			0.6	%	2.9	%
	Allowance for loan losses	(156,050		)	(163,217		)	(169,910		)	(172,245		)	(172,342		)	(4.4	)%	(9.5	)%
	Net loans	15,636,919			15,533,067			15,598,337			15,314,654			15,174,275			0.7	%	3.0	%
	Premises and equipment	230,195			230,313			222,802			221,551			217,558			(0.1	)%	5.8	%
	Accrued interest receivable	55,208			53,060			52,910			50,082			47,603			4.0	%	16.0	%
	Goodwill and intangible assets	531,556			531,556			531,556			531,556			531,556			—	%	—	%
	Other assets	624,936			616,715			588,957			614,853			637,610			1.3	%	(2.0	)%
	Total Assets	$	20,172,539		$	19,948,941		$	20,036,905		$	20,062,860		$	19,647,435		1.1	%	2.7	%
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits	$	15,599,799		$	15,477,103		$	15,797,532		$	16,141,780		$	15,357,361		0.8	%	1.6	%
	Short-term borrowings	983,833			937,852			617,524			298,751			694,859			4.9	%	41.6	%
	Other liabilities	351,174			359,994			353,646			358,384			365,484			(2.5	)%	(3.9	)%
	FHLB advances and long-term debt	991,948			938,499			1,038,346			1,038,159			1,037,961			5.7	%	(4.4	)%
	Total Liabilities	17,926,754			17,713,448			17,807,048			17,837,074			17,455,665			1.2	%	2.7	%
	Shareholders' equity	2,245,785			2,235,493			2,229,857			2,225,786			2,191,770			0.5	%	2.5	%
	Total Liabilities and Shareholders' Equity	$	20,172,539		$	19,948,941		$	20,036,905		$	20,062,860		$	19,647,435		1.1	%	2.7	%

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
	Real estate - commercial mortgage	$	6,304,475		$	6,332,508		$	6,364,804		$	6,275,140		$	6,262,008		(0.4	)%	0.7	%
	Commercial - industrial, financial and agricultural	4,264,602			4,299,072			4,300,297			4,223,075			4,245,849			(0.8	)%	0.4	%
	Real estate - residential mortgage	2,094,530			1,976,524			1,954,711			1,887,907			1,784,712			6.0	%	17.4	%
	Real estate - home equity	1,491,395			1,514,241			1,559,719			1,567,473			1,579,739			(1.5	)%	(5.6	)%
	Real estate - construction	990,705			976,131			1,006,935			973,108			938,900			1.5	%	5.5	%
	Consumer	360,315			326,766			313,783			302,448			283,156			10.3	%	27.2	%
	Leasing and other	286,947			271,042			267,998			257,748			252,253			5.9	%	13.8	%
	Total Loans, net of unearned income	$	15,792,969		$	15,696,284		$	15,768,247		$	15,486,899		$	15,346,617		0.6	%	2.9	%
Deposits, by type:
	Noninterest-bearing demand	$	4,324,659		$	4,291,821		$	4,437,294		$	4,363,915		$	4,574,619		0.8	%	(5.5	)%
	Interest-bearing demand	3,854,680			3,984,423			4,018,107			4,119,419			3,650,204			(3.3	)%	5.6	%
	Savings and money market accounts	4,597,510			4,487,277			4,586,746			4,790,985			4,386,128			2.5	%	4.8	%
	Total demand and savings	12,776,849			12,763,521			13,042,147			13,274,319			12,610,951			0.1	%	1.3	%
	Brokered deposits	161,447			64,195			90,473			109,936			—			151.5	%	—	%
	Time deposits	2,661,503			2,649,387			2,664,912			2,757,525			2,746,410			0.5	%	(3.1	)%
	Total Deposits	$	15,599,799		$	15,477,103		$	15,797,532		$	16,141,780		$	15,357,361		0.8	%	1.6	%
Short-term borrowings, by type:
	Customer repurchase agreements	$	152,594		$	165,186		$	172,017		$	185,945		$	174,224		(7.6	)%	(12.4	)%
	Customer short-term promissory notes	303,239			342,666			225,507			106,994			74,366			(11.5	)%	N/M
	Short-term FHLB advances	185,000			35,000			—			—			240,000			N/M		(22.9	)%
	Federal funds purchased	343,000			395,000			220,000			5,812			206,269			(13.2	)%	66.3	%
	Total Short-term Borrowings	$	983,833		$	937,852		$	617,524		$	298,751		$	694,859		4.9	%	41.6	%


N/M - Not meaningful



FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands
		Three Months Ended										% Change from				Six Months Ended
		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31		Jun 30		Jun 30
		2018		2018		2017		2017		2017		2018		2017		2018		2017		% Change
Interest Income:
	Interest income	$	186,170	$	177,687	$	174,987	$	171,511	$	163,881	4.8	%	13.6	%	$	363,857	$	322,368	12.9	%
	Interest expense	30,103		26,369		25,574		24,702		22,318		14.2	%	34.9	%	56,472		43,226		30.6	%
	Net Interest Income	156,067		151,318		149,413		146,809		141,563		3.1	%	10.2	%	307,385		279,142		10.1	%
	Provision for credit losses	33,117		3,970		6,730		5,075		6,700		N/M		N/M		37,087		11,500		N/M
	Net Interest Income after Provision	122,950		147,348		142,683		141,734		134,863		(16.6	)%	(8.8	)%	270,298		267,642		1.0	%
Non-Interest Income:
Other service charges and fees:
	Merchant fees	4,920		4,115		4,308		4,398		4,531		19.6	%	8.6	%	9,035		8,138		11.0	%
	Debit card income	3,077		2,817		3,526		2,830		2,884		9.2	%	6.7	%	5,894		5,549		6.2	%
	Commercial loan interest rate swap fees	2,393		1,291		2,914		1,954		3,768		85.4	%	(36.5	)%	3,684		6,826		(46.0	)%
	Letter of credit fees	956		992		1,037		1,056		1,109		(3.6	)%	(13.8	)%	1,948		2,309		(15.6	)%
	Foreign exchange income	591		533		510		470		446		10.8	%	32.6	%	1,124		780		44.1	%
	Other	1,728		1,671		1,534		1,543		1,604		3.4	%	7.7	%	3,399		3,177		7.0	%
	Total	13,665		11,419		13,829		12,251		14,342		19.7	%	(4.7	)%	25,084		26,779		(6.3	)%
Service charges on deposit accounts:
	Overdraft fees	5,092		5,145		5,609		5,844		5,648		(1.0	)%	(9.8	)%	10,237		11,116		(7.9	)%
	Cash management fees	4,452		4,317		3,669		3,624		3,614		3.1	%	23.2	%	8,769		7,151		22.6	%
	Other	2,726		2,500		3,392		3,554		3,652		9.0	%	(25.4	)%	5,226		7,047		(25.8	)%
	Total	12,270		11,962		12,670		13,022		12,914		2.6	%	(5.0	)%	24,232		25,314		(4.3	)%
	Investment management and trust services	12,803		12,871		13,152		12,157		12,132		(0.5	)%	5.5	%	25,674		23,940		7.2	%
	Mortgage banking income	5,163		4,193		4,386		4,805		6,141		23.1	%	(15.9	)%	9,356		10,737		(12.9	)%
	Other:
	Credit card income	2,866		2,816		2,778		2,829		2,666		1.8	%	7.5	%	5,682		5,314		6.9	%
	Small business administration lending income	846		357		1,355		565		1,163		137.0	%	(27.3	)%	1,203		1,591		(24.4	)%
	Other income	1,477		2,238		6,854		1,748		1,577		(34.0	)%	(6.3	)%	3,715		2,827		31.4	%
	Total	5,189		5,411		10,987		5,142		5,406		(4.1	)%	(4.0	)%	10,600		9,732		8.9	%
	Non-Interest Income before Investment Securities Gains	49,090		45,856		55,024		47,377		50,935		7.1	%	(3.6	)%	94,946		96,502		(1.6	)%
	Investment securities gains	4		19		1,932		4,597		1,436		(78.9	)%	(99.7	)%	23		2,542		(99.1	)%
	Total Non-Interest Income	49,094		45,875		56,956		51,974		52,371		7.0	%	(6.3	)%	94,969		99,044		(4.1	)%
Non-Interest Expense:
	Salaries and employee benefits	74,919		75,768		73,504		72,894		74,496		(1.1	)%	0.6	%	150,687		143,732		4.8	%
	Net occupancy expense	12,760		13,632		12,549		12,180		12,316		(6.4	)%	3.6	%	26,392		24,979		5.7	%
	Data processing and software	10,453		10,473		10,401		10,301		9,054		(0.2	)%	15.5	%	20,926		18,033		16.0	%
	Other outside services	7,568		8,124		7,665		6,582		7,708		(6.8	)%	(1.8	)%	15,692		13,254		18.4	%
	Professional fees	2,372		4,816		3,632		3,388		2,931		(50.7	)%	(19.1	)%	7,188		5,668		26.8	%
	Equipment expense	3,434		3,534		3,244		3,298		3,034		(2.8	)%	13.2	%	6,968		6,393		9.0	%
	FDIC insurance expense	2,663		2,953		3,618		3,007		2,366		(9.8	)%	12.6	%	5,616		4,424		26.9	%
	Marketing	2,335		2,250		1,725		2,089		2,234		3.8	%	4.5	%	4,585		4,220		8.6	%
	Amortization of tax credit investments	1,637		1,637		3,376		3,503		3,151		—	%	(48.0	)%	3,274		4,149		(21.1	)%
	Other	15,204		13,474		18,738		14,915		15,405		12.8	%	(1.3	)%	28,678		30,118		(4.8	)%
	Total Non-Interest Expense	133,345		136,661		138,452		132,157		132,695		(2.4	)%	0.5	%	270,006		254,970		5.9	%
	Income Before Income Taxes	38,699		56,562		61,187		61,551		54,539		(31.6	)%	(29.0	)%	95,261		111,716		(14.7	)%
	Income tax expense	3,502		7,082		27,186		12,646		9,072		(50.6	)%	(61.4	)%	10,584		22,869		(53.7	)%
	Net Income	$	35,197	$	49,480	$	34,001	$	48,905	$	45,467	(28.9	)%	(22.6	)%	$	84,677	$	88,847	(4.7	)%

PER SHARE:
	Net income:
	Basic	$	0.20	$	0.28	$	0.19	$	0.28	$	0.26	(28.6	)%	(23.1	)%	$	0.48	$	0.51	(5.9	)%
	Diluted	0.20		0.28		0.19		0.28		0.26		(28.6	)%	(23.1	)%	0.48		0.51		(5.9	)%


	Weighted average shares (basic)	175,764		175,303		175,132		174,991		174,597		0.3	%	0.7	%	175,535		174,399		0.7	%
	Weighted average shares (diluted)	176,844		176,568		176,374		176,216		175,532		0.2	%	0.7	%	176,506		175,579		0.5	%



FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Three Months Ended
		June 30, 2018								March 31, 2018								June 30, 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	$	15,768,377		$	170,006		4.32%		$	15,661,032		$	162,262		4.19%		$	15,127,205		$	152,649		4.05%
	Taxable investment securities	2,262,789			13,885			2.45%		2,198,838			13,193			2.40%		2,090,120			11,473			2.20%
	Tax-exempt investment securities	408,715			3,713			3.63%		412,830			3,753			3.64%		404,680			4,394			4.34%
	Equity securities	—			—			—%		509			5			3.93%		10,759			148			5.52%
	Total Investment Securities	2,671,504			17,598			2.63%		2,612,177			16,951			2.60%		2,505,559			16,015			2.56%
	Loans held for sale	22,237			284			5.11%		20,015			216			4.31%		19,750			201			4.07%
	Other interest-earning assets	316,381			1,243			1.57%		302,783			1,172			1.55%		324,719			802			0.99%
	Total Interest-earning Assets	18,778,499			189,131			4.04%		18,596,007			180,601			3.93%		17,977,233			169,667			3.78%
Noninterest-earning assets:
	Cash and due from banks	100,811								105,733								103,078
	Premises and equipment	232,048								230,247								218,075
	Other assets	1,112,913								1,113,326								1,174,745
	Less: allowance for loan losses	(160,896		)						(169,220		)						(172,156		)
	Total Assets	$	20,063,375							$	19,876,093							$	19,300,975
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits	$	3,952,115		$	4,959		0.50%		$	3,958,894		$	4,004		0.41%		$	3,690,059		$	2,780		0.30%
	Savings deposits	4,538,083			5,545			0.49%		4,494,445			4,367			0.39%		4,315,495			2,710			0.25%
	Brokered deposits	85,242			396			1.87%		74,026			276			1.51%		—			—			—%
	Time deposits	2,660,410			8,385			1.26%		2,646,779			7,803			1.20%		2,696,033			7,394			1.10%
	Total Interest-bearing Deposits	11,235,850			19,285			0.69%		11,174,144			16,450			0.60%		10,701,587			12,884			0.48%
	Short-term borrowings	1,023,160			3,036			1.18%		896,839			2,041			0.91%		633,102			974			0.61%
	FHLB advances and long-term debt	945,177			7,783			3.30%		987,315			7,878			3.21%		1,070,845			8,460			3.16%
	Total Interest-bearing Liabilities	13,204,187			30,104			0.91%		13,058,298			26,369			0.82%		12,405,534			22,318			0.72%
Noninterest-bearing liabilities:
	Demand deposits	4,281,574								4,246,168								4,387,517
	Other	330,710								347,012								326,735
	Total Liabilities	17,816,471								17,651,478								17,119,786
	Shareholders' equity	2,246,904								2,224,615								2,181,189
	Total Liabilities and Shareholders' Equity	$	20,063,375							$	19,876,093							$	19,300,975
	Net interest income/net interest margin (fully taxable equivalent)				159,027			3.39%					154,232			3.35%					147,349			3.29%
	Tax equivalent adjustment				(2,960		)						(2,914		)						(5,786		)
	Net interest income				$	156,067							$	151,318							$	141,563

	(1) Three months ended June 30, 2018 and March 31, 2018 are 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 0.69%, 0.62% and 0.53% for the three months ended June 30, 2018, March 31, 2018 and June 30, 2017, 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
		2018			2018			2017		2017			2017			2018		2017
Loans, by type:
	Real estate - commercial mortgage	$	6,298,534		$	6,305,821		$	6,232,674	$	6,208,630		$	6,163,844		(0.1	)%	2.2		%
	Commercial - industrial, financial and agricultural	4,335,097			4,288,634			4,263,199		4,257,075			4,221,025			1.1	%	2.7		%
	Real estate - residential mortgage	2,026,161			1,958,505			1,926,067		1,841,559			1,707,929			3.5	%	18.6		%
	Real estate - home equity	1,502,936			1,538,974			1,560,713		1,569,898			1,587,680			(2.3	)%	(5.3		)%
	Real estate - construction	978,327			984,242			1,004,166		943,029			897,321			(0.6	)%	9.0		%
	Consumer	345,572			315,927			312,320		318,546			300,967			9.4	%	14.8		%
	Leasing and other	281,750			268,930			261,046		253,330			248,439			4.8	%	13.4		%
	Total Loans, net of unearned income	$	15,768,377		$	15,661,032		$	15,560,185	$	15,392,067		$	15,127,205		0.7	%	4.2		%
Deposits, by type:
	Noninterest-bearing demand	$	4,281,574		$	4,246,168		$	4,454,456	$	4,494,897		$	4,387,517		0.8	%	(2.4		)%
	Interest-bearing demand	3,952,115			3,958,894			4,037,879		3,943,118			3,690,059			(0.2	)%	7.1		%
	Savings and money market accounts	4,538,083			4,494,445			4,752,337		4,603,155			4,315,495			1.0	%	5.2		%
	Total demand and savings	12,771,772			12,699,507			13,244,672		13,041,170			12,393,071			0.6	%	3.1		%
	Brokered deposits	85,242			74,026			105,135		89,767			—			15.2	%	100.0		%
	Time deposits	2,660,410			2,646,779			2,706,982		2,744,532			2,696,033			0.5	%	(1.3		)%
	Total Deposits	$	15,517,424		$	15,420,312		$	16,056,789	$	15,875,469		$	15,089,104		0.6	%	2.8		%
Short-term borrowings, by type:
	Customer repurchase agreements	$	162,276		$	175,292		$	179,948	$	176,415		$	199,657		(7.4	)%	(18.7		)%
	Customer short-term promissory notes	316,049			308,725			195,951		80,147			77,554			2.4	%	N/M
	Federal funds purchased	398,297			379,822			15,374		90,453			242,375			4.9	%	64.3		%
	Short-term FHLB advances and other borrowings	146,538			33,000			11		55,326			113,516			N/M		29.1		%
	Total Short-term Borrowings	$	1,023,160		$	896,839		$	391,284	$	402,341		$	633,102		14.1	%	61.6		%
N/M - Not meaningful



FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Six Months Ended June 30
		2018								2017
		Average								Average
		Balance			Interest (1)			Yield/Rate		Balance			Interest (1)			Yield/Rate
ASSETS
Interest-earning assets:
	Loans, net of unearned income	$	15,715,001		$	332,268		4.26	%	$	14,993,129		$	299,299		4.02	%
	Taxable investment securities	2,230,991			27,078			2.43	%	2,117,733			23,387			2.21	%
	Tax-exempt investment securities	410,761			7,466			3.64	%	404,271			8,777			4.34	%
	Equity securities	253			5			8.30	%	11,247			324			5.81	%
	Total Investment Securities	2,642,005			34,549			2.62	%	2,533,251			32,488			2.57	%
	Loans held for sale	21,132			500			4.73	%	17,814			388			4.36	%
	Other interest-earning assets	309,620			2,415			1.56	%	318,542			1,644			1.03	%
	Total Interest-earning Assets	$	18,687,758		369,732			3.98	%	$	17,862,736		333,819			3.76	%
Noninterest-earning assets:
	Cash and due from banks	103,258								109,766
	Premises and equipment	231,152								217,974
	Other assets	1,113,118								1,162,254
	Less: allowance for loan losses	(165,035		)						(171,151		)
	Total Assets	$	19,970,251							$	19,181,579
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits	$	3,955,485		$	8,963		0.46	%	$	3,670,603		$	5,019		0.28	%
	Savings deposits	4,516,384			9,912			0.44	%	4,255,190			4,921			0.23	%
	Brokered deposits	79,665			672			1.70	%	—			—			—	%
	Time deposits	2,653,634			16,188			1.23	%	2,717,624			14,745			1.09	%
	Total Interest-bearing Deposits	11,205,168			35,735			0.64	%	10,643,417			24,685			0.47	%
	Short-term borrowings	960,348			5,077			1.06	%	672,580			1,829			0.54	%
	FHLB advances and long-term debt	966,129			15,661			3.25	%	1,030,667			16,712			3.25	%
	Total Interest-bearing Liabilities	13,131,645			56,473			0.87	%	12,346,664			43,226			0.70	%
Noninterest-bearing liabilities:
	Demand deposits	4,263,968								4,344,859
	Other	338,817								329,076
	Total Liabilities	17,734,430								17,020,599
	Shareholders' equity	2,235,821								2,160,980
	Total Liabilities and Shareholders' Equity	$	19,970,251							$	19,181,579
	Net interest income/net interest margin (fully taxable equivalent)				313,259			3.37	%				290,593			3.28	%
	Tax equivalent adjustment				(5,874		)						(11,451		)
	Net interest income				$	307,385							$	279,142
(1) Six months ended June 30, 2018 is 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 0.65% and 0.52% for the six months ended June 30, 2018 and 2017, respectively.
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
		Six Months Ended
		June 30
		2018			2017			% Change

Loans, by type:
	Real estate - commercial mortgage	$	6,302,157		$	6,101,836		3.3	%
	Commercial - industrial, financial and agricultural	4,311,994			4,213,094			2.3	%
	Real estate - residential mortgage	1,992,520			1,672,994			19.1	%
	Real estate - home equity	1,520,855			1,600,394			(5.0	)%
	Real estate - construction	981,269			869,299			12.9	%
	Consumer	330,831			292,704			13.0	%
	Leasing and other	275,375			242,808			13.4	%
	Total Loans, net of unearned income	$	15,715,001		$	14,993,129		4.8	%

Deposits, by type:
	Noninterest-bearing demand	$	4,263,968		$	4,344,859		(1.9	)%
	Interest-bearing demand	3,955,485			3,670,603			7.8	%
	Savings and money market accounts	4,516,384			4,255,190			6.1	%
	Total demand and savings	12,735,837			12,270,652			3.8	%
	Brokered deposits	79,665			—			100.0	%
	Time deposits	2,653,634			2,717,624			(2.4	)%
	Total Deposits	$	15,469,136		$	14,988,276		3.2	%

Short-term borrowings, by type:
	Customer repurchase agreements	$	169,300		$	199,945		(15.3	)%
	Customer short-term promissory notes	312,407			78,348			N/M
	Federal funds purchased	389,111			275,116			41.4	%
	Short-term FHLB advances and other borrowings	89,530			119,171			(24.9	)%
	Total Short-term Borrowings	$	960,348		$	672,580		42.8	%

N/M - Not meaningful



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
		2018			2018			2017			2017			2017			2018			2017
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period		$	176,019		$	176,084		$	174,749		$	174,998		$	172,647		$	176,084		$	171,325
	Loans charged off:
	Commercial - industrial, financial and agricultural	(38,632		)	(4,005		)	(5,473		)	(2,714		)	(5,353		)	(42,637		)	(10,880		)
	Consumer and home equity	(1,528		)	(1,300		)	(1,071		)	(920		)	(1,022		)	(2,828		)	(2,576		)
	Real estate - construction	(606		)	(158		)	—			(2,744		)	(774		)	(764		)	(1,021		)
	Real estate - residential mortgage	(483		)	(162		)	(152		)	(195		)	(124		)	(645		)	(340		)
	Real estate - commercial mortgage	(366		)	(267		)	(220		)	(483		)	(242		)	(633		)	(1,466		)
	Leasing and other	(545		)	(505		)	(457		)	(739		)	(1,200		)	(1,050		)	(1,839		)
	Total loans charged off	(42,160		)	(6,397		)	(7,373		)	(7,795		)	(8,715		)	(48,557		)	(18,122		)
Recoveries of loans previously charged off:
	Commercial - industrial, financial and agricultural	541			1,075			941			665			1,974			1,616			6,165
	Consumer and home equity	717			385			466			445			685			1,102			1,058
	Real estate - construction	444			306			32			629			373			750			921
	Real estate - residential mortgage	96			107			186			219			151			203			381
	Real estate - commercial mortgage	321			279			178			106			934			600			1,384
	Leasing and other	152			210			175			407			249			362			386
	Recoveries of loans previously charged off	2,271			2,362			1,978			2,471			4,366			4,633			10,295
Net loans recovered charged off		(39,889		)	(4,035		)	(5,395		)	(5,324		)	(4,349		)	(43,924		)	(7,827		)
Provision for credit losses		33,117			3,970			6,730			5,075			6,700			37,087			11,500
Balance at end of period		$	169,247		$	176,019		$	176,084		$	174,749		$	174,998		$	169,247		$	174,998
Net charge-offs to average loans (annualized)		1.01		%	0.10		%	0.14		%	0.14		%	0.11		%	0.56		%	0.10		%
NON-PERFORMING ASSETS:
	Non-accrual loans	$	111,116		$	122,966		$	124,749		$	123,345		$	122,600
	Loans 90 days past due and accruing	12,628			11,676			10,010			13,124			13,143
	Total non-performing loans	123,744			134,642			134,759			136,469			135,743
	Other real estate owned	11,181			10,744			9,823			10,542			11,432
	Total non-performing assets	$	134,925		$	145,386		$	144,582		$	147,011		$	147,175
NON-PERFORMING LOANS, BY TYPE:
	Commercial - industrial, financial and agricultural	$	44,045		$	54,915		$	54,309		$	54,209		$	51,320
	Real estate - commercial mortgage	39,278			36,183			35,446			34,650			32,576
	Real estate - residential mortgage	18,888			20,169			20,972			21,643			21,846
	Consumer and home equity	12,038			12,272			11,803			12,472			13,156
	Real estate - construction	9,319			10,931			12,197			13,415			16,564
	Leasing	176			172			32			80			281
	Total non-performing loans	$	123,744		$	134,642		$	134,759		$	136,469		$	135,743

TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:
	Real-estate - residential mortgage	$	25,055		$	25,602		$	26,016		$	26,193		$	26,368
	Real-estate - commercial mortgage	16,420			18,181			13,959			14,439			13,772
	Consumer and home equity	16,212			16,091			15,584			14,822			12,064
	Commercial - industrial, financial and agricultural	11,199			11,740			10,820			7,512			8,086
	Real estate - construction	—			—			—			169			1,475
	Total accruing TDRs	$	68,886		$	71,614		$	66,379		$	63,135		$	61,765
	Non-accrual TDRs (1)	24,743			24,897			29,051			28,742			29,373
	Total TDRs	$	93,629		$	96,511		$	95,430		$	91,877		$	91,138
(1) Included within non-accrual loans above.




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

	Real estate - commercial mortgage	0.77	%	0.77	%	0.77	%	0.75	%	0.66	%
	Commercial - industrial, financial and agricultural	1.44	%	1.48	%	1.50	%	1.54	%	1.43	%
	Real estate - construction	1.02	%	1.12	%	1.32	%	1.50	%	1.82	%
	Real estate - residential mortgage	1.90	%	1.91	%	2.04	%	2.25	%	2.08	%
	Consumer, home equity, leasing and other	1.22	%	1.20	%	1.37	%	1.38	%	1.34	%
	Total	1.18	%	1.19	%	1.24	%	1.28	%	1.20	%



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
		2018			2018			2017			2017			2017			2018			2017
Shareholders' equity (tangible), per share
Shareholders' equity		$	2,245,785		$	2,235,493		$	2,229,857		$	2,225,786		$	2,191,770
Less: Goodwill and intangible assets		(531,556		)	(531,556		)	(531,556		)	(531,556		)	(531,556		)
Tangible shareholders' equity (numerator)		$	1,714,229		$	1,703,937		$	1,698,301		$	1,694,230		$	1,660,214

Shares outstanding, end of period (denominator)		175,847			175,404			175,170			175,057			174,740

Shareholders' equity (tangible), per share		$	9.75		$	9.71		$	9.70		$	9.68		$	9.50

Return on average shareholders' equity (tangible)
Net income (numerator)		$	35,197		$	49,480		$	34,001		$	48,905		$	45,467		$	84,677		$	88,847

Average shareholders' equity		$	2,246,904		$	2,224,615		$	2,237,031		$	2,215,389		$	2,181,189		$	2,235,821		$	2,160,980
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)		$	1,715,348		$	1,693,059		$	1,705,475		$	1,683,833		$	1,649,633		$	1,704,265		$	1,629,424

Return on average shareholders' equity (tangible), annualized		8.23		%	11.85		%	7.91		%	11.52		%	11.06		%	10.02		%	11.00		%

Tangible Common Equity to Tangible Assets (TCE Ratio)
Shareholders' equity		$	2,245,785		$	2,235,493		$	2,229,857		$	2,225,786		$	2,191,770
Less: Intangible assets		(531,556		)	(531,556		)	(531,556		)	(531,556		)	(531,556		)
Tangible shareholders' equity (numerator)		$	1,714,229		$	1,703,937		$	1,698,301		$	1,694,230		$	1,660,214

Total assets		$	20,172,539		$	19,948,941		$	20,036,905		$	20,062,860		$	19,647,435
Less: Intangible assets		(531,556		)	(531,556		)	(531,556		)	(531,556		)	(531,556		)
Total tangible assets (denominator)		$	19,640,983		$	19,417,385		$	19,505,349		$	19,531,304		$	19,115,879

Tangible Common Equity to Tangible Assets		8.73		%	8.78		%	8.71		%	8.67		%	8.68		%

Efficiency ratio
Non-interest expense		$	133,345		$	136,661		$	138,452		$	132,157		$	132,695		$	270,006		$	254,970
Less: Amortization on tax credit investments		(1,637		)	(1,637		)	(3,376		)	(3,503		)	(3,151		)	(3,274		)	(4,149		)
Non-interest expense (numerator)		$	131,708		$	135,024		$	135,076		$	128,654		$	129,544		$	266,732		$	250,821

Net interest income (fully taxable equivalent)		$	159,027		$	154,232		$	155,253		$	152,721		$	147,349		$	313,259		$	290,593
Plus: Total Non-interest income		49,094			45,875			56,956			51,974			52,371			94,969			99,044
Less: Investment securities gains		(4		)	(19		)	(1,932		)	(4,597		)	(1,436		)	(23		)	(2,542		)
Net interest income (denominator)		$	208,117		$	200,088		$	210,277		$	200,098		$	198,284		$	408,205		$	387,095

Efficiency ratio		63.29		%	67.48		%	64.24		%	64.30		%	65.33		%	65.34		%	64.80		%

Non-performing assets to tangible shareholders' equity and allowance for credit losses
Non-performing assets (numerator)		$	134,925		$	145,386		$	144,582		$	147,011		$	147,175

Tangible shareholders' equity		$	1,714,229		$	1,703,937		1,698,301			1,694,230			$	1,660,214
Plus: Allowance for credit losses		169,247			176,019			176,084			174,749			174,998
Tangible shareholders' equity and allowance for credit losses (denominator)		$	1,883,476		$	1,879,956		$	1,874,385		$	1,868,979		$	1,835,212

Non-performing assets to tangible shareholders' equity and allowance for credit losses		7.16		%	7.73		%	7.71		%	7.87		%	8.02		%



Pre-provision net revenue
Net interest income	$	156,067		$	151,318		$	149,413		$	146,809		$	141,563		$	307,385		$	279,142
Non-interest income	49,094			45,875			56,956			51,974			52,371			94,969			99,044
Less: Investment securities gains	(4		)	(19		)	(1,932		)	(4,597		)	(1,436		)	(23		)	(2,542		)
Total revenue	$	205,157		$	197,174		$	204,437		$	194,186		$	192,498		$	402,331		$	375,644

Non-interest expense	$	133,345		$	136,661		$	138,452		$	132,157		$	132,695		$	270,006		$	254,970
Less: Amortization on tax credit investments	(1,637		)	(1,637		)	(3,376		)	(3,503		)	(3,151		)	(3,274		)	(4,149		)
Total non-interest expense	$	131,708		$	135,024		$	135,076		$	128,654		$	129,544		$	266,732		$	250,821

Pre-provision net revenue	$	73,449		$	62,150		$	69,361		$	65,532		$	62,954		$	135,599		$	124,823

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 Reports

FULTON FINANCIAL CORP - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED JUN 30, 2018 - July 17, 2018

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FULTON FINANCIAL CORP Reports