EX-99.2 3 exhibit9923-31x17.htm SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED MAR 31, 2017 Exhibit


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
 
 
2017
 
2016
 
2016
 
2016
 
2016
 
2016
 
2016
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
93,844

 
$
118,763

 
$
86,497

 
$
84,647

 
$
83,479

 
(21.0
)%
 
12.4
 %
 
Other interest-earning assets
350,387

 
291,252

 
428,966

 
408,086

 
408,060

 
20.3
 %
 
(14.1
)%
 
Loans held for sale
24,783

 
28,697

 
27,836

 
34,330

 
19,719

 
(13.6
)%
 
25.7
 %
 
Investment securities
2,506,017

 
2,559,227

 
2,508,068

 
2,529,724

 
2,516,205

 
(2.1
)%
 
(0.4
)%
 
Loans, net of unearned income
14,963,177

 
14,699,272

 
14,391,238

 
14,155,159

 
13,870,701

 
1.8
 %
 
7.9
 %
 
Allowance for loan losses
(170,076
)
 
(168,679
)
 
(162,526
)
 
(162,546
)
 
(163,841
)
 
0.8
 %
 
3.8
 %
 
     Net loans
14,793,101

 
14,530,593

 
14,228,712

 
13,992,613

 
13,706,860

 
1.8
 %
 
7.9
 %
 
Premises and equipment
216,171

 
217,806

 
228,009

 
228,861

 
228,057

 
(0.8
)%
 
(5.2
)%
 
Accrued interest receivable
46,355

 
46,294

 
43,600

 
43,316

 
44,379

 
0.1
 %
 
4.5
 %
 
Goodwill and intangible assets
531,556

 
531,556

 
531,556

 
531,556

 
531,556

 
—
 %
 
—
 %
 
Other assets
616,362

 
620,059

 
617,818

 
626,902

 
583,939

 
(0.6
)%
 
5.6
 %
 
    Total Assets
$
19,178,576

 
$
18,944,247

 
$
18,701,062

 
$
18,480,035

 
$
18,122,254

 
1.2
 %
 
5.8
 %
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
$
15,090,344

 
$
15,012,864

 
$
14,952,479

 
$
14,292,564

 
$
14,404,280

 
0.5
 %
 
4.8
 %
 
Short-term borrowings
453,317

 
541,317

 
264,042

 
722,214

 
352,883

 
(16.3
)%
 
28.5
 %
 
Other liabilities
342,323

 
339,548

 
389,819

 
392,708

 
326,128

 
0.8
 %
 
5.0
 %
 
FHLB advances and long-term debt
1,137,909

 
929,403

 
965,286

 
965,552

 
965,654

 
22.4
 %
 
17.8
 %
 
    Total Liabilities
17,023,893

 
16,823,132

 
16,571,626

 
16,373,038

 
16,048,945

 
1.2
 %
 
6.1
 %
 
Shareholders' equity
2,154,683

 
2,121,115

 
2,129,436

 
2,106,997

 
2,073,309

 
1.6
 %
 
3.9
 %
 
    Total Liabilities and Shareholders' Equity
$
19,178,576

 
$
18,944,247

 
$
18,701,062

 
$
18,480,035

 
$
18,122,254

 
1.2
 %
 
5.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
 
 
 
 
 
 
 
 
 
 
 
 
Loans, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
6,118,533

 
$
6,018,582

 
$
5,818,915

 
$
5,635,347

 
$
5,558,108

 
1.7
 %
 
10.1
 %
 
Commercial - industrial, financial and agricultural
4,167,809

 
4,087,486

 
4,024,119

 
4,099,177

 
4,035,333

 
2.0
 %
 
3.3
 %
 
Real estate - residential mortgage
1,665,142

 
1,601,994

 
1,542,696

 
1,447,292

 
1,377,459

 
3.9
 %
 
20.9
 %
 
Real estate - home equity
1,595,901

 
1,625,115

 
1,640,421

 
1,647,319

 
1,659,481

 
(1.8
)%
 
(3.8
)%
 
Real estate - construction
882,983

 
843,649

 
861,634

 
853,699

 
810,872

 
4.7
 %
 
8.9
 %
 
Consumer
288,826

 
291,470

 
283,673

 
278,071

 
263,221

 
(0.9
)%
 
9.7
 %
 
Leasing and other
243,983

 
230,976

 
219,780

 
194,254

 
166,227

 
5.6
 %
 
46.8
 %
 
Total Loans, net of unearned income
$
14,963,177

 
$
14,699,272

 
$
14,391,238

 
$
14,155,159

 
$
13,870,701

 
1.8
 %
 
7.9
 %
Deposits, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand
$
4,417,733

 
$
4,376,137

 
$
4,210,099

 
$
4,125,375

 
$
4,134,861

 
1.0
 %
 
6.8
 %
 
Interest-bearing demand
3,702,663

 
3,703,712

 
3,703,048

 
3,358,536

 
3,430,206

 
—
 %
 
7.9
 %
 
Savings and money market accounts
4,251,574

 
4,179,773

 
4,235,015

 
3,986,008

 
3,972,199

 
1.7
 %
 
7.0
 %
 
Time deposits
2,718,374

 
2,753,242

 
2,804,317

 
2,822,645

 
2,867,014

 
(1.3
)%
 
(5.2
)%
 
Total Deposits
$
15,090,344

 
$
15,012,864

 
$
14,952,479

 
$
14,292,564

 
$
14,404,280

 
0.5
 %
 
4.8
 %
Short-term borrowings, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer repurchase agreements
$
181,170

 
$
195,734

 
$
189,727

 
$
168,521

 
$
162,431

 
(7.4
)%
 
11.5
 %
 
Customer short-term promissory notes
87,726

 
67,013

 
65,871

 
69,509

 
76,807

 
30.9
 %
 
14.2
 %
 
Short-term FHLB advances
130,000

 
—

 
—

 
35,000

 
81,000

 
N/M

 
60.5
 %
 
Federal funds purchased
54,421

 
278,570

 
8,444

 
449,184

 
32,645

 
(80.5
)%
 
66.7
 %
 
Total Short-term Borrowings
$
453,317

 
$
541,317

 
$
264,042

 
$
722,214

 
$
352,883

 
(16.3
)%
 
28.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N/M - Not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 




FULTON FINANCIAL CORPORATION
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
in thousands, except per-share data and percentages
 
 
 
 
 
Three Months Ended
 
 
 % Change from
 
 
 
 
 
Mar 31
 
Dec 31
 
Sep 30
 
Jun 30
 
Mar 31
 
 
Dec 31
 
Mar 31
 
 
 
 
 
2017
 
2016
 
2016
 
2016
 
2016
 
 
2016
 
2016
 
Interest Income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
 
$
158,487

 
$
153,012

 
$
151,468

 
$
149,309

 
$
149,311

 
 
3.6
 %
 
6.1
 %
 
 
Interest expense
 
 
20,908

 
20,775

 
20,903

 
20,393

 
20,257

 
 
0.6
 %
 
3.2
 %
 
 
    Net Interest Income
 
 
137,579

 
132,237

 
130,565

 
128,916

 
129,054

 
 
4.0
 %
 
6.6
 %
 
 
Provision for credit losses
 
 
4,800

 
5,000

 
4,141

 
2,511

 
1,530

 
 
(4.0
)%
 
213.7
 %
 
 
    Net Interest Income after Provision
 
 
132,779

 
127,237

 
126,424

 
126,405

 
127,524

 
 
4.4
 %
 
4.1
 %
 
Non-Interest Income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other service charges and fees
 
 
12,437

 
13,333

 
14,407

 
12,983

 
10,750

 
 
(6.7
)%
 
15.7
 %
 
 
Service charges on deposit accounts
 
 
12,400

 
12,814

 
13,078

 
12,896

 
12,558

 
 
(3.2
)%
 
(1.3
)%
 
 
Investment management and trust services
 
 
11,808

 
11,610

 
11,425

 
11,247

 
10,988

 
 
1.7
 %
 
7.5
 %
 
 
Mortgage banking income
 
 
4,596

 
6,959

 
4,529

 
3,897

 
4,030

 
 
(34.0
)%
 
14.0
 %
 
 
Other
 
 
4,326

 
6,514

 
4,708

 
5,038

 
3,864

 
 
(33.6
)%
 
12.0
 %
 
 
  Non-Interest Income before Investment Securities Gains
 
 
45,567

 
51,230

 
48,147


46,061

 
42,190

 
 
(11.1
)%
 
8.0
 %
 
 
Investment securities gains
 
 
1,106

 
1,525

 
2

 
76

 
947

 
 
(27.5
)%
 
16.8
 %
 
 
    Total Non-Interest Income
 
 
46,673

 
52,755

 
48,149

 
46,137

 
43,137

 
 
(11.5
)%
 
8.2
 %
 
Non-Interest Expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
 
69,236

 
73,256

 
70,696

 
70,029

 
69,372

 
 
(5.5
)%
 
(0.2
)%
 
 
Net occupancy expense
 
 
12,663

 
11,798

 
11,782

 
11,811

 
12,220

 
 
7.3
 %
 
3.6
 %
 
 
Other outside services
 
 
5,546

 
6,536

 
5,783

 
5,508

 
6,056

 
 
(15.1
)%
 
(8.4
)%
 
 
Software
 
 
4,693

 
4,912

 
4,117

 
3,953

 
3,921

 
 
(4.5
)%
 
19.7
 %
 
 
Data processing
 
 
4,286

 
4,530

 
4,610

 
5,476

 
5,400

 
 
(5.4
)%
 
(20.6
)%
 
 
Equipment expense
 
 
3,359

 
3,408

 
3,137

 
2,872

 
3,371

 
 
(1.4
)%
 
(0.4
)%
 
 
Professional fees
 
 
2,737

 
2,783

 
2,535

 
3,353

 
2,333

 
 
(1.7
)%
 
17.3
 %
 
 
FDIC insurance expense
 
 
2,058

 
2,067

 
1,791

 
2,960

 
2,949

 
 
(0.4
)%
 
(30.2
)%
 
 
Marketing
 
 
1,986

 
1,730

 
1,774

 
1,916

 
1,624

 
 
14.8
 %
 
22.3
 %
 
 
Other
 
 
15,711

 
16,601

 
13,623

 
13,759

 
13,167

 
 
(5.4
)%
 
19.3
 %
 
 
    Total Non-Interest Expense
 
 
122,275

 
127,621

 
119,848

 
121,637

 
120,413

 
 
(4.2
)%
 
1.5
 %
 
 
    Income Before Income Taxes
 
 
57,177

 
52,371

 
54,725

 
50,905

 
50,248

 
 
9.2
 %
 
13.8
 %
 
 
Income tax expense
 
 
13,797

 
10,221

 
13,257

 
11,155

 
11,991

 
 
35.0
 %
 
15.1
 %
 
 
    Net Income
 
 
$
43,380

 
$
42,150

 
$
41,468

 
$
39,750

 
$
38,257

 
 
2.9
 %
 
13.4
 %
 
PER SHARE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Basic
 
 
$
0.25

 
$
0.24

 
$
0.24

 
$
0.23

 
$
0.22

 
 
4.2
 %
 
13.6
 %
 
 
    Diluted
 
 
0.25

 
0.24

 
0.24

 
0.23

 
0.22

 
 
4.2
 %
 
13.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends
 
 
$
0.11

 
$
0.12

 
$
0.10

 
$
0.10

 
$
0.09

 
 
(8.3
)%
 
22.2
 %
 
 
Shareholders' equity
 
 
12.36

 
12.19

 
12.30

 
12.17

 
11.96

 
 
1.4
 %
 
3.3
 %
 
 
Shareholders' equity (tangible)
 
 
9.31

 
9.13

 
9.23

 
9.10

 
8.89

 
 
2.0
 %
 
4.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares (basic)
 
 
174,150

 
173,554

 
173,020

 
173,394

 
173,331

 
 
0.3
 %
 
0.5
 %
 
 
Weighted average shares (diluted)
 
 
175,577

 
174,874

 
174,064

 
174,318

 
174,416

 
 
0.4
 %
 
0.7
 %
 
 
Shares outstanding, end of period
 
 
174,343

 
174,040

 
173,144

 
173,139

 
173,393

 
 
0.2
 %
 
0.5
 %
 
SELECTED FINANCIAL RATIOS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
 
 
0.92
%
 
0.89
%
 
0.89
%
 
0.88
%
 
0.86
%
 
 
 
 
 
 
 
Return on average shareholders' equity
 
 
8.22
%
 
7.86
%
 
7.78
%
 
7.65
%
 
7.47
%
 
 
 
 
 
 
 
Return on average shareholders' equity (tangible)
 
 
10.93
%
 
10.47
%
 
10.38
%
 
10.26
%
 
10.07
%
 
 
 
 
 
 
 
Net interest margin
 
 
3.26
%
 
3.15
%
 
3.14
%
 
3.20
%
 
3.23
%
 
 
 
 
 
 
 
Efficiency ratio
 
 
64.76
%
 
67.60
%
 
65.16
%
 
67.59
%
 
68.33
%
 
 
 
 
 
 
N/M - Not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 







FULTON FINANCIAL CORPORATION
 
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
 
 
 
 Three Months Ended
 
 
March 31, 2017
 
December 31, 2016
 
March 31, 2016
 
 
 
Average
 
 
 
Yield/
 
Average
 
 
 
Yield/
 
Average
 
 
 
Yield/
 
 
 
Balance
 
Interest (1)
 
Rate
 
Balance
 
Interest (1)
 
Rate
 
Balance
 
Interest (1)
 
Rate
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income
$
14,857,562

 
$
146,650

 
4.00%
 
$
14,475,816

 
$
141,826

 
3.90%
 
$
13,853,420

 
$
137,895

 
4.00%
 
 
Taxable investment securities
2,145,656

 
11,914

 
2.19%
 
2,096,086

 
10,941

 
2.07%
 
2,180,593

 
12,003

 
2.20%
 
 
Tax-exempt investment securities
403,856

 
4,383

 
4.34%
 
389,047

 
4,234

 
4.35%
 
259,396

 
3,138

 
4.84%
 
 
Equity securities
11,740

 
176

 
6.08%
 
13,068

 
181

 
5.52%
 
14,386

 
218

 
6.10%
 
 
Total Investment Securities
2,561,252

 
16,473

 
2.57%
 
2,498,201

 
15,356

 
2.45%
 
2,454,375

 
15,359

 
2.50%
 
 
Loans held for sale
15,857

 
187

 
4.72%
 
24,411

 
199

 
3.26%
 
12,252

 
131

 
4.28%
 
 
Other interest-earning assets
312,295

 
842

 
1.08%
 
411,369

 
966

 
0.94%
 
358,562

 
898

 
1.00%
 
 
Total Interest-earning Assets
17,746,966

 
164,152

 
3.74%
 
17,409,797

 
158,347

 
3.62%
 
16,678,609

 
154,283

 
3.72%
 
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
116,529

 
 
 
 
 
117,741

 
 
 
 
 
98,449

 
 
 
 
 
 
Premises and equipment
217,875

 
 
 
 
 
226,482

 
 
 
 
 
226,284

 
 
 
 
 
 
Other assets
1,149,621

 
 
 
 
 
1,171,031

 
 
 
 
 
1,137,292

 
 
 
 
 
 
Less: allowance for loan losses
(170,134
)
 
 
 
 
 
(164,523
)
 
 
 
 
 
(167,372
)
 
 
 
 
 
 
Total Assets
$
19,060,857

 
 
 
 
 
$
18,760,528

 
 
 
 
 
$
17,973,262

 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
$
3,650,931

 
$
2,239

 
0.25%
 
$
3,714,391

 
$
1,927

 
0.21%
 
$
3,438,355

 
$
1,494

 
0.17%
 
 
Savings deposits
4,194,216

 
2,211

 
0.21%
 
4,216,090

 
2,249

 
0.21%
 
3,932,824

 
1,804

 
0.18%
 
 
Time deposits
2,739,453

 
7,352

 
1.09%
 
2,777,203

 
7,593

 
1.09%
 
2,867,651

 
7,429

 
1.04%
 
 
Total Interest-bearing Deposits
10,584,600

 
11,802

 
0.45%
 
10,707,684

 
11,769

 
0.44%
 
10,238,830

 
10,727

 
0.42%
 
 
Short-term borrowings
712,497

 
855

 
0.48%
 
308,094

 
116

 
0.15%
 
445,402

 
268

 
0.24%
 
 
FHLB advances and long-term debt
990,044

 
8,252

 
3.35%
 
947,661

 
8,891

 
3.74%
 
958,213

 
9,262

 
3.88%
 
 
Total Interest-bearing Liabilities
12,287,141

 
20,909

 
0.69%
 
11,963,439

 
20,776

 
0.69%
 
11,642,445

 
20,257

 
0.70%
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
4,301,727

 
 
 
 
 
4,331,894

 
 
 
 
 
3,967,887

 
 
 
 
 
 
Other
331,442

 
 
 
 
 
332,540

 
 
 
 
 
304,131

 
 
 
 
 
 
Total Liabilities
16,920,310

 
 
 
 
 
16,627,873

 
 
 
 
 
15,914,463

 
 
 
 
 
 
Shareholders' equity
2,140,547

 
 
 
 
 
2,132,655

 
 
 
 
 
2,058,799

 
 
 
 
 
 
Total Liabilities and Shareholders' Equity
$
19,060,857

 
 
 
 
 
$
18,760,528

 
 
 
 
 
$
17,973,262

 
 
 
 
 
 
Net interest income/net interest margin (fully taxable equivalent)
 
 
143,243

 
3.26%
 
 
 
137,571

 
3.15%
 
 
 
134,026

 
3.23%
 
 
Tax equivalent adjustment
 
 
(5,664
)
 
 
 
 
 
(5,334
)
 
 
 
 
 
(4,972
)
 
 
 
 
Net interest income
 
 
$
137,579

 
 
 
 
 
$
132,237

 
 
 
 
 
$
129,054

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
2017
 
2016
 
2016
 
2016
 
2016
 
2016
 
2016
 
 
 
 
 
Loans, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
6,039,140

 
$
5,828,313

 
$
5,670,888

 
$
5,557,680

 
$
5,487,421

 
3.6
 %
 
10.1
 %
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
4,205,070

 
4,081,498

 
4,066,275

 
4,080,524

 
4,095,268

 
3.0
 %
 
2.7
 %
 
 
 
 
 
 
Real estate - residential mortgage
1,637,669

 
1,572,895

 
1,503,209

 
1,399,851

 
1,381,409

 
4.1
 %
 
18.6
 %
 
 
 
 
 
 
Real estate - home equity
1,613,249

 
1,633,668

 
1,640,913

 
1,656,140

 
1,674,032

 
(1.2
)%
 
(3.6
)%
 
 
 
 
 
 
Real estate - construction
840,968

 
845,528

 
837,920

 
820,881

 
792,014

 
(0.5
)%
 
6.2
 %
 
 
 
 
 
 
Consumer
284,352

 
289,864

 
281,517

 
272,293

 
263,295

 
(1.9
)%
 
8.0
 %
 
 
 
 
 
 
Leasing and other
237,114

 
224,050

 
211,528

 
178,655

 
159,981

 
5.8
 %
 
48.2
 %
 
 
 
 
 
 
Total Loans, net of unearned income
$
14,857,562

 
$
14,475,816

 
$
14,212,250

 
$
13,966,024

 
$
13,853,420

 
2.6
 %
 
7.2
 %
 
 
 
 
 
Deposits, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand
$
4,301,727

 
$
4,331,894

 
$
4,227,639

 
$
4,077,642

 
$
3,967,887

 
(0.7
)%
 
8.4
 %
 
 
 
 
 
 
Interest-bearing demand
3,650,931

 
3,714,391

 
3,602,448

 
3,454,031

 
3,438,355

 
(1.7
)%
 
6.2
 %
 
 
 
 
 
 
Savings deposits
4,194,216

 
4,216,090

 
4,078,942

 
3,989,988

 
3,932,824

 
(0.5
)%
 
6.6
 %
 
 
 
 
 
 
Time deposits
2,739,453

 
2,777,203

 
2,814,258

 
2,844,434

 
2,867,651

 
(1.4
)%
 
(4.5
)%
 
 
 
 
 
 
Total Deposits
$
14,886,327

 
$
15,039,578

 
$
14,723,287

 
$
14,366,095

 
$
14,206,717

 
(1.0
)%
 
4.8
 %
 
 
 
 
 
Short-term borrowings, by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer repurchase agreements
$
199,403

 
$
200,126

 
$
187,588

 
$
180,595

 
$
171,408

 
(0.4
)%
 
16.3
 %
 
 
 
 
 
 
Customer short-term promissory notes
79,985

 
67,355

 
70,072

 
77,535

 
74,013

 
18.8
 %
 
8.1
 %
 
 
 
 
 
 
Federal funds purchased
308,220

 
40,613

 
148,546

 
138,012

 
183,970

 
658.9
 %
 
67.5
 %
 
 
 
 
 
 
Short-term FHLB advances and other borrowings
124,889

 
—

 
20,163

 
7,527

 
16,011

 
N/M

 
680.0
 %
 
 
 
 
 
 
Total Short-term Borrowings
$
712,497

 
$
308,094

 
$
426,369

 
$
403,669

 
$
445,402

 
131.3
 %
 
60.0
 %
 
 
 
 
 
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
 
 
 
2017
 
2016
 
2016
 
2016
 
2016
 
ALLOWANCE FOR CREDIT LOSSES:
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
171,325

 
$
165,169

 
$
165,108

 
$
166,065

 
$
171,412

 
 
Loans charged off:
 
 
 
 
 
 
 
 
 
 
 
    Commercial - industrial, financial and agricultural
(5,527
)
 
(1,319
)
 
(3,144
)
 
(4,625
)
 
(6,188
)
 
 
    Consumer and home equity
(1,554
)
 
(2,156
)
 
(1,394
)
 
(1,614
)
 
(2,548
)
 
 
    Real estate - commercial mortgage
(1,224
)
 
(174
)
 
(1,350
)
 
(1,474
)
 
(582
)
 
 
    Real estate - construction
(247
)
 
—

 
(150
)
 
(742
)
 
(326
)
 
 
    Real estate - residential mortgage
(216
)
 
(116
)
 
(802
)
 
(340
)
 
(1,068
)
 
 
    Leasing and other
(639
)
 
(589
)
 
(832
)
 
(1,951
)
 
(443
)
 
 
    Total loans charged off
(9,407
)
 
(4,354
)
 
(7,672
)
 
(10,746
)
 
(11,155
)
 
Recoveries of loans previously charged off:
 
 
 
 
 
 
 
 
 
 
 
    Commercial - industrial, financial and agricultural
4,191

 
2,192

 
1,539

 
2,931

 
2,319

 
 
    Consumer and home equity
373

 
580

 
463

 
889

 
534

 
 
    Real estate - commercial mortgage
450

 
885

 
296

 
1,367

 
825

 
 
    Real estate - construction
548

 
1,080

 
898

 
1,563

 
383

 
 
    Real estate - residential mortgage
230

 
288

 
228

 
420

 
136

 
 
    Leasing and other
137

 
485

 
168

 
108

 
81

 
 
    Recoveries of loans previously charged off
5,929

 
5,510

 
3,592

 
7,278

 
4,278

 
Net loans charged off
(3,478
)
 
1,156

 
(4,080
)
 
(3,468
)
 
(6,877
)
 
Provision for credit losses
4,800

 
5,000

 
4,141

 
2,511

 
1,530

 
Balance at end of period
$
172,647

 
$
171,325

 
$
165,169

 
$
165,108

 
$
166,065

 
Net charge-offs to average loans (annualized)
0.09
%
 
(0.03
)%
 
0.11
%
 
0.10
%
 
0.20
%
 
NON-PERFORMING ASSETS:
 
 
 
 
 
 
 
 
 
 
Non-accrual loans
$
117,264

 
$
120,133

 
$
124,017

 
$
111,742

 
$
122,170

 
 
Loans 90 days past due and accruing
14,268

 
11,505

 
14,095

 
15,992

 
15,013

 
 
    Total non-performing loans
131,532

 
131,638

 
138,112

 
127,734

 
137,183

 
 
Other real estate owned
11,906

 
12,815

 
11,981

 
11,918

 
10,946

 
 
Total non-performing assets
$
143,438

 
$
144,453

 
$
150,093

 
$
139,652

 
$
148,129

 
NON-PERFORMING LOANS, BY TYPE:
 
 
 
 
 
 
 
 
 
 
Commercial - industrial, financial and agricultural
$
43,826

 
$
43,460

 
$
47,330

 
$
38,902

 
$
39,140

 
 
Real estate - commercial mortgage
36,713

 
39,319

 
39,631

 
35,704

 
43,132

 
 
Real estate - residential mortgage
23,597

 
23,655

 
23,451

 
25,030

 
25,182

 
 
Real estate - construction
13,550

 
9,842

 
11,223

 
11,879

 
12,005

 
 
Consumer and home equity
13,408

 
15,045

 
16,426

 
16,061

 
16,210

 
 
Leasing
438

 
317

 
51

 
158

 
1,514

 
 
Total non-performing loans
$
131,532

 
$
131,638

 
$
138,112

 
$
127,734

 
$
137,183

 
 
 
 
 
 
 
 
 
 
 
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:
 
 
 
 
 
 
 
 
 
 
Real-estate - residential mortgage
$
27,033

 
$
27,617

 
$
26,854

 
$
27,324

 
$
27,565

 
 
Real-estate - commercial mortgage
15,237

 
15,957

 
16,085

 
17,808

 
17,427

 
 
Consumer and home equity
9,638

 
8,633

 
7,707

 
7,191

 
6,562

 
 
Commercial - industrial, financial and agricultural
7,441

 
6,627

 
7,488

 
5,756

 
5,650

 
 
Real estate - construction
273

 
726

 
843

 
3,086

 
3,092

 
 
Total accruing TDRs
$
59,622

 
$
59,560

 
$
58,977

 
$
61,165

 
$
60,296

 
 
Non-accrual TDRs (1)
27,220

 
27,850

 
27,904

 
24,887

 
27,277

 
 
Total TDRs
$
86,842

 
$
87,410

 
$
86,881

 
$
86,052

 
$
87,573

 
(1) Included within non-accrual loans above.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
 
 
 
 
 
 
 
 
 
DELINQUENCY RATES, BY TYPE:
Total Delinquency %
 
 
 
Mar 31
 
Dec 31
 
Sep 30
 
Jun 30
 
Mar 31
 
 
 
2017
 
2016
 
2016
 
2016
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
0.78
%
 
0.78
 %
 
0.87
%
 
0.81
%
 
0.93
%
 
 
Commercial - industrial, financial and agricultural
1.25
%
 
1.31
 %
 
1.48
%
 
1.25
%
 
1.46
%
 
 
Real estate - construction
1.99
%
 
1.29
 %
 
1.61
%
 
1.93
%
 
2.00
%
 
 
Real estate - residential mortgage
2.44
%
 
2.74
 %
 
2.67
%
 
2.70
%
 
3.10
%
 
 
Consumer, home equity, leasing and other
1.22
%
 
1.45
 %
 
1.53
%
 
1.47
%
 
1.48
%
 
 
Total
1.23
%
 
1.27
 %
 
1.38
%
 
1.30
%
 
1.44
%
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSET QUALITY RATIOS:
 
 
 
 
 
 
 
 
 
 
 
Mar 31
 
Dec 31
 
Sep 30
 
Jun 30
 
Mar 31
 
 
 
2017
 
2016
 
2016
 
2016
 
2016
 
 
Non-accrual loans to total loans
0.78
%
 
0.82
 %
 
0.86
%
 
0.79
%
 
0.88
%
 
 
Non-performing loans to total loans
0.88
%
 
0.90
 %
 
0.96
%
 
0.90
%
 
0.99
%
 
 
Non-performing assets to total loans and OREO
0.96
%
 
0.98
 %
 
1.04
%
 
0.99
%
 
1.07
%
 
 
Non-performing assets to total assets
0.75
%
 
0.76
 %
 
0.80
%
 
0.76
%
 
0.82
%
 
 
Allowance for credit losses to loans outstanding
1.15
%
 
1.17
 %
 
1.15
%
 
1.17
%
 
1.20
%
 
 
Allowance for credit losses to non-performing loans
131.26
%
 
130.15
 %
 
119.59
%
 
129.26
%
 
121.05
%
 
 
Non-performing assets to tangible common shareholders' equity and allowance for credit losses
7.99
%
 
8.20
 %
 
8.51
%
 
8.02
%
 
8.67
%
 





FULTON FINANCIAL CORPORATION
 
RECONCILIATION OF GAAP TO 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
 
 
 
 
 
 
 
 
2017
 
2016
 
2016
 
2016
 
2016
 
Shareholders' equity (tangible), per share
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders' equity
 
 
$
2,154,683

 
$
2,121,115

 
$
2,129,436

 
$
2,106,997

 
$
2,073,309

 
Less: Goodwill and intangible assets
 
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
Tangible shareholders' equity (numerator)
 
 
$
1,623,127

 
$
1,589,559

 
$
1,597,880

 
$
1,575,441

 
$
1,541,753

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares outstanding, end of period (denominator)
 
 
174,343

 
174,040

 
173,144

 
173,139

 
173,393

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders' equity (tangible), per share
 
 
$
9.31

 
$
9.13

 
$
9.23

 
$
9.10

 
$
8.89

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average shareholders' equity (tangible)
 
 
 
 
 
 
 
Net income - Numerator
 
$
43,380

 
$
42,150

 
$
41,468

 
$
39,750

 
$
38,257

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average shareholders' equity
 
 
$
2,140,547

 
$
2,132,655

 
$
2,120,596

 
$
2,089,915

 
$
2,058,799

 
Less: Average goodwill and intangible assets
 
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
(531,556
)
 
Average tangible shareholders' equity (denominator)
 
$
1,608,991

 
$
1,601,099

 
$
1,589,040

 
$
1,558,359

 
$
1,527,243

 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average shareholders' equity (tangible), annualized
 
10.93
%
 
10.47
%
 
10.38
%
 
10.26
%
 
10.07
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Efficiency ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest expense - Numerator
 
 
$
122,275

 
$
127,621

 
$
119,848

 
$
121,637

 
$
120,413

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income (fully taxable equivalent)
 
 
$
143,243

 
$
137,571

 
$
135,784

 
$
133,890

 
$
134,026

 
Plus: Total Non-interest income
 
 
46,673

 
52,755

 
48,149

 
46,137

 
43,137

 
Less: Investment securities gains
 
 
(1,106
)
 
(1,525
)
 
(2
)
 
(76
)
 
(947
)
 
Denominator
 
 
$
188,810

 
$
188,801

 
$
183,931

 
$
179,951

 
$
176,216

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Efficiency ratio
 
 
64.76
%
 
67.60
%
 
65.16
%
 
67.59
%
 
68.33
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-performing assets to tangible shareholders' equity and allowance for credit losses
 
Non-performing assets (numerator)
 
 
$
143,438

 
$
144,453

 
$
150,093

 
$
139,652

 
$
148,129

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible shareholders' equity
 
 
$
1,623,127

 
$
1,589,559

 
1,597,880

 
1,575,441

 
$
1,541,753

 
Plus: Allowance for credit losses
 
 
172,647

 
171,325

 
165,169

 
165,108

 
166,065

 
Tangible shareholders' equity and allowance for credit losses (denominator)
$
1,795,774

 
$
1,760,884

 
$
1,763,049

 
$
1,740,549

 
$
1,707,818

 
 
 
 
 
 
 
 
 
 
 
 
Non-performing assets to tangible shareholders' equity and allowance for credit losses
7.99
%
 
8.20
%
 
8.51
%
 
8.02
%
 
8.67
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-provision net revenue
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
 
 
$
137,579

 
$
132,237

 
$
130,565

 
$
128,916

 
$
129,054

 
Non-interest income
 
 
 
46,673

 
52,755

 
48,149

 
46,137

 
43,137

 
Less: Investment securities gains
 
 
 
(1,106
)
 
(1,525
)
 
(2
)
 
(76
)
 
(947
)
 
Total revenue
 
 
 
 
$
183,146

 
$
183,467

 
$
178,712

 
$
174,977

 
$
171,244

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total non-interest expense
 
 
 
$
122,275

 
$
127,621

 
$
119,848

 
$
121,637

 
$
120,413

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-provision net revenue
 
 
$
60,871

 
$
55,846

 
$
58,864

 
$
53,340

 
$
50,831