Fulton Financial Corporation Reports Fourth Quarter/Year-End 2017 Earnings

Fulton Financial reports 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)

Fulton Financial reports 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)(2)
  • 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

LANCASTER, Pa.--()--Fulton Financial Corporation (NASDAQ:FULT) (the “Corporation”) reported net income of $34.0 million, or $0.19 per diluted share, for the fourth quarter of 2017, and net income of $171.8 million, or $0.98 per diluted share, for 2017. In the fourth quarter of 2017, a $15.6 million, or $0.09 per diluted share, charge to income tax expense was recorded related to the re-measurement of net deferred tax assets resulting from the new 21% federal corporate income tax rate established by the Tax Cuts and Jobs Act enacted in December 2017.

"2017 was another solid year of performance for our organization as we generated positive operating leverage, and hit record levels in revenue and net income, excluding the tax charge,” said E. Phillip Wenger, Chairman and CEO. “I’m extremely proud of our team’s hard work this year, and continued focus on driving shareholder value. We look forward to 2018 and believe we are well-positioned for an even better year.”

Net Interest Income and Margin

Net interest income for the fourth quarter of 2017 increased $2.6 million, or 1.8%, from the third quarter of 2017. Net interest margin increased two basis points to 3.29% in the fourth quarter of 2017, from 3.27% in the third quarter of 2017. The average yield on interest-earning assets increased three basis points, while the average cost of interest-bearing liabilities increased one basis point. The three basis point increase in the average yield on interest-earning assets reflects a two basis point increase in loan yields and a six basis point increase in investment yields.

For the year ended December 31, 2017, net interest income increased $54.6 million, or 10.5%, from 2016. Net interest margin increased ten basis points to 3.28%. The average yield on interest-earning assets increased thirteen basis points and the average cost of interest-bearing liabilities increased four basis points from 2016.

Balance Sheet

Total average assets for the fourth quarter of 2017 were $20.1 billion, an increase of $199.9 million from the third quarter of 2017. Average loans, net of unearned income, increased $168.1 million, or 1.1%, in comparison to the third quarter of 2017. Average loans and yields, by type, for the fourth quarter of 2017 in comparison to the third quarter of 2017 are summarized in the following table:

 
  Three Months Ended   Increase (decrease)
December 31, 2017   September 30, 2017 in Balance
Balance   Yield (1) Balance   Yield (1) $   %
(dollars in thousands)
Average Loans, net of unearned income, by type:
Real estate - commercial mortgage $ 6,232,674 4.09 % $ 6,208,630 4.07 % $ 24,044 0.4 %
Commercial - industrial, financial and agricultural 4,263,199 4.05 % 4,257,075 4.08 % 6,124 0.1 %
Real estate - residential mortgage 1,926,067 3.83 % 1,841,559 3.83 % 84,508 4.6 %
Real estate - home equity 1,560,713 4.52 % 1,569,898 4.48 % (9,185 ) (0.6 %)
Real estate - construction 1,004,166 4.27 % 943,029 4.05 % 61,137 6.5 %
Consumer 312,320 4.75 % 318,546 4.94 % (6,226 ) (2.0 %)
Leasing and other   261,046 5.36 %   253,330 4.91 %   7,716   3.0 %
 
Total Average Loans, net of unearned income $ 15,560,185 4.14 % $ 15,392,067 4.12 % $ 168,118   1.1 %
 
(1) Presented on a fully-taxable equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.
 

For the year ended December 31, 2017, average loans increased $1.1 billion, or 7.8%, compared to 2016. Loans at December 31, 2017 increased $281.3 million, or 1.8%, compared to September 30, 2017 and $1.1 billion, or 7.3%, compared to December 31, 2016.

Total average liabilities increased $178.2 million, or 1.0%, from the third quarter of 2017, while average deposits increased $181.3 million, or 1.1%. Average deposits and interest rates, by type, for the fourth quarter of 2017 in comparison to the third quarter of 2017 are summarized in the following table:

 
  Three Months Ended   Increase (decrease)
December 31, 2017   September 30, 2017 in Balance
Balance   Rate Balance   Rate $   %
(dollars in thousands)
Average Deposits, by type:
Noninterest-bearing demand $ 4,454,456 - % $ 4,494,897 - % $ (40,441 ) (0.9 %)
Interest-bearing demand 4,037,879 0.40 % 3,943,118 0.39 % 94,761 2.4 %
Savings and money market deposits   4,752,337 0.38 %   4,603,155 0.34 %   149,182   3.2 %
Total average demand and savings 13,244,672 0.26 % 13,041,170 0.24 % 203,502 1.6 %
Brokered deposits 105,135 1.27 % 89,767 1.23 % 15,368 17.1 %
Time deposits   2,706,982 1.18 %   2,744,532 1.15 %   (37,550 ) (1.4 %)
 
Total Average Deposits $ 16,056,789 0.42 % $ 15,875,469 0.40 % $ 181,320   1.1 %
 

For the year ended December 31, 2017, average deposits increased $895.7 million, or 6.1%, compared to 2016. Deposits at December 31, 2017 decreased $344.2 million, or 2.1%, compared to September 30, 2017 and increased $784.7 million, or 5.2%, compared to December 31, 2016.

Asset Quality

Non-performing assets were $144.6 million, or 0.72% of total assets, at December 31, 2017, compared to $147.0 million, or 0.73% of total assets, at September 30, 2017 and $144.5 million, or 0.76% of total assets, at December 31, 2016.

Annualized net charge-offs for the quarters ended December 31, 2017 and September 30, 2017 were 0.14% of total average loans. The allowance for credit losses as a percentage of non-performing loans was 131% at December 31, 2017, as compared to 128% at September 30, 2017 and 130% at December 31, 2016.

During the fourth quarter of 2017, the Corporation recorded a $6.7 million provision for credit losses, compared to a $5.1 million provision for credit losses in the third quarter of 2017. For the year ended December 31, 2017, the provision for credit losses was $23.3 million, an increase of $10.1 million from 2016.

Non-interest Income

Non-interest income in the fourth quarter of 2017, excluding investment securities gains, increased $7.6 million, or 16.1%, in comparison to the third quarter of 2017. A $5.1 million net gain was recognized in the fourth quarter of 2017 upon the settlement of litigation. Other service charges and fees increased $1.6 million, or 12.9%, due primarily to increases in commercial loan interest rate swap fees and debit card income. Investment management and trust services income increased $1.0 million, or 8.2%. Also contributing to the increase in non-interest income were higher gains from the sales of Small Business Administration (SBA) loans. Slightly offsetting these increases was a seasonal decline in mortgage banking income.

For the year ended December 31, 2017, non-interest income, excluding investment securities gains, increased $11.3 million, or 6.0%, primarily due to the $5.1 million net gain recognized upon the settlement of litigation in the fourth quarter of 2017 and increases in investment management and trust services income, SBA income, debit and credit card income and merchant fees.

Gains on sales of investment securities for the fourth quarter of 2017 were $1.9 million, a decrease of $2.7 million in comparison to the third quarter of 2017. In the fourth quarter of 2017, the corporation continued to recognize gains on the sales of financial institution common stocks, which totaled $6.4 million. The Corporation also repositioned its investment portfolio through the sale of certain debt securities, which resulted in total pre-tax net losses of approximately $4.5 million that partially offset these gains. For the year ended December 31, 2017, gains on sales of investment securities increased $6.5 million.

Non-interest Expense

Non-interest expense increased $6.3 million, or 4.8%, in the fourth quarter of 2017, compared to the third quarter of 2017. Included in other expenses in the fourth quarter of 2017 was a $3.4 million write-off of certain accumulated capital expenditures related to in-process technology initiatives in commercial banking due to a strategic shift to an alternative solution. Additionally, in the fourth quarter of 2017, the Corporation incurred approximately $1.0 million of costs related to defining requirements for, and selecting, the alternative technology solution, which was recorded in other outside services. Other increases occurred in salaries and employee benefits, net occupancy expense, FDIC insurance expense, and other real estate owned and repossession expense included in other expense.

For the year ended December 31, 2017, non-interest expense increased $36.1 million, or 7.4%, compared to 2016. This increase was primarily due to the amortization of tax credit investments and increases in salaries and employee benefits, other outside services, state taxes, net occupancy expenses, software expenses and the aforementioned $3.4 million write-off.

Income Tax Expense

The effective income tax rate for the fourth quarter of 2017 was 44.4%, as compared to 20.5% for the third quarter of 2017. Excluding the $15.6 million charge related to the re-measurement of net deferred tax assets, the effective tax rate for the fourth quarter of 2017 would have been 18.9%. Based on the new corporate income tax rates effective January 1, 2018, the Corporation’s effective tax rate in 2018 and future years is expected to be substantially lower than in 2017 and in prior years.

The tax 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.

Additional information on Fulton Financial Corporation is available on the Internet at www.fult.com.

Safe Harbor Statement

This news release may contain forward-looking statements with respect to the 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. These 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.

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 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.

Non-GAAP Financial Measures

The Corporation uses certain non-GAAP financial measures in this earnings release. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this release.

 
(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 measure; see accompanying tables for reconciliation.

 
 
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
 
            % Change from
December 31
2017
  September 30
2017
  June 30
2017
  March 31
2017
  December 31
2016
  September 30
2017
  December 31
2016
 

ASSETS

 
Cash and due from banks $ 108,291 $ 99,803 $ 94,938 $ 93,844 $ 118,763 8.5 % -8.8 %
Other interest-earning assets 354,566 645,796 392,842 350,387 291,252 -45.1 % 21.7 %
Loans held for sale 31,530 23,049 62,354 24,783 28,697 36.8 % 9.9 %
Investment securities 2,547,956 2,561,516 2,488,699 2,506,017 2,559,227 -0.5 % -0.4 %
Loans, net of unearned income 15,768,247 15,486,899 15,346,617 14,963,177 14,699,272 1.8 % 7.3 %
Allowance for loan losses   (169,910 )     (172,245 )     (172,342 )     (170,076 )     (168,679 ) -1.4 % 0.7 %
Net loans 15,598,337 15,314,654 15,174,275 14,793,101 14,530,593 1.9 % 7.3 %
Premises and equipment 222,802 221,551 217,558 216,171 217,806 0.6 % 2.3 %
Accrued interest receivable 52,910 50,082 47,603 46,355 46,294 5.6 % 14.3 %
Goodwill and intangible assets 531,556 531,556 531,556 531,556 531,556 0.0 % 0.0 %
Other assets   588,957       614,853       637,610       616,362       620,059   -4.2 % -5.0 %
 
Total Assets $ 20,036,905     $ 20,062,860     $ 19,647,435     $ 19,178,576     $ 18,944,247   -0.1 % 5.8 %
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Deposits $ 15,797,532 $ 16,141,780 $ 15,357,361 $ 15,090,344 $ 15,012,864 -2.1 % 5.2 %
Short-term borrowings 617,524 298,751 694,859 453,317 541,317 106.7 % 14.1 %
Other liabilities 353,646 358,384 365,484 342,323 339,548 -1.3 % 4.2 %
FHLB advances and long-term debt   1,038,346       1,038,159       1,037,961       1,137,909       929,403   0.0 % 11.7 %
 
Total Liabilities 17,807,048 17,837,074 17,455,665 17,023,893 16,823,132 -0.2 % 5.8 %
 
Shareholders' equity   2,229,857       2,225,786       2,191,770       2,154,683       2,121,115   0.2 % 5.1 %
 
Total Liabilities and Shareholders' Equity $ 20,036,905     $ 20,062,860     $ 19,647,435     $ 19,178,576     $ 18,944,247   -0.1 % 5.8 %
 

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

 
Loans, by type:
Real estate - commercial mortgage $ 6,364,804 $ 6,275,140 $ 6,262,008 $ 6,118,533 $ 6,018,582 1.4 % 5.8 %
Commercial - industrial, financial and agricultural 4,300,297 4,223,075 4,245,849 4,167,809 4,087,486 1.8 % 5.2 %
Real estate - residential mortgage 1,954,711 1,887,907 1,784,712 1,665,142 1,601,994 3.5 % 22.0 %
Real estate - home equity 1,559,719 1,567,473 1,579,739 1,595,901 1,625,115 -0.5 % -4.0 %
Real estate - construction 1,006,935 973,108 938,900 882,983 843,649 3.5 % 19.4 %
Consumer 313,783 302,448 283,156 288,826 291,470 3.7 % 7.7 %
Leasing and other   267,998       257,748       252,253       243,983       230,976   4.0 % 16.0 %
 
Total Loans, net of unearned income $ 15,768,247     $ 15,486,899     $ 15,346,617     $ 14,963,177     $ 14,699,272   1.8 % 7.3 %
 
Deposits, by type:
Noninterest-bearing demand $ 4,437,294 $ 4,363,915 $ 4,574,619 $ 4,417,733 $ 4,376,137 1.7 % 1.4 %
Interest-bearing demand 4,018,107 4,119,419 3,650,204 3,702,663 3,703,712 -2.5 % 8.5 %
Savings and money market accounts   4,586,746       4,790,985       4,386,128       4,251,574       4,179,773   -4.3 % 9.7 %
Total demand and savings 13,042,147 13,274,319 12,610,951 12,371,970 12,259,622 -1.7 % 6.4 %
Brokered deposits 90,473 109,936 - - - -17.7 % 0.0 %
Time deposits   2,664,912       2,757,525       2,746,410       2,718,374       2,753,242   -3.4 % -3.2 %
 
Total Deposits $ 15,797,532     $ 16,141,780     $ 15,357,361     $ 15,090,344     $ 15,012,864   -2.1 % 5.2 %
 
Short-term borrowings, by type:
Customer repurchase agreements $ 172,017 $ 185,945 $ 174,224 $ 181,170 $ 195,734 -7.5 % -12.1 %
Customer short-term promissory notes 225,507 106,994 74,366 87,726 67,013 110.8 % N/M
Short-term FHLB advances - - 240,000 130,000 - 0.0 % 0.0 %
Federal funds purchased   220,000       5,812       206,269       54,421       278,570   N/M -21.0 %
 
Total Short-term Borrowings $ 617,524     $ 298,751     $ 694,859     $ 453,317     $ 541,317   106.7 % 14.1 %
 

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 Year Ended  
Dec 31   Sep 30   Jun 30   Mar 31   Dec 31   Sep 30   Dec 31 Dec 31
2017 2017 2017 2017 2016 2017 2016 2017   2016 % Change
 
Interest Income:
Interest income $ 174,987 $ 171,511 $ 163,881 $ 158,487 $ 153,012 2.0 % 14.4 % $ 668,866 $ 603,100 10.9 %
Interest expense   25,574     24,702     22,318     20,908     20,775   3.5 % 23.1 %   93,502     82,328   13.6 %
 
Net Interest Income 149,413 146,809 141,563 137,579 132,237 1.8 % 13.0 % 575,364 520,772 10.5 %
Provision for credit losses   6,730     5,075     6,700     4,800     5,000   32.6 % 34.6 %   23,305     13,182   76.8 %
 
Net Interest Income after Provision 142,683 141,734 134,863 132,779 127,237 0.7 % 12.1 % 552,059 507,590 8.8 %
 
Non-Interest Income:
Other service charges and fees 13,829 12,251 14,342 12,437 13,333 12.9 % 3.7 % 52,859 51,473 2.7 %
Investment management and trust services 13,152 12,157 12,132 11,808 11,610 8.2 % 13.3 % 49,249 45,270 8.8 %
Service charges on deposit accounts 12,670 13,022 12,914 12,400 12,814 (2.7 %) (1.1 %) 51,006 51,346 (0.7 %)
Mortgage banking income 4,386 4,805 6,141 4,596 6,959 (8.7 %) (37.0 %) 19,928 19,415 2.6 %
Other   10,987     5,142     5,406     4,326     6,514   113.7 % 68.7 %   25,861     20,124   28.5 %
Non-Interest Income before Investment Securities Gains 55,024 47,377 50,935 45,567 51,230 16.1 % 7.4 % 198,903 187,628 6.0 %
Investment securities gains   1,932     4,597     1,436     1,106     1,525   (58.0 %) 26.7 %   9,071     2,550   N/M
 
Total Non-Interest Income 56,956 51,974 52,371 46,673 52,755 9.6 % 8.0 % 207,974 190,178 9.4 %
 
Non-Interest Expense:

 

Salaries and employee benefits 73,504 72,894 74,496 69,236 73,256 0.8 % 0.3 % 290,130 283,353 2.4 %
Net occupancy expense 12,549 12,180 12,316 12,663 11,798 3.0 % 6.4 % 49,708 47,611 4.4 %
Data processing and software 10,401 10,301 9,054 8,979 9,442 1.0 % 10.2 % 38,735 36,919 4.9 %
Other outside services 7,665 6,582 7,708 5,546 6,536 16.5 % 17.3 % 27,501 23,883 15.1 %
Professional fees 3,632 3,388 2,931 2,737 2,783 7.2 % 30.5 % 12,688 11,004 15.3 %
FDIC insurance expense 3,618 3,007 2,366 2,058 2,067 20.3 % 75.0 % 11,049 9,767 13.1 %
Amortization of tax credit investments 3,376 3,503 3,151 998 - (3.6 %) 100.0 % 11,028 - 100.0 %
Equipment expense 3,244 3,298 3,034 3,359 3,408 (1.6 %) (4.8 %) 12,935 12,788 1.1 %
Marketing 1,725 2,089 2,234 1,986 1,730 (17.4 %) (0.3 %) 8,034 7,044 14.1 %
Other   18,738     14,915     15,405     14,713     16,601   25.6 % 12.9 %   63,771     57,150   11.6 %
 
Total Non-Interest Expense   138,452     132,157     132,695     122,275     127,621   4.8 % 8.5 %   525,579     489,519   7.4 %
 
Income before Income Taxes 61,187 61,551 54,539 57,177 52,371 (0.6 %) 16.8 % 234,454 208,249 12.6 %
Income tax expense   27,186     12,646     9,072     13,797     10,221   115.0 % 166.0 %   62,701     46,624   34.5 %
 
Net Income $ 34,001   $ 48,905   $ 45,467   $ 43,380   $ 42,150   (30.5 %) (19.3 %) $ 171,753   $ 161,625   6.3 %
 
 

PER SHARE:

 
Net income:
Basic $ 0.19 $ 0.28 $ 0.26 $ 0.25 $ 0.24 (32.1 %) (20.8 %) $ 0.98 $ 0.93 5.4 %
Diluted 0.19 0.28 0.26 0.25 0.24 (32.1 %) (20.8 %) 0.98 0.93 5.4 %
 
Cash dividends $ 0.14 $ 0.11 $ 0.11 $ 0.11 $ 0.12 27.3 % 16.7 % $ 0.47 $ 0.41 14.6 %
Shareholders' equity 12.74 12.71 12.54 12.36 12.19 0.2 % 4.5 % 12.74 12.19 4.5 %
Shareholders' equity (tangible) 9.70 9.68 9.50 9.31 9.13 0.2 % 6.2 % 9.70 9.13 6.2 %
 
Weighted average shares (basic) 175,132 174,991 174,597 174,150 173,554 0.1 % 0.9 % 174,721 173,325 0.8 %
Weighted average shares (diluted) 176,374 176,216 175,532 175,577 174,874 0.1 % 0.9 % 175,932 174,418 0.9 %
Shares outstanding, end of period 175,170 175,057 174,740 174,343 174,040 0.1 % 0.6 % 175,170 174,040 0.6 %
 

SELECTED FINANCIAL RATIOS:

 
Return on average assets 0.67 % 0.98 % 0.94 % 0.92 % 0.89 % 0.88 % 0.88 %
Return on average shareholders' equity 6.03 % 8.76 % 8.36 % 8.22 % 7.86 % 7.83 % 7.69 %
Return on average shareholders' equity (tangible) 7.91 % 11.52 % 11.06 % 10.93 % 10.47 % 10.33 % 10.30 %
Net interest margin 3.29 % 3.27 % 3.29 % 3.26 % 3.15 % 3.28 % 3.18 %
Efficiency ratio 64.24 % 64.30 % 65.33 % 64.23 % 67.60 % 64.52 % 67.16 %
 

Financial information, as adjusted (1):

 
Net Income $ 49,635 $ 187,387
Net income per share, diluted $ 0.28 $ 1.07
Return on average assets 0.98 % 0.96 %
Return on average shareholders' equity 8.80 % 8.54 %
Return on average shareholders' equity (tangible) 11.55 %

 

11.27 %
 
N/M - Not meaningful
(1) 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 “Non-GAAP Reconciliation” at the end of this document.
 
 
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
 
  Three Months Ended
December 31, 2017   September 30, 2017   December 31, 2016
Average
Balance
  Interest (1)   Yield/
Rate
Average
Balance
  Interest (1)   Yield/
Rate
Average
Balance
  Interest (1)   Yield/
Rate

ASSETS

 
Interest-earning assets:
Loans, net of unearned income $ 15,560,185 $ 162,050 4.14 % $ 15,392,067 $ 159,454 4.12 % $ 14,475,816 $ 141,826 3.90 %
Taxable investment securities 2,177,833 12,218 2.24 % 2,115,931 11,423 2.16 % 2,096,086 10,941 2.09 %
Tax-exempt investment securities 411,398 4,526 4.40 % 408,594 4,492 4.40 % 389,047 4,234 4.35 %
Equity securities   2,219     33   5.91 %   8,709     143   6.52 %   13,068     181   5.52 %
 
Total Investment Securities 2,591,450 16,777 2.59 % 2,533,234 16,058 2.53 % 2,498,201 15,356 2.46 %
 
Loans held for sale 21,874 245 4.48 % 22,456 243 4.33 % 24,411 199 3.26 %
Other interest-earning assets   571,981     1,755   1.22 %   590,676     1,667   1.12 %   411,369     966   0.94 %
 
Total Interest-earning Assets 18,745,490 180,827 3.83 % 18,538,433 177,422 3.80 % 17,409,797 158,347 3.62 %
 
Noninterest-earning assets:
Cash and due from banks 112,958 101,643 117,741
Premises and equipment 223,698 220,129 226,482
Other assets 1,163,686 1,186,622 1,171,031
Less: allowance for loan losses   (173,253 )   (174,101 )   (164,523 )
 
Total Assets $ 20,072,579   $ 19,872,726   $ 18,760,528  
 
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Interest-bearing liabilities:
Demand deposits $ 4,037,879 $ 4,111 0.40 % $ 3,943,118 $ 3,847 0.39 % $ 3,714,391 $ 1,927 0.21 %
Savings deposits 4,752,337 4,594 0.38 % 4,603,155 3,962 0.34 % 4,216,090 2,249 0.21 %
Brokered deposits 105,135 336 1.27 % 89,767 277 1.23 % - - 0.00 %
Time deposits   2,706,982     8,041   1.18 %   2,744,532     7,937   1.15 %   2,777,203     7,593   1.09 %
 
Total Interest-bearing Deposits 11,602,333 17,082 0.58 % 11,380,572 16,023 0.56 % 10,707,684 11,769 0.44 %
 
Short-term borrowings 391,284 372 0.38 % 402,341 578 0.57 % 308,094 116 0.15 %
FHLB advances and long-term debt   1,038,257     8,120   3.12 %   1,038,062     8,100   3.11 %   947,661     8,891   3.74 %
 
Total Interest-bearing Liabilities 13,031,874 25,574 0.78 % 12,820,975 24,701 0.77 % 11,963,439 20,776 0.69 %
 
Noninterest-bearing liabilities:
Demand deposits 4,454,456 4,494,897 4,331,894
Other   349,218     341,465     332,540  
 
Total Liabilities 17,835,548 17,657,337 16,627,873
 
Shareholders' equity   2,237,031     2,215,389     2,132,655  
 
Total Liabilities and Shareholders' Equity $ 20,072,579   $ 19,872,726   $ 18,760,528  
 
Net interest income/net interest margin (fully taxable equivalent) 155,253 3.29 % 152,721 3.27 % 137,571 3.15 %
Tax equivalent adjustment   (5,840 )   (5,912 )   (5,334 )
 
Net interest income $ 149,413   $ 146,809   $ 132,237  
 
   

(1) 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 0.58%, 0.57% and 0.51% for the three months ended December 31, 2017, September 30, 2017 and December 31, 2016, respectively.

 

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

             
Three Months Ended   % Change from
December 31
2017
September 30
2017
June 30
2017
March 31
2017
December 31
2016
September 30
2017
December 31
2016
 
Loans, by type:
Real estate - commercial mortgage $ 6,232,674 $ 6,208,630 $ 6,163,844 $ 6,039,140 $ 5,828,313 0.4 % 6.9 %
Commercial - industrial, financial and agricultural 4,263,199 4,257,075 4,221,025 4,205,072 4,081,498 0.1 % 4.5 %
Real estate - residential mortgage 1,926,067 1,841,559 1,707,929 1,637,669 1,572,895 4.6 % 22.5 %
Real estate - home equity 1,560,713 1,569,898 1,587,680 1,613,249 1,633,668 (0.6 %) (4.5 %)
Real estate - construction 1,004,166 943,029 897,321 840,966 845,528 6.5 % 18.8 %
Consumer 312,320 318,546 300,967 284,352 289,864 (2.0 %) 7.7 %
Leasing and other   261,046   253,330   248,439   237,114   224,050 3.0 % 16.5 %
 
Total Loans, net of unearned income $ 15,560,185 $ 15,392,067 $ 15,127,205 $ 14,857,562 $ 14,475,816 1.1 % 7.5 %
 
Deposits, by type:
Noninterest-bearing demand $ 4,454,456 $ 4,494,897 $ 4,387,517 $ 4,301,727 $ 4,331,894 (0.9 %) 2.8 %
Interest-bearing demand 4,037,879 3,943,118 3,690,059 3,650,931 3,714,391 2.4 % 8.7 %
Savings and money market accounts   4,752,337   4,603,155   4,315,495   4,194,216   4,216,090 3.2 % 12.7 %
Total demand and savings 13,244,672 13,041,170 12,393,071 12,146,874 12,262,375 1.6 % 8.0 %
Brokered deposits 105,135 89,767

-

- - 17.1 % -
Time deposits   2,706,982   2,744,532   2,696,033   2,739,453   2,777,203 (1.4 %) (2.5 %)
 
Total Deposits $ 16,056,789 $ 15,875,469 $ 15,089,104 $ 14,886,327 $ 15,039,578 1.1 % 6.8 %
 
Short-term borrowings, by type:
Customer repurchase agreements $ 179,948 $ 176,415 $ 199,657 $ 199,403 $ 200,126 2.0 % (10.1 %)
Customer short-term promissory notes 195,951 80,147 77,554 79,985 67,355 144.5 % 190.9 %
Federal funds purchased 15,374 90,453 242,375 308,220 40,613 (83.0 %) (62.1 %)
Short-term FHLB advances and other borrowings   11   55,326   113,516   124,889   - (100.0 %) -
 
Total Short-term Borrowings $ 391,284 $ 402,341 $ 633,102 $ 712,497 $ 308,094 (2.7 %) 27.0 %
 

N/M - Not meaningful

 
 
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
 
  Year Ended December 31
2017   2016
Average
Balance
  Interest (1)   Yield/Rate Average
Balance
  Interest (1)   Yield/Rate

ASSETS

 
Interest-earning assets:
Loans, net of unearned income $ 15,236,612 $ 620,803 4.07 % $ 14,128,064 $ 558,472 3.95 %
Taxable investment securities 2,132,426 47,029 2.21 % 2,128,497 44,975 2.11 %
Tax-exempt investment securities 407,157 17,794 4.37 % 327,098 14,865 4.54 %
Equity securities   8,331     500   6.00 %   13,969     780   5.58 %
 
Total Investment Securities 2,547,914 65,323 2.56 % 2,469,564 60,620 2.45 %
 
Loans held for sale 20,008 876 4.38 % 19,697 728 3.70 %
Other interest-earning assets   451,015     5,066   1.12 %   407,471     3,779   0.93 %
 
Total Interest-earning Assets 18,255,549 692,068 3.79 % 17,024,796 623,599 3.66 %
 
Noninterest-earning assets:
Cash and due from banks 108,523 104,772
Premises and equipment 219,960 227,047
Other assets 1,168,759 1,179,437
Less: allowance for loan losses   (172,424 )   (164,879 )
 
Total Assets $ 19,580,367   $ 18,371,173  
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Interest-bearing liabilities:
Demand deposits $ 3,831,865 $ 12,976 0.34 % $ 3,552,886 $ 6,654 0.19 %
Savings deposits 4,468,205 13,477 0.30 % 4,054,970 7,981 0.20 %
Brokered deposits 49,126 613 1.25 % - - 0.00 %
Time deposits   2,721,724     30,726   1.13 %   2,825,722     30,058   1.06 %
 
Total Interest-bearing Deposits 11,070,920 57,792 0.52 % 10,433,578 44,693 0.43 %
 
Short-term borrowings 533,564 2,779 0.52 % 395,727 855 0.21 %
FHLB advances and long-term debt   1,034,444     32,932   3.18 %   959,142     36,780   3.83 %
 
Total Interest-bearing Liabilities 12,638,928 93,503 0.74 % 11,788,447 82,328 0.70 %
 
Noninterest-bearing liabilities:
Demand deposits 4,410,301 4,151,967
Other   337,275     330,125  
 
Total Liabilities 17,386,504 16,270,539
 
Shareholders' equity   2,193,863     2,100,634  
 
Total Liabilities and Shareholders' Equity $ 19,580,367   $ 18,371,173  
 
Net interest income/net interest margin (fully taxable equivalent) 598,565 3.28 % 541,271 3.18 %
Tax equivalent adjustment   (23,201 )   (20,499 )
 
Net interest income $ 575,364   $ 520,772  
 
   

(1) 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 0.55% and 0.52% for the years ended December 31, 2017 and 2016, respectively.

 

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

     

Year Ended
December 31

2017 2016 % Change
 
Loans, by type:
Real estate - commercial mortgage $ 6,161,731 $ 5,636,696 9.3 %
Commercial - industrial, financial and agricultural 4,236,810 4,080,854 3.8 %
Real estate - residential mortgage 1,779,270 1,464,744 21.5 %
Real estate - home equity 1,582,705 1,651,112 (4.1 %)
Real estate - construction 921,879 824,182 11.9 %
Consumer 304,162 276,792 9.9 %
Leasing and other   250,055   193,684 29.1 %
 
Total Loans, net of unearned income $ 15,236,612 $ 14,128,064 7.8 %
 
Deposits, by type:
Noninterest-bearing demand $ 4,410,301 $ 4,151,967 6.2 %
Interest-bearing demand 3,831,865 3,552,886 7.9 %
Savings and money market accounts   4,468,205   4,054,970 10.2 %
Total demand and savings 12,710,371 11,759,823 8.1 %
Brokered deposits 49,126 - 100.0 %
Time deposits   2,721,724   2,825,722 (3.7 %)
 
Total Deposits $ 15,481,221 $ 14,585,545 6.1 %
 
Short-term borrowings, by type:
Customer repurchase agreements $ 188,769 $ 184,978 2.0 %
Customer short-term promissory notes 108,649 72,224 50.4 %
Federal funds purchased 163,102 127,604 27.8 %
Short-term FHLB advances and other borrowings   73,044   10,921 N/M
 
Total Short-term Borrowings $ 533,564 $ 395,727 34.8 %
 
N/M - Not meaningful
 
 
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
             
Three Months Ended Year Ended
Dec 31
2017
Sep 30
2017
Jun 30
2017
Mar 31
2017
Dec 31
2016
Dec 31
2017
Dec 31
2016

ALLOWANCE FOR CREDIT LOSSES:

 
Balance at beginning of period $ 174,749 $ 174,998 $ 172,647 $ 171,325 $ 165,169 $ 171,325 $ 171,412
 
Loans charged off:
Commercial - industrial, financial and agricultural (5,473 ) (2,714 ) (5,353 ) (5,527 ) (1,319 ) (19,067 ) (15,276 )
Consumer and home equity (1,071 ) (920 ) (1,022 ) (1,554 ) (2,156 ) (4,567 ) (7,712 )
Real estate - commercial mortgage (220 ) (483 ) (242 ) (1,224 ) (174 ) (2,169 ) (3,580 )
Real estate - residential mortgage (152 ) (195 ) (124 ) (216 ) (116 ) (687 ) (2,326 )
Real estate - construction 0 (2,744 ) (774 ) (247 ) 0 (3,765 ) (1,218 )
Leasing and other   (457 )   (739 )   (1,200 )   (639 )   (589 )   (3,035 )   (3,815 )
Total loans charged off (7,373 ) (7,795 ) (8,715 ) (9,407 ) (4,354 ) (33,290 ) (33,927 )
Recoveries of loans previously charged off:
Commercial - industrial, financial and agricultural 941 665 1,974 4,191 2,192 7,771 8,981
Consumer and home equity 466 445 685 373 580 1,969 2,466
Real estate - commercial mortgage 178 106 934 450 885 1,668 3,373
Real estate - residential mortgage 186 219 151 230 288 786 1,072
Real estate - construction 32 629 373 548 1,080 1,582 3,924
Leasing and other   175     407     249     137     485     968     842  
Recoveries of loans previously charged off   1,978     2,471     4,366     5,929     5,510     14,744     20,658  
Net loans (charged off) recovered (5,395 ) (5,324 ) (4,349 ) (3,478 ) 1,156 (18,546 ) (13,269 )
Provision for credit losses 6,730 5,075 6,700 4,800 5,000 23,305 13,182
             
Balance at end of period $ 176,084   $ 174,749   $ 174,998   $ 172,647   $ 171,325   $ 176,084   $ 171,325  
 
Net charge-offs (recoveries) to average loans (annualized)   0.14 %   0.14 %   0.11 %   0.09 %   (0.03 %)   0.12 %   0.09 %
 

NON-PERFORMING ASSETS:

 
Non-accrual loans $ 124,749 $ 123,345 $ 122,600 $ 117,264 $ 120,133
Loans 90 days past due and accruing   10,010     13,124     13,143     14,268     11,505  
Total non-performing loans 134,759 136,469 135,743 131,532 131,638
Other real estate owned   9,823     10,542     11,432     11,906     12,815  
 
Total non-performing assets $ 144,582   $ 147,011   $ 147,175   $ 143,438   $ 144,453  
 

NON-PERFORMING LOANS, BY TYPE:

 
Commercial - industrial, financial and agricultural $ 54,309 $ 54,209 $ 51,320 $ 43,826 $ 43,460
Real estate - commercial mortgage 35,446 34,650 32,576 36,713 39,319
Real estate - residential mortgage 20,972 21,643 21,846 23,597 23,655
Real estate - construction 12,197 13,415 16,564 13,550 9,842
Consumer and home equity 11,803 12,472 13,156 13,408 15,045
Leasing   32     80     281     438     317  
 
Total non-performing loans $ 134,759   $ 136,469   $ 135,743   $ 131,532   $ 131,638  
 
 

TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:

 
Real-estate - residential mortgage $ 26,016 $ 26,193 $ 26,368 $ 27,033 $ 27,617
Consumer and home equity 15,584 14,822 12,064 9,638 8,633
Real-estate - commercial mortgage 13,959 14,439 13,772 15,237 15,957
Commercial - industrial, financial and agricultural 10,820 7,512 8,086 7,441 6,627
Real estate - construction   -     169     1,475     273     726  
Total accruing TDRs 66,379 63,135 61,765 59,622 59,560
Non-accrual TDRs (1)   29,051     28,742     29,373     27,220     27,850  
Total TDRs $ 95,430   $ 91,877   $ 91,138   $ 86,842   $ 87,410  
 
(1) Included within non-accrual loans above.
Total Delinquency %

DELINQUENCY RATES, BY TYPE:

Dec 31
2017
Sep 30
2017
Jun 30
2017
Mar 31
2017
Dec 31
2016
 
 
Real estate - commercial mortgage 0.77 % 0.75 % 0.66 % 0.78 % 0.78 %
Commercial - industrial, financial and agricultural 1.50 % 1.54 % 1.43 % 1.25 % 1.31 %
Real estate - construction 1.32 % 1.50 % 1.82 % 1.99 % 1.29 %
Real estate - residential mortgage 2.04 % 2.25 % 2.08 % 2.44 % 2.74 %
Consumer, home equity, leasing and other 1.37 % 1.38 % 1.34 % 1.22 % 1.45 %
         
Total   1.24 %   1.28 %   1.20 %   1.23 %   1.27 %
 

ASSET QUALITY RATIOS:

 
Dec 31
2017
Sep 30
2017
Jun 30
2017
Mar 31
2017
Dec 31
2016
 
Non-accrual loans to total loans 0.79 % 0.80 % 0.80 % 0.78 % 0.82 %
Non-performing loans to total loans 0.85 % 0.88 % 0.88 % 0.88 % 0.90 %
Non-performing assets to total loans and OREO 0.92 % 0.95 % 0.96 % 0.96 % 0.98 %
Non-performing assets to total assets 0.72 % 0.73 % 0.75 % 0.75 % 0.76 %
Allowance for credit losses to loans outstanding 1.12 % 1.13 % 1.14 % 1.15 % 1.17 %
Allowance for credit losses to non-performing loans 130.67 % 128.05 % 128.92 % 131.26 % 130.15 %

Non-performing assets to tangible common shareholders' equity and allowance for credit losses

7.71 % 7.87 % 8.02 % 7.99 % 8.20 %
 
 
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 Year Ended
December 31
2017
September 30
2017
June 30
2017
March 31
2017
December 31
2016
December 31
2017
December 31
2016

Shareholders' equity (tangible), per share

Shareholders' equity $ 2,229,857 $ 2,225,786 $ 2,191,770 $ 2,154,683 $ 2,121,115
Less: Goodwill and intangible assets   (531,556 )   (531,556 )   (531,556 )   (531,556 )   (531,556 )
Tangible shareholders' equity (numerator) $ 1,698,301   $ 1,694,230   $ 1,660,214   $ 1,623,127   $ 1,589,559  
 
Shares outstanding, end of period (denominator)   175,170     175,057     174,740     174,343     174,040  
 
Shareholders' equity (tangible), per share $ 9.70   $ 9.68   $ 9.50   $ 9.31   $ 9.13  
 

Return on average shareholders' equity (tangible)

Net Income - Numerator $ 34,001   $ 48,905   $ 45,467   $ 43,380   $ 42,150   $ 171,753   $ 161,625  
 
Average shareholders' equity $ 2,237,031 $ 2,215,389 $ 2,181,189 $ 2,140,547 $ 2,132,655 $ 2,193,863 $ 2,100,634
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) $ 1,705,475   $ 1,683,833   $ 1,649,633   $ 1,608,991   $ 1,601,099   $ 1,662,307   $ 1,569,078  
 
Return on average shareholders' equity (tangible), annualized   7.91 %   11.52 %   11.06 %   10.93 %   10.47 %   10.33 %   10.30 %
 

Efficiency ratio

Non-interest expense $ 138,452 $ 132,157 $ 132,695 $ 122,275 $ 127,621 $ 525,579 $ 489,519
Less: Amortization of tax credit investments (1)   (3,376 )   (3,503 )   (3,151 )   (998 )   -     (11,028 )   -  
Non-interest expense - 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
Plus: Total Non-interest income 56,956 51,974 52,371 46,673 52,755 207,974 190,178
Less: Investment securities gains   (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 %
 

Non-performing assets to tangible shareholders' equity and allowance for credit losses

Non-performing assets (numerator) $ 144,582   $ 147,011   $ 147,175   $ 143,438   $ 144,453  
 
Tangible shareholders' equity $ 1,698,301 $ 1,694,230 $ 1,660,214 $ 1,623,127 $ 1,589,559
Plus: Allowance for credit losses   176,084     174,749     174,998     172,647     171,325  
Tangible shareholders' equity and allowance for credit losses (denominator) $ 1,874,385   $ 1,868,979   $ 1,835,212   $ 1,795,774   $ 1,760,884  
 
Non-performing assets to tangible shareholders' equity and allowance for credit losses   7.71 %   7.87 %   8.02 %   7.99 %   8.20 %
 

Pre-provision net revenue

Net interest income $ 149,413 $ 146,809 $ 141,563 $ 137,579 $ 132,237 $ 575,364 $ 520,772
Non-interest income 56,956 51,974 52,371 46,673 52,755 207,974 190,178
Less: Investment securities gains   (1,932 )   (4,597 )   (1,436 )   (1,106 )   (1,525 )   (9,071 )   (2,550 )
Total revenue $ 204,437   $ 194,186   $ 192,498   $ 183,146   $ 183,467   $ 774,267   $ 708,400  
 
Non-interest expense $ 138,452 $ 132,157 $ 132,695 $ 122,275 $ 127,621 $ 525,579 $ 489,519
Less: Amortization of tax credit investments (1)   (3,376 )   (3,503 )   (3,151 )   (998 )   -     (11,028 )   -  
Total non-interest expense $ 135,076   $ 128,654   $ 129,544   $ 121,277   $ 127,621   $ 514,551   $ 489,519  
 
Pre-provision net revenue $ 69,361   $ 65,532   $ 62,954   $ 61,869   $ 55,846   $ 259,716   $ 218,881  
 

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:

 
 

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 goodwill 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 %
 

Contacts

Fulton Financial Corporation
Media Contact:
Stacey Karshin, 717-291-2739
or
Investor Contact:
Jason Weber, 717-327-2394

Contacts

Fulton Financial Corporation
Media Contact:
Stacey Karshin, 717-291-2739
or
Investor Contact:
Jason Weber, 717-327-2394