Fulton Financial Reports Fourth Quarter and 2018 Results

LANCASTER, Pa.--()--Fulton Financial Corporation (NASDAQ:FULT) (the “Corporation”) reported net income of $58.1 million, or $0.33 per diluted share, for the fourth quarter of 2018, and net income of $208.4 million, or $1.18 per diluted share, for 2018.

"Overall, 2018 was another good year for Fulton as we continued to execute on our growth strategies and benefited from multiple interest rate hikes from the Federal Reserve which translated into record levels of revenue and earnings,” said E. Philip 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 2019 and believe we are well-positioned for an even better year.”

Net Interest Income and Margin

Net interest income for the fourth quarter of 2018 increased $2.8 million, or 1.8%, from the third quarter of 2018 and net interest margin increased two basis points, to 3.44%. The average yield on interest-earning assets and the average cost of interest-bearing liabilities each increased nine basis points. The nine basis point increase in the average yield on interest-earning assets was primarily due to a ten basis point increase in loan yields. The nine basis point increase in the average cost of interest-bearing liabilities reflected an 11 basis point increase in the cost of interest-bearing deposits.

For the year ended December 31, 2018, net interest income increased $55.1 million, or 9.6%, from 2017. Net interest margin increased 12 basis points, to 3.40%. The average yield on interest-earning assets increased 29 basis points and the average cost of interest-bearing liabilities increased 22 basis points from 2017.

Balance Sheet

Total average assets for the fourth quarter of 2018 were $20.5 billion, an increase of $238.9 million from the third quarter of 2018. Average loans, net of unearned income, increased $103.5 million, or 0.7%, in comparison to the third quarter of 2018. Average loans and yields, by type, for the fourth quarter of 2018 in comparison to the third quarter of 2018 are summarized in the following table:

    Three Months Ended    
December 31, 2018   September 30, 2018 Growth
Balance   Yield (1) Balance   Yield (1) $ %

 

(dollars in thousands)

Average Loans, net of unearned income, by type:
Real estate - commercial mortgage $ 6,343,024 4.57 % $ 6,309,663 4.46 % $ 33,361 0.5 %
Commercial - industrial, financial and agricultural 4,329,937 4.51 % 4,304,320 4.36 % 25,617 0.6 %
Real estate - residential mortgage 2,209,993 4.01 % 2,142,977 3.96 % 67,016 3.1 %
Real estate - home equity 1,459,647 5.19 % 1,474,011 4.99 % (14,364 ) (1.0 %)
Real estate - construction 931,724 4.63 % 969,575 4.58 % (37,851 ) (3.9 %)
Consumer 406,436 4.57 % 375,656 4.50 % 30,780 8.2 %
Leasing 274,134 4.63 % 276,456 4.66 % (2,322 ) (0.8 %)
Other   10,742 N/A     9,485 N/A     1,257   13.3 %
Total Average Loans, net of unearned income $ 15,965,637 4.54 % $ 15,862,143 4.44 % $ 103,494   0.7 %
 
(1) Presented on a fully-taxable equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
N/A - Not applicable

For the year ended December 31, 2018, average loans increased $578.7 million, or 3.8%, compared to 2017. Ending loans at December 31, 2018 increased $240.7 million, or 1.5%, compared to September 30, 2018 and increased $397.6 million, or 2.5%, compared to December 31, 2017.

Total average liabilities increased $226.3 million, or 1.3%, from the third quarter of 2018, while average deposits increased $445.8 million, or 2.8%. Average deposits and interest rates, by type, for the fourth quarter of 2018 in comparison to the third quarter of 2018 are summarized in the following table:

    Three Months Ended    
December 31, 2018   September 30, 2018 Growth
Balance   Rate Balance   Rate $ %
(dollars in thousands)
Average Deposits, by type:
Noninterest-bearing demand $ 4,321,776 - % $ 4,298,020 - % $ 23,756 0.6 %
Interest-bearing demand 4,225,157 0.70 % 4,116,051 0.61 % 109,106 2.7 %
Savings and money market deposits   4,979,712 0.78 %   4,718,148 0.64 %   261,564 5.5 %
Total average demand and savings 13,526,645 0.50 % 13,132,219 0.42 % 394,426 3.0 %
Brokered deposits 164,280 2.34 % 162,467 2.05 % 1,813 1.1 %
Time deposits   2,722,141 1.46 %   2,672,548 1.34 %   49,593 1.9 %
 
Total Average Deposits $ 16,413,066 0.68 % $ 15,967,234 0.59 % $ 445,832 2.8 %

For the year ended December 31, 2018, average deposits increased $351.4 million, or 2.3%, compared to 2017. Ending deposits at December 31, 2018 increased $127.1 million, or 0.8%, compared to September 30, 2018 and increased $578.6 million, or 3.7%, compared to December 31, 2017.

Asset Quality

Non-performing assets were $150.2 million, or 0.73% of total assets, at December 31, 2018, compared to $130.8 million, or 0.64% of total assets, at September 30, 2018 and $144.6 million, or 0.72% of total assets, at December 31, 2017.

Annualized net charge-offs for the quarter ended December 31, 2018 were 0.17% of total average loans compared to 0.08% for the quarter ended September 30, 2018. The allowance for credit losses as a percentage of non-performing loans was 121% at December 31, 2018, as compared to 140% at September 30, 2018 and 131% at December 31, 2017.

During the fourth quarter of 2018, the Corporation recorded an $8.2 million provision for credit losses, compared to a $1.6 million provision for credit losses in the third quarter of 2018. For the year ended December 31, 2018, the provision for credit losses was $46.9 million, an increase of $23.6 million from 2017.

The increases in non-performing loans and the provision for credit losses during the fourth quarter of 2018 were primarily the result of a single relationship, including commercial loans and leases.

Non-interest Income

Non-interest income in the fourth quarter of 2018, excluding investment securities gains, decreased $1.5 million, or 2.9%, in comparison to the third quarter of 2018. This decline was due primarily to decreases in commercial loan interest rate swap fees and merchant fees. The decline was partially offset by gains in investment management and trust services income and small business administration (SBA) lending income.

For the year ended December 31, 2018, non-interest income, excluding investment securities gains, decreased $3.4 million, or 1.7%, primarily due to a $5.1 million net gain recognized upon the settlement of litigation in 2017 and decreases in commercial loan interest rate swap fees, overdraft fees, SBA lending income and mortgage banking income, which included a $1.3 million mortgage servicing rights valuation allowance reversal in 2017. Partially offsetting these decreases were increases in investment management and trust services income, merchant fees, and credit and debit card income.

Non-interest Expense

Non-interest expense increased $5.3 million, or 3.9%, in the fourth quarter of 2018, compared to the third quarter of 2018. Amortization of tax credit investments increased $4.9 million, due to the amortization of a tax credit investment that generated a corresponding credit to income taxes in the quarter. The $2.4 million increase in other expenses, due primarily to branch consolidation costs and other real estate owned expense, was partially offset by a decrease in marketing expense.

For the year ended December 31, 2018, non-interest expense increased $20.5 million, or 3.9%, compared to 2017. This increase was primarily due to increases in salaries and employee benefits, other outside services, data processing and software, net occupancy expense and professional fees.

Income Tax Expense

The effective income tax rate for the fourth quarter of 2018 was 8.6%, as compared to 11.5% for the third quarter of 2018. The decrease in the effective income tax rate resulted mainly from the aforementioned tax credit and lower income before income taxes.

The effective income tax rate for the year ended December 31, 2018 was 10.5% compared to 26.7% in 2017, due primarily to the new federal corporate income tax rate, which became effective January 1, 2018.

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," “projects,” the negative of these terms and other comparable terminology. These forward looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results.

Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, they are based on current beliefs, expectations and assumptions regarding the future of the Corporation’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements related to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation’s control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2017 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2018, June 30, 2018 and September 30, 2018, 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).

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.

 
FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
in thousands, except per-share data and percentages
Three Months Ended
Dec 31   Sep 30   Jun 30   Mar 31   Dec 31
  2018     2018     2018     2018     2017  

Ending Balances

Investments $ 2,686,973 $ 2,635,413 $ 2,593,283 $ 2,592,823 $ 2,547,956
Loans, net of unearned income 16,165,800 15,925,093 15,792,969 15,696,284 15,768,247
Total assets 20,682,152 20,364,810 20,172,539 19,948,941 20,036,905
Deposits 16,376,159 16,249,014 15,599,799 15,477,103 15,797,532
Shareholders' equity 2,247,573 2,283,014 2,245,785 2,235,493 2,229,857
 

Average Balances

Investments $ 2,646,266 $ 2,596,414 $ 2,601,705 $ 2,556,986 $ 2,566,337
Loans, net of unearned income 15,965,637 15,862,143 15,768,377 15,661,032 15,560,185
Total assets 20,512,130 20,273,232 20,063,375 19,876,093 20,072,579
Deposits 16,413,066 15,967,234 15,517,424 15,420,312 16,056,789
Shareholders' equity 2,281,669 2,269,093 2,246,904 2,224,615 2,237,031
 

Income Statement

Net interest income $ 162,944 $ 160,127 $ 156,067 $ 151,318 $ 149,413
Provision for credit losses 8,200 1,620 33,117 3,970 6,730
Non-interest income 49,523 51,033 49,094 45,875 56,956
Non-interest expense 140,685 135,413 133,345 136,661 138,452
Income before taxes 63,582 74,127 38,699 56,562 61,187
Net income 58,083 65,633 35,197 49,480 34,001
Pre-provision net revenue(1) 78,320 77,370 73,449 62,150 69,361
 

Per Share

Net income (basic) $ 0.33 $ 0.37 $ 0.20 $ 0.28 $ 0.19
Net income (diluted) 0.33 0.37 0.20 0.28 0.19
Cash dividends 0.16 0.12 0.12 0.12 0.14
Tangible common equity(1) 10.08 9.95 9.75 9.71 9.70
Weighted average shares (basic) 174,571 175,942 175,764 175,303 175,132
Weighted average shares (diluted) 175,473 177,128 176,844 176,568 176,374
 

Asset Quality

Net charge-offs to average loans (annualized) 0.17 % 0.08 % 1.01 % 0.10 % 0.14 %
Non-performing loans to total loans 0.86 % 0.75 % 0.78 % 0.86 % 0.85 %
Non-performing assets to total assets 0.73 % 0.64 % 0.67 % 0.73 % 0.72 %
Allowance for credit losses to loans outstanding 1.05 % 1.05 % 1.07 % 1.12 % 1.12 %
Allowance for loan losses to loans outstanding 0.99 % 0.99 % 0.99 % 1.04 % 1.08 %
Allowance for credit losses to non-performing loans 121.29 % 139.74 % 136.77 % 130.73 % 130.67 %
Allowance for loan losses to non-performing loans 114.93 % 131.40 % 126.11 % 121.22 % 126.08 %
Non-performing assets to tangible shareholders' equity

and allowance for credit losses(1)

7.97 % 6.81 % 7.16 % 7.73 % 7.71 %
Total delinquency rate 1.08 % 1.15 % 1.18 % 1.19 % 1.24 %
 

Profitability

Return on average assets 1.12 % 1.28 % 0.70 % 1.01 % 0.67 %
Return on average shareholders' equity 10.10 % 11.48 % 6.28 % 9.02 % 6.03 %
Return on average shareholders' equity (tangible)(1) 13.17 % 14.99 % 8.23 % 11.85 % 7.91 %
Net interest margin 3.44 % 3.42 % 3.39 % 3.35 % 3.29 %
Efficiency ratio(1) 62.2 % 62.5 % 63.3 % 67.5 % 64.2 %
 

Capital Ratios

Tangible common equity ratio(1) 8.52 % 8.83 % 8.73 % 8.78 % 8.71 %
Tier 1 leverage ratio(2) 8.92 % 9.34 % 9.20 % 9.20 % 8.93 %
Common equity Tier 1 capital ratio(2) 10.24 % 10.80 % 10.60 % 10.70 % 10.38 %
Tier 1 capital ratio(2) 10.24 % 10.80 % 10.60 % 10.70 % 10.38 %
Total risk-based capital ratio(2) 12.74 % 13.34 % 13.20 % 13.30 % 13.02 %
 

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 December 31, 2018 are preliminary and prior periods are actual.
(3)Excluding the re-measurement of net deferred tax assets of $15.6 million, which is considered a Non-GAAP 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.
             
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
    % Change from
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Dec 31
  2018       2018       2018       2018       2017     2018     2017  
 

ASSETS

 
Cash and due from banks $ 103,436 $ 90,361 $ 99,742 $ 100,151 $ 108,291 14.5 % (4.5 %)
Other interest-earning assets 421,534 388,256 364,802 267,806 354,566 8.6 % 18.9 %
Loans held for sale 27,099 27,525 35,898 23,450 31,530 (1.5 %) (14.1 %)
Investment securities 2,686,973 2,635,413 2,593,283 2,592,823 2,547,956 2.0 % 5.5 %
Loans, net of unearned income 16,165,800 15,925,093 15,792,969 15,696,284 15,768,247 1.5 % 2.5 %
Allowance for loan losses   (160,537 )     (157,810 )     (156,050 )     (163,217 )     (169,910 ) 1.7 % (5.5 %)
Net loans 16,005,263 15,767,283 15,636,919 15,533,067 15,598,337 1.5 % 2.6 %
Premises and equipment 234,529 231,236 230,195 230,313 222,802 1.4 % 5.3 %
Accrued interest receivable 58,879 58,584 55,208 53,060 52,910 0.5 % 11.3 %
Goodwill and intangible assets 531,556 531,556 531,556 531,556 531,556 - -
Other assets   612,883       634,596       624,936       616,715       588,957   (3.4 %) 4.1 %
 
Total Assets $ 20,682,152     $ 20,364,810     $ 20,172,539     $ 19,948,941     $ 20,036,905   1.6 % 3.2 %
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Deposits $ 16,376,159 $ 16,249,014 $ 15,599,799 $ 15,477,103 $ 15,797,532 0.8 % 3.7 %
Short-term borrowings 754,777 485,565 983,833 937,852 617,524 55.4 % 22.2 %
Other liabilities 311,364 355,102 351,174 359,994 353,646 (12.3 %) (12.0 %)
FHLB advances and long-term debt   992,279       992,115       991,948       938,499       1,038,346   0.0 % (4.4 %)
 
Total Liabilities 18,434,579 18,081,796 17,926,754 17,713,448 17,807,048 2.0 % 3.5 %
 
Shareholders' equity   2,247,573       2,283,014       2,245,785       2,235,493       2,229,857   (1.6 %) 0.8 %
 
Total Liabilities and Shareholders' Equity $ 20,682,152     $ 20,364,810     $ 20,172,539     $ 19,948,941     $ 20,036,905   1.6 % 3.2 %
 

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

 
Loans, by type:
Real estate - commercial mortgage $ 6,434,285 $ 6,337,984 $ 6,304,475 $ 6,332,508 $ 6,364,804 1.5 % 1.1 %
Commercial - industrial, financial and agricultural 4,404,548 4,288,823 4,264,602 4,299,072 4,300,297 2.7 % 2.4 %
Real estate - residential mortgage 2,251,044 2,173,548 2,094,530 1,976,524 1,954,711 3.6 % 15.2 %
Real estate - home equity 1,452,137 1,469,152 1,491,395 1,514,241 1,559,719 (1.2 %) (6.9 %)
Real estate - construction 916,599 979,857 990,705 976,131 1,006,935 (6.5 %) (9.0 %)
Consumer 419,186 390,708 360,315 326,766 313,783 7.3 % 33.6 %
Leasing and other   288,001       285,021       286,947       271,042       267,998   1.0 % 7.5 %
 
Total Loans, net of unearned income $ 16,165,800     $ 15,925,093     $ 15,792,969     $ 15,696,284     $ 15,768,247   1.5 % 2.5 %
 
Deposits, by type:
Noninterest-bearing demand $ 4,310,105 $ 4,216,064 $ 4,324,659 $ 4,291,821 $ 4,437,294 2.2 % (2.9 %)
Interest-bearing demand 4,240,974 4,289,181 3,854,680 3,984,423 4,018,107 (1.1 %) 5.5 %
Savings and money market accounts   4,926,937       4,878,982       4,597,510       4,487,277       4,586,746   1.0 % 7.4 %
Total demand and savings 13,478,016 13,384,227 12,776,849 12,763,521 13,042,147 0.7 % 3.3 %
Brokered deposits 176,239 164,601 161,447 64,195 90,473 7.1 % 94.8 %
Time deposits   2,721,904       2,700,186       2,661,503       2,649,387       2,664,912   0.8 % 2.1 %
 
Total Deposits $ 16,376,159     $ 16,249,014     $ 15,599,799     $ 15,477,103     $ 15,797,532   0.8 % 3.7 %
 
Short-term borrowings, by type:
Customer repurchase agreements $ 118,499 $ 82,741 $ 152,594 $ 165,186 $ 172,017 43.2 % (31.1 %)
Customer short-term promissory notes 326,278 267,824 303,239 342,666 225,507 21.8 % 44.7 %
Short-term FHLB advances 310,000 85,000 185,000 35,000 - 264.7 % (100.0 %)
Federal funds purchased   -       50,000       343,000       395,000       220,000   N/M N/M
 
Total Short-term Borrowings $ 754,777     $ 485,565     $ 983,833     $ 937,852     $ 617,524   55.4 % 22.2 %
 
N/M - Not meaningful
 
                       
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands                                        
    Three Months Ended   % Change from
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Dec 31 Year Ended Dec 31
  2018   2018   2018   2018   2017 2018   2017     2018   2017 % Change  
 
Interest Income:
Interest income $ 200,609 $ 194,048 $ 186,170 $ 177,687 $ 174,987 3.4 % 14.6 % $ 758,514 $ 668,866 13.4 %
Interest expense   37,665   33,921   30,103   26,369   25,574 11.0 % 47.3 %   128,058   93,502 37.0 %
 
Net Interest Income 162,944 160,127 156,067 151,318 149,413 1.8 % 9.1 % 630,456 575,364 9.6 %
Provision for credit losses   8,200   1,620   33,117   3,970   6,730 N/M 21.8 %   46,907   23,305 101.3 %
 
Net Interest Income after Provision 154,744 158,507 122,950 147,348 142,683 (2.4 %) 8.5 % 583,549 552,059 5.7 %
 
Non-Interest Income:
Other service charges and fees:
Merchant fees 4,366 5,006 4,920 4,115 4,308 (12.8 %) 1.3 % 18,407 16,845 9.3 %
Debit card income 3,214 3,604 3,077 2,817 3,526 (10.8 %) (8.9 %) 12,712 11,905 6.8 %
Commercial loan interest rate swap fees 2,540 3,607 2,393 1,291 2,914 (29.6 %) (12.8 %) 9,831 11,694 (15.9 %)
Letter of credit fees 1,001 983 956 992 1,037 1.9 % (3.5 %) 3,932 4,403 (10.7 %)
Foreign exchange income 484 542 591 533 510 (10.7 %) (5.0 %) 2,150 1,759 22.2 %
Other   1,655   1,691   1,728   1,671   1,534 (2.1 %) 7.9 %   6,745   6,253 7.9 %
Total 13,260 15,433 13,665 11,419 13,829 (14.1 %) (4.1 %) 53,777 52,859 1.7 %
Service charges on deposit accounts:
Overdraft fees 5,432 5,167 5,092 5,145 5,609 5.1 % (3.2 %) 20,836 22,569 (7.7 %)
Cash management fees 4,340 4,472 4,452 4,317 3,669 (3.0 %) 18.3 % 17,581 14,444 21.7 %
Other   2,626   2,620   2,726   2,500   3,392 0.2 % (22.6 %)   10,472   13,993 (25.2 %)
Total 12,398 12,259 12,270 11,962 12,670 1.1 % (2.1 %) 48,889 51,006 (4.2 %)
Investment management and trust services 13,408 13,066 12,803 12,871 13,152 2.6 % 1.9 % 52,148 49,249 5.9 %
Mortgage banking income 4,774 4,896 5,163 4,193 4,386 (2.5 %) 8.8 % 19,026 19,928 (4.5 %)
Other:
Credit card income 3,041 3,080 2,866 2,816 2,778 (1.3 %) 9.5 % 11,803 10,920 8.1 %
Small Business Administration lending income 741 530 846 357 1,355 39.8 % (45.3 %) 2,474 3,511 (29.5 %)
Other income   1,901   1,755   1,477   2,238   6,854 8.3 % (72.3 %)   7,371   11,430 (35.5 %)
Total   5,683   5,365   5,189   5,411   10,987 5.9 % (48.3 %)   21,648   25,861 (16.3 %)
Non-Interest Income before Investment Securities Gains 49,523 51,019 49,090 45,856 55,024 (2.9 %) (10.0 %) 195,488 198,903 (1.7 %)
Investment securities gains   -   14   4   19   1,932 N/M (100.0 %)   37   9,071 (99.6 %)
 
Total Non-Interest Income 49,523 51,033 49,094 45,875 56,956 (3.0 %) (13.1 %) 195,525 207,974 (6.0 %)
 
Non-Interest Expense:

 

Salaries and employee benefits 75,745 76,770 74,919 75,768 73,504 (1.3 %) 3.0 % 303,202 290,130 4.5 %
Net occupancy expense 12,708 12,578 12,760 13,632 12,549 1.0 % 1.3 % 51,678 49,708 4.0 %
Data processing and software 10,203 10,157 10,453 10,473 10,401 0.5 % (1.9 %) 41,286 38,735 6.6 %
Other outside services 8,944 9,122 7,568 8,124 7,665 (2.0 %) 16.7 % 33,758 27,501 22.8 %
Amortization of tax credit investments 6,538 1,637 1,637 1,637 3,376 N/M 93.7 % 11,449 11,028 3.8 %
Professional fees 3,546 3,427 2,372 4,816 3,632 3.5 % (2.4 %) 14,161 12,688 11.6 %
Equipment expense 3,275 3,000 3,434 3,534 3,244 9.2 % 1.0 % 13,243 12,935 2.4 %
FDIC insurance expense 2,563 2,814 2,663 2,953 3,618 (8.9 %) (29.2 %) 10,993 11,049 (0.5 %)
Marketing 1,577 2,692 2,335 2,250 1,725 (41.4 %) (8.6 %) 8,854 8,034 10.2 %
Other   15,586   13,216   15,204   13,474   18,738 17.9 % (16.8 %)   57,480   63,771 (9.9 %)
 
Total Non-Interest Expense   140,685   135,413   133,345   136,661   138,452 3.9 % 1.6 %   546,104   525,579 3.9 %
 
Income before Income Taxes 63,582 74,127 38,699 56,562 61,187 (14.2 %) 3.9 % 232,970 234,454 (0.6 %)
Income tax expense   5,499   8,494   3,502   7,082   27,186 (35.3 %) (79.8 %)   24,577   62,701 (60.8 %)
 
Net Income $ 58,083 $ 65,633 $ 35,197 $ 49,480 $ 34,001 (11.5 %) 70.8 % $ 208,393 $ 171,753 21.3 %
 

PER SHARE:

 
Net income:
Basic $ 0.33 $ 0.37 $ 0.20 $ 0.28 $ 0.19 (10.8 %) 73.7 % $ 1.19 $ 0.98 21.4 %
Diluted 0.33 0.37 0.20 0.28 0.19 (10.8 %) 73.7 % 1.18 0.98 20.4 %
Cash dividends 0.16 0.12 0.12 0.12 0.14 33.3 % 14.3 % 0.52 0.47 10.6 %
 
Weighted average shares (basic) 174,571 175,942 175,764 175,303 175,132 (0.8 %) (0.3 %) 175,395 174,721 0.4 %
Weighted average shares (diluted)   175,473     177,128     176,844     176,568     176,374   (0.9 %)   (0.5 %)       176,543     175,932   0.3 %
 

N/M - Not meaningful

 
                 
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
    Three Months Ended
December 31, 2018 September 30, 2018 December 31, 2017
Average Yield/ Average Yield/ Average Yield/
Balance

Interest (1)

Rate Balance Interest (1) Rate Balance Interest (1) Rate

ASSETS

 
Interest-earning assets:
Loans, net of unearned income $ 15,965,637 $ 182,358 4.54 % $ 15,862,143 $ 177,329 4.44 % $ 15,560,185 $ 162,050 4.14 %
 
Taxable investment securities 2,283,897 15,005 2.74 % 2,239,837 13,956 2.49 % 2,177,833 12,218 2.24 %
Tax-exempt investment securities 426,872 3,978 3.71 % 415,908 3,841 3.67 % 411,398 4,526 4.40 %
Equity securities   -     -   -     -     -   -     2,219     33   5.91 %
 
Total Investment Securities 2,710,769 18,983 2.80 % 2,655,745 17,797 2.68 % 2,591,450 16,777 2.59 %
 
Loans held for sale 22,361 271 4.85 % 27,195 388 5.71 % 21,874 245 4.48 %
Other interest-earning assets   492,529     2,177   1.76 %   416,129     1,601   1.53 %   571,981     1,755   1.22 %
 
Total Interest-earning Assets 19,191,296 203,789 4.22 % 18,961,212 197,115 4.13 % 18,745,490 180,827 3.83 %
 
Noninterest-earning assets:
Cash and due from banks 111,252 100,568 112,958
Premises and equipment 233,445 231,280 223,698
Other assets 1,131,548 1,137,293 1,163,686
Less: allowance for loan losses   (155,411 )   (157,121 )   (173,253 )
 
Total Assets $ 20,512,130   $ 20,273,232   $ 20,072,579  
 
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Interest-bearing liabilities:
Demand deposits $ 4,225,157 $ 7,448 0.70 % $ 4,116,051 $ 6,378 0.61 % $ 4,037,879 $ 4,111 0.40 %
Savings deposits 4,979,712 9,745 0.78 % 4,718,148 7,569 0.64 % 4,752,337 4,594 0.38 %
Brokered deposits 164,280 969 2.34 % 162,467 840 2.05 % 105,135 336 1.27 %
Time deposits   2,722,141     9,997   1.46 %   2,672,548     9,032   1.34 %   2,706,982     8,041   1.18 %
 
Total Interest-bearing Deposits 12,091,290 28,159 0.92 % 11,669,214 23,819 0.81 % 11,602,333 17,082 0.58 %
 
Short-term borrowings 504,550 1,410 1.11 % 724,132 2,002 1.09 % 391,284 372 0.38 %
FHLB advances and long-term debt   988,914     8,096   3.26 %   988,748     8,100   3.26 %   1,038,257     8,120   3.12 %
 
Total Interest-bearing Liabilities 13,584,754 37,665 1.10 % 13,382,094 33,921 1.01 % 13,031,874 25,574 0.78 %
 
Noninterest-bearing liabilities:
Demand deposits 4,321,776 4,298,020 4,454,456
Other   323,931     324,025     349,218  
 
Total Liabilities 18,230,461 18,004,139 17,835,548
 
Shareholders' equity   2,281,669     2,269,093     2,237,031  
 
Total Liabilities and Shareholders' Equity $ 20,512,130   $ 20,273,232   $ 20,072,579  
 
Net interest income/net interest margin (fully taxable equivalent) 166,124 3.44 % 163,194 3.42 % 155,253 3.29 %
Tax equivalent adjustment   (3,180 )   (3,067 )   (5,840 )
 
Net interest income $ 162,944   $ 160,127   $ 149,413  
 
(1) Three months ended December 31, 2018 and September 30, 2018 are presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. December 31, 2017 is 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 0.84%, 0.76% and 0.58% for the three months ended December 31, 2018, September 30, 2018 and December 31, 2017, respectively.

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

 
               
Three Months Ended   % Change from
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Dec 31
  2018   2018   2018   2018   2017 2018   2017  
 
Loans, by type:
Real estate - commercial mortgage $ 6,343,024 $ 6,309,663 $ 6,298,534 $ 6,305,821 $ 6,232,674 0.5 % 1.8 %
Commercial - industrial, financial and agricultural 4,329,937 4,304,320 4,335,097 4,288,634 4,263,199 0.6 % 1.6 %
Real estate - residential mortgage 2,209,993 2,142,977 2,026,161 1,958,505 1,926,067 3.1 % 14.7 %
Real estate - home equity 1,459,647 1,474,011 1,502,936 1,538,974 1,560,713 (1.0 %) (6.5 %)
Real estate - construction 931,724 969,575 978,327 984,242 1,004,166 (3.9 %) (7.2 %)
Consumer 406,436 375,656 345,572 315,927 312,320 8.2 % 30.1 %
Leasing and other   284,876   285,941   281,750   268,930   261,046 (0.4 %) 9.1 %
 
Total Loans, net of unearned income $ 15,965,637 $ 15,862,143 $ 15,768,377 $ 15,661,032 $ 15,560,185 0.7 % 2.6 %
 
Deposits, by type:
Noninterest-bearing demand $ 4,321,776 $ 4,298,020 $ 4,281,574 $ 4,246,168 $ 4,454,456 0.6 % (3.0 %)
Interest-bearing demand 4,225,157 4,116,051 3,952,115 3,958,894 4,037,879 2.7 % 4.6 %
Savings and money market accounts   4,979,712   4,718,148   4,538,083   4,494,445   4,752,337 5.5 % 4.8 %
Total demand and savings 13,526,645 13,132,219 12,771,772 12,699,507 13,244,672 3.0 % 2.1 %
Brokered deposits 164,280 162,467 85,242 74,026 105,135 1.1 % 56.3 %
Time deposits   2,722,141   2,672,548   2,660,410   2,646,779   2,706,982 1.9 % 0.6 %
 
Total Deposits $ 16,413,066 $ 15,967,234 $ 15,517,424 $ 15,420,312 $ 16,056,789 2.8 % 2.2 %
 
Short-term borrowings, by type:
Customer repurchase agreements $ 64,102 $ 148,660 $ 162,276 $ 175,292 $ 179,948 (56.9 %) (64.4 %)
Customer short-term promissory notes 312,742 298,896 316,049 308,725 195,951 4.6 % 59.6 %
Federal funds purchased 43 145,793 398,297 379,822 15,374 (100.0 %) (99.7 %)
Short-term FHLB advances and other borrowings   127,663   130,783   146,538   33,000   11 (2.4 %) N/M
 
Total Short-term Borrowings $ 504,550 $ 724,132 $ 1,023,160 $ 896,839 $ 391,284 (30.3 %) 28.9 %
 
N/M - Not meaningful
           
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Year Ended December 31
2018 2017
Average Average
Balance Interest (1) Yield/Rate Balance Interest (1) Yield/Rate

ASSETS

 
Interest-earning assets:
Loans, net of unearned income $ 15,815,263 $ 691,954 4.38 % $ 15,236,612 $ 620,803 4.07 %
Taxable investment securities 2,246,555 56,039 2.49 % 2,132,426 47,029 2.21 %
Tax-exempt investment securities 416,119 15,285 3.65 % 407,157 17,794 4.37 %
Equity securities   126     5   3.97 %   8,331     500   6.00 %
 
Total Investment Securities 2,662,800 71,329 2.68 % 2,547,914 65,323 2.56 %
 
Loans held for sale 22,970 1,159 5.05 % 20,008 876 4.38 %
Other interest-earning assets   382,569     6,193   1.62 %   451,015     5,066   1.12 %
 
Total Interest-earning Assets 18,883,602 770,635 4.08 % 18,255,549 692,068 3.79 %
 
Noninterest-earning assets:
Cash and due from banks 104,595 108,523
Premises and equipment 231,762 219,960
Other assets 1,123,857 1,168,759
Less: allowance for loan losses   (160,614 )   (172,424 )
 
Total Assets $ 20,183,202   $ 19,580,367  
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Interest-bearing liabilities:
Demand deposits $ 4,063,929 $ 22,789 0.56 % $ 3,831,865 $ 12,976 0.34 %
Savings deposits 4,684,023 27,226 0.58 % 4,468,205 13,477 0.30 %
Brokered deposits 121,863 2,480 2.04 % 49,126 613 1.25 %
Time deposits   2,675,670     35,217   1.32 %   2,721,724     30,726   1.13 %
 
Total Interest-bearing Deposits 11,545,485 87,712 0.76 % 11,070,920 57,792 0.52 %
 
Short-term borrowings 785,923 8,489 1.07 % 533,564 2,779 0.52 %
FHLB advances and long-term debt   977,573     31,857   3.26 %   1,034,444     32,932   3.18 %
 
Total Interest-bearing Liabilities 13,308,981 128,058 0.96 % 12,638,928 93,503 0.74 %
 
Noninterest-bearing liabilities:
Demand deposits 4,287,121 4,410,301
Other   331,336     337,275  
 
Total Liabilities 17,927,438 17,386,504
 
Shareholders' equity   2,255,764     2,193,863  
 
Total Liabilities and Shareholders' Equity $ 20,183,202   $ 19,580,367  
 
Net interest income/net interest margin (fully taxable equivalent) 642,577 3.40 % 598,565 3.28 %
Tax equivalent adjustment   (12,121 )   (23,201 )
 
Net interest income $ 630,456   $ 575,364  
 
(1) Year ended December 31, 2018 is presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. Prior period is 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 0.73% and 0.55% for the year ended December 31, 2018 and 2017, respectively.
 
 

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

     
Year Ended

December 31

2018 2017 % Change
 
Loans, by type:
Real estate - commercial mortgage $ 6,314,349 $ 6,161,731 2.5 %
Commercial - industrial, financial and agricultural 4,314,584 4,236,810 1.8 %
Real estate - residential mortgage 2,085,258 1,779,270 17.2 %
Real estate - home equity 1,493,620 1,582,705 (5.6 %)
Real estate - construction 965,835 921,879 4.8 %
Consumer 361,186 304,162 18.7 %
Leasing and other   280,431   250,055 12.1 %
 
Total Loans, net of unearned income $ 15,815,263 $ 15,236,612 3.8 %
 
Deposits, by type:
Noninterest-bearing demand $ 4,287,121 $ 4,410,301 (2.8 %)
Interest-bearing demand 4,063,929 3,831,865 6.1 %
Savings and money market accounts   4,684,023   4,468,205 4.8 %
Total demand and savings 13,035,073 12,710,371 2.6 %
Brokered deposits 121,863 49,126 148.1 %
Time deposits   2,675,670   2,721,724 (1.7 %)
 
Total Deposits $ 15,832,606 $ 15,481,221 2.3 %
 
Short-term borrowings, by type:
Customer repurchase agreements $ 138,198 $ 188,769 (26.8 %)
Customer short-term promissory notes 308,470 108,649 183.9 %
Federal funds purchased 229,715 163,102 40.8 %
Short-term FHLB advances and other borrowings   109,540   73,044 50.0 %
 
Total Short-term Borrowings $ 785,923 $ 533,564 47.3 %
 
N/M - Not meaningful
             
FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
 
Three Months Ended Year Ended
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 Dec 31
2018 2018 2018 2018 2017 2018 2017

ALLOWANCE FOR CREDIT LOSSES:

 
Balance at beginning of period $ 167,826 $ 169,247 $ 176,019 $ 176,084 $ 174,749 $ 176,084 $ 171,325
 
Loans charged off:
Commercial - industrial, financial and agricultural (6,263 ) (3,541 ) (38,632 ) (4,005 ) (5,473 ) (52,441 ) (19,067 )
Consumer and home equity (1,884 ) (1,415 ) (1,528 ) (1,300 ) (1,071 ) (6,127 ) (4,567 )
Real estate - commercial mortgage (762 ) (650 ) (366 ) (267 ) (220 ) (2,045 ) (2,169 )
Real estate - residential mortgage (446 ) (483 ) (483 ) (162 ) (152 ) (1,574 ) (687 )
Real estate - construction (392 ) (212 ) (606 ) (158 ) 0 (1,368 ) (3,765 )
Leasing and other   (889 )   (582 )   (545 )   (505 )   (457 )   (2,521 )   (3,035 )
Total loans charged off (10,636 ) (6,883 ) (42,160 ) (6,397 ) (7,373 ) (66,076 ) (33,290 )
Recoveries of loans previously charged off:
Commercial - industrial, financial and agricultural 2,647 731 541 1,075 941 4,994 7,771
Consumer and home equity 684 607 717 385 466 2,393 1,969
Real estate - commercial mortgage 94 928 321 279 178 1,622 1,668
Real estate - residential mortgage 100 317 96 107 186 620 786
Real estate - construction 415 664 444 306 32 1,829 1,582
Leasing and other   80     595     152     210     175     1,037     968  
Recoveries of loans previously charged off   4,020     3,842     2,271     2,362     1,978     12,495     14,744  
Net loans charged off (6,616 ) (3,041 ) (39,889 ) (4,035 ) (5,395 ) (53,581 ) (18,546 )
Provision for credit losses 8,200 1,620 33,117 3,970 6,730 46,907 23,305
             
Balance at end of period $ 169,410   $ 167,826   $ 169,247   $ 176,019   $ 176,084   $ 169,410   $ 176,084  
 
Net charge-offs to average loans (annualized)   0.17 %   0.08 %   1.01 %   0.10 %   0.14 %   0.34 %   0.12 %
 

NON-PERFORMING ASSETS:

 
Non-accrual loans $ 128,572 $ 106,433 $ 111,116 $ 122,966 $ 124,749
Loans 90 days past due and accruing   11,106     13,663     12,628     11,676     10,010  
Total non-performing loans 139,678 120,096 123,744 134,642 134,759
Other real estate owned   10,518     10,684     11,181     10,744     9,823  
 
Total non-performing assets $ 150,196   $ 130,780   $ 134,925   $ 145,386   $ 144,582  
 

NON-PERFORMING LOANS, BY TYPE:

 
Commercial - industrial, financial and agricultural $ 51,269 $ 43,391 $ 44,045 $ 54,915 $ 54,309
Real estate - commercial mortgage 32,153 37,393 39,278 36,183 35,446
Real estate - residential mortgage 19,101 19,076 18,888 20,169 20,972
Consumer and home equity 10,178 10,362 12,038 12,272 11,803
Real estate - construction 7,390 9,784 9,319 10,931 12,197
Leasing   19,587     90     176     172     32  
 
Total non-performing loans $ 139,678   $ 120,096   $ 123,744   $ 134,642   $ 134,759  
 
 

TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:

 
Real-estate - residential mortgage $ 24,102 $ 24,810 $ 25,055 $ 25,602 $ 26,016
Real-estate - commercial mortgage 15,685 15,690 16,420 18,181 13,959
Consumer and home equity 16,675 16,216 16,212 16,091 15,584
Commercial - industrial, financial and agricultural   5,143     10,342     11,199     11,740     10,820  
Total accruing TDRs 61,605 67,058 68,886 71,614 66,379
Non-accrual TDRs(1)   28,659     23,238     24,743     24,897     29,051  
Total TDRs $ 90,264   $ 90,296   $ 93,629   $ 96,511   $ 95,430  
 
(1) Included within non-accrual loans above.
Total Delinquency %

DELINQUENCY RATES, BY TYPE:

Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
2018 2018 2018 2018 2017
 
 
Real estate - commercial mortgage

0.69

% 0.81 % 0.77 % 0.77 % 0.77 %
Commercial - industrial, financial and agricultural

1.02

% 1.21 % 1.44 % 1.48 % 1.50 %
Real estate - construction 1.08 % 1.04 % 1.02 % 1.12 % 1.32 %
Real estate - residential mortgage 2.14 % 1.95 % 1.90 % 1.91 % 2.04 %
Consumer, home equity, leasing and other

1.24

% 1.31 % 1.22 % 1.20 % 1.37 %
         
Total   1.08 %   1.15 %   1.18 %   1.19 %   1.24 %
 
 
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

 

Dec 31   Sep 30   Jun 30   Mar 31   Dec 31

 

2018 2018 2018 2018 2017

 

Shareholders' equity (tangible), per share

Shareholders' equity $ 2,247,573 $ 2,283,014 $ 2,245,785 $ 2,235,493 $ 2,229,857
Less: Goodwill and intangible assets   (531,556 )   (531,556 )   (531,556 )   (531,556 )   (531,556 )
Tangible shareholders' equity (numerator) $ 1,716,017   $ 1,751,458   $ 1,714,229   $ 1,703,937   $ 1,698,301  
Shares outstanding, end of period (denominator)   170,184     176,019     175,847     175,404     175,170  
Shareholders' equity (tangible), per share $ 10.08   $ 9.95   $ 9.75   $ 9.71   $ 9.70  

Return on average shareholders' equity (tangible)

Net Income (numerator $ 58,083   $ 65,633   $ 35,197   $ 49,480   $ 34,001  
Average shareholders' equity $ 2,281,669 $ 2,269,093 $ 2,246,904 $ 2,224,615 $ 2,237,031
Less: Average goodwill and intangible assets   (531,556 )   (531,556 )   (531,556 )   (531,556 )   (531,556 )
Average tangible shareholders' equity (denominator) $ 1,750,113   $ 1,737,537   $ 1,715,348   $ 1,693,059   $ 1,705,475  
Return on average shareholders' equity (tangible), annualized   13.17 %   14.99 %   8.23 %   11.85 %   7.91 %

Tangible Common Equity to Tangible Assets (TCE Ratio)

Shareholders' equity $ 2,247,573 $ 2,283,014 $ 2,245,785 $ 2,235,493 $ 2,229,857
Less: Intangible assets   (531,556 )   (531,556 )   (531,556 )   (531,556 )   (531,556 )
Tangible shareholders' equity (numerator) $ 1,716,017   $ 1,751,458   $ 1,714,229   $ 1,703,937   $ 1,698,301  
Total assets $ 20,682,152 $ 20,364,810 $ 20,172,539 $ 19,948,941 $ 20,036,905
Less: Intangible assets   (531,556 )   (531,556 )   (531,556 )   (531,556 )   (531,556 )
Total tangible assets (denominator) $ 20,150,596   $ 19,833,254   $ 19,640,983   $ 19,417,385   $ 19,505,349  
Tangible Common Equity to Tangible Assets   8.52 %   8.83 %   8.73 %   8.78 %   8.71 %

Efficiency ratio

Non-interest expense $ 140,685 $ 135,413 $ 133,345 $ 136,661 $ 138,452
Less: Amortization of tax credit investments   (6,538 )   (1,637 )   (1,637 )   (1,637 )   (3,376 )
Non-interest expense (numerator) $ 134,147   $ 133,776   $ 131,708   $ 135,024   $ 135,076  
Net interest income (fully taxable equivalent) $ 166,124 $ 163,194 $ 159,027 $ 154,232 $ 155,253
Plus: Total Non-interest income 49,523 51,033 49,094 45,875 56,956
Less: Investment securities gains   -     (14 )   (4 )   (19 )   (1,932 )
Net interest income (denominator) $ 215,647   $ 214,213   $ 208,117   $ 200,088   $ 210,277  
Efficiency ratio   62.2 %   62.5 %   63.3 %   67.5 %   64.2 %

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

Non-performing assets (numerator) $ 150,196   $ 130,780   $ 134,925   $ 145,386   $ 144,582  
Tangible shareholders' equity $ 1,716,017 $ 1,751,458 $ 1,714,229 $ 1,703,937 $ 1,698,301
Plus: Allowance for credit losses   169,410     167,826     169,247     176,019     176,084  
Tangible shareholders' equity and allowance for credit losses (denominator) $ 1,885,427   $ 1,919,284   $ 1,883,476   $ 1,879,956   $ 1,874,385  
Non-performing assets to tangible shareholders' equity and allowance for credit losses   7.97 %   6.81 %   7.16 %   7.73 %   7.71 %

Pre-provision net revenue

Net interest income $ 162,944 $ 160,127 $ 156,067 $ 151,318 $ 149,413

 

Non-interest income 49,523 51,033 49,094 45,875 56,956

 

Less: Investment securities gains   -     (14 )   (4 )   (19 )  

(1,932

)

Total revenue $ 212,467   $ 211,146   $ 205,157   $ 197,174   $ 204,437

 

Non-interest expense $ 140,685 $ 135,413 $ 133,345 $ 136,661 $ 138,452

 

Less: Amortization of tax credit investments   (6,538 )   (1,637 )   (1,637 )   (1,637 )  

(3,376

)

Total non-interest expense $ 134,147   $ 133,776   $ 131,708   $ 135,024   $ 135,076

 

Pre-provision net revenue $ 78,320   $ 77,370   $ 73,449   $ 62,150   $ 69,361

 

           
FULTON FINANCIAL CORPORATION
RECONCILIATION OF NON-GAAP MEASURES CONTINUED (UNAUDITED)
in thousands, except per share data and percentages
 

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

 

Three Months Ended

Dec 31
2017

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) (denominator)   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 %

Contacts

Media Contact: Laura Wakeley (717) 291-2616
Investor Contact: Jason Weber (717) 327-2394

Contacts

Media Contact: Laura Wakeley (717) 291-2616
Investor Contact: Jason Weber (717) 327-2394