SOURCE: Fulton Financial Corporation

Fulton Financial Corporation

April 19, 2016 16:30 ET

Fulton Financial Reports First Quarter Earnings of $0.22 per Share

LANCASTER, PA--(Marketwired - Apr 19, 2016) - Fulton Financial Corporation (NASDAQ: FULT)

  • Diluted earnings per share for the first quarter of 2016 were 22 cents, unchanged from both the fourth quarter of 2015 and the first quarter of 2015. Pre-provision net revenue of $50.8 million was 6.6% lower than the fourth quarter of 2015 and 11.2% higher than the first quarter of 2015.
  • Net interest income for the first quarter of 2016 increased $1.3 million, or 1.0 percent, compared to the fourth quarter of 2015 and $5.5 million, or 4.4 percent compared to first quarter of 2015.
  • Net interest margin increased four basis points to 3.23 percent compared to the fourth quarter of 2015, and decreased four basis points compared to the first quarter of 2015.
  • Loans at March 31, 2016 increased $32.1 million, or 0.2 percent, compared to December 31, 2015 and $755.2 million, or 5.8 percent, compared to March 31, 2015. Average loans for the first quarter of 2016 increased 1.4 percent and 5.8 percent compared to the fourth quarter of 2015 and the first quarter of 2015, respectively.
  • Deposits at March 31, 2016 increased $272.0 million, or 1.9 percent, compared to December 31, 2015 and $889.8 million, or 6.6 percent, compared to March 31, 2015. Average deposits for the first quarter of 2016 decreased 0.1 percent compared to the fourth quarter of 2015, and increased 6.2 percent, compared to the first quarter of 2015.
  • The provision for credit losses in the first quarter of 2016 was $1.5 million, compared to a $2.8 million provision in the fourth quarter of 2015 and a negative $3.7 million provision in the first quarter of 2015.
  • Non-interest income, excluding investment securities gains, decreased $2.9 million, or 6.4 percent, in comparison to the fourth quarter of 2015, and increased $1.6 million, or 3.9 percent, in comparison to the first quarter of 2015.
  • Non-interest expense increased $2.0 million, or 1.7 percent, compared to the fourth quarter of 2015 and $1.9 million, or 1.6 percent, compared to the first quarter of 2015.

Fulton Financial Corporation (NASDAQ: FULT) reported net income of $38.3 million, or 22 cents per diluted share, for the first quarter of 2016.

"Fulton's first quarter resulted in double digit pre-provision net revenue growth year-over-year, a clear reflection of our efforts to focus on organic growth and take advantage of the local market disruption," said E. Philip Wenger, Chairman, President and CEO. "Our commercial loan pipeline remains strong while our fee income businesses continue to build momentum, so we remain optimistic that we can create meaningful positive operating leverage in 2016."

Net Interest Income and Margin
Net interest income for the first quarter of 2016 increased $1.3 million, or 1.0 percent, from the fourth quarter of 2015. Net interest margin increased four basis points, or 1.3 percent, to 3.23 percent in the first quarter of 2016, from 3.19 percent in the fourth quarter of 2015. The average yield on interest-earning assets increased five basis points, while the average cost of interest-bearing liabilities increased one basis point, during the first quarter of 2016 in comparison to the fourth quarter of 2015.

Average Balance Sheet
Total average assets for the first quarter of 2016 were $18.0 billion, an increase of $194.3 million from the fourth quarter of 2015. Average loans, net of unearned income, increased $194.2 million, or 1.4 percent, in comparison to the fourth quarter of 2015. Average loans and yields, by type, for the first quarter of 2016 in comparison to the fourth quarter of 2015, are summarized in the following table:

           
  Three Months Ended     Increase (decrease)  
  March 31, 2016     December 31, 2015     in Balance  
  Balance   Yield (1)     Balance   Yield (1)     $     %  
  (dollars in thousands)  
Average Loans, net of unearned income, by type:                                    
  Real estate - commercial mortgage $ 5,487,421   4.03 %   $ 5,365,640   4.05 %   $ 121,781     2.3 %
  Commercial - industrial, financial and agricultural   4,095,268   3.79 %     4,035,287   3.74 %     59,981     1.5 %
  Real estate - home equity   1,674,032   4.10 %     1,694,455   4.07 %     (20,423 )   (1.2 %)
  Real estate - residential mortgage   1,381,409   3.78 %     1,377,116   3.79 %     4,293     0.3 %
  Real estate - construction   792,014   3.82 %     765,555   3.75 %     26,459     3.5 %
  Consumer   263,295   5.53 %     267,726   5.72 %     (4,431 )   (1.7 %)
  Leasing and other   159,981   7.46 %     153,487   5.31 %     6,494     4.2 %
                                     
  Total Average Loans, net of unearned income $ 13,853,420   4.00 %   $ 13,659,266   3.96 %   $ 194,154     1.4 %
                                     
(1) Presented on a fully-taxable equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.                
                 

Total average liabilities increased $172.3 million, or 1.1 percent, from the fourth quarter of 2015, while average deposits decreased $11.8 million, or 0.1 percent. Average deposits and interest rates, by type, for the first quarter of 2016 in comparison to the fourth quarter of 2015, are summarized in the following table:

             
    Three Months Ended     Increase (decrease)  
    March 31, 2016     December 31, 2015     in Balance  
    Balance   Rate     Balance   Rate     $     %  
    (dollars in thousands)        
Average Deposits, by type:                                      
  Noninterest-bearing demand   $ 3,967,887   - %   $ 3,999,118   - %   $ (31,231 )   (0.8 %)
  Interest-bearing demand     3,438,355   0.17 %     3,411,904   0.13 %     26,451     0.8 %
  Savings deposits     3,932,824   0.18 %     3,903,741   0.17 %     29,083     0.7 %
Total average demand and savings     11,339,066   0.12 %     11,314,763   0.10 %     24,303     0.2 %
  Time deposits     2,867,651   1.04 %     2,903,715   1.03 %     (36,064 )   (1.2 %)
                                       
  Total Average Deposits   $ 14,206,717   0.30 %   $ 14,218,478   0.29 %   $ (11,761 )   (0.1 %)
                                         

Asset Quality

Non-performing assets were $148.1 million, or 0.82 percent of total assets, at March 31, 2016, compared to $155.9 million, or 0.87 percent of total assets, at December 31, 2015 and $163.5 million, or 0.94 percent of total assets, at March 31, 2015.

Annualized net charge-offs for the quarter ended March 31, 2016 were 0.20 percent of total average loans, compared to 0.02 percent for the quarter ended December 31, 2015 and 0.08 percent for the quarter ended March 31, 2015. The allowance for credit losses as a percentage of non-performing loans was 121.1 percent at March 31, 2016, as compared to 118.4 percent at December 31, 2015 and 120.3 percent at March 31, 2015.

During the first quarter of 2016, the Corporation recorded a $1.5 million provision for credit losses, compared to a $2.8 million provision for credit losses in the fourth quarter of 2015 and a negative $3.7 million provision in the first quarter of 2015. 

Non-interest Income
Non-interest income, excluding investment securities gains, decreased $2.9 million, or 6.4 percent, in comparison to the fourth quarter of 2015. Other service charges and fees decreased $1.9 million, or 15.2 percent, due to decreases in commercial loan interest rate swap fees and debit card income. Service charges on deposits decreased $351,000, or 2.7 percent, due to a decrease in overdraft fee income. Mortgage banking income decreased $287,000, or 6.6 percent, due to lower servicing income.

Compared to the first quarter of 2015, non-interest income, excluding investment securities gains, increased $1.6 million, or 3.9 percent, due to increases in merchant fees, commercial loan interest rate swap fees, and other service charges and fees, partially offset by a decrease in mortgage banking income.

Gains on sales of investment securities increased $171,000 in comparison to the fourth quarter of 2015, and decreased $3.2 million from the first quarter of 2015, which included gains from the sales of two pooled trust preferred debt securities in 2015. 

Non-interest Expense
Non-interest expense increased $2.0 million, or 1.7 percent, in the first quarter of 2016, compared to the fourth quarter of 2015. Salaries and employee benefits increased $3.9 million, or 6.0 percent, driven by seasonally higher payroll taxes and higher costs for certain benefits. Offsetting these increases were net decreases in multiple expense categories.

Compared to the first quarter of 2015, non-interest expense increased $2.0 million, or 1.6 percent, reflecting increases in salaries and employee benefits, data processing, and software costs partially offset by lower net occupancy expense, other real estate owned and repossession expense, equipment expense and professional fees.

About Fulton Financial
Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company that has banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates, headquartered as indicated: Fulton Bank, N.A., Lancaster, PA; Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Bethlehem, PA; FNB Bank, N.A., Danville, PA; Fulton Bank of New Jersey, Mt. Laurel, NJ; and The Columbia Bank, Columbia, MD.

The Corporation's investment management and trust services are offered at all banks through Fulton Financial Advisors, a division of Fulton Bank, N.A. Residential mortgage lending is offered by all banks under the Fulton Mortgage Company brand.

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, 2015, which has been filed with the Securities and Exchange Commission and is 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.

http://media.marketwire.com/attachments/201604/95929_Q1EarningsCCPresentationMarketwired41816..pdf

         
FULTON FINANCIAL CORPORATION        
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)        
dollars in thousands        
 
                % Change from 
    March 31   March 31   December 31   March 31   December 31 
    2016   2015   2015   2015   2015 
                       
ASSETS                      
                             
  Cash and due from banks   $ 83,479   $ 91,870   $ 101,120   (9.1 %) (17.4 %)
  Other interest-earning assets     408,060     703,667     292,516   (42.0 %) 39.5 %
  Loans held for sale     19,719     34,124     16,886   (42.2 %) 16.8 %
  Investment securities     2,516,205     2,259,802     2,484,773   11.3 % 1.3 %
  Loans, net of unearned income     13,870,701     13,115,505     13,838,602   5.8 % 0.2 %
  Allowance for loan losses     (163,841 )   (177,701 )   (169,054 ) (7.8 %) (3.1 %)
    Net loans     13,706,860     12,937,804     13,669,548   5.9 % 0.3 %
  Premises and equipment     228,057     226,241     225,535   0.8 % 1.1 %
  Accrued interest receivable     44,379     42,216     42,767   5.1 % 3.8 %
  Goodwill and intangible assets     531,556     531,672     531,556   -   -  
  Other assets     583,939     535,945     550,017   9.0 % 6.2 %
                             
      Total Assets   $ 18,122,254   $ 17,363,341   $ 17,914,718   4.4 % 1.2 %
                             
LIABILITIES AND SHAREHOLDERS' EQUITY                            
                             
  Deposits   $ 14,404,280   $ 13,514,497   $ 14,132,317   6.6 % 1.9 %
  Short-term borrowings     352,883     410,105     497,663   (14.0 %) (29.1 %)
  Other liabilities     326,128     312,709     293,302   4.3 % 11.2 %
  FHLB advances and long-term debt     965,654     1,094,517     949,542   (11.8 %) 1.7 %
                             
    Total Liabilities     16,048,945     15,331,828     15,872,824   4.7 % 1.1 %
                             
  Shareholders' equity     2,073,309     2,031,513     2,041,894   2.1 % 1.5 %
                             
      Total Liabilities and Shareholders' Equity   $ 18,122,254   $ 17,363,341   $ 17,914,718   4.4 % 1.2 %
                             
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:                      
                             
  Loans, by type:                            
  Real estate - commercial mortgage   $ 5,558,108   $ 5,227,101   $ 5,462,330   6.3 % 1.8 %
  Commercial - industrial, financial and agricultural     4,035,333     3,762,631     4,088,962   7.2 % (1.3 %)
  Real estate - home equity     1,659,481     1,701,623     1,684,439   (2.5 %) (1.5 %)
  Real estate - residential mortgage     1,377,459     1,364,788     1,376,160   0.9 % 0.1 %
  Real estate - construction     810,872     677,806     799,988   19.6 % 1.4 %
  Consumer     263,221     257,301     268,588   2.3 % (2.0 %)
  Leasing and other     166,227     124,255     158,135   33.8 % 5.1 %
                             
  Total Loans, net of unearned income   $ 13,870,701   $ 13,115,505   $ 13,838,602   5.8 % 0.2 %
                             
Deposits, by type:                            
  Noninterest-bearing demand   $ 4,134,861   $ 3,765,677   $ 3,948,114   9.8 % 4.7 %
  Interest-bearing demand     3,430,206     3,133,748     3,451,207   9.5 % (0.6 %)
  Savings deposits     3,972,199     3,567,652     3,868,046   11.3 % 2.7 %
  Time deposits     2,867,014     3,047,420     2,864,950   (5.9 %) 0.1 %
                               
  Total Deposits   $ 14,404,280   $ 13,514,497   $ 14,132,317   6.6 % 1.9 %
                             
Short-term borrowings, by type:                            
  Customer repurchase agreements   $ 162,431   $ 161,886   $ 111,496   0.3 % 45.7 %
  Customer short-term promissory notes     76,807     93,176     78,932   (17.6 %) (2.7 %)
  Short-term FHLB advances     81,000     155,000     110,000   (47.7 %) (26.4 %)
  Federal funds purchased     32,645     43     197,235   N/M   (83.4 %)
                             
  Total Short-term Borrowings   $ 352,883   $ 410,105   $ 497,663   (14.0 %) (29.1 %)
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  
    Mar 31   Mar 31     Dec 31     Mar 31     Dec 31  
    2016   2015     2015     2015     2015  
                                   
Interest Income:                                  
  Interest income   $ 149,311   $ 145,772     $ 147,560     2.4 %   1.2 %
  Interest expense     20,257     22,191       19,761     (8.7 %)   2.5 %
                                   
    Net Interest Income     129,054     123,581       127,799     4.4 %   1.0 %
  Provision for credit losses     1,530     (3,700 )     2,750     N/M     (44.4 %)
                                   
    Net Interest Income after Provision     127,524     127,281       125,049     0.2 %   2.0 %
                                   
Non-Interest Income:                                  
  Service charges on deposit accounts     12,558     11,569       12,909     8.5 %   (2.7 %)
  Investment management and trust services     10,988     10,889       10,919     0.9 %   0.6 %
  Other service charges and fees     10,750     9,363       12,676     14.8 %   (15.2 %)
  Mortgage banking income     4,030     4,688       4,317     (14.0 %)   (6.6 %)
  Other     3,864     4,083       4,242     (5.4 %)   (8.9 %)
    Non-Interest Income before Investment Securities Gains     42,190     40,592       45,063     3.9 %   (6.4 %)
  Investment securities gains     947     4,145       776     (77.2 %)   22.0 %
                                   
    Total Non-Interest Income     43,137     44,737       45,839     (3.6 %)   (5.9 %)
                                   
Non-Interest Expense:                                  
  Salaries and employee benefits     69,372     64,990       65,467     6.7 %   6.0 %
  Net occupancy expense     12,220     13,692       11,566     (10.8 %)   5.7 %
  Other outside services     6,056     5,750       6,537     5.3 %   (7.4 %)
  Data processing     5,400     4,768       5,127     13.3 %   5.3 %
  Software     3,921     3,318       4,068     18.2 %   (3.6 %)
  Equipment expense     3,371     3,958       3,626     (14.8 %)   (7.0 %)
  FDIC insurance expense     2,949     2,822       2,896     4.5 %   1.8 %
  Professional fees     2,333     2,871       2,814     (18.7 %)   (17.1 %)
  Marketing     1,624     1,233       1,754     31.7 %   (7.4 %)
  Other real estate owned and repossession expense     638     1,362       1,123     (53.2 %)   (43.2 %)
  Operating risk loss     540     827       987     (34.7 %)   (45.3 %)
  Intangible amortization     -     130       6     N/M     N/M  
  Other     11,989     12,757       12,468     (6.0 %)   (3.8 %)
                                   
    Total Non-Interest Expense     120,413     118,478       118,439     1.6 %   1.7 %
                                   
    Income before Income Taxes     50,248     53,540       52,449     (6.1 %)   (4.2 %)
  Income tax expense     11,991     13,504       13,914     (11.2 %)   (13.8 %)
                                   
    Net Income   $ 38,257   $ 40,036     $ 38,535     (4.4 %)   (0.7 %)
                                   
                                   
PER SHARE:                                  
                                   
  Net income:                                  
    Basic   $ 0.22   $ 0.22     $ 0.22     -     -  
    Diluted     0.22     0.22       0.22     -     -  
                                   
  Cash dividends   $ 0.09   $ 0.09     $ 0.11     -     (18.2 %)
  Shareholders' equity     11.96     11.34       11.72     5.5 %   2.0 %
  Shareholders' equity (tangible)     8.89     8.37       8.67     6.2 %   2.5 %
                                   
  Weighted average shares (basic)     173,331     178,471       173,709     (2.9 %)   (0.2 %)
  Weighted average shares (diluted)     174,416     179,457       174,833     (2.8 %)   (0.2 %)
  Shares outstanding, end of period     173,393     179,098       174,176     (3.2 %)   (0.4 %)
                                   
SELECTED FINANCIAL RATIOS:                                  
                                   
  Return on average assets     0.86%     0.95 %     0.86 %            
  Return on average shareholders' equity     7.47%     8.05 %     7.51 %            
  Return on average shareholders' equity (tangible)     10.07%     10.96 %     10.16 %            
  Net interest margin     3.23%     3.27 %     3.19 %            
  Efficiency ratio     68.33%     70.16 %     66.63 %            
                                     
N/M - Not meaningful                                    
                                     
                                     
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands 
   
                                       
    Three Months Ended  
    March 31, 2016     March 31, 2015     December 31, 2015  
    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   $ 13,853,420     $ 137,895     4.00 %   $ 13,095,528     $ 133,055     4.11 %   $ 13,659,266     $ 136,317     3.96 %
  Taxable investment securities     2,180,593       12,003     2.20 %     2,005,542       11,282     2.25 %     2,170,397       11,801     2.17 %
  Tax-exempt investment securities     259,396       3,138     4.84 %     229,082       3,212     5.61 %     246,727       3,085     5.00 %
  Equity securities     14,386       218     6.10 %     32,210       450     5.66 %     15,524       208     5.33 %
                                                                   
  Total Investment Securities     2,454,375       15,359     2.50 %     2,266,834       14,944     2.64 %     2,432,648       15,094     2.48 %
                                                                   
  Loans held for sale     12,252       131     4.28 %     17,002       173     4.07 %     15,713       169     4.31 %
  Other interest-earning assets     358,562       898     1.00 %     474,033       2,105     1.78 %     399,309       864     0.86 %
                                                                   
  Total Interest-earning Assets     16,678,609       154,283     3.72 %     15,853,397       150,277     3.83 %     16,506,936       152,444     3.67 %
                                                                   
Noninterest-earning assets:                                                                  
  Cash and due from banks     98,449                     105,271                     106,810                
  Premises and equipment     226,284                     226,391                     226,335                
  Other assets     1,137,292                     1,114,078                     1,108,094                
  Less: allowance for loan losses     (167,372 )                   (183,927 )                   (169,251 )              
                                                                   
  Total Assets   $ 17,973,262                   $ 17,115,210                   $ 17,778,924                
                                                                   
                                                                   
LIABILITIES AND SHAREHOLDERS' EQUITY                                                                  
                                                                   
Interest-bearing liabilities:                                                                  
  Demand deposits   $ 3,438,355     $ 1,494     0.17 %   $ 3,135,927     $ 983     0.13 %   $ 3,411,904     $ 1,207     0.13 %
  Savings deposits     3,932,824       1,804     0.18 %     3,517,057       1,119     0.13 %     3,903,741       1,633     0.17 %
  Time deposits     2,867,651       7,429     1.04 %     3,061,593       7,721     1.02 %     2,903,715       7,549     1.03 %
                                                                   
  Total Interest-bearing Deposits     10,238,830       10,727     0.42 %     9,714,577       9,823     0.41 %     10,219,360       10,389     0.40 %
                                                                   
  Short-term borrowings     445,402       268     0.24 %     309,215       77     0.10 %     281,497       100     0.14 %
  FHLB advances and long-term debt     958,213       9,262     3.88 %     1,124,074       12,291     4.40 %     950,792       9,272     3.88 %
                                                                   
  Total Interest-bearing Liabilities     11,642,445       20,257     0.70 %     11,147,866       22,191     0.80 %     11,451,649       19,761     0.69 %
                                                                   
Noninterest-bearing liabilities:                                                                  
  Demand deposits     3,967,887                     3,662,040                     3,999,118                
  Other     304,131                     289,341                     291,388                
                                                                   
  Total Liabilities     15,914,463                     15,099,247                     15,742,155                
                                                                   
  Shareholders' equity     2,058,799                     2,015,963                     2,036,769                
                                                                   
  Total Liabilities and Shareholders' Equity   $ 17,973,262                   $ 17,115,210                   $ 17,778,924                
                                                                   
  Net interest income/net interest margin (fully taxable equivalent)       134,026     3.23 %             128,086     3.27 %             132,683     3.19 %
  Tax equivalent adjustment             (4,972 )                   (4,505 )                   (4,884 )      
                                                                   
  Net interest income           $ 129,054                   $ 123,581                   $ 127,799        
                                                                   
  (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  
    March 31   March 31   December 31   March 31   December 31  
    2016   2015   2015   2015   2015  
                       
Loans, by type:                            
  Real estate - commercial mortgage   $ 5,487,421   $ 5,163,845   $ 5,365,640   6.3 % 2.3 %
  Commercial - industrial, financial and agricultural     4,095,268     3,770,187     4,035,287   8.6 % 1.5 %
  Real estate - home equity     1,674,032     1,721,300     1,694,455   (2.7 %) (1.2 %)
  Real estate - residential mortgage     1,381,409     1,370,376     1,377,116   0.8 % 0.3 %
  Real estate - construction     792,014     688,690     765,555   15.0 % 3.5 %
  Consumer     263,295     259,138     267,726   1.6 % (1.7 %)
  Leasing and other     159,981     121,992     153,487   31.1 % 4.2 %
                             
  Total Loans, net of unearned income   $ 13,853,420   $ 13,095,528   $ 13,659,266   5.8 % 1.4 %
                             
Deposits, by type:                            
  Noninterest-bearing demand   $ 3,967,887   $ 3,662,040   $ 3,999,118   8.4 % (0.8 %)
  Interest-bearing demand     3,438,355     3,135,927     3,411,904   9.6 % 0.8 %
  Savings deposits     3,932,824     3,517,057     3,903,741   11.8 % 0.7 %
  Time deposits     2,867,651     3,061,593     2,903,715   (6.3 %) (1.2 %)
                             
  Total Deposits   $ 14,206,717   $ 13,376,617   $ 14,218,478   6.2 % (0.1 %)
                             
Short-term borrowings, by type:                            
  Customer repurchase agreements   $ 171,408   $ 173,625   $ 142,004   (1.3 %) 20.7 %
  Customer short-term promissory notes     74,013     86,258     80,568   (14.2 %) (8.1 %)
  Federal funds purchased     183,970     25,054     44,468   634.3 % 313.7 %
  Short-term FHLB advances and other borrowings     16,011     24,278     14,457   (34.1 %) 10.7 %
                               
  Total Short-term Borrowings   $ 445,402   $ 309,215   $ 281,497   44.0 % 58.2 %
 
FULTON FINANCIAL CORPORATION                
ASSET QUALITY INFORMATION (UNAUDITED)                
dollars in thousands                
                   
    Three Months Ended  
    Mar 31     Mar 31     Dec 31  
    2016     2015     2015  
ALLOWANCE FOR CREDIT LOSSES:                        
                         
  Balance at beginning of period   $ 171,412     $ 185,931     $ 169,395  
                           
  Loans charged off:                        
    Commercial - industrial, financial and agricultural     (6,188 )     (1,863 )     (970 )
    Consumer and home equity     (2,548 )     (1,548 )     (1,466 )
    Real estate - residential mortgage     (1,068 )     (1,281 )     (513 )
    Real estate - commercial mortgage     (582 )     (709 )     (1,207 )
    Real estate - construction     (326 )     -       0  
    Leasing and other     (443 )     (363 )     (1,304 )
    Total loans charged off     (11,155 )     (5,764 )     (5,460 )
  Recoveries of loans previously charged off:                        
    Commercial - industrial, financial and agricultural     2,319       786       1,409  
    Consumer and home equity     534       492       825  
    Real estate - residential mortgage     136       159       775  
    Real estate - commercial mortgage     825       436       1,072  
    Real estate - construction     383       1,147       548  
    Leasing and other     81       171       98  
    Recoveries of loans previously charged off     4,278       3,191       4,727  
  Net loans charged off     (6,877 )     (2,573 )     (733 )
  Provision for credit losses     1,530       (3,700 )     2,750  
                         
  Balance at end of period   $ 166,065     $ 179,658     $ 171,412  
                         
  Net charge-offs to average loans (annualized)     0.20 %     0.08 %     0.02 %
                         
NON-PERFORMING ASSETS:                        
                         
  Non-accrual loans   $ 122,170     $ 129,929     $ 129,523  
  Loans 90 days past due and accruing     15,013       19,365       15,291  
    Total non-performing loans     137,183       149,294       144,814  
  Other real estate owned     10,946       14,251       11,099  
                         
  Total non-performing assets   $ 148,129     $ 163,545     $ 155,913  
                         
NON-PERFORMING LOANS, BY TYPE:                        
                         
  Real estate - commercial mortgage   $ 43,132     $ 46,331     $ 41,170  
  Commercial - industrial, financial and agricultural     39,140       43,265       44,071  
  Real estate - residential mortgage     25,182       28,595       28,484  
  Consumer and home equity     16,210       16,939       17,123  
  Real estate - construction     12,005       14,140       12,460  
  Leasing     1,514       24       1,506  
                         
  Total non-performing loans   $ 137,183     $ 149,294     $ 144,814  
                         
                         
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:                  
                         
  Real-estate - residential mortgage   $ 27,565     $ 31,574     $ 28,511  
  Real-estate - commercial mortgage     17,427       23,468       17,563  
  Consumer and home equity     6,562       3,118       4,589  
  Commercial - industrial, financial and agricultural     5,650       6,975       5,953  
  Real estate - construction     3,092       7,791       3,942  
  Total accruing TDRs     60,296       72,926       60,558  
  Non-accrual TDRs (1)     27,277       29,392       31,035  
  Total TDRs   $ 87,573     $ 102,318     $ 91,593  
                         
(1) Included within non-accrual loans above.                        
                                     
                                     
DELINQUENCY RATES, BY TYPE:                          
    Mar 31, 2016   Mar 31, 2015   Dec 31, 2015
    31-89 Days   ≥90 Days (2)   Total   31-89 Days   ≥90 Days (2)   Total   31-89 Days   ≥90 Days (2)   Total
                                     
  Real estate - commercial mortgage   0.15%   0.78%   0.93%   0.50%   0.89%   1.39%   0.14%   0.77%   0.91%
  Commercial - industrial, financial and agricultural   0.49%   0.97%   1.46%   0.26%   1.15%   1.41%   0.21%   1.06%   1.27%
  Real estate - construction   0.52%   1.48%   2.00%   0.31%   2.09%   2.40%   0.28%   1.59%   1.87%
  Real estate - residential mortgage   1.27%   1.83%   3.10%   1.75%   2.10%   3.85%   1.33%   2.07%   3.40%
  Consumer, home equity, leasing and other   0.63%   0.85%   1.48%   0.92%   0.81%   1.73%   0.70%   0.88%   1.58%
                                       
  Total   0.45%   0.99%   1.44%   0.62%   1.14%   1.76%   0.37%   1.04%   1.41%
                                     
(2) Includes non-accrual loans                  
                                     
             
ASSET QUALITY RATIOS:            
    Mar 31   Mar 31   Dec 31
    2016   2015   2015
             
  Non-accrual loans to total loans   0.88%   0.99%   0.94%
  Non-performing loans to total loans   0.99%   1.14%   1.05%
  Non-performing assets to total loans and OREO   1.07%   1.25%   1.13%
  Non-performing assets to total assets   0.82%   0.94%   0.87%
  Allowance for credit losses to loans outstanding   1.20%   1.37%   1.24%
  Allowance for credit losses to non-performing loans   121.05%   120.34%   118.37%
  Non-performing assets to tangible common shareholders'equity and allowance for credit losses            
8.67%   9.74%   9.27%
             
 
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  
    March 31     March 31     December 31  
    2016     2015     2015  
  Shareholders' equity (tangible), per share                        
  Shareholders' equity   $ 2,073,309     $ 2,031,513     $ 2,041,894  
  Less: Goodwill and intangible assets     (531,556 )     (531,672 )     (531,556 )
  Tangible shareholders' equity (numerator)   $ 1,541,753     $ 1,499,841     $ 1,510,338  
                           
  Shares outstanding, end of period (denominator)     173,393       179,098       174,176  
                         
    Shareholders' equity (tangible), per share   $ 8.89     $ 8.37     $ 8.67  
                         
  Return on average common shareholders' equity (tangible)                        
  Net income   $ 38,257     $ 40,036     $ 38,535  
  Plus: Intangible amortization, net of tax     -       85       4  
  Numerator   $ 38,257     $ 40,121     $ 38,539  
                         
  Average shareholders' equity   $ 2,058,799     $ 2,015,963       2,036,769  
  Less: Average goodwill and intangible assets     (531,556 )     (531,732 )     (531,559 )
  Average tangible shareholders' equity (denominator)   $ 1,527,243     $ 1,484,231     $ 1,505,210  
                         
    Return on average common shareholders' equity (tangible), annualized     10.07 %     10.96 %     10.16 %
                         
  Efficiency ratio                        
  Non-interest expense   $ 120,413     $ 118,478     $ 118,439  
  Less: Intangible amortization     -       (130 )     (6 )
  Numerator   $ 120,413     $ 118,348     $ 118,433  
                           
  Net interest income (fully taxable equivalent)   $ 134,026     $ 128,086     $ 132,683  
  Plus: Total Non-interest income     43,137       44,737       45,839  
  Less: Investment securities gains     (947 )     (4,145 )     (776 )
  Denominator   $ 176,216     $ 168,678     $ 177,746  
                         
    Efficiency ratio     68.33 %     70.16 %     66.63 %
                         
  Non-performing assets to tangible common shareholders' equity and allowance for credit losses                        
  Non-performing assets (numerator)   $ 148,129     $ 163,545     $ 155,913  
                         
  Tangible shareholders' equity   $ 1,541,753     $ 1,499,841     $ 1,510,338  
  Plus: Allowance for credit losses     166,065       179,658       171,412  
  Tangible shareholders' equity and allowance for credit losses (denominator)   $ 1,707,818     $ 1,679,499     $ 1,681,750  
                         
    Non-performing assets to tangible common shareholders' equity and allowance for credit losses     8.67 %     9.74 %     9.27 %
                         
  Pre-provision net revenue                        
  Net interest income   $ 129,054     $ 123,581     $ 127,799  
  Non-interest income     43,137       44,737       45,839  
  Less: Investment securities gains     (947 )     (4,145 )     (776 )
  Total revenue   $ 171,244     $ 164,173     $ 172,862  
                           
  Non-interest expense   $ 120,413     $ 118,478     $ 118,439  
                         
    Pre-provision net revenue   $ 50,831     $ 45,695     $ 54,423