Fulton Financial (FULT) 8-K Results of Operations and Financial Condition

Exhibit 99.2
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
																	% Change from
		December 31			September 30			June 30			March 31			December 31			September 30		December 31
		2017			2017			2017			2017			2016			2017		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			—	%	—	%
	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			—	%	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	)%	—	%
	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			—			—	%	—	%
	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		December 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 estimated 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							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	$	15,560,185			$	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%		—			—			—	%
	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 tax-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
		Dec 31				Sep 30			Jun 30		Mar 31			Dec 31			Sep 30		Dec 31
		2017				2017			2017		2017			2016			2017		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	%	100.0		%
	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	)%	100.0		%
	Total Short-term Borrowings	$	391,284			$	402,341		$	633,102	$	712,497		$	308,094		(2.7	)%	27.0		%

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Year Ended December 31
		2017								2016
		Average								Average
		Balance			Interest (1)			Yield/Rate		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	%	—			—			—	%
	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 tax-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			Sep 30			Jun 30			Mar 31			Dec 31			Dec 31
		2017			2017			2017			2017			2016			2017			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	—			(2,744		)	(774		)	(247		)	—			(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 recovered (charged off)		(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.

DELINQUENCY RATES, BY TYPE:
		Total Delinquency
		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
		2017		2017		2017		2017		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		Sep 30		Jun 30		Mar 31		Dec 31
		2017		2017		2017		2017		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 GAAP TO NON-GAAP MEASURES (UNAUDITED)
in thousands, except per share data and percentages
Explanatory note:	This press release contains certain 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 quarterly 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
		Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Dec 31			Dec 31
		2017			2017			2017			2017			2016			2017			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 common 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 common 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 common 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 common 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, as adjusted		$	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 estimated re-measurement of net deferred tax assets:
Diluted earnings per share
Net income	$	34,001		$	171,753
Plus: Estimated 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: Estimated 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: Estimated 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: Estimated 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		%