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D A T A A S O F M A R C H 3 1 , 2 0 1 8
U N L E S S O T H E R W I S E N O T E D
INVESTOR PRESENTATION
FORWARD-LOOKING STATEMENTS
This presentation 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 relate 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 which has been
filed with the Securities and Exchange Commission (the “SEC”) and is available in the Investor Relations section of the
Corporation’s website (www.fult.com) and on the SEC’s website (www.sec.gov) and in the Corporation’s subsequent
filings with the SEC.
The Corporation uses certain non-GAAP financial measures in this presentation. These non-GAAP financial measures
are reconciled to the most comparable GAAP measures at the end of this presentation.
2
WHY FULTON?
• Risk Management Foundation
• Management Depth and Experience
• Stability of Geographic Markets / Franchise Value
• Strong Capital & Reserves
• Commitment to Enhancing Shareholder Value
• Relationship Banking Strategy / Customer Experience
• Quality Loan Growth / Solid Asset Quality
• Attractive Core Deposit Profile
• Prudent Expense Management
• Balance Sheet Is Positioned for Rising Interest Rates
3
A VALUABLE FRANCHISE
• 243 community banking offices across
the Mid-Atlantic
• Asset size: $19.9 billion
• 3,700+ team members (3,580 FTEs (1))
• Market capitalization: $3.1 billion (2)
4
(1) Average full-time equivalent employees.
(2) Based on shares outstanding and the closing price as of March 31, 2018.
STRONG POSITION IN ATTRACTIVE MARKETS
5
Note: Data as of June 30, 2017 per Federal Deposit Insurance Corporation (FDIC) Summary of Deposits. Household Income Data as of June 30, 2017 per SNL Financial LC.
(1) Median HH Income, 2018 – 2023 Projected Population Change and 2018 – 2023 Projected HH Income Change are weighted by deposits in each MSA.
Median
Deposits Market Market Household (HH)
Metropolitan Statistical Area (MSA) (in millions) Rank Share Income Population HH Income
Lancaster, PA 3,131 1 28.28% 64,827 2.16% 9.70%
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 2,966 14 0.81% 70,516 1.31% 9.81%
Allentown-Bethlehem-Easton, PA-NJ 1,471 4 8.87% 66,384 1.33% 8.45%
New York-Newark-Jersey City, NY-NJ-PA 1,342 60 0.08% 74,466 1.90% 9.82%
Baltimore-Columbia-Towson, MD 997 9 1.38% 77,704 2.51% 7.89%
York-Hanover, PA 861 3 12.17% 63,858 1.50% 6.30%
Harrisburg-Carlisle, PA 791 5 5.74% 63,998 2.20% 7.57%
Lebanon, PA 758 1 34.47% 58,732 2.61% 7.10%
Reading, P 638 7 3.89% 62,208 0.67% 8.75%
Hagerstown-Martinsburg, MD-WV 511 2 14.38% 59,641 3.33% 4.82%
Top 10 Fulton Financial Corporation MSAs (1) 13,466$ 67,389$ 1.84% 8.75%
Total Franchise (1) 15,493$ 67,068$ 1.89% 8.57%
Nationwide 61,045$ 3.50% 8.86%
2018-2023 Projected Change
Name
Position
Years at
Fulton
Years in
Financial
Services
Prior
Experience
E. Philip Wenger Chairman and CEO 38 38 Various roles since joining in 1979
Curtis Myers
President/COO of Fulton
Financial Corporation and
Fulton Bank
27 27 Various roles since joining in 1990
Mark McCollom (1) Senior EVP/CFO 1 31
PwC, Banking and Investment Banking.
Joined Fulton in November 2017.
Meg Mueller
Senior EVP/ Head –
Commercial Banking
21 31 Various roles since joining in 1996
Angela Snyder
Senior EVP/Head –
Consumer Banking
15 31 Various roles since joining in 2002
Angela Sargent Senior EVP/ CIO 25 25 Various roles since joining in 1992
Betsy Chivinski (1) Senior EVP/ CRO 23 35 Various roles since joining in 1994
DEEP EXECUTIVE BENCH WITH CONTINUITY
6
(1) Includes years of service in public accounting as a financial services industry specialist
FIRST QUARTER 2018 HIGHLIGHTS
Net income per diluted share: $0.28 in 1Q18, 47.4% increase from 4Q17 and 12.0% increase from 1Q17. 4Q17
included a $15.6 million, or $0.09 per share, charge related to the re-measurement of net deferred tax assets.
Pre-Provision Net Revenue(1): $62.2 million, 10.4% decrease from 4Q17 and 0.5% increase from 1Q17
Linked Quarter
Loan and Core Deposit Growth: 0.6% increase in average loans, while average demand and savings deposits decreased
4.1%
Net Interest Income & Margin: Net interest income increased 1.3%, reflecting the impact of a 6 basis point increase in
net interest margin
Non-Interest Income(2) & Non-Interest Expense: 16.7% decrease in non-interest income and 1.3% decrease in non-
interest expense
Asset Quality: $2.8 million decrease in provision for credit losses. Overall credit metrics stable to improving.
Year-over-Year
Loan and Core Deposit Growth: 5.4% increase in average loans and 4.5% increase in average demand and savings
deposits
Net Interest Income & Margin: 10.0% increase in net interest income, reflecting the impact of loan growth and a 9
basis point increase in net interest margin
Non-Interest Income(2) & Non-Interest Expense: 0.6% increase in non-interest income and 11.8% increase in non-
interest expense
Asset Quality: $0.8 million decrease in provision for credit losses
7
(1) Non-GAAP based financial measure. Please refer to the calculation and management’s reason for using the measure on the slide titled “Non-GAAP Reconciliation” at the end of this
presentation.
(2) Excluding investment securities gains.
INCOME STATEMENT SUMMARY
8
(1) Includes the impact of the $15.6 million charge for the re-measurement of net deferred tax assets (“Tax Charge”). Refer to slide 28 for additional information.
(2) ROA is return an average assets determined by dividing net income for the period indicated by average assets, annualized.
(3) ROE is return on average shareholders’ equity determined by dividing net income for the period indicated by average shareholders’ equity, annualized.
(4) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Reconciliation” at the end of this presentation.
1Q18 4Q17(1) 1Q17
Net Interest Income 151,318 1,905$ 13,739$
Provision for Credit Losses 3,970 (2,760) (830)
Non-Interest Income 45,856 (9,168) 289
Securities Gains 19 (1,913) (1,087)
Non-Interest Expense 136,661 (1,791) 14,386
Income before Income Taxes 56,562 (4,625) (615)
Income Taxes 7,082 (20,104) (6,715)
Net Income 49,480$ 15,479$ 6,100$
Net income per share (diluted) 0.28$ 0.09$ 0.03$
ROA (2) 1.01% 0.34% 0.09%
ROE (3) 9.02% 2.99% 0.80%
ROE (tangible) (4) 11.85% 3.94% 0.92%
Efficiency ratio (4) 67.5% 3.3% 3.3%
(dollars in thousands, except per-share data)
Change from
Net Income of $49.5 million, 45.5% increase from 4Q17 and 14.1%
increase from 1Q17. 4Q17 included a $15.6 million, or $0.09 per share,
charge related to the re-measurement of net deferred tax assets
Net Interest Income
From 4Q17: Increase of 1.3%, reflecting the impact of a six basis point
increase in net interest margin (NIM)
From 1Q17: Increase of 10.0%, driven by loan growth and the impact of a
nine basis point increase in NIM
Provision for Credit Losses
$4.0 million provision in 1Q18. Overall credit metrics stable to improving.
Non-Interest Income
From 4Q17: 16.7% decrease driven by decreases in commercial loan
interest rate swap fees, debit card and Small Business Administration
income. 4Q17 included a $5.1 million litigation settlement.
From 1Q17: 0.6% increase driven by higher investment management and
trust services income, merchant and cash management fee income,
partially offset by decreases in commercial loan swap fee income.
Non-Interest Expenses
From 4Q17: 1.3% decrease driven by decreases in amortization of tax
credit investments and FDIC insurance expense. Partially offsetting these
decreases, were increases in salaries and benefits, professional fees and
occupancy costs.
From 1Q17: 11.8% increase driven by salaries and benefits, other outside
services, professional fees and FDIC insurance expense
Income Taxes
12.5% effective tax rate (ETR) in 1Q18 vs. 44.4% in 4Q17 and 24.1% in
1Q17. Excluding the Tax Charge, ETR for 4Q17 was 18.9%.
NET INTEREST INCOME AND MARGIN
Net Interest Income & Net Interest Margin
~ $730
million
~ $610
million
$137.6 $141.6
$146.8 $149.4 $151.3
3.26%
3.29% 3.27% 3.29%
3.35%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
1Q17 2Q17 3Q17 4Q17 1Q18
Net Interest Income
Net Interest Margin (Fully-taxable equivalent basis, or FTE)
Average Interest-Earning Assets & Yields
Average Liabilities & Rates
$2.9 $2.9 $3.1 $3.2 $2.9
$14.9 $15.1 $15.4
$15.6 $15.7
3.74% 3.78% 3.80%
3.83% 3.93%
0.00%
2.00%
4.00%
$-
$5.0
$10.0
$15.0
$20.0
1Q17 2Q17 3Q17 4Q17 1Q18
Securities & Other Loans Earning Asset Yield (FTE)
$14.9 $15.1 $15.9
$16.1
$15.4
$1.7 $1.7
$1.4 $1.4
$1.9
0.69% 0.72%
0.77% 0.78% 0.82%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
$-
$5.0
$10.0
$15.0
$20.0
1Q17 2Q17 3Q17 4Q17 1Q18
Deposits Borrow ings Cost of Intere st-bearing Liabilities
($ IN MILLIONS) ($ IN BILLIONS)
($ IN BILLIONS)
9
LOAN PORTFOLIO COMPOSITION & YIELD
10
Note: Loan portfolio composition is based on average balances for the years ended December 31, 2014 to 2017, and quarter ended March 31, 2018.
(1) Presented on a fully-taxable equivalent basis.
$5.1 $5.2
$5.6
$6.2 $6.3
$3.7 $3.9
$4.1
$4.2 $4.3
$1.7
$1.7
$1.7
$1.6 $1.5 $1.4
$1.4
$1.5
$1.8 $2.0
$0.6
$0.7
$0.8
$0.9
$1.0
$0.4
$0.4
$0.4
$0.6
4.21% 4.04% 3.95%
4.07% 4.19%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
2014 2015 2016 2017 Mar 2018
Comm'l Mtg Comm'l Home Equity Res Mtg Construction Consumer/Other FTE loan yield (1)
$14.1
A
ve
ra
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Loa
n
Po
rtf
o
lio
B
al
an
ce
s,
in
b
ill
io
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s
To
tal
Loa
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Po
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o
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Y
ie
ld
(1
)
Average loans for the first quarter of 2018 are up 5.4% compared to the first quarter of 2017.
$12.9
$13.3
$15.2
$15.7
DEPOSIT PORTFOLIO COMPOSITION
11
Note: Deposit composition is based on average balances
Average demand and savings are up 4.5% compared to the first quarter of 2017; total average deposits are up
3.6%.
17%
28%
26%
20%
9%
Time Deposits Non-Int DDA Int DDA
Money Mkt Savings
Three Months Ended March 31, 2018
19%
29%
24%
18%
10%
28%
Time Deposits Non-Int DDA Int DDA
Wholesale Money Mkt Savings
Year Ended December 31, 2016
18%
29% 24%
19%
10%
Time Deposits Non-Int DDA Int DDA
Money Mkt Savings
Three Months Ended March 31, 2017
Note: Deposit composition is based on average balances for the periods indicated. Average brokered deposits were $74.0 million and $0 as of the three months ended March
31, 2018 and 2017, respectively; the percentage balance in both comparative periods was 0%.
1) A variety of interest rate scenarios are used to measure the effects of sudden and gradual movements upward and downward in the yield curve. These results are
compared to the results obtained in a flat or unchanged interest rate scenario. Simulation of net interest income is used primarily to measure the Corporation’s short-
term earnings exposure to rate movements. The Corporation’s policy limits the potential exposure of net interest income, in a non-parallel instantaneous shock, to
10% of the base case net interest income for a 100 basis point shock in interest rates, 15% for a 200 basis point shock and 20% for a 300 basis point shock. A "shock" is
an immediate upward or downward movement of interest rates. The shocks do not take into account changes in customer behavior that could result in changes to mix
and/or volumes in the balance sheet, nor do they account for competitive pricing over the forward 12-month period. These results include the effect of implicit and
explicit floors that limit further reduction in interest rates.
2) The actual impact of changes in interest rates on the Corporation’s net interest income may differ materially from the anticipated amounts presented above.
Rate Annual Change in % Change in
Change (1) Net Interest Income (2) Net Interest Income (2)
+300 bps $ 84.5 million 13.1%
+200 bps $ 57.8 million 9.0%
+100 bps $ 29.0 million 4.5%
- 100 bps $ (49.0) million -7.6%
POSITIONED FOR RISING INTEREST RATE ENVIRONMENT
MARCH 31, 2018
12
ASSET QUALITY
($ IN MILLIONS)
13
Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans
131% 129% 128% 131% 131%
1.15% 1.14% 1.13% 1.12% 1.12%
0.00%
1.00%
2.00%
3.00%
0.0%
25.0%
50.0%
75.0%
100.0%
125.0%
150.0%
1Q17 2Q17 3Q17 4Q17 1Q18
Allowance/NPLs Allowance/Loans
Net Charge-offs (NCOs) and NCOs to Average Loans Allowance for Credit Losses (Allowance) to NPLs & Loans
$3.5
$4.3
$5.3 $5.4
$4.0
0.09%
0.11% 0.14% 0.14%
0.10%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
$-
$2.0
$4.0
$6.0
1Q17 2Q17 3Q17 4Q17 1 8
NCOs NCOs/Average Loans (annualized)
$4.8
$6.7
$5.1
$6.7
$4.0
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
1Q17 2Q17 3Q17 4Q17 1Q18
$131.5 $135.7 $136.5 $134.8 $134.6
0.88% 0.88% 0.88% 0.85% 0.86%
0.00%
0.50%
1.00%
1.50%
2.00%
$0.0
$40.0
$80.0
$120.0
$160.0
1Q17 2Q17 3Q17 4Q17 1Q18
NPL NPLs/Loans
NON-INTEREST INCOME
($ IN MILLIONS)
Non-Interest Income, Excluding Securities Gains
~ $730
million
~ $610
million
$45.6
$50.9
$47.4
$55.0
$45.9
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
1Q17 2Q17 3Q17 4Q17 1Q18
Mortgage Banking Income & Spreads
Other Non-Interest Income
1.62%
1.44%
1.62%
1.36%
1.11%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
1Q17 2Q17(2) 3Q17 4Q17 1Q18
Gains on Sales Servicing Income Spread on Sales (1)
$4.6
$6.1
$4.8
$4.4
$4.2
$-
$10.0
$20.0
$30.0
$40.0
50.0
1Q17 2Q17 3Q17 4Q17 1Q18
Invt Mgmt & Trust Srvs Deposit Srv Chgs Oth Srv Chgs Other
$41.0
$44.8 $42.6
$50.6
$41.7
(1) Represents Gains on Sales divided by total new commitments to originate residential mortgage
loans for customers.
(2) Servicing income includes $1.3 million mortgage servicing rights recovery in 2Q17.
14
NON-INTEREST EXPENSES
($ IN MILLIONS)
Non-Interest Expense & Efficiency Ratio (1)
~ $730
million
~ $610
million
$122.3
$132.7 $132.2
$138.5
$136.7
64.2%
65.3%
64.3% 64.2%
67.5%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
1Q17 2Q17 3Q17 4Q17 1Q18
Salaries and Employee Benefits & Staffing
Other Non-Interest Expenses
3,520
3,580
3,000
3,500
4,000
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
1Q17 2Q17 3Q17 4Q17 1Q18
Total Salarie s Employee Be nefits Average Full-time Equivale nt Employe es
$69.2
$74.5 $72.9 $73.5
$75.8
$-
$10.0
$20.0
$30.0
$40.0
$5 .0
$6 .0
$70.0
1Q17 2Q17 3Q17 4Q17 1Q18
Occp & Equip Data Processing & Software Outside Srvs Other
$53.1
$58.2 $59.3
$65.0
$60.9
(1) Non-GAAP based financial measure. Please refer to the calculation and
management’s reasons for using this measure on the slide titled “Non-
GAAP Reconciliation” at the end of this presentation.
15
PROFITABILITY & CAPITAL
16
ROA(1) ROE and ROE (tangible)(2)
Tangible Common Equity Ratio(2) Net Income Per Diluted Share
8.22% 8.36%
8.76%
6.03%
9.02%
10.93% 11.06%
11.52%
7.91%
11.85%
0.00%
4.00%
8.00%
12.00%
1Q17 2Q17 3Q17 4Q17(3) 1Q18
ROE ROE (tangible)
0.92% 0.94%
0.98%
0.67%
1.01%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1Q17 2Q17 3Q17 4Q17(3) 1Q18
(1) ROA is return an average assets determined by dividing net income for the period indicated by average assets, annualized.
(2) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Reconciliation” at the end of this presentation.
(3) 4Q17 reflects the impact of the $15.6 million Tax Charge.
8.7% 8.7% 8.7% 8.7% 8.8
0.0%
4.
8.
12.0
1Q17 2Q17 3Q17 4Q17 1Q18
$0.25
$0.26
$0.28
$0.19
$0.28
$-
$0.05
$0.10
$ .15
$0.20
$0.25
$0.30
1Q17 2Q17 3Q17 4Q17(3) 1Q18
2018 OUTLOOK
Changes from original outlook have been underlined.
• Loans & Deposits: Average annual loan and core deposit growth rates in the mid single digits
• Asset Quality: Provision driven primarily by loan growth
• Non-Interest Income(1): Low single-digit growth
• Non-Interest Expense: Including amortization of tax free investments, low single-digit growth
rate
• Capital: Focus on utilizing capital to support loan growth and provide appropriate returns to
shareholders
• Net Interest Margin: For the full year 2018, the outlook for NIM is an increase of 5 to 10 basis
points over 2017, including the impact of tax reform on tax equivalent net interest income.
• Effective Tax Rate: Anticipated to range between 11% to 14% depending on level of tax credits
realized
17
(1) Excluding securities gains and the litigation settlement of $5.1 million recognized in the fourth quarter of 2017
APPENDIX
AVERAGE LOAN PORTFOLIO AND YIELDS
19
Note: Three months ended March 31, 2018 is presented on a fully taxable-equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances.
Prior periods are presented on a fully taxable-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.
Average loan portfolio and yield are for the three months ended March 31, 2018, December 31, 2017 and March 31, 2017.
Balance Yield 4Q 2017 1Q 2017 4Q 2017 1Q 2017
Comm'l Mort 6,306$ 4.16% 73$ 267$ 0.07% 0.18%
Commercial 4,289 4.15% 26 84 0.10% 0.26%
Resid Mort 1,958 3.85% 32 320 0.02% 0.09%
Home Equity 1,539 4.65% (22) (74) 0.13% 0.47%
Construction 984 4.22% (20) 143 (0.05%) 0.25%
Consumer 316 4.67% 4 32 (0.08%) (0.59%)
Leasing 261 4.53% 8 28 0.05% 0.10%
Other 8 - % - 4 - % - %
-
Total Loans 15,661$ 4.19% 101$ 804$ 0.05% 0.19%
(dollars in millions)
Balance From1Q 2018
Change in
Yield From
AVERAGE CUSTOMER FUNDING AND RATES
20
Balance Rate 4Q 2017 1Q 2017 4Q 2017 1Q 2017
Nonint DDA 4,246$ - % (208)$ (56)$ - % - %
Int DDA 3,959 0.41% (79) 308 0.01% 0.16%
Savings/MMDA 4,494 0.39% (258) 300 0.01% 0.18%
Brokered Deposits 74 1.51% (31) 74 0.24% 1.51%
Time deposits 2,647 1.20% (60) (92) 0.02% 0.11%
Total Deposits 15,420 0.43% (636) 534 0.01% 0.12%
Cash Mgt 484 0.41% 108 205 0.07% 0.33%
Total Customer Funding 15,904$ 0.43% (528)$ 739$ 0.01% 0.11%
(dollars in millions)
Balance From1Q 2018
Change In
Rate From
Note: Average customer funding and the rate are for the three months ended March 31, 2018, December 31, 2017, and March 31, 2017.
LOAN DISTRIBUTION BY STATE
AS OF MARCH 31, 2018
21
Comm'l Consumer
Comm'l Mortgage Constr. Res. Mtg. & Other Total
(in thousands)
Pennsylvania 3,176,454$ 3,305,385$ 471,864$ 730,699$ 1,271,875$ 8,956,277$
New Jersey 541,364 1,444,925 180,339 268,378 402,727 2,837,733
Maryland 340,814 693,090 159,478 439,473 276,677 1,909,532
Virginia 108,865 532,932 79,783 454,068 59,022 1,234,670
Delaware 131,575 356,176 84,667 83,906 101,748 758,072
4,299,072$ 6,332,508$ 976,131$ 1,976,524$ 2,112,049$ 15,696,284$
NON-PERFORMING LOANS(1)
AS OF MARCH 31, 2018
22
Comm'l Consumer Ending Loans NPLs/Loans
Comm'l Mortgage Constr. Res. Mtg. & Other Total NPLs by State by State
Pennsylvania 33,582$ 13,689$ 4,113$ 7,885$ 5,711$ 64,980$ 8,956,277$ 0.73%
New Jersey 6,359 13,147 1,763 4,648 4,759 30,676 2,837,733 1.08%
Maryland 5,707 905 33 827 1,117 8,589 1,909,532 0.45%
Virginia 5,265 2,735 1,567 5,815 702 16,084 1,234,670 1.30%
Delaware 4,002 5,707 3,455 994 155 14,313 758,072 1.89%
54,915$ 36,183$ 10,931$ 20,169$ 12,444$ 134,642$ 15,696,284$ 0.86%
Ending Loans 4,299,072$ 6,332,508$ 976,131$ 1,976,524$ 2,112,049$ 15,696,284$
Non-performing Loan % (3/31/18) 1.28% 0.57% 1.12% 1.02% 0.59% 0.86%
Non-performing Loan % (3/31/17) 1.05% 0.60% 1.53% 1.42% 0.65% 0.88%
(dollars in thousands)
(1) Includes loans ≥ 90 days past due and accruing, and non-accrual loans.
NET CHARGE-OFFS (RECOVERIES)
THREE MONTHS ENDED MARCH 31, 2018
23
Annualized
Comm'l Consumer Average Loans Charge-Offs to
Comm'l Mortgage Constr. Res. Mtg. & Other Total by State Average Loans
Pennsylvania 2,707$ 142$ 148$ 26$ 481$ 3,504$ 8,967,781$ 0.16%
New Jersey 204 (147) (83) 47 465 486 2,830,017 0.07%
Maryland 19 (1) (213) 18 250 73 1,887,274 0.02%
Virginia - - - (30) - (30) 1,220,704 -0.01%
Delaware - (6) - (6) 14 2 755,256 0.00%
2,930$ (12)$ (148)$ 55$ 1,210$ 4,035$ 15,661,032$ 0.10%
Average Loans 4,288,634$ 6,305,821$ 984,242$ 1,958,505$ 2,123,830$ 15,661,032$
Annualized Net Charge-offs
(Recoveries) to Average Loans 0.27% 0.00% (0.06%) 0.01% 0.23% 0.10%
(dollars in thousands)
INVESTMENT PORTFOLIO
MARCH 31, 2018
24
Weighted Avg.
Remaining
Life Amortized Unrealized Estimated
(in years) Cost Gain (Loss) Fair Value
(dollars in millions)
Residential mortgage-backed securities 5.0 1,085$ (31)$ 1,054$
Collateralized mortgage obligations 3.7 696 (16) 680
State and municipal securities 8.0 414 (8) 406
Commercial mortgage-backed securities 3.7 231 (4) 227
Auction rate securities 5.0 107 (4) 103
Corporate debt securities 9.1 101 1 102
U.S. Government sponsored agency securities 5.4 21 - 21
Total Investments 5.7 2,655$ (62)$ 2,593$
NON-INTEREST INCOME
(EXCLUDING SECURITIES GAINS)
25
1Q 2018 4Q 2017 1Q 2017 4Q 2017 1Q 2017
Other service charges and fees:
Merchant fees 4,115$ 4,308$ 3,607$ (193)$ 508$
Debit card income 2,817 3,526 2,665 (709) 152
Commercial loan interest rate swap fees 1,291 2,914 3,058 (1,623) (1,767)
Letter of credit fees 992 1,037 1,200 (45) (208)
Foreign exchange incomce 533 510 334 23 199
Other 1,671 1,534 1,573 137 98
Total 11,419 13,829 12,437 (2,410) (1,018)
Service charges on deposit accounts:
Overdraft fees 5,145 5,609 5,469 (464) (324)
Cash management fees 4,317 3,669 3,537 648 780
Other 2,500 3,392 3,394 (892) (894)
Total 11,962 12,670 12,400 (708) (438)
Investment management and trust services 12,871 13,152 11,808 (281) 1,063
Mortgage banking income 4,193 4,386 4,596 (193) (403)
Other:
Credit card income 2,816 2,778 2,648 38 168
Small business administration lending income 357 1,355 429 (998) (72)
Other income 2,238 6,854 1,249 (4,616) 989
Total 5,411 10,987 4,326 (5,576) 1,085
Total Non-Interest Income 45,856$ 55,024$ 45,567$ (9,168)$ 289$
(in thousands)
Change From
NON-INTEREST EXPENSE
26
1Q 2018 4Q 2017 1Q 2017 4Q 2017 1Q 2017
Salaries and employee benefits 75,768$ 73,504$ 69,236$ 2,264$ 6,532$
Net occupancy expense 13,632 12,549 12,663 1,083 969
Data processing and software 10,473 10,401 8,979 72 1,494
Other outside services 8,124 7,665 5,546 459 2,578
Professional fees 4,816 3,632 2,737 1,184 2,079
Equipment expense 3,534 3,244 3,359 290 175
FDIC insurance expense 2,953 3,618 2,058 (665) 895
Marketing 2,250 1,725 1,986 525 264
Amortization of tax credit investments 1,637 3,376 998 (1,739) 639
Other expenses 13,474 18,738 14,713 (5,264) (1,239)
Total Non-Interest Expenses 136,661$ 138,452$ 122,275$ (1,791)$ 14,386$
(in thousands)
Change From
A SUSTAINABLE PAYOUT
$0.32
$0.34
$0.38
$0.41
$0.47
$0.12
2.44%
2.75%
2.92%
2.18%
2.63%
2.70%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
$0.00
$0.04
$0.08
$0.12
$0.16
$0.20
$0.24
$0.28
$0.32
$0.36
$0.40
$0.44
$0.48
$0.52
2013 2014 2015 2016 2017 1Q18
Cash Dividend Yield(1)
27
(1) Annual dividend per share (1Q18 annualized) divided by period-end stock price.
(2) Compounded annual growth rate from December 31, 2013 to annualized March 31, 2018.
Cash Dividend Per Common Share & Yield
CAGR (2) = 8.4%
Cas
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(1
)
THE IMPACT OF TAX REFORM
During the fourth quarter of 2017, the Corporation recorded a $15.6 million tax charge to income taxes related to
the re-measurement of net deferred tax assets as a result of a new federal tax legislation enacted in December
2017. In the following table, the “As Adjusted” column presents Income Taxes, Net Income, Net Income Per Share
(Diluted) and selected financial ratios adjusted to exclude this charge:
28
(1) The information presented in the “As Adjusted” column and ROE (tangible) are non-GAAP based financial measures. Please refer to the calculation and management’s reasons for
using these measures on the slide titled “Non-GAAP Reconciliation” at the end of this presentation.
Fourth Quarter 2017
As Reported Adjustment As Adjusted(1)
Income before Income Taxes 61,187 - 61,187
Income Taxes 27,186 (15,634) 11,552
Net Income 34,001$ 15,634$ 49,635$
Net incom per share (diluted) $0.19 0.09$ 0.28$
ROA 0.67% 0.31% 0.98%
ROE 6.03% 2.77% 8.80%
ROE (tangible) (1) 7.91% 3.64% 11.55%
(dollars in thousands, except per-share data)
NON-GAAP RECONCILIATION
Note: The Corporation has presented the following non-GAAP (Generally Accepted Accounting Principles) financial measures because it believes
that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition.
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. 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.
29
Mar 31 Jun 30 Sep 30 Dec 31 Mar 31
2017 2017 2017 2017 2018
Efficiency ratio
Non-interest expense 122,275$ 132,695$ 132,157$ 138,452$ 136,661$
Less: Amortization of tax credit investments (998) (3,151) (3,503) (3,376) (1,637)
Non-interest expense (numerator) 121,277$ 129,544$ 128,654$ 135,076$ 135,024$
Net interest income (fully taxable-equivalent) 143,243$ 147,349$ 152,721$ 155,253$ 154,232$
Plus: Total Non-interest income 46,673 52,371 51,974 56,956 45,875
Less: Investment securities gains (1,106) (1,436) (4,597) (1,932) (19)
Net interest income (denominator) 188,810$ 198,284$ 200,098$ 210,277$ 200,088$
Efficiency ratio 64.2% 65.3% 64.3% 64.2% 67.5%
Mar 31 Jun 30 Sep 30 Dec 31 Mar 31
2017 2017 2017 2017 2018
Return on Average Shareholders' Equity (ROE) (Tangible)
Net ncom ( umerator) 43,380$ 45,467$ 48,905$ 34,001$ 49,480$
Average shareholders' equity 2,140,547$ 2,181,189$ 2,215,389$ 2,237,031$ 2,224,615$
Less: Average goodwill and intangible assets (531,556) (531,556) (531,556) (531,556) (531,556)
Average tangible shareholders' equity (denominator) 1,608,991$ 1,649,633$ 1,683,833$ 1,705,475$ 1,693,059$
Return on average shareholders' equity (tangible), annualized 10.93% 11.06% 11.52% 7.91% 11.85%
Three Months Ended
Three Months Ended
NON-GAAP RECONCILIATION (CONTINUED)
30
Mar 31 Jun 30 Sep 30 Dec 31 Mar 31
2017 2017 2017 2017 2018
Tangible Common Equity to Tangible Assets (TCE Ratio)
Shareholders' equity 2,154,683$ 2,191,770$ 2,225,786$ 2,229,857$ 2,235,493$
Less: Intangible assets (531,556) (531,556) (531,556) (531,556) (531,556)
Tangible shareholders' equity (numerator) 1,623,127$ 1,660,214$ 1,694,230$ 1,698,301$ 1,703,937$
Total assets 19,178,576$ 19,647,435$ 20,062,860$ 20,036,905$ 19,948,941$
Less: Intangible assets (531,556) (531,556) (531,556) (531,556) (531,556)
Total tangible assets (denominator) 18,647,020$ 19,115,879$ 19,531,304$ 19,505,349$ 19,417,385$
Tangible Common Equity to Tangible Assets 8.7% 8.7% 8.7% 8.7% 8.8%
Mar 31 Jun 30 Sep 30 Dec 31 Mar 31
2017 2017 2017 2017 2018
Pre-Provision Net Revenue
Net interest income 137,579$ 141,563$ 146,809$ 149,413$ 151,318$
Non-interest income 46,673 52,371 51,974 56,956 45,875
Less: Investment securities gains (1,106) (1,436) (4,597) (1,932) (19)
Total Revenue 183,146 192,498 194,186 204,437 197,174
on-interest expense 122,275 132,695 132,157 138,452 136,661
Less: Amortization of tax credit investments (998) (3,151) (3,503) (3,376) (1,637)
121,277 129,544 128,654 135,076 135,024
Pre-Provision Net Revenue 61,869$ 62,954$ 65,532$ 69,361$ 62,150$
Three Months Ended
(dollars in thousands)
(in thousands)
31
NON-GAAP RECONCILIATION (CONTINUED)
T hree M o nths Ended
D ec 31,
2017
Diluted earnings per share
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 goodw ill and intangible assets (531,556)
Average tangible shareholders' equity (denominator) 1,705,475$
Return on average shareholders' equity (tangible), annualized 11.55%
Reconciliation of Net Income; Net Income per share, diluted; and Selected Financial Ratios, adjusted to exclude the charge recognized in the fourth
quarter of 2017 related to the re-measurement of net deferred tax assets:
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