FULTON FINANCIAL CORP - FORM 8-K - EX-99.2 - April 21, 2020

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8-K - 8-K - FULTON FINANCIAL CORPfult-20200421.htm
EX-99.3 - EX-99.3 - FULTON FINANCIAL CORPa33120earningsccslidesfi.htm
EX-99.1 - EX-99.1 - FULTON FINANCIAL CORPexhibit99133120.htm


FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
in thousands, except per-share data and percentages
Three Months Ended
Mar 31Dec 31Sep 30Jun 30Mar 31
20202019201920192019
Ending Balances
Investments$3,141,440  $2,867,378  $2,705,610  $2,853,358  $2,748,249  
Loans, net of unearned income17,077,403  16,837,526  16,686,866  16,368,458  16,262,633  
Total assets22,929,859  21,886,040  21,703,618  21,308,670  20,974,649  
Deposits17,365,026  17,393,913  17,342,717  16,388,895  16,377,978  
Shareholders' equity2,285,748  2,342,176  2,324,016  2,308,798  2,301,019  
Average Balances
Investments$3,071,828  $2,830,999  $2,829,672  $2,790,392  $2,699,130  
Loans, net of unearned income16,860,067  16,768,057  16,436,507  16,316,076  16,194,375  
Total assets22,252,099  21,812,438  21,457,800  21,057,030  20,690,365  
Deposits17,121,427  17,449,565  16,950,667  16,375,457  16,275,633  
Shareholders' equity2,337,016  2,341,397  2,315,585  2,301,258  2,265,097  
Income Statement
Net interest income$160,746  $159,270  $161,260  $164,544  $163,315  
Provision for credit losses44,030  20,530  2,170  5,025  5,100  
Non-interest income54,644  55,281  59,813  54,316  46,751  
Non-interest expense142,552  138,974  146,770  144,168  137,824  
Income before taxes28,808  55,047  72,133  69,667  67,142  
Net income26,047  47,789  62,108  59,780  56,663  
Pre-provision net revenue(1)
74,374  77,224  76,741  76,114  73,775  
Per Share
Net income (basic)$0.16  $0.29  $0.38  $0.36  $0.33  
Net income (diluted)$0.16  $0.29  $0.37  $0.35  $0.33  
Cash dividends$0.13  $0.17  $0.13  $0.13  $0.13  
Tangible common equity(1)
10.8411.0010.9110.6310.39
Weighted average shares (basic)163,475  164,135  165,324  168,343  169,884  
Weighted average shares (diluted)164,417  165,039  166,126  169,168  170,909  
Asset Quality(2)
Net charge-offs (recoveries) to average loans (annualized)0.26 %0.65 %0.15 %(0.04)%0.10 %
Non-performing loans to total loans0.82 %0.84 %0.81 %0.90 %0.85 %
Non-performing assets to total assets0.64 %0.68 %0.66 %0.73 %0.70 %
ACL - loans(3) to loans outstanding
1.40 %0.97 %1.00 %1.04 %1.00 %
ACL - loans(3) to non-performing loans
170 %116 %122 %115 %117 %
Non-performing assets to tangible shareholders' equity
     and ACL - loans (1)(3)
7.37 %7.51 %7.35 %7.97 %7.66 %


Profitability
Return on average assets0.47 %0.87 %1.15 %1.14 %1.11 %
Return on average shareholders' equity4.48 %8.10 %10.64 %10.42 %10.15 %
Return on average shareholders' equity (tangible)(1)
5.84 %10.52 %14.03 %13.60 %13.28 %
Net interest margin3.21 %3.22 %3.31 %3.44 %3.49 %
Efficiency ratio(1)
64.5 %63.1 %63.6 %64.2 %63.9 %
Capital Ratios
Tangible common equity ratio(1)
7.8 %8.5 %8.5 %8.5 %8.6 %
Tier 1 leverage ratio(4)
7.9 %8.4 %8.5 %8.7 %8.9 %
Common equity Tier 1 capital ratio(4)
9.4 %9.7 %9.6 %10.0 %10.2 %
Tier 1 capital ratio(4)
9.4 %9.7 %9.6 %10.0 %10.2 %
Total risk-based capital ratio(4)
13.8 %11.8 %12.0 %12.4 %12.6 %
(1) Please refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this document.
(2) Effective January 1, 2020, Fulton adopted Accounting Standards Update 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” referred to as the current expected credit loss model (“CECL”). This accounting standard requires that credit losses for financial assets and off-balance-sheet ("OBS") credit exposures be measured based on expected credit losses, rather than on incurred credit losses as in prior periods.
(3) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.
(4) Regulatory capital ratios as of March 31, 2020 are preliminary and prior periods are actual.




Exhibit 99.2
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
 % Change from
Mar 31Dec 31Sep 30Jun 30Mar 31Dec 31Mar 31
2020201920192019201920192019
ASSETS
Cash and due from banks$181,777  $132,283  $120,671  $107,091  $115,884  37.4 %56.9 %
Other interest-earning assets793,572  482,930  572,499  488,968  411,037  64.3 %93.1 %
Loans held for sale40,645  37,828  33,945  45,754  27,768  7.4 %46.4 %
Investment securities3,141,440  2,867,378  2,705,610  2,853,358  2,748,249  9.6 %14.3 %
Loans, net of unearned income17,077,403  16,837,526  16,686,866  16,368,458  16,262,633  1.4 %5.0 %
ACL - loans, net of unearned income(1)
(238,508) (163,622) (166,135) (170,233) (162,109) 45.8 %47.1 %
     Net loans16,838,895  16,673,904  16,520,731  16,198,225  16,100,524  1.0 %4.6 %
Premises and equipment236,908  240,046  237,344  243,300  239,004  (1.3)%(0.9)%
Accrued interest receivable59,365  60,898  60,447  62,984  62,207  (2.5)%(4.6)%
Goodwill and intangible assets535,171  535,303  534,178  535,249  535,356  — %— %
Other assets1,102,086  855,470  918,193  773,741  734,620  28.8 %50.0 %
    Total Assets$22,929,859  $21,886,040  $21,703,618  $21,308,670  $20,974,649  4.8 %9.3 %
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits$17,365,026  $17,393,913  $17,342,717  $16,388,895  $16,377,978  (0.2)%6.0 %
Short-term borrowings1,386,808  883,241  832,860  1,188,390  829,016  57.0 %67.3 %
Other liabilities513,811  384,941  477,311  435,171  401,324  33.5 %28.0 %
FHLB advances and long-term debt1,378,466  881,769  726,714  987,416  1,065,312  56.3 %29.4 %
    Total Liabilities20,644,111  19,543,864  19,379,602  18,999,872  18,673,630  5.6 %10.6 %
Shareholders' equity2,285,748  2,342,176  2,324,016  2,308,798  2,301,019  (2.4)%(0.7)%
    Total Liabilities and Shareholders' Equity$22,929,859  $21,886,040  $21,703,618  $21,308,670  $20,974,649  4.8 %9.3 %
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage$6,895,069  $6,700,776  $6,604,634  $6,497,973  $6,428,688  2.9 %7.3 %
Commercial and industrial4,451,239  4,446,701  4,494,496  4,365,248  4,429,538  0.1 %0.5 %
Real estate - residential mortgage2,718,290  2,641,465  2,570,793  2,451,966  2,313,908  2.9 %17.5 %
Real estate - home equity1,292,677  1,314,944  1,346,115  1,386,974  1,413,500  (1.7)%(8.5)%
Real estate - construction947,768  971,079  913,644  922,547  953,087  (2.4)%(0.6)%
Consumer468,172  463,164  464,213  452,874  433,545  1.1 %8.0 %
Equipment lease financing and other304,188  299,397  292,971  290,876  290,367  1.6 %4.8 %
Total Loans, net of unearned income$17,077,403  $16,837,526  $16,686,866  $16,368,458  $16,262,633  1.4 %5.0 %
Deposits, by type:
Noninterest-bearing demand$4,531,872  $4,453,324  $4,240,478  $4,226,404  $4,255,043  1.8 %6.5 %
Interest-bearing demand4,724,520  4,720,188  4,771,109  4,083,615  4,207,442  0.1 %12.3 %
Savings and money market accounts5,092,865  5,153,941  5,094,387  4,938,998  4,907,346  (1.2)%3.8 %
Total demand and savings14,349,257  14,327,453  14,105,974  13,249,017  13,369,831  0.2 %7.3 %
Brokered deposits313,337  264,531  256,870  246,116  251,395  18.5 %24.6 %
Time deposits2,702,432  2,801,929  2,979,873  2,893,762  2,756,752  (3.6)%(2.0)%
Total Deposits$17,365,026  $17,393,913  $17,342,717  $16,388,895  $16,377,978  (0.2)%6.0 %
Short-term borrowings, by type:
Customer repurchase agreements$52,919  $56,707  $58,853  $56,496  $54,440  (6.7)%(2.8)%
Customer short-term promissory notes408,889  326,534  279,007  281,894  299,576  25.2 %36.5 %
Short-term FHLB advances725,000  500,000  475,000  650,000  475,000  45.0 %52.6 %
Federal funds purchased200,000  —  20,000  200,000  —  N/M  N/M  
Total Short-term Borrowings$1,386,808  $883,241  $832,860  $1,188,390  $829,016  57.0 %67.3 %
N/M - Not meaningful
(1) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.




FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands
Three Months Ended % Change from
Mar 31Dec 31Sep 30Jun 30Mar 31Dec 31Mar 31
2020201920192019201920192019
Interest Income:
Interest income$199,378  $202,159  $208,413  $210,034  $204,700  (1.4)%(2.6)%
Interest expense38,632  42,889  47,153  45,490  41,385  (9.9)%(6.7)%
    Net Interest Income160,746  159,270  161,260  164,544  163,315  0.9 %(1.6)%
Provision for credit losses44,030  20,530  2,170  5,025  5,100  114.5 %N/M  
    Net Interest Income after Provision116,716  138,740  159,090  159,519  158,215  (15.9)%(26.2)%
Non-Interest Income:
Wealth management15,055  14,419  13,867  14,153  13,239  4.4 %13.7 %
Mortgage banking 6,234  5,076  6,658  6,593  4,772  22.8 %30.6 %
Consumer banking income:
  Card4,685  4,991  5,791  5,047  4,686  (6.1)%— %
  Overdraft 4,058  4,750  4,682  4,413  4,104  (14.6)%(1.1)%
  Other consumer banking 2,496  2,688  2,860  2,907  2,587  (7.1)%(3.5)%
     Total consumer banking11,239  12,429  13,333  12,367  11,377  (9.6)%(1.2)%
Commercial banking income:
   Merchant and card 5,624  5,841  6,166  6,512  5,558  (3.7)%1.2 %
   Cash management 4,742  4,697  4,696  4,638  4,361  1.0 %8.7 %
Capital markets5,075  5,939  4,448  4,053  2,515  (14.5)%101.8 %
   Other commercial banking 2,978  3,664  3,478  3,815  2,816  (18.7)%5.8 %
     Total commercial banking 18,419  20,141  18,788  19,018  15,250  (8.5)%20.8 %
Other3,651  3,216  2,675  2,009  2,048  13.5 %78.3 %
     Non-interest income before investment securities gains 54,598  55,281  55,321  54,140  46,686  (1.2)%16.9 %
Investment securities gains, net46  —  4,492  176  65  N/M  (29.2)%
    Total Non-Interest Income54,644  55,281  59,813  54,316  46,751  (1.2)%16.9 %
Non-Interest Expense:
Salaries and employee benefits80,228  76,975  78,211  78,991  77,757  4.2 %3.2 %
Net occupancy13,486  13,080  12,368  14,469  12,909  3.1 %4.5 %
Other outside services7,881  8,215  12,163  11,259  8,352  (4.1)%(5.6)%
Data processing and software11,645  11,468  11,590  11,268  10,353  1.5 %12.5 %
Equipment 3,418  3,475  3,459  3,299  3,342  (1.6)%2.3 %
Professional fees4,202  2,873  3,331  2,970  3,960  46.3 %6.1 %
Marketing1,579  1,503  3,322  2,863  2,160  5.1 %(26.9)%
Amortization of tax credit investments1,450  1,505  1,533  1,492  1,491  (3.7)%(2.7)%
FDIC insurance2,808  2,177  239  2,755  2,609  29.0 %7.6 %
Intangible amortization132  142  1,071  107  107  (7.0)%23.4 %
Prepayment penalty on FHLB advances—  —  4,326  —  —  — %— %
Other15,723  17,561  15,157  14,695  14,784  (10.5)%6.4 %
    Total Non-Interest Expense142,552  138,974  146,770  144,168  137,824  2.6 %3.4 %
    Income Before Income Taxes28,808  55,047  72,133  69,667  67,142  (47.7)%(57.1)%
Income tax expense2,761  7,258  10,025  9,887  10,479  (62.0)%(73.7)%
    Net Income$26,047  $47,789  $62,108  $59,780  $56,663  (45.5)%(54.0)%
PER SHARE:
Net income:
    Basic$0.16  $0.29  $0.38  $0.36  $0.33  (44.8)%(51.5)%
    Diluted0.16  0.29  0.37  0.35  0.33  (44.8)%(51.5)%
Cash dividends0.13  0.17  0.13  0.13  0.13  (23.5)%— %
Weighted average shares (basic)163,475  164,135  165,324  168,343  169,884  (0.4)%(3.8)%
Weighted average shares (diluted)164,417  165,039  166,126  169,168  170,909  (0.4)%(3.8)%
N/M - not meaningful





FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
 Three Months Ended
March 31, 2020December 31, 2019March 31, 2019
AverageYield/AverageYield/AverageYield/
BalanceInterest (1)RateBalanceInterest (1)RateBalanceInterest (1)Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income$16,860,067  $177,496  4.23%$16,768,057  $182,024  4.31%$16,194,375  $186,122  4.65%
Taxable investment securities2,284,457  16,294  2.85%2,198,252  15,621  2.84%2,285,724  15,435  2.70%
Tax-exempt investment securities720,223  5,960  3.29%594,487  5,058  3.38%444,132  4,150  3.71%
Total Investment Securities3,004,680  22,254  2.96%2,792,739  20,679  2.96%2,729,856  19,585  2.87%
Loans held for sale27,178  320  4.71%30,062  295  3.93%16,434  240  5.85%
Other interest-earning assets602,270  2,532  1.69%492,560  2,370  1.92%366,175  2,002  2.20%
Total Interest-earning Assets20,494,195  202,602  3.97%20,083,418  205,368  4.07%19,306,840  207,949  4.35%
Noninterest-earning assets:
Cash and due from banks138,248  128,417  110,693  
Premises and equipment239,619  239,294  237,124  
Other assets1,590,666  1,528,758  1,197,034  
Less: ACL - loans(2)
(210,629) (167,449) (161,326) 
Total Assets$22,252,099  $21,812,438  $20,690,365  
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits$4,649,905  $5,643  0.49%$4,699,040  $8,494  0.72%$4,153,984  $7,519  0.73%
Savings deposits5,127,662  7,110  0.56%5,205,260  10,253  0.78%4,912,856  9,962  0.82%
Brokered deposits275,359  1,073  1.57%261,689  1,279  1.94%220,115  1,382  2.55%
Time deposits2,761,474  12,614  1.84%2,959,008  13,775  1.86%2,765,803  10,826  1.59%
Total Interest-bearing Deposits12,814,400  26,440  0.83%13,124,997  33,801  1.02%12,052,758  29,689  1.00%
Short-term borrowings1,303,047  4,073  1.25%717,811  2,343  1.29%820,054  3,582  1.76%
FHLB advances and long-term debt1,063,214  8,119  3.06%875,802  6,745  3.07%1,002,463  8,114  3.26%
Total Interest-bearing Liabilities15,180,661  38,632  1.02%14,718,610  42,889  1.16%13,875,275  41,385  1.21%
Noninterest-bearing liabilities:
Demand deposits4,307,027  4,324,568  4,222,875  
Total deposits17,121,427  17,449,565  16,275,633  
Other427,395  427,863  327,118  
Total Liabilities19,915,083  19,471,041  18,425,268  
Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")19,487,688  0.80 %19,043,178  0.89 %18,098,150  0.93 %
Shareholders' equity2,337,016  2,341,397  2,265,097  
Total Liabilities and Shareholders' Equity$22,252,099  $21,812,438  $20,690,365  
Net interest income/net interest margin (fully taxable equivalent)163,970  3.21%162,479  3.22%166,564  3.49%
Tax equivalent adjustment(3,224) (3,209) (3,249) 
Net interest income$160,746  $159,270  $163,315  
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Three Months Ended% Change from
Mar 31Dec 31Sep 30Jun 30Mar 31Dec 31Mar 31
2020201920192019201920192019
Loans, by type:
Real estate - commercial mortgage$6,746,766  $6,561,029  $6,489,456  $6,424,213  $6,378,145  2.8 %5.8 %
Commercial and industrial4,446,750  4,574,047  4,414,992  4,440,860  4,462,609  (2.8)%(0.4)%
Real estate - residential mortgage2,670,019  2,606,136  2,512,899  2,366,685  2,276,611  2.5 %17.3 %
Real estate - home equity1,300,132  1,331,088  1,364,161  1,404,141  1,433,574  (2.3)%(9.3)%
Real estate - construction929,529  934,556  905,060  943,080  930,246  (0.5)%(0.1)%
Consumer466,415  464,606  457,524  445,666  424,480  0.4 %9.9 %
Equipment lease financing and other300,456  296,595  292,415  291,431  288,710  1.3 %4.1 %
Total Loans, net of unearned income$16,860,067  $16,768,057  $16,436,507  $16,316,076  $16,194,375  0.5 %4.1 %
Deposits, by type:
Noninterest-bearing demand$4,307,027  $4,324,568  $4,247,820  $4,200,810  $4,222,875  (0.4)%2.0 %
Interest-bearing demand4,649,905  4,699,040  4,448,112  4,186,280  4,153,984  (1.0)%11.9 %
Savings and money market accounts5,127,662  5,205,260  5,026,316  4,925,788  4,912,856  (1.5)%4.4 %
     Total demand and savings14,084,594  14,228,868  13,722,248  13,312,878  13,289,715  (1.0)%6.0 %
Brokered deposits275,359  261,689  253,426  246,154  220,115  5.2 %25.1 %
Time deposits2,761,474  2,959,008  2,974,993  2,816,425  2,765,803  (6.7)%(0.2)%
Total Deposits$17,121,427  $17,449,565  $16,950,667  $16,375,457  $16,275,633  (1.9)%5.2 %
Short-term borrowings, by type:
Customer repurchase agreements$52,399  $59,363  $61,230  $56,171  $56,707  (11.7)%(7.6)%
Customer short-term promissory notes375,841  318,166  271,663  288,696  312,092  18.1 %20.4 %
Federal funds purchased186,868  91,467  101,022  181,769  157,122  104.3 %18.9 %
Short-term FHLB advances 687,937  248,815  485,782  414,868  294,133  176.5 %133.9  


Total Short-term Borrowings$1,303,045  $717,811  $919,697  $941,504  $820,054  81.5 %58.9 %
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
(2) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.




FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
Three Months Ended
Mar 31Dec 31Sep 30Jun 30Mar 31
20202019201920192019
Allowance for credit losses related to Loans, net of unearned income
Balance at beginning of period$163,620  $166,135  $170,233  $162,109  $160,537  
Impact of adopting CECL45,724  —  —  —  —  
Loans charged off:
    Commercial and industrial(10,899) (30,547) (7,181) (1,895) (2,787) 
    Real estate - commercial mortgage(855) (68) (394) (230) (1,145) 
    Consumer and home equity(1,529) (1,416) (1,375) (1,001) (902) 
    Real estate - residential mortgage(187) (223) (533) (134) (655) 
    Real estate - construction—  —  (45) (3) (95) 
    Equipment lease financing and other(533) (727) (600) (448) (785) 
    Total loans charged off(14,003) (32,981) (10,128) (3,711) (6,369) 
Recoveries of loans previously charged off:
    Commercial and industrial1,734  2,487  2,311  2,680  1,243  
    Real estate - commercial mortgage244  1,453  444  169  136  
    Consumer and home equity646  437  348  802  407  
    Real estate - residential mortgage85  206  440  211  132  
    Real estate - construction70  1,098  164  1,245  84  
    Equipment lease financing and other108  182  107  148  229  
    Recoveries of loans previously charged off2,887  5,863  3,814  5,255  2,231  
Net loans recovered charged off(11,116) (27,118) (6,314) 1,544  (4,138) 
Provision for credit losses40,280  24,603  2,216  6,580  5,710  
Balance at end of period$238,508  $163,620  $166,135  $170,233  $162,109  
Net charge-offs to average loans (annualized)0.26 %0.65 %0.15 %(0.04)%0.10 %
Allowance credit losses related to OBS Credit Exposures(1)
Balance at beginning of period$2,588  $6,662  $6,708  $8,263  $8,873  
Impact of adopting CECL12,625  —  —  —  —  
Provision for credit losses 3,750  (4,074) (46) (1,555) (610) 
Balance at end of period$18,963  $2,588  $6,662  $6,708  $8,263  
NON-PERFORMING ASSETS:
Non-accrual loans$120,345  $125,098  $124,287  $133,118  $127,141  
Loans 90 days past due and accruing19,593  16,057  11,689  14,598  11,540  
    Total non-performing loans139,938  141,155  135,976  147,716  138,681  
Other real estate owned6,593  6,831  7,706  7,241  9,012  
Total non-performing assets$146,531  $147,986  $143,682  $154,957  $147,693  
NON-PERFORMING LOANS, BY TYPE:
Commercial and industrial$41,318  $49,491  $37,126  $47,260  $50,148  
Real estate - commercial mortgage36,538  37,279  45,710  43,850  29,817  
Real estate - residential mortgage25,832  22,411  20,150  21,659  22,299  
Consumer and home equity11,226  11,026  11,012  12,378  10,770  
Real estate - construction4,379  4,306  4,312  4,632  7,039  
Leasing20,645  16,642  17,666  17,937  18,608  
Total non-performing loans$139,938  $141,155  $135,976  $147,716  $138,681  
(1) The allowance for credit losses related to OBS Credit Exposures is presented in "other liabilities" on the consolidated balance sheets.




FULTON FINANCIAL CORPORATION
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
in thousands, except per share data and percentages
Explanatory note:This press release contains supplemental financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:
Three Months Ended
Mar 31Dec 31Sep 30Jun 30Mar 31
20202019201920192019
Shareholders' equity (tangible), per share
Shareholders' equity$2,285,748  $2,342,176  $2,324,016  $2,308,798  $2,301,019  
Less: Goodwill and intangible assets(535,171) (535,303) (534,178) (535,249) (535,356) 
Tangible shareholders' equity (numerator)$1,750,577  $1,806,873  $1,789,838  $1,773,549  $1,765,663  
Shares outstanding, end of period (denominator)161,435  164,218  164,036  166,903  169,923  
Shareholders' equity (tangible), per share$10.84  $11.00  $10.91  $10.63  $10.39  
Return on average shareholders' equity (tangible)
Net income$26,047  $47,789  $62,108  $59,779  $56,663  
Plus: Intangible amortization, net of tax104  112  846  85  85  
(Numerator)$26,151  $47,901  $62,954  $59,864  $56,748  
Average shareholders' equity$2,337,016  $2,341,397  $2,315,585  $2,301,258  $2,265,097  
Less: Average goodwill and intangible assets(535,235) (534,190) (535,184) (535,301) (531,767) 
Average tangible shareholders' equity (denominator)$1,801,781  $1,807,207  $1,780,401  $1,765,957  $1,733,330  
Return on average shareholders' equity (tangible), annualized5.84 %10.52 %14.03 %13.60 %13.28 %
Tangible Common Equity to Tangible Assets (TCE Ratio)
Shareholders' equity$2,285,748  $2,342,176  $2,324,016  $2,308,798  $2,301,019  
Less: Goodwill and intangible assets(535,171) (535,303) (534,178) (535,249) (535,356) 
Tangible shareholders' equity (numerator)$1,750,577  $1,806,873  $1,789,838  $1,773,549  $1,765,663  
Total assets$22,929,859  $21,886,040  $21,703,618  $21,308,670  $20,974,649  
Less: Goodwill and intangible assets(535,171) (535,303) (534,178) (535,249) (535,356) 
Total tangible assets (denominator)$22,394,688  $21,350,737  $21,169,440  $20,773,421  $20,439,293  
Tangible Common Equity to Tangible Assets7.82 %8.46 %8.45 %8.54 %8.64 %
Efficiency ratio
Non-interest expense$142,552  $138,974  $146,770  $144,168  $137,824  
Less: Intangible amortization(132) (142) (1,071) (107) (107) 
Less: Amortization of tax credit investments(1,450) (1,505) (1,533) (1,492) (1,491) 
Less: Loss on redemption of FHLB advances—  —  (4,326) —  —  
Non-interest expense (numerator)$140,970  $137,327  $139,840  $142,569  $136,226  
Net interest income (fully taxable equivalent)$163,970  $162,479  $164,517  $167,794  $166,564  
Plus: Total Non-interest income54,644  55,281  59,813  54,315  46,751  
Less: Investment securities gains(46) —  (4,492) (176) (65) 
Net interest income (denominator)$218,568  $217,760  $219,838  $221,933  $213,250  
Efficiency ratio64.5 %63.1 %63.6 %64.2 %63.9 %
Non-performing assets to tangible shareholders' equity and ACL - loans(1)
Non-performing assets (numerator)$146,531  $147,986  $143,682  $154,957  $147,693  
Tangible shareholders' equity$1,750,577  $1,806,873  1,789,838  1,773,549  $1,765,663  
Plus: ACL - loans238,508  163,620  166,135  170,233  162,109  
Tangible shareholders' equity and ACL - loans (denominator)$1,989,085  $1,970,493  $1,955,973  $1,943,782  $1,927,772  
Non-performing assets to tangible shareholders' equity and ACL - loans7.37 %7.51 %7.35 %7.97 %7.66 %


Pre-provision net revenue
Net interest income$160,746  $159,270  $161,260  $164,544  $163,315  
Non-interest income54,644  55,281  59,813  54,315  46,751  
Less: Investment securities gains(46) —  (4,492) (176) (65) 
Total revenue$215,344  $214,551  $216,581  $218,683  $210,001  
Non-interest expense$142,552  $138,974  $146,770  $144,168  $137,824  
Less: Loss on redemption of FHLB advances—  —  (4,326) —  —  
Less: Amortization of tax credit investments(1,450) (1,505) (1,533) (1,492) (1,491) 
Less: Intangible amortization(132) (142) (1,071) (107) (107) 
Total non-interest expense$140,970  $137,327  $139,840  $142,569  $136,226  
Pre-provision net revenue$74,374  $77,224  $76,741  $76,114  $73,775  
(1) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.


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