/EINPresswire.com/ -- LANCASTER, PA--(Marketwired - Oct 18, 2016) - Fulton Financial Corporation (NASDAQ: FULT)

• Diluted earnings per share for the third quarter of 2016 were 24 cents, a 4.3 percent increase from second quarter of 2016 and a 20.0 percent increase from the third quarter of 2015. Pre-provision net revenue of $58.9 million was 10.4 percent higher than the second quarter of 2016 and 19.0 percent higher than the third quarter of 2015.
• Net interest income for the third quarter of 2016 increased $1.6 million, or 1.3 percent, compared to the second quarter of 2016 and increased $4.9 million, or 3.9 percent, compared to third quarter of 2015.
• Net interest margin decreased six basis points to 3.14 percent compared to the second quarter of 2016, and four basis points compared to the third quarter of 2015.
• Loans at September 30, 2016 increased $236.1 million, or 1.7 percent, compared to June 30, 2016 and $854.9 million, or 6.3 percent, compared to September 30, 2015. Average loans for the third quarter of 2016 increased 1.8 percent and 6.3 percent compared to the second quarter of 2016 and the third quarter of 2015, respectively.
• Deposits at September 30, 2016 increased $659.9 million, or 4.6 percent, compared to June 30, 2016 and increased $868.1 million, or 6.2 percent, compared to September 30, 2015. Average deposits for the third quarter of 2016 increased 2.5 percent compared to the second quarter of 2016, and increased 5.9 percent compared to the third quarter of 2015.
• The provision for credit losses in the third quarter of 2016 was $4.1 million, compared to a $2.5 million provision in the second quarter of 2016 and a $1.0 million provision in the third quarter of 2015.
• Non-interest income, excluding investment securities gains, increased $2.1 million, or 4.5 percent, in comparison to the second quarter of 2016, and increased $5.1 million, or 11.9 percent, in comparison to the third quarter of 2015.
• Non-interest expense decreased $1.8 million, or 1.5 percent, compared to the second quarter of 2016 and, excluding the loss on redemption of trust preferred securities recognized in the third quarter of 2015, increased $585,000, or 0.5 percent, compared to the third quarter of 2015.

Fulton Financial Corporation (NASDAQ: FULT) reported net income of $41.5 million, or 24 cents per diluted share, for the third quarter of 2016.

"We were pleased with the third quarter results as we were able to grow earnings per share by 4.3 percent linked quarter," said E. Philip Wenger, Chairman, President and CEO. "Despite a challenging interest rate and operating environment, we were able to grow revenues and reduce expenses, which enabled us to drive positive operating leverage for the quarter."

Net Interest Income and Margin
Net interest income for the third quarter of 2016 increased $1.6 million, or 1.3 percent, from the second quarter of 2016. Net interest margin decreased six basis points, or 1.9 percent, to 3.14 percent in the third quarter of 2016, from 3.20 percent in the second quarter of 2016. The average yield on interest-earning assets decreased six basis points, while the average cost of interest-bearing liabilities remained unchanged, during the third quarter of 2016 in comparison to the second quarter of 2016.

Average Balance Sheet
Total average assets for the third quarter of 2016 were $18.6 billion, an increase of $439.1 million from the second quarter of 2016. Average loans, net of unearned income, increased $246.2 million, or 1.8 percent, in comparison to the second quarter of 2016. Average loans and yields, by type, for the third quarter of 2016 in comparison to the second quarter of 2016, are summarized in the following table:

		Three Months Ended												Increase (decrease)
		September 30, 2016						June 30, 2016						in Balance
		Balance			Yield (1)			Balance			Yield (1)			$				%
		(dollars in thousands)
Average Loans, net of unearned income, by type:
	Real estate - commercial mortgage	$	5,670,888		3.99	%		$	5,557,680		4.00	%		$	113,208			2.0	%
	Commercial - industrial, financial and agricultural		4,066,275		3.76	%			4,080,524		3.81	%			(14,249	)		(0.3	%)
	Real estate - home equity		1,640,913		4.08	%			1,656,140		4.10	%			(15,227	)		(0.9	%)
	Real estate - residential mortgage		1,503,209		3.76	%			1,399,851		3.78	%			103,358			7.4	%
	Real estate - construction		837,920		3.76	%			820,881		3.81	%			17,039			2.1	%
	Consumer		281,517		5.31	%			272,293		5.37	%			9,224			3.4	%
	Leasing and other		211,528		4.74	%			178,655		6.22	%			32,873			18.4	%
	Total Average Loans, net of unearned income	$	14,212,250		3.93	%		$	13,966,024		3.98	%		$	246,226			1.8	%
(1) Presented on a fully-taxable equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.

Total average liabilities increased $408.4 million, or 2.5 percent, from the second quarter of 2016, while average deposits increased $357.2 million, or 2.5 percent. Average deposits and interest rates, by type, for the third quarter of 2016 in comparison to the second quarter of 2016, are summarized in the following table:

			Three Months Ended												Increase (decrease)
			September 30, 2016						June 30, 2016						in Balance
			Balance			Rate			Balance			Rate			$				%
			(dollars in thousands)
Average Deposits, by type:
	Noninterest-bearing demand		$	4,227,639		-	%		$	4,077,642		-	%		$	149,997			3.7	%
	Interest-bearing demand			3,602,448		0.19	%			3,454,031		0.18	%			148,417			4.3	%
	Savings deposits			4,078,942		0.20	%			3,989,988		0.19	%			88,954			2.2	%
Total average demand and savings				11,909,029		0.13	%			11,521,661		0.12	%			387,368			3.4	%
	Time deposits			2,814,258		1.07	%			2,844,434		1.06	%			(30,176	)		(1.1	%)
	Total Average Deposits		$	14,723,287		0.31	%		$	14,366,095		0.30	%		$	357,192			2.5	%

Asset Quality
Non-performing assets were $150.1 million, or 0.80 percent of total assets, at September 30, 2016, compared to $139.7 million, or 0.76 percent of total assets, at June 30, 2016 and $155.6 million, or 0.87 percent of total assets, at September 30, 2015.

Annualized net charge-offs for the quarter ended September 30, 2016 were 0.11 percent of total average loans, compared to 0.10 percent for the quarter ended June 30, 2016 and 0.03 percent for the quarter ended September 30, 2015. The allowance for credit losses as a percentage of non-performing loans was 119.6 percent at September 30, 2016, as compared to 129.3 percent at June 30, 2016 and 116.8 percent at September 30, 2015.

During the third quarter of 2016, the Corporation recorded a $4.1 million provision for credit losses, compared to a $2.5 million provision in the second quarter of 2016 and a $1.0 million provision in the third quarter of 2015. 

Non-interest Income
Non-interest income, excluding investment securities gains, increased $2.1 million, or 4.5 percent, in comparison to the second quarter of 2016. Other service charges and fees increased $1.4 million, or 11.0 percent, due to increases in commercial loan interest rate swap fees. Mortgage banking income increased $632,000, or 16.2 percent, primarily driven by gains on sales of loans as a result of higher volumes of new loan commitments. During the third quarter of 2016, an additional $1.3 million mortgage servicing rights impairment charge was recorded, compared to $1.7 million impairment charge in the prior quarter, as a reduction to mortgage banking income.

Compared to the third quarter of 2015, non-interest income, excluding investment securities gains, increased $5.1 million, or 11.9 percent, due to increases in commercial loan interest rate swap fees, mortgage banking income, and SBA loan sale gains.

Gains on sales of investment securities decreased $74,000 in comparison to the second quarter of 2016, and decreased $1.7 million from the third quarter of 2015.

Non-interest Expense
Non-interest expense decreased $1.8 million, or 1.5 percent, in the third quarter of 2016, compared to the second quarter of 2016. Decreases occurred in FDIC insurance expense, data processing, professional fees and operating risk loss, partially offset by increases in salaries and employee benefits, other real estate owned and repossession expense and other outside services.

In the third quarter of 2015, the Corporation incurred a $5.6 million loss on the redemption of trust preferred securities. Excluding this loss, non-interest expense remained relatively flat in the third quarter of 2016 compared to the prior year with increases in salaries and employee benefits and occupancy expense, offset by decreases in other outside services, FDIC insurance expense, and operating risk loss.

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 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016 and June 30, 2016, which have been filed with the Securities and Exchange Commission and are available in the Investor Relations section of the Corporation's website (www.fult.com) and on the Securities and Exchange Commission's website (www.sec.gov). 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.

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
																										% Change from
					September 30				June 30				March 31				December 31					September 30				June 30			September 30
					2016				2016				2016				2015					2015				2016			2015
ASSETS
	Cash and due from banks				$	86,497			$	84,647			$	83,479			$	101,120				$	93,803			2.2	%		(7.8	%)
	Other interest-earning assets					428,966				408,086				408,060				292,516					579,920			5.1	%		(26.0	%)
	Loans held for sale					27,836				34,330				19,719				16,886					26,937			(18.9	%)		3.3	%
	Investment securities					2,508,068				2,529,724				2,516,205				2,484,773					2,436,337			(0.9	%)		2.9	%
	Loans, net of unearned income					14,391,238				14,155,159				13,870,701				13,838,602					13,536,361			1.7	%		6.3	%
	Allowance for loan losses					(162,526	)			(162,546	)			(163,841	)			(169,054	)				(167,136	)		0.0	%		(2.8	%)
	Net loans					14,228,712				13,992,613				13,706,860				13,669,548					13,369,225			1.7	%		6.4	%
	Premises and equipment					228,009				228,861				228,057				225,535					225,705			(0.4	%)		1.0	%
	Accrued interest receivable					43,600				43,316				44,379				42,767					42,846			0.7	%		1.8	%
	Goodwill and intangible assets					531,556				531,556				531,556				531,556					531,562			0.0	%		0.0	%
	Other assets					617,818				626,902				583,939				550,017					531,724			(1.4	%)		16.2	%
			Total Assets		$	18,701,062			$	18,480,035			$	18,122,254			$	17,914,718				$	17,838,059			1.2	%		4.8	%
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits				$	14,952,479			$	14,292,564			$	14,404,280			$	14,132,317				$	14,084,394			4.6	%		6.2	%
	Short-term borrowings					264,042				722,214				352,883				497,663					431,631			(63.4	%)		(38.8	%)
	Other liabilities					389,819				392,708				326,128				293,302					316,697			(0.7	%)		23.1	%
	FHLB advances and long-term debt					965,286				965,552				965,654				949,542					979,433			0.0	%		(1.4	%)
		Total Liabilities				16,571,626				16,373,038				16,048,945				15,872,824					15,812,155			1.2	%		4.8	%
	Shareholders' equity					2,129,436				2,106,997				2,073,309				2,041,894					2,025,904			1.1	%		5.1	%
			Total Liabilities and Shareholders' Equity		$	18,701,062			$	18,480,035			$	18,122,254			$	17,914,718				$	17,838,059			1.2	%		4.8	%
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
	Real estate - commercial mortgage				$	5,818,915			$	5,635,347			$	5,558,108			$	5,462,330				$	5,339,928			3.3	%		9.0	%
	Commercial - industrial, financial and agricultural					4,024,119				4,099,177				4,035,333				4,088,962					3,929,908			(1.8	%)		2.4	%
	Real estate - home equity					1,640,421				1,647,319				1,659,481				1,684,439					1,693,649			(0.4	%)		(3.1	%)
	Real estate - residential mortgage					1,542,696				1,447,292				1,377,459				1,376,160					1,382,085			6.6	%		11.6	%
	Real estate - construction					861,634				853,699				810,872				799,988					769,565			0.9	%		12.0	%
	Consumer					283,673				278,071				263,221				268,588					271,696			2.0	%		4.4	%
	Leasing and other					219,780				194,254				166,227				158,135					149,530			13.1	%		47.0	%
	Total Loans, net of unearned income				$	14,391,238			$	14,155,159			$	13,870,701			$	13,838,602				$	13,536,361			1.7	%		6.3	%
Deposits, by type:
	Noninterest-bearing demand				$	4,210,099			$	4,125,375			$	4,134,861			$	3,948,114				$	3,906,228			2.1	%		7.8	%
	Interest-bearing demand					3,703,048				3,358,536				3,430,206				3,451,207					3,362,336			10.3	%		10.1	%
	Savings deposits					4,235,015				3,986,008				3,972,199				3,868,046					3,880,103			6.2	%		9.1	%
	Time deposits					2,804,317				2,822,645				2,867,014				2,864,950					2,935,727			(0.6	%)		(4.5	%)
	Total Deposits				$	14,952,479			$	14,292,564			$	14,404,280			$	14,132,317				$	14,084,394			4.6	%		6.2	%
Short-term borrowings, by type:
	Customer repurchase agreements				$	189,727			$	168,521			$	162,431			$	111,496				$	145,225			12.6	%		30.6	%
	Customer short-term promissory notes					65,871				69,509				76,807				78,932					80,879			(5.2	%)		(18.6	%)
	Short-term FHLB advances					-				35,000				81,000				110,000					200,000			(100.0	%)		(100.0	%)
	Federal funds purchased					8,444				449,184				32,645				197,235					5,527			(98.1	%)		52.8	%
	Total Short-term Borrowings				$	264,042			$	722,214			$	352,883			$	497,663				$	431,631			(63.4	%)		(38.8	%)

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
in thousands, except per-share data and percentages
					Three Months Ended																				% Change from							Nine Months Ended
					Sep 30				Jun 30				Mar 31				Dec 31				Sep 30				Jun 30			Sep 30				Sep 30
					2016				2016				2016				2015				2015				2016			2015				2016				2015				% Change
Interest Income:
	Interest income				$	151,468			$	149,309			$	149,311			$	147,560			$	146,228			1.4	%		3.6	%			$	450,088			$	436,229			3.2	%
	Interest expense					20,903				20,393				20,257				19,761				20,534			2.5	%		1.8	%				61,553				64,034			(3.9	%)
		Net Interest Income				130,565				128,916				129,054				127,799				125,694			1.3	%		3.9	%				388,535				372,195			4.4	%
	Provision for credit losses					4,141				2,511				1,530				2,750				1,000			64.9	%		N/M					8,182				(500	)		N/M
		Net Interest Income after Provision				126,424				126,405				127,524				125,049				124,694			0.0	%		1.4	%				380,353				372,695			2.1	%
Non-Interest Income:
	Other service charges and fees					14,407				12,983				10,750				12,676				10,965			11.0	%		31.4	%				38,140				31,316			21.8	%
	Service charges on deposit accounts					13,078				12,896				12,558				12,909				12,982			1.4	%		0.7	%				38,532				37,188			3.6	%
	Investment management and trust services					11,425				11,247				10,988				10,919				11,237			1.6	%		1.7	%				33,660				33,137			1.6	%
	Mortgage banking income					4,529				3,897				4,030				4,317				3,864			16.2	%		17.2	%				12,456				13,891			(10.3	%)
	Other					4,708				5,038				3,864				4,242				3,996			(6.6	%)		17.8	%				13,610				12,178			11.8	%
		Non-Interest Income before Investment Securities Gains				48,147				46,061				42,190				45,063				43,044			4.5	%		11.9	%				136,398				127,710			6.8	%
	Investment securities gains					2				76				947				776				1,730			(97.4	%)		(99.9	%)				1,025				8,290			(87.6	%)
		Total Non-Interest Income				48,149				46,137				43,137				45,839				44,774			4.4	%		7.5	%				137,423				136,000			1.0	%
Non-Interest Expense:
	Salaries and employee benefits					70,696				70,029				69,372				65,467				65,308			1.0	%		8.3	%				210,097				195,365			7.5	%
	Net occupancy expense					11,782				11,811				12,220				11,566				10,710			(0.2	%)		10.0	%				35,813				36,211			(1.1	%)
	Other outside services					5,783				5,508				6,056				6,537				7,373			5.0	%		(21.6	%)				17,347				21,248			(18.4	%)
	Data processing					4,610				5,476				5,400				5,127				5,105			(15.8	%)		(9.7	%)				15,486				14,767			4.9	%
	Software					4,117				3,953				3,921				4,068				3,984			4.1	%		3.3	%				11,991				10,678			12.3	%
	Equipment expense					3,137				2,872				3,371				3,626				3,595			9.2	%		(12.7	%)				9,380				10,888			(13.9	%)
	Professional fees					2,535				3,353				2,333				2,814				2,828			(24.4	%)		(10.4	%)				8,221				8,430			(2.5	%)
	FDIC insurance expense					1,791				2,960				2,949				2,896				2,867			(39.5	%)		(37.5	%)				7,700				8,574			(10.2	%)
	Marketing					1,774				1,916				1,624				1,754				2,102			(7.4	%)		(15.6	%)				5,314				5,570			(4.6	%)
	Other real estate owned and repossession expense					742				365				638				1,123				1,016			103.3	%		(27.0	%)				1,745				2,507			(30.4	%)
	Operating risk loss					556				986				540				987				1,136			(43.6	%)		(51.1	%)				2,082				2,637			(21.0	%)
	Intangible amortization					-				-				-				6				5			-			N/M					-				241			N/M
	Loss on redemption of trust preferred securities					-				-				-				-				5,626			-			N/M					-				5,626			N/M
	Other					12,325				12,408				11,989				12,468				13,234			(0.7	%)		(6.9	%)				36,722				38,979			(5.8	%)
		Total Non-Interest Expense				119,848				121,637				120,413				118,439				124,889			(1.5	%)		(4.0	%)				361,898				361,721			0.0	%
		Income before Income Taxes				54,725				50,905				50,248				52,449				44,579			7.5	%		22.8	%				155,878				146,974			6.1	%
	Income tax expense					13,257				11,155				11,991				13,914				10,328			18.8	%		28.4	%				36,403				36,007			1.1	%
		Net Income			$	41,468			$	39,750			$	38,257			$	38,535			$	34,251			4.3	%		21.1	%			$	119,475			$	110,967			7.7	%
PER SHARE:
Net income:
Basic					$	0.24			$	0.23			$	0.22			$	0.22			$	0.20			4.3	%		20.0	%			$	0.69			$	0.63			9.5	%
Diluted						0.24				0.23				0.22				0.22				0.20			4.3	%		20.0	%				0.69				0.63			9.5	%
Cash dividends					$	0.10			$	0.10			$	0.09			$	0.11			$	0.09			-			11.1	%			$	0.29			$	0.27			7.4	%
Shareholders' equity						12.30				12.17				11.96				11.72				11.66			1.1	%		5.5	%				12.30				11.66			5.5	%
Shareholders' equity (tangible)						9.23				9.10				8.89				8.67				8.60			1.4	%		7.3	%				9.23				8.60			7.3	%
Weighted average shares (basic)						173,020				173,394				173,331				173,709				174,338			(0.2	%)		(0.8	%)				173,248				176,399			(1.8	%)
Weighted average shares (diluted)						174,064				174,318				174,416				174,833				175,342			(0.1	%)		(0.7	%)				174,265				177,428			(1.8	%)
Shares outstanding, end of period						173,144				173,139				173,393				174,176				173,771			0.0	%		(0.4	%)				173,144				173,771			(0.4	%)
SELECTED FINANCIAL RATIOS:
Return on average assets						0.89	%			0.88	%			0.86	%			0.86	%			0.78	%										0.87	%			0.86	%
Return on average shareholders' equity						7.78	%			7.65	%			7.47	%			7.51	%			6.72	%										7.64	%			7.33	%
Return on average shareholders' equity (tangible)						10.38	%			10.26	%			10.07	%			10.16	%			9.11	%										10.24	%			9.96	%
Net interest margin						3.14	%			3.20	%			3.23	%			3.19	%			3.18	%										3.19	%			3.22	%
Efficiency ratio						65.16	%			67.59	%			68.33	%			66.63	%			68.82	%										67.01	%			69.30	%
N/M - Not meaningful

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands

		Three Months Ended
		September 30, 2016											June 30, 2016											September 30, 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	$	14,212,250			$	140,434			3.93	%		$	13,966,024			$	138,317			3.98	%		$	13,369,874			$	135,268			4.02	%
	Taxable investment securities		2,110,084				10,872			2.06	%			2,127,780				11,159			2.10	%			2,148,403				11,252			2.09	%
	Tax-exempt investment securities		344,231				3,923			4.56	%			314,851				3,570			4.54	%			230,178				2,929			5.09	%
	Equity securities		14,209				196			5.50	%			14,220				185			5.23	%			18,280				257			5.58	%
	Total Investment Securities		2,468,524				14,991			2.43	%			2,456,851				14,914			2.43	%			2,396,861				14,438			2.41	%
	Loans held for sale		22,593				210			3.72	%			19,449				188			3.87	%			20,704				194			3.74	%
	Other interest-earning assets		501,666				1,051			0.84	%			357,211				864			0.96	%			477,145				884			0.74	%
	Total Interest-earning Assets		17,205,033				156,686			3.63	%			16,799,535				154,283			3.69	%			16,264,584				150,784			3.68	%
Noninterest-earning assets:
	Cash and due from banks		101,927											100,860											104,622
	Premises and equipment		227,906											227,517											226,446
	Other assets		1,219,844											1,189,226											1,097,600
	Less: allowance for loan losses		(163,074	)										(164,573	)										(168,770	)
	Total Assets	$	18,591,636										$	18,152,565										$	17,524,482
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits	$	3,602,448			$	1,706			0.19	%		$	3,454,031			$	1,527			0.18	%		$	3,316,532			$	1,122			0.13	%
	Savings deposits		4,078,942				2,042			0.20	%			3,989,988				1,886			0.19	%			3,714,282				1,436			0.15	%
	Time deposits		2,814,258				7,562			1.07	%			2,844,434				7,474			1.06	%			2,963,774				7,659			1.03	%
	Total Interest-bearing Deposits		10,495,648				11,310			0.43	%			10,288,453				10,887			0.43	%			9,994,588				10,217			0.41	%
	Short-term borrowings		426,369				254			0.23	%			403,669				217			0.21	%			324,685				92			0.11	%
	FHLB advances and long-term debt		965,228				9,338			3.86	%			965,526				9,289			3.86	%			996,247				10,225			4.09	%
	Total Interest-bearing Liabilities		11,887,245				20,902			0.70	%			11,657,648				20,393			0.70	%			11,315,520				20,534			0.72	%
Noninterest-bearing liabilities:
	Demand deposits		4,227,639											4,077,642											3,904,176
	Other		356,156											327,360											281,957
	Total Liabilities		16,471,040											16,062,650											15,501,653
	Shareholders' equity		2,120,596											2,089,915											2,022,829
	Total Liabilities and Shareholders' Equity	$	18,591,636										$	18,152,565										$	17,524,482
	Net interest income/net interest margin (fully taxable equivalent)						135,784			3.14	%							133,890			3.20	%							130,250			3.18	%
	Tax equivalent adjustment						(5,219	)										(4,974	)										(4,556	)
	Net interest income					$	130,565										$	128,916										$	125,694

(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
			September 30			June 30			March 31			December 31			September 30			June 30			September 30
			2016			2016			2016			2015			2015			2016			2015
Loans, by type:
	Real estate - commercial mortgage		$	5,670,888		$	5,557,680		$	5,487,421		$	5,365,640		$	5,242,021		2.0	%		8.2	%
	Commercial - industrial, financial and agricultural			4,066,275			4,080,524			4,095,268			4,035,287			3,887,161		(0.3	%)		4.6	%
	Real estate - home equity			1,640,913			1,656,140			1,674,032			1,694,455			1,692,860		(0.9	%)		(3.1	%)
	Real estate - residential mortgage			1,503,209			1,399,851			1,381,409			1,377,116			1,381,141		7.4	%		8.8	%
	Real estate - construction			837,920			820,881			792,014			765,555			753,584		2.1	%		11.2	%
	Consumer			281,517			272,293			263,295			267,726			270,391		3.4	%		4.1	%
	Leasing and other			211,528			178,655			159,981			153,487			142,716		18.4	%		48.2	%
	Total Loans, net of unearned income		$	14,212,250		$	13,966,024		$	13,853,420		$	13,659,266		$	13,369,874		1.8	%		6.3	%
Deposits, by type:
	Noninterest-bearing demand		$	4,227,639		$	4,077,642		$	3,967,887		$	3,999,118		$	3,904,176		3.7	%		8.3	%
	Interest-bearing demand			3,602,448			3,454,031			3,438,355			3,411,904			3,316,532		4.3	%		8.6	%
	Savings deposits			4,078,942			3,989,988			3,932,824			3,903,741			3,714,282		2.2	%		9.8	%
	Time deposits			2,814,258			2,844,434			2,867,651			2,903,715			2,963,774		(1.1	%)		(5.0	%)
	Total Deposits		$	14,723,287		$	14,366,095		$	14,206,717		$	14,218,478		$	13,898,764		2.5	%		5.9	%
Short-term borrowings, by type:
	Customer repurchase agreements		$	187,588		$	180,595		$	171,408		$	142,004		$	149,415		3.9	%		25.5	%
	Customer short-term promissory notes			70,072			77,535			74,013			80,568			79,308		(9.6	%)		(11.6	%)
	Federal funds purchased			148,546			138,012			183,970			44,468			85,092		7.6	%		74.6	%
	Short-term FHLB advances and other borrowings			20,163			7,527			16,011			14,457			10,870		167.9	%		85.5	%
	Total Short-term Borrowings		$	426,369		$	403,669		$	445,402		$	281,497		$	324,685		5.6	%		31.3	%

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands

			Nine Months Ended September 30
			2016															2015
			Average											Average
			Balance				Interest (1)				Yield/Rate			Balance				Interest (1)				Yield/Rate
ASSETS
Interest-earning assets:
	Loans, net of unearned income		$	14,011,301			$	416,646			3.97	%		$	13,220,339			$	401,662			4.06	%
	Taxable investment securities			2,139,378				34,034			2.12	%			2,068,025				33,478			2.16	%
	Tax-exempt investment securities			306,298				10,631			4.63	%			225,209				9,035			5.35	%
	Equity securities			14,272				599			5.60	%			25,985				1,086			5.59	%
	Total Investment Securities			2,459,948				45,264			2.45	%			2,319,219				43,599			2.51	%
	Loans held for sale			18,114				529			3.90	%			21,360				632			3.94	%
	Other interest-earning assets			406,163				2,813			0.92	%			463,545				3,922			1.13	%
	Total Interest-earning Assets			16,895,526				465,252			3.68	%			16,024,463				449,815			3.75	%
Noninterest-earning assets:
	Cash and due from banks			100,417											104,870
	Premises and equipment			227,237											226,469
	Other assets			1,182,260											1,101,856
	Less: allowance for loan losses			(164,999	)										(176,205	)
	Total Assets		$	18,240,441										$	17,281,453
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits		$	3,498,659			$	4,727			0.18	%		$	3,202,380			$	3,092			0.13	%
	Savings deposits			4,000,871				5,732			0.19	%			3,600,695				3,802			0.14	%
	Time deposits			2,842,011				22,465			1.06	%			3,017,271				23,199			1.03	%
	Total Interest-bearing Deposits			10,341,541				32,924			0.43	%			9,820,346				30,093			0.41	%
	Short-term borrowings			425,151				739			0.23	%			338,019				272			0.11	%
	FHLB advances and long-term debt			962,997				27,889			3.86	%			1,048,634				33,669			4.29	%
	Total Interest-bearing Liabilities			11,729,689				61,552			0.70	%			11,206,999				64,034			0.76	%
Noninterest-bearing liabilities:
	Demand deposits			4,091,555											3,767,919
	Other			329,315											282,983
	Total Liabilities			16,150,559											15,257,901
	Shareholders' equity			2,089,882											2,023,552
	Total Liabilities and Shareholders' Equity		$	18,240,441										$	17,281,453
	Net interest income/net interest margin (fully taxable equivalent)							403,700			3.19	%							385,781			3.22	%
	Tax equivalent adjustment							(15,165	)										(13,586	)
	Net interest income						$	388,535										$	372,195

(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:
			Nine Months Ended
			September 30
			2016			2015			% Change
Loans, by type:
	Real estate - commercial mortgage		$	5,572,356		$	5,205,755		7.0	%
	Commercial - industrial, financial and agricultural			4,080,638			3,831,678		6.5	%
	Real estate - home equity			1,656,969			1,703,006		(2.7	%)
	Real estate - residential mortgage			1,428,430			1,369,367		4.3	%
	Real estate - construction			817,014			713,893		14.4	%
	Consumer			272,402			265,002		2.8	%
	Leasing and other			183,492			131,638		39.4	%
	Total Loans, net of unearned income		$	14,011,301		$	13,220,339		6.0	%
Deposits, by type:
	Noninterest-bearing demand		$	4,091,555		$	3,767,919		8.6	%
	Interest-bearing demand			3,498,659			3,202,380		9.3	%
	Savings deposits			4,000,871			3,600,695		11.1	%
	Time deposits			2,842,011			3,017,271		(5.8	%)
	Total Deposits		$	14,433,096		$	13,588,265		6.2	%
Short-term borrowings, by type:
	Customer repurchase agreements		$	179,892		$	167,526		7.4	%
	Customer short-term promissory notes			73,859			81,854		(9.8	%)
	Federal funds purchased			156,812			72,961		114.9	%
	Short-term FHLB advances and other borrowings			14,588			15,678		(7.0	%)
	Total Short-term Borrowings		$	425,151		$	338,019		25.8	%

FULTON FINANCIAL CORPORATION

ASSET QUALITY INFORMATION (UNAUDITED)

dollars in thousands

				Three Months Ended																				Nine Months Ended
				Sep 30				Jun 30				Mar 31				Dec 31				Sep 30				Sep 30				Sep 30
				2016				2016				2016				2015				2015				2016				2015
ALLOWANCE FOR CREDIT LOSSES:
	Balance at beginning of period			$	165,108			$	166,065			$	171,412			$	169,395			$	169,453			$	171,412			$	185,931
	Loans charged off:
		Commercial - industrial, financial and agricultural			(3,144	)			(4,625	)			(6,188	)			(970	)			(1,640	)			(13,957	)			(14,669	)
		Consumer and home equity			(1,394	)			(1,614	)			(2,548	)			(1,466	)			(1,590	)			(5,556	)			(4,365	)
		Real estate - commercial mortgage			(1,350	)			(1,474	)			(582	)			(1,207	)			(660	)			(3,406	)			(3,011	)
		Real estate - residential mortgage			(802	)			(340	)			(1,068	)			(513	)			(1,035	)			(2,210	)			(3,099	)
		Real estate - construction			(150	)			(742	)			(326	)			-				(114	)			(1,218	)			(201	)
		Leasing and other			(832	)			(1,951	)			(443	)			(1,304	)			(522	)			(3,226	)			(1,352	)
		Total loans charged off			(7,672	)			(10,746	)			(11,155	)			(5,460	)			(5,561	)			(29,573	)			(26,697	)
	Recoveries of loans previously charged off:
		Commercial - industrial, financial and agricultural			1,539				2,931				2,319				1,409				1,598				6,789				3,855
		Consumer and home equity			463				889				534				825				618				1,886				1,667
		Real estate - commercial mortgage			296				1,367				825				1,072				842				2,488				1,729
		Real estate - residential mortgage			228				420				136				775				201				784				547
		Real estate - construction			898				1,563				383				548				898				2,844				2,276
		Leasing and other			168				108				81				98				346				357				587
		Recoveries of loans previously charged off			3,592				7,278				4,278				4,727				4,503				15,148				10,661
	Net loans charged off				(4,080	)			(3,468	)			(6,877	)			(733	)			(1,058	)			(14,425	)			(16,036	)
	Provision for credit losses				4,141				2,511				1,530				2,750				1,000				8,182				(500	)
	Balance at end of period			$	165,169			$	165,108			$	166,065			$	171,412			$	169,395			$	165,169			$	169,395
	Net charge-offs to average loans (annualized)				0.11	%			0.10	%			0.20	%			0.02	%			0.03	%			0.14	%			0.16	%
NON-PERFORMING ASSETS:
	Non-accrual loans			$	124,017			$	111,742			$	122,170			$	129,523			$	132,154
	Loans 90 days past due and accruing				14,095				15,992				15,013				15,291				12,867
		Total non-performing loans			138,112				127,734				137,183				144,814				145,021
	Other real estate owned				11,981				11,918				10,946				11,099				10,561
	Total non-performing assets			$	150,093			$	139,652			$	148,129			$	155,913			$	155,582
NON-PERFORMING LOANS, BY TYPE:
	Commercial - industrial, financial and agricultural			$	47,330			$	38,902			$	39,140			$	44,071			$	38,032
	Real estate - commercial mortgage				39,631				35,704				43,132				41,170				49,021
	Real estate - residential mortgage				23,451				25,030				25,182				28,484				27,707
	Consumer and home equity				16,426				16,061				16,210				17,123				15,186
	Real estate - construction				11,223				11,879				12,005				12,460				14,989
	Leasing				51				158				1,514				1,506				86
	Total non-performing loans			$	138,112			$	127,734			$	137,183			$	144,814			$	145,021
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:
	Real-estate - residential mortgage			$	26,854			$	27,324			$	27,565			$	28,511			$	29,330
	Real-estate - commercial mortgage				16,085				17,808				17,427				17,563				17,282
	Consumer and home equity				7,707				7,191				6,562				4,589				3,983
	Commercial - industrial, financial and agricultural				7,488				5,756				5,650				5,953				7,399
	Real estate - construction				843				3,086				3,092				3,942				4,363
	Total accruing TDRs				58,977				61,165				60,296				60,558				62,357
	Non-accrual TDRs (1)				27,904				24,887				27,277				31,035				27,618
	Total TDRs			$	86,881			$	86,052			$	87,573			$	91,593			$	89,975

(1)	Included within non-accrual loans above.

			Total Delinquency %
DELINQUENCY RATES, BY TYPE:			Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
			2016			2016			2016			2015			2015
	Real estate - commercial mortgage		0.87	%		0.81	%		0.93	%		0.91	%		1.08	%
	Commercial - industrial, financial and agricultural		1.48	%		1.25	%		1.46	%		1.27	%		1.32	%
	Real estate - construction		1.61	%		1.93	%		2.00	%		1.87	%		2.25	%
	Real estate - residential mortgage		2.67	%		2.70	%		3.10	%		3.40	%		3.27	%
	Consumer, home equity, leasing and other		1.53	%		1.47	%		1.48	%		1.58	%		1.41	%
	Total		1.38	%		1.30	%		1.44	%		1.41	%		1.49	%
ASSET QUALITY RATIOS:
			Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
			2016			2016			2016			2015			2015
	Non-accrual loans to total loans		0.86	%		0.79	%		0.88	%		0.94	%		0.98	%
	Non-performing loans to total loans		0.96	%		0.90	%		0.99	%		1.05	%		1.07	%
	Non-performing assets to total loans and OREO		1.04	%		0.99	%		1.07	%		1.13	%		1.15	%
	Non-performing assets to total assets		0.80	%		0.76	%		0.82	%		0.87	%		0.87	%
	Allowance for credit losses to loans outstanding		1.15	%		1.17	%		1.20	%		1.24	%		1.25	%
	Allowance for credit losses to non-performing loans		119.59	%		129.26	%		121.05	%		118.37	%		116.81	%
	Non-performing assets to tangible common shareholders' equity and allowance for credit losses		8.51	%		8.02	%		8.67	%		9.27	%		9.35	%

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																				Nine Months Ended
			September 30				June 30				March 31				December 31				September 30				September 30				September 30
			2016				2016				2016				2015				2015				2016				2015
Shareholders' equity (tangible), per share
Shareholders' equity			$	2,129,436			$	2,106,997			$	2,073,309			$	2,041,894			$	2,025,904
Less: Goodwill and intangible assets				(531,556	)			(531,556	)			(531,556	)			(531,556	)			(531,562	)
Tangible shareholders' equity (numerator)			$	1,597,880			$	1,575,441			$	1,541,753			$	1,510,338			$	1,494,342
Shares outstanding, end of period (denominator)				173,144				173,139				173,393				174,176				173,771
	Shareholders' equity (tangible), per share		$	9.23			$	9.10			$	8.89			$	8.67			$	8.60
Return on average common shareholders' equity (tangible)
Net income			$	41,468			$	39,750			$	38,257			$	38,535			$	34,251			$	119,475			$	110,967
Plus: Intangible amortization, net of tax				-				-				-				4				3				-				153
Numerator			$	41,468			$	39,750			$	38,257			$	38,539			$	34,254			$	119,475			$	111,120
Average shareholders' equity			$	2,120,596			$	2,089,915			$	2,058,799			$	2,036,769			$	2,022,829			$	2,089,882			$	2,023,552
Less: Average goodwill and intangible assets				(531,556	)			(531,556	)			(531,556	)			(531,559	)			(531,564	)			(531,556	)			(531,638	)
Average tangible shareholders' equity (denominator)			$	1,589,040			$	1,558,359			$	1,527,243			$	1,505,210			$	1,491,265			$	1,558,326			$	1,491,914
	Return on average common shareholders' equity (tangible), annualized			10.38	%			10.26	%			10.07	%			10.16	%			9.11	%			10.24	%			9.96	%
Efficiency ratio
Non-interest expense			$	119,848			$	121,637			$	120,413			$	118,439			$	124,889			$	361,898			$	361,721
Less: Intangible amortization				-				-				-				(6	)			(5	)			-				(241	)
Less: Loss on redemption of trust preferred securities				-				-				-				-				(5,626	)			-				(5,626	)
Numerator			$	119,848			$	121,637			$	120,413			$	118,433			$	119,258			$	361,898			$	355,854
Net interest income (fully taxable equivalent)			$	135,784			$	133,890			$	134,026			$	132,683			$	130,250			$	403,700			$	385,781
Plus: Total Non-interest income				48,149				46,137				43,137				45,839				44,774				137,423				136,000
Less: Investment securities gains				(2	)			(76	)			(947	)			(776	)			(1,730	)			(1,025	)			(8,290	)
Denominator			$	183,931			$	179,951			$	176,216			$	177,746			$	173,294			$	540,098			$	513,491
	Efficiency ratio			65.16	%			67.59	%			68.33	%			66.63	%			68.82	%			67.01	%			69.30	%
Non-performing assets to tangible common shareholders' equity and allowance for credit losses
Non-performing assets (numerator)			$	150,093			$	139,652			$	148,129			$	155,913			$	155,582
Tangible shareholders' equity			$	1,597,880			$	1,575,441			$	1,541,753			$	1,510,338			$	1,494,342
Plus: Allowance for credit losses				165,169				165,108				166,065				171,412				169,395
Tangible shareholders' equity and allowance for credit losses (denominator)			$	1,763,049			$	1,740,549			$	1,707,818			$	1,681,750			$	1,663,737
	Non-performing assets to tangible common shareholders' equity and allowance for credit losses			8.51	%			8.02	%			8.67	%			9.27	%			9.35	%
Pre-provision net revenue
Net interest income			$	130,565			$	128,916			$	129,054			$	127,799			$	125,694
Non-interest income				48,149				46,137				43,137				45,839				44,774
Less: Investment securities gains				(2	)			(76	)			(947	)			(776	)			(1,730	)
Total revenue			$	178,712			$	174,977			$	171,244			$	172,862			$	168,738
Non-interest expense			$	119,848			$	121,637			$	120,413			$	118,439			$	124,889
Less: Loss on redemption of trust preferred securities				-				-				-				-				(5,626	)
Total Non-interest expense, as adjusted			$	119,848			$	121,637			$	120,413			$	118,439			$	119,263
	Pre-provision net revenue		$	58,864			$	53,340			$	50,831			$	54,423			$	49,475

Attachment Available: http://www2.marketwire.com/mw/frame_mw?attachid=3068479