July 17, 2024

Fulton Financial Corporation Announces Second Quarter 2024 Results

LANCASTER, Pa., July 16, 2024 /PRNewswire/ — Fulton Financial Corporation (NASDAQ: FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $92.4 million, or $0.52 per diluted share, for the second quarter of 2024, an increase of $33.0 million, or $0.16 per share, in comparison to the first quarter of 2024. Operating net income available to common shareholders for the three months ended June 30, 2024 was $82.5 million, or $0.47 per diluted share(1), an increase of $17.1 million, or $0.07 per share in comparison to the first quarter of 2024.

“The second quarter was an extraordinary quarter for Fulton. I want to personally thank both our new Republic teammates and our dedicated Fulton team for an exceptional effort,” said Curtis J. Myers Chairman and CEO of Fulton Financial Corporation. “Fulton’s solid performance, steady business trends and stable asset quality were supplemented by a meaningful contribution from the Republic transaction.”

Republic Transaction

On April 26, 2024, the Corporation announced that its wholly owned banking subsidiary, Fulton Bank, National Association (“Fulton Bank”), acquired substantially all of the assets and assumed substantially all of the deposits and certain liabilities of Republic First Bank, doing business as Republic Bank (“Republic Bank”), from the Federal Deposit Insurance Corporation (the “FDIC”), as receiver for Republic Bank (the “Acquisition”), pursuant to the terms of the Purchase and Assumption Agreement – Whole Bank, All Deposits, effective as of April 26, 2024 (the “Acquisition Date”), among the FDIC, as receiver of Republic Bank, the FDIC and Fulton Bank.

The Acquisition included total assets with preliminary fair values of approximately $4.8 billion including total loans with preliminary fair values of approximately $2.5 billion and investments with a fair value of $1.9 billion. Following the Acquisition, the Corporation sold the acquired investments with a portion of the proceeds used to repay $1.4 billion of assumed borrowings. In the Acquisition, the Corporation assumed $4.1 billion of deposits without a premium. Additionally, the Corporation received $809.9 million in cash from the FDIC and $208.5 million in cash reflected on Republic Bank’s balance sheet.

(1)

Financial measure derived by methods other than generally accepted accounting principles (“GAAP”). Refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of the press release.

Financial Highlights

Second quarter of 2024 results were impacted by the following items:

Preliminary gain on acquisition of $47.4 million (net of tax).

Core deposit intangible of $92.6 million in connection with the Acquisition resulting in intangible amortization expense of $4.1 million for the quarter.

Provision for credit losses of $23.4 million related to non-purchased credit deteriorated loans acquired in the Acquisition.

Acquisition-related expenses of $13.8 million.

Pre-tax gain of $20.3 million in connection with a sale-leaseback transaction (the “Sale-Leaseback Transaction”) involving 40 Fulton Bank financial center office locations.

Restructured a portion of the available-for-sale investment portfolio and realized a pre-tax loss of $20.3 million on the sale of $356.4 million of investment securities with the proceeds reinvested in higher-yielding securities of a similar type and similar duration.

FultonFirst implementation and asset disposal costs of $6.3 million.

Issued 19,166,667 shares of common stock at $15.00 per share resulting in proceeds of approximately $273.0 million net of issuance costs.

The following items highlight notable changes in the components of net income in the second quarter of 2024 compared to the first quarter of 2024:

Net interest income totaled $241.7 million, an increase of $34.8 million. The Acquisition contributed approximately $30.7 million to the increase.

Net interest margin was 3.43%, an increase of 11 basis points, entirely due to the Acquisition.

Non-interest income before investment securities gains (losses) was $113.3 million compared to $57.1 million in the first quarter of 2024. The increase was primarily due to a $47.4 million gain on acquisition (net of tax) as well as $2.8 million from Republic Bank’s operations. The remaining $6.1 million increase in non-interest income included a $1.3 million decrease in losses from equity method investments, a $0.9 million increase in merchant fee income due to seasonality and a merchant fee increase during the quarter, a $0.9 million increase in mortgage banking income from higher loan volumes and higher spreads, an $0.8 million increase in wealth management revenues due to an increase in assets under management in the brokerage business due to equity market returns and organic sales results, a $0.6 million increase in cash management fee income due to an increase in account analysis fees with customers electing to move funds to interest-bearing accounts along with a pricing increase and a $0.3 million increase in gains from Small Business Administration loan sales.

Excluding the $20.3 million gain on the Sale-Leaseback Transaction, reflected in other expense, non-interest expense was $219.8 million compared to $177.6 million in the first quarter of 2024. The increase was largely due to $13.8 million of Acquisition-related expenses and $21.1 million from Republic Bank’s operations. The remaining increase of $7.3 million was primarily due to a $6.7 million increase in salaries and benefits expense as a result of an increase in variable incentive expenses, the impact of the annual merit increases and approximately $1.0 million of severance costs related to the FultonFirst initiative.

Balance Sheet Summary

Net loans totaled $24.1 billion, an increase of $2.7 billion compared to $21.4 billion as of March 31, 2024. The increase was primarily due to the Acquisition resulting in an increase of $2.5 billion based on preliminary fair values as of the Acquisition Date. The reduction in fair value on the acquired loans as of the Acquisition Date was $378.9 million, which included an adjustment for interest rates of $299.5 million, an adjustment for credit of $55.9 million on purchased credit deteriorated (“PCD”) loans and an adjustment for credit of $23.4 million for non-PCD loans. Excluding the impact from the day 1 PCD credit-related adjustment of $55.9 million and purchase accounting accretion of $10.4 million, net loans acquired from Republic Bank declined approximately $33.1 million subsequent to the Acquisition Date. Excluding the Acquisition, net loans increased $123.6 million largely due to increases of $102.9 million and $63.8 million in residential mortgage loans and construction loans, respectively, partially offset by a decrease of $25.7 million in consumer loans and a $19.8 million decrease in leases and other loans.

Deposits totaled $25.6 billion, an increase of $3.8 billion compared to $21.7 billion as of March 31, 2024. The increase was primarily due to the Acquisition resulting in an increase of $3.6 billion based on preliminary fair values as of the Acquisition Date. Deposits assumed in the Acquisition declined approximately $357.3 million subsequent to the Acquisition Date. Excluding the Acquisition, deposits increased $62.7 million largely due to increases of $180.1 million, $159.4 million and $102.8 million in interest-bearing demand deposits, time deposits and savings deposits, respectively, partially offset by decreases of $190.8 million in brokered deposits and $188.8 million in noninterest-bearing demand deposits.

Provision for Credit Losses and Asset Quality

The provision for credit losses was $32.1 million in the second quarter of 2024 compared to $10.9 million in the first quarter of 2024. The increase was primarily related to the Acquisition, which included a provision for credit losses of $23.4 million for non-PCD loans. Excluding the Acquisition, the provision declined $2.2 million primarily due to a $1.4 million reduction in the reserve for unfunded commitments.

Non-performing assets were $163.8 million, or 0.52% of total assets, at June 30, 2024, in comparison to $156.4 million, or 0.57% of total assets, at March 31, 2024. The dollar increase was largely due to the Acquisition.

Net charge-offs for the second quarter of 2024 were 0.19% of total average loans in comparison to 0.16% in the first quarter of 2024.

The allowance for credit losses attributable to net loans totaled $375.9 million, or 1.56% of total loans at June 30, 2024, an increase of $78.1 million. The Acquisition resulted in a $79.4 million increase in the allowance for credit losses.

Additional information on Fulton is available on the Internet at www.fultonbank.com.

Safe Harbor Statement

This press 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,” “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, including future credit losses, 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, the statements 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, 2023, Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the “SEC”) and are, or will be, available in the Investor Relations section of the Corporation’s website (www.fultonbank.com) and on the SEC’s website (www.sec.gov).

Non-GAAP Financial Measures

The Corporation uses certain financial measures in this press release that have been derived from methods other than GAAP. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this press release.

FULTON FINANCIAL CORPORATION

SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)

(dollars in thousands, except per share and shares data)

Three months ended

Jun 30

Mar 31

Dec 31

Sep 30

June 30

2024

2023

Ending Balances

Investment securities

$ 4,184,027

$ 3,783,392

$ 3,666,274

$ 3,698,601

$ 3,867,334

Net loans

24,106,297

21,444,483

21,351,094

21,177,508

21,044,685

Total assets

31,769,813

27,642,957

27,571,915

27,375,177

27,403,163

Deposits

25,559,654

21,741,950

21,537,623

21,421,589

21,206,540

Shareholders’ equity

3,101,609

2,757,679

2,760,139

2,566,693

2,642,152

Average Balances

Investment securities

4,043,136

3,672,844

3,665,261

3,834,824

3,916,130

Net loans

23,345,914

21,370,033

21,255,779

21,121,277

20,866,235

Total assets

30,774,891

27,427,626

27,397,671

27,377,836

27,235,567

Deposits

24,642,954

21,378,754

21,476,548

21,357,295

21,207,143

Shareholders’ equity

2,952,671

2,766,945

2,618,024

2,645,977

2,647,464

Income Statement

Net interest income

241,720

206,937

212,006

213,842

212,852

Provision for credit losses

32,056

10,925

9,808

9,937

9,747

Non-interest income

92,994

57,140

59,378

55,961

60,585

Non-interest expense

199,488

177,600

180,552

171,020

168,018

Income before taxes

103,170

75,552

81,024

88,846

95,672

Net income available to common shareholders

92,413

59,379

61,701

69,535

77,045

Per Share

Net income available to common shareholders (basic)

$0.53

$0.36

$0.38

$0.42

$0.46

Net income available to common shareholders (diluted)

$0.52

$0.36

$0.37

$0.42

$0.46

Operating net income available to common shareholders(1)

$0.47

$0.40

$0.42

$0.43

$0.47

Cash dividends

$0.17

$0.16

Common shareholders’ equity

$16.00

$15.82

$15.67

$14.47

$14.75

Common shareholders’ equity (tangible)(1)

$12.43

$12.37

$12.25

$11.05

$11.36

Weighted average shares (basic)

175,305

162,706

163,975

164,566

165,854

Weighted average shares (diluted)

176,934

164,520

165,650

166,023

167,191

(1) Non-GAAP financial measure. Refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this press release.

Three months ended

Jun 30

Mar 31

Dec 31

Sep 30

June 30

2024

2023

Asset Quality

Net charge-offs to average loans

0.19 %

0.16 %

0.15 %

0.10 %

0.04 %

Non-performing loans to total net loans

0.67 %

0.73 %

0.72 %

0.67 %

0.70 %

Non-performing assets to total assets

0.52 %

0.57 %

0.56 %

0.52 %

0.55 %

ACL – loans(1) to total loans

1.56 %

1.39 %

1.37 %

1.38 %

1.37 %

ACL – loans(1) to non-performing loans

232 %

191 %

208 %

195 %

Profitability

Return on average assets

1.24 %

0.91 %

0.93 %

1.04 %

1.17 %

Operating return on average assets(2)

1.11 %

1.00 %

1.03 %

1.08 %

1.18 %

Return on average common shareholders’ equity

13.47 %

9.28 %

10.09 %

11.25 %

12.59 %

Operating return on average common shareholders’ equity (tangible)(2)

15.56 %

13.08 %

14.68 %

15.17 %

16.52 %

Net interest margin

3.43 %

3.32 %

3.36 %

3.40 %

Efficiency ratio(2)

62.6 %

63.2 %

62.0 %

61.5 %

60.1 %

Non-interest expense to total average assets

2.61 %

2.60 %

2.61 %

2.48 %

2.47 %

Operating non-interest expense to total average assets(2)

2.55 %

2.49 %

2.47 %

2.46 %

Capital Ratios(3)

Tangible common equity ratio (“TCE”)(2)

7.3 %

7.4 %

6.8 %

7.0 %

Tier 1 leverage ratio

9.0 %

9.3 %

9.5 %

9.4 %

9.3 %

Common equity Tier 1 capital ratio

10.3 %

10.1 %

Tier 1 risk-based capital ratio

11.1 %

11.2 %

11.1 %

11.0 %

Total risk-based capital ratio

13.8 %

14.0 %

13.8 %

(1) “ACL – loans” relates to the allowance for credit losses (“ACL”) specifically on “Net Loans” and does not include the ACL related to off-balance-sheet

(“OBS”) credit exposures.

(2) Non-GAAP financial measure. Refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this press release.

(3) Regulatory capital ratios as of June 30, 2024 are preliminary estimates and prior periods are actual.

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

(dollars in thousands)

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

2024

2023

ASSETS

Cash and due from banks

$ 333,238

$ 247,581

$ 300,343

$ 304,042

$ 123,779

Other interest-earning assets

1,188,341

231,389

373,772

222,781

505,141

Loans held for sale

26,822

10,624

15,158

20,368

14,673

Investment securities

4,184,027

3,783,392

3,666,274

3,698,601

3,867,334

Net loans

24,106,297

21,444,483

21,351,094

21,177,508

21,044,685

Less: ACL – loans(1)

(375,941)

(297,888)

(293,404)

(292,739)

(287,442)

Loans, net

23,730,356

21,146,595

21,057,690

20,884,769

20,757,243

Net premises and equipment

180,642

213,541

222,881

215,626

216,322

Accrued interest receivable

120,752

107,089

107,972

101,624

96,991

Goodwill and intangible assets

648,026

560,114

560,687

561,284

561,885

Other assets

1,357,609

1,342,632

1,267,138

1,366,082

1,259,795

Total Assets

$ 31,769,813

$ 27,642,957

$ 27,571,915

$ 27,375,177

$ 27,403,163

LIABILITIES AND SHAREHOLDERS’ EQUITY

Deposits

$ 25,559,654

$ 21,741,950

$ 21,537,623

$ 21,421,589

$ 21,206,540

Borrowings

2,178,597

2,296,040

2,487,526

2,370,112

2,719,114

Other liabilities

929,953

847,288

786,627

1,016,783

835,357

Total Liabilities

28,668,204

24,885,278

24,811,776

24,808,484

24,761,011

Shareholders’ equity

3,101,609

2,757,679

2,760,139

2,566,693

2,642,152

Total Liabilities and Shareholders’ Equity

$ 31,769,813

$ 27,642,957

$ 27,571,915

$ 27,375,177

$ 27,403,163

LOANS, DEPOSITS AND BORROWINGS DETAIL:

Loans, by type:

Real estate – commercial mortgage

$ 9,289,770

$ 8,252,117

$ 8,127,728

$ 8,106,300

$ 7,846,861

Commercial and industrial

4,967,796

4,467,589

4,545,552

4,577,334

4,599,759

Real estate – residential mortgage

6,248,856

5,395,720

5,325,923

5,279,681

5,147,262

Real estate – home equity

1,120,878

1,040,335

1,047,184

1,045,438

1,061,891

Real estate – construction

1,463,799

1,249,199

1,239,075

1,078,263

1,308,564

Consumer

692,086

698,421

729,318

743,976

763,530

Leases and other loans(2)

323,112

341,102

336,314

346,516

316,818

Total Net Loans

$ 24,106,297

$ 21,444,483

$ 21,351,094

$ 21,177,508

$ 21,044,685

Deposits, by type:

Noninterest-bearing demand

$ 5,609,383

$ 5,086,514

$ 5,314,094

$ 5,575,374

$ 5,865,855

Interest-bearing demand

7,478,077

5,521,017

5,722,695

5,757,487

5,543,320

Savings

7,563,495

6,846,038

6,616,901

6,707,729

6,646,448

Total demand and savings

20,650,955

17,453,569

17,653,690

18,040,590

18,055,623

Brokered

995,975

1,152,427

1,144,692

941,059

949,259

Time

3,912,724

3,135,954

2,739,241

2,439,940

2,201,658

Total Deposits

$ 25,559,654

$ 21,741,950

$ 21,537,623

$ 21,421,589

$ 21,206,540

Borrowings, by type:

Federal funds purchased

$ —

$ 240,000

$ 544,000

$ 555,000

Federal Home Loan Bank advances

750,000

900,000

1,100,000

730,000

1,165,000

Senior debt and subordinated debt

535,741

535,566

535,384

540,174

539,994

Other borrowings

892,856

860,474

612,142

555,938

459,120

Total Borrowings

$ 2,178,597

$ 2,296,040

$ 2,487,526

$ 2,370,112

$ 2,719,114

(1) “ACL – loans” relates to the ACL specifically on “Net Loans” and does not include the ACL related to OBS credit exposures.

(2) Includes equipment lease financing, overdraft and net origination fees and costs.

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(dollars in thousands, except per share and share data)

Three months ended

Six months ended

Jun 30

Mar 31

Dec 31

Sep 30

June 30

Jun 30

2024

2023

2024

2023

Net Interest Income:

Interest income

$ 400,506

$ 339,666

$ 338,134

$ 330,371

$ 314,912

$ 740,172

$ 604,732

Interest expense

158,786

132,729

126,128

116,529

102,060

291,515

176,293

Net Interest Income

241,720

206,937

212,006

213,842

212,852

448,657

428,439

Provision for credit losses

32,056

10,925

9,808

9,937

9,747

42,981

34,291

Net Interest Income after Provision

209,664

196,012

202,198

203,905

203,105

405,676

394,148

Non-Interest Income:

Wealth management

20,990

20,155

19,388

19,413

18,678

41,144

36,740

Commercial banking:

Merchant and card

7,798

6,808

7,045

7,626

7,700

14,607

14,534

Cash management

6,966

6,305

6,030

5,960

5,835

13,271

11,350

Capital markets

2,585

2,341

4,258

2,960

6,092

4,926

8,436

Other commercial banking

4,061

3,375

3,447

3,176

3,518

7,434

6,338

Total commercial banking

21,410

18,829

20,780

19,722

23,145

40,238

40,658

Consumer banking:

Card

8,305

6,628

6,739

6,770

6,592

14,933

12,835

Overdraft

3,377

2,786

2,991

2,996

2,696

6,163

5,429

Other consumer banking

2,918

2,254

2,357

2,407

2,432

5,172

4,673

Total consumer banking

14,600

11,668

12,087

12,173

11,720

26,268

22,937

Mortgage banking

3,951

3,090

2,288

3,190

2,940

7,041

4,910

Gain on acquisition, net of tax

47,392

—

47,392

—

Other

4,933

3,398

5,587

1,463

4,106

8,332

7,075

Non-interest income before investment securities
gains (losses)

113,276

57,140

60,130

55,961

60,589

170,415

112,320

Investment securities gains (losses), net

(20,282)

—

(752)

—

(4)

(20,282)

Total Non-Interest Income

92,994

57,140

59,378

55,961

60,585

150,133

112,339

Non-Interest Expense:

Salaries and employee benefits

110,630

95,481

97,275

96,757

94,102

206,111

183,385

Data processing and software

20,357

17,661

16,985

16,914

16,776

38,018

32,571

Net occupancy

17,793

16,149

14,647

14,561

14,374

33,943

28,812

Other outside services

16,933

13,283

14,670

12,094

10,834

30,216

20,960

FDIC insurance

6,696

6,104

11,138

4,738

4,895

12,800

9,690

Intangible amortization

4,688

573

597

601

1,072

5,261

1,746

Equipment

4,561

4,040

3,995

3,475

3,530

8,602

6,920

Professional fees

2,571

2,088

2,302

1,869

1,829

4,659

4,221

Marketing

2,101

1,912

3,550

1,913

1,655

4,012

3,541

Acquisition-related expenses

13,803

—

13,803

—

Other

(645)

20,309

15,393

18,098

18,951

19,662

35,790

Total Non-Interest Expense

199,488

177,600

180,552

171,020

168,018

377,087

327,636

Income Before Income Taxes

103,170

75,552

81,024

88,846

95,672

178,722

178,851

Income tax expense

8,195

13,611

16,761

16,749

16,065

21,806

30,931

Net Income

94,975

61,941

64,263

72,097

79,607

156,916

147,920

Preferred stock dividends

(2,562)

(5,124)

Net Income Available to Common Shareholders

$ 92,413

$ 59,379

$ 61,701

$ 69,535

$ 77,045

$ 151,792

$ 142,796

Three months ended

Six months ended

Jun 30

Mar 31

Dec 31

Sep 30

June 30

Jun 30

2024

2023

2024

2023

PER SHARE:

Net income available to common shareholders (basic)

$0.53

$0.36

$0.38

$0.42

$0.46

$0.90

$0.86

Net income available to common shareholders (diluted)

$0.52

$0.36

$0.37

$0.42

$0.46

$0.89

$0.85

Cash dividends

$0.17

$0.16

$0.34

$0.31

Weighted average shares (basic)

175,305

162,706

163,975

164,566

165,854

169,006

166,227

Weighted average shares (diluted)

176,934

164,520

165,650

166,023

167,191

170,769

167,809

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

(dollars in thousands)

Three months ended

June 30, 2024

March 31, 2024

June 30, 2023

Average

Yield/

Average

Yield/

Average

Yield/

Balance

Interest(1)

Rate

Balance

Interest(1)

Rate

Balance

Interest(1)

Rate

ASSETS

Interest-earning assets:

Net loans(2)

$ 23,345,914

$ 355,533

6.12 %

$ 21,370,033

$ 313,882

5.90 %

$ 20,866,235

$ 287,154

5.52 %

Investment securities(3)

4,396,050

33,799

3.07 %

3,983,753

27,048

2.71 %

4,234,096

27,303

2.57 %

Other interest-earning assets

1,125,886

15,730

5.61 %

249,079

3,328

5.36 %

529,582

4,860

3.68 %

Total Interest-Earning Assets

28,867,850

405,062

5.64 %

25,602,865

344,258

5.40 %

25,629,913

319,317

4.99 %

Noninterest-earning assets:

Cash and due from banks

302,381

282,895

129,682

Premises and equipment

203,166

223,375

216,847

Other assets

1,759,138

1,614,746

1,541,657

Less: ACL – loans(4)

(357,644)

(296,255)

(282,532)

Total Assets

$ 30,774,891

$ 27,427,626

$ 27,235,567

LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest-bearing liabilities:

Demand deposits

$ 7,080,302

$ 31,748

1.80 %

$ 5,596,725

$ 20,500

1.47 %

$ 5,535,669

$ 14,612

1.06 %

Savings deposits

7,309,141

44,901

2.47 %

6,669,228

38,797

2.34 %

6,632,572

29,289

1.77 %

Brokered deposits

1,123,328

15,074

5.40 %

1,083,382

14,655

5.44 %

954,773

12,135

5.10 %

Time deposits

3,670,158

39,364

4.31 %

2,968,344

29,622

4.01 %

2,063,038

13,763

2.68 %

Total Interest-Bearing Deposits

19,182,929

131,087

2.75 %

16,317,679

103,574

2.55 %

15,186,052

69,799

1.84 %

Borrowings and other interest-bearing
liabilities

2,441,691

27,699

4.53 %

2,608,376

29,155

4.46 %

2,790,860

32,261.2

4.60 %

Total Interest-Bearing Liabilities

21,624,620

158,786

2.95 %

18,926,055

132,729

2.82 %

17,976,912

102,060

2.27 %

Noninterest-bearing liabilities:

Demand deposits

5,460,025

5,061,075

6,021,091

Other liabilities

737,575

673,551

590,100

Total Liabilities

27,822,220

24,660,681

24,588,103

Shareholders’ equity

2,952,671

2,766,945

2,647,464

Total Liabilities and Shareholders’ Equity

$ 30,774,891

$ 27,427,626

$ 27,235,567

Net interest income/net interest margin
(fully taxable equivalent)

246,276

3.43 %

211,529

3.32 %

217,257

3.40 %

Tax equivalent adjustment

(4,556)

(4,592)

(4,405)

Net Interest Income

$ 241,720

$ 206,937

$ 212,852

(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.

(2) Average balances include non-performing loans.

(3) Average balances include amortized historical cost for available for sale (“AFS”) securities; the related unrealized holding gains (losses) are included in other assets.

(4) ACL – loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities.

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED)

(dollars in thousands)

Three months ended

Jun 30

Mar 31

Dec 31

Sep 30

June 30

2024

2023

Loans, by type:

Real estate – commercial mortgage

$ 8,958,139

$ 8,166,018

$ 8,090,627

$ 7,912,801

$ 7,775,436

Commercial and industrial

4,853,583

4,517,179

4,579,441

4,611,376

4,629,919

Real estate – residential mortgage

5,977,132

5,353,905

5,303,632

5,209,105

5,008,295

Real estate – home equity

1,117,367

1,039,321

1,043,753

1,045,806

1,066,615

Real estate – construction

1,430,057

1,240,640

1,153,601

1,254,577

1,306,286

Consumer

685,183

721,523

746,011

761,273

763,407

Leases and other loans(1)

324,453

331,447

338,714

326,339

316,277

Total Net Loans

$ 23,345,914

$ 21,370,033

$ 21,255,779

$ 21,121,277

$ 20,866,235

Deposits, by type:

Noninterest-bearing demand

$ 5,460,025

$ 5,061,075

$ 5,440,098

$ 5,672,411

$ 6,021,091

Interest-bearing demand

7,080,302

5,596,725

5,723,169

5,740,229

5,535,669

Savings

7,309,141

6,669,228

6,682,512

6,676,792

6,632,572

Total demand and savings

19,849,468

17,327,028

17,845,779

18,089,432

18,189,332

Brokered

1,123,328

1,083,382

1,051,369

937,657

954,773

Time

3,670,158

2,968,344

2,579,400

2,330,206

2,063,038

Total Deposits

$ 24,642,954

$ 21,378,754

$ 21,476,548

$ 21,357,295

$ 21,207,143

Borrowings, by type:

Federal funds purchased

$ 32,637

$ 173,659

$ 446,707

$ 634,163

$ 679,401

Federal Home Loan Bank advances

833,726

902,890

760,087

793,098

880,811

Senior debt and subordinated debt

535,656

535,479

539,186

540,086

539,906

Other borrowings and other interest-bearing liabilities

1,039,672

996,348

795,747

723,740

690,742

Total Borrowings

$ 2,441,691

$ 2,608,376

$ 2,541,727

$ 2,691,087

$ 2,790,860

(1) Includes equipment lease financing, overdraft and net origination fees and costs.

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

(dollars in thousands)

Six months ended June 30

2024

2023

Average

Yield/

Average

Yield/

Balance

Interest(1)

Rate

Balance

Interest(1)

Rate

ASSETS

Interest-earning assets:

Net loans(2)

$ 22,357,972

$ 669,414

6.02 %

$ 20,665,779

$ 550,219

5.36 %

Investment securities(3)

4,189,901

60,847

2.90 %

4,261,718

54,824

2.57 %

Other interest-earning assets

699,547

19,059

5.47 %

511,456

8,508

3.34 %

Total Interest-Earning Assets

27,247,420

749,320

5.52 %

25,438,953

613,551

4.85 %

Noninterest-Earning assets:

Cash and due from banks

292,638

135,436

Premises and equipment

213,270

219,920

Other assets

1,686,941

1,552,669

Less: ACL – loans(4)

(326,950)

(277,942)

Total Assets

$ 29,113,319

$ 27,069,036

LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest-Bearing liabilities:

Demand deposits

$ 6,338,513

$ 52,248

1.66 %

$ 5,431,696

$ 23,067

0.86 %

Savings deposits

6,989,186

83,699

2.41 %

6,551,470

49,824

1.53 %

Brokered deposits

1,103,356

29,728

5.42 %

698,644

17,308

5.00 %

Time deposits

3,319,249

68,986

4.18 %

1,880,970

21,221

2.28 %

Total Interest-Bearing Deposits

17,750,304

234,661

2.66 %

14,562,780

111,420

1.54 %

Borrowings and other interest-bearing liabilities

2,525,034

56,854

4.49 %

2,928,819

64,873

4.43 %

Total Interest-Bearing Liabilities

20,275,338

291,515

2.89 %

17,491,599

176,293

2.03 %

Noninterest-Bearing liabilities:

Demand deposits

5,260,550

6,329,701

Other liabilities

717,623

617,252

Total Liabilities

26,253,511

24,438,552

Shareholders’ equity

2,859,808

2,630,484

Total Liabilities and Shareholders’ Equity

$ 29,113,319

$ 27,069,036

Net interest income/net interest margin (fully taxable
equivalent)

457,805

3.37 %

437,258

3.46 %

Tax equivalent adjustment

(9,148)

(8,819)

Net Interest Income

$ 448,657

$ 428,439

(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.

(2) Average balances include non-performing loans.

(3) Average balances include amortized historical cost for AFS; the related unrealized holding gains (losses) are included in other assets.

(3) ACL – loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities.

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED)

(dollars in thousands)

Six months ended June 30

2024

2023

Loans, by type:

Real estate – commercial mortgage

$ 8,562,077

$ 7,748,356

Commercial and industrial

4,685,383

4,598,097

Real estate – residential mortgage

5,665,518

4,900,182

Real estate – home equity

1,078,344

1,076,270

Real estate – construction

1,335,348

1,291,299

Consumer

703,353

742,445

Leases and other loans(1)

327,949

309,130

Total Net Loans

$ 22,357,972

$ 20,665,779

Deposits, by type:

Noninterest-bearing demand

$ 5,260,550

$ 6,329,701

Interest-bearing demand

6,338,513

5,431,696

Savings

6,989,186

6,551,470

Total demand and savings

18,588,249

18,312,867

Brokered

1,103,356

698,644

Time

3,319,249

1,880,970

Total Deposits

$ 23,010,854

$ 20,892,481

Borrowings, by type:

Federal funds purchased

$ 103,148

$ 592,753

Federal Home Loan Bank advances

868,308

1,070,148

Senior debt and subordinated debt

535,567

539,817

Other borrowings

1,018,011

726,101

Total Borrowings

$ 2,525,034

$ 2,928,819

(1) Includes equipment lease financing, overdraft and net origination fees and costs.

FULTON FINANCIAL CORPORATION

ASSET QUALITY INFORMATION (UNAUDITED)

(dollars in thousands)

Three months ended

Six months ended
June 30

Jun 30

Mar 31

Dec 31

Sep 30

June 30

Jun 30

2024

2023

2024

2023

Allowance for credit losses related to net loans:

Balance at beginning of period

$ 297,888

$ 293,404

$ 292,739

$ 287,442

$ 278,695

$ 293,404

$ 269,366

CECL day 1 provision expense(1)

23,444

—

23,444

—

Initial purchased credit deteriorated allowance for credit
losses

55,906

—

55,906

—

Loans charged off:

Real estate – commercial mortgage

(7,853)

(26)

(3,547)

(860)

(230)

(7,879)

(13,592)

Commercial and industrial

(2,955)

(7,632)

(3,397)

(3,220)

(2,017)

(10,587)

(2,629)

Real estate – residential mortgage

(35)

(251)

—

(62)

(286)

(62)

Consumer and home equity

(1,766)

(2,238)

(2,192)

(1,803)

(1,313)

(4,004)

(3,519)

Real estate – construction

—

Leases and other loans(2)

(1,398)

(805)

(1,096)

(1,396)

(1,165)

(2,203)

(1,888)

Total loans charged off

(14,007)

(10,952)

(10,232)

(7,279)

(4,787)

(24,959)

(21,690)

Recoveries of loans previously charged off:

Real estate – commercial mortgage

146

152

160

101

298

815

Commercial and industrial

796

1,248

779

620

988

2,044

2,074

Real estate – residential mortgage

122

116

278

238

106

Consumer and home equity

1,161

676

555

1,023

959

1,837

1,620

Real estate – construction

233

—

569

233

771

Leases and other loans(2)

247

162

374

400

213

409

329

Recoveries of loans previously charged off

2,705

2,354

2,233

2,181

2,816

5,059

5,715

Net loans charged off

(11,302)

(8,598)

(7,999)

(5,098)

(1,971)

(19,900)

(15,975)

Provision for credit losses(1)

10,005

13,082

8,664

10,395

10,718

23,087

34,051

Balance at end of period

$ 375,941

$ 297,888

$ 293,404

$ 292,739

$ 287,442

$ 375,941

$ 287,442

Net charge-offs to average loans

0.19 %

0.16 %

0.15 %

0.10 %

0.04 %

0.18 %

0.15 %

Provision for credit losses related to OBS Credit Exposures

Provision for credit losses(1)

$ (1,393)

$ (2,157)

$ 1,144

$ (458)

$ (971)

$ (3,550)

$ 240

NON-PERFORMING ASSETS:

Non-accrual loans

$ 135,367

$ 129,628

$ 121,620

$ 113,022

$ 123,280

Loans 90 days past due and accruing

26,962

26,521

31,721

27,962

24,415

Total non-performing loans

162,329

156,149

153,341

140,984

147,695

Other real estate owned

1,444

277

896

2,549

3,881

Total non-performing assets

$ 163,773

$ 156,426

$ 154,237

$ 143,533

$ 151,576

NON-PERFORMING LOANS, BY TYPE:

Commercial and industrial

$ 50,817

$ 44,118

$ 41,020

$ 33,365

$ 30,588

Real estate – commercial mortgage

46,343

47,891

46,527

44,058

55,048

Real estate – residential mortgage

40,955

40,685

42,029

40,560

39,157

Consumer and home equity

11,589

10,172

10,878

11,580

10,469

Leases and other loans(2)

9,993

10,135

10,011

10,744

11,334

Real estate – construction

2,632

3,148

2,876

677

1,099

Total non-performing loans

$ 162,329

$ 156,149

$ 153,341

$ 140,984

$ 147,695

(1) The sum of these amounts are reflected in the provision for credit losses in the Condensed Consolidated Statements of Income.

(2) Includes equipment lease financing, overdraft and net origination fees and costs.

FULTON FINANCIAL CORPORATION

SUMMARY OF ASSETS ACQUIRED AND LIABILITIES ASSUMED IN ACQUISITION (UNAUDITED)

(dollars in thousands)

as of April 26, 2024

Assets
Acquired/Liabilities
Assumed

Fair Value
Adjustments

Adjusted Assets
Acquired/Liabilities
Assumed

Cash payment received from FDIC

$ 809,920

$ —

$ 809,920

Assets acquired:

Cash and due from banks

208,451

—

208,451

Other interest-earning assets

37,931

—

37,931

Investment securities

1,961,099

(22,528)

1,938,571

Net loans

2,883,930

(378,890)

2,505,040

Net premises and equipment

2,669

(1,699)

970

Accrued interest receivable

16,164

—

16,164

Goodwill and intangible assets

—

92,600

Other assets

11,715

11,782

Total Assets

$ 5,121,959

$ (310,450)

$ 4,811,509

Liabilities assumed:

Deposits

4,112,325

—

4,112,325

Borrowings

1,434,846

1,130

1,435,976

Other liabilities

10,771

1,088

11,859

Total Liabilities

$ 5,557,942

$ 2,218

$ 5,560,160

Gain on acquisition, before tax

$ 61,269

Gain on acquisition, net of tax

$ 47,392

FULTON FINANCIAL CORPORATION

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

(dollars in thousands, except per share and share data)

Explanatory
note:

This press release contains supplemental financial information, as detailed below, that has been derived by methods other than 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 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. 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

Jun 30

Mar 31

Dec 31

Sep 30

June 30

2024

2023

Operating net income available to common shareholders

Net income available to common shareholders

$ 92,413

$ 59,379

$ 61,701

$ 69,535

$ 77,045

Plus: Core deposit intangible amortization

4,556

441

912

Plus: Acquisition-related expense

13,803

—

Less: Non-PCD credit-related interest income from acquisition

(571)

—

Plus: CECL day 1 provision expense

23,444

—

Plus: Interest rate derivative transition valuation(1)

(137)

(151)

(1,102)

2,958

—

Less: Gain on acquisition, net of tax

(47,392)

—

Plus: Loss on securities restructuring

20,282

—

Less: Gain on sale-leaseback

(20,266)

—

Plus: FDIC special assessment

—

956

6,494

—

Plus: FultonFirst implementation and asset disposals

6,323

6,329

3,197

—

Less: Tax impact of adjustments

(9,961)

(1,591)

(1,896)

(714)

(192)

Operating net income available to common shareholders (numerator)

$ 82,494

$ 65,363

$ 68,835

$ 72,220

$ 77,765

Weighted average shares (diluted) (denominator)

176,934

164,520

165,650

166,023

167,191

Operating net income available to common shareholders, per share
(diluted)

$ 0.47

$ 0.40

$ 0.42

$ 0.43

$ 0.47

Common shareholders’ equity (tangible), per share

Shareholders’ equity

$ 3,101,609

$ 2,757,679

$ 2,760,139

$ 2,566,693

$ 2,642,152

Less: Preferred stock

(192,878)

Less: Goodwill and intangible assets

(648,026)

(560,114)

(560,687)

(561,284)

(561,885)

Tangible common shareholders’ equity (numerator)

$ 2,260,705

$ 2,004,687

$ 2,006,574

$ 1,812,531

$ 1,887,389

Shares outstanding, end of period (denominator)

181,831

162,087

163,801

164,084

166,097

Common shareholders’ equity (tangible), per share

$ 12.43

$ 12.37

$ 12.25

$ 11.05

$ 11.36

(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation’s commercial customer interest rate swap program.

(2) Results are annualized.

Three months ended

Jun 30

Mar 31

Dec 31

Sep 30

June 30

2024

2023

Operating return on average assets(2)

Net income

$ 94,975

$ 61,941

$ 64,263

$ 72,097

$ 79,607

Plus: Core deposit intangible amortization

4,556

441

912

Plus: Acquisition-related expense

13,803

—

Less: Non-PCD credit-related interest income from acquisition

(571)

—

Plus: CECL day 1 provision expense

23,444

—

Plus: Interest rate derivative transition valuation(1)

(137)

(151)

(1,102)

2,958

—

Less: Gain on acquisition, net of tax

(47,392)

—

Plus: Loss on securities restructuring

20,282

—

Less: Gain on sale-leaseback

(20,266)

—

Plus: FDIC special assessment

—

956

6,494

—

Plus: FultonFirst implementation and asset disposals

6,323

6,329

3,197

—

Less: Tax impact of adjustments

(9,961)

(1,591)

(1,896)

(714)

(192)

Operating net income (numerator)

$ 85,056

$ 67,925

$ 71,397

$ 74,782

$ 80,327

Total average assets

$ 30,774,891

$ 27,427,626

$ 27,397,671

$ 27,377,836

$ 27,235,567

Less: Average net core deposit intangible

(68,234)

(4,666)

(5,106)

(5,548)

(6,417)

Total operating average assets (denominator)

$ 30,706,657

$ 27,422,960

$ 27,392,565

$ 27,372,288

$ 27,229,150

Operating return on average assets

1.11 %

1.00 %

1.03 %

1.08 %

1.18 %

Operating return on average common shareholders’ equity (tangible)(2)

Net income available to common shareholders

$ 92,413

$ 59,379

$ 61,701

$ 69,535

$ 77,045

Plus: Intangible amortization

4,688

573

597

601

1,072

Plus: Acquisition-related expense

13,803

—

Less: Non-PCD credit-related interest income from acquisition

(571)

—

Plus: CECL day 1 provision expense

23,444

—

Plus: Interest rate derivative transition valuation(1)

(137)

(151)

(1,102)

2,958

—

Less: Gain on acquisition, net of tax

(47,392)

—

Plus: Loss on securities restructuring

20,282

—

Less: Gain on sale-leaseback

(20,266)

—

Plus: FDIC special assessment

—

956

6,494

—

Plus: FultonFirst implementation and asset disposals

6,323

6,329

3,197

—

Less: Tax impact of adjustments

(9,989)

(1,618)

(1,929)

(747)

(225)

Adjusted net income available to common shareholders (numerator)

$ 82,598

$ 65,468

$ 68,958

$ 72,347

$ 77,892

Average shareholders’ equity

$ 2,952,671

$ 2,766,945

$ 2,618,024

$ 2,645,977

$ 2,647,464

Less: Average preferred stock

(192,878)

Less: Average goodwill and intangible assets

(624,471)

(560,393)

(560,977)

(561,578)

(563,146)

Average tangible common shareholders’ equity (denominator)

$ 2,135,322

$ 2,013,674

$ 1,864,169

$ 1,891,521

$ 1,891,440

Operating return on average common shareholders’ equity (tangible)

15.56 %

13.08 %

14.68 %

15.17 %

16.52 %

(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation’s commercial customer interest rate swap program.

(2) Results are annualized.

Three months ended

Jun 30

Mar 31

Dec 31

Sep 30

June 30

2024

2023

Tangible common equity to tangible assets (TCE Ratio)

Shareholders’ equity

$ 3,101,609

$ 2,757,679

$ 2,760,139

$ 2,566,693

$ 2,642,152

Less: Preferred stock

(192,878)

Less: Goodwill and intangible assets

(648,026)

(560,114)

(560,687)

(561,284)

(561,885)

Tangible common shareholders’ equity (numerator)

$ 2,260,705

$ 2,004,687

$ 2,006,574

$ 1,812,531

$ 1,887,389

Total assets

$ 31,769,813

$ 27,642,957

$ 27,571,915

$ 27,375,177

$ 27,403,163

Less: Goodwill and intangible assets

(648,026)

(560,114)

(560,687)

(561,284)

(561,885)

Total tangible assets (denominator)

$ 31,121,787

$ 27,082,843

$ 27,011,228

$ 26,813,893

$ 26,841,278

Tangible common equity to tangible assets

7.26 %

7.40 %

7.43 %

6.76 %

7.03 %

Efficiency ratio

Non-interest expense

$ 199,488

$ 177,600

$ 180,552

$ 171,020

$ 168,018

Less: Acquisition-related expense

(13,803)

—

Less: Gain on sale-leaseback

20,266

—

Less: FDIC special assessment

—

(956)

(6,494)

—

Less: FultonFirst implementation and asset disposals

(6,323)

(6,329)

(3,197)

—

Less: Intangible amortization

(4,688)

(573)

(597)

(601)

(1,072)

Less: Debt extinguishment

—

720

—

Non-interest expense (numerator)

$ 194,940

$ 169,742

$ 170,984

$ 170,419

$ 166,946

Net interest income

$ 241,720

$ 206,937

$ 212,006

$ 213,842

$ 212,852

Tax equivalent adjustment

4,556

4,592

4,549

4,442

4,405

Plus: Total non-interest income

92,994

57,140

59,378

55,961

60,585

Plus: Interest rate derivative transition valuation(1)

(137)

(151)

(1,102)

2,958

—

Less: Non-PCD credit-related interest income from acquisition

(571)

—

Less: Gain on acquisition, net of tax

(47,392)

—

Plus: Investment securities (gains) losses, net

20,282

—

752

—

Total revenue (denominator)

$ 311,452

$ 268,518

$ 275,583

$ 277,203

$ 277,846

Efficiency ratio

62.6 %

63.2 %

62.0 %

61.5 %

60.1 %

Operating non-interest expense to total average assets

Non-interest expense

$ 199,488

$ 177,600

$ 180,552

$ 171,020

$ 168,018

Less: Amortization of tax credit investments

—

Less: Intangible amortization

(4,688)

(573)

(597)

(601)

(1,072)

Less: Acquisition-related expense

(13,803)

—

Less: Gain on sale-leaseback

20,266

—

Less: FDIC special assessment

—

(956)

(6,494)

—

Less: FultonFirst implementation and asset disposals

(6,323)

(6,329)

(3,197)

—

Non-interest expense (numerator)

$ 194,940

$ 169,742

$ 170,264

$ 170,419

$ 166,946

Total average assets (denominator)

$ 30,774,891

$ 27,427,626

$ 27,397,671

$ 27,377,836

$ 27,235,567

Operating non-interest expenses to total average assets

2.55 %

2.49 %

2.47 %

2.46 %

(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation’s commercial customer interest rate swap program.

(2) Results are annualized.

Note: numbers in this report may not sum due to rounding.

Media Contact: Lacey Dean (717) 735-8688
Investor Contact: Matt Jozwiak (717) 327-2657

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SOURCE Fulton Financial Corporation

Fulton Financial Corporation Announces Second Quarter 2024 Results

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Fulton Financial Corporation Announces Second Quarter 2024 Results

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