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0000700564false00007005642024-04-162024-04-160000700564us-gaap:CommonStockMember2024-04-162024-04-160000700564us-gaap:SeriesAPreferredStockMember2024-04-162024-04-16

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

April 16, 2024
Date of Report (date of earliest event reported)

Fulton Financial Corporation
(Exact name of registrant as specified in its charter)
Pennsylvania
 001-39680
23-2195389
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
One Penn Square,
 P.O. Box 4887
Lancaster,
Pennsylvania
17604
               (Address of Principal Executive Offices)
(Zip Code)
(717) 291-2411
(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common stock, par value $2.50 FULT The Nasdaq Stock Market, LLC
Depositary Shares, Each Representing 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A
 FULTP The Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
o



Item 2.02 Results of Operations and Financial Condition.

    On April 16, 2024, Fulton Financial Corporation (the "Corporation") issued a press release (the "Press Release") announcing its results of operations for the first quarter ended March 31, 2024. A copy of the Press Release and supplementary financial information which accompanied the Press Release are attached as Exhibit 99.1 to this Current Report on Form 8-K (this "Current Report") and are incorporated herein by reference. The Corporation also posted on its Investor Relations website, www.fultonbank.com, presentation materials the Corporation intends to use during a conference call and webcast to discuss those results on Wednesday, April 17, 2024 at 10:00 a.m. eastern time. A copy of the presentation materials is attached as Exhibit 99.2 to this Current Report and is incorporated herein by reference.    

The information included in Exhibit 99.1 shall be deemed filed for purposes of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and therefore may be incorporated by reference in filings under the Securities Act of 1933, as amended (the "Securities Act"). The information included in Exhibit 99.2 is being furnished and shall not be deemed filed for purposes of the Exchange Act or be incorporated by reference in any filing under the Securities Act.

Forward-Looking Statements

This Current Report, including Exhibits 99.1 and 99.2, 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. Management’s "2024 Outlook" contained in Exhibit 99.2 to this Current Report is comprised of forward-looking statements.

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 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).

Item 9.01 Financial Statements and Exhibits.
(d)    Exhibits.


Exhibit No. Description
Press release dated April 16, 2024 containing financial information for the quarter ended March 31, 2024, deemed filed under the Securities Exchange Act of 1934.
Presentation materials to be discussed during the conference call and webcast on April 17, 2024, deemed furnished under the Securities Exchange Act of 1934.
104 Cover page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 16, 2024
 FULTON FINANCIAL CORPORATION
By: /s/ Beth Ann L. Chivinski
       Beth Ann L. Chivinski
       Senior Executive Vice President and
       Interim Chief Financial Officer


EX-99.1 2 exhibit991033124earningsre.htm EX-99.1 Document


Exhibit 99.1

FULTON FINANCIAL
CORPORATION

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


Fulton Financial Corporation Announces First Quarter 2024 Results

(April 16, 2024) – Lancaster, PA – Fulton Financial Corporation (NASDAQ: FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $59.4 million, or $0.36 per diluted share, for the first quarter of 2024, a decrease of $2.3 million, or 3.8%, in comparison to the fourth quarter of 2023. Operating net income available to common shareholders for the three months ended March 31, 2024 was $65.4 million, or $0.40 per diluted share(1), a decrease of $3.5 million, or 5.0% in comparison to the fourth quarter of 2023.

“We are pleased with our first quarter results, which are a good start to the year; operating earnings were solid, deposit growth outpaced loan growth during the quarter, net interest margin was in line with our expectations, and asset quality remained stable,” said Curtis J. Myers, Chairman and CEO of Fulton Financial Corporation. "We are focused and making progress on our strategic initiatives.”

Net Interest Income and Balance Sheet

Net interest income for the first quarter of 2024 was $206.9 million, a decrease of $5.1 million in comparison to the fourth quarter of 2023, due to slight decreases in both average interest-earning assets and the net interest margin.

Total average interest-earning assets for the first quarter of 2024 were $25.6 billion, a decrease of $41.0 million from the fourth quarter of 2023 primarily driven by a decrease in average investment securities and average other interest-earning assets of $137.0 million and $18.3 million, respectively, partially offset by an increase in average net loans of $114.3 million.

Total average interest-bearing liabilities increased $347.9 million to $18.9 billion in the first quarter of 2024 in comparison to $18.6 billion in the fourth quarter of 2023. The increase in average interest-bearing liabilities was driven by an increase in the average balance of total interest-bearing deposits and the average balance of borrowings and other interest-bearing liabilities of $281.2 million and $66.6 million, respectively.


(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.
1


The net interest margin for the first quarter of 2024 decreased four basis points to 3.32% in comparison to 3.36% in the fourth quarter of 2023. The decrease was primarily due to an increase in the rate on average interest-bearing deposits and a shift in the funding mix from noninterest-bearing demand deposits to interest-bearing deposits, partially offset by higher loan yields and a lower rate on average borrowings and other interest-bearing liabilities.

A seven basis point increase in the yield on average net loans and an increase in the average balance of net loans of $114.3 million in the first quarter of 2024 drove an increase in interest income of $1.5 million to $339.7 million in comparison to $338.1 million in the fourth quarter of 2023.

Interest expense on interest-bearing liabilities for the first quarter of 2024 increased by $6.6 million to $132.7 million in comparison to $126.1 million in the fourth quarter of 2023. The linked-quarter increase in interest expense in the first quarter of 2024 was primarily due to an increase in the rate on average interest-bearing deposits of 16 basis points, a decline of $379.0 million in the average balance of noninterest-bearing deposits and an increase in the average balance of interest-bearing deposits of $281.2 million in comparison to the fourth quarter of 2023, partially offset by a decrease in the rate on borrowings and other interest-bearing liabilities of 12 basis points.

For the first quarter of 2024, net interest income was $206.9 million, a decrease of $8.7 million, or 4.0%, in comparison to the first quarter of 2023. Interest income for the first quarter of 2024 increased by $49.8 million to $339.7 million in comparison to $289.8 million in the first quarter of 2023, primarily driven by rising interest rates resulting in an increase in interest income from net loans of $50.6 million.

Total average interest-earning assets for the first quarter of 2024 increased by $357.0 million from the first quarter of 2023. Average net loans for the first quarter of 2024 were $21.4 billion, an increase of $0.9 billion from the same period in 2023. Compared to the first quarter of 2023, average investment securities decreased $305.9 million and average other interest-earning assets decreased $244.1 million in the first quarter of 2024.

Total average interest-bearing liabilities for the first quarter of 2024 increased $1.9 billion to $18.9 billion in comparison to $17.0 billion in the first quarter of 2023, driven by an increase in the average balance of total interest-bearing deposits of $2.4 billion, partially offset by a decrease in the average balance of borrowings and other interest-bearing liabilities of $0.5 billion.

Increases in the average balance of net loans of $0.9 billion and yields on net loans of 69 basis points in the first quarter of 2024 compared to the first quarter of 2023 each contributed to the increase in interest income.

Interest expense on interest-bearing liabilities for the first quarter of 2024 increased by $58.5 million to $132.7 million in comparison to $74.2 million in the first quarter of 2023, primarily driven by rising interest rates resulting in an increase to interest expense from interest-bearing deposits of $62.0 million. A decrease in the average balance of noninterest-bearing deposits of $1.6 billion and an increase in the average balance of interest-bearing deposits of $2.4 billion, in the first quarter of 2024 in comparison to the first quarter of 2023 also contributed to the increase in interest expense.
2



Asset Quality

The provision for credit losses was $10.9 million in the first quarter of 2024 compared to $9.8 million in the fourth quarter of 2023 and $24.5 million in the first quarter of 2023. The provision for credit losses of $10.9 million recorded in the first quarter of 2024 was primarily due to net charge-offs of $8.6 million and loan growth.

Non-performing assets were $156.4 million, or 0.57% of total assets, at March 31, 2024, in comparison to $154.2 million, or 0.56% of total assets, at December 31, 2023, and $167.9 million, or 0.62% of total assets, at March 31, 2023.

Net charge-offs for the first quarter of 2024 were 0.16% of total average loans in comparison to 0.15% and 0.27% in the fourth quarter of 2023 and the first quarter of 2023, respectively.

Non-interest Income

Non-interest income before investment securities gains (losses) in the first quarter of 2024 was $57.1 million, a decrease of $3.0 million, or 5.0%, from the fourth quarter of 2023. The decrease in non-interest income was due to a $2.0 million decrease in commercial customer interest rate swap fee income, reflected in capital markets, a $2.2 million decrease in other non-interest income (including a $0.9 million decrease in income from equity method investments and a $1.0 million net change from market movements in our commercial customer interest rate swap program resulting from the reference rate transition from the London Inter-Bank Offered Rate ("LIBOR") to the Secured Overnight Financing Rate ("SOFR")). These decreases were partially offset by increases in wealth management revenues due to an increase in assets under management and mortgage banking income due to higher loan sales volumes and higher spreads.

Compared to the first quarter of 2023, non-interest income before investment securities gains (losses) increased $5.4 million, or 10.5%, from $51.7 million. The increase in non-interest income was primarily due to increases of $2.1 million in wealth management revenues due to an increase in assets under management, $1.3 million in commercial banking income, $1.1 million in mortgage banking income and $0.5 million in consumer banking income. The increase in commercial banking income was primarily due to increases of $0.8 million in cash management fee income and $0.3 million in gains on sale from Small Business Administration loans, reflected in other commercial banking income. The increase in mortgage banking income was driven by higher loan sale volumes and higher spreads.
Non-interest Expense

Non-interest expense was $177.6 million in the first quarter of 2024, a decrease of $3.0 million, or 1.6%, compared to $180.6 million in the fourth quarter of 2023.
3


The decrease was primarily due to a $5.0 million decrease in FDIC insurance expense, which included special assessment charges of $1.0 million in the first quarter of 2024 and $6.5 million in the fourth quarter of 2023, assessed to recover the loss to the Deposit Insurance Fund in connection with the closures of certain banks in 2023. The decrease was partially offset by an increase in FultonFirst implementation costs and loss on asset disposals of $3.1 million. The FultonFirst implementation costs and loss on asset disposals of $6.3 million in the first quarter of 2024 included a $3.6 million loss on disposal of assets, reflected in other non-interest expense, $2.5 million of consulting service expense, included in other outside services, and $0.2 million of severance expense, reflected in salaries and employee benefits expense. The FultonFirst implementation costs and loss on asset disposals of $3.2 million in the fourth quarter of 2023 included $2.6 million of consulting services, reflected in other outside services, and $0.6 million of severance expense, included in salaries and employee benefits expense.

Excluding FultonFirst implementation costs and loss on asset disposals, and FDIC expense noted above in the first quarter of 2024 and the fourth quarter of 2023, non-interest expense decreased $0.5 million, or 0.3%, compared to the fourth quarter of 2023, largely due to decreases in marketing expense of $1.6 million and salaries and employee benefits expense of $1.4 million, partially offset by increases in snow removal costs of $1.1 million, included in net occupancy expense, $0.7 million in data processing and software expense and a debt extinguishment gain of $0.7 million recorded in the fourth quarter of 2023. The $1.6 million decrease in marketing expense was the result of higher costs incurred in the fourth quarter of 2023 related to a targeted customer deposit acquisition program and brand marketing campaigns in growth markets. The $1.4 million decrease in salaries and benefits expense was primarily due to a decrease in healthcare costs and variable incentive expenses, partially offset by an increase in payroll taxes due to the reset of payroll tax caps.

Compared to the first quarter of 2023, excluding the FultonFirst implementation costs and loss on asset disposals of $6.3 million discussed above, non-interest expense increased $11.7 million, or 7.3%. The increase was primarily due to increases of $6.0 million in salaries and employee benefits expense, $1.9 million in data processing and software expense primarily due to technology investments made in 2023, $1.7 million in net occupancy expense driven by snow removal costs, $1.3 million in FDIC insurance, which includes the $1.0 million special assessment charge noted above, and $0.7 million in other outside services expense. The $6.0 million increase in salaries and benefits expense was primarily due to merit increases and healthcare costs.

Income Tax Expense

For the first quarter of 2024 the effective tax rate was 18.0% in comparison to 18.5% for the full-year of 2023.

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




4


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 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.





5


FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
(dollars in thousands, except per share and shares data)
Three months ended
Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
2024 2023 2023 2023 2023
Ending Balances
Investment securities $ 3,783,392 $ 3,666,274 $ 3,698,601 $ 3,867,334 $ 3,950,101
Net loans 21,444,483 21,351,094 21,177,508 21,044,685 20,670,188
Total assets 27,642,957 27,571,915 27,375,177 27,403,163 27,112,176
Deposits 21,741,950 21,537,623 21,421,589 21,206,540 21,316,584
Shareholders' equity 2,757,679 2,760,139 2,566,693 2,642,152 2,618,998
Average Balances
Investment securities 3,672,844 3,665,261 3,834,824 3,916,130 3,964,615
Net loans 21,370,033 21,255,779 21,121,277 20,866,235 20,463,096
Total assets 27,427,626 27,397,671 27,377,836 27,235,567 26,900,653
Deposits 21,378,754 21,476,548 21,357,295 21,207,143 20,574,323
Shareholders' equity 2,766,945 2,618,024 2,645,977 2,647,464 2,613,316
Income Statement
Net interest income 206,937  212,006  213,842  212,852  215,587 
Provision for credit losses 10,925  9,808  9,937  9,747  24,544 
Non-interest income 57,140  59,378  55,961  60,585  51,753 
Non-interest expense 177,600  180,552  171,020  168,018  159,616 
Income before taxes 75,552  81,024  88,846  95,672  83,180 
Net income available to common shareholders 59,379  61,701  69,535  77,045  65,752 
Pre-provision net revenue(1)
 94,184  100,050  102,342  106,495  108,375 
Per Share
Net income available to common shareholders (basic) $0.36  $0.38  $0.42  $0.46  $0.39 
Net income available to common shareholders (diluted) $0.36  $0.37  $0.42  $0.46  $0.39 
Operating net income available to common shareholders(1)
 $0.40  $0.42  $0.43  $0.47  $0.39 
Cash dividends $0.17  $0.17  $0.16  $0.16  $0.15 
Common shareholders' equity $15.82  $15.67  $14.47  $14.75  $14.67 
Common shareholders' equity (tangible)(1)
 $12.37  $12.25  $11.05  $11.36  $11.26 
Weighted average shares (basic) 162,706  163,975  164,566  165,854  166,605 
Weighted average shares (diluted) 164,520  165,650  166,023  167,191  168,401 
(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.
6


Three months ended
Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
2024 2023 2023 2023 2023
Asset Quality
Net charge-offs to average loans 0.16  % 0.15  % 0.10  % 0.04  % 0.27  %
Non-performing loans to total net loans 0.73  % 0.72  % 0.67  % 0.70  % 0.80  %
Non-performing assets to total assets 0.57  % 0.56  % 0.52  % 0.55  % 0.62  %
ACL - loans(1) to total loans
 1.39  % 1.37  % 1.38  % 1.37  % 1.35  %
ACL - loans(1) to non-performing loans
 191  % 191  % 208  % 195  % 169  %
Profitability
Return on average assets 0.91  % 0.93  % 1.04  % 1.17  % 1.03  %
Operating return on average assets(2)
 1.00  % 1.03  % 1.08  % 1.18  % 1.04  %
Return on average common shareholders' equity 9.28  % 10.09  % 11.25  % 12.59  % 11.02  %
Operating return on average common shareholders' equity (tangible)(2)
 13.08  % 14.68  % 15.17  % 16.52  % 14.46  %
Net interest margin 3.32  % 3.36  % 3.40  % 3.40  % 3.53  %
Efficiency ratio(2)
 63.2  % 62.0  % 61.5  % 60.1  % 58.5  %
Non-interest expense to total average assets 2.60  % 2.61  % 2.48  % 2.47  % 2.41  %
Operating non-interest expense to total average assets(2)
 2.49  % 2.47  % 2.47  % 2.46  % 2.40  %
Capital Ratios(3)
Tangible common equity ratio ("TCE")(2)
 7.4  % 7.4  % 6.8  % 7.0  % 7.0  %
Tier 1 leverage ratio 9.4  % 9.5  % 9.4  % 9.3  % 9.2  %
Common equity Tier 1 capital ratio 10.2  % 10.3  % 10.3  % 10.1  % 9.8  %
Tier 1 risk-based capital ratio 11.0  % 11.2  % 11.1  % 11.0  % 10.6  %
Total risk-based capital ratio 13.9  % 14.0  % 14.0  % 13.8  % 13.4  %
(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 March 31, 2024 are preliminary estimates and prior periods are actual.

7

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
2024 2023 2023 2023 2023
ASSETS
Cash and due from banks $ 247,581  $ 300,343  $ 304,042  $ 123,779  $ 129,003 
Other interest-earning assets 231,389  373,772  222,781  505,141  545,355 
Loans held for sale 10,624  15,158  20,368  14,673  6,507 
Investment securities 3,783,392  3,666,274  3,698,601  3,867,334  3,950,101 
Net loans 21,444,483  21,351,094  21,177,508  21,044,685  20,670,188 
Less: ACL - loans(1)
 (297,888) (293,404) (292,739) (287,442) (278,695)
   Loans, net 21,146,595  21,057,690  20,884,769  20,757,243  20,391,493 
Net premises and equipment 213,541  222,881  215,626  216,322  216,059 
Accrued interest receivable 107,089  107,972  101,624  96,991  90,267 
Goodwill and intangible assets 560,114  560,687  561,284  561,885  563,502 
Other assets 1,342,632  1,267,138  1,366,082  1,259,795  1,219,889 
    Total Assets $ 27,642,957  $ 27,571,915  $ 27,375,177  $ 27,403,163  $ 27,112,176 
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 21,741,950  $ 21,537,623  $ 21,421,589  $ 21,206,540  $ 21,316,584 
Borrowings 2,296,040  2,487,526  2,370,112  2,719,114  2,446,770 
Other liabilities 847,288  786,627  1,016,783  835,357  729,824 
    Total Liabilities 24,885,278  24,811,776  24,808,484  24,761,011  24,493,178 
Shareholders' equity 2,757,679  2,760,139  2,566,693  2,642,152  2,618,998 
    Total Liabilities and Shareholders' Equity $ 27,642,957  $ 27,571,915  $ 27,375,177  $ 27,403,163  $ 27,112,176 
LOANS, DEPOSITS AND BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage $ 8,252,117  $ 8,127,728  $ 8,106,300  $ 7,846,861  $ 7,746,920 
Commercial and industrial 4,467,589  4,545,552  4,577,334  4,599,759  4,596,096 
Real estate - residential mortgage 5,395,720  5,325,923  5,279,681  5,147,262  4,880,919 
Real estate - home equity 1,040,335  1,047,184  1,045,438  1,061,891  1,074,712 
Real estate - construction 1,249,199  1,239,075  1,078,263  1,308,564  1,326,754 
Consumer 698,421  729,318  743,976  763,530  730,775 
Leases and other loans(2)
 341,102  336,314  346,516  316,818  314,012 
Total Net Loans $ 21,444,483  $ 21,351,094  $ 21,177,508  $ 21,044,685  $ 20,670,188 
Deposits, by type:
Noninterest-bearing demand $ 5,086,514  $ 5,314,094  $ 5,575,374  $ 5,865,855  $ 6,403,484 
Interest-bearing demand 5,521,017  5,722,695  5,757,487  5,543,320  5,478,237 
Savings 6,846,038  6,616,901  6,707,729  6,646,448  6,579,806 
     Total demand and savings 17,453,569  17,653,690  18,040,590  18,055,623  18,461,527 
Brokered 1,152,427  1,144,692  941,059  949,259  960,919 
Time 3,135,954  2,739,241  2,439,940  2,201,658  1,894,138 
Total Deposits $ 21,741,950  $ 21,537,623  $ 21,421,589  $ 21,206,540  $ 21,316,584 
Borrowings, by type:
Federal funds purchased $ —  $ 240,000  $ 544,000  $ 555,000  $ 525,000 
Federal Home Loan Bank advances 900,000  1,100,000  730,000  1,165,000  747,000 
Senior debt and subordinated debt 535,566  535,384  540,174  539,994  539,814 
Other borrowings 860,474  612,142  555,938  459,120  634,956 
Total Borrowings $ 2,296,040  $ 2,487,526  $ 2,370,112  $ 2,719,114  $ 2,446,770 
(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.
8

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands, except per share and share data)
Three months ended
Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
2024 2023 2023 2023 2023
Net Interest Income:
Interest income $ 339,666  $ 338,134  $ 330,371  $ 314,912  $ 289,820 
Interest expense 132,729  126,128  116,529  102,060  74,233 
    Net Interest Income 206,937  212,006  213,842  212,852  215,587 
Provision for credit losses 10,925  9,808  9,937  9,747  24,544 
    Net Interest Income after Provision 196,012  202,198  203,905  203,105  191,043 
Non-Interest Income:
Wealth management 20,155  19,388  19,413  18,678  18,062 
Commercial banking:
   Merchant and card 6,808  7,045  7,626  7,700  6,834 
   Cash management 6,305  6,030  5,960  5,835  5,515 
   Capital markets 2,341  4,258  2,960  6,092  2,344 
   Other commercial banking 3,375  3,447  3,176  3,518  2,820 
Total commercial banking 18,829  20,780  19,722  23,145  17,513 
Consumer banking:
  Card 6,628  6,739  6,770  6,592  6,243 
  Overdraft 2,786  2,991  2,996  2,696  2,733 
  Other consumer banking 2,254  2,357  2,407  2,432  2,241 
Total consumer banking 11,668  12,087  12,173  11,720  11,217 
Mortgage banking 3,090  2,288  3,190  2,940  1,970 
Other 3,398  5,587  1,463  4,106  2,968 
Non-interest income before investment securities gains (losses) 57,140  60,130  55,961  60,589  51,730 
Investment securities gains (losses), net —  (752) —  (4) 23 
    Total Non-Interest Income 57,140  59,378  55,961  60,585  51,753 
Non-Interest Expense:
Salaries and employee benefits 95,481  97,275  96,757  94,102  89,283 
Data processing and software 17,661  16,985  16,914  16,776  15,796 
Net occupancy 16,149  14,647  14,561  14,374  14,438 
Other outside services 13,283  14,670  12,094  10,834  10,126 
FDIC insurance 6,104  11,138  4,738  4,895  4,795 
Equipment 4,040  3,995  3,475  3,530  3,389 
Professional fees 2,088  2,302  1,869  1,829  2,392 
Marketing 1,912  3,550  1,913  1,655  1,886 
Intangible amortization 573  597  601  1,072  674 
Other 20,309  15,393  18,098  18,951  16,837 
    Total Non-Interest Expense 177,600  180,552  171,020  168,018  159,616 
    Income Before Income Taxes 75,552  81,024  88,846  95,672  83,180 
Income tax expense 13,611  16,761  16,749  16,065  14,866 
    Net Income 61,941  64,263  72,097  79,607  68,314 
Preferred stock dividends (2,562) (2,562) (2,562) (2,562) (2,562)
     Net Income Available to Common Shareholders $ 59,379  $ 61,701  $ 69,535  $ 77,045  $ 65,752 
9

Three months ended
Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
2024 2023 2023 2023 2023
PER SHARE:
Net income available to common shareholders (basic) $0.36  $0.38  $0.42  $0.46  $0.39 
Net income available to common shareholders (diluted) $0.36  $0.37  $0.42  $0.46  $0.39 
Cash dividends $0.17  $0.17  $0.16  $0.16  $0.15 
Weighted average shares (basic) 162,706  163,975  164,566  165,854  166,605 
Weighted average shares (diluted) 164,520  165,650  166,023  167,191  168,401 




10

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
(dollars in thousands)
Three months ended
March 31, 2024 December 31, 2023 March 31, 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)
 $ 21,370,033  $ 313,882  5.90  % $ 21,255,779  $ 311,992  5.83  % $ 20,463,096  $ 263,065  5.21  %
Investment securities(3)
 3,983,753  27,048  2.71  % 4,120,750  27,227  2.64  % 4,289,643  27,522  2.60  %
Other interest-earning assets 249,079  3,328  5.36  % 267,329  3,464  5.17  % 493,130  3,648  3.00  %
Total Interest-Earning Assets 25,602,865  344,258  5.40  % 25,643,858  342,683  5.31  % 25,245,869  294,235  4.73  %
Noninterest-earning assets:
Cash and due from banks 282,895  282,614  141,254 
Premises and equipment 223,375  219,994  223,025 
Other assets 1,614,746  1,545,535  1,563,806 
Less: ACL - loans(4)
 (296,255) (294,330) (273,301)
Total Assets $ 27,427,626  $ 27,397,671  $ 26,900,653 
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits $ 5,596,725  $ 20,500  1.47  % $ 5,723,169  $ 20,737  1.44  % $ 5,326,566  $ 8,455  0.64  %
Savings deposits 6,669,228  38,797  2.34  % 6,682,512  38,239  2.27  % 6,469,468  20,535  1.29  %
Brokered deposits 1,083,382  14,655  5.44  % 1,051,369  14,078  5.31  % 439,670  5,173  4.77  %
Time deposits 2,968,344  29,622  4.01  % 2,579,400  23,575  3.63  % 1,696,878  7,458  1.78  %
Total Interest-Bearing Deposits 16,317,679  103,574  2.55  % 16,036,450  96,629  2.39  % 13,932,582  41,621  1.21  %
Borrowings and other interest-bearing liabilities 2,608,376  29,155  4.46  % 2,541,727  29,499  4.58  % 3,058,684  32,613  4.32  %
Total Interest-Bearing Liabilities 18,926,055  132,729  2.82  % 18,578,177  126,128  2.69  % 16,991,266  74,234  1.78  %
Noninterest-bearing liabilities:
Demand deposits 5,061,075  5,440,098  6,641,741 
Other noninterest-bearing liabilities 673,551  761,372  654,330 
Total Liabilities 24,660,681  24,779,647  24,287,337 
Total Deposits 21,378,754  1.95  % 21,476,548  1.79  % 20,574,323  0.82  %
Total interest-bearing liabilities and non-interest bearing deposits 23,987,130  2.22  % 24,018,275  2.08  % 23,633,007  1.27  %
Shareholders' equity 2,766,945  2,618,024  2,613,316 
Total Liabilities and Shareholders' Equity $ 27,427,626  $ 27,397,671  $ 26,900,653 
Net interest income/net interest margin (fully taxable equivalent) 211,529  3.32  % 216,555  3.36  % 220,001  3.53  %
Tax equivalent adjustment (4,592) (4,549) (4,414)
Net Interest Income $ 206,937  $ 212,006  $ 215,587 
(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.




11

FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED):
(dollars in thousands)
Three months ended
Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
2024 2023 2023 2023 2023
Loans, by type:
Real estate - commercial mortgage $ 8,166,018  $ 8,090,627  $ 7,912,801  $ 7,775,436  $ 7,720,975 
Commercial and industrial 4,517,179  4,579,441  4,611,376  4,629,919  4,565,923 
Real estate - residential mortgage 5,353,905  5,303,632  5,209,105  5,008,295  4,790,868 
Real estate - home equity 1,039,321  1,043,753  1,045,806  1,066,615  1,086,032 
Real estate - construction 1,240,640  1,153,601  1,254,577  1,306,286  1,276,145 
Consumer 721,523  746,011  761,273  763,407  721,248 
Leases and other loans(1)
 331,447  338,714  326,339  316,277  301,905 
Total Net Loans $ 21,370,033  $ 21,255,779  $ 21,121,277  $ 20,866,235  $ 20,463,096 
Deposits, by type:
Noninterest-bearing demand $ 5,061,075  $ 5,440,098  $ 5,672,411  $ 6,021,091  $ 6,641,741 
Interest-bearing demand 5,596,725  5,723,169  5,740,229  5,535,669  5,326,566 
Savings 6,669,228  6,682,512  6,676,792  6,632,572  6,469,468 
     Total demand and savings 17,327,028  17,845,779  18,089,432  18,189,332  18,437,775 
Brokered 1,083,382  1,051,369  937,657  954,773  439,670 
Time 2,968,344  2,579,400  2,330,206  2,063,038  1,696,878 
Total Deposits $ 21,378,754  $ 21,476,548  $ 21,357,295  $ 21,207,143  $ 20,574,323 
Borrowings, by type:
Federal funds purchased $ 173,659  $ 446,707  $ 634,163  $ 679,401  $ 505,142 
Federal Home Loan Bank advances 902,890  760,087  793,098  880,811  1,261,589 
Senior debt and subordinated debt 535,479  539,186  540,086  539,906  539,726 
Other borrowings and other interest-bearing liabilities 996,348  795,747  723,740  690,742  752,227 
Total Borrowings $ 2,608,376  $ 2,541,727  $ 2,691,087  $ 2,790,860  $ 3,058,684 
(1) Includes equipment lease financing, overdraft and net origination fees and costs.

12

FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
(dollars in thousands)
Three months ended
Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
2024 2023 2023 2023 2023
Allowance for credit losses related to net loans:
Balance at beginning of period $ 293,404 $ 292,739 $ 287,442 $ 278,695 $ 269,366
Loans charged off:
    Real estate - commercial mortgage (26) (3,547) (860) (230) (13,362)
    Commercial and industrial (7,632) (3,397) (3,220) (2,017) (612)
    Real estate - residential mortgage (251) — — (62) —
    Consumer and home equity (2,238) (2,192) (1,803) (1,313) (2,206)
    Real estate - construction — — — — —
    Leases and other loans(1)
 (805) (1,096) (1,396) (1,165) (723)
    Total loans charged off (10,952) (10,232) (7,279) (4,787) (16,903)
Recoveries of loans previously charged off:
    Real estate - commercial mortgage 152 160 101 29 786
    Commercial and industrial 1,248 779 620 988 1,086
    Real estate - residential mortgage 116 278 37 58 48
    Consumer and home equity 676 555 1,023 959 661
    Real estate - construction — 87 — 569 202
    Leases and other loans(1)
 162 374 400 213 116
    Recoveries of loans previously charged off 2,354 2,233 2,181 2,816 2,899
Net loans charged off (8,598) (7,999) (5,098) (1,971) (14,004)
Provision for credit losses 13,082 8,664 10,395 10,718 23,333
Balance at end of period $ 297,888 $ 293,404 $ 292,739 $ 287,442 $ 278,695
Net charge-offs to average loans 0.16  % 0.15  % 0.10  % 0.04  % 0.27  %
Provision for credit losses related to OBS Credit Exposures
Provision for credit losses $ (2,157) $ 1,144 $ (458) $ (971) $ 1,211
NON-PERFORMING ASSETS:
Non-accrual loans $ 129,628 $ 121,620 $ 113,022 $ 123,280 $ 134,303
Loans 90 days past due and accruing 26,521 31,721 27,962 24,415 30,336
    Total non-performing loans 156,149 153,341 140,984 147,695 164,639
Other real estate owned 277 896 2,549 3,881 3,304
Total non-performing assets $ 156,426 $ 154,237 $ 143,533 $ 151,576 $ 167,943
NON-PERFORMING LOANS, BY TYPE:
Real estate - commercial mortgage $ 47,891 $ 46,527 $ 44,058 $ 55,048 $ 61,322
Commercial and industrial 44,118 41,020 33,365 30,588 33,555
Real estate - residential mortgage 40,685 42,029 40,560 39,157 46,576
Consumer and home equity 10,172 10,878 11,580 10,469 8,983
Real estate - construction 3,148 2,876 677 1,099 1,509
Leases and other loans(1)
 10,135 10,011 10,744 11,334 12,694
Total non-performing loans $ 156,149 $ 153,341 $ 140,984 $ 147,695 $ 164,639
(1) Includes equipment lease financing, overdraft and net origination fees and costs.
13

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
Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
2024 2023 2023 2023 2023
Operating net income available to common shareholders
Net income available to common shareholders $ 59,379 $ 61,701 $ 69,535 $ 77,045 $ 65,752
Plus: Core deposit intangible amortization 441 441 441 912 514
Plus: Interest rate derivative transition valuation(1)
 (151) (1,102) 2,958 — —
Plus: FDIC special assessment 956 6,494 — — —
Plus: FultonFirst implementation and asset disposals 6,329 3,197 — — —
Less: Tax impact of adjustments (1,591) (1,896) (714) (192) (108)
Operating net income available to common shareholders (numerator) $ 65,363 $ 68,835 $ 72,220 $ 77,765 $ 66,158
Weighted average shares (diluted) (denominator) 164,520 165,650 166,023 167,191 168,401
Operating net income available to common shareholders, per share (diluted) $ 0.40 $ 0.42 $ 0.43 $ 0.47 $ 0.39
Common shareholders' equity (tangible), per share
Shareholders' equity $ 2,757,679 $ 2,760,139 $ 2,566,693 $ 2,642,152 $ 2,618,998
Less: Preferred stock (192,878) (192,878) (192,878) (192,878) (192,878)
Less: Goodwill and intangible assets (560,114) (560,687) (561,284) (561,885) (563,502)
Tangible common shareholders' equity (numerator) $ 2,004,687 $ 2,006,574 $ 1,812,531 $ 1,887,389 $ 1,862,618
Shares outstanding, end of period (denominator) 162,087 163,801 164,084 166,097 165,396
Common shareholders' equity (tangible), per share $ 12.37 $ 12.25 $ 11.05 $ 11.36 $ 11.26
Operating return on average assets
Net income $ 61,941 $ 64,263 $ 72,097 $ 79,607 $ 68,314
Plus: Core deposit intangible amortization 441 441 441 912 514
Plus: Interest rate derivative transition valuation(1)
 (151) (1,102) 2,958 — —
Plus: FDIC special assessment 956 6,494 — — —
Plus: FultonFirst implementation and asset disposals 6,329 3,197 — — —
Less: Tax impact of adjustments (1,591) (1,896) (714) (192) (108)
Operating net income (numerator) $ 67,925 $ 71,397 $ 74,782 $ 80,327 $ 68,720
Total average assets $ 27,427,626 $ 27,397,671 $ 27,377,836 $ 27,235,567 $ 26,900,653
Less: Average net core deposit intangible (4,666) (5,106) (5,548) (6,417) (6,937)
Total operating average assets (denominator) $ 27,422,960 $ 27,392,565 $ 27,372,288 $ 27,229,150 $ 26,893,716
Operating return on average assets 1.00% 1.03% 1.08% 1.18% 1.04%
(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.
14

Three months ended
Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
2024 2023 2023 2023 2023
Operating return on average common shareholders' equity (tangible)
Net income available to common shareholders $ 59,379 $ 61,701 $ 69,535 $ 77,045 $ 65,752
Plus: Intangible amortization 573 597 601 1,072 674
Plus: Interest rate derivative transition valuation(1)
 (151) (1,102) 2,958 — —
Plus: FDIC special assessment 956 6,494 — — —
Plus: FultonFirst implementation and asset disposals 6,329 3,197 — — —
Less: Tax impact of adjustments (1,618) (1,929) (747) (225) (142)
Adjusted net income available to common shareholders (numerator) $ 65,468 $ 68,958 $ 72,347 $ 77,892 $ 66,284
Average shareholders' equity $ 2,766,945 $ 2,618,024 $ 2,645,977 $ 2,647,464 $ 2,613,316
Less: Average preferred stock (192,878) (192,878) (192,878) (192,878) (192,878)
Less: Average goodwill and intangible assets (560,393) (560,977) (561,578) (563,146) (561,744)
Average tangible common shareholders' equity (denominator) $ 2,013,674 $ 1,864,169 $ 1,891,521 $ 1,891,440 $ 1,858,694
Operating return on average common shareholders' equity (tangible) 13.08% 14.68% 15.17% 16.52% 14.46%
Tangible common equity to tangible assets (TCE Ratio)
Shareholders' equity $ 2,757,679 $ 2,760,139 $ 2,566,693 $ 2,642,152 $ 2,618,998
Less: Preferred stock (192,878) (192,878) (192,878) (192,878) (192,878)
Less: Goodwill and intangible assets (560,114) (560,687) (561,284) (561,885) (563,502)
Tangible common shareholders' equity (numerator) $ 2,004,687 $ 2,006,574 $ 1,812,531 $ 1,887,389 $ 1,862,618
Total assets $ 27,642,957 $ 27,571,915 $ 27,375,177 $ 27,403,163 $ 27,112,176
Less: Goodwill and intangible assets (560,114) (560,687) (561,284) (561,885) (563,502)
Total tangible assets (denominator) $ 27,082,843 $ 27,011,228 $ 26,813,893 $ 26,841,278 $ 26,548,674
Tangible common equity to tangible assets 7.40% 7.43% 6.76% 7.03% 7.02%
Efficiency ratio
Non-interest expense $ 177,600 $ 180,552 $ 171,020 $ 168,018 $ 159,616
Less: FDIC special assessment (956) (6,494) — — —
Less: FultonFirst implementation and asset disposals (6,329) (3,197) — — —
Less: Intangible amortization (573) (597) (601) (1,072) (674)
Less: Debt extinguishment — 720 — — —
Non-interest expense (numerator) $ 169,742 $ 170,984 $ 170,419 $ 166,946 $ 158,942
Net interest income $ 206,937 $ 212,006 $ 213,842 $ 212,852 $ 215,587
Tax equivalent adjustment 4,592 4,549 4,442 4,405 4,414
Plus: Total non-interest income 57,140 59,378 55,961 60,585 51,753
Plus: Interest rate derivative transition valuation(1)
 (151) (1,102) 2,958 — —
Less: Investment securities (gains) losses, net — 752 — 4 (23)
Total revenue (denominator) $ 268,518 $ 275,583 $ 277,203 $ 277,846 $ 271,731
Efficiency ratio 63.2% 62.0% 61.5% 60.1% 58.5%
(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.
15

Three months ended
Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
2024 2023 2023 2023 2023
Operating non-interest expense to total average assets
Non-interest expense $ 177,600 $ 180,552 $ 171,020 $ 168,018 $ 159,616
Less: Intangible amortization (573) (597) (601) (1,072) (674)
Less: FDIC special assessment (956) (6,494) — — —
Less: FultonFirst implementation and asset disposals (6,329) (3,197) — — —
Non-interest expense (numerator) $ 169,742 $ 170,264 $ 170,419 $ 166,946 $ 158,942
Total average assets (denominator) $ 27,427,626 $ 27,397,671 $ 27,377,836 $ 27,235,567 $ 26,900,653
Operating non-interest expenses to total average assets 2.49% 2.47% 2.47% 2.46% 2.40%
Pre-provision net revenue
Net interest income $ 206,937 $ 212,006 $ 213,842 $ 212,852 $ 215,587
Non-interest income 57,140 59,378 55,961 60,585 51,753
Plus: Interest rate derivative transition valuation(1)
 (151) (1,102) 2,958 — —
Less: Investment securities (gains) losses, net — 752 — 4 (23)
Total revenue $ 263,926 $ 271,034 $ 272,761 $ 273,441 $ 267,317
Non-interest expense $ 177,600 $ 180,552 $ 171,020 $ 168,018 $ 159,616
Less: Intangible amortization (573) (597) (601) (1,072) (674)
Less: FDIC special assessment (956) (6,494) — — —
Less: FultonFirst implementation and asset disposals (6,329) (3,197) — — —
Less: Debt extinguishment — 720 — — —
Total non-interest expense $ 169,742 $ 170,984 $ 170,419 $ 166,946 $ 158,942
Pre-provision net revenue $ 94,184 $ 100,050 $ 102,342 $ 106,495 $ 108,375
(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.
Note: numbers in this report may not sum due to rounding.


16
EX-99.2 3 esslide-consolidated1q24.htm EX-99.2 esslide-consolidated1q24
FIRST QUARTER 2024 RESULTS NASDAQ: FULT Data as of or for the period ended March 31, 2024 unless otherwise noted

 
This presentation may contain forward-looking statements with respect to Fulton Financial Corporation's (the "Corporation") 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. Management’s "2024 Outlook" contained herein is comprised of forward-looking statements. 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 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). The Corporation uses certain financial measures in this presentation that have been derived by methods other than generally accepted accounting principles ("GAAP"). These non-GAAP financial measures are reconciled to the most comparable GAAP measures at the end of this presentation. 2

 
3 A STABLE DEPOSIT PORTFOLIO THAT REMAINS GRANULAR, TENURED AND DIVERSIFIED WITH SIGNIFICANT LIQUIDITY COVERAGE Deposit Mix By Customer (March 31, 2024) Deposit Portfolio Highlights(1) 755,000 deposit accounts $28,820 average deposit account balance 10+ years average deposit account age 24% estimated uninsured deposits 243% coverage of estimated uninsured deposits Deposit Mix By Product(2) (1) As of March 31, 2024. Estimated uninsured deposits net of collateralized municipal deposits and inter-company deposits. For the calculation of the coverage of estimated uninsured deposits, please refer to the slide titled “Liquidity Profile.” (2) Deposit balances are ending balances. (dollars in millions)

 
THE LOAN PORTFOLIO IS DIVERSIFIED AND GRANULAR, WITH LOW OFFICE CONCENTRATION AT 3% OF LOANS 4 Office Only Profile • $694 million in office loan commitments • $662 million in office loans outstanding • representing 3% of total loans • Average loan size is $2.2 million • Weighted average loan-to-value(1) (“LTV”) ratio of 60% • Weighted average debt service coverage ratio (“DSCR”) of 1.34x • 77% of loans with full recourse; 63% LTV; 1.26x DSCR • 23% of loans non-recourse; 52% LTV; 1.60x DSCR • Eight relationships over $20 million, totaling $196 million in commitments, including: • Three relationships in central business districts • $146 million in commitments located in central business districts • Classification • 37% Class A • 23% Class B • 5% Class C • 35% Not Classified Total Loan Portfolio (March 31, 2024) (1) LTV as of most recent appraisal.

 
$63 $161 $93 $204 $173 204 75 13 16 7 Under $1MM $1MM - $5MM $5MM - $10MM $10MM - $20MM Greater than $20MM Commitments (in millions) Number of Loans THE OFFICE PORTFOLIO HAS BEEN ORIGINATED OVER TIME, WILL MATURE OVER TIME, AND REMAINS GRANULAR AND DIVERSE 5 Originated Over Time Maturing Over Time Granular Loan Portfolio Geographically Diverse by MSA(1) (1) Metropolitan Statistical Areas or “MSA” titled in short name for presentation purposes. (2) The Corporation’s presence in the New York-Newark-Jersey City MSA extends from central New Jersey into northern New Jersey, and includes zero office loans in the State of New York component of the New York MSA. (2)

 
MULTI-FAMILY LOANS REPRESENT 7% OF THE TOTAL LOAN PORTFOLIO WITH A SMALL AVERAGE LOAN SIZE 6 (1) LTV as of most recent appraisal. Multi-Family Profile • $2.1 billion in multi-family loan commitments • $1.6 billion in multi-family loans outstanding • Average loan size is $3.8 million • Weighted average LTV(1) ratio of 59% • Weighted Average DSCR of 1.26x • 89% of loans with recourse • 39% construction, 61% stabilized • Classification o 48% Class A o 14% Class B o 3% Class C o 35% Not Classified Total Loan Portfolio (March 31, 2024)

 
$253 $255 $420 $1,199 43 48 66 408 2024 2025 2026 2027 & after Commitments (in millions) Number of Loans $109 $311 $395 $449 $864 319 125 55 33 33 Under $1MM $1MM - $5MM $5MM - $10MM $10MM - $20MM Greater than $20MM Commitments (in millions) Number of Loans $117 $122 $193 $237 $595 $863 $6.9 $5.8 $3.4 $2.7 $3.1 $4.6 53% 60% 58% 67% 59% 58% Virginia Beach Baltimore New York Lancaster Other MSAs Philadelphia Commitments (in millions) Avg Loan Size (in millions) Wtd Avg LTV THE MULTI-FAMILY PORTFOLIO HAS BEEN RECENTLY ORIGINATED AND APPRAISED, HAS A LONG-DATED MATURITY HORIZON AND IS ALSO GEOGRAPHICALLY DIVERSE 7 (1) The Corporation’s presence in the New York-Newark-Jersey City MSA extends from central New Jersey into northern New Jersey and includes one multi-family loan in New York City component of the New York MSA. Recently Originated and Appraised Maturing Over Time Diversified by Size Diversified by Geographical MSA (1)

 
(1) Non-GAAP financial measure. Please refer to the calculation and management’s reason for using this measure on the slide titled “Non-GAAP Reconciliation” at the end of this presentation. 8 1Q24 4Q23 1Q23 (dollars in thousands, except per-share data) Net interest income $206,937 $212,006 $215,587 Provision for credit losses 10,925 9,808 24,544 Non-interest income 57,140 60,130 51,730 Securities gains (losses) — (752) 23 Non-interest expense 177,600 180,552 159,616 Income before income taxes 75,552 81,024 83,180 Income taxes 13,611 16,761 14,866 Net income 61,941 64,263 68,314 Preferred stock dividends (2,562) (2,562) (2,562) Net income available to common shareholders $59,379 $61,701 $65,752 Net income available to common shareholders, per share (diluted) $0.36 $0.37 $0.39 Operating net income available to common shareholders, per share (diluted)(1) $0.40 $0.42 $0.39 ROAA 0.91% 0.93% 1.03% Operating ROAA(1) 1.00% 1.03% 1.04% ROAE 9.28% 10.09% 11.02% Operating ROAE (tangible)(1) 13.08% 14.68% 14.46% Efficiency ratio(1) 63.2% 62.0% 58.5%

 
9 NONINTEREST-BEARING DEPOSIT TRENDS • Growth in the Corporation’s commercial banking business, as well as the historically low levels of interest rates for much of the post-2008 period, led to a generally increasing trend in the percentage of noninterest-bearing deposits. • Prior to 2008, noninterest-bearing deposits averaged 15%-20% of total deposits. As of March 31, 2024, noninterest-bearing deposits were 23.4% of total deposits down from a peak of 35% in June 2022. • Deposit growth, including growth in noninterest-bearing deposits, remains a key component of the Corporation’s relationship banking strategy. Source: S&P Global Market Intelligence, Federal Reserve Bank of New York and Board of Governors of the Federal Reserve System (US); Corporation’s reported results for NIM and percentage of noninterest-bearing deposits at March 31,2024. % Noninterest-Bearing Deposits, Net Interest Margin (“NIM”) and Fed Funds Effective Rate

 
• NIM was 3.32% in the first quarter of 2024, declining four basis points compared to the fourth quarter of 2023. • Loan yield improved by seven basis points during the first quarter of 2024, increasing to 5.90% compared to 5.83% in the fourth quarter of 2023. Loan yields have benefited from new originations and higher rates. • Total cost of deposits was 1.95% for the first quarter of 2024, an increase of 16 basis points compared to the fourth quarter of 2023, due to continued migration into interest-bearing deposit products. 10 NET INTEREST INCOME AND NIM 1Q24 Highlights Net Interest Income & NIM Average Deposits and Borrowings & Other and Cost of Funds Average Interest-Earning Assets & Yields (dollars in millions) (dollars in billions) (dollars in billions)

 
11 ASSET QUALITY Provision for Credit Losses Non-Performing Loans (“NPLs”) & NPLs to Loans Net Charge-offs (“NCOs”) and NCOs to Average Loans ACL(1) to NPLs & Loans (1) The allowance for credit losses (“ACL”) relates specifically to “Loans, net of unearned income” and does not include reserves related to off-balance sheet credit exposures.

 
12 NON-INTEREST INCOME(1) Non-interest Income (percentage of total non-interest income, three months ended March 31, 2024) (1) Excluding investment securities gains. Decreases due to: • $2.0 million decline in commercial customer swap fees • Other fee income attributable to the valuation of certain equity method investments Increases due to: • Record wealth management income • Gain on sale of mortgage loans on solid originations and spreads 1Q24 4Q23 Change Wealth Management 20,155$ 19,388$ 767$ Commercial Banking 18,829 20,780 (1,951) Consumer Banking 11,668 12,087 (419) Mortgage Banking 3,090 2,288 802 Other 3,398 5,587 (2,189) Total 57,140$ 60,130$ (2,990)$ (dollars in thousands)

 
13 NON-INTEREST EXPENSE Non-interest Expense (percentage of total non-interest expense, three months ended March 31, 2024) Decreases primarily due to: • $1.0 million Federal Deposit Insurance Corporation special assessment in 1Q24 compared to $6.5 million in 4Q23 • Reductions in incentive compensation accruals Increases primarily due to: • $3.6 million loss due to closure of financial centers • $2.5 million consulting expenses • $0.2 million in severance expense 1Q24 4Q23 Change Salaries and employee benefits 95,481$ 97,275$ (1,794)$ Data processing and software 17,661 16,985 676 Net Occupancy 16,149 14,647 1,502 Other outside services 13,283 14,670 (1,387) FDIC Insurance 6,104 11,138 (5,034) Equipment 4,040 3,995 45 Marketing 1,912 3,550 (1,638) Other 22,970 18,292 4,678 Total 177,600$ 180,552$ (2,952)$ (dollars in thousands)

 
14 (1) Regulatory capital ratios and excess capital amounts as of March 31, 2024 are preliminary estimates. (2) Excesses shown are to regulatory minimums, including the 250 basis point capital conservation buffer, except for Tier 1 Leverage which is the well- capitalized minimum. $1,181 $581 $730 $790 (as of March 31, 2024) (dollars in millions) (2)

 
Estimated Uninsured Deposits March 31, 2024 Total Deposits 21,742$ Estimated Uninsured Deposits 7,070$ Estimated Uninsured Deposits to Total Deposits 33% Estimated Uninsured Deposits 7,070$ Less: Collateralized Municipal Deposits (1,930)$ Net Estimated Uninsured Deposits (4) 5,140$ Net Estimated Uninsured Deposits to Total Deposits 24% Committed Liquidity to Net Estimated Uninsured Deposits 143% Available Liquidity to Net Estimated Uninsured Deposits 243% Available Liquidity March 31, 2024 Cash On-Hand (1) 147$ Federal Reserve Capacity 1,231 Total Available @ Federal Reserve 1,231$ FHLB Borrowing Capacity 9,359 Advances (2) (905) Letters of Credit (2,359) Total Available @ FHLB 6,095$ Total Committed Liquidity 7,326$ Fed Funds Lines 2,556 Outstanding Net Fed Funds - Total Fed Funds Lines Available 2,556$ Brokered Deposit Capacity (3) 3,603 Brokered & Wholesale Deposits (1,152) Total Brokered Deposit Availability 2,451$ Total Uncommitted Availability Liquidity 5,007$ Total Available Liquidity 12,480$ 15 LIQUIDITY PROFILE (1) Includes cash at the FHLB and Federal Reserve and vault cash for liquidity purposes only. (2) Includes accrued interest, fees, and other adjustments. (3) Brokered deposit availability is based upon internal policy limit. (4) Net estimated uninsured deposits are net of collateralized municipal deposits and inter-company deposits. • Cash On-Hand typically ranges between $50 - $100 million • Total committed and available liquidity meaningfully exceeds net estimated uninsured deposits (dollars in thousands)

 
2024 OUTLOOK 16 Net interest income: $790 - $820 million(1) Provision for credit losses: $45 - $65 million Non-interest income: $235 - $250 million(2) Non-interest expense: $670 - $690(3) Effective tax rate: 17% - 18% (1) Assumes Fed Funds Rate decreases of 75 basis points in the second half of 2024 (2) Excludes investment securities gains and losses (3) Excludes implementation costs associated with the FultonFirst initiative

 
17 Note: The Corporation has presented the following 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. 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. Three months ended (dollars in thousands, except per share and share data) Mar 31 Dec 31 Mar 31 2024 2023 2022 Operating net income available to common shareholders Net income available to common shareholders $59,379 $61,701 $65,752 Plus: Core deposit intangible amortization 441 441 514 Plus: Interest rate derivative transition valuation(1) (151) (1,102) — Plus: FDIC special assessment 956 6,494 — Plus: FultonFirst implementation and asset disposals 6,329 3,197 — Less: Tax impact of adjustments (1,591) (1,896) (108) Operating net income available to common shareholders (numerator) $65,363 $68,835 $66,158 Weighted average shares (diluted) (denominator) 164,520 165,650 168,401 Operating net income available to common shareholders, per share (diluted) $0.40 $0.42 $0.39 (1) Resulting from the reference rate transition from the London Interbank Offered Rate ("LIBOR") to the Secured Overnight Financing Rate ("SOFR") in the Corporation's commercial customer interest rate swap program.

 
18 Three months ended (dollars in thousands) Mar 31 Dec 31 Mar 31 2024 2023 2023 Operating return on average assets Net income $61,941 $64,263 $68,314 Plus: Core deposit intangible amortization 441 441 514 Plus: Interest rate derivative transition valuation(1) (151) (1,102) — Plus: FDIC special assessment 956 6,494 — Plus: FultonFirst implementation and asset disposals 6,329 3,197 — Less: Tax impact of adjustments (1,591) (1,896) (108) Operating net income (numerator) $67,925 $71,397 $68,720 Total average assets $27,427,626 $27,397,671 $26,900,653 Less: Average net core deposit intangible (4,666) (5,106) (6,937) Total average operating assets (denominator) $27,422,960 $27,392,565 $26,893,716 Operating return on average assets 1.00 % 1.03 % 1.04 % (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.

 
19 Three months ended (dollars in thousands) Mar 31 Dec 31 Mar 31 2024 2023 2023 Operating return on average common shareholders' equity (tangible) Net income available to common shareholders $59,379 $61,701 $65,752 Plus: Intangible amortization 573 597 674 Plus: Interest rate derivative transition valuation(1) (151) (1,102) — Plus: FDIC special assessment 956 6,494 — Plus: FultonFirst implementation and asset disposals 6,329 3,197 — Less: Tax impact of adjustments (1,618) (1,929) (142) Adjusted net income available to common shareholders (numerator) $65,468 $68,958 $66,284 Average shareholders' equity $2,766,945 $2,618,024 $2,613,316 Less: Average preferred stock (192,878) (192,878) (192,878) Less: Average goodwill and intangible assets (560,393) (560,977) (561,744) Average tangible common shareholders' equity (denominator) $2,013,674 $1,864,169 $1,858,694 Operating return on average common shareholders' equity (tangible) 13.08 % 14.68 % 14.46 % (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.

 
20 (dollars in thousands) Three months ended Mar 31 Dec 31 Mar 31 Efficiency ratio 2024 2023 2023 Non-interest expense $177,600 $180,552 $159,616 Less: Intangible amortization (573) (597) (674) Less: FDIC special assessment (956) (6,494) — Less: FultonFirst implementation and asset disposals (6,329) (3,197) — Less: Debt extinguishment — 720 — Non-interest expense (numerator) $169,742 $170,984 $158,942 Net interest income $206,937 $212,006 $215,587 Tax equivalent adjustment 4,592 4,549 4,414 Plus: Total non-interest income 57,140 59,378 51,753 Plus: Interest rate derivative transition valuation(1) (151) (1,102) — Less: Investment securities (gains) losses, net — 752 (23) Total revenue (denominator) $268,518 $275,583 $271,731 Efficiency ratio 63.2% 62.0% 58.5% (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.