z INVESTOR PRESENTATION Data as of or for the period ended September 30, 2023 unless otherwise noted
Forward-Looking Statements 2 This presentation may contain forward-looking statements with respect to the 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 “2023 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, 2022, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023 and June 30, 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.
3 An Undervalued Franchise, Well-Positioned for Long-Term Growth, with Strong Liquidity, Solid Capital and Disciplined Credit Culture (1) As of September 30, 2023. (2) Data as of June 30, 2023, per S&P Global Market Intelligence; FDIC SOD. (3) Based on shares outstanding of 164 million and closing price of $12.23 as of October 24, 2023. (4) Last twelve months earnings per share of $1.74 based on the immediately preceding four quarters. (5) As of September 30, 2023 , book value per share and tangible book value per share were $14.47 and $11.05, respectively. Tangible book value is a non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on slides titled “Non-GAAP Reconciliation” at the end of this presentation. (6) Based on current quarterly common dividend of $0.16 per share and closing stock price of $12.23 per share as of October 24, 2023. Map includes counties with a financial center and/or a loan production office ("LPO") and incorporated cities in Maryland and Virginia with a financial center and/or LPO. ▪ $27.4 billion in assets, ~200 financial centers, ~3,300 team members operating in a customer-dense Mid-Atlantic Market(1) ▪ Opportunity to meaningfully grow market share(2) o ~23% deposit market share across the 14 counties where we have a top 5 deposit market share; represents 55% of total deposits o ~1.3% deposit market share across the 40 counties where we do not have a top 5 deposit market share; represents 45% of total deposits o Over 10% of the U.S. population resides within Fulton’s 5- state footprint and Washington D.C. ▪ Market Capitalization of ~ $2 billion(3) ▪ Current Valuation(3) of 7.0x last twelve months earnings per share of $1.74(4) , 0.8x book value(5), and 1.1x tangible book value(5), at historical lows ▪ $29 million remaining of a $100 million share repurchase authorization(1). ▪ Steady increase in shareholder value with a 5-year compound average tangible book value per share, excluding Accumulated Other Comprehensive Income(5),growth rate of 6.0%. ▪ 5.2% dividend yield(6) ▪ 10-year compound average growth rate in common dividends of 7.2%
A Robust and Scalable Product Suite Built Upon Significant Investment in Leading Edge Technologies and Customer Adoption Leading Technology Partners Well-positioned to compete in and serve our market • Significant technology spend over past five years • 30+ full-time equivalent employees hired to build out data and analytics capabilities Investment in Best-In-Class Technology Platforms • New commercial origination system • New mortgage origination system • New mortgage loan servicing system • New consumer origination system • New customer relationship management system • Build out of data warehouse and analytical capabilities Fintech investment • Investment in Canapi Ventures, a leading Fintech venture fund Diversified Sources of Revenue Commercial Banking Retail Banking Small Business Treasury Management Wealth and Trust International Services Capital Markets Mortgage Banking 4
An Experienced Executive Team Leveraging a Robust Franchise 5 (1) Includes years of service in public accounting and investment banking as a financial services industry specialist. (2) Includes years of service in public accounting as a financial services industry specialist. ▪ Prudent Expense Management with Opportunities to Further Improve ▪ Strong, Committed and Diverse Liquidity Position ▪ Solid Asset Quality and Reserves ▪ Strong Capital Position ▪ Ability to Supplement an Organic Growth Model with Inorganic Opportunities ▪ A Compelling Value In a Discounted Industry ▪ Valuable Franchise in Attractive Markets ▪ Relationship Banking Strategy Focused on the Customer Experience ▪ Continued Progress in Digital Transformation ▪ Granular, Well-Diversified Loan Portfolio ▪ Attractive Low-Cost, Granular and Tenured Core Deposit Profile ▪ Strong and Diversified Fee Income Generating Products and Business Lines Name Leadership Years at Fulton Years in Financial Services Prior Experience Curt Myers Chairman / CEO 33 33 Various roles since starting career in 1990 Mark McCollom (1) Chief Financial Officer 6 36 PwC, Commercial Banking and Investment Banking Dave Campbell Strategic Initiatives and Operations 14 34 Various roles since 2009 Betsy Chivinski (2) Chief Risk Officer 29 41 Various roles since 1994 Andy Fiol Head of Consumer & Sm. Business 5 23 Capital One, Bank of America Natasha Luddington Chief Legal Officer, Corporate Secretary 2 24 Pacific Western Bank, several Washington D.C. law firms Meg Mueller Head of Commercial Banking 27 37 Various roles since 1996 Angie Sargent Chief Information Officer 31 31 Various roles since 1992 Angela Snyder Chief Banking Officer 21 37 Various roles since 2002 Karthik Sridharan Chief Operations and Technology Officer 1 20 Executive roles at regional and Fortune 500 companies Bernadette Taylor Chief Human Resources Officer 29 34 Various roles since 1994
6 Approach to Environmental, Social & Governance (“ESG”) - Doing what is right is a core value at Fulton. ESG is not about “checking a box,” we focus on activities that meaningfully change lives for the better. • Enhanced 2022 Corporate Social Responsibility report with selected ESG metrics. • Integrity is fundamental to governance at Fulton. The Corporation’s established Board governance and oversight of ESG principles and priorities support management’s efforts to build maturity and capability. • The Climate Impact Working Group underscores the Corporation’s commitment to progressing its understanding of, and reporting on, climate-related risks and activities. READ THE REPORT Protecting the Environment Changing Lives for the Better Corporate Governance Environment The Corporation is committed to practicing environmental stewardship in its everyday operations Operational measures like waste reduction and smart energy use, as well as financing sustainable projects are core to these efforts Governance Core values and guiding behavior lead the Corporation to demonstrate the highest professional and ethical standards in all business activities The Corporation operates under a robust board- and management-level enterprise risk management structure Employees The Corporation is committed to creating a workforce that reflects its communities and values diversity, equity and inclusion Customers The Corporation has a proven track record of fair and responsible banking – rated “Outstanding” for Community Reinvestment Act performance Community Employees live and work in the communities we serve and want to see these communities thrive. Through the Fulton Forward® initiative, the Corporation gives back by paying it forward 6
Operating in Dense and Stable Markets with Tenured Market Share 7 Note: Data as of June 30, 2023 per S&P Global Market Intelligence; FDIC Summary of Deposits. (1) Median Household (“HH”) Income, 2023 – 2028 Projected Population Change and Projected HH Income Change are weighted by deposits in each MSA. Fulton Financial Corporation (2023) Markets by MSA (2023) Metropolitan Statistical Area (MSA) Market Rank Branches # Total Deposits ($000) Total Deposit Market Share (%) Branches # Total Deposits ($000) Median Household Income ($) 5 yr Cumulative Projected Household Income Growth 5 yr Cumulative Projected Population Growth Lancaster, PA 1 20 4,798,342 28.91 153 16,597,203 74,803 11.5% 1.7% Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 13 61 4,523,943 0.76 1,429 598,346,491 83,007 12.7% 1.1% Allentown-Bethlehem-Easton, PA-NJ 4 17 1,844,772 8.40 192 21,957,440 77,334 12.1% 1.6% New York-Newark-Jersey City, NY-NJ 99 20 1,636,205 0.04 4,428 3,644,609,507 92,662 12.1% 0.5% York-Hanover, PA 3 10 1,259,070 13.02 98 9,671,554 76,099 12.7% 1.7% Baltimore-Columbia-Towson, MD 11 15 1,177,841 1.22 545 96,463,715 93,386 13.2% 1.4% Lebanon, PA 1 6 1,130,564 36.67 32 3,083,453 68,908 11.6% 1.9% Harrisburg-Carlisle, PA 7 9 837,755 4.38 147 19,128,831 74,842 11.9% 2.5% Reading, PA 6 7 806,571 3.42 90 23,551,033 73,744 12.5% 1.2% Hagerstown-Martinsburg, MD-WV 2 6 622,767 11.41 70 5,455,841 67,941 9.3% 3.6% Top 10 Fulton Financial Corporation MSAs (1) 171 18,637,830 0.42 7,184 4,438,865,068 75,471 12.2% 0.7% Total Franchise 205 21,382,678 0.43 4,992,854,793 74,274 11.9% 0.8% Nationwide 73,503 13.4% 2.1%
Opportunities to Expand Our Presence in Urban Markets Remain A Priority 8 ▪ Philadelphia remains a natural fill-in opportunity within our current footprint o 1 financial center opened in 3Q23 o 1 financial center targeted to open in 4Q23 ▪ Philadelphia Market: o The acquisition of Prudential Bancorp, Inc. (“Prudential Bancorp”) added 8 locations in Philadelphia County, with 2 being consolidated into Fulton branches on November 5, 2022 o The top 5 banks have ~80% of the deposit market share o Presents a tremendous growth opportunity for Fulton ▪ Richmond, Virginia will see a new financial center open in late 2023, taking total locations to 3 in the Richmond market ▪ Baltimore is another targeted area for growth Note: Deposit data as of June 30, 2023 per S&P Global Market Intelligence (excludes non-retail deposits and closed/proposed branches); FDIC Summary of Deposits. Commentary 2023 Deposit Rank Parent Company Name Number of Branches Total Deposits In Market ($000) Total Deposit Market Share (%) 1 PNC Financial Services Group Inc. (PA) 33 14,180,059 19.89 2 Bank of America Corp. (NC) 17 13,934,632 19.54 3 Wells Fargo & Co. (CA) 32 13,010,518 18.25 4 Citizens Financial Group Inc. (RI) 41 12,903,214 18.10 5 The Toronto-Dominion Bank 20 4,273,422 5.99 6 Banco Santander SA 13 3,844,829 5.39 7 WSFS Financial Corp. (DE) 11 1,546,109 2.17 8 Firstrust Savings Bank (PA) 5 1,393,780 1.95 9 M&T Bank Corp. (NY) 5 1,347,617 1.89 10 JPMorgan Chase & Co. (NY) 15 978,251 1.37 11 Republic First Bancorp Inc. (PA) 5 704,637 0.99 12 Truist Financial Corp. (NC) 9 700,951 0.98 13 Univest Financial Corp. (PA) 7 444,715 0.62 14 Fulton Financial Corp. (PA) 12 372,267 0.52 15 Asian Financial Corp. (PA) 2 321,377 0.45 16 United Savings Bank (PA) 3 220,324 0.31 17 Hyperion Bancshares Inc. (PA) 1 159,209 0.22 18 OceanFirst Financial Corp. (NJ) 1 118,142 0.17 19 S&T Bancorp Inc. (PA) 2 116,562 0.16 20 Parke Bancorp Inc. (NJ) 2 116,079 0.16 All Others 24 616,832 0.87 Total For Philadelphia County 260 71,303,526 100.00 Philadelphia, PA County Deposit Market Share - Top 20
A Well-Diversified Loan Portfolio, Balanced Growth, at Higher Yields . . . 9 Note: Loan portfolio composition is based on average loan balances for the years ended December 31, 2019 to 2022 and nine months ended September 30, 2023. (1) Presented on a fully-taxable equivalent (“FTE”) basis using a 21% federal tax rate and statutory interest expense disallowances. The C&I category includes Paycheck Protection Program (“PPP”) loan growth and forgiveness during the 2020 – 2023 timeframe. The Corporation ended with $6.7 million in PPP loans as of September 30, 2023. The Construction category includes residential construction loans. ▪ Loan growth remains balanced, with adjustable-rate mortgage growth in 2022 and YTD 2023 outpacing other categories, despite the rise in mortgage rates. ▪ Fulton Mortgage Company is a branded business with a purchase-oriented customer base, predominantly serving our five-state footprint. ▪ Commercial mortgage, a granular and diverse portfolio itself, continues to grow at a mid-single-digits growth rate. $6.5 $6.9 $7.1 $7.5 $7.8 $4.5 $5.5 $5.1 $4.2 $4.6 $1.4 $1.3 $1.1 $1.1 $1.1 $2.4 $2.9 $3.5 $4.3 $5.0 $0.9 $1.0 $1.1 $1.2 $1.3 $0.7 $0.7 $0.7 $0.9 $1.0 $16.4 $18.3 $18.6 $19.2 $20.8 4.55% 3.63% 3.46% 4.00% 5.49% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 $22.0 2019 2020 2021 2022 YTD Q3 2023 To tal Lo an P o rtfo lio Yield (1)A ve ra ge L o an P o rt fo lio B al an ce s Comm'l Mtg C&I Home Equity Res Mtg Construction Consumer/Other FTE loan yield (dollars in billions) (1)
10 The Loan Mix is Diversified, Granular, with Low CRE and Low Office Concentrations (1) Refer to the Corporation’s 2023 Proxy statement for the listing of peers. (2) LTV as of most recent appraisal.
11 (1) Metropolitan Statistical Area’s or “MSA’s” titled in short name for presentation purposes. (2) Fulton’s presence in the New York-Newark-Jersey City MSA extends from central NJ into northern NJ, and includes zero office loans in the state of New York component of the New York MSA. The Office Portfolio Has Been Originated Over Time, Will Mature Over Time, and Remains Granular and Diverse
Stable Credit Metrics with Non-Performing Loans in Decline, Net Charge-Offs Back to Modest Levels, and Increasing Coverage Ratios 12 (1) Includes the CECL Day 1 provision for credit losses of $8.0 million for the acquired Prudential Bancorp, Inc. loan portfolio. (2) 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. (dollars in millions) Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans Net Charge-offs (NCOs) and NCOs to Average Loans ACL(2) to NPLs & Loans (1)
And an Attractive Core Deposit Profile Despite Near-Term Industry Pressures 13 ▪ Deposit household and account growth partially offsetting declining average balances and remains a key driver of our long-term relationship banking strategy. ▪ Deposit betas remain below loan betas, at 29% and 46%, respectively, with cost of funds increases moderating. Note: Deposit composition is based on average deposit balances for the years ended December 31, 2019 to 2022 and the third quarter of 2023. Average brokered deposits were $245 million for 2019, $311 million for 2020, $287 million for 2021, $262 million for 2022 and $779 million for the nine months ended September 30, 2023. Core Deposits equal total deposits less brokered and time deposits. (1) Deposit costs calculated by dividing interest expense on interest-bearing deposits by total average deposits. $2.9 $2.5 $1.9 $1.6 $2.0 $4.2 $5.7 $7.2 $7.5 $6.1 $4.4 $5.3 $6.0 $5.6 $5.5 $3.6 $3.9 $4.2 $4.2 $4.6 $1.5 $1.7 $2.1 $2.3 $2.0 $16.8 $19.4 $21.7 $21.5 $21.0 0.79% 0.36% 0.14% 0.20% 1.24% 0.00% 0.50% 1.00% 1.50% 2.00% $- $4.0 $8.0 $12.0 $16.0 $20.0 $24.0 2019 2020 2021 2022 YTD 3Q 2023 D ep o sit C o sts (1) A ve ra ge D ep o si t B al an ce s Time Non-Int DDA Int DDA Money Mkt Savings Brokered Deposits Costs (dollars in billions) (1)
14 Source: S&P Global Market Intelligence, New York Fed and Board of Governors of the Federal Reserve System (US); Corporation’s reported results for NIM and percentage of Noninterest-Bearing Deposits at September 30, 2023. The Noninterest-Bearing Deposit Mix Has Trended Up Over Time Despite Periodic Changes in Interest Rates
15 * Not meaningful A Deposit Portfolio that Remains Granular, Tenured And Diversified
16 (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. A Committed and Healthy Liquidity Profile with Significant Coverage (dollars in thousands) (dollars in thousands)
While Expense Ratios Have Improved, Opportunities Exist to Manage Lower 17 ~ $730 million ~ $610 million Efficiency Ratio(1) ▪ Positive operating leverage and recent impact of higher interest rates resulted in improvement in the efficiency ratio o 2021 reflects the impact of the previously announced cost savings initiatives focused on our financial center optimization, efficient delivery systems, reallocation of management responsibilities and a streamlining of functions. The costs associated with these initiatives were primarily recognized in 2020 o 2022 driven by higher interest rates expanding net interest margin, offsetting inflationary pressures on expenses o YTD 3Q23 driven by expenses that are in-line with expectations, strong NII, offset by moderating loan growth and fee income base Operating Non-Interest Expense / Average Assets(1) ▪ Expense management through the pandemic along with elevated assets peaking in 3Q21 drove the non-interest expense to average assets ratio lower. Peak deposit balances and excess cash in 3Q21 were primary drivers ▪ Expense increases in 2022 attributable to incentive compensation accruals consistent with strong performance and results, selective investments in technological initiatives and several non-operating items that were expected to reset at lower levels in 2023 ▪ Expense management remains a focus and are committed to realizing the full benefit of recent technology investments, continuing to generate smart growth and obtaining efficiencies to drive core operating expenses to average assets down in future periods. 56.0% 58.0% 60.0% 62.0% 64.0% 66.0% 68.0% 2018Y 2019Y 2020Y 2021Y 2022Y YTD 3Q 2023 2.00% 2.20% 2.40% 2.60% 2.80% 3.00% 2018Y 2019Y 2020Y 2021Y 2022Y YTD 3Q 2023 Efficiency Ratio (FTE) Operating Non-Interest Expense / Average Assets (1) Non-GAAP based financial measure. Please refer to the calculation and management’s reasons for using this measure on the slides titled “Non-GAAP Reconciliation” at the end of this presentation.
18 Stable Capitalization(1) Provides Flexibility. . . ▪ Strong regulatory capital ratios provide operational and strategic flexibility ▪ Share repurchase authorization of $29 million remaining as of September 30, 2023, out of an original $100 million authorization, in place through December 31, 2023. ▪ Ratios improving as internal capital generation exceeds tangible and risk-weighted asset growth ▪ Current common dividend of $0.16, which has doubled in the past 10 years (1) Regulatory capital ratios and excess capital amounts as of September 30, 2023 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. (dollars in millions) 9.4% 10.1% 11.0% 13.8% $1,168 $716 $566 $759 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% Tier 1 Leverage CE Tier 1 Tier 1 Risk-Based Total Risk-Based n Regulatory Minimums n Excess(2) (as of September 30, 2023)
. . . And Remains Stable When Adjusted for Unrealized Losses on the Investment Securities Portfolio(1) (1) Regulatory capital ratios and excess capital amounts as of September 30, 2023 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. (3) Tier 1 Leverage and CE Tier 1 capital ratios were adjusted to incorporate unrealized loss, net of tax, on held-to-maturity investment securities of $156.7 million and unrealized loss, net of tax, on available-for-sale investment securities of $371.0 million. (4) Non-GAAP financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Reconciliation” at the end of this presentation. n Regulatory Minimums n Excess(2) Tier 1 Leverage(3) CE Tier 1(3) TCE(4) 19 | | | | | | | | | | | | | | $653 $183 (as of September 30, 2023)
20 Net interest income: $845 - $855 million(1) Non-interest income: $220 - $230 million(2) Provision for credit losses: $55 - $65 million Non-interest expense: $665 million +/-(3) Effective tax rate: 17.5% +/- 2023 OUTLOOK (1) Assumes Fed Funds Rate increase of 25 bps in November 2023. Updated as of 3Q23, previously: $830 - $840 million. (2) Excludes investment securities gains and the 3Q23 market valuation amount for the movement related to our commercial customer swap program. (3) Updated as of 3Q23, previously: $645 - $660 million.
3Q 2023 FINANCIAL HIGHLIGHTS
(1) Non-GAAP financial measure. Please refer to the calculation and management’s reason for using this measure on the slides titled “Non-GAAP Reconciliation” at the end of this presentation. Income Statement Summary 22 3Q23 2Q23 3Q22 (dollars in thousands, except per-share data) Net interest income $213,842 $212,852 $215,582 Provision for credit losses 9,937 9,747 18,958 Non-interest income 55,961 60,589 59,215 Securities gains (losses) — (4) (53) Non-interest expense 171,020 168,018 162,552 Merger-related expenses — — 7,006 Income before income taxes 88,846 95,672 86,228 Income taxes 16,749 16,065 15,357 Net income 72,097 79,607 70,871 Preferred stock dividends (2,562) (2,562) (2,562) Net income available to common shareholders $69,535 $77,045 $68,309 Net income available to common shareholders, per share (diluted) $0.42 $0.46 $0.40 Operating net income available to common shareholders, per share (diluted)(1) $0.43 $0.47 $0.48 ROAA 1.04% 1.17% 1.07% Operating ROAA(1) 1.08% 1.18% 1.25% ROAE 11.25% 12.59% 11.24% ROAE (tangible)(1) 15.17% 16.52% 17.31% Efficiency ratio(1) 61.5% 60.1% 57.8%
Net Interest Income and Margin 23 ~ $730 million ~ $610 million (DOLLARS IN MILLIONS) (DOLLARS IN BILLIONS) (DOLLARS IN BILLIONS) Average Interest-Earning Assets & YieldsNet Interest Income & Net Interest Margin Average Deposits and Borrowings & Other & Cost of Funds
24 Fully Integrated Businesses Drive Significant Sources of Non-Interest Income(1) (1) Excludes investment securities gains.
25 Focus on Controlling Non-interest Expense
APPENDIX
Non-GAAP Reconciliation – Operating Net Income to Common Shareholders 27 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.
Non-GAAP Reconciliation – Operating Return on Average Assets 28
Non-GAAP Reconciliation – Return on Average Common Shareholders’ Equity (Tangible) 29
30 Non-GAAP Reconciliation – Efficiency Ratio (Quarter-to-Date)
Non-GAAP Reconciliation – Tangible Book Value Per Share and Tangible Book Value Per Share Excluding AOCI 31 (dol lars in thousands , except per share data) Sep 30 Sep 30 Sep 30 Sep 30 Sep 30 Sep 30 2018 2019 2020 2021 2022 2023 Tangible book value per share Shareholders ' equity $2,283,014 $2,324,016 $2,390,261 $2,699,818 $2,471,159 $2,566,693 Less : Goodwi l l and intangible assets (531,556) (534,178) (534,907) (536,697) (561,495) (561,284) Less : Preferred s tock - - - (192,878) (192,878) (192,878) Tangible common shareholders ' equity (numerator) $1,751,458 $1,789,838 $1,855,354 $1,970,243 $1,716,786 $1,812,531 Share oustanding, end of period (denominator) 176,019 164,036 162,134 161,429 167,399 164,084 Tangible book va lue per share $9.95 $10.91 $11.44 $12.21 $10.26 $11.05 Book va lue per share $12.97 $14.17 $14.74 $15.53 $13.61 $14.47 Tangible book value per share excluding AOCI Shareholders ' equity $2,283,014 $2,324,016 $2,390,261 $2,699,818 $2,471,159 $2,566,693 Less : Goodwi l l and intangible assets (531,556) (534,178) (534,907) (536,697) (561,495) (561,284) Less : Preferred s tock - - - (192,878) (192,878) (192,878) Tangible common shareholders ' equity $1,751,458 $1,789,838 $1,855,354 $1,970,243 $1,716,786 $1,812,531 Less/Plus : Accumulated other comprehens ive income ("AOCI") (84,640) 6,081 56,954 25,615 (442,947) (472,756) Tangible common shareholders ' equity (numerator) excluding AOCI $1,836,098 $1,783,757 $1,798,400 $1,944,628 $2,159,733 $2,285,287 Share oustanding, end of period (denominator) 176,019 164,036 162,134 161,429 167,399 164,084 Tangible book va lue per share excluding AOCI $10.43 $10.87 $11.09 $12.05 $12.90 $13.93 Years Ended Three Months Ended
Non-GAAP Reconciliation – Efficiency Ratio (Year-to-Date) 32 (dollars in thousands) 2018 2019 2020 2021 2022 2023 Efficiency ratio Non-interest expense $546,104 $567,736 $579,440 $617,830 $633,728 $498,656 Less: Amortization of tax credit investments (11,449) (6,021) (6,126) (6,187) (2,783) - Less: Intangible Amortization - (1,427) (529) (589) (1,731) (2,347) Less: Merger-related expenses - - - - (10,328) - Less: Debt extinguishment costs - (4,326) (2,878) (33,249) - - Non-interest expense (numerator) $534,655 $555,962 $569,907 $577,805 $618,886 $496,309 Net interest income (fully taxable-equivalent) $642,577 $661,356 $641,509 $676,026 $796,629 $655,542 Plus: Total Non-interest income 195,525 216,160 229,388 273,745 227,130 168,300 Plus: Interest rate derivative transition valuation (1) - - - - - 2,958 Less: Investment securities gains (losses) (37) (4,733) (3,053) (33,516) 27 (19) Net interest income (denominator) $838,065 $872,783 $867,844 $916,255 $1,023,786 $826,781 Efficiency ratio 63.8% 63.7% 65.7% 63.1% 60.5% 60.0% Excluding Cost Saving Initiatives Expenses: Year Ended 2020 Efficiency ratio Non-interest expense (numerator) $569,907 Less: cost saving initiatives expenses (16,200) Non-interest expense excluding cost saving initiatives expenses (numerator) $553,707 Net interest income (denominator) $867,844 Efficiency ratio excluding cost saving initiatives expenses 63.8% (1) Resulting from the reference rate transition from LIBOR and SOFR in the Corporations commercial customer interest rate swap program. Years Ended Nine Months Ended
Non-GAAP Reconciliation – Operating Non-Interest Expense to Total Average Assets 33 (dollars in thousands) 2018 2019 2020 2021 2022 2023 Operating non-interest expense to total average assets Non-interest expense $546,104 $567,736 $579,440 $617,830 $633,728 $498,656 Less: Amortization of tax credit investments (11,449) (6,021) (6,126) (6,187) (2,783) - Less: Intangible Amortization - (1,427) (529) (589) (1,731) (2,347) Less: Merger-related expenses - - - - (10,328) - Less: Debt extinguishment costs - (4,326) (2,878) (33,249) - - Non-interest expense (numerator) $534,655 $555,962 $569,907 $577,805 $618,886 $496,309 Total average assets (demonimator) $20,183,202 $21,258,040 $24,333,717 $26,170,333 $25,971,484 $27,173,100 Operating non-interest expense to total average assets 2.65% 2.62% 2.34% 2.21% 2.38% 2.44% Years Ended Nine Months Ended (1) (1) Operating non-interest expense to total average assets annualized for nine months ended.
Non-GAAP Reconciliation – Adjusted Tangible Common Equity to Tangible Assets (TCE Ratio) 34
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