0000700564false00007005642024-01-162024-01-160000700564us-gaap:CommonStockMember2024-01-162024-01-160000700564us-gaap:SeriesAPreferredStockMember2024-01-162024-01-16

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

January 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 classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $2.50FULTThe Nasdaq Stock Market, LLC
Depositary Shares, Each Representing 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A
FULTPThe 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 January 16, 2024, Fulton Financial Corporation (the "Corporation") issued a press release (the "Press Release") announcing its results of operations for the fourth quarter and year ended December 31, 2023. 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, January 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, 2022, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 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).

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


Exhibit No.Description
Press release dated January 16, 2024 containing financial information for the quarter and year ended December 31, 2023, deemed filed under the Securities Exchange Act of 1934.
Presentation materials to be discussed during the conference call and webcast on January 17, 2024, deemed furnished under the Securities Exchange Act of 1934.
104Cover 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: January 16, 2024
FULTON FINANCIAL CORPORATION
By: /s/ Mark R. McCollom
       Mark R. McCollom
       Senior Executive Vice President and
       Chief Financial Officer




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 Fourth Quarter and Full-Year 2023 Results

(January 16, 2024) – Lancaster, PA – Fulton Financial Corporation (NASDAQ: FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $61.7 million, or $0.37 per diluted share, for the fourth quarter of 2023, a decrease of $7.8 million, or 11.3%, in comparison to the third quarter of 2023. Operating net income available to common shareholders for the three months ended December 31, 2023 was $68.8 million, or $0.42 per diluted share(1).

For the year ended December 31, 2023, net income available to common shareholders was $274.0 million, or $1.64 per diluted share, a decrease of $2.7 million, or 1.0%, in comparison to the same period in 2022. Operating net income available to common shareholders for the year-ended December 31, 2023 was $285.0 million, or $1.71 per diluted share(1).

During the fourth quarter of 2023, the Corporation launched the "FultonFirst" initiative that is focused on evaluating and improving how Fulton operates. Approximately $3.2 million was recorded in the fourth quarter of 2023 related to this initiative. Additionally, the Corporation recognized a Federal Deposit Insurance Corporation ("FDIC") special assessment charge of $6.5 million.

"2023 was an extraordinary year and we were pleased with our results," said Curtis J. Myers, Chairman and CEO of Fulton Financial Corporation. "Our team advanced our strategic objectives. We grew loans and deposits in a challenging environment, delivered enhancements to the customer experience, continued to operate with excellence and served our stakeholders well. Looking forward, 2024 is full of opportunity."

Net Interest Income and Balance Sheet

Net interest income for the fourth quarter of 2023 was $212.0 million, a decrease of $1.8 million in comparison to the third quarter of 2023. The net interest margin for the fourth quarter of 2023 decreased four basis points, to 3.36%, in comparison to 3.40% in the third quarter of 2023.



(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 linked-quarter decrease in net interest income 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, a lower rate on borrowings and other interest-bearing liabilities, an increase in the average balance of net loans and a decrease in the average balance of borrowings and other interest-bearing liabilities.

An 11 basis point increase in the yield on average net loans and an increase in the average balance of net loans of $134.5 million in the fourth quarter of 2023 drove an increase in interest income of $7.8 million to $338.1 million in comparison to $330.4 million in the third quarter of 2023.
Interest expense on interest-bearing liabilities for the fourth quarter of 2023 increased by $9.6 million to $126.1 million in comparison to $116.5 million in the third quarter of 2023. The linked-quarter increase in interest expense in the fourth quarter of 2023 was primarily due to an increase in the rate on average interest-bearing deposits of 26 basis points, a decline of $232.3 million in the average balance of noninterest-bearing deposits and an increase in the average balance of interest-bearing deposits of $351.6 million in comparison to the third quarter of 2023, partially offset by a decrease in the rate on borrowings and other interest-bearing deposits of 16 basis points and a decrease in the average balance of borrowings and other interest-bearing deposits of $149.4 million.

For the fourth quarter of 2023, net interest income was $212.0 million, a decrease of $13.9 million, or 6.2%, in comparison to the fourth quarter of 2022. Interest income for the fourth quarter of 2023 increased by $70.3 million to $338.1 million in comparison to $267.8 million in the fourth quarter of 2022, primarily driven by rising interest rates resulting in an increase in interest income from net loans of $70.1 million. Increases in the average balance of net loans of $1.3 billion and in yields on net loans of 103 basis points in the fourth quarter of 2023 compared to the fourth quarter of 2022 each contributed to the increase in interest income. Interest expense on interest-bearing liabilities for the fourth quarter of 2023 increased by $84.2 million to $126.1 million in comparison to $41.9 million in the fourth quarter of 2022, primarily driven by rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings and other interest-bearing liabilities of $74.3 million and $9.9 million, respectively. A decrease in the average balance of noninterest-bearing deposits of $1.9 billion and an increase in the average balances of interest-bearing deposits and borrowings and other interest-bearing liabilities of $2.3 billion and $516.2 million, respectively, in the fourth quarter of 2023 in comparison to the fourth quarter of 2022 also contributed to the increase in interest expense.

Total average interest-earning assets for the fourth quarter of 2023 were $25.6 billion, an increase of $61.8 million from the third quarter of 2023 primarily driven by an increase in average net loans of $134.5 million, partially offset by a decrease in average investment securities of $76.8 million.

Total average interest-earning assets for the fourth quarter of 2023 increased by $848.6 million from the fourth quarter of 2022. Average net loans for the fourth quarter of 2023 were $21.3 billion, an increase of $1.3 billion from the same period in 2022. Compared to the fourth quarter of 2022, average investment securities decreased $209.9 million and average other interest-earning assets decreased $192.8 million in the fourth quarter of 2023.
2


Total average interest-bearing liabilities increased $202.2 million to $18.6 billion in the fourth quarter of 2023 in comparison to $18.4 billion in the third quarter of 2023. The increase in average interest-bearing liabilities was driven by an increase in the average balance of total interest-bearing deposits of $351.6 million, partially offset by a decrease in the average balance of borrowings and other interest-bearing liabilities of $149.4 million.

Total average interest-bearing liabilities for the fourth quarter of 2023 increased $2.8 billion to $18.6 billion in comparison to $15.7 billion in the fourth quarter of 2022, driven by increases in the average balances of total interest-bearing deposits and borrowings and other interest-bearing liabilities of $2.3 billion and $0.5 billion, respectively.

Asset Quality

In the fourth quarter of 2023, a provision for credit losses of $9.8 million was recorded in comparison to $9.9 million in the third quarter of 2023 and $14.5 million in the fourth quarter of 2022. The provision for credit losses of $9.8 million recorded in the fourth quarter of 2023 was primarily due to loan growth and some weakening of credit metrics.

Non-performing assets were $154.2 million, or 0.56% of total assets, at December 31, 2023, in comparison to $143.5 million, or 0.52% of total assets, at September 30, 2023, and $177.7 million, or 0.66% of total assets, at December 31, 2022.

Net charge-offs for the fourth quarter of 2023 were 0.15% of total average loans in comparison to 0.10% and 0.23% in the third quarter of 2023 and the fourth quarter of 2022, respectively.

Non-interest Income

Non-interest income before investment securities gains (losses) in the fourth quarter of 2023 was $60.1 million, an increase of $4.2 million, or 7.4%, from the third quarter of 2023. The increase in non-interest income was primarily due to a $4.1 million linked-quarter 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"), reflected as an increase to other non-interest income. Additional contributors to the increase in non-interest income were increases of $1.4 million in commercial customer interest rate swap fee income, reflected in capital markets, and a $0.6 million increase in cash surrender value of life insurance policies, reflected in other income, partially offset by decreases in mortgage banking income, income from equity method investments, reflected in other income, and merchant and card income of $0.9 million, $0.7 million and $0.6 million, respectively.

Compared to the fourth quarter of 2022, non-interest income before investment securities gains (losses) in the fourth quarter of 2023 increased $5.8 million, or 10.7%, from $54.3 million. The increase in non-interest income was primarily due to increases of $1.9 million in wealth management revenues, $1.6 million in commercial customer interest rate swap fee income, reflected in capital markets, a $1.1 million
3


market valuation movement in our commercial customer interest rate swap program resulting from the reference rate transition from LIBOR to SOFR and reflected as an increase to other non-interest income, a $0.7 million increase in cash surrender value of life insurance policies, reflected in other income, a $0.3 million increase in cash management fee income and a $0.3 million increase in gains on sale from Small Business Association ("SBA") loans, reflected in other commercial banking income.
Non-interest Expense

Non-interest expense was $180.6 million in the fourth quarter of 2023, an increase of $9.5 million, or 5.6%, compared to $171.0 million in the third quarter of 2023. The increase was primarily due to increases of $6.4 million in FDIC insurance expense, primarily due to the special assessment of $6.5 million charged to recover the loss to the Deposit Insurance Fund in connection with the closures of certain banks in 2023, $2.6 million in other outside services related to consulting fees incurred for the FultonFirst initiative, $1.6 million in marketing expense due to a targeted customer deposit acquisition program and brand marketing campaigns in growth markets, partially offset by a $0.7 million gain from debt extinguishment recorded in the fourth quarter of 2023, reflected in other expense. Included in salaries and benefits expense was $0.6 million for severance expense incurred as a result of the FultonFirst initiative.

Compared to the fourth quarter of 2022, non-interest expense, excluding merger-related expenses of $1.9 million in the fourth quarter of 2022, increased $14.0 million, or 8.4%. The increase was primarily due to increases of $7.9 million in FDIC insurance expense, primarily due to the special assessment of $6.5 million discussed above and the adoption of a final rule to increase base deposit insurance assessment rates effective January 1, 2023, $4.5 million in salaries and employee benefits expense, $3.8 million in other outside services expense driven by the FultonFirst initiative, partially offset by a $1.6 million decrease related to a contingent liability recorded in 2022 and a $0.7 million gain from debt extinguishment recorded in the fourth quarter of 2023, both reflected in other expense. The $4.5 million increase in salaries and benefits expense was primarily driven by annual merit increases, lower deferred employee loan origination costs, higher employee benefits expense, due to healthcare claims experience, and higher pension costs, partially offset by lower incentive plan compensation expense. Also included in salaries and benefits expense was $0.6 million for severance expense incurred as a result of the FultonFirst initiative.

Income Tax Expense

For 2023 the effective tax rate was 18.5% in comparison to 17.3% for 2022.

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, 2022, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 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).










5


Non-GAAP Financial Measures

The Corporation uses certain financial measures in this press release that have been derived from methods other than GAAP. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this press release.
FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
(dollars in thousands, except per share data)
Three months ended
Dec 31Sep 30Jun 30Mar 31Dec 31
20232023202320232022
Ending Balances
Investment securities$3,666,274$3,698,601$3,867,334$3,950,101$3,968,023
Net loans21,351,09421,177,50821,044,68520,670,18820,279,547
Total assets27,560,70427,375,17727,403,16327,112,17626,931,702
Deposits21,537,62321,421,58921,206,54021,316,58420,649,538
Shareholders' equity2,750,0442,566,6932,642,1522,618,9982,579,757
Average Balances
Investment securities3,665,2613,834,8243,916,1303,964,6153,936,579
Net loans21,255,77921,121,27720,866,23520,463,09620,004,513
Total assets27,397,67127,377,83627,235,56726,900,65326,386,355
Deposits21,476,54821,357,29521,207,14320,574,32321,027,656
Shareholders' equity2,618,0242,645,9772,647,4642,613,3162,489,148
Income Statement
Net interest income212,006 213,842 212,852 215,587 225,911 
Provision for credit losses9,808 9,937 9,747 24,544 14,513 
Non-interest income59,378 55,961 60,585 51,753 54,321 
Non-interest expense180,552 171,020 168,018 159,616 168,462 
Income before taxes81,024 88,846 95,672 83,180 97,257 
Net income available to common shareholders61,701 69,535 77,045 65,752 79,271 
Pre-provision net revenue(1)
100,050 102,342 106,495 108,375 115,049 
Per Share
Net income available to common shareholders (basic)$0.38 $0.42 $0.46 $0.39 $0.47 
Net income available to common shareholders (diluted)$0.37 $0.42 $0.46 $0.39 $0.47 
Operating net income available to common shareholders(1)
$0.42 $0.43 $0.47 $0.39 $0.48 
Cash dividends$0.17 $0.16 $0.16 $0.15 $0.21 
Common shareholders' equity$15.61 $14.47 $14.75 $14.67 $14.24 
Common shareholders' equity (tangible)(1)
$12.19 $11.05 $11.36 $11.26 $10.90 
Weighted average shares (basic)163,975 164,566 165,854 166,605 167,504 
Weighted average shares (diluted)165,650 166,023 167,191 168,401 169,136 
(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
Dec 31Sep 30Jun 30Mar 31Dec 31
20232023202320232022
Asset Quality
Net charge-offs (recoveries) to average loans 0.15 %0.10 %0.04 %0.27 %0.23 %
Non-performing loans to total net loans0.72 %0.67 %0.70 %0.80 %0.85 %
Non-performing assets to total assets0.56 %0.52 %0.55 %0.62 %0.66 %
ACL - loans(1) to total loans
1.37 %1.38 %1.37 %1.35 %1.33 %
ACL - loans(1) to non-performing loans
191 %208 %195 %169 %157 %
Profitability
Return on average assets0.93 %1.04 %1.17 %1.03 %1.23 %
Operating return on average assets(2)
1.03 %1.08 %1.18 %1.04 %1.26 %
Return on average common shareholders' equity10.09 %11.25 %12.59 %11.02 %13.70 %
Return on average common shareholders' equity (tangible)(2)
14.68 %15.17 %16.52 %14.46 %18.59 %
Net interest margin3.36 %3.40 %3.40 %3.53 %3.69 %
Efficiency ratio(2)
62.0 %61.5 %60.1 %58.5 %58.1 %
Non-interest expenses to total average assets2.61 %2.48 %2.47 %2.41 %2.53 %
Operating non-interest expenses to total average assets(2)
2.47 %2.47 %2.46 %2.40 %2.48 %
Capital Ratios
Tangible common equity ratio ("TCE")(2)
7.4 %6.8 %7.0 %7.0 %6.9 %
Tier 1 leverage ratio(3)
9.5 %9.4 %9.3 %9.2 %9.5 %
Common equity Tier 1 capital ratio(3)
10.4 %10.3 %10.1 %9.8 %10.0 %
Tier 1 risk-based capital ratio(3)
11.2 %11.1 %11.0 %10.6 %10.9 %
Total risk-based capital ratio(3)
14.1 %14.0 %13.8 %13.4 %13.6 %
(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 December 31, 2023 are preliminary estimates and prior periods are actual.

7

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
Dec 31Sep 30Jun 30Mar 31Dec 31
20232023202320232022
ASSETS
Cash and due from banks$300,343 $304,042 $123,779 $129,003 $126,898 
Other interest-earning assets373,772 222,781 505,141 545,355 685,209 
Loans held for sale15,158 20,368 14,673 6,507 7,264 
Investment securities3,666,274 3,698,601 3,867,334 3,950,101 3,968,023 
Net loans21,351,094 21,177,508 21,044,685 20,670,188 20,279,547 
Less: ACL - loans(1)
(293,404)(292,739)(287,442)(278,695)(269,366)
   Loans, net21,057,690 20,884,769 20,757,243 20,391,493 20,010,181 
Net premises and equipment222,881 215,626 216,322 216,059 225,141 
Accrued interest receivable107,972 101,624 96,991 90,267 91,579 
Goodwill and intangible assets560,687 561,284 561,885 563,502 560,824 
Other assets1,255,927 1,366,082 1,259,795 1,219,889 1,256,583 
    Total Assets$27,560,704 $27,375,177 $27,403,163 $27,112,176 $26,931,702 
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits$21,537,623 $21,421,589 $21,206,540 $21,316,584 $20,649,538 
Borrowings2,487,526 2,370,112 2,719,114 2,446,770 2,871,207 
Other liabilities785,511 1,016,783 835,357 729,824 831,200 
    Total Liabilities24,810,660 24,808,484 24,761,011 24,493,178 24,351,945 
Shareholders' equity2,750,044 2,566,693 2,642,152 2,618,998 2,579,757 
    Total Liabilities and Shareholders' Equity$27,560,704 $27,375,177 $27,403,163 $27,112,176 $26,931,702 
LOANS, DEPOSITS AND BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage$8,127,728 $8,106,300 $7,846,861 $7,746,920 $7,693,835 
Commercial and industrial4,545,552 4,577,334 4,599,759 4,596,096 4,473,004 
Real estate - residential mortgage5,325,923 5,279,681 5,147,262 4,880,919 4,737,279 
Real estate - home equity1,047,184 1,045,438 1,061,891 1,074,712 1,102,838 
Real estate - construction1,239,075 1,078,263 1,308,564 1,326,754 1,269,925 
Consumer729,318 743,976 763,530 730,775 699,179 
Leases and other loans(2)
336,314 346,516 316,818 314,012 303,487 
Total Net Loans$21,351,094 $21,177,508 $21,044,685 $20,670,188 $20,279,547 
Deposits, by type:
Noninterest-bearing demand$5,314,094 $5,575,374 $5,865,855 $6,403,484 $7,006,388 
Interest-bearing demand5,722,695 5,757,487 5,543,320 5,478,237 5,410,903 
Savings6,616,901 6,707,729 6,646,448 6,579,806 6,434,621 
     Total demand and savings17,653,690 18,040,590 18,055,623 18,461,527 18,851,912 
Brokered1,144,692 941,059 949,259 960,919 208,416 
Time2,739,241 2,439,940 2,201,658 1,894,138 1,589,210 
Total Deposits$21,537,623 $21,421,589 $21,206,540 $21,316,584 $20,649,538 
Borrowings, by type:
Federal funds purchased$240,000 $544,000 $555,000 $525,000 $191,000 
Federal Home Loan Bank advances1,100,000 730,000 1,165,000 747,000 1,250,000 
Senior debt and subordinated debt535,384 540,174 539,994 539,814 539,634 
Other borrowings612,142 555,938 459,120 634,956 890,573 
Total Borrowings$2,487,526 $2,370,112 $2,719,114 $2,446,770 $2,871,207 
(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)
Three Months EndedYear ended
Dec 31Sep 30Jun 30Mar 31Dec 31Dec 31
2023202320232023202220232022
Interest Income:
Interest income$338,134 $330,371 $314,912 $289,820 $267,847 $1,273,236 $864,838 
Interest expense126,128 116,529 102,060 74,233 41,936 418,950 83,204 
    Net Interest Income212,006 213,842 212,852 215,587 225,911 854,286 781,634 
Provision for credit losses9,808 9,937 9,747 24,544 14,513 54,036 28,021 
    Net Interest Income after Provision202,198 203,905 203,105 191,043 211,398 800,250 753,613 
Non-Interest Income:
Commercial banking:
   Merchant and card7,045 7,626 7,700 6,834 7,223 29,205 28,276 
   Cash management6,030 5,960 5,835 5,515 5,756 23,340 23,729 
   Capital markets4,258 2,960 6,092 2,344 2,627 15,654 12,256 
   Other commercial banking3,447 3,176 3,518 2,820 2,998 12,961 11,518 
Total commercial banking20,780 19,722 23,145 17,513 18,604 81,160 75,779 
Wealth management19,388 19,413 18,678 18,062 17,531 75,541 72,843 
Consumer banking:
  Card6,739 6,770 6,592 6,243 6,331 26,343 24,472 
  Overdraft2,991 2,996 2,696 2,733 3,364 11,416 15,480 
  Other consumer banking2,357 2,407 2,432 2,241 2,380 9,438 9,544 
Total consumer banking12,087 12,173 11,720 11,217 12,075 47,197 49,496 
Mortgage banking2,288 3,190 2,940 1,970 2,140 10,388 14,204 
Other5,587 1,463 4,106 2,968 3,972 14,125 14,835 
     Non-interest income before investment securities gains (losses)60,130 55,961 60,589 51,730 54,322 228,411 227,157 
Investment securities gains (losses), net(752)— (4)23 (1)(733)(27)
    Total Non-Interest Income59,378 55,961 60,585 51,753 54,321 227,678 227,130 
Non-Interest Expense:
Salaries and employee benefits97,275 96,757 94,102 89,283 92,733 377,417 356,884 
Data processing and software16,985 16,914 16,776 15,796 15,448 66,471 60,255 
Other outside services14,670 12,094 10,834 10,126 10,860 47,724 37,152 
Net occupancy14,647 14,561 14,374 14,438 14,061 58,019 56,195 
FDIC insurance11,138 4,738 4,895 4,795 3,219 25,565 12,547 
Equipment 3,995 3,475 3,530 3,389 3,640 14,390 14,033 
Marketing3,550 1,913 1,655 1,886 2,380 9,004 6,885 
Professional fees2,302 1,869 1,829 2,392 2,945 8,392 9,123 
Intangible amortization597 601 1,072 674 688 2,944 1,731 
Merger-related expenses— — — — 1,894 — 10,328 
Other15,393 18,098 18,951 16,837 20,594 69,281 68,595 
    Total Non-Interest Expense180,552 171,020 168,018 159,616 168,462 679,207 633,728 
    Income Before Income Taxes81,024 88,846 95,672 83,180 97,257 348,721 347,015 
Income tax expense16,761 16,749 16,065 14,866 15,424 64,441 60,034 
    Net Income64,263 72,097 79,607 68,314 81,833 284,280 286,981 
Preferred stock dividends(2,562)(2,562)(2,562)(2,562)(2,562)(10,248)(10,248)
     Net Income Available to Common Shareholders$61,701 $69,535 $77,045 $65,752 $79,271 $274,032 $276,733 
9

Three Months EndedYear ended
Dec 31Sep 30Jun 30Mar 31Dec 31Dec 31
2023202320232023202220232022
PER SHARE:
Net income available to common shareholders (basic)$0.38 $0.42 $0.46 $0.39 $0.47 $1.66 $1.69 
Net income available to common shareholders (diluted)$0.37 $0.42 $0.46 $0.39 $0.47 $1.64 $1.67 
Cash dividends$0.17 $0.16 $0.16 $0.15 $0.21 $0.64 $0.66 
Weighted average shares (basic)163,975 164,566 165,854 166,605 167,504 165,241 164,119 
Weighted average shares (diluted)165,650 166,023 167,191 168,401 169,136 166,769 165,472 

10

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
(dollars in thousands)
Three months ended
December 31, 2023September 30, 2023December 31, 2022
AverageYield/AverageYield/AverageYield/
Balance
Interest(1)
RateBalance
Interest(1)
RateBalance
Interest(1)
Rate
ASSETS
Interest-earning assets:
Net loans$21,255,779 $311,992 5.83 %$21,121,277 $304,167 5.72 %$20,004,513 $241,453 4.80 %
Investment securities(2)
4,120,750 27,227 2.64 %4,197,550 27,274 2.59 %4,330,635 27,781 2.56 %
Other interest-earning assets267,329 3,464 5.17 %263,244 3,372 5.11 %460,082 2,923 2.53 %
Total Interest-Earning Assets25,643,858 342,683 5.31 %25,582,071 334,813 5.20 %24,795,230 272,157 4.36 %
Noninterest-Earning assets:
Cash and due from banks282,614 306,496 149,472 
Premises and equipment219,994 217,447 223,245 
Other assets1,545,535 1,562,233 1,488,684 
Less: ACL - loans(3)
(294,330)(290,411)(270,276)
Total Assets$27,397,671 $27,377,836 $26,386,355 
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-Bearing liabilities:
Demand deposits$5,723,169 $20,737 1.44 %$5,740,229 $18,690 1.29 %$5,479,443 $4,589 0.33 %
Savings deposits6,682,512 38,239 2.27 %6,676,792 34,277 2.04 %6,466,775 11,539 0.71 %
Brokered deposits1,051,369 14,078 5.31 %937,657 12,250 5.18 %215,729 1,947 3.58 %
Time deposits2,579,400 23,575 3.63 %2,330,206 18,939 3.22 %1,554,885 4,302 1.10 %
Total Interest-Bearing Deposits16,036,450 96,629 2.39 %15,684,884 84,156 2.13 %13,716,832 22,377 0.65 %
Borrowings and other interest-bearing liabilities2,541,727 29,499 4.58 %2,691,087 32,373 4.74 %2,025,522 19,559 3.83 %
Total Interest-Bearing Liabilities18,578,177 126,128 2.69 %18,375,971 116,529 2.51 %15,742,354 41,936 1.06 %
Noninterest-Bearing liabilities:
Demand deposits5,440,098 5,672,411 7,310,824 
Other noninterest-bearing liabilities761,372 683,477 844,029 
Total Liabilities24,779,647 24,731,859 23,897,207 
Total Deposits/Cost of Deposits21,476,548 1.79 %21,357,295 1.56 %21,027,656 0.42 %
Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")24,018,275 2.08 %24,048,382 1.92 %23,053,178 0.72 %
Shareholders' equity2,618,024 2,645,977 2,489,148 
Total Liabilities and Shareholders' Equity$27,397,671 $27,377,836 $26,386,355 
Net interest income/net interest margin (fully taxable equivalent)216,555 3.36 %218,284 3.40 %230,221 3.69 %
Tax equivalent adjustment(4,549)(4,442)(4,310)
Net Interest Income$212,006 $213,842 $225,911 
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
(2) Balances include amortized historical cost for available for sale ("AFS") securities. The related unrealized holding gains (losses) are included in other assets.
(3) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.
11

FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED):
(dollars in thousands)
Three months ended
Dec 31Sep 30Jun 30Mar 31Dec 31
20232023202320232022
Loans, by type:
Real estate - commercial mortgage$8,090,627 $7,912,801 $7,775,436 $7,720,975 $7,696,997 
Commercial and industrial4,579,441 4,611,376 4,629,919 4,565,923 4,372,935 
Real estate - residential mortgage5,303,632 5,209,105 5,008,295 4,790,868 4,643,784 
Real estate - home equity1,043,753 1,045,806 1,066,615 1,086,032 1,106,325 
Real estate - construction1,153,601 1,254,577 1,306,286 1,276,145 1,209,998 
Consumer746,011 761,273 763,407 721,248 679,108 
Leases and other loans(1)
338,714 326,339 316,277 301,905 295,366 
Total Net Loans$21,255,779 $21,121,277 $20,866,235 $20,463,096 $20,004,513 
Deposits, by type:
Noninterest-bearing demand$5,440,098 $5,672,411 $6,021,091 $6,641,741 $7,310,824 
Interest-bearing demand5,723,169 5,740,229 5,535,669 5,326,566 5,479,443 
Savings6,682,512 6,676,792 6,632,572 6,469,468 6,466,775 
     Total demand and savings17,845,779 18,089,432 18,189,332 18,437,775 19,257,042 
Brokered1,051,369 937,657 954,773 439,670 215,729 
Time2,579,400 2,330,206 2,063,038 1,696,878 1,554,885 
Total Deposits$21,476,548 $21,357,295 $21,207,143 $20,574,323 $21,027,656 
Borrowings, by type:
Federal funds purchased$446,707 $634,163 $679,401 $505,142 $261,737 
Federal Home Loan Bank advances760,087 793,098 880,811 1,261,589 564,692 
Senior debt and subordinated debt539,186 540,086 539,906 539,726 539,550 
Other borrowings and other interest-bearing liabilities795,747 723,740 690,742 752,227 659,543 
Total Borrowings$2,541,727 $2,691,087 $2,790,860 $3,058,684 $2,025,522 
(1) Includes equipment lease financing, overdraft and net origination fees and costs.

12

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
(dollars in thousands)
Year ended December 31
20232022
AverageYield/AverageYield/
Balance
Interest(1)
RateBalance
Interest(1)
Rate
ASSETS
Interest-earning assets:
Net loans$20,929,302 $1,166,376 5.57 %$19,152,740 $765,603 4.00 %
Investment securities(2)
4,210,010 109,325 2.59 %4,364,627 106,115 2.43 %
Other interest-earning assets387,360 15,346 3.96 %829,705 8,115 0.98 %
Total Interest-Earning Assets25,526,672 1,291,047 5.06 %24,347,072 879,833 3.61 %
Noninterest-Earning assets:
Cash and due from banks215,649 156,050 
Premises and equipment219,315 220,982 
Other assets1,553,284 1,505,277 
Less: ACL - loans(3)
(285,216)(257,897)
Total Assets$27,229,704 $25,971,484 
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-Bearing liabilities:
Demand deposits$5,582,930 $62,494 1.12 %$5,593,942 $8,219 0.15 %
Savings deposits6,616,087 122,340 1.85 %6,458,165 16,642 0.26 %
Brokered deposits847,795 43,635 5.15 %262,359 4,097 1.56 %
Time deposits2,170,245 63,735 2.94 %1,617,804 14,871 0.92 %
Total Interest-Bearing Deposits15,217,057 292,204 1.92 %13,932,270 43,829 0.31 %
Borrowings and other interest-bearing liabilities2,771,330 126,746 4.54 %1,358,357 39,375 2.89 %
Total Interest-Bearing Liabilities17,988,387 418,950 2.32 %15,290,627 83,204 0.54 %
Noninterest-Bearing liabilities:
Demand deposits5,939,799 7,522,304 
Other670,269 598,230 
Total Liabilities24,598,455 23,411,161 
Total Deposits/Cost of Deposits21,156,856 1.38 %21,454,574 0.20 %
Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")23,928,186 1.75 %22,812,931 0.36 %
Shareholders' equity2,631,249 2,560,323 
Total Liabilities and Shareholders' Equity$27,229,704 $25,971,484 
Net interest income/net interest margin (fully taxable equivalent)872,097 3.42 %796,629 3.27 %
Tax equivalent adjustment(17,811)(14,995)
Net Interest Income$854,286 $781,634 
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
(2) Balances include amortized historical cost for AFS. The related unrealized holding gains (losses) are included in other assets.
(3) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.
13

FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED):
(dollars in thousands)
Year ended December 31
20232022
Loans, by type:
Real estate - commercial mortgage$7,876,076 $7,523,806 
Commercial and industrial4,596,742 4,230,133 
Real estate - residential mortgage5,079,739 4,261,527 
Real estate - home equity1,060,396 1,101,142 
Real estate - construction1,247,336 1,178,550 
Consumer748,089 569,305 
Leases and other loans(1)
320,924 288,277 
Total Net Loans$20,929,302 $19,152,740 
Deposits, by type:
Noninterest-bearing demand$5,939,799 $7,522,304 
Interest-bearing demand5,582,930 5,593,942 
Savings6,616,087 6,458,165 
   Total demand and savings18,138,816 19,574,411 
Brokered847,795 262,359 
Time2,170,245 1,617,804 
Total Deposits$21,156,856 $21,454,574 
Borrowings, by type:
Federal funds purchased $566,379 $91,125 
Federal Home Loan Bank advances922,164 194,295 
Senior debt and subordinated debt539,726 564,337 
Other borrowings743,061 508,600 
Total Borrowings$2,771,330 $1,358,357 
(1) Includes equipment lease financing, overdraft and net origination fees and costs.
14

FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
(dollars in thousands)
Three months endedYear Ended
Dec 31Sep 30Jun 30Mar 31Dec 31Dec 31Dec 31
2023202320232023202220232022
Allowance for credit losses related to net loans:
Balance at beginning of period$292,739$287,442$278,695$269,366$266,838$269,366 $249,001 
CECL Day 1 provision expense—————— 7,954 
Initial purchased credit deteriorated loans—————— 1,135 
Loans charged off:
    Real estate - commercial mortgage(3,547)(860)(230)(13,362)(12,235)(17,999)(12,473)
    Commercial and industrial(3,397)(3,220)(2,017)(612)(179)(9,246)(2,390)
    Real estate - residential mortgage——(62)——(62)(66)
    Consumer and home equity(2,192)(1,803)(1,313)(2,206)(1,311)(7,514)(4,412)
    Real estate - construction—————— — 
    Leases and other loans(1)
(1,096)(1,396)(1,165)(723)(505)(4,380)(2,131)
    Total loans charged off(10,232)(7,279)(4,787)(16,903)(14,230)(39,201)(21,472)
Recoveries of loans previously charged off:
    Real estate - commercial mortgage160101297861831,076 3,860 
    Commercial and industrial7796209881,0869613,473 5,893 
    Real estate - residential mortgage27837584810421 425 
    Consumer and home equity5551,0239596616833,198 2,581 
    Real estate - construction87—569202530858 574 
    Leases and other loans(1)
3744002131161321,103 759 
    Recoveries of loans previously charged off2,2332,1812,8162,8992,49910,129 14,092 
Net loans (charged off) recovered(7,999)(5,098)(1,971)(14,004)(11,731)(29,072)(7,380)
Provision for credit losses8,66410,39510,71823,33314,25953,110 18,656 
Balance at end of period$293,404$292,739$287,442$278,695$269,366$293,404 $269,366 
Net charge-offs (recoveries) to average loans 0.15 %0.10 %0.04 %0.27 %0.23 %0.14 %0.04 %
Provision for credit losses related to OBS Credit Exposures
Provision for credit losses $1,144$(458)$(971)$1,211$254$926$1,411
NON-PERFORMING ASSETS:
Non-accrual loans$121,620$113,022$123,280$134,303$144,443
Loans 90 days past due and accruing31,72127,96224,41530,33627,463
    Total non-performing loans153,341140,984147,695164,639171,906
Other real estate owned8962,5493,8813,3045,790
Total non-performing assets$154,237$143,533$151,576$167,943$177,696
NON-PERFORMING LOANS, BY TYPE:
Real estate - commercial mortgage$46,527$44,058$55,048$61,322$72,634
Commercial and industrial41,02033,36530,58833,55528,288
Real estate - residential mortgage42,02940,56039,15746,57646,509
Consumer and home equity10,87811,58010,4698,9839,800
Real estate - construction2,8766771,0991,5091,368
Leases and other loans(1)
10,01110,74411,33412,69413,307
Total non-performing loans$153,341$140,984$147,695$164,639$171,906
(1) Includes equipment lease financing, overdraft and net origination fees and costs.
15

FULTON FINANCIAL CORPORATION
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
(dollars in thousands, except per 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
Dec 31Sep 30Jun 30Mar 31Dec 31
20232023202320232022
Operating net income available to common shareholders
Net income available to common shareholders$61,701$69,535$77,045$65,752$79,271
Plus: Core deposit intangible amortization441441912514514
Plus: Merger-related expenses————1,894
Plus: Interest rate derivative transition valuation(1)
(1,102)2,958———
Plus: FDIC special assessment6,494————
Plus: FultonFirst initiative3,197————
Less: Tax impact of adjustments(1,896)(714)(192)(108)(506)
Operating net income available to common shareholders (numerator)$68,835$72,220$77,765$66,158$81,173
Weighted average shares (diluted) (denominator)165,650166,023167,191168,401169,136
Operating net income available to common shareholders, per share (diluted)$0.42$0.43$0.47$0.39$0.48
Common shareholders' equity (tangible), per share
Shareholders' equity$2,750,044$2,566,693$2,642,152$2,618,998$2,579,757
Less: Preferred stock(192,878)(192,878)(192,878)(192,878)(192,878)
Less: Goodwill and intangible assets(560,687)(561,284)(561,885)(563,502)(560,824)
Tangible common shareholders' equity (numerator)$1,996,479$1,812,531$1,887,389$1,862,618$1,826,055
Shares outstanding, end of period (denominator)163,801164,084166,097165,396167,599
Common shareholders' equity (tangible), per share$12.19$11.05$11.36$11.26$10.90
Operating return on average assets
Net income$64,263$72,097$79,607$68,314$81,833
Plus: Core deposit intangible amortization441441912514514
Plus: Merger-related expenses————1,894
Plus: Interest rate derivative transition valuation(1)
(1,102)2,958———
Plus: FDIC special assessment6,494————
Plus: FultonFirst initiative3,197————
Less: Tax impact of adjustments(1,896)(714)(192)(108)(506)
Operating net income (numerator)$71,397$74,782$80,327$68,720$83,735
Total average assets $27,397,671$27,377,836$27,235,567$26,900,653$26,386,355
Less: Average net core deposit intangible(5,106)(5,548)(6,417)(6,937)(7,478)
Total operating average assets (denominator)$27,392,565$27,372,288$27,229,150$26,893,716$26,378,877
Operating return on average assets1.03%1.08%1.18%1.04%1.26%
(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.
16

Three months ended
Dec 31Sep 30Jun 30Mar 31Dec 31
20232023202320232022
Return on average common shareholders' equity (tangible)
Net income available to common shareholders$61,701$69,535$77,045$65,752$79,271
Plus: Intangible amortization5976011,072674688
Plus: Merger-related expenses————1,894
Plus: Interest rate derivative transition valuation(1)
(1,102)2,958———
Plus: FDIC special assessment6,494————
Plus: FultonFirst initiative3,197————
Less: Tax impact of adjustments(1,929)(747)(225)(142)(542)
Adjusted net income available to common shareholders (numerator)$68,958$72,347$77,892$66,284$81,311
Average shareholders' equity$2,618,024$2,645,977$2,647,464$2,613,316$2,489,148
Less: Average preferred stock(192,878)(192,878)(192,878)(192,878)(192,878)
Less: Average goodwill and intangible assets(560,977)(561,578)(563,146)(561,744)(561,219)
Average tangible common shareholders' equity (denominator)$1,864,169$1,891,521$1,891,440$1,858,694$1,735,051
Return on average common shareholders' equity (tangible)14.68%15.17%16.52%14.46%18.59%
Tangible common equity to tangible assets (TCE Ratio)
Shareholders' equity$2,750,044$2,566,693$2,642,152$2,618,998$2,579,757
Less: Preferred stock(192,878)(192,878)(192,878)(192,878)(192,878)
Less: Goodwill and intangible assets(560,687)(561,284)(561,885)(563,502)(560,824)
Tangible common shareholders' equity (numerator)$1,996,479$1,812,531$1,887,389$1,862,618$1,826,055
Total assets$27,560,704$27,375,177$27,403,163$27,112,176$26,931,702
Less: Goodwill and intangible assets(560,687)(561,284)(561,885)(563,502)(560,824)
Total tangible assets (denominator)$27,000,017$26,813,893$26,841,278$26,548,674$26,370,878
Tangible common equity to tangible assets7.39%6.76%7.03%7.02%6.92%
Efficiency ratio
Non-interest expense$180,552$171,020$168,018$159,616$168,462
Less: Amortization of tax credit investments————(696)
Less: Merger-related expenses————(1,894)
Less: FDIC special assessment(6,494)————
Less: FultonFirst initiative(3,197)————
Less: Intangible amortization(597)(601)(1,072)(674)(688)
Less: Debt extinguishment720————
Non-interest expense (numerator)$170,984$170,419$166,946$158,942$165,184
Net interest income$212,006$213,842$212,852$215,587$225,911
Tax equivalent adjustment4,5494,4424,4054,4144,310
Plus: Total non-interest income59,37855,96160,58551,75354,321
Plus: Interest rate derivative transition valuation(1)
(1,102)2,958———
Less: Investment securities (gains) losses, net752—4(23)1
Total revenue (denominator)$275,583$277,203$277,846$271,731$284,543
Efficiency ratio62.0%61.5%60.1%58.5%58.1%
(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.
17

Three months ended
Dec 31Sep 30Jun 30Mar 31Dec 31
20232023202320232022
Operating non-interest expenses to total average assets
Non-interest expense$180,552$171,020$168,018$159,616$168,462
Less: Amortization of tax credit investments————(696)
Less: Intangible amortization(597)(601)(1,072)(674)(688)
Less: Merger-related expenses————(1,894)
Less: FDIC special assessment(6,494)————
Less: FultonFirst initiatives(3,197)————
Non-interest expense (numerator)$170,264$170,419$166,946$158,942$165,184
Total average assets (denominator)$27,397,671$27,377,836$27,235,567$26,900,653$26,386,355
Operating non-interest expenses to total average assets2.47%2.47%2.46%2.40%2.48%
Pre-provision net revenue
Net interest income$212,006$213,842$212,852$215,587$225,911
Non-interest income59,37855,96160,58551,75354,321
Plus: Interest rate derivative transition valuation(1)
(1,102)2,958———
Less: Investment securities (gains) losses, net752—4(23)1
Total revenue$271,034$272,761$273,441$267,317$280,233
Non-interest expense$180,552$171,020$168,018$159,616$168,462
Less: Amortization on tax credit investments ————(696)
Less: Merger-related expenses————(1,894)
Less: Intangible amortization(597)(601)(1,072)(674)(688)
Less: FDIC special assessment(6,494)————
Less: FultonFirst initiative(3,197)————
Less: Debt extinguishment720————
Total non-interest expense$170,984$170,419$166,946$158,942$165,184
Pre-provision net revenue$100,050$102,342$106,495$108,375$115,049
Year ended
Dec 31
2023
Operating net income available to common shareholders
Net income available to common shareholders$274,032
Plus: Core deposit intangible amortization2,308
Plus: Interest rate derivative transition valuation(1)
1,855 
Plus: FDIC special assessment6,494 
Plus: FultonFirst initiative3,197 
Less: Tax impact of adjustments(2,909)
Operating net income available to common shareholders (numerator)$284,977
Weighted average shares (diluted) (denominator)166,769 
Operating net income available to common shareholders, per share (diluted)$1.71
(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.


18
FOURTH QUARTER 2023 RESULTS NASDAQ: FULT Data as of or for the period ended December 31, 2023 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, 2022, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 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. 2

 
3

 
4

 
5

 
(1) 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. 6 4Q23 3Q23 4Q22 (dollars in thousands, except per-share data) Net interest income $212,006 $213,842 $225,911 Provision for credit losses 9,808 9,937 14,513 Non-interest income 60,130 55,961 54,322 Securities gains (losses) (752) — (1) Non-interest expense 180,552 171,020 166,568 Merger-related expenses — — 1,894 Income before income taxes 81,024 88,846 97,257 Income taxes 16,761 16,749 15,424 Net income 64,263 72,097 81,833 Preferred stock dividends (2,562) (2,562) (2,562) Net income available to common shareholders $61,701 $69,535 $79,271 Net income available to common shareholders, per share (diluted) $0.37 $0.42 $0.47 Operating net income available to common shareholders, per share (diluted)(1) $0.42 $0.43 $0.48 ROAA 0.93% 1.04% 1.23% Operating ROAA(1) 1.03% 1.08% 1.26% ROAE 10.09% 11.25% 13.70% ROAE (tangible)(1) 14.68% 15.17% 18.59% Efficiency ratio(1) 62.0% 61.5% 58.1%

 
7

 
8

 
9

 
(1) Excluding investment securities gains. 10

 
11

 
12 (1) Regulatory capital ratios and excess capital amounts as of December 31, 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. $1,201 $621 $767 $815 (as of December 31, 2023) (dollars in millions) (2)

 
13 (1) Regulatory capital ratios and excess capital amounts as of December 31, 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 losses, net of tax, on held-to-maturity investment securities of $108.5 million and unrealized losses net of tax, on available-for-sale investment securities of $232.0 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. $856 $410 (as of December 31, 2023) (dollars in millions) | | | | | | | | | | | | | Tier 1 Leverage(3) CE Tier 1(3) TCE(4)

 
14 (dollars in thousands)(dollars in thousands)

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

 
16 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) Dec 31 Sep 30 Dec 31 2023 2023 2022 Operating net income available to common shareholders Net income available to common shareholders $61,701 $69,535 $79,271 Plus: Core deposit intangible amortization 441 441 514 Plus: Merger-related expenses — — 1,894 Plus: Interest rate derivative transition valuation(1) (1,102) 2,958 — Plus: FDIC special assessment 6,494 — — Plus: FultonFirst initiative 3,197 — — Less: Tax impact of adjustments (1,896) (714) (506) Operating net income available to common shareholders (numerator) $68,835 $72,220 $81,173 Weighted average shares (diluted) (denominator) 165,650 166,023 169,136 Operating net income available to common shareholders, per share (diluted) $0.42 $0.43 $0.48 (1) Resulting from the reference rate transition from London Interbank Offered Rate ("LIBOR") to Secured Overnight Financing Rate ("SOFR") in the Corporation's commercial customer interest rate swap program.

 
17 Three months ended (dollars in thousands) Dec 31 Sep 30 Dec 31 2023 2023 2022 Operating return on average assets Net income $64,263 $72,097 $81,833 Plus: Core deposit intangible amortization 441 441 514 Plus: Merger-related expenses — — 1,894 Plus: Interest rate derivative transition valuation(1) (1,102) 2,958 — Plus: FDIC special assessment 6,494 — — Plus: FultonFirst initiative 3,197 — — Less: Tax impact of adjustments (1,896) (714) (506) Operating net income (numerator) $71,397 $74,782 $83,735 Total average assets $27,397,671 $27,377,836 $26,386,355 Less: Average net core deposit intangible (5,106) (5,548) (7,478) Total average operating assets (denominator) $27,392,565 $27,372,288 $26,378,877 Operating return on average assets 1.03 % 1.08 % 1.26 % (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.

 
18 Three months ended (dollars in thousands) Dec 31 Sep 30 Dec 31 2023 2023 2022 Return on average common shareholders' equity (tangible) Net income available to common shareholders $61,701 $69,535 $79,271 Plus: Intangible amortization 597 601 688 Plus: Merger-related expenses — — 1,894 Plus: Interest rate derivative transition valuation(1) (1,102) 2,958 — Plus: FDIC special assessment 6,494 — — Plus: FultonFirst initiatives 3,197 — — Less: Tax impact of adjustments (1,929) (747) (542) Adjusted net income available to common shareholders (numerator) $68,958 $72,347 $81,311 Average shareholders' equity $2,618,024 $2,645,977 $2,489,148 Less: Average preferred stock (192,878) (192,878) (192,878) Less: Average goodwill and intangible assets (560,977) (561,578) (561,219) Average tangible common shareholders' equity (denominator) $1,864,169 $1,891,521 $1,735,051 Return on average common shareholders' equity (tangible) 14.68 % 15.17 % 18.59 % (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.

 
19 (dollars in thousands) Three months ended Dec 31 Sep 30 Dec 31 Efficiency ratio 2023 2023 2022 Non-interest expense $180,552 $171,020 $168,462 Less: Amortization of tax credit investments — — (696) Less: Intangible amortization (597) (601) (688) Less: Merger-related expenses — — (1,894) Less: FDIC special assessment (6,494) — — Less: FultonFirst initiatives (3,197) — — Less: Debt extinguishment 720 — — Non-interest expense (numerator) $170,984 $170,419 $165,184 Net interest income $212,006 $213,842 $225,911 Tax equivalent adjustment 4,549 4,442 4,310 Plus: Total non-interest income 59,378 55,961 54,321 Plus: Interest rate derivative transition valuation(1) (1,102) 2,958 — Less: Investment securities (gains) losses, net 752 — 1 Total revenue (denominator) $275,583 $277,203 $284,543 Efficiency ratio 62.0% 61.5% 58.1% (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.

 
20 Three months ended (dollars in thousands) Dec 31 2023 Adjusted tangible common equity to tangible assets (TCE Ratio) Shareholders' equity $ 2,750,044 Less: Preferred stock (192,878) Less: Goodwill and intangible assets (560,687) Less: Unrealized gain (loss) - HTM (140,277) Less: Tax impact of adjustments 31,773 Adjusted tangible common shareholders' equity (numerator) $ 1,887,975 Total assets $ 27,560,704 Less: Goodwill and intangible assets (560,687) Less: Unrealized gain (loss) - HTM (140,277) Less: Tax impact of adjustments 31,773 Adjusted total tangible assets (denominator) $ 26,891,513 Adjusted tangible common equity to tangible assets 7.0 %

 
v3.23.4
Cover Page
Jan. 16, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Jan. 16, 2024
Entity Registrant Name Fulton Financial Corporation
Entity Central Index Key 0000700564
Amendment Flag false
Entity Incorporation, State or Country Code PA
Entity File Number 001-39680
Entity Tax Identification Number 23-2195389
Entity Address, Address Line Two P.O. Box 4887
Entity Address, Address Line One One Penn Square,
Entity Address, City or Town Lancaster,
Entity Address, State or Province PA
Entity Address, Postal Zip Code 17604
City Area Code 717
Local Phone Number 291-2411
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Common Stock  
Document Information [Line Items]  
Title of 12(b) Security Common stock, par value $2.50
Trading Symbol FULT
Security Exchange Name NASDAQ
Series A Preferred Stock  
Document Information [Line Items]  
Title of 12(b) Security Depositary Shares, Each Representing 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A
Trading Symbol FULTP
Security Exchange Name NASDAQ
Fulton Financial (NASDAQ:FULTP)
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