Fulton Financial Announces Fourth Quarter and 2020 Results

Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $49 million, or $0.30 per diluted share, for the fourth quarter of 2020 and $176 million, or $1.08 per diluted share, for the year ended December 31, 2020.

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“We were pleased with our company’s achievements for the 4th quarter and for the year as a whole, given the challenges presented by the lingering presence of COVID-19,” said E. Philip Wenger, Chairman and CEO of Fulton Financial Corporation. “The low interest rate environment continued to put pressure on our margin, but even in this challenging environment, we had stable asset quality, were able to provide Paycheck Protection Program and Main Street loans to our customers, helped our mortgage business grow to historic highs, and saw wealth management business performance that was beyond our expectations.”

Net Interest Income and Balance Sheet

Net interest income for the fourth quarter of 2020 was $162 million, $7.5 million higher than the third quarter of 2020. Net interest margin for the fourth quarter of 2020 increased 5 basis points, to 2.75%, from 2.70% in the third quarter of 2020. The increases in net interest income and net interest margin were primarily due to the forgiveness of Paycheck Protection Program ("PPP") loans and the acceleration of the recognition of related fee income as well as growth in average loans and investments securities during the quarter. For the year ended December 31, 2020, net interest income was $629 million, a decrease of $19 million in comparison to the year ended December 31, 2019, as the 90 basis point decline in yields on average interest-earning assets outpaced the 42 basis point decline in the cost of funds. The net interest margin in 2020 was 2.86% compared 3.36% in 2019.

Total average assets for the fourth quarter of 2020 were $25.7 billion, an increase of $580 million from the third quarter of 2020. Average loans, net of unearned income, were $19.0 billion, relatively unchanged compared to the third quarter of 2020. Beginning in the second quarter of 2020, average loans included loans originated under PPP. PPP loans had an average balance of $1.8 billion for the fourth quarter of 2020, compared to $2.0 billion for the third quarter of 2020.

Average loans and yields, by type, for the fourth quarter of 2020 in comparison to the third quarter of 2020 are summarized in the following table:

		Three months ended
		December 31, 2020							September 30, 2020							Growth
		Balance				Yield (1)			Balance				Yield (1)			$				%
		(dollars in thousands)
Average Loans, net of unearned income, by type:
Real estate - commercial mortgage		$	7,101,363			3.21	%		$	6,986,528			3.27	%		$	114,835			1.6	%
Commercial and industrial(2)		5,855,305				2.57	%		5,983,872				2.53	%		(128,567)				(2.1)	%
Real estate - residential mortgage		3,087,529				3.65	%		2,975,516				3.73	%		112,013				3.8	%
Real estate - home equity		1,212,113				3.91	%		1,237,602				3.87	%		(25,489)				(2.1)	%
Real estate - construction		1,009,284				3.11	%		981,589				3.84	%		27,695				2.8	%
Consumer		468,678				4.07	%		464,851				4.07	%		3,827				0.8	%
Equipment lease financing		279,059				3.98	%		279,217				3.96	%		(158)				(0.1)	%
Other(3)		(18,817)				N/A			(28,656)				N/A			9,839				(34.3)	%
Total Average Loans, net of unearned income		$	18,994,514			3.45	%		$	18,880,519			3.38	%		$	113,995			0.6	%
(1) Presented on a fully-taxable equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances.
(2) Includes average PPP loans of $1.8 billion and $2.0 billion for the three months ended December 31, 2020 and September 30, 2020, respectively.
(3) Consists of overdrafts and net origination fees and costs.

Total average assets for the year ended December 31, 2020 were $24.3 billion, an increase of $3.1 billion from 2019. Average loans, net of unearned income, were $18.3 billion, an increase of $1.8 billion from 2019. Included in average loans are loans originated under the PPP, which had an average balance of $1.3 billion for the year ended December 31, 2020. The remaining increase was mainly in residential mortgage loans.

Total average liabilities increased $409 million from the third quarter of 2020 driven by increases in demand and savings deposits. Average deposits and interest rates, by type, for the fourth quarter of 2020 in comparison to the third quarter of 2020 are summarized in the following table:

		Three months ended
		December 31, 2020							September 30, 2020							Growth
		Balance				Rate			Balance				Rate			$				%
		(dollars in thousands)
Average Deposits, by type:
Noninterest-bearing demand		$	6,477,228			—			$	6,270,683			—			$	206,545			3.3	%
Interest-bearing demand		5,762,150				0.10	%		5,591,548				0.14	%		170,602				3.1	%
Savings		5,905,137				0.13	%		5,716,050				0.16	%		189,087				3.3	%
Total average demand and savings		18,144,515				0.07	%		17,578,281				0.10	%		566,234				3.2	%
Brokered		340,451				0.53	%		314,721				0.56	%		25,730				8.2	%
Time		2,306,556				1.39	%		2,495,445				1.58	%		(188,889)				(7.6)	%
Total Average Deposits		$	20,791,522			0.23	%		$	20,388,447			0.29	%		$	403,075			2.0	%

Total average liabilities for the year ended December 31, 2020 increased $3 billion from 2019 driven by increases in demand and savings deposits.

Asset Quality

The provision for credit losses was $6 million, $7 million and $21 million for the fourth quarter of 2020, third quarter of 2020 and fourth quarter of 2019, respectively. For the year ended December 31, 2020, the provision for credit losses was $77 million compared to $33 million in 2019. Effective January 1, 2020 Fulton adopted ASU 2016-13, referred to as the current expected credit loss model. As such, the provision for credit losses in 2020 reflects current expected credit losses based on forecasted economic and other assumptions, including the estimated impacts of COVID-19, over the remaining expected lives of financial assets and off-balance-sheet credit exposures, whereas the 2019 methodology applied an incurred loss model.

Non-performing assets were $151 million, or 0.58% of total assets, at December 31, 2020, compared to $147 million, or 0.57% of total assets, at September 30, 2020.

Annualized net recoveries for the quarter ended December 31, 2020 were 0.07% of total average loans, compared to annualized net recoveries of 0.05% and annualized net charge-offs of 0.65% for the quarters ended September 30, 2020 and December 31, 2019, respectively. Net charge-offs for 2020 were 0.05% of total average loans compared to 0.22% in 2019.

Non-interest Income

Non-interest income in the fourth quarter of 2020, excluding investment securities gains, was $56 million, a decrease of $8 million, or 12%, from the third quarter of 2020, primarily driven by decreases $7 million in mortgage banking income and $1 million in capital markets revenue. The decrease in mortgage banking income was mainly due to seasonal decreases in the volume of loans sold.

Compared to the fourth quarter of 2019, non-interest income, excluding investment securities gains, in the fourth quarter of 2020 was relatively unchanged as increases in mortgage banking and wealth management income offset decreases in a number of other categories.

For the year ended December 31, 2020, non-interest income, excluding investment securities gains, was $226 million, an increase of $15 million, or 7%, from 2019. The increase was driven by a $19 million increase in mortgage banking income, with mortgage sale gains increasing $36 million due to higher volumes and spreads, partially offset by a $10.5 million of mortgage servicing rights asset impairment charges for the year and higher mortgage servicing rights asset amortization, due to higher refinance activity. In addition, wealth management and capital markets revenue each increased by $3 million. Partially offsetting these increases were decreases of $5 million in overdraft fees in consumer banking and $4 million in other service charges on deposits in other commercial banking.

During both 2020 and 2019, Fulton completed balance sheet restructurings involving sales of investment securities and corresponding prepayments of FHLB advances. As a result of these transactions, $3 million and $5 million of investment securities gains were realized during 2020 and 2019, respectively, and prepayment penalties of $3 million and $4 million were incurred during 2020 and 2019, respectively.

Non-interest Expense

Non-interest expense was $155 million in the fourth quarter of 2020, an increase of $16 million, or 11%, compared to the third quarter of 2020, with $15 million and $1 million attributable to charges related to cost savings initiatives recognized in the fourth quarter of 2020 and the third quarter of 2020, respectively. Those charges in the fourth quarter of 2020 included $4.6 million of employee severance for impacted employees (salaries and benefits) and $4.8 million of write-offs of fixed assets and $5.8 million of lease termination charges (other expense) resulting from 21 financial center closures.

Compared to the fourth quarter of 2019, non-interest expense increased $16 million, or 11%, due primarily to the previously discussed charges associated with the cost savings initiatives.

The cost savings anticipated from the implementation of the cost savings initiatives are not expected to be fully realized until mid-2021. Of the anticipated $25 million in annual expense savings, the Corporation expects to reinvest a portion of the savings to accelerate digital transformation initiatives.

For the year end December 31, 2020, non-interest expense was $579 million, an increase of $12 million, or 2%, from 2019. This increase was primarily due to expenses related to the cost savings initiatives, which totaled $16 million for the year, as well as increases of $3 million in data processing and software and $1 million in FDIC insurance. These increases were partially offset by decreases of $9 million in other outside services and $5 million in marketing.

Income Tax Expense

The effective income tax rate (ETR) for the fourth quarter of 2020 was 10%, as compared to 13% for both the third quarter of 2020 and fourth quarter of 2019. For the year ended December 31, 2020, the ETR was 12% compared 14% in 2019. The decreases resulted from lower income before income taxes.

Shareholders' Equity

In the fourth quarter of 2020, the Corporation issued $200 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock ("Preferred Stock") at a rate of 5.125%. The Corporation received net proceeds from the offering of $192.9 million after issuance costs. Dividends on the Preferred Stock were $2.1 million in the fourth quarter, or approximately $0.01 per diluted share.

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

Safe Harbor Statement

This news release may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," “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, they 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, 2019, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020 and other current and periodic reports, which have been or will be filed with the Securities and Exchange Commission and are or will be available in the Investor Relations section of the Corporation's website (www.fult.com) and on the Securities and Exchange Commission's website (www.sec.gov).

Non-GAAP Financial Measures

The Corporation uses certain non-GAAP financial measures in this earnings release. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this release.

FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
in thousands, except per-share data and percentages
	Three months ended
	Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
	2020				2020				2020				2020				2019
Ending Balances
Investments	$	3,340,424			$	3,097,721			$	2,974,813			$	3,141,440			$	2,867,378
Loans, net of unearned income	18,900,820				19,028,621				18,704,722				17,077,403				16,837,526
Total assets	25,906,733				25,543,281				24,617,863				22,929,859				21,886,040
Deposits	20,839,207				20,730,051				19,884,208				17,365,026				17,393,913
Shareholders' equity	2,616,828				2,390,261				2,340,501				2,285,748				2,342,176
Average Balances
Investments	$	3,221,289			$	2,977,672			$	3,096,632			$	3,071,828			$	2,830,999
Loans, net of unearned income	18,994,514				18,880,519				18,331,797				16,860,067				16,768,057
Total assets	25,749,405				25,169,508				24,139,116				22,252,099				21,812,438
Deposits	20,791,522				20,388,447				19,276,658				17,121,428				17,449,565
Shareholders' equity	2,544,866				2,374,091				2,309,133				2,337,016				2,341,397
Income Statement
Net interest income	$	161,591			$	154,116			$	152,754			$	160,746			$	159,270
Provision for credit losses	6,240				7,080				19,570				44,030				20,530
Non-interest income	55,574				63,248				55,922				54,644				55,281
Non-interest expense	154,737				139,147				143,006				142,552				138,974
Income before taxes	56,187				71,137				46,101				28,808				55,047
Net income available to common shareholders	48,690				61,607				39,559				26,047				47,789
Per Share
Net income available to common shareholders (basic)	$	0.30			$	0.38			$	0.24			$	0.16			$	0.29
Net income available to common shareholders (diluted)	$	0.30			$	0.38			$	0.24			$	0.16			$	0.29
Cash dividends	$	0.17			$	0.13			$	0.13			$	0.13			$	0.17
Common shareholders' equity	$	14.93			$	14.74			$	14.45			$	14.16			$	14.26
Common shareholders' equity (tangible)(1)	$	11.62			$	11.44			$	11.15			$	10.84			$	11.00
Weighted average shares (basic)	162,242				162,061				161,715				163,475				164,135
Weighted average shares (diluted)	163,071				162,579				162,267				164,417				165,039
(1) Non-GAAP financial measure. Refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this document.
	Three months ended
	Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
	2020				2020				2020				2020				2019
Asset Quality(2)
Net (recoveries) charge-offs to average loans (annualized)	(0.07)		%		(0.05)		%		0.09		%		0.26		%		0.65		%
Non-performing loans to total loans	0.78		%		0.75		%		0.75		%		0.82		%		0.84		%
Non-performing assets to total assets	0.58		%		0.57		%		0.59		%		0.64		%		0.68		%
ACL - loans(3) to total loans	1.47		%		1.40		%		1.37		%		1.40		%		0.97		%
ACL - loans(3) to non-performing loans	189		%		188		%		183		%		170		%		116		%
Non-performing assets to common shareholders' equity (tangible) and ACL - loans (1)(3)	6.42		%		6.91		%		7.04		%		7.37		%		7.51		%
Asset Quality, excluding PPP(1)(4)
Net (recoveries) charge-offs to average adjusted loans (annualized)	(0.08)		%		(0.06)		%		0.10		%		—		%		—		%
Non-performing loans to total adjusted loans	0.85		%		0.83		%		0.83		%		—		%		—		%
ACL - loans(3) to total adjusted loans	1.60		%		1.56		%		1.53		%		—		%		—		%
Profitability
Return on average assets	0.79		%		0.97		%		0.66		%		0.47		%		0.87		%
Return on average shareholders' equity	7.95		%		10.32		%		6.89		%		4.48		%		8.10		%
Return on average common shareholders' equity (tangible)(1)	10.32		%		13.50		%		8.99		%		5.84		%		10.52		%
Net interest margin	2.75		%		2.70		%		2.81		%		3.21		%		3.22		%
Efficiency ratio(1)	69.5		%		62.3		%		66.4		%		64.5		%		63.1		%
Efficiency ratio, net 2020 cost savings initiatives(1)	62.5		%		62.0		%		66.4		%		64.5		%		63.1		%
Capital Ratios
Tangible common equity ratio(1)	7.4		%		7.4		%		7.5		%		7.8		%		8.5		%
Tier 1 leverage ratio(5)	8.1		%		7.4		%		7.6		%		7.9		%		8.4		%
Common equity Tier 1 capital ratio(5)	9.4		%		9.5		%		9.5		%		9.4		%		9.7		%
Tier 1 capital ratio(5)	10.3		%		9.5		%		9.5		%		9.4		%		9.7		%
Total risk-based capital ratio(5)	14.5		%		13.9		%		13.8		%		13.8		%		11.8		%

(1) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this document.

(2) Effective January 1, 2020, Fulton adopted Accounting Standards Update 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," referred to as the current expected credit loss model ("CECL"). This accounting standard requires that credit losses for financial assets and off-balance-sheet ("OBS") credit exposures be measured based on expected credit losses, rather than on incurred credit losses as in prior periods.

(3) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.

(4) Asset quality information excluding Paycheck Protection Program ("PPP") loans. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this document.

(5) Regulatory capital ratios as of December 31, 2020 are preliminary and prior periods are actual.

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
																							% Change from
			Dec 31				Sep 30				Jun 30				Mar 31				Dec 31				Sep 30			Dec 31
			2020				2020				2020				2020				2019				2020			2019
ASSETS
	Cash and due from banks		$	120,462			$	139,304			$	141,702			$	181,777			$	132,283			(13.5)	%		(8.9)	%
	Other interest-earning assets		1,819,499				1,489,550				1,007,939				793,572				482,930				22.2	%		N/M
	Loans held for sale		83,886				93,621				77,415				40,645				37,828				(10.4)	%		N/M
	Investment securities		3,340,424				3,097,721				2,974,813				3,141,440				2,867,378				7.8	%		16.5	%
	Loans, net of unearned income		18,900,820				19,028,621				18,704,722				17,077,403				16,837,526				(0.7)	%		12.3	%
	Less: ACL - loans(1)		(277,567)				(266,825)				(256,537)				(238,508)				(163,622)				4.0	%		69.6	%
	Net loans		18,623,253				18,761,796				18,448,185				16,838,895				16,673,904				(0.7)	%		11.7	%
	Premises and equipment		231,480				236,943				239,596				236,908				240,046				(2.3)	%		(3.6)	%
	Accrued interest receivable		72,942				70,766				73,720				59,365				60,898				3.1	%		19.8	%
	Goodwill and intangible assets		536,659				534,907				535,039				535,171				535,303				0.3	%		0.3	%
	Other assets		1,078,128				1,118,673				1,119,454				1,102,086				855,470				(3.6)	%		26.0	%
	Total Assets		$	25,906,733			$	25,543,281			$	24,617,863			$	22,929,859			$	21,886,040			1.4	%		18.4	%
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits		$	20,839,207			$	20,730,051			$	19,884,208			$	17,365,026			$	17,393,913			0.5	%		19.8	%
	Short-term borrowings		630,066				611,727				572,551				1,386,808				883,241				3.0	%		(28.7)	%
	Other liabilities		524,369				515,230				525,407				513,811				384,941				1.8	%		36.2	%
	FHLB advances and long-term debt		1,296,263				1,296,012				1,295,196				1,378,466				881,769				—	%		47.0	%
	Total Liabilities		23,289,905				23,153,020				22,277,362				20,644,111				19,543,864				0.6	%		19.2	%
	Shareholders' equity		2,616,828				2,390,261				2,340,501				2,285,748				2,342,176				9.5	%		11.7	%
	Total Liabilities and Shareholders' Equity		$	25,906,733			$	25,543,281			$	24,617,863			$	22,929,859			$	21,886,040			1.4	%		18.4	%
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
	Real estate - commercial mortgage		$	7,105,092			$	7,046,330			$	6,934,936			$	6,895,069			$	6,700,776			0.8	%		6.0	%
	Commercial and industrial		4,088,561				4,007,278				4,033,439				4,450,557				4,445,634				2.0	%		(8.0)	%
	Real estate - residential mortgage		3,141,915				3,061,835				2,862,226				2,718,290				2,641,465				2.6	%		18.9	%
	Real estate - home equity		1,202,913				1,222,709				1,251,455				1,292,677				1,314,944				(1.6)	%		(8.5)	%
	Real estate - construction		1,047,218				1,007,534				972,909				947,768				971,079				3.9	%		7.8	%
	Consumer		466,772				469,551				465,610				468,172				463,164				(0.6)	%		0.8	%
	Equipment lease financing		279,118				280,286				281,897				289,726				284,537				(0.4)	%		(1.9)	%
	Other(2)		(12,481)				(27,067)				(34,784)				15,144				15,927				(53.9)	%		N/M
	Loans, net of unearned income before PPP		17,319,108				17,068,456				16,767,688				17,077,403				16,837,526				1.5	%		2.9	%
	PPP		1,581,712				1,960,165				1,937,034				—				—				(19.3)	%		N/M
	Total Loans, net of unearned income		$	18,900,820			$	19,028,621			$	18,704,722			$	17,077,403			$	16,837,526			(0.7)	%		12.3	%
Deposits, by type:
	Noninterest-bearing demand		$	6,531,002			$	6,378,077			$	6,239,055			$	4,531,872			$	4,453,324			2.4	%		46.7	%
	Interest-bearing demand		5,818,564				5,813,935				5,099,405				4,724,520				4,720,188				0.1	%		23.3	%
	Savings		5,929,792				5,805,431				5,667,893				5,092,865				5,153,941				2.1	%		15.1	%
	Total demand and savings		18,279,358				17,997,443				17,006,353				14,349,257				14,327,453				1.6	%		27.6	%
	Brokered		335,185				317,588				310,689				313,337				264,531				5.5	%		26.7	%
	Time		2,224,664				2,415,020				2,567,166				2,702,432				2,801,929				(7.9)	%		(20.6)	%
	Total Deposits		$	20,839,207			$	20,730,051			$	19,884,208			$	17,365,026			$	17,393,913			0.5	%		19.8	%
Short-term borrowings, by type:
	Customer funding		$	630,066			$	611,727			$	572,551			$	461,808			$	383,241			3.0	%		64.4	%
	Federal funds purchased		—				—				—				200,000				—				N/M			N/M
	Short-term FHLB advances		—				—				—				725,000				500,000				N/M			(100.0)	%
	Total Short-term Borrowings		$	630,066			$	611,727			$	572,551			$	1,386,808			$	883,241			3.0	%		(28.7)	%
N/M - Not meaningful
(1) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.
(2) Consists of overdrafts and net origination fees and costs.

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands
				Three Months Ended																				% Change from								Years ended
				Dec 31				Sep 30				Jun 30				Mar 31				Dec 31				Sep 30			Dec 31					Dec 31
				2020				2020				2020				2020				2019				2020			2019					2020				2019				% Change
Interest Income:
	Interest income			$	183,645			$	179,159			$	180,696			$	199,378			$	202,159			2.5	%		(9.2)	%				$	742,878			$	825,306			(10.0)	%
	Interest expense			22,054				25,043				27,942				38,632				42,889				(11.9)	%		(48.6)	%				113,671				176,917				(35.7)	%
	Net Interest Income			161,591				154,116				152,754				160,746				159,270				4.9	%		1.5	%				629,207				648,389				(3.0)	%
	Provision for credit losses			6,240				7,080				19,570				44,030				20,530				(11.9)	%		(69.6)	%				76,920				32,825				N/M
	Net Interest Income after Provision			155,351				147,036				133,184				116,716				138,740				5.7	%		12.0	%				552,287				615,564				(10.3)	%
Non-Interest Income:
	Wealth management			15,653				14,943				13,407				15,055				14,419				4.7	%		8.6	%				59,058				55,678				6.1	%
	Mortgage banking			9,311				16,801				9,964				6,234				5,076				(44.6)	%		83.4	%				42,309				23,099				83.2	%
	Consumer banking:
	Card			5,123				5,002				4,966				4,685				4,991				2.4	%		2.7	%				19,777				20,515				(3.6)	%
	Overdraft			3,376				3,015				2,107				4,058				4,750				12.0	%		(28.9)	%				12,556				17,949				(30.0)	%
	Other consumer banking			2,298				2,406				2,065				2,496				2,688				(4.5)	%		(14.5)	%				9,266				11,039				(16.1)	%
	Total consumer banking			10,798				10,423				9,138				11,239				12,429				3.6	%		(13.1)	%				41,598				49,503				(16.0)	%
	Commercial banking:
	Merchant and card			5,953				6,237				5,326				5,624				5,841				(4.6)	%		1.9	%				23,139				24,077				(3.9)	%
	Cash management			4,737				4,742				4,503				4,742				4,697				(0.1)	%		0.9	%				18,725				18,392				1.8	%
	Capital markets			3,513				4,696				5,004				5,075				5,939				(25.2)	%		(40.8)	%				18,288				14,875				22.9	%
	Other commercial banking			2,606				2,636				1,914				2,978				3,664				(1.2)	%		(28.9)	%				10,134				13,773				(26.4)	%
	Total commercial banking			16,809				18,311				16,748				18,419				20,141				(8.2)	%		(16.5)	%				70,286				71,117				(1.2)	%
	Other			3,004				2,769				3,660				3,651				3,216				8.5	%		(6.6)	%				13,084				12,030				8.8	%
	Non-interest income before investment securities gains			55,574				63,246				52,917				54,598				55,281				(12.1)	%		0.5	%				226,335				211,427				7.1	%
	Investment securities gains, net			—				2				3,005				46				—				(100.0)	%		N/M					3,053				4,733				(35.5)	%
	Total Non-Interest Income			55,574				63,248				55,922				54,644				55,281				(12.1)	%		0.5	%				229,388				216,160				6.1	%
Non-Interest Expense:
	Salaries and employee benefits			83,929				79,227				81,012				80,228				76,975				5.9	%		9.0	%				324,395				311,934				4.0	%
	Net occupancy			13,161				13,221				13,144				13,486				13,080				(0.5)	%		0.6	%				53,013				52,826				0.4	%
	Data processing and software			11,951				12,285				12,193				11,645				11,468				(2.7)	%		4.2	%				48,073				44,679				7.6	%
	Other outside services			8,334				7,617				7,600				7,881				8,215				9.4	%		1.4	%				31,432				39,989				(21.4)	%
	Equipment			3,563				3,711				3,193				3,418				3,475				(4.0)	%		2.5	%				13,885				13,575				2.3	%
	Professional fees			2,424				2,879				3,331				4,202				2,873				(15.8)	%		(15.6)	%				12,835				13,134				(2.3)	%
	Marketing			1,098				1,147				1,303				1,579				1,503				(4.3)	%		(27.0)	%				5,127				9,848				(47.9)	%
	Amortization of tax credit investments			1,532				1,694				1,450				1,450				1,505				(9.6)	%		1.8	%				6,126				6,021				1.7	%
	FDIC insurance			2,346				1,578				2,133				2,808				2,177				48.7	%		7.8	%				8,865				7,780				13.9	%
	Intangible amortization			132				132				132				132				142				0.2	%		(6.8)	%				529				1,427				(63.0)	%
	Prepayment penalty on FHLB advances			—				—				2,878				—				—				N/M			N/M					2,878				4,326				(33.5)	%
	Other			26,268				15,654				14,637				15,723				17,561				67.8	%		49.6	%				72,282				62,197				16.2	%
	Total Non-Interest Expense			154,737				139,145				143,006				142,552				138,974				11.2	%		11.3	%				579,440				567,736				2.1	%
	Income Before Income Taxes			56,187				71,139				46,100				28,808				55,047				(21.0)	%		2.1	%				202,235				263,988				(23.4)	%
	Income tax expense			5,362				9,529				6,542				2,761				7,258				(43.7)	%		(26.1)	%				24,194				37,649				(35.7)	%
	Net Income			50,825				61,610				39,558				26,047				47,789				(17.5)	%		6.4	%				178,040				226,339				(21.3)	%
	Preferred stock dividends			(2,135)				—				—				—				—				N/M			N/M					(2,135)				—				N/M
	Net Income Available to Common Shareholders			$	48,690			$	61,610			$	39,558			$	26,047			$	47,789			(21.0)	%		1.9	%				$	175,905			$	226,339			(22.3)	%
PER SHARE:
	Net income:
	Basic			$	0.30			$	0.38			$	0.24			$	0.16			$	0.29			(21.1)	%		3.4	%				$	1.08			$	1.36			(20.6)	%
	Diluted			0.30				0.38				0.24				0.16				0.29				(21.1)	%		3.4	%				1.08				1.35				(20.0)	%
	Cash dividends			0.17				0.13				0.13				0.13				0.17				30.8	%		—	%				$	0.56			$	0.56			—	%
	Weighted average shares (basic)			162,242				162,061				161,715				163,475				164,135				0.1	%		(1.2)	%				162,372				166,902				(2.7)	%
	Weighted average shares (diluted)			163,071				162,579				162,267				164,417				165,039				0.3	%		(1.2)	%				163,090				167,792				(2.8)	%

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Three months ended
		December 31, 2020											September 30, 2020											December 31, 2019
		Average				Interest				Yield/			Average				Interest				Yield/			Average				Interest				Yield/
		Balance				(1)				Rate			Balance				(1)				Rate			Balance				(1)				Rate
ASSETS
Interest-earning assets:
	Loans, net of unearned income	$	18,994,514			$	164,329			3.45	%		$	18,880,519			$	160,344			3.38	%		$	16,768,057			$	182,024			4.31	%
	Taxable investment securities	2,233,730				13,559				2.43	%		2,011,893				13,150				2.61	%		2,198,252					15,621			2.84	%
	Tax-exempt investment securities	886,329				7,044				3.17	%		861,764				6,899				3.19	%		594,487					5,058			3.38	%
	Total Investment Securities	3,120,059				20,603				2.64	%		2,873,657				20,048				2.79	%		2,792,739					20,679			2.96	%
	Loans held for sale	76,871				521				2.71	%		79,999				728				3.64	%		30,062					295			3.93	%
	Other interest-earning assets	1,668,454				1,179				0.28	%		1,387,327				1,028				0.30	%		492,560					2,370			1.92	%
	Total Interest-earning Assets	23,859,898				186,632				3.12	%		23,221,502				182,149				3.13	%		20,083,418					205,368			4.07	%
Noninterest-earning assets:
	Cash and due from banks	126,190											138,567											128,417
	Premises and equipment	236,265											239,183											239,294
	Other assets	1,799,381											1,835,190											1,528,758
	Less: ACL - loans(2)	(272,329)											(264,934)											(167,449)
	Total Assets	$	25,749,405										$	25,169,508										$	21,812,438
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits	$	5,762,150			$	1,457			0.10	%		$	5,591,548			$	1,913			0.14	%		$	4,699,040			$	8,494			0.72	%
	Savings deposits	5,905,137				1,866				0.13	%		5,716,050				2,347				0.16	%		5,205,260					10,253			0.78	%
	Brokered deposits	340,451				451				0.53	%		314,721				440				0.56	%		261,689					1,279			1.94	%
	Time deposits	2,306,556				8,082				1.39	%		2,495,445				9,931				1.58	%		2,959,008					13,775			1.86	%
	Total Interest-bearing Deposits	14,314,294				11,856				0.33	%		14,117,764				14,631				0.41	%		13,124,997					33,801			1.02	%
	Short-term borrowings	622,623				268				0.17	%		613,127				370				0.24	%		717,811					2,343			1.29	%
	FHLB advances and long-term debt	1,296,139				9,930				3.06	%		1,295,515				10,042				3.10	%		875,802					6,745			3.07	%
	Total Interest-bearing Liabilities	16,233,056				22,054				0.54	%		16,026,406				25,043				0.62	%		14,718,610					42,889			1.16	%
Noninterest-bearing liabilities:
	Demand deposits	6,477,228											6,270,683											4,324,568
	Total Deposits/Cost of Deposits	20,791,522								0.23	%		20,388,447								0.29	%		17,449,565								0.77	%
	Other	494,255											498,328											427,863
	Total Liabilities	23,204,539											$	22,795,417										19,471,041
	Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")	22,710,284								0.39	%		22,297,089								0.45	%		19,043,178								0.89	%
	Shareholders' equity	2,544,866											2,374,091											2,341,397
	Total Liabilities and Shareholders' Equity	$	25,749,405										$	25,169,508										$	21,812,438
	Net interest income/net interest margin (fully taxable equivalent)					164,578				2.75	%						157,106				2.70	%							162,479			3.22	%
	Tax equivalent adjustment					(2,987)											(2,990)												(3,209)
	Net interest income					$	161,591										$	154,116										$	159,270
	(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
	(2) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):
dollars in thousands
			Three months ended																				% Change from
			Dec 31				Sep 30				Jun 30				Mar 31				Dec 31				Sep 30			Dec 31
			2020				2020				2020				2020				2019				2020			2019
Loans, by type:
	Real estate - commercial mortgage		$	7,101,363			$	6,986,528			$	6,875,872			$	6,746,766			$	6,561,029			1.6	%		8.2	%
	Commercial and industrial		4,024,879				4,030,750				4,451,228				4,446,750				4,574,047				(0.1)	%		(12.0)	%
	Real estate - residential mortgage		3,087,529				2,975,516				2,769,682				2,670,019				2,606,136				3.8	%		18.5	%
	Real estate - home equity		1,212,113				1,237,602				1,271,190				1,300,132				1,331,088				(2.1)	%		(8.9)	%
	Real estate - construction		1,009,284				981,589				941,079				929,529				934,556				2.8	%		8.0	%
	Consumer		468,678				464,851				465,728				466,415				464,606				0.8	%		0.9	%
	Equipment lease financing		279,059				279,217				284,658				284,566				281,451				(0.1)	%		(0.8)	%
	Other(1)		(18,817)				(28,656)				13,443				15,890				14,058				(34.3)	%		N/M
	Loans, net of unearned income before PPP		17,164,088				16,927,397				17,072,880				16,860,067				16,766,971				1.4	%		2.4	%
	PPP		1,830,426				1,953,122				1,258,917				—				—				(6.3)	%		N/M
	Total Loans, net of unearned income		$	18,994,514			$	18,880,519			$	18,331,797			$	16,860,067			$	16,766,971			0.6	%		13.3	%
Deposits, by type:
	Noninterest-bearing demand		$	6,477,228			$	6,270,683			$	5,789,788			$	4,307,027			$	4,324,568			3.3	%		49.8	%
	Interest-bearing demand		5,762,150				5,591,548				5,103,419				4,649,905				4,699,040				3.1	%		22.6	%
	Savings		5,905,137				5,716,050				5,446,368				5,127,662				5,205,260				3.3	%		13.4	%
	Total demand and savings		18,144,515				17,578,281				16,339,575				14,084,594				14,228,868				3.2	%		27.5	%
	Brokered		340,451				314,721				312,121				275,359				261,689				8.2	%		30.1	%
	Time		2,306,556				2,495,445				2,624,962				2,761,474				2,959,008				(7.6)	%		(22.0)	%
	Total Deposits		$	20,791,522			$	20,388,447			$	19,276,658			$	17,121,427			$	17,449,565			2.0	%		19.2	%
Short-term borrowings, by type:
	Customer funding		$	622,623			$	613,127			$	546,716			$	428,240			$	377,529			1.5	%		64.9	%
	Federal funds purchased		—				—				74,231				186,868				91,467				N/M			(100.0)	%
	Short-term FHLB advances and other borrowings		—				—				86,824				687,937				248,815				N/M			(100.0)	%
	Total Short-term borrowings		$	622,623			$	613,127			$	707,771			$	1,303,045			$	717,811			1.5	%		(13.3)	%
(1) Consists of overdrafts and net origination fees and costs.

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
			Year ended December 31
			2020											2019
			Average				Interest				Yield/			Average				Interest				Yield/
			Balance				(1)				Rate			Balance				(1)				Rate
ASSETS
Interest-earning assets:
	Loans, net of unearned income		$	18,270,390			$	662,785			3.63	%		$	16,430,347			$	747,119			4.55	%
	Taxable investment securities		2,182,410				58,173				2.66	%		2,278,448				62,556				2.74	%
	Tax-exempt investment securities		825,057				26,641				3.22	%		500,398				17,998				3.57	%
	Total Investment Securities		3,007,467				84,814				2.82	%		2,778,846				80,554				2.89	%
	Loans held for sale		60,015				2,077				3.46	%		25,795				1,351				5.24	%
	Other interest-earning assets		1,120,727				5,504				0.49	%		445,008				9,249				2.08	%
	Total Interest-earning Assets		22,458,599				755,181				3.36	%		19,679,996				838,273				4.26	%
Noninterest-earning assets:
	Cash and due from banks		139,146											119,144
	Premises and equipment		238,864											239,376
	Other assets		1,746,956											1,385,689
	Less: ACL - loans(2)		(249,848)											(166,165)
	Total Assets		$	24,333,717										$	21,258,040
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits		$	5,278,941			$	11,390			0.22	%		$	4,384,059			$	33,348			0.76	%
	Savings deposits		5,550,234				14,654				0.26	%		5,018,381				41,823				0.83	%
	Brokered deposits		310,763				2,387				0.77	%		245,501				5,779				2.35	%
	Time deposits		2,546,305				41,615				1.63	%		2,869,326				50,825				1.77	%
	Total Interest-bearing Deposits		13,686,243				70,045				0.51	%		12,517,267				131,775				1.05	%
	Short-term borrowings		810,583				5,227				0.64	%		849,679				14,543				1.70	%
	FHLB advances and long-term debt		1,254,300				38,398				3.06	%		942,600				30,599				3.25	%
	Total Interest-bearing Liabilities		15,751,126				113,671				0.72	%		14,309,546				176,917				1.24	%
Noninterest-bearing liabilities:
	Demand deposits		5,714,803											4,249,294
	Total Deposits/Cost of Deposits		19,401,046								0.36	%		16,766,561								0.79	%
	Other		476,139											393,130
	Total Liabilities		21,942,068											18,951,970
	Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")		21,465,929								0.53	%		18,558,840								0.95	%
	Shareholders' equity		2,391,649											2,306,070
	Total Liabilities and Shareholders' Equity		$	24,333,717										$	21,258,040
	Net interest income/net interest margin (fully taxable equivalent)						641,510				2.86	%						661,356				3.36	%
	Tax equivalent adjustment						(12,303)											(12,967)
	Net interest income						$	629,207										$	648,389
	(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
	(2) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):
dollars in thousands
			Year ended December 31
			2020				2019				% Change
Loans, by type:
	Real estate - commercial mortgage		$	6,928,269			$	6,463,783			7.2	%
	Commercial and industrial		4,237,252				4,473,549				(5.3)	%
	Real estate - residential mortgage		2,876,538				2,441,684				17.8	%
	Real estate - home equity		1,255,094				1,382,908				(9.2)	%
	Real estate - construction		965,534				928,183				4.0	%
	Consumer		466,419				448,205				4.1	%
	Equipment lease financing		281,859				279,489				0.8	%
	Other(1)		(4,640)				12,546				N/M
	Loans, net of unearned income before PPP		17,006,325				16,430,347				3.5	%
	PPP		1,264,065				—				N/M
	Total Loans, net of unearned income		$	18,270,390			$	16,430,347			11.2	%
Deposits, by type:
	Noninterest-bearing demand		$	5,714,803			$	4,249,294			34.5	%
	Interest-bearing demand		5,278,941				4,384,059				20.4	%
	Savings		5,550,234				5,018,381				10.6	%
	Total demand and savings		16,543,978				13,651,734				21.2	%
	Brokered		310,763				245,501				26.6	%
	Time		2,546,305				2,869,326				(11.3)	%
	Total Deposits		$	19,401,046			$	16,766,561			15.7	%
Short-term borrowings, by type:
	Customer funding		$	553,033			$	355,983			55.4	%
	Federal funds purchased		64,918				132,578				(51.0)	%
	Short-term FHLB advances and other borrowings		192,632				361,118				(46.7)	%
	Total Short-term Borrowings		$	810,583			$	849,679			(4.6)	%
(1) Consists of overdrafts and net origination fees and costs.

FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
		Three months ended																				Year ended
		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31				Dec 31				Dec 31
		2020				2020				2020				2020				2019				2020				2019
Allowance for credit losses related to Loans, net of unearned income:
Balance at beginning of period		$	266,825			$	256,537			$	238,508			$	163,620			$	166,135			$	163,622			$	160,537
	Impact of adopting CECL	—				—				—				45,724				—				45,724				—
	Loans charged off:
	Commercial and industrial	(1,567)				(2,969)				(3,480)				(10,899)				(30,547)				(18,915)				(42,410)
	Real estate - commercial mortgage	(300)				(746)				(2,324)				(855)				(68)				(4,225)				(1,837)
	Consumer and home equity	(668)				(1,093)				(1,303)				(1,529)				(1,416)				(4,593)				(4,694)
	Real estate - residential mortgage	—				(198)				(235)				(187)				(223)				(620)				(1,545)
	Real estate - construction	—				—				(17)				—				—				(17)				(143)
	Equipment lease financing and other	(483)				(483)				(688)				(533)				(727)				(2,187)				(2,560)
	Total loans charged off	(3,018)				(5,489)				(8,047)				(14,003)				(32,981)				(30,557)				(53,189)
Recoveries of loans previously charged off:
	Commercial and industrial	4,581				2,103				2,978				1,734				2,487				11,396				8,721
	Real estate - commercial mortgage	588				100				95				244				1,453				1,027				2,202
	Consumer and home equity	594				491				649				646				437				2,380				1,994
	Real estate - residential mortgage	199				95				112				85				206				491				989
	Real estate - construction	179				4,873				—				70				1,098				5,122				2,591
	Equipment lease financing and other	219				185				92				108				182				604				666
	Recoveries of loans previously charged off	6,360				7,847				3,926				2,887				5,863				21,020				17,163
Net loans recovered (charged off)		3,342				2,358				(4,121)				(11,116)				(27,118)				(9,537)				(36,026)
Provision for credit losses		7,400				7,930				22,150				40,280				24,603				77,760				39,111
Balance at end of period		$	277,567			$	266,825			$	256,537			$	238,508			$	163,620			$	277,569			$	163,622
Net (recoveries) charge-offs to average loans (annualized)		(0.07)		%		(0.05)		%		0.09		%		0.26		%		0.65		%		0.05		%		0.22		%
Allowance credit losses related to OBS Credit Exposures(1)
	Balance at beginning of period	$	15,533			$	16,383			$	18,963			$	2,588			$	6,662
	Impact of adopting CECL	—				—				—				12,625				—
	Provision for credit losses	(1,160)				(850)				(2,580)				3,750				(4,074)
	Balance at end of period	$	14,373			$	15,533			$	16,383			$	18,963			$	2,588
NON-PERFORMING ASSETS:
	Non-accrual loans	$	137,198			$	128,321			$	125,037			$	120,345			$	125,098
	Loans 90 days past due and accruing	9,929				13,761				14,767				19,593				16,057
	Total non-performing loans	147,127				142,082				139,804				139,938				141,155
	Other real estate owned	4,178				4,565				5,418				6,593				6,831
	Total non-performing assets	$	151,305			$	146,647			$	145,222			$	146,531			$	147,986
NON-PERFORMING LOANS, BY TYPE:
	Commercial and industrial	$	32,610			$	37,224			$	39,730			$	41,318			$	49,491
	Real estate - commercial mortgage	52,647				43,426				42,374				36,538				37,279
	Real estate - residential mortgage	30,793				28,287				22,887				25,832				22,411
	Consumer and home equity	13,090				12,292				11,911				11,226				11,026
	Real estate - construction	1,550				4,051				4,525				4,379				4,306
	Equipment lease financing and other	16,437				16,802				18,377				20,645				16,642
	Total non-performing loans	$	147,127			$	142,082			$	139,804			$	139,938			$	141,155
(1) The allowance for credit losses related to OBS Credit Exposures is presented in "other liabilities" on the consolidated balance sheets.

FULTON FINANCIAL CORPORATION

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

in thousands, except per share data and percentages

Explanatory note:

This press release contains supplemental financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:

							Three months ended
							Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
							2020				2020				2020				2020				2019
Common shareholders' equity (tangible), per share
Shareholders' equity							$	2,616,828			$	2,390,261			$	2,340,501			$	2,285,748			$	2,342,176
Less: Preferred stock							(192,878)				—				—				—				—
Less: Goodwill and intangible assets							(536,659)				(534,907)				(535,039)				(535,171)				(535,303)
Tangible common shareholders' equity (numerator)							$	1,887,291			$	1,855,354			$	1,805,462			$	1,750,577			$	1,806,873
Shares outstanding, end of period (denominator)							162,350				162,134				161,958				161,435				164,218
Common shareholders' equity (tangible), per share							$	11.62			$	11.44			$	11.15			$	10.84			$	11.00
Return on average common shareholders' equity (tangible)
Net income available to common shareholders							$	48,690			$	61,610			$	39,558			$	26,047			$	47,789
Plus: Intangible amortization, net of tax							104				103				104				104				112
(Numerator)							$	48,794			$	61,713			$	39,662			$	26,151			$	47,901
Average shareholders' equity							$	2,544,866			$	2,374,091			$	2,309,133			$	2,337,016			$	2,341,397
Less: Average preferred stock							(127,639)				—				—				—				—
Less: Average goodwill and intangible assets							(535,474)				(534,971)				(535,103)				(535,235)				(534,190)
Average tangible common shareholders' equity (denominator)							$	1,881,753			$	1,839,120			$	1,774,030			$	1,801,781			$	1,807,207
Return on average common shareholders' equity (tangible), annualized							10.32		%		13.50		%		8.99		%		5.84		%		10.52		%
Tangible common equity to tangible assets (TCE Ratio)
Shareholders' equity							$	2,616,828			$	2,390,261			$	2,340,501			$	2,285,748			$	2,342,176
Less: Preferred stock							(192,878)				—				—				—				—
Less: Goodwill and intangible assets							(536,659)				(534,907)				(535,039)				(535,171)				(535,303)
Tangible common shareholders' equity (numerator)							$	1,887,291			$	1,855,354			$	1,805,462			$	1,750,577			$	1,806,873
Total assets							$	25,906,733			$	25,543,281			$	24,617,863			$	22,929,859			$	21,886,040
Less: Goodwill and intangible assets							(536,659)				(534,907)				(535,039)				(535,171)				(535,303)
Total tangible assets (denominator)							$	25,370,074			$	25,008,374			$	24,082,824			$	22,394,688			$	21,350,737
Tangible common equity to tangible assets							7.44		%		7.42		%		7.50		%		7.82		%		8.46		%
Efficiency ratio
Non-interest expense							$	154,737			$	139,145			$	143,006			$	142,552			$	138,974
Less: Amortization of tax credit investments							(1,532)				(1,694)				(1,450)				(1,450)				(1,505)
Less: Intangible amortization							(132)				(132)				(132)				(132)				(142)
Less: Prepayment penalty on FHLB advances							—				—				(2,878)				—				—
Non-interest expense (numerator)							$	153,073			$	137,319			$	138,546			$	140,970			$	137,327
Net interest income (fully taxable equivalent)							$	164,578			$	157,106			$	155,854			$	163,970			$	162,479
Plus: Total Non-interest income							55,574				63,248				55,922				54,644				55,281
Less: Investment securities gains, net							—				(2)				(3,005)				(46)				—
Total revenue (denominator)							$	220,151			$	220,353			$	208,771			$	218,568			$	217,760
Efficiency ratio							69.5		%		62.3		%		66.4		%		64.5		%		63.1		%
							Three months ended
							Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
							2020				2020				2020				2020				2019
Efficiency ratio, net 2020 cost savings initiatives
Non-interest expense							$	154,737			$	139,145			$	143,006			$	142,552			$	138,974
Less: Amortization of tax credit investments							(1,532)				(1,694)				(1,450)				(1,450)				(1,505)
Less: Intangible amortization							(132)				(132)				(132)				(132)				(142)
Less: 2020 cost savings initiatives							(15,400)				(800)				—				—				—
Less: Prepayment penalty on FHLB advances							—				—				(2,878)				—				—
Non-interest expense (numerator)							$	137,673			$	136,519			$	138,546			$	140,970			$	137,327
Net interest income (fully taxable equivalent)							$	164,578			$	157,106			$	155,854			$	163,970			$	162,479
Plus: Total Non-interest income							55,574				63,248				55,922				54,644				55,281
Less: Investment securities gains, net							—				(2)				(3,005)				(46)				—
Total revenue (denominator)							$	220,151			$	220,353			$	208,771			$	218,568			$	217,760
Efficiency ratio, net 2020 cost savings initiatives							62.5		%		62.0		%		66.4		%		64.5		%		63.1		%
Non-performing assets to common shareholders' equity (tangible) and ACL - loans(1)
Non-performing assets (numerator)							$	151,305			$	146,647			$	145,222			$	146,531			$	147,986
Tangible common shareholders' equity							$	1,887,291			$	1,855,354			$	1,805,462			$	1,750,577			$	1,806,873
Plus: ACL - loans							277,567				266,825				256,537				238,508				163,622
Tangible common shareholders' equity and ACL - loans (denominator)							$	2,164,858			$	2,122,179			$	2,061,999			$	1,989,085			$	1,970,495
Non-performing assets to tangible common shareholders' equity and ACL - loans							6.99		%		6.91		%		7.04		%		7.37		%		7.51		%
Asset Quality, excluding PPP
Net loans recovered (charged-off) (numerator)							$	3,342			$	2,358			$	(4,121)			$	(11,116)			$	(27,118)
Average loans, net of unearned income							$	18,994,514			$	18,880,519			$	18,331,797			$	16,860,067			$	16,766,971
Less: Average PPP loans							(1,830,426)				(1,953,122)				(1,258,917)				—				—
Total adjusted average loans (denominator)							$	17,164,088			$	16,927,397			$	17,072,880			$	16,860,067			$	16,766,971
Net (recoveries) charge-offs to adjusted average loans (annualized)							(0.08)		%		(0.06)		%		0.10		%		0.26		%		0.65		%
Non-performing loans (numerator)							$	147,127			$	142,082			$	139,804			$	139,938			$	141,155
Loans, net of unearned income							$	18,900,820			$	19,028,621			$	18,704,722			$	17,077,403			$	16,837,526
Less: PPP loans							(1,581,712)				(1,960,165)				(1,937,034)				—				—
Total adjusted loans (denominator)							$	17,319,108			$	17,068,456			$	16,767,688			$	17,077,403			$	16,837,526
Non-performing loans to adjusted total loans							0.85		%		0.83		%		0.83		%		0.82		%		0.84		%
ACL - loans (numerator)							$	277,567			$	266,825			256,537				238,508				$	163,622
Loans, net of unearned income							$	18,900,820			$	19,028,621			$	18,704,722			$	17,077,403			$	16,837,526
Less: PPP loans							(1,581,712)				(1,960,165)				(1,937,034)				—				—
Total adjusted loans (denominator)							$	17,319,108			$	17,068,456			$	16,767,688			$	17,077,403			$	16,837,526
ACL - loans to adjusted total loans							1.60		%		1.56		%		1.53		%		1.40		%		0.97		%
Note: numbers may not sum due to rounding.
(1) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.

 

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