Fulton Financial Corporation Announces First Quarter 2024 Results

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

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

Net Interest Income and Balance Sheet

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

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

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

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

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

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

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

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

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

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

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

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

Asset Quality

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

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

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

Non-interest Income

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

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

Non-interest Expense

Non-interest expense was $177.6 million in the first quarter of 2024, a decrease of $3.0 million, or 1.6%, compared to $180.6 million in the fourth quarter of 2023. The decrease was primarily due to a $5.0 million decrease in FDIC insurance expense, which included special assessment charges of $1.0 million in the first quarter of 2024 and $6.5 million in the fourth quarter of 2023, assessed to recover the loss to the Deposit Insurance Fund in connection with the closures of certain banks in 2023. The decrease was partially offset by an increase in FultonFirst implementation costs and loss on asset disposals of $3.1 million. The FultonFirst implementation costs and loss on asset disposals of $6.3 million in the first quarter of 2024 included a $3.6 million loss on disposal of assets, reflected in other non-interest expense, $2.5 million of consulting service expense, included in other outside services, and $0.2 million of severance expense, reflected in salaries and employee benefits expense. The FultonFirst implementation costs and loss on asset disposals of $3.2 million in the fourth quarter of 2023 included $2.6 million of consulting services, reflected in other outside services, and $0.6 million of severance expense, included in salaries and employee benefits expense.

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

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

Income Tax Expense

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

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

Safe Harbor Statement

This press release may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," “projects,” the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results.

Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, the statements are based on current beliefs, expectations and assumptions regarding the future of the Corporation’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation’s control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2023 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov).

Non-GAAP Financial Measures

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

FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
(dollars in thousands, except per share and shares data)
	Three months ended
	Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
		2024				2023				2023				2023				2023
Ending Balances
Investment securities	$	3,783,392			$	3,666,274			$	3,698,601			$	3,867,334			$	3,950,101
Net loans		21,444,483				21,351,094				21,177,508				21,044,685				20,670,188
Total assets		27,642,957				27,571,915				27,375,177				27,403,163				27,112,176
Deposits		21,741,950				21,537,623				21,421,589				21,206,540				21,316,584
Shareholders' equity		2,757,679				2,760,139				2,566,693				2,642,152				2,618,998
Average Balances
Investment securities		3,672,844				3,665,261				3,834,824				3,916,130				3,964,615
Net loans		21,370,033				21,255,779				21,121,277				20,866,235				20,463,096
Total assets		27,427,626				27,397,671				27,377,836				27,235,567				26,900,653
Deposits		21,378,754				21,476,548				21,357,295				21,207,143				20,574,323
Shareholders' equity		2,766,945				2,618,024				2,645,977				2,647,464				2,613,316
Income Statement
Net interest income		206,937				212,006				213,842				212,852				215,587
Provision for credit losses		10,925				9,808				9,937				9,747				24,544
Non-interest income		57,140				59,378				55,961				60,585				51,753
Non-interest expense		177,600				180,552				171,020				168,018				159,616
Income before taxes		75,552				81,024				88,846				95,672				83,180
Net income available to common shareholders		59,379				61,701				69,535				77,045				65,752
Pre-provision net revenue(1)		94,184				100,050				102,342				106,495				108,375
Per Share
Net income available to common shareholders (basic)	$	0.36			$	0.38			$	0.42			$	0.46			$	0.39
Net income available to common shareholders (diluted)	$	0.36			$	0.37			$	0.42			$	0.46			$	0.39
Operating net income available to common shareholders(1)	$	0.40			$	0.42			$	0.43			$	0.47			$	0.39
Cash dividends	$	0.17			$	0.17			$	0.16			$	0.16			$	0.15
Common shareholders' equity	$	15.82			$	15.67			$	14.47			$	14.75			$	14.67
Common shareholders' equity (tangible)(1)	$	12.37			$	12.25			$	11.05			$	11.36			$	11.26
Weighted average shares (basic)		162,706				163,975				164,566				165,854				166,605
Weighted average shares (diluted)		164,520				165,650				166,023				167,191				168,401
(1) Non-GAAP financial measure. Refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this press release.
	Three months ended
	Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
		2024				2023				2023				2023				2023
Asset Quality
Net charge-offs to average loans		0.16	%			0.15	%			0.10	%			0.04	%			0.27	%
Non-performing loans to total net loans		0.73	%			0.72	%			0.67	%			0.70	%			0.80	%
Non-performing assets to total assets		0.57	%			0.56	%			0.52	%			0.55	%			0.62	%
ACL - loans(1) to total loans		1.39	%			1.37	%			1.38	%			1.37	%			1.35	%
ACL - loans(1) to non-performing loans		191	%			191	%			208	%			195	%			169	%
Profitability
Return on average assets		0.91	%			0.93	%			1.04	%			1.17	%			1.03	%
Operating return on average assets(2)		1.00	%			1.03	%			1.08	%			1.18	%			1.04	%
Return on average common shareholders' equity		9.28	%			10.09	%			11.25	%			12.59	%			11.02	%
Operating return on average common shareholders' equity (tangible)(2)		13.08	%			14.68	%			15.17	%			16.52	%			14.46	%
Net interest margin		3.32	%			3.36	%			3.40	%			3.40	%			3.53	%
Efficiency ratio(2)		63.2	%			62.0	%			61.5	%			60.1	%			58.5	%
Non-interest expense to total average assets		2.60	%			2.61	%			2.48	%			2.47	%			2.41	%
Operating non-interest expense to total average assets(2)		2.49	%			2.47	%			2.47	%			2.46	%			2.40	%
Capital Ratios(3)
Tangible common equity ratio ("TCE")(2)		7.4	%			7.4	%			6.8	%			7.0	%			7.0	%
Tier 1 leverage ratio		9.4	%			9.5	%			9.4	%			9.3	%			9.2	%
Common equity Tier 1 capital ratio		10.2	%			10.3	%			10.3	%			10.1	%			9.8	%
Tier 1 risk-based capital ratio		11.0	%			11.2	%			11.1	%			11.0	%			10.6	%
Total risk-based capital ratio		13.9	%			14.0	%			14.0	%			13.8	%			13.4	%
(1) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet ("OBS") credit exposures.
(2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release.
(3) Regulatory capital ratios as of March 31, 2024 are preliminary estimates and prior periods are actual.

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
	Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
		2024				2023				2023				2023				2023
ASSETS
Cash and due from banks	$	247,581			$	300,343			$	304,042			$	123,779			$	129,003
Other interest-earning assets		231,389				373,772				222,781				505,141				545,355
Loans held for sale		10,624				15,158				20,368				14,673				6,507
Investment securities		3,783,392				3,666,274				3,698,601				3,867,334				3,950,101
Net loans		21,444,483				21,351,094				21,177,508				21,044,685				20,670,188
Less: ACL - loans(1)		(297,888	)			(293,404	)			(292,739	)			(287,442	)			(278,695	)
Loans, net		21,146,595				21,057,690				20,884,769				20,757,243				20,391,493
Net premises and equipment		213,541				222,881				215,626				216,322				216,059
Accrued interest receivable		107,089				107,972				101,624				96,991				90,267
Goodwill and intangible assets		560,114				560,687				561,284				561,885				563,502
Other assets		1,342,632				1,267,138				1,366,082				1,259,795				1,219,889
Total Assets	$	27,642,957			$	27,571,915			$	27,375,177			$	27,403,163			$	27,112,176
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits	$	21,741,950			$	21,537,623			$	21,421,589			$	21,206,540			$	21,316,584
Borrowings		2,296,040				2,487,526				2,370,112				2,719,114				2,446,770
Other liabilities		847,288				786,627				1,016,783				835,357				729,824
Total Liabilities		24,885,278				24,811,776				24,808,484				24,761,011				24,493,178
Shareholders' equity		2,757,679				2,760,139				2,566,693				2,642,152				2,618,998
Total Liabilities and Shareholders' Equity	$	27,642,957			$	27,571,915			$	27,375,177			$	27,403,163			$	27,112,176
LOANS, DEPOSITS AND BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage	$	8,252,117			$	8,127,728			$	8,106,300			$	7,846,861			$	7,746,920
Commercial and industrial		4,467,589				4,545,552				4,577,334				4,599,759				4,596,096
Real estate - residential mortgage		5,395,720				5,325,923				5,279,681				5,147,262				4,880,919
Real estate - home equity		1,040,335				1,047,184				1,045,438				1,061,891				1,074,712
Real estate - construction		1,249,199				1,239,075				1,078,263				1,308,564				1,326,754
Consumer		698,421				729,318				743,976				763,530				730,775
Leases and other loans(2)		341,102				336,314				346,516				316,818				314,012
Total Net Loans	$	21,444,483			$	21,351,094			$	21,177,508			$	21,044,685			$	20,670,188
Deposits, by type:
Noninterest-bearing demand	$	5,086,514			$	5,314,094			$	5,575,374			$	5,865,855			$	6,403,484
Interest-bearing demand		5,521,017				5,722,695				5,757,487				5,543,320				5,478,237
Savings		6,846,038				6,616,901				6,707,729				6,646,448				6,579,806
Total demand and savings		17,453,569				17,653,690				18,040,590				18,055,623				18,461,527
Brokered		1,152,427				1,144,692				941,059				949,259				960,919
Time		3,135,954				2,739,241				2,439,940				2,201,658				1,894,138
Total Deposits	$	21,741,950			$	21,537,623			$	21,421,589			$	21,206,540			$	21,316,584
Borrowings, by type:
Federal funds purchased	$	—			$	240,000			$	544,000			$	555,000			$	525,000
Federal Home Loan Bank advances		900,000				1,100,000				730,000				1,165,000				747,000
Senior debt and subordinated debt		535,566				535,384				540,174				539,994				539,814
Other borrowings		860,474				612,142				555,938				459,120				634,956
Total Borrowings	$	2,296,040			$	2,487,526			$	2,370,112			$	2,719,114			$	2,446,770
(1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.
(2) Includes equipment lease financing, overdraft and net origination fees and costs.

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands, except per share and share data)
		Three months ended
		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
			2024				2023				2023				2023				2023
Net Interest Income:
Interest income		$	339,666			$	338,134			$	330,371			$	314,912			$	289,820
Interest expense			132,729				126,128				116,529				102,060				74,233
Net Interest Income			206,937				212,006				213,842				212,852				215,587
Provision for credit losses			10,925				9,808				9,937				9,747				24,544
Net Interest Income after Provision			196,012				202,198				203,905				203,105				191,043
Non-Interest Income:
Wealth management			20,155				19,388				19,413				18,678				18,062
Commercial banking:
Merchant and card			6,808				7,045				7,626				7,700				6,834
Cash management			6,305				6,030				5,960				5,835				5,515
Capital markets			2,341				4,258				2,960				6,092				2,344
Other commercial banking			3,375				3,447				3,176				3,518				2,820
Total commercial banking			18,829				20,780				19,722				23,145				17,513
Consumer banking:
Card			6,628				6,739				6,770				6,592				6,243
Overdraft			2,786				2,991				2,996				2,696				2,733
Other consumer banking			2,254				2,357				2,407				2,432				2,241
Total consumer banking			11,668				12,087				12,173				11,720				11,217
Mortgage banking			3,090				2,288				3,190				2,940				1,970
Other			3,398				5,587				1,463				4,106				2,968
Non-interest income before investment securities gains (losses)			57,140				60,130				55,961				60,589				51,730
Investment securities gains (losses), net			—				(752	)			—				(4	)			23
Total Non-Interest Income			57,140				59,378				55,961				60,585				51,753
Non-Interest Expense:
Salaries and employee benefits			95,481				97,275				96,757				94,102				89,283
Data processing and software			17,661				16,985				16,914				16,776				15,796
Net occupancy			16,149				14,647				14,561				14,374				14,438
Other outside services			13,283				14,670				12,094				10,834				10,126
FDIC insurance			6,104				11,138				4,738				4,895				4,795
Equipment			4,040				3,995				3,475				3,530				3,389
Professional fees			2,088				2,302				1,869				1,829				2,392
Marketing			1,912				3,550				1,913				1,655				1,886
Intangible amortization			573				597				601				1,072				674
Other			20,309				15,393				18,098				18,951				16,837
Total Non-Interest Expense			177,600				180,552				171,020				168,018				159,616
Income Before Income Taxes			75,552				81,024				88,846				95,672				83,180
Income tax expense			13,611				16,761				16,749				16,065				14,866
Net Income			61,941				64,263				72,097				79,607				68,314
Preferred stock dividends			(2,562	)			(2,562	)			(2,562	)			(2,562	)			(2,562	)
Net Income Available to Common Shareholders		$	59,379			$	61,701			$	69,535			$	77,045			$	65,752
		Three months ended
		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
			2024				2023				2023				2023				2023
PER SHARE:
Net income available to common shareholders (basic)		$	0.36			$	0.38			$	0.42			$	0.46			$	0.39
Net income available to common shareholders (diluted)		$	0.36			$	0.37			$	0.42			$	0.46			$	0.39
Cash dividends		$	0.17			$	0.17			$	0.16			$	0.16			$	0.15
Weighted average shares (basic)			162,706				163,975				164,566				165,854				166,605
Weighted average shares (diluted)			164,520				165,650				166,023				167,191				168,401

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
(dollars in thousands)
		Three months ended
		March 31, 2024											December 31, 2023											March 31, 2023
		Average								Yield/			Average								Yield/			Average								Yield/
		Balance				Interest(1)				Rate			Balance				Interest(1)				Rate			Balance				Interest(1)				Rate
ASSETS
Interest-earning assets:
	Net loans(2)	$	21,370,033			$	313,882			5.90	%		$	21,255,779			$	311,992			5.83	%		$	20,463,096			$	263,065			5.21	%
	Investment securities(3)		3,983,753				27,048			2.71	%			4,120,750				27,227			2.64	%			4,289,643				27,522			2.60	%
	Other interest-earning assets		249,079				3,328			5.36	%			267,329				3,464			5.17	%			493,130				3,648			3.00	%
	Total Interest-Earning Assets		25,602,865				344,258			5.40	%			25,643,858				342,683			5.31	%			25,245,869				294,235			4.73	%
Noninterest-earning assets:
	Cash and due from banks		282,895											282,614											141,254
	Premises and equipment		223,375											219,994											223,025
	Other assets		1,614,746											1,545,535											1,563,806
	Less: ACL - loans(4)		(296,255	)										(294,330	)										(273,301	)
	Total Assets	$	27,427,626										$	27,397,671										$	26,900,653
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits	$	5,596,725			$	20,500			1.47	%		$	5,723,169			$	20,737			1.44	%		$	5,326,566			$	8,455			0.64	%
	Savings deposits		6,669,228				38,797			2.34	%			6,682,512				38,239			2.27	%			6,469,468				20,535			1.29	%
	Brokered deposits		1,083,382				14,655			5.44	%			1,051,369				14,078			5.31	%			439,670				5,173			4.77	%
	Time deposits		2,968,344				29,622			4.01	%			2,579,400				23,575			3.63	%			1,696,878				7,458			1.78	%
	Total Interest-Bearing Deposits		16,317,679				103,574			2.55	%			16,036,450				96,629			2.39	%			13,932,582				41,621			1.21	%
	Borrowings and other interest-bearing liabilities		2,608,376				29,155			4.46	%			2,541,727				29,499			4.58	%			3,058,684				32,613			4.32	%
	Total Interest-Bearing Liabilities		18,926,055				132,729			2.82	%			18,578,177				126,128			2.69	%			16,991,266				74,234			1.78	%
Noninterest-bearing liabilities:
	Demand deposits		5,061,075											5,440,098											6,641,741
	Other noninterest-bearing liabilities		673,551											761,372											654,330
	Total Liabilities		24,660,681											24,779,647											24,287,337
	Total Deposits		21,378,754							1.95	%			21,476,548							1.79	%			20,574,323							0.82	%
	Total interest-bearing liabilities and non-interest bearing deposits		23,987,130							2.22	%			24,018,275							2.08	%			23,633,007							1.27	%
	Shareholders' equity		2,766,945											2,618,024											2,613,316
	Total Liabilities and Shareholders' Equity	$	27,427,626										$	27,397,671										$	26,900,653
	Net interest income/net interest margin (fully taxable equivalent)						211,529			3.32	%							216,555			3.36	%							220,001			3.53	%
	Tax equivalent adjustment						(4,592	)										(4,549	)										(4,414	)
	Net Interest Income					$	206,937										$	212,006										$	215,587
	(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
	(2) Average balances include non-performing loans.
	(3) Average balances include amortized historical cost for available for sale ("AFS") securities; the related unrealized holding gains (losses) are included in other assets.
	(4) ACL - loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities.

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

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

FULTON FINANCIAL CORPORATION
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
(dollars in thousands, except per share and share data)
Explanatory note:	This press release contains supplemental financial information, as detailed below, that has been derived by methods other than GAAP. The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:
						Three months ended
						Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
							2024				2023				2023				2023				2023
Operating net income available to common shareholders
Net income available to common shareholders						$	59,379			$	61,701			$	69,535			$	77,045			$	65,752
Plus: Core deposit intangible amortization							441				441				441				912				514
Plus: Interest rate derivative transition valuation(1)							(151	)			(1,102	)			2,958				—				—
Plus: FDIC special assessment							956				6,494				—				—				—
Plus: FultonFirst implementation and asset disposals							6,329				3,197				—				—				—
Less: Tax impact of adjustments							(1,591	)			(1,896	)			(714	)			(192	)			(108	)
Operating net income available to common shareholders (numerator)						$	65,363			$	68,835			$	72,220			$	77,765			$	66,158
Weighted average shares (diluted) (denominator)							164,520				165,650				166,023				167,191				168,401
Operating net income available to common shareholders, per share (diluted)						$	0.40			$	0.42			$	0.43			$	0.47			$	0.39
Common shareholders' equity (tangible), per share
Shareholders' equity						$	2,757,679			$	2,760,139			$	2,566,693			$	2,642,152			$	2,618,998
Less: Preferred stock							(192,878	)			(192,878	)			(192,878	)			(192,878	)			(192,878	)
Less: Goodwill and intangible assets							(560,114	)			(560,687	)			(561,284	)			(561,885	)			(563,502	)
Tangible common shareholders' equity (numerator)						$	2,004,687			$	2,006,574			$	1,812,531			$	1,887,389			$	1,862,618
Shares outstanding, end of period (denominator)							162,087				163,801				164,084				166,097				165,396
Common shareholders' equity (tangible), per share						$	12.37			$	12.25			$	11.05			$	11.36			$	11.26
Operating return on average assets
Net income						$	61,941			$	64,263			$	72,097			$	79,607			$	68,314
Plus: Core deposit intangible amortization							441				441				441				912				514
Plus: Interest rate derivative transition valuation(1)							(151	)			(1,102	)			2,958				—				—
Plus: FDIC special assessment							956				6,494				—				—				—
Plus: FultonFirst implementation and asset disposals							6,329				3,197				—				—				—
Less: Tax impact of adjustments							(1,591	)			(1,896	)			(714	)			(192	)			(108	)
Operating net income (numerator)						$	67,925			$	71,397			$	74,782			$	80,327			$	68,720
Total average assets						$	27,427,626			$	27,397,671			$	27,377,836			$	27,235,567			$	26,900,653
Less: Average net core deposit intangible							(4,666	)			(5,106	)			(5,548	)			(6,417	)			(6,937	)
Total operating average assets (denominator)						$	27,422,960			$	27,392,565			$	27,372,288			$	27,229,150			$	26,893,716
Operating return on average assets							1.00	%			1.03	%			1.08	%			1.18	%			1.04	%
(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.
						Three months ended
						Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
							2024				2023				2023				2023				2023
Operating return on average common shareholders' equity (tangible)
Net income available to common shareholders						$	59,379			$	61,701			$	69,535			$	77,045			$	65,752
Plus: Intangible amortization							573				597				601				1,072				674
Plus: Interest rate derivative transition valuation(1)							(151	)			(1,102	)			2,958				—				—
Plus: FDIC special assessment							956				6,494				—				—				—
Plus: FultonFirst implementation and asset disposals							6,329				3,197				—				—				—
Less: Tax impact of adjustments							(1,618	)			(1,929	)			(747	)			(225	)			(142	)
Adjusted net income available to common shareholders (numerator)						$	65,468			$	68,958			$	72,347			$	77,892			$	66,284
Average shareholders' equity						$	2,766,945			$	2,618,024			$	2,645,977			$	2,647,464			$	2,613,316
Less: Average preferred stock							(192,878	)			(192,878	)			(192,878	)			(192,878	)			(192,878	)
Less: Average goodwill and intangible assets							(560,393	)			(560,977	)			(561,578	)			(563,146	)			(561,744	)
Average tangible common shareholders' equity (denominator)						$	2,013,674			$	1,864,169			$	1,891,521			$	1,891,440			$	1,858,694
Operating return on average common shareholders' equity (tangible)							13.08	%			14.68	%			15.17	%			16.52	%			14.46	%
Tangible common equity to tangible assets (TCE Ratio)
Shareholders' equity						$	2,757,679			$	2,760,139			$	2,566,693			$	2,642,152			$	2,618,998
Less: Preferred stock							(192,878	)			(192,878	)			(192,878	)			(192,878	)			(192,878	)
Less: Goodwill and intangible assets							(560,114	)			(560,687	)			(561,284	)			(561,885	)			(563,502	)
Tangible common shareholders' equity (numerator)						$	2,004,687			$	2,006,574			$	1,812,531			$	1,887,389			$	1,862,618
Total assets						$	27,642,957			$	27,571,915			$	27,375,177			$	27,403,163			$	27,112,176
Less: Goodwill and intangible assets							(560,114	)			(560,687	)			(561,284	)			(561,885	)			(563,502	)
Total tangible assets (denominator)						$	27,082,843			$	27,011,228			$	26,813,893			$	26,841,278			$	26,548,674
Tangible common equity to tangible assets							7.40	%			7.43	%			6.76	%			7.03	%			7.02	%
Efficiency ratio
Non-interest expense						$	177,600			$	180,552			$	171,020			$	168,018			$	159,616
Less: FDIC special assessment							(956	)			(6,494	)			—				—				—
Less: FultonFirst implementation and asset disposals							(6,329	)			(3,197	)			—				—				—
Less: Intangible amortization							(573	)			(597	)			(601	)			(1,072	)			(674	)
Less: Debt extinguishment							—				720				—				—				—
Non-interest expense (numerator)						$	169,742			$	170,984			$	170,419			$	166,946			$	158,942
Net interest income						$	206,937			$	212,006			$	213,842			$	212,852			$	215,587
Tax equivalent adjustment							4,592				4,549				4,442				4,405				4,414
Plus: Total non-interest income							57,140				59,378				55,961				60,585				51,753
Plus: Interest rate derivative transition valuation(1)							(151	)			(1,102	)			2,958				—				—
Less: Investment securities (gains) losses, net							—				752				—				4				(23	)
Total revenue (denominator)						$	268,518			$	275,583			$	277,203			$	277,846			$	271,731
Efficiency ratio							63.2	%			62.0	%			61.5	%			60.1	%			58.5	%
(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.
						Three months ended
						Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
							2024				2023				2023				2023				2023
Operating non-interest expense to total average assets
Non-interest expense						$	177,600			$	180,552			$	171,020			$	168,018			$	159,616
Less: Intangible amortization							(573	)			(597	)			(601	)			(1,072	)			(674	)
Less: FDIC special assessment							(956	)			(6,494	)			—				—				—
Less: FultonFirst implementation and asset disposals							(6,329	)			(3,197	)			—				—				—
Non-interest expense (numerator)						$	169,742			$	170,264			$	170,419			$	166,946			$	158,942
Total average assets (denominator)						$	27,427,626			$	27,397,671			$	27,377,836			$	27,235,567			$	26,900,653
Operating non-interest expenses to total average assets							2.49	%			2.47	%			2.47	%			2.46	%			2.40	%
Pre-provision net revenue
Net interest income						$	206,937			$	212,006			$	213,842			$	212,852			$	215,587
Non-interest income							57,140				59,378				55,961				60,585				51,753
Plus: Interest rate derivative transition valuation(1)							(151	)			(1,102	)			2,958				—				—
Less: Investment securities (gains) losses, net							—				752				—				4				(23	)
Total revenue						$	263,926			$	271,034			$	272,761			$	273,441			$	267,317
Non-interest expense						$	177,600			$	180,552			$	171,020			$	168,018			$	159,616
Less: Intangible amortization							(573	)			(597	)			(601	)			(1,072	)			(674	)
Less: FDIC special assessment							(956	)			(6,494	)			—				—				—
Less: FultonFirst implementation and asset disposals							(6,329	)			(3,197	)			—				—				—
Less: Debt extinguishment							—				720				—				—				—
Total non-interest expense						$	169,742			$	170,984			$	170,419			$	166,946			$	158,942
Pre-provision net revenue						$	94,184			$	100,050			$	102,342			$	106,495			$	108,375
(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.
Note: numbers in this report may not sum due to rounding.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240416112442/en/

The Fulton Financial Stock at the time of publication of the news with a fall of -2,51 % to 13,60USD on Lang & Schwarz stock exchange (16. April 2024, 22:32 Uhr).