fult-20210420
0000700564false00007005642020-04-212020-04-2100007005642021-04-202021-04-20


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

April 20, 2021
Date of Report (date of earliest event reported)

Fulton Financial Corporation
(Exact name of registrant as specified in its charter)
PA
0-10587
23-2195389
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
One Penn Square,
Lancaster,
PA
17602
               (Address of Principal Executive Offices)
(Zip Code)
(717) 291-2411
(Registrant's telephone number, including area code)

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

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

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

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

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

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

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

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



Item 2.02 Results of Operations and Financial Condition.

    On April 20, 2021, Fulton Financial Corporation (the "Corporation") issued a press release (the "Press Release") announcing its results of operations for the first quarter ended March 31, 2021. A copy of the Press Release and supplementary financial information which accompanied the Press Release, are attached as Exhibit 99.1 to this Current Report and are incorporated herein by reference. The Corporation also posted on its Investor Relations website, www.fult.com, presentation materials the Corporation intends to use during a conference call and webcast to discuss those results on Wednesday, April 21, 2021 at 10:00 a.m. Eastern Time. A copy of the presentation materials is attached as Exhibit 99.2 to this Current Report and is incorporated herein by reference.    

The information in the preceding paragraph, as well as Exhibit 99.2 referenced therein, shall not be deemed "filed" for purposes of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"). The information included in Exhibit 99.1 shall be considered "filed" for purposes of the Exchange Act and therefore may be incorporated by reference in filings under the Securities Act.

Forward-Looking Statements

This Current Report on Form 8-K, including the Exhibits hereto, may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," "projects," the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results. Management’s "2021 Outlook" contained in Exhibit 99.2 to this Current Report is comprised of forward-looking statements.

Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, 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, 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).










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

Exhibit No.Description
Press release dated April 20, 2021 containing financial information for the quarter and year ended March 31, 2021, deemed "filed" under the Securities Exchange Act of 1934.
Presentation materials to be discussed during the conference call and webcast on April 21, 2021, deemed "furnished" under the Securities Exchange Act of 1934.
104Cover page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 20, 2021
FULTON FINANCIAL CORPORATION
By: /s/ Mark R. McCollom
       Mark R. McCollom
       Senior Executive Vice President and
       Chief Financial Officer




Exhibit 99.1

FULTON FINANCIAL
CORPORATION


FOR IMMEDIATE RELEASE
Media Contact: Laura Wakeley (717) 291-2616
Investor Contact: Matt Jozwiak (717) 327-2657


Fulton Financial Announces First Quarter 2021 Results

(April 20, 2021) – Lancaster, PA – Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $70 million, or $0.43 per diluted share, for the first quarter of 2021.

"Fulton achieved solid financial performance during the first quarter, despite the continuing challenges brought about by COVID-19,” said E. Philip Wenger, Chairman and CEO of Fulton Financial Corporation. “We experienced record earnings per share, our mortgage business remained strong, our wealth management business grew to record highs, and asset quality remained stable. The balance sheet restructuring we announced in March had minimal net impact on our earnings in the first quarter, but it will meaningfully enhance our net interest income beginning in the second quarter and going forward.”

Net Interest Income and Balance Sheet

Net interest income for the first quarter of 2021 was $164 million, $3 million higher than the fourth quarter of 2020. Net interest margin for the first quarter of 2021 increased 4 basis points, to 2.79%, from 2.75% in the fourth quarter of 2020. The increases in net interest income and net interest margin in comparison to the fourth quarter of 2020 were primarily due to the forgiveness of Paycheck Protection Program ("PPP") loans and the recognition of related fee income as well as growth in average investment securities and other earning assets during the quarter.
Total average assets for the first quarter of 2021 were $26.1 billion, an increase of $333 million from the fourth quarter of 2020, driven by growth in other interest-earning assets and investment securities. Average loans, net of unearned income, were $19.0 billion, relatively unchanged compared to the fourth quarter of 2020. Average loans included loans originated under the PPP. Average PPP loans were $1.7 billion for the first quarter of 2021 compared to $1.8 billion for the fourth quarter of 2020. First quarter loan balances were impacted by the net effect of $579 million of PPP loans forgiven and $685 million of new loans originated under the third phase of the PPP in the first quarter of 2021 .












Average loans and yields, by type, for the first quarter of 2021 in comparison to the fourth quarter of 2020 are summarized in the following table:
Three months ended
March 31, 2021December 31, 2020Growth
Balance
Yield (1)
Balance
Yield (1)
$%
(dollars in thousands)
Average Loans, net of unearned income, by type:
    Real estate - commercial mortgage$7,128,997 3.15 %$7,101,363 3.21 %$27,634 0.4 %
    Commercial and industrial(2)
5,722,080 2.57 %5,855,305 2.57 %(133,225)(2.3)%
    Real estate - residential mortgage3,183,585 3.52 %3,087,529 3.65 %96,056 3.1 %
    Real estate - home equity1,175,218 3.75 %1,212,113 3.91 %(36,895)(3.0)%
    Real estate - construction1,054,718 3.09 %1,009,284 3.11 %45,434 4.5 %
    Consumer459,038 4.13 %468,678 4.07 %(9,640)(2.1)%
    Equipment lease financing266,405 4.11 %279,059 3.98 %(12,654)(4.5)%
    Other(3)(9,455)N/A(18,817)N/A9,362 (49.8)%
Total Average Loans, net of unearned income$18,980,586 3.53 %$18,994,514 3.45 %$(13,928)(0.1)%
(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 $1.7 billion and $1.8 billion for the three months ended March 31, 2021 and December 31, 2020, respectively.
(3) Consists of overdrafts and net origination fees and costs.

Total average liabilities in the first quarter of 2021 increased $241 million, to $23.4 billion, from the fourth quarter of 2020 driven by increases in demand and savings deposits, partially offset by decreases in time deposits and short-term borrowings. Average deposits and interest rates, by type, for the first quarter of 2021 in comparison to the fourth quarter of 2020 are summarized in the following table:

Three months ended
March 31, 2021December 31, 2020Growth
BalanceRateBalanceRate$%
(dollars in thousands)
Average Deposits, by type:
    Noninterest-bearing demand$6,672,832 — $6,477,228 — $195,604 3.0 %
    Interest-bearing demand5,832,174 0.08 %5,762,150 0.10 %70,024 1.2 %
    Savings6,137,084 0.10 %5,905,137 0.13 %231,947 3.9 %
Total average demand and savings18,642,090 0.06 %18,144,515 0.07 %497,575 2.7 %
    Brokered324,364 0.49 %340,451 0.53 %(16,087)(4.7)%
    Time2,150,570 1.23 %2,306,556 1.39 %(155,986)(6.8)%
Total Average Deposits$21,117,024 0.18 %$20,791,522 0.23 %$325,502 1.6 %




Asset Quality

In the first quarter of 2021 a reversal of provision of credit losses of $6 million was recognized, as compared to provisions for credit losses of $6 million, and $44 million for the fourth quarter of 2020 and first quarter of 2020, respectively. Several factors as of the end of the first quarter of 2021 in comparison to the end of the fourth quarter of 2020, including improved economic forecasts and a decrease in specific allocations within the allowance for credit losses for loans evaluated individually, reduced the level of the allowance for credit losses determined to be necessary at the end of the first quarter of 2021, resulting in the negative provision for credit losses.
The $44 million provision for credit losses in the first quarter of 2020 was driven primarily by assessment of the initial estimated impacts of the COVID-19 pandemic, as reflected in economic forecasts as of the end of the first quarter of 2020, on the level of expected credit losses.
Non-performing assets were $156 million, or 0.60% of total assets, at March 31, 2021, compared to $151 million, or 0.58% of total assets, and $147 million, or 0.64% of total assets at December 31, 2020 and March 31, 2020, respectively.
Annualized net charge-offs for the quarter ended March 31, 2021 were 0.13% of total average loans, compared to annualized net recoveries of 0.07% and annualized net charge-offs of 0.26% for the quarters ended December 31, 2020 and March 31, 2020, respectively.

Non-interest Income

Non-interest income in the first quarter of 2021, excluding investment securities gains, was $62 million, an increase of $6 million, or 11%, from the fourth quarter of 2020, primarily driven by increases of $5 million in mortgage banking income and $2 million in wealth management fees. The increase in mortgage banking income was due to a $6 million reversal of the valuation allowance for mortgage servicing assets.
Compared to the first quarter of 2020, non-interest income, excluding investment securities gains, in the first quarter of 2021 increased $7 million, or 13%, from $55 million, primarily driven by an $8 million increase in mortgage banking income, resulting from a combination of higher mortgage sales gains and a $6 million reversal of the mortgage servicing valuation allowance, both due to lower mortgage interest rates.
In the first quarter of 2021, Fulton completed a balance sheet restructuring involving gains on sales of Visa, Inc. Class B restricted shares of $34 million, which were offset in non-interest expense by corresponding debt extinguishment costs of $32 million, other securities losses of $0.4 million and a write-off of $1 million recognized in net interest income in connection with the purchase of certain of the Corporation's outstanding senior and subordinated notes and the prepayment of certain term Federal Home Loan Bank advances.

Non-interest Expense

Non-interest expense was $178 million in the first quarter of 2021, an increase of $24 million compared to the fourth quarter of 2020, which was driven by costs recognized during the first quarter of 2021 associated with the aforementioned balance sheet restructuring. In the fourth quarter of 2020, $15


million of charges, reflected in salaries and employee benefits and other expense, were recognized in connection with the cost saving initiatives announced in October 2020.
Compared to the first quarter of 2020, non-interest expense increased $36 million, or 25% in the first quarter of 2021, due primarily to costs associated with the previously mentioned balance sheet restructuring. Other increases were recognized in salaries and employee benefits and data processing and software, partially offset by lower professional fees.

Income Tax Expense

The effective income tax rate (ETR) for the first quarter of 2021 was 16%, as compared to 10% for both the fourth quarter of 2020 and first quarter of 2020. The increase was a result of higher income before income taxes.

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, 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
Mar 31Dec 31Sep 30Jun 30Mar 31
20212020202020202020
Ending Balances
Investments$3,612,010 $3,340,424 $3,097,721 $2,974,813 $3,141,440 
Loans, net of unearned income18,990,986 18,900,820 19,028,621 18,704,722 17,077,403 
Total assets25,892,990 25,906,733 25,543,281 24,617,863 22,929,859 
Deposits21,633,838 20,839,207 20,730,051 19,884,208 17,365,026 
Shareholders' equity2,629,655 2,616,828 2,390,261 2,340,501 2,285,748 
Average Balances
Investments$3,448,166 $3,221,289 $2,977,672 $3,096,632 $3,071,828 
Loans, net of unearned income18,980,586 18,994,514 18,880,519 18,331,797 16,860,067 
Total assets26,082,816 25,749,405 25,169,508 24,139,116 22,252,099 
Deposits21,117,024 20,791,522 20,388,447 19,276,658 17,121,428 
Shareholders' equity2,637,098 2,544,866 2,374,091 2,309,133 2,337,016 
Income Statement
Net interest income$164,448 $161,591 $154,116 $152,754 $160,746 
Provision for credit losses(5,500)6,240 7,080 19,570 44,030 
Non-interest income95,397 55,574 63,248 55,922 54,644 
Non-interest expense178,384 154,737 139,147 143,006 142,552 
Income before taxes86,961 56,187 71,137 46,101 28,808 
Net income available to common shareholders70,472 48,690 61,607 39,559 26,047 
Pre-provision net revenue(1)
81,795 64,092 80,043 67,125 74,374 
Per Share
Net income available to common shareholders (basic)$0.43 $0.30 $0.38 $0.24 $0.16 
Net income available to common shareholders (diluted)$0.43 $0.30 $0.38 $0.24 $0.16 
Cash dividends$0.14 $0.17 $0.13 $0.13 $0.13 
Common shareholders' equity$14.99 $14.93 $14.74 $14.45 $14.16 
Common shareholders' equity (tangible)(1)
$11.69 $11.62 $11.44 $11.15 $10.84 
Weighted average shares (basic)162,441 162,242 162,061 161,715 163,475 
Weighted average shares (diluted)163,737 163,071 162,579 162,267 164,417 
(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
Mar 31Dec 31Sep 30Jun 30Mar 31
20212020202020202020
Asset Quality
Net charge-offs (recoveries) to average loans (annualized)0.13 %(0.07)%(0.05)%0.09 %0.26 %
Non-performing loans to total loans0.80 %0.78 %0.75 %0.75 %0.82 %
Non-performing assets to total assets0.60 %0.58 %0.57 %0.59 %0.64 %
ACL - loans(2) to total loans
1.40 %1.47 %1.40 %1.37 %1.40 %
ACL - loans(2) to non-performing loans
174 %189 %188 %183 %170 %
Asset Quality, excluding PPP(1)(3)
Net charge-offs (recoveries) to average loans (annualized)0.14 %(0.08)%(0.06)%0.10 %— %
Non-performing loans to total adjusted loans0.88 %0.85 %0.83 %0.83 %— %
ACL - loans(2) to total adjusted loans
1.54 %1.60 %1.56 %1.53 %— %
Profitability
Return on average assets1.14 %0.79 %0.97 %0.66 %0.47 %
Return on average shareholders' equity11.24 %7.95 %10.32 %6.89 %4.48 %
Return on average common shareholders' equity (tangible)(1)
15.00 %10.32 %13.50 %8.99 %5.84 %
Net interest margin2.79 %2.75 %2.70 %2.81 %3.21 %
Efficiency ratio(1)
63.0 %62.5 %62.3 %66.4 %64.5 %
Capital Ratios
Tangible common equity ratio(1)
7.5 %7.4 %7.4 %7.5 %7.8 %
Tier 1 leverage ratio(4)
8.3 %8.2 %7.4 %7.6 %7.9 %
Common equity Tier 1 capital ratio(4)
9.8 %9.5 %9.5 %9.5 %9.4 %
Tier 1 capital ratio(4)
10.8 %10.5 %9.5 %9.5 %9.4 %
Total risk-based capital ratio(4)
14.2 %14.4 %13.9 %13.8 %13.8 %
(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) "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 off-balance-sheet ("OBS") credit exposures.
(3) 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.
(4) Regulatory capital ratios as of March 31, 2021 are preliminary and prior periods are actual.




FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
 % Change from
Mar 31Dec 31Sep 30Jun 30Mar 31Dec 31Mar 31
2021202020202020202020202020
ASSETS
Cash and due from banks$102,570 $120,462 $139,304 $141,702 $181,777 (14.9)%(43.6)%
Other interest-earning assets1,625,515 1,819,499 1,489,550 1,007,939 793,572 (10.7)%104.8 %
Loans held for sale34,092 83,886 93,621 77,415 40,645 (59.4)%(16.1)%
Investment securities3,612,010 3,340,424 3,097,721 2,974,813 3,141,440 8.1 %15.0 %
Net Loans18,990,986 18,900,820 19,028,621 18,704,722 17,077,403 0.5 %11.2 %
Less: ACL - loans(1)
(265,986)(277,567)(266,825)(256,537)(238,508)(4.2)%11.5 %
   Loans, net18,725,000 18,623,253 18,761,796 18,448,185 16,838,895 0.5 %11.2 %
Net, premises and equipment229,035 231,480 236,943 239,596 236,908 (1.1)%(3.3)%
Accrued interest receivable65,649 72,942 70,766 73,720 59,365 (10.0)%10.6 %
Goodwill and intangible assets536,544 536,659 534,907 535,039 535,171 — %0.3 %
Other assets962,575 1,078,128 1,118,673 1,119,454 1,102,086 (10.7)%(12.7)%
    Total Assets$25,892,990 $25,906,733 $25,543,281 $24,617,863 $22,929,859 (0.1)%12.9 %
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits$21,633,838 $20,839,207 $20,730,051 $19,884,208 $17,365,026 3.8 %24.6 %
Short-term borrowings520,989 630,066 611,727 572,551 1,386,808 (17.3)%(62.4)%
Other liabilities482,101 524,369 515,230 525,407 513,811 (8.1)%(6.2)%
FHLB advances and long-term debt626,407 1,296,263 1,296,012 1,295,196 1,378,466 (51.7)%(54.6)%
    Total Liabilities23,263,335 23,289,905 23,153,020 22,277,362 20,644,111 (0.1)%12.7 %
Shareholders' equity2,629,655 2,616,828 2,390,261 2,340,501 2,285,748 0.5 %15.0 %
    Total Liabilities and Shareholders' Equity$25,892,990 $25,906,733 $25,543,281 $24,617,863 $22,929,859 (0.1)%12.9 %
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage$7,142,137 $7,105,092 $7,046,330 $6,934,936 $6,895,069 0.5 %3.6 %
Commercial and industrial3,986,858 4,088,561 4,007,278 4,033,439 4,450,557 (2.5)%(10.4)%
Real estate - residential mortgage3,254,058 3,141,915 3,061,835 2,862,226 2,718,290 3.6 %19.7 %
Real estate - home equity1,149,958 1,202,913 1,222,709 1,251,455 1,292,677 (4.4)%(11.0)%
Real estate - construction1,083,494 1,047,218 1,007,534 972,909 947,768 3.5 %14.3 %
Consumer451,857 466,772 469,551 465,610 468,172 (3.2)%(3.5)%
Equipment lease financing260,907 279,118 280,286 281,897 289,726 (6.5)%(9.9)%
Other(2)
(26,677)(12,481)(27,067)(34,784)15,144 113.7 %N/M
     Loans, net of unearned income before PPP17,302,592 17,319,108 17,068,456 16,767,688 17,077,403 (0.1)%1.3 %
PPP1,688,394 1,581,712 1,960,165 1,937,034 — 6.7 %N/M
Total Loans, net of unearned income$18,990,986 $18,900,820 $19,028,621 $18,704,722 $17,077,403 0.5 %11.2 %
Deposits, by type:
Noninterest-bearing demand$7,046,116 $6,531,002 $6,378,077 $6,239,055 $4,531,872 7.9 %55.5 %
Interest-bearing demand5,959,909 5,818,564 5,813,935 5,099,405 4,724,520 2.4 %26.1 %
Savings6,244,513 5,929,792 5,805,431 5,667,893 5,092,865 5.3 %22.6 %
     Total demand and savings19,250,538 18,279,358 17,997,443 17,006,353 14,349,257 5.3 %34.2 %
Brokered309,873 335,185 317,588 310,689 313,337 (7.6)%(1.1)%
Time2,073,427 2,224,664 2,415,020 2,567,166 2,702,432 (6.8)%(23.3)%
Total Deposits$21,633,838 $20,839,207 $20,730,051 $19,884,208 $17,365,026 3.8 %24.6 %
Short-term borrowings, by type:
Customer funding$520,989 $630,066 $611,727 $572,551 $461,808 (17.3)%12.8 %
Federal funds purchased— — — — 200,000 N/M(100.0)%
Short-term FHLB advances— — — — 725,000 N/M(100.0)%
Total Short-term Borrowings$520,989 $630,066 $611,727 $572,551 $1,386,808 (17.3)%(62.4)%
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
Mar 31Dec 31Sep 30Jun 30Mar 31Dec 31Mar 31
2021202020202020202020202020
Interest Income:
Interest income$184,936 $183,645 $179,159 $180,696 $199,378 0.7 %(7.2)%
Interest expense20,488 22,054 25,043 27,942 38,632 (7.1)%(47.0)%
    Net Interest Income164,448 161,591 154,116 152,754 160,746 1.8 %2.3 %
Provision for credit losses(5,500)6,240 7,080 19,570 44,030 N/M(112.5)%
    Net Interest Income after Provision169,948 155,351 147,036 133,184 116,716 9.4 %45.6 %
Non-Interest Income:
Commercial banking:
   Merchant and card 5,768 5,953 6,237 5,326 5,624 (3.1)%2.6 %
   Cash management 4,921 4,737 4,742 4,503 4,742 3.9 %3.8 %
   Capital markets2,800 3,513 4,696 5,004 5,075 (20.3)%(44.8)%
   Other commercial banking 2,853 2,606 2,636 1,914 2,978 9.5 %(4.2)%
     Total commercial banking 16,342 16,809 18,311 16,748 18,419 (2.8)%(11.3)%
Consumer banking:
  Card5,878 5,123 5,002 4,966 4,685 14.7 %25.5 %
  Overdraft 2,724 3,376 3,015 2,107 4,058 (19.3)%(32.9)%
  Other consumer banking 2,152 2,298 2,406 2,065 2,496 (6.4)%(13.8)%
     Total consumer banking10,754 10,797 10,423 9,138 11,239 (0.4)%(4.3)%
Wealth management17,347 15,653 14,943 13,407 15,055 10.8 %15.2 %
Mortgage banking 13,960 9,311 16,801 9,964 6,234 49.9 %123.9 %
Other3,519 3,004 2,769 3,660 3,651 17.1 %(3.6)%
     Non-interest income before investment securities gains 61,922 55,574 63,246 52,917 54,598 11.4 %13.4 %
Investment securities gains, net33,475 — 2 3,005 46 N/MN/M
    Total Non-Interest Income95,397 55,574 63,248 55,922 54,644 71.7 %74.6 %
Non-Interest Expense:
Salaries and employee benefits82,586 83,929 79,227 81,012 80,228 (1.6)%2.9 %
Net occupancy13,982 13,161 13,221 13,144 13,486 6.2 %3.7 %
Data processing and software13,561 11,951 12,285 12,193 11,645 13.5 %16.5 %
Other outside services8,490 8,334 7,617 7,600 7,881 1.9 %7.7 %
Equipment 3,428 3,563 3,711 3,193 3,418 (3.8)%0.3 %
Professional fees2,779 2,424 2,879 3,331 4,202 14.6 %(33.9)%
FDIC insurance2,624 2,346 1,578 2,133 2,808 11.8 %(6.6)%
Amortization of tax credit investments1,531 1,532 1,694 1,450 1,450 (0.1)%5.6 %
Marketing1,002 1,098 1,147 1,303 1,579 (8.7)%(36.5)%
Intangible amortization115 132 132 132 132 (12.9)%(12.9)%
Debt extinguishment32,163 — — 2,878 — N/MN/M
Other16,123 26,268 15,654 14,637 15,723 (38.6)%2.5 %
    Total Non-Interest Expense178,384 154,737 139,145 143,006 142,552 15.3 %25.1 %
    Income Before Income Taxes86,961 56,187 71,139 46,100 28,808 54.8 %N/M
Income tax expense13,898 5,362 9,529 6,542 2,761 N/MN/M
    Net Income73,063 50,825 61,610 39,558 26,047 43.8 %N/M
Preferred stock dividends(2,591)(2,135)— — — 21.4 %N/M
     Net Income Available to Common Shareholders$70,472 $48,690 $61,610 $39,558 $26,047 44.7 %N/M
PER SHARE:
Net income:
    Basic$0.43 $0.30 $0.38 $0.24 $0.16 43.3 %N/M
    Diluted0.43 0.30 0.38 0.24 0.16 43.3 %N/M
Cash dividends0.14 0.17 0.13 0.13 0.13 (17.6)%7.7 %
Weighted average shares (basic)162,441 162,242 162,061 161,715 163,475 0.1 %(0.6)%
Weighted average shares (diluted)163,737 163,071 162,579 162,267 164,417 0.4 %(0.4)%





FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Three months ended
March 31, 2021December 31, 2020March 31, 2020
AverageInterestYield/AverageInterestYield/AverageInterestYield/
Balance(1)RateBalance(1)RateBalance(1)Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income$18,980,586 $165,462 3.53 %$18,994,514 $164,329 3.45 %$16,860,067 $177,496 4.23 %
Taxable investment securities2,438,496 13,691 2.08 %2,233,730 13,559 2.43 %2,284,457 16,294 2.85 %
Tax-exempt investment securities911,648 7,156 3.13 %886,329 7,044 3.17 %720,223 5,960 3.29 %
Total Investment Securities3,350,144 20,847 2.49 %3,120,059 20,603 2.64 %3,004,680 22,254 2.96 %
Loans held for sale53,465 471 3.53 %76,871 521 2.71 %27,178 320 4.71 %
Other interest-earning assets1,900,199 1,136 0.24 %1,668,454 1,179 0.28 %602,270 2,532 1.69 %
Total Interest-earning Assets24,284,394 187,916 3.13 %23,859,898 186,632 3.12 %20,494,195 202,602 3.97 %
Noninterest-earning assets:
Cash and due from banks120,181 126,190 138,248 
Premises and equipment230,649 236,265 239,619 
Other assets1,728,473 1,799,381 1,590,666 
Less: ACL - loans(2)
(280,881)(272,329)(210,629)
Total Assets$26,082,816 $25,749,405 $22,252,099 
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits$5,832,174 $1,160 0.08 %$5,762,150 $1,457 0.10 %$4,649,905 $5,643 0.49 %
Savings deposits6,137,084 1,526 0.10 %5,905,137 1,866 0.13 %5,127,662 7,110 0.56 %
Brokered deposits324,364 395 0.49 %340,451 451 0.53 %275,359 1,073 1.57 %
Time deposits2,150,570 6,521 1.23 %2,306,556 8,082 1.39 %2,761,474 12,614 1.84 %
Total Interest-bearing Deposits14,444,192 9,602 0.27 %14,314,294 11,856 0.33 %12,814,400 26,440 0.83 %
Short-term borrowings570,775 188 0.13 %622,623 268 0.17 %1,303,047 4,073 1.25 %
FHLB advances and long-term debt1,271,170 10,698 3.38 %1,296,139 9,930 3.06 %1,063,214 8,119 3.06 %
Total Interest-bearing Liabilities16,286,137 20,488 0.51 %16,233,056 22,054 0.54 %15,180,661 38,632 1.02 %
Noninterest-bearing liabilities:
Demand deposits6,672,832 6,477,228 4,307,027 
Total Deposits/Cost of Deposits21,117,024 0.18 %20,791,522 0.23 %17,121,427 0.62 %
Other486,749 494,255 427,395 
Total Liabilities23,445,718 23,204,539 19,915,083 
Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")22,958,969 0.36 %22,710,284 0.39 %19,487,688 0.80 %
Shareholders' equity2,637,098 2,544,866 2,337,016 
Total Liabilities and Shareholders' Equity$26,082,816 $25,749,405 $22,252,099 
Net interest income/net interest margin (fully taxable equivalent)167,428 2.79 %164,578 2.75 %$163,970 3.21 %
Tax equivalent adjustment(2,979)(2,987)$(3,224)
Net interest income$164,449 $161,591 $160,746 
(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
Mar 31Dec 31Sep 30Jun 30Mar 31Dec 31Mar 31
2021202020202020202020202020
Loans, by type:
Real estate - commercial mortgage$7,128,997 $7,101,363 $6,986,528 $6,875,872 $6,746,766 0.4 %5.7 %
Commercial and industrial4,033,367 4,024,879 4,030,750 4,451,228 4,446,750 0.2 %(9.3)%
Real estate - residential mortgage3,183,585 3,087,529 2,975,516 2,769,682 2,670,019 3.1 %19.2 %
Real estate - home equity1,175,218 1,212,113 1,237,602 1,271,190 1,300,132 (3.0)%(9.6)%
Real estate - construction1,054,718 1,009,284 981,589 941,079 929,529 4.5 %13.5 %
Consumer459,038 468,678 464,851 465,728 466,415 (2.1)%(1.6)%
Equipment lease financing266,405 279,059 279,217 284,658 284,566 (4.5)%(6.4)%
Other(1)
(9,455)(18,817)(28,656)13,443 15,890 (49.8)%N/M
     Loans, net of unearned income before PPP17,291,873 17,164,088 16,927,397 17,072,880 16,860,067 0.7 %2.6 %
PPP1,688,713 1,830,426 1,953,122 1,258,917 — (7.7)%N/M
Total Loans, net of unearned income$18,980,586 $18,994,514 $18,880,519 $18,331,797 $16,860,067 (0.1)%12.6 %
Deposits, by type:
Noninterest-bearing demand$6,672,832 $6,477,228 $6,270,683 $5,789,788 $4,307,027 3.0 %54.9 %
Interest-bearing demand5,832,174 5,762,150 5,591,548 5,103,419 4,649,905 1.2 %25.4 %
Savings6,137,084 5,905,137 5,716,050 5,446,368 5,127,662 3.9 %19.7 %
     Total demand and savings18,642,090 18,144,515 17,578,281 16,339,575 14,084,594 2.7 %32.4 %
Brokered324,364 340,451 314,721 312,121 275,359 (4.7)%17.8 %
Time2,150,570 2,306,556 2,495,445 2,624,962 2,761,474 (6.8)%(22.1)%
Total Deposits$21,117,024 $20,791,522 $20,388,447 $19,276,658 $17,121,427 1.6 %23.3 %
Short-term borrowings, by type:
Customer funding$570,775 $622,623 $613,127 $546,716 $428,240 (8.3)%33.3 %
Federal funds purchased— — — 74,231 186,868 N/M(100.0)%
Short-term FHLB advances and other borrowings— — — 86,824 687,937 N/M(100.0)%
Total Short-term borrowings$570,775 $622,623 $613,127 $707,771 $1,303,045 (8.3)%(56.2)%
(1) Consists of overdrafts and net origination fees and costs.


FULTON FINANCIAL CORPORATION

FULTON FINANCIAL CORPORATION




FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
Three months ended
Mar 31Dec 31Sep 30Jun 30Mar 31
20212020202020202020
Allowance for credit losses related to Loans, net of unearned income:
Balance at beginning of period$277,567 $266,825 $256,537 $238,508 $163,620 
Impact of adopting CECL— — — — 45,724 
Loans charged off:
    Commercial and industrial(4,319)(1,567)(2,969)(3,480)(10,899)
    Real estate - commercial mortgage(1,837)(300)(746)(2,324)(855)
    Consumer and home equity(847)(668)(1,093)(1,303)(1,529)
    Real estate - residential mortgage(192)— (198)(235)(187)
    Real estate - construction(39)— — (17)— 
    Equipment lease financing and other(968)(483)(483)(688)(533)
    Total loans charged off(8,202)(3,018)(5,489)(8,047)(14,003)
Recoveries of loans previously charged off:
    Commercial and industrial769 4,581 2,103 2,978 1,734 
    Real estate - commercial mortgage174 588 100 95 244 
    Consumer and home equity440 594 491 649 646 
    Real estate - residential mortgage95 199 95 112 85 
    Real estate - construction384 179 4,873 — 70 
    Equipment lease financing and other159 219 185 92 108 
    Recoveries of loans previously charged off2,021 6,360 7,847 3,926 2,887 
Net loans recovered (charged off)(6,181)3,342 2,358 (4,121)(11,116)
Provision for credit losses(5,400)7,400 7,930 22,150 40,280 
Balance at end of period$265,986 $277,567 $266,825 $256,537 $238,508 
Net charge-offs (recoveries) to average loans (annualized)0.13 %(0.07)%(0.05)%0.09 %0.26 %
Allowance credit losses related to OBS Credit Exposures(1)
Balance at beginning of period$14,373 $15,533 $16,383 $18,963 $2,588 
Impact of adopting CECL— — — — 12,625 
Provision for credit losses (100)(1,160)(850)(2,580)3,750 
Balance at end of period$14,273 $14,373 $15,533 $16,383 $18,963 
NON-PERFORMING ASSETS:
Non-accrual loans$143,889 $137,198 $128,321 $125,037 $120,345 
Loans 90 days past due and accruing8,559 9,929 13,761 14,767 19,593 
    Total non-performing loans152,448 147,127 142,082 139,804 139,938 
Other real estate owned3,664 4,178 4,565 5,418 6,593 
Total non-performing assets$156,112 $151,305 $146,647 $145,222 $146,531 
NON-PERFORMING LOANS, BY TYPE:
Commercial and industrial$31,871 $32,610 $37,224 $39,730 $41,318 
Real estate - commercial mortgage54,164 52,647 43,426 42,374 36,538 
Real estate - residential mortgage36,152 30,793 28,287 22,887 25,832 
Consumer and home equity13,072 13,090 12,292 11,911 11,226 
Real estate - construction1,440 1,550 4,051 4,525 4,379 
Equipment lease financing and other15,749 16,437 16,802 18,377 20,645 
Total non-performing loans$152,448 $147,127 $142,082 $139,804 $139,938 
(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
Mar 31Dec 31Sep 30Jun 30Mar 31
20212020202020202020
Common shareholders' equity (tangible), per share
Shareholders' equity$2,629,655$2,616,828$2,390,261$2,340,501$2,285,748
Less: Preferred stock(192,878)(192,878)———
Less: Goodwill and intangible assets(536,544)(536,659)(534,907)(535,039)(535,171)
Tangible common shareholders' equity (numerator)$1,900,233$1,887,291$1,855,354$1,805,462$1,750,577
Shares outstanding, end of period (denominator)162,518162,350162,134161,958161,435
Common shareholders' equity (tangible), per share$11.69$11.62$11.44$11.15$10.84
Return on average common shareholders' equity (tangible)
Net income available to common shareholders$70,472$48,690$61,610$39,558$26,047
Plus: Intangible amortization, net of tax90104103104104
(Numerator)$70,562$48,794$61,713$39,662$26,151
Average shareholders' equity$2,637,098$2,544,866$2,374,091$2,309,133$2,337,016
Less: Average preferred stock(192,878)(127,639)———
Less: Average goodwill and intangible assets(536,601)(535,474)(534,971)(535,103)(535,235)
Average tangible common shareholders' equity (denominator)$1,907,619$1,881,753$1,839,120$1,774,030$1,801,781
Return on average common shareholders' equity (tangible), annualized15.00%10.32%13.50%8.99%5.84%
Tangible common equity to tangible assets (TCE Ratio)
Shareholders' equity$2,629,655$2,616,828$2,390,261$2,340,501$2,285,748
Less: Preferred stock(192,878)(192,878)———
Less: Goodwill and intangible assets(536,544)(536,659)(534,907)(535,039)(535,171)
Tangible common shareholders' equity (numerator)$1,900,233$1,887,291$1,855,354$1,805,462$1,750,577
Total assets$25,892,990$25,906,733$25,543,281$24,617,863$22,929,859
Less: Goodwill and intangible assets(536,544)(536,659)(534,907)(535,039)(535,171)
Total tangible assets (denominator)$25,356,446$25,370,074$25,008,374$24,082,824$22,394,688
Tangible common equity to tangible assets7.49%7.44%7.42%7.50%7.82%
Efficiency ratio
Non-interest expense$178,384$154,737$139,145$143,006$142,552
Less: Amortization of tax credit investments(1,531)(1,532)(1,694)(1,450)(1,450)
Less: Intangible amortization(115)(132)(132)(132)(132)
Less: 2020 cost savings initiatives—(15,400)(800)——
Less: Debt extinguishment costs(32,163)——(2,878)—
Non-interest expense (numerator)$144,575$137,673$136,519$138,546$140,970
Net interest income (fully taxable equivalent)$167,428$164,578$157,106$155,854$163,970
Plus: Total Non-interest income95,39755,57463,24855,92254,644
Less: Investment securities gains, net(33,475)—(2)(3,005)(46)
Total revenue (denominator)$229,350$220,152$220,352$208,771$218,568
Efficiency ratio63.0%62.5%62.0%66.4%64.5%


Three months ended
Mar 31Dec 31Sep 30Jun 30Mar 31
20212020202020202020
Asset Quality, excluding PPP
Net loans recovered (charged-off) (numerator)$(6,181)$3,342$2,358$(4,121)$(11,116)
Average loans, net of unearned income$18,980,586$18,994,514$18,880,519$18,331,797$16,860,067
Less: Average PPP loans(1,688,713)(1,830,426)(1,953,122)(1,258,917)—
Total adjusted average loans (denominator)$17,291,873$17,164,088$16,927,397$17,072,880$16,860,067
Net charge-offs (recoveries) to average loans (annualized)0.14%(0.08)%(0.06)%0.10%0.26%
Non-performing loans (numerator)$152,448$147,127$142,082$139,804$139,938
Loans, net of unearned income$18,990,986$18,900,820$19,028,621$18,704,722$17,077,403
Less: PPP loans(1,688,394)(1,581,712)(1,960,165)(1,937,034)—
Total adjusted loans (denominator)$17,302,592$17,319,108$17,068,456$16,767,688$17,077,403
Non-performing loans to adjusted total loans0.88%0.85%0.83%0.83%0.82%
ACL - loans (numerator)$265,986$277,567266,825256,537$238,508
Loans, net of unearned income$18,990,986$18,900,820$19,028,621$18,704,722$17,077,403
Less: PPP loans(1,688,394)(1,581,712)(1,960,165)(1,937,034)—
Total adjusted loans (denominator)$17,302,592$17,319,108$17,068,456$16,767,688$17,077,403
ACL - loans to adjusted total loans1.54%1.60%1.56%1.53%1.40%
Pre-provision net revenue
Net interest income$164,448$161,591$154,116$152,754$160,746
Non-interest income95,39755,57463,24855,92254,644
Less: Investment securities gains, net(33,475)—(2)(3,005)(46)
Total revenue$226,370$217,165$217,362$205,671$215,344
Non-interest expense$178,384$154,737$139,145$143,006$142,552
Less: Debt extinguishment(32,163)——(2,878)—
Less: Amortization on tax credit investments (1,531)(1,532)(1,694)(1,450)(1,450)
Less: Intangible amortization(115)(132)(132)(132)(132)
Total non-interest expense$144,575$153,073$137,319$138,546$140,970
Pre-provision net revenue$81,795$64,092$80,043$67,125$74,374
Note: numbers may not sum due to rounding.


FIRST QUARTER 2021 RESULTS NASDAQ: FULT Data as of or for the three months ended March 31, 2021 unless otherwise noted

 
This presentation may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," “projects,” the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results. Management’s 2021 Outlook contained herein is comprised of forward-looking statements. 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, 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). The Corporation uses certain non-GAAP financial measures in this presentation. These non-GAAP financial measures are reconciled to the most comparable GAAP measures at the end of this presentation. FORWARD-LOOKING STATEMENTS 2

 
1. ROA is return an average assets calculated as net income for the period divided by average assets, annualized. 2. ROE is return on average shareholders’ equity calculated as net income for the period divided by average shareholders’ equity, annualized. 3. Non-GAAP financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Reconciliation” at the end of this presentation. INCOME STATEMENT SUMMARY 3 Change From 1Q21 4Q20 1Q20 (dollars in thousands, except per-share data) Net Interest Income $ 164,448 $ 2,857 $ 3,702 Provision for Credit Losses (5,500) (11,740) (49,530) Non-Interest Income 61,922 6,348 7,324 Securities Gains 33,475 33,475 33,429 Non-Interest Expense 178,384 23,647 35,832 Income before Income Taxes 86,961 30,774 58,153 Income Taxes 13,898 8,536 11,137 Net Income 73,063 22,238 47,016 Preferred Stock Dividends (2,591) (456) (2,591) Net Income Available to Common Shareholders $ 70,472 $ 21,782 $ 44,425 Net income per share (diluted) $ 0.43 $ 0.13 $ 0.27 ROA (1) 1.14 % 0.35 % 0.67 % ROE (2) 11.24 % 3.29 % 6.76 % ROE (tangible) (3) 15.00 % 4.69 % 9.16 % Efficiency ratio (3) 63.0 % 0.5 % (1.5) %

 
NET INTEREST INCOME AND MARGIN Net Interest Income & Net Interest Margin Average Interest-Earning Assets & Yields Average Liabilities & Rates ($ IN MILLIONS) ($ IN BILLIONS) ($ IN BILLIONS) 4 $17 $19 $20 $21 $21$2 $2 $2 $2 $2 1.02% 0.72% 0.62% 0.54% 0.51% Cost of Interest-bearing Liabilities Borrowings Deposits 1Q20 2Q20 3Q20 4Q20 1Q21 $— $5 $10 $15 $20 $25 0.00% 1.00% 2.00% 3.00% $161 $153 $154 $162 $164 3.21% 2.81% 2.70% 2.75% 2.79% Net Interest Income Net Interest Margin (Fully-taxable equivalent basis, or FTE) 1Q20 2Q20 3Q20 4Q20 1Q21 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2.00% 2.25% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75% 4.00% $17 $18 $19 $19 $19 $4 $4 $4 $5 $5 3.97% 3.32% 3.13% 3.12% 3.13% Loans Securities & Other Interest-Earning Asset Yield (FTE) 1Q20 2Q20 3Q20 4Q20 1Q21 $5 $10 $15 $20 $25 2.00% 4.00% 6.00% 8.00%

 
2021 Balance Sheet Restructuring 5 Why: • Reduce exposure to interest rate risk • Opportunity to reduce interest expense What: • Sold Visa Class B restricted shares - $34 million pre-tax gain • Tendered for $75 million of 4.50% subordinated debt due 2024 • Tendered for $60 million of 3.60% senior notes due 2022 • Prepaid $535 million of term FHLB advances • Sold $23 million of auction rate securities • Executed $500 million of receive-fixed, pay-variable interest rate swaps 1Q21 Impact: Non-interest income: • $34 million gain on the sale of Visa Class B restricted Shares • $.5 million loss on the sale of other securities Non-interest expense: • $33 million in debt extinguishment costs, including: ◦ $21 million in prepayment penalties of FHLB advances; ◦ $11 million of expenses associated with tender offer to purchase subordinated and senior note debt ◦ $1 million of deferred issuance costs recognized in net interest income Anticipated Future Impact: • Increase in net interest income of ~$17 million on an annualized basis • Increase in earnings per share of ~$0.08 per share on an annualized basis

 
ASSET QUALITY ($ IN MILLIONS) Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans Net Charge-offs (NCOs) and NCOs to Average Loans ACL(1) to NPLs & Loans 61. The allowance for credit losses (“ACL”) relates specifically to "Loans, net of unearned income" and does not include the ACL related to off-balance-sheet credit exposures. 2. Non-GAAP financial measure. Please refer to the calculation and management's reasons for using this measure on the slide titled "Non-GAAP Reconciliation" at the end of this presentation. $44 $20 $7 $6 $(6) 1Q20 2Q20 3Q20 4Q20 1Q21 $— $10 $20 $30 $40 $50 $140 $140 $142 $147 $152 0.82% 0.75% 0.75% 0.78% 0.80% NPL NPLs/Loans 1Q20 2Q20 3Q20 4Q20 1Q21 $100 $125 $150 $175 $200 0.00% 0.50% 1.00% 1.50% $11 $4 $(2) $(3) $6 0.26% 0.09% -0.05% -0.07% 0.13% Net charge-offs/(recoveries) NCOs/Average Loans (annualized) 1Q20 2Q20 3Q20 4Q20 1Q21 $0 $10 $20 $30 $40 (1.00)% (0.50)% 0.00% 0.50% 1.00% 170% 183% 188% 189% 174% 1.40% 1.53% 1.56% 1.60% 1.54% 1.40% 1.37% 1.40% 1.47% 1.40% ACL/NPLs ACL/Loans excl PPP(2) ACL/Loans 1Q20 2Q20 3Q20 4Q20 1Q21 50% 75% 100% 125% 150% 175% 200% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00%

 
NON-INTEREST INCOME(1) (1) Excluding investment securities gains Three months ended March 31, 2021 (percent of total non-interest income) 7 Non-interest income(1) increased 11% from 4Q20 Increases in: n Mortgage Banking driven by a reversal of a mortgage service assets valuation allowance of $6 million n Wealth management income, specifically brokerage income Partially offset by a decrease in: n Capital markets revenue - primarily commercial loan interest rate swaps 28% 22%18% 26% 6% Wealth Management Mortgage Banking Consumer Banking Commercial Banking Other 1Q21 4Q20 Change (dollars in thousands) n Wealth Management $ 17,347 $ 15,653 $ 1,694 n Mortgage Banking 13,960 9,311 4,649 n Consumer Banking 10,754 10,797 (43) n Commercial Banking 16,342 16,809 (467) n Other 3,519 3,004 515 Total $ 61,922 $ 55,574 $ 6,348

 
NON-INTEREST EXPENSE Three months ended March 31, 2021 (percent of total non-interest expense) 8 46% 8% 8% 5% 18% 15% Salaries and Benefits Occupancy Data Processing and Software Other Outside Services Debt extinguishment Other 1Q21 4Q20 Change (dollars in thousands) n Salaries and Benefits $ 82,586 $ 83,929 $ (1,343) n Occupancy 13,982 13,161 821 n Data Processing and Software 13,561 11,951 1,610 n Other Outside Services 8,490 8,334 156 n Debt Extinguishment 32,163 — 32,163 n Other 27,602 37,362 (9,760) Total $ 178,384 $ 154,737 $ 23,647 Non-interest expense increased 15% from 4Q20 Driven primarily by balance sheet restructuring: n $21 million in prepayment penalties of FHLB advances and $12 million in other long-term debt extinguishment costs Other increases were due to: n Higher incentive compensation accrual in Q1 2021 due to 2021 performance n Technology investments n Snow removal Offset by elevated expenses in Q4 2020 related to cost saving initiatives: n $11 million due to financial center closures (fixed asset write-offs and lease termination charges) n $4 million of severance expense

 
CAPITAL POSITION REMAINS STRONG 9 1. Regulatory capital ratios as of March 31, 2021 are preliminary. 2. Excesses shown are to regulatory minimums, including the 250 basis point capital conservation buffer, except for Tier 1 Leverage which is the well-capitalized minimum. Dollars are in millions. 8.3% 10.8% 9.8% 14.2% Regulatory Minimums Excess(2) Tier 1 Leverage Tier 1 Risk Based CE Tier 1 Total Risk Based —% 2.5% 5.0% 7.5% 10.0% 12.5% 15.0% 17.5% $836 $443 $546 $736 (as of March 31, 2021)

 
2021 OUTLOOK 10 Net interest income: $640 - $660 million Provision for credit losses: $20 - $40 million Non-interest income: $220 - $230 million Non-interest expense (1): $555 - $575 million (1) Excluding charges related to the 1Q 2021 balance sheet restructuring

 
NON-GAAP RECONCILIATION Note: The Corporation has presented the following non-GAAP (Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. 11 (dollars in thousands) Three months ended Mar 31 Dec 31 Mar 31 Return on average common shareholders' equity (tangible) 2021 2020 2020 Net income available to common shareholders $ 70,472 $ 48,690 $ 26,047 Plus: Intangible amortization, net of tax 90 104 104 (Numerator) 70,562 48,794 26,151 Average shareholders' equity $ 2,637,098 $ 2,544,866 $ 2,337,016 Less: Average preferred stock (192,878) (127,639) — Less: Average goodwill and intangible assets (536,601) (535,474) (535,235) Average tangible common shareholders' equity (denominator) 1,907,619 1,881,753 1,801,781 Return on average common shareholders' equity (tangible), annualized 15.00 % 10.32 % 5.84 %

 
NON-GAAP RECONCILIATION 12 (dollars in thousands) Three months ended Mar 31 Dec 31 Mar 31 Efficiency ratio 2021 2020 2020 Non-interest expense $ 178,384 $ 154,737 $ 142,552 Less: Debt extinguishment costs (32,163) — — Less: Amortization of tax credit investments (1,531) (1,532) (1,450) Less: Intangible amortization (115) (132) (132) Non-interest expense (numerator) 144,575 137,673 140,970 Net interest income (fully taxable equivalent) $ 167,428 $ 164,578 $ 163,970 Plus: Total Non-interest income 95,397 55,574 54,644 Less: Investment securities gains, net (33,475) — (46) Total revenue (denominator) $ 229,350 $ 220,152 $ 218,568 Efficiency ratio 63.0 % 62.5 % 64.5 % Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Asset Quality, excluding PPP 2021 2020 2020 2020 2020 ACL - loans (numerator) $ 265,986 $ 277,567 $ 266,825 $ 256,537 $ 238,508 Loans, net of unearned income $ 18,990,986 $ 18,900,820 $ 19,028,621 $ 18,704,722 $ 17,077,403 Less: PPP loans (1,688,394) (1,581,712) (1,960,165) (1,937,034) — Total adjusted loans (denominator) $ 17,302,592 $ 17,319,108 $ 17,068,456 $ 16,767,688 $ 17,077,403 ACL - loans to adjusted total loans 1.54 % 1.60 % 1.56 % 1.53 % 1.40 %

 
APPENDIX - CREDIT DISCLOSURES 13 Additional detail on deferrals and selected industries (data as of March 31, 2021; all industry classifications based on NAICS codes)

 
Active COVID Deferrals(1) Continue to Decline 14 Commercial • At March 31, 2021, active deferrals declined to ~$153 million, or 1.1% of the commercial portfolio(2) • Majority of active deferrals are in the hospitality, entertainment, and fitness industries • Continued focus to obtain credit enhancements where appropriate to support the additional deferrals Consumer • At March 31, 2021, active deferrals and forbearances declined to ~$94 million, or 1.9%, of the consumer portfolio(3) 1) Deferrals consist of deferrals of principal and interest payments or deferrals of principal payments. 2) Includes real estate - commercial mortgage, commercial and industrial and equipment lease financing. 3) Includes real estate - residential mortgage, real estate - home equity and consumer.

 
Selected Industries With Heightened Risk Due to COVID-19 15 (1) Based on regulatory classifications. Commercial Portfolio consists of Commercial and Industrial, Commercial Mortgage, and Construction loans to commercial borrowers. Note: "Pass," "Special Mention" and "Substandard or Lower" are the Corporation's internal risk rating categories. Please see Note 1 - Basis of Presentation in the Corporation's Form 10-K for the year ended December 31, 2020 for a description of these categories. some numbers may not sum due to rounding