Skip to main content
Equibles

10-Q

Fulton Financial Corp (FULT)

10-Q 2026-05-08 For: 2026-03-31
View Original
Added on May 08, 2026
View as plain text

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026, or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to

Commission File No. 001-39680

FULTON FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Pennsylvania 23-2195389
(State or other jurisdiction of<br>incorporation or organization) (I.R.S. Employer<br>Identification No.)
One Penn Square P. O. Box 4887 Lancaster, Pennsylvania 17604
(Address of principal executive offices) (Zip Code)

(717) 291-2411

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $2.50 FULT The Nasdaq Stock Market, LLC
Depositary Shares, Each Representing 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A FULTP The Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐
Non-accelerated filer ☐ Smaller reporting company ☐
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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ☐    No  ☒

APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Common Stock, $2.50 Par Value – 191,133,586 shares outstanding as of April 30, 2026.

FULTON FINANCIAL CORPORATION

FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31, 2026

INDEX

Description Page
Glossary of Terms 3
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
(a) Consolidated Balance Sheets -March 31, 2026and December 31, 2025 6
(b) Consolidated Statements of Income - Three monthsendedMarch 31, 2026and 2025 7
(c) Consolidated Statements of Comprehensive Income - Three monthsendedMarch 31, 2026and 2025 8
(d) Consolidated Statements of Shareholders’ Equity - Three monthsendedMarch 31, 2026and 2025 9
(e) Consolidated Statements of Cash Flows -Threemonths endedMarch 31, 2026and 2025 10
(f) Notes to Consolidated Financial Statements 11
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 30
Item 3. Quantitative and Qualitative DisclosuresAbout Market Risk 49
Item 4. Controls and Procedures 52
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 53
Item 1A. Risk Factors 53
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53
Item 3. Defaults Upon Senior Securities - (not applicable)
Item 4. Mine Safety Disclosures - (not applicable)
Item 5. Other Information 53
Item 6. Exhibits 54
Signatures 55

Note: Some numbers contained in the document may not sum due to rounding

GLOSSARY OF DEFINED ACRONYMS AND TERMS
2026 Repurchase Program The authorization, commencing on January 1, 2026 and expiring on January 31, 2027, to repurchase up to $150.0 million of the Corporation's common stock; under this authorization, up to $25.0 million of the $150.0 million authorization may be used to repurchase the Corporation's preferred stock and outstanding subordinated notes
ACL Allowance for credit losses
AFS Available for sale
ALCO Asset/Liability Management Committee
AOCI Accumulated other comprehensive income (loss)
ASC Accounting Standards Codification
ASU Accounting Standards Update
BHCA Bank Holding Company Act of 1956, as amended
Blue Foundry Blue Foundry Bancorp, a New Jersey bank holding company headquartered in Rutherford, New Jersey
Blue Foundry Bank A New Jersey-chartered stock savings bank and a wholly-owned subsidiary of Blue Foundry
Blue Foundry Merger The merger of Blue Foundry with and into the Corporation, with the Corporation continuing as the surviving corporation
Blue Foundry Merger Agreement Agreement and Plan of Merger, dated as of November 24, 2025 between the Corporation and Blue Foundry
bp or bps Basis point(s)
Capital Rules Regulatory capital requirements applicable to the Corporation and Fulton Bank
Corporation, Company, we, our or us Fulton Financial Corporation
Directors' Plan Amended and Restated 2023 Director Equity Plan
Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act
Employee Equity Plan 2022 Amended and Restated Equity and Cash Incentive Compensation Plan
ESPP Employee Stock Purchase Plan
ETR Effective tax rate
Exchange Act Securities Exchange Act of 1934, as amended
FASB Financial Accounting Standards Board
FDIC Federal Deposit Insurance Corporation
Federal Reserve Board Board of Governors of the Federal Reserve System
FHLB Federal Home Loan Bank
FRB Federal Reserve Bank
FTE Fully taxable-equivalent
Fulton Bank or the Bank Fulton Bank, N.A.
FultonFirst Strategic initiative implemented by the Corporation
GAAP U.S. generally accepted accounting principles
GSEs U.S. Government-sponsored enterprises or agencies
HTM Held to maturity
LTV Loan-to-value
Management's Discussion Management's Discussion and Analysis of Financial Condition and Results of Operations
MSRs Mortgage servicing rights
Net loans Loan and lease receivables (net of unearned income)
NIM Net interest margin
N/M Not meaningful
OBS Off-balance-sheet
OCI Other comprehensive income (loss)
--- ---
OREO Other real estate owned
Parent Company Fulton Financial Corporation individually
PD Probability of default
Pension Plan Defined Benefit Pension Plan
Postretirement Plan Postretirement Benefits Plan
Prudential Bancorp Merger The acquisition by the Corporation of Prudential Bancorp, Inc. that was completed effective July 1, 2022
PSU Performance-based restricted stock unit
RSU Restricted stock unit
SBA Small Business Administration
SEC United States Securities and Exchange Commission
Subordinated Notes due 2030 The Corporation's 3.250% Fixed-to-Floating Rate Subordinated Notes due 2030
TruPS Trust Preferred Securities

FORWARD-LOOKING STATEMENTS

The Corporation has made, and may continue to make, certain forward-looking statements with respect to its 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. Many factors could affect future financial results including, without limitation:

•the impact of adverse conditions in the economy and financial markets, including elevated interest rates and trade policies and the imposition of tariffs and retaliatory tariffs, on the performance of the Corporation's loan portfolio and demand for the Corporation's products and services;

•the potential impacts of events affecting the financial services industry on the Corporation, including increased competition for, and costs of, deposits and other funding sources, more stringent regulatory requirements relating to liquidity and interest rate risk management and capital adequacy and increased FDIC insurance expenses;

•the effects of actions by the federal government, including those of the Federal Reserve Board and other government agencies, that impact the money supply and market interest rates;

•the effects of market interest rates, and the relative balances of interest rate-sensitive assets to interest rate-sensitive liabilities, on NIM and net interest income;

•the composition of the Corporation's loan portfolio, including commercial mortgage loans, commercial and industrial loans and construction loans, which collectively represent a majority of the loan portfolio, may expose the Corporation to increased credit risk;

•the effects of changes in interest rates on demand for the Corporation's products and services;

•investment securities gains and losses, including declines in the fair value of securities which may result in charges to earnings or shareholders' equity;

•the effects of changes in interest rates or disruptions in liquidity markets on the Corporation's sources of funding;

•capital and liquidity strategies, including the Corporation's ability to comply with applicable capital and liquidity requirements, and the Corporation's ability to generate capital internally or raise capital on favorable terms;

•the effects of competition on deposit rates and growth, loan rates and growth and NIM;

•possible goodwill impairment charges;

•the impact of operational risks, including the risk of human error, inadequate or failed internal processes and systems, computer and telecommunications systems failures, faulty or incomplete data and an inadequate risk management framework;

•the loss of, or failure to safeguard, confidential or proprietary information;

•the Corporation's failure to identify and adequately and promptly address cybersecurity risks, including data breaches and cyberattacks;

•the impact of failures of third-party vendors upon which the Corporation relies to perform in accordance with contractual arrangements and the effects of concerns about other financial institutions on the Corporation;

•the potential to incur losses in connection with repurchase and indemnification payments related to sold loans;

•the potential effects of climate change on the Corporation's business and results of operations;

•the potential effects of increases in non-performing assets, which may require the Corporation to increase the ACL, charge-off loans and incur elevated collection and carrying costs related to such non-performing assets;

•the determination of the ACL, which depends significantly upon assumptions and judgments with respect to a variety of factors, including the performance of the loan portfolio, the weighted-average remaining lives of different classifications of loans within the loan portfolio and current and forecasted economic conditions, among other factors;

•the effects of the extensive level of regulation and supervision to which the Corporation and Fulton Bank are subject;

•changes in law, regulation and government policy, which could result in significant changes in banking and financial services regulation;

•the continuing impact of the Dodd-Frank Act on the Corporation's business and results of operations;

•the potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to the Corporation's reputation;

•the effects of adverse outcomes in litigation and governmental or administrative proceedings;

•the effects of changes in U.S. federal, state or local tax laws;

•the effects of the significant amounts of time and expense associated with regulatory compliance and risk management;

•the Corporation's ability to realize anticipated reductions in non-interest expense and increases in revenue from strategic initiatives implemented from time to time intended to simplify its operating model, improve its relationship banking focus, increase productivity and enhance the customer experience;

•risks related to the Blue Foundry Merger including, among others, (i) diversion of management’s attention from ongoing business operations and opportunities, (ii) cost savings and any revenue or expense synergies from the Blue Foundry Merger may not be fully realized or may take longer than anticipated to be realized, (iii) expenses related to the Blue Foundry Merger are greater than expected, and (iv) unanticipated challenges or delays in the integration of Blue Foundry Bank’s business into Fulton Bank’s business and/or the conversion of Blue Foundry Bank’s operating systems and customer data;

•completed and potential future acquisitions may affect costs and the Corporation may not be able to successfully integrate the acquired business or realize the anticipated benefits from such acquisitions;

•geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism, military conflicts, wars and other international hostilities, which could impact business and economic conditions in the United States and abroad;

•public health crises and pandemics and their effects on the economic and business environments in which the Corporation operates, including on the Corporation's credit quality and business operations, as well as the impact on general economic and financial market conditions;

•the Corporation's ability to achieve its growth plans;

•the Corporation's ability to attract and retain talented personnel;

•the effects of competition from financial service companies and other companies offering bank services;

•the Corporation's ability to keep pace with technological changes;

•the Corporation's reliance on its subsidiaries for substantially all of its revenues and its ability to pay dividends or other distributions;

•the effects of negative publicity on the Corporation's reputation; and

•other factors that may affect future results of the Corporation.

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except per-share data) March 31, 2026
(unaudited) December 31, 2025
ASSETS
Cash and due from banks $ 311,796 $ 271,463
Interest-bearing deposits with other banks 751,114 790,146
Cash and Cash Equivalents 1,062,910 1,061,609
FRB and FHLB stock 119,952 121,009
Loans held for sale 11,887 16,316
Investment securities:
AFS, at estimated fair value 3,268,920 3,407,859
HTM, at amortized cost 1,593,047 1,425,885
Net loans 24,266,345 24,144,884
Less: ACL - loans (367,489) (364,462)
Loans, Net 23,898,856 23,780,422
Net premises and equipment 168,941 175,240
Accrued interest receivable 112,083 113,698
Goodwill and net intangible assets 607,647 612,996
Other assets 1,393,195 1,403,366
Total Assets $ 32,237,438 $ 32,118,400
LIABILITIES
Deposits:
Noninterest-bearing $ 5,334,920 $ 5,256,096
Interest-bearing 21,433,415 21,333,311
Total Deposits 26,768,335 26,589,407
Borrowings:
FHLB advances 200,000 250,000
Senior debt and subordinated debt 367,720 367,637
Other borrowings 684,859 679,738
Total Borrowings 1,252,579 1,297,375
Accrued interest payable 17,740 17,130
Other liabilities 693,501 724,041
Total Liabilities 28,732,155 28,627,953
SHAREHOLDERS' EQUITY
Preferred stock, no par value, 10,000,000 shares authorized; Series A, 200,000 shares issued as of March 31, 2026 and December 31, 2025, liquidation preference of $1,000 per share 192,878 192,878
Common stock, $2.50 par value, 600,000,000 shares authorized, 247,230,455 shares issued as of March 31, 2026 and 247,130,331 shares issued as of December 31, 2025 618,076 617,826
Additional paid-in capital 1,806,510 1,803,235
Retained earnings 2,082,797 2,024,618
Accumulated other comprehensive loss (221,887) (198,682)
Treasury stock, at cost, 68,387,062 shares as of March 31, 2026 and 67,235,204 shares as of December 31, 2025 (973,091) (949,428)
Total Shareholders' Equity 3,505,283 3,490,447
Total Liabilities and Shareholders' Equity $ 32,237,438 $ 32,118,400
See Notes to Consolidated Financial Statements

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(dollars in thousands, except per-share data) Three months ended March 31,
2026 2025
Interest Income
Loans, including fees $ 339,023 $ 344,789
Investment securities 43,288 45,738
Other interest income 7,745 9,165
Total Interest Income 390,056 399,692
Interest Expense
Deposits 115,805 130,892
FHLB advances 2,340 8,020
Senior debt and subordinated debt 4,698 3,577
Other borrowings and interest-bearing liabilities 5,190 6,016
Total Interest Expense 128,033 148,505
Net Interest Income 262,023 251,187
Provision for credit losses 14,442 13,898
Net Interest Income After Provision for Credit Losses 247,581 237,289
Non-Interest Income
Wealth management 24,496 21,785
Commercial banking 22,806 21,329
Consumer banking 14,176 13,068
Mortgage banking 3,955 3,138
Other 4,408 7,914
Non-Interest Income Before Investment Securities (Losses) Gains, Net 69,841 67,234
Investment securities (losses) gains, net — (2)
Total Non-Interest Income 69,841 67,232
Non-Interest Expense
Salaries and employee benefits 109,917 103,526
Data processing and software 18,662 18,599
Net occupancy 18,229 18,207
Other outside services 12,750 11,837
Intangible amortization 5,349 6,269
FDIC insurance 4,249 5,597
Equipment 3,924 4,150
Marketing 2,331 2,521
Professional fees 2,239 (1,078)
Acquisition-related expenses 2,644 380
Other 20,000 19,452
Total Non-Interest Expense 200,294 189,460
Income Before Income Taxes 117,128 115,061
Income taxes 22,367 22,074
Net Income 94,761 92,987
Preferred stock dividends (2,562) (2,562)
Net Income Available to Common Shareholders $ 92,199 $ 90,425
PER SHARE:
Net income available to common shareholders (basic) $ 0.51 $ 0.50
Net income available to common shareholders (diluted) 0.51 0.49
Cash dividends 0.19 0.18
See Notes to Consolidated Financial Statements

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(dollars in thousands) Three months ended March 31,
2026 2025
Net Income $ 94,761 $ 92,987
Other comprehensive (loss) income, net of tax:
Unrealized (losses) gains on AFS investment securities:
Net unrealized holding (losses) gains (21,683) 9,769
Reclassification adjustment for securities net change realized in net income — 2
Amortization of net unrealized gains on AFS investment securities transferred to HTM 1,237 1,328
Net Unrealized (Losses) Gains on AFS Investment Securities (20,446) 11,099
Unrealized (losses) gains on interest rate derivatives used in cash flow hedges:
Net unrealized holding (losses) gains (5,954) 1,764
Reclassification adjustment for net change realized in net income 3,300 3,515
Net Unrealized (Losses) Gains on Interest Rate Derivatives Used in Cash Flow Hedges (2,654) 5,279
Defined benefit pension plan and postretirement benefits:
Amortization of net unrecognized pension and postretirement items (105) (106)
Other Comprehensive (Loss) Income, Net of Tax (23,205) 16,272
Total Comprehensive Income $ 71,556 $ 109,259
See Notes to Consolidated Financial Statements

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)

(in thousands, except per-share data)

Common Stock Additional Retained<br>Earnings Accumulated Other Comprehensive<br>Income (Loss) Treasury<br>Stock Total
Amount Shares Outstanding Amount Paid-in<br>Capital
Three months ended March 31, 2026
Balance at December 31, 2025 $ 192,878 179,895 $ 617,826 $ 1,803,235 $ 2,024,618 $ (198,682) $ (949,428) $ 3,490,447
Net income 94,761 94,761
Other comprehensive loss (23,205) (23,205)
Common stock issued(1) 51 128 613 741
Dividend reinvestment activity 68 395 966 1,361
Stock-based compensation awards (repurchases), net 41 122 2,267 (363) 2,026
Acquisition of treasury stock (1,212) (24,266) (24,266)
Preferred stock dividend (2,562) (2,562)
Common stock dividends - 0.19 per share (34,020) (34,020)
Balance at March 31, 2026 $ 192,878 178,843 $ 618,076 $ 1,806,510 $ 2,082,797 $ (221,887) $ (973,091) $ 3,505,283
Three months ended March 31, 2025
Balance at December 31, 2024 $ 192,878 182,089 $ 614,866 $ 1,789,214 $ 1,775,620 $ (287,819) $ (887,434) $ 3,197,325
Net income 92,987 92,987
Other comprehensive income 16,272 16,272
Common stock issued(1) 35 88 536 624
Dividend reinvestment activity 65 424 904 1,328
Stock-based compensation awards (repurchases), net 46 167 1,930 (402) 1,695
Acquisition of treasury stock (31) (550) (550)
Preferred stock dividend (2,562) (2,562)
Common stock dividends - 0.18 per share (32,798) (32,798)
Balance at March 31, 2025 $ 192,878 182,204 $ 615,121 $ 1,792,104 $ 1,833,247 $ (271,547) $ (887,482) $ 3,274,321
See Notes to Consolidated Financial Statements

All values are in US Dollars.

(1) Issuance of common stock includes issuance in connection with the Corporation's ESPP.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(dollars in thousands) Three months ended March 31,
2026 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 94,761 $ 92,987
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses 14,442 13,898
Depreciation and amortization of premises and equipment 6,786 7,222
Net amortization of investment securities premiums 190 328
Net accretion of loan discounts (10,309) (13,134)
Investment securities losses, net — 2
Gain on sales of mortgage loans held for sale (2,430) (1,665)
Proceeds from sales of mortgage loans held for sale 115,458 101,038
Originations of mortgage loans held for sale (108,598) (89,720)
Amortization of intangible assets 5,349 6,269
Amortization of issuance costs and discounts on long-term borrowings 83 80
Loss (gain) on disposal of premises and equipment 989 (119)
Stock-based compensation 2,389 2,097
Net change in life insurance cash surrender value (4,497) (2,027)
Other changes, net 87 (116,553)
Total adjustments 19,939 (92,284)
Net cash provided by operating activities 114,700 703
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of AFS investment securities — 14,966
Proceeds from principal repayments and maturities of AFS investment securities 223,244 84,051
Proceeds from principal repayments and maturities of HTM investment securities 35,145 19,727
Purchase of AFS investment securities (114,157) (252,330)
Purchase of HTM investment securities (200,978) (118,967)
Net change in FRB and FHLB stock 1,057 3,410
Net change in loans (122,709) 182,888
Net purchases of premises and equipment (1,476) (9,356)
Settlement of bank owned life insurance 800 1,385
Proceeds from sale-leaseback transaction — 11,323
Net change in tax credit investments (9,105) (11,445)
Net cash used in investing activities (188,179) (74,348)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in demand and savings deposits 294,746 313,370
Net change in time deposits and brokered deposits (115,818) (113,831)
Net change in borrowings (44,879) (124,928)
Net proceeds from issuance of common stock 2,102 1,550
Dividends paid (36,742) (35,381)
Acquisition of treasury stock (24,629) (550)
Net cash provided by financing activities 74,780 40,230
Net increase (decrease) in Cash and Cash Equivalents 1,301 (33,415)
Cash and Cash Equivalents at Beginning of Period 1,061,609 1,063,871
Cash and Cash Equivalents at End of Period $ 1,062,910 $ 1,030,456
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest $ 127,423 $ 153,111
Income taxes 1,487 7,677
See Notes to Consolidated Financial Statements

FULTON FINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1 – Basis of Presentation

The accompanying unaudited Consolidated Financial Statements of the Corporation have been prepared in conformity with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto included in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2025.

Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

The Corporation evaluates subsequent events through the date of filing of this Quarterly Report on Form 10-Q with the SEC for potential recognition or disclosure in the Consolidated Financial Statements.

Significant Accounting Policies

The significant accounting policies used in the preparation of the unaudited Consolidated Financial Statements are disclosed in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to these accounting policies during the three months ended March 31, 2026.

Recently Adopted Accounting Standards

In November 2024, FASB issued ASU 2024-04 Debt - Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments ("ASU 2024-04"). This update clarifies the requirements for determining whether settlement of convertible debt should be accounted for as induced conversion. The Corporation adopted ASU 2024-04 on January 1, 2026, and its adoption did not have a material impact on its Consolidated Financial Statements.

In July 2025, FASB issued ASU 2025-05 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets ("ASU 2025-05"). This update allows public companies to use a practical expedient when estimating credit losses on current receivables and current customer contracts. The Corporation adopted ASU 2025-05 on January 1, 2026, and its adoption did not have a material impact on its Consolidated Financial Statements.

In September 2025, FASB issued ASU 2025-06 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06"). This update modernizes internal-use software guidance to adapt to the agile basis predominantly used to develop software. The Corporation adopted ASU 2025-06 on January 1, 2026, and its adoption did not have a material impact on its Consolidated Financial Statements.

In November 2025, FASB issued ASU 2025-09 Derivatives and Hedging (Topic 815): Hedge Accounting Improvements ("ASU 2025-09"). This update more closely aligns hedge accounting and financial reporting with risk management activities. The Corporation adopted ASU 2025-09 on January 1, 2026, and its adoption did not have a material impact on its Consolidated Financial Statements.

Recently Issued Accounting Standards

In November 2024, FASB issued ASU 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expense ("ASU 2024-03"). This update requires disaggregation of certain expenses in a note to the Consolidated Financial Statements. The Corporation will adopt ASU 2024-03 on January 1, 2027. The Corporation does not expect the adoption of ASU 2024-03 to have a material impact on its Consolidated Financial Statements.

In January 2025, FASB issued ASU 2025-01 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date ("ASU 2025-01"). This update clarifies the effective date of ASU 2024-03. The Corporation will adopt ASU 2025-01 on January 1, 2027. The Corporation does not expect the adoption of ASU 2025-01 to have a material impact on its Consolidated Financial Statements.

In May 2025, FASB issued ASU 2025-03 Business Combination (Topic 805) and Consolidation (Topic 810) - Determining the Accounting Acquirer in an Acquisition of a Variable Interest Entity ("ASU 2025-03"). This update addresses the determination of the accounting acquirer in an acquisition of a variable interest entity. The Corporation will adopt ASU 2025-03 on January 1, 2027. The Corporation does not expect the adoption of ASU 2025-03 to have a material impact on its Consolidated Financial Statements.

In May 2025, FASB issued ASU 2025-04 Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606) - Clarifications to Share-Based Consideration Payable to a Customer ("ASU 2025-04"). This update revises the definition of performance condition for share-based consideration payable to a customer, eliminates the forfeiture policy for most awards granted to customers, and clarifies the applicability of the variable consideration constraint. The Corporation will adopt ASU 2025-04 on January 1, 2027. The Corporation does not expect the adoption of ASU 2025-04 to have a material impact on its Consolidated Financial Statements.

In September 2025, FASB issued ASU 2025-07 Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract ("ASU 2025-07"). This update refines the scope of Topic 815 to clarify which contracts are subject to derivative accounting and clarifies guidance under Topic 606 for share-based noncash consideration from a customer in revenue contracts. The Corporation will adopt ASU 2025-07 on January 1, 2027. The Corporation does not expect the adoption of ASU 2025-07 to have a material impact on its Consolidated Financial Statements.

In December 2025, FASB issued ASU 2025-10 Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities ("ASU 2025-10"). This update provides accounting guidance for business entities that receive government grants. The Corporation will adopt ASU 2025-10 on January 1, 2029. The Corporation does not expect the adoption of ASU 2025-10 to have a material impact on its Consolidated Financial Statements.

In December 2025, FASB issued ASU 2025-11 Interim Reporting (Topic 270): Narrow-Scope Improvements ("ASU 2025-11"). This update improves navigability of the required interim disclosures and clarifies when that guidance is applicable. The Corporation will adopt ASU 2025-11 on January 1, 2028. The Corporation does not expect the adoption of ASU 2025-11 to have a material impact on its Consolidated Financial Statements.

In December 2025, FASB issued ASU 2025-12 Codification Improvements ("ASU 2025-12"). This update makes changes to the Accounting Standards Codification affecting a wide variety of topics to clarify, correct errors and make minor improvements. The Corporation will adopt ASU 2025-12 on January 1, 2027. The Corporation does not expect the adoption of ASU 2025-12 to have a material impact on its Consolidated Financial Statements.

Reclassifications

Certain amounts in the 2025 Consolidated Financial Statements and related notes have been reclassified to conform to the 2026 presentation.

​

NOTE 2 – Business Combinations

Blue Foundry Bancorp

On April 1, 2026, the Corporation completed its acquisition of Blue Foundry and Blue Foundry Bank became a wholly owned subsidiary of the Corporation. Blue Foundry Bank is expected to be merged with and into Fulton Bank in the third quarter of 2026 around the time of systems conversion.

Pursuant to the terms of the Blue Foundry Merger Agreement, each share of Blue Foundry common stock was converted into the right to receive 0.650 of a share of the Corporation's common stock, with cash paid in lieu of fractional shares. In accordance with the Blue Foundry Merger Agreement, the Corporation issued an aggregate of 12,435,551 shares of common stock on April 1, 2026.

The Corporation developed a comprehensive integration plan with respect to the Blue Foundry Merger and will expense direct costs as incurred. These direct costs totaled $2.6 million for the three months ended March 31, 2026. Costs related to the Blue Foundry Merger are included in acquisition-related expenses in the Consolidated Statements of Income.

The accounting for the business combination, including the completion of fair value assessments for assets acquired and liabilities assumed, is in the process of being finalized.

NOTE 3 – Restrictions on Cash and Cash Equivalents

Cash collateral is posted by the Corporation with counterparties to secure derivatives and other contracts, which is included in "interest-bearing deposits with other banks" on the Consolidated Balance Sheets. The amounts of such collateral as of March 31, 2026 and December 31, 2025 were $19.1 million and $27.0 million, respectively.

NOTE 4 – Investment Securities

The following table presents the amortized cost and estimated fair values of investment securities:

March 31, 2026
Amortized<br>Cost Gross<br>Unrealized<br>Gains Gross<br>Unrealized<br>Losses Estimated<br>Fair<br>Value
Available for Sale (dollars in thousands)
State and municipal securities $ 936,904 $ 52 $ (138,975) $ 797,981
Corporate debt securities 201,235 1,032 (5,786) 196,481
Collateralized mortgage obligations 1,020,440 6,648 (8,427) 1,018,661
Residential mortgage-backed securities 727,537 2,981 (22,858) 707,660
Commercial mortgage-backed securities 638,630 14 (90,507) 548,137
Total $ 3,524,746 $ 10,727 $ (266,553) $ 3,268,920
Held to Maturity
Residential mortgage-backed securities $ 543,048 $ 2,802 $ (44,878) $ 500,972
Collateralized mortgage obligations 166,041 — (1,638) 164,403
Commercial mortgage-backed securities 883,958 — (119,771) 764,187
Total $ 1,593,047 $ 2,802 $ (166,287) $ 1,429,562
December 31, 2025
--- --- --- --- --- --- --- --- ---
Amortized<br>Cost Gross<br>Unrealized<br>Gains Gross<br>Unrealized<br>Losses Estimated<br>Fair<br>Value
Available for Sale (dollars in thousands)
State and municipal securities $ 951,764 $ 326 $ (125,397) $ 826,693
Corporate debt securities 219,699 1,302 (6,080) 214,921
Collateralized mortgage obligations 1,034,548 12,758 (7,228) 1,040,078
Residential mortgage-backed securities 781,966 5,891 (21,140) 766,717
Commercial mortgage-backed securities 647,375 80 (88,005) 559,450
Total $ 3,635,352 $ 20,357 $ (247,850) $ 3,407,859
Held to Maturity
Residential mortgage-backed securities $ 573,636 $ 4,978 $ (44,093) $ 534,521
Commercial mortgage-backed securities 852,249 — (119,192) 733,057
Total $ 1,425,885 $ 4,978 $ (163,285) $ 1,267,578

Investment securities carried at $469.8 million and $373.3 million at March 31, 2026 and December 31, 2025, respectively, were pledged as collateral to secure public and trust deposits.

The amortized cost and estimated fair values of debt securities as of March 31, 2026, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because issuers may have the right to call, or borrowers may have the right to prepay, with or without call or prepayment penalties.

March 31, 2026
Available for Sale Held to Maturity
Amortized<br>Cost Estimated<br>Fair Value Amortized<br>Cost Estimated<br>Fair Value
(dollars in thousands)
Due in one year or less $ 4,876 $ 4,757 $ — $ —
Due from one year to five years 91,665 90,829 — —
Due from five years to ten years 214,061 207,411 — —
Due after ten years 827,537 691,465 — —
1,138,139 994,462 — —
Residential mortgage-backed securities(1) 727,537 707,660 543,048 500,972
Commercial mortgage-backed securities(1) 638,630 548,137 883,958 764,187
Collateralized mortgage obligations(1) 1,020,440 1,018,661 166,041 164,403
Total $ 3,524,746 $ 3,268,920 $ 1,593,047 $ 1,429,562

(1) Maturities for mortgage-backed securities and collateralized mortgage obligations are dependent upon the interest rate environment and prepayments on the

underlying loans.

The following table presents information related to gross realized gains and losses on the sales of securities for the periods presented:

Gross Realized Gains Gross Realized Losses Net Gains (Losses)
Three months ended (dollars in thousands)
March 31, 2026 $ — $ — $ —
March 31, 2025 663 (665) (2)

The following tables present the gross unrealized losses and estimated fair values of investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

March 31, 2026
Less than 12 months 12 months or longer Total
Number of Securities Estimated<br>Fair Value Unrealized<br>Losses Number of Securities Estimated<br>Fair Value Unrealized<br>Losses Estimated<br>Fair Value Unrealized<br>Losses
Available for Sale (dollars in thousands)
State and municipal securities 35 $ 76,711 $ (2,115) 252 $ 710,096 $ (136,860) $ 786,807 $ (138,975)
Corporate debt securities 5 29,028 (248) 18 117,244 (5,538) 146,272 (5,786)
Collateralized mortgage obligations 10 194,797 (870) 72 70,818 (7,557) 265,615 (8,427)
Residential mortgage-backed securities 13 183,590 (1,299) 72 194,320 (21,559) 377,910 (22,858)
Commercial mortgage-backed securities 6 72,888 (685) 128 460,784 (89,822) 533,672 (90,507)
Total available for sale 69 $ 557,014 $ (5,217) 542 $ 1,553,262 $ (261,336) $ 2,110,276 $ (266,553)
Held to Maturity
Residential mortgage-backed securities 3 $ 27,987 $ (287) 118 $ 249,899 $ (44,591) $ 277,886 $ (44,878)
Collateralized mortgage obligations 4 164,403 (1,638) — — — 164,403 (1,638)
Commercial mortgage-backed securities 1 34,452 (485) 60 729,735 (119,286) 764,187 (119,771)
Total held to maturity 8 $ 226,842 $ (2,410) 178 $ 979,634 $ (163,877) $ 1,206,476 $ (166,287)
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Less than 12 months 12 months or longer Total
Number of Securities Estimated<br>Fair Value Unrealized<br>Losses Number of Securities Estimated<br>Fair Value Unrealized<br>Losses Estimated<br>Fair Value Unrealized<br>Losses
Available for Sale (dollars in thousands)
State and municipal securities 3 $ 10,532 $ (127) 277 $ 776,597 $ (125,270) $ 787,129 $ (125,397)
Corporate debt securities 5 22,911 (329) 21 145,563 (5,751) 168,474 (6,080)
Collateralized mortgage obligations 1 19,806 (128) 72 74,446 (7,100) 94,252 (7,228)
Residential mortgage-backed securities 3 34,766 (97) 75 240,422 (21,043) 275,188 (21,140)
Commercial mortgage-backed securities 4 51,600 (155) 131 493,235 (87,850) 544,835 (88,005)
Total available for sale 16 $ 139,615 $ (836) 576 $ 1,730,263 $ (247,014) $ 1,869,878 $ (247,850)
Held to Maturity
Residential mortgage-backed securities — $ — $ — 120 $ 275,497 $ (44,093) $ 275,497 $ (44,093)
Commercial mortgage-backed securities — — — 60 733,057 (119,192) 733,057 (119,192)
Total held to maturity — $ — $ — 180 $ 1,008,554 $ (163,285) $ 1,008,554 $ (163,285)

The Corporation's collateralized mortgage obligations, residential mortgage-backed securities and commercial mortgage-backed securities have contractual terms that generally do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. The change in fair value of these securities is attributable to changes in interest rates and not credit quality. In addition, these securities have principal payments that are guaranteed by GSEs. Therefore, the Corporation did not record an ACL for these securities as of March 31, 2026 and December 31, 2025. The Corporation does not have the intent to sell, and does not believe it will more likely than not be required to sell, any of these securities prior to a recovery of their fair value to amortized cost.

Based on the payment status and management's evaluation of the Corporation's state and municipal securities, no ACL was required for these securities as of March 31, 2026 and December 31, 2025. The Corporation does not have the intent to sell, and does not believe it will more likely than not be required to sell, any of these securities prior to a recovery of their fair value to amortized cost, which may be at maturity.

The majority of the corporate debt securities were rated at or above investment grade as of March 31, 2026 and December 31, 2025. Based on the payment status, rating and management's evaluation of these securities, no ACL was required for corporate debt securities as of March 31, 2026 and December 31, 2025. The Corporation does not have the intent to sell, and does not believe it will more likely than not to be required to sell, any of these securities prior to a recovery of their fair value to amortized cost, which may be at maturity.

NOTE 5 - Loans and Allowance for Credit Losses

Loans and leases, net of unearned income

Loans and leases, net of unearned income, are summarized as follows:

March 31,<br>2026 December 31,<br>2025
(dollars in thousands)
Real estate - commercial mortgage $ 9,985,368 $ 9,820,944
Commercial and industrial 4,494,031 4,539,060
Real estate - residential mortgage 6,735,338 6,669,993
Real estate - home equity 1,253,192 1,242,831
Real estate - construction 876,498 970,298
Consumer 565,041 564,349
Leases and other loans(1) 356,877 337,409
Net loans $ 24,266,345 $ 24,144,884

(1) Includes unearned income of $41.3 million and $36.8 million as of March 31, 2026 and December 31, 2025, respectively.

Allowance for Credit Losses

The ACL consists of reserves against loans that have been evaluated collectively and individually for expected credit losses. The ACL represents an estimate of expected credit losses over the expected life of the loans as of the balance sheet date and is recorded as a reduction to net loans. The ACL is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries. The reserve for OBS credit exposures includes estimated losses on unfunded loan commitments, letters of credit and other OBS credit exposures.

The following table summarizes the ACL - loans balance and the reserve for OBS credit exposures balance:

March 31,<br>2026 December 31,<br>2025
(dollars in thousands)
ACL - loans $ 367,489 $ 364,462
Reserve for OBS credit exposures(1) $ 14,830 $ 14,972

(1) Included in other liabilities on the Consolidated Balance Sheets.

The following table presents the activity in the ACL - loans balances:

Three months ended March 31,
2026 2025
(dollars in thousands)
Balance at beginning of period $ 364,462 $ 379,156
Initial allowance for credit losses on purchased loans 3,351 —
Loans charged off (18,318) (20,034)
Recoveries of loans previously charged off 3,410 7,443
Net loans (charged off) recovered (14,908) (12,591)
Provision for credit losses(1) (2) 14,584 13,112
Balance at end of period $ 367,489 $ 379,677
Provision for OBS credit exposures(1) $ (142) $ 786
Reserve for OBS credit exposures $ 14,830 $ 14,947

(1) The sum of these amounts is reflected in the provision for credit losses in the Consolidated Statements of Income.

(2) Provision only includes the portion related to net loans.

The following table presents the activity in the ACL by portfolio segment:

Real Estate <br>Commercial<br>Mortgage Commercial and<br>Industrial Real Estate Residential<br>Mortgage Consumer and Real Estate - Home<br>Equity Real Estate<br>Construction Leases and other loans Total
(dollars in thousands)
Three months ended March 31, 2026
Balance at December 31, 2025 $ 157,302 $ 77,740 $ 88,961 $ 23,026 $ 10,896 $ 6,537 $ 364,462
Initial allowance for credit losses on purchased loans 2,778 494 — — 79 — 3,351
Loans charged off (4,102) (10,545) (391) (2,164) — (1,116) (18,318)
Recoveries of loans previously charged off 701 740 72 584 884 429 3,410
Net loans (charged off) recovered (3,401) (9,805) (319) (1,580) 884 (687) (14,908)
Provision for loan losses(1) (2) 2,363 10,549 1,218 2,748 (2,506) 212 14,584
Balance at March 31, 2026 $ 159,042 $ 78,978 $ 89,860 $ 24,194 $ 9,353 $ 6,062 $ 367,489
Three months ended March 31, 2025
Balance at December 31, 2024 $ 158,181 $ 92,212 $ 81,331 $ 19,397 $ 25,140 $ 2,895 $ 379,156
Loans charged off (12,106) (3,865) (343) (2,193) — (1,527) (20,034)
Recoveries of loans previously charged off 374 5,952 174 660 82 201 7,443
Net loans (charged off) recovered (11,732) 2,087 (169) (1,533) 82 (1,326) (12,591)
Provision for loan and lease losses(1) (2) 15,697 2,552 1,254 1,430 (9,322) 1,501 13,112
Balance at March 31, 2025 $ 162,146 $ 96,851 $ 82,416 $ 19,294 $ 15,900 $ 3,070 $ 379,677

(1) These amounts are reflected in the provision for credit loss in the Consolidated Statements of Income.

(2) Provision included in the table only includes the portion related to net loans.

The ACL may include qualitative adjustments intended to capture the impact of uncertainties not reflected in the quantitative models. In determining qualitative adjustments, management considers changes in national, regional, and local economic and business conditions and their impact on the lending environment, including underwriting standards and other factors affecting credit losses over the remaining life of each loan.

Collateral-Dependent Loans

A loan or a lease is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans and leases deemed collateral-dependent, the Corporation elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent loans or leases consists of various types of real estate, including residential properties, commercial properties, such as retail centers, office buildings, and lodging, agricultural land, and vacant land. Commercial and industrial loans may also be secured by real estate.

All loans individually evaluated for impairment are measured for losses on a quarterly basis. As of March 31, 2026 and December 31, 2025, substantially all of the Corporation's individually evaluated loans with total commitments greater than or equal to $1.0 million were measured based on the estimated fair value of each loan’s collateral, if any.

As of March 31, 2026 and December 31, 2025, approximately 94% and 88%, respectively, of loans evaluated individually for impairment with principal balances greater than or equal to $1.0 million, whose primary collateral consisted of real estate, were measured at estimated fair value using appraisals performed by state certified third-party appraisers that had been updated in the preceding 12 months, or actual fair value based on active fully-executed letters of intent to purchase or agreements of sale.

Non-accrual Loans

The following table presents total non-accrual loans, by class segment:

March 31, 2026 December 31, 2025
With a Related Allowance Without a Related Allowance Total With a Related Allowance Without a Related Allowance Total
(dollars in thousands)
Real estate - commercial mortgage $ 19,888 $ 39,393 $ 59,281 $ 27,437 $ 44,613 $ 72,050
Commercial and industrial 22,635 22,735 45,370 19,822 24,281 44,103
Real estate - residential mortgage 26,315 2,328 28,643 25,423 2,328 27,751
Real estate - home equity 7,307 — 7,307 7,126 — 7,126
Real estate - construction 1,406 — 1,406 1,661 — 1,661
Consumer 3 — 3 3 — 3
Leases and other loans 25 — 25 32 1,146 1,178
Total $ 77,579 $ 64,456 $ 142,035 $ 81,504 $ 72,368 $ 153,872

As of March 31, 2026 and December 31, 2025, there were $64.5 million and $72.4 million, respectively, of non-accrual loans that did not have a specific valuation allowance within the ACL. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or the loans were previously charged down to realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary.

Asset Quality

Maintaining an appropriate ACL is dependent on various factors, including the ability to identify potential problem loans in a timely manner. For commercial construction loans, commercial and industrial loans, commercial real estate loans and leases and other loans, an internal risk rating process is used. The Corporation believes that internal risk ratings are the most relevant credit quality indicator for these types of loans. The migration of loans through the various internal risk categories is a significant component of the ACL methodology for these loans, which bases the PD on this migration. Assigning risk ratings involves judgment. The Corporation's loan review officers provide a separate assessment of risk rating accuracy. Risk ratings may be changed based on the ongoing monitoring procedures performed by loan officers or credit administration staff, or if specific loan review assessments identify a deterioration or an improvement in a loan.

The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the current period:

March 31, 2026
(dollars in thousands)
Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans
Amortized Amortized
2026 2025 2024 2023 2022 Prior Cost Basis Cost Basis Total
Real estate - commercial mortgage
Pass $ 300,242 $ 869,869 $ 807,250 $ 1,099,242 $ 1,149,326 $ 4,774,434 $ 107,601 $ — $ 9,107,964
Special Mention 450 15,438 12,887 26,014 63,069 202,488 760 — 321,106
Substandard or Lower — 9,097 14,166 79,832 98,988 353,150 1,065 — 556,298
Total real estate - commercial mortgage 300,692 894,404 834,303 1,205,088 1,311,383 5,330,072 109,426 — 9,985,368
Real estate - commercial mortgage
Current period gross charge-offs — — (509) (2,507) (485) (601) — — (4,102)
Commercial and industrial
Pass 117,066 532,389 324,364 324,401 440,768 941,550 1,364,909 6,165 4,051,612
Special Mention 678 5,127 12,686 10,695 11,337 53,713 90,629 1,445 186,310
Substandard or Lower 768 10,224 9,743 20,169 23,685 88,625 95,139 7,756 256,109
Total commercial and industrial 118,512 547,740 346,793 355,265 475,790 1,083,888 1,550,677 15,366 4,494,031
Commercial and industrial
Current period gross charge-offs — (60) (25) (692) (207) (1,790) (7,771) — (10,545)
Real estate - construction(1)
Pass 10,038 99,982 197,642 165,261 7,942 65,103 42,734 800 589,502
Special Mention — 555 1,455 — 21,289 2,750 8,722 — 34,771
Substandard or Lower — — — 912 7,707 231 — — 8,850
Total real estate - construction 10,038 100,537 199,097 166,173 36,938 68,084 51,456 800 633,123
Real estate - construction(1)
Current period gross charge-offs — — — — — — — — —
Leases and other loans
Pass 95,321 111,761 33,325 64,624 27,291 14,085 — — 346,407
Special Mention — 216 370 791 1,197 604 — — 3,178
Substandard or Lower — 640 2,635 1,846 1,824 347 — — 7,292
Total leases and other loans 95,321 112,617 36,330 67,261 30,312 15,036 — — 356,877
Leases and other loans
Current period gross charge-offs (232) (380) (82) (62) (72) (288) — — (1,116)
Total
Pass 522,667 1,614,001 1,362,581 1,653,528 1,625,327 5,795,172 1,515,244 6,965 14,095,485
Special Mention 1,128 21,336 27,398 37,500 96,892 259,555 100,111 1,445 545,365
Substandard or Lower 768 19,961 26,544 102,759 132,204 442,353 96,204 7,756 828,549
Total $ 524,563 $ 1,655,298 $ 1,416,523 $ 1,793,787 $ 1,854,423 $ 6,497,080 $ 1,711,559 $ 16,166 $ 15,469,399

(1) Excludes non-commercial real estate - construction.

Total criticized and classified loans decreased $83.5 million, or 5.7%, compared to December 31, 2025.

For a description of the Corporation's internal risk rating categories, see "Note 1 - Summary of Significant Accounting Policies" under the heading "Allowance for Credit Losses" in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2025.

The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the prior period:

December 31, 2025
(dollars in thousands)
Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans
Amortized Amortized
2025 2024 2023 2022 2021 Prior Cost Basis Cost Basis Total
Real estate - commercial mortgage
Pass $ 885,851 $ 769,334 $ 1,120,033 $ 1,127,104 $ 1,185,319 $ 3,712,279 $ 76,848 $ — $ 8,876,768
Special Mention 9,425 19,207 42,649 52,546 116,763 171,308 787 — 412,685
Substandard or Lower 2,346 15,154 90,747 111,135 108,871 202,185 1,053 — 531,491
Total real estate - commercial mortgage 897,622 803,695 1,253,429 1,290,785 1,410,953 4,085,772 78,688 — 9,820,944
Real estate - commercial mortgage
Current period gross charge-offs — — (1,315) (20,232) (7,990) (6,981) — — (36,518)
Commercial and industrial
Pass 559,804 340,662 351,330 449,474 205,593 766,308 1,398,989 3,092 4,075,252
Special Mention 11,490 12,287 18,377 12,305 4,354 52,719 101,311 7,179 220,022
Substandard or Lower 1,843 10,114 21,089 19,238 8,898 73,671 104,498 4,435 243,786
Total commercial and industrial 573,137 363,063 390,796 481,017 218,845 892,698 1,604,798 14,706 4,539,060
Commercial and industrial
Current period gross charge-offs (75) (3,317) (4,822) (4,936) (2,410) (4,449) (778) — (20,787)
Real estate - construction(1)
Pass 100,320 236,045 190,065 40,427 24,082 46,156 50,902 — 687,997
Special Mention 555 1,196 — 21,286 3,381 2,750 1,248 — 30,416
Substandard or Lower — — 916 7,718 256 243 9 — 9,142
Total real estate - construction 100,875 237,241 190,981 69,431 27,719 49,149 52,159 — 727,555
Real estate - construction(1)
Current period gross charge-offs — — — (5,286) — (100) — — (5,386)
Leases and other loans
Pass 174,718 35,955 70,152 29,832 8,185 8,665 — — 327,507
Special Mention 432 459 430 1,305 460 329 — — 3,415
Substandard or Lower 185 2,080 955 3,034 196 37 — — 6,487
Total leases and other loans 175,335 38,494 71,537 34,171 8,841 9,031 — — 337,409
Leases and other loans
Current period gross charge-offs (2,092) (1,153) (506) (289) (244) (1,353) — — (5,637)
Total
Pass 1,720,693 1,381,996 1,731,580 1,646,837 1,423,179 4,533,408 1,526,739 3,092 13,967,524
Special Mention 21,902 33,149 61,456 87,442 124,958 227,106 103,346 7,179 666,538
Substandard or Lower 4,374 27,348 113,707 141,125 118,221 276,136 105,560 4,435 790,906
Total $ 1,746,969 $ 1,442,493 $ 1,906,743 $ 1,875,404 $ 1,666,358 $ 5,036,650 $ 1,735,645 $ 14,706 $ 15,424,968

(1) Excludes non-commercial real estate - construction.

The Corporation considers the performance of the loan portfolio and its impact on the ACL. The Corporation does not assign internal risk ratings to smaller balance, homogeneous loans, such as home equity loans, residential mortgage loans, construction loans to individuals secured by residential real estate and consumer loans. For these loans, the most relevant credit quality indicator is delinquency status and the Corporation evaluates credit quality based on the aging status of the loan. The following tables present the amortized cost of these loans based on payment activity, by origination year, for the periods shown:

March 31, 2026
(dollars in thousands)
Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans
Amortized Amortized
2026 2025 2024 2023 2022 Prior Cost Basis Cost Basis Total
Real estate - residential mortgage
Performing $ 161,733 $ 754,156 $ 517,348 $ 640,928 $ 1,390,645 $ 3,222,702 $ — $ — $ 6,687,512
Non-performing — 72 1,132 2,844 10,752 33,026 — — 47,826
Total real estate - residential mortgage 161,733 754,228 518,480 643,772 1,401,397 3,255,728 — — 6,735,338
Real estate - residential mortgage
Current period gross charge-offs — — (24) (84) (199) (84) — — (391)
Consumer and real estate - home equity
Performing 253,681 13,692 23,042 66,983 127,457 255,098 1,058,095 7,846 1,805,894
Non-performing — 220 629 297 1,050 6,433 2,632 1,078 12,339
Total consumer and real estate - home equity 253,681 13,912 23,671 67,280 128,507 261,531 1,060,727 8,924 1,818,233
Consumer and real estate - home equity
Current period gross charge-offs — (74) (111) (292) (165) (1,425) (97) — (2,164)
Construction - residential
Performing 31,261 163,726 44,421 959 8 — — — 240,375
Non-performing — — 1,436 — 1,564 — — — 3,000
Total construction - residential 31,261 163,726 45,857 959 1,572 — — — 243,375
Construction - residential
Current period gross charge-offs — — — — — — — — —
Total
Performing 446,675 931,574 584,811 708,870 1,518,110 3,477,800 1,058,095 7,846 8,733,781
Non-performing — 292 3,197 3,141 13,366 39,459 2,632 1,078 63,165
Total $ 446,675 $ 931,866 $ 588,008 $ 712,011 $ 1,531,476 $ 3,517,259 $ 1,060,727 $ 8,924 $ 8,796,946 December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(dollars in thousands)
Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans
Amortized Amortized
2025 2024 2023 2022 2021 Prior Cost Basis Cost Basis Total
Real estate - residential mortgage
Performing $ 724,505 $ 536,668 $ 662,479 $ 1,412,885 $ 1,603,854 $ 1,684,033 $ — $ — $ 6,624,424
Non-performing 134 645 2,102 9,752 4,961 27,975 — — 45,569
Total real estate - residential mortgage 724,639 537,313 664,581 1,422,637 1,608,815 1,712,008 — — 6,669,993
Real estate - residential mortgage
Current period gross charge-offs — (19) (201) (294) (161) (378) — — (1,053)
Consumer and real estate - home equity
Performing 231,952 23,963 74,129 140,759 43,561 201,571 1,042,448 36,924 1,795,307
Non-performing 97 84 143 409 568 4,992 2,497 3,083 11,873
Total consumer and real estate - home equity 232,049 24,047 74,272 141,168 44,129 206,563 1,044,945 40,007 1,807,180
Consumer and real estate - home equity
Current period gross charge-offs (215) (262) (998) (1,556) (708) (4,505) (573) — (8,817)
Construction - residential
Performing 164,473 72,583 1,395 2,280 — — — — 240,731
Non-performing — 606 — 1,406 — — — — 2,012
Total construction - residential 164,473 73,189 1,395 3,686 — — — — 242,743
Construction - residential
Current period gross charge-offs — — — — — — — — —
Total
Performing 1,120,930 633,214 738,003 1,555,924 1,647,415 1,885,604 1,042,448 36,924 8,660,462
Non-performing 231 1,335 2,245 11,567 5,529 32,967 2,497 3,083 59,454
Total $ 1,121,161 $ 634,549 $ 740,248 $ 1,567,491 $ 1,652,944 $ 1,918,571 $ 1,044,945 $ 40,007 $ 8,719,916

The following table presents non-performing assets:

March 31,<br>2026 December 31,<br>2025
(dollars in thousands)
Non-accrual loans $ 142,035 $ 153,872
Loans 90 days or more past due and still accruing 33,816 29,924
Total non-performing loans 175,851 183,796
OREO(1) 1,648 1,365
Total non-performing assets $ 177,499 $ 185,161

(1) Excludes $19.0 million and $19.1 million of residential mortgage properties for which formal foreclosure proceedings were in process as of March 31, 2026 and December 31, 2025, respectively.

The following tables present the aging of the amortized cost basis of loans, by class segment:

30-59 Days Past<br>Due 60-89<br>Days Past<br>Due ≥ 90 Days<br>Past Due<br>and<br>Accruing Non-<br>accrual Current Total
(dollars in thousands)
March 31, 2026
Real estate - commercial mortgage $ 22,488 $ 23,587 $ 5,609 $ 59,281 $ 9,874,403 $ 9,985,368
Commercial and industrial 9,940 7,544 2,389 45,370 4,428,788 4,494,031
Real estate - residential mortgage 42,516 10,604 19,183 28,643 6,634,392 6,735,338
Real estate - home equity 12,290 1,694 4,160 7,307 1,227,741 1,253,192
Real estate - construction 8,051 2,656 1,594 1,406 862,791 876,498
Consumer 4,728 1,627 869 3 557,814 565,041
Leases and other loans(1) 110 132 12 25 356,598 356,877
Total $ 100,123 $ 47,844 $ 33,816 $ 142,035 $ 23,942,527 $ 24,266,345

(1) Includes unearned income.

30-59 Days Past<br>Due 60-89<br>Days Past<br>Due ≥ 90 Days<br>Past Due<br>and<br>Accruing Non-<br>accrual Current Total
(dollars in thousands)
December 31, 2025
Real estate - commercial mortgage $ 19,762 $ 17,757 $ 2,931 $ 72,050 $ 9,708,444 $ 9,820,944
Commercial and industrial 5,023 4,563 3,653 44,103 4,481,718 4,539,060
Real estate - residential mortgage 48,246 7,912 17,818 27,751 6,568,266 6,669,993
Real estate - home equity 15,646 1,417 3,958 7,126 1,214,684 1,242,831
Real estate - construction 3,698 2,555 606 1,661 961,778 970,298
Consumer 6,334 1,604 788 3 555,620 564,349
Leases and other loans(1) 160 193 170 1,178 335,708 337,409
Total $ 98,869 $ 36,001 $ 29,924 $ 153,872 $ 23,826,218 $ 24,144,884

(1) Includes unearned income.

Loan Modifications to Borrowers Experiencing Financial Difficulty

The Corporation modifies loans by providing a concession when deemed appropriate. Depending on the circumstances, a term extension, interest rate reduction or principal forgiveness may be granted. In certain instances, a combination of concessions may be provided to a borrower.

When principal forgiveness is provided, the amount of principal forgiven is deemed to be uncollectible and the amortized cost basis of the loan is reduced by the amount of the forgiven portion, with a corresponding reduction to the ACL.

The following table presents the amortized cost basis of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:

Term Extension
2026 2025
Amortized Cost Basis % of Class of Financing Receivable Amortized Cost Basis % of Class of Financing Receivable
(dollars in thousands)
Three months ended March 31
Real estate - commercial mortgage $ 47 — % $ 111 — %
Commercial and industrial 1,179 0.03 3,937 0.09
Real estate - residential mortgage 2,226 0.03 2,400 0.04
Real estate - home equity — — 467 0.04
Total $ 3,452 $ 6,915
Interest Rate Reduction
--- --- --- --- --- --- --- --- ---
2026 2025
Amortized Cost Basis % of Class of Financing Receivable Amortized Cost Basis % of Class of Financing Receivable
(dollars in thousands)
Three months ended March 31
Real estate - residential mortgage $ 560 0.01 % $ — — %
Interest Rate Reduction and Term Extension
--- --- --- --- --- --- --- --- ---
2026 2025
Amortized Cost Basis % of Class of Financing Receivable Amortized Cost Basis % of Class of Financing Receivable
(dollars in thousands)
Three months ended March 31
Real estate - residential mortgage $ 1,608 0.02 % $ 1,389 0.02 %

The following table presents the financial effect of the modifications made to borrowers experiencing financial difficulty:

Term Extension
Financial Effect
Three months ended March 31, 2026
Real estate - commercial mortgage Added a weighted-average 0.67 years to the life of loans, which reduced monthly payment amounts for the borrowers.
Commercial and industrial Added a weighted-average 0.99 years to the life of loans, which reduced monthly payment amounts for the borrowers.
Real estate - residential mortgage Added a weighted-average 6.63 years to the life of loans, which reduced monthly payment amounts for the borrowers.
Three months ended March 31, 2025
Real estate - commercial mortgage Added a weighted-average 1.00 year to the life of loans, which reduced monthly payment amounts for the borrowers.
Commercial and industrial Added a weighted-average 0.92 years to the life of loans, which reduced monthly payment amounts for the borrowers.
Real estate - residential mortgage Added a weighted-average 8.78 years to the life of loans, which reduced monthly payment amounts for the borrowers.
Real estate - home equity Added a weighted-average 9.27 years to the life of loans, which reduced monthly payment amounts for the borrowers. ​
--- Interest Rate Reduction
--- ---
Financial Effect
Three months ended March 31, 2026
Real estate - residential mortgage Reduced weighted-average interest rate from 3.18% to 1.55%
Three months ended March 31, 2025
Real estate - residential mortgage Reduced weighted-average interest rate from 4.27% to 2.27%

During the three months ended March 31, 2026 and 2025, there were no loans modified due to financial difficulty where there was a principal balance forgiveness.

The following table presents the performance of loans that have been modified due to financial difficulty in the previous 12 months:

30-89 90+ Total
Days Past Past Due Non- Past
Current Due and Accruing Accrual Due
March 31, 2026 (dollars in thousands)
Real estate - commercial mortgage $ 69,170 $ 2,662 $ — $ 579 $ 3,241
Commercial and industrial 19,724 5,465 946 2,969 9,380
Real estate - residential mortgage 4,548 442 341 3,704 4,487
Real estate - home equity — — 36 — 36
Real estate - construction 10,898 19,429 — — 19,429
Total $ 104,340 $ 27,998 $ 1,323 $ 7,252 $ 36,573

There were no commitments to lend additional funds to borrowers with loan modifications as a result of financial difficulty as of March 31, 2026.

NOTE 6 – Mortgage Servicing Rights

The following table summarizes the changes in MSRs, which are included in other assets on the Consolidated Balance Sheets, with adjustments to the carrying value included in mortgage banking income on the Consolidated Statements of Income:

Three months ended March 31,
2026 2025
(dollars in thousands)
Amortized cost:
Balance at beginning of period $ 29,734 $ 30,691
Originations of MSRs 1,544 701
Amortization (1,110) (1,094)
Balance at end of period $ 30,168 $ 30,298
Estimated fair value of MSRs at end of period $ 52,856 $ 51,277

MSRs represent the economic value of contractual rights to service mortgage loans that have been sold. The total portfolio of mortgage loans serviced by the Corporation for unrelated third parties was $4.1 billion and $4.0 billion as of March 31, 2026 and December 31, 2025, respectively. Actual and expected prepayments of the underlying mortgage loans can impact the fair values of the MSRs. The Corporation accounts for MSRs at the lower of amortized cost or fair value.

The fair value of MSRs is estimated by discounting the estimated cash flows from servicing income, net of expense, over the expected life of the underlying loans at a discount rate commensurate with the risk associated with these assets. Expected life is based on the contractual terms of the loans, as adjusted for prepayment projections. The fair values of MSRs were $52.9 million and $49.9 million as of March 31, 2026 and December 31, 2025, respectively. Based on its fair value analysis as of March 31, 2026, the Corporation determined that no valuation allowance was required as of March 31, 2026.

NOTE 7 – Derivative Financial Instruments

The Corporation uses derivatives to manage its exposure to certain market risks, including interest rate and foreign currency risks, and to assist customers with their risk management objectives. Certain of the Corporation's outstanding derivative contracts are designated as hedges, and none are entered into for speculative purposes. The Corporation enters into derivative contracts that are intended to economically hedge certain of its risks, even if hedge accounting does not apply or the Corporation elects not to apply hedge accounting.

For additional information on our derivative accounting policies see "Note 1 - Summary of Significant Accounting Policies" under the heading "Derivative Financial Instruments" in our Annual Report on Form 10-K for the year ended December 31, 2025.

The following table presents a summary of the notional amounts and fair values of derivative financial instruments:

March 31, 2026 December 31, 2025
Notional<br>Amount Asset<br>(Liability)<br>Fair Value Notional<br>Amount Asset<br>(Liability)<br>Fair Value
(dollars in thousands)
Interest Rate Locks with Customers
Positive fair values $ 210,392 $ 653 $ 203,580 $ 563
Negative fair values 8,216 (54) 926 (6)
Forward Commitments
Positive fair values 55,750 532 — —
Negative fair values — — 71,207 (156)
Interest Rate Derivatives with Customers(1)
Positive fair values 1,985,186 27,847 2,118,722 39,236
Negative fair values 2,878,969 (135,642) 2,747,758 (130,521)
Interest Rate Derivatives with Dealer Counterparties
Positive fair values 2,878,969 81,674 2,747,758 77,528
Negative fair values 1,985,186 (28,213) 2,118,722 (39,606)
Interest Rate Derivatives used in Cash Flow Hedges
Positive fair values 2,700,000 6,048 2,950,000 11,489
Negative fair values 450,000 (1,425) — —
Foreign Exchange Contracts with Customers
Positive fair values 12,704 166 1,239 8
Negative fair values 7,879 (438) 13,007 (714)
Foreign Exchange Contracts with Correspondent Banks
Positive fair values 11,000 346 14,424 883
Negative fair values 11,264 (89) 1,870 (6)

(1) Fair values are net of a valuation allowance of $366 thousand as of March 31, 2026 and December 31, 2025.

The following table presents the effect of cash flow hedge accounting on AOCI:

Amount of Gain (Loss) Recognized in OCI on Derivative Amount of Gain (Loss) Recognized in OCI Included Component Amount of Gain (Loss) Recognized in OCI Excluded Component Location of Gain (Loss) Recognized from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income Included Component Amount of Gain (Loss) Reclassified from AOCI into Income Excluded Component
(dollars in thousands)
Three months ended March 31, 2026
Interest Rate Products $ (7,132) $ (7,132) $ — Interest Income $ (3,721) $ (3,721) $ —
Interest Rate Products — — — Interest Expense (232) (232) —
Total $ (7,132) $ (7,132) $ — $ (3,953) $ (3,953) $ —
Three months ended March 31, 2025
Interest Rate Products $ 3,541 $ 3,541 $ — Interest Income $ (4,491) $ (4,491) $ —
Interest Rate Products (1,260) (1,260) — Interest Expense (53) (53) —
Total $ 2,281 $ 2,281 $ — $ (4,544) $ (4,544) $ —

The following table presents the effect of fair value and cash flow hedge accounting on the income statement:

Consolidated Statements of Income Classification
2026 2025
Interest Income Interest Expense Interest Income Interest Expense
(dollars in thousands)
Three months ended March 31
Total amounts of income line items presented in the Consolidated Statements of Income in which the effects of fair value or cash flow hedges are recorded $ (3,721) $ (232) $ (4,491) $ (53)
The effects of fair value and cash flow hedging:
Amount of loss reclassified from AOCI into income (3,721) (232) (4,491) (53)
Interest rate derivatives:
Amount of (loss) gain reclassified from AOCI into income as a result of a forecasted transaction that is no longer probable of occurring — — — —
Amount of loss reclassified from AOCI into income - included component (3,721) (232) (4,491) (53)
Amount of (loss) gain reclassified from AOCI into income - excluded component — — — —

During the next twelve months, the Corporation estimates that an additional $4.4 million will be reclassified as a decrease to net interest income.

The following table presents the fair value gains (losses) on derivative financial instruments:

Consolidated Statements of Income Classification Three months ended March 31,
2026 2025
(dollars in thousands)
Mortgage banking derivatives(1) Mortgage banking income $ 730 $ 802
Interest rate derivatives Other income (38) 149
Foreign exchange contracts Other income (186) 170
Net fair value gains (losses) on derivative financial instruments $ 506 $ 1,121

(1) Includes interest rate locks with customers and forward commitments.

The Corporation has elected to measure mortgage loans held for sale at fair value. The following table presents mortgage loans held for sale and the impact of the fair value election on the Consolidated Financial Statements:

March 31,<br>2026 December 31,<br>2025
(dollars in thousands)
Amortized cost(1) $ 11,824 $ 16,005
Fair value 11,887 16,316

(1) Cost basis of mortgage loans held for sale represents the unpaid principal balance.

Losses and gains related to changes in fair values of mortgage loans held for sale were a loss of $0.2 million for the three months ended March 31, 2026 compared to a gain of $25.7 thousand for the three months ended March 31, 2025. Gains and losses are recorded on the Consolidated Statements of Income as adjustments to mortgage banking income.

Balance Sheet Offsetting

The fair values of interest rate derivative agreements and foreign exchange contracts the Corporation enters into with customers and dealer counterparties may be eligible for offset on the Consolidated Balance Sheets if they are subject to master netting arrangements or similar agreements. The Corporation has elected to net its financial assets and liabilities designated as interest rate derivatives when offsetting is permitted. The following table presents the Corporation's financial instruments that are eligible for offset, and the effects of offsetting, on the Consolidated Balance Sheets:

Gross Amounts Gross Amounts Not Offset
Recognized on the Consolidated
on the Balance Sheets
Consolidated Financial Cash Net
Balance Sheets Instruments(1) Collateral(2) Amount
(dollars in thousands)
March 31, 2026
Interest rate derivative assets $ 115,569 $ (16,046) $ — $ 99,523
Foreign exchange derivative assets with correspondent banks 346 (346) — —
Total $ 115,915 $ (16,392) $ — $ 99,523
Interest rate derivative liabilities $ 165,280 $ (20,669) $ (54,723) $ 89,888
Foreign exchange derivative liabilities with correspondent banks 89 (346) — (257)
Total $ 165,369 $ (21,015) $ (54,723) $ 89,631
December 31, 2025
Interest rate derivative assets $ 128,253 $ (18,829) $ — $ 109,424
Foreign exchange derivative assets with correspondent banks 883 (883) — —
Total $ 129,136 $ (19,712) $ — $ 109,424
Interest rate derivative liabilities $ 170,127 $ (30,318) $ (54,200) $ 85,609
Foreign exchange derivative liabilities with correspondent banks 6 (883) — (877)
Total $ 170,133 $ (31,201) $ (54,200) $ 84,732

(1) For interest rate derivative assets, amounts represent any derivative liability fair values that could be offset in the event of counterparty or customer default.

For interest rate derivative liabilities, amounts represent any derivative asset fair values that could be offset in the event of counterparty or customer default.

(2) Amounts represent cash collateral received from the counterparty or posted by the Corporation on interest rate derivative transactions and foreign exchange

contracts with financial institution counterparties. Interest rate derivatives with customers are collateralized by the same collateral securing the underlying

loans to those borrowers. Cash and securities collateral amounts are included in the table only to the extent of the net derivative fair values.

Cash Flow Hedge Terminations

In January 2023, the Corporation terminated interest rate derivatives designated as cash flow hedges with a combined notional amount of $1.0 billion. As the hedged transaction continues to be probable, the unrealized losses that have been recorded in AOCI are recognized as a reduction to interest income, including fees, when the previously forecasted hedged item affects earnings in future periods. During the three months ended March 31, 2026, $3.2 million of these unrealized losses have been reclassified as a reduction of interest income on loans, including fees, on the Consolidated Statements of Income. During the year ended December 31, 2025, $13.0 million of these unrealized losses have been reclassified as a reduction of interest income on loans, including fees, on the Consolidated Statements of Income.

NOTE 8 – Accumulated Other Comprehensive Loss

The following table presents the components of OCI:

Before-Tax Amount Tax Effect Net of Tax Amount
(dollars in thousands)
Three months ended March 31, 2026
Net unrealized losses on investment securities $ (28,333) $ 6,650 $ (21,683)
Amortization of net unrealized gains on AFS investment securities transferred to HTM(1) 1,616 (379) 1,237
Net unrealized holding losses arising during the period on interest rate derivatives used in cash flow hedges (7,132) 1,178 (5,954)
Reclassification adjustment for net change realized in net income on interest rate derivatives used in cash flow hedges 3,953 (653) 3,300
Amortization of net unrecognized pension and postretirement items(2) (137) 32 (105)
Total Other Comprehensive Loss $ (30,033) $ 6,828 $ (23,205)
Three months ended March 31, 2025
Net unrealized gains on investment securities $ 12,630 $ (2,861) $ 9,769
Reclassification adjustment for securities net change included in net income(3) 2 — 2
Amortization of net unrealized gains on AFS investment securities transferred to HTM(1) 1,716 (388) 1,328
Net unrealized holding gains arising during the period on interest rate derivatives used in cash flow hedges 2,281 (517) 1,764
Reclassification adjustment for net change realized in net income on interest rate derivatives used in cash flow hedges 4,544 (1,029) 3,515
Amortization of net unrecognized pension and postretirement items(2) (136) 30 (106)
Total Other Comprehensive Income $ 21,037 $ (4,765) $ 16,272

(1) Amounts reclassified out of AOCI. Before-tax amounts included in "Interest Income" on the Consolidated Statements of Income.

(2) Amounts reclassified out of AOCI. Before-tax amounts included in "Salaries and employee benefits" on the Consolidated Statements of Income.

(3) Amounts reclassified out of AOCI. Before-tax amounts included in "Investment securities (losses) gains, net" on the Consolidated Statements of Income.

The following table presents changes in each component of AOCI, net of tax:

Unrealized Gains (Losses) on Investment Securities Net Unrealized Gains (Losses) on Interest Rate Derivatives used in Cash Flow Hedges Unrecognized Pension and Postretirement Plan Income (Costs) Total
(dollars in thousands)
Three months ended March 31, 2026
Balance at December 31, 2025 $ (205,701) $ 395 $ 6,624 $ (198,682)
OCI before reclassifications (21,683) (5,954) — (27,637)
Amounts reclassified from AOCI — 3,300 (105) 3,195
Amortization of net unrealized gains on AFS investment securities transferred to HTM 1,237 — — 1,237
Balance at March 31, 2026 $ (226,147) $ (2,259) $ 6,519 $ (221,887)
Three months ended March 31, 2025
Balance at December 31, 2024 $ (275,989) $ (16,052) $ 4,222 $ (287,819)
OCI before reclassifications 9,769 1,764 — 11,533
Amounts reclassified from AOCI 2 3,515 (106) 3,411
Amortization of net unrealized gains on AFS investment securities transferred to HTM 1,328 — — 1,328
Balance at March 31, 2025 $ (264,890) $ (10,773) $ 4,116 $ (271,547)

NOTE 9 – Fair Value Measurements

FASB ASC Topic 820 establishes a fair value hierarchy for the inputs to valuation techniques used to measure assets and liabilities at fair value using the following three categories (from highest to lowest priority):

•Level 1 – Inputs that represent quoted prices for identical instruments in active markets.

•Level 2 – Inputs that represent quoted prices for similar instruments in active markets or quoted prices for identical instruments in non-active markets. Also includes valuation techniques whose inputs are derived principally from observable market data other than quoted prices, such as interest rates or other market-corroborated means.

•Level 3 – Inputs that are largely unobservable, as little or no market data exists for the instrument being valued.

All assets and liabilities measured at fair value on both a recurring and nonrecurring basis have been categorized into the above three levels. The following tables present assets and liabilities measured at fair value on a recurring basis and reported on the Consolidated Balance Sheets:

March 31, 2026
Level 1 Level 2 Level 3 Total
(dollars in thousands)
Loans held for sale $ — $ 11,887 $ — $ 11,887
AFS investment securities:
State and municipal securities — 797,981 — 797,981
Corporate debt securities — 196,481 — 196,481
Collateralized mortgage obligations — 1,018,661 — 1,018,661
Residential mortgage-backed securities — 707,660 — 707,660
Commercial mortgage-backed securities — 548,137 — 548,137
Total AFS investment securities — 3,268,920 — 3,268,920
Other assets:
Investments held in Rabbi Trust 39,697 — — 39,697
Derivative assets 512 116,754 — 117,266
Total assets $ 40,209 $ 3,397,561 $ — $ 3,437,770
Other liabilities:
Deferred compensation liabilities $ 39,697 $ — $ — $ 39,697
Derivative liabilities 527 165,334 — 165,861
Total liabilities $ 40,224 $ 165,334 $ — $ 205,558
December 31, 2025
--- --- --- --- --- --- --- --- ---
Level 1 Level 2 Level 3 Total
(dollars in thousands)
Loans held for sale $ — $ 16,316 $ — $ 16,316
AFS investment securities:
State and municipal securities — 826,693 — 826,693
Corporate debt securities — 214,921 — 214,921
Collateralized mortgage obligations — 1,040,078 — 1,040,078
Residential mortgage-backed securities — 766,717 — 766,717
Commercial mortgage-backed securities — 559,450 — 559,450
Total AFS investment securities — 3,407,859 — 3,407,859
Other assets:
Investments held in Rabbi Trust 39,395 — — 39,395
Derivative assets 891 128,816 — 129,707
Total assets $ 40,286 $ 3,552,991 $ — $ 3,593,277
Other liabilities:
Deferred compensation liabilities $ 39,395 $ — $ — $ 39,395
Derivative liabilities 720 170,289 — 171,009
Total liabilities $ 40,115 $ 170,289 $ — $ 210,404

The valuation techniques used to measure fair value for the items in the preceding tables are as follows:

Loans held for sale – This category includes mortgage loans held for sale that are measured at fair value. Fair values as of March 31, 2026 and December 31, 2025 were measured at the price that secondary market investors were offering for loans with similar characteristics.

AFS investment securities – Included in this asset category are debt securities. Level 2 investment securities are valued by a third-party pricing service. The pricing service uses pricing models that vary based on asset class and incorporate available market information, including quoted prices of investment securities with similar characteristics. Because many fixed income securities do not trade on a daily basis, pricing models use available information, as applicable, through processes such as benchmark yield curves, benchmarking of like securities, sector groupings and matrix pricing.

Standard market inputs include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data, including market research publications. For certain security types, additional inputs may be used or some of the standard market inputs may not be applicable.

•State and municipal securities/Collateralized mortgage obligations/Residential mortgage-backed securities/Commercial mortgage-backed securities – These debt securities are classified as Level 2. Fair values are determined by a third-party pricing service, as detailed above.

•Corporate debt securities – These securities are classified as Level 2. This category consists of subordinated debt and senior debt issued by financial institutions ($189.1 million at March 31, 2026 and $207.5 million at December 31, 2025) and other corporate debt issued by non-financial institutions ($7.4 million at March 31, 2026 and December 31, 2025). The fair values for these corporate debt securities are determined by a third-party pricing service as detailed above.

Investments held in Rabbi Trust – This category consists of mutual funds that are held in trust for employee deferred compensation plans that the Corporation has elected to measure at fair value. Shares of mutual funds are valued based on net asset value, which represent quoted market prices for the underlying shares held in the mutual funds, and as such, are classified as Level 1.

Derivative assets – Fair value of foreign currency exchange contracts are classified as Level 1 assets ($0.5 million and $0.9 million at March 31, 2026 and December 31, 2025, respectively). The foreign exchange prices used to measure these items at fair value are based on quoted prices for identical instruments in active markets.

Level 2 assets represent the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors ($1.2 million and $0.6 million at March 31, 2026 and December 31, 2025, respectively) and the fair value of interest rate derivatives ($115.6 million at March 31, 2026 and $128.3 million at December 31, 2025). The fair values of the interest rate locks, forward commitments and interest rate derivatives represent the amounts that would be required to settle the derivative financial instruments at the balance sheet date. See "Note 7 - Derivative Financial Instruments," for additional information.

Deferred compensation liabilities – Fair value of amounts due to employees under deferred compensation plans are classified as Level 1 liabilities and are included in other liabilities on the Consolidated Balance Sheets. The fair values of these liabilities are determined in the same manner as the related assets, as described under the heading "Investments held in Rabbi Trust" above.

Derivative liabilities – Level 1 liabilities represent the fair value of foreign currency exchange contracts ($0.5 million and $0.7 million at March 31, 2026 and December 31, 2025, respectively).

Level 2 liabilities represent the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors ($0.1 million at March 31, 2026 and $0.2 million at December 31, 2025) and the fair value of interest rate derivatives ($165.3 million at March 31, 2026 and $170.1 million at December 31, 2025).

The fair values of these liabilities are determined in the same manner as the related assets as described under the heading "Derivative assets" above.

Certain financial instruments are not measured at fair value on an ongoing basis but are subject to fair value measurement in certain circumstances, such as upon their acquisition or when there is evidence of impairment. The following table presents Level 3 financial assets measured at fair value on a nonrecurring basis:

March 31,<br>2026 December 31,<br>2025
(dollars in thousands)
Loans, Net $ 123,331 $ 135,993
OREO 1,648 1,365
MSRs(1) 52,856 49,861
SBA servicing asset 2,141 2,256
Total assets $ 179,976 $ 189,475

(1) Amounts shown are estimated fair value. MSRs are recorded on the Corporation's Consolidated Balance Sheets at the lower of amortized cost or fair value.

See "Note 6 - Mortgage Servicing Rights" for additional information.

The valuation techniques used to measure fair value for the items in the table above are as follows:

•Loans, net – This category consists of loans that were individually evaluated for impairment and have been classified as Level 3 assets. The amount shown is the balance of non-accrual loans, net of related ACL. See "Note 5 - Loans and Allowance for Credit Losses," for additional details.

•OREO – This category consists of OREO classified as Level 3 assets, for which the fair values were based on estimated selling prices less estimated selling costs for similar assets in active markets.

•MSRs – This category consists of MSRs, which were initially recorded at fair value upon the sale of residential mortgage loans to secondary market investors, and subsequently carried at the lower of amortized cost or fair value. MSRs are amortized as a reduction to servicing income over the estimated lives of the underlying loans. MSRs are stratified by product type and evaluated for impairment by comparing each stratum's carrying amount to its estimated fair value. Fair values are determined at the end of each quarter through a discounted cash flows valuation performed by a third-party valuation expert. Significant inputs to the valuation included expected net servicing income, the discount rate and the expected life of the underlying loans. Expected life is based on the contractual terms of the loans as adjusted for prepayment projections. The weighted average annual constant prepayment rate and the weighted average discount rate used in the March 31, 2026 valuation were 7.7% and 8.6%, respectively. Management reviews the reasonableness of the significant inputs to the third-party valuation in comparison to market data. See "Note 6 - Mortgage Servicing Rights," for additional information.

•SBA servicing asset – This category consists of the retained servicing rights on SBA-guaranteed loans sold to investors. The standard sale structure under the SBA Secondary Participation Guaranty Agreement provides for the Corporation to retain a portion of the cash flow from the interest payment received on the SBA guaranteed portion of the loan, which is commonly known as a servicing spread. A third-party valuation expert is utilized to perform the modeling to estimate the fair value of the SBA servicing asset. Because the valuation model uses significant unobservable inputs, the SBA servicing asset is classified within Level 3.

The following tables detail the book values and the estimated fair values of the Corporation's financial instruments:

March 31, 2026
Estimated Fair Value
Carrying Amount Level 1 Level 2 Level 3 Total
(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents $ 1,062,910 $ 1,062,910 $ — $ — $ 1,062,910
FRB and FHLB stock 119,952 — 119,952 — 119,952
Loans held for sale 11,887 — 11,887 — 11,887
AFS investment securities 3,268,920 — 3,268,920 — 3,268,920
HTM investment securities 1,593,047 — 1,429,562 — 1,429,562
Loans, net 23,898,856 — — 22,724,276 22,724,276
Accrued interest receivable 112,083 112,083 — — 112,083
Other assets 711,520 558,116 119,448 56,644 734,208
FINANCIAL LIABILITIES
Demand and savings deposits $ 22,033,859 $ 22,033,859 $ — $ — $ 22,033,859
Brokered deposits 715,850 75,019 640,210 — 715,229
Time deposits 4,018,626 — 4,016,278 — 4,016,278
Accrued interest payable 17,740 17,740 — — 17,740
FHLB advances 200,000 201,208 — — 201,208
Senior debt and subordinated debt 367,720 — 349,212 — 349,212
Other borrowings 684,859 654,274 776 — 655,050
Other liabilities 241,449 61,817 164,802 14,830 241,449
December 31, 2025
--- --- --- --- --- --- --- --- --- --- ---
Estimated Fair Value
Carrying Amount Level 1 Level 2 Level 3 Total
(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents $ 1,061,609 $ 1,061,609 $ — $ — $ 1,061,609
FRB and FHLB stock 121,009 — 121,009 — 121,009
Loans held for sale 16,316 — 16,316 — 16,316
AFS investment securities 3,407,859 — 3,407,859 — 3,407,859
HTM investment securities 1,425,885 — 1,267,578 — 1,267,578
Loans, net 23,780,422 — — 22,590,142 22,590,142
Accrued interest receivable 113,698 113,698 — — 113,698
Other assets 721,469 556,071 132,043 53,482 741,596
FINANCIAL LIABILITIES
Demand and savings deposits $ 21,739,113 $ 21,739,113 $ — $ — $ 21,739,113
Brokered deposits 855,042 80,215 774,914 — 855,129
Time deposits 3,995,252 — 3,991,203 — 3,991,203
Accrued interest payable 17,130 17,130 — — 17,130
FHLB advances 250,000 251,991 — — 251,991
Senior debt and subordinated debt 367,637 — 351,870 — 351,870
Other borrowings 679,738 654,238 916 — 655,154
Other liabilities 247,490 62,228 170,290 14,972 247,490

Fair values of financial instruments are significantly affected by the assumptions used, principally the timing of future cash flows and discount rates. Because assumptions are inherently subjective in nature, the estimated fair values cannot be substantiated by comparison to independent market quotes and, in many cases, the estimated fair values could not necessarily be realized in an immediate sale or settlement of the instrument. The aggregate fair value amounts presented do not necessarily represent management’s estimate of the underlying value of the Corporation.

For short-term financial instruments, defined as those with remaining maturities of 90 days or less, and excluding those recorded at fair value on the Corporation's Consolidated Balance Sheets, book value was considered to be a reasonable estimate of fair value.

The following instruments are predominantly short-term:

Assets Liabilities
Cash and cash equivalents Demand and savings deposits
Accrued interest receivable Other borrowings
Accrued interest payable

FRB and FHLB stock represent restricted investments and are carried at cost on the Consolidated Balance Sheets, which is a reasonable estimate of fair value.

As of March 31, 2026, fair values for loans and time deposits were estimated by discounting future cash flows using the current rates, as adjusted for liquidity considerations, at which similar loans would be made to borrowers and similar deposits would be issued to customers for the same remaining maturities. Fair values of loans also include estimated credit losses that would be assumed in a market transaction, which represents estimated exit prices.

Brokered deposits consist of demand and saving deposits, which are classified as Level 1, and time deposits, which are classified as Level 2. The fair value of these deposits is determined in a manner consistent with the respective type of deposits discussed above.

NOTE 10 – Net Income Per Share

Basic net income per share is calculated as net income available to common shareholders divided by the weighted average number of shares outstanding.

Diluted net income per share is calculated as net income available to common shareholders divided by the weighted average number of shares outstanding plus the incremental number of shares added as a result of converting common stock equivalents, calculated using the treasury stock method. The Corporation's common stock equivalents consist of restricted stock, RSUs, and PSUs. PSUs are required to be included in weighted average diluted shares outstanding if performance measures, as defined in each PSU award agreement, are met as of the end of the period.

A reconciliation of weighted average shares outstanding used to calculate basic and diluted net income per share follows (in thousands, except per share data):

Three months ended March 31,
2026 2025
Weighted average shares outstanding (basic) 179,720 182,179
Impact of common stock equivalents 1,935 1,898
Weighted average shares outstanding (diluted) 181,655 184,077
Per share:
Basic $ 0.51 $ 0.50
Diluted 0.51 0.49

NOTE 11 – Stock-Based Compensation

The Corporation grants equity awards to employees in the form of restricted stock, RSUs and PSUs under its Employee Equity Plan. In addition, employees may purchase stock under the Corporation's ESPP. The fair value of equity awards granted to employees is recognized as compensation expense over the period during which employees are required to provide service in exchange for such awards.

The Corporation also grants equity awards to non-employee members of its Board of Directors and the Bank's Board of Directors under the Directors' Plan. Under the Directors' Plan, the Corporation can grant equity awards to non-employee Corporation and Bank directors in the form of restricted stock, RSUs or common stock. Recent grants of equity awards under the Directors' Plan have been limited to RSUs.

As of March 31, 2026, the Employee Equity Plan had approximately 3.1 million shares reserved for future grants through 2032, and the Directors' Plan had approximately 253 thousand shares reserved for future grants through 2033.

The following table presents compensation expense and the related tax benefits for equity awards recognized in the Consolidated Statements of Income:

Three months ended March 31,
2026 2025
(dollars in thousands)
Compensation expense $ 2,295 $ 1,932
Tax benefit (510) (431)
Total stock-based compensation, net of tax $ 1,785 $ 1,501

NOTE 12 – Employee Benefit Plans

The Corporation's 401(k) Retirement Plan is a defined contribution plan under which eligible employees may defer a portion of their pre-tax covered compensation on an annual basis, with employer matches of up to 5% of employee compensation. Employee and employer contributions are 100% vested. Expense related to the 401(k) Retirement Plan for the three months ended March 31, 2026 and 2025 was $3.8 million and $3.4 million, respectively.

The net periodic pension cost for the Pension Plan consisted of the following components:

Three months ended March 31,
2026 2025
(dollars in thousands)
Interest cost $ 729 $ 768
Expected return on plan assets (1,042) (978)
Net periodic pension cost $ (313) $ (210)

The net periodic benefit for the Postretirement Plan consisted of the following components:

Three months ended March 31,
2026 2025
(dollars in thousands)
Interest cost $ 7 $ 9
Net accretion and deferral (137) (136)
Net periodic postretirement benefit $ (130) $ (127)

In connection with the Prudential Bancorp Merger, the Corporation assumed the obligations of a multiemployer defined benefit pension plan that had previously been closed to new participants.

The Corporation recognizes the funded status of its Pension Plan and Postretirement Plan on the Consolidated Balance Sheets and recognizes the change in that funded status through OCI.

NOTE 13 - Segment Reporting

The Corporation has one reportable segment whose primary sources of revenue are interest income on loans, investment securities and other interest-earning assets and fee income earned on its products and services. Its expenses consist of interest expense on deposits and borrowed funds, provision for credit losses, other operating expenses and income taxes. The Corporation manages its business activities on a consolidated basis.

The accounting policies of the segment are the same as those described in "Note 1 – Summary of Significant Accounting Policies" of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2025.

The Chief Operating Decision Maker is the Chairman, Chief Executive Officer and President who assesses performance of the segment based on net income available to common shareholders and net income available to common shareholders per share (diluted), which is reported in the Consolidated Statements of Income.

Net income available to common shareholders and net income available to common shareholders per share (diluted), are used to monitor actual results versus budget, in competitive analyses by benchmarking to the Corporation’s peers, and in decision-making pertaining to executive compensation levels, common stock and preferred stock dividend levels, common share repurchases and capital expenditure spending.

The measure of segment net income is reported on the Consolidated Statements of Income and the measure of segment assets is reported on the Consolidated Balance Sheets.

NOTE 14 – Commitments and Contingencies

Commitments

The Corporation is a party to financial instruments with OBS risk in the normal course of business to meet the financing needs of its borrowers or obligors.

Commitments to extend credit are agreements to lend to a borrower or obligor as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by the borrower or obligor. Because a portion of the commitments is expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Corporation evaluates each borrower's or obligor's creditworthiness on a case-by-case basis. The amount of collateral, if any, obtained upon an extension of credit is based on management's credit evaluation of the borrower or obligor. Collateral held varies but may include accounts receivable, inventory, property, equipment and income-producing commercial properties.

Standby letters of credit are conditional commitments issued to guarantee the financial or performance obligation of a borrower or obligor to a third party. Commercial letters of credit are conditional commitments issued to facilitate foreign and domestic trade transactions for borrowers or obligors. The credit risk involved in issuing letters of credit is similar to that involved in extending loan facilities. These obligations are underwritten consistent with commercial lending standards. The maximum exposure to loss for standby and commercial letters of credit is equal to the contractual (or notional) amount of the instruments.

The following table presents the Corporation's commitments to extend credit and letters of credit:

March 31,<br>2026 December 31, 2025
(dollars in thousands)
Commitments to extend credit $ 8,797,881 $ 8,710,163
Standby letters of credit 298,857 311,697
Commercial letters of credit 30,194 29,842

Residential Lending

The Corporation originates and sells residential mortgages to secondary market investors. The Corporation provides customary representations and warranties to secondary market investors that specify, among other things, that the loans have been underwritten to the standards of the secondary market investor. The Corporation may be required to repurchase specific loans or reimburse the investor for a credit loss incurred on a sold loan if it is determined that the representations and warranties have not been met. Under some agreements with secondary market investors, the Corporation may have additional credit exposure beyond customary representations and warranties, based on the specific terms of those agreements.

The Corporation maintains a reserve for estimated losses related to loans sold to investors. As of March 31, 2026 and December 31, 2025, the total reserve for losses on residential mortgage loans sold was $1.5 million and $1.4 million, respectively, including reserves for both representation and warranty and credit loss exposures. In addition, included as a component of ACL - OBS credit exposures, was $0.4 million and $0.8 million, as of March 31, 2026 and December 31, 2025, respectively, related to additional credit exposures for potential loan repurchases.

Legal Proceedings

The Corporation is involved in various pending and threatened claims and other legal proceedings in the ordinary course of its business activities. The Corporation evaluates the possible impact of these matters, taking into consideration the most recent information available. A loss reserve is established for those matters for which the Corporation believes a loss is both probable and reasonably estimable. Once established, the reserve is adjusted as appropriate to reflect any subsequent developments. Actual losses with respect to any such matter may be more or less than the amount estimated by the Corporation. For matters where a loss is not probable, or the amount of the loss cannot be reasonably estimated by the Corporation, no loss reserve is established.

In addition, from time to time, the Corporation is involved in investigations or other forms of regulatory or governmental inquiry covering a range of possible issues and, in some cases, these may be part of similar reviews of the specified activities of

other companies. These inquiries or investigations could lead to administrative, civil or criminal proceedings involving the Corporation, and could result in fines, penalties, restitution, other types of sanctions, or the need for the Corporation to undertake remedial actions, or to alter its business, financial or accounting practices. The Corporation's practice is to cooperate fully with regulatory and governmental inquiries and investigations.

As of the date of this report, the Corporation believes that any liabilities, individually or in the aggregate, that may result from the final outcomes of pending legal proceedings, or regulatory or governmental inquiries or investigations, will not have a material adverse effect on the financial condition of the Corporation. However, legal proceedings, inquiries and investigations are often unpredictable, and it is possible that the ultimate resolution of any such matters, if unfavorable, may be material to the Corporation's results of operations in any future period, depending, in part, upon the size of the loss or liability imposed and the operating results for the period, and could have a material adverse effect on the Corporation's business. In addition, regardless of the ultimate outcome of any such legal proceeding, inquiry or investigation, any such matter could cause the Corporation to incur additional expenses, which could be significant, and possibly material, to the Corporation's results of operations in any future period.

NOTE 15 - Subsequent Event

In May 2026, the Corporation issued $300.0 million of subordinated notes due May 15, 2036 with a fixed-to-floating rate of 5.95% and an effective rate of 6.27%, due to issuance costs. The subordinated notes convert to a floating rate based on three-month term SOFR, plus 217 bps on May 15, 2031.

Net proceeds from the issuance, after underwriting discounts and offering expenses, were approximately $296.0 million and are expected to be used to repay $195.0 million aggregate principal amount of the Corporation's outstanding Subordinated Notes due 2030, plus accrued interest, and for general corporate purposes.

The issuance of these subordinated notes occurred after the balance sheet date, and accordingly, has not been reflected in the accompanying Consolidated Financial Statements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Management's Discussion relates to the Corporation, a financial holding company registered under the BHCA and incorporated under the laws of the Commonwealth of Pennsylvania, and its wholly owned subsidiaries. Management's Discussion should be read in conjunction with the Consolidated Financial Statements and other financial information presented in this Quarterly Report on Form 10-Q.

OVERVIEW

The Corporation is a financial holding company, which, through its wholly owned banking subsidiary, provides a full range of consumer and commercial financial services in Pennsylvania, Delaware, Maryland, New Jersey and Virginia.

The Corporation generates the majority of its revenue through net interest income, or the difference between interest earned on loans and investments and interest paid on deposits and borrowings. Growth in net interest income is dependent upon balance sheet growth and maintaining or increasing the NIM, which is FTE net interest income as a percentage of average interest-earning assets. The Corporation also generates revenue through fees earned on the various services and products offered to its customers and through gains on sales of assets, such as loans, investments and properties. Offsetting these revenue sources are provisions for credit losses on loans and OBS credit risks, non-interest expenses and income taxes.

The following table presents a summary of the Corporation's earnings and selected performance ratios:

Three months ended March 31,
2026 2025
(dollars in thousands, except per share data)
Net income $ 94,761 $ 92,987
Net income available to common shareholders 92,199 90,425
Net income available to common shareholders per share (diluted) 0.51 0.49
Operating net income available to common shareholders per share(1) 0.55 0.52
Return on average assets, annualized 1.20 % 1.18 %
Operating return on average assets, annualized(1) 1.30 % 1.25 %
Return on average common shareholders' equity, annualized 11.16 % 11.98 %
Operating return on average common shareholders' equity (tangible), annualized(1) 14.76 % 15.95 %
Net interest margin(2) 3.58 % 3.43 %
Efficiency ratio(1) 56.7 % 56.7 %
Non-performing assets to total assets 0.55 % 0.62 %
Net charge-offs to average loans, annualized 0.25 % 0.21 %

(1) Represents a financial measure derived by methods other than GAAP. See reconciliation of this non-GAAP financial measure to the most directly

comparable GAAP measure under the "Supplemental Reporting of Non-GAAP Based Financial Measures" section of Management's Discussion.

(2) Presented on a FTE basis using a 21% federal tax rate and statutory interest expense disallowances.

Blue Foundry Bancorp

On April 1, 2026, the Corporation completed its acquisition of Blue Foundry and Blue Foundry Bank became a wholly owned subsidiary of the Corporation. Blue Foundry Bank is expected to be merged with and into Fulton Bank in the third quarter of 2026.

See "Note 2 - Business Combinations" in the Notes to Consolidated Financial Statements in Part I, "Item 1. Financial Statements."

Financial Highlights

Net Income Available to Common Shareholders and Net Income Per Share - Net income available to common shareholders was $92.2 million for the three months ended March 31, 2026, a $1.8 million increase compared to $90.4 million for the same period in 2025. Net income available to common shareholders per diluted share was $0.51 for the three months ended March 31, 2026, a $0.02 increase compared to the same period in 2025.

Three Months Ended March 31, 2026 Results were Impacted by the Following Items:

•NIM of 3.58%, a 15 bps increase compared to 3.43% for the same period in 2025.

•Net interest income of $262.0 million, a $10.8 million increase compared to $251.2 million for the same period in 2025.

•Provision for credit losses of $14.4 million resulting in an ACL attributable to net loans of $367.5 million, or 1.51% of total net loans as of March 31, 2026.

•Non-interest income of $69.8 million, a $2.6 million increase compared to $67.2 million for the same period in 2025.

•Non-interest expense of $200.3 million, a $10.8 million increase compared to $189.5 million for the same period in 2025.

•During the three months ended March 31, 2026, 1,212,650 shares of the Corporation's common stock were repurchased under the 2026 Repurchase Program at a cost of $24.5 million or an average of $20.21 per share.

Critical Accounting Policies

The Corporation's accounting policies are fundamental to understanding Management’s Discussion. Critical policies are those that the Corporation considers to be most important to the presentation of its financial condition and results of operations, because they require management's most difficult judgments as a result of the need to make estimates about the effects of matters that are inherently uncertain.

The Corporation's critical accounting policies are described in Part II, "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" under the heading "Critical Accounting Policies" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025.

Supplemental Reporting of Non-GAAP Based Financial Measures

This Quarterly Report on Form 10-Q 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. 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 Consolidated Financial Statements in their entirety.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:

Three months ended March 31,
2026 2025
(dollars in thousands, except per share data and share data)
Operating net income available to common shareholders
Net income available to common shareholders $ 92,199 $ 90,425
Less: Other — (122)
Plus: Core deposit intangible amortization 5,255 6,155
Plus: Acquisition-related expense 2,644 380
Plus: FultonFirst implementation and asset disposals 1,556 (47)
Less: Tax impact of adjustments (1,985) (1,337)
Operating net income available to common shareholders (numerator) $ 99,669 $ 95,454
Weighted average shares (diluted) (denominator) 181,655 184,077
Operating net income available to common shareholders, per share (diluted) $ 0.55 $ 0.52
Operating return on average assets
Net income $ 94,761 $ 92,987
Less: Other — (122)
Plus: Core deposit intangible amortization 5,255 6,155
Plus: Acquisition-related expense 2,644 380
Plus: FultonFirst implementation and asset disposals 1,556 (47)
Less: Tax impact of adjustments (1,985) (1,337)
Operating net income (numerator) $ 102,231 $ 98,016
Total average assets $ 31,999,228 $ 31,971,601
Less: Average net core deposit intangible (54,629) (77,039)
Total operating average assets (denominator) $ 31,944,599 $ 31,894,562
Operating return on average assets(1) 1.30 % 1.25 %
Three months ended March 31,
--- --- --- --- --- --- ---
2026 2025
(dollars in thousands, except per share data and share data)
Operating return on average common shareholders' equity (tangible)
Net income available to common shareholders $ 92,199 $ 90,425
Less: Other — (122)
Plus: Intangible amortization 5,349 6,269
Plus: Acquisition-related expense 2,644 380
Plus: FultonFirst implementation and asset disposals 1,556 (47)
Less: Tax impact of adjustments (2,005) (1,361)
Adjusted net income available to common shareholders (numerator) $ 99,743 $ 95,544
Average shareholders' equity $ 3,543,911 $ 3,254,125
Less: Average preferred stock (192,878) (192,878)
Less: Average goodwill and intangible assets (610,262) (632,254)
Average tangible common shareholders' equity (denominator) $ 2,740,771 $ 2,428,993
Operating return on average common shareholders' equity (tangible)(1) 14.76 % 15.95 %
Efficiency ratio
Non-interest expense $ 200,294 $ 189,460
Less: Acquisition-related expense (2,644) (380)
Less: Intangible amortization (5,349) (6,269)
Less: FultonFirst implementation and asset disposals (1,556) 47
Operating non-interest expense (numerator) $ 190,745 $ 182,858
Net interest income $ 262,023 $ 251,187
Tax equivalent adjustment 4,303 4,340
Plus: Total non-interest income 69,841 67,232
Less: Other revenue — (122)
Plus: Investment securities losses (gains), net — 2
Total revenue (denominator) $ 336,167 $ 322,639
Efficiency ratio 56.7 % 56.7 %
(1) Results are annualized.

RESULTS OF OPERATIONS

Three months ended March 31, 2026 compared to the three months ended March 31, 2025

Net Interest Income

FTE net interest income was $266.3 million for the three months ended March 31, 2026, an increase of $10.8 million, compared to $255.5 million for the same period in 2025. For the three months ended March 31, 2026, NIM increased to 3.58%, or 15 bps, compared to the same period in 2025. The Corporation manages the risk associated with changes in interest rates through the techniques described within Part 1, "Item 3. Quantitative and Qualitative Disclosures About Market Risk" in this Quarterly Report on Form 10-Q. The following table provides a comparative average balance sheet and net interest income analysis for the three months ended March 31, 2026 compared to the same period in 2025. Interest income and yields are presented on an FTE basis using a 21% federal tax rate as well as statutory interest expense disallowances. The discussion following this table is based on these taxable-equivalent amounts.

Three months ended March 31,
2026 2025
Average<br>Balance Interest Yield/<br>Rate Average<br>Balance Interest Yield/<br>Rate
ASSETS (dollars in thousands)
Interest-earning assets:
Net loans(1) $ 24,225,655 $ 341,843 5.70 % $ 24,006,863 $ 347,626 5.86 %
Investment securities(2) 5,001,079 44,771 3.58 5,199,000 47,242 3.63
Other interest-earning assets 773,171 7,745 4.05 793,126 9,164 4.67
Total interest-earning assets 29,999,905 394,359 5.31 29,998,989 404,032 5.44
Noninterest-earning assets:
Cash and due from banks 300,074 301,897
Premises and equipment 173,203 191,248
Other assets 1,896,687 1,864,996
Less: ACL - loans(3) (370,641) (385,529)
Total Assets $ 31,999,228 $ 31,971,601
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits $ 7,774,121 $ 29,036 1.51 % $ 7,753,586 $ 34,189 1.79 %
Savings and money market deposits 8,684,478 44,663 2.09 7,971,728 45,101 2.29
Brokered deposits 856,823 8,210 3.89 904,722 10,038 4.50
Time deposits 4,015,644 33,896 3.42 4,127,784 41,564 4.08
Total interest-bearing deposits 21,331,066 115,805 2.20 20,757,820 130,892 2.56
Borrowings and other interest-bearing liabilities 1,359,113 12,228 3.65 1,754,900 17,613 4.07
Total interest-bearing liabilities 22,690,179 128,033 2.29 22,512,720 148,505 2.67
Noninterest-bearing liabilities:
Demand deposits 5,120,028 5,412,063
Other liabilities 645,110 792,693
Total Liabilities 28,455,317 28,717,476
Total deposits 26,451,094 1.78 % 26,169,883 2.03 %
Total interest-bearing liabilities and non-interest bearing deposits (cost of funds) 27,810,207 1.87 % 27,924,783 2.15 %
Shareholders’ equity 3,543,911 3,254,125
Total Liabilities and Shareholders’ Equity $ 31,999,228 $ 31,971,601
Net interest income/net interest margin (FTE) 266,326 3.58 % 255,527 3.43 %
Tax equivalent adjustment (4,303) (4,340)
Net interest income $ 262,023 $ 251,187

(1) Average balance includes non-performing loans and loan fees.

(2) Average balances include amortized historical cost for AFS investment securities; the related unrealized holding gains (losses) are included in other assets.

(3) ACL - loans relates to the ACL specifically for net loans and does not include the ACL for OBS credit exposures, which is included in other liabilities.

The following table summarizes the changes in FTE interest income and interest expense resulting from changes in average balances (volume) and changes in yields and rates for the three months ended March 31, 2026 compared to the same period in 2025:

2026 versus 2025<br><br>Increase (decrease) due<br><br>to change in
Volume Yield/Rate Net
(dollars in thousands)
FTE Interest income on:
Net loans(1) $ 3,293 $ (9,076) $ (5,783)
Investment securities (1,814) (657) (2,471)
Other interest-earning assets (226) (1,193) (1,419)
Total interest income $ 1,253 $ (10,926) $ (9,673)
Interest expense on:
Demand deposits $ 92 $ (5,245) $ (5,153)
Savings and money market deposits 3,756 (4,194) (438)
Brokered deposits (513) (1,315) (1,828)
Time deposits (1,103) (6,565) (7,668)
Borrowings and other interest-bearing liabilities (3,695) (1,690) (5,385)
Total interest expense $ (1,463) $ (19,009) $ (20,472)

(1) Average balance includes non-performing loans.

Note: Changes which are partially attributable to both volume and rate are allocated to the volume and rate components presented above based on the percentage of direct changes that are attributable to each component.

Compared to the first quarter of 2025, FTE total interest income for the first quarter of 2026 decreased $9.7 million, or 2.4%, due to a $10.9 million decrease attributable to changes in yield, partially offset by a $1.3 million increase attributable to changes in volume. The decrease due to changes in yield was primarily due to a decline in interest rates on average net loans. The increase due to changes in volume was largely due to an increase in average net loans offset by a decrease in average investment securities and average other interest-earning assets.

The yield on average total interest-earning assets decreased 13 bps for the three months ended March 31, 2026 compared to the same period in 2025 primarily due to lower interest rates.

In the first quarter of 2026, interest expense decreased $20.5 million compared to the first quarter of 2025, primarily driven by a $19.0 million decrease attributable to changes in rate and a $1.5 million decrease attributable to changes in volume. The decrease in interest expense attributable to changes in rate was primarily due to lower interest rates. The decrease in interest expense attributable to changes in volume was driven by decreases in average borrowings and other interest-bearing liabilities, average time deposits and average brokered deposits, partially offset by an increase in average savings and money market deposits.

The rate on average total interest-bearing liabilities decreased 38 bps for the three months ended March 31, 2026 compared to the same period in 2025 primarily due to lower interest rates.

Average loans and FTE yields, by type, are summarized in the following table:

Three months ended March 31,
2026 2025 Increase (Decrease)
Balance Yield Balance Yield %
(dollars in thousands)
Real estate – commercial mortgage $ 9,930,713 5.95 % $ 9,655,283 6.23 % 2.9 %
Commercial and industrial 4,522,694 6.08 4,608,401 6.29 (85,707) (1.9)
Real estate – residential mortgage 6,696,646 4.67 6,367,978 4.47 328,668 5.2
Real estate – home equity 1,235,977 6.31 1,160,713 6.84 75,264 6.5
Real estate – construction 926,026 6.45 1,296,090 7.10 (370,064) (28.6)
Consumer 576,852 8.11 615,741 7.02 (38,889) (6.3)
Leases and other loans(1) 336,747 5.55 302,657 4.99 34,090 11.3
Total loans $ 24,225,655 5.70 % $ 24,006,863 5.86 % 0.9 %

All values are in US Dollars.

(1) Consists of equipment lease financing, overdrafts and net origination fees and costs.

During the first quarter of 2026, average net loans increased $218.8 million, or 0.9%, compared to the same period in 2025. The increase in average net loans was primarily due to a $328.7 million increase and a $275.4 million increase in average residential mortgage loans and average commercial mortgage loans, respectively, partially offset by a $370.1 million decrease in average construction loans. The increase in average commercial mortgage loans was in part due to a $207.7 million purchase of in-market loans during the quarter ended March 31, 2026, which primarily consisted of commercial mortgage loans.

The yield on total loans decreased 16 bps to 5.70% for the first quarter of 2026 compared to 5.86% for the same period in 2025.

Average deposits and interest rates, by type, are summarized in the following table:

Three months ended March 31,
2026 2025 Increase (Decrease)
Balance Rate Balance Rate %
(dollars in thousands)
Noninterest-bearing demand $ 5,120,028 — % $ 5,412,063 — % (5.4) %
Interest-bearing demand 7,774,121 1.51 7,753,586 1.79 20,535 0.3
Savings and money market deposits 8,684,478 2.09 7,971,728 2.29 712,750 8.9
Total demand deposits and savings and money market deposits 21,578,627 1.39 21,137,377 1.52 441,250 2.1
Brokered deposits 856,823 3.89 904,722 4.50 (47,899) (5.3)
Time deposits 4,015,644 3.42 4,127,784 4.08 (112,140) (2.7)
Total deposits $ 26,451,094 1.78 % $ 26,169,883 2.03 % 1.1 %

All values are in US Dollars.

Average total deposits increased $281.2 million, or 1.1%, in the first quarter of 2026 compared to the same period in 2025. The increase in average total deposits was primarily due to a $712.8 million increase and a $20.5 million increase in average savings and money market deposits and average interest-bearing demand deposits, respectively, partially offset by a $292.0 million decrease and a $112.1 million decrease in average noninterest-bearing demand deposits and average time deposits, respectively.

The cost of deposits decreased 25 bps to 1.78% in the first quarter of 2026 compared to 2.03% for the same period in 2025 primarily due to lower interest rates.

Average borrowings and other interest-bearing liabilities and interest rates, by type, are summarized in the following table:

Three months ended March 31,
2026 2025 Increase (Decrease)
Balance Rate Balance Rate %
(dollars in thousands)
FHLB advances $ 221,039 3.99 % $ 709,367 4.59 % (68.8) %
Senior debt and subordinated debt 367,679 5.11 367,357 3.90 322 0.1
Other borrowings and interest-bearing liabilities(1) 770,395 2.84 678,176 3.60 92,219 13.6
Total borrowings and other interest-bearing liabilities $ 1,359,113 3.65 % $ 1,754,900 4.07 % (22.6) %

All values are in US Dollars.

(1) Includes repurchase agreements, short-term promissory notes, capital leases and collateral liabilities.

Average total borrowings and other interest-bearing liabilities decreased $395.8 million, or 22.6%, in the first quarter of 2026 compared to the same period in 2025. The decrease in average total borrowings and other interest-bearing liabilities was due to a $488.3 million decrease in average FHLB advances, partially offset by a $92.2 million increase in average other borrowings and interest-bearing liabilities.

Provision for Credit Losses

The provision for credit losses was $14.4 million for the three months ended March 31, 2026 resulting in a $367.5 million allowance for credit losses attributable to net loans, or 1.51% of total net loans as of March 31, 2026, compared to a provision for credit losses of $13.9 million for the same period in 2025, resulting in a $379.7 million allowance for credit losses attributable to net loans, or 1.59% of total net loans as of March 31, 2025.

Non-Interest Income

The following table presents the components of non-interest income:

Three months ended March 31, Increase (Decrease)
2026 2025 %
(dollars in thousands)
Wealth management $ 24,496 $ 21,785 12.4 %
Commercial banking:
Merchant and card 6,343 6,591 (248) (3.8)
Cash management 8,363 7,799 564 7.2
Capital markets 3,614 2,411 1,203 49.9
Other commercial banking 4,486 4,528 (42) (0.9)
Total commercial banking 22,806 21,329 1,477 6.9
Consumer banking:
Card 7,887 7,544 343 4.5
Overdraft 3,798 3,295 503 15.3
Other consumer banking 2,491 2,229 262 11.8
Total consumer banking 14,176 13,068 1,108 8.5
Mortgage banking 3,955 3,138 817 26.0
Other 4,408 7,914 (3,506) (44.3)
Non-interest income before investment securities (losses) gains, net 69,841 67,234 2,607 3.9
Investment securities (losses) gains, net — (2) 2 N/M
Total Non-Interest Income $ 69,841 $ 67,232 3.9 %

All values are in US Dollars.

Non-interest income for the three months ended March 31, 2026 increased $2.6 million, or 3.9%, compared to the same period in 2025. The increase in non-interest income was primarily due to a $2.7 million increase in wealth management revenues as a result of an increase in assets under management, a $1.2 million increase in commercial customer derivative fee income reflected in capital markets, and a $1.1 million increase in consumer banking income, partially offset by a $3.4 million decrease in income from equity method investments reflected in other non-interest income.

Non-Interest Expense

The following table presents the components of non-interest expense:

Three months ended March 31, Increase (Decrease)
2026 2025 %
(dollars in thousands)
Salaries and employee benefits $ 109,704 $ 103,525 6.0 %
Data processing and software 18,662 18,599 63 0.3
Net occupancy 18,229 18,207 22 0.1
Other outside services 12,530 11,704 826 7.1
Intangible amortization 5,349 6,269 (920) (14.7)
FDIC insurance 4,249 5,597 (1,348) (24.1)
Equipment 3,924 4,150 (226) (5.4)
Marketing 2,331 2,521 (190) (7.5)
Professional fees 2,239 (1,208) 3,447 N/M
Other 18,877 19,763 (886) (4.5)
Subtotal 196,094 189,127 6,967 3.7
FultonFirst implementation and asset disposals 1,556 (47) 1,603 N/M
Acquisition-related expenses 2,644 380 2,264 N/M
Total non-interest expense $ 200,294 $ 189,460 5.7 %

All values are in US Dollars.

Non-interest expense for the three months ended March 31, 2026 increased $10.8 million, or 5.7%, compared to the same period in 2025. Excluding FultonFirst implementation and asset disposals and acquisition-related expenses, non-interest expense increased $7.0 million, or 3.7%. The increase in non-interest expense before FultonFirst implementation and asset disposals and acquisition-related expenses was primarily due to a $6.2 million increase in salaries and employee benefits expense driven by increases in base salaries and commissions expense and a $3.4 million increase in professional fees primarily due to a prior year recovery of previously incurred fees, partially offset by a $1.3 million decrease in FDIC insurance expense and a $0.9 million decrease in intangible amortization expense.

Income Taxes

Income tax expense for the three months ended March 31, 2026 was $22.4 million, a $0.3 million increase compared to the same period in 2025. The Corporation's ETR was 19.1% for the three months ended March 31, 2026 compared to 19.2% for the same period in 2025.

FINANCIAL CONDITION

The table below presents condensed consolidated ending balance sheets:

March 31,<br>2026 December 31,<br>2025
%
Assets (dollars in thousands)
Cash and cash equivalents $ 1,062,910 $ 1,061,609 1,301 0.1 %
FRB and FHLB Stock 119,952 121,009 (0.9)
Loans held for sale 11,887 16,316 (27.1)
Investment securities 4,861,967 4,833,744 0.6
Net loans, less ACL - loans 23,898,856 23,780,422 0.5
Net premises and equipment 168,941 175,240 (3.6)
Goodwill and intangibles 607,647 612,996 (0.9)
Other assets 1,505,278 1,517,064 (0.8)
Total Assets $ 32,237,438 $ 32,118,400 119,038 0.4 %
Liabilities and Shareholders' Equity
Deposits $ 26,768,335 $ 26,589,407 178,928 0.7 %
Borrowings 1,252,579 1,297,375 (3.5)
Other liabilities 711,241 741,171 (4.0)
Total Liabilities 28,732,155 28,627,953 0.4
Total Shareholders' Equity 3,505,283 3,490,447 0.4
Total Liabilities and Shareholders' Equity $ 32,237,438 $ 32,118,400 119,038 0.4 %

All values are in US Dollars.

Investment Securities

The following table presents the carrying amount of investment securities:

March 31,<br>2026 December 31,<br>2025
%
Available for Sale (dollars in thousands)
State and municipal securities $ 797,981 $ 826,693 (28,712) (3.5) %
Corporate debt securities 196,481 214,921 (8.6)
Collateralized mortgage obligations 1,018,661 1,040,078 (2.1)
Residential mortgage-backed securities 707,660 766,717 (7.7)
Commercial mortgage-backed securities 548,137 559,450 (2.0)
Total AFS investment securities 3,268,920 3,407,859 (4.1)
Held to Maturity
Residential mortgage-backed securities 543,048 573,636 (5.3)
Collateralized mortgage obligations 166,041 — N/M
Commercial mortgage-backed securities 883,958 852,249 3.7
Total HTM securities 1,593,047 1,425,885 11.7
Total Investment Securities $ 4,861,967 $ 4,833,744 28,223 0.6 %

All values are in US Dollars.

Compared to December 31, 2025, total AFS investment securities at March 31, 2026 decreased $138.9 million, or 4.1%. The decrease in AFS investment securities at March 31, 2026 compared to December 31, 2025 was primarily due to decreases of $59.1 million, $28.7 million and $21.4 million in residential mortgage-backed securities, state and municipal securities and collateralized mortgage obligations, respectively.

Compared to December 31, 2025, total HTM investment securities at March 31, 2026 increased $167.2 million, or 11.7%. The increase in HTM investment securities at March 31, 2026 compared to December 31, 2025 was driven by the purchase of approximately $166.0 million of collateralized mortgage obligations during the quarter ended March 31, 2026.

Loans

The following table presents ending net loans outstanding by type:

March 31,<br>2026 December 31,<br>2025
%
(dollars in thousands)
Real estate - commercial mortgage $ 9,985,368 $ 9,820,944 164,424 1.7%
Commercial and industrial 4,494,031 4,539,060 (1.0)%
Real estate - residential mortgage 6,735,338 6,669,993 1.0%
Real estate - home equity 1,253,192 1,242,831 0.8%
Real estate - construction 876,498 970,298 (9.7)%
Consumer 565,041 564,349 0.1%
Leases and other loans(1) 356,877 337,409 5.8%
Net loans $ 24,266,345 $ 24,144,884 121,461 0.5%

All values are in US Dollars.

(1) Includes unearned income of $41.3 million and $36.8 million as of March 31, 2026 and December 31, 2025, respectively.

During the three months ended March 31, 2026, net loans increased $121.5 million compared to December 31, 2025. The increase in net loans during the three months of 2026 was primarily due to a $164.4 million increase in commercial mortgage loans and a $65.3 million increase in residential mortgage loans, partially offset by a $93.8 million decrease in construction loans and a $45.0 million decrease in commercial and industrial loans. The Bank purchased $207.7 million of in-market loans during the quarter ended March 31, 2026, which consisted primarily of commercial mortgage loans.

The Corporation does not have a significant concentration of credit risk with any single borrower. As of March 31, 2026, approximately $10.9 billion, or 44.8%, of the loan portfolio was comprised of commercial mortgage loans and construction loans.

The Corporation has established lower total lending limits for certain types of commercial lending commitments and lower total lending limits based on the Corporation's internal risk rating of an individual borrower at the time the lending commitment is approved. The Corporation adheres to loan portfolio management practices, which include requiring an annual review of the majority of commercial loans. Additionally, management monitors the loan portfolio throughout the year taking into account, among other things, the size, complexity and risk of loans and individual borrowers. An independent loan review function assesses the portfolio for internal risk rating accuracy and loan servicing policy requirements. The Corporation consolidates risk migrations to identify emerging risks by industry and real estate property types, taking into consideration economic forecasts and industry trends. The Corporation takes a risk-based approach when reviewing a specific loan portfolio, such as the commercial office loan portfolio or multi-family loan portfolio. The Corporation reviews portfolio concentrations and adjusts the lending limits based on asset quality, economic forecasts and industry outlook.

The following table summarizes the industry concentrations within the commercial mortgage and the commercial and industrial loan portfolios:

March 31, 2026 December 31, 2025
Real estate(1) 42.2 % 42.3 %
Health care 7.1 7.0
Manufacturing 7.0 7.0
Retail 5.9 6.0
Agriculture 5.1 5.2
Construction(2) 4.8 4.6
Wholesale trade 4.4 4.2
Other services 4.3 4.5
Hospitality and food services 4.2 3.9
Educational services 3.0 3.0
Arts, entertainment and recreation 2.6 2.4
Professional, scientific and technical services 2.5 2.6
Public administration 1.3 1.3
Transportation and warehousing 1.3 1.3
Finance and insurance 1.2 1.4
Administrative and Support 1.0 1.0
Other 2.1 2.3
Total 100.0 % 100.0 %

(1) Includes commercial loans to borrowers engaged in the business of renting, leasing or managing real estate for others, selling and/or buying real estate for

others and appraising real estate.

(2) Includes commercial loans to borrowers engaged in the construction industry.

The commercial mortgage loan portfolio consists of 44.8% owner occupied commercial mortgage loans and 55.2% of non-owner occupied commercial mortgage loans as of March 31, 2026. The following table summarizes the non-owner occupied commercial mortgage loan portfolio outstanding balance and the percent to total net loans.

March 31, 2026 December 31, 2025
% of Total Net Loans % of Total Net Loans
(dollars in thousands)
Multi-family 6.3 % 6.6 %
Retail trade 1,175,934 4.8 1,109,612 4.6
Industrial 1,021,610 4.2 944,807 3.9
Office 730,220 3.0 730,803 3.0
Hospitality and food services 480,728 2.0 450,273 1.9
Other 582,417 2.4 571,371 2.4
Total non-owner occupied commercial mortgage loans 22.7 % 22.4 %

All values are in US Dollars.

The following table summarizes the commercial mortgage office non-owner occupied loan portfolio outstanding balance, total commitment and LTV ratio by Metropolitan Statistical Area:

March 31, 2026 December 31, 2025
Outstanding Balance Total Commitment Weighted Average LTV(1) Outstanding Balance Total Commitment Weighted Average LTV(1)
(dollars in thousands)
Philadelphia(2) $ 350,840 $ 371,724 63 % $ 345,981 $ 357,190 63 %
Washington, D.C.(3) 77,454 80,489 72 77,908 80,943 72
Baltimore (4) 73,125 74,338 63 73,161 74,214 63
New York (5) 71,419 73,309 61 69,213 71,370 60
Other 157,382 169,117 60 164,540 190,325 60
Total office non-owner occupied commercial real estate $ 730,220 $ 768,977 63 % $ 730,803 $ 774,042 63 %

(1) Weighted average LTV as of origination.

(2) Philadelphia-Camden-Wilmington, PA-NJ-DE-MD.

(3) Washington-Arlington-Alexandria, DC-VA-MD-WV.

(4) Baltimore-Columbia-Towson, MD.

(5) New York-Newark-Jersey City, NY-NJ-PA.

The non-owner occupied commercial mortgage office loan portfolio table above excludes commercial construction loans secured by office property collateral with a total outstanding balance of $0.4 million and outstanding loan commitment of $4.1 million as of March 31, 2026.

The following table summarizes the non-owner occupied commercial mortgage multi-family loan portfolio outstanding balance, total commitment and LTV ratio by Metropolitan Statistical Area:

March 31, 2026 December 31, 2025
Outstanding Balance Total Commitment Weighted Average LTV(1) Outstanding Balance Total Commitment Weighted Average LTV(1)
(dollars in thousands)
Philadelphia(2) $ 679,154 $ 692,133 62 % $ 706,637 $ 723,133 61 %
Lancaster, PA 145,923 147,112 48 157,997 159,485 47
New York(3) 109,064 110,120 60 117,055 118,819 59
Baltimore(4) 116,431 116,431 54 114,523 114,523 54
Washington, D.C.(5) 68,178 69,631 51 67,666 72,190 51
Other 401,155 448,696 57 425,924 477,162 57
Total multi-family non-owner occupied commercial real estate $ 1,519,905 $ 1,584,123 58 % $ 1,589,802 $ 1,665,312 58 %

(1) Weighted average LTV as of origination.

(2) Philadelphia-Camden-Wilmington, PA-NJ-DE-MD.

(3) New York-Newark-Jersey City, NY-NJ-PA.

(4) Baltimore-Columbia-Towson, MD.

(5) Washington-Arlington-Alexandria, DC-VA-MD-WV.

The non-owner occupied commercial mortgage multi-family loan table above excludes commercial construction loans secured by multi-family property collateral with a total outstanding loan balance of $175.8 million and outstanding loan commitments of $348.8 million as of March 31, 2026.

The following table presents the changes in non-accrual loans for the three months ended March 31, 2026:

Commercial <br>and <br>Industrial Real Estate -<br>Commercial<br>Mortgage Real Estate -<br>Construction Real Estate -<br>Residential<br>Mortgage Consumer and Real Estate -<br>Home<br>Equity Leases and other loans Total
(dollars in thousands)
Three months ended March 31, 2026
Balance at December 31, 2025 $ 44,103 $ 72,050 $ 1,661 $ 27,751 $ 7,129 $ 1,178 $ 153,872
Additions 16,810 23,095 — 2,656 2,014 222 44,797
Payments (4,998) (31,762) (255) (1,013) (483) (1,153) (39,664)
Charge-offs (1) (10,545) (4,102) — (391) (1,350) (222) (16,610)
Transfers to accrual status — — — — — — —
Transfers to OREO — — — (360) — — (360)
Balance at March 31, 2026 $ 45,370 $ 59,281 $ 1,406 $ 28,643 $ 7,310 $ 25 $ 142,035
(1) Overdrafts excluded from charge-offs.

During the three months ended March 31, 2026, non-accrual loans decreased by approximately $11.8 million, or 7.7%, primarily due to $39.7 million in payments and $16.6 million in charge-offs, partially offset by $44.8 million in additions. During the three months ended March 31, 2026, non-accrual loans as a percentage of total net loans decreased to 0.59% compared to 0.64% as of December 31, 2025.

The following table presents non-performing assets for the periods shown below:

March 31, 2026 December 31, 2025
(dollars in thousands)
Non-accrual loans $ 142,035 $ 153,872
Loans 90 days or more past due and still accruing 33,816 29,924
Total non-performing loans and leases 175,851 183,796
OREO(1) 1,648 1,365
Total non-performing assets $ 177,499 $ 185,161
Non-accrual loans to total net loans 0.59 % 0.64 %
Non-performing loans to total net loans 0.72 % 0.76 %
Non-performing assets to total assets 0.55 % 0.58 %
ACL - loans to non-performing loans 209 % 198 %

(1) Excludes $19.0 million and $19.1 million of residential mortgage properties for which formal foreclosure proceedings were in process as of March 31, 2026 and December 31, 2025, respectively.

Non-performing loans and leases as of March 31, 2026 were $175.9 million, a decrease of $7.9 million, or 4.3%, compared to $183.8 million as of December 31, 2025. The decrease in non-performing loans and leases during the first three months of 2026 was primarily due to payments and charge-offs, partially offset by additions. Non-performing loans and leases as a percentage of total net loans was 0.72% and 0.76% as of March 31, 2026 and December 31, 2025, respectively.

The Corporation's ability to identify potential problem loans in a timely manner is important to maintaining an adequate ACL. For commercial and industrial loans, commercial mortgage loans, commercial construction loans and leases and other loans, an internal risk rating process is used to monitor credit quality. The evaluation of credit risk for residential mortgages, home equity loans, construction loans to individuals and consumer loans is based on payment history through the monitoring of delinquency levels and trends.

Total internally risk-rated loans were $15.5 billion and $15.4 billion as of March 31, 2026 and December 31, 2025, respectively, of which $1.4 billion were criticized and classified loans at March 31, 2026 compared to $1.5 billion at December 31, 2025.

The following table presents criticized and classified loans, or those with internal risk ratings of special mention or substandard or lower for commercial mortgage loans, commercial and industrial loans, construction loans to commercial borrowers and leases and other loans by class segment:

Special Mention(1) Increase (Decrease) Substandard or Lower(2) Increase (Decrease) Total Criticized and Classified Loans
March 31,<br>2026 December 31, 2025 % March 31, 2026 December 31, 2025 % March 31, 2026 December 31, 2025
(dollars in thousands)
Real estate - commercial mortgage $ 321,106 $ 412,685 (22.2)% $ 556,298 $ 531,491 4.7 % $ 877,404 $ 944,176
Commercial and industrial 186,310 220,022 (33,712) (15.3) 256,109 243,786 12,323 5.1 442,419 463,808
Real estate -construction(3) 34,771 30,416 4,355 14.3 8,850 9,142 (292) (3.2) 43,621 39,558
Leases and other loans 3,178 3,415 (237) (6.9) 7,292 6,487 805 12.4 10,470 9,902
Total $ 545,365 $ 666,538 (18.2)% $ 828,549 $ 790,906 4.8% $ 1,373,914 $ 1,457,444
% of total risk rated loans 3.5 % 4.3 % 5.4 % 5.1 % 8.9 % 9.4 %

All values are in US Dollars.

(1) Considered "criticized" loans by banking regulators.

(2) Considered "classified" loans by banking regulators.

(3) Excludes residential real estate - construction.

Compared to December 31, 2025, total criticized and classified loans as of March 31, 2026 decreased $83.5 million driven by a $121.2 million decrease in special mention loans, partially offset by a $37.6 million increase in substandard or lower loans.

The Corporation accounts for the credit risk associated with lending activities through the ACL and the provision for credit losses.

The following table presents the activity in the ACL:

Three months ended March 31,
2026 2025
(dollars in thousands)
Average balance of net loans $ 24,225,655 $ 24,006,863
Balance of ACL at beginning of period $ 364,462 $ 379,156
Initial allowance for credit losses on purchased loans 3,351 —
Loans charged off:
Real estate - commercial mortgage (4,102) (12,106)
Commercial and industrial (10,545) (3,865)
Real estate - residential mortgage (391) (343)
Consumer and real estate - home equity (2,164) (2,193)
Real estate - construction — —
Leases and other loans (1,116) (1,527)
Total loans charged off (18,318) (20,034)
Recoveries of loans previously charged off:
Real estate - commercial mortgage 701 374
Commercial and industrial 740 5,952
Real estate - residential mortgage 72 174
Consumer and real estate - home equity 584 660
Real estate - construction 884 82
Leases and other loans 429 201
Total recoveries of loans previously charged-off 3,410 7,443
Net loans charged off (recoveries) (14,908) (12,591)
Provision for credit losses(1)(2) 14,584 13,112
Balance of ACL at end of period $ 367,489 $ 379,677
Provision for OBS credit exposures(1) $ (142) $ 786
Reserve for OBS credit exposures(3) $ 14,830 $ 14,947
Net charge-offs to average loans (annualized) 0.25 % 0.21 %

(1) These amounts are reflected in the provision for credit losses in the Consolidated Statements of Income.

(2) Provision for credit losses includes only the portion related to net loans.

(3) Reserve for OBS credit exposures is recorded within other liabilities on the Consolidated Balance Sheets.

The provision for credit losses for the portion related to net loans for the three months ended March 31, 2026 was $14.6 million compared to a provision of $13.1 million for the same period in 2025.

An initial allowance for credit losses on purchased loans of $3.4 million for the three months ended March 31, 2026 was recorded due to the $207.7 million in-market commercial loan portfolio purchase.

The ACL includes qualitative adjustments, as appropriate, intended to capture the impact of uncertainties not reflected in the quantitative models. See "Note 5 - Loans and Allowance for Credit Losses" of the Notes to Consolidated Financial Statements in Part I, "Item 1. Financial Statements" for additional details.

The following table summarizes the allocation of the ACL - loans:

March 31, 2026 December 31, 2025
ACL - loans % to Total ACL - loans(1) % to Total Net loans(2) ACL - loans % to Total ACL - loans(1) % to Total Net loans(2)
(dollars in thousands)
Real estate - commercial mortgage $ 159,042 43.3 % 41.1 % $ 157,302 43.2 % 40.7 %
Commercial and industrial 78,978 21.5 18.5 77,740 21.3 18.8
Real estate - residential mortgage 89,860 24.5 27.8 88,961 24.4 27.6
Consumer, home equity and leases and other loans 30,256 8.2 9.0 29,563 8.1 8.9
Real estate - construction 9,353 2.5 3.6 10,896 3.0 4.0
Total ACL - loans $ 367,489 100.0 % 100.0 % $ 364,462 100.0 % 100.0 %

(1) Ending ACL - loan portfolio segment balance as a percentage of total ACL - loans.

(2) Ending loan portfolio segment balances as a percentage of total net loans for the periods presented.

Deposits and Borrowings

The following table presents ending deposits by type:

March 31,<br>2026 December 31,<br>2025
%
(dollars in thousands)
Noninterest-bearing demand $ 5,334,920 $ 5,256,096 78,824 1.5 %
Interest-bearing demand 7,823,683 7,970,188 (1.8)
Savings and money market deposits 8,875,256 8,512,829 4.3
Total demand and savings 22,033,859 21,739,113 1.4
Brokered deposits 715,850 855,042 (16.3)
Time deposits 4,018,626 3,995,252 0.6
Total deposits $ 26,768,335 $ 26,589,407 178,928 0.7 %

All values are in US Dollars.

During the three months ended March 31, 2026, total deposits increased by $178.9 million compared to December 31, 2025. The increase in total deposits was primarily due to a $362.4 million increase in savings and money market deposits and a $78.8 million increase in noninterest-bearing demand deposits, partially offset by a $146.5 million decrease in interest-bearing demand deposits and a $139.2 million decrease in brokered deposits.

Total uninsured deposits (excluding intra-Company deposits) were estimated to be $9.6 billion and $9.7 billion as of March 31, 2026 and December 31, 2025, respectively.

Time deposits of $250 thousand or more were $1.1 billion at March 31, 2026 and December 31, 2025.

The following table presents ending borrowings by type:

March 31,<br>2026 December 31,<br>2025
%
(dollars in thousands)
FHLB advances $ 200,000 $ 250,000 (50,000) (20.0) %
Senior debt and subordinated debt 367,720 367,637 N/M
Other borrowings(1) 684,859 679,738 0.8
Total borrowings $ 1,252,579 $ 1,297,375 (44,796) (3.5) %

All values are in US Dollars.

(1) Includes repurchase agreements, short-term promissory notes and capital leases.

During the three months ended March 31, 2026, total borrowings decreased $44.8 million, or 3.5%, compared to December 31, 2025. The decrease in total borrowings was primarily due to a $50.0 million decrease in FHLB advances, partially offset by a $5.1 million increase in other borrowings.

Shareholders' Equity

On December 16, 2025, the Corporation announced that its board of directors approved the 2026 Repurchase Program. The 2026 Repurchase Program will expire on January 31, 2027. Under the 2026 Repurchase Program, the Corporation is authorized to repurchase up to $150.0 million of shares of its common stock. Under this authorization, up to $25.0 million of the $150.0 million authorization may be used to repurchase the Corporation's preferred stock and outstanding subordinated notes. The 2026 Repurchase Program may be discontinued at any time.

During the three months ended March 31, 2026, 1,212,650 shares of the Corporation's common stock were repurchased under the 2026 Repurchase Program at a cost of $24.5 million or an average of $20.21 per share.

Regulatory Capital

The Corporation and its wholly owned subsidiary bank, Fulton Bank, are subject to the Capital Rules administered by banking regulators. Failure to meet minimum capital requirements can trigger certain actions by regulators that could have a material effect on the Corporation's financial statements.

The Capital Rules require the Corporation and Fulton Bank to:

•Meet a minimum Common Equity Tier 1 capital ratio of 4.50% of risk-weighted assets;

•Meet a minimum Tier 1 Leverage capital ratio of 4.00% of average assets;

•Meet a minimum Total capital ratio of 8.00% of risk-weighted assets and a minimum Tier 1 capital ratio of 6.00% of risk-weighted assets;

•Maintain a "capital conservation buffer" of 2.50% above the minimum risk-based capital requirements, which must be maintained to avoid restrictions on capital distributions and certain discretionary bonus payments; and

•Comply with a revised definition of capital to improve the ability of regulatory capital instruments to absorb losses. Certain non-qualifying capital instruments, including cumulative preferred stock and TruPS, are excluded as a component of Tier 1 capital for institutions of the Corporation's size.

As of March 31, 2026, the Corporation's capital levels met the minimum capital requirements, including the capital conservation buffers, as prescribed in the Capital Rules.

As of March 31, 2026, Fulton Bank met the well-capitalized requirements under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, a bank must maintain minimum Total risk-based, Tier I risk-based, Common Equity Tier I risk-based and Tier I leverage ratios as set forth in the Capital Rules. There were no other conditions or events since March 31, 2026 that management believes have changed the Corporation's capital categories.

The following table summarizes the Corporation's capital ratios in comparison to regulatory requirements:

March 31,<br>2026 December 31, 2025 Regulatory<br>Minimum<br>for Capital<br>Adequacy With Capital Conservation Buffer
Total Risk-Based Capital (to Risk-Weighted Assets) 15.2 % 15.2 % 8.0 % 10.5 %
Tier I Risk-Based Capital (to Risk-Weighted Assets) 12.7 % 12.6 % 6.0 % 8.5 %
Common Equity Tier I (to Risk-Weighted Assets) 11.9 % 11.8 % 4.5 % 7.0 %
Tier I Leverage Capital (to Average Assets) 9.9 % 9.7 % 4.0 % 4.0 %

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the exposure to economic loss that arises from changes in the values of certain financial instruments. The types of market risk exposures generally faced by financial institutions include interest rate risk, equity market price risk, debt security market price risk, foreign currency price risk and commodity price risk. Due to the nature of its operations, foreign currency price risk and commodity price risk are not significant to the Corporation.

Interest Rate Risk, Asset/Liability Management and Liquidity

Interest rate risk creates exposure in two primary areas. First, changes in rates have an impact on the Corporation's liquidity position and could affect its ability to meet obligations and continue to grow. Second, movements in interest rates can create fluctuations in the Corporation's net interest income and changes in the economic value of its equity.

The Corporation employs various management techniques to minimize its exposure to interest rate risk. The Corporation's ALCO is responsible for reviewing the interest rate sensitivity and liquidity positions of the Corporation, approving asset and liability management policies, and overseeing the formulation and implementation of strategies regarding balance sheet positions.

The Corporation uses two complementary methods to measure and manage interest rate risk: simulation of net interest income and estimates of economic value of equity. Using these measurements in tandem provides a reasonably comprehensive summary of the magnitude of the Corporation's interest rate risk, level of risk as time evolves, and exposure to changes in interest rates.

Net interest income simulation is performed for the following 12-month period using various interest rate scenarios. These scenarios measure the effects of sudden and gradual parallel movements upward and downward in the yield curve and are compared to results under a flat or unchanged interest rate scenario. Simulation of net interest income is used primarily to assess the Corporation's short-term earnings exposure to rate movements.

The Corporation's policy to measure its interest rate risk profile uses parallel instantaneous shocks. The potential exposure of net interest income under a parallel instantaneous shock is limited to:

•10% of base-case net interest income for a 100 bps shock,

•15% for a 200 bps shock,

•20% for a 300 bps shock, and

•25% for a 400 bps shock.

A "shock" is an immediate upward or downward movement of interest rates. These shocks do not incorporate potential changes in customer behavior that could result in changes to mix and/or volumes in the balance sheet or potential effects of competition on the pricing of deposits and loans over the forward 12-month period. Rate shocks resulting in negative interest rates that have been deemed impractical are omitted from presentation.

The simulation model incorporates contractual maturities and repricing opportunities for loans as well as prepayment assumptions, maturity data and call options embedded in the investment portfolio. Assumptions for non-maturity deposit accounts based on historical experience are incorporated into the model. The assumptions used are inherently uncertain and, as a result, the model cannot precisely predict future net interest income or the impact of fluctuations in market interest rates on net interest income. Actual results will differ from the model's simulated results due to timing, amount and frequency of interest rate changes as well as changes in market conditions and the application and timing of various management strategies.

The following table summarizes the expected impact of interest rate changes in rate-ramp scenarios over a 12-month period, that is a gradual parallel shift, on net interest income as of March 31, 2026:

Rate Ramp(1) Annual change<br>in net interest income % change in net interest income
+400 bp + $29.9 million +2.6%
+300 bp + $24.8 million +2.2%
+200 bp + $18.8 million +1.6%
+100 bp + $11.6 million +1.0%
–100 bp - $5.1 million -0.4%
–200 bp - $9.7 million -0.8%
–300 bp - $14.1 million -1.2%

(1) Results include the effect of implicit and explicit interest rate floors that limit further reduction in interest rates.

The following table summarizes the expected impact of abrupt interest rate changes, that is a parallel instantaneous shock, on net interest income as of March 31, 2026:

Rate Shock(1) Annual change<br>in net interest income % change in net interest income
+400 bp + $70.1 million +6.1%
+300 bp + $58.0 million +5.1%
+200 bp + $43.3 million +3.8%
+100 bp + $27.4 million +2.4%
–100 bp - $15.8 million -1.4%
–200 bp - $32.7 million -2.9%
–300 bp - $52.2 million -4.6%

(1) Results include the effect of implicit and explicit interest rate floors that limit further reduction in interest rates.

The economic value of equity analysis estimates the discounted present value of asset and liability cash flows using discount rates derived from market pricing for like assets and liabilities. Abrupt changes or "shocks" in interest rates, both upward and downward, are applied to evaluate the comparative effect of such interest rate movements relative to the unchanged environment. This measurement tool is used primarily to evaluate the longer-term repricing risks and options in the Corporation's Consolidated Balance Sheets. The Corporation's policy limits the economic value of equity that may be at risk in a parallel instantaneous shock to:

•10% of the base-case economic value of equity for a 100 bps shock,

•20% for a 200 bps shock,

•30% for a 300 bps shock, and

•40% for a 400 bps shock.

As of March 31, 2026, the Corporation was within all policy limits for net interest income and economic value of equity.

The following table disaggregates net loans by interest rate type at March 31, 2026:

Fixed Rate Adjustable/Variable Rate Other(1) Total
(dollars in thousands)
Real estate - commercial mortgage $ 2,007,041 $ 7,964,049 $ 14,278 $ 9,985,368
Commercial and industrial 799,916 3,649,090 45,025 4,494,031
Real estate - residential mortgage 3,910,114 2,943,643 (118,419) 6,735,338
Real estate - home equity 136,935 1,113,026 3,231 1,253,192
Real estate - construction 275,978 599,848 672 876,498
Consumer 481,293 83,940 (192) 565,041
Leases and other loans 313,858 101 42,918 356,877
Net loans $ 7,925,135 $ 16,353,697 $ (12,487) $ 24,266,345

(1) Other includes unearned income, non-accrual loans, deferred fees/costs, purchase accounting fair value adjustment balances and loans in-process.

Interest Rate Derivatives

The Corporation enters into interest rate derivatives with certain qualifying commercial loan customers to meet their interest rate risk management needs. The Corporation simultaneously enters into interest rate derivatives with dealer counterparties with identical notional amounts and terms. The net result of these interest rate derivatives is that the customer pays a fixed rate of interest and the Corporation receives a floating rate. These interest rate derivatives are derivative financial instruments, and the gross fair values are recorded in other assets and liabilities on the Consolidated Balance Sheets.

Cash Flow Hedges

The Corporation's objectives in using interest rate derivatives are to reduce volatility in net interest income and net interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Corporation primarily uses interest rate derivatives as part of its interest rate risk management strategy. The Corporation enters into interest rate derivatives designated as cash flow hedges to hedge the cash flows associated with existing loans and borrowings.

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the unrealized gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest income or interest expense in the same period during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest income or interest expense as interest payments are received or made on the Corporation's loans and borrowings.

In January 2023, the Corporation terminated interest rate derivatives designated as cash flow hedges with a combined notional amount of $1.0 billion. As the hedged transaction continues to be probable, the unrealized losses that have been recorded in AOCI are recognized as a reduction to interest income, including fees, when the previously forecasted hedged item affects earnings in future periods. During the three months ended March 31, 2026, $3.2 million of these unrealized losses have been reclassified as a reduction of interest income on loans, including fees, on the Consolidated Statements of Income. During the year ended December 31, 2025, $13.0 million of these unrealized losses have been reclassified as a reduction of interest income on loans, including fees, on the Consolidated Statements of Income.

Liquidity

The Corporation must maintain a sufficient level of liquid assets to meet the cash needs of its customers, who, as depositors, may want to withdraw funds or who, as borrowers, need credit availability. Liquidity is provided on a continuous basis through scheduled and unscheduled principal and interest payments on investments and outstanding loans and through the availability of deposits and borrowings. The Corporation also maintains secondary sources that provide liquidity on a secured and unsecured basis to meet short- and long-term needs.

The Corporation maintains liquidity sources in the form of interest-bearing deposits and customer funding (short-term promissory notes). The Corporation can access additional liquidity from these sources, if necessary, by increasing the rates of interest paid on those instruments. The positive impact to liquidity resulting from paying higher interest rates could have a detrimental impact on NIM and net interest income if rates on interest-earning assets do not experience a proportionate increase.

Borrowing availability with the FHLB and the FRB, along with federal funds lines at various correspondent banks, provides the Corporation with additional liquidity.

Fulton Bank is a member of the FHLB and has access to FHLB overnight and term credit facilities. As of March 31, 2026, the Bank had total borrowing capacity of approximately $11.8 billion with $4.3 billion of advances and letters of credit outstanding, for a remaining available borrowing capacity of approximately $7.4 billion under these facilities. Advances from the FHLB, when utilized, are secured by qualifying commercial real estate and residential mortgage loans, investments and other assets.

As of March 31, 2026, the Corporation had aggregate federal funds lines borrowing capacity of $2.6 billion with no amounts outstanding against that amount. As of March 31, 2026, the Corporation had $3.7 billion of collateralized borrowing capacity at the FRB discount window with no amounts outstanding.

A combination of commercial real estate loans, commercial loans, consumer loans and securities are pledged to the FRB of Philadelphia to provide access to FRB discount window borrowings. Securities carried at $469.8 million at March 31, 2026 were pledged as collateral to secure public and trust deposits.

Liquidity must also be managed at the Parent Company. For safety and soundness reasons, banking regulations limit the amount of cash that can be transferred from subsidiary banks to the parent company in the form of loans and dividends. Generally, these limitations are based on the subsidiary banks’ regulatory capital levels and their net income. Management continues to monitor the liquidity and capital needs of the Parent Company including monitoring the granularity of the deposit portfolio and level of uninsured deposits. Management will implement appropriate strategies, as necessary, to remain adequately capitalized and to meet its cash needs.

The Consolidated Statements of Cash Flows in Part I. "Item 1. Financial Statements" provide additional information. The Corporation's operating activities during the three months ended March 31, 2026 generated $114.7 million of cash primarily from net income. Cash used in investing activities was $188.2 million primarily due to the purchase of HTM securities. Cash provided in financing activities was $74.8 million.

Debt Security Market Price Risk

Debt security market price risk is the risk that changes in the values of debt securities, unrelated to interest rate changes, could have a material impact on the financial position or results of operations of the Corporation. The Corporation's debt security investments consist primarily of GSEs issued mortgage-backed securities and collateralized mortgage obligations, state and municipal securities, and corporate debt securities. All of the Corporation's investments in mortgage-backed securities and collateralized mortgage obligations have principal payments that are guaranteed by GSEs.

State and Municipal Securities

As of March 31, 2026, the Corporation owned securities issued by various states and municipalities with a total fair value of $798.0 million. Uncertainty with respect to the financial strength of state and municipal bond insurers places emphasis on the underlying strength of issuers. Pressure on local tax revenues of issuers due to adverse economic conditions could have an adverse impact on the underlying credit quality of issuers. The Corporation evaluates existing and potential holdings primarily based on the underlying creditworthiness of the issuing state or municipality and then, to a lesser extent, on any credit enhancement. State and municipal securities can be supported by the general obligation of the issuing state or municipality, allowing the securities to be repaid by any means available to the issuing state or municipality. As of March 31, 2026, approximately 100% of state and municipal securities were supported by the general obligation of corresponding states or municipalities. Approximately 73% of these securities were school district issuances, which are also supported by the states of the issuing municipalities.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Corporation carried out an evaluation, under the supervision and with the participation of the Corporation's management, including the Corporation's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Corporation's disclosure controls and procedures pursuant to Rule 13a-15, promulgated under the Exchange Act. Based upon that evaluation, the Corporation's Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2026, the Corporation's disclosure controls and procedures are effective. Disclosure controls and procedures are

controls and procedures that are designed to ensure that information required to be disclosed in Corporation reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

The information presented in the "Legal Proceedings" section of Note 14 "Commitments and Contingencies" in the Notes to Consolidated Financial Statements in Part I, "Item 1. Financial Statements" in this Quarterly Report on Form 10-Q is incorporated herein by reference.

Item 1A. Risk Factors

There have been no material changes to the risk factors previously disclosed in Part I, Item 1A. Risk Factors of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a)  None.

(b)  None.

(c)<br><br><br><br>                            Period Total Number of Shares Purchased Average Price Paid per Share(1) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(2)
January 1, 2026 to January 31, 2026 — $ — — $ 150,000,000
February 1, 2026 to February 28, 2026 150,000 20.70 150,000 146,928,720
March 1, 2026 to March 31, 2026 1,062,650 20.14 1,062,650 125,758,455

(1) Includes commission and 1% excise tax

(2) Excludes commission and 1% excise tax

On December 16, 2025, the Corporation announced that its Board of Directors approved the 2026 Repurchase Program. The 2026 Repurchase Program will expire on January 31, 2027. Under the 2026 Repurchase Program the Corporation is authorized to repurchase up to $150.0 million of shares of its common stock. Under this authorization, up to $25.0 million of the $150.0 million authorization may be used to repurchase the Corporation's preferred stock and outstanding subordinated notes.

The 2026 Repurchase Program may be discontinued at any time.

As permitted by securities laws and other legal requirements and subject to market conditions and other factors, purchases may be made from time to time under the 2026 Repurchase Program in open market or privately negotiated transactions, including without limitation, through accelerated share repurchase transactions.

During the three months ended March 31, 2026, 1,212,650 shares of the Corporation's common stock were repurchased under the 2026 Repurchase Program at a cost of $24.5 million or an average of $20.21 per share.

Item 5. Other Information

(c) None of the Corporation's directors or "officers" (as defined in Rule 16a-1(f) (17 C.F.R. § 240.16a-1(f))) adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" (as those terms are defined in Item 408 of Regulation S-K (17 C.F.R. § 229.408)) during the fiscal quarter ended March 31, 2026.

Item 6. Exhibits

2.1 Agreement and Plan of Merger, dated as of November 24, 2025, by and between Fulton Financial Corporation and Blue Foundry Bancorp (Incorporated by reference to Exhibit 2.1 of the Fulton Financial Corporation Current Report on Form 8-K filed on November 25, 2025).
3.1 Articles of Incorporation, as amended and restated, of Fulton Financial Corporation as amended (Incorporated by reference to Exhibit 3.1 of the Fulton Financial Corporation Current Report Form 8-K filed June 24, 2011).
3.2 Statement with Respect to Shares of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A of Fulton Financial Corporation, dated October 23, 2020, filed with the Pennsylvania Department of State (Incorporated by reference to Exhibit 3.1 of the Fulton Financial Corporation Current Report on Form 8-K filed on October 29, 2020).
3.3 Bylaws of Fulton Financial Corporation as amended (Incorporated by reference to Exhibit 3.1 of the Fulton Financial Corporation Current Report on Form 8-K filed May 14, 2021).
4.1 Deposit Agreement, dated October 29, 2020, among Fulton Financial Corporation, Equiniti Trust Company, as depositary, and the holders from time to time of the depositary receipts described therein (Incorporated by reference to Exhibit 4.1 of the Fulton Financial Corporation Current Report on Form 8-K filed on October 29, 2020).
4.2 Form of depositary receipt representing the Depositary Shares (Included in Exhibit 4.1).
4.3 Stock Certificate (Incorporated by reference as Exhibit 4.1 of Fulton Financial Corporation Registration Statement on Form S-4 filed on April 21, 2022).
31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2 Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101 Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Unaudited Consolidated Balance Sheets, (ii) Unaudited Consolidated Statements of Income, (iii) Unaudited Consolidated Statements of Comprehensive Income, (iv) Unaudited Consolidated Statements of Shareholders' Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.
104 Cover page interactive data file (formatted as inline XBRL and contained in Exhibit 101)

FULTON FINANCIAL CORPORATION AND SUBSIDIARIES

SIGNATURES

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 thereunto duly authorized.

FULTON FINANCIAL CORPORATION
Date: May 8, 2026 /s/ Curtis J. Myers
Curtis J. Myers
Chairman, Chief Executive Officer and President
Date: May 8, 2026 /s/ Richard S. Kraemer
Richard S. Kraemer
Senior Executive Vice President and Chief Financial Officer

55

Document

Exhibit 31.1 – Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Curtis J. Myers, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Fulton Financial Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2026
/s/ Curtis J. Myers
Curtis J. Myers
Chairman, Chief Executive Officer and President

Document

Exhibit 31.2 – Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Richard S. Kraemer, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Fulton Financial Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2026
/s/ Richard S. Kraemer
Richard S. Kraemer
Senior Executive Vice President and Chief Financial Officer

Document

Exhibit 32.1 - Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, Curtis J. Myers, Chief Executive Officer of Fulton Financial Corporation, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, certify that:

The Form10-Q of Fulton Financial Corporation, containing the consolidated financial statements for the quarter ended March 31, 2026, fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934. The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Fulton Financial Corporation.

Date: May 8, 2026
/s/ Curtis J. Myers
Curtis J. Myers
Chairman, Chief Executive Officer and President

Document

Exhibit 32.2 - Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, Richard S. Kraemer, Chief Financial Officer of Fulton Financial Corporation, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, certify that:

The Form 10-Q of Fulton Financial Corporation, containing the consolidated financial statements for the quarter ended March 31, 2026, fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934. The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Fulton Financial Corporation.

May 8, 2026
/s/ Richard S. Kraemer
Richard S. Kraemer
Senior Executive Vice President and Chief Financial Officer

Report a Problem

Category
Description
Email (optional, for follow-up)