8-K
FULTON FINANCIAL CORP (FULT)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
July 16, 2024
Date of Report (date of earliest event reported)
Fulton Financial Corporation
(Exact name of registrant as specified in its charter)
| Pennsylvania | 001-39680 | 23-2195389 | ||
|---|---|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
| One Penn Square, | P.O. Box 4887 | Lancaster, | Pennsylvania | 17604 |
| (Address of Principal Executive Offices) | (Zip Code) |
(717) 291-2411
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each 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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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Item 2.02 Results of Operations and Financial Condition.
On July 16, 2024, Fulton Financial Corporation (the "Corporation") issued a press release (the "Press Release") announcing its results of operations for the second quarter ended June 30, 2024. A copy of the Press Release and supplementary financial information which accompanied the Press Release are attached as Exhibit 99.1 to this Current Report on Form 8-K (this "Current Report") and are incorporated herein by reference. The Corporation also posted on its Investor Relations website, www.fultonbank.com, presentation materials the Corporation intends to use during a conference call and webcast to discuss those results on Wednesday, July 17, 2024 at 10:00 a.m. eastern time. A copy of the presentation materials is attached as Exhibit 99.2 to this Current Report and is incorporated herein by reference.
The information included in Exhibit 99.1 shall be deemed filed for purposes of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and therefore may be incorporated by reference in filings under the Securities Act of 1933, as amended (the "Securities Act"). The information included in Exhibit 99.2 is being furnished and shall not be deemed filed for purposes of the Exchange Act or be incorporated by reference in any filing under the Securities Act.
Forward-Looking Statements
This Current Report, including Exhibits 99.1 and 99.2, may contain forward-looking statements with respect to the Corporation's financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," "projects," the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation's future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation's business or financial results. Management’s "2024 Outlook" contained in Exhibit 99.2 to this Current Report is comprised of forward-looking statements.
Forward-looking statements are neither historical facts nor assurance of future performance. Instead, the statements are based on current beliefs, expectations and assumptions regarding the future of the Corporation's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation's control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov).
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release dated July 16, 2024 containing financial information for the quarter ended June 30, 2024, deemed filed under the Securities Exchange Act of 1934. |
| 99.2 | Presentation materials to be discussed during the conference call and webcast on July 17, 2024, deemed furnished under the Securities Exchange Act of 1934. |
| 104 | Cover page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: July 16, 2024 | FULTON FINANCIAL CORPORATION |
|---|---|
| By: /s/ Beth Ann L. Chivinski | |
| Beth Ann L. Chivinski | |
| Senior Executive Vice President and | |
| Interim Chief Financial Officer |
Document
Exhibit 99.1
FULTON FINANCIAL
CORPORATION
FOR IMMEDIATE RELEASE
Media Contact: Lacey Dean (717) 735-8688
Investor Contact: Matt Jozwiak (717) 327-2657
Fulton Financial Corporation Announces Second Quarter 2024 Results
(July 16, 2024) – Lancaster, PA – Fulton Financial Corporation (NASDAQ: FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $92.4 million, or $0.52 per diluted share, for the second quarter of 2024, an increase of $33.0 million, or $0.16 per share, in comparison to the first quarter of 2024. Operating net income available to common shareholders for the three months ended June 30, 2024 was $82.5 million, or $0.47 per diluted share(1), an increase of $17.1 million, or $0.07 per share in comparison to the first quarter of 2024.
"The second quarter was an extraordinary quarter for Fulton. I want to personally thank both our new Republic teammates and our dedicated Fulton team for an exceptional effort," said Curtis J. Myers Chairman and CEO of Fulton Financial Corporation. "Fulton's solid performance, steady business trends and stable asset quality were supplemented by a meaningful contribution from the Republic transaction."
Republic Transaction
•On April 26, 2024, the Corporation announced that its wholly owned banking subsidiary, Fulton Bank, National Association ("Fulton Bank"), acquired substantially all of the assets and assumed substantially all of the deposits and certain liabilities of Republic First Bank, doing business as Republic Bank ("Republic Bank"), from the Federal Deposit Insurance Corporation (the "FDIC"), as receiver for Republic Bank (the "Acquisition"), pursuant to the terms of the Purchase and Assumption Agreement - Whole Bank, All Deposits, effective as of April 26, 2024 (the "Acquisition Date"), among the FDIC, as receiver of Republic Bank, the FDIC and Fulton Bank.
•The Acquisition included total assets with preliminary fair values of approximately $4.8 billion including total loans with preliminary fair values of approximately $2.5 billion and investments with a fair value of $1.9 billion. Following the Acquisition, the Corporation sold the acquired investments with a portion of the proceeds used to repay $1.4 billion of assumed borrowings. In the Acquisition, the Corporation assumed $4.1 billion of deposits without a premium. Additionally, the Corporation received $809.9 million in cash from the FDIC and $208.5 million in cash reflected on Republic Bank's balance sheet.
(1) Financial measure derived by methods other than generally accepted accounting principles ("GAAP"). Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of the press release.
Financial Highlights
Second quarter of 2024 results were impacted by the following items:
•Preliminary gain on acquisition of $47.4 million (net of tax).
•Core deposit intangible of $92.6 million in connection with the Acquisition resulting in intangible amortization expense of $4.1 million for the quarter.
•Provision for credit losses of $23.4 million related to non-purchased credit deteriorated loans acquired in the Acquisition.
•Acquisition-related expenses of $13.8 million.
•Pre-tax gain of $20.3 million in connection with a sale-leaseback transaction (the "Sale-Leaseback Transaction") involving 40 Fulton Bank financial center office locations.
•Restructured a portion of the available-for-sale investment portfolio and realized a pre-tax loss of $20.3 million on the sale of $356.4 million of investment securities with the proceeds reinvested in higher-yielding securities of a similar type and similar duration.
•FultonFirst implementation and asset disposal costs of $6.3 million.
•Issued 19,166,667 shares of common stock at $15.00 per share resulting in proceeds of approximately $273.0 million net of issuance costs.
The following items highlight notable changes in the components of net income in the second quarter of 2024 compared to the first quarter of 2024:
•Net interest income totaled $241.7 million, an increase of $34.8 million. The Acquisition contributed approximately $30.7 million to the increase.
•Net interest margin was 3.43%, an increase of 11 basis points, entirely due to the Acquisition.
•Non-interest income before investment securities gains (losses) was $113.3 million compared to $57.1 million in the first quarter of 2024. The increase was primarily due to a $47.4 million gain on acquisition (net of tax) as well as $2.8 million from Republic Bank's operations. The remaining $6.1 million increase in non-interest income included a $1.3 million decrease in losses from equity method investments, a $0.9 million increase in merchant fee income due to seasonality and a merchant fee increase during the quarter, a $0.9 million increase in mortgage banking income from higher loan volumes and higher spreads, an $0.8 million increase in wealth management revenues due to an increase in assets under management in the brokerage business due to equity market returns and organic sales results, a $0.6 million increase in cash management fee
income due to an increase in account analysis fees with customers electing to move funds to interest-bearing accounts along with a pricing increase and a $0.3 million increase in gains from Small Business Administration loan sales.
•Excluding the $20.3 million gain on the Sale-Leaseback Transaction, reflected in other expense, non-interest expense was $219.8 million compared to $177.6 million in the first quarter of 2024. The increase was largely due to $13.8 million of Acquisition-related expenses and $21.1 million from Republic Bank's operations. The remaining increase of $7.3 million was primarily due to a $6.7 million increase in salaries and benefits expense as a result of an increase in variable incentive expenses, the impact of the annual merit increases and approximately $1.0 million of severance costs related to the FultonFirst initiative.
Balance Sheet Summary
•Net loans totaled $24.1 billion, an increase of $2.7 billion compared to $21.4 billion as of March 31, 2024. The increase was primarily due to the Acquisition resulting in an increase of $2.5 billion based on preliminary fair values as of the Acquisition Date. The reduction in fair value on the acquired loans as of the Acquisition Date was $378.9 million, which included an adjustment for interest rates of $299.5 million, an adjustment for credit of $55.9 million on purchased credit deteriorated ("PCD") loans and an adjustment for credit of $23.4 million for non-PCD loans. Excluding the impact from the day 1 PCD credit-related adjustment of $55.9 million and purchase accounting accretion of $10.4 million, net loans acquired from Republic Bank declined approximately $33.1 million subsequent to the Acquisition Date. Excluding the Acquisition, net loans increased $123.6 million largely due to increases of $102.9 million and $63.8 million in residential mortgage loans and construction loans, respectively, partially offset by a decrease of $25.7 million in consumer loans and a $19.8 million decrease in leases and other loans.
•Deposits totaled $25.6 billion, an increase of $3.8 billion compared to $21.7 billion as of March 31, 2024. The increase was primarily due to the Acquisition resulting in an increase of $3.6 billion based on preliminary fair values as of the Acquisition Date. Deposits assumed in the Acquisition declined approximately $357.3 million subsequent to the Acquisition Date. Excluding the Acquisition, deposits increased $62.7 million largely due to increases of $180.1 million, $159.4 million and $102.8 million in interest-bearing demand deposits, time deposits and savings deposits, respectively, partially offset by decreases of $190.8 million in brokered deposits and $188.8 million in noninterest-bearing demand deposits.
Provision for Credit Losses and Asset Quality
•The provision for credit losses was $32.1 million in the second quarter of 2024 compared to $10.9 million in the first quarter of 2024. The increase was primarily related to the Acquisition, which included a provision for credit losses of $23.4 million for non-PCD loans. Excluding the Acquisition, the provision declined $2.2 million primarily due to a $1.4 million reduction in the reserve for unfunded commitments.
•Non-performing assets were $163.8 million, or 0.52% of total assets, at June 30, 2024, in comparison to $156.4 million, or 0.57% of total assets, at March 31, 2024. The dollar increase was largely due to the Acquisition.
•Net charge-offs for the second quarter of 2024 were 0.19% of total average loans in comparison to 0.16% in the first quarter of 2024.
•The allowance for credit losses attributable to net loans totaled $375.9 million, or 1.56% of total loans at June 30, 2024, an increase of $78.1 million. The Acquisition resulted in a $79.4 million increase in the allowance for credit losses.
Additional information on Fulton is available on the Internet at www.fultonbank.com.
Safe Harbor Statement
This press release may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," “projects,” the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results.
Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, the statements are based on current beliefs, expectations and assumptions regarding the future of the Corporation’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation’s control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov).
Non-GAAP Financial Measures
The Corporation uses certain financial measures in this press release that have been derived from methods other than GAAP. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this press release.
| FULTON FINANCIAL CORPORATION | |||||
|---|---|---|---|---|---|
| SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) | |||||
| (dollars in thousands, except per share and shares data) | |||||
| Three months ended | |||||
| Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | |
| 2024 | 2024 | 2023 | 2023 | 2023 | |
| Ending Balances | |||||
| Investment securities | |||||
| Net loans | 24,106,297 | 21,444,483 | 21,351,094 | 21,177,508 | 21,044,685 |
| Total assets | 31,769,813 | 27,642,957 | 27,571,915 | 27,375,177 | 27,403,163 |
| Deposits | 25,559,654 | 21,741,950 | 21,537,623 | 21,421,589 | 21,206,540 |
| Shareholders' equity | 3,101,609 | 2,757,679 | 2,760,139 | 2,566,693 | 2,642,152 |
| Average Balances | |||||
| Investment securities | 4,043,136 | 3,672,844 | 3,665,261 | 3,834,824 | 3,916,130 |
| Net loans | 23,345,914 | 21,370,033 | 21,255,779 | 21,121,277 | 20,866,235 |
| Total assets | 30,774,891 | 27,427,626 | 27,397,671 | 27,377,836 | 27,235,567 |
| Deposits | 24,642,954 | 21,378,754 | 21,476,548 | 21,357,295 | 21,207,143 |
| Shareholders' equity | 2,952,671 | 2,766,945 | 2,618,024 | 2,645,977 | 2,647,464 |
| Income Statement | |||||
| Net interest income | 241,720 | 206,937 | 212,006 | 213,842 | 212,852 |
| Provision for credit losses | 32,056 | 10,925 | 9,808 | 9,937 | 9,747 |
| Non-interest income | 92,994 | 57,140 | 59,378 | 55,961 | 60,585 |
| Non-interest expense | 199,488 | 177,600 | 180,552 | 171,020 | 168,018 |
| Income before taxes | 103,170 | 75,552 | 81,024 | 88,846 | 95,672 |
| Net income available to common shareholders | 92,413 | 59,379 | 61,701 | 69,535 | 77,045 |
| Per Share | |||||
| Net income available to common shareholders (basic) | 0.53 | 0.36 | 0.38 | 0.42 | 0.46 |
| Net income available to common shareholders (diluted) | 0.52 | 0.36 | 0.37 | 0.42 | 0.46 |
| Operating net income available to common shareholders(1) | 0.47 | 0.40 | 0.42 | 0.43 | 0.47 |
| Cash dividends | 0.17 | 0.17 | 0.17 | 0.16 | 0.16 |
| Common shareholders' equity | 16.00 | 15.82 | 15.67 | 14.47 | 14.75 |
| Common shareholders' equity (tangible)(1) | 12.43 | 12.37 | 12.25 | 11.05 | 11.36 |
| Weighted average shares (basic) | 175,305 | 162,706 | 163,975 | 164,566 | 165,854 |
| Weighted average shares (diluted) | 176,934 | 164,520 | 165,650 | 166,023 | 167,191 |
All values are in US Dollars.
| (1) Non-GAAP financial measure. Refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this press release. | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three months ended | ||||||||||||||||||||||
| Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | ||||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||||
| Asset Quality | ||||||||||||||||||||||
| Net charge-offs to average loans | 0.19 | % | 0.16 | % | 0.15 | % | 0.10 | % | 0.04 | % | ||||||||||||
| Non-performing loans to total net loans | 0.67 | % | 0.73 | % | 0.72 | % | 0.67 | % | 0.70 | % | ||||||||||||
| Non-performing assets to total assets | 0.52 | % | 0.57 | % | 0.56 | % | 0.52 | % | 0.55 | % | ||||||||||||
| ACL - loans(1) to total loans | 1.56 | % | 1.39 | % | 1.37 | % | 1.38 | % | 1.37 | % | ||||||||||||
| ACL - loans(1) to non-performing loans | 232 | % | 191 | % | 191 | % | 208 | % | 195 | % | ||||||||||||
| Profitability | ||||||||||||||||||||||
| Return on average assets | 1.24 | % | 0.91 | % | 0.93 | % | 1.04 | % | 1.17 | % | ||||||||||||
| Operating return on average assets(2) | 1.11 | % | 1.00 | % | 1.03 | % | 1.08 | % | 1.18 | % | ||||||||||||
| Return on average common shareholders' equity | 13.47 | % | 9.28 | % | 10.09 | % | 11.25 | % | 12.59 | % | ||||||||||||
| Operating return on average common shareholders' equity (tangible)(2) | 15.56 | % | 13.08 | % | 14.68 | % | 15.17 | % | 16.52 | % | ||||||||||||
| Net interest margin | 3.43 | % | 3.32 | % | 3.36 | % | 3.40 | % | 3.40 | % | ||||||||||||
| Efficiency ratio(2) | 62.6 | % | 63.2 | % | 62.0 | % | 61.5 | % | 60.1 | % | ||||||||||||
| Non-interest expense to total average assets | 2.61 | % | 2.60 | % | 2.61 | % | 2.48 | % | 2.47 | % | ||||||||||||
| Operating non-interest expense to total average assets(2) | 2.55 | % | 2.49 | % | 2.47 | % | 2.47 | % | 2.46 | % | ||||||||||||
| Capital Ratios(3) | ||||||||||||||||||||||
| Tangible common equity ratio ("TCE")(2) | 7.3 | % | 7.4 | % | 7.4 | % | 6.8 | % | 7.0 | % | ||||||||||||
| Tier 1 leverage ratio | 9.0 | % | 9.3 | % | 9.5 | % | 9.4 | % | 9.3 | % | ||||||||||||
| Common equity Tier 1 capital ratio | 10.3 | % | 10.3 | % | 10.3 | % | 10.3 | % | 10.1 | % | ||||||||||||
| Tier 1 risk-based capital ratio | 11.1 | % | 11.1 | % | 11.2 | % | 11.1 | % | 11.0 | % | ||||||||||||
| Total risk-based capital ratio | 13.8 | % | 14.0 | % | 14.0 | % | 14.0 | % | 13.8 | % | ||||||||||||
| (1) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet<br><br>("OBS") credit exposures. | ||||||||||||||||||||||
| (2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release. | ||||||||||||||||||||||
| (3) Regulatory capital ratios as of June 30, 2024 are preliminary estimates and prior periods are actual. | ||||||||||||||||||||||
| FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||
| CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | ||||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||||
| Cash and due from banks | $ | 333,238 | $ | 247,581 | $ | 300,343 | $ | 304,042 | $ | 123,779 | ||||||||||||
| Other interest-earning assets | 1,188,341 | 231,389 | 373,772 | 222,781 | 505,141 | |||||||||||||||||
| Loans held for sale | 26,822 | 10,624 | 15,158 | 20,368 | 14,673 | |||||||||||||||||
| Investment securities | 4,184,027 | 3,783,392 | 3,666,274 | 3,698,601 | 3,867,334 | |||||||||||||||||
| Net loans | 24,106,297 | 21,444,483 | 21,351,094 | 21,177,508 | 21,044,685 | |||||||||||||||||
| Less: ACL - loans(1) | (375,941) | (297,888) | (293,404) | (292,739) | (287,442) | |||||||||||||||||
| Loans, net | 23,730,356 | 21,146,595 | 21,057,690 | 20,884,769 | 20,757,243 | |||||||||||||||||
| Net premises and equipment | 180,642 | 213,541 | 222,881 | 215,626 | 216,322 | |||||||||||||||||
| Accrued interest receivable | 120,752 | 107,089 | 107,972 | 101,624 | 96,991 | |||||||||||||||||
| Goodwill and intangible assets | 648,026 | 560,114 | 560,687 | 561,284 | 561,885 | |||||||||||||||||
| Other assets | 1,357,609 | 1,342,632 | 1,267,138 | 1,366,082 | 1,259,795 | |||||||||||||||||
| Total Assets | $ | 31,769,813 | $ | 27,642,957 | $ | 27,571,915 | $ | 27,375,177 | $ | 27,403,163 | ||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||
| Deposits | $ | 25,559,654 | $ | 21,741,950 | $ | 21,537,623 | $ | 21,421,589 | $ | 21,206,540 | ||||||||||||
| Borrowings | 2,178,597 | 2,296,040 | 2,487,526 | 2,370,112 | 2,719,114 | |||||||||||||||||
| Other liabilities | 929,953 | 847,288 | 786,627 | 1,016,783 | 835,357 | |||||||||||||||||
| Total Liabilities | 28,668,204 | 24,885,278 | 24,811,776 | 24,808,484 | 24,761,011 | |||||||||||||||||
| Shareholders' equity | 3,101,609 | 2,757,679 | 2,760,139 | 2,566,693 | 2,642,152 | |||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 31,769,813 | $ | 27,642,957 | $ | 27,571,915 | $ | 27,375,177 | $ | 27,403,163 | ||||||||||||
| LOANS, DEPOSITS AND BORROWINGS DETAIL: | ||||||||||||||||||||||
| Loans, by type: | ||||||||||||||||||||||
| Real estate - commercial mortgage | $ | 9,289,770 | $ | 8,252,117 | $ | 8,127,728 | $ | 8,106,300 | $ | 7,846,861 | ||||||||||||
| Commercial and industrial | 4,967,796 | 4,467,589 | 4,545,552 | 4,577,334 | 4,599,759 | |||||||||||||||||
| Real estate - residential mortgage | 6,248,856 | 5,395,720 | 5,325,923 | 5,279,681 | 5,147,262 | |||||||||||||||||
| Real estate - home equity | 1,120,878 | 1,040,335 | 1,047,184 | 1,045,438 | 1,061,891 | |||||||||||||||||
| Real estate - construction | 1,463,799 | 1,249,199 | 1,239,075 | 1,078,263 | 1,308,564 | |||||||||||||||||
| Consumer | 692,086 | 698,421 | 729,318 | 743,976 | 763,530 | |||||||||||||||||
| Leases and other loans(2) | 323,112 | 341,102 | 336,314 | 346,516 | 316,818 | |||||||||||||||||
| Total Net Loans | $ | 24,106,297 | $ | 21,444,483 | $ | 21,351,094 | $ | 21,177,508 | $ | 21,044,685 | ||||||||||||
| Deposits, by type: | ||||||||||||||||||||||
| Noninterest-bearing demand | $ | 5,609,383 | $ | 5,086,514 | $ | 5,314,094 | $ | 5,575,374 | $ | 5,865,855 | ||||||||||||
| Interest-bearing demand | 7,478,077 | 5,521,017 | 5,722,695 | 5,757,487 | 5,543,320 | |||||||||||||||||
| Savings | 7,563,495 | 6,846,038 | 6,616,901 | 6,707,729 | 6,646,448 | |||||||||||||||||
| Total demand and savings | 20,650,955 | 17,453,569 | 17,653,690 | 18,040,590 | 18,055,623 | |||||||||||||||||
| Brokered | 995,975 | 1,152,427 | 1,144,692 | 941,059 | 949,259 | |||||||||||||||||
| Time | 3,912,724 | 3,135,954 | 2,739,241 | 2,439,940 | 2,201,658 | |||||||||||||||||
| Total Deposits | $ | 25,559,654 | $ | 21,741,950 | $ | 21,537,623 | $ | 21,421,589 | $ | 21,206,540 | ||||||||||||
| Borrowings, by type: | ||||||||||||||||||||||
| Federal funds purchased | $ | — | $ | — | $ | 240,000 | $ | 544,000 | $ | 555,000 | ||||||||||||
| Federal Home Loan Bank advances | 750,000 | 900,000 | 1,100,000 | 730,000 | 1,165,000 | |||||||||||||||||
| Senior debt and subordinated debt | 535,741 | 535,566 | 535,384 | 540,174 | 539,994 | |||||||||||||||||
| Other borrowings | 892,856 | 860,474 | 612,142 | 555,938 | 459,120 | |||||||||||||||||
| Total Borrowings | $ | 2,178,597 | $ | 2,296,040 | $ | 2,487,526 | $ | 2,370,112 | $ | 2,719,114 | ||||||||||||
| (1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures. | ||||||||||||||||||||||
| (2) Includes equipment lease financing, overdraft and net origination fees and costs. | ||||||||||||||||||||||
| FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||||||
| (dollars in thousands, except per share and share data) | ||||||||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||||||||
| Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | Jun 30 | |||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net Interest Income: | ||||||||||||||||||||||
| Interest income | $ | 400,506 | $ | 339,666 | $ | 338,134 | $ | 330,371 | $ | 314,912 | $ | 740,172 | $ | 604,732 | ||||||||
| Interest expense | 158,786 | 132,729 | 126,128 | 116,529 | 102,060 | 291,515 | 176,293 | |||||||||||||||
| Net Interest Income | 241,720 | 206,937 | 212,006 | 213,842 | 212,852 | 448,657 | 428,439 | |||||||||||||||
| Provision for credit losses | 32,056 | 10,925 | 9,808 | 9,937 | 9,747 | 42,981 | 34,291 | |||||||||||||||
| Net Interest Income after Provision | 209,664 | 196,012 | 202,198 | 203,905 | 203,105 | 405,676 | 394,148 | |||||||||||||||
| Non-Interest Income: | ||||||||||||||||||||||
| Wealth management | 20,990 | 20,155 | 19,388 | 19,413 | 18,678 | 41,144 | 36,740 | |||||||||||||||
| Commercial banking: | ||||||||||||||||||||||
| Merchant and card | 7,798 | 6,808 | 7,045 | 7,626 | 7,700 | 14,607 | 14,534 | |||||||||||||||
| Cash management | 6,966 | 6,305 | 6,030 | 5,960 | 5,835 | 13,271 | 11,350 | |||||||||||||||
| Capital markets | 2,585 | 2,341 | 4,258 | 2,960 | 6,092 | 4,926 | 8,436 | |||||||||||||||
| Other commercial banking | 4,061 | 3,375 | 3,447 | 3,176 | 3,518 | 7,434 | 6,338 | |||||||||||||||
| Total commercial banking | 21,410 | 18,829 | 20,780 | 19,722 | 23,145 | 40,238 | 40,658 | |||||||||||||||
| Consumer banking: | ||||||||||||||||||||||
| Card | 8,305 | 6,628 | 6,739 | 6,770 | 6,592 | 14,933 | 12,835 | |||||||||||||||
| Overdraft | 3,377 | 2,786 | 2,991 | 2,996 | 2,696 | 6,163 | 5,429 | |||||||||||||||
| Other consumer banking | 2,918 | 2,254 | 2,357 | 2,407 | 2,432 | 5,172 | 4,673 | |||||||||||||||
| Total consumer banking | 14,600 | 11,668 | 12,087 | 12,173 | 11,720 | 26,268 | 22,937 | |||||||||||||||
| Mortgage banking | 3,951 | 3,090 | 2,288 | 3,190 | 2,940 | 7,041 | 4,910 | |||||||||||||||
| Gain on acquisition, net of tax | 47,392 | — | — | — | — | 47,392 | — | |||||||||||||||
| Other | 4,933 | 3,398 | 5,587 | 1,463 | 4,106 | 8,332 | 7,075 | |||||||||||||||
| Non-interest income before investment securities gains (losses) | 113,276 | 57,140 | 60,130 | 55,961 | 60,589 | 170,415 | 112,320 | |||||||||||||||
| Investment securities gains (losses), net | (20,282) | — | (752) | — | (4) | (20,282) | 19 | |||||||||||||||
| Total Non-Interest Income | 92,994 | 57,140 | 59,378 | 55,961 | 60,585 | 150,133 | 112,339 | |||||||||||||||
| Non-Interest Expense: | ||||||||||||||||||||||
| Salaries and employee benefits | 110,630 | 95,481 | 97,275 | 96,757 | 94,102 | 206,111 | 183,385 | |||||||||||||||
| Data processing and software | 20,357 | 17,661 | 16,985 | 16,914 | 16,776 | 38,018 | 32,571 | |||||||||||||||
| Net occupancy | 17,793 | 16,149 | 14,647 | 14,561 | 14,374 | 33,943 | 28,812 | |||||||||||||||
| Other outside services | 16,933 | 13,283 | 14,670 | 12,094 | 10,834 | 30,216 | 20,960 | |||||||||||||||
| FDIC insurance | 6,696 | 6,104 | 11,138 | 4,738 | 4,895 | 12,800 | 9,690 | |||||||||||||||
| Intangible amortization | 4,688 | 573 | 597 | 601 | 1,072 | 5,261 | 1,746 | |||||||||||||||
| Equipment | 4,561 | 4,040 | 3,995 | 3,475 | 3,530 | 8,602 | 6,920 | |||||||||||||||
| Professional fees | 2,571 | 2,088 | 2,302 | 1,869 | 1,829 | 4,659 | 4,221 | |||||||||||||||
| Marketing | 2,101 | 1,912 | 3,550 | 1,913 | 1,655 | 4,012 | 3,541 | |||||||||||||||
| Acquisition-related expenses | 13,803 | — | — | — | — | 13,803 | — | |||||||||||||||
| Other | (645) | 20,309 | 15,393 | 18,098 | 18,951 | 19,662 | 35,790 | |||||||||||||||
| Total Non-Interest Expense | 199,488 | 177,600 | 180,552 | 171,020 | 168,018 | 377,087 | 327,636 | |||||||||||||||
| Income Before Income Taxes | 103,170 | 75,552 | 81,024 | 88,846 | 95,672 | 178,722 | 178,851 | |||||||||||||||
| Income tax expense | 8,195 | 13,611 | 16,761 | 16,749 | 16,065 | 21,806 | 30,931 | |||||||||||||||
| Net Income | 94,975 | 61,941 | 64,263 | 72,097 | 79,607 | 156,916 | 147,920 | |||||||||||||||
| Preferred stock dividends | (2,562) | (2,562) | (2,562) | (2,562) | (2,562) | (5,124) | (5,124) | |||||||||||||||
| Net Income Available to Common Shareholders | $ | 92,413 | $ | 59,379 | $ | 61,701 | $ | 69,535 | $ | 77,045 | $ | 151,792 | $ | 142,796 | ||||||||
| Three months ended | Six months ended | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||
| Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | Jun 30 | |||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||||
| PER SHARE: | ||||||||||||||||||||||
| Net income available to common shareholders (basic) | $0.53 | $0.36 | $0.38 | $0.42 | $0.46 | $0.90 | $0.86 | |||||||||||||||
| Net income available to common shareholders (diluted) | $0.52 | $0.36 | $0.37 | $0.42 | $0.46 | $0.89 | $0.85 | |||||||||||||||
| Cash dividends | $0.17 | $0.17 | $0.17 | $0.16 | $0.16 | $0.34 | $0.31 | |||||||||||||||
| Weighted average shares (basic) | 175,305 | 162,706 | 163,975 | 164,566 | 165,854 | 169,006 | 166,227 | |||||||||||||||
| Weighted average shares (diluted) | 176,934 | 164,520 | 165,650 | 166,023 | 167,191 | 170,769 | 167,809 | |||||||||||||||
| FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Three months ended | ||||||||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||
| Balance | Interest(1) | Rate | Balance | Interest(1) | Rate | Balance | Interest(1) | Rate | ||||||||||||||
| ASSETS | ||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||
| Net loans(2) | $ | 23,345,914 | $ | 355,533 | 6.12 | % | $ | 21,370,033 | $ | 313,882 | 5.90 | % | $ | 20,866,235 | $ | 287,154 | 5.52 | % | ||||
| Investment securities(3) | 4,396,050 | 33,799 | 3.07 | % | 3,983,753 | 27,048 | 2.71 | % | 4,234,096 | 27,303 | 2.57 | % | ||||||||||
| Other interest-earning assets | 1,125,886 | 15,730 | 5.61 | % | 249,079 | 3,328 | 5.36 | % | 529,582 | 4,860 | 3.68 | % | ||||||||||
| Total Interest-Earning Assets | 28,867,850 | 405,062 | 5.64 | % | 25,602,865 | 344,258 | 5.40 | % | 25,629,913 | 319,317 | 4.99 | % | ||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||
| Cash and due from banks | 302,381 | 282,895 | 129,682 | |||||||||||||||||||
| Premises and equipment | 203,166 | 223,375 | 216,847 | |||||||||||||||||||
| Other assets | 1,759,138 | 1,614,746 | 1,541,657 | |||||||||||||||||||
| Less: ACL - loans(4) | (357,644) | (296,255) | (282,532) | |||||||||||||||||||
| Total Assets | $ | 30,774,891 | $ | 27,427,626 | $ | 27,235,567 | ||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||
| Demand deposits | $ | 7,080,302 | $ | 31,748 | 1.80 | % | $ | 5,596,725 | $ | 20,500 | 1.47 | % | $ | 5,535,669 | $ | 14,612 | 1.06 | % | ||||
| Savings deposits | 7,309,141 | 44,901 | 2.47 | % | 6,669,228 | 38,797 | 2.34 | % | 6,632,572 | 29,289 | 1.77 | % | ||||||||||
| Brokered deposits | 1,123,328 | 15,074 | 5.40 | % | 1,083,382 | 14,655 | 5.44 | % | 954,773 | 12,135 | 5.10 | % | ||||||||||
| Time deposits | 3,670,158 | 39,364 | 4.31 | % | 2,968,344 | 29,622 | 4.01 | % | 2,063,038 | 13,763 | 2.68 | % | ||||||||||
| Total Interest-Bearing Deposits | 19,182,929 | 131,087 | 2.75 | % | 16,317,679 | 103,574 | 2.55 | % | 15,186,052 | 69,799 | 1.84 | % | ||||||||||
| Borrowings and other interest-bearing liabilities | 2,441,691 | 27,699 | 4.53 | % | 2,608,376 | 29,155 | 4.46 | % | 2,790,860 | 32,261.2 | 4.60 | % | ||||||||||
| Total Interest-Bearing Liabilities | 21,624,620 | 158,786 | 2.95 | % | 18,926,055 | 132,729 | 2.82 | % | 17,976,912 | 102,060 | 2.27 | % | ||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||
| Demand deposits | 5,460,025 | 5,061,075 | 6,021,091 | |||||||||||||||||||
| Other liabilities | 737,575 | 673,551 | 590,100 | |||||||||||||||||||
| Total Liabilities | 27,822,220 | 24,660,681 | 24,588,103 | |||||||||||||||||||
| Shareholders' equity | 2,952,671 | 2,766,945 | 2,647,464 | |||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 30,774,891 | $ | 27,427,626 | $ | 27,235,567 | ||||||||||||||||
| Net interest income/net interest margin (fully taxable equivalent) | 246,276 | 3.43 | % | 211,529 | 3.32 | % | 217,257 | 3.40 | % | |||||||||||||
| Tax equivalent adjustment | (4,556) | (4,592) | (4,405) | |||||||||||||||||||
| Net Interest Income | $ | 241,720 | $ | 206,937 | $ | 212,852 | ||||||||||||||||
| (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. | ||||||||||||||||||||||
| (2) Average balances include non-performing loans. | ||||||||||||||||||||||
| (3) Average balances include amortized historical cost for available for sale ("AFS") securities; the related unrealized holding gains (losses) are included in other assets. | ||||||||||||||||||||||
| (4) ACL - loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities. | ||||||||||||||||||||||
| FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||
| AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED) | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Three months ended | ||||||||||||||||||||||
| Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | ||||||||||||||||||
| 2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||
| Loans, by type: | ||||||||||||||||||||||
| Real estate - commercial mortgage | $ | 8,958,139 | $ | 8,166,018 | $ | 8,090,627 | $ | 7,912,801 | $ | 7,775,436 | ||||||||||||
| Commercial and industrial | 4,853,583 | 4,517,179 | 4,579,441 | 4,611,376 | 4,629,919 | |||||||||||||||||
| Real estate - residential mortgage | 5,977,132 | 5,353,905 | 5,303,632 | 5,209,105 | 5,008,295 | |||||||||||||||||
| Real estate - home equity | 1,117,367 | 1,039,321 | 1,043,753 | 1,045,806 | 1,066,615 | |||||||||||||||||
| Real estate - construction | 1,430,057 | 1,240,640 | 1,153,601 | 1,254,577 | 1,306,286 | |||||||||||||||||
| Consumer | 685,183 | 721,523 | 746,011 | 761,273 | 763,407 | |||||||||||||||||
| Leases and other loans(1) | 324,453 | 331,447 | 338,714 | 326,339 | 316,277 | |||||||||||||||||
| Total Net Loans | $ | 23,345,914 | $ | 21,370,033 | $ | 21,255,779 | $ | 21,121,277 | $ | 20,866,235 | ||||||||||||
| Deposits, by type: | ||||||||||||||||||||||
| Noninterest-bearing demand | $ | 5,460,025 | $ | 5,061,075 | $ | 5,440,098 | $ | 5,672,411 | $ | 6,021,091 | ||||||||||||
| Interest-bearing demand | 7,080,302 | 5,596,725 | 5,723,169 | 5,740,229 | 5,535,669 | |||||||||||||||||
| Savings | 7,309,141 | 6,669,228 | 6,682,512 | 6,676,792 | 6,632,572 | |||||||||||||||||
| Total demand and savings | 19,849,468 | 17,327,028 | 17,845,779 | 18,089,432 | 18,189,332 | |||||||||||||||||
| Brokered | 1,123,328 | 1,083,382 | 1,051,369 | 937,657 | 954,773 | |||||||||||||||||
| Time | 3,670,158 | 2,968,344 | 2,579,400 | 2,330,206 | 2,063,038 | |||||||||||||||||
| Total Deposits | $ | 24,642,954 | $ | 21,378,754 | $ | 21,476,548 | $ | 21,357,295 | $ | 21,207,143 | ||||||||||||
| Borrowings, by type: | ||||||||||||||||||||||
| Federal funds purchased | $ | 32,637 | $ | 173,659 | $ | 446,707 | $ | 634,163 | $ | 679,401 | ||||||||||||
| Federal Home Loan Bank advances | 833,726 | 902,890 | 760,087 | 793,098 | 880,811 | |||||||||||||||||
| Senior debt and subordinated debt | 535,656 | 535,479 | 539,186 | 540,086 | 539,906 | |||||||||||||||||
| Other borrowings and other interest-bearing liabilities | 1,039,672 | 996,348 | 795,747 | 723,740 | 690,742 | |||||||||||||||||
| Total Borrowings | $ | 2,441,691 | $ | 2,608,376 | $ | 2,541,727 | $ | 2,691,087 | $ | 2,790,860 | ||||||||||||
| (1) Includes equipment lease financing, overdraft and net origination fees and costs. | ||||||||||||||||||||||
| FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||
| CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Six months ended June 30 | ||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||||||
| Balance | Interest(1) | Rate | Balance | Interest(1) | Rate | |||||||||||||||||
| ASSETS | ||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||
| Net loans(2) | $ | 22,357,972 | $ | 669,414 | 6.02 | % | $ | 20,665,779 | $ | 550,219 | 5.36 | % | ||||||||||
| Investment securities(3) | 4,189,901 | 60,847 | 2.90 | % | 4,261,718 | 54,824 | 2.57 | % | ||||||||||||||
| Other interest-earning assets | 699,547 | 19,059 | 5.47 | % | 511,456 | 8,508 | 3.34 | % | ||||||||||||||
| Total Interest-Earning Assets | 27,247,420 | 749,320 | 5.52 | % | 25,438,953 | 613,551 | 4.85 | % | ||||||||||||||
| Noninterest-Earning assets: | ||||||||||||||||||||||
| Cash and due from banks | 292,638 | 135,436 | ||||||||||||||||||||
| Premises and equipment | 213,270 | 219,920 | ||||||||||||||||||||
| Other assets | 1,686,941 | 1,552,669 | ||||||||||||||||||||
| Less: ACL - loans(4) | (326,950) | (277,942) | ||||||||||||||||||||
| Total Assets | $ | 29,113,319 | $ | 27,069,036 | ||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||
| Interest-Bearing liabilities: | ||||||||||||||||||||||
| Demand deposits | $ | 6,338,513 | $ | 52,248 | 1.66 | % | $ | 5,431,696 | $ | 23,067 | 0.86 | % | ||||||||||
| Savings deposits | 6,989,186 | 83,699 | 2.41 | % | 6,551,470 | 49,824 | 1.53 | % | ||||||||||||||
| Brokered deposits | 1,103,356 | 29,728 | 5.42 | % | 698,644 | 17,308 | 5.00 | % | ||||||||||||||
| Time deposits | 3,319,249 | 68,986 | 4.18 | % | 1,880,970 | 21,221 | 2.28 | % | ||||||||||||||
| Total Interest-Bearing Deposits | 17,750,304 | 234,661 | 2.66 | % | 14,562,780 | 111,420 | 1.54 | % | ||||||||||||||
| Borrowings and other interest-bearing liabilities | 2,525,034 | 56,854 | 4.49 | % | 2,928,819 | 64,873 | 4.43 | % | ||||||||||||||
| Total Interest-Bearing Liabilities | 20,275,338 | 291,515 | 2.89 | % | 17,491,599 | 176,293 | 2.03 | % | ||||||||||||||
| Noninterest-Bearing liabilities: | ||||||||||||||||||||||
| Demand deposits | 5,260,550 | 6,329,701 | ||||||||||||||||||||
| Other liabilities | 717,623 | 617,252 | ||||||||||||||||||||
| Total Liabilities | 26,253,511 | 24,438,552 | ||||||||||||||||||||
| Shareholders' equity | 2,859,808 | 2,630,484 | ||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 29,113,319 | $ | 27,069,036 | ||||||||||||||||||
| Net interest income/net interest margin (fully taxable equivalent) | 457,805 | 3.37 | % | 437,258 | 3.46 | % | ||||||||||||||||
| Tax equivalent adjustment | (9,148) | (8,819) | ||||||||||||||||||||
| Net Interest Income | $ | 448,657 | $ | 428,439 | ||||||||||||||||||
| (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. | ||||||||||||||||||||||
| (2) Average balances include non-performing loans. | ||||||||||||||||||||||
| (3) Average balances include amortized historical cost for AFS; the related unrealized holding gains (losses) are included in other assets. | ||||||||||||||||||||||
| (3) ACL - loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities. | ||||||||||||||||||||||
| FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | |||||||||||||||||
| AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED) | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Six months ended June 30 | ||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||
| Loans, by type: | ||||||||||||||||||||||
| Real estate - commercial mortgage | $ | 8,562,077 | $ | 7,748,356 | ||||||||||||||||||
| Commercial and industrial | 4,685,383 | 4,598,097 | ||||||||||||||||||||
| Real estate - residential mortgage | 5,665,518 | 4,900,182 | ||||||||||||||||||||
| Real estate - home equity | 1,078,344 | 1,076,270 | ||||||||||||||||||||
| Real estate - construction | 1,335,348 | 1,291,299 | ||||||||||||||||||||
| Consumer | 703,353 | 742,445 | ||||||||||||||||||||
| Leases and other loans(1) | 327,949 | 309,130 | ||||||||||||||||||||
| Total Net Loans | $ | 22,357,972 | $ | 20,665,779 | ||||||||||||||||||
| Deposits, by type: | ||||||||||||||||||||||
| Noninterest-bearing demand | $ | 5,260,550 | $ | 6,329,701 | ||||||||||||||||||
| Interest-bearing demand | 6,338,513 | 5,431,696 | ||||||||||||||||||||
| Savings | 6,989,186 | 6,551,470 | ||||||||||||||||||||
| Total demand and savings | 18,588,249 | 18,312,867 | ||||||||||||||||||||
| Brokered | 1,103,356 | 698,644 | ||||||||||||||||||||
| Time | 3,319,249 | 1,880,970 | ||||||||||||||||||||
| Total Deposits | $ | 23,010,854 | $ | 20,892,481 | ||||||||||||||||||
| Borrowings, by type: | ||||||||||||||||||||||
| Federal funds purchased | $ | 103,148 | $ | 592,753 | ||||||||||||||||||
| Federal Home Loan Bank advances | 868,308 | 1,070,148 | ||||||||||||||||||||
| Senior debt and subordinated debt | 535,567 | 539,817 | ||||||||||||||||||||
| Other borrowings | 1,018,011 | 726,101 | ||||||||||||||||||||
| Total Borrowings | $ | 2,525,034 | $ | 2,928,819 | ||||||||||||||||||
| (1) Includes equipment lease financing, overdraft and net origination fees and costs. | ||||||||||||||||||||||
| FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| ASSET QUALITY INFORMATION (UNAUDITED) | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Three months ended | Six months ended June 30 | |||||||||||||||||||||
| Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | Jun 30 | Jun 30 | ||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||||
| Allowance for credit losses related to net loans: | ||||||||||||||||||||||
| Balance at beginning of period | $ | 297,888 | $ | 293,404 | $ | 292,739 | $ | 287,442 | $ | 278,695 | $ | 293,404 | $ | 269,366 | ||||||||
| CECL day 1 provision expense(1) | 23,444 | — | — | — | — | 23,444 | — | |||||||||||||||
| Initial purchased credit deteriorated allowance for credit losses | 55,906 | — | — | — | — | 55,906 | — | |||||||||||||||
| Loans charged off: | ||||||||||||||||||||||
| Real estate - commercial mortgage | (7,853) | (26) | (3,547) | (860) | (230) | (7,879) | (13,592) | |||||||||||||||
| Commercial and industrial | (2,955) | (7,632) | (3,397) | (3,220) | (2,017) | (10,587) | (2,629) | |||||||||||||||
| Real estate - residential mortgage | (35) | (251) | — | — | (62) | (286) | (62) | |||||||||||||||
| Consumer and home equity | (1,766) | (2,238) | (2,192) | (1,803) | (1,313) | (4,004) | (3,519) | |||||||||||||||
| Real estate - construction | — | — | — | — | — | — | — | |||||||||||||||
| Leases and other loans(2) | (1,398) | (805) | (1,096) | (1,396) | (1,165) | (2,203) | (1,888) | |||||||||||||||
| Total loans charged off | (14,007) | (10,952) | (10,232) | (7,279) | (4,787) | (24,959) | (21,690) | |||||||||||||||
| Recoveries of loans previously charged off: | ||||||||||||||||||||||
| Real estate - commercial mortgage | 146 | 152 | 160 | 101 | 29 | 298 | 815 | |||||||||||||||
| Commercial and industrial | 796 | 1,248 | 779 | 620 | 988 | 2,044 | 2,074 | |||||||||||||||
| Real estate - residential mortgage | 122 | 116 | 278 | 37 | 58 | 238 | 106 | |||||||||||||||
| Consumer and home equity | 1,161 | 676 | 555 | 1,023 | 959 | 1,837 | 1,620 | |||||||||||||||
| Real estate - construction | 233 | — | 87 | — | 569 | 233 | 771 | |||||||||||||||
| Leases and other loans(2) | 247 | 162 | 374 | 400 | 213 | 409 | 329 | |||||||||||||||
| Recoveries of loans previously charged off | 2,705 | 2,354 | 2,233 | 2,181 | 2,816 | 5,059 | 5,715 | |||||||||||||||
| Net loans charged off | (11,302) | (8,598) | (7,999) | (5,098) | (1,971) | (19,900) | (15,975) | |||||||||||||||
| Provision for credit losses(1) | 10,005 | 13,082 | 8,664 | 10,395 | 10,718 | 23,087 | 34,051 | |||||||||||||||
| Balance at end of period | $ | 375,941 | $ | 297,888 | $ | 293,404 | $ | 292,739 | $ | 287,442 | $ | 375,941 | $ | 287,442 | ||||||||
| Net charge-offs to average loans | 0.19 | % | 0.16 | % | 0.15 | % | 0.10 | % | 0.04 | % | 0.18 | % | 0.15 | % | ||||||||
| Provision for credit losses related to OBS Credit Exposures | ||||||||||||||||||||||
| Provision for credit losses(1) | $ | (1,393) | $ | (2,157) | $ | 1,144 | $ | (458) | $ | (971) | $ | (3,550) | $ | 240 | ||||||||
| NON-PERFORMING ASSETS: | ||||||||||||||||||||||
| Non-accrual loans | $ | 135,367 | $ | 129,628 | $ | 121,620 | $ | 113,022 | $ | 123,280 | ||||||||||||
| Loans 90 days past due and accruing | 26,962 | 26,521 | 31,721 | 27,962 | 24,415 | |||||||||||||||||
| Total non-performing loans | 162,329 | 156,149 | 153,341 | 140,984 | 147,695 | |||||||||||||||||
| Other real estate owned | 1,444 | 277 | 896 | 2,549 | 3,881 | |||||||||||||||||
| Total non-performing assets | $ | 163,773 | $ | 156,426 | $ | 154,237 | $ | 143,533 | $ | 151,576 | ||||||||||||
| NON-PERFORMING LOANS, BY TYPE: | ||||||||||||||||||||||
| Commercial and industrial | $ | 50,817 | $ | 44,118 | $ | 41,020 | $ | 33,365 | $ | 30,588 | ||||||||||||
| Real estate - commercial mortgage | 46,343 | 47,891 | 46,527 | 44,058 | 55,048 | |||||||||||||||||
| Real estate - residential mortgage | 40,955 | 40,685 | 42,029 | 40,560 | 39,157 | |||||||||||||||||
| Consumer and home equity | 11,589 | 10,172 | 10,878 | 11,580 | 10,469 | |||||||||||||||||
| Leases and other loans(2) | 9,993 | 10,135 | 10,011 | 10,744 | 11,334 | |||||||||||||||||
| Real estate - construction | 2,632 | 3,148 | 2,876 | 677 | 1,099 | |||||||||||||||||
| Total non-performing loans | $ | 162,329 | $ | 156,149 | $ | 153,341 | $ | 140,984 | $ | 147,695 | ||||||||||||
| (1) The sum of these amounts are reflected in the provision for credit losses in the Condensed Consolidated Statements of Income. | ||||||||||||||||||||||
| (2) Includes equipment lease financing, overdraft and net origination fees and costs. | ||||||||||||||||||||||
| FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||
| SUMMARY OF ASSETS ACQUIRED AND LIABILITIES ASSUMED IN ACQUISITION (UNAUDITED) | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| as of April 26, 2024 | ||||||||||||||||||||||
| Assets Acquired/Liabilities Assumed | Fair Value Adjustments | Adjusted Assets Acquired/Liabilities Assumed | ||||||||||||||||||||
| Cash payment received from FDIC | $ | 809,920 | $ | — | $ | 809,920 | ||||||||||||||||
| Assets acquired: | ||||||||||||||||||||||
| Cash and due from banks | 208,451 | — | 208,451 | |||||||||||||||||||
| Other interest-earning assets | 37,931 | — | 37,931 | |||||||||||||||||||
| Investment securities | 1,961,099 | (22,528) | 1,938,571 | |||||||||||||||||||
| Net loans | 2,883,930 | (378,890) | 2,505,040 | |||||||||||||||||||
| Net premises and equipment | 2,669 | (1,699) | 970 | |||||||||||||||||||
| Accrued interest receivable | 16,164 | — | 16,164 | |||||||||||||||||||
| Goodwill and intangible assets | — | 92,600 | 92,600 | |||||||||||||||||||
| Other assets | 11,715 | 67 | 11,782 | |||||||||||||||||||
| Total Assets | $ | 5,121,959 | $ | (310,450) | $ | 4,811,509 | ||||||||||||||||
| Liabilities assumed: | ||||||||||||||||||||||
| Deposits | 4,112,325 | — | 4,112,325 | |||||||||||||||||||
| Borrowings | 1,434,846 | 1,130 | 1,435,976 | |||||||||||||||||||
| Other liabilities | 10,771 | 1,088 | 11,859 | |||||||||||||||||||
| Total Liabilities | $ | 5,557,942 | $ | 2,218 | $ | 5,560,160 | ||||||||||||||||
| Gain on acquisition, before tax | $ | 61,269 | ||||||||||||||||||||
| Gain on acquisition, net of tax | $ | 47,392 | ||||||||||||||||||||
| FULTON FINANCIAL CORPORATION | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||
| RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) | ||||||||||||||||||||||
| (dollars in thousands, except per share and share data) | ||||||||||||||||||||||
| Explanatory note: | This press release contains supplemental financial information, as detailed below, that has been derived by methods other than GAAP. The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow: | |||||||||||||||||||||
| Three months ended | ||||||||||||||||||||||
| Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | ||||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||||
| Operating net income available to common shareholders | ||||||||||||||||||||||
| Net income available to common shareholders | $ | 92,413 | $ | 59,379 | $ | 61,701 | $ | 69,535 | $ | 77,045 | ||||||||||||
| Plus: Core deposit intangible amortization | 4,556 | 441 | 441 | 441 | 912 | |||||||||||||||||
| Plus: Acquisition-related expense | 13,803 | — | — | — | — | |||||||||||||||||
| Less: Non-PCD credit-related interest income from acquisition | (571) | — | — | — | — | |||||||||||||||||
| Plus: CECL day 1 provision expense | 23,444 | — | — | — | — | |||||||||||||||||
| Plus: Interest rate derivative transition valuation(1) | (137) | (151) | (1,102) | 2,958 | — | |||||||||||||||||
| Less: Gain on acquisition, net of tax | (47,392) | — | — | — | — | |||||||||||||||||
| Plus: Loss on securities restructuring | 20,282 | — | — | — | — | |||||||||||||||||
| Less: Gain on sale-leaseback | (20,266) | — | — | — | — | |||||||||||||||||
| Plus: FDIC special assessment | — | 956 | 6,494 | — | — | |||||||||||||||||
| Plus: FultonFirst implementation and asset disposals | 6,323 | 6,329 | 3,197 | — | — | |||||||||||||||||
| Less: Tax impact of adjustments | (9,961) | (1,591) | (1,896) | (714) | (192) | |||||||||||||||||
| Operating net income available to common shareholders (numerator) | $ | 82,494 | $ | 65,363 | $ | 68,835 | $ | 72,220 | $ | 77,765 | ||||||||||||
| Weighted average shares (diluted) (denominator) | 176,934 | 164,520 | 165,650 | 166,023 | 167,191 | |||||||||||||||||
| Operating net income available to common shareholders, per share (diluted) | $ | 0.47 | $ | 0.40 | $ | 0.42 | $ | 0.43 | $ | 0.47 | ||||||||||||
| Common shareholders' equity (tangible), per share | ||||||||||||||||||||||
| Shareholders' equity | $ | 3,101,609 | $ | 2,757,679 | $ | 2,760,139 | $ | 2,566,693 | $ | 2,642,152 | ||||||||||||
| Less: Preferred stock | (192,878) | (192,878) | (192,878) | (192,878) | (192,878) | |||||||||||||||||
| Less: Goodwill and intangible assets | (648,026) | (560,114) | (560,687) | (561,284) | (561,885) | |||||||||||||||||
| Tangible common shareholders' equity (numerator) | $ | 2,260,705 | $ | 2,004,687 | $ | 2,006,574 | $ | 1,812,531 | $ | 1,887,389 | ||||||||||||
| Shares outstanding, end of period (denominator) | 181,831 | 162,087 | 163,801 | 164,084 | 166,097 | |||||||||||||||||
| Common shareholders' equity (tangible), per share | $ | 12.43 | $ | 12.37 | $ | 12.25 | $ | 11.05 | $ | 11.36 | ||||||||||||
| (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. | ||||||||||||||||||||||
| (2) Results are annualized. | ||||||||||||||||||||||
| Three months ended | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||
| Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | ||||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||||
| Operating return on average assets(2) | ||||||||||||||||||||||
| Net income | $ | 94,975 | $ | 61,941 | $ | 64,263 | $ | 72,097 | $ | 79,607 | ||||||||||||
| Plus: Core deposit intangible amortization | 4,556 | 441 | 441 | 441 | 912 | |||||||||||||||||
| Plus: Acquisition-related expense | 13,803 | — | — | — | — | |||||||||||||||||
| Less: Non-PCD credit-related interest income from acquisition | (571) | — | — | — | — | |||||||||||||||||
| Plus: CECL day 1 provision expense | 23,444 | — | — | — | — | |||||||||||||||||
| Plus: Interest rate derivative transition valuation(1) | (137) | (151) | (1,102) | 2,958 | — | |||||||||||||||||
| Less: Gain on acquisition, net of tax | (47,392) | — | — | — | — | |||||||||||||||||
| Plus: Loss on securities restructuring | 20,282 | — | — | — | — | |||||||||||||||||
| Less: Gain on sale-leaseback | (20,266) | — | — | — | — | |||||||||||||||||
| Plus: FDIC special assessment | — | 956 | 6,494 | — | — | |||||||||||||||||
| Plus: FultonFirst implementation and asset disposals | 6,323 | 6,329 | 3,197 | — | — | |||||||||||||||||
| Less: Tax impact of adjustments | (9,961) | (1,591) | (1,896) | (714) | (192) | |||||||||||||||||
| Operating net income (numerator) | $ | 85,056 | $ | 67,925 | $ | 71,397 | $ | 74,782 | $ | 80,327 | ||||||||||||
| Total average assets | $ | 30,774,891 | $ | 27,427,626 | $ | 27,397,671 | $ | 27,377,836 | $ | 27,235,567 | ||||||||||||
| Less: Average net core deposit intangible | (68,234) | (4,666) | (5,106) | (5,548) | (6,417) | |||||||||||||||||
| Total operating average assets (denominator) | $ | 30,706,657 | $ | 27,422,960 | $ | 27,392,565 | $ | 27,372,288 | $ | 27,229,150 | ||||||||||||
| Operating return on average assets | 1.11% | 1.00% | 1.03% | 1.08% | 1.18% | |||||||||||||||||
| Operating return on average common shareholders' equity (tangible)(2) | ||||||||||||||||||||||
| Net income available to common shareholders | $ | 92,413 | $ | 59,379 | $ | 61,701 | $ | 69,535 | $ | 77,045 | ||||||||||||
| Plus: Intangible amortization | 4,688 | 573 | 597 | 601 | 1,072 | |||||||||||||||||
| Plus: Acquisition-related expense | 13,803 | — | — | — | — | |||||||||||||||||
| Less: Non-PCD credit-related interest income from acquisition | (571) | — | — | — | — | |||||||||||||||||
| Plus: CECL day 1 provision expense | 23,444 | — | — | — | — | |||||||||||||||||
| Plus: Interest rate derivative transition valuation(1) | (137) | (151) | (1,102) | 2,958 | — | |||||||||||||||||
| Less: Gain on acquisition, net of tax | (47,392) | — | — | — | — | |||||||||||||||||
| Plus: Loss on securities restructuring | 20,282 | — | — | — | — | |||||||||||||||||
| Less: Gain on sale-leaseback | (20,266) | — | — | — | — | |||||||||||||||||
| Plus: FDIC special assessment | — | 956 | 6,494 | — | — | |||||||||||||||||
| Plus: FultonFirst implementation and asset disposals | 6,323 | 6,329 | 3,197 | — | — | |||||||||||||||||
| Less: Tax impact of adjustments | (9,989) | (1,618) | (1,929) | (747) | (225) | |||||||||||||||||
| Adjusted net income available to common shareholders (numerator) | $ | 82,598 | $ | 65,468 | $ | 68,958 | $ | 72,347 | $ | 77,892 | ||||||||||||
| Average shareholders' equity | $ | 2,952,671 | $ | 2,766,945 | $ | 2,618,024 | $ | 2,645,977 | $ | 2,647,464 | ||||||||||||
| Less: Average preferred stock | (192,878) | (192,878) | (192,878) | (192,878) | (192,878) | |||||||||||||||||
| Less: Average goodwill and intangible assets | (624,471) | (560,393) | (560,977) | (561,578) | (563,146) | |||||||||||||||||
| Average tangible common shareholders' equity (denominator) | $ | 2,135,322 | $ | 2,013,674 | $ | 1,864,169 | $ | 1,891,521 | $ | 1,891,440 | ||||||||||||
| Operating return on average common shareholders' equity (tangible) | 15.56% | 13.08% | 14.68% | 15.17% | 16.52% | |||||||||||||||||
| (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. | ||||||||||||||||||||||
| (2) Results are annualized. | ||||||||||||||||||||||
| Three months ended | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||
| Jun 30 | Mar 31 | Dec 31 | Sep 30 | June 30 | ||||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||||
| Tangible common equity to tangible assets (TCE Ratio) | ||||||||||||||||||||||
| Shareholders' equity | $ | 3,101,609 | $ | 2,757,679 | $ | 2,760,139 | $ | 2,566,693 | $ | 2,642,152 | ||||||||||||
| Less: Preferred stock | (192,878) | (192,878) | (192,878) | (192,878) | (192,878) | |||||||||||||||||
| Less: Goodwill and intangible assets | (648,026) | (560,114) | (560,687) | (561,284) | (561,885) | |||||||||||||||||
| Tangible common shareholders' equity (numerator) | $ | 2,260,705 | $ | 2,004,687 | $ | 2,006,574 | $ | 1,812,531 | $ | 1,887,389 | ||||||||||||
| Total assets | $ | 31,769,813 | $ | 27,642,957 | $ | 27,571,915 | $ | 27,375,177 | $ | 27,403,163 | ||||||||||||
| Less: Goodwill and intangible assets | (648,026) | (560,114) | (560,687) | (561,284) | (561,885) | |||||||||||||||||
| Total tangible assets (denominator) | $ | 31,121,787 | $ | 27,082,843 | $ | 27,011,228 | $ | 26,813,893 | $ | 26,841,278 | ||||||||||||
| Tangible common equity to tangible assets | 7.26% | 7.40% | 7.43% | 6.76% | 7.03% | |||||||||||||||||
| Efficiency ratio | ||||||||||||||||||||||
| Non-interest expense | $ | 199,488 | $ | 177,600 | $ | 180,552 | $ | 171,020 | $ | 168,018 | ||||||||||||
| Less: Acquisition-related expense | (13,803) | — | — | — | — | |||||||||||||||||
| Less: Gain on sale-leaseback | 20,266 | — | — | — | — | |||||||||||||||||
| Less: FDIC special assessment | — | (956) | (6,494) | — | — | |||||||||||||||||
| Less: FultonFirst implementation and asset disposals | (6,323) | (6,329) | (3,197) | — | — | |||||||||||||||||
| Less: Intangible amortization | (4,688) | (573) | (597) | (601) | (1,072) | |||||||||||||||||
| Less: Debt extinguishment | — | — | 720 | — | — | |||||||||||||||||
| Non-interest expense (numerator) | $ | 194,940 | $ | 169,742 | $ | 170,984 | $ | 170,419 | $ | 166,946 | ||||||||||||
| Net interest income | $ | 241,720 | $ | 206,937 | $ | 212,006 | $ | 213,842 | $ | 212,852 | ||||||||||||
| Tax equivalent adjustment | 4,556 | 4,592 | 4,549 | 4,442 | 4,405 | |||||||||||||||||
| Plus: Total non-interest income | 92,994 | 57,140 | 59,378 | 55,961 | 60,585 | |||||||||||||||||
| Plus: Interest rate derivative transition valuation(1) | (137) | (151) | (1,102) | 2,958 | — | |||||||||||||||||
| Less: Non-PCD credit-related interest income from acquisition | (571) | — | — | — | — | |||||||||||||||||
| Less: Gain on acquisition, net of tax | (47,392) | — | — | — | — | |||||||||||||||||
| Plus: Investment securities (gains) losses, net | 20,282 | — | 752 | — | 4 | |||||||||||||||||
| Total revenue (denominator) | $ | 311,452 | $ | 268,518 | $ | 275,583 | $ | 277,203 | $ | 277,846 | ||||||||||||
| Efficiency ratio | 62.6% | 63.2% | 62.0% | 61.5% | 60.1% | |||||||||||||||||
| Operating non-interest expense to total average assets | ||||||||||||||||||||||
| Non-interest expense | $ | 199,488 | $ | 177,600 | $ | 180,552 | $ | 171,020 | $ | 168,018 | ||||||||||||
| Less: Amortization of tax credit investments | — | — | — | — | — | |||||||||||||||||
| Less: Intangible amortization | (4,688) | (573) | (597) | (601) | (1,072) | |||||||||||||||||
| Less: Acquisition-related expense | (13,803) | — | — | — | — | |||||||||||||||||
| Less: Gain on sale-leaseback | 20,266 | — | — | — | — | |||||||||||||||||
| Less: FDIC special assessment | — | (956) | (6,494) | — | — | |||||||||||||||||
| Less: FultonFirst implementation and asset disposals | (6,323) | (6,329) | (3,197) | — | — | |||||||||||||||||
| Non-interest expense (numerator) | $ | 194,940 | $ | 169,742 | $ | 170,264 | $ | 170,419 | $ | 166,946 | ||||||||||||
| Total average assets (denominator) | $ | 30,774,891 | $ | 27,427,626 | $ | 27,397,671 | $ | 27,377,836 | $ | 27,235,567 | ||||||||||||
| Operating non-interest expenses to total average assets | 2.55% | 2.49% | 2.47% | 2.47% | 2.46% | |||||||||||||||||
| (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. | ||||||||||||||||||||||
| (2) Results are annualized. | ||||||||||||||||||||||
| Note: numbers in this report may not sum due to rounding. |
19
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SECOND QUARTER 2024 RESULTS NASDAQ: FULT Data as of or for the period ended June 30, 2024 unless otherwise noted
This presentation may contain forward-looking statements with respect to Fulton Financial Corporation's (the "Corporation") financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," “projects,” the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results. Management’s "2024 Outlook" contained herein is comprised of forward-looking statements. Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, the statements are based on current beliefs, expectations and assumptions regarding the future of the Corporation’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation’s control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation’s actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available in the Investor Relations section of the Corporation’s website (www.fultonbank.com) and on the SEC’s website (www.sec.gov). The Corporation uses certain financial measures in this presentation that have been derived by methods other than generally accepted accounting principles ("GAAP"). These non-GAAP financial measures are reconciled to the most comparable GAAP measures at the end of this presentation. 2
3 MEANINGFUL CONTRIBUTION: SIMILAR LENDING PRODUCTS, SERVICES AND MARKETS OF OPERATION Loan Portfolio (June 30,2024) Deposit Portfolio (June 30,2024) $25.6B $24.1B 11 basis point improvement to net interest margin (“NIM”) in 2Q24 ~$34.8 million improvement to net interest income in 2Q24 Transaction $2.5B$21.6B $3.8B$21.8B
(1) Non-GAAP financial measure. Please refer to the calculation and management’s reason for using this measure on the slide titled “Non-GAAP Reconciliation” at the end of this presentation. 4 INCOME STATEMENT SUMMARY 2Q24 1Q24 Linked-Quarter Change Net interest income $241,720 $206,937 $34,783 Provision for credit losses 32,056 10,925 21,131 Non-interest income 113,276 57,140 56,136 Securities gains (losses) (20,282) — (20,282) Non-interest expense 199,488 177,600 21,888 Income before income taxes 103,170 75,552 27,618 Income taxes 8,195 13,611 (5,416) Net income 94,975 61,941 33,034 Preferred stock dividends (2,562) (2,562) - Net income available to common shareholders $92,413 $59,379 $33,034 Net income available to common shareholders, per share (diluted) $0.52 $0.36 $0.16 Operating net income available to common shareholders, per share (diluted)(1) $0.47 $0.40 $0.07 ROAA 1.24% 0.91% 0.33% Operating ROAA(1) 1.11% 1.00% 0.11% ROAE 13.47% 9.28% 4.19% Operating ROAE (tangible)(1) 15.56% 13.08% 2.48% Efficiency ratio(1) 62.6% 63.2% -0.6% (dollars in thousands, except per-share data)
5 SECOND QUARTER PURCHASE ACCOUNTING ACCRETION(1) (1) Categories based on third-party valuation as of April 26, 2024. Balances may differ in financial statement presentation. Remaining Term is the weighted average remaining contractual term of the pool of loans. Duration is the weighted average expected life of the cash flows of the pool of loans. $ in thousands Credit Remaining Q2 2024 Loan Balance Interest Rate Non- Term Duration Interest Rate Credit- Total Acquired Mark PCD (months) (months) Mark Non-PCD Accretion CRE $1,159,451 $89,052 $6,027 59 33 $5,109 $204 $5,313 Residential mortgage 1,021,567 183,775 15,049 301 75 3,085 221 $3,306 C&I 219,441 623 694 33 18 (7) 53 $46 Multi-family 249,650 14,605 742 39 27 1,150 60 $1,210 Construction 140,310 5,776 487 34 22 281 20 $301 Home equity 90,882 5,712 424 200 35 175 12 $187 Other consumer 2,629 (6) 21 100 27 2 1 $3 $2,883,930 $299,537 $23,444 144 46 $9,795 $571 $10,366 Republic Transaction - Loan Accretion as of June 30, 2024 Q2 2024 Accretion
• NIM was 3.43% in the second quarter of 2024, increasing 11 basis points compared to the first quarter of 2024. • Loan yield improved by 22 basis points during the second quarter of 2024, increasing to 6.12% compared to 5.90% in the first quarter of 2024. • Total cost of deposits was 2.14% for the second quarter of 2024, an increase of 19 basis points compared to the first quarter of 2024. 6 NET INTEREST INCOME AND NIM 2Q24 Highlights Net Interest Income & NIM Average Deposits and Borrowings & Other and Cost of Funds Average Interest-Earning Assets & Yields (dollars in millions) (dollars in billions) (dollars in billions)
7 ASSET QUALITY Provision for Credit Losses Non-Performing Loans (“NPLs”) & NPLs to Loans Net Charge-offs (“NCOs”) and NCOs to Average Loans ACL(1) to NPLs & Loans (1) The allowance for credit losses (“ACL”) relates specifically to “Loans, net of unearned income” and does not include reserves related to off-balance sheet credit exposures.
8 NON-INTEREST INCOME(1) Non-interest Income (percentage of total non-interest income, three months ended June 30, 2024) (1) Excluding investment securities gains and losses. Increases due to: • Broad-based commercial banking increases (all categories) • Record wealth management income • Strong incremental consumer banking fees from the Republic Transaction • Gain on sale of mortgage loans Preliminary Gain on Acquisition: • Represents the after-tax impact of the bargain purchase gain (dollars in thousands) 2Q24 Fulton Organic 2Q24 Republic Transaction 2Q24 Consolidated 1Q24 Linked- Quarter Change Commercial Banking 21,027$ 383$ 21,410$ 18,829$ 2,581$ Wealth Management 20,990 - 20,990 20,155 835 Consumer Banking 12,256 2,344 14,600 11,668 2,932 Mortgage Banking 3,951 - 3,951 3,090 861 Gain On Acquisition, net of tax - 47,392 47,392 - 47,392 Other 4,874 59 4,933 3,398 1,535 Total 63,098$ 50,178$ 113,276$ 57,140$ 56,136$
9 NON-INTEREST EXPENSE Non-interest Expense (percentage of total non-interest expense, three months ended June 30, 2024) Decreases primarily due to: • The $20.3 million pre-tax gain on sale of real estate related to the sale-leaseback transaction is presented as an offset to other expenses Increases primarily due to: • $13.8 million in acquisition related charges • $6.3 million of FultonFirst implementation and asset disposal costs • Two months of incremental expenses of $17.0 million and $4.1 million of core deposit intangible amortization related to the Republic Transaction 2Q24 Fulton Organic 2Q24 Republic Transaction 2Q24 Consolidated 1Q24 Linked- Quarter Change (dollars in thousands) Salaries and employee benefits 102,117$ 8,513$ 110,630$ 95,481$ 15,149$ Data processing and software 17,978 2,379 20,357 17,661 2,696 Net occupancy 15,328 2,465 17,793 16,149 1,644 Other outside services 16,280 653 16,933 13,283 3,650 FDIC insurance 5,310 1,386 6,696 6,104 592 Equipment 4,123 438 4,561 4,040 521 Professional fees 2,314 257 2,571 2,088 483 Acquisition related expenses 13,803 - 13,803 - 13,803 Other 1,138 5,006 6,144 22,794 (16,650) Total 178,391$ 21,097$ 199,488$ 177,600$ 21,888$
10 (1) Regulatory capital ratios and excess capital amounts as of June 30, 2024 are preliminary estimates. (2) Excesses shown are to regulatory minimums, including the 250 basis point capital conservation buffer, except for Tier 1 Leverage which is the well- capitalized minimum. $1,181 $581 $730 $790 (as of June 30, 2024) (dollars in millions) (2) CAPITAL RATIOS(1)
2024 OUTLOOK 11 Net Interest Income: $925 - $950 million(1) Provision for Credit Losses: $40 - $60 million Non-Interest Income: $240 - $260 million(2) Non-Interest Expense: $750 - $770 million(3) Effective Tax Rate: 16% - 18% (1) Assumes Fed Funds Rate decrease of 25 basis points in September 2024. (2) Excludes investment securities gains and losses and gain on acquisition, net of tax. (3) Excludes non-operating expenses.
12 A LARGER DEPOSIT PORTFOLIO THAT REMAINS GRANULAR, TENURED AND DIVERSIFIED WITH SIGNIFICANT LIQUIDITY COVERAGE Deposit Mix By Customer (June 30, 2024) Deposit Portfolio Highlights(1) 883,000 deposit accounts $28,770 average account balance ~10 year average account age 23% estimated uninsured deposits 259% coverage of estimated uninsured deposits Deposit Mix By Product(2) (1) As of June 30, 2024. Estimated uninsured deposits net of collateralized municipal deposits and inter-company deposits. For the calculation of the coverage of estimated uninsured deposits, please refer to the slide titled “Liquidity Profile.” (2) Deposit balances are ending balances. (dollars in millions)
THE LOAN PORTFOLIO REMAINS DIVERSIFIED AND GRANULAR WITH LOW OFFICE CONCENTRATION AT 3% OF TOTAL LOANS 13 Office Only Profile • $896 million in office loan commitments • $824 million in office loans outstanding • representing 3% of total loans • Average loan size is $2.3 million • Weighted average loan-to-value(1) (“LTV”) ratio of 63% • Weighted average debt service coverage ratio (“DSCR”) of 1.34x • 84% of loans with full recourse; 65% LTV; 1.29x DSCR • 16% of loans non-recourse; 51% LTV; 1.58x DSCR • Nine relationships over $20 million, totaling $226 million in commitments, including: • Six relationships in central business districts • $219 million in commitments located in central business districts • Classification • 28% Class A • 21% Class B • 4% Class C • 47% Not Classified Total Loan Portfolio (June 30, 2024) (1) LTV as of most recent appraisal.
THE ACQUIRED OFFICE PORTFOLIO HAS SIMILAR CHARACTERISTICS TO FULTON’S WITH SOME SEASONING AND LONGER MATURITY TERM 14 Originated Over Time Maturing Over Time Granular Loan Portfolio Geographically Diverse by MSA(1) (1) Metropolitan Statistical Areas or “MSA” titled in short name for presentation purposes.
MULTI-FAMILY LOANS REPRESENT 8% OF THE TOTAL LOAN PORTFOLIO WITH A SMALL AVERAGE LOAN SIZE, LOW LTV’S AND SOLID DSCR 15 (1) LTV as of most recent appraisal. Multi-Family Profile • $2.4 billion in multi-family loan commitments • $1.9 billion in multi-family loans outstanding • representing 8% of total loans • Average loan size is $3.3 million • Weighted average LTV(1) ratio of 60% • Weighted Average DSCR of 1.27x • 90% of loans with recourse • 36% construction; 64% stabilized • Classification o 42% Class A o 12% Class B o 3% Class C o 43% Not Classified Total Loan Portfolio (June 30, 2024)
THE MAJORITY OF THE MULTI-FAMILY PORTFOLIO HAS BEEN RECENTLY ORIGINATED AND APPRAISED AND HAS A LONG-DATED MATURITY HORIZON 16 Recently Originated and Appraised Maturing Over Time Diversified by Size Diversified by Geographical MSA
17 NONINTEREST-BEARING DEPOSIT TRENDS • Growth in the Corporation’s commercial banking business, as well as the historically low levels of interest rates for much of the post-2008 period, led to a generally increasing trend in the percentage of noninterest-bearing deposits. • Prior to 2008, noninterest-bearing deposits averaged 15%-20% of total deposits. As of June 30, 2024, noninterest-bearing deposits were 21.9% of total deposits down from a peak of 35% in June 2022. • Deposit growth, including growth in noninterest-bearing deposits, remains a key component of the Corporation’s relationship banking strategy. Source: S&P Global Market Intelligence, Federal Reserve Bank of New York and Board of Governors of the Federal Reserve System (US); Corporation’s reported results for NIM and percentage of noninterest-bearing deposits at June 30,2024. % Noninterest-Bearing Deposits, NIM and Fed Funds Effective Rate
Estimated Uninsured Deposits June 30, 2024 Total Deposits $25,560 Estimated Uninsured Deposits $8,668 Estimated Uninsured Deposits to Total Deposits 34% Estimated Uninsured Deposits $8,668 Less: Collateralized Municipal Deposits (2,801) Net Estimated Uninsured Deposits (4) $5,867 Net Estimated Uninsured Deposits to Total Deposits 23% Committed Liquidity to Net Estimated Uninsured Deposits 143% Available Liquidity to Net Estimated Uninsured Deposits 259% Available Liquidity June 30, 2024 Cash On-Hand (1) 1,133$ Federal Reserve Capacity 1,859 Total Available @ Federal Reserve 1,859$ FHLB Borrowing Capacity 10,842 Advances(2) (759) Letters of Credit (3,559) Total Available @ FHLB 6,524$ Total Committed Liquidity 8,383$ Fed Funds Lines 2,556 Outstanding Net Fed Funds - Total Fed Funds Lines Available 2,556$ Brokered Deposit Capacity (3) 4,100 Brokered & Wholesale Deposits (996) Total Brokered Deposit Availability 3,104$ Total Uncommitted Available Liquidity 5,660$ Total Available Liquidity 15,176$ 18 LIQUIDITY PROFILE (1) Includes cash at the FHLB and Federal Reserve and vault cash for liquidity purposes only. (2) Includes accrued interest, fees, and other adjustments. (3) Brokered deposit availability is based upon internal policy limit. (4) Net estimated uninsured deposits are net of collateralized municipal deposits and inter-company deposits. (dollars in thousands)
19 Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Three months ended (dollars in thousands) Jun 30 Mar 31 2024 2024 Operating net income available to common shareholders Net income available to common shareholders $92,413 $59,379 Plus: Core deposit intangible amortization 4,556 441 Plus: Acquisition-related expense 13,803 — Less: Non-PCD credit-related interest income from acquisition (571) — Plus: CECL day 1 provision expense 23,444 — Plus: Interest rate derivative transition valuation(1) (137) (151) Plus: Loss on securities restructuring 20,282 — Less: Gain on acquisition, net of tax (47,392) — Less: Gain on sale-leaseback (20,266) — Plus: FDIC special assessment — 956 Plus: FultonFirst implementation and asset disposals 6,323 6,329 Less: Tax impact of adjustments (9,961) (1,591) Operating net income available to common shareholders (numerator) $82,494 $65,363 Weighted average shares (diluted) (denominator) 176,934 164,520 Operating net income available to common shareholders, per share (diluted) $0.47 $0.40 (1) Resulting from the reference rate transition from London Interbank Offered Rate ("LIBOR") to Secured Overnight Financing Rate ("SOFR") in the Corporation's commercial customer interest rate swap program.
20 Three months ended (dollars in thousands) Jun 30 Mar 31 2024 2024 Operating return on average assets Net income $94,975 $61,941 Plus: Core deposit intangible amortization 4,556 441 Plus: Acquisition-related expense 13,803 — Less: Non-PCD credit-related interest income from acquisition (571) — Plus: CECL day 1 provision expense 23,444 — Plus: Interest rate derivative transition valuation(1) (137) (151) Plus: Loss on securities restructuring 20,282 — Less: Gain on acquisition, net of tax (47,392) — Less: Gain on sale-leaseback (20,266) — Plus: FDIC special assessment — 956 Plus: FultonFirst implementation and asset disposals 6,323 6,329 Less: Tax impact of adjustments (9,961) (1,591) Operating net income (numerator) $85,056 $67,925 Total average assets $30,774,891 $27,427,626 Less: Average net core deposit intangible (68,234) (4,666) Total average operating assets (denominator) $30,706,657 $27,422,960 Operating return on average assets 1.11 % 1.00 % (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.
21 Three months ended (dollars in thousands) Jun 30 Mar 31 2024 2024 Operating return on average common shareholders' equity (tangible), annualized Net income available to common shareholders $92,413 $59,379 Plus: Intangible amortization 4,688 573 Plus: Acquisition-related expense 13,803 — Less: Non-PCD credit-related interest income from acquisition (571) — Plus: CECL day 1 provision expense 23,444 — Plus: Interest rate derivative transition valuation(1) (137) (151) Plus: Loss on securities restructuring 20,282 — Less: Gain on acquisition (47,392) — Less: Gain on sale-leaseback (20,266) — Plus: FDIC special assessment — 956 Plus: FultonFirst implementation and asset disposals 6,323 6,329 Less: Tax impact of adjustments (9,989) (1,618) Adjusted net income available to common shareholders (numerator) $82,598 $65,468 Average shareholders' equity $2,952,671 $2,766,945 Less: Average preferred stock (192,878) (192,878) Less: Average goodwill and intangible assets (624,471) (560,393) Average tangible common shareholders' equity (denominator) $2,135,322 $2,013,674 Operating return on average common shareholders' equity (tangible) 15.56 % 13.08 % (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.
22 (dollars in thousands) Three months ended Jun 30 Mar 31 Efficiency ratio 2024 2024 Non-interest expense $199,488 $177,600 Less: Intangible amortization (4,688) (573) Less: Acquisition-related expenses (13,803) — Less: Gain on sale-leaseback 20,266 — Less: FDIC special assessment — (956) Less: FultonFirst implementation and asset disposals (6,323) (6,329) Non-interest expense (numerator) $194,940 $169,742 Net interest income $241,720 $206,937 Tax equivalent adjustment 4,556 4,592 Plus: Total non-interest income 92,994 57,140 Plus: Interest rate derivative transition valuation(1) (137) (151) Less: Non-PCD credit-related interest income from acquisition (571) — Less: Gain on acquisition (47,392) — Less: Investment securities (gains) losses, net 20,282 — Total revenue (denominator) $311,452 $268,518 Efficiency ratio 62.6% 63.2% (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program.