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
April 15, 2025
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 April 15, 2025, Fulton Financial Corporation (the "Corporation") issued a press release (the "Press Release") announcing its results of operations for the first quarter ended March 31, 2025. 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, April 16, 2025 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 "2025 Operating Guidance" 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, 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 7.01 Regulation FD Disclosure.
On April 15, 2025, the Corporation's Board of Directors (the "Board") approved a supplemental authorization (the "Supplemental Authorization") to repurchase up to $25 million of the Corporation's outstanding 3.250% Fixed-to-Floating Rate Subordinated Notes due 2030 (the "Subordinated Notes due 2030") under the $125 million share repurchase program announced on December 17, 2024 (the "2025 Program"). Under the Supplemental Authorization, the Corporation is authorized to repurchase up to $25 million of the Subordinated Notes due 2030 under the 2025 Program; provided, however, that the purchase price to the Corporation of the outstanding Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A and the Subordinated Notes due 2030 repurchased under the 2025 Program shall not exceed, in the aggregate, $25 million. Purchases may be made from time to time under the 2025 Program in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws. The 2025 Program will expire on December 31, 2025 and may be discontinued at any time at the discretion of the Board and does not commit the Corporation to repurchase any of its securities. Purchases, if any, will be determined by management in its discretion and will depend upon a number of factors, including the Corporation's capital position, liquidity, financial performance and alternate uses of capital, the market price of the Corporation's securities, general market and economic conditions, and applicable legal and regulatory requirements.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release dated April 15, 2025 containing financial information for the quarter ended March 31, 2025, deemed filed under the Securities Exchange Act of 1934. |
| 99.2 | Presentation materials to be discussed during the conference call and webcast on April 16, 2025, 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: April 15, 2025 | FULTON FINANCIAL CORPORATION |
|---|---|
| By: /s/ Richard S. Kraemer | |
| Richard S. Kraemer | |
| Senior Executive Vice President and | |
| 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 First Quarter 2025 Results
(April 15, 2025) – Lancaster, PA – Fulton Financial Corporation (NASDAQ: FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $90.4 million, or $0.49 per diluted share, for the first quarter of 2025, an increase of $24.4 million, or $0.13 per share, in comparison to the fourth quarter of 2024. Operating net income available to common shareholders for the three months ended March 31, 2025 was $95.5 million, or $0.52 per diluted share(1), an increase of $6.5 million, or $0.04 per share, in comparison to the fourth quarter of 2024.
"We are pleased with our first quarter operating earnings of $0.52 per diluted share and encouraged by the strong start to the year," said Curtis J. Myers, Chairman and CEO of Fulton. "Our team continues to be disciplined in our approach to creating value for all stakeholders while remaining focused on the long term during this uncertain and dynamic environment."
Financial Highlights
First quarter of 2025 operating results of $0.52 per diluted share were impacted by the following items:
•Solid net interest margin of 3.43% with a 12 basis point decrease in total cost of funds compared to the prior quarter.
•Non-interest expense decreased $27.2 million to $189.5 million compared to $216.6 million in the prior quarter. Operating non-interest expense decreased $7.8 million to $182.9 million(1) compared to $190.7 million in the prior quarter.
•Provision for credit losses was $13.9 million resulting in an allowance for credit losses attributable to net loans of $379.7 million, or 1.59% of total net loans as of March 31, 2025.
•Excluding brokered deposits, customer deposits increased $304.9 million, or 4.9% annualized, compared to the prior quarter.
•Common equity tier 1 capital ratio(2) increased to approximately 11.0% compared to 10.8% in the prior quarter.
The following items highlight notable changes in the components of net income and the balance sheet in the first quarter of 2025 compared to the fourth quarter of 2024:
•Net interest income totaled $251.2 million, a decrease of $2.5 million, primarily due to a decline in short-term interest rates and day count. A decrease in interest income on net loans of $13.0 million was partially offset by a decrease in interest expense on interest-bearing liabilities of $12.2 million. A $4.3 million decrease in interest income on other interest-earning assets was partially offset by a $2.6 million increase in interest income on investment securities. Purchase loan mark accretion from loans acquired in the Acquisition(3) was $13.1 million in the first quarter of 2025 compared to $13.9 million in the prior quarter.
•Non-interest income before investment securities gains (losses) was $67.2 million compared to $65.9 million in the prior quarter. The $1.3 million increase was primarily due to a $2.7 million reduction in the gain on acquisition (net of tax) recorded in the fourth quarter of 2024 and a $2.4 million increase in income from equity method investments, reflected in other income, partially offset by a $0.6 million decrease in mortgage banking income, a $0.5 million decrease in debit card fee income, a $0.5 million decrease in Small Business Administration loan income, a $0.5 million decrease in merchant fee income, a $0.3 million decrease in commercial customer interest rate derivative fee income, reflected in capital markets income, a $0.3 million decrease in overdraft fee income and a $0.2 million decrease in wealth management revenues.
•Non-interest expense was $189.5 million compared to $216.6 million in the prior quarter. The $27.2 million decrease was primarily due to a $10.0 million decrease in FultonFirst implementation and asset disposal expense and a $9.3 million decrease in acquisition-related expense. Excluding the FultonFirst implementation and asset disposal-related expense, the decrease in non-interest expense was primarily due to a $4.4 million decrease in professional fees driven by a recovery of previously incurred fees, a $3.7 million decrease in employee salaries and benefits expense primarily related to cost savings realized in connection with the Acquisition and the FultonFirst initiative.
Balance Sheet Summary
•Net loans totaled $23.9 billion, a decrease of $182.3 million, compared to $24.0 billion as of December 31, 2024. The decrease in net loans was due to a $244.3 million net decrease in commercial and other loans(4) partially offset by a $62.0 million increase in consumer loans(4). The decrease in commercial and other loans was partially due to the payoff in the quarter of $94.2 million of special mention loans and substandard loans. Commercial and other loans in non-accrual status decreased during the first quarter.
•Deposits totaled $26.3 billion, an increase of $199.5 million, compared to $26.1 billion as of December 31, 2024. The increase was primarily due to a $416.4 million increase in savings deposits, partially offset by decreases of $105.4 million in brokered deposits, $63.8 million in noninterest-bearing demand deposits and $39.2 million in interest-bearing demand deposits.
Provision for Credit Losses and Asset Quality
•The provision for credit losses was $13.9 million in the first quarter of 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, compared to $379.2 million, or 1.58% of total net loans as of December 31, 2024.
•Non-performing assets were $199.0 million, or 0.62% of total assets, as of March 31, 2025, in comparison to $222.7 million, or 0.69% of total assets, as of December 31, 2024.
•Annualized net charge-offs for the first quarter of 2025 were 0.21% of total average loans in comparison to 0.22% in the prior quarter.
Additional information on Fulton is available on the Internet at www.fultonbank.com.
(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.
(2) Regulatory capital ratios as of March 31, 2025, are preliminary estimates and prior periods are actual.
(3) 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
among the FDIC, as receiver of Republic Bank, the FDIC and Fulton Bank.
(4) Commercial loans include real estate - commercial mortgage, commercial and industrial, leases and other loans and includes a $231.2 million decrease in commercial construction loans reflected in real estate - construction. Consumer loans include real estate - residential mortgage, real estate - home equity, consumer and includes an $11.7 million increase in residential construction loans, reflected in real estate - construction.
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, 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 | |||||
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |
| 2025 | 2024 | 2024 | 2024 | 2024 | |
| Ending Balances | |||||
| Investment securities | |||||
| Net loans | 23,862,574 | 24,044,919 | 24,176,075 | 24,106,297 | 21,444,483 |
| Total assets | 32,132,028 | 32,071,810 | 32,185,726 | 31,769,813 | 27,642,957 |
| Deposits | 26,328,972 | 26,129,433 | 26,152,144 | 25,559,654 | 21,741,950 |
| Shareholders' equity | 3,274,321 | 3,197,325 | 3,203,943 | 3,101,609 | 2,757,679 |
| Average Balances | |||||
| Investment securities(1) | 4,906,952 | 4,771,537 | 4,237,805 | 4,043,136 | 3,672,844 |
| Net loans | 24,006,863 | 24,068,784 | 24,147,801 | 23,345,914 | 21,370,033 |
| Total assets | 31,971,601 | 32,098,852 | 31,895,235 | 30,774,891 | 27,427,626 |
| Deposits | 26,169,883 | 26,313,378 | 25,778,259 | 24,642,954 | 21,378,754 |
| Shareholders' equity | 3,254,125 | 3,219,026 | 3,160,322 | 2,952,671 | 2,766,945 |
| Income Statement | |||||
| Net interest income | 251,187 | 253,659 | 258,009 | 241,720 | 206,937 |
| Provision for credit losses | 13,898 | 16,725 | 11,929 | 32,056 | 10,925 |
| Non-interest income | 67,232 | 65,924 | 59,673 | 92,994 | 57,140 |
| Non-interest expense | 189,460 | 216,615 | 226,089 | 199,488 | 177,600 |
| Income before taxes | 115,061 | 86,243 | 79,664 | 103,170 | 75,552 |
| Net income available to common shareholders | 90,425 | 66,058 | 60,644 | 92,413 | 59,379 |
| Per Share | |||||
| Net income available to common shareholders (basic) | 0.50 | 0.36 | 0.33 | 0.53 | 0.36 |
| Net income available to common shareholders (diluted) | 0.49 | 0.36 | 0.33 | 0.52 | 0.36 |
| Operating net income available to common shareholders(2) | 0.52 | 0.48 | 0.50 | 0.47 | 0.40 |
| Cash dividends | 0.18 | 0.18 | 0.17 | 0.17 | 0.17 |
| Common shareholders' equity | 16.91 | 16.50 | 16.55 | 16.00 | 15.82 |
| Common shareholders' equity (tangible)(2) | 13.46 | 13.01 | 13.02 | 12.43 | 12.37 |
| Weighted average shares (basic) | 182,179 | 182,032 | 181,905 | 175,305 | 162,706 |
| Weighted average shares (diluted) | 184,077 | 183,867 | 183,609 | 176,934 | 164,520 |
| (1) Average balances include related unrealized holding gains (losses) for available for sale ("AFS") securities.. | |||||
| (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. |
All values are in US Dollars.
| Three months ended | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Asset Quality | |||||||||||||||||||
| Net charge-offs to average loans | 0.21 | % | 0.22 | % | 0.18 | % | 0.19 | % | 0.16 | % | |||||||||
| Non-performing loans to total net loans | 0.82 | % | 0.92 | % | 0.84 | % | 0.72 | % | 0.73 | % | |||||||||
| Non-performing assets to total assets | 0.62 | % | 0.69 | % | 0.64 | % | 0.55 | % | 0.57 | % | |||||||||
| ACL - loans(1) to total loans | 1.59 | % | 1.58 | % | 1.56 | % | 1.56 | % | 1.39 | % | |||||||||
| ACL - loans(1) to non-performing loans | 193 | % | 172 | % | 186 | % | 218 | % | 191 | % | |||||||||
| Profitability | |||||||||||||||||||
| Return on average assets | 1.18 | % | 0.85 | % | 0.79 | % | 1.24 | % | 0.91 | % | |||||||||
| Operating return on average assets(2) | 1.25 | % | 1.14 | % | 1.17 | % | 1.11 | % | 1.00 | % | |||||||||
| Return on average common shareholders' equity | 11.98 | % | 8.68 | % | 8.13 | % | 13.47 | % | 9.28 | % | |||||||||
| Operating return on average common shareholders' equity (tangible)(2) | 15.95 | % | 14.83 | % | 15.65 | % | 15.56 | % | 13.08 | % | |||||||||
| Net interest margin | 3.43 | % | 3.41 | % | 3.49 | % | 3.43 | % | 3.32 | % | |||||||||
| Efficiency ratio(2) | 56.7 | % | 58.4 | % | 59.6 | % | 62.6 | % | 63.2 | % | |||||||||
| Non-interest expense to total average assets | 2.40 | % | 2.68 | % | 2.82 | % | 2.61 | % | 2.60 | % | |||||||||
| Operating non-interest expense to total average assets(2) | 2.32 | % | 2.36 | % | 2.45 | % | 2.55 | % | 2.49 | % | |||||||||
| Capital Ratios(3) | |||||||||||||||||||
| Tangible common equity ratio ("TCE")(2) | 7.8 | % | 7.5 | % | 7.5 | % | 7.3 | % | 7.4 | % | |||||||||
| Tier 1 leverage ratio | 9.2 | % | 9.0 | % | 9.0 | % | 9.2 | % | 9.3 | % | |||||||||
| Common equity Tier 1 capital ratio | 11.0 | % | 10.8 | % | 10.5 | % | 10.3 | % | 10.3 | % | |||||||||
| Tier 1 risk-based capital ratio | 11.8 | % | 11.5 | % | 11.3 | % | 11.1 | % | 11.1 | % | |||||||||
| Total risk-based capital ratio | 14.4 | % | 14.3 | % | 14.0 | % | 13.8 | % | 14.0 | % | |||||||||
| (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 March 31, 2025 are preliminary estimates and prior periods are actual. | |||||||||||||||||||
| FULTON FINANCIAL CORPORATION | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||
| CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) | |||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks | $ | 388,503 | $ | 279,041 | $ | 296,500 | $ | 333,238 | $ | 247,581 | |||||||||
| Other interest-earning assets | 778,117 | 924,404 | 1,287,392 | 1,188,341 | 231,389 | ||||||||||||||
| Loans held for sale | 15,965 | 25,618 | 17,678 | 26,822 | 10,624 | ||||||||||||||
| Investment securities | 5,071,323 | 4,806,468 | 4,545,278 | 4,184,027 | 3,783,392 | ||||||||||||||
| Net loans | 23,862,574 | 24,044,919 | 24,176,075 | 24,106,297 | 21,444,483 | ||||||||||||||
| Less: ACL - loans(1) | (379,677) | (379,156) | (375,961) | (375,941) | (297,888) | ||||||||||||||
| Loans, net | 23,482,897 | 23,665,763 | 23,800,114 | 23,730,356 | 21,146,595 | ||||||||||||||
| Net premises and equipment | 186,873 | 195,527 | 171,731 | 180,642 | 213,541 | ||||||||||||||
| Accrued interest receivable | 116,215 | 117,029 | 115,903 | 120,752 | 107,089 | ||||||||||||||
| Goodwill and intangible assets | 629,189 | 635,458 | 641,739 | 648,026 | 560,114 | ||||||||||||||
| Other assets | 1,462,946 | 1,422,502 | 1,309,391 | 1,357,609 | 1,342,632 | ||||||||||||||
| Total Assets | $ | 32,132,028 | $ | 32,071,810 | $ | 32,185,726 | $ | 31,769,813 | $ | 27,642,957 | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
| Deposits | $ | 26,328,972 | $ | 26,129,433 | $ | 26,152,144 | $ | 25,559,654 | $ | 21,741,950 | |||||||||
| Borrowings | 1,657,200 | 1,782,048 | 2,052,227 | 2,178,597 | 2,296,040 | ||||||||||||||
| Other liabilities | 871,535 | 963,004 | 777,412 | 929,953 | 847,288 | ||||||||||||||
| Total Liabilities | 28,857,707 | 28,874,485 | 28,981,783 | 28,668,204 | 24,885,278 | ||||||||||||||
| Shareholders' equity | 3,274,321 | 3,197,325 | 3,203,943 | 3,101,609 | 2,757,679 | ||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 32,132,028 | $ | 32,071,810 | $ | 32,185,726 | $ | 31,769,813 | $ | 27,642,957 | |||||||||
| LOANS, DEPOSITS AND BORROWINGS DETAIL: | |||||||||||||||||||
| Loans, by type: | |||||||||||||||||||
| Real estate - commercial mortgage | $ | 9,676,517 | $ | 9,601,858 | $ | 9,493,479 | $ | 9,289,770 | $ | 8,252,117 | |||||||||
| Commercial and industrial | 4,531,266 | 4,605,589 | 4,914,734 | 4,967,796 | 4,467,589 | ||||||||||||||
| Real estate - residential mortgage | 6,409,657 | 6,349,643 | 6,302,624 | 6,248,856 | 5,395,720 | ||||||||||||||
| Real estate - home equity | 1,170,470 | 1,160,616 | 1,144,402 | 1,120,878 | 1,040,335 | ||||||||||||||
| Real estate - construction | 1,175,445 | 1,394,899 | 1,332,954 | 1,463,799 | 1,249,199 | ||||||||||||||
| Consumer | 597,305 | 616,856 | 651,717 | 692,086 | 698,421 | ||||||||||||||
| Leases and other loans(2) | 301,914 | 315,458 | 336,165 | 323,112 | 341,102 | ||||||||||||||
| Total Net Loans | $ | 23,862,574 | $ | 24,044,919 | $ | 24,176,075 | $ | 24,106,297 | $ | 21,444,483 | |||||||||
| Deposits, by type: | |||||||||||||||||||
| Noninterest-bearing demand | $ | 5,435,934 | $ | 5,499,760 | $ | 5,501,699 | $ | 5,609,383 | $ | 5,086,514 | |||||||||
| Interest-bearing demand | 7,804,388 | 7,843,604 | 7,779,472 | 7,478,077 | 5,521,017 | ||||||||||||||
| Savings | 8,208,526 | 7,792,114 | 7,740,595 | 7,563,495 | 6,846,038 | ||||||||||||||
| Total demand and savings | 21,448,848 | 21,135,478 | 21,021,766 | 20,650,955 | 17,453,569 | ||||||||||||||
| Brokered | 738,458 | 843,857 | 843,473 | 995,975 | 1,152,427 | ||||||||||||||
| Time | 4,141,666 | 4,150,098 | 4,286,905 | 3,912,724 | 3,135,954 | ||||||||||||||
| Total Deposits | $ | 26,328,972 | $ | 26,129,433 | $ | 26,152,144 | $ | 25,559,654 | $ | 21,741,950 | |||||||||
| Borrowings, by type: | |||||||||||||||||||
| Federal Home Loan Bank advances | $ | 750,000 | $ | 850,000 | $ | 950,000 | $ | 750,000 | $ | 900,000 | |||||||||
| Senior debt and subordinated debt | 367,396 | 367,316 | 535,917 | 535,741 | 535,566 | ||||||||||||||
| Other borrowings | 539,804 | 564,732 | 566,310 | 892,856 | 860,474 | ||||||||||||||
| Total Borrowings | $ | 1,657,200 | $ | 1,782,048 | $ | 2,052,227 | $ | 2,178,597 | $ | 2,296,040 | |||||||||
| (1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures. | |||||||||||||||||||
| (2) Includes equipment lease financing, overdraft and net origination fees and costs. | |||||||||||||||||||
| FULTON FINANCIAL CORPORATION | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||||||
| (dollars in thousands, except per share and share data) | |||||||||||||||||||
| Three months ended | |||||||||||||||||||
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Net Interest Income: | |||||||||||||||||||
| Interest income | $ | 399,692 | $ | 414,368 | $ | 427,656 | $ | 400,506 | $ | 339,666 | |||||||||
| Interest expense | 148,505 | 160,709 | 169,647 | 158,786 | 132,729 | ||||||||||||||
| Net Interest Income | 251,187 | 253,659 | 258,009 | 241,720 | 206,937 | ||||||||||||||
| Provision for credit losses | 13,898 | 16,725 | 11,929 | 32,056 | 10,925 | ||||||||||||||
| Net Interest Income after Provision | 237,289 | 236,934 | 246,080 | 209,664 | 196,012 | ||||||||||||||
| Non-Interest Income: | |||||||||||||||||||
| Wealth management | 21,785 | 22,002 | 21,596 | 20,990 | 20,155 | ||||||||||||||
| Commercial banking: | |||||||||||||||||||
| Merchant and card | 6,591 | 7,082 | 7,496 | 7,798 | 6,808 | ||||||||||||||
| Cash management | 7,799 | 7,633 | 7,201 | 6,966 | 6,305 | ||||||||||||||
| Capital markets | 2,411 | 2,797 | 3,311 | 2,585 | 2,341 | ||||||||||||||
| Other commercial banking | 4,528 | 4,942 | 4,281 | 4,061 | 3,375 | ||||||||||||||
| Total commercial banking | 21,329 | 22,454 | 22,289 | 21,410 | 18,829 | ||||||||||||||
| Consumer banking: | |||||||||||||||||||
| Card | 7,544 | 8,064 | 7,917 | 8,305 | 6,628 | ||||||||||||||
| Overdraft | 3,295 | 3,644 | 3,957 | 3,377 | 2,786 | ||||||||||||||
| Other consumer banking | 2,229 | 2,601 | 3,054 | 2,918 | 2,254 | ||||||||||||||
| Total consumer banking | 13,068 | 14,309 | 14,928 | 14,600 | 11,668 | ||||||||||||||
| Mortgage banking | 3,138 | 3,759 | 3,142 | 3,951 | 3,090 | ||||||||||||||
| Gain on acquisition, net of tax | — | (2,689) | (7,706) | 47,392 | — | ||||||||||||||
| Other | 7,914 | 6,089 | 5,425 | 4,933 | 3,398 | ||||||||||||||
| Non-interest income before investment securities gains (losses) | 67,234 | 65,924 | 59,674 | 113,276 | 57,140 | ||||||||||||||
| Investment securities losses, net | (2) | — | (1) | (20,282) | — | ||||||||||||||
| Total Non-Interest Income | 67,232 | 65,924 | 59,673 | 92,994 | 57,140 | ||||||||||||||
| Non-Interest Expense: | |||||||||||||||||||
| Salaries and employee benefits | 103,526 | 107,886 | 118,824 | 110,630 | 95,481 | ||||||||||||||
| Data processing and software | 18,599 | 19,550 | 20,314 | 20,357 | 17,661 | ||||||||||||||
| Net occupancy | 18,207 | 16,417 | 18,999 | 17,793 | 16,149 | ||||||||||||||
| Other outside services | 11,837 | 14,531 | 15,839 | 16,933 | 13,283 | ||||||||||||||
| Intangible amortization | 6,269 | 6,282 | 6,287 | 4,688 | 573 | ||||||||||||||
| FDIC insurance | 5,597 | 5,921 | 5,109 | 6,696 | 6,104 | ||||||||||||||
| Equipment | 4,150 | 4,388 | 4,860 | 4,561 | 4,040 | ||||||||||||||
| Marketing | 2,521 | 2,695 | 2,251 | 2,101 | 1,912 | ||||||||||||||
| Professional fees | (1,078) | 3,387 | 2,811 | 2,571 | 2,088 | ||||||||||||||
| Acquisition-related expenses | 380 | 9,637 | 14,195 | 13,803 | — | ||||||||||||||
| Other | 19,452 | 25,921 | 16,600 | (645) | 20,309 | ||||||||||||||
| Total Non-Interest Expense | 189,460 | 216,615 | 226,089 | 199,488 | 177,600 | ||||||||||||||
| Income Before Income Taxes | 115,061 | 86,243 | 79,664 | 103,170 | 75,552 | ||||||||||||||
| Income tax expense | 22,074 | 17,623 | 16,458 | 8,195 | 13,611 | ||||||||||||||
| Net Income | 92,987 | 68,620 | 63,206 | 94,975 | 61,941 | ||||||||||||||
| Preferred stock dividends | (2,562) | (2,562) | (2,562) | (2,562) | (2,562) | ||||||||||||||
| Net Income Available to Common Shareholders | $ | 90,425 | $ | 66,058 | $ | 60,644 | $ | 92,413 | $ | 59,379 | |||||||||
| Three months ended | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | |||||||||||||
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| PER SHARE: | |||||||||||||||||||
| Net income available to common shareholders (basic) | $0.50 | $0.36 | $0.33 | $0.53 | $0.36 | ||||||||||||||
| Net income available to common shareholders (diluted) | $0.49 | $0.36 | $0.33 | $0.52 | $0.36 | ||||||||||||||
| Cash dividends | $0.18 | $0.18 | $0.17 | $0.17 | $0.17 | ||||||||||||||
| Weighted average shares (basic) | 182,179 | 182,032 | 181,905 | 175,305 | 162,706 | ||||||||||||||
| Weighted average shares (diluted) | 184,077 | 183,867 | 183,609 | 176,934 | 164,520 | ||||||||||||||
| FULTON FINANCIAL CORPORATION | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) | |||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||
| Three months ended | |||||||||||||||||||
| March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||||||||||
| 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) | $ | 24,006,863 | $ | 347,626 | 5.86 | % | $ | 24,068,784 | $ | 360,642 | 5.97 | % | $ | 21,370,033 | $ | 313,882 | 5.90 | % | |
| Investment securities(3) | 5,199,000 | 47,242 | 3.63 | % | 5,033,765 | 44,616 | 3.54 | % | 3,983,753 | 27,048 | 2.71 | % | |||||||
| Other interest-earning assets | 793,126 | 9,164 | 4.67 | % | 1,086,536 | 13,453 | 4.93 | % | 249,079 | 3,328 | 5.36 | % | |||||||
| Total Interest-Earning Assets | 29,998,989 | 404,032 | 5.44 | % | 30,189,085 | 418,711 | 5.53 | % | 25,602,865 | 344,258 | 5.40 | % | |||||||
| Noninterest-earning assets: | |||||||||||||||||||
| Cash and due from banks | 301,897 | 288,867 | 282,895 | ||||||||||||||||
| Premises and equipment | 191,248 | 183,801 | 223,375 | ||||||||||||||||
| Other assets | 1,864,996 | 1,816,421 | 1,614,746 | ||||||||||||||||
| Less: ACL - loans(4) | (385,529) | (379,322) | (296,255) | ||||||||||||||||
| Total Assets | $ | 31,971,601 | $ | 32,098,852 | $ | 27,427,626 | |||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||
| Demand deposits | $ | 7,753,586 | $ | 34,189 | 1.79 | % | $ | 7,838,590 | $ | 37,952 | 1.93 | % | $ | 5,596,725 | $ | 20,500 | 1.47 | % | |
| Savings deposits | 7,971,728 | 45,101 | 2.29 | % | 7,806,303 | 47,280 | 2.41 | % | 6,669,228 | 38,797 | 2.34 | % | |||||||
| Brokered deposits | 904,722 | 10,038 | 4.50 | % | 877,526 | 10,619 | 4.81 | % | 1,083,382 | 14,655 | 5.44 | % | |||||||
| Time deposits | 4,127,784 | 41,564 | 4.08 | % | 4,232,849 | 46,023 | 4.33 | % | 2,968,344 | 29,622 | 4.01 | % | |||||||
| Total Interest-Bearing Deposits | 20,757,820 | 130,892 | 2.56 | % | 20,755,268 | 141,874 | 2.72 | % | 16,317,679 | 103,574 | 2.55 | % | |||||||
| Borrowings and other interest-bearing liabilities | 1,754,900 | 17,613 | 4.07 | % | 1,847,431 | 18,835 | 4.06 | % | 2,608,376 | 29,155 | 4.46 | % | |||||||
| Total Interest-Bearing Liabilities | 22,512,720 | 148,505 | 2.67 | % | 22,602,699 | 160,709 | 2.83 | % | 18,926,055 | 132,729 | 2.82 | % | |||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||
| Demand deposits | 5,412,063 | 5,558,110 | 5,061,075 | ||||||||||||||||
| Other liabilities | 792,693 | 719,017 | 673,551 | ||||||||||||||||
| Total Liabilities | 28,717,476 | 28,879,826 | 24,660,681 | ||||||||||||||||
| Shareholders' equity | 3,254,125 | 3,219,026 | 2,766,945 | ||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 31,971,601 | $ | 32,098,852 | $ | 27,427,626 | |||||||||||||
| Net interest income/net interest margin (fully taxable equivalent) | 255,527 | 3.43 | % | 258,002 | 3.41 | % | 211,529 | 3.32 | % | ||||||||||
| Tax equivalent adjustment | (4,340) | (4,343) | (4,592) | ||||||||||||||||
| Net Interest Income | $ | 251,187 | $ | 253,659 | $ | 206,937 | |||||||||||||
| (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. | |||||||||||||||||||
| (2) Average balances include non-performing loans. | |||||||||||||||||||
| (3) Average balances include amortized historical cost for available for sale ("AFS") securities; the related unrealized holding gains (losses) are included in other assets. | |||||||||||||||||||
| (4) ACL - loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities. | |||||||||||||||||||
| FULTON FINANCIAL CORPORATION | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||
| AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED) | |||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||
| Three months ended | |||||||||||||||||||
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Loans, by type: | |||||||||||||||||||
| Real estate - commercial mortgage | $ | 9,655,283 | $ | 9,595,996 | $ | 9,318,273 | $ | 8,958,139 | $ | 8,166,018 | |||||||||
| Commercial and industrial | 4,608,401 | 4,730,101 | 4,998,051 | 4,853,583 | 4,517,179 | ||||||||||||||
| Real estate - residential mortgage | 6,367,978 | 6,319,205 | 6,268,922 | 5,977,132 | 5,353,905 | ||||||||||||||
| Real estate - home equity | 1,160,713 | 1,116,665 | 1,122,313 | 1,117,367 | 1,039,321 | ||||||||||||||
| Real estate - construction | 1,296,090 | 1,312,245 | 1,437,907 | 1,430,057 | 1,240,640 | ||||||||||||||
| Consumer | 615,741 | 665,261 | 682,602 | 685,183 | 721,523 | ||||||||||||||
| Leases and other loans(1) | 302,657 | 329,311 | 319,733 | 324,453 | 331,447 | ||||||||||||||
| Total Net Loans | $ | 24,006,863 | $ | 24,068,784 | $ | 24,147,801 | $ | 23,345,914 | $ | 21,370,033 | |||||||||
| Deposits, by type: | |||||||||||||||||||
| Noninterest-bearing demand | $ | 5,412,063 | $ | 5,558,110 | $ | 5,495,950 | $ | 5,460,025 | $ | 5,061,075 | |||||||||
| Interest-bearing demand | 7,753,586 | 7,838,590 | 7,668,583 | 7,080,302 | 5,596,725 | ||||||||||||||
| Savings | 7,971,728 | 7,806,303 | 7,663,599 | 7,309,141 | 6,669,228 | ||||||||||||||
| Total demand and savings | 21,137,377 | 21,203,003 | 20,828,132 | 19,849,468 | 17,327,028 | ||||||||||||||
| Brokered | 904,722 | 877,526 | 842,661 | 1,123,328 | 1,083,382 | ||||||||||||||
| Time | 4,127,784 | 4,232,849 | 4,107,466 | 3,670,158 | 2,968,344 | ||||||||||||||
| Total Deposits | $ | 26,169,883 | $ | 26,313,378 | $ | 25,778,259 | $ | 24,642,954 | $ | 21,378,754 | |||||||||
| Borrowings, by type: | |||||||||||||||||||
| Federal funds purchased | $ | — | $ | 54 | $ | — | $ | 32,637 | $ | 173,659 | |||||||||
| Federal Home Loan Bank advances | 709,367 | 727,957 | 754,130 | 833,726 | 902,890 | ||||||||||||||
| Senior debt and subordinated debt | 367,357 | 449,795 | 535,831 | 535,656 | 535,479 | ||||||||||||||
| Other borrowings and other interest-bearing liabilities | 678,176 | 669,625 | 939,387 | 1,039,672 | 996,348 | ||||||||||||||
| Total Borrowings | $ | 1,754,900 | $ | 1,847,431 | $ | 2,229,348 | $ | 2,441,691 | $ | 2,608,376 | |||||||||
| (1) Includes equipment lease financing, overdraft and net origination fees and costs. | |||||||||||||||||||
| FULTON FINANCIAL CORPORATION | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| ASSET QUALITY INFORMATION (UNAUDITED) | |||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||
| Three months ended | |||||||||||||||||||
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Allowance for credit losses related to net loans: | |||||||||||||||||||
| Balance at beginning of period | $ | 379,156 | $ | 375,961 | $ | 375,941 | $ | 297,888 | $ | 293,404 | |||||||||
| CECL day 1 provision expense(1) | — | — | — | 23,444 | — | ||||||||||||||
| Initial purchased credit deteriorated allowance for credit losses | — | (136) | (1,139) | 55,906 | — | ||||||||||||||
| Loans charged off: | |||||||||||||||||||
| Real estate - commercial mortgage | (12,106) | (2,844) | (2,723) | (7,853) | (26) | ||||||||||||||
| Commercial and industrial | (3,865) | (9,480) | (6,256) | (2,955) | (7,632) | ||||||||||||||
| Real estate - residential mortgage | (343) | (55) | (1,131) | (35) | (251) | ||||||||||||||
| Consumer and home equity | (2,193) | (2,179) | (2,308) | (1,766) | (2,238) | ||||||||||||||
| Real estate - construction | — | — | — | — | — | ||||||||||||||
| Leases and other loans(2) | (1,527) | (1,768) | (726) | (1,398) | (805) | ||||||||||||||
| Total loans charged off | (20,034) | (16,326) | (13,144) | (14,007) | (10,952) | ||||||||||||||
| Recoveries of loans previously charged off: | |||||||||||||||||||
| Real estate - commercial mortgage | 374 | 199 | 107 | 146 | 152 | ||||||||||||||
| Commercial and industrial | 5,952 | 1,387 | 1,008 | 796 | 1,248 | ||||||||||||||
| Real estate - residential mortgage | 174 | 104 | 130 | 122 | 116 | ||||||||||||||
| Consumer and home equity | 660 | 974 | 545 | 1,161 | 676 | ||||||||||||||
| Real estate - construction | 82 | 47 | 103 | 233 | — | ||||||||||||||
| Leases and other loans(2) | 201 | 194 | 129 | 247 | 162 | ||||||||||||||
| Recoveries of loans previously charged off | 7,443 | 2,905 | 2,022 | 2,705 | 2,354 | ||||||||||||||
| Net loans charged off | (12,591) | (13,421) | (11,122) | (11,302) | (8,598) | ||||||||||||||
| Provision for credit losses(1) | 13,112 | 16,752 | 12,281 | 10,005 | 13,082 | ||||||||||||||
| Balance at end of period | $ | 379,677 | $ | 379,156 | $ | 375,961 | $ | 375,941 | $ | 297,888 | |||||||||
| Net charge-offs to average loans(3) | 0.21 | % | 0.22 | % | 0.18 | % | 0.19 | % | 0.16 | % | |||||||||
| Provision for credit losses related to OBS Credit Exposures | |||||||||||||||||||
| Provision for credit losses(1) | $ | 786 | $ | (27) | $ | (352) | $ | (1,393) | $ | (2,157) | |||||||||
| NON-PERFORMING ASSETS: | |||||||||||||||||||
| Non-accrual loans | $ | 162,426 | $ | 189,293 | $ | 175,861 | $ | 145,630 | $ | 129,628 | |||||||||
| Loans 90 days past due and accruing | 34,367 | 30,781 | 26,286 | 26,962 | 26,521 | ||||||||||||||
| Total non-performing loans | 196,793 | 220,074 | 202,147 | 172,592 | 156,149 | ||||||||||||||
| Other real estate owned | 2,193 | 2,621 | 2,844 | 1,444 | 277 | ||||||||||||||
| Total non-performing assets | $ | 198,986 | $ | 222,695 | $ | 204,991 | $ | 174,036 | $ | 156,426 | |||||||||
| NON-PERFORMING LOANS, BY TYPE: | |||||||||||||||||||
| Commercial and industrial | $ | 42,913 | $ | 43,677 | $ | 64,450 | $ | 58,433 | $ | 44,118 | |||||||||
| Real estate - commercial mortgage | 88,081 | 102,359 | 71,467 | 48,615 | 47,891 | ||||||||||||||
| Real estate - residential mortgage | 46,878 | 45,901 | 41,727 | 41,033 | 40,685 | ||||||||||||||
| Consumer and home equity | 12,682 | 14,374 | 12,830 | 11,886 | 10,172 | ||||||||||||||
| Leases and other loans(2) | 2,573 | 12,017 | 9,927 | 9,993 | 10,135 | ||||||||||||||
| Real estate - construction | 3,666 | 1,746 | 1,746 | 2,632 | 3,148 | ||||||||||||||
| Total non-performing loans | $ | 196,793 | $ | 220,074 | $ | 202,147 | $ | 172,592 | $ | 156,149 | |||||||||
| (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. | |||||||||||||||||||
| (3) Quarterly results are annualized. | |||||||||||||||||||
| FULTON FINANCIAL CORPORATION | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||
| RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) | |||||||||||||||||||
| (dollars in thousands, except per share and share data) | |||||||||||||||||||
| Explanatory note: | This press release contains supplemental financial information, as detailed below, that has been derived by methods other than GAAP. The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow: | ||||||||||||||||||
| Three months ended | |||||||||||||||||||
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Operating net income available to common shareholders | |||||||||||||||||||
| Net income available to common shareholders | $ | 90,425 | $ | 66,058 | $ | 60,644 | $ | 92,413 | $ | 59,379 | |||||||||
| Less: Other revenue | (122) | (269) | (677) | (708) | (151) | ||||||||||||||
| Plus: Gain on acquisition, net of tax | — | 2,689 | 7,706 | (47,392) | — | ||||||||||||||
| Plus: Loss on securities restructuring | — | — | — | 20,282 | — | ||||||||||||||
| Plus: Core deposit intangible amortization | 6,155 | 6,155 | 6,155 | 4,556 | 441 | ||||||||||||||
| Plus: Acquisition-related expense | 380 | 9,637 | 14,195 | 13,803 | — | ||||||||||||||
| Plus: CECL day 1 provision expense | — | — | — | 23,444 | — | ||||||||||||||
| Less: Gain on sale-leaseback | — | — | — | (20,266) | — | ||||||||||||||
| Plus: FDIC special assessment | — | — | (16) | — | 956 | ||||||||||||||
| Plus: FultonFirst implementation and asset disposals | (47) | 10,001 | 9,385 | 6,323 | 6,329 | ||||||||||||||
| Less: Tax impact of adjustments | (1,337) | (5,360) | (6,099) | (9,961) | (1,591) | ||||||||||||||
| Operating net income available to common shareholders (numerator) | $ | 95,454 | $ | 88,911 | $ | 91,293 | $ | 82,494 | $ | 65,363 | |||||||||
| Weighted average shares (diluted) (denominator) | 184,077 | 183,867 | 183,609 | 176,934 | 164,520 | ||||||||||||||
| Operating net income available to common shareholders, per share (diluted) | $ | 0.52 | $ | 0.48 | $ | 0.50 | $ | 0.47 | $ | 0.40 | |||||||||
| Common shareholders' equity (tangible), per share | |||||||||||||||||||
| Shareholders' equity | $ | 3,274,321 | $ | 3,197,325 | $ | 3,203,943 | $ | 3,101,609 | $ | 2,757,679 | |||||||||
| Less: Preferred stock | (192,878) | (192,878) | (192,878) | (192,878) | (192,878) | ||||||||||||||
| Less: Goodwill and intangible assets | (629,189) | (635,458) | (641,739) | (648,026) | (560,114) | ||||||||||||||
| Tangible common shareholders' equity (numerator) | $ | 2,452,254 | $ | 2,368,989 | $ | 2,369,326 | $ | 2,260,705 | $ | 2,004,687 | |||||||||
| Shares outstanding, end of period (denominator) | 182,204 | 182,089 | 181,957 | 181,831 | 162,087 | ||||||||||||||
| Common shareholders' equity (tangible), per share | $ | 13.46 | $ | 13.01 | $ | 13.02 | $ | 12.43 | $ | 12.37 | |||||||||
| Three months ended | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Operating return on average assets(1) | |||||||||||||||||||
| Net income | $ | 92,987 | $ | 68,620 | $ | 63,206 | $ | 94,975 | $ | 61,941 | |||||||||
| Less: Other revenue | (122) | (269) | (677) | (708) | (151) | ||||||||||||||
| Less: Gain on acquisition, net of tax | — | 2,689 | 7,706 | (47,392) | — | ||||||||||||||
| Plus: Loss on securities restructuring | — | — | — | 20,282 | — | ||||||||||||||
| Plus: Core deposit intangible amortization | 6,155 | 6,155 | 6,155 | 4,556 | 441 | ||||||||||||||
| Plus: Acquisition-related expense | 380 | 9,637 | 14,195 | 13,803 | — | ||||||||||||||
| Plus: CECL day 1 provision expense | — | — | — | 23,444 | — | ||||||||||||||
| Less: Gain on sale-leaseback | — | — | — | (20,266) | — | ||||||||||||||
| Plus: FDIC special assessment | — | — | (16) | — | 956 | ||||||||||||||
| Plus: FultonFirst implementation and asset disposals | (47) | 10,001 | 9,385 | 6,323 | 6,329 | ||||||||||||||
| Less: Tax impact of adjustments | (1,337) | (5,360) | (6,099) | (9,961) | (1,591) | ||||||||||||||
| Operating net income (numerator) | $ | 98,016 | $ | 91,473 | $ | 93,855 | $ | 85,056 | $ | 67,925 | |||||||||
| Total average assets | $ | 31,971,601 | $ | 32,098,852 | $ | 31,895,235 | $ | 30,774,891 | $ | 27,427,626 | |||||||||
| Less: Average net core deposit intangible | (77,039) | (83,173) | (89,350) | (68,234) | (4,666) | ||||||||||||||
| Total operating average assets (denominator) | $ | 31,894,562 | $ | 32,015,679 | $ | 31,805,885 | $ | 30,706,657 | $ | 27,422,960 | |||||||||
| Operating return on average assets | 1.25% | 1.14% | 1.17% | 1.11% | 1.00% | ||||||||||||||
| Operating return on average common shareholders' equity (tangible)(1) | |||||||||||||||||||
| Net income available to common shareholders | $ | 90,425 | $ | 66,058 | $ | 60,644 | $ | 92,413 | $ | 59,379 | |||||||||
| Less: Other revenue | (122) | (269) | (677) | (708) | (151) | ||||||||||||||
| Less: Gain on acquisition, net of tax | — | 2,689 | 7,706 | (47,392) | — | ||||||||||||||
| Plus: Loss on securities restructuring | — | — | — | 20,282 | — | ||||||||||||||
| Plus: Intangible amortization | 6,269 | 6,282 | 6,287 | 4,688 | 573 | ||||||||||||||
| Plus: Acquisition-related expense | 380 | 9,637 | 14,195 | 13,803 | — | ||||||||||||||
| Plus: CECL day 1 provision expense | — | — | — | 23,444 | — | ||||||||||||||
| Less: Gain on sale-leaseback | — | — | — | (20,266) | — | ||||||||||||||
| Plus: FDIC special assessment | — | — | (16) | — | 956 | ||||||||||||||
| Plus: FultonFirst implementation and asset disposals | (47) | 10,001 | 9,385 | 6,323 | 6,329 | ||||||||||||||
| Less: Tax impact of adjustments | (1,361) | (5,387) | (6,127) | (9,989) | (1,618) | ||||||||||||||
| Adjusted net income available to common shareholders (numerator) | $ | 95,544 | $ | 89,011 | $ | 91,397 | $ | 82,598 | $ | 65,468 | |||||||||
| Average shareholders' equity | $ | 3,254,125 | $ | 3,219,026 | $ | 3,160,322 | $ | 2,952,671 | $ | 2,766,945 | |||||||||
| Less: Average preferred stock | (192,878) | (192,878) | (192,878) | (192,878) | (192,878) | ||||||||||||||
| Less: Average goodwill and intangible assets | (632,254) | (638,507) | (644,814) | (624,471) | (560,393) | ||||||||||||||
| Average tangible common shareholders' equity (denominator) | $ | 2,428,993 | $ | 2,387,641 | $ | 2,322,630 | $ | 2,135,322 | $ | 2,013,674 | |||||||||
| Operating return on average common shareholders' equity (tangible) | 15.95% | 14.83% | 15.65% | 15.56% | 13.08% | ||||||||||||||
| (1) Results are annualized. | |||||||||||||||||||
| Three months ended | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Tangible common equity to tangible assets (TCE Ratio) | |||||||||||||||||||
| Shareholders' equity | $ | 3,274,321 | $ | 3,197,325 | $ | 3,203,943 | $ | 3,101,609 | $ | 2,757,679 | |||||||||
| Less: Preferred stock | (192,878) | (192,878) | (192,878) | (192,878) | (192,878) | ||||||||||||||
| Less: Goodwill and intangible assets | (629,189) | (635,458) | (641,739) | (648,026) | (560,114) | ||||||||||||||
| Tangible common shareholders' equity (numerator) | $ | 2,452,254 | $ | 2,368,989 | $ | 2,369,326 | $ | 2,260,705 | $ | 2,004,687 | |||||||||
| Total assets | $ | 32,132,028 | $ | 32,071,810 | $ | 32,185,726 | $ | 31,769,813 | $ | 27,642,957 | |||||||||
| Less: Goodwill and intangible assets | (629,189) | (635,458) | (641,739) | (648,026) | (560,114) | ||||||||||||||
| Total tangible assets (denominator) | $ | 31,502,839 | $ | 31,436,352 | $ | 31,543,987 | $ | 31,121,787 | $ | 27,082,843 | |||||||||
| Tangible common equity to tangible assets | 7.78% | 7.54% | 7.51% | 7.26% | 7.40% | ||||||||||||||
| Efficiency ratio | |||||||||||||||||||
| Non-interest expense | $ | 189,460 | $ | 216,615 | $ | 226,089 | $ | 199,488 | $ | 177,600 | |||||||||
| Less: Acquisition-related expense | (380) | (9,637) | (14,195) | (13,803) | — | ||||||||||||||
| Plus: Gain on sale-leaseback | — | — | — | 20,266 | — | ||||||||||||||
| Less: FDIC special assessment | — | — | 16 | — | (956) | ||||||||||||||
| Less: FultonFirst implementation and asset disposals | 47 | (10,001) | (9,385) | (6,323) | (6,329) | ||||||||||||||
| Less: Intangible amortization | (6,269) | (6,282) | (6,287) | (4,688) | (573) | ||||||||||||||
| Operating non-interest expense (numerator) | $ | 182,858 | $ | 190,695 | $ | 196,238 | $ | 194,940 | $ | 169,742 | |||||||||
| Net interest income | $ | 251,187 | $ | 253,659 | $ | 258,009 | $ | 241,720 | $ | 206,937 | |||||||||
| Tax equivalent adjustment | 4,340 | 4,343 | 4,424 | 4,556 | 4,592 | ||||||||||||||
| Plus: Total non-interest income | 67,232 | 65,924 | 59,673 | 92,994 | 57,140 | ||||||||||||||
| Less: Other revenue | (122) | (269) | (677) | (708) | (151) | ||||||||||||||
| Less: Gain on acquisition, net of tax | — | 2,689 | 7,706 | (47,392) | — | ||||||||||||||
| Plus: Investment securities (gains) losses, net | 2 | — | 1 | 20,282 | — | ||||||||||||||
| Total revenue (denominator) | $ | 322,639 | $ | 326,346 | $ | 329,136 | $ | 311,452 | $ | 268,518 | |||||||||
| Efficiency ratio | 56.7% | 58.4% | 59.6% | 62.6% | 63.2% | ||||||||||||||
| Operating non-interest expense to total average assets(1) | |||||||||||||||||||
| Non-interest expense | $ | 189,460 | $ | 216,615 | $ | 226,089 | $ | 199,488 | $ | 177,600 | |||||||||
| Less: Intangible amortization | (6,269) | (6,282) | (6,287) | (4,688) | (573) | ||||||||||||||
| Less: Acquisition-related expense | (380) | (9,637) | (14,195) | (13,803) | — | ||||||||||||||
| Plus: Gain on sale-leaseback | — | — | — | 20,266 | — | ||||||||||||||
| Less: FDIC special assessment | — | — | 16 | — | (956) | ||||||||||||||
| Less: FultonFirst implementation and asset disposals | 47 | (10,001) | (9,385) | (6,323) | (6,329) | ||||||||||||||
| Operating non-interest expense (numerator) | $ | 182,858 | $ | 190,695 | $ | 196,238 | $ | 194,940 | $ | 169,742 | |||||||||
| Total average assets (denominator) | $ | 31,971,601 | $ | 32,098,852 | $ | 31,895,235 | $ | 30,774,891 | $ | 27,427,626 | |||||||||
| Operating non-interest expenses to total average assets | 2.32% | 2.36% | 2.45% | 2.55% | 2.49% | ||||||||||||||
| (1) Results are annualized. |
15
a992esslide-consolidated
FIRST QUARTER 2025 RESULTS NASDAQ: FULT Data as of or for the period ended March 31, 2025 unless otherwise noted
This presentation may contain forward-looking statements with respect to Fulton Financial Corporation's (the "Corporation“ or “Fulton”) 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 "2025 Operating Guidance" contained herein is compri sed 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, 2024 and other 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 First Quarter 2025 Financial Highlights (1) Non-GAAP financial measures. 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. Productivity: • Operating Net Income Available to Common Shareholders of $0.52 per Diluted Share • Solid operating profitability metrics • Improvements in Efficiency and Operating Expense levels • Increases to PPNR and PPNR / Average Assets Focus: • Benefits realization related to core strategy • Risk management actions impacting loan growth • Strengthening of the balance sheet • Progress on key strategic initiatives 1Q25 4Q24 1Q25 4Q24 Net Income Available to Common Shareholders (dollars in millions) $90.4 $66.1 $95.5 $88.9 Return on Average Assets (annualized) 1.18% 0.85% 1.25% 1.14% Return on Average Tangible Common Equity (annualized; non-GAAP) -- -- 15.95% 14.83% Efficiency Ratio (non-GAAP) -- -- 56.7% 58.4% Operating Expenditures / Average Assets (annualized) 2.40% 2.68% 2.32% 2.36% Diluted Earnings Per Share $0.49 $0.36 $0.52 $0.48 Pre-Provision Net Revenue ("PPNR") (dollars in millions; non-GAAP) -- -- $135.3 $131.2 PPNR / Average Assets (annualized; non-GAAP) -- -- 1.72% 1.63% GAAP Reported Operating (1)
(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 1Q25 4Q24 Linked-Quarter Change Net interest income $251,187 $253,659 ($2,472) Provision for credit losses 13,898 16,725 (2,827) Non-interest income 67,234 65,924 1,310 Securities (losses) (2) - (2) Non-interest expense 189,460 216,615 (27,155) Income before income taxes 115,061 86,243 28,818 Income taxes 22,074 17,623 4,451 Net income 92,987 68,620 24,367 Preferred stock dividends (2,562) (2,562) - Net income available to common shareholders $90,425 $66,058 $24,367 Net income available to common shareholders, per share (diluted) $0.49 $0.36 $0.13 Operating net income available to common shareholders, per share (diluted)(1) $0.52 $0.48 $0.04 ROAA 1.18% 0.85% 0.33% Operating ROAA(1) 1.25% 1.14% 0.11% ROAE 11.98% 8.68% 3.30% Operating ROAE (tangible)(1) 15.95% 14.83% 1.12% Efficiency ratio(1) 56.7% 58.4% -1.7% (dollars in thousands, except per-share data)
• NIM was 3.43% in the first quarter of 2025, increasing two basis points compared to the fourth quarter of 2024. • Loan yields decreased by 11 basis points during the first quarter of 2025 to 5.86% compared to 5.97% in the fourth quarter of 2024. Loan yields were impacted by the full quarter affect of lower federal funds rate. • Total cost of deposits was 2.03% for the first quarter of 2025, a decrease of 11 basis points compared to the fourth quarter of 2024. Disciplined deposit pricing and product management drove costs lower. 5 Net Interest Income and Net Interest Margin (“NIM”) 1Q25 Highlights Net Interest Income(1) & NIM Average Deposits and Borrowings & Other and Cost of Funds Average Interest-Earning Assets & Yields (dollars in millions) (dollars in billions) (dollars in billions) (1) Net interest income on a non-fully taxable-equivalent basis.
6 Non-Interest Income 1Q25 Highlights • Linked quarter increase of $1.3 million, benefited by a $2.4 million adjustment in equity method investments • Commercial banking income decreased due to day count and activity-based revenue • Consumer fees primarily impacted by day count • Mortgage banking activity at seasonal lows ahead of the spring/summer buying season; gain on sale spreads declined 33 basis points linked quarter (dollars in thousands) 1Q25 4Q24 3Q24 4Q24 3Q24 Commercial banking $21,329 $22,454 $22,289 ($1,125) ($960) Wealth management 21,785 22,002 21,596 (217) 189 Consumer banking 13,068 14,309 14,928 (1,241) (1,860) Mortgage banking 3,138 3,759 3,142 (621) (4) Gain on acquisition, net of tax - (2,689) (7,706) 2,689 7,706 Other 7,914 6,089 5,425 1,825 2,489 Non-interest income before investment securities gains (losses) $67,234 $65,924 $59,674 $1,310 $7,560 Investment securities gains (losses), net (2) - (1) (2) (1) Total Non-Interest Income $67,232 $65,924 $59,673 $1,308 $7,559 Change Since
7 Non-Interest Expense (1) Non-GAAP financial measures. 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. 1Q25 Highlights • Operating expense down $7.8 million on a linked- quarter basis • Decrease in professional fees driven by a recovery of previously incurred fees • Overall expense management contributed to declines in most categories • Negligible FultonFirst implementation costs in 1Q25, with $14 million projected for the remainder of 2025 (dollars in thousands) 1Q25 4Q24 3Q24 4Q24 3Q24 Salaries and employee benefits $103,526 $107,886 $118,824 ($4,360) ($15,298) Data processing and software 18,599 19,550 20,314 (951) (1,715) Net occupancy 18,207 16,417 18,999 1,790 (792) Other outside services 11,837 14,531 15,839 (2,694) (4,002) Intangible Amortization 6,269 6,282 6,287 (13) (18) FDIC insurance 5,597 5,921 5,109 (324) 488 Equipment 4,150 4,388 4,860 (238) (710) Professional fees (1,078) 3,387 2,811 (4,465) (3,889) Acquisition-related expenses 380 9,637 14,195 (9,257) (13,815) Other 21,973 28,616 18,851 (6,643) 3,122 Total non-interest expense $189,460 $216,615 $226,089 ($27,155) ($36,629) Non-GAAP Adjustments: Less: Intangible amortization (6,269) (6,282) (6,287) 13 18 Less: Acquisition-related expenses (380) (9,637) (14,195) 9,257 13,815 Less: FDIC special assessment - - 16 - (16) Less: FultonFirst implementation and asset disposals 47 (10,001) (9,385) 10,048 9,432 Operating non-interest expense (1) $182,858 $190,695 $196,238 ($7,837) ($13,380) Change Since
8 Asset Quality Provision for Credit Losses Non-Performing Assets (“NPAs”) & NPAs to Assets 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.
9 (1) Regulatory capital ratios and excess capital amounts as of March 31, 2025 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. (as of March 31, 2025) (dollars in millions) (2) Capital Ratios(1)
2025 Operating Guidance 10 (1) NII is on a non-FTE basis; incorporates four 25 basis point federal funds rate decreases starting in June 2025. (2) Excludes non-operating expenses and core deposit intangible (“CDI”) amortization. Income Statement Line Item Expected Range Outlook Non-FTE Net Interest Income ("NII") (1) $995 million - $1.020 billion Low single digit interest earning asset growth [ FTE Adjustment for NIM calculation ] [ ~$17 million annualized ] Provision for Credit Losses $60 - $80 million Low single digit loan growth and continued credit trends Non-Interest Income $265 - $280 million Steady customer activity offset by the impact of higher rates on transactional businesses Non-Interest Expense (Operating) (2) $755 - $775 million Relatively flat to 2024 Non-Operating Assumptions: [ 2025 CDI expense ] [ $22.5 million ] [ 2H25 steps down to $5.2 million per quarter from $6.1 million per quarter ] [ Non-Operating Expenses ] [ $14 million ] [ Estimated 2025 FultonFirst implementation expenses ] Effective Tax Rate: 18% - 19% Updated from 18.0% +/-
11 Deposit Portfolio That Is Granular, Tenured and Diversified With Significant Liquidity Coverage Deposit Mix By Customer (March 31, 2025) Deposit Portfolio Highlights(1) 885,025 deposit accounts $30,208 average account balance ~10 year average account age 23% net estimated uninsured deposits 276% coverage of net estimated uninsured deposits Deposit Mix By Product(2) (1) As of March 31, 2025. Estimated uninsured deposits net of collateralized municipal deposits and inter-company deposits. For the calculation of the coverage of net estimated uninsured deposits, please refer to the slide titled “Liquidity Profile.” (2) Deposit balances are ending balances. (dollars in millions)
12 Balance Sheet Maintains Flexibility (1) Time deposits include brokered certificates of deposit (“CDs”). Time deposits provide gradual tailwind in current environment Deposit Mix by Product Type(1) (March 31, 2025) Loan Mix by Rate Type (March 31, 2025) The majority of adjustable-rate loans reprice beyond two years Loans by Rate Type Balance (dollars in millions) Weighted Average Contractual Repricing Date (years) Variable $9,879 0.07 Fixed 8,307 - Adjustable 5,677 4.38 CD Maturities (next twelve months) Balance (dollars in millions) Average Cost (%) 2nd Quarter 2025 $1,402 4.41% 3rd Quarter 2025 1,366 4.16% 4th Quarter 2025 1,152 3.99% 1st Quarter 2026 475 3.45% Total $4,395 4.12%
The Loan Portfolio Remains Diversified and Granular With Low Office Concentration at 3% of Total Loans 13 (1) LTV as of most recent appraisal. (2) Metropolitan Statistical Areas or “MSA” titled in short name for presentation purposes. Geographically Diverse by MSA(2)Maturing Over Time Total Loan Portfolio (March 31, 2025) Office Only Profile Total Office Loan Commitments: $812 million Total Office Loans Outstanding: $765 million Average Loan Size: $2.2 million Weighted Average loan-to-value(1) ("LTV"): 58% Weighted Average Debt Service Coverage Ratio ("DSCR"): 1.35x Class A: 28% Class B: 33% Class C: 9% Not Classified: 30%
Multi-Family Loans Represent 8% of the Total Loan Portfolio With a Small Average Loan Size, Low LTV and Solid DSCR 14 Diversified by Geographical MSA(2) Total Loan Portfolio (March 31, 2025) Multi-Family Profile Maturing Over Time (1) LTV as of most recent appraisal. (2) Metropolitan Statistical Areas or “MSA” titled in short name for presentation purposes. Total Multi-Family Loan Commitments: $2.3 billion Total Multi-Family Loans Outstanding: $1.9 billion Average Loan Size: $3.3 million Weighted Average LTV(1): 60% Weighted Average DSCR: 1.32x Class A: 47% Class B: 13% Class C: 4% Not Classified: 36%
Available Liquidity March 31, 2025 Cash On-Hand (1) 686$ Federal Reserve Capacity 3,974 Total Available @ Federal Reserve 3,974$ FHLB Borrowing Capacity 11,382 Advances(2) (766) Letters of Credit (4,208) Total Available @ FHLB 6,408$ Total Committed Liquidity 10,382$ Fed Funds Lines 2,556 Outstanding Net Fed Funds - Total Fed Funds Lines Available 2,556$ Brokered Deposit Capacity (3) 4,160 Brokered & Wholesale Deposits (738) Total Brokered Deposit Availability 3,422$ Total Uncommitted Available Liquidity 5,978$ Total Available Liquidity 17,046$ Estimated Uninsured Deposits March 31, 2025 Total Deposits 26,329$ Estimated Uninsured Deposits 9,380$ Estimated Uninsured Deposits to Total Deposits 36% Estimated Uninsured Deposits 9,380$ Less: Collateralized Municipal Deposits (3,195) Net Estimated Uninsured Deposits (4) 6,185$ Net Estimated Uninsured Deposits to Total Deposits 23% Committed Liquidity to Net Estimated Uninsured Deposits 168% Available Liquidity to Net Estimated Uninsured Deposits 276% 15 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 millions) (dollars in millions) • Robust liquidity profile with additional capacity at the Federal Reserve, FHLB and other available funding sources • Total available liquidity significantly exceeds net estimated uninsured deposits • On balance sheet liquidity remains a focus
16 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 consolidatedfinancial statements in their entirety. Non-GAAP Reconciliation Three months ended (dollars in thousands) Mar 31 Dec 31 2025 2024 Operating net income available to common shareholders Net income available to common shareholders 90,425$ 66,058$ Less: Other revenue (122) (269) Plus: Gain on acquisition, net of tax - 2,689 Plus: Core deposit intangible amortization 6,155 6,155 Plus: Acquisition-related expense 380 9,637 Plus: FultonFirst implementation and asset disposals (47) 10,001 Less: Tax impact of adjustments (1,337) (5,360) Operating net income available to common shareholders (numerator) 95,454$ 88,911$ Weighted average shares (diluted) (denominator) 184,077 183,867 Operating net income available to common shareholder, per share (diluted) 0.52$ 0.48$
17 Non-GAAP Reconciliation Three months ended (dollars in thousands) Mar 31 Dec 31 2025 2024 Operating return on average assets Net income 92,987$ 68,620$ Less: Other revenue (122) (269) Less: Loss (gain) on acquisition, net of tax - 2,689 Plus: Core deposit intangible amortization 6,155 6,155 Plus: Acquisition-related expense 380 9,637 Plus: FultonFirst implementation and asset disposals (47) 10,001 Less: Tax impact of adjustments (1,337) (5,360) Operating net income (numerator) 98,016$ 91,473$ Total average assets 31,971,601$ 32,098,852$ Less: Average net core deposit intangible (77,039) (83,173) Total Operating average assets (denominator) 31,894,562$ 32,015,679$ Operating return on average assets 1.25% 1.14%
18 Non-GAAP Reconciliation Three months ended (dollars in thousands) Mar 31 Dec 31 2025 2024 Operating non-interest expense to total average assets Non-interest expense 189,460$ 216,615$ Less: Intangible amortization (6,269) (6,282) Less: Acquisition-related expense (380) (9,637) Less: FultonFirst implementation and asset disposals 47 (10,001) Operating non-interest expense (numerator) 182,858$ 190,695$ Total average assets (denominator) $31,971,601 $32,098,852 Operating non-interest expense to total average assets 2.32% 2.36%
19 Non-GAAP Reconciliation Three months ended (dollars in thousands) Mar 31 Dec 31 2025 2024 Pre-provision net revenue / average assets Plus: Net interest income 251,187$ 253,659$ Plus: Non-interest income 67,232 65,924 Less: Non-interest expense (189,460) (216,615) Less: Other revenue (122) (269) Less: Loss (gain) on acquisition, net of tax - 2,689 Plus: Core deposit intangible amortization 6,155 6,155 Plus: Acquisition-related expense 380 9,637 Plus: FultonFirst implementation and asset disposals (47) 10,001 Pre-provision net revenue (numerator) 135,325$ 131,181$ Total average assets $31,971,601 $32,098,852 Less: Average net core deposit intangible (77,039) (83,173) Average assets (denominator) 31,894,562$ 32,015,679$ Pre-provision net revenue / average assets (annualized) 1.72% 1.63%
20 Non-GAAP Reconciliation Three months ended (dollars in thousands) Mar 31 Dec 31 2025 2024 Operating return on average common shareholders' equity (tangible) Net income available to common shareholders 90,425$ 66,058$ Less: Other revenue (122) (269) Less: Loss (gain) on acquisition, net of tax - 2,689 Plus: Intangible amortization 6,269 6,282 Plus: Acquisition-related expense 380 9,637 Plus: FultonFirst implementation and asset disposals (47) 10,001 Less: Tax impact of adjustments (1,361) (5,387) Adjusted net income available to common shareholders (numerator) 95,544$ 89,011$ Average Shareholders' equity 3,254,125$ 3,219,026$ Less: Average preferred stock (192,878) (192,878) Less: Average goodwill and intangible assets (632,254) (638,507) Average tangible common shareholders' equity (denominator) 2,428,993$ 2,387,641$ Operating return on average common shareholders' equity (tangible) 15.95% 14.83%
21 Non-GAAP Reconciliation Three months ended (dollars in thousands) Mar 31 Dec 31 Efficiency ratio 2025 2024 Non-interest expense 189,460$ 216,615$ Less: Acquisition-related expense (380) (9,637) Less: FultonFirst implementation and asset disposals 47 (10,001) Less: Intangible amortization (6,269) (6,282) Operating non-interest expense (numerator) 182,858$ 190,695$ Net interest income 251,187$ 253,659$ Tax equivalent adjustment 4,340 4,343 Plus: Total non-interest income 67,232 65,924 Less: Other revenue (122) (269) Less: Loss (gain) on acquisition, net of tax - 2,689 Plus: Investment securities (gains) losses, net 2 - Total revenue (denominator) 322,639$ 326,346$ Efficiency ratio 56.7% 58.4%
22 Non-GAAP Reconciliation (dollars in thousands, except per share data) Mar 31 Dec 31 2025 2024 Tangible book value per share Shareholders' equity $3,274,321 $3,197,325 Less: Preferred stock (192,878) (192,878) Less: Goodwill and intangible assets (629,189) (635,458) Tangible common shareholders' equity (numerator) 2,452,254$ 2,368,989$ Shares outstanding, end of period (denominator) 182,204 182,089 Tangible book value per share 13.46$ 13.01$