fult-20200421
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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 21, 2020
Date of Report (date of earliest event reported)

Fulton Financial Corporation
(Exact name of registrant as specified in its charter)
PA
0-10587
23-2195389
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
One Penn Square,
Lancaster,
PA
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 classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $2.50FULTThe 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 21, 2020, Fulton Financial Corporation (the "Corporation") issued a press release (the "Press Release") announcing its results of operations for the first quarter ended March 31, 2020. A copy of the Press Release and supplementary financial information which accompanied the Press Release, are attached as Exhibits 99.1 and 99.2, respectively, to this Current Report and are incorporated herein by reference. The Corporation also posted on its Investor Relations website, www.fult.com, presentation materials the Corporation intends to use during a conference call and webcast to discuss those results on Wednesday, April 22, 2020 at 10:00 a.m. Eastern Time. A copy of the presentation materials is attached as Exhibit 99.3 to this Current Report and is incorporated herein by reference.
Forward-Looking Statements

This Current Report on Form 8-K, including the Exhibits hereto, may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," "projects," the negative of these terms and other comparable terminology. Statements relating to the "outlook" or "Q2 2020 Outlook" contained in Exhibit 99.3 to this Current Report are forward looking statements. These forward looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results.

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

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2019 and other current and periodic reports, which have been or will be filed with the Securities and Exchange Commission and are or will be available in the Investor Relations section of the Corporation's website (www.fult.com) and on the Securities and Exchange Commission's website (www.sec.gov). The Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 will address risks and uncertainties associated with the COVID-19 pandemic.


In addition, the COVID-19 pandemic is having an adverse impact on the Corporation, its customers and the communities it serves. The adverse effect of the COVID-19 pandemic on the Corporation, its customers and the communities where it operates may adversely affect the Corporation’s business, results of operations and financial condition for an indefinite period of time.


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

Exhibit No.Description
Press Release dated April 21, 2020.
Supplementary financial information for the quarter ended March 31, 2020.
Presentation materials to be discussed during the conference call and webcast on April 22, 2020.























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 21, 2020
FULTON FINANCIAL CORPORATION

By: /s/ Mark R. McCollom
       Mark R. McCollom
       Senior Executive Vice President and
       Chief Financial Officer


Exhibit 99.1

FULTON FINANCIAL
CORPORATION


FOR IMMEDIATE RELEASE
Media Contact: Laura Wakeley (717) 291-2616
Investor Contact: Jason Weber (717) 327-2394


Fulton Financial Responds to the COVID-19 Pandemic, “It’s Personal”, and Announces First quarter Earnings

(April 21, 2020) – Lancaster, PA – Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income of $26 million, or $0.16 per diluted share, for the first quarter of 2020.

“The COVID-19 pandemic and unprecedented public health response have created extraordinary personal and societal challenges across our nation and world,” said E. Philip Wenger, Chairman and CEO. “Fulton began to experience the effects of these challenges midway through the first quarter and our financial results reflect these challenges. But, as we have seen before, extreme hardship often gives rise to extraordinary efforts, and we have seen that with respect to the heroic efforts of our health care workers, first responders and countless other citizens on the front lines of essential businesses that are enabling us to ‘Stay Together, Apart.’ We are all very thankful for their selfless efforts, including from our own employees.”
“In this crisis, more than ever before, our Fulton brand – ‘It’s Personal’– reflects our own bias for action, rather than just words, and that is exemplified in how Fulton is dealing with COVID-related challenges. We have undertaken a number of measures to help our employees and their families through this difficult time, both to keep them safe and also to reward them for keeping us open for business so that we can continue to provide essential banking services to our customers and communities. I am extremely proud of the efforts our employees have made. One outstanding example is how I have seen our people rally to support the SBA’s efforts to assist small businesses and their employees with the Paycheck Protection Program of the CARES Act. Our employees worked 24/7 the last two weeks to have the SBA approve $1.7 billion in forgiveable loans that Fulton Bank is making to our small business customers so that those businesses can maintain employees on their payrolls and, hopefully, reopen for business sometime in the not-too-distant future.”
“No one can predict when our communities and nation will again enjoy a sense of normalcy, but I can tell you that Fulton Bank is strong – it is ‘well-capitalized,’ it is liquid, and it stands ready to continue to deploy its considerable resources in support of customers and communities across our footprint as we continue to navigate through these difficult times in the days and months ahead.”





Net Interest Income and Balance Sheet
Net interest income for the first quarter of 2020 was $161 million, an increase of $1 million from the fourth quarter of 2019, driven by interest-earning asset growth, primarily in loans and investment securities. Net interest margin for the first quarter of 2020 decreased to 3.21% from 3.22% in the fourth quarter of 2019.
Total average assets for the first quarter of 2020 were $22.3 billion, an increase of $440 million from the fourth quarter of 2019. Average loans, net of unearned income, of $16.9 billion were consistent with the fourth quarter of 2019.
Average loans and yields, by type, for the first quarter of 2020 in comparison to the fourth quarter of 2019 are summarized in the following table:
Three Months Ended
March 31, 2020December 31, 2019Growth
BalanceYield (1)BalanceYield (1)$%
(dollars in thousands)
Average Loans, net of unearned income, by type:
    Real estate - commercial mortgage$6,746,766  4.20 %$6,561,029  4.34 %$185,737  2.8 %
    Commercial and industrial4,446,750  4.21 %4,575,133  4.24 %(128,383) (2.8)%
    Real estate - residential mortgage2,670,019  3.97 %2,606,136  4.00 %63,883  2.5 %
    Real estate - home equity1,300,132  4.73 %1,331,088  4.97 %(30,956) (2.3)%
    Real estate - construction929,529  4.13 %934,556  4.37 %(5,027) (0.5)%
    Consumer466,415  4.34 %464,606  4.44 %1,809  0.4 %
    Equipment lease financing284,566  4.32 %281,451  4.35 %3,115  1.1 %
    Other15,890  N/A  14,058  N/A  1,832  13.0 %
Total Average Loans, net of unearned income$16,860,067  4.23 %$16,768,057  4.31 %$92,010  0.5 %
(1) Presented on a fully-taxable equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances.
        
Total average liabilities increased $444 million, from the fourth quarter of 2019 driven by increases in borrowings of $773 million, while average deposits decreased $328 million. Average deposits and interest rates, by type, for the first quarter of 2020 in comparison to the fourth quarter of 2019 are summarized in the following table:

Three Months Ended
March 31, 2020December 31, 2019Growth
BalanceRateBalanceRate$%
(dollars in thousands)
Average Deposits, by type:
    Noninterest-bearing demand$4,307,027  — %$4,324,568  — %$(17,541) (0.4)%
    Interest-bearing demand4,649,905  0.49 %4,699,040  0.72 %(49,135) (1.0)%
    Savings and money market deposits5,127,662  0.56 %5,205,260  0.78 %(77,598) (1.5)%
Total average demand and savings14,084,594  0.36 %14,228,868  0.52 %(144,274) (1.0)%
    Brokered deposits275,359  1.57 %261,689  1.94 %13,670  5.2 %
    Time deposits2,761,474  1.84 %2,959,008  1.86 %(197,534) (6.7)%
Total Average Deposits$17,121,427  0.62 %$17,449,565  0.77 %$(328,138) (1.9)%



Asset Quality

Effective January 1, 2020, Fulton adopted Accounting Standards Update 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” referred to as the current expected credit loss model (“CECL”). This accounting standard requires that credit losses for financial assets and off-balance-sheet credit exposures be measured based on expected credit losses, rather than on incurred credit losses as in prior periods. As a result of the adoption of CECL, the allowance for credit losses was increased by $58 million, and retained earnings was decreased by $44 million.
The provision for credit losses for the first quarter of 2020 was $44 million, applying the expected credit losses measurement standard under CECL. The expected credit losses in the first quarter of 2020 were based on forecasted economic assumptions, including the estimated impacts of COVID-19, over the remaining expected lives of financial assets and off-balance-sheet credit exposures.
Non-performing assets were $147 million, or 0.64% of total assets, at March 31, 2020, relatively unchanged from December 31, 2019 and March 31, 2019. 
Annualized net charge-offs for the quarter ended March 31, 2020 were 0.26% of total average loans, compared to 0.65% and 0.10% for the quarters ended December 31, 2019 and March 31, 2019, respectively. A $20 million charge-off was recorded for one credit in the fourth quarter of 2019, accounting for most of the difference in this metric for that period in comparison to the first quarter of 2020.

Non-interest Income
Non-interest income in the first quarter of 2020, excluding investment securities gains, was $55 million, relatively unchanged from the fourth quarter of 2019 and an increase of $8 million, or 17%, compared to the first quarter of 2019. Drivers of non-interest income growth in the first quarter of 2020 were mortgage banking and wealth management, offset by decreases in capital markets, consumer card income and merchant and commercial card income compared to the fourth quarter of 2019.
Mortgage banking revenue increased $1 million from the fourth quarter of 2019, reflecting the net result of a $2 million increase in gains on mortgage loan sales, partially offset by a $1 million mortgage servicing rights impairment charge recorded in the first quarter of 2020 as a result of rapidly declining interest rates and related increases in prepayment speeds.

Non-interest Expense
Non-interest expense was $143 million in the first quarter of 2020, an increase of $4 million, or 3%, compared to the fourth quarter of 2019. The increase was driven by salaries and employee benefits, professional fees, and FDIC insurance expense.
Compared to the first quarter of 2019, non-interest expenses increased $5 million, or 3% due primarily to higher salaries and employee benefits, data processing and software and one additional day.




Income Tax Expense
The effective income tax rate for the first quarter of 2020 was 10%, as compared to 13% and 16% for the fourth quarter of 2019 and first quarter of 2019, respectively. The decrease in the effective income tax rate in 2020 was related to a decline in income before income taxes.

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



Safe Harbor Statement
This news release may contain forward-looking statements with respect to the
Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," “projects,” the negative of these terms and other comparable terminology. These forward looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results.
Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, they are based on current beliefs, expectations and assumptions regarding the future of the Corporation’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation’s control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2019 and other current and periodic reports, which have been or will be filed with the Securities and Exchange Commission and are or will be available in the Investor Relations section of the Corporation's website (www.fult.com) and on the Securities and Exchange Commission's website (www.sec.gov). The Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 will address risks and uncertainties associated with the COVID-19 pandemic.
In addition, the COVID-19 pandemic is having an adverse impact on the Corporation, its customers and the communities it serves. The adverse effect of the COVID-19 pandemic on the


Corporation, its customers and the communities where it operates may adversely affect the Corporation’s business, results of operations and financial condition for an indefinite period of time.

Non-GAAP Financial Measures

The Corporation uses certain non-GAAP financial measures in this earnings release. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this release.




FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
in thousands, except per-share data and percentages
Three Months Ended
Mar 31Dec 31Sep 30Jun 30Mar 31
20202019201920192019
Ending Balances
Investments$3,141,440  $2,867,378  $2,705,610  $2,853,358  $2,748,249  
Loans, net of unearned income17,077,403  16,837,526  16,686,866  16,368,458  16,262,633  
Total assets22,929,859  21,886,040  21,703,618  21,308,670  20,974,649  
Deposits17,365,026  17,393,913  17,342,717  16,388,895  16,377,978  
Shareholders' equity2,285,748  2,342,176  2,324,016  2,308,798  2,301,019  
Average Balances
Investments$3,071,828  $2,830,999  $2,829,672  $2,790,392  $2,699,130  
Loans, net of unearned income16,860,067  16,768,057  16,436,507  16,316,076  16,194,375  
Total assets22,252,099  21,812,438  21,457,800  21,057,030  20,690,365  
Deposits17,121,427  17,449,565  16,950,667  16,375,457  16,275,633  
Shareholders' equity2,337,016  2,341,397  2,315,585  2,301,258  2,265,097  
Income Statement
Net interest income$160,746  $159,270  $161,260  $164,544  $163,315  
Provision for credit losses44,030  20,530  2,170  5,025  5,100  
Non-interest income54,644  55,281  59,813  54,316  46,751  
Non-interest expense142,552  138,974  146,770  144,168  137,824  
Income before taxes28,808  55,047  72,133  69,667  67,142  
Net income26,047  47,789  62,108  59,780  56,663  
Pre-provision net revenue(1)
74,374  77,224  76,741  76,114  73,775  
Per Share
Net income (basic)$0.16  $0.29  $0.38  $0.36  $0.33  
Net income (diluted)$0.16  $0.29  $0.37  $0.35  $0.33  
Cash dividends$0.13  $0.17  $0.13  $0.13  $0.13  
Tangible common equity(1)
10.8411.0010.9110.6310.39
Weighted average shares (basic)163,475  164,135  165,324  168,343  169,884  
Weighted average shares (diluted)164,417  165,039  166,126  169,168  170,909  
Asset Quality(2)
Net charge-offs (recoveries) to average loans (annualized)0.26 %0.65 %0.15 %(0.04)%0.10 %
Non-performing loans to total loans0.82 %0.84 %0.81 %0.90 %0.85 %
Non-performing assets to total assets0.64 %0.68 %0.66 %0.73 %0.70 %
ACL - loans(3) to loans outstanding
1.40 %0.97 %1.00 %1.04 %1.00 %
ACL - loans(3) to non-performing loans
170 %116 %122 %115 %117 %
Non-performing assets to tangible shareholders' equity
     and ACL - loans (1)(3)
7.37 %7.51 %7.35 %7.97 %7.66 %


Profitability
Return on average assets0.47 %0.87 %1.15 %1.14 %1.11 %
Return on average shareholders' equity4.48 %8.10 %10.64 %10.42 %10.15 %
Return on average shareholders' equity (tangible)(1)
5.84 %10.52 %14.03 %13.60 %13.28 %
Net interest margin3.21 %3.22 %3.31 %3.44 %3.49 %
Efficiency ratio(1)
64.5 %63.1 %63.6 %64.2 %63.9 %
Capital Ratios
Tangible common equity ratio(1)
7.8 %8.5 %8.5 %8.5 %8.6 %
Tier 1 leverage ratio(4)
7.9 %8.4 %8.5 %8.7 %8.9 %
Common equity Tier 1 capital ratio(4)
9.4 %9.7 %9.6 %10.0 %10.2 %
Tier 1 capital ratio(4)
9.4 %9.7 %9.6 %10.0 %10.2 %
Total risk-based capital ratio(4)
13.8 %11.8 %12.0 %12.4 %12.6 %
(1) Please refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this document.
(2) Effective January 1, 2020, Fulton adopted Accounting Standards Update 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” referred to as the current expected credit loss model (“CECL”). This accounting standard requires that credit losses for financial assets and off-balance-sheet ("OBS") credit exposures be measured based on expected credit losses, rather than on incurred credit losses as in prior periods.
(3) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.
(4) Regulatory capital ratios as of March 31, 2020 are preliminary and prior periods are actual.




Exhibit 99.2
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
 % Change from
Mar 31Dec 31Sep 30Jun 30Mar 31Dec 31Mar 31
2020201920192019201920192019
ASSETS
Cash and due from banks$181,777  $132,283  $120,671  $107,091  $115,884  37.4 %56.9 %
Other interest-earning assets793,572  482,930  572,499  488,968  411,037  64.3 %93.1 %
Loans held for sale40,645  37,828  33,945  45,754  27,768  7.4 %46.4 %
Investment securities3,141,440  2,867,378  2,705,610  2,853,358  2,748,249  9.6 %14.3 %
Loans, net of unearned income17,077,403  16,837,526  16,686,866  16,368,458  16,262,633  1.4 %5.0 %
ACL - loans, net of unearned income(1)
(238,508) (163,622) (166,135) (170,233) (162,109) 45.8 %47.1 %
     Net loans16,838,895  16,673,904  16,520,731  16,198,225  16,100,524  1.0 %4.6 %
Premises and equipment236,908  240,046  237,344  243,300  239,004  (1.3)%(0.9)%
Accrued interest receivable59,365  60,898  60,447  62,984  62,207  (2.5)%(4.6)%
Goodwill and intangible assets535,171  535,303  534,178  535,249  535,356  — %— %
Other assets1,102,086  855,470  918,193  773,741  734,620  28.8 %50.0 %
    Total Assets$22,929,859  $21,886,040  $21,703,618  $21,308,670  $20,974,649  4.8 %9.3 %
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits$17,365,026  $17,393,913  $17,342,717  $16,388,895  $16,377,978  (0.2)%6.0 %
Short-term borrowings1,386,808  883,241  832,860  1,188,390  829,016  57.0 %67.3 %
Other liabilities513,811  384,941  477,311  435,171  401,324  33.5 %28.0 %
FHLB advances and long-term debt1,378,466  881,769  726,714  987,416  1,065,312  56.3 %29.4 %
    Total Liabilities20,644,111  19,543,864  19,379,602  18,999,872  18,673,630  5.6 %10.6 %
Shareholders' equity2,285,748  2,342,176  2,324,016  2,308,798  2,301,019  (2.4)%(0.7)%
    Total Liabilities and Shareholders' Equity$22,929,859  $21,886,040  $21,703,618  $21,308,670  $20,974,649  4.8 %9.3 %
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage$6,895,069  $6,700,776  $6,604,634  $6,497,973  $6,428,688  2.9 %7.3 %
Commercial and industrial4,451,239  4,446,701  4,494,496  4,365,248  4,429,538  0.1 %0.5 %
Real estate - residential mortgage2,718,290  2,641,465  2,570,793  2,451,966  2,313,908  2.9 %17.5 %
Real estate - home equity1,292,677  1,314,944  1,346,115  1,386,974  1,413,500  (1.7)%(8.5)%
Real estate - construction947,768  971,079  913,644  922,547  953,087  (2.4)%(0.6)%
Consumer468,172  463,164  464,213  452,874  433,545  1.1 %8.0 %
Equipment lease financing and other304,188  299,397  292,971  290,876  290,367  1.6 %4.8 %
Total Loans, net of unearned income$17,077,403  $16,837,526  $16,686,866  $16,368,458  $16,262,633  1.4 %5.0 %
Deposits, by type:
Noninterest-bearing demand$4,531,872  $4,453,324  $4,240,478  $4,226,404  $4,255,043  1.8 %6.5 %
Interest-bearing demand4,724,520  4,720,188  4,771,109  4,083,615  4,207,442  0.1 %12.3 %
Savings and money market accounts5,092,865  5,153,941  5,094,387  4,938,998  4,907,346  (1.2)%3.8 %
Total demand and savings14,349,257  14,327,453  14,105,974  13,249,017  13,369,831  0.2 %7.3 %
Brokered deposits313,337  264,531  256,870  246,116  251,395  18.5 %24.6 %
Time deposits2,702,432  2,801,929  2,979,873  2,893,762  2,756,752  (3.6)%(2.0)%
Total Deposits$17,365,026  $17,393,913  $17,342,717  $16,388,895  $16,377,978  (0.2)%6.0 %
Short-term borrowings, by type:
Customer repurchase agreements$52,919  $56,707  $58,853  $56,496  $54,440  (6.7)%(2.8)%
Customer short-term promissory notes408,889  326,534  279,007  281,894  299,576  25.2 %36.5 %
Short-term FHLB advances725,000  500,000  475,000  650,000  475,000  45.0 %52.6 %
Federal funds purchased200,000  —  20,000  200,000  —  N/M  N/M  
Total Short-term Borrowings$1,386,808  $883,241  $832,860  $1,188,390  $829,016  57.0 %67.3 %
N/M - Not meaningful
(1) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.




FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands
Three Months Ended % Change from
Mar 31Dec 31Sep 30Jun 30Mar 31Dec 31Mar 31
2020201920192019201920192019
Interest Income:
Interest income$199,378  $202,159  $208,413  $210,034  $204,700  (1.4)%(2.6)%
Interest expense38,632  42,889  47,153  45,490  41,385  (9.9)%(6.7)%
    Net Interest Income160,746  159,270  161,260  164,544  163,315  0.9 %(1.6)%
Provision for credit losses44,030  20,530  2,170  5,025  5,100  114.5 %N/M  
    Net Interest Income after Provision116,716  138,740  159,090  159,519  158,215  (15.9)%(26.2)%
Non-Interest Income:
Wealth management15,055  14,419  13,867  14,153  13,239  4.4 %13.7 %
Mortgage banking 6,234  5,076  6,658  6,593  4,772  22.8 %30.6 %
Consumer banking income:
  Card4,685  4,991  5,791  5,047  4,686  (6.1)%— %
  Overdraft 4,058  4,750  4,682  4,413  4,104  (14.6)%(1.1)%
  Other consumer banking 2,496  2,688  2,860  2,907  2,587  (7.1)%(3.5)%
     Total consumer banking11,239  12,429  13,333  12,367  11,377  (9.6)%(1.2)%
Commercial banking income:
   Merchant and card 5,624  5,841  6,166  6,512  5,558  (3.7)%1.2 %
   Cash management 4,742  4,697  4,696  4,638  4,361  1.0 %8.7 %
Capital markets5,075  5,939  4,448  4,053  2,515  (14.5)%101.8 %
   Other commercial banking 2,978  3,664  3,478  3,815  2,816  (18.7)%5.8 %
     Total commercial banking 18,419  20,141  18,788  19,018  15,250  (8.5)%20.8 %
Other3,651  3,216  2,675  2,009  2,048  13.5 %78.3 %
     Non-interest income before investment securities gains 54,598  55,281  55,321  54,140  46,686  (1.2)%16.9 %
Investment securities gains, net46  —  4,492  176  65  N/M  (29.2)%
    Total Non-Interest Income54,644  55,281  59,813  54,316  46,751  (1.2)%16.9 %
Non-Interest Expense:
Salaries and employee benefits80,228  76,975  78,211  78,991  77,757  4.2 %3.2 %
Net occupancy13,486  13,080  12,368  14,469  12,909  3.1 %4.5 %
Other outside services7,881  8,215  12,163  11,259  8,352  (4.1)%(5.6)%
Data processing and software11,645  11,468  11,590  11,268  10,353  1.5 %12.5 %
Equipment 3,418  3,475  3,459  3,299  3,342  (1.6)%2.3 %
Professional fees4,202  2,873  3,331  2,970  3,960  46.3 %6.1 %
Marketing1,579  1,503  3,322  2,863  2,160  5.1 %(26.9)%
Amortization of tax credit investments1,450  1,505  1,533  1,492  1,491  (3.7)%(2.7)%
FDIC insurance2,808  2,177  239  2,755  2,609  29.0 %7.6 %
Intangible amortization132  142  1,071  107  107  (7.0)%23.4 %
Prepayment penalty on FHLB advances—  —  4,326  —  —  — %— %
Other15,723  17,561  15,157  14,695  14,784  (10.5)%6.4 %
    Total Non-Interest Expense142,552  138,974  146,770  144,168  137,824  2.6 %3.4 %
    Income Before Income Taxes28,808  55,047  72,133  69,667  67,142  (47.7)%(57.1)%
Income tax expense2,761  7,258  10,025  9,887  10,479  (62.0)%(73.7)%
    Net Income$26,047  $47,789  $62,108  $59,780  $56,663  (45.5)%(54.0)%
PER SHARE:
Net income:
    Basic$0.16  $0.29  $0.38  $0.36  $0.33  (44.8)%(51.5)%
    Diluted0.16  0.29  0.37  0.35  0.33  (44.8)%(51.5)%
Cash dividends0.13  0.17  0.13  0.13  0.13  (23.5)%— %
Weighted average shares (basic)163,475  164,135  165,324  168,343  169,884  (0.4)%(3.8)%
Weighted average shares (diluted)164,417  165,039  166,126  169,168  170,909  (0.4)%(3.8)%
N/M - not meaningful





FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
 Three Months Ended
March 31, 2020December 31, 2019March 31, 2019
AverageYield/AverageYield/AverageYield/
BalanceInterest (1)RateBalanceInterest (1)RateBalanceInterest (1)Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income$16,860,067  $177,496  4.23%$16,768,057  $182,024  4.31%$16,194,375  $186,122  4.65%
Taxable investment securities2,284,457  16,294  2.85%2,198,252  15,621  2.84%2,285,724  15,435  2.70%
Tax-exempt investment securities720,223  5,960  3.29%594,487  5,058  3.38%444,132  4,150  3.71%
Total Investment Securities3,004,680  22,254  2.96%2,792,739  20,679  2.96%2,729,856  19,585  2.87%
Loans held for sale27,178  320  4.71%30,062  295  3.93%16,434  240  5.85%
Other interest-earning assets602,270  2,532  1.69%492,560  2,370  1.92%366,175  2,002  2.20%
Total Interest-earning Assets20,494,195  202,602  3.97%20,083,418  205,368  4.07%19,306,840  207,949  4.35%
Noninterest-earning assets:
Cash and due from banks138,248  128,417  110,693  
Premises and equipment239,619  239,294  237,124  
Other assets1,590,666  1,528,758  1,197,034  
Less: ACL - loans(2)
(210,629) (167,449) (161,326) 
Total Assets$22,252,099  $21,812,438  $20,690,365  
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits$4,649,905  $5,643  0.49%$4,699,040  $8,494  0.72%$4,153,984  $7,519  0.73%
Savings deposits5,127,662  7,110  0.56%5,205,260  10,253  0.78%4,912,856  9,962  0.82%
Brokered deposits275,359  1,073  1.57%261,689  1,279  1.94%220,115  1,382  2.55%
Time deposits2,761,474  12,614  1.84%2,959,008  13,775  1.86%2,765,803  10,826  1.59%
Total Interest-bearing Deposits12,814,400  26,440  0.83%13,124,997  33,801  1.02%12,052,758  29,689  1.00%
Short-term borrowings1,303,047  4,073  1.25%717,811  2,343  1.29%820,054  3,582  1.76%
FHLB advances and long-term debt1,063,214  8,119  3.06%875,802  6,745  3.07%1,002,463  8,114  3.26%
Total Interest-bearing Liabilities15,180,661  38,632  1.02%14,718,610  42,889  1.16%13,875,275  41,385  1.21%
Noninterest-bearing liabilities:
Demand deposits4,307,027  4,324,568  4,222,875  
Total deposits17,121,427  17,449,565  16,275,633  
Other427,395  427,863  327,118  
Total Liabilities19,915,083  19,471,041  18,425,268  
Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")19,487,688  0.80 %19,043,178  0.89 %18,098,150  0.93 %
Shareholders' equity2,337,016  2,341,397  2,265,097  
Total Liabilities and Shareholders' Equity$22,252,099  $21,812,438  $20,690,365  
Net interest income/net interest margin (fully taxable equivalent)163,970  3.21%162,479  3.22%166,564  3.49%
Tax equivalent adjustment(3,224) (3,209) (3,249) 
Net interest income$160,746  $159,270  $163,315  
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Three Months Ended% Change from
Mar 31Dec 31Sep 30Jun 30Mar 31Dec 31Mar 31
2020201920192019201920192019
Loans, by type:
Real estate - commercial mortgage$6,746,766  $6,561,029  $6,489,456  $6,424,213  $6,378,145  2.8 %5.8 %
Commercial and industrial4,446,750  4,574,047  4,414,992  4,440,860  4,462,609  (2.8)%(0.4)%
Real estate - residential mortgage2,670,019  2,606,136  2,512,899  2,366,685  2,276,611  2.5 %17.3 %
Real estate - home equity1,300,132  1,331,088  1,364,161  1,404,141  1,433,574  (2.3)%(9.3)%
Real estate - construction929,529  934,556  905,060  943,080  930,246  (0.5)%(0.1)%
Consumer466,415  464,606  457,524  445,666  424,480  0.4 %9.9 %
Equipment lease financing and other300,456  296,595  292,415  291,431  288,710  1.3 %4.1 %
Total Loans, net of unearned income$16,860,067  $16,768,057  $16,436,507  $16,316,076  $16,194,375  0.5 %4.1 %
Deposits, by type:
Noninterest-bearing demand$4,307,027  $4,324,568  $4,247,820  $4,200,810  $4,222,875  (0.4)%2.0 %
Interest-bearing demand4,649,905  4,699,040  4,448,112  4,186,280  4,153,984  (1.0)%11.9 %
Savings and money market accounts5,127,662  5,205,260  5,026,316  4,925,788  4,912,856  (1.5)%4.4 %
     Total demand and savings14,084,594  14,228,868  13,722,248  13,312,878  13,289,715  (1.0)%6.0 %
Brokered deposits275,359  261,689  253,426  246,154  220,115  5.2 %25.1 %
Time deposits2,761,474  2,959,008  2,974,993  2,816,425  2,765,803  (6.7)%(0.2)%
Total Deposits$17,121,427  $17,449,565  $16,950,667  $16,375,457  $16,275,633  (1.9)%5.2 %
Short-term borrowings, by type:
Customer repurchase agreements$52,399  $59,363  $61,230  $56,171  $56,707  (11.7)%(7.6)%
Customer short-term promissory notes375,841  318,166  271,663  288,696  312,092  18.1 %20.4 %
Federal funds purchased186,868  91,467  101,022  181,769  157,122  104.3 %18.9 %
Short-term FHLB advances 687,937  248,815  485,782  414,868  294,133  176.5 %133.9  


Total Short-term Borrowings$1,303,045  $717,811  $919,697  $941,504  $820,054  81.5 %58.9 %
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
(2) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.




FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
Three Months Ended
Mar 31Dec 31Sep 30Jun 30Mar 31
20202019201920192019
Allowance for credit losses related to Loans, net of unearned income
Balance at beginning of period$163,620  $166,135  $170,233  $162,109  $160,537  
Impact of adopting CECL45,724  —  —  —  —  
Loans charged off:
    Commercial and industrial(10,899) (30,547) (7,181) (1,895) (2,787) 
    Real estate - commercial mortgage(855) (68) (394) (230) (1,145) 
    Consumer and home equity(1,529) (1,416) (1,375) (1,001) (902) 
    Real estate - residential mortgage(187) (223) (533) (134) (655) 
    Real estate - construction—  —  (45) (3) (95) 
    Equipment lease financing and other(533) (727) (600) (448) (785) 
    Total loans charged off(14,003) (32,981) (10,128) (3,711) (6,369) 
Recoveries of loans previously charged off:
    Commercial and industrial1,734  2,487  2,311  2,680  1,243  
    Real estate - commercial mortgage244  1,453  444  169  136  
    Consumer and home equity646  437  348  802  407  
    Real estate - residential mortgage85  206  440  211  132  
    Real estate - construction70  1,098  164  1,245  84  
    Equipment lease financing and other108  182  107  148  229  
    Recoveries of loans previously charged off2,887  5,863  3,814  5,255  2,231  
Net loans recovered charged off(11,116) (27,118) (6,314) 1,544  (4,138) 
Provision for credit losses40,280  24,603  2,216  6,580  5,710  
Balance at end of period$238,508  $163,620  $166,135  $170,233  $162,109  
Net charge-offs to average loans (annualized)0.26 %0.65 %0.15 %(0.04)%0.10 %
Allowance credit losses related to OBS Credit Exposures(1)
Balance at beginning of period$2,588  $6,662  $6,708  $8,263  $8,873  
Impact of adopting CECL12,625  —  —  —  —  
Provision for credit losses 3,750  (4,074) (46) (1,555) (610) 
Balance at end of period$18,963  $2,588  $6,662  $6,708  $8,263  
NON-PERFORMING ASSETS:
Non-accrual loans$120,345  $125,098  $124,287  $133,118  $127,141  
Loans 90 days past due and accruing19,593  16,057  11,689  14,598  11,540  
    Total non-performing loans139,938  141,155  135,976  147,716  138,681  
Other real estate owned6,593  6,831  7,706  7,241  9,012  
Total non-performing assets$146,531  $147,986  $143,682  $154,957  $147,693  
NON-PERFORMING LOANS, BY TYPE:
Commercial and industrial$41,318  $49,491  $37,126  $47,260  $50,148  
Real estate - commercial mortgage36,538  37,279  45,710  43,850  29,817  
Real estate - residential mortgage25,832  22,411  20,150  21,659  22,299  
Consumer and home equity11,226  11,026  11,012  12,378  10,770  
Real estate - construction4,379  4,306  4,312  4,632  7,039  
Leasing20,645  16,642  17,666  17,937  18,608  
Total non-performing loans$139,938  $141,155  $135,976  $147,716  $138,681  
(1) The allowance for credit losses related to OBS Credit Exposures is presented in "other liabilities" on the consolidated balance sheets.




FULTON FINANCIAL CORPORATION
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
in thousands, except per share data and percentages
Explanatory note:This press release contains supplemental financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:
Three Months Ended
Mar 31Dec 31Sep 30Jun 30Mar 31
20202019201920192019
Shareholders' equity (tangible), per share
Shareholders' equity$2,285,748  $2,342,176  $2,324,016  $2,308,798  $2,301,019  
Less: Goodwill and intangible assets(535,171) (535,303) (534,178) (535,249) (535,356) 
Tangible shareholders' equity (numerator)$1,750,577  $1,806,873  $1,789,838  $1,773,549  $1,765,663  
Shares outstanding, end of period (denominator)161,435  164,218  164,036  166,903  169,923  
Shareholders' equity (tangible), per share$10.84  $11.00  $10.91  $10.63  $10.39  
Return on average shareholders' equity (tangible)
Net income$26,047  $47,789  $62,108  $59,779  $56,663  
Plus: Intangible amortization, net of tax104  112  846  85  85  
(Numerator)$26,151  $47,901  $62,954  $59,864  $56,748  
Average shareholders' equity$2,337,016  $2,341,397  $2,315,585  $2,301,258  $2,265,097  
Less: Average goodwill and intangible assets(535,235) (534,190) (535,184) (535,301) (531,767) 
Average tangible shareholders' equity (denominator)$1,801,781  $1,807,207  $1,780,401  $1,765,957  $1,733,330  
Return on average shareholders' equity (tangible), annualized5.84 %10.52 %14.03 %13.60 %13.28 %
Tangible Common Equity to Tangible Assets (TCE Ratio)
Shareholders' equity$2,285,748  $2,342,176  $2,324,016  $2,308,798  $2,301,019  
Less: Goodwill and intangible assets(535,171) (535,303) (534,178) (535,249) (535,356) 
Tangible shareholders' equity (numerator)$1,750,577  $1,806,873  $1,789,838  $1,773,549  $1,765,663  
Total assets$22,929,859  $21,886,040  $21,703,618  $21,308,670  $20,974,649  
Less: Goodwill and intangible assets(535,171) (535,303) (534,178) (535,249) (535,356) 
Total tangible assets (denominator)$22,394,688  $21,350,737  $21,169,440  $20,773,421  $20,439,293  
Tangible Common Equity to Tangible Assets7.82 %8.46 %8.45 %8.54 %8.64 %
Efficiency ratio
Non-interest expense$142,552  $138,974  $146,770  $144,168  $137,824  
Less: Intangible amortization(132) (142) (1,071) (107) (107) 
Less: Amortization of tax credit investments(1,450) (1,505) (1,533) (1,492) (1,491) 
Less: Loss on redemption of FHLB advances—  —  (4,326) —  —  
Non-interest expense (numerator)$140,970  $137,327  $139,840  $142,569  $136,226  
Net interest income (fully taxable equivalent)$163,970  $162,479  $164,517  $167,794  $166,564  
Plus: Total Non-interest income54,644  55,281  59,813  54,315  46,751  
Less: Investment securities gains(46) —  (4,492) (176) (65) 
Net interest income (denominator)$218,568  $217,760  $219,838  $221,933  $213,250  
Efficiency ratio64.5 %63.1 %63.6 %64.2 %63.9 %
Non-performing assets to tangible shareholders' equity and ACL - loans(1)
Non-performing assets (numerator)$146,531  $147,986  $143,682  $154,957  $147,693  
Tangible shareholders' equity$1,750,577  $1,806,873  1,789,838  1,773,549  $1,765,663  
Plus: ACL - loans238,508  163,620  166,135  170,233  162,109  
Tangible shareholders' equity and ACL - loans (denominator)$1,989,085  $1,970,493  $1,955,973  $1,943,782  $1,927,772  
Non-performing assets to tangible shareholders' equity and ACL - loans7.37 %7.51 %7.35 %7.97 %7.66 %


Pre-provision net revenue
Net interest income$160,746  $159,270  $161,260  $164,544  $163,315  
Non-interest income54,644  55,281  59,813  54,315  46,751  
Less: Investment securities gains(46) —  (4,492) (176) (65) 
Total revenue$215,344  $214,551  $216,581  $218,683  $210,001  
Non-interest expense$142,552  $138,974  $146,770  $144,168  $137,824  
Less: Loss on redemption of FHLB advances—  —  (4,326) —  —  
Less: Amortization of tax credit investments(1,450) (1,505) (1,533) (1,492) (1,491) 
Less: Intangible amortization(132) (142) (1,071) (107) (107) 
Total non-interest expense$140,970  $137,327  $139,840  $142,569  $136,226  
Pre-provision net revenue$74,374  $77,224  $76,741  $76,114  $73,775  
(1) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.


2020 FIRST QUARTER RESULTS NASDAQ: FULT Data as of March 31, 2020 unless otherwise noted

 
FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," “projects,” the negative of these terms and other comparable terminology. These forward looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results. Management’s 2020 Outlook contained herein is comprised of forward-looking statements. Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, they are based on current beliefs, expectations and assumptions regarding the future of the Corporation’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation’s control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation’s actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2019 which has been filed with the Securities and Exchange Commission and are or will be available in the Investor Relations section of the Corporation’s website (www.fult.com) and on the Securities and Exchange Commission’s website (www.sec.gov). The Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 will address risks and uncertainties associated with the COVID-19 pandemic. In addition, the COVID-19 pandemic is having an adverse impact on the Corporation, its customers and the communities it serves. The adverse effect of the COVID-19 pandemic on the Corporation, its customers and the communities where it operates may adversely affect the Corporation’s business, results of operations and financial condition for an indefinite period of time. The Corporation uses certain non-GAAP financial measures in this presentation. These non-GAAP financial measures are reconciled to the most comparable GAAP measures at the end of this presentation. 2

 
IT’S PERSONAL Some of the COVID-19 assistance programs being offered to our customers: CONSUMER COMMERCIAL • Temporary forbearance up to six • SBA Paycheck Protection Program (PPP) months on residential mortgage loans • Small Business Unsecured Line of Credit and closed-end consumer loans with introductory rate offer secured by real estate • For commercial online banking users, • Consumer loan payments deferral up we are offering mobile remote deposit to three months capture and ACH payment options • Overdraft/NSF fee waivers, and • Commercial loan payment deferral monthly maintenance service fee program waivers • Temporary suspension of late fees and adverse credit reporting • An early withdrawal penalty waiver for one Certificate of Deposit 3

 
COVID-19 IMPACT: COMMERCIAL & CONSUMER Commercial Portfolio Ending Commitments Balances P&I Deferrals %(1) ($s in MMs) ($s in MMs) C&I Portfolio $ 10,491 $ 6,885 13.5% CRE Portfolio 6,211 5,382 13.8% Commercial Portfolio $ 16,702 $ 12,266 13.6% Consumer Portfolio Ending Commitments Balances FICO LTV Forbearance %(1) ($s in MMs) ($s in MMs) (WAVG) (WAVG) Residential Mtg $ 2,676 $ 2,676 761 76 7.2% HELOC 2,761 1,288 764 72 0.2% Other Consumer 1,042 847 755 - 0.1% Consumer Portfolio $ 6,480 $ 4,811 761 75 4.1% (1) Percentages of total ending loan balances by each category as of April 17, 2020. 4

 
PAYCHECK PROTECTION PROGRAM (“PPP”) PPP Results as of April 20, 2020 • Over 500 Fulton team members re-deployed to help support this effort • Focus has been initially on existing Fulton customers • Results to date: o Applications confirmed: ~6,500 o Dollars confirmed: ~$1.7 billion o Average Fee: ~3.00% o Estimated job retention: ~80,000 • Fulton is considering various funding sources for PPP – has been approved to participate in PPP Loan Facility • Application processing efficiency has greatly improved, should additional funds be made available to the program 5

 
COVID-19 IMPACT ON BUSINESS SECTORS Limited exposure to some of the asset classes that were hit hardest initially from COVID-19, such as hotels, restaurants, energy and entertainment. Most of the loans are secured by real estate or other forms of collateral, which should help mitigate losses in the event of default. Loan Portfolio P&I Deferrals/ Commitments Balances Forbearances (1) ($s in M M s) ($s in M M s) Hotels & Restaurants (2) $ 495 $ 473 57.9% Energy (2) 179 93 10.1% Entertainment (2) 305 247 16.1% Other Loan Portfolios 22,203 16,264 8.5% $ 23,182 $ 17,077 10.9% (1) Percentages of total ending loan balances by each category as of April 17, 2020. (2) Fulton internal classifications 6

 
INCOME STATEMENT SUMMARY Change from 1Q20 4Q19 1Q19 (dollars in thousands, except per-share data) Net Interest Income $ 160,746 $ 1,476 $ (2,569) Provision for Credit Losses 44,030 23,500 38,930 Non-Interest Income 54,598 (683) 7,912 Securities Gains 46 46 (19) Non-Interest Expense 142,552 3,578 4,728 Income before Income Taxes 28,808 (26,239) (38,334) Income Taxes 2,761 (4,497) (7,718) Net Income $ 26,047 $ (21,742) $ (30,616) Net income per share (diluted) $ 0.16 $ (0.13) $ (0.17) ROA (1) 0.47% (0.40%) (0.64%) ROE (2) 4.48% (3.62%) (5.67%) ROE (tangible) (3) 5.84% (4.68%) (7.44%) Efficiency ratio (3) 64.5% 1.4% 0.6% (1) ROA is return an average assets determined by dividing net income for the period indicated by average assets, annualized. (2) ROE is return on average shareholders’ equity determined by dividing net income for the period indicated by average shareholders’ equity, annualized. (3) Non-GAAP financial measure. Please refer to the calculation and management’s reasons for using this measure on the slide titled “Non-GAAP Reconciliation” at the end of this presentation. 7

 
NET INTEREST INCOME AND MARGIN Net Interest Income & Net Interest Margin Average Interest-Earning Assets & Yields ($ IN MILLIONS) ($ IN BILLIONS) $20 5.00% $180.0 4.00% 4.00% $15 4.35% 4.37% 4.25% 4.07% 3.97% 3.00% $10 $17 3.75% $16 $16 $16 $17 2.00% $163 $165 $5 $161 $161 1.00% $159 $160.0 3.50% $3 $3 ~ $730$3 $3 $3 $0 0.00% million 1Q19 2Q19 3Q19 4Q19 1Q20 3.49% 3.44% 3.25% 3.31% Securities & Other Loans Earning Asset~ $610 Yield (FTE) million 3.22% 3.21% $140.0 3.00% Average Liabilities & Rates 2.75% ($ IN BILLIONS) $20 5.00% $2 $2 $120.0 2.50% $2 $2 $2 4.00% $15 $17 $17 $16 $16 $17 2.25% 3.00% $10 2.00% 1.29% 1.29% 1.21% 1.16% 1.02% $100.0 2.00% $5 1Q19 2Q19 3Q19 4Q19 1Q20 1.00% Net Interest Income $0 0.00% 1Q19 2Q19 3Q19 4Q19 1Q20 Net Interest Margin (Fully-taxable equivalent basis, or FTE) Deposits Borrowings Cost of Interest-bearing Liabilities 8

 
ADOPTION OF CECL(1) Three Months Ended March 31, 2020 (in thousands) Allowance for Credit Losses Rollforward (1) Balance at beginning of period, December 31, 2019 $ 166,208 Impact of adopting CECL 58,349 Loans charged-off (14,003) Recoveries of loans previously charged off 2,887 Net loans charged off (11,116) Provision for credit losses 44,030 Balance at end of period, March 31, 2020 $ 257,471 • CECL approach based on segment level models developed in coordination with Big 4 accounting firm and supplemented with overlays and general qualitative additions. • Base models leverage Moody’s baseline economic forecast which incorporates their most probable economic scenario associated with the COVID-19 pandemic. • Additional model overlays and qualitative adjustments were added to account for potential forecast imprecision and additional risk not accounted for in modeled results. (1) Effective January 1, 2020, Fulton adopted Accounting Standards Update 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” referred to as the current expected credit loss model (“CECL”). This accounting standard requires that credit losses for financial assets and off- balance-sheet ("OBS") credit exposures be measured based on expected credit losses, rather than on incurred credit losses as in prior periods. 9

 
ASSET QUALITY ($ IN MILLIONS) Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans $160.0 $147.7 2.00% $141.2 $50.0 $138.7 $136.0 $139.9 $44.0 $40.0 $120.0 1.50% $30.0 $80.0 1.00% $20.5 $20.0 0.90% 0.85% 0.81% 0.84% 0.82% $40.0 0.50% $10.0 $5.1 $5.0 $2.2 $0.0 0.00% $- 1Q19 2Q19 3Q19 4Q19 1Q20(1) 1Q19 2Q19 3Q19 4Q19 1Q20 NPL NPLs/Loans Net Charge-offs (NCOs) and NCOs to Average Loans ACL(1) to NPLs & Loans 180.0% 170% $40.0 1.00% 170.0% 1.75% 0.65% 160.0% $30.0 150.0% 0.26% 0.50% 0.15% $27.1 $20.0 140.0% -0.04% 130.0% 1.40% 1.25% $11.1 0.00% 115% 122% 0.10% 117% $10.0 $6.3 120.0% 116% $4.1 $(1.5) -0.50% 110.0% 1.00% 1.04% $- 1.00% 0.97% 1Q19 2Q19 3Q19 4Q19 1Q20 100.0% 0.75% 1Q19 2Q19 3Q19 4Q19 1Q20(2) $(10.0) -1.00% NCOs/(recoveries) NCOs/Average Loans (annualized) Allowance/NPLs Allowance/Loans (1) The allowance for credit losses (“ACL”) relates specifically to "Loans, net of unearned income" and does not include the ACL related to off-balance-sheet credit exposures. 10 (2) See slide 7 for note around CECL adoption.

 
NON-INTEREST INCOME(1) Three months ended March 31, 2020 (percent of total non-interest income) 1Q20 4Q19 Change 6% (in thousands) 11% n Wealth management $ 15,055 $ 14,419 $ 636 21% n Mortgage banking 6,234 5,076 1,158 n Consumer banking 11,239 12,429 (1,190) n Commercial banking 18,419 20,140 (1,721) 28% 34% n Other 3,651 ~ $730 3,217 434 $ 54,598 $ million 55,281 (683) ~ $610 million Non-interest income(1) decreased 1% from 4Q19 Three months ended December 31, 2019 (percent of total non-interest income) Increases in: n Brokerage and trust income 7% n Higher mortgage loan volumes, partial offset by $1.1 million in 9% 22% valuation allowance on MSRs. Decreases in: n Consumer card income n Capital markets, merchant income and commercial card income 36% 26% (1) Excluding investment securities gains 11

 
NON-INTEREST EXPENSES Three months ended March 31, 2020 (percent of total non-interest expense) 1Q20 4Q19 Change 20% (in thousands) n Salaries and benefits $ 80,228 $ 76,975 $ 3,253 n Occupancy 13,486 13,080 406 6% n Data Processing and software 11,645 11,468 177 56% n Other outside services 7,881 8,215 (334) 8% n Other 29,312 29,236 76 $ 142,552 $ 138,974 3,578 10% Three months ended December 31, 2019 (percent of total non-interest expense) Non-interest expense increased $4 million, or 3%: Driven by: 21% n Seasonal increases due to payroll taxes in the first quarter, incentive plan true-ups. Q1 2020 also includes severance compensation for branch closures targeted for Q2 2020. n Additional rent and depreciation expense for new properties 6% 55% 8% 10% 12

 
LIQUIDITY POSITION COMMENTARY AVAILABLE LIQUIDITY . Liquidity remains strong and diverse As of March 31, 2020 (in thousands) . Continue efforts to increase Cash On-Hand $272,501 capacity with the FHLB and Federal Federal Reserve Capacity 465,000 Reserve Outstanding Loans - . Sitting on excess cash reserves Total Available @ Federal Reserve 465,000 since mid-March FHLB Capacity 6,450,000 Advances (1,344,000) . Currently evaluating Federal Letters of Credit (1,762,000) Reserve facility for funding of PPP Total Available @ FHLB 3,344,000 loans Unencumbered Securities (1) 2,511,000 • Have applied and received Total Committed 6,320,000 approval (1) 5% haircut applied to market value of unencumbered securities . Additional liquidity is available through Federal funds lines and brokered deposits 13

 
CAPITAL POSITION COMMENTARY CAPITAL RATIOS(1) . Capital remains strong 13.8% 14.00% . Suspended share repurchases 12.00% $630 in Mid-March 10.00% 9.4% 9.4% $170 7.9% . Dividend elected to remain at 8.00% $450 $0.13 quarterly $650 6.00% . Internal stress analyses 4.00% indicate sufficient capital 2.00% currently Tier 1 Leverage Tier 1 Risk Based CE Tier 1 Total Risk-Based Regulatory Limits Excess(2) 1) Regulatory capital ratios as of March 31, 2020 are preliminary. 2) Excesses shown are to regulatory minimums, including the 250 basis point capital conservation buffer, except for Tier 1 Leverage which is the well-capitalized minimum. Dollars are in millions. 14

 
Q2 2020 OUTLOOK All previous guidance for 2020 has been withdrawn due to the impact from COVID-19. At this time, select guidance will be provided on the following areas as it relates to the second quarter of 2020: • Loans: Current approved PPP applications ~ $1.7 billion. Expect the PPP loan growth to be $1.2 - $1.4 billion. For other loan categories, expect growth on an annualized basis to be in the low single digits overall. • Deposits: Excluding the impact of PPP, modest run-off to slight growth • Net Interest Income: In the range of $150 - $160 million • Non-Interest Income: Decline 5% -15% from first quarter 2020 levels • Non-Interest Expense: In the range of $140 - $144 million • Effective Tax Rate: Between 11.5% - 12.5% 15

 
NON-GAAP RECONCILIATION Note: The Corporation has presented the following non-GAAP (Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 2019 2019 2019 2019 2020 Tangible Common Equity to Tangible Assets (TCE Ratio) (dollars in thousands) Shareholders' equity $ 2,301,019 $ 2,308,798 $ 2,324,016 $ 2,342,176 $ 2,285,748 Less: Goowdill and intangible assets (535,356) (535,249) (534,178) (535,303) (535,171) Tangible shareholders' equity (numerator) $ 1,765,663 $ 1,773,549 $ 1,789,838 $ 1,806,873 $ 1,750,577 Total assets $ 20,974,649 $ 21,308,670 $ 21,703,618 $ 21,886,040 $ 22,929,859 Less: Goowdill and intangible assets (535,356) (535,249) (534,178) (535,303) (535,171) Total tangible assets (denominator) $ 20,439,293 $ 20,773,421 $ 21,169,440 $ 21,350,737 $ 22,394,688 Tangible Common Equity to Tangible Assets 8.6% 8.5% 8.5% 8.5% 7.8% 16

 
NON-GAAP RECONCILIATION Three Months Ended Mar 31 Dec 31 Mar 31 2019 2019 2020 Efficiency ratio (dollars in thousands) Non-interest expense $ 137,824 $ 138,974 $ 142,552 Less: Intangible amortization (107) (142) (132) Less: Amortization of tax credit investments (1,491) (1,505) (1,450) Less: Loss on redemption of FHLB advances - - - Non-interest expense (numerator) $ 136,226 $ 137,327 $ 140,970 Net interest income (fully taxable-equivalent) $ 166,564 $ 162,479 $ 163,970 Plus: Total Non-interest income 46,751 55,281 54,644 Less: Investment securities gains (65) - (46) Net interest income (denominator) $ 213,250 $ 217,760 $ 218,568 Efficiency ratio 63.9% 63.1% 64.5% Three Months Ended Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 2019 2019 2019 2019 2020 (dollars in thousands) Return on Average Shareholders' Equity (ROE) (Tangible) Net income $ 56,663 $ 59,779 $ 62,108 $ 47,789 $ 26,047 Plus: Intangible amortization, net of tax 85 85 846 112 104 Net income (numerator) $ 56,748 $ 59,864 $ 62,954 $ 47,901 $ 26,151 Average shareholders' equity $ 2,265,097 $ 2,301,258 $ 2,315,585 $ 2,341,397 $ 2,337,016 Less: Average goodwill and intangible assets (531,767) (535,301) (535,184) (534,190) (535,235) Average tangible shareholders' equity (denominator) $ 1,733,330 $ 1,765,957 $ 1,780,401 $ 1,807,207 $ 1,801,781 Return on average shareholders' equity (tangible), annualized 13.28% 13.60% 14.03% 10.52% 5.84% 17