Fulton Financial Corporation Announces 2025 Fourth Quarter and Full-Year Results

, /PRNewswire/ -- Fulton Financial Corporation (NASDAQ: FULT) ("Fulton" or the "Corporation") reported net income available to common shareholders of $96.4 million, or $0.53 per diluted share, for the fourth quarter of 2025, a decrease of $1.5 million in comparison to the third quarter of 2025. Operating net income available to common shareholders for the three months ended December 31, 2025 was $99.4 million(1), or $0.55 per diluted share(1), a decrease of $1.9 million in comparison to the third quarter of 2025. Net income available to common shareholders for the year ended December 31, 2025 was $381.4 million, or $2.08 per diluted share, an increase of $102.9 million, or $0.51 per diluted share, in comparison to the year ended December 31, 2024. Operating net income available to common shareholders for the year ended December 31, 2025, was $396.8 million(1), or $2.16 per diluted share(1), an increase of $68.7 million, or $0.31 per diluted share, in comparison to the year ended December 31, 2024. "The strength of our strategy and the dedication of our team combined to generate a 17% increase in our operating diluted earnings per share," said Curtis J. Myers, Fulton Chairman, CEO and President. "In 2025, we delivered value to customers, expanded our team and customer base, and generated solid financial performance." Financial Highlights Fourth quarter of 2025 operating results of $0.55 per diluted share(1) were impacted by the following items: Solid net interest margin of 3.59%, with a 13 basis point decrease in total cost of funds compared to the prior quarter.Non-interest income decreased $0.4 million to $70.0 million compared to $70.4 million in the prior quarter.Non-interest expense increased $16.4 million to $213.0 million compared to $196.6 million in the prior quarter. Operating non-interest expense increased $12.7 million to $204.1 million(1) compared to $191.4 million in the prior quarter.Provision for credit losses was $2.9 million resulting in an allowance for credit losses attributable to net loans of $364.5 million, or 1.51% of total net loans as of December 31, 2025.Common equity tier 1 capital ratio(2) increased to approximately 11.8% compared to 11.6% in the prior quarter.During the fourth quarter of 2025, 1,082,678 shares of the Corporation's common stock were repurchased under the 2025 Repurchase Program(3) at a cost of $19.9 million or an average of $18.34 per share. The Corporation repurchased $59.0 million of common stock under the 2025 Repurchase Program as of December 31, 2025.On December 16, 2025, the Corporation announced that its Board of Directors approved the 2026 Repurchase Program(4). Under the 2026 Repurchase Program, the Corporation is authorized to repurchase up to $150 million of shares of its common stock and certain other securities. The following items highlight notable changes in the components of net income in the fourth quarter of 2025 compared to the third quarter of 2025: Net interest income totaled $266.0 million, an increase of $1.8 million. A $5.9 million decrease in interest expense on deposits, a $3.6 million decrease in interest expense on other borrowings and other interest-bearing liabilities and a $1.3 million increase in interest income on other interest-earning assets were partially offset by decreases of $6.4 million in interest income on net loans and $2.4 million in interest income on investments securities. Purchase loan mark accretion from loans acquired in the Acquisition(5) was $10.5 million in the fourth quarter of 2025 compared to $12.7 million in the prior quarter.Non-interest income before investment securities gains (losses) was $70.0 million compared to $70.4 million in the prior quarter. The $0.4 million decrease was primarily due to a decrease of $1.7 million in income from equity method investments and a $1.1 million gain on sale of commercial loans in the prior quarter, both reflected in other non-interest income, which were partially offset by increases of $1.2 million in wealth management revenues, $0.9 million in commercial customer derivative fee income, reflected in capital markets income, and $0.6 million in small business administration income, reflected in other commercial banking income.Non-interest expense was $213.0 million compared to $196.6 million in the prior quarter. The $16.4 million increase in non-interest expense was primarily due to a $10.4 million increase in salaries and employee benefits expense largely due to increases of $7.5 million in incentive compensation expense, $1.0 million in employee healthcare expense and $0.6 million in employee severance expense. Additionally, increases of $1.6 million in net occupancy expense largely due to snow removal and maintenance costs, and $1.2 million in data processing and software expense contributed to the increase in non-interest expense. Balance Sheet Summary Total net loans totaled $24.1 billion, an increase of $103.4 million, compared to $24.0 billion as of September 30, 2025. The increase was largely due to increases of $73.4 million in consumer loans(6) and $30.0 million in commercial loans.(6) Deposits totaled $26.6 billion, an increase of $256.9 million, compared to $26.3 billion as of September 30, 2025. The increase was primarily due to increases of $145.4 million in brokered deposits, $119.9 million in noninterest-bearing demand deposits and $95.2 million in savings deposits, partially offset by decreases of $65.2 million in interest-bearing demand deposits and $38.3 million in time deposits. Provision for Credit Losses and Asset Quality The provision for credit losses was $2.9 million in the fourth quarter of 2025, resulting in a $364.5 million allowance for credit losses attributable to net loans, or 1.51% of total net loans as of December 31, 2025, compared to $376.3 million, or 1.57% of total net loans as of September 30, 2025.Non-performing assets were $185.2 million, or 0.58% of total assets, as of December 31, 2025, in comparison to $201.0 million, or 0.63% of total assets, as of September 30, 2025.Annualized net charge-offs for the fourth quarter of 2025 were 0.24% of total average loans in comparison to 0.18% 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 December 31, 2025, are preliminary estimates and prior periods are actual. (3) The 2025 Repurchase Program represented the authorization, commencing on January 1, 2025 and expiring on December 31, 2025, to repurchase up to $125 million of the Corporation's common stock. Under this authorization, up to $25 million of the $125 million authorization could be used to repurchase the Corporation's preferred stock and outstanding subordinated notes due 2030. As permitted by securities laws and other legal requirements and subject to market conditions and other factors, purchases were made from time to time under the 2025 Repurchase Program in open market or privately negotiated transactions, including without limitation, through accelerated share repurchase transactions. (4) The 2026 Repurchase Program represents the authorization, commencing on January 1, 2026 and expiring on January 31, 2027, to repurchase up to $150 million, excluding fees, commissions, excise tax and other ancillary expenses, of the Corporation's common stock. Under this authorization, up to $25 million of the $150 million authorization may be used to repurchase the Corporation's preferred stock, outstanding subordinated notes due 2030 or outstanding subordinated notes due 2035. As permitted by securities laws and other legal requirements and subject to market conditions and other factors, purchases may be made from time to time under the 2026 Repurchase Program in open market or privately negotiated transactions, including without limitation, through accelerated share repurchase transactions. The 2026 Repurchase Program may be discontinued at any time. (5) 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. (6) Commercial loans include real estate - commercial mortgage, commercial and industrial, leases and other loans and includes a decrease in commercial construction loans of $158.4 million, reflected in real estate - construction. Consumer loans include real estate - residential mortgage, real estate - home equity, consumer and includes a decrease of $6.1 million in residential construction loans, reflected in real estate - construction. Note: Some numbers contained in this document may not sum due to rounding. 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, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025, September 30, 2025 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), including, without limitation, the Cautionary Note Regarding Forward-Looking Statements set forth in the Current Report on Form 8-K filed by the Corporation on November 25, 2025. 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 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2025 2025 2025 2025 2024 Ending Balances Investment securities(1) $ 4,833,744 $ 5,045,270 $ 5,093,027 $ 5,071,323 $ 4,806,468 Net loans 24,144,884 24,041,489 24,012,539 23,862,574 24,044,919 Total assets 32,118,400 31,995,086 32,040,448 32,132,028 32,071,810 Deposits 26,589,407 26,332,490 26,138,067 26,328,972 26,129,433 Shareholders' equity 3,490,447 3,413,598 3,329,246 3,274,321 3,197,325 Average Balances Investment securities(1) 4,921,669 5,025,072 5,084,371 4,906,952 4,771,537 Net loans 24,053,089 24,020,322 23,899,743 24,006,863 24,068,784 Total assets 32,013,163 31,924,038 31,901,574 31,971,601 32,098,852 Deposits 26,537,659 26,298,680 26,125,602 26,169,883 26,313,378 Shareholders' equity 3,464,539 3,361,368 3,304,015 3,254,125 3,219,026 Income Statement Net interest income 266,042 264,198 254,921 251,187 253,659 Provision for credit losses 2,948 10,245 8,607 13,898 16,725 Non-interest income 69,980 70,407 69,148 67,232 65,924 Non-interest expense 212,986 196,574 192,811 189,460 216,615 Income before taxes 120,088 127,786 122,651 115,061 86,243 Net income available to common shareholders 96,408 97,892 96,636 90,425 66,058 Per Share Net income available to common shareholders (basic) $0.53 $0.54 $0.53 $0.50 $0.36 Net income available to common shareholders (diluted) $0.53 $0.53 $0.53 $0.49 $0.36 Operating net income available to common shareholders(2) $0.55 $0.55 $0.55 $0.52 $0.48 Cash dividends $0.19 $0.18 $0.18 $0.18 $0.18 Common shareholders' equity $18.33 $17.81 $17.20 $16.91 $16.50 Common shareholders' equity (tangible)(2) $14.92 $14.39 $13.78 $13.46 $13.01 Weighted average shares (basic) 180,405 181,658 182,261 182,179 182,032 Weighted average shares (diluted) 182,197 183,349 183,813 184,077 183,867 (1) Includes 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. Three months ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2025 2025 2025 2025 2024 Asset Quality Net charge-offs to average loans (annualized) 0.24 % 0.18 % 0.20 % 0.21 % 0.22 % Non-performing loans to total net loans 0.76 % 0.83 % 0.89 % 0.82 % 0.92 % Non-performing assets to total assets 0.58 % 0.63 % 0.67 % 0.62 % 0.69 % ACL - loans(1) to total loans 1.51 % 1.57 % 1.57 % 1.59 % 1.58 % ACL - loans(1) to non-performing loans 198 % 189 % 177 % 193 % 172 % Profitability Return on average assets 1.23 % 1.25 % 1.25 % 1.18 % 0.85 % Operating return on average assets(2) 1.27 % 1.29 % 1.30 % 1.25 % 1.14 % Return on average common shareholders' equity 11.69 % 12.26 % 12.46 % 11.98 % 8.68 % Operating return on average common shareholders' equity (tangible)(2) 14.86 % 15.79 % 16.26 % 15.95 % 14.83 % Net interest margin 3.59 % 3.57 % 3.47 % 3.43 % 3.41 % Efficiency ratio(2) 60.0 % 56.5 % 57.1 % 56.7 % 58.4 % Non-interest expense to total average assets 2.64 % 2.44 % 2.42 % 2.40 % 2.68 % Operating non-interest expense to total average assets(2) 2.53 % 2.38 % 2.36 % 2.32 % 2.36 % Capital Ratios(3) Tangible common equity ratio ("TCE")(2) 8.5 % 8.3 % 8.0 % 7.8 % 7.5 % Tier 1 leverage ratio 9.7 % 9.6 % 9.4 % 9.2 % 9.0 % Common equity Tier 1 capital ratio 11.8 % 11.6 % 11.3 % 11.1 % 10.8 % Tier 1 risk-based capital ratio 12.6 % 12.4 % 12.1 % 11.9 % 11.5 % Total risk-based capital ratio 15.2 % 15.0 % 14.7 % 14.5 % 14.3 % (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 ("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 December 31, 2025 are preliminary estimates and prior periods are actual. FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) (dollars in thousands) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2025 2025 2025 2025 2024 ASSETS Cash and due from banks $ 271,463 $ 307,267 $ 362,280 $ 388,503 $ 279,041 Other interest-earning assets 911,155 643,111 583,899 778,117 924,404 Loans held for sale 16,316 19,875 23,281 15,965 25,618 Investment securities 4,833,744 5,045,270 5,093,027 5,071,323 4,806,468 Net loans 24,144,884 24,041,489 24,012,539 23,862,574 24,044,919 Less: ACL - loans(1) (364,462) (376,258) (377,337) (379,677) (379,156) Loans, net 23,780,422 23,665,231 23,635,202 23,482,897 23,665,763 Net premises and equipment 175,240 178,644 184,290 186,873 195,527 Accrued interest receivable 113,698 114,003 117,130 116,215 117,029 Goodwill and intangible assets 612,996 618,361 623,729 629,189 635,458 Other assets 1,403,366 1,403,324 1,417,610 1,462,946 1,422,502 Total Assets $ 32,118,400 $ 31,995,086 $ 32,040,448 $ 32,132,028 $ 32,071,810 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits $ 26,589,407 $ 26,332,490 $ 26,138,067 $ 26,328,972 $ 26,129,433 Borrowings 1,297,375 1,471,961 1,773,900 1,657,200 1,782,048 Other liabilities 741,171 777,037 799,235 871,535 963,004 Total Liabilities 28,627,953 28,581,488 28,711,202 28,857,707 28,874,485 Shareholders' equity 3,490,447 3,413,598 3,329,246 3,274,321 3,197,325 Total Liabilities and Shareholders' Equity $ 32,118,400 $ 31,995,086 $ 32,040,448 $ 32,132,028 $ 32,071,810 LOANS, DEPOSITS AND BORROWINGS DETAIL: Loans, by type: Real estate - commercial mortgage $ 9,820,944 $ 9,734,156 $ 9,678,038 $ 9,676,517 $ 9,601,858 Commercial and industrial 4,539,060 4,437,905 4,541,765 4,531,266 4,605,589 Real estate - residential mortgage 6,669,993 6,617,017 6,511,687 6,409,657 6,349,643 Real estate - home equity 1,242,831 1,214,399 1,193,410 1,170,470 1,160,616 Real estate - construction 970,298 1,134,748 1,155,099 1,175,445 1,394,899 Consumer 564,349 566,291 583,949 597,305 616,856 Leases and other loans(2) 337,409 336,973 348,591 301,914 315,458 Total Net Loans $ 24,144,884 $ 24,041,489 $ 24,012,539 $ 23,862,574 $ 24,044,919 Deposits, by type: Noninterest-bearing demand $ 5,256,096 $ 5,136,210 $ 5,337,771 $ 5,435,934 $ 5,499,760 Interest-bearing demand 7,970,188 8,035,393 7,593,083 7,804,388 7,843,604 Savings 8,512,829 8,417,678 8,271,925 8,208,526 7,792,114 Total demand and savings 21,739,113 21,589,281 21,202,779 21,448,848 21,135,478 Brokered 855,042 709,667 817,398 738,458 843,857 Time 3,995,252 4,033,542 4,117,890 4,141,666 4,150,098 Total Deposits $ 26,589,407 $ 26,332,490 $ 26,138,067 $ 26,328,972 $ 26,129,433 Borrowings, by type: Federal Home Loan Bank advances $ 250,000 $ 450,000 $ 800,000 $ 750,000 $ 850,000 Senior debt and subordinated debt 367,637 367,557 367,476 367,396 367,316 Other borrowings 679,738 654,404 606,424 539,804 564,732 Total Borrowings $ 1,297,375 $ 1,471,961 $ 1,773,900 $ 1,657,200 $ 1,782,048 (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 Year ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 2025 2025 2025 2025 2024 2025 2024 Net Interest Income: Interest income $ 403,416 $ 411,006 $ 402,761 $ 399,692 $ 414,368 $ 1,616,874 $ 1,582,196 Interest expense 137,374 146,808 147,840 148,505 160,709 580,527 621,871 Net Interest Income 266,042 264,198 254,921 251,187 253,659 1,036,347 960,325 Provision for credit losses 2,948 10,245 8,607 13,898 16,725 35,698 71,636 Net Interest Income after Provision 263,094 253,953 246,314 237,289 236,934 1,000,649 888,689 Non-Interest Income: Wealth management 23,879 22,639 22,281 21,785 22,002 90,584 84,743 Commercial banking: Merchant and card 6,847 7,327 7,376 6,591 7,082 28,141 29,186 Cash management 8,374 8,335 8,376 7,799 7,633 32,884 28,106 Capital markets 3,730 2,908 2,945 2,411 2,797 11,995 11,033 Other commercial banking 5,162 4,595 4,734 4,528 4,942 19,018 16,657 Total commercial banking 24,113 23,165 23,431 21,329 22,454 92,038 84,982 Consumer banking: Card 8,366 8,246 7,958 7,544 8,064 32,114 30,914 Overdraft 4,109 4,153 3,817 3,295 3,644 15,373 13,764 Other consumer banking 2,967 2,775 2,753 2,229 2,601 10,725 10,826 Total consumer banking 15,442 15,174 14,528 13,068 14,309 58,212 55,504 Mortgage banking 3,636 3,711 3,991 3,138 3,759 14,477 13,943 Gain on acquisition, net of tax — — — — (2,689) — 36,996 Other 2,910 5,718 4,917 7,914 6,089 21,457 19,846 Non-interest income before investment securities (losses) gains 69,980 70,407 69,148 67,234 65,924 276,768 296,014 Investment securities (losses) gains, net — — — (2) — (2) (20,283) Total Non-Interest Income 69,980 70,407 69,148 67,232 65,924 276,766 275,731 Non-Interest Expense: Salaries and employee benefits 121,632 111,265 107,123 103,526 107,886 443,546 432,821 Data processing and software 19,695 18,535 18,262 18,599 19,550 75,091 77,882 Net occupancy 17,554 15,954 16,410 18,207 16,417 68,125 69,359 Other outside services 13,105 12,951 12,009 11,837 14,531 49,902 60,586 Intangible amortization 5,365 5,368 5,460 6,269 6,282 22,462 17,830 FDIC insurance 4,540 5,089 4,951 5,597 5,921 20,178 23,829 Equipment 4,001 3,926 4,100 4,150 4,388 16,176 17,850 Professional fees 2,088 2,320 2,163 (1,078) 3,387 5,493 10,857 Marketing 1,694 2,470 2,604 2,521 2,695 9,288 8,958 Acquisition-related expenses 802 — — 380 9,637 1,182 37,635 Other 22,510 18,696 19,729 19,452 25,921 80,386 62,184 Total Non-Interest Expense 212,986 196,574 192,811 189,460 216,615 791,829 819,791 Income Before Income Taxes 120,088 127,786 122,651 115,061 86,243 485,586 344,629 Income tax expense 21,118 27,332 23,453 22,074 17,623 93,977 55,886 Net Income 98,970 100,454 99,198 92,987 68,620 391,609 288,743 Preferred stock dividends (2,562) (2,562) (2,562) (2,562) (2,562) (10,248) (10,248) Net Income Available to Common Shareholders $ 96,408 $ 97,892 $ 96,636 $ 90,425 $ 66,058 $ 381,361 $ 278,495 Three months ended Year ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 2025 2025 2025 2025 2024 2025 2024 PER SHARE: Net income available to common shareholders (basic) $0.53 $0.54 $0.53 $0.50 $0.36 $2.10 $1.59 Net income available to common shareholders (diluted) $0.53 $0.53 $0.53 $0.49 $0.36 $2.08 $1.57 Cash dividends $0.19 $0.18 $0.18 $0.18 $0.18 $0.73 $0.69 Weighted average shares (basic) 180,405 181,658 182,261 182,179 182,032 181,621 175,523 Weighted average shares (diluted) 182,197 183,349 183,813 184,077 183,867 183,289 177,223 FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) (dollars in thousands) Three months ended December 31, 2025 September 30, 2025 December 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) $ 24,053,089 $ 352,014 5.82 % $ 24,020,322 $ 358,443 5.93 % $ 24,068,784 $ 360,642 5.97 % Investment securities(3) 5,159,396 47,007 3.64 % 5,330,905 49,442 3.70 % 5,033,765 44,616 3.54 % Other interest-earning assets 820,025 8,811 4.27 % 622,832 7,557 4.83 % 1,086,536 13,453 4.93 % Total Interest-Earning Assets 30,032,510 407,832 5.40 % 29,974,059 415,442 5.51 % 30,189,085 418,711 5.53 % Noninterest-earning assets: Cash and due from banks 284,768 312,578 288,867 Premises and equipment 178,194 181,116 183,801 Other assets 1,898,152 1,837,179 1,816,421 Less: ACL - loans(4) (380,461) (380,894) (379,322) Total Assets $ 32,013,163 $ 31,924,038 $ 32,098,852 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing liabilities: Demand deposits $ 7,984,980 $ 33,831 1.68 % $ 7,876,227 $ 36,369 1.83 % $ 7,838,590 $ 37,952 1.93 % Savings deposits 8,519,075 47,219 2.20 % 8,391,379 48,237 2.28 % 7,806,303 47,280 2.41 % Brokered deposits 803,755 8,325 4.11 % 694,486 7,689 4.39 % 877,526 10,619 4.81 % Time deposits 3,986,459 34,996 3.48 % 4,097,195 37,942 3.67 % 4,232,849 46,023 4.33 % Total Interest-Bearing Deposits 21,294,269 124,371 2.32 % 21,059,287 130,237 2.45 % 20,755,268 141,874 2.72 % Borrowings and other interest-bearing liabilities 1,345,837 13,003 3.83 % 1,564,996 16,571 4.20 % 1,847,431 18,835 4.06 % Total Interest-Bearing Liabilities 22,640,106 137,374 2.41 % 22,624,283 146,808 2.57 % 22,602,699 160,709 2.83 % Noninterest-bearing liabilities: Demand deposits 5,243,390 5,239,393 5,558,110 Other liabilities 665,128 698,994 719,017 Total Liabilities 28,548,624 28,562,670 28,879,826 Total Deposits 26,537,659 1.86 % 26,298,680 1.96 % 26,313,378 2.14 % Total interest-bearing liabilities and non-interest bearing deposits (cost of funds) 27,883,496 1.96 % 27,863,676 2.09 % 28,160,809 2.27 % Shareholders' equity 3,464,539 3,361,368 3,219,026 Total Liabilities and Shareholders' Equity $ 32,013,163 $ 31,924,038 $ 32,098,852 Net interest income/net interest margin (fully taxable equivalent) 270,458 3.59 % 268,634 3.57 % 258,002 3.41 % Tax equivalent adjustment (4,416) (4,436) (4,343) Net Interest Income $ 266,042 $ 264,198 $ 253,659 (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. (2) Average balances include non-performing loans. (3) Average balances include amortized historical cost for AFS 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 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2025 2025 2025 2025 2024 Loans, by type: Real estate - commercial mortgage $ 9,785,717 $ 9,721,395 $ 9,652,320 $ 9,655,283 $ 9,595,996 Commercial and industrial 4,473,522 4,494,662 4,530,085 4,608,401 4,730,101 Real estate - residential mortgage 6,646,318 6,560,413 6,448,443 6,367,978 6,319,205 Real estate - home equity 1,223,293 1,191,465 1,179,109 1,160,713 1,116,665 Real estate - construction 1,014,343 1,125,130 1,172,138 1,296,090 1,312,245 Consumer 577,136 590,658 599,505 615,741 665,261 Leases and other loans(1) 332,760 336,599 318,142 302,657 329,311 Total Net Loans $ 24,053,089 $ 24,020,322 $ 23,899,742 $ 24,006,863 $ 24,068,784 Deposits, by type: Noninterest-bearing demand $ 5,243,390 $ 5,239,393 $ 5,303,997 $ 5,412,063 $ 5,558,110 Interest-bearing demand 7,984,980 7,876,227 7,800,881 7,753,586 7,838,590 Savings 8,519,075 8,391,379 8,219,637 7,971,728 7,806,303 Total demand and savings 21,747,445 21,506,999 21,324,515 21,137,377 21,203,003 Brokered 803,755 694,486 688,957 904,722 877,526 Time 3,986,459 4,097,195 4,112,130 4,127,784 4,232,849 Total Deposits $ 26,537,659 $ 26,298,680 $ 26,125,602 $ 26,169,883 $ 26,313,378 Borrowings, by type: Federal funds purchased $ 54 $ — $ 1,099 $ — $ 54 Federal Home Loan Bank advances 237,880 484,022 712,198 709,367 727,957 Senior debt and subordinated debt 367,598 367,517 367,438 367,357 449,795 Other borrowings and other interest-bearing liabilities 740,305 713,456 675,511 678,176 669,625 Total Borrowings $ 1,345,837 $ 1,564,995 $ 1,756,246 $ 1,754,900 $ 1,847,431 (1) Includes equipment lease financing, overdraft and net origination fees and costs. FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) (dollars in thousands) Year ended December 31, 2025 2024 Average Yield/ Average Yield/ Balance Interest(1) Rate Balance Interest(1) Rate ASSETS Interest-earning assets: Net loans(2) $ 23,995,200 $ 1,407,669 5.87 % $ 23,145,114 $ 1,406,216 6.08 % Investment securities(3) 5,270,122 193,154 3.66 % 4,486,726 143,317 3.19 % Other interest-earning assets 729,300 33,731 4.63 % 962,971 50,578 5.25 % Total Interest-Earning Assets 29,994,622 1,634,554 5.45 % 28,594,811 1,600,111 5.60 % Noninterest-Earning assets: Cash and due from banks 294,284 295,156 Premises and equipment 184,342 197,823 Other assets 1,862,326 1,761,083 Less: ACL - loans(4) (382,941) (375,743) Total Assets $ 31,952,633 $ 30,473,130 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-Bearing liabilities: Demand deposits $ 7,854,613 $ 139,134 1.77 % $ 7,049,915 $ 128,969 1.83 % Savings deposits 8,277,276 188,019 2.27 % 7,364,106 180,455 2.45 % Brokered deposits 772,488 33,547 4.34 % 981,060 51,691 5.27 % Time deposits 4,080,550 153,993 3.77 % 3,747,029 160,744 4.29 % Total Interest-Bearing Deposits 20,984,927 514,693 2.45 % 19,142,110 521,859 2.73 % Borrowings and other interest-bearing liabilities 1,604,263 65,834 4.10 % 2,280,382 100,012 4.39 % Total Interest-Bearing Liabilities 22,589,190 580,527 2.57 % 21,422,492 621,871 2.90 % Noninterest-Bearing liabilities: Demand deposits 5,299,084 5,394,518 Other liabilities 717,729 630,478 Total Liabilities 28,606,003 27,447,488 Total Deposits 26,284,011 1.96 % 24,536,628 2.13 % Total interest-bearing liabilities and non-interest bearing deposits (cost of funds) 27,888,274 2.08 % 26,817,010 2.32 % Shareholders' equity 3,346,630 3,025,642 Total Liabilities and Shareholders' Equity $ 31,952,633 $ 30,473,130 Net interest income/net interest margin (fully taxable equivalent) 1,054,027 3.51 % 978,240 3.42 % Tax equivalent adjustment (17,680) (17,915) Net Interest Income $ 1,036,347 $ 960,325 (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. (2) Average balances include non-performing loans. (3) Average balances include amortized historical cost for AFS; the related unrealized holding gains (losses) are included in other assets. (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) Year ended December 31, 2025 2024 Loans, by type: Real estate - commercial mortgage $ 9,704,084 $ 9,052,738 Commercial and industrial 4,526,210 4,779,254 Real estate - residential mortgage 6,506,700 5,925,708 Real estate - home equity 1,188,824 1,060,520 Real estate - construction 1,151,081 1,275,562 Consumer 595,640 725,308 Leases and other loans(1) 322,661 326,024 Total Net Loans $ 23,995,200 $ 23,145,114 Deposits, by type: Noninterest-bearing demand $ 5,299,084 $ 5,394,518 Interest-bearing demand 7,854,613 7,049,915 Savings 8,277,276 7,364,106 Total demand and savings 21,430,973 19,808,539 Brokered 772,488 981,060 Time 4,080,550 3,747,029 Total Deposits $ 26,284,011 $ 24,536,628 Borrowings, by type: Federal funds purchased $ 288 $ 51,306 Federal Home Loan Bank advances 534,433 804,328 Senior debt and subordinated debt 367,478 514,073 Other borrowings and other interest-bearing liabilities 702,064 910,675 Total Borrowings $ 1,604,263 $ 2,280,382 (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 Year ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 Dec 31 2025 2025 2025 2025 2024 2025 2024 Allowance for credit losses related to net loans: Balance at beginning of period $ 376,258 $ 377,337 $ 379,677 $ 379,156 $ 375,961 $ 379,156 $ 293,404 CECL day 1 provision expense(1) — — — — — — 23,444 Initial purchased credit deteriorated allowance for credit losses — — — — (136) — 54,631 Loans charged off: Real estate - commercial mortgage (14,104) (3,906) (6,402) (12,106) (2,844) (36,518) (13,186) Commercial and industrial (5,295) (5,847) (5,780) (3,865) (9,480) (20,787) (26,585) Real estate - residential mortgage (58) (394) (258) (343) (55) (1,053) (1,472) Consumer and home equity (2,212) (2,527) (1,885) (2,193) (2,179) (8,817) (8,490) Real estate - construction — (5,286) (100) — — (5,386) — Leases and other loans(2) (1,140) (1,479) (1,491) (1,527) (1,768) (5,637) (4,696) Total loans charged off (22,809) (19,439) (15,916) (20,034) (16,326) (78,198) (54,429) Recoveries of loans previously charged off: Real estate - commercial mortgage 633 4,307 133 374 199 5,447 603 Commercial and industrial 6,592 3,205 2,628 5,952 1,387 18,377 4,440 Real estate - residential mortgage 230 33 203 174 104 640 472 Consumer and home equity 861 726 899 660 974 3,146 3,357 Real estate - construction — 47 99 82 47 227 382 Leases and other loans(2) 146 192 240 201 194 780 730 Total recoveries of loans previously charged off 8,462 8,510 4,202 7,443 2,905 28,617 9,984 Net loans charged off (14,347) (10,929) (11,714) (12,591) (13,421) (49,581) (44,445) Provision for credit losses(1) 2,551 9,850 9,374 13,112 16,752 34,887 52,122 Balance at end of period $ 364,462 $ 376,258 $ 377,337 $ 379,677 $ 379,156 $ 364,462 $ 379,156 Net charge-offs to average loans(3) 0.24 % 0.18 % 0.20 % 0.21 % 0.22 % 0.21 % 0.19 % Provision for credit losses related to OBS Credit Exposures Provision for credit losses(1) $ 397 $ 395 $ (767) $ 786 $ (27) $ 811 $ (3,930) NON-PERFORMING ASSETS: Non-accrual loans $ 153,872 $ 150,137 $ 182,942 $ 162,426 $ 189,293 Loans 90 days past due and accruing 29,924 48,597 29,949 34,367 30,781 Total non-performing loans 183,796 198,734 212,891 196,793 220,074 Other real estate owned 1,365 2,305 2,706 2,193 2,621 Total non-performing assets $ 185,161 $ 201,039 $ 215,597 $ 198,986 $ 222,695 NON-PERFORMING LOANS, BY TYPE: Commercial and industrial $ 47,756 $ 48,817 $ 45,565 $ 42,913 $ 43,677 Real estate - commercial mortgage 74,981 87,789 90,852 88,081 102,359 Real estate - residential mortgage 45,569 44,689 37,703 46,878 45,901 Consumer and home equity 11,875 12,658 11,109 12,682 14,374 Real estate - construction 2,267 3,461 25,602 3,666 1,746 Leases and other loans(2) 1,348 1,320 2,060 2,573 12,017 Total non-performing loans $ 183,796 $ 198,734 $ 212,891 $ 196,793 $ 220,074 (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 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2025 2025 2025 2025 2024 Operating net income available to common shareholders Net income available to common shareholders $ 96,408 $ 97,892 $ 96,636 $ 90,425 $ 66,058 Less: Other(1)  (4,989) (738) (9) (122) (269) Plus: Gain on acquisition, net of tax — — — 2,689 Plus: Core deposit intangible amortization 5,255 5,255 5,346 6,155 6,155 Plus: Acquisition-related expense 802 — — 380 9,637 Plus: FDIC special assessment (95) — — — — Plus: FultonFirst implementation and asset disposals 2,795 (207) (270) (47) 10,001 Less: Tax impact of adjustments (791) (905) (1,064) (1,337) (5,360) Operating net income available to common shareholders (numerator) $ 99,385 $ 101,297 $ 100,639 $ 95,454 $ 88,911 Weighted average shares (diluted) (denominator) 182,197 183,349 183,813 184,077 183,867 Operating net income available to common shareholders, per share (diluted) $ 0.55 $ 0.55 $ 0.55 $ 0.52 $ 0.48 Common shareholders' equity (tangible), per share Shareholders' equity $ 3,490,447 $ 3,413,598 $ 3,329,246 $ 3,274,321 $ 3,197,325 Less: Preferred stock (192,878) (192,878) (192,878) (192,878) (192,878) Less: Goodwill and intangible assets (612,996) (618,361) (623,729) (629,189) (635,458) Tangible common shareholders' equity (numerator) $ 2,684,573 $ 2,602,359 $ 2,512,639 $ 2,452,254 $ 2,368,989 Shares outstanding, end of period (denominator) 179,895 180,865 182,379 182,204 182,089 Common shareholders' equity (tangible), per share $ 14.92 $ 14.39 $ 13.78 $ 13.46 $ 13.01 (1) Includes loan recovery adjustments of $5.0 million and $0.6 million in the fourth quarter of 2025 and the third quarter of 2025, respectively, reflected in the provision for credit losses related to a loan acquired in the Acquisition. Three months ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2025 2025 2025 2025 2024 Operating return on average assets Net income $ 98,970 $ 100,454 $ 99,198 $ 92,987 $ 68,620 Less: Other (1) (4,989) (738) (9) (122) (269) Less: Gain on acquisition, net of tax — — — — 2,689 Plus: Core deposit intangible amortization 5,255 5,255 5,346 6,155 6,155 Plus: Acquisition-related expense 802 — — 380 9,637 Plus: FDIC special assessment (95) — — — — Plus: FultonFirst implementation and asset disposals 2,795 (207) (270) (47) 10,001 Less: Tax impact of adjustments (791) (905) (1,064) (1,337) (5,360) Operating net income (numerator) $ 101,947 $ 103,859 $ 103,201 $ 98,016 $ 91,473 Total average assets $ 32,013,163 $ 31,924,038 $ 31,901,574 $ 31,971,601 $ 32,098,852 Less: Average net core deposit intangible (60,726) (65,999) (71,282) (77,039) (83,173) Total operating average assets (denominator) $ 31,952,437 $ 31,858,039 $ 31,830,292 $ 31,894,562 $ 32,015,679 Operating return on average assets(2) 1.27 % 1.29 % 1.30 % 1.25 % 1.14 % Operating return on average common shareholders' equity (tangible) Net income available to common shareholders $ 96,408 $ 97,892 $ 96,636 $ 90,425 $ 66,058 Less: Other (1) (4,989) (738) (9) (122) (269) Less: Gain on acquisition, net of tax — — — — 2,689 Plus: Intangible amortization 5,365 5,368 5,460 6,269 6,282 Plus: Acquisition-related expense 802 — — 380 9,637 Plus: FDIC special assessment (95) — — — Plus: FultonFirst implementation and asset disposals 2,795 (207) (270) (47) 10,001 Less: Tax impact of adjustments (814) (929) (1,088) (1,361) (5,387) Adjusted net income available to common shareholders (numerator) $ 99,472 $ 101,386 $ 100,729 $ 95,544 $ 89,011 Average shareholders' equity $ 3,464,539 $ 3,361,368 $ 3,304,015 $ 3,254,125 $ 3,219,026 Less: Average preferred stock (192,878) (192,878) (192,878) (192,878) (192,878) Less: Average goodwill and intangible assets (615,600) (620,986) (626,383) (632,254) (638,507) Average tangible common shareholders' equity (denominator) $ 2,656,061 $ 2,547,504 $ 2,484,754 $ 2,428,993 $ 2,387,641 Operating return on average common shareholders' equity (tangible)(2) 14.86 % 15.79 % 16.26 % 15.95 % 14.83 % Tangible common equity to tangible assets (TCE Ratio) Shareholders' equity $ 3,490,447 $ 3,413,598 $ 3,329,246 $ 3,274,321 $ 3,197,325 Less: Preferred stock (192,878) (192,878) (192,878) (192,878) (192,878) Less: Goodwill and intangible assets (612,996) (618,361) (623,729) (629,189) (635,458) Tangible common shareholders' equity (numerator) $ 2,684,573 $ 2,602,359 $ 2,512,639 $ 2,452,254 $ 2,368,989 Total assets $ 32,118,400 $ 31,995,086 $ 32,040,448 $ 32,132,028 $ 32,071,810 Less: Goodwill and intangible assets (612,996) (618,361) (623,729) (629,189) (635,458) Total tangible assets (denominator) $ 31,505,404 $ 31,376,725 $ 31,416,719 $ 31,502,839 $ 31,436,352 Tangible common equity to tangible assets 8.52 % 8.29 % 8.00 % 7.78 % 7.54 % (1) Results are annualized. (2) Includes loan recovery adjustments of $5.0 million and $0.6 million in the fourth quarter of 2025 and the third quarter of 2025, respectively, reflected in the provision for credit losses related to a loan acquired in the Acquisition. Three months ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2025 2025 2025 2025 2024 Efficiency ratio Non-interest expense $ 212,986 $ 196,574 $ 192,811 $ 189,460 $ 216,615 Less: Acquisition-related expense (802) — — (380) (9,637) Less: FDIC special assessment 95 — — — — Less: FultonFirst implementation and asset disposals (2,795) 207 270 47 (10,001) Less: Intangible amortization (5,365) (5,368) (5,460) (6,269) (6,282) Operating non-interest expense (numerator) $ 204,119 $ 191,413 $ 187,621 $ 182,858 $ 190,695 Net interest income $ 266,042 $ 264,198 $ 254,921 $ 251,187 $ 253,659 Tax equivalent adjustment 4,416 4,436 4,389 4,340 4,343 Plus: Total non-interest income 69,980 70,407 69,148 67,232 65,924 Less: Other revenue 11 (138) (9) (122) (269) Less: Gain on acquisition, net of tax — — — — 2,689 Plus: Investment securities (gains) losses, net — — — 2 — Total revenue (denominator) $ 340,449 $ 338,903 $ 328,449 $ 322,639 $ 326,346 Efficiency ratio 60.0 % 56.5 % 57.1 % 56.7 % 58.4 % Operating non-interest expense to total average assets Non-interest expense $ 212,986 $ 196,574 $ 192,811 $ 189,460 $ 216,615 Less: Intangible amortization (5,365) (5,368) (5,460) (6,269) (6,282) Less: Acquisition-related expense (802) — — (380) (9,637) Less: FDIC special assessment 95 — — — — Less: FultonFirst implementation and asset disposals (2,795) 207 270 47 (10,001) Operating non-interest expense (numerator) $ 204,119 $ 191,413 $ 187,621 $ 182,858 $ 190,695 Total average assets (denominator) $ 32,013,163 $ 31,924,038 $ 31,901,574 $ 31,971,601 $ 32,098,852 Operating non-interest expenses to total average assets(1) 2.53 % 2.38 % 2.36 % 2.32 % 2.36 % (1) Results are annualized. Year Ended Dec 31 Dec 31 2025 2024 Operating net income available to common shareholders Net income available to common shareholders $ 381,361 $ 278,495 Less: Other (1) (5,858) (1,805) Plus Gain on acquisition, net of tax — (36,996) Plus: Loss on securities restructuring — 20,282 Plus: Core deposit intangible amortization 22,010 17,307 Plus: Acquisition-related expense 1,182 37,635 Plus: CECL Day 1 Provision — 23,444 Less: Gain on sale-leaseback — (20,266) Plus: FDIC special assessment (95) 940 Plus: FultonFirst implementation and asset disposals 2,271 32,038 Less: Tax impact of adjustments (4,097) (23,011) Operating net income available to common shareholders (numerator) $ 396,774 $ 328,063 Weighted average shares (diluted) (denominator) 183,289 177,223 Operating net income available to common shareholders, per share (diluted) $ 2.16 $ 1.85 (1) Includes a loan recovery adjustment of $5.6 million in 2025, reflected in the provision for credit losses related to a loan acquired in the Acquisition. Media Contact: Lacey Dean (717) 735-8688 Investor Contact: Rick Kraemer (717) 327-2567 View original content to download multimedia:https://www.prnewswire.com/news-releases/fulton-financial-corporation-announces-2025-fourth-quarter-and-full-year-results-302667146.html SOURCE Fulton Financial Corporation