Fulton Financial Corporation Announces Second Quarter 2022 Results

By: Fulton Financial Corporation via Business Wire

July 19, 2022 at 16:30 PM EDT

Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $67.4 million, or $0.42 per diluted share, for the second quarter of 2022, an increase of $5.7 million, or 9.2%, in comparison to the first quarter of 2022. The Corporation reported net income available to common shareholders of $129.2 million, or $0.80 per diluted share, for the six months ended June 30, 2022, a decrease of $3.7 million or 2.8%, in comparison to the six months ended June 30, 2021.

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"Overall, we are pleased with Fulton's performance and results for the second quarter. Loan originations were strong, we began to see the positive impact of rising interest rates, and fee income was solid despite headwinds in mortgage banking and our wealth management businesses," said E. Philip Wenger, Chairman and CEO. "On the corporate front, we completed our acquisition of Prudential Bancorp, Inc., which was a very important milestone for us, and we published our first Corporate Social Responsibility report highlighting the positive impact our company and our team are making in the communities we serve."

Net Interest Income and Balance Sheet

Net interest income for the second quarter of 2022 was $178.8 million, an increase of $17.5 million in comparison to the first quarter of 2022. The net interest margin for the second quarter of 2022 increased 26 basis points, to 3.04%, from 2.78% in the first quarter of 2022.

The linked-quarter increase in net interest income was primarily due to rising interest rates resulting in increases in interest income from net loans, investment securities and other interest-earning assets of $14.6 million, $1.8 million and $1.1 million, respectively. An increase in the average balances for net loans and investment securities of $254.1 million and $172.1 million, respectively, also contributed to the increase in interest income. Interest expense from interest-bearing liabilities for the second quarter of 2022 declined by $0.2 million compared to the first quarter of 2022.

For the second quarter of 2022, net interest income was $178.8 million, an increase of $16.4 million, or 10.1%, in comparison to the second quarter of 2021 primarily driven by higher interest rates resulting in an increase in interest income from net loans of $9.2 million. Additionally, the year-over-year increase of $807.2 million in average investment securities resulted in an increase of $4.7 million in interest income for the second quarter of 2022 compared to the second quarter of 2021.

Total average interest-earning assets for the second quarter of 2022 were $24.0 billion, an increase of $90.9 million from the first quarter of 2022, primarily driven by the aforementioned increases in average net loans of $254.1 and average investment securities of $172.1 million, partially offset by a decrease in other interest-earning assets of $319.9 million.

Total average interest-earning assets for the second quarter of 2022 decreased by $295.2 million from the second quarter of 2021. Average net loans for the second quarter of 2022 were $18.6 billion , a decrease of $269.4 million from the same period in 2021. Included in average net loans for the second quarter of 2022 were Paycheck Protection Program ("PPP") loans with an average balance of $114.8 million, a decrease of $1.4 billion from the second quarter of 2021. The decrease in average PPP loans for the second quarter of 2022 was partially offset by increases in average residential mortgage loans, average commercial mortgage loans, average real estate construction loans and average commercial and industrial loans of $656.0 million, $162.8 million, $134.5 million and $119.8 million, respectively. Average investment securities increased $807.2 million, for the second quarter of 2022 compared to the second quarter of 2021.

Total average interest-bearing liabilities decreased $202.8 million, to $14.9 billion, in the second quarter of 2022 compared to the first quarter of 2022, driven by decreases of $88.8 million, $67.0 million and $52.9 million in average time deposits, average demand deposits and average long-term borrowings, respectively.

Total average interest-bearing liabilities for the second quarter of 2022 decreased $822.8 million from the second quarter of 2021, driven by decreases in average balances of $685.8 million, $69.8 million and $67.2 million in total interest-bearing deposits, long-term borrowings and short-term borrowings, respectively.

Asset Quality

In the second quarter of 2022, a provision for credit losses of $1.5 million was recorded, as compared to a negative provision for credit losses of $7.0 million in the first quarter of 2022, and a negative provision for credit losses of $3.5 million in the second quarter of 2021. The provision for credit losses for the second quarter of 2022 was recorded to adjust the allowance for credit losses as a result of strong loan growth during the quarter as well as the economic outlook.

Non-performing assets were $178.3 million, or 0.71% of total assets, at June 30, 2022, compared to $163.0 million, or 0.64% of total assets at March 31, 2022, and $156.5 million, or 0.60% of total assets, at June 30, 2021.

Annualized net charge-offs (recoveries) for the quarter ended June 30, 2022, were (0.08)% of total average loans, compared to (0.02%) and 0.15% for the quarters ended March 31, 2022 and June 30, 2021, respectively.

Non-interest Income

Non-interest income before investment securities gains in the second quarter of 2022 was $58.4 million, an increase of $3.1 million, or 5.7%, from the first quarter of 2022. The increase in non-interest income was driven by increases of $2.1 million in fee income from commercial customer interest rate swaps, $1.3 million in commercial banking merchant and card revenues and $0.8 million in consumer banking fees, partially offset a decrease of $1.2 million in wealth management revenues.

Compared to the second quarter of 2021, non-interest income before investment securities gains in the second quarter of 2022 increased $6.5 million, or 12.6%, from $51.9 million. The increase in non-interest income was primarily due to increases of $2.2 million in fee income from commercial customer interest rate swaps, $1.6 million in consumer banking fees, $0.9 million in mortgage banking income, $0.7 million in cash management fees, $0.6 million in wealth management revenues and $0.6 million in commercial banking merchant and card revenues.

Non-interest Expense

Non-interest expense, excluding merger-related expenses, was $148.7 million in the second quarter of 2022, an increase of $3.1 million, or 2.1%, compared to the first quarter of 2022. The increase was primarily due to a $1.0 million decrease in net gains on the sale of owned-fixed assets and an increase of $0.5 million in state taxes, both reflected in other expense, and a $0.9 million increase in salaries and employee benefits primarily due to merit increases and one additional day in the quarter. Included in non-interest expense for the second quarter of 2022 was $1.0 million of merger-related expenses associated with the acquisition of Prudential Bancorp, Inc., compared to $0.4 million in the first quarter of 2022.

Compared to the second quarter of 2021, non-interest expense, excluding merger-related expenses of $1.0 million, increased $7.9 million, or 5.6%, in the second quarter of 2022, primarily due to increases of $7.0 million in salaries and employee benefits and $1.1 million in net occupancy expense.

Income Tax Expense

For the second quarter of 2022, the effective tax rate was 18.6%, compared to 17.6% for the full-year of 2021.

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

Safe Harbor Statement

This press release may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," “projects,” the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results.

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

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2021, Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 and other current and periodic reports, which have been or will be filed with the Securities and Exchange Commission (the "SEC") and are or will be available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov).

Non-GAAP Financial Measures

The Corporation uses certain financial measures in this press release that have been derived from methods other than Generally Accepted Accounting Principles ("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)
in thousands, except per-share data and percentages
	Three months ended
	June 30			Mar 31			Dec 31			Sep 30			Jun 30
		2022			2022			2021			2021			2021
Ending Balances
Investments	$	4,117,801		$	4,288,674		$	4,167,774		$	4,000,760		$	3,921,658
Net loans		18,920,950			18,476,119			18,325,350			18,269,407			18,586,756
Total assets		25,252,686			25,598,310			25,796,398			26,390,832			26,079,774
Deposits		21,143,866			21,541,174			21,573,499			22,074,041			21,724,312
Shareholders' equity		2,471,093			2,569,535			2,712,680			2,699,818			2,692,958

Average Balances
Investments	$	4,216,507		$	4,228,827		$	3,980,045		$	3,914,627		$	3,670,333
Net loans		18,637,175			18,383,118			18,220,550			18,414,153			18,906,556
Total assets		25,578,432			25,622,462			26,136,536			26,440,876			26,017,542
Deposits		21,523,713			21,480,183			21,876,938			22,123,480			21,765,601
Shareholders' equity		2,531,346			2,688,834			2,713,198			2,722,833			2,669,413

Income Statement
Net interest income	$	178,831		$	161,310		$	165,613		$	171,270		$	162,399
Provision for credit losses		1,500			(6,950	)		(5,000	)		(600	)		(3,500	)
Non-interest income		58,391			55,256			63,881			62,577			51,890
Non-interest expense		149,730			145,978			154,019			144,596			140,831
Income before taxes		85,992			77,538			80,475			89,851			76,958
Net income available to common shareholders		67,427			61,726			59,325			73,021			62,402
Pre-provision net revenue⁽¹⁾		89,384			71,842			77,837			90,947			75,575

Per Share
Net income available to common shareholders (basic)	$	0.42		$	0.38		$	0.37		$	0.45		$	0.38
Net income available to common shareholders (diluted)	$	0.42		$	0.38		$	0.37		$	0.45		$	0.38
Cash dividends	$	0.15		$	0.15		$	0.22		$	0.14		$	0.14
Common shareholders' equity	$	14.15		$	14.79		$	15.70		$	15.53		$	15.34
Common shareholders' equity (tangible)⁽¹⁾	$	10.81		$	11.44		$	12.35		$	12.21		$	12.05
Weighted average shares (basic)		160,920			160,588			161,210			162,506			162,785
Weighted average shares (diluted)		162,075			161,911			162,355			163,456			163,858

⁽¹⁾ Non-GAAP financial measure. Refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this press release.

	Three months ended
	June 30			Mar 31			Dec 31			Sep 30			Jun 30
		2022			2022			2021			2021			2021
Asset Quality
Net (recoveries) charge offs to average loans (annualized)		(0.08	)%		(0.02	)%		0.07	%		(0.05	)%		0.15	%
Non-performing loans to total loans		0.92	%		0.87	%		0.83	%		0.82	%		0.83	%
Non-performing assets to total assets		0.71	%		0.64	%		0.60	%		0.58	%		0.60	%
ACL - loans⁽²⁾ to total loans		1.31	%		1.32	%		1.36	%		1.41	%		1.37	%
ACL - loans⁽²⁾ to non-performing loans		143	%		151	%		164	%		171	%		166	%

Asset Quality, excluding PPP⁽¹⁾⁽³⁾
Net (recoveries) charge offs to adjusted average loans (annualized)		(0.08	) %		(0.02	) %		0.07	%		(0.05	) %		0.16	%
Non-performing loans to total adjusted loans		0.92	%		0.88	%		0.84	%		0.85	%		0.88	%
ACL - loans⁽²⁾to total adjusted loans		1.32	%		1.33	%		1.38	%		1.45	%		1.46	%

Profitability
Return on average assets		1.10	%		1.02	%		0.94	%		1.13	%		1.00	%
Return on average assets, excluding merger-related expenses⁽¹⁾		1.11	%		1.02	%		0.94	%		1.13	%		1.00	%
Return on average common shareholders' equity		11.57	%		10.03	%		9.34	%		11.45	%		10.11	%
Return on average common shareholders' equity (tangible)⁽¹⁾		15.23	%		12.88	%		11.89	%		14.56	%		12.93	%
Net interest margin		3.04	%		2.78	%		2.77	%		2.82	%		2.73	%
Efficiency ratio⁽¹⁾		61.4	%		65.8	%		65.2	%		60.3	%		63.8	%
Non-interest expenses to total average assets		2.35	%		2.31	%		2.34	%		2.17	%		2.17	%
Non-interest expenses to total average assets⁽¹⁾		2.32	%		2.29	%		2.30	%		2.14	%		2.14	%

Capital Ratios
Tangible common equity ratio ("TCE")⁽¹⁾		7.0	%		7.3	%		7.8	%		7.6	%		7.7	%
TCE ratio, (excluding AOCI)⁽¹⁾⁽⁵⁾		8.2	%		7.9	%		7.8	%		7.5	%		7.5	%
Tier 1 leverage ratio⁽⁴⁾		9.1	%		8.9	%		8.6	%		8.4	%		8.5	%
Common equity Tier 1 capital ratio⁽⁴⁾		10.0	%		10.0	%		9.9	%		10.1	%		10.0	%
Tier 1 risk-based capital ratio⁽⁴⁾		10.9	%		10.9	%		10.9	%		11.1	%		11.0	%
Total risk-based capital ratio⁽⁴⁾		13.8	%		13.8	%		14.1	%		14.4	%		14.5	%

(1) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release.

(2) "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.

(3) Asset quality information excluding PPP loans.

(4) Regulatory capital ratios as of June 30, 2022 are preliminary and prior periods are actual.

(5) Tangible common equity ("TCE") ratio, excluding accumulated other comprehensive income ("AOCI")

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
																	% Change from
		June 30			Mar 31			Dec 31			Sep 30			June 30			Mar 31		Jun 30
			2022			2022			2021			2021			2021		2022		2021
ASSETS
	Cash and due from banks	$	158,605		$	161,462		$	172,276		$	260,564		$	143,002		(1.8	)%	10.9	%
	Other interest-earning assets		383,715			1,054,232			1,523,973			2,271,738			1,823,688		(63.6	)%	(79.0	)%
	Loans held for sale		17,528			27,675			35,768			43,123			41,924		(36.7	)%	(58.2	)%
	Investment securities		4,117,801			4,288,674			4,167,774			4,000,760			3,921,658		(4.0	)%	5.0	%
	Net loans		18,920,950			18,476,119			18,325,350			18,269,407			18,586,756		2.4	%	1.8	%
	Less: ACL - loans⁽¹⁾		(248,564	)		(243,705	)		(249,001	)		(256,727	)		(255,032	)	(2.0	)%	(2.5	)%
	Loans, net		18,672,386			18,232,414			18,076,349			18,012,680			18,331,724		2.4	%	1.9	%
	Net, premises and equipment		211,639			218,257			220,357			228,179			228,353		(3.0	)%	(7.3	)%
	Accrued interest receivable		64,457			55,102			57,451			57,902			63,232		17.0	%	1.9	%
	Goodwill and intangible assets		537,700			537,877			538,053			536,697			536,847		—	%	0.2	%
	Other assets		1,088,855			1,022,617			1,004,397			979,189			989,346		6.5	%	10.1	%
	Total Assets	$	25,252,686		$	25,598,310		$	25,796,398		$	26,390,832		$	26,079,774		(1.4	)%	(3.2	)%
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits	$	21,143,866		$	21,541,174		$	21,573,499		$	22,074,041		$	21,724,312		(1.8	)%	(2.7	)%
	Short-term borrowings		456,185			452,440			416,764			468,967			533,749		0.8	%	(14.5	)%
	Other liabilities		624,412			478,667			472,110			520,620			501,542		30.4	%	24.5	%
	Long-term borrowings		557,130			556,494			621,345			627,386			627,213		0.1	%	(11.2	)%
	Total Liabilities		22,781,593			23,028,775			23,083,718			23,691,014			23,386,816		(1.1	)%	(2.6	)%
	Shareholders' equity		2,471,093			2,569,535			2,712,680			2,699,818			2,692,958		(3.8	)%	(8.2	)%
	Total Liabilities and Shareholders' Equity	$	25,252,686		$	25,598,310		$	25,796,398		$	26,390,832		$	26,079,774		(1.4	)%	(3.2	)%

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
	Real estate - commercial mortgage	$	7,417,036		$	7,289,376		$	7,279,080		$	7,145,115		$	7,152,932		1.8	%	3.7	%
	Commercial and industrial		4,098,552			3,992,285			3,906,791			3,863,154			3,870,462		2.7	%	5.9	%
	Real estate - residential mortgage		4,203,827			3,946,741			3,846,750			3,719,684			3,555,897		6.5	%	18.2	%
	Real estate - home equity		1,108,808			1,098,171			1,118,248			1,126,628			1,136,128		1.0	%	(2.4	)%
	Real estate - construction		1,177,446			1,210,340			1,139,779			1,111,487			1,070,755		(2.7	) %	10.0	%
	Consumer		538,747			481,551			464,657			458,595			448,433		11.9	%	20.1	%
	Equipment lease financing		254,897			253,521			236,344			242,967			252,158		0.5	%	1.1	%
	Other⁽²⁾		49,214			39,857			32,448			11,330			(14,410	)	23.5	%	N/M
	Net loans before PPP		18,848,527			18,311,842			18,024,097			17,678,960			17,472,355		2.9	%	7.9	%
	PPP		72,423			164,277			301,253			590,447			1,114,401		(55.9	)%	(93.5	)%
	Total Net Loans	$	18,920,950		$	18,476,119		$	18,325,350		$	18,269,407		$	18,586,756		2.4	%	1.8	%
Deposits, by type:
	Noninterest-bearing demand	$	7,530,777		$	7,528,391		$	7,370,963		$	7,434,155		$	7,442,132		—	%	1.2	%
	Interest-bearing demand		5,403,805			5,625,286			5,819,539			6,187,096			5,795,404		(3.9	)%	(6.8	)%
	Savings		6,406,051			6,479,196			6,403,995			6,401,619			6,276,554		(1.1	)%	2.1	%
	Total demand and savings		19,340,633			19,632,873			19,594,497			20,022,870			19,514,090		(1.5	)%	(0.9	) %
	Brokered		243,172			248,833			251,526			262,617			277,444		(2.3	)%	(12.4	)%
	Time		1,560,061			1,659,468			1,727,476			1,788,554			1,932,778		(6.0	)%	(19.3	)%
	Total Deposits	$	21,143,866		$	21,541,174		$	21,573,499		$	22,074,041		$	21,724,312		(1.8	) %	(2.7	)%
Short-term borrowings, by type:
	Customer funding	$	436,185		$	452,440		$	416,764		$	468,967		$	533,749		(3.6	)%	(18.3	)%
	Federal funds purchased		20,000			—			—			—			—		N/M		N/M
	Total Short-Term Borrowings	$	456,185		$	452,440		$	416,764		$	468,967		$	533,749		0.8	%	(14.5	)%

(1)		"ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.
(2)		Consists of overdrafts and net origination fees and costs.
		N/M - Not meaningful

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands
		Three Months Ended															% Change from				Six Months Ended
		June 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31		June 30		June 30
			2022			2022			2021			2021			2021		2022		2021			2022			2021		% Change
Interest Income:
	Interest income	$	190,299		$	173,001		$	177,724		$	184,079		$	176,673		10.0	%	7.7	%	$	363,300		$	361,609		0.5	%
	Interest expense		11,468			11,691			12,111			12,809			14,274		(1.9	)%	(19.7	)%		23,159			34,762		(33.4	)%
	Net Interest Income		178,831			161,310			165,613			171,270			162,399		10.9	%	10.1	%		340,141			326,847		4.1	%
	Provision for credit losses		1,500			(6,950	)		(5,000	)		(600	)		(3,500	)	121.6	%	142.9	%		(5,450	)		(9,000	)	39.4	%
	Net Interest Income after Provision		177,331			168,260			170,613			171,870			165,899		5.4	%	6.9	%		345,591			335,847		2.9	%
Non-Interest Income:
	Commercial banking:
	Merchant and card		7,355			6,097			6,588			6,979			6,786		20.6	%	8.4	%		13,452			12,554		7.2	%
	Cash management		6,062			5,428			5,318			5,285			5,341		11.7	%	13.5	%		11,490			10,262		12.0	%
	Capital markets		3,893			1,676			2,982			2,063			1,536		132.3	%	N/M			5,569			4,336		28.4	%
	Other commercial banking		3,049			2,807			3,592			2,411			3,466		8.6	%	(12.0	)%		5,856			6,319		(7.3	)%
	Total commercial banking		20,359			16,008			18,480			16,738			17,129		27.2	%	18.9	%		36,367			33,471		8.7	%
	Consumer banking:
	Card		6,067			5,796			5,953			5,941			5,733		4.7	%	5.8	%		11,863			11,611		2.2	%
	Overdraft		3,881			3,772			3,896			3,474			2,750		2.9	%	41.1	%		7,653			5,474		39.8	%
	Other consumer banking		2,524			2,106			2,280			2,386			2,377		19.8	%	6.2	%		4,630			4,529		2.2	%
	Total consumer banking		12,472			11,674			12,129			11,801			10,860		6.8	%	14.8	%		24,146			21,614		11.7	%
	Wealth management		18,274			19,428			18,285			18,532			17,634		(5.9	)%	3.6	%		37,702			34,981		7.8	%
	Mortgage banking		3,768			4,576			7,243			9,535			2,838		(17.7	)%	32.8	%		8,344			16,798		(50.3	)%
	Other		3,510			3,551			7,739			5,971			3,393		(1.2	)%	3.4	%		7,061			6,912		2.2	%
	Non-interest income before investment securities gains		58,383			55,237			63,876			62,577			51,854		5.7	%	12.6	%		113,620			113,776		(0.1	)%
	Investment securities gains, net		8			19			5			—			36		(57.9	)%	(77.8	)%		27			33,511		(99.9	)%
	Total Non-Interest Income		58,391			55,256			63,881			62,577			51,890		5.7	%	12.5	%		113,647			147,287		(22.8	)%
Non-Interest Expense:
	Salaries and employee benefits		85,404			84,464			85,506			82,679			78,367		1.1	%	9.0	%		169,868			160,953		5.5	%
	Data processing and software		14,685			14,315			14,612			14,335			13,932		2.6	%	5.4	%		29,000			27,493		5.5	%
	Net occupancy		13,587			14,522			14,366			12,957			12,494		(6.4	)%	8.7	%		28,109			26,476		6.2	%
	Other outside services		8,764			8,167			9,637			7,889			8,178		7.3	%	7.2	%		16,931			16,668		1.6	%
	Equipment		3,422			3,423			3,539			3,416			3,424		—	%	(0.1	)%		6,845			6,852		(0.1	)%
	FDIC insurance		2,961			3,209			3,032			2,727			2,282		(7.7	)%	29.8	%		6,170			4,906		25.8	%
	Professional fees		2,013			1,792			1,946			2,271			2,651		12.3	%	(24.1	)%		3,805			5,430		(29.9	)%
	Marketing		1,326			1,320			1,477			1,448			1,348		0.5	%	(1.6	)%		2,646			2,350		12.6	%
	Intangible amortization		177			176			146			150			178		0.6	%	(0.6	)%		353			293		20.5	%
	Debt extinguishment		—			—			674			—			412		N/M		N/M			—			32,575		(100.0	)%
	Merger-related expenses		1,027			401			—			—			—		N/M		N/M			1,428			—		N/M
	Other		16,364			14,189			19,084			16,724			17,565		15.3	%	(6.8	)%		30,553			35,219		(13.2	)%
	Total Non-Interest Expense		149,730			145,978			154,019			144,596			140,831		2.6	%	6.3	%		295,708			319,215		(7.4	)%
	Income Before Income Taxes		85,992			77,538			80,475			89,851			76,958		10.9	%	11.7	%		163,530			163,919		(0.2	)%
	Income tax expense		16,003			13,250			18,588			14,268			11,994		20.8	%	33.4	%		29,253			25,892		13.0	%
	Net Income		69,989			64,288			61,887			75,583			64,964		8.9	%	7.7	%		134,277			138,027		(2.7	)%
	Preferred stock dividends		(2,562	)		(2,562	)		(2,562	)		(2,562	)		(2,562	)	—	%	—	%		(5,124	)		(5,153	)	0.6	%
	Net Income Available to Common Shareholders	$	67,427		$	61,726		$	59,325		$	73,021		$	62,402		9.2	%	8.1	%	$	129,153		$	132,874		(2.8	)%


		Three Months Ended															% Change from				Six Months Ended
		June 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31		June 30		June 30
			2022			2022			2021			2021			2021		2022		2021			2022			2021		% Change
PER SHARE:
	Net income available to common shareholders:
	Basic	$	0.42		$	0.38		$	0.37		$	0.45		$	0.38		10.5	%	10.5	%	$	0.80		$	0.81		(1.2	)%
	Diluted	$	0.42		$	0.38		$	0.37		$	0.45		$	0.38		10.5	%	10.5	%	$	0.80		$	0.81		(1.2	)%
	Cash dividends	$	0.15		$	0.15		$	0.22		$	0.14		$	0.14		—	%	7.1	%	$	0.30		$	0.28		7.1	%

	Weighted average shares (basic)		160,920			160,588			161,210			162,506			162,785		0.2	%	(1.1	)%		160,755			162,614		(1.1	)%
	Weighted average shares (diluted)		162,075			161,991			162,355			163,456			163,858		0.1	%	(1.1	)%		162,015			163,738		(1.1	)%

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Three months ended
		June 30, 2022								March 31, 2022								June 30, 2021
		Average			Interest			Yield/		Average			Interest			Yield/		Average			Interest			Yield/
		Balance			(1)			Rate		Balance			(1)			Rate		Balance			(1)			Rate
ASSETS

Interest-earning assets:
	Net loans	$	18,637,175		$	165,682		3.56	%	$	18,383,118		$	151,127		3.32	%	$	18,906,556		$	156,525		3.32	%
	Taxable investment securities		3,180,159			16,931		1.68	%		3,073,643			15,213		1.71	%		2,630,090			13,898		1.93	%
	Tax-exempt investment securities		1,218,265			9,130		2.99	%		1,152,709			9,038		3.13	%		961,141			7,494		3.11	%
	Total Investment Securities		4,398,424			26,061		2.37	%		4,226,352			24,251		2.29	%		3,591,231			21,392		2.38	%
	Loans held for sale		13,260			260		7.84	%		28,549			241		3.37	%		31,948			199		2.49	%
	Other interest-earning assets		938,244			1,723		0.74	%		1,258,174			671		0.22	%		1,752,549			1,575		0.16	%
	Total Interest-Earning Assets		23,987,103			193,726		3.24	%		23,896,193			176,290		2.98	%		24,282,284			179,691		2.97	%

Noninterest-Earning assets:
	Cash and due from banks		160,240								162,320								129,927
	Premises and equipment		216,798								219,932								229,047
	Other assets		1,463,332								1,595,039								1,643,410
	Less: ACL - loans⁽²⁾		(249,041	)							(251,022	)							(267,126	)
	Total Assets	$	25,578,432							$	25,622,462							$	26,017,542

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-Bearing liabilities:
	Demand deposits	$	5,597,975		$	797		0.06	%	$	5,664,987		$	728		0.05	%	$	5,979,855		$	932		0.06	%
	Savings deposits		6,425,634			1,125		0.07	%		6,436,548			1,021		0.06	%		6,280,629			1,363		0.09	%
	Brokered deposits		244,200			619		1.02	%		250,350			216		0.35	%		297,815			253		0.34	%
	Time deposits		1,608,286			3,255		0.81	%		1,697,063			3,640		0.87	%		2,003,606			5,434		1.09	%
	Total Interest-Bearing Deposits		13,876,095			5,796		0.17	%		14,048,948			5,605		0.16	%		14,561,905			7,982		0.22	%

	Short-term borrowings		446,838			190		0.17	%		423,949			121		0.12	%		514,025			137		0.11	%
	Long-term borrowings		556,992			5,482		3.94	%		609,866			5,966		3.91	%		626,795			6,155		3.93	%
	Total Interest-Bearing Liabilities		14,879,925			11,468		0.31	%		15,082,763			11,692		0.31	%		15,702,725			14,274		0.36	%

Noninterest-Bearing liabilities:
	Demand deposits		7,647,618								7,431,235								7,203,696
	Other		519,543								419,630								441,708
	Total Liabilities		23,047,086								22,933,628								23,348,129
	Total Deposits/Cost of Deposits		21,523,713					0.11	%		21,480,183					0.11	%		21,765,601					0.15	%
	Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")		22,527,543					0.20	%		22,513,998					0.21	%		22,906,421					0.25	%

	Shareholders' equity		2,531,346								2,688,834								2,669,413
	Total Liabilities and Shareholders' Equity	$	25,578,432							$	25,622,462							$	26,017,542

	Net interest income/net interest margin (fully taxable equivalent)					182,258		3.04	%					164,598		2.78	%					165,417		2.73	%
	Tax equivalent adjustment					(3,427	)							(3,288	)							(3,018	)
	Net Interest Income				$	178,831							$	161,310							$	162,399

(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 "Net Loans" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):
dollars in thousands
		Three months ended												% Change from
		June 30		Mar 31		Dec 31		Sep 30			Jun 30			Mar 31		Jun 30
		2022		2022		2021			2021			2021		2022		2021
Loans, by type:
	Real estate - commercial mortgage	$	7,340,417	$	7,294,914	$	7,157,906	$	7,134,177		$	7,177,622		0.6	%	2.3	%
	Commercial and industrial		4,040,587		3,986,900		3,898,559		3,878,767			3,920,771		1.3	%	3.1	%
	Real estate - residential mortgage		4,052,666		3,887,428		3,773,156		3,642,822			3,396,690		4.3	%	19.3	%
	Real estate - home equity		1,118,494		1,106,319		1,122,042		1,128,076			1,139,558		1.1	%	(1.8	)%
	Real estate - construction		1,188,932		1,137,649		1,117,592		1,085,846			1,054,469		4.5	%	12.8	%
	Consumer		485,095		471,129		462,346		452,844			451,486		3.0	%	7.4	%
	Equipment lease financing		253,659		236,388		238,349		247,776			256,248		7.3	%	(1.0	)%
	Other⁽¹⁾		42,476		36,277		15,558		(6,773	)		(14,677	)	17.1	%	N/M
	Net loans before PPP		18,522,326		18,157,004		17,785,508		17,563,535			17,382,167		2.0	%	6.6	%
	PPP		114,849		226,114		435,042		850,618			1,524,389		(49.2	)%	(92.5	)%
	Total Net Loans	$	18,637,175	$	18,383,118	$	18,220,550	$	18,414,153		$	18,906,556		1.4	%	(1.4	)%

Deposits, by type:
	Noninterest-bearing demand	$	7,647,618	$	7,431,235	$	7,516,656	$	7,439,644		$	7,203,696		2.9	%	6.2	%
	Interest-bearing demand		5,597,975		5,664,987		5,933,780		6,168,908			5,979,855		(1.2	)%	(6.4	)%
	Savings		6,425,634		6,436,548		6,413,638		6,392,537			6,280,629		(0.2	)%	2.3	%
	Total demand and savings		19,671,227		19,532,770		19,864,074		20,001,089			19,464,180		0.7	%	1.1	%
	Brokered		244,200		250,350		256,192		270,168			297,815		(2.5	)%	(18.0	)%
	Time		1,608,286		1,697,063		1,756,672		1,852,223			2,003,606		(5.2	)%	(19.7	)%
	Total Deposits	$	21,523,713	$	21,480,183	$	21,876,938	$	22,123,480		$	21,765,601		0.2	%	(1.1	)%

Short-term borrowings, by type:
	Customer funding	$	443,970	$	423,949	$	474,022	$	494,811		$	514,025		4.7	%	(13.6	) %
	Federal funds purchased		2,857		—		—		—			—		N/M		N/M
	Short-term FHLB advances and other borrowings		11		—		—		—			—		N/M		N/M
	Total Short-Term borrowings	$	446,838	$	423,949	$	474,022	$	494,811		$	514,025		5.4	%	(13.1	)%

⁽¹⁾ Consists of overdrafts and net origination fees and costs.

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Six months ended June 30
		2022								2021
		Average			Interest			Yield/		Average			Interest			Yield/
		Balance			(1)			Rate		Balance			(1)			Rate
ASSETS

Interest-earning assets:
	Net loans	$	18,510,845		$	316,809		3.44	%	$	18,943,367		$	321,987		3.42	%
	Taxable investment securities		3,127,199			32,144		1.69	%		2,534,821			27,588		2.00	%
	Tax-exempt investment securities		1,185,668			18,168		3.06	%		936,531			14,651		3.12	%
	Equity securities		—			—		—	%		—			—		—	%
	Total Investment Securities		4,312,867			50,312		2.33	%		3,471,352			42,239		2.43	%
	Loans held for sale		20,862			501		4.80	%		42,647			671		3.14	%
	Other interest-earning assets		1,097,326			2,394		0.44	%		1,825,966			2,711		0.19	%
	Total Interest-Earning Assets		23,941,900			370,016		3.11	%		24,283,332			367,607		3.05	%

Noninterest-Earning assets:
	Cash and due from banks		161,274								125,081
	Premises and equipment		218,357								229,843
	Other assets		1,528,820								1,685,708
	Less: ACL - loans⁽²⁾		(250,026	)							(273,965	)
	Total Assets	$	25,600,325							$	26,049,999

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-Bearing liabilities:
	Demand deposits	$	5,631,296		$	1,525		0.06	%	$	5,906,423		$	2,092		0.07	%
	Savings deposits		6,431,060			2,146		0.07	%		6,209,253			2,890		0.09	%
	Brokered deposits		247,258			835		0.68	%		311,016			647		0.42	%
	Time deposits		1,652,430			6,895		0.84	%		2,076,681			11,955		1.16	%
	Total Interest-Bearing Deposits		13,962,044			11,401		0.16	%		14,503,373			17,584		0.24	%

	Short-term borrowings		435,457			311		0.14	%		542,243			325		0.12	%
	Long-term borrowings		583,283			11,447		3.92	%		947,203			16,853		3.56	%
	Total Interest-Bearing Liabilities		14,980,784			23,159		0.31	%		15,992,819			34,762		0.44	%

Noninterest-Bearing liabilities:
	Demand deposits		7,540,025								6,939,731
	Other		469,861								464,104
	Total Liabilities		22,990,670								23,396,654
	Total Deposits/Cost of Deposits		21,502,069					0.11	%		21,443,104					0.17	%
	Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")		22,520,809					0.21	%		22,932,550					0.30	%

	Shareholders' equity		2,609,655								2,653,345
	Total Liabilities and Shareholders' Equity	$	25,600,325							$	26,049,999

	Net interest income/net interest margin (fully taxable equivalent)					346,857		2.91	%					332,845		2.76	%
	Tax equivalent adjustment					(6,716	)							(5,998	)
	Net Interest Income				$	340,141							$	326,847

(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 "Net Loans" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):
dollars in thousands

		Six months ended June 30
		2022			2021		% Change
Loans, by type:
	Real estate - commercial mortgage	$	7,318,422	$	7,153,444		2.3	%
	Commercial and industrial		4,015,709		3,976,758		1.0	%
	Real estate - residential mortgage		3,970,877		3,290,726		20.7	%
	Real estate - home equity		1,125,257		1,157,289		(2.8	)%
	Real estate - construction		1,164,785		1,054,593		10.4	%
	Consumer		461,159		455,241		1.3	%
	Equipment lease financing		245,071		261,300		(6.2	)%
	Other⁽¹⁾		39,391		(12,081	)	N/M
	Net loans before PPP		18,340,671		17,337,270		5.8	%
	PPP		170,174		1,606,097		(89.4	)%
	Total Net Loans	$	18,510,845	$	18,943,367		(2.3	)%

Deposits, by type:
	Noninterest-bearing demand	$	7,540,025	$	6,939,731		8.7	%
	Interest-bearing demand		5,631,296		5,906,423		(4.7	)%
	Savings		6,431,060		6,209,253		3.6	%
	Total demand and savings		19,602,381		19,055,407		2.9	%
	Brokered		247,258		311,016		(20.5	)%
	Time		1,652,430		2,076,681		(20.4	)%
	Total Deposits	$	21,502,069	$	21,443,104		0.3	%

Short-term borrowings, by type:
	Customer funding		434,015		542,243		(20.0	)%
	Federal funds purchased		1,436		—		N/M
	Short-term FHLB advances and other borrowings		6		—		N/M
	Total Short-Term Borrowings	$	435,457	$	542,243		(19.7	)%

N/M - Not meaningful
(1) Consists of overdrafts and net origination fees and costs.

FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
		Three months ended															Six Month Ended
		June 30			Mar 31			Dec 31			Sep 30			Jun 30			June 30			June 30
		2022			2022			2021			2021			2021			2022			2021
Allowance for credit losses related to net loans:
Balance at beginning of period		$	243,705		$	249,001		$	256,727		$	255,032		$	265,986		$	249,001		$	277,567

	Loans charged off:
	Commercial and industrial		(201	)		(227	)		(9,417	)		(647	)		(954	)		(428	)		(5,273	)
	Real estate - commercial mortgage		—			(152	)		(369	)		(14	)		(6,506	)		(152	)		(8,343	)
	Consumer and home equity		(877	)		(1,052	)		(828	)		(504	)		(1,130	)		(1,929	)		(1,977	)
	Real estate - residential mortgage		(66	)		—			—			(602	)		(496	)		(66	)		(688	)
	Real estate - construction		—			—			—			—			—			—			(39	)
	Equipment lease financing and other		(474	)		(469	)		(380	)		(467	)		(436	)		(943	)		(1,404	)
	Total loans charged off		(1,618	)		(1,900	)		(10,994	)		(2,234	)		(9,522	)		(3,518	)		(17,724	)
Recoveries of loans previously charged off:
	Commercial and industrial		739			1,980			5,795			2,330			693			2,719			1,462
	Real estate - commercial mortgage		3,536			112			1,007			564			729			3,648			903
	Consumer and home equity		762			454			767			504			634			1,216			1,074
	Real estate - residential mortgage		92			222			89			86			105			314			200
	Real estate - construction		12			32			77			697			254			44			638
	Equipment lease financing and other		226			154			283			358			153			380			312
	Recoveries of loans previously charged off		5,367			2,954			8,018			4,539			2,568			8,321			4,589
Net loans recovered (charged off)			3,749			1,054			(2,976	)		2,305			(6,954	)		4,803			(13,135	)
Provision for credit losses			1,110			(6,350	)		(4,750	)		(610	)		(4,000	)		(5,240	)		(9,400	)
Balance at end of period		$	248,564		$	243,705		$	249,001		$	256,727		$	255,032		$	248,564		$	255,032
Net (recoveries) charge offs to average loans (annualized)			(0.08	)%		(0.02	)%		0.07	%		(0.05	)%		0.15	%		(0.05	)%		0.14	%

Allowance credit losses related to OBS Credit Exposures⁽¹⁾
	Balance at beginning of period	$	13,933		$	14,533		$	14,783		$	14,773		$	14,273
	Provision for credit losses		390			(600	)		(250	)		10			500
	Balance at end of period	$	14,323		$	13,933		$	14,533		$	14,783		$	14,773

NON-PERFORMING ASSETS:
	Non-accrual loans	$	162,530		$	136,799		$	143,666		$	138,833		$	147,864
	Loans 90 days past due and accruing		11,016			24,182			8,453			11,389			5,865
	Total non-performing loans		173,546			160,981			152,119			150,222			153,729
	Other real estate owned		4,786			2,014			1,817			1,896			2,779
	Total non-performing assets	$	178,332		$	162,995		$	153,936		$	152,118		$	156,508

NON-PERFORMING LOANS, BY TYPE:
	Commercial and industrial	$	44,713		$	30,193		$	30,629		$	32,697		$	33,522
	Real estate - commercial mortgage		59,940			64,190			54,044			52,100			53,693
	Real estate - residential mortgage		42,922			39,308			39,399			37,077			38,185
	Consumer and home equity		10,552			11,465			11,505			11,509			11,408
	Real estate - construction		1,357			672			901			965			1,016
	Equipment lease financing and other		14,062			15,153			15,641			15,874			15,905
	Total non-performing loans	$	173,546		$	160,981		$	152,119		$	150,222		$	153,729

(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, that 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
		June 30			Mar 31			Dec 31			Sep 30			Jun 30
			2022			2022			2021			2021			2021
Common shareholders' equity (tangible), per share
Shareholders' equity		$	2,471,093		$	2,569,535		$	2,712,680		$	2,699,818		$	2,692,958
Less: Preferred stock			(192,878	)		(192,878	)		(192,878	)		(192,878	)		(192,878	)
Less: Goodwill and intangible assets			(537,700	)		(537,877	)		(538,053	)		(536,697	)		(536,847	)
Tangible common shareholders' equity (numerator)		$	1,740,515		$	1,838,780		$	1,981,749		$	1,970,243		$	1,963,233

Shares outstanding, end of period (denominator)			161,057			160,669			160,490			161,429			162,988

Common shareholders' equity (tangible), per share		$	10.81		$	11.44		$	12.35		$	12.21		$	12.05

Return on average assets, excluding merger-related expenses
Net income		$	69,989		$	64,288		$	61,887		$	75,583		$	64,964
Plus: Merger-related expenses, net of tax			811			317			—			—			—
Net income (numerator)		$	70,800		$	64,605		$	61,887		$	75,583		$	64,964

Total average assets (denominator)		$	25,578,432		$	25,622,462		$	26,136,536		$	26,440,876		$	26,017,542

Return on average assets, excluding merger-related expenses, annualized			1.11	%		1.02	%		0.94	%		1.13	%		1.00	%

Return on average common shareholders' equity (tangible)
Net income available to common shareholders		$	67,427		$	61,726		$	59,325		$	73,021		$	62,402
Plus: Merger-related expenses, net of tax			811			317			—			—			—
Plus: Intangible amortization, net of tax			140			138			114			118			140
Net income available to common shareholders (numerator)		$	68,378		$	62,181		$	59,439		$	73,139		$	62,542

Average shareholders' equity		$	2,531,346		$	2,688,834		$	2,713,198		$	2,722,833		$	2,669,413
Less: Average preferred stock			(192,878	)		(192,878	)		(192,878	)		(192,878	)		(192,878	)
Less: Average goodwill and intangible assets			(537,786	)		(537,976	)		(536,638	)		(536,772	)		(536,470	)
Average tangible common shareholders' equity (denominator)		$	1,800,682		$	1,957,980		$	1,983,682		$	1,993,183		$	1,940,065

Return on average common shareholders' equity (tangible), annualized			15.23	%		12.88	%		11.89	%		14.56	%		12.93	%

Tangible common equity to tangible assets (TCE Ratio)
Shareholders' equity		$	2,471,093		$	2,569,535		$	2,712,680		$	2,699,818		$	2,692,958
Less: Preferred stock			(192,878	)		(192,878	)		(192,878	)		(192,878	)		(192,878	)
Less: Goodwill and intangible assets			(537,700	)		(537,877	)		(538,053	)		(536,697	)		(536,847	)
Tangible common shareholders' equity (numerator)		$	1,740,515		$	1,838,780		$	1,981,749		$	1,970,243		$	1,963,233

Total assets		$	25,252,686		$	25,598,310		$	25,796,398		$	26,390,832		$	26,079,774
Less: Goodwill and intangible assets			(537,700	)		(537,877	)		(538,053	)		(536,697	)		(536,847	)
Total tangible assets (denominator)		$	24,714,986		$	25,060,433		$	25,258,345		$	25,854,135		$	25,542,927

Tangible common equity to tangible assets			7.04	%		7.34	%		7.85	%		7.62	%		7.69	%


		Three months ended
		June 30			Mar 31			Dec 31			Sep 30			Jun 30
			2022			2022			2021			2021			2021
Tangible common equity to tangible assets (TCE Ratio) excluding AOCI
Shareholders' equity		$	2,471,093		$	2,569,535		$	2,712,680		$	2,699,818		$	2,692,958
Less: Preferred stock			(192,878	)		(192,878	)		(192,878	)		(192,878	)		(192,878	)
Less: Accumulated other comprehensive income (loss)			(304,210	)		(158,855	)		27,411			25,615			47,201
Less: Goodwill and intangible assets			(537,700	)		(537,877	)		(538,053	)		(536,697	)		(536,847	)
Tangible common shareholders' equity (numerator)		$	2,044,725		$	1,997,635		$	1,954,338		$	1,944,628		$	1,916,032

Total assets		$	25,252,686		$	25,598,310		$	25,796,398		$	26,390,832		$	26,079,774
Less: Goodwill and intangible assets			(537,700	)		(537,877	)		(538,053	)		(536,697	)		(536,847	)
Plus: AOCI - unrealized losses/(gains) on AFS investments securities			249,424			112,965			(40,444	)		(41,787	)		(62,772	)
Total tangible assets (denominator)		$	24,964,410		$	25,173,398		$	25,217,901		$	25,812,348		$	25,480,155

Tangible common equity to tangible assets, excluding AOCI			8.19	%		7.94	%		7.75	%		7.53	%		7.52	%

Efficiency ratio
Non-interest expense		$	149,730		$	145,978		$	154,019		$	144,596		$	140,831
Less: Amortization of tax credit investments			(696	)		(696	)		(1,547	)		(1,546	)		(1,563	)
Less: Merger-related expenses			(1,027	)		(401	)		—			—			—
Less: Intangible amortization			(177	)		(176	)		(146	)		(150	)		(178	)
Less: Debt extinguishment costs			—			—			(674	)		—			(412	)
Non-interest expense (numerator)		$	147,830		$	144,705		$	151,652		$	142,900		$	138,678

Net interest income		$	178,831		$	161,310		$	165,613		$	171,270		$	162,399
Tax equivalent adjustment			3,427			3,288			3,184			3,114			3,018
Plus: Total non-interest income			58,391			55,256			63,881			62,577			51,890
Less: Investment securities gains, net			(8	)		(19	)		(5	)		—			(36	)
Total revenue (denominator)		$	240,641		$	219,835		$	232,673		$	236,961		$	217,271

Efficiency ratio			61.4	%		65.8	%		65.2	%		60.3	%		63.8	%

Non-interest expenses to total average assets (annualized)
Non-interest expense		$	149,730		$	145,978		$	154,019		$	144,596		$	140,831
Less: Amortization of tax credit investments			(696	)		(696	)		(1,547	)		(1,546	)		(1,563	)
Less: Intangible amortization			(177	)		(176	)		(146	)		(150	)		(178	)
Less: Merger-related expenses			(1,027	)		(401	)		—			—			—
Less: Debt extinguishment costs			—			—			(674	)		—			(412	)
Non-interest expense (numerator)		$	147,830		$	144,705		$	151,652		$	142,900		$	138,678

Total average assets (denominator)		$	25,578,432		$	25,622,462		$	26,136,536		$	26,440,876		$	26,017,542

Non-interest expenses to total average assets, (annualized)			2.32	%		2.29	%		2.30	%		2.14	%		2.14	%

Asset Quality, excluding PPP
Net loans recovered (charged-off) (numerator)		$	3,749		$	1,054		$	(2,976	)	$	2,305		$	(6,954	)

Average net loans		$	18,637,175		$	18,383,118		$	18,220,550		$	18,414,153		$	18,906,556
Less: Average PPP loans			(114,849	)		(226,114	)		(435,042	)		(850,618	)		(1,524,389	)
Total adjusted average loans (denominator)		$	18,522,326		$	18,157,004		$	17,785,508		$	17,563,535		$	17,382,167

Net charge-offs (recoveries) to adjusted average loans (annualized)			(0.08	) %		(0.02	) %		0.07	%		(0.05	) %		0.16	%

Non-performing loans (numerator)		$	173,546		$	160,981		$	152,119		$	150,222		$	153,729

Net loans		$	18,920,950		$	18,476,119		$	18,325,350		$	18,269,407		$	18,586,756
Less: PPP loans			(72,423	)		(164,277	)		(301,253	)		(590,447	)		(1,114,401	)
Total adjusted loans (denominator)		$	18,848,527		$	18,311,842		$	18,024,097		$	17,678,960		$	17,472,355

Non-performing loans to total adjusted loans			0.92	%		0.88	%		0.84	%		0.85	%		0.88	%


		Three months ended
		June 30			Mar 31			Dec 31			Sep 30			Jun 30
			2022			2022			2021			2021			2021

ACL - loans (numerator)		$	248,564		$	243,705		$	249,001		$	256,727		$	255,032

Net loans		$	18,920,950		$	18,476,119		$	18,325,350		$	18,269,407		$	18,586,756
Less: PPP loans			(72,423	)		(164,277	)		(301,253	)		(590,447	)		(1,114,401	)
Total adjusted loans (denominator)		$	18,848,527		$	18,311,842		$	18,024,097		$	17,678,960		$	17,472,355

ACL - loans to total adjusted loans			1.32	%		1.33	%		1.38	%		1.45	%		1.46	%

Pre-provision net revenue
Net interest income		$	178,831		$	161,310		$	165,613		$	171,270		$	162,399
Non-interest income			58,391			55,256			63,881			62,577			51,890
Less: Investment securities gains, net			(8	)		(19	)		(5	)		—			(36	)
Total revenue		$	237,214		$	216,547		$	229,489		$	233,847		$	214,253

Non-interest expense		$	149,730		$	145,978		$	154,019		$	144,596		$	140,831
Less: Amortization on tax credit investments			(696	)		(696	)		(1,547	)		(1,546	)		(1,563	)
Less: Merger-related expenses			(1,027	)		(401	)		—			—			—
Less: Intangible amortization			(177	)		(176	)		(146	)		(150	)		(178	)
Less: Debt extinguishment			—			—			(674	)		—			(412	)
Total non-interest expense		$	147,830		$	144,705		$	151,652		$	142,900		$	138,678

Pre-provision net revenue		$	89,384		$	71,842		$	77,837		$	90,947		$	75,575

Note: numbers may not sum due to rounding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220719006064/en/

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Fulton Financial Corporation Announces Second Quarter 2022 Results

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