Fulton Financial Corporation Announces Fourth Quarter and 2022 Results

By: Fulton Financial Corporation via Business Wire

January 17, 2023 at 17:30 PM EST

Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $79.3 million, or $0.47 per diluted share, for the fourth quarter of 2022, an increase of $11.0 million, or 16.0%, in comparison to the third quarter of 2022. The Corporation reported net income available to common shareholders of $276.7 million, or $1.67 per diluted share, for the year ended December 31, 2022, an increase of $11.5 million or 4.3%, in comparison to the year ended December 31, 2021. The results for the third and fourth quarters of 2022 include the impact of the consummation of the acquisition by the Corporation of Prudential Bancorp, Inc. ("Prudential Bancorp") on July 1, 2022.

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“2022 was a record year for Fulton, as we continued to execute on our strategy to Grow the bank, Deliver effectively for customers, Operate with excellence, and Serve our stakeholders,” said Curtis J. Myers, Chairman and CEO of Fulton Financial Corporation. "I’m very proud of our team's results, especially given the large number of strategic initiatives, we tackled, including the Prudential Bancorp acquisition - our first whole-bank acquisition in over a decade. Coming out of 2022, we are well positioned for continued success in 2023."

Operating net income available to common shareholders was $81.2 million, or $0.48 per diluted share, for the fourth quarter of 2022, calculated as shown below.

						Three months ended
(in thousands except per share data)						December 31, 2022

Net income available to common shareholders						$79,271
Plus: Core deposit intangible amortization						514
Plus: Merger-related expenses						1,894
Less: Tax impact of adjustments						(506)
Operating net income available to common shareholders (numerator)						$81,173

Weighted average shares (diluted) (denominator)						169,136

Operating net income available to common shareholders per share (diluted)⁽¹⁾						$0.48

(1) Non-GAAP financial measure.

Net Interest Income and Balance Sheet

Net interest income for the fourth quarter of 2022 was $225.9 million, an increase of $10.3 million in comparison to the third quarter of 2022. The net interest margin for the fourth quarter of 2022 increased 15 basis points, to 3.69%, in comparison to 3.54% in the third 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 of $33.8 million. An increase in the average balances for net loans of $440.7 million also contributed to the increase in interest income. Interest expense from interest-bearing liabilities for the fourth quarter of 2022 increased by $23.8 million to $41.9 million in comparison to $18.1 million in the third quarter of 2022 primarily due to rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings of $12.3 million and $11.5 million, respectively. An increase in the average balance for borrowings of $666.2 million in the fourth quarter of 2022 in comparison to the third quarter of 2022 also contributed to the increase in interest expense.

For the fourth quarter of 2022, net interest income was $225.9 million, an increase of $60.3 million, or 36.4%, in comparison to the fourth quarter of 2021 primarily driven by rising interest rates resulting in increases in interest income from net loans, investment securities and other interest-earning assets of $81.6 million, $5.0 million and $3.5 million, respectively. Increases in the average balances for net loans and investment securities of $1,784.0 million and $408.4 million, respectively, driven in part by the Prudential Bancorp acquisition, also contributed to the increase in interest income. Interest expense from interest-bearing liabilities for the fourth quarter of 2022 increased by $29.8 million to $41.9 million in comparison to $12.1 million in the fourth quarter of 2021 primarily driven by rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings of $16.5 million and $13.3 million, respectively. An increase in the average balance for borrowings of $928.4 million in the fourth quarter of 2022 in comparison to the fourth quarter of 2021 also contributed to the increase in interest expense.

Total average interest-earning assets for the fourth quarter of 2022 was $24.8 billion, an increase of $99.2 million from the third quarter of 2022 primarily driven by the aforementioned increases in average net loans of $440.7 million, partially offset by decreases in average investment securities and average other interest-earning assets of $169.8 million and $171.9 million, respectively.

Total average interest-earning assets for the fourth quarter of 2022 increased by $516.9 million from the fourth quarter of 2021 driven in part by the Prudential Bancorp acquisition. Average net loans for the fourth quarter of 2022 were $20.0 billion, an increase of $1.8 billion from the same period in 2021. Included in average net loans for the fourth quarter of 2022 were Paycheck Protection Program ("PPP") loans with an average balance of $25.5 million, a decrease of $409.5 million from the fourth quarter of 2021. Compared to the fourth quarter of 2021, average other interest-earning assets decreased $1,649.6 million and average investment securities increased $408.4 million.

Total average interest-bearing liabilities increased $130.7 million, to $15.7 billion, in the fourth quarter of 2022 in comparison to $15.6 billion in the third quarter of 2022 driven by an increase in the average balance for borrowings of $666.2 million, partially offset by a decrease in the average balance for total interest-bearing deposits of $535.4 million.

Total average interest-bearing liabilities for the fourth quarter of 2022 increased $285.0 million in comparison to $15.5 billion in the fourth quarter of 2021, driven by an increase in the average balance for borrowings of $928.4 million, partially offset by a decrease in the average balance for total interest-bearing deposits of $643.5 million.

Asset Quality

In the fourth quarter of 2022, a provision for credit losses of $14.5 million was recorded in comparison to a provision for credit losses of $19.0 million in the third quarter of 2022, and a negative provision for credit losses of $5.0 million in the fourth quarter of 2021. Included in the third quarter of 2022 provision for credit losses was a CECL Day 1 provision for credit losses of $8.0 million for the acquired Prudential Bancorp loan portfolio. Excluding the CECL Day 1 Provision, the third quarter of 2022 provision for credit losses was $11.0 million. Excluding the CECL Day 1 Provision, the linked-quarter increase in the provision for credit losses of $3.5 million was primarily due to loan growth and changes to the macroeconomic outlook.

Non-performing assets were $177.7 million, or 0.66% of total assets, at December 31, 2022, in comparison to $198.6 million, or 0.76% at September 30, 2022, and $153.9 million, or 0.60% of total assets, at December 31, 2021.

Net charge-offs for the fourth quarter of 2022 were 0.23% of total average loans in comparison to 0.01% and 0.07% in the third quarter of 2022 and the fourth quarter of 2021, respectively. Net charge-offs of $11.7 million for the fourth quarter of 2022 were primarily due to a charge-off for a commercial office loan due to credit-related concerns.

Non-interest Income

Non-interest income before investment securities gains in the fourth quarter of 2022 was $54.3 million, a decrease of $4.9 million, or 8.3%, from the third quarter of 2022. The decrease in non-interest income was driven primarily by decreases in mortgage banking income, commercial customer swap fees, reflected in capital markets, overdraft fees and cash management fees of $1.6 million, $1.3 million, $1.1 million and $0.7 million, respectively.

Compared to the fourth quarter of 2021, non-interest income before investment securities gains in the fourth quarter of 2022 decreased $9.6 million, or 15.0%, from $63.9 million. The decrease in non-interest income was primarily due to decreases of $5.1 million in mortgage banking income, $3.8 million in other income, primarily due to a decline from equity method investments of $4.1 million, and $0.8 million in wealth management revenues.

Non-interest Expense

Non-interest expense, excluding merger-related expenses of $1.9 million, was $166.6 million in the fourth quarter of 2022, an increase of $4.0 million, or 2.5%, compared to $162.6 million, excluding merger-related expenses of $7.0 million, in the third quarter of 2022. The increase was primarily due to increases of $1.5 million in other outside services expense, $0.6 million in professional fees, $0.5 million in marketing expense, and $1.6 million for a contingent liability, $0.8 million for branch-related closures and $0.6 million in fraud-related losses which are reflected in other non-interest expenses, partially offset by a $1.6 million decrease in salaries and employee benefits expense.

Compared to the fourth quarter of 2021, non-interest expense, excluding merger-related expenses of $1.9 million, increased $12.5 million, or 8.1%, in the fourth quarter of 2022 primarily due to increases of $7.2 million in salaries and employee benefits expense, $1.2 million in other outside services expense, $1.0 million in professional fees, $0.9 million in marketing expense, $0.8 million in data processing and software expense, $0.5 million in intangible asset amortization expense related to the acquisition of Prudential Bancorp, and $0.8 million for branch-related closures reflected in other non-interest expense.

Income Tax Expense

For the full-year 2022, the effective tax rate was 17.3%, in comparison 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 Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 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 share data, per-share data and percentages
	Three months ended
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
		2022			2022			2022			2022			2021
Ending Balances
Investments	$	3,968,023		$	3,936,694		$	4,117,801		$	4,288,674		$	4,167,774
Net loans		20,279,547			19,695,199			18,920,950			18,476,119			18,325,350
Total assets		26,931,702			26,146,042			25,252,686			25,598,310			25,796,398
Deposits		20,649,538			21,376,554			21,143,866			21,541,174			21,573,499
Shareholders' equity		2,579,757			2,471,159			2,471,093			2,569,535			2,712,680

Average Balances
Investments	$	3,936,579		$	4,254,216		$	4,216,507		$	4,228,827		$	3,980,045
Net loans		20,004,513			19,563,825			18,637,175			18,383,118			18,220,550
Total assets		26,386,355			26,357,095			25,578,432			25,622,462			26,136,536
Deposits		21,027,656			21,788,052			21,523,713			21,480,183			21,876,938
Shareholders' equity		2,489,148			2,604,057			2,531,346			2,688,834			2,713,198

Income Statement
Net interest income	$	225,911		$	215,582		$	178,831		$	161,310		$	165,613
Provision for credit losses		14,513			18,958			1,500			(6,950	)		(5,000	)
Non-interest income		54,321			59,162			58,391			55,256			63,881
Non-interest expense		168,462			169,558			149,730			145,978			154,019
Income before taxes		97,257			86,228			85,992			77,538			80,475
Net income available to common shareholders		79,271			68,309			67,427			61,726			59,325
Pre-provision net revenue⁽¹⁾		115,049			113,631			89,384			71,842			77,837

Per Share
Net income available to common shareholders (basic)	$	0.47		$	0.41		$	0.42		$	0.38		$	0.37
Net income available to common shareholders (diluted)	$	0.47		$	0.40		$	0.42		$	0.38		$	0.37
Operating net income available to common shareholders⁽¹⁾	$	0.48		$	0.48		$	0.42		$	0.38		$	0.37
Cash dividends	$	0.21		$	0.15		$	0.15		$	0.15		$	0.22
Common shareholders' equity	$	14.24		$	13.61		$	14.15		$	14.79		$	15.70
Common shareholders' equity (tangible)⁽¹⁾	$	10.90		$	10.26		$	10.81		$	11.44		$	12.35
Weighted average shares (basic)		167,504			167,353			160,920			160,588			161,210
Weighted average shares (diluted)		169,136			168,781			162,075			161,911			162,355

⁽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
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
		2022			2022			2022			2022			2021
Asset Quality
Net (recoveries) charge offs to average loans		0.23	%		0.01	%		(0.08	) %		(0.02	) %		0.07	%
Non-performing loans to total loans		0.85	%		0.98	%		0.92	%		0.87	%		0.83	%
Non-performing assets to total assets		0.66	%		0.76	%		0.71	%		0.64	%		0.60	%
ACL - loans⁽¹⁾ to total loans		1.33	%		1.35	%		1.31	%		1.32	%		1.36	%
ACL - loans⁽¹⁾ to non-performing loans		157	%		138	%		143	%		151	%		164	%

Asset Quality, excluding PPP⁽²⁾⁽³⁾
Net (recoveries) charge offs to adjusted average loans		0.23	%		0.01	%		(0.08	) %		(0.02	) %		0.07	%
Non-performing loans to total adjusted loans		0.85	%		0.98	%		0.92	%		0.88	%		0.84	%
ACL - loans⁽¹⁾ to total adjusted loans		1.33	%		1.36	%		1.32	%		1.33	%		1.38	%

Profitability
Return on average assets		1.23	%		1.07	%		1.10	%		1.02	%		0.94	%
Operating return on average assets⁽²⁾		1.26	%		1.25	%		1.11	%		1.02	%		0.94	%
Return on average common shareholders' equity		13.70	%		11.24	%		11.57	%		10.03	%		9.34	%
Return on average common shareholders' equity (tangible)⁽²⁾		18.59	%		17.31	%		15.23	%		12.88	%		11.89	%
Net interest margin		3.69	%		3.54	%		3.04	%		2.78	%		2.77	%
Efficiency ratio⁽²⁾		58.1	%		57.8	%		61.4	%		65.8	%		65.2	%
Non-interest expenses to total average assets		2.53	%		2.55	%		2.35	%		2.31	%		2.34	%
Operating non-interest expenses to total average assets⁽²⁾		2.48	%		2.43	%		2.32	%		2.29	%		2.30	%

Capital Ratios
Tangible common equity ratio ("TCE")⁽²⁾		6.9	%		6.7	%		7.0	%		7.3	%		7.8	%
TCE ratio, (excluding AOCI)⁽²⁾⁽⁵⁾		8.2	%		8.3	%		8.2	%		7.9	%		7.8	%
Tier 1 leverage ratio⁽⁴⁾		9.4	%		9.2	%		9.1	%		8.9	%		8.6	%
Common equity Tier 1 capital ratio⁽⁴⁾		10.0	%		10.0	%		9.9	%		10.0	%		9.9	%
Tier 1 risk-based capital ratio⁽⁴⁾		10.8	%		10.9	%		10.8	%		10.9	%		10.9	%
Total risk-based capital ratio⁽⁴⁾		13.5	%		13.6	%		13.7	%		13.8	%		14.1	%

(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) Asset quality information excluding PPP loans.
(4) Regulatory capital ratios as of December 31, 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
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Sep 30		Dec 31
		2022			2022			2022			2022			2021		2022		2021
ASSETS
Cash and due from banks	$	126,898		$	143,465		$	158,605		$	161,462		$	172,276		(11.5	) %	(26.3	) %
Other interest-earning assets		685,209			467,164			383,715			1,054,232			1,523,973		46.7	%	(55.0	) %
Loans held for sale		7,264			14,411			17,528			27,675			35,768		(49.6	) %	(79.7	) %
Investment securities		3,968,023			3,936,694			4,117,801			4,288,674			4,167,774		0.8	%	(4.8	) %
Net loans		20,279,547			19,695,199			18,920,950			18,476,119			18,325,350		3.0	%	10.7	%
Less: ACL - loans⁽¹⁾		(269,366	)		(266,838	)		(248,564	)		(243,705	)		(249,001	)	(0.9	) %	(8.2	) %
Loans, net		20,010,181			19,428,361			18,672,386			18,232,414			18,076,349		3.0	%	10.7	%
Net, premises and equipment		225,141			221,496			211,639			218,257			220,357		1.6	%	2.2	%
Accrued interest receivable		91,579			72,821			64,457			55,102			57,451		25.8	%	59.4	%
Goodwill and intangible assets		560,824			561,495			537,700			537,877			538,053		(0.1	) %	4.2	%
Other assets		1,256,583			1,300,135			1,088,855			1,022,617			1,004,397		(3.3	) %	25.1	%
Total Assets	$	26,931,702		$	26,146,042		$	25,252,686		$	25,598,310		$	25,796,398		3.0	%	4.4	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits	$	20,649,538		$	21,376,554		$	21,143,866		$	21,541,174		$	21,573,499		(3.4	) %	(4.3	) %
Borrowings		2,871,207			1,424,681			1,013,315			1,008,934			1,038,109		101.5	%	N/M
Other liabilities		831,200			873,648			624,412			478,667			472,110		(4.9	) %	76.1	%
Total Liabilities		24,351,945			23,674,883			22,781,593			23,028,775			23,083,718		2.9	%	5.5	%
Shareholders' equity		2,579,757			2,471,159			2,471,093			2,569,535			2,712,680		4.4	%	(4.9	) %
Total Liabilities and Shareholders' Equity	$	26,931,702		$	26,146,042		$	25,252,686		$	25,598,310		$	25,796,398		3.0	%	4.4	%

LOANS, DEPOSITS AND BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage	$	7,693,835		$	7,554,509		$	7,417,036		$	7,289,376		$	7,279,080		1.8	%	5.7	%
Commercial and industrial		4,452,606			4,208,775			4,098,552			3,992,285			3,906,791		5.8	%	14.0	%
Real estate - residential mortgage		4,737,279			4,574,228			4,203,827			3,946,741			3,846,750		3.6	%	23.2	%
Real estate - home equity		1,102,838			1,110,103			1,108,808			1,098,171			1,118,248		(0.7	) %	(1.4	) %
Real estate - construction		1,269,925			1,273,097			1,177,446			1,210,340			1,139,779		(0.2	) %	11.4	%
Consumer		699,179			633,666			538,747			481,551			464,657		10.3	%	50.5	%
Equipment lease financing		260,143			255,060			254,897			253,521			236,344		2.0	%	10.1	%
Other⁽²⁾		43,344			53,671			49,214			39,857			32,448		(19.2	) %	33.6	%
Net loans before PPP		20,259,149			19,663,109			18,848,527			18,311,842			18,024,097		3.0	%	12.4	%
PPP		20,398			32,090			72,423			164,277			301,253		(36.4	) %	(93.2	) %
Total Net Loans	$	20,279,547		$	19,695,199		$	18,920,950		$	18,476,119		$	18,325,350		3.0	%	10.7	%
Deposits, by type:
Noninterest-bearing demand	$	7,006,388		$	7,372,896		$	7,530,777		$	7,528,391		$	7,370,963		(5.0	) %	(4.9	) %
Interest-bearing demand		5,410,903			5,676,600			5,403,805			5,625,286			5,819,539		(4.7	) %	(7.0	) %
Savings		6,434,621			6,563,003			6,406,051			6,479,196			6,403,995		(2.0	) %	0.5	%
Total demand and savings		18,851,912			19,612,499			19,340,633			19,632,873			19,594,497		(3.9	) %	(3.8	) %
Brokered		208,416			226,883			243,172			248,833			251,526		(8.1	) %	(17.1	) %
Time		1,589,210			1,537,172			1,560,061			1,659,468			1,727,476		3.4	%	(8.0	) %
Total Deposits	$	20,649,538		$	21,376,554		$	21,143,866		$	21,541,174		$	21,573,499		(3.4	) %	(4.3	) %
Borrowings, by type:
Federal funds purchased	$	191,000		$	136,000		$	20,000		$	—		$	—		40.4	%	N/M
Federal Home Loan Bank advances		1,250,000			265,500			—			—			—		N/M		N/M
Senior debt and subordinated debt		539,634			539,461			555,748			555,594			620,406		—	%	(13.0	) %
Other borrowings		890,573			483,720			437,567			453,340			417,703		84.1	%	113.2	%
Total Borrowings	$	2,871,207		$	1,424,681		$	1,013,315		$	1,008,934		$	1,038,109		101.5	%	N/M


N/M - Not meaningful
(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.

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands, except per share
	Three Months Ended															% Change from				Year Ended
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Sep 30		Dec 31		Dec 31
		2022			2022			2022			2022			2021		2022		2021			2022			2021		% Change
Interest Income:
Interest income	$	267,847		$	233,691		$	190,299		$	173,001		$	177,724		14.6	%	50.7	%	$	864,838		$	723,412		19.5	%
Interest expense		41,936			18,109			11,468			11,691			12,111		131.6	%	N/M			83,204			59,682		39.4	%
Net Interest Income		225,911			215,582			178,831			161,310			165,613		4.8	%	36.4	%		781,634			663,730		17.8	%
Provision for credit losses		14,513			18,958			1,500			(6,950	)		(5,000	)	(23.4	) %	N/M			28,021			(14,600	)	N/M
Net Interest Income after Provision		211,398			196,624			177,331			168,260			170,613		7.5	%	23.9	%		753,613			678,330		11.1	%
Non-Interest Income:
Commercial banking:
Merchant and card		7,223			7,601			7,355			6,097			6,588		(5.0	) %	9.6	%		28,276			26,121		8.3	%
Cash management		5,756			6,483			6,062			5,428			5,318		(11.2	) %	8.2	%		23,729			20,865		13.7	%
Capital markets		2,627			4,060			3,893			1,676			2,982		(35.3	) %	(11.9	) %		12,256			9,381		30.6	%
Other commercial banking		2,998			2,664			3,049			2,807			3,592		12.5	%	(16.5	) %		11,518			12,322		(6.5	) %
Total commercial banking		18,604			20,808			20,359			16,008			18,480		(10.6	) %	0.7	%		75,779			68,689		10.3	%
Consumer banking:
Card		6,331			6,278			6,067			5,796			5,953		0.8	%	6.3	%		24,472			23,505		4.1	%
Overdraft		3,364			4,463			3,881			3,772			3,896		(24.6	) %	(13.7	) %		15,480			12,844		20.5	%
Other consumer banking		2,380			2,534			2,524			2,106			2,280		(6.1	) %	4.4	%		9,544			9,195		3.8	%
Total consumer banking		12,075			13,275			12,472			11,674			12,129		(9.0	) %	(0.4	) %		49,496			45,544		8.7	%
Wealth management		17,531			17,610			18,274			19,428			18,285		(0.4	) %	(4.1	) %		72,843			71,798		1.5	%
Mortgage banking		2,140			3,720			3,768			4,576			7,243		(42.5	) %	(70.5	) %		14,204			33,576		(57.7	) %
Other		3,972			3,802			3,510			3,551			7,739		4.5	%	(48.7	) %		14,835			20,622		(28.1	) %
Non-interest income before investment securities gains (losses)		54,322			59,215			58,383			55,237			63,876		(8.3	) %	(15.0	) %		227,157			240,229		(5.4	) %
Investment securities gains (losses), net		(1	)		(53	)		8			19			5		98.1	%	(120.0	) %		(27	)		33,516		(100.1	) %
Total Non-Interest Income		54,321			59,162			58,391			55,256			63,881		(8.2	) %	(15.0	) %		227,130			273,745		(17.0	) %
Non-Interest Expense:
Salaries and employee benefits		92,733			94,283			85,404			84,464			85,506		(1.6	) %	8.5	%		356,884			329,138		8.4	%
Data processing and software		15,448			15,807			14,685			14,315			14,612		(2.3	) %	5.7	%		60,255			56,440		6.8	%
Net occupancy		14,061			14,025			13,587			14,522			14,366		0.3	%	(2.1	) %		56,195			53,799		4.5	%
Other outside services		10,860			9,361			8,764			8,167			9,637		16.0	%	12.7	%		37,152			34,194		8.7	%
Equipment		3,640			3,548			3,422			3,423			3,539		2.6	%	2.9	%		14,033			13,807		1.6	%
FDIC insurance		3,219			3,158			2,961			3,209			3,032		1.9	%	6.2	%		12,547			10,665		17.6	%
Professional fees		2,945			2,373			2,013			1,792			1,946		24.1	%	51.3	%		9,123			9,647		(5.4	) %
Marketing		2,380			1,859			1,326			1,320			1,477		28.0	%	61.1	%		6,885			5,275		30.5	%
Intangible amortization		688			690			177			176			146		(0.3	) %	N/M			1,731			589		N/M
Debt extinguishment		—			—			—			—			674		N/M		N/M			—			33,249		(100.0	) %
Merger-related expenses		1,894			7,006			1,027			401			—		(73.0	) %	N/M			10,328			—		N/M
Other		20,594			17,448			16,364			14,189			19,084		18.0	%	7.9	%		68,595			71,027		(3.4	) %
Total Non-Interest Expense		168,462			169,558			149,730			145,978			154,019		(0.6	) %	9.4	%		633,728			617,830		2.6	%
Income Before Income Taxes		97,257			86,228			85,992			77,538			80,475		12.8	%	20.9	%		347,015			334,245		3.8	%
Income tax expense		15,424			15,357			16,003			13,250			18,588		0.4	%	(17.0	) %		60,034			58,748		2.2	%
Net Income		81,833			70,871			69,989			64,288			61,887		15.5	%	32.2	%		286,981			275,497		4.2	%
Preferred stock dividends		(2,562	)		(2,562	)		(2,562	)		(2,562	)		(2,562	)	—	%	—	%		(10,248	)		(10,277	)	0.3	%
Net Income Available to Common Shareholders	$	79,271		$	68,309		$	67,427		$	61,726		$	59,325		16.0	%	33.6	%	$	276,733		$	265,220		4.3	%




	Three Months Ended															% Change from				Year Ended
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Sep 30		Dec 31		Dec 31
		2022			2022			2022			2022			2021		2022		2021			2022			2021		% Change
PER SHARE:
Net income available to common shareholders:
Basic	$	0.47		$	0.41		$	0.42		$	0.38		$	0.37		14.6	%	27.0	%	$	1.69		$	1.63		3.7	%
Diluted	$	0.47		$	0.40		$	0.42		$	0.38		$	0.37		17.5	%	27.0	%	$	1.67		$	1.62		3.1	%
Cash dividends	$	0.21		$	0.15		$	0.15		$	0.15		$	0.22		40.0	%	(4.5	) %	$	0.66		$	0.64		3.1	%

Weighted average shares (basic)		167,504			167,353			160,920			160,588			161,210		0.1	%	3.9	%		164,119			162,233		1.2	%
Weighted average shares (diluted)		169,136			168,781			162,075			161,911			162,355		0.2	%	4.2	%		165,472			163,307		1.3	%

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

Interest-earning assets:
Net loans	$	20,004,513		$	241,453		4.80	%	$	19,563,825		$	207,343		4.21	%	$	18,220,550		$	159,057		3.47	%
Investment securities		4,330,635			27,781		2.56	%		4,500,461			28,022		2.49	%		3,922,197			22,424		2.29	%
Loans held for sale		9,264			171		7.39	%		9,098			194		8.51	%		35,235			333		3.77	%
Other interest-earning assets		450,818			2,752		2.43	%		622,673			2,103		1.34	%		2,100,392			(905	)	(0.19	) %
Total Interest-Earning Assets		24,795,230			272,157		4.36	%		24,696,057			237,662		3.83	%		24,278,374			180,909		2.96	%

Noninterest-Earning assets:
Cash and due from banks		149,472								152,349								211,958
Premises and equipment		223,245								223,880								226,319
Other assets		1,488,684								1,545,812								1,677,028
Less: ACL - loans⁽²⁾		(270,276	)							(261,003	)							(257,143	)
Total Assets	$	26,386,355							$	26,357,095							$	26,136,536

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-Bearing liabilities:
Demand deposits	$	5,479,443		$	4,589		0.33	%	$	5,708,059		$	1,886		0.13	%	$	5,933,780		$	756		0.05	%
Savings deposits		6,466,775			11,539		0.71	%		6,681,713			3,414		0.20	%		6,413,638			992		0.06	%
Brokered deposits		215,729			1,947		3.58	%		247,105			1,346		2.16	%		256,192			220		0.34	%
Time deposits		1,554,885			4,302		1.10	%		1,615,384			3,404		0.84	%		1,756,672			3,928		0.89	%
Total Interest-Bearing Deposits		13,716,832			22,377		0.65	%		14,252,261			10,050		0.28	%		14,360,282			5,896		0.16	%

Borrowings		2,025,522			19,559		3.83	%		1,359,348			8,060		2.38	%		1,097,095			6,216		2.29	%
Total Interest-Bearing Liabilities		15,742,354			41,936		1.06	%		15,611,609			18,110		0.47	%		15,457,377			12,112		0.31	%

Noninterest-Bearing liabilities:
Demand deposits		7,310,824								7,535,791								7,516,656
Other		844,029								605,638								449,305
Total Liabilities		23,897,207								23,753,038								23,423,338
Total Deposits/Cost of Deposits		21,027,656					0.42	%		21,788,052					0.18	%		21,876,938					0.11	%
Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")		23,053,178					0.72	%		23,147,400					0.31	%		22,974,033					0.21	%

Shareholders' equity		2,489,148								2,604,057								2,713,198
Total Liabilities and Shareholders' Equity	$	26,386,355							$	26,357,095							$	26,136,536

Net interest income/net interest margin (fully taxable equivalent)					230,221		3.69	%					219,552		3.54	%					168,797		2.77	%
Tax equivalent adjustment					(4,310	)							(3,970	)							(3,184	)
Net Interest Income				$	225,911							$	215,582							$	165,613


(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 BORROWINGS DETAIL (UNAUDITED):
dollars in thousands
	Three months ended										% Change from
	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Dec 31
		2022		2022		2022		2022		2021	2022		2021
Loans, by type:
Real estate - commercial mortgage	$	7,696,997	$	7,566,259	$	7,340,417	$	7,294,914	$	7,157,906	1.7	%	7.5	%
Commercial and industrial		4,347,406		4,201,399		4,040,587		3,986,900		3,898,559	3.5	%	11.5	%
Real estate - residential mortgage		4,643,784		4,485,649		4,052,666		3,887,428		3,773,156	3.5	%	23.1	%
Real estate - home equity		1,106,325		1,099,487		1,118,494		1,106,319		1,122,042	0.6	%	(1.4	) %
Real estate - construction		1,209,998		1,268,590		1,188,932		1,137,649		1,117,592	(4.6	) %	8.3	%
Consumer		679,108		604,634		485,095		471,129		462,346	12.3	%	46.9	%
Equipment lease financing		255,291		252,810		253,659		236,388		238,349	1.0	%	7.1	%
Other⁽¹⁾		40,075		35,823		42,476		36,277		15,558	11.9	%	N/M
Net loans before PPP		19,978,984		19,514,651		18,522,326		18,157,004		17,785,508	2.4	%	12.3	%
PPP		25,529		49,174		114,849		226,114		435,042	(48.1	) %	(94.1	) %
Total Net Loans	$	20,004,513	$	19,563,825	$	18,637,175	$	18,383,118	$	18,220,550	2.3	%	9.8	%

Deposits, by type:
Noninterest-bearing demand	$	7,310,824	$	7,535,791	$	7,647,618	$	7,431,235	$	7,516,656	(3.0	) %	(2.7	) %
Interest-bearing demand		5,479,443		5,708,059		5,597,975		5,664,987		5,933,780	(4.0	) %	(7.7	) %
Savings		6,466,775		6,681,713		6,425,634		6,436,548		6,413,638	(3.2	) %	0.8	%
Total demand and savings		19,257,042		19,925,563		19,671,227		19,532,770		19,864,074	(3.4	) %	(3.1	) %
Brokered		215,729		247,105		244,200		250,350		256,192	(12.7	) %	(15.8	) %
Time		1,554,885		1,615,384		1,608,286		1,697,063		1,756,672	(3.7	) %	(11.5	) %
Total Deposits	$	21,027,656	$	21,788,052	$	21,523,713	$	21,480,183	$	21,876,938	(3.5	) %	(3.9	) %

Borrowings, by type:
Federal funds purchased	$	261,737	$	96,965	$	2,857	$	—	$	—	N/M		N/M
Federal Home Loan Bank advances		564,692		206,152		—		—		—	N/M		N/M
Senior debt and subordinated debt		539,550		554,735		555,701		608,961		622,108	(2.7	) %	(13.3	) %
Other borrowings		659,543		501,496		445,261		424,854		474,987	31.5	%	38.9	%
Total Borrowings	$	2,025,522	$	1,359,348	$	1,003,819	$	1,033,815	$	1,097,095	49.0	%	84.6	%



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

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
	Year Ended December 31
	2022								2021
	Average						Yield/		Average						Yield/
	Balance			Interest⁽¹⁾			Rate		Balance			Interest⁽¹⁾			Rate
ASSETS

Interest-earning assets:
Net loans	$	19,152,740		$	765,603		4.00	%	$	18,627,787		$	644,387		3.46	%
Investment securities		4,364,627			106,115		2.43	%		3,673,250			86,325		2.35	%
Loans held for sale		14,974			866		5.78	%		39,211			1,302		3.32	%
Other interest-earning assets		814,731			7,249		0.89	%		2,014,954			3,694		0.18	%
Total Interest-Earning Assets		24,347,072			879,833		3.61	%		24,355,202			735,708		3.02	%

Noninterest-Earning assets:
Cash and due from banks		156,050								165,942
Premises and equipment		220,982								228,708
Other assets		1,505,277								1,686,053
Less: ACL - loans⁽²⁾		(257,897	)							(265,572	)
Total Assets	$	25,971,484							$	26,170,333

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-Bearing liabilities:
Demand deposits	$	5,593,942		$	8,219		0.15	%	$	5,979,479		$	3,662		0.06	%
Savings deposits		6,458,165			16,642		0.26	%		6,306,967			4,936		0.08	%
Brokered deposits		262,359			4,097		1.56	%		286,901			1,096		0.38	%
Time deposits		1,617,804			14,871		0.92	%		1,939,446			20,311		1.05	%
Total Interest-Bearing Deposits		13,932,270			43,829		0.31	%		14,512,793			30,005		0.21	%

Total borrowings		1,358,357			39,375		2.89	%		1,297,963			29,677		2.29	%
Total Interest-Bearing Liabilities		15,290,627			83,204		0.54	%		15,810,756			59,682		0.38	%

Noninterest-Bearing liabilities:
Demand deposits		7,522,304								7,211,153
Other		598,230								462,478
Total Liabilities		23,411,161								23,484,387
Total Deposits/Cost of Deposits		21,454,574					0.20	%		21,723,946					0.14	%
Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")		22,812,931					0.36	%		23,021,909					0.26	%

Shareholders' equity		2,560,323								2,685,946
Total Liabilities and Shareholders' Equity	$	25,971,484							$	26,170,333

Net interest income/net interest margin (fully taxable equivalent)					796,629		3.27	%					676,026		2.78	%
Tax equivalent adjustment					(14,995	)							(12,296	)
Net Interest Income				$	781,634							$	663,730

(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 BORROWINGS DETAIL (UNAUDITED):
dollars in thousands

	Year Ended December 31
		2022		2021		% Change
Loans, by type:
Real estate - commercial mortgage	$	7,523,806	$	7,149,712		5.2	%
Commercial and industrial		4,126,916		3,932,351		4.9	%
Real estate - residential mortgage		4,261,527		3,501,072		21.7	%
Real estate - home equity		1,101,142		1,141,042		(3.5	) %
Real estate - construction		1,178,550		1,078,350		9.3	%
Consumer		569,305		456,427		24.7	%
Equipment lease financing		249,595		252,104		(1.0	) %
Other⁽¹⁾		38,682		(3,776	)	N/M
Net loans before PPP		19,049,523		17,507,282		8.8	%
PPP		103,217		1,120,505		(90.8	) %
Total Net Loans	$	19,152,740	$	18,627,787		2.8	%

Deposits, by type:
Noninterest-bearing demand	$	7,522,304	$	7,211,153		4.3	%
Interest-bearing demand		5,593,942		5,979,479		(6.4	) %
Savings		6,458,165		6,306,967		2.4	%
Total demand and savings		19,574,411		19,497,599		0.4	%
Brokered		262,359		286,901		(8.6	) %
Time		1,617,804		1,939,446		(16.6	) %
Total Deposits	$	21,454,574	$	21,723,946		(1.2	) %

Borrowings, by type:
Federal funds purchased	$	91,125	$	—		N/M
Federal Home Loan Bank advances		194,295		126,677		53.4	%
Senior debt and subordinated debt		564,337		657,386		(14.2	) %
Other borrowings		508,600		513,900		(1.0	) %
Total Borrowings	$	1,358,357	$	1,297,963		4.7	%


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															Year Ended
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Dec 31			Dec 31
		2022			2022			2022			2022			2021			2022			2021
Allowance for credit losses related to net loans:
Balance at beginning of period	$	266,838		$	248,564		$	243,705		$	249,001		$	256,727		$	249,001		$	277,567

CECL Day 1 provision expense		—			7,954			—			—			—			7,954			—

Initial purchased credit deteriorated loans		—			1,135			—			—			—			1,135			—

Loans charged off:
Commercial and industrial		(179	)		(1,783	)		(201	)		(227	)		(9,417	)		(2,390	)		(15,337	)
Real estate - commercial mortgage		(12,235	)		(86	)		—			(152	)		(369	)		(12,473	)		(8,726	)
Consumer and home equity		(1,311	)		(1,172	)		(877	)		(1,052	)		(828	)		(4,412	)		(3,309	)
Real estate - residential mortgage		—			—			(66	)		—			—			(66	)		(1,290	)
Real estate - construction		—			—			—			—			—			—			(39	)
Equipment lease financing and other		(505	)		(683	)		(474	)		(469	)		(380	)		(2,131	)		(2,251	)
Total loans charged off		(14,230	)		(3,724	)		(1,618	)		(1,900	)		(10,994	)		(21,472	)		(30,952	)
Recoveries of loans previously charged off:
Commercial and industrial		961			2,213			739			1,980			5,795			5,893			9,587
Real estate - commercial mortgage		183			29			3,536			112			1,007			3,860			2,474
Consumer and home equity		683			682			762			454			767			2,581			2,345
Real estate - residential mortgage		10			101			92			222			89			425			375
Real estate - construction		530			—			12			32			77			574			1,412
Equipment lease financing and other		132			247			226			154			283			759			953
Recoveries of loans previously charged off		2,499			3,272			5,367			2,954			8,018			14,092			17,146
Net loans recovered (charged off)		(11,731	)		(452	)		3,749			1,054			(2,976	)		(7,380	)		(13,806	)
Provision for credit losses		14,259			9,637			1,110			(6,350	)		(4,750	)		18,656			(14,760	)
Balance at end of period	$	269,366		$	266,838		$	248,564		$	243,705		$	249,001		$	269,366		$	249,001
Net (recoveries) charge offs to average loans		0.23	%		0.01	%		(0.08	) %		(0.02	) %		0.07	%		0.04	%		0.07	%

Provision for credit losses related to OBS Credit Exposures
Provision for credit losses	$	254		$	1,367		$	390		($	600	)	($	250	)

NON-PERFORMING ASSETS:
Non-accrual loans	$	144,443		$	178,204		$	162,530		$	136,799		$	143,666
Loans 90 days past due and accruing		27,463			14,559			11,016			24,182			8,453
Total non-performing loans		171,906			192,763			173,546			160,981			152,119
Other real estate owned		5,790			5,877			4,786			2,014			1,817
Total non-performing assets	$	177,696		$	198,640		$	178,332		$	162,995		$	153,936

NON-PERFORMING LOANS, BY TYPE:
Commercial and industrial	$	28,288		$	29,831		$	44,713		$	30,193		$	30,629
Real estate - commercial mortgage		72,634			96,281			59,940			64,190			54,044
Real estate - residential mortgage		46,509			41,597			42,922			39,308			39,399
Consumer and home equity		9,800			10,016			10,552			11,465			11,505
Real estate - construction		1,368			1,456			1,357			672			901
Equipment lease financing and other		13,307			13,582			14,062			15,153			15,641
Total non-performing loans	$	171,906		$	192,763		$	173,546		$	160,981		$	152,119

FULTON FINANCIAL CORPORATION
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
(dollars 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
		Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
			2022			2022			2022			2022			2021
Operating net income available to common shareholders
Net income available to common shareholders		$	79,271		$	68,309		$	67,427		$	61,726		$	59,325
Plus: Core deposit intangible amortization			514			514			—			—			—
Plus: Merger-related expenses			1,894			7,006			1,027			401			—
Plus: CECL Day 1 Provision expense			—			7,954			—			—			—
Less: Tax impact of adjustments			(506	)		(3,250	)		(216	)		(84	)		—
Operating net income available to common shareholders (numerator)		$	81,173		$	80,533		$	68,238		$	62,043		$	59,325

Weighted average shares (diluted) (denominator)			169,136			168,781			162,075			161,911			162,355

Operating net income available to common shareholders, per share (diluted)		$	0.48		$	0.48		$	0.42		$	0.38		$	0.37

Common shareholders' equity (tangible), per share
Shareholders' equity		$	2,579,757		$	2,471,159		$	2,471,093		$	2,569,535		$	2,712,680
Less: Preferred stock			(192,878	)		(192,878	)		(192,878	)		(192,878	)		(192,878	)
Less: Goodwill and intangible assets			(560,824	)		(561,495	)		(537,700	)		(537,877	)		(538,053	)
Tangible common shareholders' equity (numerator)		$	1,826,055		$	1,716,786		$	1,740,515		$	1,838,780		$	1,981,749

Shares outstanding, end of period (denominator)			167,599			167,399			161,057			160,669			160,490

Common shareholders' equity (tangible), per share		$	10.90		$	10.26		$	10.81		$	11.44		$	12.35

Operating return on average assets
Net income		$	81,833		$	70,871		$	69,989		$	64,288		$	61,887
Plus: Core deposit intangible amortization			514			514			—			—			—
Plus: Merger-related expenses			1,894			7,006			1,027			401			—
Plus: CECL Day 1 Provision expense			—			7,954			—			—			—
Less: Tax impact of adjustments			(506	)		(3,250	)		(216	)		(84	)		—
Operating net income (numerator)		$	83,735		$	83,095		$	70,800		$	64,605		$	61,887

Total average assets (denominator)		$	26,386,355		$	26,357,095		$	25,578,432		$	25,622,462		$	26,136,536

Operating return on average assets			1.26	%		1.25	%		1.11	%		1.02	%		0.94	%


Return on average common shareholders' equity (tangible)
Net income available to common shareholders		$	79,271		$	68,309		$	67,427		$	61,726		$	59,325
Plus: Intangible amortization			688			690			177			176			146
Plus: Merger-related expenses			1,894			7006			1027			401			—
Plus: CECL Day 1 Provision expense			—			7,954			—			—			—
Less: Tax impact of adjustments			(542	)		(3,287	)		(253	)		(122	)		(32	)
Operating net income available to common shareholders (numerator)		$	81,311		$	80,672		$	68,378		$	62,181		$	59,439

Average shareholders' equity		$	2,489,148		$	2,604,057		$	2,531,346		$	2,688,834		$	2,713,198
Less: Average preferred stock			(192,878	)		(192,878	)		(192,878	)		(192,878	)		(192,878	)
Less: Average goodwill and intangible assets			(561,219	)		(562,285	)		(537,786	)		(537,976	)		(536,638	)
Average tangible common shareholders' equity (denominator)		$	1,735,051		$	1,848,894		$	1,800,682		$	1,957,980		$	1,983,682

Return on average common shareholders' equity (tangible)			18.59	%		17.31	%		15.23	%		12.88	%		11.89	%


		Three months ended
		Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
			2022			2022			2022			2022			2021
Tangible common equity to tangible assets (TCE Ratio)
Shareholders' equity		$	2,579,757		$	2,471,159		$	2,471,093		$	2,569,535		$	2,712,680
Less: Preferred stock			(192,878	)		(192,878	)		(192,878	)		(192,878	)		(192,878	)
Less: Goodwill and intangible assets			(560,824	)		(561,495	)		(537,700	)		(537,877	)		(538,053	)
Tangible common shareholders' equity (numerator)		$	1,826,055		$	1,716,786		$	1,740,515		$	1,838,780		$	1,981,749

Total assets		$	26,931,702		$	26,146,042		$	25,252,686		$	25,598,310		$	25,796,398
Less: Goodwill and intangible assets			(560,824	)		(561,495	)		(537,700	)		(537,877	)		(538,053	)
Total tangible assets (denominator)		$	26,370,878		$	25,584,547		$	24,714,986		$	25,060,433		$	25,258,345

Tangible common equity to tangible assets			6.92	%		6.71	%		7.04	%		7.34	%		7.85	%

Tangible common equity to tangible assets (TCE Ratio) excluding AOCI
Shareholders' equity		$	2,579,757		$	2,471,159		$	2,471,093		$	2,569,535		$	2,712,680
Less: Preferred stock			(192,878	)		(192,878	)		(192,878	)		(192,878	)		(192,878	)
Less: Accumulated other comprehensive income (loss)			(385,476	)		(442,947	)		(304,210	)		(158,855	)		27,411
Less: Goodwill and intangible assets			(560,824	)		(561,495	)		(537,700	)		(537,877	)		(538,053	)
Tangible common shareholders' equity (numerator)		$	2,211,531		$	2,159,733		$	2,044,725		$	1,997,635		$	1,954,338

Total assets		$	26,931,702		$	26,146,042		$	25,252,686		$	25,598,310		$	25,796,398
Less: Goodwill and intangible assets			(560,824	)		(561,495	)		(537,700	)		(537,877	)		(538,053	)
Plus: AOCI - unrealized losses/(gains) on AFS investments securities			632,456			368,196			249,424			112,965			(40,444	)
Total tangible assets (denominator)		$	27,003,334		$	25,952,743		$	24,964,410		$	25,173,398		$	25,217,901

Tangible common equity to tangible assets, excluding AOCI			8.19	%		8.32	%		8.19	%		7.94	%		7.75	%

Efficiency ratio
Non-interest expense		$	168,462		$	169,558		$	149,730		$	145,978		$	154,019
Less: Amortization of tax credit investments			(696	)		(696	)		(696	)		(696	)		(1,547	)
Less: Merger-related expenses			(1,894	)		(7,006	)		(1,027	)		(401	)		—
Less: Intangible amortization			(688	)		(690	)		(177	)		(176	)		(146	)
Less: Debt extinguishment costs			—			—			—			—			(674	)
Non-interest expense (numerator)		$	165,184		$	161,166		$	147,830		$	144,705		$	151,652

Net interest income		$	225,911		$	215,582		$	178,831		$	161,310		$	165,613
Tax equivalent adjustment			4,310			3,970			3,427			3,288			3,184
Plus: Total non-interest income			54,321			59,162			58,391			55,256			63,881
Less: Investment securities (gains) losses, net			1			53			(8	)		(19	)		(5	)
Total revenue (denominator)		$	284,543		$	278,767		$	240,641		$	219,835		$	232,673

Efficiency ratio			58.1	%		57.8	%		61.4	%		65.8	%		65.2	%

Operating non-interest expenses to total average assets
Non-interest expense		$	168,462		$	169,558		$	149,730		$	145,978		$	154,019
Less: Amortization of tax credit investments			(696	)		(696	)		(696	)		(696	)		(1,547	)
Less: Intangible amortization			(688	)		(690	)		(177	)		(176	)		(146	)
Less: Merger-related expenses			(1,894	)		(7,006	)		(1,027	)		(401	)		—
Less: Debt extinguishment costs			—			—			—			—			(674	)
Non-interest expense (numerator)		$	165,184		$	161,166		$	147,830		$	144,705		$	151,652

Total average assets (denominator)		$	26,386,355		$	26,357,095		$	25,578,432		$	25,622,462		$	26,136,536

Operating non-interest expenses to total average assets			2.48	%		2.43	%		2.32	%		2.29	%		2.30	%


		Three months ended
		Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
			2022			2022			2022			2022			2021
Asset Quality, excluding PPP
Net loans recovered (charged-off) (numerator)		$	(11,731	)	$	(452	)	$	3,749		$	1,054		$	(2,976	)

Average net loans		$	20,004,513		$	19,563,825		$	18,637,175		$	18,383,118		$	18,220,550
Less: Average PPP loans			(25,529	)		(49,174	)		(114,849	)		(226,114	)		(435,042	)
Total adjusted average loans (denominator)		$	19,978,984		$	19,514,651		$	18,522,326		$	18,157,004		$	17,785,508

Net charge-offs (recoveries) to adjusted average loans			0.23	%		0.01	%		(0.08	) %		(0.02	) %		0.07	%

Non-performing loans (numerator)		$	171,906		$	192,763		$	173,546		$	160,981		$	152,119

Net loans		$	20,279,547		$	19,695,199		$	18,920,950		$	18,476,119		$	18,325,350
Less: PPP loans			(20,398	)		(32,090	)		(72,423	)		(164,277	)		(301,253	)
Total adjusted loans (denominator)		$	20,259,149		$	19,663,109		$	18,848,527		$	18,311,842		$	18,024,097

Non-performing loans to total adjusted loans			0.85	%		0.98	%		0.92	%		0.88	%		0.84	%

ACL - loans (numerator)		$	269,366		$	266,838		$	248,564		$	243,705		$	249,001

Net loans		$	20,279,547		$	19,695,199		$	18,920,950		$	18,476,119		$	18,325,350
Less: PPP loans			(20,398	)		(32,090	)		(72,423	)		(164,277	)		(301,253	)
Total adjusted loans (denominator)		$	20,259,149		$	19,663,109		$	18,848,527		$	18,311,842		$	18,024,097

ACL - loans to total adjusted loans			1.33	%		1.36	%		1.32	%		1.33	%		1.38	%

Pre-provision net revenue
Net interest income		$	225,911		$	215,582		$	178,831		$	161,310		$	165,613
Non-interest income			54,321			59,162			58,391			55,256			63,881
Less: Investment securities (gains) losses, net			1			53			(8	)		(19	)		(5	)
Total revenue		$	280,233		$	274,797		$	237,214		$	216,547		$	229,489

Non-interest expense		$	168,462		$	169,558		$	149,730		$	145,978		$	154,019
Less: Amortization on tax credit investments			(696	)		(696	)		(696	)		(696	)		(1,547	)
Less: Merger-related expenses			(1,894	)		(7,006	)		(1,027	)		(401	)		—
Less: Intangible amortization			(688	)		(690	)		(177	)		(176	)		(146	)
Less: Debt extinguishment			—			—			—			—			(674	)
Total non-interest expense		$	165,184		$	161,166		$	147,830		$	144,705		$	151,652

Pre-provision net revenue		$	115,049		$	113,631		$	89,384		$	71,842		$	77,837

Note: numbers may not sum due to rounding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230117006074/en/

Contacts

Media: Lacey Dean (717) 735-8688

Investor: Matt Jozwiak (717) 327-2657

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Fulton Financial Corporation Announces Fourth Quarter and 2022 Results

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