Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Fulton Financial Corporation Announces Fourth Quarter and Full-Year 2023 Results By: Fulton Financial Corporation via Business Wire January 16, 2024 at 16:50 PM EST Fulton Financial Corporation (NASDAQ: FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $61.7 million, or $0.37 per diluted share, for the fourth quarter of 2023, a decrease of $7.8 million, or 11.3%, in comparison to the third quarter of 2023. Operating net income available to common shareholders for the three months ended December 31, 2023 was $68.8 million, or $0.42 per diluted share(1). This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240116531563/en/ For the year ended December 31, 2023, net income available to common shareholders was $274.0 million, or $1.64 per diluted share, a decrease of $2.7 million, or 1.0%, in comparison to the same period in 2022. Operating net income available to common shareholders for the year-ended December 31, 2023 was $285.0 million, or $1.71 per diluted share(1). During the fourth quarter of 2023, the Corporation launched the "FultonFirst" initiative that is focused on evaluating and improving how Fulton operates. Approximately $3.2 million was recorded in the fourth quarter of 2023 related to this initiative. Additionally, the Corporation recognized a Federal Deposit Insurance Corporation ("FDIC") special assessment charge of $6.5 million. "2023 was an extraordinary year and we were pleased with our results," said Curtis J. Myers, Chairman and CEO of Fulton Financial Corporation. "Our team advanced our strategic objectives. We grew loans and deposits in a challenging environment, delivered enhancements to the customer experience, continued to operate with excellence and served our stakeholders well. Looking forward, 2024 is full of opportunity." Net Interest Income and Balance Sheet Net interest income for the fourth quarter of 2023 was $212.0 million, a decrease of $1.8 million in comparison to the third quarter of 2023. The net interest margin for the fourth quarter of 2023 decreased four basis points, to 3.36%, in comparison to 3.40% in the third quarter of 2023. (1) Financial measure derived by methods other than generally accepted accounting principles ("GAAP"). Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of the press release. The linked-quarter decrease in net interest income was primarily due to an increase in the rate on average interest-bearing deposits and a shift in the funding mix from noninterest-bearing demand deposits to interest-bearing deposits, partially offset by higher loan yields, a lower rate on borrowings and other interest-bearing liabilities, an increase in the average balance of net loans and a decrease in the average balance of borrowings and other interest-bearing liabilities. An 11 basis point increase in the yield on average net loans and an increase in the average balance of net loans of $134.5 million in the fourth quarter of 2023 drove an increase in interest income of $7.8 million to $338.1 million in comparison to $330.4 million in the third quarter of 2023. Interest expense on interest-bearing liabilities for the fourth quarter of 2023 increased by $9.6 million to $126.1 million in comparison to $116.5 million in the third quarter of 2023. The linked-quarter increase in interest expense in the fourth quarter of 2023 was primarily due to an increase in the rate on average interest-bearing deposits of 26 basis points, a decline of $232.3 million in the average balance of noninterest-bearing deposits and an increase in the average balance of interest-bearing deposits of $351.6 million in comparison to the third quarter of 2023, partially offset by a decrease in the rate on borrowings and other interest-bearing deposits of 16 basis points and a decrease in the average balance of borrowings and other interest-bearing deposits of $149.4 million. For the fourth quarter of 2023, net interest income was $212.0 million, a decrease of $13.9 million, or 6.2%, in comparison to the fourth quarter of 2022. Interest income for the fourth quarter of 2023 increased by $70.3 million to $338.1 million in comparison to $267.8 million in the fourth quarter of 2022, primarily driven by rising interest rates resulting in an increase in interest income from net loans of $70.1 million. Increases in the average balance of net loans of $1.3 billion and in yields on net loans of 103 basis points in the fourth quarter of 2023 compared to the fourth quarter of 2022 each contributed to the increase in interest income. Interest expense on interest-bearing liabilities for the fourth quarter of 2023 increased by $84.2 million to $126.1 million in comparison to $41.9 million in the fourth quarter of 2022, primarily driven by rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings and other interest-bearing liabilities of $74.3 million and $9.9 million, respectively. A decrease in the average balance of noninterest-bearing deposits of $1.9 billion and an increase in the average balances of interest-bearing deposits and borrowings and other interest-bearing liabilities of $2.3 billion and $516.2 million, respectively, in the fourth quarter of 2023 in comparison to the fourth quarter of 2022 also contributed to the increase in interest expense. Total average interest-earning assets for the fourth quarter of 2023 were $25.6 billion, an increase of $61.8 million from the third quarter of 2023 primarily driven by an increase in average net loans of $134.5 million, partially offset by a decrease in average investment securities of $76.8 million. Total average interest-earning assets for the fourth quarter of 2023 increased by $848.6 million from the fourth quarter of 2022. Average net loans for the fourth quarter of 2023 were $21.3 billion, an increase of $1.3 billion from the same period in 2022. Compared to the fourth quarter of 2022, average investment securities decreased $209.9 million and average other interest-earning assets decreased $192.8 million in the fourth quarter of 2023. Total average interest-bearing liabilities increased $202.2 million to $18.6 billion in the fourth quarter of 2023 in comparison to $18.4 billion in the third quarter of 2023. The increase in average interest-bearing liabilities was driven by an increase in the average balance of total interest-bearing deposits of $351.6 million, partially offset by a decrease in the average balance of borrowings and other interest-bearing liabilities of $149.4 million. Total average interest-bearing liabilities for the fourth quarter of 2023 increased $2.8 billion to $18.6 billion in comparison to $15.7 billion in the fourth quarter of 2022, driven by increases in the average balances of total interest-bearing deposits and borrowings and other interest-bearing liabilities of $2.3 billion and $0.5 billion, respectively. Asset Quality In the fourth quarter of 2023, a provision for credit losses of $9.8 million was recorded in comparison to $9.9 million in the third quarter of 2023 and $14.5 million in the fourth quarter of 2022. The provision for credit losses of $9.8 million recorded in the fourth quarter of 2023 was primarily due to loan growth and some weakening of credit metrics. Non-performing assets were $154.2 million, or 0.56% of total assets, at December 31, 2023, in comparison to $143.5 million, or 0.52% of total assets, at September 30, 2023, and $177.7 million, or 0.66% of total assets, at December 31, 2022. Net charge-offs for the fourth quarter of 2023 were 0.15% of total average loans in comparison to 0.10% and 0.23% in the third quarter of 2023 and the fourth quarter of 2022, respectively. Non-interest Income Non-interest income before investment securities gains (losses) in the fourth quarter of 2023 was $60.1 million, an increase of $4.2 million, or 7.4%, from the third quarter of 2023. The increase in non-interest income was primarily due to a $4.1 million linked-quarter net change from market movements in our commercial customer interest rate swap program resulting from the reference rate transition from the London Inter-Bank Offered Rate ("LIBOR") to the Secured Overnight Financing Rate ("SOFR"), reflected as an increase to other non-interest income. Additional contributors to the increase in non-interest income were increases of $1.4 million in commercial customer interest rate swap fee income, reflected in capital markets, and a $0.6 million increase in cash surrender value of life insurance policies, reflected in other income, partially offset by decreases in mortgage banking income, income from equity method investments, reflected in other income, and merchant and card income of $0.9 million, $0.7 million and $0.6 million, respectively. Compared to the fourth quarter of 2022, non-interest income before investment securities gains (losses) in the fourth quarter of 2023 increased $5.8 million, or 10.7%, from $54.3 million. The increase in non-interest income was primarily due to increases of $1.9 million in wealth management revenues, $1.6 million in commercial customer interest rate swap fee income, reflected in capital markets, a $1.1 million market valuation movement in our commercial customer interest rate swap program resulting from the reference rate transition from LIBOR to SOFR and reflected as an increase to other non-interest income, a $0.7 million increase in cash surrender value of life insurance policies, reflected in other income, a $0.3 million increase in cash management fee income and a $0.3 million increase in gains on sale from Small Business Association ("SBA") loans, reflected in other commercial banking income. Non-interest Expense Non-interest expense was $180.6 million in the fourth quarter of 2023, an increase of $9.5 million, or 5.6%, compared to $171.0 million in the third quarter of 2023. The increase was primarily due to increases of $6.4 million in FDIC insurance expense, primarily due to the special assessment of $6.5 million charged to recover the loss to the Deposit Insurance Fund in connection with the closures of certain banks in 2023, $2.6 million in other outside services related to consulting fees incurred for the FultonFirst initiative, $1.6 million in marketing expense due to a targeted customer deposit acquisition program and brand marketing campaigns in growth markets, partially offset by a $0.7 million gain from debt extinguishment recorded in the fourth quarter of 2023, reflected in other expense. Included in salaries and benefits expense was $0.6 million for severance expense incurred as a result of the FultonFirst initiative. Compared to the fourth quarter of 2022, non-interest expense, excluding merger-related expenses of $1.9 million in the fourth quarter of 2022, increased $14.0 million, or 8.4%. The increase was primarily due to increases of $7.9 million in FDIC insurance expense, primarily due to the special assessment of $6.5 million discussed above and the adoption of a final rule to increase base deposit insurance assessment rates effective January 1, 2023, $4.5 million in salaries and employee benefits expense, $3.8 million in other outside services expense driven by the FultonFirst initiative, partially offset by a $1.6 million decrease related to a contingent liability recorded in 2022 and a $0.7 million gain from debt extinguishment recorded in the fourth quarter of 2023, both reflected in other expense. The $4.5 million increase in salaries and benefits expense was primarily driven by annual merit increases, lower deferred employee loan origination costs, higher employee benefits expense, due to healthcare claims experience, and higher pension costs, partially offset by lower incentive plan compensation expense. Also included in salaries and benefits expense was $0.6 million for severance expense incurred as a result of the FultonFirst initiative. Income Tax Expense For 2023 the effective tax rate was 18.5% in comparison to 17.3% for 2022. 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, 2022, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov). Non-GAAP Financial Measures The Corporation uses certain financial measures in this press release that have been derived from methods other than GAAP. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this press release. FULTON FINANCIAL CORPORATION SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) (dollars in thousands, except per share data) Three months ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 Ending Balances Investment securities $ 3,666,274 $ 3,698,601 $ 3,867,334 $ 3,950,101 $ 3,968,023 Net loans 21,351,094 21,177,508 21,044,685 20,670,188 20,279,547 Total assets 27,560,704 27,375,177 27,403,163 27,112,176 26,931,702 Deposits 21,537,623 21,421,589 21,206,540 21,316,584 20,649,538 Shareholders' equity 2,750,044 2,566,693 2,642,152 2,618,998 2,579,757 Average Balances Investment securities 3,665,261 3,834,824 3,916,130 3,964,615 3,936,579 Net loans 21,255,779 21,121,277 20,866,235 20,463,096 20,004,513 Total assets 27,397,671 27,377,836 27,235,567 26,900,653 26,386,355 Deposits 21,476,548 21,357,295 21,207,143 20,574,323 21,027,656 Shareholders' equity 2,618,024 2,645,977 2,647,464 2,613,316 2,489,148 Income Statement Net interest income 212,006 213,842 212,852 215,587 225,911 Provision for credit losses 9,808 9,937 9,747 24,544 14,513 Non-interest income 59,378 55,961 60,585 51,753 54,321 Non-interest expense 180,552 171,020 168,018 159,616 168,462 Income before taxes 81,024 88,846 95,672 83,180 97,257 Net income available to common shareholders 61,701 69,535 77,045 65,752 79,271 Pre-provision net revenue(1) 100,050 102,342 106,495 108,375 115,049 Per Share Net income available to common shareholders (basic) $ 0.38 $ 0.42 $ 0.46 $ 0.39 $ 0.47 Net income available to common shareholders (diluted) $ 0.37 $ 0.42 $ 0.46 $ 0.39 $ 0.47 Operating net income available to common shareholders(1) $ 0.42 $ 0.43 $ 0.47 $ 0.39 $ 0.48 Cash dividends $ 0.17 $ 0.16 $ 0.16 $ 0.15 $ 0.21 Common shareholders' equity $ 15.61 $ 14.47 $ 14.75 $ 14.67 $ 14.24 Common shareholders' equity (tangible)(1) $ 12.19 $ 11.05 $ 11.36 $ 11.26 $ 10.90 Weighted average shares (basic) 163,975 164,566 165,854 166,605 167,504 Weighted average shares (diluted) 165,650 166,023 167,191 168,401 169,136 (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 2023 2023 2023 2023 2022 Asset Quality Net charge-offs (recoveries) to average loans 0.15 % 0.10 % 0.04 % 0.27 % 0.23 % Non-performing loans to total net loans 0.72 % 0.67 % 0.70 % 0.80 % 0.85 % Non-performing assets to total assets 0.56 % 0.52 % 0.55 % 0.62 % 0.66 % ACL - loans(1) to total loans 1.37 % 1.38 % 1.37 % 1.35 % 1.33 % ACL - loans(1) to non-performing loans 191 % 208 % 195 % 169 % 157 % Profitability Return on average assets 0.93 % 1.04 % 1.17 % 1.03 % 1.23 % Operating return on average assets(2) 1.03 % 1.08 % 1.18 % 1.04 % 1.26 % Return on average common shareholders' equity 10.09 % 11.25 % 12.59 % 11.02 % 13.70 % Return on average common shareholders' equity (tangible)(2) 14.68 % 15.17 % 16.52 % 14.46 % 18.59 % Net interest margin 3.36 % 3.40 % 3.40 % 3.53 % 3.69 % Efficiency ratio(2) 62.0 % 61.5 % 60.1 % 58.5 % 58.1 % Non-interest expenses to total average assets 2.61 % 2.48 % 2.47 % 2.41 % 2.53 % Operating non-interest expenses to total average assets(2) 2.47 % 2.47 % 2.46 % 2.40 % 2.48 % Capital Ratios Tangible common equity ratio ("TCE")(2) 7.4 % 6.8 % 7.0 % 7.0 % 6.9 % Tier 1 leverage ratio(3) 9.5 % 9.4 % 9.3 % 9.2 % 9.5 % Common equity Tier 1 capital ratio(3) 10.4 % 10.3 % 10.1 % 9.8 % 10.0 % Tier 1 risk-based capital ratio(3) 11.2 % 11.1 % 11.0 % 10.6 % 10.9 % Total risk-based capital ratio(3) 14.1 % 14.0 % 13.8 % 13.4 % 13.6 % (1) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet ("OBS") credit exposures. (2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release. (3) Regulatory capital ratios as of December 31, 2023 are preliminary estimates and prior periods are actual. FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) (dollars in thousands) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 ASSETS Cash and due from banks $ 300,343 $ 304,042 $ 123,779 $ 129,003 $ 126,898 Other interest-earning assets 373,772 222,781 505,141 545,355 685,209 Loans held for sale 15,158 20,368 14,673 6,507 7,264 Investment securities 3,666,274 3,698,601 3,867,334 3,950,101 3,968,023 Net loans 21,351,094 21,177,508 21,044,685 20,670,188 20,279,547 Less: ACL - loans(1) (293,404 ) (292,739 ) (287,442 ) (278,695 ) (269,366 ) Loans, net 21,057,690 20,884,769 20,757,243 20,391,493 20,010,181 Net premises and equipment 222,881 215,626 216,322 216,059 225,141 Accrued interest receivable 107,972 101,624 96,991 90,267 91,579 Goodwill and intangible assets 560,687 561,284 561,885 563,502 560,824 Other assets 1,255,927 1,366,082 1,259,795 1,219,889 1,256,583 Total Assets $ 27,560,704 $ 27,375,177 $ 27,403,163 $ 27,112,176 $ 26,931,702 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits $ 21,537,623 $ 21,421,589 $ 21,206,540 $ 21,316,584 $ 20,649,538 Borrowings 2,487,526 2,370,112 2,719,114 2,446,770 2,871,207 Other liabilities 785,511 1,016,783 835,357 729,824 831,200 Total Liabilities 24,810,660 24,808,484 24,761,011 24,493,178 24,351,945 Shareholders' equity 2,750,044 2,566,693 2,642,152 2,618,998 2,579,757 Total Liabilities and Shareholders' Equity $ 27,560,704 $ 27,375,177 $ 27,403,163 $ 27,112,176 $ 26,931,702 LOANS, DEPOSITS AND BORROWINGS DETAIL: Loans, by type: Real estate - commercial mortgage $ 8,127,728 $ 8,106,300 $ 7,846,861 $ 7,746,920 $ 7,693,835 Commercial and industrial 4,545,552 4,577,334 4,599,759 4,596,096 4,473,004 Real estate - residential mortgage 5,325,923 5,279,681 5,147,262 4,880,919 4,737,279 Real estate - home equity 1,047,184 1,045,438 1,061,891 1,074,712 1,102,838 Real estate - construction 1,239,075 1,078,263 1,308,564 1,326,754 1,269,925 Consumer 729,318 743,976 763,530 730,775 699,179 Leases and other loans(2) 336,314 346,516 316,818 314,012 303,487 Total Net Loans $ 21,351,094 $ 21,177,508 $ 21,044,685 $ 20,670,188 $ 20,279,547 Deposits, by type: Noninterest-bearing demand $ 5,314,094 $ 5,575,374 $ 5,865,855 $ 6,403,484 $ 7,006,388 Interest-bearing demand 5,722,695 5,757,487 5,543,320 5,478,237 5,410,903 Savings 6,616,901 6,707,729 6,646,448 6,579,806 6,434,621 Total demand and savings 17,653,690 18,040,590 18,055,623 18,461,527 18,851,912 Brokered 1,144,692 941,059 949,259 960,919 208,416 Time 2,739,241 2,439,940 2,201,658 1,894,138 1,589,210 Total Deposits $ 21,537,623 $ 21,421,589 $ 21,206,540 $ 21,316,584 $ 20,649,538 Borrowings, by type: Federal funds purchased $ 240,000 $ 544,000 $ 555,000 $ 525,000 $ 191,000 Federal Home Loan Bank advances 1,100,000 730,000 1,165,000 747,000 1,250,000 Senior debt and subordinated debt 535,384 540,174 539,994 539,814 539,634 Other borrowings 612,142 555,938 459,120 634,956 890,573 Total Borrowings $ 2,487,526 $ 2,370,112 $ 2,719,114 $ 2,446,770 $ 2,871,207 (1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures. (2) Includes equipment lease financing, overdraft and net origination fees and costs. FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (dollars in thousands, except per share) Three Months Ended Year ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 2023 2023 2023 2023 2022 2023 2022 Interest Income: Interest income $ 338,134 $ 330,371 $ 314,912 $ 289,820 $ 267,847 $ 1,273,236 $ 864,838 Interest expense 126,128 116,529 102,060 74,233 41,936 418,950 83,204 Net Interest Income 212,006 213,842 212,852 215,587 225,911 854,286 781,634 Provision for credit losses 9,808 9,937 9,747 24,544 14,513 54,036 28,021 Net Interest Income after Provision 202,198 203,905 203,105 191,043 211,398 800,250 753,613 Non-Interest Income: Commercial banking: Merchant and card 7,045 7,626 7,700 6,834 7,223 29,205 28,276 Cash management 6,030 5,960 5,835 5,515 5,756 23,340 23,729 Capital markets 4,258 2,960 6,092 2,344 2,627 15,654 12,256 Other commercial banking 3,447 3,176 3,518 2,820 2,998 12,961 11,518 Total commercial banking 20,780 19,722 23,145 17,513 18,604 81,160 75,779 Wealth management 19,388 19,413 18,678 18,062 17,531 75,541 72,843 Consumer banking: Card 6,739 6,770 6,592 6,243 6,331 26,343 24,472 Overdraft 2,991 2,996 2,696 2,733 3,364 11,416 15,480 Other consumer banking 2,357 2,407 2,432 2,241 2,380 9,438 9,544 Total consumer banking 12,087 12,173 11,720 11,217 12,075 47,197 49,496 Mortgage banking 2,288 3,190 2,940 1,970 2,140 10,388 14,204 Other 5,587 1,463 4,106 2,968 3,972 14,125 14,835 Non-interest income before investment securities gains (losses) 60,130 55,961 60,589 51,730 54,322 228,411 227,157 Investment securities gains (losses), net (752 ) — (4 ) 23 (1 ) (733 ) (27 ) Total Non-Interest Income 59,378 55,961 60,585 51,753 54,321 227,678 227,130 Non-Interest Expense: Salaries and employee benefits 97,275 96,757 94,102 89,283 92,733 377,417 356,884 Data processing and software 16,985 16,914 16,776 15,796 15,448 66,471 60,255 Other outside services 14,670 12,094 10,834 10,126 10,860 47,724 37,152 Net occupancy 14,647 14,561 14,374 14,438 14,061 58,019 56,195 FDIC insurance 11,138 4,738 4,895 4,795 3,219 25,565 12,547 Equipment 3,995 3,475 3,530 3,389 3,640 14,390 14,033 Marketing 3,550 1,913 1,655 1,886 2,380 9,004 6,885 Professional fees 2,302 1,869 1,829 2,392 2,945 8,392 9,123 Intangible amortization 597 601 1,072 674 688 2,944 1,731 Merger-related expenses — — — — 1,894 — 10,328 Other 15,393 18,098 18,951 16,837 20,594 69,281 68,595 Total Non-Interest Expense 180,552 171,020 168,018 159,616 168,462 679,207 633,728 Income Before Income Taxes 81,024 88,846 95,672 83,180 97,257 348,721 347,015 Income tax expense 16,761 16,749 16,065 14,866 15,424 64,441 60,034 Net Income 64,263 72,097 79,607 68,314 81,833 284,280 286,981 Preferred stock dividends (2,562 ) (2,562 ) (2,562 ) (2,562 ) (2,562 ) (10,248 ) (10,248 ) Net Income Available to Common Shareholders $ 61,701 $ 69,535 $ 77,045 $ 65,752 $ 79,271 $ 274,032 $ 276,733 Three Months Ended Year ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 2023 2023 2023 2023 2022 2023 2022 PER SHARE: Net income available to common shareholders (basic) $ 0.38 $ 0.42 $ 0.46 $ 0.39 $ 0.47 $ 1.66 $ 1.69 Net income available to common shareholders (diluted) $ 0.37 $ 0.42 $ 0.46 $ 0.39 $ 0.47 $ 1.64 $ 1.67 Cash dividends $ 0.17 $ 0.16 $ 0.16 $ 0.15 $ 0.21 $ 0.64 $ 0.66 Weighted average shares (basic) 163,975 164,566 165,854 166,605 167,504 165,241 164,119 Weighted average shares (diluted) 165,650 166,023 167,191 168,401 169,136 166,769 165,472 FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) (dollars in thousands) Three months ended December 31, 2023 September 30, 2023 December 31, 2022 Average Yield/ Average Yield/ Average Yield/ Balance Interest(1) Rate Balance Interest(1) Rate Balance Interest(1) Rate ASSETS Interest-earning assets: Net loans $ 21,255,779 $ 311,992 5.83 % $ 21,121,277 $ 304,167 5.72 % $ 20,004,513 $ 241,453 4.80 % Investment securities(2) 4,120,750 27,227 2.64 % 4,197,550 27,274 2.59 % 4,330,635 27,781 2.56 % Other interest-earning assets 267,329 3,464 5.17 % 263,244 3,372 5.11 % 460,082 2,923 2.53 % Total Interest-Earning Assets 25,643,858 342,683 5.31 % 25,582,071 334,813 5.20 % 24,795,230 272,157 4.36 % Noninterest-Earning assets: Cash and due from banks 282,614 306,496 149,472 Premises and equipment 219,994 217,447 223,245 Other assets 1,545,535 1,562,233 1,488,684 Less: ACL - loans(3) (294,330 ) (290,411 ) (270,276 ) Total Assets $ 27,397,671 $ 27,377,836 $ 26,386,355 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-Bearing liabilities: Demand deposits $ 5,723,169 $ 20,737 1.44 % $ 5,740,229 $ 18,690 1.29 % $ 5,479,443 $ 4,589 0.33 % Savings deposits 6,682,512 38,239 2.27 % 6,676,792 34,277 2.04 % 6,466,775 11,539 0.71 % Brokered deposits 1,051,369 14,078 5.31 % 937,657 12,250 5.18 % 215,729 1,947 3.58 % Time deposits 2,579,400 23,575 3.63 % 2,330,206 18,939 3.22 % 1,554,885 4,302 1.10 % Total Interest-Bearing Deposits 16,036,450 96,629 2.39 % 15,684,884 84,156 2.13 % 13,716,832 22,377 0.65 % Borrowings and other interest-bearing liabilities 2,541,727 29,499 4.58 % 2,691,087 32,373 4.74 % 2,025,522 19,559 3.83 % Total Interest-Bearing Liabilities 18,578,177 126,128 2.69 % 18,375,971 116,529 2.51 % 15,742,354 41,936 1.06 % Noninterest-Bearing liabilities: Demand deposits 5,440,098 5,672,411 7,310,824 Other noninterest-bearing liabilities 761,372 683,477 844,029 Total Liabilities 24,779,647 24,731,859 23,897,207 Total Deposits/Cost of Deposits 21,476,548 1.79 % 21,357,295 1.56 % 21,027,656 0.42 % Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds") 24,018,275 2.08 % 24,048,382 1.92 % 23,053,178 0.72 % Shareholders' equity 2,618,024 2,645,977 2,489,148 Total Liabilities and Shareholders' Equity $ 27,397,671 $ 27,377,836 $ 26,386,355 Net interest income/net interest margin (fully taxable equivalent) 216,555 3.36 % 218,284 3.40 % 230,221 3.69 % Tax equivalent adjustment (4,549 ) (4,442 ) (4,310 ) Net Interest Income $ 212,006 $ 213,842 $ 225,911 (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. (2) Balances include amortized historical cost for available for sale ("AFS") securities. The related unrealized holding gains (losses) are included in other assets. (3) "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 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 Loans, by type: Real estate - commercial mortgage $ 8,090,627 $ 7,912,801 $ 7,775,436 $ 7,720,975 $ 7,696,997 Commercial and industrial 4,579,441 4,611,376 4,629,919 4,565,923 4,372,935 Real estate - residential mortgage 5,303,632 5,209,105 5,008,295 4,790,868 4,643,784 Real estate - home equity 1,043,753 1,045,806 1,066,615 1,086,032 1,106,325 Real estate - construction 1,153,601 1,254,577 1,306,286 1,276,145 1,209,998 Consumer 746,011 761,273 763,407 721,248 679,108 Leases and other loans(1) 338,714 326,339 316,277 301,905 295,366 Total Net Loans $ 21,255,779 $ 21,121,277 $ 20,866,235 $ 20,463,096 $ 20,004,513 Deposits, by type: Noninterest-bearing demand $ 5,440,098 $ 5,672,411 $ 6,021,091 $ 6,641,741 $ 7,310,824 Interest-bearing demand 5,723,169 5,740,229 5,535,669 5,326,566 5,479,443 Savings 6,682,512 6,676,792 6,632,572 6,469,468 6,466,775 Total demand and savings 17,845,779 18,089,432 18,189,332 18,437,775 19,257,042 Brokered 1,051,369 937,657 954,773 439,670 215,729 Time 2,579,400 2,330,206 2,063,038 1,696,878 1,554,885 Total Deposits $ 21,476,548 $ 21,357,295 $ 21,207,143 $ 20,574,323 $ 21,027,656 Borrowings, by type: Federal funds purchased $ 446,707 $ 634,163 $ 679,401 $ 505,142 $ 261,737 Federal Home Loan Bank advances 760,087 793,098 880,811 1,261,589 564,692 Senior debt and subordinated debt 539,186 540,086 539,906 539,726 539,550 Other borrowings and other interest-bearing liabilities 795,747 723,740 690,742 752,227 659,543 Total Borrowings $ 2,541,727 $ 2,691,087 $ 2,790,860 $ 3,058,684 $ 2,025,522 (1) Includes equipment lease financing, overdraft and net origination fees and costs. FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) (dollars in thousands) Year ended December 31 2023 2022 Average Yield/ Average Yield/ Balance Interest(1) Rate Balance Interest(1) Rate ASSETS Interest-earning assets: Net loans $ 20,929,302 $ 1,166,376 5.57 % $ 19,152,740 $ 765,603 4.00 % Investment securities(2) 4,210,010 109,325 2.59 % 4,364,627 106,115 2.43 % Other interest-earning assets 387,360 15,346 3.96 % 829,705 8,115 0.98 % Total Interest-Earning Assets 25,526,672 1,291,047 5.06 % 24,347,072 879,833 3.61 % Noninterest-Earning assets: Cash and due from banks 215,649 156,050 Premises and equipment 219,315 220,982 Other assets 1,553,284 1,505,277 Less: ACL - loans(3) (285,216 ) (257,897 ) Total Assets $ 27,229,704 $ 25,971,484 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-Bearing liabilities: Demand deposits $ 5,582,930 $ 62,494 1.12 % $ 5,593,942 $ 8,219 0.15 % Savings deposits 6,616,087 122,340 1.85 % 6,458,165 16,642 0.26 % Brokered deposits 847,795 43,635 5.15 % 262,359 4,097 1.56 % Time deposits 2,170,245 63,735 2.94 % 1,617,804 14,871 0.92 % Total Interest-Bearing Deposits 15,217,057 292,204 1.92 % 13,932,270 43,829 0.31 % Borrowings and other interest-bearing liabilities 2,771,330 126,746 4.54 % 1,358,357 39,375 2.89 % Total Interest-Bearing Liabilities 17,988,387 418,950 2.32 % 15,290,627 83,204 0.54 % Noninterest-Bearing liabilities: Demand deposits 5,939,799 7,522,304 Other 670,269 598,230 Total Liabilities 24,598,455 23,411,161 Total Deposits/Cost of Deposits 21,156,856 1.38 % 21,454,574 0.20 % Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds") 23,928,186 1.75 % 22,812,931 0.36 % Shareholders' equity 2,631,249 2,560,323 Total Liabilities and Shareholders' Equity $ 27,229,704 $ 25,971,484 Net interest income/net interest margin (fully taxable equivalent) 872,097 3.42 % 796,629 3.27 % Tax equivalent adjustment (17,811 ) (14,995 ) Net Interest Income $ 854,286 $ 781,634 (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. (2) Balances include amortized historical cost for AFS. The related unrealized holding gains (losses) are included in other assets. (3) "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 2023 2022 Loans, by type: Real estate - commercial mortgage $ 7,876,076 $ 7,523,806 Commercial and industrial 4,596,742 4,230,133 Real estate - residential mortgage 5,079,739 4,261,527 Real estate - home equity 1,060,396 1,101,142 Real estate - construction 1,247,336 1,178,550 Consumer 748,089 569,305 Leases and other loans(1) 320,924 288,277 Total Net Loans $ 20,929,302 $ 19,152,740 Deposits, by type: Noninterest-bearing demand $ 5,939,799 $ 7,522,304 Interest-bearing demand 5,582,930 5,593,942 Savings 6,616,087 6,458,165 Total demand and savings 18,138,816 19,574,411 Brokered 847,795 262,359 Time 2,170,245 1,617,804 Total Deposits $ 21,156,856 $ 21,454,574 Borrowings, by type: Federal funds purchased $ 566,379 $ 91,125 Federal Home Loan Bank advances 922,164 194,295 Senior debt and subordinated debt 539,726 564,337 Other borrowings 743,061 508,600 Total Borrowings $ 2,771,330 $ 1,358,357 (1) Includes equipment lease financing, overdraft and net origination fees and costs. FULTON FINANCIAL CORPORATION ASSET QUALITY INFORMATION (UNAUDITED) (dollars in thousands) Three months ended Year Ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 Dec 31 2023 2023 2023 2023 2022 2023 2022 Allowance for credit losses related to net loans: Balance at beginning of period $ 292,739 $ 287,442 $ 278,695 $ 269,366 $ 266,838 $ 269,366 $ 249,001 CECL Day 1 provision expense — — — — — — 7,954 Initial purchased credit deteriorated loans — — — — — — 1,135 Loans charged off: Real estate - commercial mortgage (3,547 ) (860 ) (230 ) (13,362 ) (12,235 ) (17,999 ) (12,473 ) Commercial and industrial (3,397 ) (3,220 ) (2,017 ) (612 ) (179 ) (9,246 ) (2,390 ) Real estate - residential mortgage — — (62 ) — — (62 ) (66 ) Consumer and home equity (2,192 ) (1,803 ) (1,313 ) (2,206 ) (1,311 ) (7,514 ) (4,412 ) Real estate - construction — — — — — — — Leases and other loans(1) (1,096 ) (1,396 ) (1,165 ) (723 ) (505 ) (4,380 ) (2,131 ) Total loans charged off (10,232 ) (7,279 ) (4,787 ) (16,903 ) (14,230 ) (39,201 ) (21,472 ) Recoveries of loans previously charged off: Real estate - commercial mortgage 160 101 29 786 183 1,076 3,860 Commercial and industrial 779 620 988 1,086 961 3,473 5,893 Real estate - residential mortgage 278 37 58 48 10 421 425 Consumer and home equity 555 1,023 959 661 683 3,198 2,581 Real estate - construction 87 — 569 202 530 858 574 Leases and other loans(1) 374 400 213 116 132 1,103 759 Recoveries of loans previously charged off 2,233 2,181 2,816 2,899 2,499 10,129 14,092 Net loans (charged off) recovered (7,999 ) (5,098 ) (1,971 ) (14,004 ) (11,731 ) (29,072 ) (7,380 ) Provision for credit losses 8,664 10,395 10,718 23,333 14,259 53,110 18,656 Balance at end of period $ 293,404 $ 292,739 $ 287,442 $ 278,695 $ 269,366 $ 293,404 $ 269,366 Net charge-offs (recoveries) to average loans 0.15 % 0.10 % 0.04 % 0.27 % 0.23 % 0.14 % 0.04 % Provision for credit losses related to OBS Credit Exposures Provision for credit losses $ 1,144 $ (458 ) $ (971 ) $ 1,211 $ 254 $ 926 $ 1,411 NON-PERFORMING ASSETS: Non-accrual loans $ 121,620 $ 113,022 $ 123,280 $ 134,303 $ 144,443 Loans 90 days past due and accruing 31,721 27,962 24,415 30,336 27,463 Total non-performing loans 153,341 140,984 147,695 164,639 171,906 Other real estate owned 896 2,549 3,881 3,304 5,790 Total non-performing assets $ 154,237 $ 143,533 $ 151,576 $ 167,943 $ 177,696 NON-PERFORMING LOANS, BY TYPE: Real estate - commercial mortgage $ 46,527 $ 44,058 $ 55,048 $ 61,322 $ 72,634 Commercial and industrial 41,020 33,365 30,588 33,555 28,288 Real estate - residential mortgage 42,029 40,560 39,157 46,576 46,509 Consumer and home equity 10,878 11,580 10,469 8,983 9,800 Real estate - construction 2,876 677 1,099 1,509 1,368 Leases and other loans(1) 10,011 10,744 11,334 12,694 13,307 Total non-performing loans $ 153,341 $ 140,984 $ 147,695 $ 164,639 $ 171,906 (1) Includes equipment lease financing, overdraft and net origination fees and costs. FULTON FINANCIAL CORPORATION RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (dollars in thousands, except per share data) Explanatory note: This press release contains supplemental financial information, as detailed below, that has been derived by methods other than GAAP. The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow: Three months ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 Operating net income available to common shareholders Net income available to common shareholders $ 61,701 $ 69,535 $ 77,045 $ 65,752 $ 79,271 Plus: Core deposit intangible amortization 441 441 912 514 514 Plus: Merger-related expenses — — — — 1,894 Plus: Interest rate derivative transition valuation(1) (1,102 ) 2,958 — — — Plus: FDIC special assessment 6,494 — — — — Plus: FultonFirst initiative 3,197 — — — — Less: Tax impact of adjustments (1,896 ) (714 ) (192 ) (108 ) (506 ) Operating net income available to common shareholders (numerator) $ 68,835 $ 72,220 $ 77,765 $ 66,158 $ 81,173 Weighted average shares (diluted) (denominator) 165,650 166,023 167,191 168,401 169,136 Operating net income available to common shareholders, per share (diluted) $ 0.42 $ 0.43 $ 0.47 $ 0.39 $ 0.48 Common shareholders' equity (tangible), per share Shareholders' equity $ 2,750,044 $ 2,566,693 $ 2,642,152 $ 2,618,998 $ 2,579,757 Less: Preferred stock (192,878 ) (192,878 ) (192,878 ) (192,878 ) (192,878 ) Less: Goodwill and intangible assets (560,687 ) (561,284 ) (561,885 ) (563,502 ) (560,824 ) Tangible common shareholders' equity (numerator) $ 1,996,479 $ 1,812,531 $ 1,887,389 $ 1,862,618 $ 1,826,055 Shares outstanding, end of period (denominator) 163,801 164,084 166,097 165,396 167,599 Common shareholders' equity (tangible), per share $ 12.19 $ 11.05 $ 11.36 $ 11.26 $ 10.90 Operating return on average assets Net income $ 64,263 $ 72,097 $ 79,607 $ 68,314 $ 81,833 Plus: Core deposit intangible amortization 441 441 912 514 514 Plus: Merger-related expenses — — — — 1,894 Plus: Interest rate derivative transition valuation(1) (1,102 ) 2,958 — — — Plus: FDIC special assessment 6,494 — — — — Plus: FultonFirst initiative 3,197 — — — — Less: Tax impact of adjustments (1,896 ) (714 ) (192 ) (108 ) (506 ) Operating net income (numerator) $ 71,397 $ 74,782 $ 80,327 $ 68,720 $ 83,735 Total average assets $ 27,397,671 $ 27,377,836 $ 27,235,567 $ 26,900,653 $ 26,386,355 Less: Average net core deposit intangible (5,106 ) (5,548 ) (6,417 ) (6,937 ) (7,478 ) Total operating average assets (denominator) $ 27,392,565 $ 27,372,288 $ 27,229,150 $ 26,893,716 $ 26,378,877 Operating return on average assets 1.03 % 1.08 % 1.18 % 1.04 % 1.26 % (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. Three months ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 Return on average common shareholders' equity (tangible) Net income available to common shareholders $ 61,701 $ 69,535 $ 77,045 $ 65,752 $ 79,271 Plus: Intangible amortization 597 601 1,072 674 688 Plus: Merger-related expenses — — — — 1,894 Plus: Interest rate derivative transition valuation(1) (1,102 ) 2,958 — — — Plus: FDIC special assessment 6,494 — — — — Plus: FultonFirst initiative 3,197 — — — — Less: Tax impact of adjustments (1,929 ) (747 ) (225 ) (142 ) (542 ) Adjusted net income available to common shareholders (numerator) $ 68,958 $ 72,347 $ 77,892 $ 66,284 $ 81,311 Average shareholders' equity $ 2,618,024 $ 2,645,977 $ 2,647,464 $ 2,613,316 $ 2,489,148 Less: Average preferred stock (192,878 ) (192,878 ) (192,878 ) (192,878 ) (192,878 ) Less: Average goodwill and intangible assets (560,977 ) (561,578 ) (563,146 ) (561,744 ) (561,219 ) Average tangible common shareholders' equity (denominator) $ 1,864,169 $ 1,891,521 $ 1,891,440 $ 1,858,694 $ 1,735,051 Return on average common shareholders' equity (tangible) 14.68 % 15.17 % 16.52 % 14.46 % 18.59 % Tangible common equity to tangible assets (TCE Ratio) Shareholders' equity $ 2,750,044 $ 2,566,693 $ 2,642,152 $ 2,618,998 $ 2,579,757 Less: Preferred stock (192,878 ) (192,878 ) (192,878 ) (192,878 ) (192,878 ) Less: Goodwill and intangible assets (560,687 ) (561,284 ) (561,885 ) (563,502 ) (560,824 ) Tangible common shareholders' equity (numerator) $ 1,996,479 $ 1,812,531 $ 1,887,389 $ 1,862,618 $ 1,826,055 Total assets $ 27,560,704 $ 27,375,177 $ 27,403,163 $ 27,112,176 $ 26,931,702 Less: Goodwill and intangible assets (560,687 ) (561,284 ) (561,885 ) (563,502 ) (560,824 ) Total tangible assets (denominator) $ 27,000,017 $ 26,813,893 $ 26,841,278 $ 26,548,674 $ 26,370,878 Tangible common equity to tangible assets 7.39 % 6.76 % 7.03 % 7.02 % 6.92 % Efficiency ratio Non-interest expense $ 180,552 $ 171,020 $ 168,018 $ 159,616 $ 168,462 Less: Amortization of tax credit investments — — — — (696 ) Less: Merger-related expenses — — — — (1,894 ) Less: FDIC special assessment (6,494 ) — — — — Less: FultonFirst initiative (3,197 ) — — — — Less: Intangible amortization (597 ) (601 ) (1,072 ) (674 ) (688 ) Less: Debt extinguishment 720 — — — — Non-interest expense (numerator) $ 170,984 $ 170,419 $ 166,946 $ 158,942 $ 165,184 Net interest income $ 212,006 $ 213,842 $ 212,852 $ 215,587 $ 225,911 Tax equivalent adjustment 4,549 4,442 4,405 4,414 4,310 Plus: Total non-interest income 59,378 55,961 60,585 51,753 54,321 Plus: Interest rate derivative transition valuation(1) (1,102 ) 2,958 — — — Less: Investment securities (gains) losses, net 752 — 4 (23 ) 1 Total revenue (denominator) $ 275,583 $ 277,203 $ 277,846 $ 271,731 $ 284,543 Efficiency ratio 62.0 % 61.5 % 60.1 % 58.5 % 58.1 % (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. Three months ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 Operating non-interest expenses to total average assets Non-interest expense $ 180,552 $ 171,020 $ 168,018 $ 159,616 $ 168,462 Less: Amortization of tax credit investments — — — — (696 ) Less: Intangible amortization (597 ) (601 ) (1,072 ) (674 ) (688 ) Less: Merger-related expenses — — — — (1,894 ) Less: FDIC special assessment (6,494 ) — — — — Less: FultonFirst initiatives (3,197 ) — — — — Non-interest expense (numerator) $ 170,264 $ 170,419 $ 166,946 $ 158,942 $ 165,184 Total average assets (denominator) $ 27,397,671 $ 27,377,836 $ 27,235,567 $ 26,900,653 $ 26,386,355 Operating non-interest expenses to total average assets 2.47 % 2.47 % 2.46 % 2.40 % 2.48 % Pre-provision net revenue Net interest income $ 212,006 $ 213,842 $ 212,852 $ 215,587 $ 225,911 Non-interest income 59,378 55,961 60,585 51,753 54,321 Plus: Interest rate derivative transition valuation(1) (1,102 ) 2,958 — — — Less: Investment securities (gains) losses, net 752 — 4 (23 ) 1 Total revenue $ 271,034 $ 272,761 $ 273,441 $ 267,317 $ 280,233 Non-interest expense $ 180,552 $ 171,020 $ 168,018 $ 159,616 $ 168,462 Less: Amortization on tax credit investments — — — — (696 ) Less: Merger-related expenses — — — — (1,894 ) Less: Intangible amortization (597 ) (601 ) (1,072 ) (674 ) (688 ) Less: FDIC special assessment (6,494 ) — — — — Less: FultonFirst initiative (3,197 ) — — — — Less: Debt extinguishment 720 — — — — Total non-interest expense $ 170,984 $ 170,419 $ 166,946 $ 158,942 $ 165,184 Pre-provision net revenue $ 100,050 $ 102,342 $ 106,495 $ 108,375 $ 115,049 Year ended Dec 31 2023 Operating net income available to common shareholders Net income available to common shareholders $ 274,032 Plus: Core deposit intangible amortization 2,308 Plus: Interest rate derivative transition valuation(1) 1,855 Plus: FDIC special assessment 6,494 Plus: FultonFirst initiative 3,197 Less: Tax impact of adjustments (2,909 ) Operating net income available to common shareholders (numerator) $ 284,977 Weighted average shares (diluted) (denominator) 166,769 Operating net income available to common shareholders, per share (diluted) $ 1.71 (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. Note: numbers in this report may not sum due to rounding. View source version on businesswire.com: https://www.businesswire.com/news/home/20240116531563/en/Contacts Media Contact: Lacey Dean (717) 735-8688 Investor Contact: Matt Jozwiak (717) 327-2657 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Fulton Financial Corporation Announces Fourth Quarter and Full-Year 2023 Results By: Fulton Financial Corporation via Business Wire January 16, 2024 at 16:50 PM EST Fulton Financial Corporation (NASDAQ: FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $61.7 million, or $0.37 per diluted share, for the fourth quarter of 2023, a decrease of $7.8 million, or 11.3%, in comparison to the third quarter of 2023. Operating net income available to common shareholders for the three months ended December 31, 2023 was $68.8 million, or $0.42 per diluted share(1). This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240116531563/en/ For the year ended December 31, 2023, net income available to common shareholders was $274.0 million, or $1.64 per diluted share, a decrease of $2.7 million, or 1.0%, in comparison to the same period in 2022. Operating net income available to common shareholders for the year-ended December 31, 2023 was $285.0 million, or $1.71 per diluted share(1). During the fourth quarter of 2023, the Corporation launched the "FultonFirst" initiative that is focused on evaluating and improving how Fulton operates. Approximately $3.2 million was recorded in the fourth quarter of 2023 related to this initiative. Additionally, the Corporation recognized a Federal Deposit Insurance Corporation ("FDIC") special assessment charge of $6.5 million. "2023 was an extraordinary year and we were pleased with our results," said Curtis J. Myers, Chairman and CEO of Fulton Financial Corporation. "Our team advanced our strategic objectives. We grew loans and deposits in a challenging environment, delivered enhancements to the customer experience, continued to operate with excellence and served our stakeholders well. Looking forward, 2024 is full of opportunity." Net Interest Income and Balance Sheet Net interest income for the fourth quarter of 2023 was $212.0 million, a decrease of $1.8 million in comparison to the third quarter of 2023. The net interest margin for the fourth quarter of 2023 decreased four basis points, to 3.36%, in comparison to 3.40% in the third quarter of 2023. (1) Financial measure derived by methods other than generally accepted accounting principles ("GAAP"). Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of the press release. The linked-quarter decrease in net interest income was primarily due to an increase in the rate on average interest-bearing deposits and a shift in the funding mix from noninterest-bearing demand deposits to interest-bearing deposits, partially offset by higher loan yields, a lower rate on borrowings and other interest-bearing liabilities, an increase in the average balance of net loans and a decrease in the average balance of borrowings and other interest-bearing liabilities. An 11 basis point increase in the yield on average net loans and an increase in the average balance of net loans of $134.5 million in the fourth quarter of 2023 drove an increase in interest income of $7.8 million to $338.1 million in comparison to $330.4 million in the third quarter of 2023. Interest expense on interest-bearing liabilities for the fourth quarter of 2023 increased by $9.6 million to $126.1 million in comparison to $116.5 million in the third quarter of 2023. The linked-quarter increase in interest expense in the fourth quarter of 2023 was primarily due to an increase in the rate on average interest-bearing deposits of 26 basis points, a decline of $232.3 million in the average balance of noninterest-bearing deposits and an increase in the average balance of interest-bearing deposits of $351.6 million in comparison to the third quarter of 2023, partially offset by a decrease in the rate on borrowings and other interest-bearing deposits of 16 basis points and a decrease in the average balance of borrowings and other interest-bearing deposits of $149.4 million. For the fourth quarter of 2023, net interest income was $212.0 million, a decrease of $13.9 million, or 6.2%, in comparison to the fourth quarter of 2022. Interest income for the fourth quarter of 2023 increased by $70.3 million to $338.1 million in comparison to $267.8 million in the fourth quarter of 2022, primarily driven by rising interest rates resulting in an increase in interest income from net loans of $70.1 million. Increases in the average balance of net loans of $1.3 billion and in yields on net loans of 103 basis points in the fourth quarter of 2023 compared to the fourth quarter of 2022 each contributed to the increase in interest income. Interest expense on interest-bearing liabilities for the fourth quarter of 2023 increased by $84.2 million to $126.1 million in comparison to $41.9 million in the fourth quarter of 2022, primarily driven by rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings and other interest-bearing liabilities of $74.3 million and $9.9 million, respectively. A decrease in the average balance of noninterest-bearing deposits of $1.9 billion and an increase in the average balances of interest-bearing deposits and borrowings and other interest-bearing liabilities of $2.3 billion and $516.2 million, respectively, in the fourth quarter of 2023 in comparison to the fourth quarter of 2022 also contributed to the increase in interest expense. Total average interest-earning assets for the fourth quarter of 2023 were $25.6 billion, an increase of $61.8 million from the third quarter of 2023 primarily driven by an increase in average net loans of $134.5 million, partially offset by a decrease in average investment securities of $76.8 million. Total average interest-earning assets for the fourth quarter of 2023 increased by $848.6 million from the fourth quarter of 2022. Average net loans for the fourth quarter of 2023 were $21.3 billion, an increase of $1.3 billion from the same period in 2022. Compared to the fourth quarter of 2022, average investment securities decreased $209.9 million and average other interest-earning assets decreased $192.8 million in the fourth quarter of 2023. Total average interest-bearing liabilities increased $202.2 million to $18.6 billion in the fourth quarter of 2023 in comparison to $18.4 billion in the third quarter of 2023. The increase in average interest-bearing liabilities was driven by an increase in the average balance of total interest-bearing deposits of $351.6 million, partially offset by a decrease in the average balance of borrowings and other interest-bearing liabilities of $149.4 million. Total average interest-bearing liabilities for the fourth quarter of 2023 increased $2.8 billion to $18.6 billion in comparison to $15.7 billion in the fourth quarter of 2022, driven by increases in the average balances of total interest-bearing deposits and borrowings and other interest-bearing liabilities of $2.3 billion and $0.5 billion, respectively. Asset Quality In the fourth quarter of 2023, a provision for credit losses of $9.8 million was recorded in comparison to $9.9 million in the third quarter of 2023 and $14.5 million in the fourth quarter of 2022. The provision for credit losses of $9.8 million recorded in the fourth quarter of 2023 was primarily due to loan growth and some weakening of credit metrics. Non-performing assets were $154.2 million, or 0.56% of total assets, at December 31, 2023, in comparison to $143.5 million, or 0.52% of total assets, at September 30, 2023, and $177.7 million, or 0.66% of total assets, at December 31, 2022. Net charge-offs for the fourth quarter of 2023 were 0.15% of total average loans in comparison to 0.10% and 0.23% in the third quarter of 2023 and the fourth quarter of 2022, respectively. Non-interest Income Non-interest income before investment securities gains (losses) in the fourth quarter of 2023 was $60.1 million, an increase of $4.2 million, or 7.4%, from the third quarter of 2023. The increase in non-interest income was primarily due to a $4.1 million linked-quarter net change from market movements in our commercial customer interest rate swap program resulting from the reference rate transition from the London Inter-Bank Offered Rate ("LIBOR") to the Secured Overnight Financing Rate ("SOFR"), reflected as an increase to other non-interest income. Additional contributors to the increase in non-interest income were increases of $1.4 million in commercial customer interest rate swap fee income, reflected in capital markets, and a $0.6 million increase in cash surrender value of life insurance policies, reflected in other income, partially offset by decreases in mortgage banking income, income from equity method investments, reflected in other income, and merchant and card income of $0.9 million, $0.7 million and $0.6 million, respectively. Compared to the fourth quarter of 2022, non-interest income before investment securities gains (losses) in the fourth quarter of 2023 increased $5.8 million, or 10.7%, from $54.3 million. The increase in non-interest income was primarily due to increases of $1.9 million in wealth management revenues, $1.6 million in commercial customer interest rate swap fee income, reflected in capital markets, a $1.1 million market valuation movement in our commercial customer interest rate swap program resulting from the reference rate transition from LIBOR to SOFR and reflected as an increase to other non-interest income, a $0.7 million increase in cash surrender value of life insurance policies, reflected in other income, a $0.3 million increase in cash management fee income and a $0.3 million increase in gains on sale from Small Business Association ("SBA") loans, reflected in other commercial banking income. Non-interest Expense Non-interest expense was $180.6 million in the fourth quarter of 2023, an increase of $9.5 million, or 5.6%, compared to $171.0 million in the third quarter of 2023. The increase was primarily due to increases of $6.4 million in FDIC insurance expense, primarily due to the special assessment of $6.5 million charged to recover the loss to the Deposit Insurance Fund in connection with the closures of certain banks in 2023, $2.6 million in other outside services related to consulting fees incurred for the FultonFirst initiative, $1.6 million in marketing expense due to a targeted customer deposit acquisition program and brand marketing campaigns in growth markets, partially offset by a $0.7 million gain from debt extinguishment recorded in the fourth quarter of 2023, reflected in other expense. Included in salaries and benefits expense was $0.6 million for severance expense incurred as a result of the FultonFirst initiative. Compared to the fourth quarter of 2022, non-interest expense, excluding merger-related expenses of $1.9 million in the fourth quarter of 2022, increased $14.0 million, or 8.4%. The increase was primarily due to increases of $7.9 million in FDIC insurance expense, primarily due to the special assessment of $6.5 million discussed above and the adoption of a final rule to increase base deposit insurance assessment rates effective January 1, 2023, $4.5 million in salaries and employee benefits expense, $3.8 million in other outside services expense driven by the FultonFirst initiative, partially offset by a $1.6 million decrease related to a contingent liability recorded in 2022 and a $0.7 million gain from debt extinguishment recorded in the fourth quarter of 2023, both reflected in other expense. The $4.5 million increase in salaries and benefits expense was primarily driven by annual merit increases, lower deferred employee loan origination costs, higher employee benefits expense, due to healthcare claims experience, and higher pension costs, partially offset by lower incentive plan compensation expense. Also included in salaries and benefits expense was $0.6 million for severance expense incurred as a result of the FultonFirst initiative. Income Tax Expense For 2023 the effective tax rate was 18.5% in comparison to 17.3% for 2022. 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, 2022, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov). Non-GAAP Financial Measures The Corporation uses certain financial measures in this press release that have been derived from methods other than GAAP. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this press release. FULTON FINANCIAL CORPORATION SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) (dollars in thousands, except per share data) Three months ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 Ending Balances Investment securities $ 3,666,274 $ 3,698,601 $ 3,867,334 $ 3,950,101 $ 3,968,023 Net loans 21,351,094 21,177,508 21,044,685 20,670,188 20,279,547 Total assets 27,560,704 27,375,177 27,403,163 27,112,176 26,931,702 Deposits 21,537,623 21,421,589 21,206,540 21,316,584 20,649,538 Shareholders' equity 2,750,044 2,566,693 2,642,152 2,618,998 2,579,757 Average Balances Investment securities 3,665,261 3,834,824 3,916,130 3,964,615 3,936,579 Net loans 21,255,779 21,121,277 20,866,235 20,463,096 20,004,513 Total assets 27,397,671 27,377,836 27,235,567 26,900,653 26,386,355 Deposits 21,476,548 21,357,295 21,207,143 20,574,323 21,027,656 Shareholders' equity 2,618,024 2,645,977 2,647,464 2,613,316 2,489,148 Income Statement Net interest income 212,006 213,842 212,852 215,587 225,911 Provision for credit losses 9,808 9,937 9,747 24,544 14,513 Non-interest income 59,378 55,961 60,585 51,753 54,321 Non-interest expense 180,552 171,020 168,018 159,616 168,462 Income before taxes 81,024 88,846 95,672 83,180 97,257 Net income available to common shareholders 61,701 69,535 77,045 65,752 79,271 Pre-provision net revenue(1) 100,050 102,342 106,495 108,375 115,049 Per Share Net income available to common shareholders (basic) $ 0.38 $ 0.42 $ 0.46 $ 0.39 $ 0.47 Net income available to common shareholders (diluted) $ 0.37 $ 0.42 $ 0.46 $ 0.39 $ 0.47 Operating net income available to common shareholders(1) $ 0.42 $ 0.43 $ 0.47 $ 0.39 $ 0.48 Cash dividends $ 0.17 $ 0.16 $ 0.16 $ 0.15 $ 0.21 Common shareholders' equity $ 15.61 $ 14.47 $ 14.75 $ 14.67 $ 14.24 Common shareholders' equity (tangible)(1) $ 12.19 $ 11.05 $ 11.36 $ 11.26 $ 10.90 Weighted average shares (basic) 163,975 164,566 165,854 166,605 167,504 Weighted average shares (diluted) 165,650 166,023 167,191 168,401 169,136 (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 2023 2023 2023 2023 2022 Asset Quality Net charge-offs (recoveries) to average loans 0.15 % 0.10 % 0.04 % 0.27 % 0.23 % Non-performing loans to total net loans 0.72 % 0.67 % 0.70 % 0.80 % 0.85 % Non-performing assets to total assets 0.56 % 0.52 % 0.55 % 0.62 % 0.66 % ACL - loans(1) to total loans 1.37 % 1.38 % 1.37 % 1.35 % 1.33 % ACL - loans(1) to non-performing loans 191 % 208 % 195 % 169 % 157 % Profitability Return on average assets 0.93 % 1.04 % 1.17 % 1.03 % 1.23 % Operating return on average assets(2) 1.03 % 1.08 % 1.18 % 1.04 % 1.26 % Return on average common shareholders' equity 10.09 % 11.25 % 12.59 % 11.02 % 13.70 % Return on average common shareholders' equity (tangible)(2) 14.68 % 15.17 % 16.52 % 14.46 % 18.59 % Net interest margin 3.36 % 3.40 % 3.40 % 3.53 % 3.69 % Efficiency ratio(2) 62.0 % 61.5 % 60.1 % 58.5 % 58.1 % Non-interest expenses to total average assets 2.61 % 2.48 % 2.47 % 2.41 % 2.53 % Operating non-interest expenses to total average assets(2) 2.47 % 2.47 % 2.46 % 2.40 % 2.48 % Capital Ratios Tangible common equity ratio ("TCE")(2) 7.4 % 6.8 % 7.0 % 7.0 % 6.9 % Tier 1 leverage ratio(3) 9.5 % 9.4 % 9.3 % 9.2 % 9.5 % Common equity Tier 1 capital ratio(3) 10.4 % 10.3 % 10.1 % 9.8 % 10.0 % Tier 1 risk-based capital ratio(3) 11.2 % 11.1 % 11.0 % 10.6 % 10.9 % Total risk-based capital ratio(3) 14.1 % 14.0 % 13.8 % 13.4 % 13.6 % (1) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet ("OBS") credit exposures. (2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release. (3) Regulatory capital ratios as of December 31, 2023 are preliminary estimates and prior periods are actual. FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) (dollars in thousands) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 ASSETS Cash and due from banks $ 300,343 $ 304,042 $ 123,779 $ 129,003 $ 126,898 Other interest-earning assets 373,772 222,781 505,141 545,355 685,209 Loans held for sale 15,158 20,368 14,673 6,507 7,264 Investment securities 3,666,274 3,698,601 3,867,334 3,950,101 3,968,023 Net loans 21,351,094 21,177,508 21,044,685 20,670,188 20,279,547 Less: ACL - loans(1) (293,404 ) (292,739 ) (287,442 ) (278,695 ) (269,366 ) Loans, net 21,057,690 20,884,769 20,757,243 20,391,493 20,010,181 Net premises and equipment 222,881 215,626 216,322 216,059 225,141 Accrued interest receivable 107,972 101,624 96,991 90,267 91,579 Goodwill and intangible assets 560,687 561,284 561,885 563,502 560,824 Other assets 1,255,927 1,366,082 1,259,795 1,219,889 1,256,583 Total Assets $ 27,560,704 $ 27,375,177 $ 27,403,163 $ 27,112,176 $ 26,931,702 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits $ 21,537,623 $ 21,421,589 $ 21,206,540 $ 21,316,584 $ 20,649,538 Borrowings 2,487,526 2,370,112 2,719,114 2,446,770 2,871,207 Other liabilities 785,511 1,016,783 835,357 729,824 831,200 Total Liabilities 24,810,660 24,808,484 24,761,011 24,493,178 24,351,945 Shareholders' equity 2,750,044 2,566,693 2,642,152 2,618,998 2,579,757 Total Liabilities and Shareholders' Equity $ 27,560,704 $ 27,375,177 $ 27,403,163 $ 27,112,176 $ 26,931,702 LOANS, DEPOSITS AND BORROWINGS DETAIL: Loans, by type: Real estate - commercial mortgage $ 8,127,728 $ 8,106,300 $ 7,846,861 $ 7,746,920 $ 7,693,835 Commercial and industrial 4,545,552 4,577,334 4,599,759 4,596,096 4,473,004 Real estate - residential mortgage 5,325,923 5,279,681 5,147,262 4,880,919 4,737,279 Real estate - home equity 1,047,184 1,045,438 1,061,891 1,074,712 1,102,838 Real estate - construction 1,239,075 1,078,263 1,308,564 1,326,754 1,269,925 Consumer 729,318 743,976 763,530 730,775 699,179 Leases and other loans(2) 336,314 346,516 316,818 314,012 303,487 Total Net Loans $ 21,351,094 $ 21,177,508 $ 21,044,685 $ 20,670,188 $ 20,279,547 Deposits, by type: Noninterest-bearing demand $ 5,314,094 $ 5,575,374 $ 5,865,855 $ 6,403,484 $ 7,006,388 Interest-bearing demand 5,722,695 5,757,487 5,543,320 5,478,237 5,410,903 Savings 6,616,901 6,707,729 6,646,448 6,579,806 6,434,621 Total demand and savings 17,653,690 18,040,590 18,055,623 18,461,527 18,851,912 Brokered 1,144,692 941,059 949,259 960,919 208,416 Time 2,739,241 2,439,940 2,201,658 1,894,138 1,589,210 Total Deposits $ 21,537,623 $ 21,421,589 $ 21,206,540 $ 21,316,584 $ 20,649,538 Borrowings, by type: Federal funds purchased $ 240,000 $ 544,000 $ 555,000 $ 525,000 $ 191,000 Federal Home Loan Bank advances 1,100,000 730,000 1,165,000 747,000 1,250,000 Senior debt and subordinated debt 535,384 540,174 539,994 539,814 539,634 Other borrowings 612,142 555,938 459,120 634,956 890,573 Total Borrowings $ 2,487,526 $ 2,370,112 $ 2,719,114 $ 2,446,770 $ 2,871,207 (1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures. (2) Includes equipment lease financing, overdraft and net origination fees and costs. FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (dollars in thousands, except per share) Three Months Ended Year ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 2023 2023 2023 2023 2022 2023 2022 Interest Income: Interest income $ 338,134 $ 330,371 $ 314,912 $ 289,820 $ 267,847 $ 1,273,236 $ 864,838 Interest expense 126,128 116,529 102,060 74,233 41,936 418,950 83,204 Net Interest Income 212,006 213,842 212,852 215,587 225,911 854,286 781,634 Provision for credit losses 9,808 9,937 9,747 24,544 14,513 54,036 28,021 Net Interest Income after Provision 202,198 203,905 203,105 191,043 211,398 800,250 753,613 Non-Interest Income: Commercial banking: Merchant and card 7,045 7,626 7,700 6,834 7,223 29,205 28,276 Cash management 6,030 5,960 5,835 5,515 5,756 23,340 23,729 Capital markets 4,258 2,960 6,092 2,344 2,627 15,654 12,256 Other commercial banking 3,447 3,176 3,518 2,820 2,998 12,961 11,518 Total commercial banking 20,780 19,722 23,145 17,513 18,604 81,160 75,779 Wealth management 19,388 19,413 18,678 18,062 17,531 75,541 72,843 Consumer banking: Card 6,739 6,770 6,592 6,243 6,331 26,343 24,472 Overdraft 2,991 2,996 2,696 2,733 3,364 11,416 15,480 Other consumer banking 2,357 2,407 2,432 2,241 2,380 9,438 9,544 Total consumer banking 12,087 12,173 11,720 11,217 12,075 47,197 49,496 Mortgage banking 2,288 3,190 2,940 1,970 2,140 10,388 14,204 Other 5,587 1,463 4,106 2,968 3,972 14,125 14,835 Non-interest income before investment securities gains (losses) 60,130 55,961 60,589 51,730 54,322 228,411 227,157 Investment securities gains (losses), net (752 ) — (4 ) 23 (1 ) (733 ) (27 ) Total Non-Interest Income 59,378 55,961 60,585 51,753 54,321 227,678 227,130 Non-Interest Expense: Salaries and employee benefits 97,275 96,757 94,102 89,283 92,733 377,417 356,884 Data processing and software 16,985 16,914 16,776 15,796 15,448 66,471 60,255 Other outside services 14,670 12,094 10,834 10,126 10,860 47,724 37,152 Net occupancy 14,647 14,561 14,374 14,438 14,061 58,019 56,195 FDIC insurance 11,138 4,738 4,895 4,795 3,219 25,565 12,547 Equipment 3,995 3,475 3,530 3,389 3,640 14,390 14,033 Marketing 3,550 1,913 1,655 1,886 2,380 9,004 6,885 Professional fees 2,302 1,869 1,829 2,392 2,945 8,392 9,123 Intangible amortization 597 601 1,072 674 688 2,944 1,731 Merger-related expenses — — — — 1,894 — 10,328 Other 15,393 18,098 18,951 16,837 20,594 69,281 68,595 Total Non-Interest Expense 180,552 171,020 168,018 159,616 168,462 679,207 633,728 Income Before Income Taxes 81,024 88,846 95,672 83,180 97,257 348,721 347,015 Income tax expense 16,761 16,749 16,065 14,866 15,424 64,441 60,034 Net Income 64,263 72,097 79,607 68,314 81,833 284,280 286,981 Preferred stock dividends (2,562 ) (2,562 ) (2,562 ) (2,562 ) (2,562 ) (10,248 ) (10,248 ) Net Income Available to Common Shareholders $ 61,701 $ 69,535 $ 77,045 $ 65,752 $ 79,271 $ 274,032 $ 276,733 Three Months Ended Year ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 2023 2023 2023 2023 2022 2023 2022 PER SHARE: Net income available to common shareholders (basic) $ 0.38 $ 0.42 $ 0.46 $ 0.39 $ 0.47 $ 1.66 $ 1.69 Net income available to common shareholders (diluted) $ 0.37 $ 0.42 $ 0.46 $ 0.39 $ 0.47 $ 1.64 $ 1.67 Cash dividends $ 0.17 $ 0.16 $ 0.16 $ 0.15 $ 0.21 $ 0.64 $ 0.66 Weighted average shares (basic) 163,975 164,566 165,854 166,605 167,504 165,241 164,119 Weighted average shares (diluted) 165,650 166,023 167,191 168,401 169,136 166,769 165,472 FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) (dollars in thousands) Three months ended December 31, 2023 September 30, 2023 December 31, 2022 Average Yield/ Average Yield/ Average Yield/ Balance Interest(1) Rate Balance Interest(1) Rate Balance Interest(1) Rate ASSETS Interest-earning assets: Net loans $ 21,255,779 $ 311,992 5.83 % $ 21,121,277 $ 304,167 5.72 % $ 20,004,513 $ 241,453 4.80 % Investment securities(2) 4,120,750 27,227 2.64 % 4,197,550 27,274 2.59 % 4,330,635 27,781 2.56 % Other interest-earning assets 267,329 3,464 5.17 % 263,244 3,372 5.11 % 460,082 2,923 2.53 % Total Interest-Earning Assets 25,643,858 342,683 5.31 % 25,582,071 334,813 5.20 % 24,795,230 272,157 4.36 % Noninterest-Earning assets: Cash and due from banks 282,614 306,496 149,472 Premises and equipment 219,994 217,447 223,245 Other assets 1,545,535 1,562,233 1,488,684 Less: ACL - loans(3) (294,330 ) (290,411 ) (270,276 ) Total Assets $ 27,397,671 $ 27,377,836 $ 26,386,355 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-Bearing liabilities: Demand deposits $ 5,723,169 $ 20,737 1.44 % $ 5,740,229 $ 18,690 1.29 % $ 5,479,443 $ 4,589 0.33 % Savings deposits 6,682,512 38,239 2.27 % 6,676,792 34,277 2.04 % 6,466,775 11,539 0.71 % Brokered deposits 1,051,369 14,078 5.31 % 937,657 12,250 5.18 % 215,729 1,947 3.58 % Time deposits 2,579,400 23,575 3.63 % 2,330,206 18,939 3.22 % 1,554,885 4,302 1.10 % Total Interest-Bearing Deposits 16,036,450 96,629 2.39 % 15,684,884 84,156 2.13 % 13,716,832 22,377 0.65 % Borrowings and other interest-bearing liabilities 2,541,727 29,499 4.58 % 2,691,087 32,373 4.74 % 2,025,522 19,559 3.83 % Total Interest-Bearing Liabilities 18,578,177 126,128 2.69 % 18,375,971 116,529 2.51 % 15,742,354 41,936 1.06 % Noninterest-Bearing liabilities: Demand deposits 5,440,098 5,672,411 7,310,824 Other noninterest-bearing liabilities 761,372 683,477 844,029 Total Liabilities 24,779,647 24,731,859 23,897,207 Total Deposits/Cost of Deposits 21,476,548 1.79 % 21,357,295 1.56 % 21,027,656 0.42 % Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds") 24,018,275 2.08 % 24,048,382 1.92 % 23,053,178 0.72 % Shareholders' equity 2,618,024 2,645,977 2,489,148 Total Liabilities and Shareholders' Equity $ 27,397,671 $ 27,377,836 $ 26,386,355 Net interest income/net interest margin (fully taxable equivalent) 216,555 3.36 % 218,284 3.40 % 230,221 3.69 % Tax equivalent adjustment (4,549 ) (4,442 ) (4,310 ) Net Interest Income $ 212,006 $ 213,842 $ 225,911 (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. (2) Balances include amortized historical cost for available for sale ("AFS") securities. The related unrealized holding gains (losses) are included in other assets. (3) "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 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 Loans, by type: Real estate - commercial mortgage $ 8,090,627 $ 7,912,801 $ 7,775,436 $ 7,720,975 $ 7,696,997 Commercial and industrial 4,579,441 4,611,376 4,629,919 4,565,923 4,372,935 Real estate - residential mortgage 5,303,632 5,209,105 5,008,295 4,790,868 4,643,784 Real estate - home equity 1,043,753 1,045,806 1,066,615 1,086,032 1,106,325 Real estate - construction 1,153,601 1,254,577 1,306,286 1,276,145 1,209,998 Consumer 746,011 761,273 763,407 721,248 679,108 Leases and other loans(1) 338,714 326,339 316,277 301,905 295,366 Total Net Loans $ 21,255,779 $ 21,121,277 $ 20,866,235 $ 20,463,096 $ 20,004,513 Deposits, by type: Noninterest-bearing demand $ 5,440,098 $ 5,672,411 $ 6,021,091 $ 6,641,741 $ 7,310,824 Interest-bearing demand 5,723,169 5,740,229 5,535,669 5,326,566 5,479,443 Savings 6,682,512 6,676,792 6,632,572 6,469,468 6,466,775 Total demand and savings 17,845,779 18,089,432 18,189,332 18,437,775 19,257,042 Brokered 1,051,369 937,657 954,773 439,670 215,729 Time 2,579,400 2,330,206 2,063,038 1,696,878 1,554,885 Total Deposits $ 21,476,548 $ 21,357,295 $ 21,207,143 $ 20,574,323 $ 21,027,656 Borrowings, by type: Federal funds purchased $ 446,707 $ 634,163 $ 679,401 $ 505,142 $ 261,737 Federal Home Loan Bank advances 760,087 793,098 880,811 1,261,589 564,692 Senior debt and subordinated debt 539,186 540,086 539,906 539,726 539,550 Other borrowings and other interest-bearing liabilities 795,747 723,740 690,742 752,227 659,543 Total Borrowings $ 2,541,727 $ 2,691,087 $ 2,790,860 $ 3,058,684 $ 2,025,522 (1) Includes equipment lease financing, overdraft and net origination fees and costs. FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) (dollars in thousands) Year ended December 31 2023 2022 Average Yield/ Average Yield/ Balance Interest(1) Rate Balance Interest(1) Rate ASSETS Interest-earning assets: Net loans $ 20,929,302 $ 1,166,376 5.57 % $ 19,152,740 $ 765,603 4.00 % Investment securities(2) 4,210,010 109,325 2.59 % 4,364,627 106,115 2.43 % Other interest-earning assets 387,360 15,346 3.96 % 829,705 8,115 0.98 % Total Interest-Earning Assets 25,526,672 1,291,047 5.06 % 24,347,072 879,833 3.61 % Noninterest-Earning assets: Cash and due from banks 215,649 156,050 Premises and equipment 219,315 220,982 Other assets 1,553,284 1,505,277 Less: ACL - loans(3) (285,216 ) (257,897 ) Total Assets $ 27,229,704 $ 25,971,484 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-Bearing liabilities: Demand deposits $ 5,582,930 $ 62,494 1.12 % $ 5,593,942 $ 8,219 0.15 % Savings deposits 6,616,087 122,340 1.85 % 6,458,165 16,642 0.26 % Brokered deposits 847,795 43,635 5.15 % 262,359 4,097 1.56 % Time deposits 2,170,245 63,735 2.94 % 1,617,804 14,871 0.92 % Total Interest-Bearing Deposits 15,217,057 292,204 1.92 % 13,932,270 43,829 0.31 % Borrowings and other interest-bearing liabilities 2,771,330 126,746 4.54 % 1,358,357 39,375 2.89 % Total Interest-Bearing Liabilities 17,988,387 418,950 2.32 % 15,290,627 83,204 0.54 % Noninterest-Bearing liabilities: Demand deposits 5,939,799 7,522,304 Other 670,269 598,230 Total Liabilities 24,598,455 23,411,161 Total Deposits/Cost of Deposits 21,156,856 1.38 % 21,454,574 0.20 % Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds") 23,928,186 1.75 % 22,812,931 0.36 % Shareholders' equity 2,631,249 2,560,323 Total Liabilities and Shareholders' Equity $ 27,229,704 $ 25,971,484 Net interest income/net interest margin (fully taxable equivalent) 872,097 3.42 % 796,629 3.27 % Tax equivalent adjustment (17,811 ) (14,995 ) Net Interest Income $ 854,286 $ 781,634 (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. (2) Balances include amortized historical cost for AFS. The related unrealized holding gains (losses) are included in other assets. (3) "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 2023 2022 Loans, by type: Real estate - commercial mortgage $ 7,876,076 $ 7,523,806 Commercial and industrial 4,596,742 4,230,133 Real estate - residential mortgage 5,079,739 4,261,527 Real estate - home equity 1,060,396 1,101,142 Real estate - construction 1,247,336 1,178,550 Consumer 748,089 569,305 Leases and other loans(1) 320,924 288,277 Total Net Loans $ 20,929,302 $ 19,152,740 Deposits, by type: Noninterest-bearing demand $ 5,939,799 $ 7,522,304 Interest-bearing demand 5,582,930 5,593,942 Savings 6,616,087 6,458,165 Total demand and savings 18,138,816 19,574,411 Brokered 847,795 262,359 Time 2,170,245 1,617,804 Total Deposits $ 21,156,856 $ 21,454,574 Borrowings, by type: Federal funds purchased $ 566,379 $ 91,125 Federal Home Loan Bank advances 922,164 194,295 Senior debt and subordinated debt 539,726 564,337 Other borrowings 743,061 508,600 Total Borrowings $ 2,771,330 $ 1,358,357 (1) Includes equipment lease financing, overdraft and net origination fees and costs. FULTON FINANCIAL CORPORATION ASSET QUALITY INFORMATION (UNAUDITED) (dollars in thousands) Three months ended Year Ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 Dec 31 2023 2023 2023 2023 2022 2023 2022 Allowance for credit losses related to net loans: Balance at beginning of period $ 292,739 $ 287,442 $ 278,695 $ 269,366 $ 266,838 $ 269,366 $ 249,001 CECL Day 1 provision expense — — — — — — 7,954 Initial purchased credit deteriorated loans — — — — — — 1,135 Loans charged off: Real estate - commercial mortgage (3,547 ) (860 ) (230 ) (13,362 ) (12,235 ) (17,999 ) (12,473 ) Commercial and industrial (3,397 ) (3,220 ) (2,017 ) (612 ) (179 ) (9,246 ) (2,390 ) Real estate - residential mortgage — — (62 ) — — (62 ) (66 ) Consumer and home equity (2,192 ) (1,803 ) (1,313 ) (2,206 ) (1,311 ) (7,514 ) (4,412 ) Real estate - construction — — — — — — — Leases and other loans(1) (1,096 ) (1,396 ) (1,165 ) (723 ) (505 ) (4,380 ) (2,131 ) Total loans charged off (10,232 ) (7,279 ) (4,787 ) (16,903 ) (14,230 ) (39,201 ) (21,472 ) Recoveries of loans previously charged off: Real estate - commercial mortgage 160 101 29 786 183 1,076 3,860 Commercial and industrial 779 620 988 1,086 961 3,473 5,893 Real estate - residential mortgage 278 37 58 48 10 421 425 Consumer and home equity 555 1,023 959 661 683 3,198 2,581 Real estate - construction 87 — 569 202 530 858 574 Leases and other loans(1) 374 400 213 116 132 1,103 759 Recoveries of loans previously charged off 2,233 2,181 2,816 2,899 2,499 10,129 14,092 Net loans (charged off) recovered (7,999 ) (5,098 ) (1,971 ) (14,004 ) (11,731 ) (29,072 ) (7,380 ) Provision for credit losses 8,664 10,395 10,718 23,333 14,259 53,110 18,656 Balance at end of period $ 293,404 $ 292,739 $ 287,442 $ 278,695 $ 269,366 $ 293,404 $ 269,366 Net charge-offs (recoveries) to average loans 0.15 % 0.10 % 0.04 % 0.27 % 0.23 % 0.14 % 0.04 % Provision for credit losses related to OBS Credit Exposures Provision for credit losses $ 1,144 $ (458 ) $ (971 ) $ 1,211 $ 254 $ 926 $ 1,411 NON-PERFORMING ASSETS: Non-accrual loans $ 121,620 $ 113,022 $ 123,280 $ 134,303 $ 144,443 Loans 90 days past due and accruing 31,721 27,962 24,415 30,336 27,463 Total non-performing loans 153,341 140,984 147,695 164,639 171,906 Other real estate owned 896 2,549 3,881 3,304 5,790 Total non-performing assets $ 154,237 $ 143,533 $ 151,576 $ 167,943 $ 177,696 NON-PERFORMING LOANS, BY TYPE: Real estate - commercial mortgage $ 46,527 $ 44,058 $ 55,048 $ 61,322 $ 72,634 Commercial and industrial 41,020 33,365 30,588 33,555 28,288 Real estate - residential mortgage 42,029 40,560 39,157 46,576 46,509 Consumer and home equity 10,878 11,580 10,469 8,983 9,800 Real estate - construction 2,876 677 1,099 1,509 1,368 Leases and other loans(1) 10,011 10,744 11,334 12,694 13,307 Total non-performing loans $ 153,341 $ 140,984 $ 147,695 $ 164,639 $ 171,906 (1) Includes equipment lease financing, overdraft and net origination fees and costs. FULTON FINANCIAL CORPORATION RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (dollars in thousands, except per share data) Explanatory note: This press release contains supplemental financial information, as detailed below, that has been derived by methods other than GAAP. The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow: Three months ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 Operating net income available to common shareholders Net income available to common shareholders $ 61,701 $ 69,535 $ 77,045 $ 65,752 $ 79,271 Plus: Core deposit intangible amortization 441 441 912 514 514 Plus: Merger-related expenses — — — — 1,894 Plus: Interest rate derivative transition valuation(1) (1,102 ) 2,958 — — — Plus: FDIC special assessment 6,494 — — — — Plus: FultonFirst initiative 3,197 — — — — Less: Tax impact of adjustments (1,896 ) (714 ) (192 ) (108 ) (506 ) Operating net income available to common shareholders (numerator) $ 68,835 $ 72,220 $ 77,765 $ 66,158 $ 81,173 Weighted average shares (diluted) (denominator) 165,650 166,023 167,191 168,401 169,136 Operating net income available to common shareholders, per share (diluted) $ 0.42 $ 0.43 $ 0.47 $ 0.39 $ 0.48 Common shareholders' equity (tangible), per share Shareholders' equity $ 2,750,044 $ 2,566,693 $ 2,642,152 $ 2,618,998 $ 2,579,757 Less: Preferred stock (192,878 ) (192,878 ) (192,878 ) (192,878 ) (192,878 ) Less: Goodwill and intangible assets (560,687 ) (561,284 ) (561,885 ) (563,502 ) (560,824 ) Tangible common shareholders' equity (numerator) $ 1,996,479 $ 1,812,531 $ 1,887,389 $ 1,862,618 $ 1,826,055 Shares outstanding, end of period (denominator) 163,801 164,084 166,097 165,396 167,599 Common shareholders' equity (tangible), per share $ 12.19 $ 11.05 $ 11.36 $ 11.26 $ 10.90 Operating return on average assets Net income $ 64,263 $ 72,097 $ 79,607 $ 68,314 $ 81,833 Plus: Core deposit intangible amortization 441 441 912 514 514 Plus: Merger-related expenses — — — — 1,894 Plus: Interest rate derivative transition valuation(1) (1,102 ) 2,958 — — — Plus: FDIC special assessment 6,494 — — — — Plus: FultonFirst initiative 3,197 — — — — Less: Tax impact of adjustments (1,896 ) (714 ) (192 ) (108 ) (506 ) Operating net income (numerator) $ 71,397 $ 74,782 $ 80,327 $ 68,720 $ 83,735 Total average assets $ 27,397,671 $ 27,377,836 $ 27,235,567 $ 26,900,653 $ 26,386,355 Less: Average net core deposit intangible (5,106 ) (5,548 ) (6,417 ) (6,937 ) (7,478 ) Total operating average assets (denominator) $ 27,392,565 $ 27,372,288 $ 27,229,150 $ 26,893,716 $ 26,378,877 Operating return on average assets 1.03 % 1.08 % 1.18 % 1.04 % 1.26 % (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. Three months ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 Return on average common shareholders' equity (tangible) Net income available to common shareholders $ 61,701 $ 69,535 $ 77,045 $ 65,752 $ 79,271 Plus: Intangible amortization 597 601 1,072 674 688 Plus: Merger-related expenses — — — — 1,894 Plus: Interest rate derivative transition valuation(1) (1,102 ) 2,958 — — — Plus: FDIC special assessment 6,494 — — — — Plus: FultonFirst initiative 3,197 — — — — Less: Tax impact of adjustments (1,929 ) (747 ) (225 ) (142 ) (542 ) Adjusted net income available to common shareholders (numerator) $ 68,958 $ 72,347 $ 77,892 $ 66,284 $ 81,311 Average shareholders' equity $ 2,618,024 $ 2,645,977 $ 2,647,464 $ 2,613,316 $ 2,489,148 Less: Average preferred stock (192,878 ) (192,878 ) (192,878 ) (192,878 ) (192,878 ) Less: Average goodwill and intangible assets (560,977 ) (561,578 ) (563,146 ) (561,744 ) (561,219 ) Average tangible common shareholders' equity (denominator) $ 1,864,169 $ 1,891,521 $ 1,891,440 $ 1,858,694 $ 1,735,051 Return on average common shareholders' equity (tangible) 14.68 % 15.17 % 16.52 % 14.46 % 18.59 % Tangible common equity to tangible assets (TCE Ratio) Shareholders' equity $ 2,750,044 $ 2,566,693 $ 2,642,152 $ 2,618,998 $ 2,579,757 Less: Preferred stock (192,878 ) (192,878 ) (192,878 ) (192,878 ) (192,878 ) Less: Goodwill and intangible assets (560,687 ) (561,284 ) (561,885 ) (563,502 ) (560,824 ) Tangible common shareholders' equity (numerator) $ 1,996,479 $ 1,812,531 $ 1,887,389 $ 1,862,618 $ 1,826,055 Total assets $ 27,560,704 $ 27,375,177 $ 27,403,163 $ 27,112,176 $ 26,931,702 Less: Goodwill and intangible assets (560,687 ) (561,284 ) (561,885 ) (563,502 ) (560,824 ) Total tangible assets (denominator) $ 27,000,017 $ 26,813,893 $ 26,841,278 $ 26,548,674 $ 26,370,878 Tangible common equity to tangible assets 7.39 % 6.76 % 7.03 % 7.02 % 6.92 % Efficiency ratio Non-interest expense $ 180,552 $ 171,020 $ 168,018 $ 159,616 $ 168,462 Less: Amortization of tax credit investments — — — — (696 ) Less: Merger-related expenses — — — — (1,894 ) Less: FDIC special assessment (6,494 ) — — — — Less: FultonFirst initiative (3,197 ) — — — — Less: Intangible amortization (597 ) (601 ) (1,072 ) (674 ) (688 ) Less: Debt extinguishment 720 — — — — Non-interest expense (numerator) $ 170,984 $ 170,419 $ 166,946 $ 158,942 $ 165,184 Net interest income $ 212,006 $ 213,842 $ 212,852 $ 215,587 $ 225,911 Tax equivalent adjustment 4,549 4,442 4,405 4,414 4,310 Plus: Total non-interest income 59,378 55,961 60,585 51,753 54,321 Plus: Interest rate derivative transition valuation(1) (1,102 ) 2,958 — — — Less: Investment securities (gains) losses, net 752 — 4 (23 ) 1 Total revenue (denominator) $ 275,583 $ 277,203 $ 277,846 $ 271,731 $ 284,543 Efficiency ratio 62.0 % 61.5 % 60.1 % 58.5 % 58.1 % (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. Three months ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 Operating non-interest expenses to total average assets Non-interest expense $ 180,552 $ 171,020 $ 168,018 $ 159,616 $ 168,462 Less: Amortization of tax credit investments — — — — (696 ) Less: Intangible amortization (597 ) (601 ) (1,072 ) (674 ) (688 ) Less: Merger-related expenses — — — — (1,894 ) Less: FDIC special assessment (6,494 ) — — — — Less: FultonFirst initiatives (3,197 ) — — — — Non-interest expense (numerator) $ 170,264 $ 170,419 $ 166,946 $ 158,942 $ 165,184 Total average assets (denominator) $ 27,397,671 $ 27,377,836 $ 27,235,567 $ 26,900,653 $ 26,386,355 Operating non-interest expenses to total average assets 2.47 % 2.47 % 2.46 % 2.40 % 2.48 % Pre-provision net revenue Net interest income $ 212,006 $ 213,842 $ 212,852 $ 215,587 $ 225,911 Non-interest income 59,378 55,961 60,585 51,753 54,321 Plus: Interest rate derivative transition valuation(1) (1,102 ) 2,958 — — — Less: Investment securities (gains) losses, net 752 — 4 (23 ) 1 Total revenue $ 271,034 $ 272,761 $ 273,441 $ 267,317 $ 280,233 Non-interest expense $ 180,552 $ 171,020 $ 168,018 $ 159,616 $ 168,462 Less: Amortization on tax credit investments — — — — (696 ) Less: Merger-related expenses — — — — (1,894 ) Less: Intangible amortization (597 ) (601 ) (1,072 ) (674 ) (688 ) Less: FDIC special assessment (6,494 ) — — — — Less: FultonFirst initiative (3,197 ) — — — — Less: Debt extinguishment 720 — — — — Total non-interest expense $ 170,984 $ 170,419 $ 166,946 $ 158,942 $ 165,184 Pre-provision net revenue $ 100,050 $ 102,342 $ 106,495 $ 108,375 $ 115,049 Year ended Dec 31 2023 Operating net income available to common shareholders Net income available to common shareholders $ 274,032 Plus: Core deposit intangible amortization 2,308 Plus: Interest rate derivative transition valuation(1) 1,855 Plus: FDIC special assessment 6,494 Plus: FultonFirst initiative 3,197 Less: Tax impact of adjustments (2,909 ) Operating net income available to common shareholders (numerator) $ 284,977 Weighted average shares (diluted) (denominator) 166,769 Operating net income available to common shareholders, per share (diluted) $ 1.71 (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. Note: numbers in this report may not sum due to rounding. View source version on businesswire.com: https://www.businesswire.com/news/home/20240116531563/en/Contacts Media Contact: Lacey Dean (717) 735-8688 Investor Contact: Matt Jozwiak (717) 327-2657
Fulton Financial Corporation (NASDAQ: FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $61.7 million, or $0.37 per diluted share, for the fourth quarter of 2023, a decrease of $7.8 million, or 11.3%, in comparison to the third quarter of 2023. Operating net income available to common shareholders for the three months ended December 31, 2023 was $68.8 million, or $0.42 per diluted share(1). This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240116531563/en/ For the year ended December 31, 2023, net income available to common shareholders was $274.0 million, or $1.64 per diluted share, a decrease of $2.7 million, or 1.0%, in comparison to the same period in 2022. Operating net income available to common shareholders for the year-ended December 31, 2023 was $285.0 million, or $1.71 per diluted share(1). During the fourth quarter of 2023, the Corporation launched the "FultonFirst" initiative that is focused on evaluating and improving how Fulton operates. Approximately $3.2 million was recorded in the fourth quarter of 2023 related to this initiative. Additionally, the Corporation recognized a Federal Deposit Insurance Corporation ("FDIC") special assessment charge of $6.5 million. "2023 was an extraordinary year and we were pleased with our results," said Curtis J. Myers, Chairman and CEO of Fulton Financial Corporation. "Our team advanced our strategic objectives. We grew loans and deposits in a challenging environment, delivered enhancements to the customer experience, continued to operate with excellence and served our stakeholders well. Looking forward, 2024 is full of opportunity." Net Interest Income and Balance Sheet Net interest income for the fourth quarter of 2023 was $212.0 million, a decrease of $1.8 million in comparison to the third quarter of 2023. The net interest margin for the fourth quarter of 2023 decreased four basis points, to 3.36%, in comparison to 3.40% in the third quarter of 2023. (1) Financial measure derived by methods other than generally accepted accounting principles ("GAAP"). Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of the press release. The linked-quarter decrease in net interest income was primarily due to an increase in the rate on average interest-bearing deposits and a shift in the funding mix from noninterest-bearing demand deposits to interest-bearing deposits, partially offset by higher loan yields, a lower rate on borrowings and other interest-bearing liabilities, an increase in the average balance of net loans and a decrease in the average balance of borrowings and other interest-bearing liabilities. An 11 basis point increase in the yield on average net loans and an increase in the average balance of net loans of $134.5 million in the fourth quarter of 2023 drove an increase in interest income of $7.8 million to $338.1 million in comparison to $330.4 million in the third quarter of 2023. Interest expense on interest-bearing liabilities for the fourth quarter of 2023 increased by $9.6 million to $126.1 million in comparison to $116.5 million in the third quarter of 2023. The linked-quarter increase in interest expense in the fourth quarter of 2023 was primarily due to an increase in the rate on average interest-bearing deposits of 26 basis points, a decline of $232.3 million in the average balance of noninterest-bearing deposits and an increase in the average balance of interest-bearing deposits of $351.6 million in comparison to the third quarter of 2023, partially offset by a decrease in the rate on borrowings and other interest-bearing deposits of 16 basis points and a decrease in the average balance of borrowings and other interest-bearing deposits of $149.4 million. For the fourth quarter of 2023, net interest income was $212.0 million, a decrease of $13.9 million, or 6.2%, in comparison to the fourth quarter of 2022. Interest income for the fourth quarter of 2023 increased by $70.3 million to $338.1 million in comparison to $267.8 million in the fourth quarter of 2022, primarily driven by rising interest rates resulting in an increase in interest income from net loans of $70.1 million. Increases in the average balance of net loans of $1.3 billion and in yields on net loans of 103 basis points in the fourth quarter of 2023 compared to the fourth quarter of 2022 each contributed to the increase in interest income. Interest expense on interest-bearing liabilities for the fourth quarter of 2023 increased by $84.2 million to $126.1 million in comparison to $41.9 million in the fourth quarter of 2022, primarily driven by rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings and other interest-bearing liabilities of $74.3 million and $9.9 million, respectively. A decrease in the average balance of noninterest-bearing deposits of $1.9 billion and an increase in the average balances of interest-bearing deposits and borrowings and other interest-bearing liabilities of $2.3 billion and $516.2 million, respectively, in the fourth quarter of 2023 in comparison to the fourth quarter of 2022 also contributed to the increase in interest expense. Total average interest-earning assets for the fourth quarter of 2023 were $25.6 billion, an increase of $61.8 million from the third quarter of 2023 primarily driven by an increase in average net loans of $134.5 million, partially offset by a decrease in average investment securities of $76.8 million. Total average interest-earning assets for the fourth quarter of 2023 increased by $848.6 million from the fourth quarter of 2022. Average net loans for the fourth quarter of 2023 were $21.3 billion, an increase of $1.3 billion from the same period in 2022. Compared to the fourth quarter of 2022, average investment securities decreased $209.9 million and average other interest-earning assets decreased $192.8 million in the fourth quarter of 2023. Total average interest-bearing liabilities increased $202.2 million to $18.6 billion in the fourth quarter of 2023 in comparison to $18.4 billion in the third quarter of 2023. The increase in average interest-bearing liabilities was driven by an increase in the average balance of total interest-bearing deposits of $351.6 million, partially offset by a decrease in the average balance of borrowings and other interest-bearing liabilities of $149.4 million. Total average interest-bearing liabilities for the fourth quarter of 2023 increased $2.8 billion to $18.6 billion in comparison to $15.7 billion in the fourth quarter of 2022, driven by increases in the average balances of total interest-bearing deposits and borrowings and other interest-bearing liabilities of $2.3 billion and $0.5 billion, respectively. Asset Quality In the fourth quarter of 2023, a provision for credit losses of $9.8 million was recorded in comparison to $9.9 million in the third quarter of 2023 and $14.5 million in the fourth quarter of 2022. The provision for credit losses of $9.8 million recorded in the fourth quarter of 2023 was primarily due to loan growth and some weakening of credit metrics. Non-performing assets were $154.2 million, or 0.56% of total assets, at December 31, 2023, in comparison to $143.5 million, or 0.52% of total assets, at September 30, 2023, and $177.7 million, or 0.66% of total assets, at December 31, 2022. Net charge-offs for the fourth quarter of 2023 were 0.15% of total average loans in comparison to 0.10% and 0.23% in the third quarter of 2023 and the fourth quarter of 2022, respectively. Non-interest Income Non-interest income before investment securities gains (losses) in the fourth quarter of 2023 was $60.1 million, an increase of $4.2 million, or 7.4%, from the third quarter of 2023. The increase in non-interest income was primarily due to a $4.1 million linked-quarter net change from market movements in our commercial customer interest rate swap program resulting from the reference rate transition from the London Inter-Bank Offered Rate ("LIBOR") to the Secured Overnight Financing Rate ("SOFR"), reflected as an increase to other non-interest income. Additional contributors to the increase in non-interest income were increases of $1.4 million in commercial customer interest rate swap fee income, reflected in capital markets, and a $0.6 million increase in cash surrender value of life insurance policies, reflected in other income, partially offset by decreases in mortgage banking income, income from equity method investments, reflected in other income, and merchant and card income of $0.9 million, $0.7 million and $0.6 million, respectively. Compared to the fourth quarter of 2022, non-interest income before investment securities gains (losses) in the fourth quarter of 2023 increased $5.8 million, or 10.7%, from $54.3 million. The increase in non-interest income was primarily due to increases of $1.9 million in wealth management revenues, $1.6 million in commercial customer interest rate swap fee income, reflected in capital markets, a $1.1 million market valuation movement in our commercial customer interest rate swap program resulting from the reference rate transition from LIBOR to SOFR and reflected as an increase to other non-interest income, a $0.7 million increase in cash surrender value of life insurance policies, reflected in other income, a $0.3 million increase in cash management fee income and a $0.3 million increase in gains on sale from Small Business Association ("SBA") loans, reflected in other commercial banking income. Non-interest Expense Non-interest expense was $180.6 million in the fourth quarter of 2023, an increase of $9.5 million, or 5.6%, compared to $171.0 million in the third quarter of 2023. The increase was primarily due to increases of $6.4 million in FDIC insurance expense, primarily due to the special assessment of $6.5 million charged to recover the loss to the Deposit Insurance Fund in connection with the closures of certain banks in 2023, $2.6 million in other outside services related to consulting fees incurred for the FultonFirst initiative, $1.6 million in marketing expense due to a targeted customer deposit acquisition program and brand marketing campaigns in growth markets, partially offset by a $0.7 million gain from debt extinguishment recorded in the fourth quarter of 2023, reflected in other expense. Included in salaries and benefits expense was $0.6 million for severance expense incurred as a result of the FultonFirst initiative. Compared to the fourth quarter of 2022, non-interest expense, excluding merger-related expenses of $1.9 million in the fourth quarter of 2022, increased $14.0 million, or 8.4%. The increase was primarily due to increases of $7.9 million in FDIC insurance expense, primarily due to the special assessment of $6.5 million discussed above and the adoption of a final rule to increase base deposit insurance assessment rates effective January 1, 2023, $4.5 million in salaries and employee benefits expense, $3.8 million in other outside services expense driven by the FultonFirst initiative, partially offset by a $1.6 million decrease related to a contingent liability recorded in 2022 and a $0.7 million gain from debt extinguishment recorded in the fourth quarter of 2023, both reflected in other expense. The $4.5 million increase in salaries and benefits expense was primarily driven by annual merit increases, lower deferred employee loan origination costs, higher employee benefits expense, due to healthcare claims experience, and higher pension costs, partially offset by lower incentive plan compensation expense. Also included in salaries and benefits expense was $0.6 million for severance expense incurred as a result of the FultonFirst initiative. Income Tax Expense For 2023 the effective tax rate was 18.5% in comparison to 17.3% for 2022. 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, 2022, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov). Non-GAAP Financial Measures The Corporation uses certain financial measures in this press release that have been derived from methods other than GAAP. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this press release. FULTON FINANCIAL CORPORATION SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) (dollars in thousands, except per share data) Three months ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 Ending Balances Investment securities $ 3,666,274 $ 3,698,601 $ 3,867,334 $ 3,950,101 $ 3,968,023 Net loans 21,351,094 21,177,508 21,044,685 20,670,188 20,279,547 Total assets 27,560,704 27,375,177 27,403,163 27,112,176 26,931,702 Deposits 21,537,623 21,421,589 21,206,540 21,316,584 20,649,538 Shareholders' equity 2,750,044 2,566,693 2,642,152 2,618,998 2,579,757 Average Balances Investment securities 3,665,261 3,834,824 3,916,130 3,964,615 3,936,579 Net loans 21,255,779 21,121,277 20,866,235 20,463,096 20,004,513 Total assets 27,397,671 27,377,836 27,235,567 26,900,653 26,386,355 Deposits 21,476,548 21,357,295 21,207,143 20,574,323 21,027,656 Shareholders' equity 2,618,024 2,645,977 2,647,464 2,613,316 2,489,148 Income Statement Net interest income 212,006 213,842 212,852 215,587 225,911 Provision for credit losses 9,808 9,937 9,747 24,544 14,513 Non-interest income 59,378 55,961 60,585 51,753 54,321 Non-interest expense 180,552 171,020 168,018 159,616 168,462 Income before taxes 81,024 88,846 95,672 83,180 97,257 Net income available to common shareholders 61,701 69,535 77,045 65,752 79,271 Pre-provision net revenue(1) 100,050 102,342 106,495 108,375 115,049 Per Share Net income available to common shareholders (basic) $ 0.38 $ 0.42 $ 0.46 $ 0.39 $ 0.47 Net income available to common shareholders (diluted) $ 0.37 $ 0.42 $ 0.46 $ 0.39 $ 0.47 Operating net income available to common shareholders(1) $ 0.42 $ 0.43 $ 0.47 $ 0.39 $ 0.48 Cash dividends $ 0.17 $ 0.16 $ 0.16 $ 0.15 $ 0.21 Common shareholders' equity $ 15.61 $ 14.47 $ 14.75 $ 14.67 $ 14.24 Common shareholders' equity (tangible)(1) $ 12.19 $ 11.05 $ 11.36 $ 11.26 $ 10.90 Weighted average shares (basic) 163,975 164,566 165,854 166,605 167,504 Weighted average shares (diluted) 165,650 166,023 167,191 168,401 169,136 (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 2023 2023 2023 2023 2022 Asset Quality Net charge-offs (recoveries) to average loans 0.15 % 0.10 % 0.04 % 0.27 % 0.23 % Non-performing loans to total net loans 0.72 % 0.67 % 0.70 % 0.80 % 0.85 % Non-performing assets to total assets 0.56 % 0.52 % 0.55 % 0.62 % 0.66 % ACL - loans(1) to total loans 1.37 % 1.38 % 1.37 % 1.35 % 1.33 % ACL - loans(1) to non-performing loans 191 % 208 % 195 % 169 % 157 % Profitability Return on average assets 0.93 % 1.04 % 1.17 % 1.03 % 1.23 % Operating return on average assets(2) 1.03 % 1.08 % 1.18 % 1.04 % 1.26 % Return on average common shareholders' equity 10.09 % 11.25 % 12.59 % 11.02 % 13.70 % Return on average common shareholders' equity (tangible)(2) 14.68 % 15.17 % 16.52 % 14.46 % 18.59 % Net interest margin 3.36 % 3.40 % 3.40 % 3.53 % 3.69 % Efficiency ratio(2) 62.0 % 61.5 % 60.1 % 58.5 % 58.1 % Non-interest expenses to total average assets 2.61 % 2.48 % 2.47 % 2.41 % 2.53 % Operating non-interest expenses to total average assets(2) 2.47 % 2.47 % 2.46 % 2.40 % 2.48 % Capital Ratios Tangible common equity ratio ("TCE")(2) 7.4 % 6.8 % 7.0 % 7.0 % 6.9 % Tier 1 leverage ratio(3) 9.5 % 9.4 % 9.3 % 9.2 % 9.5 % Common equity Tier 1 capital ratio(3) 10.4 % 10.3 % 10.1 % 9.8 % 10.0 % Tier 1 risk-based capital ratio(3) 11.2 % 11.1 % 11.0 % 10.6 % 10.9 % Total risk-based capital ratio(3) 14.1 % 14.0 % 13.8 % 13.4 % 13.6 % (1) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet ("OBS") credit exposures. (2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release. (3) Regulatory capital ratios as of December 31, 2023 are preliminary estimates and prior periods are actual. FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) (dollars in thousands) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 ASSETS Cash and due from banks $ 300,343 $ 304,042 $ 123,779 $ 129,003 $ 126,898 Other interest-earning assets 373,772 222,781 505,141 545,355 685,209 Loans held for sale 15,158 20,368 14,673 6,507 7,264 Investment securities 3,666,274 3,698,601 3,867,334 3,950,101 3,968,023 Net loans 21,351,094 21,177,508 21,044,685 20,670,188 20,279,547 Less: ACL - loans(1) (293,404 ) (292,739 ) (287,442 ) (278,695 ) (269,366 ) Loans, net 21,057,690 20,884,769 20,757,243 20,391,493 20,010,181 Net premises and equipment 222,881 215,626 216,322 216,059 225,141 Accrued interest receivable 107,972 101,624 96,991 90,267 91,579 Goodwill and intangible assets 560,687 561,284 561,885 563,502 560,824 Other assets 1,255,927 1,366,082 1,259,795 1,219,889 1,256,583 Total Assets $ 27,560,704 $ 27,375,177 $ 27,403,163 $ 27,112,176 $ 26,931,702 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits $ 21,537,623 $ 21,421,589 $ 21,206,540 $ 21,316,584 $ 20,649,538 Borrowings 2,487,526 2,370,112 2,719,114 2,446,770 2,871,207 Other liabilities 785,511 1,016,783 835,357 729,824 831,200 Total Liabilities 24,810,660 24,808,484 24,761,011 24,493,178 24,351,945 Shareholders' equity 2,750,044 2,566,693 2,642,152 2,618,998 2,579,757 Total Liabilities and Shareholders' Equity $ 27,560,704 $ 27,375,177 $ 27,403,163 $ 27,112,176 $ 26,931,702 LOANS, DEPOSITS AND BORROWINGS DETAIL: Loans, by type: Real estate - commercial mortgage $ 8,127,728 $ 8,106,300 $ 7,846,861 $ 7,746,920 $ 7,693,835 Commercial and industrial 4,545,552 4,577,334 4,599,759 4,596,096 4,473,004 Real estate - residential mortgage 5,325,923 5,279,681 5,147,262 4,880,919 4,737,279 Real estate - home equity 1,047,184 1,045,438 1,061,891 1,074,712 1,102,838 Real estate - construction 1,239,075 1,078,263 1,308,564 1,326,754 1,269,925 Consumer 729,318 743,976 763,530 730,775 699,179 Leases and other loans(2) 336,314 346,516 316,818 314,012 303,487 Total Net Loans $ 21,351,094 $ 21,177,508 $ 21,044,685 $ 20,670,188 $ 20,279,547 Deposits, by type: Noninterest-bearing demand $ 5,314,094 $ 5,575,374 $ 5,865,855 $ 6,403,484 $ 7,006,388 Interest-bearing demand 5,722,695 5,757,487 5,543,320 5,478,237 5,410,903 Savings 6,616,901 6,707,729 6,646,448 6,579,806 6,434,621 Total demand and savings 17,653,690 18,040,590 18,055,623 18,461,527 18,851,912 Brokered 1,144,692 941,059 949,259 960,919 208,416 Time 2,739,241 2,439,940 2,201,658 1,894,138 1,589,210 Total Deposits $ 21,537,623 $ 21,421,589 $ 21,206,540 $ 21,316,584 $ 20,649,538 Borrowings, by type: Federal funds purchased $ 240,000 $ 544,000 $ 555,000 $ 525,000 $ 191,000 Federal Home Loan Bank advances 1,100,000 730,000 1,165,000 747,000 1,250,000 Senior debt and subordinated debt 535,384 540,174 539,994 539,814 539,634 Other borrowings 612,142 555,938 459,120 634,956 890,573 Total Borrowings $ 2,487,526 $ 2,370,112 $ 2,719,114 $ 2,446,770 $ 2,871,207 (1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures. (2) Includes equipment lease financing, overdraft and net origination fees and costs. FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (dollars in thousands, except per share) Three Months Ended Year ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 2023 2023 2023 2023 2022 2023 2022 Interest Income: Interest income $ 338,134 $ 330,371 $ 314,912 $ 289,820 $ 267,847 $ 1,273,236 $ 864,838 Interest expense 126,128 116,529 102,060 74,233 41,936 418,950 83,204 Net Interest Income 212,006 213,842 212,852 215,587 225,911 854,286 781,634 Provision for credit losses 9,808 9,937 9,747 24,544 14,513 54,036 28,021 Net Interest Income after Provision 202,198 203,905 203,105 191,043 211,398 800,250 753,613 Non-Interest Income: Commercial banking: Merchant and card 7,045 7,626 7,700 6,834 7,223 29,205 28,276 Cash management 6,030 5,960 5,835 5,515 5,756 23,340 23,729 Capital markets 4,258 2,960 6,092 2,344 2,627 15,654 12,256 Other commercial banking 3,447 3,176 3,518 2,820 2,998 12,961 11,518 Total commercial banking 20,780 19,722 23,145 17,513 18,604 81,160 75,779 Wealth management 19,388 19,413 18,678 18,062 17,531 75,541 72,843 Consumer banking: Card 6,739 6,770 6,592 6,243 6,331 26,343 24,472 Overdraft 2,991 2,996 2,696 2,733 3,364 11,416 15,480 Other consumer banking 2,357 2,407 2,432 2,241 2,380 9,438 9,544 Total consumer banking 12,087 12,173 11,720 11,217 12,075 47,197 49,496 Mortgage banking 2,288 3,190 2,940 1,970 2,140 10,388 14,204 Other 5,587 1,463 4,106 2,968 3,972 14,125 14,835 Non-interest income before investment securities gains (losses) 60,130 55,961 60,589 51,730 54,322 228,411 227,157 Investment securities gains (losses), net (752 ) — (4 ) 23 (1 ) (733 ) (27 ) Total Non-Interest Income 59,378 55,961 60,585 51,753 54,321 227,678 227,130 Non-Interest Expense: Salaries and employee benefits 97,275 96,757 94,102 89,283 92,733 377,417 356,884 Data processing and software 16,985 16,914 16,776 15,796 15,448 66,471 60,255 Other outside services 14,670 12,094 10,834 10,126 10,860 47,724 37,152 Net occupancy 14,647 14,561 14,374 14,438 14,061 58,019 56,195 FDIC insurance 11,138 4,738 4,895 4,795 3,219 25,565 12,547 Equipment 3,995 3,475 3,530 3,389 3,640 14,390 14,033 Marketing 3,550 1,913 1,655 1,886 2,380 9,004 6,885 Professional fees 2,302 1,869 1,829 2,392 2,945 8,392 9,123 Intangible amortization 597 601 1,072 674 688 2,944 1,731 Merger-related expenses — — — — 1,894 — 10,328 Other 15,393 18,098 18,951 16,837 20,594 69,281 68,595 Total Non-Interest Expense 180,552 171,020 168,018 159,616 168,462 679,207 633,728 Income Before Income Taxes 81,024 88,846 95,672 83,180 97,257 348,721 347,015 Income tax expense 16,761 16,749 16,065 14,866 15,424 64,441 60,034 Net Income 64,263 72,097 79,607 68,314 81,833 284,280 286,981 Preferred stock dividends (2,562 ) (2,562 ) (2,562 ) (2,562 ) (2,562 ) (10,248 ) (10,248 ) Net Income Available to Common Shareholders $ 61,701 $ 69,535 $ 77,045 $ 65,752 $ 79,271 $ 274,032 $ 276,733 Three Months Ended Year ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 2023 2023 2023 2023 2022 2023 2022 PER SHARE: Net income available to common shareholders (basic) $ 0.38 $ 0.42 $ 0.46 $ 0.39 $ 0.47 $ 1.66 $ 1.69 Net income available to common shareholders (diluted) $ 0.37 $ 0.42 $ 0.46 $ 0.39 $ 0.47 $ 1.64 $ 1.67 Cash dividends $ 0.17 $ 0.16 $ 0.16 $ 0.15 $ 0.21 $ 0.64 $ 0.66 Weighted average shares (basic) 163,975 164,566 165,854 166,605 167,504 165,241 164,119 Weighted average shares (diluted) 165,650 166,023 167,191 168,401 169,136 166,769 165,472 FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) (dollars in thousands) Three months ended December 31, 2023 September 30, 2023 December 31, 2022 Average Yield/ Average Yield/ Average Yield/ Balance Interest(1) Rate Balance Interest(1) Rate Balance Interest(1) Rate ASSETS Interest-earning assets: Net loans $ 21,255,779 $ 311,992 5.83 % $ 21,121,277 $ 304,167 5.72 % $ 20,004,513 $ 241,453 4.80 % Investment securities(2) 4,120,750 27,227 2.64 % 4,197,550 27,274 2.59 % 4,330,635 27,781 2.56 % Other interest-earning assets 267,329 3,464 5.17 % 263,244 3,372 5.11 % 460,082 2,923 2.53 % Total Interest-Earning Assets 25,643,858 342,683 5.31 % 25,582,071 334,813 5.20 % 24,795,230 272,157 4.36 % Noninterest-Earning assets: Cash and due from banks 282,614 306,496 149,472 Premises and equipment 219,994 217,447 223,245 Other assets 1,545,535 1,562,233 1,488,684 Less: ACL - loans(3) (294,330 ) (290,411 ) (270,276 ) Total Assets $ 27,397,671 $ 27,377,836 $ 26,386,355 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-Bearing liabilities: Demand deposits $ 5,723,169 $ 20,737 1.44 % $ 5,740,229 $ 18,690 1.29 % $ 5,479,443 $ 4,589 0.33 % Savings deposits 6,682,512 38,239 2.27 % 6,676,792 34,277 2.04 % 6,466,775 11,539 0.71 % Brokered deposits 1,051,369 14,078 5.31 % 937,657 12,250 5.18 % 215,729 1,947 3.58 % Time deposits 2,579,400 23,575 3.63 % 2,330,206 18,939 3.22 % 1,554,885 4,302 1.10 % Total Interest-Bearing Deposits 16,036,450 96,629 2.39 % 15,684,884 84,156 2.13 % 13,716,832 22,377 0.65 % Borrowings and other interest-bearing liabilities 2,541,727 29,499 4.58 % 2,691,087 32,373 4.74 % 2,025,522 19,559 3.83 % Total Interest-Bearing Liabilities 18,578,177 126,128 2.69 % 18,375,971 116,529 2.51 % 15,742,354 41,936 1.06 % Noninterest-Bearing liabilities: Demand deposits 5,440,098 5,672,411 7,310,824 Other noninterest-bearing liabilities 761,372 683,477 844,029 Total Liabilities 24,779,647 24,731,859 23,897,207 Total Deposits/Cost of Deposits 21,476,548 1.79 % 21,357,295 1.56 % 21,027,656 0.42 % Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds") 24,018,275 2.08 % 24,048,382 1.92 % 23,053,178 0.72 % Shareholders' equity 2,618,024 2,645,977 2,489,148 Total Liabilities and Shareholders' Equity $ 27,397,671 $ 27,377,836 $ 26,386,355 Net interest income/net interest margin (fully taxable equivalent) 216,555 3.36 % 218,284 3.40 % 230,221 3.69 % Tax equivalent adjustment (4,549 ) (4,442 ) (4,310 ) Net Interest Income $ 212,006 $ 213,842 $ 225,911 (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. (2) Balances include amortized historical cost for available for sale ("AFS") securities. The related unrealized holding gains (losses) are included in other assets. (3) "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 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 Loans, by type: Real estate - commercial mortgage $ 8,090,627 $ 7,912,801 $ 7,775,436 $ 7,720,975 $ 7,696,997 Commercial and industrial 4,579,441 4,611,376 4,629,919 4,565,923 4,372,935 Real estate - residential mortgage 5,303,632 5,209,105 5,008,295 4,790,868 4,643,784 Real estate - home equity 1,043,753 1,045,806 1,066,615 1,086,032 1,106,325 Real estate - construction 1,153,601 1,254,577 1,306,286 1,276,145 1,209,998 Consumer 746,011 761,273 763,407 721,248 679,108 Leases and other loans(1) 338,714 326,339 316,277 301,905 295,366 Total Net Loans $ 21,255,779 $ 21,121,277 $ 20,866,235 $ 20,463,096 $ 20,004,513 Deposits, by type: Noninterest-bearing demand $ 5,440,098 $ 5,672,411 $ 6,021,091 $ 6,641,741 $ 7,310,824 Interest-bearing demand 5,723,169 5,740,229 5,535,669 5,326,566 5,479,443 Savings 6,682,512 6,676,792 6,632,572 6,469,468 6,466,775 Total demand and savings 17,845,779 18,089,432 18,189,332 18,437,775 19,257,042 Brokered 1,051,369 937,657 954,773 439,670 215,729 Time 2,579,400 2,330,206 2,063,038 1,696,878 1,554,885 Total Deposits $ 21,476,548 $ 21,357,295 $ 21,207,143 $ 20,574,323 $ 21,027,656 Borrowings, by type: Federal funds purchased $ 446,707 $ 634,163 $ 679,401 $ 505,142 $ 261,737 Federal Home Loan Bank advances 760,087 793,098 880,811 1,261,589 564,692 Senior debt and subordinated debt 539,186 540,086 539,906 539,726 539,550 Other borrowings and other interest-bearing liabilities 795,747 723,740 690,742 752,227 659,543 Total Borrowings $ 2,541,727 $ 2,691,087 $ 2,790,860 $ 3,058,684 $ 2,025,522 (1) Includes equipment lease financing, overdraft and net origination fees and costs. FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) (dollars in thousands) Year ended December 31 2023 2022 Average Yield/ Average Yield/ Balance Interest(1) Rate Balance Interest(1) Rate ASSETS Interest-earning assets: Net loans $ 20,929,302 $ 1,166,376 5.57 % $ 19,152,740 $ 765,603 4.00 % Investment securities(2) 4,210,010 109,325 2.59 % 4,364,627 106,115 2.43 % Other interest-earning assets 387,360 15,346 3.96 % 829,705 8,115 0.98 % Total Interest-Earning Assets 25,526,672 1,291,047 5.06 % 24,347,072 879,833 3.61 % Noninterest-Earning assets: Cash and due from banks 215,649 156,050 Premises and equipment 219,315 220,982 Other assets 1,553,284 1,505,277 Less: ACL - loans(3) (285,216 ) (257,897 ) Total Assets $ 27,229,704 $ 25,971,484 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-Bearing liabilities: Demand deposits $ 5,582,930 $ 62,494 1.12 % $ 5,593,942 $ 8,219 0.15 % Savings deposits 6,616,087 122,340 1.85 % 6,458,165 16,642 0.26 % Brokered deposits 847,795 43,635 5.15 % 262,359 4,097 1.56 % Time deposits 2,170,245 63,735 2.94 % 1,617,804 14,871 0.92 % Total Interest-Bearing Deposits 15,217,057 292,204 1.92 % 13,932,270 43,829 0.31 % Borrowings and other interest-bearing liabilities 2,771,330 126,746 4.54 % 1,358,357 39,375 2.89 % Total Interest-Bearing Liabilities 17,988,387 418,950 2.32 % 15,290,627 83,204 0.54 % Noninterest-Bearing liabilities: Demand deposits 5,939,799 7,522,304 Other 670,269 598,230 Total Liabilities 24,598,455 23,411,161 Total Deposits/Cost of Deposits 21,156,856 1.38 % 21,454,574 0.20 % Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds") 23,928,186 1.75 % 22,812,931 0.36 % Shareholders' equity 2,631,249 2,560,323 Total Liabilities and Shareholders' Equity $ 27,229,704 $ 25,971,484 Net interest income/net interest margin (fully taxable equivalent) 872,097 3.42 % 796,629 3.27 % Tax equivalent adjustment (17,811 ) (14,995 ) Net Interest Income $ 854,286 $ 781,634 (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. (2) Balances include amortized historical cost for AFS. The related unrealized holding gains (losses) are included in other assets. (3) "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 2023 2022 Loans, by type: Real estate - commercial mortgage $ 7,876,076 $ 7,523,806 Commercial and industrial 4,596,742 4,230,133 Real estate - residential mortgage 5,079,739 4,261,527 Real estate - home equity 1,060,396 1,101,142 Real estate - construction 1,247,336 1,178,550 Consumer 748,089 569,305 Leases and other loans(1) 320,924 288,277 Total Net Loans $ 20,929,302 $ 19,152,740 Deposits, by type: Noninterest-bearing demand $ 5,939,799 $ 7,522,304 Interest-bearing demand 5,582,930 5,593,942 Savings 6,616,087 6,458,165 Total demand and savings 18,138,816 19,574,411 Brokered 847,795 262,359 Time 2,170,245 1,617,804 Total Deposits $ 21,156,856 $ 21,454,574 Borrowings, by type: Federal funds purchased $ 566,379 $ 91,125 Federal Home Loan Bank advances 922,164 194,295 Senior debt and subordinated debt 539,726 564,337 Other borrowings 743,061 508,600 Total Borrowings $ 2,771,330 $ 1,358,357 (1) Includes equipment lease financing, overdraft and net origination fees and costs. FULTON FINANCIAL CORPORATION ASSET QUALITY INFORMATION (UNAUDITED) (dollars in thousands) Three months ended Year Ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 Dec 31 2023 2023 2023 2023 2022 2023 2022 Allowance for credit losses related to net loans: Balance at beginning of period $ 292,739 $ 287,442 $ 278,695 $ 269,366 $ 266,838 $ 269,366 $ 249,001 CECL Day 1 provision expense — — — — — — 7,954 Initial purchased credit deteriorated loans — — — — — — 1,135 Loans charged off: Real estate - commercial mortgage (3,547 ) (860 ) (230 ) (13,362 ) (12,235 ) (17,999 ) (12,473 ) Commercial and industrial (3,397 ) (3,220 ) (2,017 ) (612 ) (179 ) (9,246 ) (2,390 ) Real estate - residential mortgage — — (62 ) — — (62 ) (66 ) Consumer and home equity (2,192 ) (1,803 ) (1,313 ) (2,206 ) (1,311 ) (7,514 ) (4,412 ) Real estate - construction — — — — — — — Leases and other loans(1) (1,096 ) (1,396 ) (1,165 ) (723 ) (505 ) (4,380 ) (2,131 ) Total loans charged off (10,232 ) (7,279 ) (4,787 ) (16,903 ) (14,230 ) (39,201 ) (21,472 ) Recoveries of loans previously charged off: Real estate - commercial mortgage 160 101 29 786 183 1,076 3,860 Commercial and industrial 779 620 988 1,086 961 3,473 5,893 Real estate - residential mortgage 278 37 58 48 10 421 425 Consumer and home equity 555 1,023 959 661 683 3,198 2,581 Real estate - construction 87 — 569 202 530 858 574 Leases and other loans(1) 374 400 213 116 132 1,103 759 Recoveries of loans previously charged off 2,233 2,181 2,816 2,899 2,499 10,129 14,092 Net loans (charged off) recovered (7,999 ) (5,098 ) (1,971 ) (14,004 ) (11,731 ) (29,072 ) (7,380 ) Provision for credit losses 8,664 10,395 10,718 23,333 14,259 53,110 18,656 Balance at end of period $ 293,404 $ 292,739 $ 287,442 $ 278,695 $ 269,366 $ 293,404 $ 269,366 Net charge-offs (recoveries) to average loans 0.15 % 0.10 % 0.04 % 0.27 % 0.23 % 0.14 % 0.04 % Provision for credit losses related to OBS Credit Exposures Provision for credit losses $ 1,144 $ (458 ) $ (971 ) $ 1,211 $ 254 $ 926 $ 1,411 NON-PERFORMING ASSETS: Non-accrual loans $ 121,620 $ 113,022 $ 123,280 $ 134,303 $ 144,443 Loans 90 days past due and accruing 31,721 27,962 24,415 30,336 27,463 Total non-performing loans 153,341 140,984 147,695 164,639 171,906 Other real estate owned 896 2,549 3,881 3,304 5,790 Total non-performing assets $ 154,237 $ 143,533 $ 151,576 $ 167,943 $ 177,696 NON-PERFORMING LOANS, BY TYPE: Real estate - commercial mortgage $ 46,527 $ 44,058 $ 55,048 $ 61,322 $ 72,634 Commercial and industrial 41,020 33,365 30,588 33,555 28,288 Real estate - residential mortgage 42,029 40,560 39,157 46,576 46,509 Consumer and home equity 10,878 11,580 10,469 8,983 9,800 Real estate - construction 2,876 677 1,099 1,509 1,368 Leases and other loans(1) 10,011 10,744 11,334 12,694 13,307 Total non-performing loans $ 153,341 $ 140,984 $ 147,695 $ 164,639 $ 171,906 (1) Includes equipment lease financing, overdraft and net origination fees and costs. FULTON FINANCIAL CORPORATION RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (dollars in thousands, except per share data) Explanatory note: This press release contains supplemental financial information, as detailed below, that has been derived by methods other than GAAP. The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow: Three months ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 Operating net income available to common shareholders Net income available to common shareholders $ 61,701 $ 69,535 $ 77,045 $ 65,752 $ 79,271 Plus: Core deposit intangible amortization 441 441 912 514 514 Plus: Merger-related expenses — — — — 1,894 Plus: Interest rate derivative transition valuation(1) (1,102 ) 2,958 — — — Plus: FDIC special assessment 6,494 — — — — Plus: FultonFirst initiative 3,197 — — — — Less: Tax impact of adjustments (1,896 ) (714 ) (192 ) (108 ) (506 ) Operating net income available to common shareholders (numerator) $ 68,835 $ 72,220 $ 77,765 $ 66,158 $ 81,173 Weighted average shares (diluted) (denominator) 165,650 166,023 167,191 168,401 169,136 Operating net income available to common shareholders, per share (diluted) $ 0.42 $ 0.43 $ 0.47 $ 0.39 $ 0.48 Common shareholders' equity (tangible), per share Shareholders' equity $ 2,750,044 $ 2,566,693 $ 2,642,152 $ 2,618,998 $ 2,579,757 Less: Preferred stock (192,878 ) (192,878 ) (192,878 ) (192,878 ) (192,878 ) Less: Goodwill and intangible assets (560,687 ) (561,284 ) (561,885 ) (563,502 ) (560,824 ) Tangible common shareholders' equity (numerator) $ 1,996,479 $ 1,812,531 $ 1,887,389 $ 1,862,618 $ 1,826,055 Shares outstanding, end of period (denominator) 163,801 164,084 166,097 165,396 167,599 Common shareholders' equity (tangible), per share $ 12.19 $ 11.05 $ 11.36 $ 11.26 $ 10.90 Operating return on average assets Net income $ 64,263 $ 72,097 $ 79,607 $ 68,314 $ 81,833 Plus: Core deposit intangible amortization 441 441 912 514 514 Plus: Merger-related expenses — — — — 1,894 Plus: Interest rate derivative transition valuation(1) (1,102 ) 2,958 — — — Plus: FDIC special assessment 6,494 — — — — Plus: FultonFirst initiative 3,197 — — — — Less: Tax impact of adjustments (1,896 ) (714 ) (192 ) (108 ) (506 ) Operating net income (numerator) $ 71,397 $ 74,782 $ 80,327 $ 68,720 $ 83,735 Total average assets $ 27,397,671 $ 27,377,836 $ 27,235,567 $ 26,900,653 $ 26,386,355 Less: Average net core deposit intangible (5,106 ) (5,548 ) (6,417 ) (6,937 ) (7,478 ) Total operating average assets (denominator) $ 27,392,565 $ 27,372,288 $ 27,229,150 $ 26,893,716 $ 26,378,877 Operating return on average assets 1.03 % 1.08 % 1.18 % 1.04 % 1.26 % (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. Three months ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 Return on average common shareholders' equity (tangible) Net income available to common shareholders $ 61,701 $ 69,535 $ 77,045 $ 65,752 $ 79,271 Plus: Intangible amortization 597 601 1,072 674 688 Plus: Merger-related expenses — — — — 1,894 Plus: Interest rate derivative transition valuation(1) (1,102 ) 2,958 — — — Plus: FDIC special assessment 6,494 — — — — Plus: FultonFirst initiative 3,197 — — — — Less: Tax impact of adjustments (1,929 ) (747 ) (225 ) (142 ) (542 ) Adjusted net income available to common shareholders (numerator) $ 68,958 $ 72,347 $ 77,892 $ 66,284 $ 81,311 Average shareholders' equity $ 2,618,024 $ 2,645,977 $ 2,647,464 $ 2,613,316 $ 2,489,148 Less: Average preferred stock (192,878 ) (192,878 ) (192,878 ) (192,878 ) (192,878 ) Less: Average goodwill and intangible assets (560,977 ) (561,578 ) (563,146 ) (561,744 ) (561,219 ) Average tangible common shareholders' equity (denominator) $ 1,864,169 $ 1,891,521 $ 1,891,440 $ 1,858,694 $ 1,735,051 Return on average common shareholders' equity (tangible) 14.68 % 15.17 % 16.52 % 14.46 % 18.59 % Tangible common equity to tangible assets (TCE Ratio) Shareholders' equity $ 2,750,044 $ 2,566,693 $ 2,642,152 $ 2,618,998 $ 2,579,757 Less: Preferred stock (192,878 ) (192,878 ) (192,878 ) (192,878 ) (192,878 ) Less: Goodwill and intangible assets (560,687 ) (561,284 ) (561,885 ) (563,502 ) (560,824 ) Tangible common shareholders' equity (numerator) $ 1,996,479 $ 1,812,531 $ 1,887,389 $ 1,862,618 $ 1,826,055 Total assets $ 27,560,704 $ 27,375,177 $ 27,403,163 $ 27,112,176 $ 26,931,702 Less: Goodwill and intangible assets (560,687 ) (561,284 ) (561,885 ) (563,502 ) (560,824 ) Total tangible assets (denominator) $ 27,000,017 $ 26,813,893 $ 26,841,278 $ 26,548,674 $ 26,370,878 Tangible common equity to tangible assets 7.39 % 6.76 % 7.03 % 7.02 % 6.92 % Efficiency ratio Non-interest expense $ 180,552 $ 171,020 $ 168,018 $ 159,616 $ 168,462 Less: Amortization of tax credit investments — — — — (696 ) Less: Merger-related expenses — — — — (1,894 ) Less: FDIC special assessment (6,494 ) — — — — Less: FultonFirst initiative (3,197 ) — — — — Less: Intangible amortization (597 ) (601 ) (1,072 ) (674 ) (688 ) Less: Debt extinguishment 720 — — — — Non-interest expense (numerator) $ 170,984 $ 170,419 $ 166,946 $ 158,942 $ 165,184 Net interest income $ 212,006 $ 213,842 $ 212,852 $ 215,587 $ 225,911 Tax equivalent adjustment 4,549 4,442 4,405 4,414 4,310 Plus: Total non-interest income 59,378 55,961 60,585 51,753 54,321 Plus: Interest rate derivative transition valuation(1) (1,102 ) 2,958 — — — Less: Investment securities (gains) losses, net 752 — 4 (23 ) 1 Total revenue (denominator) $ 275,583 $ 277,203 $ 277,846 $ 271,731 $ 284,543 Efficiency ratio 62.0 % 61.5 % 60.1 % 58.5 % 58.1 % (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. Three months ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2023 2023 2023 2023 2022 Operating non-interest expenses to total average assets Non-interest expense $ 180,552 $ 171,020 $ 168,018 $ 159,616 $ 168,462 Less: Amortization of tax credit investments — — — — (696 ) Less: Intangible amortization (597 ) (601 ) (1,072 ) (674 ) (688 ) Less: Merger-related expenses — — — — (1,894 ) Less: FDIC special assessment (6,494 ) — — — — Less: FultonFirst initiatives (3,197 ) — — — — Non-interest expense (numerator) $ 170,264 $ 170,419 $ 166,946 $ 158,942 $ 165,184 Total average assets (denominator) $ 27,397,671 $ 27,377,836 $ 27,235,567 $ 26,900,653 $ 26,386,355 Operating non-interest expenses to total average assets 2.47 % 2.47 % 2.46 % 2.40 % 2.48 % Pre-provision net revenue Net interest income $ 212,006 $ 213,842 $ 212,852 $ 215,587 $ 225,911 Non-interest income 59,378 55,961 60,585 51,753 54,321 Plus: Interest rate derivative transition valuation(1) (1,102 ) 2,958 — — — Less: Investment securities (gains) losses, net 752 — 4 (23 ) 1 Total revenue $ 271,034 $ 272,761 $ 273,441 $ 267,317 $ 280,233 Non-interest expense $ 180,552 $ 171,020 $ 168,018 $ 159,616 $ 168,462 Less: Amortization on tax credit investments — — — — (696 ) Less: Merger-related expenses — — — — (1,894 ) Less: Intangible amortization (597 ) (601 ) (1,072 ) (674 ) (688 ) Less: FDIC special assessment (6,494 ) — — — — Less: FultonFirst initiative (3,197 ) — — — — Less: Debt extinguishment 720 — — — — Total non-interest expense $ 170,984 $ 170,419 $ 166,946 $ 158,942 $ 165,184 Pre-provision net revenue $ 100,050 $ 102,342 $ 106,495 $ 108,375 $ 115,049 Year ended Dec 31 2023 Operating net income available to common shareholders Net income available to common shareholders $ 274,032 Plus: Core deposit intangible amortization 2,308 Plus: Interest rate derivative transition valuation(1) 1,855 Plus: FDIC special assessment 6,494 Plus: FultonFirst initiative 3,197 Less: Tax impact of adjustments (2,909 ) Operating net income available to common shareholders (numerator) $ 284,977 Weighted average shares (diluted) (denominator) 166,769 Operating net income available to common shareholders, per share (diluted) $ 1.71 (1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. Note: numbers in this report may not sum due to rounding. View source version on businesswire.com: https://www.businesswire.com/news/home/20240116531563/en/