Business Wire | Jan 19, 2021 04:35PM EST

Fulton Financial Announces Fourth Quarter and 2020 Results

Jan. 19, 2021

LANCASTER, Pa,--(BUSINESS WIRE)--Jan. 19, 2021--Fulton Financial Corporation (NASDAQ:FULT) ("Fulton" or the "Corporation") reported net income available to common shareholders of $49 million, or $0.30 per diluted share, for the fourth quarter of 2020 and $176 million, or $1.08 per diluted share, for the year ended December 31, 2020.

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"We were pleased with our company's achievements for the 4th quarter and for the year as a whole, given the challenges presented by the lingering presence of COVID-19," said E. Philip Wenger, Chairman and CEO of Fulton Financial Corporation. "The low interest rate environment continued to put pressure on our margin, but even in this challenging environment, we had stable asset quality, were able to provide Paycheck Protection Program and Main Street loans to our customers, helped our mortgage business grow to historic highs, and saw wealth management business performance that was beyond our expectations."

Net Interest Income and Balance Sheet

Net interest income for the fourth quarter of 2020 was $162 million, $7.5 million higher than the third quarter of 2020. Net interest margin for the fourth quarter of 2020 increased 5 basis points, to 2.75%, from 2.70% in the third quarter of 2020. The increases in net interest income and net interest margin were primarily due to the forgiveness of Paycheck Protection Program ("PPP") loans and the acceleration of the recognition of related fee income as well as growth in average loans and investments securities during the quarter. For the year ended December 31, 2020, net interest income was $629 million, a decrease of $19 million in comparison to the year ended December 31, 2019, as the 90 basis point decline in yields on average interest-earning assets outpaced the 42 basis point decline in the cost of funds. The net interest margin in 2020 was 2.86% compared 3.36% in 2019.

Total average assets for the fourth quarter of 2020 were $25.7 billion, an increase of $580 million from the third quarter of 2020. Average loans, net of unearned income, were $19.0 billion, relatively unchanged compared to the third quarter of 2020. Beginning in the second quarter of 2020, average loans included loans originated under PPP. PPP loans had an average balance of $1.8 billion for the fourth quarter of 2020, compared to $2.0 billion for the third quarter of 2020.

Average loans and yields, by type, for the fourth quarter of 2020 in comparison to the third quarter of 2020 are summarized in the following table:

Three months ended

December 31, 2020 September 30, 2020 Growth

Balance Yield Balance Yield $ % ^(1) ^(1)

(dollars in thousands)

AverageLoans, netof unearned income, bytype:

Real estate- commercial $ 7,101,363 3.21 % $ 6,986,528 3.27 % $ 114,835 1.6 %mortgage

Commercialand 5,855,305 2.57 % 5,983,872 2.53 % (128,567) (2.1) %industrial(2)

Real estate- 3,087,529 3.65 % 2,975,516 3.73 % 112,013 3.8 %residentialmortgage

Real estate- home 1,212,113 3.91 % 1,237,602 3.87 % (25,489) (2.1) %equity

Real estate- 1,009,284 3.11 % 981,589 3.84 % 27,695 2.8 %construction

Consumer 468,678 4.07 % 464,851 4.07 % 3,827 0.8 %

Equipmentlease 279,059 3.98 % 279,217 3.96 % (158) (0.1) %financing

Other(3) (18,817) N/A (28,656) N/A 9,839 (34.3) %

TotalAverageLoans, net $ 18,994,514 3.45 % $ 18,880,519 3.38 % $ 113,995 0.6 %of unearnedincome



(1) Presented on a fully-taxable equivalent basis using a 21% Federal tax rateand statutory interest expense disallowances.

(2) Includes average PPP loans of $1.8 billion and $2.0 billion for the threemonths ended December 31, 2020 and September 30, 2020, respectively.

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



Total average assets for the year ended December 31, 2020 were $24.3 billion, an increase of $3.1 billion from 2019. Average loans, net of unearned income, were $18.3 billion, an increase of $1.8 billion from 2019. Included in average loans are loans originated under the PPP, which had an average balance of $1.3 billion for the year ended December 31, 2020. The remaining increase was mainly in residential mortgage loans.

Total average liabilities increased $409 million from the third quarter of 2020 driven by increases in demand and savings deposits. Average deposits and interest rates, by type, for the fourth quarter of 2020 in comparison to the third quarter of 2020 are summarized in the following table:

Three months ended

December 31, 2020 September 30, 2020 Growth

Balance Rate Balance Rate $ %

(dollars in thousands)

Average Deposits, by type:

Noninterest-bearing $ 6,477,228 - $ 6,270,683 - $ 206,545 3.3 %demand

Interest-bearing demand 5,762,150 0.10 % 5,591,548 0.14 % 170,602 3.1 %

Savings 5,905,137 0.13 % 5,716,050 0.16 % 189,087 3.3 %

Total average demand and 18,144,515 0.07 % 17,578,281 0.10 % 566,234 3.2 %savings

Brokered 340,451 0.53 % 314,721 0.56 % 25,730 8.2 %

Time 2,306,556 1.39 % 2,495,445 1.58 % (188,889) (7.6) %

Total Average Deposits $ 20,791,522 0.23 % $ 20,388,447 0.29 % $ 403,075 2.0 %

Total average liabilities for the year ended December 31, 2020 increased $3 billion from 2019 driven by increases in demand and savings deposits.

Asset Quality

The provision for credit losses was $6 million, $7 million and $21 million for the fourth quarter of 2020, third quarter of 2020 and fourth quarter of 2019, respectively. For the year ended December 31, 2020, the provision for credit losses was $77 million compared to $33 million in 2019. Effective January 1, 2020 Fulton adopted ASU 2016-13, referred to as the current expected credit loss model. As such, the provision for credit losses in 2020 reflects current expected credit losses based on forecasted economic and other assumptions, including the estimated impacts of COVID-19, over the remaining expected lives of financial assets and off-balance-sheet credit exposures, whereas the 2019 methodology applied an incurred loss model.

Non-performing assets were $151 million, or 0.58% of total assets, at December 31, 2020, compared to $147 million, or 0.57% of total assets, at September 30, 2020.

Annualized net recoveries for the quarter ended December 31, 2020 were 0.07% of total average loans, compared to annualized net recoveries of 0.05% and annualized net charge-offs of 0.65% for the quarters ended September 30, 2020 and December 31, 2019, respectively. Net charge-offs for 2020 were 0.05% of total average loans compared to 0.22% in 2019.

Non-interest Income

Non-interest income in the fourth quarter of 2020, excluding investment securities gains, was $56 million, a decrease of $8 million, or 12%, from the third quarter of 2020, primarily driven by decreases $7 million in mortgage banking income and $1 million in capital markets revenue. The decrease in mortgage banking income was mainly due to seasonal decreases in the volume of loans sold.

Compared to the fourth quarter of 2019, non-interest income, excluding investment securities gains, in the fourth quarter of 2020 was relatively unchanged as increases in mortgage banking and wealth management income offset decreases in a number of other categories.

For the year ended December 31, 2020, non-interest income, excluding investment securities gains, was $226 million, an increase of $15 million, or 7%, from 2019. The increase was driven by a $19 million increase in mortgage banking income, with mortgage sale gains increasing $36 million due to higher volumes and spreads, partially offset by a $10.5 million of mortgage servicing rights asset impairment charges for the year and higher mortgage servicing rights asset amortization, due to higher refinance activity. In addition, wealth management and capital markets revenue each increased by $3 million. Partially offsetting these increases were decreases of $5 million in overdraft fees in consumer banking and $4 million in other service charges on deposits in other commercial banking.

During both 2020 and 2019, Fulton completed balance sheet restructurings involving sales of investment securities and corresponding prepayments of FHLB advances. As a result of these transactions, $3 million and $5 million of investment securities gains were realized during 2020 and 2019, respectively, and prepayment penalties of $3 million and $4 million were incurred during 2020 and 2019, respectively.

Non-interest Expense

Non-interest expense was $155 million in the fourth quarter of 2020, an increase of $16 million, or 11%, compared to the third quarter of 2020, with $15 million and $1 million attributable to charges related to cost savings initiatives recognized in the fourth quarter of 2020 and the third quarter of 2020, respectively. Those charges in the fourth quarter of 2020 included $4.6 million of employee severance for impacted employees (salaries and benefits) and $4.8 million of write-offs of fixed assets and $5.8 million of lease termination charges (other expense) resulting from 21 financial center closures.

Compared to the fourth quarter of 2019, non-interest expense increased $16 million, or 11%, due primarily to the previously discussed charges associated with the cost savings initiatives.

The cost savings anticipated from the implementation of the cost savings initiatives are not expected to be fully realized until mid-2021. Of the anticipated $25 million in annual expense savings, the Corporation expects to reinvest a portion of the savings to accelerate digital transformation initiatives.

For the year end December 31, 2020, non-interest expense was $579 million, an increase of $12 million, or 2%, from 2019. This increase was primarily due to expenses related to the cost savings initiatives, which totaled $16 million for the year, as well as increases of $3 million in data processing and software and $1 million in FDIC insurance. These increases were partially offset by decreases of $9 million in other outside services and $5 million in marketing.

Income Tax Expense

The effective income tax rate (ETR) for the fourth quarter of 2020 was 10%, as compared to 13% for both the third quarter of 2020 and fourth quarter of 2019. For the year ended December 31, 2020, the ETR was 12% compared 14% in 2019. The decreases resulted from lower income before income taxes.

Shareholders' Equity

In the fourth quarter of 2020, the Corporation issued $200 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock ("Preferred Stock") at a rate of 5.125%. The Corporation received net proceeds from the offering of $192.9 million after issuance costs. Dividends on the Preferred Stock were $2.1 million in the fourth quarter, or approximately $0.01 per diluted share.

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

Safe Harbor Statement

This news release may contain forward-looking statements with respect to the Corporation's financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," "projects," the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation's future financial performance, expected levels of future expenses, 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, they are based on current beliefs, expectations and assumptions regarding the future of the Corporation's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation's control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2019, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020 and other current and periodic reports, which have been or will be filed with the Securities and Exchange Commission and are or will be available in the Investor Relations section of the Corporation's website (www.fult.com) and on the Securities and Exchange Commission's website (www.sec.gov).

Non-GAAP Financial Measures

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

FULTON FINANCIAL CORPORATION

SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)

in thousands, except per-share data and percentages

Three months ended

Dec 31 Sep 30 Jun 30 Mar 31 Dec 31

2020 2020 2020 2020 2019

Ending Balances

Investments $ 3,340,424 $ 3,097,721 $ 2,974,813 $ 3,141,440 $ 2,867,378

Loans, net ofunearned 18,900,820 19,028,621 18,704,722 17,077,403 16,837,526 income

Total assets 25,906,733 25,543,281 24,617,863 22,929,859 21,886,040

Deposits 20,839,207 20,730,051 19,884,208 17,365,026 17,393,913

Shareholders' 2,616,828 2,390,261 2,340,501 2,285,748 2,342,176 equity



Average Balances

Investments $ 3,221,289 $ 2,977,672 $ 3,096,632 $ 3,071,828 $ 2,830,999

Loans, net ofunearned 18,994,514 18,880,519 18,331,797 16,860,067 16,768,057 income

Total assets 25,749,405 25,169,508 24,139,116 22,252,099 21,812,438

Deposits 20,791,522 20,388,447 19,276,658 17,121,428 17,449,565

Shareholders' 2,544,866 2,374,091 2,309,133 2,337,016 2,341,397 equity



Income Statement

Net interest $ 161,591 $ 154,116 $ 152,754 $ 160,746 $ 159,270 income

Provision for 6,240 7,080 19,570 44,030 20,530 credit losses

Non-interest 55,574 63,248 55,922 54,644 55,281 income

Non-interest 154,737 139,147 143,006 142,552 138,974 expense

Income before 56,187 71,137 46,101 28,808 55,047 taxes

Net incomeavailable to 48,690 61,607 39,559 26,047 47,789 commonshareholders



Per Share

Net incomeavailable tocommon $ 0.30 $ 0.38 $ 0.24 $ 0.16 $ 0.29 shareholders(basic)

Net incomeavailable tocommon $ 0.30 $ 0.38 $ 0.24 $ 0.16 $ 0.29 shareholders(diluted)

Cash dividends $ 0.17 $ 0.13 $ 0.13 $ 0.13 $ 0.17

Commonshareholders' $ 14.93 $ 14.74 $ 14.45 $ 14.16 $ 14.26 equity

Commonshareholders' $ 11.62 $ 11.44 $ 11.15 $ 10.84 $ 11.00 equity(tangible)(1)

Weightedaverage shares 162,242 162,061 161,715 163,475 164,135 (basic)

Weightedaverage shares 163,071 162,579 162,267 164,417 165,039 (diluted)



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



Three months ended

Dec 31 Sep 30 Jun 30 Mar 31 Dec 31

2020 2020 2020 2020 2019

Asset Quality (2)

Net(recoveries)charge-offs to (0.07) % (0.05) % 0.09 % 0.26 % 0.65 % average loans(annualized)

Non-performingloans to total 0.78 % 0.75 % 0.75 % 0.82 % 0.84 % loans

Non-performingassets to 0.58 % 0.57 % 0.59 % 0.64 % 0.68 % total assets

ACL - loans(3) 1.47 % 1.40 % 1.37 % 1.40 % 0.97 % to total loans

ACL - loans(3)to 189 % 188 % 183 % 170 % 116 % non-performingloans

Non-performingassets tocommonshareholders' 6.42 % 6.91 % 7.04 % 7.37 % 7.51 % equity(tangible) andACL - loans(1)(3)



Asset Quality,excluding PPP (1)(4)

Net(recoveries)charge-offs to (0.08) % (0.06) % 0.10 % - % - % averageadjusted loans(annualized)

Non-performingloans to total 0.85 % 0.83 % 0.83 % - % - % adjusted loans

ACL - loans(3)to total 1.60 % 1.56 % 1.53 % - % - % adjusted loans



Profitability

Return on 0.79 % 0.97 % 0.66 % 0.47 % 0.87 % average assets

Return onaverage 7.95 % 10.32 % 6.89 % 4.48 % 8.10 % shareholders'equity

Return onaverage commonshareholders' 10.32 % 13.50 % 8.99 % 5.84 % 10.52 % equity(tangible)(1)

Net interest 2.75 % 2.70 % 2.81 % 3.21 % 3.22 % margin

Efficiency 69.5 % 62.3 % 66.4 % 64.5 % 63.1 % ratio(1)

Efficiencyratio, net2020 cost 62.5 % 62.0 % 66.4 % 64.5 % 63.1 % savingsinitiatives(1)



Capital Ratios

Tangiblecommon equity 7.4 % 7.4 % 7.5 % 7.8 % 8.5 % ratio(1)

Tier 1leverage ratio 8.1 % 7.4 % 7.6 % 7.9 % 8.4 % (5)

Common equityTier 1 capital 9.4 % 9.5 % 9.5 % 9.4 % 9.7 % ratio(5)

Tier 1 capital 10.3 % 9.5 % 9.5 % 9.4 % 9.7 % ratio(5)

Totalrisk-based 14.5 % 13.9 % 13.8 % 13.8 % 11.8 % capital ratio(5)

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

(2) Effective January 1, 2020, Fulton adopted Accounting Standards Update 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," referred to as the current expected credit loss model ("CECL"). This accounting standard requires that credit losses for financial assets and off-balance-sheet ("OBS") credit exposures be measured based on expected credit losses, rather than on incurred credit losses as in prior periods.

(3) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.

(4) Asset quality information excluding Paycheck Protection Program ("PPP") loans. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this document.

(5) Regulatory capital ratios as of December 31, 2020 are preliminary and prior periods are actual.

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

(2) Effective January 1, 2020, Fulton adopted Accounting Standards Update2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement ofCredit Losses on Financial Instruments," referred to as the current expectedcredit loss model ("CECL"). This accounting standard requires that creditlosses for financial assets and off-balance-sheet ("OBS") credit exposures bemeasured based on expected credit losses, rather than on incurred credit lossesas in prior periods.

(3) "ACL - loans" relates to the allowance for credit losses ("ACL")specifically on "Loans, net of unearned income" and does not include the ACLrelated to OBS credit exposures.

(4) Asset quality information excluding Paycheck Protection Program ("PPP")loans. Refer to the calculation on the page titled "Reconciliation of Non-GAAPMeasures" at the end of this document.

(5) Regulatory capital ratios as of December 31, 2020 are preliminary and priorperiods are actual.

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

dollars in thousands

% Change from

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

Dec 31

2020

2020

2020

2020

2019

2020

2019

ASSETS

Cash and due from banks

$

120,462

$

139,304

$

141,702

$

181,777

$

132,283

(13.5)

%

(8.9)

%

Other interest-earning assets

1,819,499

1,489,550

1,007,939

793,572

482,930

22.2

%

N/M

Loans held for sale

83,886

93,621

77,415

40,645

37,828

(10.4)

%

N/M

Investment securities

3,340,424

3,097,721

2,974,813

3,141,440

2,867,378

7.8

%

16.5

%

Loans, net of unearned income

18,900,820

19,028,621

18,704,722

17,077,403

16,837,526

(0.7)

%

12.3

%

Less: ACL - loans(1)

(277,567)

(266,825)

(256,537)

(238,508)

(163,622)

4.0

%

69.6

%

Net loans

18,623,253

18,761,796

18,448,185

16,838,895

16,673,904

(0.7)

%

11.7

%

Premises and equipment

231,480

236,943

239,596

236,908

240,046

(2.3)

%

(3.6)

%

Accrued interest receivable

72,942

70,766

73,720

59,365

60,898

3.1

%

19.8

%

Goodwill and intangible assets

536,659

534,907

535,039

535,171

535,303

0.3

%

0.3

%

Other assets

1,078,128

1,118,673

1,119,454

1,102,086

855,470

(3.6)

%

26.0

%

Total Assets

$

25,906,733

$

25,543,281

$

24,617,863

$

22,929,859

$

21,886,040

1.4

%

18.4

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

$

20,839,207

$

20,730,051

$

19,884,208

$

17,365,026

$

17,393,913

0.5

%

19.8

%

Short-term borrowings

630,066

611,727

572,551

1,386,808

883,241

3.0

%

(28.7)

%

Other liabilities

524,369

515,230

525,407

513,811

384,941

1.8

%

36.2

%

FHLB advances and long-term debt

1,296,263

1,296,012

1,295,196

1,378,466

881,769

-

%

47.0

%

Total Liabilities

23,289,905

23,153,020

22,277,362

20,644,111

19,543,864

0.6

%

19.2

%

Shareholders' equity

2,616,828

2,390,261

2,340,501

2,285,748

2,342,176

9.5

%

11.7

%

Total Liabilities and Shareholders' Equity

$

25,906,733

$

25,543,281

$

24,617,863

$

22,929,859

$

21,886,040

1.4

%

18.4

%

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

Loans, by type:

Real estate - commercial mortgage

$

7,105,092

$

7,046,330

$

6,934,936

$

6,895,069

$

6,700,776

0.8

%

6.0

%

Commercial and industrial

4,088,561

4,007,278

4,033,439

4,450,557

4,445,634

2.0

%

(8.0)

%

Real estate - residential mortgage

3,141,915

3,061,835

2,862,226

2,718,290

2,641,465

2.6

%

18.9

%

Real estate - home equity

1,202,913

1,222,709

1,251,455

1,292,677

1,314,944

(1.6)

%

(8.5)

%

Real estate - construction

1,047,218

1,007,534

972,909

947,768

971,079

3.9

%

7.8

%

Consumer

466,772

469,551

465,610

468,172

463,164

(0.6)

%

0.8

%

Equipment lease financing

279,118

280,286

281,897

289,726

284,537

(0.4)

%

(1.9)

%

Other(2)

(12,481)

(27,067)

(34,784)

15,144

15,927

(53.9)

%

N/M

Loans, net of unearned income before PPP

17,319,108

17,068,456

16,767,688

17,077,403

16,837,526

1.5

%

2.9

%

PPP

1,581,712

1,960,165

1,937,034

-

-

(19.3)

%

N/M

Total Loans, net of unearned income

$

18,900,820

$

19,028,621

$

18,704,722

$

17,077,403

$

16,837,526

(0.7)

%

12.3

%

Deposits, by type:

Noninterest-bearing demand

$

6,531,002

$

6,378,077

$

6,239,055

$

4,531,872

$

4,453,324

2.4

%

46.7

%

Interest-bearing demand

5,818,564

5,813,935

5,099,405

4,724,520

4,720,188

0.1

%

23.3

%

Savings

5,929,792

5,805,431

5,667,893

5,092,865

5,153,941

2.1

%

15.1

%

Total demand and savings

18,279,358

17,997,443

17,006,353

14,349,257

14,327,453

1.6

%

27.6

%

Brokered

335,185

317,588

310,689

313,337

264,531

5.5

%

26.7

%

Time

2,224,664

2,415,020

2,567,166

2,702,432

2,801,929

(7.9)

%

(20.6)

%

Total Deposits

$

20,839,207

$

20,730,051

$

19,884,208

$

17,365,026

$

17,393,913

0.5

%

19.8

%

Short-term borrowings, by type:

Customer funding

$

630,066

$

611,727

$

572,551

$

461,808

$

383,241

3.0

%

64.4

%

Federal funds purchased

-

-

-

200,000

-

N/M

N/M

Short-term FHLB advances

-

-

-

725,000

500,000

N/M

(100.0)

%

Total Short-term Borrowings

$

630,066

$

611,727

$

572,551

$

1,386,808

$

883,241

3.0

%

(28.7)

%

N/M - Not meaningful

(1) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.

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

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

dollars in thousands

% Change from

Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Dec 31

2020 2020 2020 2020 2019 2020 2019

ASSETS

Cash and due from $ 120,462 $ 139,304 $ 141,702 $ 181,777 $ 132,283 (13.5) % (8.9) % banks

Other interest-earning 1,819,499 1,489,550 1,007,939 793,572 482,930 22.2 % N/M assets

Loans held for sale 83,886 93,621 77,415 40,645 37,828 (10.4) % N/M

Investment 3,340,424 3,097,721 2,974,813 3,141,440 2,867,378 7.8 % 16.5 % securities

Loans, net of 18,900,820 19,028,621 18,704,722 17,077,403 16,837,526 (0.7) % 12.3 % unearned income

Less: ACL - loans (277,567) (266,825) (256,537) (238,508) (163,622) 4.0 % 69.6 % (1)

Net loans 18,623,253 18,761,796 18,448,185 16,838,895 16,673,904 (0.7) % 11.7 %

Premises and 231,480 236,943 239,596 236,908 240,046 (2.3) % (3.6) % equipment

Accrued interest 72,942 70,766 73,720 59,365 60,898 3.1 % 19.8 % receivable

Goodwill and 536,659 534,907 535,039 535,171 535,303 0.3 % 0.3 % intangible assets

Other assets 1,078,128 1,118,673 1,119,454 1,102,086 855,470 (3.6) % 26.0 %

Total Assets $ 25,906,733 $ 25,543,281 $ 24,617,863 $ 22,929,859 $ 21,886,040 1.4 % 18.4 %

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits $ 20,839,207 $ 20,730,051 $ 19,884,208 $ 17,365,026 $ 17,393,913 0.5 % 19.8 %

Short-term 630,066 611,727 572,551 1,386,808 883,241 3.0 % (28.7) % borrowings

Other liabilities 524,369 515,230 525,407 513,811 384,941 1.8 % 36.2 %

FHLB advances and 1,296,263 1,296,012 1,295,196 1,378,466 881,769 - % 47.0 % long-term debt

Total Liabilities 23,289,905 23,153,020 22,277,362 20,644,111 19,543,864 0.6 % 19.2 %

Shareholders' 2,616,828 2,390,261 2,340,501 2,285,748 2,342,176 9.5 % 11.7 % equity

Total Liabilities and Shareholders' $ 25,906,733 $ 25,543,281 $ 24,617,863 $ 22,929,859 $ 21,886,040 1.4 % 18.4 % Equity



LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

Loans, by type:

Real estate - $ 7,105,092 $ 7,046,330 $ 6,934,936 $ 6,895,069 $ 6,700,776 0.8 % 6.0 % commercial mortgage

Commercial and 4,088,561 4,007,278 4,033,439 4,450,557 4,445,634 2.0 % (8.0) % industrial

Real estate - residential 3,141,915 3,061,835 2,862,226 2,718,290 2,641,465 2.6 % 18.9 % mortgage

Real estate - home 1,202,913 1,222,709 1,251,455 1,292,677 1,314,944 (1.6) % (8.5) % equity

Real estate - 1,047,218 1,007,534 972,909 947,768 971,079 3.9 % 7.8 % construction

Consumer 466,772 469,551 465,610 468,172 463,164 (0.6) % 0.8 %

Equipment lease 279,118 280,286 281,897 289,726 284,537 (0.4) % (1.9) % financing

Other(2) (12,481) (27,067) (34,784) 15,144 15,927 (53.9) % N/M

Loans, net of unearned income 17,319,108 17,068,456 16,767,688 17,077,403 16,837,526 1.5 % 2.9 % before PPP

PPP 1,581,712 1,960,165 1,937,034 - - (19.3) % N/M

Total Loans, net of $ 18,900,820 $ 19,028,621 $ 18,704,722 $ 17,077,403 $ 16,837,526 (0.7) % 12.3 % unearned income

Deposits, by type:

Noninterest-bearing $ 6,531,002 $ 6,378,077 $ 6,239,055 $ 4,531,872 $ 4,453,324 2.4 % 46.7 % demand

Interest-bearing 5,818,564 5,813,935 5,099,405 4,724,520 4,720,188 0.1 % 23.3 % demand

Savings 5,929,792 5,805,431 5,667,893 5,092,865 5,153,941 2.1 % 15.1 %

Total demand and 18,279,358 17,997,443 17,006,353 14,349,257 14,327,453 1.6 % 27.6 % savings

Brokered 335,185 317,588 310,689 313,337 264,531 5.5 % 26.7 %

Time 2,224,664 2,415,020 2,567,166 2,702,432 2,801,929 (7.9) % (20.6) %

Total Deposits $ 20,839,207 $ 20,730,051 $ 19,884,208 $ 17,365,026 $ 17,393,913 0.5 % 19.8 %

Short-term borrowings, by type:

Customer funding $ 630,066 $ 611,727 $ 572,551 $ 461,808 $ 383,241 3.0 % 64.4 %

Federal funds - - - 200,000 - N/M N/M purchased

Short-term FHLB - - - 725,000 500,000 N/M (100.0) % advances

Total Short-term $ 630,066 $ 611,727 $ 572,551 $ 1,386,808 $ 883,241 3.0 % (28.7) % Borrowings





N/M - Not meaningful

(1) "ACL - loans" relates to the ACL specifically on "Loans, net of unearnedincome" and does not include the ACL related to OBS credit exposures.

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

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

dollars in thousands

Three Months Ended

% Change from

Years ended

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

Dec 31

Dec 31

2020

2020

2020

2020

2019

2020

2019

2020

2019

% Change

Interest Income:

Interest income

$

183,645

$

179,159

$

180,696

$

199,378

$

202,159

2.5

%

(9.2)

%

$

742,878

$

825,306

(10.0)

%

Interest expense

22,054

25,043

27,942

38,632

42,889

(11.9)

%

(48.6)

%

113,671

176,917

(35.7)

%

Net Interest Income

161,591

154,116

152,754

160,746

159,270

4.9

%

1.5

%

629,207

648,389

(3.0)

%

Provision for credit losses

6,240

7,080

19,570

44,030

20,530

(11.9)

%

(69.6)

%

76,920

32,825

N/M

Net Interest Income after Provision

155,351

147,036

133,184

116,716

138,740

5.7

%

12.0

%

552,287

615,564

(10.3)

%

Non-Interest Income:

Wealth management

15,653

14,943

13,407

15,055

14,419

4.7

%

8.6

%

59,058

55,678

6.1

%

Mortgage banking

9,311

16,801

9,964

6,234

5,076

(44.6)

%

83.4

%

42,309

23,099

83.2

%

Consumer banking:

Card

5,123

5,002

4,966

4,685

4,991

2.4

%

2.7

%

19,777

20,515

(3.6)

%

Overdraft

3,376

3,015

2,107

4,058

4,750

12.0

%

(28.9)

%

12,556

17,949

(30.0)

%

Other consumer banking

2,298

2,406

2,065

2,496

2,688

(4.5)

%

(14.5)

%

9,266

11,039

(16.1)

%

Total consumer banking

10,798

10,423

9,138

11,239

12,429

3.6

%

(13.1)

%

41,598

49,503

(16.0)

%

Commercial banking:

Merchant and card

5,953

6,237

5,326

5,624

5,841

(4.6)

%

1.9

%

23,139

24,077

(3.9)

%

Cash management

4,737

4,742

4,503

4,742

4,697

(0.1)

%

0.9

%

18,725

18,392

1.8

%

Capital markets

3,513

4,696

5,004

5,075

5,939

(25.2)

%

(40.8)

%

18,288

14,875

22.9

%

Other commercial banking

2,606

2,636

1,914

2,978

3,664

(1.2)

%

(28.9)

%

10,134

13,773

(26.4)

%

Total commercial banking

16,809

18,311

16,748

18,419

20,141

(8.2)

%

(16.5)

%

70,286

71,117

(1.2)

%

Other

3,004

2,769

3,660

3,651

3,216

8.5

%

(6.6)

%

13,084

12,030

8.8

%

Non-interest income before investment securities gains

55,574

63,246

52,917

54,598

55,281

(12.1)

%

0.5

%

226,335

211,427

7.1

%

Investment securities gains, net

-

2

3,005

46

-

(100.0)

%

N/M

3,053

4,733

(35.5)

%

Total Non-Interest Income

55,574

63,248

55,922

54,644

55,281

(12.1)

%

0.5

%

229,388

216,160

6.1

%

Non-Interest Expense:

Salaries and employee benefits

83,929

79,227

81,012

80,228

76,975

5.9

%

9.0

%

324,395

311,934

4.0

%

Net occupancy

13,161

13,221

13,144

13,486

13,080

(0.5)

%

0.6

%

53,013

52,826

0.4

%

Data processing and software

11,951

12,285

12,193

11,645

11,468

(2.7)

%

4.2

%

48,073

44,679

7.6

%

Other outside services

8,334

7,617

7,600

7,881

8,215

9.4

%

1.4

%

31,432

39,989

(21.4)

%

Equipment

3,563

3,711

3,193

3,418

3,475

(4.0)

%

2.5

%

13,885

13,575

2.3

%

Professional fees

2,424

2,879

3,331

4,202

2,873

(15.8)

%

(15.6)

%

12,835

13,134

(2.3)

%

Marketing

1,098

1,147

1,303

1,579

1,503

(4.3)

%

(27.0)

%

5,127

9,848

(47.9)

%

Amortization of tax credit investments

1,532

1,694

1,450

1,450

1,505

(9.6)

%

1.8

%

6,126

6,021

1.7

%

FDIC insurance

2,346

1,578

2,133

2,808

2,177

48.7

%

7.8

%

8,865

7,780

13.9

%

Intangible amortization

132

132

132

132

142

0.2

%

(6.8)

%

529

1,427

(63.0)

%

Prepayment penalty on FHLB advances

-

-

2,878

-

-

N/M

N/M

2,878

4,326

(33.5)

%

Other

26,268

15,654

14,637

15,723

17,561

67.8

%

49.6

%

72,282

62,197

16.2

%

Total Non-Interest Expense

154,737

139,145

143,006

142,552

138,974

11.2

%

11.3

%

579,440

567,736

2.1

%

Income Before Income Taxes

56,187

71,139

46,100

28,808

55,047

(21.0)

%

2.1

%

202,235

263,988

(23.4)

%

Income tax expense

5,362

9,529

6,542

2,761

7,258

(43.7)

%

(26.1)

%

24,194

37,649

(35.7)

%

Net Income

50,825

61,610

39,558

26,047

47,789

(17.5)

%

6.4

%

178,040

226,339

(21.3)

%

Preferred stock dividends

(2,135)

-

-

-

-

N/M

N/M

(2,135)

-

N/M

Net Income Available to Common Shareholders

$

48,690

$

61,610

$

39,558

$

26,047

$

47,789

(21.0)

%

1.9

%

$

175,905

$

226,339

(22.3)

%

PER SHARE:

Net income:

Basic

$

0.30

$

0.38

$

0.24

$

0.16

$

0.29

(21.1)

%

3.4

%

$

1.08

$

1.36

(20.6)

%

Diluted

0.30

0.38

0.24

0.16

0.29

(21.1)

%

3.4

%

1.08

1.35

(20.0)

%

Cash dividends

0.17

0.13

0.13

0.13

0.17

30.8

%

-

%

$

0.56

$

0.56

-

%

Weighted average shares (basic)

162,242

162,061

161,715

163,475

164,135

0.1

%

(1.2)

%

162,372

166,902

(2.7)

%

Weighted average shares (diluted)

163,071

162,579

162,267

164,417

165,039

0.3

%

(1.2)

%

163,090

167,792

(2.8)

%

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

dollars in thousands

Three Months Ended % Change from Years ended

Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Dec 31 Dec 31

2020 2020 2020 2020 2019 2020 2019 2020 2019 % Change

Interest Income:

Interest income $ 183,645 $ 179,159 $ 180,696 $ 199,378 $ 202,159 2.5 % (9.2) % $ 742,878 $ 825,306 (10.0) %

Interest expense 22,054 25,043 27,942 38,632 42,889 (11.9) % (48.6) % 113,671 176,917 (35.7) %

Net Interest Income 161,591 154,116 152,754 160,746 159,270 4.9 % 1.5 % 629,207 648,389 (3.0) %

Provision for credit 6,240 7,080 19,570 44,030 20,530 (11.9) % (69.6) % 76,920 32,825 N/M losses

Net Interest Income 155,351 147,036 133,184 116,716 138,740 5.7 % 12.0 % 552,287 615,564 (10.3) % after Provision

Non-Interest Income:

Wealth management 15,653 14,943 13,407 15,055 14,419 4.7 % 8.6 % 59,058 55,678 6.1 %

Mortgage banking 9,311 16,801 9,964 6,234 5,076 (44.6) % 83.4 % 42,309 23,099 83.2 %

Consumer banking:

Card 5,123 5,002 4,966 4,685 4,991 2.4 % 2.7 % 19,777 20,515 (3.6) %

Overdraft 3,376 3,015 2,107 4,058 4,750 12.0 % (28.9) % 12,556 17,949 (30.0) %

Other consumer 2,298 2,406 2,065 2,496 2,688 (4.5) % (14.5) % 9,266 11,039 (16.1) % banking

Total consumer 10,798 10,423 9,138 11,239 12,429 3.6 % (13.1) % 41,598 49,503 (16.0) % banking

Commercial banking:

Merchant and card 5,953 6,237 5,326 5,624 5,841 (4.6) % 1.9 % 23,139 24,077 (3.9) %

Cash management 4,737 4,742 4,503 4,742 4,697 (0.1) % 0.9 % 18,725 18,392 1.8 %

Capital markets 3,513 4,696 5,004 5,075 5,939 (25.2) % (40.8) % 18,288 14,875 22.9 %

Other commercial 2,606 2,636 1,914 2,978 3,664 (1.2) % (28.9) % 10,134 13,773 (26.4) % banking

Total commercial 16,809 18,311 16,748 18,419 20,141 (8.2) % (16.5) % 70,286 71,117 (1.2) % banking

Other 3,004 2,769 3,660 3,651 3,216 8.5 % (6.6) % 13,084 12,030 8.8 %

Non-interest income before investment 55,574 63,246 52,917 54,598 55,281 (12.1) % 0.5 % 226,335 211,427 7.1 % securities gains

Investment securities - 2 3,005 46 - (100.0) % N/M 3,053 4,733 (35.5) % gains, net

Total Non-Interest 55,574 63,248 55,922 54,644 55,281 (12.1) % 0.5 % 229,388 216,160 6.1 % Income

Non-Interest Expense:

Salaries and employee 83,929 79,227 81,012 80,228 76,975 5.9 % 9.0 % 324,395 311,934 4.0 % benefits

Net occupancy 13,161 13,221 13,144 13,486 13,080 (0.5) % 0.6 % 53,013 52,826 0.4 %

Data processing and 11,951 12,285 12,193 11,645 11,468 (2.7) % 4.2 % 48,073 44,679 7.6 % software

Other outside 8,334 7,617 7,600 7,881 8,215 9.4 % 1.4 % 31,432 39,989 (21.4) % services

Equipment 3,563 3,711 3,193 3,418 3,475 (4.0) % 2.5 % 13,885 13,575 2.3 %

Professional fees 2,424 2,879 3,331 4,202 2,873 (15.8) % (15.6) % 12,835 13,134 (2.3) %

Marketing 1,098 1,147 1,303 1,579 1,503 (4.3) % (27.0) % 5,127 9,848 (47.9) %

Amortization of tax 1,532 1,694 1,450 1,450 1,505 (9.6) % 1.8 % 6,126 6,021 1.7 % credit investments

FDIC insurance 2,346 1,578 2,133 2,808 2,177 48.7 % 7.8 % 8,865 7,780 13.9 %

Intangible 132 132 132 132 142 0.2 % (6.8) % 529 1,427 (63.0) % amortization

Prepayment penalty on - - 2,878 - - N/M N/M 2,878 4,326 (33.5) % FHLB advances

Other 26,268 15,654 14,637 15,723 17,561 67.8 % 49.6 % 72,282 62,197 16.2 %

Total Non-Interest 154,737 139,145 143,006 142,552 138,974 11.2 % 11.3 % 579,440 567,736 2.1 % Expense

Income Before Income 56,187 71,139 46,100 28,808 55,047 (21.0) % 2.1 % 202,235 263,988 (23.4) % Taxes

Income tax expense 5,362 9,529 6,542 2,761 7,258 (43.7) % (26.1) % 24,194 37,649 (35.7) %

Net Income 50,825 61,610 39,558 26,047 47,789 (17.5) % 6.4 % 178,040 226,339 (21.3) %

Preferred stock (2,135) - - - - N/M N/M (2,135) - N/M dividends

Net Income Available to Common $ 48,690 $ 61,610 $ 39,558 $ 26,047 $ 47,789 (21.0) % 1.9 % $ 175,905 $ 226,339 (22.3) % Shareholders



PER SHARE:

Net income:

Basic $ 0.30 $ 0.38 $ 0.24 $ 0.16 $ 0.29 (21.1) % 3.4 % $ 1.08 $ 1.36 (20.6) %

Diluted 0.30 0.38 0.24 0.16 0.29 (21.1) % 3.4 % 1.08 1.35 (20.0) %

Cash dividends 0.17 0.13 0.13 0.13 0.17 30.8 % - % $ 0.56 $ 0.56 - %



Weighted average 162,242 162,061 161,715 163,475 164,135 0.1 % (1.2) % 162,372 166,902 (2.7) % shares (basic)

Weighted average 163,071 162,579 162,267 164,417 165,039 0.3 % (1.2) % 163,090 167,792 (2.8) % shares (diluted)





FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands

Three months ended

December 31, 2020

September 30, 2020

December 31, 2019

Average

Interest

Yield/

Average

Interest

Yield/

Average

Interest

Yield/

Balance

(1)

Rate

Balance

(1)

Rate

Balance

(1)

Rate

ASSETS

Interest-earning assets:

Loans, net of unearned income

$

18,994,514

$

164,329

3.45

%

$

18,880,519

$

160,344

3.38

%

$

16,768,057

$

182,024

4.31

%

Taxable investment securities

2,233,730

13,559

2.43

%

2,011,893

13,150

2.61

%

2,198,252

15,621

2.84

%

Tax-exempt investment securities

886,329

7,044

3.17

%

861,764

6,899

3.19

%

594,487

5,058

3.38

%

Total Investment Securities

3,120,059

20,603

2.64

%

2,873,657

20,048

2.79

%

2,792,739

20,679

2.96

%

Loans held for sale

76,871

521

2.71

%

79,999

728

3.64

%

30,062

295

3.93

%

Other interest-earning assets

1,668,454

1,179

0.28

%

1,387,327

1,028

0.30

%

492,560

2,370

1.92

%

Total Interest-earning Assets

23,859,898

186,632

3.12

%

23,221,502

182,149

3.13

%

20,083,418

205,368

4.07

%

Noninterest-earning assets:

Cash and due from banks

126,190

138,567

128,417

Premises and equipment

236,265

239,183

239,294

Other assets

1,799,381

1,835,190

1,528,758

Less: ACL - loans(2)

(272,329)

(264,934)

(167,449)

Total Assets

$

25,749,405

$

25,169,508

$

21,812,438

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:

Demand deposits

$

5,762,150

$

1,457

0.10

%

$

5,591,548

$

1,913

0.14

%

$

4,699,040

$

8,494

0.72

%

Savings deposits

5,905,137

1,866

0.13

%

5,716,050

2,347

0.16

%

5,205,260

10,253

0.78

%

Brokered deposits

340,451

451

0.53

%

314,721

440

0.56

%

261,689

1,279

1.94

%

Time deposits

2,306,556

8,082

1.39

%

2,495,445

9,931

1.58

%

2,959,008

13,775

1.86

%

Total Interest-bearing Deposits

14,314,294

11,856

0.33

%

14,117,764

14,631

0.41

%

13,124,997

33,801

1.02

%

Short-term borrowings

622,623

268

0.17

%

613,127

370

0.24

%

717,811

2,343

1.29

%

FHLB advances and long-term debt

1,296,139

9,930

3.06

%

1,295,515

10,042

3.10

%

875,802

6,745

3.07

%

Total Interest-bearing Liabilities

16,233,056

22,054

0.54

%

16,026,406

25,043

0.62

%

14,718,610

42,889

1.16

%

Noninterest-bearing liabilities:

Demand deposits

6,477,228

6,270,683

4,324,568

Total Deposits/Cost of Deposits

20,791,522

0.23

%

20,388,447

0.29

%

17,449,565

0.77

%

Other

494,255

498,328

427,863

Total Liabilities

23,204,539

$

22,795,417

19,471,041

Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")

22,710,284

0.39

%

22,297,089

0.45

%

19,043,178

0.89

%

Shareholders' equity

2,544,866

2,374,091

2,341,397

Total Liabilities and Shareholders' Equity

$

25,749,405

$

25,169,508

$

21,812,438

Net interest income/net interest margin (fully taxable equivalent)

164,578

2.75

%

157,106

2.70

%

162,479

3.22

%

Tax equivalent adjustment

(2,987)

(2,990)

(3,209)

Net interest income

$

161,591

$

154,116

$

159,270

(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.

(2) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands

Three months ended

December 31, 2020 September 30, 2020 December 31, 2019

Average Interest Yield/ Average Interest Yield/ Average Interest Yield/

Balance (1) Rate Balance (1) Rate Balance (1) Rate

ASSETS



Interest-earning assets:

Loans, net of unearned $ 18,994,514 $ 164,329 3.45 % $ 18,880,519 $ 160,344 3.38 % $ 16,768,057 $ 182,024 4.31 % income

Taxable investment 2,233,730 13,559 2.43 % 2,011,893 13,150 2.61 % 2,198,252 15,621 2.84 % securities

Tax-exempt investment 886,329 7,044 3.17 % 861,764 6,899 3.19 % 594,487 5,058 3.38 % securities

Total Investment 3,120,059 20,603 2.64 % 2,873,657 20,048 2.79 % 2,792,739 20,679 2.96 % Securities

Loans held for sale 76,871 521 2.71 % 79,999 728 3.64 % 30,062 295 3.93 %

Other interest-earning 1,668,454 1,179 0.28 % 1,387,327 1,028 0.30 % 492,560 2,370 1.92 % assets

Total Interest-earning 23,859,898 186,632 3.12 % 23,221,502 182,149 3.13 % 20,083,418 205,368 4.07 % Assets



Noninterest-earning assets:

Cash and due from banks 126,190 138,567 128,417

Premises and equipment 236,265 239,183 239,294

Other assets 1,799,381 1,835,190 1,528,758

Less: ACL - loans(2) (272,329) (264,934) (167,449)

Total Assets $ 25,749,405 $ 25,169,508 $ 21,812,438



LIABILITIES AND SHAREHOLDERS' EQUITY



Interest-bearing liabilities:

Demand deposits $ 5,762,150 $ 1,457 0.10 % $ 5,591,548 $ 1,913 0.14 % $ 4,699,040 $ 8,494 0.72 %

Savings deposits 5,905,137 1,866 0.13 % 5,716,050 2,347 0.16 % 5,205,260 10,253 0.78 %

Brokered deposits 340,451 451 0.53 % 314,721 440 0.56 % 261,689 1,279 1.94 %

Time deposits 2,306,556 8,082 1.39 % 2,495,445 9,931 1.58 % 2,959,008 13,775 1.86 %

Total Interest-bearing 14,314,294 11,856 0.33 % 14,117,764 14,631 0.41 % 13,124,997 33,801 1.02 % Deposits



Short-term borrowings 622,623 268 0.17 % 613,127 370 0.24 % 717,811 2,343 1.29 %

FHLB advances and 1,296,139 9,930 3.06 % 1,295,515 10,042 3.10 % 875,802 6,745 3.07 % long-term debt

Total Interest-bearing 16,233,056 22,054 0.54 % 16,026,406 25,043 0.62 % 14,718,610 42,889 1.16 % Liabilities



Noninterest-bearing liabilities:

Demand deposits 6,477,228 6,270,683 4,324,568

Total Deposits/Cost of 20,791,522 0.23 % 20,388,447 0.29 % 17,449,565 0.77 % Deposits

Other 494,255 498,328 427,863

Total Liabilities 23,204,539 $ 22,795,417 19,471,041

Total Interest-bearing liabilities and non-interest bearing 22,710,284 0.39 % 22,297,089 0.45 % 19,043,178 0.89 % deposits ("Cost of Funds")



Shareholders' equity 2,544,866 2,374,091 2,341,397

Total Liabilities and $ 25,749,405 $ 25,169,508 $ 21,812,438 Shareholders' Equity



Net interest income/net interest margin (fully 164,578 2.75 % 157,106 2.70 % 162,479 3.22 % taxable equivalent)

Tax equivalent (2,987) (2,990) (3,209) adjustment

Net interest income $ 161,591 $ 154,116 $ 159,270





(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.

(2) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):

dollars in thousands

Three months ended

% Change from

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

Dec 31

2020

2020

2020

2020

2019

2020

2019

Loans, by type:

Real estate - commercial mortgage

$

7,101,363

$

6,986,528

$

6,875,872

$

6,746,766

$

6,561,029

1.6

%

8.2

%

Commercial and industrial

4,024,879

4,030,750

4,451,228

4,446,750

4,574,047

(0.1)

%

(12.0)

%

Real estate - residential mortgage

3,087,529

2,975,516

2,769,682

2,670,019

2,606,136

3.8

%

18.5

%

Real estate - home equity

1,212,113

1,237,602

1,271,190

1,300,132

1,331,088

(2.1)

%

(8.9)

%

Real estate - construction

1,009,284

981,589

941,079

929,529

934,556

2.8

%

8.0

%

Consumer

468,678

464,851

465,728

466,415

464,606

0.8

%

0.9

%

Equipment lease financing

279,059

279,217

284,658

284,566

281,451

(0.1)

%

(0.8)

%

Other(1)

(18,817)

(28,656)

13,443

15,890

14,058

(34.3)

%

N/M

Loans, net of unearned income before PPP

17,164,088

16,927,397

17,072,880

16,860,067

16,766,971

1.4

%

2.4

%

PPP

1,830,426

1,953,122

1,258,917

-

-

(6.3)

%

N/M

Total Loans, net of unearned income

$

18,994,514

$

18,880,519

$

18,331,797

$

16,860,067

$

16,766,971

0.6

%

13.3

%

Deposits, by type:

Noninterest-bearing demand

$

6,477,228

$

6,270,683

$

5,789,788

$

4,307,027

$

4,324,568

3.3

%

49.8

%

Interest-bearing demand

5,762,150

5,591,548

5,103,419

4,649,905

4,699,040

3.1

%

22.6

%

Savings

5,905,137

5,716,050

5,446,368

5,127,662

5,205,260

3.3

%

13.4

%

Total demand and savings

18,144,515

17,578,281

16,339,575

14,084,594

14,228,868

3.2

%

27.5

%

Brokered

340,451

314,721

312,121

275,359

261,689

8.2

%

30.1

%

Time

2,306,556

2,495,445

2,624,962

2,761,474

2,959,008

(7.6)

%

(22.0)

%

Total Deposits

$

20,791,522

$

20,388,447

$

19,276,658

$

17,121,427

$

17,449,565

2.0

%

19.2

%

Short-term borrowings, by type:

Customer funding

$

622,623

$

613,127

$

546,716

$

428,240

$

377,529

1.5

%

64.9

%

Federal funds purchased

-

-

74,231

186,868

91,467

N/M

(100.0)

%

Short-term FHLB advances and other borrowings

-

-

86,824

687,937

248,815

N/M

(100.0)

%

Total Short-term borrowings

$

622,623

$

613,127

$

707,771

$

1,303,045

$

717,811

1.5

%

(13.3)

%

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

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):

dollars in thousands

Three months ended % Change from

Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Dec 31

2020 2020 2020 2020 2019 2020 2019

Loans, by type:

Real estate - commercial $ 7,101,363 $ 6,986,528 $ 6,875,872 $ 6,746,766 $ 6,561,029 1.6 % 8.2 % mortgage

Commercial and industrial 4,024,879 4,030,750 4,451,228 4,446,750 4,574,047 (0.1) % (12.0) %

Real estate - residential 3,087,529 2,975,516 2,769,682 2,670,019 2,606,136 3.8 % 18.5 % mortgage

Real estate - home equity 1,212,113 1,237,602 1,271,190 1,300,132 1,331,088 (2.1) % (8.9) %

Real estate - construction 1,009,284 981,589 941,079 929,529 934,556 2.8 % 8.0 %

Consumer 468,678 464,851 465,728 466,415 464,606 0.8 % 0.9 %

Equipment lease financing 279,059 279,217 284,658 284,566 281,451 (0.1) % (0.8) %

Other(1) (18,817) (28,656) 13,443 15,890 14,058 (34.3) % N/M

Loans, net of unearned 17,164,088 16,927,397 17,072,880 16,860,067 16,766,971 1.4 % 2.4 % income before PPP

PPP 1,830,426 1,953,122 1,258,917 - - (6.3) % N/M

Total Loans, net of $ 18,994,514 $ 18,880,519 $ 18,331,797 $ 16,860,067 $ 16,766,971 0.6 % 13.3 % unearned income



Deposits, by type:

Noninterest-bearing demand $ 6,477,228 $ 6,270,683 $ 5,789,788 $ 4,307,027 $ 4,324,568 3.3 % 49.8 %

Interest-bearing demand 5,762,150 5,591,548 5,103,419 4,649,905 4,699,040 3.1 % 22.6 %

Savings 5,905,137 5,716,050 5,446,368 5,127,662 5,205,260 3.3 % 13.4 %

Total demand and savings 18,144,515 17,578,281 16,339,575 14,084,594 14,228,868 3.2 % 27.5 %

Brokered 340,451 314,721 312,121 275,359 261,689 8.2 % 30.1 %

Time 2,306,556 2,495,445 2,624,962 2,761,474 2,959,008 (7.6) % (22.0) %

Total Deposits $ 20,791,522 $ 20,388,447 $ 19,276,658 $ 17,121,427 $ 17,449,565 2.0 % 19.2 %



Short-term borrowings, by type:

Customer funding $ 622,623 $ 613,127 $ 546,716 $ 428,240 $ 377,529 1.5 % 64.9 %

Federal funds purchased - - 74,231 186,868 91,467 N/M (100.0) %

Short-term FHLB advances - - 86,824 687,937 248,815 N/M (100.0) % and other borrowings

Total Short-term borrowings $ 622,623 $ 613,127 $ 707,771 $ 1,303,045 $ 717,811 1.5 % (13.3) %



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

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands

Year ended December 31

2020

2019

Average

Interest

Yield/

Average

Interest

Yield/

Balance

(1)

Rate

Balance

(1)

Rate

ASSETS

Interest-earning assets:

Loans, net of unearned income

$

18,270,390

$

662,785

3.63

%

$

16,430,347

$

747,119

4.55

%

Taxable investment securities

2,182,410

58,173

2.66

%

2,278,448

62,556

2.74

%

Tax-exempt investment securities

825,057

26,641

3.22

%

500,398

17,998

3.57

%

Total Investment Securities

3,007,467

84,814

2.82

%

2,778,846

80,554

2.89

%

Loans held for sale

60,015

2,077

3.46

%

25,795

1,351

5.24

%

Other interest-earning assets

1,120,727

5,504

0.49

%

445,008

9,249

2.08

%

Total Interest-earning Assets

22,458,599

755,181

3.36

%

19,679,996

838,273

4.26

%

Noninterest-earning assets:

Cash and due from banks

139,146

119,144

Premises and equipment

238,864

239,376

Other assets

1,746,956

1,385,689

Less: ACL - loans(2)

(249,848)

(166,165)

Total Assets

$

24,333,717

$

21,258,040

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:

Demand deposits

$

5,278,941

$

11,390

0.22

%

$

4,384,059

$

33,348

0.76

%

Savings deposits

5,550,234

14,654

0.26

%

5,018,381

41,823

0.83

%

Brokered deposits

310,763

2,387

0.77

%

245,501

5,779

2.35

%

Time deposits

2,546,305

41,615

1.63

%

2,869,326

50,825

1.77

%

Total Interest-bearing Deposits

13,686,243

70,045

0.51

%

12,517,267

131,775

1.05

%

Short-term borrowings

810,583

5,227

0.64

%

849,679

14,543

1.70

%

FHLB advances and long-term debt

1,254,300

38,398

3.06

%

942,600

30,599

3.25

%

Total Interest-bearing Liabilities

15,751,126

113,671

0.72

%

14,309,546

176,917

1.24

%

Noninterest-bearing liabilities:

Demand deposits

5,714,803

4,249,294

Total Deposits/Cost of Deposits

19,401,046

0.36

%

16,766,561

0.79

%

Other

476,139

393,130

Total Liabilities

21,942,068

18,951,970

Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")

21,465,929

0.53

%

18,558,840

0.95

%

Shareholders' equity

2,391,649

2,306,070

Total Liabilities and Shareholders' Equity

$

24,333,717

$

21,258,040

Net interest income/net interest margin (fully taxable equivalent)

641,510

2.86

%

661,356

3.36

%

Tax equivalent adjustment

(12,303)

(12,967)

Net interest income

$

629,207

$

648,389

(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.

(2) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands

Year ended December 31

2020 2019

Average Interest Yield/ Average Interest Yield/

Balance (1) Rate Balance (1) Rate

ASSETS



Interest-earning assets:

Loans, net of $ 18,270,390 $ 662,785 3.63 % $ 16,430,347 $ 747,119 4.55 % unearned income

Taxable investment 2,182,410 58,173 2.66 % 2,278,448 62,556 2.74 % securities

Tax-exempt investment 825,057 26,641 3.22 % 500,398 17,998 3.57 % securities

Total Investment 3,007,467 84,814 2.82 % 2,778,846 80,554 2.89 % Securities

Loans held for 60,015 2,077 3.46 % 25,795 1,351 5.24 % sale

Other interest-earning 1,120,727 5,504 0.49 % 445,008 9,249 2.08 % assets

Total Interest-earning 22,458,599 755,181 3.36 % 19,679,996 838,273 4.26 % Assets



Noninterest-earning assets:

Cash and due 139,146 119,144 from banks

Premises and 238,864 239,376 equipment

Other assets 1,746,956 1,385,689

Less: ACL - (249,848) (166,165) loans(2)

Total Assets $ 24,333,717 $ 21,258,040



LIABILITIES AND SHAREHOLDERS' EQUITY



Interest-bearing liabilities:

Demand deposits $ 5,278,941 $ 11,390 0.22 % $ 4,384,059 $ 33,348 0.76 %

Savings deposits 5,550,234 14,654 0.26 % 5,018,381 41,823 0.83 %

Brokered 310,763 2,387 0.77 % 245,501 5,779 2.35 % deposits

Time deposits 2,546,305 41,615 1.63 % 2,869,326 50,825 1.77 %

Total Interest-bearing 13,686,243 70,045 0.51 % 12,517,267 131,775 1.05 % Deposits



Short-term 810,583 5,227 0.64 % 849,679 14,543 1.70 % borrowings

FHLB advances and long-term 1,254,300 38,398 3.06 % 942,600 30,599 3.25 % debt

Total Interest-bearing 15,751,126 113,671 0.72 % 14,309,546 176,917 1.24 % Liabilities



Noninterest-bearing liabilities:

Demand deposits 5,714,803 4,249,294

Total Deposits/ 19,401,046 0.36 % 16,766,561 0.79 % Cost of Deposits

Other 476,139 393,130

Total 21,942,068 18,951,970 Liabilities

Total Interest-bearing liabilities and non-interest 21,465,929 0.53 % 18,558,840 0.95 % bearing deposits ("Cost of Funds")



Shareholders' 2,391,649 2,306,070 equity

Total Liabilities and $ 24,333,717 $ 21,258,040 Shareholders' Equity



Net interest income/net interest margin 641,510 2.86 % 661,356 3.36 % (fully taxable equivalent)

Tax equivalent (12,303) (12,967) adjustment

Net interest $ 629,207 $ 648,389 income



(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.

(2) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):

dollars in thousands

Year ended December 31

2020

2019

% Change

Loans, by type:

Real estate - commercial mortgage

$

6,928,269

$

6,463,783

7.2

%

Commercial and industrial

4,237,252

4,473,549

(5.3)

%

Real estate - residential mortgage

2,876,538

2,441,684

17.8

%

Real estate - home equity

1,255,094

1,382,908

(9.2)

%

Real estate - construction

965,534

928,183

4.0

%

Consumer

466,419

448,205

4.1

%

Equipment lease financing

281,859

279,489

0.8

%

Other(1)

(4,640)

12,546

N/M

Loans, net of unearned income before PPP

17,006,325

16,430,347

3.5

%

PPP

1,264,065

-

N/M

Total Loans, net of unearned income

$

18,270,390

$

16,430,347

11.2

%

Deposits, by type:

Noninterest-bearing demand

$

5,714,803

$

4,249,294

34.5

%

Interest-bearing demand

5,278,941

4,384,059

20.4

%

Savings

5,550,234

5,018,381

10.6

%

Total demand and savings

16,543,978

13,651,734

21.2

%

Brokered

310,763

245,501

26.6

%

Time

2,546,305

2,869,326

(11.3)

%

Total Deposits

$

19,401,046

$

16,766,561

15.7

%

Short-term borrowings, by type:

Customer funding

$

553,033

$

355,983

55.4

%

Federal funds purchased

64,918

132,578

(51.0)

%

Short-term FHLB advances and other borrowings

192,632

361,118

(46.7)

%

Total Short-term Borrowings

$

810,583

$

849,679

(4.6)

%

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

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):

dollars in thousands



Year ended December 31

2020 2019 % Change

Loans, by type:

Real estate - commercial mortgage $ 6,928,269 $ 6,463,783 7.2 %

Commercial and industrial 4,237,252 4,473,549 (5.3) %

Real estate - residential mortgage 2,876,538 2,441,684 17.8 %

Real estate - home equity 1,255,094 1,382,908 (9.2) %

Real estate - construction 965,534 928,183 4.0 %

Consumer 466,419 448,205 4.1 %

Equipment lease financing 281,859 279,489 0.8 %

Other(1) (4,640) 12,546 N/M

Loans, net of unearned income 17,006,325 16,430,347 3.5 % before PPP

PPP 1,264,065 - N/M

Total Loans, net of unearned income $ 18,270,390 $ 16,430,347 11.2 %



Deposits, by type:

Noninterest-bearing demand $ 5,714,803 $ 4,249,294 34.5 %

Interest-bearing demand 5,278,941 4,384,059 20.4 %

Savings 5,550,234 5,018,381 10.6 %

Total demand and savings 16,543,978 13,651,734 21.2 %

Brokered 310,763 245,501 26.6 %

Time 2,546,305 2,869,326 (11.3) %

Total Deposits $ 19,401,046 $ 16,766,561 15.7 %



Short-term borrowings, by type:

Customer funding $ 553,033 $ 355,983 55.4 %

Federal funds purchased 64,918 132,578 (51.0) %

Short-term FHLB advances and other 192,632 361,118 (46.7) % borrowings

Total Short-term Borrowings $ 810,583 $ 849,679 (4.6) %



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

FULTON FINANCIAL CORPORATION

ASSET QUALITY INFORMATION (UNAUDITED)

dollars in thousands

Three months ended

Year ended

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

Dec 31

Dec 31

2020

2020

2020

2020

2019

2020

2019

Allowance for credit losses related to Loans, net of unearned income:

Balance at beginning of period

$

266,825

$

256,537

$

238,508

$

163,620

$

166,135

$

163,622

$

160,537

Impact of adopting CECL

-

-

-

45,724

-

45,724

-

Loans charged off:

Commercial and industrial

(1,567)

(2,969)

(3,480)

(10,899)

(30,547)

(18,915)

(42,410)

Real estate - commercial mortgage

(300)

(746)

(2,324)

(855)

(68)

(4,225)

(1,837)

Consumer and home equity

(668)

(1,093)

(1,303)

(1,529)

(1,416)

(4,593)

(4,694)

Real estate - residential mortgage

-

(198)

(235)

(187)

(223)

(620)

(1,545)

Real estate - construction

-

-

(17)

-

-

(17)

(143)

Equipment lease financing and other

(483)

(483)

(688)

(533)

(727)

(2,187)

(2,560)

Total loans charged off

(3,018)

(5,489)

(8,047)

(14,003)

(32,981)

(30,557)

(53,189)

Recoveries of loans previously charged off:

Commercial and industrial

4,581

2,103

2,978

1,734

2,487

11,396

8,721

Real estate - commercial mortgage

588

100

95

244

1,453

1,027

2,202

Consumer and home equity

594

491

649

646

437

2,380

1,994

Real estate - residential mortgage

199

95

112

85

206

491

989

Real estate - construction

179

4,873

-

70

1,098

5,122

2,591

Equipment lease financing and other

219

185

92

108

182

604

666

Recoveries of loans previously charged off

6,360

7,847

3,926

2,887

5,863

21,020

17,163

Net loans recovered (charged off)

3,342

2,358

(4,121)

(11,116)

(27,118)

(9,537)

(36,026)

Provision for credit losses

7,400

7,930

22,150

40,280

24,603

77,760

39,111

Balance at end of period

$

277,567

$

266,825

$

256,537

$

238,508

$

163,620

$

277,569

$

163,622

Net (recoveries) charge-offs to average loans (annualized)

(0.07)

%

(0.05)

%

0.09

%

0.26

%

0.65

%

0.05

%

0.22

%

Allowance credit losses related to OBS Credit Exposures(1)

Balance at beginning of period

$

15,533

$

16,383

$

18,963

$

2,588

$

6,662

Impact of adopting CECL

-

-

-

12,625

-

Provision for credit losses

(1,160)

(850)

(2,580)

3,750

(4,074)

Balance at end of period

$

14,373

$

15,533

$

16,383

$

18,963

$

2,588

NON-PERFORMING ASSETS:

Non-accrual loans

$

137,198

$

128,321

$

125,037

$

120,345

$

125,098

Loans 90 days past due and accruing

9,929

13,761

14,767

19,593

16,057

Total non-performing loans

147,127

142,082

139,804

139,938

141,155

Other real estate owned

4,178

4,565

5,418

6,593

6,831

Total non-performing assets

$

151,305

$

146,647

$

145,222

$

146,531

$

147,986

NON-PERFORMING LOANS, BY TYPE:

Commercial and industrial

$

32,610

$

37,224

$

39,730

$

41,318

$

49,491

Real estate - commercial mortgage

52,647

43,426

42,374

36,538

37,279

Real estate - residential mortgage

30,793

28,287

22,887

25,832

22,411

Consumer and home equity

13,090

12,292

11,911

11,226

11,026

Real estate - construction

1,550

4,051

4,525

4,379

4,306

Equipment lease financing and other

16,437

16,802

18,377

20,645

16,642

Total non-performing loans

$

147,127

$

142,082

$

139,804

$

139,938

$

141,155

(1) The allowance for credit losses related to OBS Credit Exposures is presented in "other liabilities" on the consolidated balance sheets.

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

2020 2020 2020 2020 2019 2020 2019

Allowance forcredit lossesrelated to Loans, net ofunearned income:

Balance atbeginning of $ 266,825 $ 256,537 $ 238,508 $ 163,620 $ 166,135 $ 163,622 $ 160,537 period



Impact of - - - 45,724 - 45,724 - adopting CECL



Loans charged off:

Commercial and (1,567) (2,969) (3,480) (10,899) (30,547) (18,915) (42,410) industrial

Real estate - commercial (300) (746) (2,324) (855) (68) (4,225) (1,837) mortgage

Consumer and (668) (1,093) (1,303) (1,529) (1,416) (4,593) (4,694) home equity

Real estate - residential - (198) (235) (187) (223) (620) (1,545) mortgage

Real estate - - - (17) - - (17) (143) construction

Equipment lease (483) (483) (688) (533) (727) (2,187) (2,560) financing and other

Total loans (3,018) (5,489) (8,047) (14,003) (32,981) (30,557) (53,189) charged off

Recoveries ofloans previously charged off:

Commercial and 4,581 2,103 2,978 1,734 2,487 11,396 8,721 industrial

Real estate - commercial 588 100 95 244 1,453 1,027 2,202 mortgage

Consumer and 594 491 649 646 437 2,380 1,994 home equity

Real estate - residential 199 95 112 85 206 491 989 mortgage

Real estate - 179 4,873 - 70 1,098 5,122 2,591 construction

Equipment lease 219 185 92 108 182 604 666 financing and other

Recoveries of loans 6,360 7,847 3,926 2,887 5,863 21,020 17,163 previously charged off

Net loansrecovered 3,342 2,358 (4,121) (11,116) (27,118) (9,537) (36,026) (charged off)

Provision for 7,400 7,930 22,150 40,280 24,603 77,760 39,111 credit losses

Balance at end $ 277,567 $ 266,825 $ 256,537 $ 238,508 $ 163,620 $ 277,569 $ 163,622 of period

Net (recoveries)charge-offs to (0.07) % (0.05) % 0.09 % 0.26 % 0.65 % 0.05 % 0.22 %average loans(annualized)



Allowance creditlosses related to OBS CreditExposures^(1)

Balance at beginning of $ 15,533 $ 16,383 $ 18,963 $ 2,588 $ 6,662 period

Impact of - - - 12,625 - adopting CECL

Provision for (1,160) (850) (2,580) 3,750 (4,074) credit losses

Balance at end $ 14,373 $ 15,533 $ 16,383 $ 18,963 $ 2,588 of period



NON-PERFORMING ASSETS:

Non-accrual $ 137,198 $ 128,321 $ 125,037 $ 120,345 $ 125,098 loans

Loans 90 days past due and 9,929 13,761 14,767 19,593 16,057 accruing

Total non-performing 147,127 142,082 139,804 139,938 141,155 loans

Other real 4,178 4,565 5,418 6,593 6,831 estate owned

Total non-performing $ 151,305 $ 146,647 $ 145,222 $ 146,531 $ 147,986 assets



NON-PERFORMING LOANS, BY TYPE:

Commercial and $ 32,610 $ 37,224 $ 39,730 $ 41,318 $ 49,491 industrial

Real estate - commercial 52,647 43,426 42,374 36,538 37,279 mortgage

Real estate - residential 30,793 28,287 22,887 25,832 22,411 mortgage

Consumer and 13,090 12,292 11,911 11,226 11,026 home equity

Real estate - 1,550 4,051 4,525 4,379 4,306 construction

Equipment lease 16,437 16,802 18,377 20,645 16,642 financing and other

Total non-performing $ 147,127 $ 142,082 $ 139,804 $ 139,938 $ 141,155 loans



(1) The allowance for credit losses related to OBS Credit Exposures ispresented in "other liabilities" on the consolidated balance sheets.



FULTON FINANCIAL CORPORATION

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

in thousands, except per share data and percentages

Explanatory note:

This press release contains supplemental financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:

FULTON FINANCIAL CORPORATION

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

in thousands, except per share data and percentages



This press release contains supplemental financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and otherExplanatory interested parties in the evaluation of companies in thenote: 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

2020

2020

2020

2020

2019

Common shareholders' equity (tangible), per share

Shareholders' equity

$

2,616,828

$

2,390,261

$

2,340,501

$

2,285,748

$

2,342,176

Less: Preferred stock

(192,878)

-

-

-

-

Less: Goodwill and intangible assets

(536,659)

(534,907)

(535,039)

(535,171)

(535,303)

Tangible common shareholders' equity (numerator)

$

1,887,291

$

1,855,354

$

1,805,462

$

1,750,577

$

1,806,873

Shares outstanding, end of period (denominator)

162,350

162,134

161,958

161,435

164,218

Common shareholders' equity (tangible), per share

$

11.62

$

11.44

$

11.15

$

10.84

$

11.00

Return on average common shareholders' equity (tangible)

Net income available to common shareholders

$

48,690

$

61,610

$

39,558

$

26,047

$

47,789

Plus: Intangible amortization, net of tax

104

103

104

104

112

(Numerator)

$

48,794

$

61,713

$

39,662

$

26,151

$

47,901

Average shareholders' equity

$

2,544,866

$

2,374,091

$

2,309,133

$

2,337,016

$

2,341,397

Less: Average preferred stock

(127,639)

-

-

-

-

Less: Average goodwill and intangible assets

(535,474)

(534,971)

(535,103)

(535,235)

(534,190)

Average tangible common shareholders' equity (denominator)

$

1,881,753

$

1,839,120

$

1,774,030

$

1,801,781

$

1,807,207

Return on average common shareholders' equity (tangible), annualized

10.32

%

13.50

%

8.99

%

5.84

%

10.52

%

Tangible common equity to tangible assets (TCE Ratio)

Shareholders' equity

$

2,616,828

$

2,390,261

$

2,340,501

$

2,285,748

$

2,342,176

Less: Preferred stock

(192,878)

-

-

-

-

Less: Goodwill and intangible assets

(536,659)

(534,907)

(535,039)

(535,171)

(535,303)

Tangible common shareholders' equity (numerator)

$

1,887,291

$

1,855,354

$

1,805,462

$

1,750,577

$

1,806,873

Total assets

$

25,906,733

$

25,543,281

$

24,617,863

$

22,929,859

$

21,886,040

Less: Goodwill and intangible assets

(536,659)

(534,907)

(535,039)

(535,171)

(535,303)

Total tangible assets (denominator)

$

25,370,074

$

25,008,374

$

24,082,824

$

22,394,688

$

21,350,737

Tangible common equity to tangible assets

7.44

%

7.42

%

7.50

%

7.82

%

8.46

%

Efficiency ratio

Non-interest expense

$

154,737

$

139,145

$

143,006

$

142,552

$

138,974

Less: Amortization of tax credit investments

(1,532)

(1,694)

(1,450)

(1,450)

(1,505)

Less: Intangible amortization

(132)

(132)

(132)

(132)

(142)

Less: Prepayment penalty on FHLB advances

-

-

(2,878)

-

-

Non-interest expense (numerator)

$

153,073

$

137,319

$

138,546

$

140,970

$

137,327

Net interest income (fully taxable equivalent)

$

164,578

$

157,106

$

155,854

$

163,970

$

162,479

Plus: Total Non-interest income

55,574

63,248

55,922

54,644

55,281

Less: Investment securities gains, net

-

(2)

(3,005)

(46)

-

Total revenue (denominator)

$

220,151

$

220,353

$

208,771

$

218,568

$

217,760

Efficiency ratio

69.5

%

62.3

%

66.4

%

64.5

%

63.1

%

Three months ended

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

2020

2020

2020

2020

2019

Efficiency ratio, net 2020 cost savings initiatives

Non-interest expense

$

154,737

$

139,145

$

143,006

$

142,552

$

138,974

Less: Amortization of tax credit investments

(1,532)

(1,694)

(1,450)

(1,450)

(1,505)

Less: Intangible amortization

(132)

(132)

(132)

(132)

(142)

Less: 2020 cost savings initiatives

(15,400)

(800)

-

-

-

Less: Prepayment penalty on FHLB advances

-

-

(2,878)

-

-

Non-interest expense (numerator)

$

137,673

$

136,519

$

138,546

$

140,970

$

137,327

Net interest income (fully taxable equivalent)

$

164,578

$

157,106

$

155,854

$

163,970

$

162,479

Plus: Total Non-interest income

55,574

63,248

55,922

54,644

55,281

Less: Investment securities gains, net

-

(2)

(3,005)

(46)

-

Total revenue (denominator)

$

220,151

$

220,353

$

208,771

$

218,568

$

217,760

Efficiency ratio, net 2020 cost savings initiatives

62.5

%

62.0

%

66.4

%

64.5

%

63.1

%

Non-performing assets to common shareholders' equity (tangible) and ACL - loans(1)

Non-performing assets (numerator)

$

151,305

$

146,647

$

145,222

$

146,531

$

147,986

Tangible common shareholders' equity

$

1,887,291

$

1,855,354

$

1,805,462

$

1,750,577

$

1,806,873

Plus: ACL - loans

277,567

266,825

256,537

238,508

163,622

Tangible common shareholders' equity and ACL - loans (denominator)

$

2,164,858

$

2,122,179

$

2,061,999

$

1,989,085

$

1,970,495

Non-performing assets to tangible common shareholders' equity and ACL - loans

6.99

%

6.91

%

7.04

%

7.37

%

7.51

%

Asset Quality, excluding PPP

Net loans recovered (charged-off) (numerator)

$

3,342

$

2,358

$

(4,121)

$

(11,116)

$

(27,118)

Average loans, net of unearned income

$

18,994,514

$

18,880,519

$

18,331,797

$

16,860,067

$

16,766,971

Less: Average PPP loans

(1,830,426)

(1,953,122)

(1,258,917)

-

-

Total adjusted average loans (denominator)

$

17,164,088

$

16,927,397

$

17,072,880

$

16,860,067

$

16,766,971

Net (recoveries) charge-offs to adjusted average loans (annualized)

(0.08)

%

(0.06)

%

0.10

%

0.26

%

0.65

%

Non-performing loans (numerator)

$

147,127

$

142,082

$

139,804

$

139,938

$

141,155

Loans, net of unearned income

$

18,900,820

$

19,028,621

$

18,704,722

$

17,077,403

$

16,837,526

Less: PPP loans

(1,581,712)

(1,960,165)

(1,937,034)

-

-

Total adjusted loans (denominator)

$

17,319,108

$

17,068,456

$

16,767,688

$

17,077,403

$

16,837,526

Non-performing loans to adjusted total loans

0.85

%

0.83

%

0.83

%

0.82

%

0.84

%

ACL - loans (numerator)

$

277,567

$

266,825

256,537

238,508

$

163,622

Loans, net of unearned income

$

18,900,820

$

19,028,621

$

18,704,722

$

17,077,403

$

16,837,526

Less: PPP loans

(1,581,712)

(1,960,165)

(1,937,034)

-

-

Total adjusted loans (denominator)

$

17,319,108

$

17,068,456

$

16,767,688

$

17,077,403

$

16,837,526

ACL - loans to adjusted total loans

1.60

%

1.56

%

1.53

%

1.40

%

0.97

%

Note: numbers may not sum due to rounding.

(1) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210119006092/en/

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