Business Wire | Jan 18, 2022 04:57PM EST

Fulton Financial Announces Fourth Quarter and 2021 Results

Jan. 18, 2022

LANCASTER, Pa.--(BUSINESS WIRE)--Jan. 18, 2022--Fulton Financial Corporation (NASDAQ:FULT) ("Fulton" or the "Corporation") reported net income available to common shareholders of $59.3 million, or $0.37 per diluted share, for the fourth quarter of 2021 and $265.2 million, or $1.62 per diluted share, for the year ended December 31, 2021.

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"2021 was a very good year for Fulton - a result of our continued successful execution of our relationship banking strategy," said E. Philip Wenger, Chairman and CEO of Fulton Financial Corporation. "Despite a difficult operating environment, the Fulton team did an outstanding job in helping our customers through some very challenging times. Our employees served as trusted financial advisors and delivered a wide variety of financial products and services. These activities, coupled with our success in keeping credit costs down and maintaining expenses, translated into record earnings per share for 2021. We are encouraged by many of the core business trends we saw during the year, particularly in the second half of 2021, and believe we are well-positioned to continue to advance our strategic priorities and deliver shareholder value in 2022."

Net Interest Income and Balance Sheet

Net interest income for the fourth quarter of 2021 was $165.6 million, $5.7 million lower than the third quarter of 2021. Net interest margin for the fourth quarter of 2021 decreased 5 basis points, to 2.77%, from 2.82% in the third quarter of 2021. The quarter-over-quarter decreases in net interest income and net interest margin were primarily due to a decrease in loan fees related to Paycheck Protection Program ("PPP") loans, which were $10.0 million in the fourth quarter of 2021 compared to $17.7 million in the third quarter of 2021, partially offset by a lower cost of deposits. The PPP loan balance as of December 31, 2021 was $301.3 million.

For the year ended December 31, 2021, net interest income was $663.7 million, an increase of $34.5 million in comparison to the year ended December 31, 2020. Net interest income for 2021 included $59.0 million in PPP loan fees. The yield on average interest-earning assets and the rate on average interest-bearing liabilities both declined 34 basis points in 2021 in comparison to 2020. The net interest margin in 2021 was 2.78% compared to 2.86% in 2020.

Total average interest-earning assets for the fourth quarter of 2021 were $24.3 billion, a decrease of $0.3 billion from the third quarter of 2021, driven by decreases in PPP loans of $0.4 billion and deposits with other banks reflected in other interest-earning assets of $0.2 billion, partially offset by increases in residential mortgage loans of $0.1 billion and tax-exempt investment securities of $0.1 billion.

Total average interest-earning assets for the year ended December 31, 2021 were $24.4 billion, an increase of $1.9 billion from 2020. Average loans, net of unearned income, were $18.6 billion, an increase of $0.4 billion from 2020. Included in average loans were PPP loans that had an average balance of $1.1 billion, a decrease of $0.1 billion from 2020. The increase in average loans was mainly driven by a $0.6 billion increase in the residential mortgage loan portfolio.

Total average interest-bearing liabilities decreased $0.3 billion, to $15.5 billion, in the fourth quarter of 2021 compared to the third quarter of 2021, driven by decreases of $0.2 billion in wholesale deposits reflected in demand deposits and $0.1 billion in time deposits. Average noninterest-bearing deposits increased $0.1 billion in the fourth quarter of 2021.

Total average interest-bearing deposits for the year ended December 31, 2021 increased $0.8 billion from 2020, driven by increases in demand and savings deposits. Average noninterest-bearing deposits increased $1.5 billion for the year ended December 31, 2021.

The Corporation repurchased 1.1 million shares and 2.8 million shares of Fulton common stock during the fourth quarter of 2021 and for the year ended December 31, 2021, respectively, at a cost of $17.8 million and $43.9 million, respectively. As of December 31, 2021, up to an additional $31.1 million of Fulton's common stock may be repurchased through March 31, 2022 under the $75 million share repurchase program originally announced in February 2021.

Asset Quality

In the fourth quarter of 2021, a negative provision for credit losses of $5.0 million was recognized, as compared to a negative provision for credit losses of $0.6 million recognized in the third quarter of 2021. The negative provision for credit losses for the fourth quarter of 2021 was recorded to adjust the allowance for credit losses as a result of improved economic conditions. For the year ended December 31, 2021, the negative provision for credit losses was $14.6 million compared to a provision for credit losses of $76.9 million in 2020. A $6.2 million provision for credit losses was recognized in the fourth quarter of 2020.

Non-performing assets were $153.9 million, or 0.60% of total assets, at December 31, 2021, compared to $152.1 million, or 0.58% of total assets, and $151.3 million, or 0.58% of total assets, at September 30, 2021 and December 31, 2020, respectively.

Annualized net charge-offs (recoveries) for the quarter ended December 31, 2021, were 0.07% of total average loans, compared to (0.05)% and (0.07)% for the quarters ended September 30, 2021 and December 31, 2020, respectively.

Non-interest Income

Non-interest income in the fourth quarter of 2021 was $63.9 million, an increase of $1.3 million, or 2.1%, from the third quarter of 2021. The increase in non-interest income was primarily due to a $1.6 million increase in income from equity method investments reflected in other income.

Compared to the fourth quarter of 2020, non-interest income in the fourth quarter of 2021 increased $8.3 million, or 14.9%, from $55.6 million, primarily due to an increase of $3.9 million in income from equity method investments, a $2.6 million increase in wealth management income due to growth in managed assets, and increases of $1.7 million and $1.3 million in commercial banking income and consumer banking income, respectively. These increases were partially offset with a $2.1 million decrease in mortgage banking income, primarily due to a decline in income from loan sales for the period.

For the year ended December 31, 2021, non-interest income, excluding investment securities gains, was $240.2 million, an increase of $13.9 million, or 6.1%, from 2020. The increase was primarily due to increases of $12.7 million in wealth management, $7.1 million in income from equity method investments and $3.9 million in consumer banking income, offset by declines of $8.7 million in mortgage banking income, due to a $29.2 million decline in income from loan sales, offset by a net favorable pre-tax income change attributable to the mortgage servicing rights valuation allowance as compared to 2020 of $20.4 million. Specifically, Fulton increased the mortgage servicing valuation allowance by $10.5 million in 2020. The Corporation reduced the valuation allowance by $9.9 million in 2021. As of December 31, 2021, the mortgage servicing rights valuation allowance remaining was $0.6 million.

During both 2021 and 2020, Fulton completed balance sheet restructurings involving sales of investment securities and corresponding prepayments of FHLB advances. During 2021, the balance sheet restructuring involved gains on sales of Visa, Inc. Class B restricted shares of $34.0 million that were offset in non-interest expense by debt extinguishment of costs of $33.2 million.

Non-interest Expense

Non-interest expense was $154.0 million in the fourth quarter of 2021, an increase of $9.4 million, or 6.5%, compared to the third quarter of 2021. The increase was primarily due to increases in salaries and employee benefits of $2.8 million during the fourth quarter of 2021 as a result of higher incentive compensation and bonuses, charitable contributions of $2.5 million, reflected in other expense, and other outside services expense of $1.7 million, driven by technology-related services.

Compared to the fourth quarter of 2020, non-interest expense decreased $0.7 million, or 0.5%, in the fourth quarter of 2021, primarily due to a write-off in the prior year period of $4.8 million for fixed assets and $5.8 million of lease termination charges, partially offset by increases of $2.7 million in data processing and software and $1.3 million in other outside services. In addition, salaries and employee benefits increased $1.6 million, primarily due to an increase of $6.8 million for incentive compensation and bonuses, partially offset by a $4.4 million decrease in employee severance expense. During the fourth quarter of 2021, the Corporation made a $1.0 million contribution to the Fulton Forward Foundation.

Total non-interest expense increased $38.4 million to $617.8 million, or 6.6%, in 2021 in comparison to 2020. Non-interest expense, excluding debt extinguishment costs of $33.2 million, was $584.6 million, an increase of $21.3 million, or 3.8%, compared to non-interest expenses of $563.2 million in 2020, which excludes expenses associated with cost savings initiatives of $16.2 million. Excluding the net decrease in severance costs of $5.9 million, the increase in non-interest expense over 2020 was primarily due to increases in salaries and employee benefits of $10.6 million, attributable to a $12.7 million increase in incentive compensation and bonuses. Also contributing to the increase in non-interest expense were $8.4 million in data processing and software and $2.8 million in other outside services expense, partially offset by a $3.2 million decrease in professional fees.

Income Tax Expense

For the year ended December 31, 2021, the effective tax rate was 17.6% compared to 12.0% in 2020. The increase was a result of higher income before income taxes.

Additional information on Fulton is available on the Internet at www.fultonbank.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, 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, 2020, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021, 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.fultonbank.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

2021 2021 2021 2021 2020

Ending Balances

Investments $ 4,167,774 $ 4,000,760 $ 3,921,658 $ 3,612,010 $ 3,340,424

Net loans 18,325,350 18,269,407 18,586,756 18,990,986 18,900,820

Total assets 25,796,398 26,390,832 26,079,774 25,892,990 25,906,733

Deposits 21,573,499 22,074,041 21,724,312 21,633,838 20,839,207

Shareholders' 2,712,680 2,699,818 2,692,958 2,629,655 2,616,828 equity



Average Balances

Investments $ 3,980,045 $ 3,914,627 $ 3,670,333 $ 3,448,166 $ 3,221,289

Net loans 18,220,550 18,414,153 18,906,556 18,980,586 18,994,514

Total assets 26,136,536 26,440,876 26,017,542 26,082,816 25,749,405

Deposits 21,876,938 22,123,480 21,765,601 21,117,024 20,791,522

Shareholders' 2,713,198 2,722,833 2,669,413 2,637,098 2,544,866 equity



Income Statement

Net interest $ 165,613 $ 171,270 $ 162,399 $ 164,448 $ 161,591 income

Provision for (5,000 ) (600 ) (3,500 ) (5,500 ) 6,240 credit losses

Non-interest 63,881 62,577 51,890 95,397 55,574 income

Non-interest 154,019 144,596 140,831 178,384 154,738 expense

Income before 80,475 89,851 76,958 86,961 56,187 taxes

Net incomeavailable to 59,325 73,021 62,402 70,472 48,690 commonshareholders

Pre-provision net 77,837 90,947 75,575 81,795 64,092 revenue^(1)



Per Share

Net incomeavailable tocommon $ 0.37 $ 0.45 $ 0.38 $ 0.43 $ 0.30 shareholders(basic)

Net incomeavailable tocommon $ 0.37 $ 0.45 $ 0.38 $ 0.43 $ 0.30 shareholders(diluted)

Cash dividends $ 0.22 $ 0.14 $ 0.14 $ 0.14 $ 0.17

Commonshareholders' $ 15.70 $ 15.53 $ 15.34 $ 14.99 $ 14.93 equity

Commonshareholders' $ 12.35 $ 12.21 $ 12.05 $ 11.69 $ 11.62 equity (tangible)^(1)

Weighted average 161,210 162,506 162,785 162,441 162,242 shares (basic)

Weighted average 162,355 163,456 163,858 163,737 163,071 shares (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

2021 2021 2021 2021 2020

Asset Quality

Net charge-offs(recoveries) to 0.07 % (0.05 ) 0.15 % 0.13 % (0.07 )average loans % %(annualized)

Non-performingloans to total 0.83 % 0.82 % 0.83 % 0.80 % 0.78 %loans

Non-performingassets to total 0.60 % 0.58 % 0.60 % 0.60 % 0.58 %assets

ACL - loans^(2) to 1.36 % 1.41 % 1.37 % 1.40 % 1.47 %total loans

ACL - loans^(2) tonon-performing 164 % 171 % 166 % 174 % 189 %loans



Asset Quality,excluding PPP^(1) (3)

Net charge-offs(recoveries) to 0.07 % (0.05 ) 0.16 % 0.14 % (0.08 )adjusted average % %loans (annualized)

Non-performingloans to total 0.84 % 0.85 % 0.88 % 0.88 % 0.85 %adjusted loans

ACL - loans^(2) tototal adjusted 1.38 % 1.45 % 1.46 % 1.54 % 1.60 %loans



Profitability

Return on average 0.94 % 1.13 % 1.00 % 1.14 % 0.79 %assets

Return on averagecommon 9.34 % 11.45 % 10.01 % 11.73 % 8.21 %shareholders'equity

Return on averagecommonshareholders' 11.89 % 14.56 % 12.93 % 15.00 % 10.32 %equity (tangible)^(1)

Net interest 2.77 % 2.82 % 2.73 % 2.79 % 2.75 %margin

Efficiency ratio^ 65.2 % 60.3 % 63.8 % 63.0 % 62.5 %(1)

Non-interestexpenses to total 2.30 % 2.14 % 2.14 % 2.25 % 2.13 %average assets^(1)



Capital Ratios

Tangible common 7.8 % 7.6 % 7.7 % 7.5 % 7.4 %equity ratio^(1)

Tier 1 leverage 8.5 % 8.4 % 8.5 % 8.3 % 8.2 %ratio^(4)

Common equity Tier1 capital ratio^ 10.0 % 10.1 % 10.0 % 9.8 % 9.5 %(4)

Tier 1 risk-based 11.0 % 11.1 % 11.0 % 10.8 % 10.5 %capital ratio^(4)

Total risk-based 14.3 % 14.4 % 14.5 % 14.2 % 14.4 %capital ratio^(4)



(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) "ACL - loans" relates to the allowance for credit losses ("ACL")specifically on "Net Loans" and does not include the ACL related tooff-balance-sheet ("OBS") credit exposures.

(3) 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.

(4) Regulatory capital ratios as of December 31, 2021 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

2021

2021

2021

2021

2020

2021

2020

ASSETS

Cash and due from banks

$

172,276

$

260,564

$

143,002

$

102,570

$

120,462

(33.9

)%

43.0

%

Other interest-earning assets

1,523,973

2,271,738

1,823,688

1,625,515

1,819,499

(32.9

)%

(16.2

)%

Loans held for sale

35,768

43,123

41,924

34,092

83,886

(17.1

)%

(57.4

)%

Investment securities

4,167,774

4,000,760

3,921,658

3,612,010

3,340,424

4.2

%

24.8

%

Net loans

18,325,350

18,269,407

18,586,756

18,990,986

18,900,820

0.3

%

(3.0

)%

Less: ACL - loans(1)

(249,001

)

(256,727

)

(255,032

)

(265,986

)

(277,567

)

(3.0

)%

(10.3

)%

Loans, net

18,076,349

18,012,680

18,331,724

18,725,000

18,623,253

0.4

%

(2.9

)%

Net, premises and equipment

220,357

228,179

228,353

229,035

231,480

(3.4

)%

(4.8

)%

Accrued interest receivable

57,451

57,902

63,232

65,649

72,942

(0.8

)%

(21.2

)%

Goodwill and intangible assets

538,053

536,697

536,847

536,544

536,659

0.3

%

0.3

%

Other assets

1,004,397

979,189

989,346

962,575

1,078,128

2.6

%

(6.8

)%

Total Assets

$

25,796,398

$

26,390,832

$

26,079,774

$

25,892,990

$

25,906,733

(2.3

)%

(0.4

)%

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

$

21,573,499

$

22,074,041

$

21,724,312

$

21,633,838

$

20,839,207

(2.3

)%

3.5

%

Short-term borrowings

416,764

468,967

533,749

520,989

630,066

(11.1

)%

(33.9

)%

Other liabilities

472,110

520,620

501,542

482,101

524,369

(9.3

)%

(10.0

)%

Long-term borrowings

621,345

627,386

627,213

626,407

1,296,263

(1.0

)%

(52.1

)%

Total Liabilities

23,083,718

23,691,014

23,386,816

23,263,335

23,289,905

(2.6

)%

(0.9

)%

Shareholders' equity

2,712,680

2,699,818

2,692,958

2,629,655

2,616,828

0.5

%

3.7

%

Total Liabilities and Shareholders' Equity

$

25,796,398

$

26,390,832

$

26,079,774

$

25,892,990

$

25,906,733

(2.3

)%

(0.4

)%

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

Loans, by type:

Real estate - commercial mortgage

$

7,279,080

$

7,145,115

$

7,152,932

$

7,142,137

$

7,105,092

1.9

%

2.4

%

Commercial and industrial

3,906,791

3,863,154

3,870,462

3,986,858

4,088,561

1.1

%

(4.4

)%

Real estate - residential mortgage

3,846,750

3,719,684

3,555,897

3,254,058

3,141,915

3.4

%

22.4

%

Real estate - home equity

1,118,248

1,126,628

1,136,128

1,149,958

1,202,913

(0.7

)%

(7.0

)%

Real estate - construction

1,139,779

1,111,487

1,070,755

1,083,494

1,047,218

2.5

%

8.8

%

Consumer

464,657

458,595

448,433

451,857

466,772

1.3

%

(0.5

)%

Equipment lease financing

236,344

242,967

252,158

260,907

279,118

(2.7

)%

(15.3

)%

Other(2)

32,448

11,330

(14,410

)

(26,677

)

(12,481

)

N/M

N/M

Net loans before PPP

18,024,097

17,678,960

17,472,355

17,302,592

17,319,108

2.0

%

4.1

%

PPP

301,253

590,447

1,114,401

1,688,394

1,581,712

(49.0

)%

(81.0

)%

Total Net Loans

$

18,325,350

$

18,269,407

$

18,586,756

$

18,990,986

$

18,900,820

0.3

%

(3.0

)%

Deposits, by type:

Noninterest-bearing demand

$

7,370,963

$

7,434,155

$

7,442,132

$

7,046,116

$

6,531,002

(0.9

)%

12.9

%

Interest-bearing demand

5,819,539

6,187,096

5,795,404

5,959,909

5,818,564

(5.9

)%

-

%

Savings

6,403,995

6,401,619

6,276,554

6,244,513

5,929,792

-

%

8.0

%

Total demand and savings

19,594,497

20,022,870

19,514,090

19,250,538

18,279,358

(2.1

)%

7.2

%

Brokered

251,526

262,617

277,444

309,873

335,185

(4.2

)%

(25.0

)%

Time

1,727,476

1,788,554

1,932,778

2,073,427

2,224,664

(3.4

)%

(22.3

)%

Total Deposits

$

21,573,499

$

22,074,041

$

21,724,312

$

21,633,838

$

20,839,207

(2.3

)%

3.5

%

Short-term borrowings, by type:

Customer funding

$

416,764

$

468,967

$

533,749

$

520,989

$

630,066

(11.1

)%

(33.9

)%

Total Short-Term Borrowings

$

416,764

$

468,967

$

533,749

$

520,989

$

630,066

(11.1

)%

(33.9

)%

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

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

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

dollars in thousands

% Change from

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

2021 2021 2021 2021 2020 2021 2020

ASSETS

Cash and due from $ 172,276 $ 260,564 $ 143,002 $ 102,570 $ 120,462 (33.9 ) 43.0 % banks %

Other ) ) interest-earning 1,523,973 2,271,738 1,823,688 1,625,515 1,819,499 (32.9 % (16.2 % assets

Loans held for sale 35,768 43,123 41,924 34,092 83,886 (17.1 ) (57.4 ) % %

Investment 4,167,774 4,000,760 3,921,658 3,612,010 3,340,424 4.2 % 24.8 % securities

Net loans 18,325,350 18,269,407 18,586,756 18,990,986 18,900,820 0.3 % (3.0 ) %

Less: ACL - loans^ (249,001 ) (256,727 ) (255,032 ) (265,986 ) (277,567 ) (3.0 ) (10.3 ) (1) % %

Loans, net 18,076,349 18,012,680 18,331,724 18,725,000 18,623,253 0.4 % (2.9 ) %

Net, premises and 220,357 228,179 228,353 229,035 231,480 (3.4 ) (4.8 ) equipment % %

Accrued interest 57,451 57,902 63,232 65,649 72,942 (0.8 ) (21.2 ) receivable % %

Goodwill and 538,053 536,697 536,847 536,544 536,659 0.3 % 0.3 % intangible assets

Other assets 1,004,397 979,189 989,346 962,575 1,078,128 2.6 % (6.8 ) %

Total Assets $ 25,796,398 $ 26,390,832 $ 26,079,774 $ 25,892,990 $ 25,906,733 (2.3 ) (0.4 ) % %

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits $ 21,573,499 $ 22,074,041 $ 21,724,312 $ 21,633,838 $ 20,839,207 (2.3 ) 3.5 % %

Short-term 416,764 468,967 533,749 520,989 630,066 (11.1 ) (33.9 ) borrowings % %

Other liabilities 472,110 520,620 501,542 482,101 524,369 (9.3 ) (10.0 ) % %

Long-term 621,345 627,386 627,213 626,407 1,296,263 (1.0 ) (52.1 ) borrowings % %

Total Liabilities 23,083,718 23,691,014 23,386,816 23,263,335 23,289,905 (2.6 ) (0.9 ) % %

Shareholders' 2,712,680 2,699,818 2,692,958 2,629,655 2,616,828 0.5 % 3.7 % equity

Total Liabilities ) ) and Shareholders' $ 25,796,398 $ 26,390,832 $ 26,079,774 $ 25,892,990 $ 25,906,733 (2.3 % (0.4 % Equity



LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

Loans, by type:

Real estate - $ 7,279,080 $ 7,145,115 $ 7,152,932 $ 7,142,137 $ 7,105,092 1.9 % 2.4 % commercial mortgage

Commercial and 3,906,791 3,863,154 3,870,462 3,986,858 4,088,561 1.1 % (4.4 ) industrial %

Real estate - residential 3,846,750 3,719,684 3,555,897 3,254,058 3,141,915 3.4 % 22.4 % mortgage

Real estate - home 1,118,248 1,126,628 1,136,128 1,149,958 1,202,913 (0.7 ) (7.0 ) equity % %

Real estate - 1,139,779 1,111,487 1,070,755 1,083,494 1,047,218 2.5 % 8.8 % construction

Consumer 464,657 458,595 448,433 451,857 466,772 1.3 % (0.5 ) %

Equipment lease 236,344 242,967 252,158 260,907 279,118 (2.7 ) (15.3 ) financing % %

Other^(2) 32,448 11,330 (14,410 ) (26,677 ) (12,481 ) N/M N/M

Net loans before 18,024,097 17,678,960 17,472,355 17,302,592 17,319,108 2.0 % 4.1 % PPP

PPP 301,253 590,447 1,114,401 1,688,394 1,581,712 (49.0 ) (81.0 ) % %

Total Net Loans $ 18,325,350 $ 18,269,407 $ 18,586,756 $ 18,990,986 $ 18,900,820 0.3 % (3.0 ) %

Deposits, by type:

Noninterest-bearing $ 7,370,963 $ 7,434,155 $ 7,442,132 $ 7,046,116 $ 6,531,002 (0.9 ) 12.9 % demand %

Interest-bearing 5,819,539 6,187,096 5,795,404 5,959,909 5,818,564 (5.9 ) - % demand %

Savings 6,403,995 6,401,619 6,276,554 6,244,513 5,929,792 - % 8.0 %

Total demand and 19,594,497 20,022,870 19,514,090 19,250,538 18,279,358 (2.1 ) 7.2 % savings %

Brokered 251,526 262,617 277,444 309,873 335,185 (4.2 ) (25.0 ) % %

Time 1,727,476 1,788,554 1,932,778 2,073,427 2,224,664 (3.4 ) (22.3 ) % %

Total Deposits $ 21,573,499 $ 22,074,041 $ 21,724,312 $ 21,633,838 $ 20,839,207 (2.3 ) 3.5 % %

Short-term borrowings, by type:

Customer funding $ 416,764 $ 468,967 $ 533,749 $ 520,989 $ 630,066 (11.1 ) (33.9 ) % %

Total Short-Term $ 416,764 $ 468,967 $ 533,749 $ 520,989 $ 630,066 (11.1 ) (33.9 ) Borrowings % %



(1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does notinclude 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

Year Ended

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

Dec 31

Dec 31

2021

2021

2021

2021

2020

2021

2020

2021

2020

% Change

Interest Income:

Interest income

$

177,724

$

184,079

$

176,673

$

184,936

$

183,645

(3.5

)%

(3.2

)%

$

723,412

$

742,878

(2.6

)%

Interest expense

12,111

12,809

14,274

20,488

22,054

(5.4

)%

(45.1

)%

59,682

113,671

(47.5

)%

Net Interest Income

165,613

171,270

162,399

164,448

161,591

(3.3

)%

2.5

%

663,730

629,207

5.5

%

Provision for credit losses

(5,000

)

(600

)

(3,500

)

(5,500

)

6,240

N/M

N/M

(14,600

)

76,920

(119.0

)%

Net Interest Income after Provision

170,613

171,870

165,899

169,948

155,351

(0.7

)%

9.8

%

678,330

552,287

22.8

%

Non-Interest Income:

Commercial banking:

Merchant and card

6,588

6,979

6,786

5,768

5,953

(5.6

)%

10.7

%

26,121

23,139

12.9

%

Cash management

5,318

5,285

5,341

4,921

4,737

0.6

%

12.3

%

20,865

18,725

11.4

%

Capital markets

2,982

2,063

1,536

2,800

3,513

44.5

%

(15.1

)%

9,381

18,288

(48.7

)%

Other commercial banking

3,592

2,411

3,466

2,853

2,606

49.0

%

37.8

%

12,322

10,134

21.6

%

Total commercial banking

18,480

16,738

17,129

16,342

16,809

10.4

%

9.9

%

68,689

70,286

(2.3

)%

Consumer banking:

Card

5,953

5,941

5,733

5,878

5,123

0.2

%

16.2

%

23,505

19,777

18.9

%

Overdraft

3,896

3,474

2,750

2,724

3,376

12.1

%

15.4

%

12,844

12,556

2.3

%

Other consumer banking

2,280

2,386

2,377

2,152

2,298

(4.4

)%

(0.8

)%

9,195

9,265

(0.8

)%

Total consumer banking

12,129

11,801

10,860

10,754

10,797

2.8

%

12.3

%

45,544

41,598

9.5

%

Wealth management

18,285

18,532

17,634

17,347

15,653

(1.3

)%

16.8

%

71,798

59,058

21.6

%

Mortgage banking

7,243

9,535

2,838

13,960

9,311

(24.0

)%

(22.2

)%

33,576

42,309

(20.6

)%

Other

7,739

5,971

3,393

3,519

3,004

29.6

%

N/M

20,622

13,084

57.6

%

Non-interest income before

investment securities gains

63,876

62,577

51,854

61,922

55,574

2.1

%

14.9

%

240,229

226,335

6.1

%

Investment securities gains, net

5

-

36

33,475

-

N/M

N/M

33,516

3,053

N/M

Total Non-Interest Income

63,881

62,577

51,890

95,397

55,574

2.1

%

14.9

%

273,745

229,388

19.3

%

Non-Interest Expense:

Salaries and employee benefits

85,506

82,679

78,367

82,586

83,929

3.4

%

1.9

%

329,138

324,395

1.5

%

Data processing and software

14,612

14,335

13,932

13,561

11,951

1.9

%

22.3

%

56,440

48,073

17.4

%

Net occupancy

14,366

12,957

12,494

13,982

13,161

10.9

%

9.2

%

53,799

53,013

1.5

%

Other outside services

9,637

7,889

8,178

8,490

8,334

22.2

%

15.6

%

34,194

31,432

8.8

%

Equipment

3,539

3,416

3,424

3,428

3,563

3.6

%

(0.7

)%

13,807

13,885

(0.6

)%

FDIC insurance

3,032

2,727

2,282

2,624

2,346

11.2

%

29.2

%

10,665

8,865

20.3

%

Professional fees

1,946

2,271

2,651

2,779

2,424

(14.3

)%

(19.7

)%

9,647

12,835

(24.8

)%

Amortization of tax credit investments

1,547

1,546

1,563

1,531

1,532

0.1

%

1.0

%

6,187

6,126

1.0

%

Marketing

1,477

1,448

1,348

1,002

1,098

2.0

%

34.5

%

5,275

5,127

2.9

%

Intangible amortization

146

150

178

115

132

(2.7

)%

10.6

%

589

529

11.3

%

Debt extinguishment

674

-

412

32,163

-

N/M

N/M

33,249

2,878

N/M

Other

17,537

15,178

16,002

16,123

26,268

15.5

%

(33.2

)%

64,840

72,282

(10.3

)%

Total Non-Interest Expense

154,019

144,596

140,831

178,384

154,738

6.5

%

(0.5

)%

617,830

579,440

6.6

%

Income Before Income Taxes

80,475

89,851

76,958

86,961

56,187

(10.4

)%

43.2

%

334,245

202,235

65.3

%

Income tax expense

18,588

14,268

11,994

13,898

5,362

30.3

%

N/M

58,748

24,195

142.8

%

Net Income

61,887

75,583

64,964

73,063

50,825

(18.1

)%

21.8

%

275,497

178,040

54.7

%

Preferred stock dividends

(2,562

)

(2,562

)

(2,562

)

(2,591

)

(2,135

)

-

%

20.0

%

(10,277

)

(2,135

)

N/M

Net Income Available to Common

Shareholders

$

59,325

$

73,021

$

62,402

$

70,472

$

48,690

(18.8

)%

21.8

%

$

265,220

$

175,905

50.8

%

PER SHARE:

Net income available to common shareholders:

Basic

$

0.37

$

0.45

$

0.38

$

0.43

$

0.30

(17.8

)%

23.3

%

$

1.63

$

1.08

50.9

%

Diluted

$

0.37

$

0.45

$

0.38

$

0.43

$

0.30

(17.8

)%

23.3

%

$

1.62

$

1.08

50.0

%

Cash dividends

$

0.22

$

0.14

$

0.14

$

0.14

$

0.17

57.1

%

29.4

%

$

0.64

$

0.56

14.3

%

Weighted average shares (basic)

161,210

162,506

162,785

162,441

162,242

(0.8

)%

(0.6

)%

162,233

162,372

(0.1

)%

Weighted average shares (diluted)

162,355

163,456

163,858

163,737

163,071

(0.7

)%

(0.4

)%

163,307

163,090

0.1

%

N/M - Not meaningful

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

dollars in thousands

Three Months Ended % Change from Year Ended

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

2021 2021 2021 2021 2020 2021 2020 2021 2020 % Change

Interest Income:

Interest income $ 177,724 $ 184,079 $ 176,673 $ 184,936 $ 183,645 (3.5 ) (3.2 ) $ 723,412 $ 742,878 (2.6 ) % % %

Interest 12,111 12,809 14,274 20,488 22,054 (5.4 ) (45.1 ) 59,682 113,671 (47.5 ) expense % % %

Net Interest 165,613 171,270 162,399 164,448 161,591 (3.3 ) 2.5 % 663,730 629,207 5.5 % Income %

Provision for (5,000 ) (600 ) (3,500 ) (5,500 ) 6,240 N/M N/M (14,600 ) 76,920 (119.0 ) credit losses %

Net Interest ) Income after 170,613 171,870 165,899 169,948 155,351 (0.7 % 9.8 % 678,330 552,287 22.8 % Provision

Non-Interest Income:

Commercial banking:

Merchant and 6,588 6,979 6,786 5,768 5,953 (5.6 ) 10.7 % 26,121 23,139 12.9 % card %

Cash management 5,318 5,285 5,341 4,921 4,737 0.6 % 12.3 % 20,865 18,725 11.4 %

Capital markets 2,982 2,063 1,536 2,800 3,513 44.5 % (15.1 ) 9,381 18,288 (48.7 ) % %

Other commercial 3,592 2,411 3,466 2,853 2,606 49.0 % 37.8 % 12,322 10,134 21.6 % banking

Total ) commercial 18,480 16,738 17,129 16,342 16,809 10.4 % 9.9 % 68,689 70,286 (2.3 % banking

Consumer banking:

Card 5,953 5,941 5,733 5,878 5,123 0.2 % 16.2 % 23,505 19,777 18.9 %

Overdraft 3,896 3,474 2,750 2,724 3,376 12.1 % 15.4 % 12,844 12,556 2.3 %

Other consumer 2,280 2,386 2,377 2,152 2,298 (4.4 ) (0.8 ) 9,195 9,265 (0.8 ) banking % % %

Total consumer 12,129 11,801 10,860 10,754 10,797 2.8 % 12.3 % 45,544 41,598 9.5 % banking

Wealth 18,285 18,532 17,634 17,347 15,653 (1.3 ) 16.8 % 71,798 59,058 21.6 % management %

Mortgage 7,243 9,535 2,838 13,960 9,311 (24.0 ) (22.2 ) 33,576 42,309 (20.6 ) banking % % %

Other 7,739 5,971 3,393 3,519 3,004 29.6 % N/M 20,622 13,084 57.6 %

Non-interest income before 63,876 62,577 51,854 61,922 55,574 2.1 % 14.9 % 240,229 226,335 6.1 % investment securities gains

Investment securities 5 - 36 33,475 - N/M N/M 33,516 3,053 N/M gains, net

Total Non-Interest 63,881 62,577 51,890 95,397 55,574 2.1 % 14.9 % 273,745 229,388 19.3 % Income

Non-Interest Expense:

Salaries and employee 85,506 82,679 78,367 82,586 83,929 3.4 % 1.9 % 329,138 324,395 1.5 % benefits

Data processing 14,612 14,335 13,932 13,561 11,951 1.9 % 22.3 % 56,440 48,073 17.4 % and software

Net occupancy 14,366 12,957 12,494 13,982 13,161 10.9 % 9.2 % 53,799 53,013 1.5 %

Other outside 9,637 7,889 8,178 8,490 8,334 22.2 % 15.6 % 34,194 31,432 8.8 % services

Equipment 3,539 3,416 3,424 3,428 3,563 3.6 % (0.7 ) 13,807 13,885 (0.6 ) % %

FDIC insurance 3,032 2,727 2,282 2,624 2,346 11.2 % 29.2 % 10,665 8,865 20.3 %

Professional 1,946 2,271 2,651 2,779 2,424 (14.3 ) (19.7 ) 9,647 12,835 (24.8 ) fees % % %

Amortization of tax credit 1,547 1,546 1,563 1,531 1,532 0.1 % 1.0 % 6,187 6,126 1.0 % investments

Marketing 1,477 1,448 1,348 1,002 1,098 2.0 % 34.5 % 5,275 5,127 2.9 %

Intangible 146 150 178 115 132 (2.7 ) 10.6 % 589 529 11.3 % amortization %

Debt 674 - 412 32,163 - N/M N/M 33,249 2,878 N/M extinguishment

Other 17,537 15,178 16,002 16,123 26,268 15.5 % (33.2 ) 64,840 72,282 (10.3 ) % %

Total ) Non-Interest 154,019 144,596 140,831 178,384 154,738 6.5 % (0.5 % 617,830 579,440 6.6 % Expense

Income Before 80,475 89,851 76,958 86,961 56,187 (10.4 ) 43.2 % 334,245 202,235 65.3 % Income Taxes %

Income tax 18,588 14,268 11,994 13,898 5,362 30.3 % N/M 58,748 24,195 142.8 % expense

Net Income 61,887 75,583 64,964 73,063 50,825 (18.1 ) 21.8 % 275,497 178,040 54.7 % %

Preferred stock (2,562 ) (2,562 ) (2,562 ) (2,591 ) (2,135 ) - % 20.0 % (10,277 ) (2,135 ) N/M dividends

Net Income Available to ) Common $ 59,325 $ 73,021 $ 62,402 $ 70,472 $ 48,690 (18.8 % 21.8 % $ 265,220 $ 175,905 50.8 %

Shareholders



PER SHARE:

Net income available to common shareholders:

Basic $ 0.37 $ 0.45 $ 0.38 $ 0.43 $ 0.30 (17.8 ) 23.3 % $ 1.63 $ 1.08 50.9 % %

Diluted $ 0.37 $ 0.45 $ 0.38 $ 0.43 $ 0.30 (17.8 ) 23.3 % $ 1.62 $ 1.08 50.0 % %

Cash dividends $ 0.22 $ 0.14 $ 0.14 $ 0.14 $ 0.17 57.1 % 29.4 % $ 0.64 $ 0.56 14.3 %



Weighted ) ) ) average shares 161,210 162,506 162,785 162,441 162,242 (0.8 % (0.6 % 162,233 162,372 (0.1 % (basic)

Weighted ) ) average shares 162,355 163,456 163,858 163,737 163,071 (0.7 % (0.4 % 163,307 163,090 0.1 % (diluted)

N/M - Notmeaningful

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands

Three months ended

December 31, 2021

September 30, 2021

December 31, 2020

Average

Interest

Yield/

Average

Interest

Yield/

Average

Interest

Yield/

Balance

(1)

Rate

Balance

(1)

Rate

Balance

(1)

Rate

ASSETS

Interest-earning assets:

Net loans

$

18,220,550

$

159,057

3.47

%

$

18,414,153

$

163,343

3.53

%

$

18,994,514

$

164,329

3.45

%

Taxable investment securities

2,801,934

14,006

1.75

%

2,785,828

13,757

1.80

%

2,233,730

13,559

2.43

%

Tax-exempt investment securities

1,120,263

8,418

3.00

%

1,035,685

7,906

3.05

%

886,329

7,044

3.17

%

Total Investment Securities

3,922,197

22,424

2.29

%

3,821,513

21,663

2.27

%

3,120,059

20,603

2.64

%

Loans held for sale

35,235

333

3.77

%

36,427

299

3.28

%

76,871

521

2.71

%

Other interest-earning assets

2,100,392

(905

)

0.19

%

2,301,326

1,888

0.18

%

1,668,454

1,179

0.28

%

Total Interest-Earning Assets

24,278,374

180,909

2.96

%

24,573,419

187,193

3.03

%

23,859,898

186,632

3.12

%

Noninterest-Earning assets:

Cash and due from banks

211,958

200,315

126,190

Premises and equipment

226,319

228,861

236,265

Other assets

1,677,028

1,695,767

1,799,381

Less: ACL - loans(2)

(257,143

)

(257,486

)

(272,329

)

Total Assets

$

26,136,536

$

26,440,876

$

25,749,405

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-Bearing liabilities:

Demand deposits

$

5,933,780

$

756

0.05

%

$

6,168,908

$

814

0.05

%

$

5,762,150

$

1,457

0.10

%

Savings deposits

6,413,638

992

0.06

%

6,392,537

1,054

0.07

%

5,905,137

1,866

0.13

%

Brokered deposits

256,192

220

0.34

%

270,168

229

0.34

%

340,451

451

0.53

%

Time deposits

1,756,672

3,928

0.89

%

1,852,223

4,428

0.95

%

2,306,556

8,082

1.39

%

Total Interest-Bearing Deposits

14,360,282

5,896

0.16

%

14,683,836

6,525

0.18

%

14,314,294

11,856

0.33

%

Short-term borrowings

474,022

128

0.11

%

494,811

131

0.11

%

622,623

268

0.17

%

Long-term borrowings

623,073

6,088

3.91

%

627,300

6,153

3.92

%

1,296,139

9,930

3.06

%

Total Interest-Bearing Liabilities

15,457,377

12,112

0.31

%

15,805,947

12,809

0.32

%

16,233,056

22,054

0.54

%

Noninterest-Bearing liabilities:

Demand deposits

7,516,656

7,439,644

6,477,228

Other

449,305

472,452

494,255

Total Liabilities

23,423,338

23,718,043

23,204,539

Total Deposits/Cost of Deposits

21,876,938

0.11

%

22,123,480

0.12

%

20,791,522

0.23

%

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

22,974,033

0.21

%

23,245,591

0.22

%

22,710,284

0.39

%

Shareholders' equity

2,713,198

2,722,833

2,544,866

Total Liabilities and Shareholders' Equity

$

26,136,536

$

26,440,876

$

25,749,405

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

168,797

2.77

%

174,384

2.82

%

164,578

2.75

%

Tax equivalent adjustment

(3,184

)

(3,114

)

(2,987

)

Net Interest Income

$

165,613

$

171,270

$

161,591

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

(2) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands

Three months ended

December 31, 2021 September 30, 2021 December 31, 2020

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

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

ASSETS



Interest-earning assets:

Net loans $ 18,220,550 $ 159,057 3.47 % $ 18,414,153 $ 163,343 3.53 % $ 18,994,514 $ 164,329 3.45 %

Taxable investment 2,801,934 14,006 1.75 % 2,785,828 13,757 1.80 % 2,233,730 13,559 2.43 % securities

Tax-exempt investment 1,120,263 8,418 3.00 % 1,035,685 7,906 3.05 % 886,329 7,044 3.17 % securities

Total Investment 3,922,197 22,424 2.29 % 3,821,513 21,663 2.27 % 3,120,059 20,603 2.64 % Securities

Loans held for sale 35,235 333 3.77 % 36,427 299 3.28 % 76,871 521 2.71 %

Other interest-earning 2,100,392 (905 ) 0.19 % 2,301,326 1,888 0.18 % 1,668,454 1,179 0.28 % assets

Total Interest-Earning 24,278,374 180,909 2.96 % 24,573,419 187,193 3.03 % 23,859,898 186,632 3.12 % Assets



Noninterest-Earning assets:

Cash and due from banks 211,958 200,315 126,190

Premises and equipment 226,319 228,861 236,265

Other assets 1,677,028 1,695,767 1,799,381

Less: ACL - loans^(2) (257,143 ) (257,486 ) (272,329 )

Total Assets $ 26,136,536 $ 26,440,876 $ 25,749,405



LIABILITIES AND SHAREHOLDERS' EQUITY



Interest-Bearing liabilities:

Demand deposits $ 5,933,780 $ 756 0.05 % $ 6,168,908 $ 814 0.05 % $ 5,762,150 $ 1,457 0.10 %

Savings deposits 6,413,638 992 0.06 % 6,392,537 1,054 0.07 % 5,905,137 1,866 0.13 %

Brokered deposits 256,192 220 0.34 % 270,168 229 0.34 % 340,451 451 0.53 %

Time deposits 1,756,672 3,928 0.89 % 1,852,223 4,428 0.95 % 2,306,556 8,082 1.39 %

Total Interest-Bearing 14,360,282 5,896 0.16 % 14,683,836 6,525 0.18 % 14,314,294 11,856 0.33 % Deposits



Short-term borrowings 474,022 128 0.11 % 494,811 131 0.11 % 622,623 268 0.17 %

Long-term borrowings 623,073 6,088 3.91 % 627,300 6,153 3.92 % 1,296,139 9,930 3.06 %

Total Interest-Bearing 15,457,377 12,112 0.31 % 15,805,947 12,809 0.32 % 16,233,056 22,054 0.54 % Liabilities



Noninterest-Bearing liabilities:

Demand deposits 7,516,656 7,439,644 6,477,228

Other 449,305 472,452 494,255

Total Liabilities 23,423,338 23,718,043 23,204,539

Total Deposits/Cost of 21,876,938 0.11 % 22,123,480 0.12 % 20,791,522 0.23 % Deposits

Total interest-bearing liabilities and non-interest bearing 22,974,033 0.21 % 23,245,591 0.22 % 22,710,284 0.39 % deposits ("Cost of Funds")



Shareholders' equity 2,713,198 2,722,833 2,544,866

Total Liabilities and $ 26,136,536 $ 26,440,876 $ 25,749,405 Shareholders' Equity



Net interest income/net interest margin (fully 168,797 2.77 % 174,384 2.82 % 164,578 2.75 % taxable equivalent)

Tax equivalent (3,184 ) (3,114 ) (2,987 ) adjustment

Net Interest Income $ 165,613 $ 171,270 $ 161,591



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

(2) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION

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

dollars in thousands

Three months ended

% Change from

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

Dec 31

2021

2021

2021

2021

2020

2021

2020

Loans, by type:

Real estate - commercial mortgage

$

7,157,906

$

7,134,177

$

7,177,622

$

7,128,997

$

7,101,363

0.3

%

0.8

%

Commercial and industrial

3,898,559

3,878,767

3,920,771

4,033,367

4,024,879

0.5

%

(3.1

)%

Real estate - residential mortgage

3,773,156

3,642,822

3,396,690

3,183,585

3,087,529

3.6

%

22.2

%

Real estate - home equity

1,122,042

1,128,076

1,139,558

1,175,218

1,212,113

(0.5

)%

(7.4

)%

Real estate - construction

1,117,592

1,085,846

1,054,469

1,054,718

1,009,284

2.9

%

10.7

%

Consumer

462,346

452,844

451,486

459,038

468,678

2.1

%

(1.4

)%

Equipment lease financing

238,349

247,776

256,248

266,405

279,059

(3.8

)%

(14.6

)%

Other(1)

15,558

(6,773

)

(14,677

)

(9,455

)

(18,817

)

N/M

N/M

Net loans before PPP

17,785,508

17,563,535

17,382,167

17,291,873

17,164,088

1.3

%

3.6

%

PPP

435,042

850,618

1,524,389

1,688,713

1,830,426

(48.9

) %

(76.2

)%

Total Net Loans

$

18,220,550

$

18,414,153

$

18,906,556

$

18,980,586

$

18,994,514

(1.1

) %

(4.1

)%

Deposits, by type:

Noninterest-bearing demand

$

7,516,656

$

7,439,644

$

7,203,696

$

6,672,832

$

6,477,228

1.0

%

16.0

%

Interest-bearing demand

5,933,780

6,168,908

5,979,855

5,832,174

5,762,150

(3.8

)%

3.0

%

Savings

6,413,638

6,392,537

6,280,629

6,137,084

5,905,137

0.3

%

8.6

%

Total demand and savings

19,864,074

20,001,089

19,464,180

18,642,090

18,144,515

(0.7

)%

9.5

%

Brokered

256,192

270,168

297,815

324,364

340,451

(5.2

)%

(24.7

)%

Time

1,756,672

1,852,223

2,003,606

2,150,570

2,306,556

(5.2

)%

(23.8

)%

Total Deposits

$

21,876,938

$

22,123,480

$

21,765,601

$

21,117,024

$

20,791,522

(1.1

)%

5.2

%

Short-term borrowings, by type:

Customer funding

$

474,022

$

494,811

$

514,025

$

570,775

$

622,623

(4.2

)%

(23.9

)%

Total Short-Term borrowings

$

474,022

$

494,811

$

514,025

$

570,775

$

622,623

(4.2

)%

(23.9

)%

(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

2021 2021 2021 2021 2020 2021 2020

Loans, by type:

Real estate - commercial $ 7,157,906 $ 7,134,177 $ 7,177,622 $ 7,128,997 $ 7,101,363 0.3 % 0.8 % mortgage

Commercial and industrial 3,898,559 3,878,767 3,920,771 4,033,367 4,024,879 0.5 % (3.1 ) %

Real estate - residential 3,773,156 3,642,822 3,396,690 3,183,585 3,087,529 3.6 % 22.2 % mortgage

Real estate - home equity 1,122,042 1,128,076 1,139,558 1,175,218 1,212,113 (0.5 )% (7.4 ) %

Real estate - construction 1,117,592 1,085,846 1,054,469 1,054,718 1,009,284 2.9 % 10.7 %

Consumer 462,346 452,844 451,486 459,038 468,678 2.1 % (1.4 ) %

Equipment lease financing 238,349 247,776 256,248 266,405 279,059 (3.8 )% (14.6 ) %

Other^(1) 15,558 (6,773 ) (14,677 ) (9,455 ) (18,817 ) N/M N/M

Net loans before PPP 17,785,508 17,563,535 17,382,167 17,291,873 17,164,088 1.3 % 3.6 %

PPP 435,042 850,618 1,524,389 1,688,713 1,830,426 (48.9 ) (76.2 ) % %

Total Net Loans $ 18,220,550 $ 18,414,153 $ 18,906,556 $ 18,980,586 $ 18,994,514 (1.1 ) (4.1 ) % %



Deposits, by type:

Noninterest-bearing demand $ 7,516,656 $ 7,439,644 $ 7,203,696 $ 6,672,832 $ 6,477,228 1.0 % 16.0 %

Interest-bearing demand 5,933,780 6,168,908 5,979,855 5,832,174 5,762,150 (3.8 )% 3.0 %

Savings 6,413,638 6,392,537 6,280,629 6,137,084 5,905,137 0.3 % 8.6 %

Total demand and savings 19,864,074 20,001,089 19,464,180 18,642,090 18,144,515 (0.7 )% 9.5 %

Brokered 256,192 270,168 297,815 324,364 340,451 (5.2 )% (24.7 ) %

Time 1,756,672 1,852,223 2,003,606 2,150,570 2,306,556 (5.2 )% (23.8 ) %

Total Deposits $ 21,876,938 $ 22,123,480 $ 21,765,601 $ 21,117,024 $ 20,791,522 (1.1 )% 5.2 %



Short-term borrowings, by type:

Customer funding $ 474,022 $ 494,811 $ 514,025 $ 570,775 $ 622,623 (4.2 )% (23.9 ) %

Total Short-Term $ 474,022 $ 494,811 $ 514,025 $ 570,775 $ 622,623 (4.2 )% (23.9 ) borrowings %



^(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

2021

2020

Average

Interest

Yield/

Average

Interest

Yield/

Balance

(1)

Rate

Balance

(1)

Rate

ASSETS

Interest-earning assets:

Net loans

$

18,627,787

$

644,387

3.46

%

$

18,270,390

$

662,785

3.63

%

Taxable investment securities

2,665,416

55,351

1.88

%

2,182,410

58,173

2.66

%

Tax-exempt investment securities

1,007,834

30,974

3.07

%

825,057

26,641

3.22

%

Total Investment Securities

3,673,250

86,325

2.35

%

3,007,467

84,814

2.82

%

Loans held for sale

39,211

1,302

3.32

%

60,015

2,077

3.46

%

Other interest-earning assets

2,014,954

3,694

0.18

%

1,120,727

5,504

0.49

%

Total Interest-Earning Assets

24,355,202

735,708

3.02

%

22,458,599

755,180

3.36

%

Noninterest-Earning assets:

Cash and due from banks

165,942

139,146

Premises and equipment

228,708

238,864

Other assets

1,686,053

1,746,956

Less: ACL - loans(2)

(265,572

)

(249,848

)

Total Assets

$

26,170,333

$

24,333,717

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-Bearing liabilities:

Demand deposits

$

5,979,479

$

3,662

0.06

%

$

5,278,941

$

11,390

0.22

%

Savings deposits

6,306,967

4,936

0.08

%

5,550,234

14,654

0.26

%

Brokered deposits

286,901

1,096

0.38

%

310,763

2,387

0.77

%

Time deposits

1,939,446

20,311

1.05

%

2,546,305

41,615

1.63

%

Total Interest-Bearing Deposits

14,512,793

30,005

0.21

%

13,686,243

70,046

0.51

%

Short-term borrowings

513,092

583

0.11

%

810,583

5,227

0.64

%

Long-term borrowings

784,871

29,094

3.71

%

1,254,300

38,398

3.06

%

Total Interest-Bearing Liabilities

15,810,756

59,682

0.38

%

15,751,126

113,671

0.72

%

Noninterest-Bearing liabilities:

Demand deposits

7,211,153

5,714,803

Other

462,478

476,139

Total Liabilities

23,484,387

21,942,068

Total Deposits/Cost of Deposits

21,723,946

0.14

%

19,401,046

0.36

%

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

23,021,909

0.26

%

21,465,929

0.53

%

Shareholders' equity

2,685,946

2,391,649

Total Liabilities and Shareholders' Equity

$

26,170,333

$

24,333,717

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

676,026

2.78

%

641,509

2.86

%

Tax equivalent adjustment

(12,296

)

(12,302

)

Net Interest Income

$

663,730

$

629,207

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

(2) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands

Year ended December 31

2021 2020

Average Interest Yield/ Average Interest Yield/

Balance (1) Rate Balance (1) Rate

ASSETS



Interest-earning assets:

Net loans $ 18,627,787 $ 644,387 3.46 % $ 18,270,390 $ 662,785 3.63 %

Taxable investment 2,665,416 55,351 1.88 % 2,182,410 58,173 2.66 % securities

Tax-exempt investment 1,007,834 30,974 3.07 % 825,057 26,641 3.22 % securities

Total Investment 3,673,250 86,325 2.35 % 3,007,467 84,814 2.82 % Securities

Loans held for 39,211 1,302 3.32 % 60,015 2,077 3.46 % sale

Other interest-earning 2,014,954 3,694 0.18 % 1,120,727 5,504 0.49 % assets

Total Interest-Earning 24,355,202 735,708 3.02 % 22,458,599 755,180 3.36 % Assets



Noninterest-Earning assets:

Cash and due 165,942 139,146 from banks

Premises and 228,708 238,864 equipment

Other assets 1,686,053 1,746,956

Less: ACL - (265,572 ) (249,848 ) loans^(2)

Total Assets $ 26,170,333 $ 24,333,717



LIABILITIES AND SHAREHOLDERS' EQUITY



Interest-Bearing liabilities:

Demand deposits $ 5,979,479 $ 3,662 0.06 % $ 5,278,941 $ 11,390 0.22 %

Savings deposits 6,306,967 4,936 0.08 % 5,550,234 14,654 0.26 %

Brokered 286,901 1,096 0.38 % 310,763 2,387 0.77 % deposits

Time deposits 1,939,446 20,311 1.05 % 2,546,305 41,615 1.63 %

Total Interest-Bearing 14,512,793 30,005 0.21 % 13,686,243 70,046 0.51 % Deposits



Short-term 513,092 583 0.11 % 810,583 5,227 0.64 % borrowings

Long-term 784,871 29,094 3.71 % 1,254,300 38,398 3.06 % borrowings

Total Interest-Bearing 15,810,756 59,682 0.38 % 15,751,126 113,671 0.72 % Liabilities



Noninterest-Bearing liabilities:

Demand deposits 7,211,153 5,714,803

Other 462,478 476,139

Total 23,484,387 21,942,068 Liabilities

Total Deposits/ 21,723,946 0.14 % 19,401,046 0.36 % Cost of Deposits

Total interest-bearing liabilities and non-interest 23,021,909 0.26 % 21,465,929 0.53 % bearing deposits ("Cost of Funds")



Shareholders' 2,685,946 2,391,649 equity

Total Liabilities and $ 26,170,333 $ 24,333,717 Shareholders' Equity



Net interest income/net interest margin 676,026 2.78 % 641,509 2.86 % (fully taxable equivalent)

Tax equivalent (12,296 ) (12,302 ) adjustment

Net Interest $ 663,730 $ 629,207 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 "Net Loans" and does not include the ACL related to OBS credit exposures.

FULTON FINANCIAL CORPORATION

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

dollars in thousands

Year ended December 31

2021

2020

% Change

Loans, by type:

Real estate - commercial mortgage

$

7,149,712

$

6,928,269

3.2

%

Commercial and industrial

3,932,351

4,237,252

(7.2

)%

Real estate - residential mortgage

3,501,072

2,876,538

21.7

%

Real estate - home equity

1,141,042

1,255,094

(9.1

)%

Real estate - construction

1,078,350

965,534

11.7

%

Consumer

456,427

466,419

(2.1

)%

Equipment lease financing

252,104

281,859

(10.6

)%

Other(1)

(3,776

)

(4,640

)

18.6

%

Net loans before PPP

17,507,282

17,006,325

2.9

%

PPP

1,120,505

1,264,065

(11.4

)%

Total Net Loans

$

18,627,787

$

18,270,390

2.0

%

Deposits, by type:

Noninterest-bearing demand

$

7,211,153

$

5,714,803

26.2

%

Interest-bearing demand

5,979,479

5,278,941

13.3

%

Savings

6,306,967

5,550,234

13.6

%

Total demand and savings

19,497,599

16,543,978

17.9

%

Brokered

286,901

310,763

(7.7

)%

Time

1,939,446

2,546,305

(23.8

)%

Total Deposits

$

21,723,946

$

19,401,046

12.0

%

Short-term borrowings, by type:

Customer funding

513,092

553,033

(7.2

)%

Federal funds purchased

-

64,918

N/M

Short-term FHLB advances and other borrowings

-

192,632

N/M

Total Short-Term Borrowings

$

513,092

$

810,583

(36.7

)%

N/M - Not meaningful

(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

2021 2020 % Change

Loans, by type:

Real estate - commercial mortgage $ 7,149,712 $ 6,928,269 3.2 %

Commercial and industrial 3,932,351 4,237,252 (7.2 ) %

Real estate - residential mortgage 3,501,072 2,876,538 21.7 %

Real estate - home equity 1,141,042 1,255,094 (9.1 ) %

Real estate - construction 1,078,350 965,534 11.7 %

Consumer 456,427 466,419 (2.1 ) %

Equipment lease financing 252,104 281,859 (10.6 ) %

Other^(1) (3,776 ) (4,640 ) 18.6 %

Net loans before PPP 17,507,282 17,006,325 2.9 %

PPP 1,120,505 1,264,065 (11.4 ) %

Total Net Loans $ 18,627,787 $ 18,270,390 2.0 %



Deposits, by type:

Noninterest-bearing demand $ 7,211,153 $ 5,714,803 26.2 %

Interest-bearing demand 5,979,479 5,278,941 13.3 %

Savings 6,306,967 5,550,234 13.6 %

Total demand and savings 19,497,599 16,543,978 17.9 %

Brokered 286,901 310,763 (7.7 ) %

Time 1,939,446 2,546,305 (23.8 ) %

Total Deposits $ 21,723,946 $ 19,401,046 12.0 %



Short-term borrowings, by type:

Customer funding 513,092 553,033 (7.2 ) %

Federal funds purchased - 64,918 N/M

Short-term FHLB advances and other - 192,632 N/M borrowings

Total Short-Term Borrowings $ 513,092 $ 810,583 (36.7 ) %



N/M - Not meaningful

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

FULTON FINANCIAL CORPORATION

ASSET QUALITY INFORMATION (UNAUDITED)

dollars in thousands

Three months ended

Year Ended December

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

Dec 31

Dec 31

2021

2021

2021

2021

2020

2021

2020

Allowance for credit losses related to net loans:

Balance at beginning of period

$

256,727

$

255,032

$

265,986

$

277,567

$

266,825

$

277,567

$

163,621

Impact of adopting CECL

-

-

-

-

-

-

45,723

Loans charged off:

Commercial and industrial

(9,417

)

(647

)

(954

)

(4,319

)

(1,567

)

(15,337

)

(18,915

)

Real estate - commercial mortgage

(369

)

(14

)

(6,506

)

(1,837

)

(300

)

(8,726

)

(4,225

)

Consumer and home equity

(828

)

(504

)

(1,130

)

(847

)

(668

)

(3,309

)

(4,593

)

Real estate - residential mortgage

-

(602

)

(496

)

(192

)

-

(1,290

)

(620

)

Real estate - construction

-

-

-

(39

)

-

(39

)

(17

)

Equipment lease financing and other

(380

)

(467

)

(436

)

(968

)

(483

)

(2,251

)

(2,187

)

Total loans charged off

(10,994

)

(2,234

)

(9,522

)

(8,202

)

(3,018

)

(30,952

)

(30,557

)

Recoveries of loans previously charged off:

Commercial and industrial

5,795

2,330

693

769

4,581

9,587

11,396

Real estate - commercial mortgage

1,007

564

729

174

588

2,474

1,027

Consumer and home equity

767

504

634

440

594

2,345

2,380

Real estate - residential mortgage

89

86

105

95

199

375

491

Real estate - construction

77

697

254

384

179

1,412

5,122

Equipment lease financing and other

283

358

153

159

219

953

604

Recoveries of loans previously charged off

8,018

4,539

2,568

2,021

6,360

17,146

21,020

Net loans (charged off) recovered

(2,976

)

2,305

(6,954

)

(6,181

)

3,342

(13,806

)

(9,537

)

Provision for credit losses

(4,750

)

(610

)

(4,000

)

(5,400

)

7,400

(14,760

)

77,760

Balance at end of period

$

249,001

$

256,727

$

255,032

$

265,986

$

277,567

$

249,001

$

277,567

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

0.07

%

(0.05

) %

0.15

%

0.13

%

(0.07

) %

0.07

%

0.05

%

Allowance credit losses related to OBS Credit Exposures(1)

Balance at beginning of period

$

14,783

$

14,773

$

14,273

$

14,373

$

15,533

Provision for credit losses

(250

)

10

500

(100

)

(1,160

)

Balance at end of period

$

14,533

$

14,783

$

14,773

$

14,273

$

14,373

NON-PERFORMING ASSETS:

Non-accrual loans

$

143,666

$

138,833

$

147,864

$

143,889

$

137,198

Loans 90 days past due and accruing

8,453

11,389

5,865

8,559

9,929

Total non-performing loans

152,119

150,222

153,729

152,448

147,127

Other real estate owned

1,817

1,896

2,779

3,664

4,178

Total non-performing assets

$

153,936

$

152,118

$

156,508

$

156,112

$

151,305

NON-PERFORMING LOANS, BY TYPE:

Commercial and industrial

$

30,629

$

32,697

$

33,522

$

31,871

$

32,610

Real estate - commercial mortgage

54,044

52,100

53,693

54,164

52,647

Real estate - residential mortgage

39,399

37,077

38,185

36,152

30,793

Consumer and home equity

11,505

11,509

11,408

13,072

13,090

Real estate - construction

901

965

1,016

1,440

1,550

Equipment lease financing and other

15,641

15,874

15,905

15,749

16,437

Total non-performing loans

$

152,119

$

150,222

$

153,729

$

152,448

$

147,127

(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 December

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

2021 2021 2021 2021 2020 2021 2020

Allowance for credit losses related to net loans:

Balance atbeginning of $ 256,727 $ 255,032 $ 265,986 $ 277,567 $ 266,825 $ 277,567 $ 163,621 period



Impact of adopting - - - - - - 45,723 CECL



Loans charged off:

Commercial and (9,417 ) (647 ) (954 ) (4,319 ) (1,567 ) (15,337 ) (18,915 ) industrial

Real estate - commercial (369 ) (14 ) (6,506 ) (1,837 ) (300 ) (8,726 ) (4,225 ) mortgage

Consumer and (828 ) (504 ) (1,130 ) (847 ) (668 ) (3,309 ) (4,593 ) home equity

Real estate - residential - (602 ) (496 ) (192 ) - (1,290 ) (620 ) mortgage

Real estate - - - - (39 ) - (39 ) (17 ) construction

Equipment lease financing and (380 ) (467 ) (436 ) (968 ) (483 ) (2,251 ) (2,187 ) other

Total loans (10,994 ) (2,234 ) (9,522 ) (8,202 ) (3,018 ) (30,952 ) (30,557 ) charged off

Recoveries ofloans previously charged off:

Commercial and 5,795 2,330 693 769 4,581 9,587 11,396 industrial

Real estate - commercial 1,007 564 729 174 588 2,474 1,027 mortgage

Consumer and 767 504 634 440 594 2,345 2,380 home equity

Real estate - residential 89 86 105 95 199 375 491 mortgage

Real estate - 77 697 254 384 179 1,412 5,122 construction

Equipment lease financing and 283 358 153 159 219 953 604 other

Recoveries of loans previously 8,018 4,539 2,568 2,021 6,360 17,146 21,020 charged off

Net loans (charged (2,976 ) 2,305 (6,954 ) (6,181 ) 3,342 (13,806 ) (9,537 )off) recovered

Provision for (4,750 ) (610 ) (4,000 ) (5,400 ) 7,400 (14,760 ) 77,760 credit losses

Balance at end of $ 249,001 $ 256,727 $ 255,032 $ 265,986 $ 277,567 $ 249,001 $ 277,567 period

Net charge-offs(recoveries) to 0.07 % (0.05 ) 0.15 % 0.13 % (0.07 ) 0.07 % 0.05 %average loans % %(annualized)



Allowance credit losses related to OBS Credit Exposures^(1)

Balance at beginning of $ 14,783 $ 14,773 $ 14,273 $ 14,373 $ 15,533 period

Provision for (250 ) 10 500 (100 ) (1,160 ) credit losses

Balance at end $ 14,533 $ 14,783 $ 14,773 $ 14,273 $ 14,373 of period



NON-PERFORMING ASSETS:

Non-accrual $ 143,666 $ 138,833 $ 147,864 $ 143,889 $ 137,198 loans

Loans 90 days past due and 8,453 11,389 5,865 8,559 9,929 accruing

Total non-performing 152,119 150,222 153,729 152,448 147,127 loans

Other real 1,817 1,896 2,779 3,664 4,178 estate owned

Total non-performing $ 153,936 $ 152,118 $ 156,508 $ 156,112 $ 151,305 assets



NON-PERFORMING LOANS, BY TYPE:

Commercial and $ 30,629 $ 32,697 $ 33,522 $ 31,871 $ 32,610 industrial

Real estate - commercial 54,044 52,100 53,693 54,164 52,647 mortgage

Real estate - residential 39,399 37,077 38,185 36,152 30,793 mortgage

Consumer and 11,505 11,509 11,408 13,072 13,090 home equity

Real estate - 901 965 1,016 1,440 1,550 construction

Equipment lease financing and 15,641 15,874 15,905 15,749 16,437 other

Total non-performing $ 152,119 $ 150,222 $ 153,729 $ 152,448 $ 147,127 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

2021

2021

2021

2021

2020

Common shareholders' equity (tangible), per share

Shareholders' equity

$

2,712,680

$

2,699,818

$

2,692,958

$

2,629,655

$

2,616,828

Less: Preferred stock

(192,878

)

(192,878

)

(192,878

)

(192,878

)

(192,878

)

Less: Goodwill and intangible assets

(538,053

)

(536,697

)

(536,847

)

(536,544

)

(536,659

)

Tangible common shareholders' equity (numerator)

$

1,981,749

$

1,970,243

$

1,963,233

$

1,900,233

$

1,887,291

Shares outstanding, end of period (denominator)

160,490

161,429

162,988

162,518

162,350

Common shareholders' equity (tangible), per share

$

12.35

$

12.21

$

12.05

$

11.69

$

11.62

Return on average common shareholders' equity (tangible)

Net income available to common shareholders

$

59,325

$

73,021

$

62,402

$

70,472

$

48,690

Plus: Intangible amortization, net of tax

114

118

140

90

104

Net income available to common shareholder's (numerator)

$

59,439

$

73,139

$

62,542

$

70,562

$

48,794

Average shareholders' equity

$

2,713,198

$

2,722,833

$

2,669,413

$

2,637,098

$

2,544,866

Less: Average preferred stock

(192,878

)

(192,878

)

(192,878

)

(192,878

)

(127,639

)

Less: Average goodwill and intangible assets

(536,638

)

(536,772

)

(536,470

)

(536,601

)

(535,474

)

Average tangible common shareholders' equity (denominator)

$

1,983,682

$

1,993,183

$

1,940,065

$

1,907,619

$

1,881,753

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

11.89

%

14.56

%

12.93

%

15.00

%

10.32

%

Tangible common equity to tangible assets (TCE Ratio)

Shareholders' equity

$

2,712,680

$

2,699,818

$

2,692,958

$

2,629,655

$

2,616,828

Less: Preferred stock

(192,878

)

(192,878

)

(192,878

)

(192,878

)

(192,878

)

Less: Goodwill and intangible assets

(538,053

)

(536,697

)

(536,847

)

(536,544

)

(536,659

)

Tangible common shareholders' equity (numerator)

$

1,981,749

$

1,970,243

$

1,963,233

$

1,900,233

$

1,887,291

Total assets

$

25,796,398

$

26,390,832

$

26,079,774

$

25,892,990

$

25,906,733

Less: Goodwill and intangible assets

(538,053

)

(536,697

)

(536,847

)

(536,544

)

(536,659

)

Total tangible assets (denominator)

$

25,258,345

$

25,854,135

$

25,542,927

$

25,356,446

$

25,370,074

Tangible common equity to tangible assets

7.85

%

7.62

%

7.69

%

7.49

%

7.44

%

Efficiency ratio

Non-interest expense

$

154,019

$

144,596

$

140,831

$

178,384

$

154,738

Less: Amortization of tax credit investments

(1,547

)

(1,546

)

(1,563

)

(1,531

)

(1,532

)

Less: Intangible amortization

(146

)

(150

)

(178

)

(115

)

(132

)

Less: 2020 cost savings initiatives

-

-

-

-

(15,400

)

Less: Debt extinguishment costs

(674

)

-

(412

)

(32,163

)

-

Non-interest expense (numerator)

$

151,652

$

142,900

$

138,678

$

144,575

$

137,674

Net interest income

$

165,613

$

171,270

$

162,399

$

164,449

$

161,591

Tax equivalent adjustment

3,184

3,114

3,018

2,979

2,987

Plus: Total non-interest income

63,881

62,577

51,890

95,397

55,574

Less: Investment securities gains, net

(5

)

-

(36

)

(33,475

)

-

Total revenue (denominator)

$

232,673

$

236,961

$

217,271

$

229,350

$

220,152

Efficiency ratio

65.2

%

60.3

%

63.8

%

63.0

%

62.5

%

Three months ended

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

2021

2021

2021

2021

2020

Non-interest expenses to total average assets (annualized)

Non-interest expense

$

154,019

$

144,596

$

140,831

$

178,384

$

154,738

Less: Amortization of tax credit investments

(1,547

)

(1,546

)

(1,563

)

(1,531

)

(1,532

)

Less: Intangible amortization

(146

)

(150

)

(178

)

(115

)

(132

)

Less: 2020 cost savings initiatives

-

-

-

-

(15,400

)

Less: Debt extinguishment costs

(674

)

-

(412

)

(32,163

)

-

Non-interest expense (numerator)

$

151,652

$

142,900

$

138,678

$

144,575

$

137,674

Total average assets (denominator)

$

26,136,536

$

26,440,876

$

26,017,542

$

26,082,816

$

25,749,405

Non-interest expenses to total average assets, (annualized)

2.30

%

2.14

%

2.14

%

2.25

%

2.13

%

Asset Quality, excluding PPP

Net loans recovered (charged-off) (numerator)

$

(2,976

)

$

2,305

$

(6,954

)

$

(6,181

)

$

3,342

Average net loans

$

18,220,550

$

18,414,153

$

18,906,556

$

18,980,586

$

18,994,514

Less: Average PPP loans

(435,042

)

(850,618

)

(1,524,389

)

(1,688,713

)

(1,830,426

)

Total adjusted average loans (denominator)

$

17,785,508

$

17,563,535

$

17,382,167

$

17,291,873

$

17,164,088

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

0.07

%

(0.05

)%

0.16

%

0.14

%

(0.08

)%

Non-performing loans (numerator)

$

152,119

$

150,222

$

153,729

$

152,448

$

147,127

Net loans

$

18,325,350

$

18,269,407

$

18,586,756

$

18,990,986

$

18,900,820

Less: PPP loans

(301,253

)

(590,447

)

(1,114,401

)

(1,688,394

)

(1,581,712

)

Total adjusted loans (denominator)

$

18,024,097

$

17,678,960

$

17,472,355

$

17,302,592

$

17,319,108

Non-performing loans to total adjusted loans

0.84

%

0.85

%

0.88

%

0.88

%

0.85

%

ACL - loans (numerator)

$

249,001

$

256,727

$

255,032

$

265,986

$

277,567

Net loans

$

18,325,350

$

18,269,407

$

18,586,756

$

18,990,986

$

18,900,820

Less: PPP loans

(301,253

)

(590,447

)

(1,114,401

)

(1,688,394

)

(1,581,712

)

Total adjusted loans (denominator)

$

18,024,097

$

17,678,960

$

17,472,355

$

17,302,592

$

17,319,108

ACL - loans to total adjusted loans

1.38

%

1.45

%

1.46

%

1.54

%

1.60

%

Pre-provision net revenue

Net interest income

$

165,613

$

171,270

$

162,399

$

164,448

$

161,591

Non-interest income

63,881

62,577

51,890

95,397

55,574

Less: Investment securities gains, net

(5

)

-

(36

)

(33,475

)

-

Total revenue

$

229,489

$

233,847

$

214,253

$

226,370

$

217,165

Non-interest expense

$

154,019

$

144,596

$

140,831

$

178,384

$

154,738

Less: Debt extinguishment

(674

)

-

(412

)

(32,163

)

-

Less: Amortization on tax credit investments

(1,547

)

(1,546

)

(1,563

)

(1,531

)

(1,532

)

Less: Intangible amortization

(146

)

(150

)

(178

)

(115

)

(132

)

Total non-interest expense

$

151,652

$

142,900

$

138,678

$

144,575

$

153,074

Pre-provision net revenue

$

77,837

$

90,947

$

75,575

$

81,795

$

64,091

Note: numbers may not sum due to rounding.

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CONTACT: Media Contact: Laura Wakeley (717) 291-2616 Investor Contact: Matt Jozwiak (717) 327-2657