Fulton Financial Announces Fourth Quarter and 2021 Results

Rhea-AI Summary

Fulton Financial Corporation (NASDAQ:FULT) reported a net income of $59.3 million for Q4 2021, translating to $0.37 per diluted share, and $265.2 million for the full year, or $1.62 per diluted share. Despite a challenging environment, the company achieved record earnings, primarily driven by a successful relationship banking strategy and lower credit costs. Net interest income decreased to $165.6 million for Q4, influenced by reduced Paycheck Protection Program loan fees. Non-interest income rose by 2.1% to $63.9 million, while non-interest expenses increased by 6.5% to $154.0 million in Q4.

Positive

• Record earnings per share of $1.62 for 2021.
• Net interest income for 2021 increased by $34.5 million compared to 2020.
• Non-interest income grew by 6.1% year-over-year, driven by wealth management and equity investments.

Negative

• Net interest margin decreased to 2.78% in 2021 from 2.86% in 2020.
• Fourth quarter net interest income fell by $5.7 million compared to the previous quarter.
• Non-performing assets slightly increased to 0.60% of total assets by year-end 2021.

LANCASTER, Pa.--(BUSINESS WIRE)-- 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.

"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' equity		2,712,680				2,699,818				2,692,958				2,629,655				2,616,828
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' equity		2,713,198				2,722,833				2,669,413				2,637,098				2,544,866
Income Statement
Net interest income	$	165,613			$	171,270			$	162,399			$	164,448			$	161,591
Provision for credit losses		(5,000	)			(600	)			(3,500	)			(5,500	)			6,240
Non-interest income		63,881				62,577				51,890				95,397				55,574
Non-interest expense		154,019				144,596				140,831				178,384				154,738
Income before taxes		80,475				89,851				76,958				86,961				56,187
Net income available to common shareholders		59,325				73,021				62,402				70,472				48,690
Pre-provision net revenue(1)		77,837				90,947				75,575				81,795				64,092
Per Share
Net income available to common shareholders (basic)	$	0.37			$	0.45			$	0.38			$	0.43			$	0.30
Net income available to common shareholders (diluted)	$	0.37			$	0.45			$	0.38			$	0.43			$	0.30
Cash dividends	$	0.22			$	0.14			$	0.14			$	0.14			$	0.17
Common shareholders' equity	$	15.70			$	15.53			$	15.34			$	14.99			$	14.93
Common shareholders' equity (tangible)(1)	$	12.35			$	12.21			$	12.05			$	11.69			$	11.62
Weighted average shares (basic)		161,210				162,506				162,785				162,441				162,242
Weighted average shares (diluted)		162,355				163,456				163,858				163,737				163,071
(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 average loans (annualized)		0.07	%			(0.05	)%			0.15	%			0.13	%			(0.07	)%
Non-performing loans to total loans		0.83	%			0.82	%			0.83	%			0.80	%			0.78	%
Non-performing assets to total assets		0.60	%			0.58	%			0.60	%			0.60	%			0.58	%
ACL - loans(2) to total loans		1.36	%			1.41	%			1.37	%			1.40	%			1.47	%
ACL - loans(2) to non-performing loans		164	%			171	%			166	%			174	%			189	%
Asset Quality, excluding PPP(1)(3)
Net charge-offs (recoveries) to adjusted average loans (annualized)		0.07	%			(0.05	)%			0.16	%			0.14	%			(0.08	)%
Non-performing loans to total adjusted loans		0.84	%			0.85	%			0.88	%			0.88	%			0.85	%
ACL - loans(2) to total adjusted loans		1.38	%			1.45	%			1.46	%			1.54	%			1.60	%
Profitability
Return on average assets		0.94	%			1.13	%			1.00	%			1.14	%			0.79	%
Return on average common shareholders' equity		9.34	%			11.45	%			10.01	%			11.73	%			8.21	%
Return on average common shareholders' equity (tangible)(1)		11.89	%			14.56	%			12.93	%			15.00	%			10.32	%
Net interest margin		2.77	%			2.82	%			2.73	%			2.79	%			2.75	%
Efficiency ratio(1)		65.2	%			60.3	%			63.8	%			63.0	%			62.5	%
Non-interest expenses to total average assets(1)		2.30	%			2.14	%			2.14	%			2.25	%			2.13	%
Capital Ratios
Tangible common equity ratio(1)		7.8	%			7.6	%			7.7	%			7.5	%			7.4	%
Tier 1 leverage ratio(4)		8.5	%			8.4	%			8.5	%			8.3	%			8.2	%
Common equity Tier 1 capital ratio(4)		10.0	%			10.1	%			10.0	%			9.8	%			9.5	%
Tier 1 risk-based capital ratio(4)		11.0	%			11.1	%			11.0	%			10.8	%			10.5	%
Total risk-based capital ratio(4)		14.3	%			14.4	%			14.5	%			14.2	%			14.4	%
(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 to off-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-GAAP Measures" at the end of this document.
(4) Regulatory capital ratios as of December 31, 2021 are preliminary and prior periods 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 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 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
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
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
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
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

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:

							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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220118006016/en/

Media Contact: Laura Wakeley (717) 291-2616

Investor Contact: Matt Jozwiak (717) 327-2657

Source: Fulton Financial Corporation

FAQ

What were FULT's earnings for Q4 2021?

Fulton Financial Corporation reported net income of $59.3 million, or $0.37 per diluted share, for Q4 2021.

How did FULT perform for the full year of 2021?

For the year ended December 31, 2021, Fulton reported net income of $265.2 million, or $1.62 per diluted share.

What impacted FULT's net interest income in Q4 2021?

Net interest income in Q4 2021 decreased to $165.6 million, primarily due to lower fees from Paycheck Protection Program loans.

How did non-interest income change for FULT in Q4 2021?

Non-interest income for Q4 2021 increased by 2.1% to $63.9 million compared to Q3 2021.

What were the non-performing assets for FULT as of December 31, 2021?

Non-performing assets were $153.9 million, or 0.60% of total assets, at the end of Q4 2021.