Fulton Financial Announces Second Quarter 2021 Results

Rhea-AI Summary

Fulton Financial Corporation (NASDAQ:FULT) reported net income of $62 million, or $0.38 per diluted share, for Q2 2021. Key highlights include a decrease in net interest income to $162 million, attributed to lower Paycheck Protection Program (PPP) fee income. Total average net loans fell by $74 million to $18.9 billion, impacted by $639 million of PPP loans forgiven. Non-interest income decreased by $10 million to $52 million due to lower mortgage banking income. Non-interest expenses decreased by $38 million to $141 million, reflecting costs from prior quarter restructuring. The effective tax rate was stable at 16%.

Positive

• Net income of $62 million reflects solid performance and stable business trends.
• Non-interest expenses decreased by $38 million, indicating improved cost management.

Negative

• Net interest income fell by $2 million, primarily due to lower PPP fee income.
• Total average net loans decreased by $74 million, driven by forgiven PPP loans.
• Non-interest income declined by $10 million, primarily from mortgage banking.

Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $62 million, or $0.38 per diluted share, for the second quarter of 2021.

"In the second quarter, Fulton Financial again achieved solid performance,” said E. Philip Wenger, Chairman and CEO of Fulton Financial Corporation. "Our results reflect stable to improving core business trends, a disciplined operating environment, growth in wealth management revenues and stable asset quality.”

Net Interest Income and Balance Sheet

Net interest income for the second quarter of 2021 was $162 million, $2 million lower than the first quarter of 2021. Net interest margin for the second quarter of 2021 decreased 6 basis points, to 2.73%, from 2.79% in the first quarter of 2021. The decreases in net interest income and net interest margin in comparison to the first quarter of 2021 were primarily due to lower fee income recognized related to the Paycheck Protection Program ("PPP") loans, which were $12 million in the second quarter of 2021 compared to $19 million for the first quarter of 2021, as well as lower yields on loans.

Total average interest-earning assets for the second quarter of 2021 were $24 billion, a decrease of $2 million from the first quarter of 2021, driven by a decline in PPP loans and other interest-earning assets, partially offset by growth in the commercial and residential real estate loan portfolios as well as investment securities. Average Net Loans¹, which include loans originated under the PPP, were $18.9 billion, a decrease of $74 million compared to the first quarter of 2021. Average PPP loans were $1.5 billion for the second quarter of 2021 compared to $1.7 billion for the first quarter of 2021. Second quarter loan balances were impacted by the net effect of $639 million of PPP loans forgiven and $60 million of new loans originated under the third phase of the PPP in the second quarter of 2021.

___________________________________ 1Loans and lease receivables, (net of unearned income)

Average loans and yields, by type, for the second quarter of 2021 in comparison to the first quarter of 2021 are summarized in the following table:

	Three months ended
	June 30, 2021							March 31, 2021							Growth
	Balance				Yield (1)			Balance				Yield (1)			$				%
	(dollars in thousands)
Average Net Loans by type:
Real estate - commercial mortgage	$	7,177,622			3.16	%		$	7,128,997			3.15	%		$	48,625			0.7	%
Commercial and industrial(2)	5,445,160				2.58	%		5,722,080				2.57	%		(276,920)				(4.8)	%
Real estate - residential mortgage	3,396,690				3.39	%		3,183,585				3.52	%		213,105				6.7	%
Real estate - home equity	1,139,558				3.71	%		1,175,218				3.75	%		(35,660)				(3.0)	%
Real estate - construction	1,054,469				3.05	%		1,054,718				3.09	%		(249)				(0.0)	%
Consumer	451,486				3.89	%		459,038				4.13	%		(7,552)				(1.6)	%
Equipment lease financing	256,248				3.74	%		266,405				4.11	%		(10,157)				(3.8)	%
Other(3)	(14,677)				N/A			(9,455)				N/A			(5,222)				55.2	%
Total Average Net Loans	$	18,906,556			3.32	%		$	18,980,586			3.53	%		$	(74,030)			(0.4)	%

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

(2) Includes average PPP loans of $1.5 billion and $1.7 billion for the three months ended June 30, 2021 and March 31, 2021, respectively.

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

Total average liabilities decreased $98 million, to $23.3 billion, in the second quarter of 2021 compared to the first quarter of 2021 driven by decreases in short-term and long-term borrowings, partially offset by increases in average deposits. Average deposits and interest rates, by type, for the second quarter of 2021 in comparison to the first quarter of 2021 are summarized in the following table:

	Three months ended
	June 30, 2021							March 31, 2021							Growth
	Balance				Rate			Balance				Rate			$				%
	(dollars in thousands)
Average Deposits, by type:
Noninterest-bearing demand	$	7,203,696			—			$	6,672,832			—			$	530,864			8.0	%
Interest-bearing demand	5,979,855				0.06	%		5,832,174				0.08	%		147,681				2.5	%
Savings	6,280,629				0.09	%		6,137,084				0.10	%		143,545				2.3	%
Total average demand and savings	19,464,180				0.05	%		18,642,090				0.06	%		822,090				4.4	%
Brokered	297,815				0.34	%		324,364				0.49	%		(26,549)				(8.2)	%
Time	2,003,606				1.09	%		2,150,570				1.23	%		(146,964)				(6.8)	%
Total Average Deposits	$	21,765,601			0.15	%		$	21,117,024			0.18	%		$	648,577			3.1	%

Asset Quality

In the second quarter of 2021, a negative provision for credit losses of $4 million was recognized, as compared to a negative provision for credit losses of $6 million recognized in the first quarter of 2021. A $20 million provision for credit losses was recognized in the second quarter of 2020. Consistent with the first quarter of 2021, improved economic forecasts and a decrease in specific allocations within the allowance for credit losses for loans evaluated individually reduced the level of the allowance for credit losses determined to be necessary at the end of the second quarter of 2021.

The $20 million provision for credit losses in the second quarter of 2020 reflected expected credit losses based on economic forecasts as of the end of the second quarter of 2020 and the assessment of the estimated impacts of the COVID-19 pandemic at that time.

Non-performing assets were $157 million, or 0.60% of total assets, at June 30, 2021, compared to $156 million, or 0.60% of total assets, and $145 million, or 0.59% of total assets at March 31, 2021 and June 30, 2020, respectively.

Annualized net charge-offs for the quarter ended June 30, 2021 were 0.15% of total average loans, compared to 0.13% and 0.09% for the quarters ended March 31, 2021 and June 30, 2020, respectively.

Non-interest Income

Non-interest income in the second quarter of 2021, excluding investment securities gains, was $52 million, a decrease of $10 million, or 16%, from the first quarter of 2021, primarily driven by decreases of $11 million in mortgage banking income and a $1 million decrease in capital markets income. The decrease in mortgage banking income was due to lower mortgage sales and gain-on-sale spreads on loans sold, as well as a $2 million addition to the valuation allowance for mortgage servicing assets. The $1 million decrease in capital markets income was the result of lower commercial loan interest rate swap revenues.

Compared to the second quarter of 2020, non-interest income, excluding investment securities gains, in the second quarter of 2021 decreased $1 million, or 2%, from $53 million, primarily driven by a $7 million decrease in mortgage banking income, resulting from a combination of lower mortgage sales gains and higher rates. During the second quarter of 2020, mortgage banking income was higher as a result of lower mortgage interest rates which drove an increase in activity. The decrease in mortgage banking income was partially offset by a $4 million increase in wealth management income and a $2 million increase in consumer banking income.

Net investment securities gains were $33 million lower compared to the first quarter of 2021. In the first quarter of 2021, Fulton completed a balance sheet restructuring involving gains on sales of Visa, Inc. Class B restricted shares of $34 million, which were offset in non-interest expense by corresponding debt extinguishment costs of $32 million, other securities losses of $0.4 million and a write-off of $1 million recognized in net interest income in connection with the purchase of certain of the Corporation's outstanding senior and subordinated notes and the prepayment of term Federal Home Loan Bank advances.

Non-interest Expense

Non-interest expense was $141 million in the second quarter of 2021, a decrease of $38 million compared to the first quarter of 2021, with the decrease driven by costs recognized during the first quarter of 2021 associated with the aforementioned balance sheet restructuring.

Compared to the second quarter of 2020, non-interest expense decreased $2 million, or 2%, in the second quarter of 2021, due primarily to a decrease in salaries and employee benefits and debt extinguishment costs. In the second quarter of 2020 a $3 million prepayment penalty on redemption of FHLB advances was incurred. These decreases were partially offset by increases in multiple other non-interest expense categories.

Income Tax Expense

The effective income tax rate (ETR) was 16% for both the second and first quarters of 2021 as compared to 14% for second quarter of 2020. The increase was a result of higher income before income taxes, while net favorable permanent differences were relatively the same compared to the second quarter of 2020.

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

Safe Harbor Statement

This news release may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," “projects,” the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results.

Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, they are based on current beliefs, expectations and assumptions regarding the future of the Corporation’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation’s control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2020, Quarterly Report on Form 10-Q for the quarter ended March 31, 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.fult.com) and on the Securities and Exchange Commission's website (www.sec.gov).

Non-GAAP Financial Measures

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

FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
in thousands, except per-share data and percentages
	Three months ended
	Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
	2021				2021				2020				2020				2020
Ending Balances
Investments	$	3,921,658			$	3,612,010			$	3,340,424			$	3,097,721			$	2,974,813
Net Loans	18,586,756				18,990,986				18,900,820				19,028,621				18,704,722
Total assets	26,079,774				25,892,990				25,906,733				25,543,281				24,617,863
Deposits	21,724,312				21,633,838				20,839,207				20,730,051				19,884,208
Shareholders' equity	2,692,958				2,629,655				2,616,828				2,390,261				2,340,501
Average Balances
Investments	$	3,670,333			$	3,448,166			$	3,221,289			$	2,977,672			$	3,096,632
Net Loans	18,906,556				18,980,586				18,994,514				18,880,519				18,331,797
Total assets	26,017,542				26,082,816				25,749,405				25,169,508				24,139,116
Deposits	21,765,601				21,117,024				20,791,522				20,388,447				19,276,658
Shareholders' equity	2,669,413				2,637,098				2,544,866				2,374,091				2,309,133
Income Statement
Net interest income	$	162,399			$	164,448			$	161,591			$	154,116			$	152,754
Provision for credit losses	(3,500)				(5,500)				6,240				7,080				19,570
Non-interest income	51,890				95,397				55,574				63,248				55,922
Non-interest expense	140,831				178,384				154,737				139,147				143,006
Income before taxes	76,958				86,961				56,187				71,137				46,101
Net income available to common shareholders	62,402				70,472				48,690				61,607				39,559
Pre-provision net revenue(1)	75,575				81,795				64,092				80,043				67,125
Per Share
Net income available to common shareholders (basic)	$	0.38			$	0.43			$	0.30			$	0.38			$	0.24
Net income available to common shareholders (diluted)	$	0.38			$	0.43			$	0.30			$	0.38			$	0.24
Cash dividends	$	0.14			$	0.14			$	0.17			$	0.13			$	0.13
Common shareholders' equity	$	15.34			$	14.99			$	14.93			$	14.74			$	14.45
Common shareholders' equity (tangible)(1)	$	12.05			$	11.69			$	11.62			$	11.44			$	11.15
Weighted average shares (basic)	162,785				162,441				162,242				162,061				161,715
Weighted average shares (diluted)	163,858				163,737				163,071				162,579				162,267

(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
	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
	2021			2021			2020			2020			2020
Asset Quality
Net charge-offs (recoveries) to average loans (annualized)	0.15	%		0.13	%		(0.07)	%		(0.05)	%		0.09	%
Non-performing loans to total loans	0.83	%		0.80	%		0.78	%		0.75	%		0.75	%
Non-performing assets to total assets	0.60	%		0.60	%		0.58	%		0.57	%		0.59	%
ACL - loans(2) to total loans	1.37	%		1.40	%		1.47	%		1.40	%		1.37	%
ACL - loans(2) to non-performing loans	166	%		174	%		189	%		188	%		183	%
Asset Quality, excluding PPP(1)(3)
Net charge-offs (recoveries) to adjusted average loans (annualized)	0.16	%		0.14	%		(0.08)	%		(0.06)	%		0.10	%
Non-performing loans to total adjusted loans	0.88	%		0.88	%		0.85	%		0.83	%		0.83	%
ACL - loans(2) to total adjusted loans	1.46	%		1.54	%		1.60	%		1.56	%		1.53	%
Profitability
Return on average assets	1.00	%		1.14	%		0.79	%		0.97	%		0.66	%
Return on average common shareholders' equity	9.38	%		10.84	%		7.61	%		10.32	%		6.89	%
Return on average common shareholders' equity (tangible)(1)	12.93	%		15.00	%		10.32	%		13.50	%		8.99	%
Net interest margin	2.73	%		2.79	%		2.75	%		2.70	%		2.81	%
Efficiency ratio(1)	63.8	%		63.0	%		62.5	%		62.3	%		66.4	%
Capital Ratios
Tangible common equity ratio(1)	7.7	%		7.5	%		7.4	%		7.4	%		7.5	%
Tier 1 leverage ratio(4)	8.4	%		8.3	%		8.2	%		7.4	%		7.6	%
Common equity Tier 1 capital ratio(4)	9.9	%		9.8	%		9.5	%		9.5	%		9.5	%
Tier 1 capital ratio(4)	10.9	%		10.8	%		10.5	%		9.5	%		9.5	%
Total risk-based capital ratio(4)	14.3	%		14.2	%		14.4	%		13.9	%		13.8	%

(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 June 30, 2021 are preliminary and prior periods are actual.

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
																						% Change from
		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30				Mar 31			Jun 30
		2021				2021				2020				2020				2020				2021			2020
ASSETS
	Cash and due from banks	$	143,002			$	102,570			$	120,462			$	139,304			$	141,702			39.4	%		0.9	%
	Other interest-earning assets	1,823,688				1,625,515				1,819,499				1,489,550				1,007,939				12.2	%		80.9	%
	Loans held for sale	41,924				34,092				83,886				93,621				77,415				23.0	%		(45.8)	%
	Investment securities	3,921,658				3,612,010				3,340,424				3,097,721				2,974,813				8.6	%		31.8	%
	Net Loans	18,586,756				18,990,986				18,900,820				19,028,621				18,704,722				(2.1)	%		(0.6)	%
	Less: ACL - loans(1)	(255,032)				(265,986)				(277,567)				(266,825)				(256,537)				(4.1)	%		(0.6)	%
	Loans, net	18,331,724				18,725,000				18,623,253				18,761,796				18,448,185				(2.1)	%		(0.6)	%
	Net, premises and equipment	228,353				229,035				231,480				236,943				239,596				(0.3)	%		(4.7)	%
	Accrued interest receivable	63,232				65,649				72,942				70,766				73,720				(3.7)	%		(14.2)	%
	Goodwill and intangible assets	536,847				536,544				536,659				534,907				535,039				0.1	%		0.3	%
	Other assets	989,346				962,575				1,078,128				1,118,673				1,119,454				2.8	%		(11.6)	%
	Total Assets	$	26,079,774			$	25,892,990			$	25,906,733			$	25,543,281			$	24,617,863			0.7	%		5.9	%
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits	$	21,724,312			$	21,633,838			$	20,839,207			$	20,730,051			$	19,884,208			0.4	%		9.3	%
	Short-term borrowings	533,749				520,989				630,066				611,727				572,551				2.4	%		(6.8)	%
	Other liabilities	501,542				482,101				524,369				515,230				525,407				4.0	%		(4.5)	%
	Long-term borrowings	627,213				626,407				1,296,263				1,296,012				1,295,196				0.1	%		(51.6)	%
	Total Liabilities	23,386,816				23,263,335				23,289,905				23,153,020				22,277,362				0.5	%		5.0	%
	Shareholders' equity	2,692,958				2,629,655				2,616,828				2,390,261				2,340,501				2.4	%		15.1	%
	Total Liabilities and Shareholders' Equity	$	26,079,774			$	25,892,990			$	25,906,733			$	25,543,281			$	24,617,863			0.7	%		5.9	%
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
	Real estate - commercial mortgage	$	7,152,932			$	7,142,137			$	7,105,092			$	7,046,330			$	6,934,936			0.2	%		3.1	%
	Commercial and industrial	3,870,462				3,986,858				4,088,561				4,007,278				4,033,439				(2.9)	%		(4.0)	%
	Real estate - residential mortgage	3,555,897				3,254,058				3,141,915				3,061,835				2,862,226				9.3	%		24.2	%
	Real estate - home equity	1,136,128				1,149,958				1,202,913				1,222,709				1,251,455				(1.2)	%		(9.2)	%
	Real estate - construction	1,070,755				1,083,494				1,047,218				1,007,534				972,909				(1.2)	%		10.1	%
	Consumer	448,433				451,857				466,772				469,551				465,610				(0.8)	%		(3.7)	%
	Equipment lease financing	252,158				260,907				279,118				280,286				281,897				(3.4)	%		(10.5)	%
	Other(2)	(14,410)				(26,677)				(12,481)				(27,067)				(34,784)				(46.0)	%		(58.6)	%
	Net Loans before PPP	17,472,355				17,302,592				17,319,108				17,068,456				16,767,688				1.0	%		4.2	%
	PPP	1,114,401				1,688,394				1,581,712				1,960,165				1,937,034				(34.0)	%		(42.5)	%
	Total Net Loans	$	18,586,756			$	18,990,986			$	18,900,820			$	19,028,621			$	18,704,722			(2.1)	%		(0.6)	%
Deposits, by type:
	Noninterest-bearing demand	$	7,442,132			$	7,046,116			$	6,531,002			$	6,378,077			$	6,239,055			5.6	%		19.3	%
	Interest-bearing demand	5,795,404				5,959,909				5,818,564				5,813,935				5,099,405				(2.8)	%		13.6	%
	Savings	6,276,554				6,244,513				5,929,792				5,805,431				5,667,893				0.5	%		10.7	%
	Total demand and savings	19,514,090				19,250,538				18,279,358				17,997,443				17,006,353				1.4	%		14.7	%
	Brokered	277,444				309,873				335,185				317,588				310,689				(10.5)	%		(10.7)	%
	Time	1,932,778				2,073,427				2,224,664				2,415,020				2,567,166				(6.8)	%		(24.7)	%
	Total Deposits	$	21,724,312			$	21,633,838			$	20,839,207			$	20,730,051			$	19,884,208			0.4	%		9.3	%
Short-term borrowings, by type:
	Customer funding	$	533,749			$	520,989			$	630,066			$	611,727			$	572,551			2.4	%		(6.8)	%
	Total Short-term Borrowings	$	533,749			$	520,989			$	630,066			$	611,727			$	572,551			2.4	%		(6.8)	%

(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								Six Months Ended
				Jun 30				Mar 31				Dec 31				Sep 30				Jun 30				Mar 31			Jun 30					Jun 30
				2021				2021				2020				2020				2020				2021			2020					2021				2020				% Change
Interest Income:
	Interest income			$	176,673			$	184,936			$	183,645			$	179,159			$	180,696			(4.5)	%		(2.2)	%				$	361,609			$	380,074			(4.9)	%
	Interest expense			14,274				20,488				22,054				25,043				27,942				(30.3)	%		(48.9)	%				34,762				66,574				(47.8)	%
	Net Interest Income			162,399				164,448				161,591				154,116				152,754				(1.2)	%		6.3	%				326,847				313,500				4.3	%
	Provision for credit losses			(3,500)				(5,500)				6,240				7,080				19,570				(36.4)	%		(117.9)	%				(9,000)				63,600				(114.2)	%
	Net Interest Income after Provision			165,899				169,948				155,351				147,036				133,184				(2.4)	%		24.6	%				335,847				249,900				34.4	%
Non-Interest Income:
	Commercial banking:
	Merchant and card			6,786				5,768				5,953				6,237				5,326				17.6	%		27.4	%				12,554				10,950				14.6	%
	Cash management			5,341				4,921				4,737				4,742				4,503				8.5	%		18.6	%				10,262				9,245				11.0	%
	Capital markets			1,536				2,800				3,513				4,696				5,004				(45.1)	%		(69.3)	%				4,336				10,079				(57.0)	%
	Other commercial banking			3,466				2,853				2,606				2,636				1,914				21.5	%		81.1	%				6,319				4,892				29.2	%
	Total commercial banking			17,129				16,342				16,809				18,311				16,748				4.8	%		2.3	%				33,471				35,167				(4.8)	%
	Consumer banking:
	Card			5,733				5,878				5,123				5,002				4,966				(2.5)	%		15.4	%				11,611				9,651				20.3	%
	Overdraft			2,750				2,724				3,376				3,015				2,107				1.0	%		30.5	%				5,474				6,165				(11.2)	%
	Other consumer banking			2,377				2,152				2,298				2,406				2,065				10.5	%		15.1	%				4,529				4,561				(0.7)	%
	Total consumer banking			10,860				10,754				10,797				10,423				9,138				1.0	%		18.8	%				21,614				20,377				6.1	%
	Wealth management			17,634				17,347				15,653				14,943				13,407				1.7	%		31.5	%				34,981				28,462				22.9	%
	Mortgage banking			2,838				13,960				9,311				16,801				9,964				(79.7)	%		(71.5)	%				16,798				16,198				3.7	%
	Other			3,393				3,519				3,004				2,769				3,660				(3.6)	%		(7.3)	%				6,912				7,311				(5.5)	%
	Non-interest income before investment securities gains			51,854				61,922				55,574				63,246				52,917				(16.3)	%		(2.0)	%				113,776				107,515				5.8	%
	Investment securities gains, net			36				33,475				—				2				3,005				(99.9)	%		(98.8)	%				33,511				3,051				N/M
	Total Non-Interest Income			51,890				95,397				55,574				63,248				55,922				(45.6)	%		(7.2)	%				147,287				110,566				33.2	%
Non-Interest Expense:
	Salaries and employee benefits			78,367				82,586				83,929				79,227				81,012				(5.1)	%		(3.3)	%				160,953				161,240				(0.2)	%
	Net occupancy			12,494				13,982				13,161				13,221				13,144				(10.6)	%		(4.9)	%				26,476				26,630				(0.6)	%
	Data processing and software			13,932				13,561				11,951				12,285				12,193				2.7	%		14.3	%				27,493				23,838				15.3	%
	Other outside services			8,178				8,490				8,334				7,617				7,600				(3.7)	%		7.6	%				16,668				15,481				7.7	%
	Equipment			3,424				3,428				3,563				3,711				3,193				(0.1)	%		7.2	%				6,852				6,611				3.6	%
	Professional fees			2,651				2,779				2,424				2,879				3,331				(4.6)	%		(20.4)	%				5,430				7,533				(27.9)	%
	FDIC insurance			2,282				2,624				2,346				1,578				2,133				(13.0)	%		7.0	%				4,906				4,941				(0.7)	%
	Amortization of tax credit investments			1,563				1,531				1,532				1,694				1,450				2.1	%		7.8	%				3,094				2,900				6.7	%
	Marketing			1,348				1,002				1,098				1,147				1,303				34.5	%		3.5	%				2,350				2,882				(0.7)	%
	Intangible amortization			178				115				132				132				132				54.8	%		34.8	%				293				264				11.0	%
	Debt extinguishment			412				32,163				—				—				2,878				(98.7)	%		(98.7)	%				32,575				2,878				N/M
	Other			16,002				16,123				26,268				15,654				14,637				(0.8)	%		9.3	%				32,125				30,360				5.8	%
	Total Non-Interest Expense			140,831				178,383				154,738				139,145				143,006				(21.1)	%		(1.5)	%				319,215				285,558				11.8	%
	Income Before Income Taxes			76,958				86,961				56,187				71,139				46,100				(11.5)	%		66.9	%				163,919				74,909				118.8	%
	Income tax expense			11,994				13,898				5,362				9,529				6,542				(13.7)	%		83.3	%				25,892				9,303				N/M
	Net Income			64,964				73,063				50,825				61,610				39,558				(11.1)	%		64.2	%				138,027				65,606				110.4	%
	Preferred stock dividends			(2,562)				(2,591)				(2,135)				—				—				(1.1)	%		N/M					(5,153)				—				N/M
	Net Income Available to Common Shareholders			$	62,402			$	70,472			$	48,690			$	61,610			$	39,558			(11.5)	%		57.7	%				$	132,874			$	65,606			102.5	%
PER SHARE:
	Net income:
	Basic			$	0.38			$	0.43			$	0.30			$	0.38			$	0.24			(11.6)	%		58.3	%				$	0.81			$	0.40			102.5	%
	Diluted			0.38				0.43				0.30				0.38				0.24				(11.6)	%		58.3	%				0.81				0.40				102.5	%
	Cash dividends			0.14				0.14				0.17				0.13				0.13				—	%		7.7	%				0.28				0.26				7.7	%
	Weighted average shares (basic)			162,785				162,441				162,242				162,061				161,715				0.2	%		0.7	%				162,614				162,582				—	%
	Weighted average shares (diluted)			163,858				163,737				163,071				162,579				162,267				0.1	%		1.0	%				163,738				163,326				0.3	%

N/M - Not meaningful

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Three months ended
		June 30, 2021											March 31, 2021											June 30, 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	$	18,906,556			$	156,525			3.32	%		$	18,980,586			$	165,462			3.53	%		$	18,331,797			$	160,613			3.52	%
	Taxable investment securities	2,630,090				13,898				1.93	%		2,438,496				13,691				2.08	%		2,200,870				15,171				2.76	%
	Tax-exempt investment securities	961,141				7,494				3.11	%		911,648				7,156				3.13	%		830,836				6,737				3.23	%
	Total Investment Securities	3,591,231				21,392				2.38	%		3,350,144				20,847				2.49	%		3,031,706				21,908				2.89	%
	Loans held for sale	31,948				199				2.49	%		53,465				471				3.53	%		55,608				509				3.66	%
	Other interest-earning assets	1,752,549				1,575				0.16	%		1,900,199				1,136				0.24	%		815,910				766				0.38	%
	Total Interest-earning Assets	24,282,284				179,691				2.97	%		24,284,394				187,916				3.13	%		22,235,021				183,796				3.32	%
Noninterest-earning assets:
	Cash and due from banks	129,927											120,181											153,728
	Premises and equipment	229,047											230,649											240,417
	Other assets	1,643,410											1,728,473											1,761,038
	Less: ACL - loans(2)	(267,126)											(280,881)											(251,088)
	Total Assets	$	26,017,542										$	26,082,816										$	24,139,116
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits	$	5,979,855			$	932			0.06	%		$	5,832,174			$	1,160			0.08	%		$	5,103,419			$	2,219			0.17	%
	Savings deposits	6,280,629				1,363				0.09	%		6,137,084				1,526				0.10	%		5,446,368				3,331				0.25	%
	Brokered deposits	297,815				253				0.34	%		324,364				395				0.49	%		312,121				422				0.54	%
	Time deposits	2,003,606				5,434				1.09	%		2,150,570				6,521				1.23	%		2,624,962				11,145				1.71	%
	Total Interest-bearing Deposits	14,561,905				7,982				0.22	%		14,444,192				9,602				0.27	%		13,486,870				17,118				0.51	%
	Short-term borrowings	514,025				137				0.11	%		570,775				188				0.13	%		707,771				517				0.29	%
	Long-term borrowings	626,795				6,155				3.93	%		1,271,170				10,698				3.38	%		1,361,421				10,307				3.03	%
	Total Interest-bearing Liabilities	15,702,725				14,274				0.36	%		16,286,137				20,488				0.51	%		15,556,062				27,942				0.72	%
Noninterest-bearing liabilities:
	Demand deposits	7,203,696											6,672,832											5,789,788
	Total Deposits/Cost of Deposits	21,765,601								0.15	%		21,117,024								0.18	%		19,276,658								0.36	%
	Other	441,708											486,749											484,133
	Total Liabilities	23,348,129											23,445,718											21,829,983
	Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")	22,906,421								0.25	%		22,958,969								0.36	%		21,345,850								0.53	%
	Shareholders' equity	2,669,413											2,637,098											2,309,133
	Total Liabilities and Shareholders' Equity	$	26,017,542										$	26,082,816										$	24,139,116
	Net interest income/net interest margin (fully taxable equivalent)					165,417				2.73	%						167,428				2.79	%						155,854				2.81	%
	Tax equivalent adjustment					(3,018)											(2,979)											(3,100)
	Net interest income					$	162,399										$	164,449										$	152,754

(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
		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30				Mar 31			Jun 30
		2021				2021				2020				2020				2020				2021			2020
Loans, by type:
	Real estate - commercial mortgage	$	7,177,622			$	7,128,997			$	7,101,363			$	6,986,528			$	6,875,872			0.7	%		4.4	%
	Commercial and industrial	3,920,771				4,033,367				4,024,879				4,030,750				4,451,228				(2.8)	%		(11.9)	%
	Real estate - residential mortgage	3,396,690				3,183,585				3,087,529				2,975,516				2,769,682				6.7	%		22.6	%
	Real estate - home equity	1,139,558				1,175,218				1,212,113				1,237,602				1,271,190				(3.0)	%		(10.4)	%
	Real estate - construction	1,054,469				1,054,718				1,009,284				981,589				941,079				—	%		12.0	%
	Consumer	451,486				459,038				468,678				464,851				465,728				(1.6)	%		(3.1)	%
	Equipment lease financing	256,248				266,405				279,059				279,217				284,658				(3.8)	%		(10.0)	%
	Other(1)	(14,677)				(9,455)				(18,817)				(28,656)				13,443				55.2	%		N/M
	Net Loans before PPP	17,382,167				17,291,873				17,164,088				16,927,397				17,072,880				0.5	%		1.8	%
	PPP	1,524,389				1,688,713				1,830,426				1,953,122				1,258,917				(9.7)	%		21.1	%
	Total Net Loans	$	18,906,556			$	18,980,586			$	18,994,514			$	18,880,519			$	18,331,797			(0.4)	%		3.1	%
Deposits, by type:
	Noninterest-bearing demand	$	7,203,696			$	6,672,832			$	6,477,228			$	6,270,683			$	5,789,788			8.0	%		24.4	%
	Interest-bearing demand	5,979,855				5,832,174				5,762,150				5,591,548				5,103,419				2.5	%		17.2	%
	Savings	6,280,629				6,137,084				5,905,137				5,716,050				5,446,368				2.3	%		15.3	%
	Total demand and savings	19,464,180				18,642,090				18,144,515				17,578,281				16,339,575				4.4	%		19.1	%
	Brokered	297,815				324,364				340,451				314,721				312,121				(8.2)	%		(4.6)	%
	Time	2,003,606				2,150,570				2,306,556				2,495,445				2,624,962				(6.8)	%		(23.7)	%
	Total Deposits	$	21,765,601			$	21,117,024			$	20,791,522			$	20,388,447			$	19,276,658			3.1	%		12.9	%
Short-term borrowings, by type:
	Customer funding	$	514,025			$	570,775			$	622,623			$	613,127			$	546,716			(9.9)	%		(6.0)	%
	Federal funds purchased	—				—				—				—				74,231				N/M			(100.0)	%
	Short-term FHLB advances and other borrowings	—				—				—				—				86,824				N/M			(100.0)	%
	Total Short-term borrowings	$	514,025			$	570,775			$	622,623			$	613,127			$	707,771			(9.9)	%		(27.4)	%
N/M - Not meaningful
(1) Consists of overdrafts and net origination fees and costs.

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
			Six months ended June 30
			2021											2020
			Average				Interest				Yield/			Average				Interest				Yield/
			Balance				(1)				Rate			Balance				(1)				Rate
ASSETS
Interest-earning assets:
	Net Loans		$	18,943,367			$	321,987			3.42	%		$	17,595,932			$	338,110			3.86	%
	Taxable investment securities		2,534,821				27,588				2.00	%		2,242,663				31,465				2.81	%
	Tax-exempt investment securities		936,531				14,651				3.12	%		775,530				12,698				3.26	%
	Total Investment Securities		3,471,352				42,239				2.43	%		3,018,193				44,163				2.92	%
	Loans held for sale		42,647				671				3.14	%		41,393				829				4.00	%
	Other interest-earning assets		1,825,966				2,711				0.19	%		709,091				3,297				4.31	%
	Total Interest-earning Assets		24,283,332				367,607				3.05	%		21,364,609				386,399				3.63	%
Noninterest-earning assets:
	Cash and due from banks		125,081											145,988
	Premises and equipment		229,843											240,019
	Other assets		1,685,708											1,675,849
	Less: ACL - loans(2)		(273,965)											(230,858)
	Total Assets		$	26,049,999										$	23,195,607
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits		$	5,906,423			$	2,092			0.07	%		$	4,876,662			$	8,020			0.33	%
	Savings deposits		6,209,253				2,890				0.09	%		5,287,015				10,441				0.40	%
	Brokered deposits		311,016				647				0.42	%		293,756				1,495				1.02	%
	Time deposits		2,076,681				11,955				1.16	%		2,693,202				23,602				1.76	%
	Total Interest-bearing Deposits		14,503,373				17,584				0.24	%		13,150,635				43,558				0.67	%
	Short-term borrowings		542,243				325				0.12	%		1,005,409				4,590				0.91	%
	Long-term borrowings		947,203				16,853				3.56	%		1,212,318				18,426				3.04	%
	Total Interest-bearing Liabilities		15,992,819				34,762				0.44	%		15,368,362				66,574				0.87	%
Noninterest-bearing liabilities:
	Demand deposits		6,939,731											5,048,408
	Total Deposits/Cost of Deposits		21,443,104								0.17	%		18,199,043								0.48	%
	Other		464,104											455,763
	Total Liabilities		23,396,654											20,872,533
	Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")		22,932,550								0.30	%		20,416,770								0.65	%
	Shareholders' equity		2,653,345											2,323,074
	Total Liabilities and Shareholders' Equity		$	26,049,999										$	23,195,607
	Net interest income/net interest margin (fully taxable equivalent)						332,845				2.76	%						319,825				3.01	%
	Tax equivalent adjustment						(5,998)											(6,325)
	Net interest income						$	326,847										$	313,500
	(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
			Six months ended June 30
			2021				2020				% Change
Loans, by type:
	Real estate - commercial mortgage		$	7,153,444			$	6,811,318			5.0	%
	Commercial and industrial		3,976,758				4,448,990				(10.6)	%
	Real estate - residential mortgage		3,290,726				2,719,851				21.0	%
	Real estate - home equity		1,157,289				1,285,661				(10.0)	%
	Real estate - construction		1,054,593				935,304				12.8	%
	Consumer		455,241				466,071				(2.3)	%
	Equipment lease financing		261,300				284,612				(8.2)	%
	Other(1)		(12,081)				14,667				N/M
	Net Loans before PPP		17,337,270				16,966,474				2.2	%
	PPP		1,606,097				629,458				N/M
	Total Net Loans		$	18,943,367			$	17,595,932			7.7	%
Deposits, by type:
	Noninterest-bearing demand		$	6,939,731			$	5,048,408			37.5	%
	Interest-bearing demand		5,906,423				4,876,662				21.1	%
	Savings		6,209,253				5,287,015				17.4	%
	Total demand and savings		19,055,407				15,212,085				25.3	%
	Brokered		311,016				293,756				5.9	%
	Time		2,076,681				2,693,202				(22.9)	%
	Total Deposits		$	21,443,104			$	18,199,043			17.8	%
Short-term borrowings, by type:
	Customer funding		542,243				487,478				11.2	%
	Federal funds purchased		—				130,549				N/M
	Short-term FHLB advances and other borrowings		—				387,382				N/M
	Total Short-term Borrowings		$	542,243			$	1,005,409			(46.1)	%
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
		Jun 30				Mar 31				Dec 31				Sep 30				Jun 30
		2021				2021				2020				2020				2020
Allowance for credit losses related to Net Loans:
Balance at beginning of period		$	265,986			$	277,567			$	266,825			$	256,537			$	238,508
	Loans charged off:
	Commercial and industrial	(954)				(4,319)				(1,567)				(2,969)				(3,480)
	Real estate - commercial mortgage	(6,506)				(1,837)				(300)				(746)				(2,324)
	Consumer and home equity	(1,130)				(847)				(668)				(1,093)				(1,303)
	Real estate - residential mortgage	(496)				(192)				—				(198)				(235)
	Real estate - construction	—				(39)				—				—				(17)
	Equipment lease financing and other	(436)				(968)				(483)				(483)				(688)
	Total loans charged off	(9,522)				(8,202)				(3,018)				(5,489)				(8,047)
Recoveries of loans previously charged off:
	Commercial and industrial	693				769				4,581				2,103				2,978
	Real estate - commercial mortgage	729				174				588				100				95
	Consumer and home equity	634				440				594				491				649
	Real estate - residential mortgage	105				95				199				95				112
	Real estate - construction	254				384				179				4,873				—
	Equipment lease financing and other	153				159				219				185				92
	Recoveries of loans previously charged off	2,568				2,021				6,360				7,847				3,926
Net loans recovered (charged off)		(6,954)				(6,181)				3,342				2,358				(4,121)
Provision for credit losses		(4,000)				(5,400)				7,400				7,930				22,150
Balance at end of period		$	255,032			$	265,986			$	277,567			$	266,825			$	256,537
Net charge-offs (recoveries) to average loans (annualized)		0.15		%		0.13		%		(0.07)		%		(0.05)		%		0.09		%
Allowance credit losses related to OBS Credit Exposures(1)
	Balance at beginning of period	$	14,273			$	14,373			$	15,533			$	16,383			$	18,963
	Provision for credit losses	500				(100)				(1,160)				(850)				(2,580)
	Balance at end of period	$	14,773			$	14,273			$	14,373			$	15,533			$	16,383
NON-PERFORMING ASSETS:
	Non-accrual loans	$	147,864			$	143,889			$	137,198			$	128,321			$	125,037
	Loans 90 days past due and accruing	5,865				8,559				9,929				13,761				14,767
	Total non-performing loans	153,729				152,448				147,127				142,082				139,804
	Other real estate owned	2,779				3,664				4,178				4,565				5,418
	Total non-performing assets	$	156,508			$	156,112			$	151,305			$	146,647			$	145,222
NON-PERFORMING LOANS, BY TYPE:
	Commercial and industrial	$	33,522			$	31,871			$	32,610			$	37,224			$	39,730
	Real estate - commercial mortgage	53,693				54,164				52,647				43,426				42,374
	Real estate - residential mortgage	38,185				36,152				30,793				28,287				22,887
	Consumer and home equity	11,408				13,072				13,090				12,292				11,911
	Real estate - construction	1,016				1,440				1,550				4,051				4,525
	Equipment lease financing and other	15,905				15,749				16,437				16,802				18,377
	Total non-performing loans	$	153,729			$	152,448			$	147,127			$	142,082			$	139,804
(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
							Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
							2021			2021			2020			2020			2020
Common shareholders' equity (tangible), per share
Shareholders' equity							$	2,692,958		$	2,629,655		$	2,616,828		$	2,390,261		$	2,340,501
Less: Preferred stock							(192,878)			(192,878)				(192,878)			—		—
Less: Goodwill and intangible assets							(536,847)			(536,544)				(536,659)			(534,907)		(535,039)
Tangible common shareholders' equity (numerator)							$	1,963,233		$	1,900,233		$	1,887,291		$	1,855,354		$	1,805,462
Shares outstanding, end of period (denominator)							162,988			162,518				162,350			162,134		161,958
Common shareholders' equity (tangible), per share							$	12.05		$	11.69		$	11.62		$	11.44		$	11.15
Return on average common shareholders' equity (tangible)
Net income available to common shareholders							$	62,402		$	70,472		$	48,690		$	61,610		$	39,558
Plus: Intangible amortization, net of tax							140			90				104			103		104
(Numerator)							$	62,542		$	70,562		$	48,794		$	61,713		$	39,662
Average shareholders' equity							$	2,669,413		$	2,637,098		$	2,544,866		$	2,374,091		$	2,309,133
Less: Average preferred stock							(192,878)			(192,878)				(127,639)			—		—
Less: Average goodwill and intangible assets							(536,470)			(536,601)				(535,474)			(534,971)		(535,103)
Average tangible common shareholders' equity (denominator)							$	1,940,065		$	1,907,619		$	1,881,753		$	1,839,120		$	1,774,030
Return on average common shareholders' equity (tangible), annualized							12.93%			15.00%				10.32%			13.50%		8.99%
Tangible common equity to tangible assets (TCE Ratio)
Shareholders' equity							$	2,692,958		$	2,629,655		$	2,616,828		$	2,390,261		$	2,340,501
Less: Preferred stock							(192,878)			(192,878)				(192,878)			—		—
Less: Goodwill and intangible assets							(536,847)			(536,544)				(536,659)			(534,907)		(535,039)
Tangible common shareholders' equity (numerator)							$	1,963,233		$	1,900,233		$	1,887,291		$	1,855,354		$	1,805,462
Total assets							$	26,079,774		$	25,892,990		$	25,906,733		$	25,543,281		$	24,617,863
Less: Goodwill and intangible assets							(536,847)			(536,544)				(536,659)			(534,907)		(535,039)
Total tangible assets (denominator)							$	25,542,927		$	25,356,446		$	25,370,074		$	25,008,374		$	24,082,824
Tangible common equity to tangible assets							7.69%			7.49%				7.44%			7.42%		7.50%
Efficiency ratio
Non-interest expense							$	140,831		$	178,383		$	154,738		$	139,145		$	143,006
Less: Amortization of tax credit investments							(1,563)			(1,531)				(1,532)			(1,694)		(1,450)
Less: Intangible amortization							(178)			(115)				(132)			(132)		(132)
Less: 2020 cost savings initiatives							—			—				(15,400)			(800)		—
Less: Debt extinguishment costs							(412)			(32,163)				—			—		(2,878)
Non-interest expense (numerator)							$	138,678		$	144,574		$	137,674		$	136,519		$	138,546
Net interest income (fully taxable equivalent)							$	165,417		$	167,428		$	164,578		$	157,106		$	155,854
Plus: Total Non-interest income							51,890			95,397				55,574			63,248		55,922
Less: Investment securities gains, net							(36)			(33,475)				—			(2)		(3,005)
Total revenue (denominator)							$	217,271		$	229,350		$	220,152		$	220,352		$	208,771
Efficiency ratio							63.8%			63.0%				62.5%			62.0%		66.4%
							Three months ended
							Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
							2021			2021			2020			2020			2020
Asset Quality, excluding PPP
Net loans recovered (charged-off) (numerator)							$	(6,954)		$	(6,181)		$	3,342		$	2,358		$	(4,121)
Average Net Loans							$	18,906,556		$	18,980,586		$	18,994,514		$	18,880,519		$	18,331,797
Less: Average PPP loans							(1,524,389)			(1,688,713)				(1,830,426)			(1,953,122)		(1,258,917)
Total adjusted average loans (denominator)							$	17,382,167		$	17,291,873		$	17,164,088		$	16,927,397		$	17,072,880
Net charge-offs (recoveries) to adjusted average loans (annualized)							0.16%			0.14%				(0.08)%			(0.06)%		0.10%
Non-performing loans (numerator)							$	153,729		$	152,448		$	147,127		$	142,082		$	139,804
Net Loans							$	18,586,756		$	18,990,986		$	18,900,820		$	19,028,621		$	18,704,722
Less: PPP loans							(1,114,401)			(1,688,394)				(1,581,712)			(1,960,165)		(1,937,034)
Total adjusted loans (denominator)							$	17,472,355		$	17,302,592		$	17,319,108		$	17,068,456		$	16,767,688
Non-performing loans to total adjusted loans							0.88%			0.88%				0.85%			0.83%		0.83%
ACL - loans (numerator)							$	255,032		$	265,986		$	277,567		$	266,825		$	256,537
Net Loans							$	18,586,756		$	18,990,986		$	18,900,820		$	19,028,621		$	18,704,722
Less: PPP loans							(1,114,401)			(1,688,394)				(1,581,712)			(1,960,165)		(1,937,034)
Total adjusted loans (denominator)							$	17,472,355		$	17,302,592		$	17,319,108		$	17,068,456		$	16,767,688
ACL - loans to total adjusted loans							1.46%			1.54%				1.60%			1.56%		1.53%
Pre-provision net revenue
Net interest income							$	162,399		$	164,448		$	161,591		$	154,116		$	152,754
Non-interest income							51,890			95,397				55,574			63,248		55,922
Less: Investment securities gains, net							(36)			(33,475)				—			(2)		(3,005)
Total revenue							$	214,253		$	226,370		$	217,165		$	217,362		$	205,671
Non-interest expense							$	140,831		$	178,383		$	154,738		$	139,145		$	143,006
Less: Debt extinguishment							(412)			(32,163)				—			—		(2,878)
Less: Amortization on tax credit investments							(1,563)			(1,531)				(1,532)			(1,694)		(1,450)
Less: Intangible amortization							(178)			(115)				(132)			(132)		(132)
Total non-interest expense							$	138,678		$	144,574		$	153,074		$	137,319		$	138,546
Pre-provision net revenue							$	75,575		$	81,796		$	64,091		$	80,043		$	67,125
Note: numbers may not sum due to rounding.

Category: Earnings

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FAQ

What were Fulton's net income and share earnings for Q2 2021?

Fulton reported net income of $62 million, or $0.38 per diluted share, for Q2 2021.

How did Fulton's net interest income change in Q2 2021?

Net interest income decreased by $2 million to $162 million in Q2 2021.

What impact did PPP loans have on Fulton's loan balances in Q2 2021?

Average net loans fell by $74 million to $18.9 billion due to $639 million of PPP loans forgiven.

What is the effective tax rate for Fulton Financial in Q2 2021?

The effective tax rate was 16% for both Q2 and Q1 of 2021.

How did non-interest income perform for Fulton in Q2 2021?

Non-interest income dropped by $10 million to $52 million, mainly due to lower mortgage banking income.