Fulton Financial Corporation Announces Fourth Quarter and 2022 Results

Rhea-AI Summary

Fulton Financial Corporation (NASDAQ:FULT) reported a net income of $79.3 million for Q4 2022, a 16% increase from Q3 2022. The annual net income reached $276.7 million, up 4.3% from 2021, driven by the acquisition of Prudential Bancorp on July 1, 2022. Net interest income for Q4 2022 was $225.9 million, a 36.4% increase year-over-year, influenced by rising interest rates. However, non-interest income fell by 8.3% quarter-over-quarter to $54.3 million, primarily due to declines in mortgage banking and commercial customer fees. Total non-interest expenses rose by 2.5% compared to Q3 2022, partially due to increased salaries and other operational costs.

Positive

• Q4 2022 net income of $79.3 million, a 16% increase quarter-over-quarter.
• Annual net income for 2022 at $276.7 million, a 4.3% increase from 2021.
• Net interest income rose to $225.9 million in Q4 2022, a 36.4% increase year-over-year.
• Successful acquisition of Prudential Bancorp positively impacting financials.

Negative

• Non-interest income declined by 8.3% from Q3 2022 to $54.3 million.
• Increase in non-interest expenses by 2.5% compared to Q3 2022, indicating rising operational costs.

LANCASTER, Pa.--(BUSINESS WIRE)-- Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $79.3 million, or $0.47 per diluted share, for the fourth quarter of 2022, an increase of $11.0 million, or 16.0%, in comparison to the third quarter of 2022. The Corporation reported net income available to common shareholders of $276.7 million, or $1.67 per diluted share, for the year ended December 31, 2022, an increase of $11.5 million or 4.3%, in comparison to the year ended December 31, 2021. The results for the third and fourth quarters of 2022 include the impact of the consummation of the acquisition by the Corporation of Prudential Bancorp, Inc. ("Prudential Bancorp") on July 1, 2022.

“2022 was a record year for Fulton, as we continued to execute on our strategy to Grow the bank, Deliver effectively for customers, Operate with excellence, and Serve our stakeholders,” said Curtis J. Myers, Chairman and CEO of Fulton Financial Corporation. "I’m very proud of our team's results, especially given the large number of strategic initiatives, we tackled, including the Prudential Bancorp acquisition - our first whole-bank acquisition in over a decade. Coming out of 2022, we are well positioned for continued success in 2023."

Operating net income available to common shareholders was $81.2 million, or $0.48 per diluted share, for the fourth quarter of 2022, calculated as shown below.

						Three months ended
(in thousands except per share data)						December 31, 2022
Net income available to common shareholders						$79,271
Plus: Core deposit intangible amortization						514
Plus: Merger-related expenses						1,894
Less: Tax impact of adjustments						(506)
Operating net income available to common shareholders (numerator)						$81,173
Weighted average shares (diluted) (denominator)						169,136
Operating net income available to common shareholders per share (diluted)(1)						$0.48

(1) Non-GAAP financial measure.

Net Interest Income and Balance Sheet

Net interest income for the fourth quarter of 2022 was $225.9 million, an increase of $10.3 million in comparison to the third quarter of 2022. The net interest margin for the fourth quarter of 2022 increased 15 basis points, to 3.69%, in comparison to 3.54% in the third quarter of 2022.

The linked-quarter increase in net interest income was primarily due to rising interest rates resulting in increases in interest income from net loans of $33.8 million. An increase in the average balances for net loans of $440.7 million also contributed to the increase in interest income. Interest expense from interest-bearing liabilities for the fourth quarter of 2022 increased by $23.8 million to $41.9 million in comparison to $18.1 million in the third quarter of 2022 primarily due to rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings of $12.3 million and $11.5 million, respectively. An increase in the average balance for borrowings of $666.2 million in the fourth quarter of 2022 in comparison to the third quarter of 2022 also contributed to the increase in interest expense.

For the fourth quarter of 2022, net interest income was $225.9 million, an increase of $60.3 million, or 36.4%, in comparison to the fourth quarter of 2021 primarily driven by rising interest rates resulting in increases in interest income from net loans, investment securities and other interest-earning assets of $81.6 million, $5.0 million and $3.5 million, respectively. Increases in the average balances for net loans and investment securities of $1,784.0 million and $408.4 million, respectively, driven in part by the Prudential Bancorp acquisition, also contributed to the increase in interest income. Interest expense from interest-bearing liabilities for the fourth quarter of 2022 increased by $29.8 million to $41.9 million in comparison to $12.1 million in the fourth quarter of 2021 primarily driven by rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings of $16.5 million and $13.3 million, respectively. An increase in the average balance for borrowings of $928.4 million in the fourth quarter of 2022 in comparison to the fourth quarter of 2021 also contributed to the increase in interest expense.

Total average interest-earning assets for the fourth quarter of 2022 was $24.8 billion, an increase of $99.2 million from the third quarter of 2022 primarily driven by the aforementioned increases in average net loans of $440.7 million, partially offset by decreases in average investment securities and average other interest-earning assets of $169.8 million and $171.9 million, respectively.

Total average interest-earning assets for the fourth quarter of 2022 increased by $516.9 million from the fourth quarter of 2021 driven in part by the Prudential Bancorp acquisition. Average net loans for the fourth quarter of 2022 were $20.0 billion, an increase of $1.8 billion from the same period in 2021. Included in average net loans for the fourth quarter of 2022 were Paycheck Protection Program ("PPP") loans with an average balance of $25.5 million, a decrease of $409.5 million from the fourth quarter of 2021. Compared to the fourth quarter of 2021, average other interest-earning assets decreased $1,649.6 million and average investment securities increased $408.4 million.

Total average interest-bearing liabilities increased $130.7 million, to $15.7 billion, in the fourth quarter of 2022 in comparison to $15.6 billion in the third quarter of 2022 driven by an increase in the average balance for borrowings of $666.2 million, partially offset by a decrease in the average balance for total interest-bearing deposits of $535.4 million.

Total average interest-bearing liabilities for the fourth quarter of 2022 increased $285.0 million in comparison to $15.5 billion in the fourth quarter of 2021, driven by an increase in the average balance for borrowings of $928.4 million, partially offset by a decrease in the average balance for total interest-bearing deposits of $643.5 million.

Asset Quality

In the fourth quarter of 2022, a provision for credit losses of $14.5 million was recorded in comparison to a provision for credit losses of $19.0 million in the third quarter of 2022, and a negative provision for credit losses of $5.0 million in the fourth quarter of 2021. Included in the third quarter of 2022 provision for credit losses was a CECL Day 1 provision for credit losses of $8.0 million for the acquired Prudential Bancorp loan portfolio. Excluding the CECL Day 1 Provision, the third quarter of 2022 provision for credit losses was $11.0 million. Excluding the CECL Day 1 Provision, the linked-quarter increase in the provision for credit losses of $3.5 million was primarily due to loan growth and changes to the macroeconomic outlook.

Non-performing assets were $177.7 million, or 0.66% of total assets, at December 31, 2022, in comparison to $198.6 million, or 0.76% at September 30, 2022, and $153.9 million, or 0.60% of total assets, at December 31, 2021.

Net charge-offs for the fourth quarter of 2022 were 0.23% of total average loans in comparison to 0.01% and 0.07% in the third quarter of 2022 and the fourth quarter of 2021, respectively. Net charge-offs of $11.7 million for the fourth quarter of 2022 were primarily due to a charge-off for a commercial office loan due to credit-related concerns.

Non-interest Income

Non-interest income before investment securities gains in the fourth quarter of 2022 was $54.3 million, a decrease of $4.9 million, or 8.3%, from the third quarter of 2022. The decrease in non-interest income was driven primarily by decreases in mortgage banking income, commercial customer swap fees, reflected in capital markets, overdraft fees and cash management fees of $1.6 million, $1.3 million, $1.1 million and $0.7 million, respectively.

Compared to the fourth quarter of 2021, non-interest income before investment securities gains in the fourth quarter of 2022 decreased $9.6 million, or 15.0%, from $63.9 million. The decrease in non-interest income was primarily due to decreases of $5.1 million in mortgage banking income, $3.8 million in other income, primarily due to a decline from equity method investments of $4.1 million, and $0.8 million in wealth management revenues.

Non-interest Expense

Non-interest expense, excluding merger-related expenses of $1.9 million, was $166.6 million in the fourth quarter of 2022, an increase of $4.0 million, or 2.5%, compared to $162.6 million, excluding merger-related expenses of $7.0 million, in the third quarter of 2022. The increase was primarily due to increases of $1.5 million in other outside services expense, $0.6 million in professional fees, $0.5 million in marketing expense, and $1.6 million for a contingent liability, $0.8 million for branch-related closures and $0.6 million in fraud-related losses which are reflected in other non-interest expenses, partially offset by a $1.6 million decrease in salaries and employee benefits expense.

Compared to the fourth quarter of 2021, non-interest expense, excluding merger-related expenses of $1.9 million, increased $12.5 million, or 8.1%, in the fourth quarter of 2022 primarily due to increases of $7.2 million in salaries and employee benefits expense, $1.2 million in other outside services expense, $1.0 million in professional fees, $0.9 million in marketing expense, $0.8 million in data processing and software expense, $0.5 million in intangible asset amortization expense related to the acquisition of Prudential Bancorp, and $0.8 million for branch-related closures reflected in other non-interest expense.

Income Tax Expense

For the full-year 2022, the effective tax rate was 17.3%, in comparison to 17.6% for the full-year of 2021.

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

Safe Harbor Statement

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

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

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2021, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022 and other current and periodic reports, which have been or will be filed with the Securities and Exchange Commission (the "SEC") and are or will be available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov).

Non-GAAP Financial Measures

The Corporation uses certain financial measures in this press release that have been derived from methods other than generally accepted accounting principles ("GAAP"). These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this press release.

FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
in thousands, except share data, per-share data and percentages
	Three months ended
	Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
		2022				2022				2022				2022				2021
Ending Balances
Investments	$	3,968,023			$	3,936,694			$	4,117,801			$	4,288,674			$	4,167,774
Net loans		20,279,547				19,695,199				18,920,950				18,476,119				18,325,350
Total assets		26,931,702				26,146,042				25,252,686				25,598,310				25,796,398
Deposits		20,649,538				21,376,554				21,143,866				21,541,174				21,573,499
Shareholders' equity		2,579,757				2,471,159				2,471,093				2,569,535				2,712,680
Average Balances
Investments	$	3,936,579			$	4,254,216			$	4,216,507			$	4,228,827			$	3,980,045
Net loans		20,004,513				19,563,825				18,637,175				18,383,118				18,220,550
Total assets		26,386,355				26,357,095				25,578,432				25,622,462				26,136,536
Deposits		21,027,656				21,788,052				21,523,713				21,480,183				21,876,938
Shareholders' equity		2,489,148				2,604,057				2,531,346				2,688,834				2,713,198
Income Statement
Net interest income	$	225,911			$	215,582			$	178,831			$	161,310			$	165,613
Provision for credit losses		14,513				18,958				1,500				(6,950	)			(5,000	)
Non-interest income		54,321				59,162				58,391				55,256				63,881
Non-interest expense		168,462				169,558				149,730				145,978				154,019
Income before taxes		97,257				86,228				85,992				77,538				80,475
Net income available to common shareholders		79,271				68,309				67,427				61,726				59,325
Pre-provision net revenue(1)		115,049				113,631				89,384				71,842				77,837
Per Share
Net income available to common shareholders (basic)	$	0.47			$	0.41			$	0.42			$	0.38			$	0.37
Net income available to common shareholders (diluted)	$	0.47			$	0.40			$	0.42			$	0.38			$	0.37
Operating net income available to common shareholders(1)	$	0.48			$	0.48			$	0.42			$	0.38			$	0.37
Cash dividends	$	0.21			$	0.15			$	0.15			$	0.15			$	0.22
Common shareholders' equity	$	14.24			$	13.61			$	14.15			$	14.79			$	15.70
Common shareholders' equity (tangible)(1)	$	10.90			$	10.26			$	10.81			$	11.44			$	12.35
Weighted average shares (basic)		167,504				167,353				160,920				160,588				161,210
Weighted average shares (diluted)		169,136				168,781				162,075				161,911				162,355
(1) Non-GAAP financial measure. Refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this press release.
	Three months ended
	Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
		2022				2022				2022				2022				2021
Asset Quality
Net (recoveries) charge offs to average loans		0.23	%			0.01	%			(0.08	) %			(0.02	) %			0.07	%
Non-performing loans to total loans		0.85	%			0.98	%			0.92	%			0.87	%			0.83	%
Non-performing assets to total assets		0.66	%			0.76	%			0.71	%			0.64	%			0.60	%
ACL - loans(1) to total loans		1.33	%			1.35	%			1.31	%			1.32	%			1.36	%
ACL - loans(1) to non-performing loans		157	%			138	%			143	%			151	%			164	%
Asset Quality, excluding PPP(2)(3)
Net (recoveries) charge offs to adjusted average loans		0.23	%			0.01	%			(0.08	) %			(0.02	) %			0.07	%
Non-performing loans to total adjusted loans		0.85	%			0.98	%			0.92	%			0.88	%			0.84	%
ACL - loans(1) to total adjusted loans		1.33	%			1.36	%			1.32	%			1.33	%			1.38	%
Profitability
Return on average assets		1.23	%			1.07	%			1.10	%			1.02	%			0.94	%
Operating return on average assets(2)		1.26	%			1.25	%			1.11	%			1.02	%			0.94	%
Return on average common shareholders' equity		13.70	%			11.24	%			11.57	%			10.03	%			9.34	%
Return on average common shareholders' equity (tangible)(2)		18.59	%			17.31	%			15.23	%			12.88	%			11.89	%
Net interest margin		3.69	%			3.54	%			3.04	%			2.78	%			2.77	%
Efficiency ratio(2)		58.1	%			57.8	%			61.4	%			65.8	%			65.2	%
Non-interest expenses to total average assets		2.53	%			2.55	%			2.35	%			2.31	%			2.34	%
Operating non-interest expenses to total average assets(2)		2.48	%			2.43	%			2.32	%			2.29	%			2.30	%
Capital Ratios
Tangible common equity ratio ("TCE")(2)		6.9	%			6.7	%			7.0	%			7.3	%			7.8	%
TCE ratio, (excluding AOCI)(2)(5)		8.2	%			8.3	%			8.2	%			7.9	%			7.8	%
Tier 1 leverage ratio(4)		9.4	%			9.2	%			9.1	%			8.9	%			8.6	%
Common equity Tier 1 capital ratio(4)		10.0	%			10.0	%			9.9	%			10.0	%			9.9	%
Tier 1 risk-based capital ratio(4)		10.8	%			10.9	%			10.8	%			10.9	%			10.9	%
Total risk-based capital ratio(4)		13.5	%			13.6	%			13.7	%			13.8	%			14.1	%
(1) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet ("OBS") credit exposures.
(2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release.
(3) Asset quality information excluding PPP loans.
(4) Regulatory capital ratios as of December 31, 2022 are preliminary and prior periods are actual.
(5) Tangible common equity ("TCE") ratio, excluding accumulated other comprehensive income ("AOCI")

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
		2022				2022				2022				2022				2021			2022			2021
ASSETS
Cash and due from banks	$	126,898			$	143,465			$	158,605			$	161,462			$	172,276			(11.5	) %		(26.3	) %
Other interest-earning assets		685,209				467,164				383,715				1,054,232				1,523,973			46.7	%		(55.0	) %
Loans held for sale		7,264				14,411				17,528				27,675				35,768			(49.6	) %		(79.7	) %
Investment securities		3,968,023				3,936,694				4,117,801				4,288,674				4,167,774			0.8	%		(4.8	) %
Net loans		20,279,547				19,695,199				18,920,950				18,476,119				18,325,350			3.0	%		10.7	%
Less: ACL - loans(1)		(269,366	)			(266,838	)			(248,564	)			(243,705	)			(249,001	)		(0.9	) %		(8.2	) %
Loans, net		20,010,181				19,428,361				18,672,386				18,232,414				18,076,349			3.0	%		10.7	%
Net, premises and equipment		225,141				221,496				211,639				218,257				220,357			1.6	%		2.2	%
Accrued interest receivable		91,579				72,821				64,457				55,102				57,451			25.8	%		59.4	%
Goodwill and intangible assets		560,824				561,495				537,700				537,877				538,053			(0.1	) %		4.2	%
Other assets		1,256,583				1,300,135				1,088,855				1,022,617				1,004,397			(3.3	) %		25.1	%
Total Assets	$	26,931,702			$	26,146,042			$	25,252,686			$	25,598,310			$	25,796,398			3.0	%		4.4	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits	$	20,649,538			$	21,376,554			$	21,143,866			$	21,541,174			$	21,573,499			(3.4	) %		(4.3	) %
Borrowings		2,871,207				1,424,681				1,013,315				1,008,934				1,038,109			101.5	%		N/M
Other liabilities		831,200				873,648				624,412				478,667				472,110			(4.9	) %		76.1	%
Total Liabilities		24,351,945				23,674,883				22,781,593				23,028,775				23,083,718			2.9	%		5.5	%
Shareholders' equity		2,579,757				2,471,159				2,471,093				2,569,535				2,712,680			4.4	%		(4.9	) %
Total Liabilities and Shareholders' Equity	$	26,931,702			$	26,146,042			$	25,252,686			$	25,598,310			$	25,796,398			3.0	%		4.4	%
LOANS, DEPOSITS AND BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage	$	7,693,835			$	7,554,509			$	7,417,036			$	7,289,376			$	7,279,080			1.8	%		5.7	%
Commercial and industrial		4,452,606				4,208,775				4,098,552				3,992,285				3,906,791			5.8	%		14.0	%
Real estate - residential mortgage		4,737,279				4,574,228				4,203,827				3,946,741				3,846,750			3.6	%		23.2	%
Real estate - home equity		1,102,838				1,110,103				1,108,808				1,098,171				1,118,248			(0.7	) %		(1.4	) %
Real estate - construction		1,269,925				1,273,097				1,177,446				1,210,340				1,139,779			(0.2	) %		11.4	%
Consumer		699,179				633,666				538,747				481,551				464,657			10.3	%		50.5	%
Equipment lease financing		260,143				255,060				254,897				253,521				236,344			2.0	%		10.1	%
Other(2)		43,344				53,671				49,214				39,857				32,448			(19.2	) %		33.6	%
Net loans before PPP		20,259,149				19,663,109				18,848,527				18,311,842				18,024,097			3.0	%		12.4	%
PPP		20,398				32,090				72,423				164,277				301,253			(36.4	) %		(93.2	) %
Total Net Loans	$	20,279,547			$	19,695,199			$	18,920,950			$	18,476,119			$	18,325,350			3.0	%		10.7	%
Deposits, by type:
Noninterest-bearing demand	$	7,006,388			$	7,372,896			$	7,530,777			$	7,528,391			$	7,370,963			(5.0	) %		(4.9	) %
Interest-bearing demand		5,410,903				5,676,600				5,403,805				5,625,286				5,819,539			(4.7	) %		(7.0	) %
Savings		6,434,621				6,563,003				6,406,051				6,479,196				6,403,995			(2.0	) %		0.5	%
Total demand and savings		18,851,912				19,612,499				19,340,633				19,632,873				19,594,497			(3.9	) %		(3.8	) %
Brokered		208,416				226,883				243,172				248,833				251,526			(8.1	) %		(17.1	) %
Time		1,589,210				1,537,172				1,560,061				1,659,468				1,727,476			3.4	%		(8.0	) %
Total Deposits	$	20,649,538			$	21,376,554			$	21,143,866			$	21,541,174			$	21,573,499			(3.4	) %		(4.3	) %
Borrowings, by type:
Federal funds purchased	$	191,000			$	136,000			$	20,000			$	—			$	—			40.4	%		N/M
Federal Home Loan Bank advances		1,250,000				265,500				—				—				—			N/M			N/M
Senior debt and subordinated debt		539,634				539,461				555,748				555,594				620,406			—	%		(13.0	) %
Other borrowings		890,573				483,720				437,567				453,340				417,703			84.1	%		113.2	%
Total Borrowings	$	2,871,207			$	1,424,681			$	1,013,315			$	1,008,934			$	1,038,109			101.5	%		N/M
N/M - Not meaningful
(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, except per share
		Three Months Ended																				% Change from						Year Ended
		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31				Sep 30			Dec 31			Dec 31
			2022				2022				2022				2022				2021			2022			2021				2022				2021			% Change
Interest Income:
Interest income		$	267,847			$	233,691			$	190,299			$	173,001			$	177,724			14.6	%		50.7	%		$	864,838			$	723,412			19.5	%
Interest expense			41,936				18,109				11,468				11,691				12,111			131.6	%		N/M				83,204				59,682			39.4	%
Net Interest Income			225,911				215,582				178,831				161,310				165,613			4.8	%		36.4	%			781,634				663,730			17.8	%
Provision for credit losses			14,513				18,958				1,500				(6,950	)			(5,000	)		(23.4	) %		N/M				28,021				(14,600	)		N/M
Net Interest Income after Provision			211,398				196,624				177,331				168,260				170,613			7.5	%		23.9	%			753,613				678,330			11.1	%
Non-Interest Income:
Commercial banking:
Merchant and card			7,223				7,601				7,355				6,097				6,588			(5.0	) %		9.6	%			28,276				26,121			8.3	%
Cash management			5,756				6,483				6,062				5,428				5,318			(11.2	) %		8.2	%			23,729				20,865			13.7	%
Capital markets			2,627				4,060				3,893				1,676				2,982			(35.3	) %		(11.9	) %			12,256				9,381			30.6	%
Other commercial banking			2,998				2,664				3,049				2,807				3,592			12.5	%		(16.5	) %			11,518				12,322			(6.5	) %
Total commercial banking			18,604				20,808				20,359				16,008				18,480			(10.6	) %		0.7	%			75,779				68,689			10.3	%
Consumer banking:
Card			6,331				6,278				6,067				5,796				5,953			0.8	%		6.3	%			24,472				23,505			4.1	%
Overdraft			3,364				4,463				3,881				3,772				3,896			(24.6	) %		(13.7	) %			15,480				12,844			20.5	%
Other consumer banking			2,380				2,534				2,524				2,106				2,280			(6.1	) %		4.4	%			9,544				9,195			3.8	%
Total consumer banking			12,075				13,275				12,472				11,674				12,129			(9.0	) %		(0.4	) %			49,496				45,544			8.7	%
Wealth management			17,531				17,610				18,274				19,428				18,285			(0.4	) %		(4.1	) %			72,843				71,798			1.5	%
Mortgage banking			2,140				3,720				3,768				4,576				7,243			(42.5	) %		(70.5	) %			14,204				33,576			(57.7	) %
Other			3,972				3,802				3,510				3,551				7,739			4.5	%		(48.7	) %			14,835				20,622			(28.1	) %
Non-interest income before investment securities gains (losses)			54,322				59,215				58,383				55,237				63,876			(8.3	) %		(15.0	) %			227,157				240,229			(5.4	) %
Investment securities gains (losses), net			(1	)			(53	)			8				19				5			98.1	%		(120.0	) %			(27	)			33,516			(100.1	) %
Total Non-Interest Income			54,321				59,162				58,391				55,256				63,881			(8.2	) %		(15.0	) %			227,130				273,745			(17.0	) %
Non-Interest Expense:
Salaries and employee benefits			92,733				94,283				85,404				84,464				85,506			(1.6	) %		8.5	%			356,884				329,138			8.4	%
Data processing and software			15,448				15,807				14,685				14,315				14,612			(2.3	) %		5.7	%			60,255				56,440			6.8	%
Net occupancy			14,061				14,025				13,587				14,522				14,366			0.3	%		(2.1	) %			56,195				53,799			4.5	%
Other outside services			10,860				9,361				8,764				8,167				9,637			16.0	%		12.7	%			37,152				34,194			8.7	%
Equipment			3,640				3,548				3,422				3,423				3,539			2.6	%		2.9	%			14,033				13,807			1.6	%
FDIC insurance			3,219				3,158				2,961				3,209				3,032			1.9	%		6.2	%			12,547				10,665			17.6	%
Professional fees			2,945				2,373				2,013				1,792				1,946			24.1	%		51.3	%			9,123				9,647			(5.4	) %
Marketing			2,380				1,859				1,326				1,320				1,477			28.0	%		61.1	%			6,885				5,275			30.5	%
Intangible amortization			688				690				177				176				146			(0.3	) %		N/M				1,731				589			N/M
Debt extinguishment			—				—				—				—				674			N/M			N/M				—				33,249			(100.0	) %
Merger-related expenses			1,894				7,006				1,027				401				—			(73.0	) %		N/M				10,328				—			N/M
Other			20,594				17,448				16,364				14,189				19,084			18.0	%		7.9	%			68,595				71,027			(3.4	) %
Total Non-Interest Expense			168,462				169,558				149,730				145,978				154,019			(0.6	) %		9.4	%			633,728				617,830			2.6	%
Income Before Income Taxes			97,257				86,228				85,992				77,538				80,475			12.8	%		20.9	%			347,015				334,245			3.8	%
Income tax expense			15,424				15,357				16,003				13,250				18,588			0.4	%		(17.0	) %			60,034				58,748			2.2	%
Net Income			81,833				70,871				69,989				64,288				61,887			15.5	%		32.2	%			286,981				275,497			4.2	%
Preferred stock dividends			(2,562	)			(2,562	)			(2,562	)			(2,562	)			(2,562	)		—	%		—	%			(10,248	)			(10,277	)		0.3	%
Net Income Available to Common Shareholders		$	79,271			$	68,309			$	67,427			$	61,726			$	59,325			16.0	%		33.6	%		$	276,733			$	265,220			4.3	%
		Three Months Ended																				% Change from						Year Ended
		Dec 31				Sep 30				Jun 30				Mar 31				Dec 31				Sep 30			Dec 31			Dec 31
			2022				2022				2022				2022				2021			2022			2021				2022				2021			% Change
PER SHARE:
Net income available to common shareholders:
Basic		$	0.47			$	0.41			$	0.42			$	0.38			$	0.37			14.6	%		27.0	%		$	1.69			$	1.63			3.7	%
Diluted		$	0.47			$	0.40			$	0.42			$	0.38			$	0.37			17.5	%		27.0	%		$	1.67			$	1.62			3.1	%
Cash dividends		$	0.21			$	0.15			$	0.15			$	0.15			$	0.22			40.0	%		(4.5	) %		$	0.66			$	0.64			3.1	%
Weighted average shares (basic)			167,504				167,353				160,920				160,588				161,210			0.1	%		3.9	%			164,119				162,233			1.2	%
Weighted average shares (diluted)			169,136				168,781				162,075				161,911				162,355			0.2	%		4.2	%			165,472				163,307			1.3	%

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
	Three months ended
	December 31, 2022											September 30, 2022											December 31, 2021
	Average								Yield/			Average								Yield/			Average								Yield/
	Balance				Interest(1)				Rate			Balance				Interest(1)				Rate			Balance				Interest(1)				Rate
ASSETS
Interest-earning assets:
Net loans	$	20,004,513			$	241,453			4.80	%		$	19,563,825			$	207,343			4.21	%		$	18,220,550			$	159,057			3.47	%
Investment securities		4,330,635				27,781			2.56	%			4,500,461				28,022			2.49	%			3,922,197				22,424			2.29	%
Loans held for sale		9,264				171			7.39	%			9,098				194			8.51	%			35,235				333			3.77	%
Other interest-earning assets		450,818				2,752			2.43	%			622,673				2,103			1.34	%			2,100,392				(905	)		(0.19	) %
Total Interest-Earning Assets		24,795,230				272,157			4.36	%			24,696,057				237,662			3.83	%			24,278,374				180,909			2.96	%
Noninterest-Earning assets:
Cash and due from banks		149,472											152,349											211,958
Premises and equipment		223,245											223,880											226,319
Other assets		1,488,684											1,545,812											1,677,028
Less: ACL - loans(2)		(270,276	)										(261,003	)										(257,143	)
Total Assets	$	26,386,355										$	26,357,095										$	26,136,536
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-Bearing liabilities:
Demand deposits	$	5,479,443			$	4,589			0.33	%		$	5,708,059			$	1,886			0.13	%		$	5,933,780			$	756			0.05	%
Savings deposits		6,466,775				11,539			0.71	%			6,681,713				3,414			0.20	%			6,413,638				992			0.06	%
Brokered deposits		215,729				1,947			3.58	%			247,105				1,346			2.16	%			256,192				220			0.34	%
Time deposits		1,554,885				4,302			1.10	%			1,615,384				3,404			0.84	%			1,756,672				3,928			0.89	%
Total Interest-Bearing Deposits		13,716,832				22,377			0.65	%			14,252,261				10,050			0.28	%			14,360,282				5,896			0.16	%
Borrowings		2,025,522				19,559			3.83	%			1,359,348				8,060			2.38	%			1,097,095				6,216			2.29	%
Total Interest-Bearing Liabilities		15,742,354				41,936			1.06	%			15,611,609				18,110			0.47	%			15,457,377				12,112			0.31	%
Noninterest-Bearing liabilities:
Demand deposits		7,310,824											7,535,791											7,516,656
Other		844,029											605,638											449,305
Total Liabilities		23,897,207											23,753,038											23,423,338
Total Deposits/Cost of Deposits		21,027,656							0.42	%			21,788,052							0.18	%			21,876,938							0.11	%
Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")		23,053,178							0.72	%			23,147,400							0.31	%			22,974,033							0.21	%
Shareholders' equity		2,489,148											2,604,057											2,713,198
Total Liabilities and Shareholders' Equity	$	26,386,355										$	26,357,095										$	26,136,536
Net interest income/net interest margin (fully taxable equivalent)						230,221			3.69	%							219,552			3.54	%							168,797			2.77	%
Tax equivalent adjustment						(4,310	)										(3,970	)										(3,184	)
Net Interest Income					$	225,911										$	215,582										$	165,613
(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 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
		2022			2022			2022			2022			2021		2022			2021
Loans, by type:
Real estate - commercial mortgage	$	7,696,997		$	7,566,259		$	7,340,417		$	7,294,914		$	7,157,906		1.7	%		7.5	%
Commercial and industrial		4,347,406			4,201,399			4,040,587			3,986,900			3,898,559		3.5	%		11.5	%
Real estate - residential mortgage		4,643,784			4,485,649			4,052,666			3,887,428			3,773,156		3.5	%		23.1	%
Real estate - home equity		1,106,325			1,099,487			1,118,494			1,106,319			1,122,042		0.6	%		(1.4	) %
Real estate - construction		1,209,998			1,268,590			1,188,932			1,137,649			1,117,592		(4.6	) %		8.3	%
Consumer		679,108			604,634			485,095			471,129			462,346		12.3	%		46.9	%
Equipment lease financing		255,291			252,810			253,659			236,388			238,349		1.0	%		7.1	%
Other(1)		40,075			35,823			42,476			36,277			15,558		11.9	%		N/M
Net loans before PPP		19,978,984			19,514,651			18,522,326			18,157,004			17,785,508		2.4	%		12.3	%
PPP		25,529			49,174			114,849			226,114			435,042		(48.1	) %		(94.1	) %
Total Net Loans	$	20,004,513		$	19,563,825		$	18,637,175		$	18,383,118		$	18,220,550		2.3	%		9.8	%
Deposits, by type:
Noninterest-bearing demand	$	7,310,824		$	7,535,791		$	7,647,618		$	7,431,235		$	7,516,656		(3.0	) %		(2.7	) %
Interest-bearing demand		5,479,443			5,708,059			5,597,975			5,664,987			5,933,780		(4.0	) %		(7.7	) %
Savings		6,466,775			6,681,713			6,425,634			6,436,548			6,413,638		(3.2	) %		0.8	%
Total demand and savings		19,257,042			19,925,563			19,671,227			19,532,770			19,864,074		(3.4	) %		(3.1	) %
Brokered		215,729			247,105			244,200			250,350			256,192		(12.7	) %		(15.8	) %
Time		1,554,885			1,615,384			1,608,286			1,697,063			1,756,672		(3.7	) %		(11.5	) %
Total Deposits	$	21,027,656		$	21,788,052		$	21,523,713		$	21,480,183		$	21,876,938		(3.5	) %		(3.9	) %
Borrowings, by type:
Federal funds purchased	$	261,737		$	96,965		$	2,857		$	—		$	—		N/M			N/M
Federal Home Loan Bank advances		564,692			206,152			—			—			—		N/M			N/M
Senior debt and subordinated debt		539,550			554,735			555,701			608,961			622,108		(2.7	) %		(13.3	) %
Other borrowings		659,543			501,496			445,261			424,854			474,987		31.5	%		38.9	%
Total Borrowings	$	2,025,522		$	1,359,348		$	1,003,819		$	1,033,815		$	1,097,095		49.0	%		84.6	%
(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
		2022											2021
		Average								Yield/			Average								Yield/
		Balance				Interest(1)				Rate			Balance				Interest(1)				Rate
ASSETS
Interest-earning assets:
Net loans		$	19,152,740			$	765,603			4.00	%		$	18,627,787			$	644,387			3.46	%
Investment securities			4,364,627				106,115			2.43	%			3,673,250				86,325			2.35	%
Loans held for sale			14,974				866			5.78	%			39,211				1,302			3.32	%
Other interest-earning assets			814,731				7,249			0.89	%			2,014,954				3,694			0.18	%
Total Interest-Earning Assets			24,347,072				879,833			3.61	%			24,355,202				735,708			3.02	%
Noninterest-Earning assets:
Cash and due from banks			156,050											165,942
Premises and equipment			220,982											228,708
Other assets			1,505,277											1,686,053
Less: ACL - loans(2)			(257,897	)										(265,572	)
Total Assets		$	25,971,484										$	26,170,333
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-Bearing liabilities:
Demand deposits		$	5,593,942			$	8,219			0.15	%		$	5,979,479			$	3,662			0.06	%
Savings deposits			6,458,165				16,642			0.26	%			6,306,967				4,936			0.08	%
Brokered deposits			262,359				4,097			1.56	%			286,901				1,096			0.38	%
Time deposits			1,617,804				14,871			0.92	%			1,939,446				20,311			1.05	%
Total Interest-Bearing Deposits			13,932,270				43,829			0.31	%			14,512,793				30,005			0.21	%
Total borrowings			1,358,357				39,375			2.89	%			1,297,963				29,677			2.29	%
Total Interest-Bearing Liabilities			15,290,627				83,204			0.54	%			15,810,756				59,682			0.38	%
Noninterest-Bearing liabilities:
Demand deposits			7,522,304											7,211,153
Other			598,230											462,478
Total Liabilities			23,411,161											23,484,387
Total Deposits/Cost of Deposits			21,454,574							0.20	%			21,723,946							0.14	%
Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")			22,812,931							0.36	%			23,021,909							0.26	%
Shareholders' equity			2,560,323											2,685,946
Total Liabilities and Shareholders' Equity		$	25,971,484										$	26,170,333
Net interest income/net interest margin (fully taxable equivalent)							796,629			3.27	%							676,026			2.78	%
Tax equivalent adjustment							(14,995	)										(12,296	)
Net Interest Income						$	781,634										$	663,730
(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 BORROWINGS DETAIL (UNAUDITED):
dollars in thousands
	Year Ended December 31
		2022			2021			% Change
Loans, by type:
Real estate - commercial mortgage	$	7,523,806		$	7,149,712			5.2	%
Commercial and industrial		4,126,916			3,932,351			4.9	%
Real estate - residential mortgage		4,261,527			3,501,072			21.7	%
Real estate - home equity		1,101,142			1,141,042			(3.5	) %
Real estate - construction		1,178,550			1,078,350			9.3	%
Consumer		569,305			456,427			24.7	%
Equipment lease financing		249,595			252,104			(1.0	) %
Other(1)		38,682			(3,776	)		N/M
Net loans before PPP		19,049,523			17,507,282			8.8	%
PPP		103,217			1,120,505			(90.8	) %
Total Net Loans	$	19,152,740		$	18,627,787			2.8	%
Deposits, by type:
Noninterest-bearing demand	$	7,522,304		$	7,211,153			4.3	%
Interest-bearing demand		5,593,942			5,979,479			(6.4	) %
Savings		6,458,165			6,306,967			2.4	%
Total demand and savings		19,574,411			19,497,599			0.4	%
Brokered		262,359			286,901			(8.6	) %
Time		1,617,804			1,939,446			(16.6	) %
Total Deposits	$	21,454,574		$	21,723,946			(1.2	) %
Borrowings, by type:
Federal funds purchased	$	91,125		$	—			N/M
Federal Home Loan Bank advances		194,295			126,677			53.4	%
Senior debt and subordinated debt		564,337			657,386			(14.2	) %
Other borrowings		508,600			513,900			(1.0	) %
Total Borrowings	$	1,358,357		$	1,297,963			4.7	%
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
	Dec 31				Sep 30				Jun 30				Mar 31				Dec 31				Dec 31				Dec 31
		2022				2022				2022				2022				2021				2022				2021
Allowance for credit losses related to net loans:
Balance at beginning of period	$	266,838			$	248,564			$	243,705			$	249,001			$	256,727			$	249,001			$	277,567
CECL Day 1 provision expense		—				7,954				—				—				—				7,954				—
Initial purchased credit deteriorated loans		—				1,135				—				—				—				1,135				—
Loans charged off:
Commercial and industrial		(179	)			(1,783	)			(201	)			(227	)			(9,417	)			(2,390	)			(15,337	)
Real estate - commercial mortgage		(12,235	)			(86	)			—				(152	)			(369	)			(12,473	)			(8,726	)
Consumer and home equity		(1,311	)			(1,172	)			(877	)			(1,052	)			(828	)			(4,412	)			(3,309	)
Real estate - residential mortgage		—				—				(66	)			—				—				(66	)			(1,290	)
Real estate - construction		—				—				—				—				—				—				(39	)
Equipment lease financing and other		(505	)			(683	)			(474	)			(469	)			(380	)			(2,131	)			(2,251	)
Total loans charged off		(14,230	)			(3,724	)			(1,618	)			(1,900	)			(10,994	)			(21,472	)			(30,952	)
Recoveries of loans previously charged off:
Commercial and industrial		961				2,213				739				1,980				5,795				5,893				9,587
Real estate - commercial mortgage		183				29				3,536				112				1,007				3,860				2,474
Consumer and home equity		683				682				762				454				767				2,581				2,345
Real estate - residential mortgage		10				101				92				222				89				425				375
Real estate - construction		530				—				12				32				77				574				1,412
Equipment lease financing and other		132				247				226				154				283				759				953
Recoveries of loans previously charged off		2,499				3,272				5,367				2,954				8,018				14,092				17,146
Net loans recovered (charged off)		(11,731	)			(452	)			3,749				1,054				(2,976	)			(7,380	)			(13,806	)
Provision for credit losses		14,259				9,637				1,110				(6,350	)			(4,750	)			18,656				(14,760	)
Balance at end of period	$	269,366			$	266,838			$	248,564			$	243,705			$	249,001			$	269,366			$	249,001
Net (recoveries) charge offs to average loans		0.23	%			0.01	%			(0.08	) %			(0.02	) %			0.07	%			0.04	%			0.07	%
Provision for credit losses related to OBS Credit Exposures
Provision for credit losses	$	254			$	1,367			$	390			($	600	)		($	250	)
NON-PERFORMING ASSETS:
Non-accrual loans	$	144,443			$	178,204			$	162,530			$	136,799			$	143,666
Loans 90 days past due and accruing		27,463				14,559				11,016				24,182				8,453
Total non-performing loans		171,906				192,763				173,546				160,981				152,119
Other real estate owned		5,790				5,877				4,786				2,014				1,817
Total non-performing assets	$	177,696			$	198,640			$	178,332			$	162,995			$	153,936
NON-PERFORMING LOANS, BY TYPE:
Commercial and industrial	$	28,288			$	29,831			$	44,713			$	30,193			$	30,629
Real estate - commercial mortgage		72,634				96,281				59,940				64,190				54,044
Real estate - residential mortgage		46,509				41,597				42,922				39,308				39,399
Consumer and home equity		9,800				10,016				10,552				11,465				11,505
Real estate - construction		1,368				1,456				1,357				672				901
Equipment lease financing and other		13,307				13,582				14,062				15,153				15,641
Total non-performing loans	$	171,906			$	192,763			$	173,546			$	160,981			$	152,119

FULTON FINANCIAL CORPORATION
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
(dollars in thousands, except per share data and percentages)
Explanatory note:	This press release contains supplemental financial information, as detailed below, that 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
							2022				2022				2022				2022				2021
Operating net income available to common shareholders
Net income available to common shareholders						$	79,271			$	68,309			$	67,427			$	61,726			$	59,325
Plus: Core deposit intangible amortization							514				514				—				—				—
Plus: Merger-related expenses							1,894				7,006				1,027				401				—
Plus: CECL Day 1 Provision expense							—				7,954				—				—				—
Less: Tax impact of adjustments							(506	)			(3,250	)			(216	)			(84	)			—
Operating net income available to common shareholders (numerator)						$	81,173			$	80,533			$	68,238			$	62,043			$	59,325
Weighted average shares (diluted) (denominator)							169,136				168,781				162,075				161,911				162,355
Operating net income available to common shareholders, per share (diluted)						$	0.48			$	0.48			$	0.42			$	0.38			$	0.37
Common shareholders' equity (tangible), per share
Shareholders' equity						$	2,579,757			$	2,471,159			$	2,471,093			$	2,569,535			$	2,712,680
Less: Preferred stock							(192,878	)			(192,878	)			(192,878	)			(192,878	)			(192,878	)
Less: Goodwill and intangible assets							(560,824	)			(561,495	)			(537,700	)			(537,877	)			(538,053	)
Tangible common shareholders' equity (numerator)						$	1,826,055			$	1,716,786			$	1,740,515			$	1,838,780			$	1,981,749
Shares outstanding, end of period (denominator)							167,599				167,399				161,057				160,669				160,490
Common shareholders' equity (tangible), per share						$	10.90			$	10.26			$	10.81			$	11.44			$	12.35
Operating return on average assets
Net income						$	81,833			$	70,871			$	69,989			$	64,288			$	61,887
Plus: Core deposit intangible amortization							514				514				—				—				—
Plus: Merger-related expenses							1,894				7,006				1,027				401				—
Plus: CECL Day 1 Provision expense							—				7,954				—				—				—
Less: Tax impact of adjustments							(506	)			(3,250	)			(216	)			(84	)			—
Operating net income (numerator)						$	83,735			$	83,095			$	70,800			$	64,605			$	61,887
Total average assets (denominator)						$	26,386,355			$	26,357,095			$	25,578,432			$	25,622,462			$	26,136,536
Operating return on average assets							1.26	%			1.25	%			1.11	%			1.02	%			0.94	%
Return on average common shareholders' equity (tangible)
Net income available to common shareholders						$	79,271			$	68,309			$	67,427			$	61,726			$	59,325
Plus: Intangible amortization							688				690				177				176				146
Plus: Merger-related expenses							1,894				7006				1027				401				—
Plus: CECL Day 1 Provision expense							—				7,954				—				—				—
Less: Tax impact of adjustments							(542	)			(3,287	)			(253	)			(122	)			(32	)
Operating net income available to common shareholders (numerator)						$	81,311			$	80,672			$	68,378			$	62,181			$	59,439
Average shareholders' equity						$	2,489,148			$	2,604,057			$	2,531,346			$	2,688,834			$	2,713,198
Less: Average preferred stock							(192,878	)			(192,878	)			(192,878	)			(192,878	)			(192,878	)
Less: Average goodwill and intangible assets							(561,219	)			(562,285	)			(537,786	)			(537,976	)			(536,638	)
Average tangible common shareholders' equity (denominator)						$	1,735,051			$	1,848,894			$	1,800,682			$	1,957,980			$	1,983,682
Return on average common shareholders' equity (tangible)							18.59	%			17.31	%			15.23	%			12.88	%			11.89	%
						Three months ended
						Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
							2022				2022				2022				2022				2021
Tangible common equity to tangible assets (TCE Ratio)
Shareholders' equity						$	2,579,757			$	2,471,159			$	2,471,093			$	2,569,535			$	2,712,680
Less: Preferred stock							(192,878	)			(192,878	)			(192,878	)			(192,878	)			(192,878	)
Less: Goodwill and intangible assets							(560,824	)			(561,495	)			(537,700	)			(537,877	)			(538,053	)
Tangible common shareholders' equity (numerator)						$	1,826,055			$	1,716,786			$	1,740,515			$	1,838,780			$	1,981,749
Total assets						$	26,931,702			$	26,146,042			$	25,252,686			$	25,598,310			$	25,796,398
Less: Goodwill and intangible assets							(560,824	)			(561,495	)			(537,700	)			(537,877	)			(538,053	)
Total tangible assets (denominator)						$	26,370,878			$	25,584,547			$	24,714,986			$	25,060,433			$	25,258,345
Tangible common equity to tangible assets							6.92	%			6.71	%			7.04	%			7.34	%			7.85	%
Tangible common equity to tangible assets (TCE Ratio) excluding AOCI
Shareholders' equity						$	2,579,757			$	2,471,159			$	2,471,093			$	2,569,535			$	2,712,680
Less: Preferred stock							(192,878	)			(192,878	)			(192,878	)			(192,878	)			(192,878	)
Less: Accumulated other comprehensive income (loss)							(385,476	)			(442,947	)			(304,210	)			(158,855	)			27,411
Less: Goodwill and intangible assets							(560,824	)			(561,495	)			(537,700	)			(537,877	)			(538,053	)
Tangible common shareholders' equity (numerator)						$	2,211,531			$	2,159,733			$	2,044,725			$	1,997,635			$	1,954,338
Total assets						$	26,931,702			$	26,146,042			$	25,252,686			$	25,598,310			$	25,796,398
Less: Goodwill and intangible assets							(560,824	)			(561,495	)			(537,700	)			(537,877	)			(538,053	)
Plus: AOCI - unrealized losses/(gains) on AFS investments securities							632,456				368,196				249,424				112,965				(40,444	)
Total tangible assets (denominator)						$	27,003,334			$	25,952,743			$	24,964,410			$	25,173,398			$	25,217,901
Tangible common equity to tangible assets, excluding AOCI							8.19	%			8.32	%			8.19	%			7.94	%			7.75	%
Efficiency ratio
Non-interest expense						$	168,462			$	169,558			$	149,730			$	145,978			$	154,019
Less: Amortization of tax credit investments							(696	)			(696	)			(696	)			(696	)			(1,547	)
Less: Merger-related expenses							(1,894	)			(7,006	)			(1,027	)			(401	)			—
Less: Intangible amortization							(688	)			(690	)			(177	)			(176	)			(146	)
Less: Debt extinguishment costs							—				—				—				—				(674	)
Non-interest expense (numerator)						$	165,184			$	161,166			$	147,830			$	144,705			$	151,652
Net interest income						$	225,911			$	215,582			$	178,831			$	161,310			$	165,613
Tax equivalent adjustment							4,310				3,970				3,427				3,288				3,184
Plus: Total non-interest income							54,321				59,162				58,391				55,256				63,881
Less: Investment securities (gains) losses, net							1				53				(8	)			(19	)			(5	)
Total revenue (denominator)						$	284,543			$	278,767			$	240,641			$	219,835			$	232,673
Efficiency ratio							58.1	%			57.8	%			61.4	%			65.8	%			65.2	%
Operating non-interest expenses to total average assets
Non-interest expense						$	168,462			$	169,558			$	149,730			$	145,978			$	154,019
Less: Amortization of tax credit investments							(696	)			(696	)			(696	)			(696	)			(1,547	)
Less: Intangible amortization							(688	)			(690	)			(177	)			(176	)			(146	)
Less: Merger-related expenses							(1,894	)			(7,006	)			(1,027	)			(401	)			—
Less: Debt extinguishment costs							—				—				—				—				(674	)
Non-interest expense (numerator)						$	165,184			$	161,166			$	147,830			$	144,705			$	151,652
Total average assets (denominator)						$	26,386,355			$	26,357,095			$	25,578,432			$	25,622,462			$	26,136,536
Operating non-interest expenses to total average assets							2.48	%			2.43	%			2.32	%			2.29	%			2.30	%
						Three months ended
						Dec 31				Sep 30				Jun 30				Mar 31				Dec 31
							2022				2022				2022				2022				2021
Asset Quality, excluding PPP
Net loans recovered (charged-off) (numerator)						$	(11,731	)		$	(452	)		$	3,749			$	1,054			$	(2,976	)
Average net loans						$	20,004,513			$	19,563,825			$	18,637,175			$	18,383,118			$	18,220,550
Less: Average PPP loans							(25,529	)			(49,174	)			(114,849	)			(226,114	)			(435,042	)
Total adjusted average loans (denominator)						$	19,978,984			$	19,514,651			$	18,522,326			$	18,157,004			$	17,785,508
Net charge-offs (recoveries) to adjusted average loans							0.23	%			0.01	%			(0.08	) %			(0.02	) %			0.07	%
Non-performing loans (numerator)						$	171,906			$	192,763			$	173,546			$	160,981			$	152,119
Net loans						$	20,279,547			$	19,695,199			$	18,920,950			$	18,476,119			$	18,325,350
Less: PPP loans							(20,398	)			(32,090	)			(72,423	)			(164,277	)			(301,253	)
Total adjusted loans (denominator)						$	20,259,149			$	19,663,109			$	18,848,527			$	18,311,842			$	18,024,097
Non-performing loans to total adjusted loans							0.85	%			0.98	%			0.92	%			0.88	%			0.84	%
ACL - loans (numerator)						$	269,366			$	266,838			$	248,564			$	243,705			$	249,001
Net loans						$	20,279,547			$	19,695,199			$	18,920,950			$	18,476,119			$	18,325,350
Less: PPP loans							(20,398	)			(32,090	)			(72,423	)			(164,277	)			(301,253	)
Total adjusted loans (denominator)						$	20,259,149			$	19,663,109			$	18,848,527			$	18,311,842			$	18,024,097
ACL - loans to total adjusted loans							1.33	%			1.36	%			1.32	%			1.33	%			1.38	%
Pre-provision net revenue
Net interest income						$	225,911			$	215,582			$	178,831			$	161,310			$	165,613
Non-interest income							54,321				59,162				58,391				55,256				63,881
Less: Investment securities (gains) losses, net							1				53				(8	)			(19	)			(5	)
Total revenue						$	280,233			$	274,797			$	237,214			$	216,547			$	229,489
Non-interest expense						$	168,462			$	169,558			$	149,730			$	145,978			$	154,019
Less: Amortization on tax credit investments							(696	)			(696	)			(696	)			(696	)			(1,547	)
Less: Merger-related expenses							(1,894	)			(7,006	)			(1,027	)			(401	)			—
Less: Intangible amortization							(688	)			(690	)			(177	)			(176	)			(146	)
Less: Debt extinguishment							—				—				—				—				(674	)
Total non-interest expense						$	165,184			$	161,166			$	147,830			$	144,705			$	151,652
Pre-provision net revenue						$	115,049			$	113,631			$	89,384			$	71,842			$	77,837
Note: numbers may not sum due to rounding.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230117006074/en/

Media: Lacey Dean (717) 735-8688

Investor: Matt Jozwiak (717) 327-2657

Source: Fulton Financial Corporation

FAQ

What was Fulton's net income for Q4 2022?

Fulton's net income for Q4 2022 was $79.3 million.

How much did Fulton's annual net income increase in 2022?

Fulton's annual net income increased by 4.3% in 2022.

What contributed to the rise in Fulton's net interest income?

The rise in net interest income was primarily due to increasing interest rates and higher loan balances.

What was the change in Fulton's non-interest income for Q4 2022?

Non-interest income decreased by 8.3% in Q4 2022 compared to Q3 2022.

How did the Prudential Bancorp acquisition affect Fulton?

The acquisition of Prudential Bancorp positively impacted Fulton's financial performance, contributing to revenue growth.