Fulton Financial Corporation Announces Third Quarter 2022 Results

Rhea-AI Summary

Fulton Financial Corporation (NASDAQ:FULT) reported a third quarter net income of $68.3 million, or $0.40 per diluted share, marking a 1.3% increase from the previous quarter. For the nine months ending September 30, 2022, net income was $197.5 million, a 4.1% decrease compared to the same period in 2021. The strong quarterly performance was attributed to rising interest rates boosting net interest income to $215.6 million, a 25.9% increase year-over-year, aided by the July acquisition of Prudential Bancorp.

Positive

• Quarterly net income of $68.3 million, a 1.3% increase from Q2 2022.
• Net interest income rose to $215.6 million, a 25.9% increase from Q3 2021.
• Acquisition of Prudential Bancorp contributed positively, adding approximately $10.9 million in interest income.

Negative

• Net income for the nine months ended September 30, 2022, decreased by $8.4 million, or 4.1%, compared to the same period in 2021.
• Provision for credit losses significantly increased to $19 million compared to $1.5 million in Q2 2022.
• Non-performing assets rose to $198.6 million, or 0.76% of total assets, from $178.3 million in Q2 2022.

LANCASTER, Pa.--(BUSINESS WIRE)-- Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $68.3 million, or $0.40 per diluted share, for the third quarter of 2022, an increase of $0.9 million, or 1.3%, in comparison to the second quarter of 2022. The Corporation reported net income available to common shareholders of $197.5 million, or $1.20 per diluted share, for the nine months ended September 30, 2022, a decrease of $8.4 million or 4.1%, in comparison to the nine months ended September 30, 2021. The results for the third quarter of 2022 include the impact of the consummation of the acquisition by the Corporation of Prudential Bancorp, Inc. ("Prudential Bancorp") on July 1, 2022.

"I'm pleased to report that we had a strong third quarter, with operating earnings being at an all-time high for Fulton," said E. Phillip Wenger, Chairman and CEO. "As I retire from my current role on December 31, I have tremendous confidence in my successor, Curt Myers, our senior management team and directors, and the more than 3,300 talented team members to continue to change lives for the better for our customers and our shareholders."

"We are grateful to Phil Wenger for all the contributions he has made over his 43 years of service to Fulton, and we look forward to carrying on his legacy" said Curtis J. Myers, President and COO. "As Phil noted, our third quarter performance was strong, driven primarily by increased net interest income, which was helped by rising interest rates, good loan growth, consistent fee income, and the effect of our acquisition of Prudential Bancorp completed on July 1, 2022."

Operating net income available to common shareholders was $80.5 million, or $0.48 per diluted share, for the third quarter of 2022, calculated as shown below.

						Three months ended
(in thousands except per share data)						September 30, 2022
Net income available to common shareholders						$68,309
Plus: Core deposit intangible amortization, net of tax						406
Plus: Merger-related expenses, net of tax						5,535
Plus: Current expected credit losses ("CECL") day 1 provision expense, net of tax						6,283
Operating net income available to common shareholders						$80,533
Weighted average shares (diluted) (denominator)						168,781
Operating net income available to common shareholders per share (diluted)						$0.48

Net Interest Income and Balance Sheet

Net interest income for the third quarter of 2022 was $215.6 million, an increase of $36.8 million in comparison to the second quarter of 2022. The net interest margin for the third quarter of 2022 increased 50 basis points, to 3.54%, in comparison to 3.04% in the second 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 and investment securities of $41.3 million and $1.7 million, respectively. An increase in the average balances for net loans and investment securities of $926.7 million and $102.0 million, respectively, driven in part by the Prudential Bancorp acquisition, also contributed to the increase in interest income. Interest income from Prudential Bancorp was approximately $10.9 million in the third quarter of 2022. Interest expense from interest-bearing liabilities for the third quarter of 2022 increased by $6.6 million in comparison to $11.5 million in the second quarter of 2022, and included $2.7 million from Prudential Bancorp.

For the third quarter of 2022, net interest income was $215.6 million, an increase of $44.3 million, or 25.9%, in comparison to the third quarter of 2021 primarily driven by higher interest rates resulting in an increase in interest income from net loans of $43.6 million. An increase in the average balances for net loans and investment securities of $1,149.7 million and $678.9 million, respectively, driven in part by the Prudential Bancorp acquisition, also contributed to the increase in interest income. Interest income from Prudential Bancorp was approximately $10.9 million in the third quarter of 2022. Interest expense from interest-bearing liabilities for the third quarter of 2022 increased by $5.3 million in comparison to $12.8 million in the third quarter of 2021, and included $2.7 million from Prudential Bancorp.

Total average interest-earning assets for the third quarter of 2022 was $24.7 billion, an increase of $709.0 million from the second quarter of 2022, primarily driven by the aforementioned increases in average net loans of $926.7 million and average investment securities of $102.0 million, partially offset by a decrease in other interest-earning assets of $315.6 million.

Total average interest-earning assets for the third quarter of 2022 increased by $122.6 million from the third quarter of 2021. Average net loans for the third quarter of 2022 were $19.6 billion, an increase of $1,149.7 million from the same period in 2021. Included in average net loans for the third quarter of 2022 were Paycheck Protection Program ("PPP") loans with an average balance of $49.2 million, a decrease of $801.4 million from the third quarter of 2021. Compared to the third quarter of 2021, average other interest-earning assets decreased $1,678.7 million and average investment securities increased $678.9 million, respectively.

Total average interest-bearing liabilities increased $731.7 million, to $15.6 billion, in the third quarter of 2022 in comparison to $14.9 billion in the second quarter of 2022, due in part to the Prudential Bancorp acquisition, and driven overall by increases in average balances of interest-bearing deposits, long-term borrowings and short-term borrowings of $376.2 million, $204.5 million and $151.0 million, respectively.

Total average interest-bearing liabilities for the third quarter of 2022 decreased $194.3 million in comparison to $15.8 billion in the third quarter of 2021, driven by a decrease in the average total interest-bearing deposits of $431.6 million, partially offset by increases in average balances of long-term borrowings and short-term borrowings of $134.2 million and $103.1 million, respectively.

Asset Quality

In the third quarter of 2022, a provision for credit losses of $19.0 million was recorded in comparison to a provision for credit losses of $1.5 million in the second quarter of 2022, and a negative provision for credit losses of $0.6 million in the third 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 (the "CECL "Day 1" Provision"). Excluding the CECL "Day 1" Provision for credit losses, the provision for credit losses was $11.0 million and was primarily due to an increase in non-performing loans, as well as increases in reserves for the office building and residential mortgage loan portfolios.

Non-performing assets were $198.6 million, or 0.76% of total assets, at September 30, 2022, in comparison to $178.3 million, or 0.71% at June 30, 2022, and $152.1 million, or 0.58% of total assets, at September 30, 2021.

Annualized net charge-offs (recoveries) for the third quarter of 2022, was 0.01% of total average loans, in comparison to (0.08%) and (0.05)% in the second quarter of 2022 and the third quarter of 2021, respectively.

Non-interest Income

Non-interest income before investment securities gains in the third quarter of 2022 was $59.2 million, an increase of $0.8 million, or 1.4%, from the second quarter of 2022. The increase in non-interest income was driven primarily by an increase of $0.8 million in consumer banking fees.

Compared to the third quarter of 2021, non-interest income before investment securities gains in the third quarter of 2022 decreased $3.4 million, or 5.4%, from $62.6 million. The decrease in non-interest income was due to decreases of $5.8 million in mortgage banking income, $2.2 million in other income primarily due to equity method investments, and $0.9 million in wealth management revenues, partially offset by increases of $4.1 million in commercial banking revenues and $1.5 million in consumer banking fees.

Non-interest Expense

Non-interest expense, excluding merger-related expenses of $7.0 million and intangible amortization of $0.7 million, was $161.9 million in the third quarter of 2022, an increase of $13.3 million, or 9.0%, compared to the second quarter of 2022. The increase was primarily due to an $8.9 million increase in salaries and employee benefits expense that included $2.6 million in additional performance-based accruals and $2.0 million of salaries and employee benefits costs from Prudential Bancorp. In addition, compared to the second quarter of 2022, data processing and software expense increased $1.1 million, charitable contributions, reflected in other expense, increased $0.8 million due to contributions made to the Fulton Forward Foundation, and other outside services increased $0.6 million. The total impact on non-interest expense from Prudential Bancorp in the third quarter of 2022 was $3.6 million.

Compared to the third quarter of 2021, non-interest expense, excluding merger-related expenses of $7.0 million and intangible amortization of $0.7 million, increased $17.4 million, or 12.1%, in the third quarter of 2022, primarily due to an increase in salaries and employee benefits expense of $11.6 million. In addition, compared to the third quarter of 2021, data processing and software expense increased $1.5 million, other outside services increased $1.5 million and net occupancy costs increased $1.1 million.

Income Tax Expense

For the third quarter of 2022, the effective tax rate was 17.8%, 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 and June 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 per-share data and percentages
	Three months ended
	Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
	2022				2022				2022				2021				2021
Ending Balances
Investments	$	3,936,694			$	4,117,801			$	4,288,674			$	4,167,774			$	4,000,760
Net loans		19,695,199				18,920,950				18,476,119				18,325,350				18,269,407
Total assets		26,146,042				25,252,686				25,598,310				25,796,398				26,390,832
Deposits		21,376,554				21,143,866				21,541,174				21,573,499				22,074,041
Shareholders' equity		2,471,159				2,471,093				2,569,535				2,712,680				2,699,818
Average Balances
Investments	$	4,254,216			$	4,216,507			$	4,228,827			$	3,980,045			$	3,914,627
Net loans		19,563,825				18,637,175				18,383,118				18,220,550				18,414,153
Total assets		26,357,095				25,578,432				25,622,462				26,136,536				26,440,876
Deposits		21,788,052				21,523,713				21,480,183				21,876,938				22,123,480
Shareholders' equity		2,604,057				2,531,346				2,688,834				2,713,198				2,722,833
Income Statement
Net interest income	$	215,582			$	178,831			$	161,310			$	165,613			$	171,270
Provision for credit losses		18,958				1,500				(6,950	)			(5,000	)			(600	)
Non-interest income		59,162				58,391				55,256				63,881				62,577
Non-interest expense		169,558				149,730				145,978				154,019				144,596
Income before taxes		86,228				85,992				77,538				80,475				89,851
Net income available to common shareholders		68,309				67,427				61,726				59,325				73,021
Pre-provision net revenue(1)		113,631				89,384				71,842				77,837				90,947
Per Share
Net income available to common shareholders (basic)	$	0.41			$	0.42			$	0.38			$	0.37			$	0.45
Net income available to common shareholders (diluted)	$	0.40			$	0.42			$	0.38			$	0.37			$	0.45
Operating net income available to common shareholders(1)	$	0.48			$	0.42			$	0.38			$	0.37			$	0.45
Cash dividends	$	0.15			$	0.15			$	0.15			$	0.22			$	0.14
Common shareholders' equity	$	13.61			$	14.15			$	14.79			$	15.70			$	15.53
Common shareholders' equity (tangible)(1)	$	10.26			$	10.81			$	11.44			$	12.35			$	12.21
Weighted average shares (basic)		167,353				160,920				160,588				161,210				162,506
Weighted average shares (diluted)		168,781				162,075				161,911				162,355				163,456
(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
	Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
	2022				2022				2022				2021				2021
Asset Quality
Net (recoveries) charge offs to average loans (annualized)		0.01	%			(0.08	)%			(0.02	)%			0.07	%			(0.05	)%
Non-performing loans to total loans		0.98	%			0.92	%			0.87	%			0.83	%			0.82	%
Non-performing assets to total assets		0.76	%			0.71	%			0.64	%			0.60	%			0.58	%
ACL - loans(2) to total loans		1.35	%			1.31	%			1.32	%			1.36	%			1.41	%
ACL - loans(2) to non-performing loans		138	%			143	%			151	%			164	%			171	%
Asset Quality, excluding PPP(1)(3)
Net (recoveries) charge offs to adjusted average loans (annualized)		0.01	%			(0.08	)%			(0.02	)%			0.07	%			(0.05	)%
Non-performing loans to total adjusted loans		0.98	%			0.92	%			0.88	%			0.84	%			0.85	%
ACL - loans(2) to total adjusted loans		1.36	%			1.32	%			1.33	%			1.38	%			1.45	%
Profitability
Return on average assets, annualized		1.07	%			1.10	%			1.02	%			0.94	%			1.13	%
Operating return on average assets, annualized(1)		1.25	%			1.11	%			1.02	%			0.94	%			1.13	%
Return on average common shareholders' equity, annualized		11.24	%			11.57	%			10.03	%			9.34	%			11.45	%
Return on average common shareholders' equity (tangible), annualized(1)		17.31	%			15.23	%			12.88	%			11.89	%			14.56	%
Net interest margin		3.54	%			3.04	%			2.78	%			2.77	%			2.82	%
Efficiency ratio(1)		57.8	%			61.4	%			65.8	%			65.2	%			60.3	%
Non-interest expenses to total average assets		2.55	%			2.35	%			2.31	%			2.34	%			2.17	%
Operating non-interest expenses to total average assets(1)		2.43	%			2.32	%			2.29	%			2.30	%			2.14	%
Capital Ratios
Tangible common equity ratio ("TCE")(1)		6.7	%			7.0	%			7.3	%			7.8	%			7.6	%
TCE ratio, (excluding AOCI)(1)(5)		8.3	%			8.2	%			7.9	%			7.8	%			7.5	%
Tier 1 leverage ratio(4)		9.3	%			9.1	%			8.9	%			8.6	%			8.4	%
Common equity Tier 1 capital ratio(4)		10.0	%			9.9	%			10.0	%			9.9	%			10.1	%
Tier 1 risk-based capital ratio(4)		10.9	%			10.8	%			10.9	%			10.9	%			11.1	%
Total risk-based capital ratio(4)		13.7	%			13.7	%			13.8	%			14.1	%			14.4	%

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

(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 PPP loans.

(4) Regulatory capital ratios as of September 30, 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
		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30				Jun 30			Sep 30
		2022				2022				2022				2021				2021				2022			2021
ASSETS
	Cash and due from banks	$	143,465			$	158,605			$	161,462			$	172,276			$	260,564			(9.5	)%		(44.9	)%
	Other interest-earning assets		467,164				383,715				1,054,232				1,523,973				2,271,738			21.7	%		(79.4	)%
	Loans held for sale		14,411				17,528				27,675				35,768				43,123			(17.8	)%		(66.6	)%
	Investment securities		3,936,694				4,117,801				4,288,674				4,167,774				4,000,760			(4.4	)%		(1.6	)%
	Net loans		19,695,199				18,920,950				18,476,119				18,325,350				18,269,407			4.1	%		7.8	%
	Less: ACL - loans(1)		(266,838	)			(248,564	)			(243,705	)			(249,001	)			(256,727	)		(7.4	)%		(3.9	)%
	Loans, net		19,428,361				18,672,386				18,232,414				18,076,349				18,012,680			4.0	%		7.9	%
	Net, premises and equipment		221,496				211,639				218,257				220,357				228,179			4.7	%		(2.9	)%
	Accrued interest receivable		72,821				64,457				55,102				57,451				57,902			13.0	%		25.8	%
	Goodwill and intangible assets		561,495				537,700				537,877				538,053				536,697			4.4	%		4.6	%
	Other assets		1,300,135				1,088,855				1,022,617				1,004,397				979,189			19.4	%		32.8	%
	Total Assets	$	26,146,042			$	25,252,686			$	25,598,310			$	25,796,398			$	26,390,832			3.5	%		(0.9	)%
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits	$	21,376,554			$	21,143,866			$	21,541,174			$	21,573,499			$	22,074,041			1.1	%		(3.2	)%
	Short-term borrowings		618,457				456,185				452,440				416,764				468,967			35.6	%		31.9	%
	Other liabilities		873,648				624,412				478,667				472,110				520,620			39.9	%		67.8	%
	Long-term borrowings		806,224				557,130				556,494				621,345				627,386			44.7	%		28.5	%
	Total Liabilities		23,674,883				22,781,593				23,028,775				23,083,718				23,691,014			3.9	%		(0.1	)%
	Shareholders' equity		2,471,159				2,471,093				2,569,535				2,712,680				2,699,818			—	%		(8.5	)%
	Total Liabilities and Shareholders' Equity	$	26,146,042			$	25,252,686			$	25,598,310			$	25,796,398			$	26,390,832			3.5	%		(0.9	)%
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
	Real estate - commercial mortgage	$	7,554,509			$	7,417,036			$	7,289,376			$	7,279,080			$	7,145,115			1.9	%		5.7	%
	Commercial and industrial		4,208,775				4,098,552				3,992,285				3,906,791				3,863,154			2.7	%		8.9	%
	Real estate - residential mortgage		4,574,228				4,203,827				3,946,741				3,846,750				3,719,684			8.8	%		23.0	%
	Real estate - home equity		1,110,103				1,108,808				1,098,171				1,118,248				1,126,628			0.1	%		(1.5	)%
	Real estate - construction		1,273,097				1,177,446				1,210,340				1,139,779				1,111,487			8.1	%		14.5	%
	Consumer		633,666				538,747				481,551				464,657				458,595			17.6	%		38.2	%
	Equipment lease financing		255,060				254,897				253,521				236,344				242,967			0.1	%		5.0	%
	Other(2)		53,671				49,214				39,857				32,448				11,330			9.1	%		N/M
	Net loans before PPP		19,663,109				18,848,527				18,311,842				18,024,097				17,678,960			4.3	%		11.2	%
	PPP		32,090				72,423				164,277				301,253				590,447			(55.7	)%		(94.6	)%
	Total Net Loans	$	19,695,199			$	18,920,950			$	18,476,119			$	18,325,350			$	18,269,407			4.1	%		7.8	%
Deposits, by type:
	Noninterest-bearing demand	$	7,372,896			$	7,530,777			$	7,528,391			$	7,370,963			$	7,434,155			(2.1	)%		(0.8	)%
	Interest-bearing demand		5,676,600				5,403,805				5,625,286				5,819,539				6,187,096			5.0	%		(8.3	)%
	Savings		6,563,003				6,406,051				6,479,196				6,403,995				6,401,619			2.5	%		2.5	%
	Total demand and savings		19,612,499				19,340,633				19,632,873				19,594,497				20,022,870			1.4	%		(2.0	)%
	Brokered		226,883				243,172				248,833				251,526				262,617			(6.7	)%		(13.6	)%
	Time		1,537,172				1,560,061				1,659,468				1,727,476				1,788,554			(1.5	)%		(14.1	)%
	Total Deposits	$	21,376,554			$	21,143,866			$	21,541,174			$	21,573,499			$	22,074,041			1.1	%		(3.2	)%
Short-term borrowings, by type:
	Customer funding	$	482,457			$	436,185			$	452,440			$	416,764			$	468,967			10.6	%		2.9	%
	Federal funds purchased		136,000				20,000				—				—				—			N/M			N/M
	Total Short-Term Borrowings	$	618,457			$	456,185			$	452,440			$	416,764			$	468,967			35.6	%		31.9	%

(1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.
(2) Consists of overdrafts and net origination fees and costs.
	N/M - Not meaningful

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands
				Three Months Ended																				% Change from						Nine Months Ended
				Sep 30				Jun 30				Mar 31				Dec 31				Sep 30				Jun 30			Sep 30			Sep 30
				2022				2022				2022				2021				2021				2022			2021			2022				2021				% Change
Interest Income:
	Interest income			$	233,691			$	190,299			$	173,001			$	177,724			$	184,079			22.8	%		27.0	%		$	596,991			$	545,688			9.4	%
	Interest expense				18,109				11,468				11,691				12,111				12,809			57.9	%		41.4	%			41,268				47,570			(13.2	)%
	Net Interest Income				215,582				178,831				161,310				165,613				171,270			20.6	%		25.9	%			555,723				498,118			11.6	%
	Provision for credit losses				18,958				1,500				(6,950	)			(5,000	)			(600	)		N/M			N/M				13,508				(9,600	)		N/M
	Net Interest Income after Provision				196,624				177,331				168,260				170,613				171,870			10.9	%		14.4	%			542,215				507,718			6.8	%
Non-Interest Income:
	Commercial banking:
	Merchant and card				7,601				7,355				6,097				6,588				6,979			3.3	%		8.9	%			21,053				19,533			7.8	%
	Cash management				6,483				6,062				5,428				5,318				5,285			6.9	%		22.7	%			17,973				15,547			15.6	%
	Capital markets				4,060				3,893				1,676				2,982				2,063			4.3	%		96.8	%			9,629				6,399			50.5	%
	Other commercial banking				2,664				3,049				2,807				3,592				2,411			(12.6	)%		10.5	%			8,520				8,730			(2.4	)%
	Total commercial banking				20,808				20,359				16,008				18,480				16,738			2.2	%		24.3	%			57,175				50,209			13.9	%
	Consumer banking:
	Card				6,278				6,067				5,796				5,953				5,941			3.5	%		5.7	%			18,141				17,552			3.4	%
	Overdraft				4,463				3,881				3,772				3,896				3,474			15.0	%		28.5	%			12,116				8,948			35.4	%
	Other consumer banking				2,534				2,524				2,106				2,280				2,386			0.4	%		6.2	%			7,164				6,915			3.6	%
	Total consumer banking				13,275				12,472				11,674				12,129				11,801			6.4	%		12.5	%			37,421				33,415			12.0	%
	Wealth management				17,610				18,274				19,428				18,285				18,532			(3.6	)%		(5.0	)%			55,312				53,513			3.4	%
	Mortgage banking				3,720				3,768				4,576				7,243				9,535			(1.3	)%		(61.0	)%			12,064				26,333			(54.2	)%
	Other				3,802				3,510				3,551				7,739				5,971			8.3	%		(36.3	)%			10,863				12,883			(15.7	)%
	Non-interest income before investment securities gains (losses)				59,215				58,383				55,237				63,876				62,577			1.4	%		(5.4	)%			172,835				176,353			(2.0	)%
	Investment securities gains (losses), net				(53	)			8				19				5				—			N/M			N/M				(26	)			33,511			(100.1	)%
	Total Non-Interest Income				59,162				58,391				55,256				63,881				62,577			1.3	%		(5.5	)%			172,809				209,864			(17.7	)%
Non-Interest Expense:
	Salaries and employee benefits				94,283				85,404				84,464				85,506				82,679			10.4	%		14.0	%			264,151				243,632			8.4	%
	Data processing and software				15,807				14,685				14,315				14,612				14,335			7.6	%		10.3	%			44,807				41,828			7.1	%
	Net occupancy				14,025				13,587				14,522				14,366				12,957			3.2	%		8.2	%			42,134				39,433			6.8	%
	Other outside services				9,361				8,764				8,167				9,637				7,889			6.8	%		18.7	%			26,292				24,557			7.1	%
	Equipment				3,548				3,422				3,423				3,539				3,416			3.7	%		3.9	%			10,393				10,268			1.2	%
	FDIC insurance				3,158				2,961				3,209				3,032				2,727			6.7	%		15.8	%			9,328				7,633			22.2	%
	Professional fees				2,373				2,013				1,792				1,946				2,271			17.9	%		4.5	%			6,178				7,701			(19.8	)%
	Marketing				1,859				1,326				1,320				1,477				1,448			40.2	%		28.4	%			4,505				3,798			18.6	%
	Intangible amortization				690				177				176				146				150			N/M			N/M				1,043				443			135.4	%
	Debt extinguishment				—				—				—				674				—			N/M			N/M				—				32,575			(100.0	)%
	Merger-related expenses				7,006				1,027				401				—				—			N/M			N/M				8,434				—			N/M
	Other				17,448				16,364				14,189				19,084				16,724			6.6	%		4.3	%			48,001				51,943			(7.6	)%
	Total Non-Interest Expense				169,558				149,730				145,978				154,019				144,596			13.2	%		17.3	%			465,266				463,811			0.3	%
	Income Before Income Taxes				86,228				85,992				77,538				80,475				89,851			0.3	%		(4.0	)%			249,758				253,771			(1.6	)%
	Income tax expense				15,357				16,003				13,250				18,588				14,268			(4.0	)%		7.6	%			44,610				40,160			11.1	%
	Net Income				70,871				69,989				64,288				61,887				75,583			1.3	%		(6.2	)%			205,148				213,611			(4.0	)%
	Preferred stock dividends				(2,562	)			(2,562	)			(2,562	)			(2,562	)			(2,562	)		—	%		—	%			(7,686	)			(7,715	)		0.4	%
	Net Income Available to Common Shareholders			$	68,309			$	67,427			$	61,726			$	59,325			$	73,021			1.3	%		(6.5	)%		$	197,462			$	205,896			(4.1	)%
				Three Months Ended																				% Change from						Nine Months Ended
				Sep 30				Jun 30				Mar 31				Dec 31				Sep 30				Jun 30			Sep 30			Sep 30
				2022				2022				2022				2021				2021				2022			2021			2022				2021				% Change
PER SHARE:
	Net income available to common shareholders:
	Basic			$	0.41			$	0.42			$	0.38			$	0.37			$	0.45			(2.4	)%		(8.9	)%		$	1.21			$	1.27			(4.7	)%
	Diluted			$	0.40			$	0.42			$	0.38			$	0.37			$	0.45			(4.8	)%		(11.1	)%		$	1.20			$	1.26			(4.8	)%
	Cash dividends			$	0.15			$	0.15			$	0.15			$	0.22			$	0.14			—	%		7.1	%		$	0.45			$	0.42			7.1	%
	Weighted average shares (basic)				167,353				160,920				160,588				161,210				162,506			4.0	%		3.0	%			162,979				162,577			0.2	%
	Weighted average shares (diluted)				168,781				162,075				161,991				162,355				163,456			4.1	%		3.3	%			164,254				163,634			0.4	%

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Three months ended
		September 30, 2022											June 30, 2022											September 30, 2021
		Average				Interest				Yield/			Average				Interest				Yield/			Average				Interest				Yield/
		Balance				(1)				Rate			Balance				(1)				Rate			Balance				(1)				Rate
ASSETS
Interest-earning assets:
	Net loans	$	19,563,825			$	207,343			4.21	%		$	18,637,175			$	165,682			3.56	%		$	18,414,153			$	163,343			3.53	%
	Investment securities		4,500,461				28,022			2.49	%			4,398,424				26,061			2.37	%			3,821,513				21,663			2.27	%
	Loans held for sale		9,098				194			8.51	%			13,260				260			7.84	%			36,427				299			3.28	%
	Other interest-earning assets		622,673				2,103			1.34	%			938,244				1,723			0.74	%			2,301,326				1,888			0.18	%
	Total Interest-Earning Assets		24,696,057				237,662			3.83	%			23,987,103				193,726			3.24	%			24,573,419				187,193			3.03	%
Noninterest-Earning assets:
	Cash and due from banks		152,349											160,240											200,315
	Premises and equipment		223,880											216,798											228,861
	Other assets		1,545,812											1,463,332											1,695,767
	Less: ACL - loans(2)		(261,003	)										(249,041	)										(257,486	)
	Total Assets	$	26,357,095										$	25,578,432										$	26,440,876
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-Bearing liabilities:
	Demand deposits	$	5,708,059			$	1,886			0.13	%		$	5,597,975			$	797			0.06	%		$	6,168,908			$	814			0.05	%
	Savings deposits		6,681,713				3,414			0.20	%			6,425,634				1,125			0.07	%			6,392,537				1,054			0.07	%
	Brokered deposits		247,105				1,346			2.16	%			244,200				619			1.02	%			270,168				229			0.34	%
	Time deposits		1,615,384				3,404			0.84	%			1,608,286				3,255			0.81	%			1,852,223				4,428			0.95	%
	Total Interest-Bearing Deposits		14,252,261				10,050			0.28	%			13,876,095				5,796			0.17	%			14,683,836				6,525			0.18	%
	Short-term borrowings		597,883				1,149			0.76	%			446,838				190			0.17	%			494,811				131			0.11	%
	Long-term borrowings		761,465				6,911			3.62	%			556,992				5,482			3.94	%			627,300				6,153			3.92	%
	Total Interest-Bearing Liabilities		15,611,609				18,110			0.47	%			14,879,925				11,468			0.31	%			15,805,947				12,809			0.32	%
Noninterest-Bearing liabilities:
	Demand deposits		7,535,791											7,647,618											7,439,644
	Other		605,638											519,543											472,452
	Total Liabilities		23,753,038											23,047,086											23,718,043
	Total Deposits/Cost of Deposits		21,788,052							0.18	%			21,523,713							0.11	%			22,123,480							0.12	%
	Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")		23,147,400							0.31	%			22,527,543							0.20	%			23,245,591							0.22	%
	Shareholders' equity		2,604,057											2,531,346											2,722,833
	Total Liabilities and Shareholders' Equity	$	26,357,095										$	25,578,432										$	26,440,876
	Net interest income/net interest margin (fully taxable equivalent)						219,552			3.54	%							182,258			3.04	%							174,384			2.82	%
	Tax equivalent adjustment						(3,970	)										(3,427	)										(3,114	)
	Net Interest Income					$	215,582										$	178,831										$	171,270

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

(2) "ACL - loans" relates to the ACL specifically on "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
		Sep 30			Jun 30			Mar 31			Dec 31			Sep 30				Jun 30			Sep 30
		2022			2022			2022			2021			2021				2022			2021
Loans, by type:
	Real estate - commercial mortgage	$	7,566,259		$	7,340,417		$	7,294,914		$	7,157,906		$	7,134,177			3.1	%		6.1	%
	Commercial and industrial		4,201,399			4,040,587			3,986,900			3,898,559			3,878,767			4.0	%		8.3	%
	Real estate - residential mortgage		4,485,649			4,052,666			3,887,428			3,773,156			3,642,822			10.7	%		23.1	%
	Real estate - home equity		1,099,487			1,118,494			1,106,319			1,122,042			1,128,076			(1.7	)%		(2.5	)%
	Real estate - construction		1,268,590			1,188,932			1,137,649			1,117,592			1,085,846			6.7	%		16.8	%
	Consumer		604,634			485,095			471,129			462,346			452,844			24.6	%		33.5	%
	Equipment lease financing		252,810			253,659			236,388			238,349			247,776			(0.3	)%		2.0	%
	Other(1)		35,823			42,476			36,277			15,558			(6,773	)		(15.7	)%		N/M
	Net loans before PPP		19,514,651			18,522,326			18,157,004			17,785,508			17,563,535			5.4	%		11.1	%
	PPP		49,174			114,849			226,114			435,042			850,618			(57.2	)%		(94.2	)%
	Total Net Loans	$	19,563,825		$	18,637,175		$	18,383,118		$	18,220,550		$	18,414,153			5.0	%		6.2	%
Deposits, by type:
	Noninterest-bearing demand	$	7,535,791		$	7,647,618		$	7,431,235		$	7,516,656		$	7,439,644			(1.5	)%		1.3	%
	Interest-bearing demand		5,708,059			5,597,975			5,664,987			5,933,780			6,168,908			2.0	%		(7.5	)%
	Savings		6,681,713			6,425,634			6,436,548			6,413,638			6,392,537			4.0	%		4.5	%
	Total demand and savings		19,925,563			19,671,227			19,532,770			19,864,074			20,001,089			1.3	%		(0.4	)%
	Brokered		247,105			244,200			250,350			256,192			270,168			1.2	%		(8.5	)%
	Time		1,615,384			1,608,286			1,697,063			1,756,672			1,852,223			0.4	%		(12.8	)%
	Total Deposits	$	21,788,052		$	21,523,713		$	21,480,183		$	21,876,938		$	22,123,480			1.2	%		(1.5	)%
Short-term borrowings, by type:
	Customer funding	$	483,429		$	443,970		$	423,949		$	474,022		$	494,811			8.9	%		(2.3	)%
	Federal funds purchased		96,965			2,857			—			—			—			N/M			N/M
	Short-term FHLB advances and other borrowings		17,489			11			—			—			—			N/M			N/M
	Total Short-Term borrowings	$	597,883		$	446,838		$	423,949		$	474,022		$	494,811			33.8	%		20.8	%

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

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
			Nine months ended September 30
											2022											2021
			Average				Interest				Yield/			Average				Interest				Yield/
			Balance				(1)				Rate			Balance				(1)				Rate
ASSETS
Interest-earning assets:
	Net loans		$	18,865,672			$	524,150			3.71	%		$	18,765,024			$	485,330			3.46	%
	Investment securities			4,376,084				78,334			2.39	%			3,589,357				63,902			2.37	%
	Loans held for sale			16,898				694			5.48	%			40,551				969			3.19	%
	Other interest-earning assets			937,369				4,498			0.64	%			1,986,161				4,599			0.18	%
	Total Interest-Earning Assets			24,196,023				607,676			3.35	%			24,381,093				554,799			3.04	%
Noninterest-Earning assets:
	Cash and due from banks			158,267											150,435
	Premises and equipment			220,218											229,513
	Other assets			1,534,314											1,689,094
	Less: ACL - loans(2)			(253,725	)										(268,412	)
	Total Assets		$	25,855,097										$	26,181,723
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-Bearing liabilities:
	Demand deposits		$	5,657,165			$	3,411			0.08	%		$	5,994,878			$	2,905			0.06	%
	Savings deposits			6,515,529				5,561			0.11	%			6,271,019				3,944			0.08	%
	Brokered deposits			254,100				2,181			1.14	%			297,250				876			0.39	%
	Time deposits			1,633,053				10,299			0.84	%			2,001,043				16,383			1.09	%
	Total Interest-Bearing Deposits			14,059,847				21,452			0.20	%			14,564,190				24,108			0.22	%
	Short-term borrowings			490,194				1,459			0.40	%			526,259				456			0.12	%
	Long-term borrowings			643,330				18,357			3.81	%			839,396				23,006			3.66	%
	Total Interest-Bearing Liabilities			15,193,371				41,268			0.36	%			15,929,845				47,570			0.40	%
Noninterest-Bearing liabilities:
	Demand deposits			7,538,597											7,108,199
	Other			515,615											466,917
	Total Liabilities			23,247,583											23,504,961
	Total Deposits/Cost of Deposits			21,598,444							0.13	%			21,672,389							0.15	%
	Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")			22,731,968							0.24	%			23,038,044							0.28	%
	Shareholders' equity			2,607,514											2,676,762
	Total Liabilities and Shareholders' Equity		$	25,855,097										$	26,181,723
	Net interest income/net interest margin (fully taxable equivalent)							566,408			3.13	%							507,229			2.78	%
	Tax equivalent adjustment							(10,685	)										(9,111	)
	Net Interest Income						$	555,723										$	498,118

(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
		Nine months ended September 30
		2022			2021				% Change
Loans, by type:
	Real estate - commercial mortgage	$	7,401,094		$	7,146,951			3.6	%
	Commercial and industrial		4,075,838			3,943,736			3.3	%
	Real estate - residential mortgage		4,143,850			3,409,381			21.5	%
	Real estate - home equity		1,099,310			1,147,444			(4.2	)%
	Real estate - construction		1,197,947			1,065,125			12.5	%
	Consumer		532,396			454,434			17.2	%
	Equipment lease financing		247,674			256,741			(3.5	)%
	Other(1)		38,165			(10,292	)		N/M
	Net loans before PPP		18,736,274			17,413,520			7.6	%
	PPP		129,398			1,351,504			(90.4	)%
	Total Net Loans	$	18,865,672		$	18,765,024			0.5	%
Deposits, by type:
	Noninterest-bearing demand	$	7,538,597		$	7,108,199			6.1	%
	Interest-bearing demand		5,657,165			5,994,878			(5.6	)%
	Savings		6,515,529			6,271,019			3.9	%
	Total demand and savings		19,711,291			19,374,096			1.7	%
	Brokered		254,100			297,250			(14.5	)%
	Time		1,633,053			2,001,043			(18.4	)%
	Total Deposits	$	21,598,444		$	21,672,389			(0.3	)%
Short-term borrowings, by type:
	Customer funding		450,667			526,259			(14.4	)%
	Federal funds purchased		33,629			—			N/M
	Short-term FHLB advances and other borrowings		5,898			—			N/M
	Total Short-Term Borrowings	$	490,194		$	526,259			(6.9	)%

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																				Nine Month Ended
		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30				Sep 30				Sep 30
		2022				2022				2022				2021				2021				2022				2021
Allowance for credit losses related to net loans:
Balance at beginning of period		$	248,564			$	243,705			$	249,001			$	256,727			$	255,032			$	249,001			$	277,567
	CECL Day 1 provision expense		7,954				—				—				—				—				7,954				—
	Purchased credit deteriorated loans		1,135				—				—				—				—				1,135				—
	Loans charged off:
	Commercial and industrial		(1,783	)			(201	)			(227	)			(9,417	)			(647	)			(2,211	)			(5,920	)
	Real estate - commercial mortgage		(86	)			—				(152	)			(369	)			(14	)			(238	)			(8,357	)
	Consumer and home equity		(1,172	)			(877	)			(1,052	)			(828	)			(504	)			(3,101	)			(2,481	)
	Real estate - residential mortgage		—				(66	)			—				—				(602	)			(66	)			(1,290	)
	Real estate - construction		—				—				—				—				—				—				(39	)
	Equipment lease financing and other		(683	)			(474	)			(469	)			(380	)			(467	)			(1,626	)			(1,871	)
	Total loans charged off		(3,724	)			(1,618	)			(1,900	)			(10,994	)			(2,234	)			(7,242	)			(19,958	)
Recoveries of loans previously charged off:
	Commercial and industrial		2,213				739				1,980				5,795				2,330				4,932				3,792
	Real estate - commercial mortgage		29				3,536				112				1,007				564				3,677				1,467
	Consumer and home equity		682				762				454				767				504				1,898				1,578
	Real estate - residential mortgage		101				92				222				89				86				415				286
	Real estate - construction		—				12				32				77				697				44				1,335
	Equipment lease financing and other		247				226				154				283				358				627				670
	Recoveries of loans previously charged off		3,272				5,367				2,954				8,018				4,539				11,593				9,128
Net loans recovered (charged off)			(452	)			3,749				1,054				(2,976	)			2,305				4,351				(10,830	)
Provision for credit losses			9,637				1,110				(6,350	)			(4,750	)			(610	)			4,397				(10,010	)
Balance at end of period		$	266,838			$	248,564			$	243,705			$	249,001			$	256,727			$	266,838			$	256,727
Net (recoveries) charge offs to average loans (annualized)			0.01	%			(0.08	)%			(0.02	)%			0.07	%			(0.05	)%			(0.05	)%			0.08	%
Allowance credit losses related to OBS Credit Exposures(1)
	Balance at beginning of period	$	14,323			$	13,933			$	14,533			$	14,783			$	14,773
	Provision for credit losses		1,367				390				(600	)			(250	)			10
	Balance at end of period	$	15,690			$	14,323			$	13,933			$	14,533			$	14,783
NON-PERFORMING ASSETS:
	Non-accrual loans	$	178,204			$	162,530			$	136,799			$	143,666			$	138,833
	Loans 90 days past due and accruing		14,559				11,016				24,182				8,453				11,389
	Total non-performing loans		192,763				173,546				160,981				152,119				150,222
	Other real estate owned		5,877				4,786				2,014				1,817				1,896
	Total non-performing assets	$	198,640			$	178,332			$	162,995			$	153,936			$	152,118
NON-PERFORMING LOANS, BY TYPE:
	Commercial and industrial	$	29,831			$	44,713			$	30,193			$	30,629			$	32,697
	Real estate - commercial mortgage		96,281				59,940				64,190				54,044				52,100
	Real estate - residential mortgage		41,597				42,922				39,308				39,399				37,077
	Consumer and home equity		10,016				10,552				11,465				11,505				11,509
	Real estate - construction		1,456				1,357				672				901				965
	Equipment lease financing and other		13,582				14,062				15,153				15,641				15,874
	Total non-performing loans	$	192,763			$	173,546			$	160,981			$	152,119			$	150,222

(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, 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
						Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
						2022				2022				2022				2021				2021
Operating net income available to common shareholders
Net income available to common shareholders						$	68,309			$	67,427			$	61,726			$	59,325			$	73,021
Plus: Core deposit intangible amortization, net of tax							406				—				—				—				—
Plus: Merger-related expenses, net of tax							5,535				811				317				—				—
Plus: CECL day 1 provision expense, net of tax							6,283				—				—				—				—
Operating net income available to common shareholders (numerator)						$	80,533			$	68,238			$	62,043			$	59,325			$	73,021
Weighted average shares (diluted) (denominator)							168,781				162,075				161,991				162,355				163,456
Operating net income available to common shareholders, per share (diluted)						$	0.48			$	0.42			$	0.38			$	0.37			$	0.45
Common shareholders' equity (tangible), per share
Shareholders' equity						$	2,471,159			$	2,471,093			$	2,569,535			$	2,712,680			$	2,699,818
Less: Preferred stock							(192,878	)			(192,878	)			(192,878	)			(192,878	)			(192,878	)
Less: Goodwill and intangible assets							(561,495	)			(537,700	)			(537,877	)			(538,053	)			(536,697	)
Tangible common shareholders' equity (numerator)						$	1,716,786			$	1,740,515			$	1,838,780			$	1,981,749			$	1,970,243
Shares outstanding, end of period (denominator)							167,399				161,057				160,669				160,490				161,429
Common shareholders' equity (tangible), per share						$	10.26			$	10.81			$	11.44			$	12.35			$	12.21
Operating return on average assets
Net income						$	70,871			$	69,989			$	64,288			$	61,887			$	75,583
Plus: Core deposit intangible amortization, net of tax							406				—				—				—				—
Plus: Merger-related expenses, net of tax							5,535				811				317				—				—
Plus: CECL day 1 provision expense, net of tax							6,283				—				—				—				—
Operating net income (numerator)						$	83,095			$	70,800			$	64,605			$	61,887			$	75,583
Total average assets (denominator)						$	26,357,095			$	25,578,432			$	25,622,462			$	26,136,536			$	26,440,876
Operating return on average assets, annualized							1.25	%			1.11	%			1.02	%			0.94	%			1.13	%
Return on average common shareholders' equity (tangible)
Net income available to common shareholders						$	68,309			$	67,427			$	61,726			$	59,325			$	73,021
Plus: Merger-related expenses, net of tax							5,535				811				317				—				—
Plus: CECL day 1 provision expense, net of tax							6,283				—				—				—				—
Plus: Intangible amortization, net of tax							545				140				138				114				118
Operating net income available to common shareholders (numerator)						$	80,672			$	68,378			$	62,181			$	59,439			$	73,139
Average shareholders' equity						$	2,604,057			$	2,531,346			$	2,688,834			$	2,713,198			$	2,722,833
Less: Average preferred stock							(192,878	)			(192,878	)			(192,878	)			(192,878	)			(192,878	)
Less: Average goodwill and intangible assets							(562,285	)			(537,786	)			(537,976	)			(536,638	)			(536,772	)
Average tangible common shareholders' equity (denominator)						$	1,848,894			$	1,800,682			$	1,957,980			$	1,983,682			$	1,993,183
Return on average common shareholders' equity (tangible), annualized							17.31	%			15.23	%			12.88	%			11.89	%			14.56	%
						Three months ended
						Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
						2022				2022				2022				2021				2021
Tangible common equity to tangible assets (TCE Ratio)
Shareholders' equity						$	2,471,159			$	2,471,093			$	2,569,535			$	2,712,680			$	2,699,818
Less: Preferred stock							(192,878	)			(192,878	)			(192,878	)			(192,878	)			(192,878	)
Less: Goodwill and intangible assets							(561,495	)			(537,700	)			(537,877	)			(538,053	)			(536,697	)
Tangible common shareholders' equity (numerator)						$	1,716,786			$	1,740,515			$	1,838,780			$	1,981,749			$	1,970,243
Total assets						$	26,146,042			$	25,252,686			$	25,598,310			$	25,796,398			$	26,390,832
Less: Goodwill and intangible assets							(561,495	)			(537,700	)			(537,877	)			(538,053	)			(536,697	)
Total tangible assets (denominator)						$	25,584,547			$	24,714,986			$	25,060,433			$	25,258,345			$	25,854,135
Tangible common equity to tangible assets							6.71	%			7.04	%			7.34	%			7.85	%			7.62	%
Tangible common equity to tangible assets (TCE Ratio) excluding AOCI
Shareholders' equity						$	2,471,159			$	2,471,093			$	2,569,535			$	2,712,680			$	2,699,818
Less: Preferred stock							(192,878	)			(192,878	)			(192,878	)			(192,878	)			(192,878	)
Less: Accumulated other comprehensive income (loss)							(442,947	)			(304,210	)			(158,855	)			27,411				25,615
Less: Goodwill and intangible assets							(561,495	)			(537,700	)			(537,877	)			(538,053	)			(536,697	)
Tangible common shareholders' equity (numerator)						$	2,159,733			$	2,044,725			$	1,997,635			$	1,954,338			$	1,944,628
Total assets						$	26,146,042			$	25,252,686			$	25,598,310			$	25,796,398			$	26,390,832
Less: Goodwill and intangible assets							(561,495	)			(537,700	)			(537,877	)			(538,053	)			(536,697	)
Plus: AOCI - unrealized losses/(gains) on AFS investments securities							368,196				249,424				112,965				(40,444	)			(41,787	)
Total tangible assets (denominator)						$	25,952,743			$	24,964,410			$	25,173,398			$	25,217,901			$	25,812,348
Tangible common equity to tangible assets, excluding AOCI							8.32	%			8.19	%			7.94	%			7.75	%			7.53	%
Efficiency ratio
Non-interest expense						$	169,558			$	149,730			$	145,978			$	154,019			$	144,596
Less: Amortization of tax credit investments							(696	)			(696	)			(696	)			(1,547	)			(1,546	)
Less: Merger-related expenses							(7,006	)			(1,027	)			(401	)			—				—
Less: Intangible amortization							(690	)			(177	)			(176	)			(146	)			(150	)
Less: Debt extinguishment costs							—				—				—				(674	)			—
Non-interest expense (numerator)						$	161,166			$	147,830			$	144,705			$	151,652			$	142,900
Net interest income						$	215,582			$	178,831			$	161,310			$	165,613			$	171,270
Tax equivalent adjustment							3,970				3,427				3,288				3,184				3,114
Plus: Total non-interest income							59,162				58,391				55,256				63,881				62,577
Less: Investment securities (gains) losses, net							53				(8	)			(19	)			(5	)			—
Total revenue (denominator)						$	278,767			$	240,641			$	219,835			$	232,673			$	236,961
Efficiency ratio							57.8	%			61.4	%			65.8	%			65.2	%			60.3	%
Operating non-interest expenses to total average assets (annualized)
Non-interest expense						$	169,558			$	149,730			$	145,978			$	154,019			$	144,596
Less: Amortization of tax credit investments							(696	)			(696	)			(696	)			(1,547	)			(1,546	)
Less: Intangible amortization							(690	)			(177	)			(176	)			(146	)			(150	)
Less: Merger-related expenses							(7,006	)			(1,027	)			(401	)			—				—
Less: Debt extinguishment costs							—				—				—				(674	)			—
Non-interest expense (numerator)						$	161,166			$	147,830			$	144,705			$	151,652			$	142,900
Total average assets (denominator)						$	26,357,095			$	25,578,432			$	25,622,462			$	26,136,536			$	26,440,876
Operating non-interest expenses to total average assets, (annualized)							2.43	%			2.32	%			2.29	%			2.30	%			2.14	%
						Three months ended
						Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
						2022				2022				2022				2021				2021
Asset Quality, excluding PPP
Net loans recovered (charged-off) (numerator)						$	(452	)		$	3,749			$	1,054			$	(2,976	)		$	2,305
Average net loans						$	19,563,825			$	18,637,175			$	18,383,118			$	18,220,550			$	18,414,153
Less: Average PPP loans							(49,174	)			(114,849	)			(226,114	)			(435,042	)			(850,618	)
Total adjusted average loans (denominator)						$	19,514,651			$	18,522,326			$	18,157,004			$	17,785,508			$	17,563,535
Net charge-offs (recoveries) to adjusted average loans (annualized)							0.01	%			(0.08	)%			(0.02	)%			0.07	%			(0.05	)%
Non-performing loans (numerator)						$	192,763			$	173,546			$	160,981			$	152,119			$	150,222
Net loans						$	19,695,199			$	18,920,950			$	18,476,119			$	18,325,350			$	18,269,407
Less: PPP loans							(32,090	)			(72,423	)			(164,277	)			(301,253	)			(590,447	)
Total adjusted loans (denominator)						$	19,663,109			$	18,848,527			$	18,311,842			$	18,024,097			$	17,678,960
Non-performing loans to total adjusted loans							0.98	%			0.92	%			0.88	%			0.84	%			0.85	%
ACL - loans (numerator)						$	266,838			$	248,564			$	243,705			$	249,001			$	256,727
Net loans						$	19,695,199			$	18,920,950			$	18,476,119			$	18,325,350			$	18,269,407
Less: PPP loans							(32,090	)			(72,423	)			(164,277	)			(301,253	)			(590,447	)
Total adjusted loans (denominator)						$	19,663,109			$	18,848,527			$	18,311,842			$	18,024,097			$	17,678,960
ACL - loans to total adjusted loans							1.36	%			1.32	%			1.33	%			1.38	%			1.45	%
Pre-provision net revenue
Net interest income						$	215,582			$	178,831			$	161,310			$	165,613			$	171,270
Non-interest income							59,162				58,391				55,256				63,881				62,577
Less: Investment securities (gains) losses, net							53				(8	)			(19	)			(5	)			—
Total revenue						$	274,797			$	237,214			$	216,547			$	229,489			$	233,847
Non-interest expense						$	169,558			$	149,730			$	145,978			$	154,019			$	144,596
Less: Amortization on tax credit investments							(696	)			(696	)			(696	)			(1,547	)			(1,546	)
Less: Merger-related expenses							(7,006	)			(1,027	)			(401	)			—				—
Less: Intangible amortization							(690	)			(177	)			(176	)			(146	)			(150	)
Less: Debt extinguishment							—				—				—				(674	)			—
Total non-interest expense						$	161,166			$	147,830			$	144,705			$	151,652			$	142,900
Pre-provision net revenue						$	113,631			$	89,384			$	71,842			$	77,837			$	90,947

Note: numbers may not sum due to rounding.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221018006226/en/

Media Contact: Laura Wakeley (717) 291-2616

Investor Contact: Matt Jozwiak (717) 327-2657

Source: Fulton Financial Corporation

FAQ

What were Fulton's earnings for Q3 2022?

Fulton reported net income of $68.3 million, or $0.40 per diluted share, for Q3 2022.

How did Fulton's Q3 2022 net interest income compare to previous quarters?

Net interest income for Q3 2022 was $215.6 million, a 25.9% increase compared to Q3 2021.

What impact did the acquisition of Prudential Bancorp have on Fulton?

The acquisition contributed approximately $10.9 million in interest income during Q3 2022.

How did Fulton's net income for the nine months ending September 30, 2022, compare to last year?

Net income for the nine months was $197.5 million, a decrease of $8.4 million or 4.1% compared to the same period in 2021.

What was the provision for credit losses in Q3 2022?

The provision for credit losses in Q3 2022 was $19 million, up from $1.5 million in Q2 2022.