EX-99.1 2 exhibit991123120earningsre.htm EXHIBIT 99.1 Document


Exhibit 99.1

FULTON FINANCIAL
CORPORATION


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


Fulton Financial Announces Fourth Quarter and 2020 Results

2020 Key Accomplishments
•Successful implementation of COVID-19 safety response protocols to protect customers and team members
•Rapid implementation of remote work program
•PPP/Main Street Lending programs in place to aid customers
•Residential mortgage business at historic highs
•Implementation of strategic operating expense reduction initiatives
•Successful access to the capital markets with subordinated debt and preferred stock offerings

(January 19, 2021) – Lancaster, PA – Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $49 million, or $0.30 per diluted share, for the fourth quarter of 2020 and $176 million, or $1.08 per diluted share, for the year ended December 31, 2020.

“We were pleased with our company’s achievements for the 4th quarter and for the year as a whole, given the challenges presented by the lingering presence of COVID-19,” said E. Philip Wenger, Chairman and CEO of Fulton Financial Corporation. “The low interest rate environment continued to put pressure on our margin, but even in this challenging environment, we had stable asset quality, were able to provide Paycheck Protection Program and Main Street loans to our customers, helped our mortgage business grow to historic highs, and saw wealth management business performance that was beyond our expectations.”

Net Interest Income and Balance Sheet

Net interest income for the fourth quarter of 2020 was $162 million, $7.5 million higher than the third quarter of 2020. Net interest margin for the fourth quarter of 2020 increased 5 basis points, to 2.75%, from 2.70% in the third quarter of 2020. The increases in net interest income and net interest margin were primarily due to the forgiveness of Paycheck Protection Program ("PPP") loans and the acceleration of the recognition of related fee income as well as growth in average loans and investments securities during the quarter. For the year ended December 31, 2020, net interest income was $629 million, a decrease of $19 million in comparison to the year ended December 31, 2019, as the 90 basis


point decline in yields on average interest-earning assets outpaced the 42 basis point decline in the cost of funds. The net interest margin in 2020 was 2.86% compared 3.36% in 2019.
Total average assets for the fourth quarter of 2020 were $25.7 billion, an increase of $580 million from the third quarter of 2020. Average loans, net of unearned income, were $19.0 billion, relatively unchanged compared to the third quarter of 2020. Beginning in the second quarter of 2020, average loans included loans originated under PPP. PPP loans had an average balance of $1.8 billion for the fourth quarter of 2020, compared to $2.0 billion for the third quarter of 2020.

Average loans and yields, by type, for the fourth quarter of 2020 in comparison to the third quarter of 2020 are summarized in the following table:
Three months ended
December 31, 2020September 30, 2020Growth
Balance
Yield (1)
Balance
Yield (1)
$%
(dollars in thousands)
Average Loans, net of unearned income, by type:
    Real estate - commercial mortgage$7,101,363 3.21 %$6,986,528 3.27 %$114,835 1.6 %
    Commercial and industrial(2)5,855,305 2.57 %5,983,872 2.53 %(128,567)(2.1)%
    Real estate - residential mortgage3,087,529 3.65 %2,975,516 3.73 %112,013 3.8 %
    Real estate - home equity1,212,113 3.91 %1,237,602 3.87 %(25,489)(2.1)%
    Real estate - construction1,009,284 3.11 %981,589 3.84 %27,695 2.8 %
    Consumer468,678 4.07 %464,851 4.07 %3,827 0.8 %
    Equipment lease financing279,059 3.98 %279,217 3.96 %(158)(0.1)%
    Other(3)(18,817)N/A(28,656)N/A9,839 (34.3)%
Total Average Loans, net of unearned income$18,994,514 3.45 %$18,880,519 3.38 %$113,995 0.6 %
(1) Presented on a fully-taxable equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances.
(2) Includes average PPP loans of $1.8 billion and $2.0 billion for the three months ended December 31, 2020 and September 30, 2020, respectively.
(3) Consists of overdrafts and net origination fees and costs.

Total average assets for the year ended December 31, 2020 were $24.3 billion, an increase of $3.1 billion from 2019. Average loans, net of unearned income, were $18.3 billion, an increase of $1.8 billion from 2019. Included in average loans are loans originated under the PPP, which had an average balance of $1.3 billion for the year ended December 31, 2020. The remaining increase was mainly in residential mortgage loans.

Total average liabilities increased $409 million from the third quarter of 2020 driven by increases in demand and savings deposits. Average deposits and interest rates, by type, for the fourth quarter of 2020 in comparison to the third quarter of 2020 are summarized in the following table:



Three months ended
December 31, 2020September 30, 2020Growth
BalanceRateBalanceRate$%
(dollars in thousands)
Average Deposits, by type:
    Noninterest-bearing demand$6,477,228 — $6,270,683 — $206,545 3.3 %
    Interest-bearing demand5,762,150 0.10 %5,591,548 0.14 %170,602 3.1 %
    Savings5,905,137 0.13 %5,716,050 0.16 %189,087 3.3 %
Total average demand and savings18,144,515 0.07 %17,578,281 0.10 %566,234 3.2 %
    Brokered340,451 0.53 %314,721 0.56 %25,730 8.2 %
    Time2,306,556 1.39 %2,495,445 1.58 %(188,889)(7.6)%
Total Average Deposits$20,791,522 0.23 %$20,388,447 0.29 %$403,075 2.0 %


Total average liabilities for the year ended December 31, 2020 increased $3 billion from 2019 driven by increases in demand and savings deposits.

Asset Quality

The provision for credit losses was $6 million, $7 million and $21 million for the fourth quarter of 2020, third quarter of 2020 and fourth quarter of 2019, respectively. For the year ended December 31, 2020, the provision for credit losses was $77 million compared to $33 million in 2019. Effective January 1, 2020 Fulton adopted ASU 2016-13, referred to as the current expected credit loss model. As such, the provision for credit losses in 2020 reflects current expected credit losses based on forecasted economic and other assumptions, including the estimated impacts of COVID-19, over the remaining expected lives of financial assets and off-balance-sheet credit exposures, whereas the 2019 methodology applied an incurred loss model.
Non-performing assets were $151 million, or 0.58% of total assets, at December 31, 2020, compared to $147 million, or 0.57% of total assets, at September 30, 2020.
Annualized net recoveries for the quarter ended December 31, 2020 were 0.07% of total average loans, compared to annualized net recoveries of 0.05% and annualized net charge-offs of 0.65% for the quarters ended September 30, 2020 and December 31, 2019, respectively. Net charge-offs for 2020 were 0.05% of total average loans compared to 0.22% in 2019.

Non-interest Income

Non-interest income in the fourth quarter of 2020, excluding investment securities gains, was $56 million, a decrease of $8 million, or 12%, from the third quarter of 2020, primarily driven by decreases $7 million in mortgage banking income and $1 million in capital markets revenue. The decrease in mortgage banking income was mainly due to seasonal decreases in the volume of loans sold.
Compared to the fourth quarter of 2019, non-interest income, excluding investment securities gains, in the fourth quarter of 2020 was relatively unchanged as increases in mortgage banking and wealth management income offset decreases in a number of other categories.


For the year ended December 31, 2020, non-interest income, excluding investment securities gains, was $226 million, an increase of $15 million, or 7%, from 2019. The increase was driven by a $19 million increase in mortgage banking income, with mortgage sale gains increasing $36 million due to higher volumes and spreads, partially offset by a $10.5 million of mortgage servicing rights asset impairment charges for the year and higher mortgage servicing rights asset amortization, due to higher refinance activity. In addition, wealth management and capital markets revenue each increased by $3 million. Partially offsetting these increases were decreases of $5 million in overdraft fees in consumer banking and $4 million in other service charges on deposits in other commercial banking.
During both 2020 and 2019, Fulton completed balance sheet restructurings involving sales of investment securities and corresponding prepayments of FHLB advances. As a result of these transactions, $3 million and $5 million of investment securities gains were realized during 2020 and 2019, respectively, and prepayment penalties of $3 million and $4 million were incurred during 2020 and 2019, respectively.

Non-interest Expense

Non-interest expense was $155 million in the fourth quarter of 2020, an increase of $16 million, or 11%, compared to the third quarter of 2020, with $15 million and $1 million attributable to charges related to cost savings initiatives recognized in the fourth quarter of 2020 and the third quarter of 2020, respectively. Those charges in the fourth quarter of 2020 included $4.6 million of employee severance for impacted employees (salaries and benefits) and $4.8 million of write-offs of fixed assets and $5.8 million of lease termination charges (other expense) resulting from 21 financial center closures.
Compared to the fourth quarter of 2019, non-interest expense increased $16 million, or 11%, due primarily to the previously discussed charges associated with the cost savings initiatives.
The cost savings anticipated from the implementation of the cost savings initiatives are not expected to be fully realized until mid-2021. Of the anticipated $25 million in annual expense savings, the Corporation expects to reinvest a portion of the savings to accelerate digital transformation initiatives.
For the year end December 31, 2020, non-interest expense was $579 million, an increase of $12 million, or 2%, from 2019. This increase was primarily due to expenses related to the cost savings initiatives, which totaled $16 million for the year, as well as increases of $3 million in data processing and software and $1 million in FDIC insurance. These increases were partially offset by decreases of $9 million in other outside services and $5 million in marketing.

Income Tax Expense

The effective income tax rate (ETR) for the fourth quarter of 2020 was 10%, as compared to 13% for both the third quarter of 2020 and fourth quarter of 2019. For the year ended December 31, 2020, the ETR was 12% compared 14% in 2019. The decreases resulted from lower income before income taxes.

Shareholders' Equity

In the fourth quarter of 2020, the Corporation issued $200 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock ("Preferred Stock") at a rate of 5.125%. The Corporation received net


proceeds from the offering of $192.9 million after issuance costs. Dividends on the Preferred Stock were $2.1 million in the fourth quarter, or approximately $0.01 per diluted share.


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

Safe Harbor Statement

This news release may contain forward-looking statements with respect to the
Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," “projects,” the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results.
Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, they are based on current beliefs, expectations and assumptions regarding the future of the Corporation’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation’s control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2019, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020 and other current and periodic reports, which have been or will be filed with the Securities and Exchange Commission and are or will be available in the Investor Relations section of the Corporation's website (www.fult.com) and on the Securities and Exchange Commission's website (www.sec.gov).

Non-GAAP Financial Measures

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



FULTON FINANCIAL CORPORATION
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
in thousands, except per-share data and percentages
Three months ended
Dec 31Sep 30Jun 30Mar 31Dec 31
20202020202020202019
Ending Balances
Investments$3,340,424 $3,097,721 $2,974,813 $3,141,440 $2,867,378 
Loans, net of unearned income18,900,820 19,028,621 18,704,722 17,077,403 16,837,526 
Total assets25,906,733 25,543,281 24,617,863 22,929,859 21,886,040 
Deposits20,839,207 20,730,051 19,884,208 17,365,026 17,393,913 
Shareholders' equity2,616,828 2,390,261 2,340,501 2,285,748 2,342,176 
Average Balances
Investments$3,221,289 $2,977,672 $3,096,632 $3,071,828 $2,830,999 
Loans, net of unearned income18,994,514 18,880,519 18,331,797 16,860,067 16,768,057 
Total assets25,749,405 25,169,508 24,139,116 22,252,099 21,812,438 
Deposits20,791,522 20,388,447 19,276,658 17,121,428 17,449,565 
Shareholders' equity2,544,866 2,374,091 2,309,133 2,337,016 2,341,397 
Income Statement
Net interest income$161,591 $154,116 $152,754 $160,746 $159,270 
Provision for credit losses6,240 7,080 19,570 44,030 20,530 
Non-interest income55,574 63,248 55,922 54,644 55,281 
Non-interest expense154,737 139,147 143,006 142,552 138,974 
Income before taxes56,187 71,137 46,101 28,808 55,047 
Net income available to common shareholders48,690 61,607 39,559 26,047 47,789 
Per Share
Net income available to common shareholders (basic)$0.30 $0.38 $0.24 $0.16 $0.29 
Net income available to common shareholders (diluted)$0.30 $0.38 $0.24 $0.16 $0.29 
Cash dividends$0.17 $0.13 $0.13 $0.13 $0.17 
Common shareholders' equity$14.93 $14.74 $14.45 $14.16 $14.26 
Common shareholders' equity (tangible)(1)$11.62 $11.44 $11.15 $10.84 $11.00 
Weighted average shares (basic)162,242 162,061 161,715 163,475 164,135 
Weighted average shares (diluted)163,071 162,579 162,267 164,417 165,039 
(1) Non-GAAP financial measure. Refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this document.


Three months ended
Dec 31Sep 30Jun 30Mar 31Dec 31
20202020202020202019
Asset Quality(2)
Net (recoveries) charge-offs to average loans (annualized)(0.07)%(0.05)%0.09 %0.26 %0.65 %
Non-performing loans to total loans0.78 %0.75 %0.75 %0.82 %0.84 %
Non-performing assets to total assets0.58 %0.57 %0.59 %0.64 %0.68 %
ACL - loans(3) to total loans1.47 %1.40 %1.37 %1.40 %0.97 %
ACL - loans(3) to non-performing loans189 %188 %183 %170 %116 %
Non-performing assets to common shareholders' equity (tangible) and ACL - loans (1)(3)6.42 %6.91 %7.04 %7.37 %7.51 %
Asset Quality, excluding PPP(1)(4)
Net (recoveries) charge-offs to average adjusted loans (annualized)(0.08)%(0.06)%0.10 %— %— %
Non-performing loans to total adjusted loans0.85 %0.83 %0.83 %— %— %
ACL - loans(3) to total adjusted loans1.60 %1.56 %1.53 %— %— %
Profitability
Return on average assets0.79 %0.97 %0.66 %0.47 %0.87 %
Return on average shareholders' equity7.95 %10.32 %6.89 %4.48 %8.10 %
Return on average common shareholders' equity (tangible)(1)10.32 %13.50 %8.99 %5.84 %10.52 %
Net interest margin2.75 %2.70 %2.81 %3.21 %3.22 %
Efficiency ratio(1)69.5 %62.3 %66.4 %64.5 %63.1 %
Efficiency ratio, net 2020 cost savings initiatives(1)62.5 %62.0 %66.4 %64.5 %63.1 %
Capital Ratios
Tangible common equity ratio(1)7.4 %7.4 %7.5 %7.8 %8.5 %
Tier 1 leverage ratio(5)8.1 %7.4 %7.6 %7.9 %8.4 %
Common equity Tier 1 capital ratio(5)9.4 %9.5 %9.5 %9.4 %9.7 %
Tier 1 capital ratio(5)10.3 %9.5 %9.5 %9.4 %9.7 %
Total risk-based capital ratio(5)14.5 %13.9 %13.8 %13.8 %11.8 %
(1) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this document.
(2) Effective January 1, 2020, Fulton adopted Accounting Standards Update 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," referred to as the current expected credit loss model ("CECL"). This accounting standard requires that credit losses for financial assets and off-balance-sheet ("OBS") credit exposures be measured based on expected credit losses, rather than on incurred credit losses as in prior periods.
(3) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.
(4) Asset quality information excluding Paycheck Protection Program ("PPP") loans. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this document.
(5) Regulatory capital ratios as of December 31, 2020 are preliminary and prior periods are actual.




FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
 % Change from
Dec 31Sep 30Jun 30Mar 31Dec 31Sep 30Dec 31
2020202020202020201920202019
ASSETS
Cash and due from banks$120,462 $139,304 $141,702 $181,777 $132,283 (13.5)%(8.9)%
Other interest-earning assets1,819,499 1,489,550 1,007,939 793,572 482,930 22.2 %N/M
Loans held for sale83,886 93,621 77,415 40,645 37,828 (10.4)%N/M
Investment securities3,340,424 3,097,721 2,974,813 3,141,440 2,867,378 7.8 %16.5 %
Loans, net of unearned income18,900,820 19,028,621 18,704,722 17,077,403 16,837,526 (0.7)%12.3 %
Less: ACL - loans(1)(277,567)(266,825)(256,537)(238,508)(163,622)4.0 %69.6 %
     Net loans18,623,253 18,761,796 18,448,185 16,838,895 16,673,904 (0.7)%11.7 %
Premises and equipment231,480 236,943 239,596 236,908 240,046 (2.3)%(3.6)%
Accrued interest receivable72,942 70,766 73,720 59,365 60,898 3.1 %19.8 %
Goodwill and intangible assets536,659 534,907 535,039 535,171 535,303 0.3 %0.3 %
Other assets1,078,128 1,118,673 1,119,454 1,102,086 855,470 (3.6)%26.0 %
    Total Assets$25,906,733 $25,543,281 $24,617,863 $22,929,859 $21,886,040 1.4 %18.4 %
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits$20,839,207 $20,730,051 $19,884,208 $17,365,026 $17,393,913 0.5 %19.8 %
Short-term borrowings630,066 611,727 572,551 1,386,808 883,241 3.0 %(28.7)%
Other liabilities524,369 515,230 525,407 513,811 384,941 1.8 %36.2 %
FHLB advances and long-term debt1,296,263 1,296,012 1,295,196 1,378,466 881,769 — %47.0 %
    Total Liabilities23,289,905 23,153,020 22,277,362 20,644,111 19,543,864 0.6 %19.2 %
Shareholders' equity2,616,828 2,390,261 2,340,501 2,285,748 2,342,176 9.5 %11.7 %
    Total Liabilities and Shareholders' Equity$25,906,733 $25,543,281 $24,617,863 $22,929,859 $21,886,040 1.4 %18.4 %
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage$7,105,092 $7,046,330 $6,934,936 $6,895,069 $6,700,776 0.8 %6.0 %
Commercial and industrial4,088,561 4,007,278 4,033,439 4,450,557 4,445,634 2.0 %(8.0)%
Real estate - residential mortgage3,141,915 3,061,835 2,862,226 2,718,290 2,641,465 2.6 %18.9 %
Real estate - home equity1,202,913 1,222,709 1,251,455 1,292,677 1,314,944 (1.6)%(8.5)%
Real estate - construction1,047,218 1,007,534 972,909 947,768 971,079 3.9 %7.8 %
Consumer466,772 469,551 465,610 468,172 463,164 (0.6)%0.8 %
Equipment lease financing279,118 280,286 281,897 289,726 284,537 (0.4)%(1.9)%
Other(2)(12,481)(27,067)(34,784)15,144 15,927 (53.9)%N/M
     Loans, net of unearned income before PPP17,319,108 17,068,456 16,767,688 17,077,403 16,837,526 1.5 %2.9 %
PPP1,581,712 1,960,165 1,937,034 — — (19.3)%N/M
Total Loans, net of unearned income$18,900,820 $19,028,621 $18,704,722 $17,077,403 $16,837,526 (0.7)%12.3 %
Deposits, by type:
Noninterest-bearing demand$6,531,002 $6,378,077 $6,239,055 $4,531,872 $4,453,324 2.4 %46.7 %
Interest-bearing demand5,818,564 5,813,935 5,099,405 4,724,520 4,720,188 0.1 %23.3 %
Savings5,929,792 5,805,431 5,667,893 5,092,865 5,153,941 2.1 %15.1 %
     Total demand and savings18,279,358 17,997,443 17,006,353 14,349,257 14,327,453 1.6 %27.6 %
Brokered335,185 317,588 310,689 313,337 264,531 5.5 %26.7 %
Time2,224,664 2,415,020 2,567,166 2,702,432 2,801,929 (7.9)%(20.6)%
Total Deposits$20,839,207 $20,730,051 $19,884,208 $17,365,026 $17,393,913 0.5 %19.8 %
Short-term borrowings, by type:
Customer funding$630,066 $611,727 $572,551 $461,808 $383,241 3.0 %64.4 %
Federal funds purchased— — — 200,000 — N/MN/M
Short-term FHLB advances— — — 725,000 500,000 N/M(100.0)%
Total Short-term Borrowings$630,066 $611,727 $572,551 $1,386,808 $883,241 3.0 %(28.7)%
N/M - Not meaningful
(1) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.
(2) Consists of overdrafts and net origination fees and costs.




FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands
Three Months Ended % Change fromYears ended
Dec 31Sep 30Jun 30Mar 31Dec 31Sep 30Dec 31Dec 31
202020202020202020192020201920202019% Change
Interest Income:
Interest income$183,645 $179,159 $180,696 $199,378 $202,159 2.5 %(9.2)%$742,878 $825,306 (10.0)%
Interest expense22,054 25,043 27,942 38,632 42,889 (11.9)%(48.6)%113,671 176,917 (35.7)%
    Net Interest Income161,591 154,116 152,754 160,746 159,270 4.9 %1.5 %629,207 648,389 (3.0)%
Provision for credit losses6,240 7,080 19,570 44,030 20,530 (11.9)%(69.6)%76,920 32,825 N/M
    Net Interest Income after Provision155,351 147,036 133,184 116,716 138,740 5.7 %12.0 %552,287 615,564 (10.3)%
Non-Interest Income:
Wealth management15,653 14,943 13,407 15,055 14,419 4.7 %8.6 %59,058 55,678 6.1 %
Mortgage banking 9,311 16,801 9,964 6,234 5,076 (44.6)%83.4 %42,309 23,099 83.2 %
Consumer banking:
  Card5,123 5,002 4,966 4,685 4,991 2.4 %2.7 %19,777 20,515 (3.6)%
  Overdraft 3,376 3,015 2,107 4,058 4,750 12.0 %(28.9)%12,556 17,949 (30.0)%
  Other consumer banking 2,298 2,406 2,065 2,496 2,688 (4.5)%(14.5)%9,266 11,039 (16.1)%
     Total consumer banking10,798 10,423 9,138 11,239 12,429 3.6 %(13.1)%41,598 49,503 (16.0)%
Commercial banking:
   Merchant and card 5,953 6,237 5,326 5,624 5,841 (4.6)%1.9 %23,139 24,077 (3.9)%
   Cash management 4,737 4,742 4,503 4,742 4,697 (0.1)%0.9 %18,725 18,392 1.8 %
   Capital markets3,513 4,696 5,004 5,075 5,939 (25.2)%(40.8)%18,288 14,875 22.9 %
   Other commercial banking 2,606 2,636 1,914 2,978 3,664 (1.2)%(28.9)%10,134 13,773 (26.4)%
     Total commercial banking 16,809 18,311 16,748 18,419 20,141 (8.2)%(16.5)%70,286 71,117 (1.2)%
Other3,004 2,769 3,660 3,651 3,216 8.5 %(6.6)%13,084 12,030 8.8 %
     Non-interest income before investment securities gains 55,574 63,246 52,917 54,598 55,281 (12.1)%0.5 %226,335 211,427 7.1 %
Investment securities gains, net— 2 3,005 46 — (100.0)%N/M3,053 4,733 (35.5)%
    Total Non-Interest Income55,574 63,248 55,922 54,644 55,281 (12.1)%0.5 %229,388 216,160 6.1 %
Non-Interest Expense:
Salaries and employee benefits83,929 79,227 81,012 80,228 76,975 5.9 %9.0 %324,395 311,934 4.0 %
Net occupancy13,161 13,221 13,144 13,486 13,080 (0.5)%0.6 %53,013 52,826 0.4 %
Data processing and software11,951 12,285 12,193 11,645 11,468 (2.7)%4.2 %48,073 44,679 7.6 %
Other outside services8,334 7,617 7,600 7,881 8,215 9.4 %1.4 %31,432 39,989 (21.4)%
Equipment 3,563 3,711 3,193 3,418 3,475 (4.0)%2.5 %13,885 13,575 2.3 %
Professional fees2,424 2,879 3,331 4,202 2,873 (15.8)%(15.6)%12,835 13,134 (2.3)%
Marketing1,098 1,147 1,303 1,579 1,503 (4.3)%(27.0)%5,127 9,848 (47.9)%
Amortization of tax credit investments1,532 1,694 1,450 1,450 1,505 (9.6)%1.8 %6,126 6,021 1.7 %
FDIC insurance2,346 1,578 2,133 2,808 2,177 48.7 %7.8 %8,865 7,780 13.9 %
Intangible amortization132 132 132 132 142 0.2 %(6.8)%529 1,427 (63.0)%
Prepayment penalty on FHLB advances— — 2,878 — — N/MN/M2,878 4,326 (33.5)%
Other26,268 15,654 14,637 15,723 17,561 67.8 %49.6 %72,282 62,197 16.2 %
    Total Non-Interest Expense154,737 139,145 143,006 142,552 138,974 11.2 %11.3 %579,440 567,736 2.1 %
    Income Before Income Taxes56,187 71,139 46,100 28,808 55,047 (21.0)%2.1 %202,235 263,988 (23.4)%
Income tax expense5,362 9,529 6,542 2,761 7,258 (43.7)%(26.1)%24,194 37,649 (35.7)%
    Net Income50,825 61,610 39,558 26,047 47,789 (17.5)%6.4 %178,040 226,339 (21.3)%
Preferred stock dividends(2,135)— — — — N/MN/M(2,135)— N/M
     Net Income Available to Common Shareholders$48,690 $61,610 $39,558 $26,047 $47,789 (21.0)%1.9 %$175,905 $226,339 (22.3)%
PER SHARE:
Net income:
    Basic$0.30 $0.38 $0.24 $0.16 $0.29 (21.1)%3.4 %$1.08 $1.36 (20.6)%
    Diluted0.30 0.38 0.24 0.16 0.29 (21.1)%3.4 %1.08 1.35 (20.0)%
Cash dividends0.17 0.13 0.13 0.13 0.17 30.8 %— %0.56 0.56 — %
Weighted average shares (basic)162,242 162,061 161,715 163,475 164,135 0.1 %(1.2)%162,372 166,902 (2.7)%
Weighted average shares (diluted)163,071 162,579 162,267 164,417 165,039 0.3 %(1.2)%163,090 167,792 (2.8)%





FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Three months ended
December 31, 2020September 30, 2020December 31, 2019
AverageInterestYield/AverageInterestYield/AverageInterestYield/
Balance(1)RateBalance(1)RateBalance(1)Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income$18,994,514 $164,329 3.45 %$18,880,519 $160,344 3.38 %$16,768,057 $182,024 4.31 %
Taxable investment securities2,233,730 13,559 2.43 %2,011,893 13,150 2.61 %2,198,252 15,621 2.84 %
Tax-exempt investment securities886,329 7,044 3.17 %861,764 6,899 3.19 %594,487 5,058 3.38 %
Total Investment Securities3,120,059 20,603 2.64 %2,873,657 20,048 2.79 %2,792,739 20,679 2.96 %
Loans held for sale76,871 521 2.71 %79,999 728 3.64 %30,062 295 3.93 %
Other interest-earning assets1,668,454 1,179 0.28 %1,387,327 1,028 0.30 %492,560 2,370 1.92 %
Total Interest-earning Assets23,859,898 186,632 3.12 %23,221,502 182,149 3.13 %20,083,418 205,368 4.07 %
Noninterest-earning assets:
Cash and due from banks126,190 138,567 128,417 
Premises and equipment236,265 239,183 239,294 
Other assets1,799,381 1,835,190 1,528,758 
Less: ACL - loans(2)(272,329)(264,934)(167,449)
Total Assets$25,749,405 $25,169,508 $21,812,438 
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits$5,762,150 $1,457 0.10 %$5,591,548 $1,913 0.14 %$4,699,040 $8,494 0.72 %
Savings deposits5,905,137 1,866 0.13 %5,716,050 2,347 0.16 %5,205,260 10,253 0.78 %
Brokered deposits340,451 451 0.53 %314,721 440 0.56 %261,689 1,279 1.94 %
Time deposits2,306,556 8,082 1.39 %2,495,445 9,931 1.58 %2,959,008 13,775 1.86 %
Total Interest-bearing Deposits14,314,294 11,856 0.33 %14,117,764 14,631 0.41 %13,124,997 33,801 1.02 %
Short-term borrowings622,623 268 0.17 %613,127 370 0.24 %717,811 2,343 1.29 %
FHLB advances and long-term debt1,296,139 9,930 3.06 %1,295,515 10,042 3.10 %875,802 6,745 3.07 %
Total Interest-bearing Liabilities16,233,056 22,054 0.54 %16,026,406 25,043 0.62 %14,718,610 42,889 1.16 %
Noninterest-bearing liabilities:
Demand deposits6,477,228 6,270,683 4,324,568 
Total Deposits/Cost of Deposits20,791,522 0.23 %20,388,447 0.29 %17,449,565 0.77 %
Other494,255 498,328 427,863 
Total Liabilities23,204,539 $22,795,417 19,471,041 
Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")22,710,284 0.39 %22,297,089 0.45 %19,043,178 0.89 %
Shareholders' equity2,544,866 2,374,091 2,341,397 
Total Liabilities and Shareholders' Equity$25,749,405 $25,169,508 $21,812,438 
Net interest income/net interest margin (fully taxable equivalent)164,578 2.75 %157,106 2.70 %$162,479 3.22 %
Tax equivalent adjustment(2,987)(2,990)$(3,209)
Net interest income$161,591 $154,116 $159,270 
(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 "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.








FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):
dollars in thousands
Three months ended% Change from
Dec 31Sep 30Jun 30Mar 31Dec 31Sep 30Dec 31
2020202020202020201920202019
Loans, by type:
Real estate - commercial mortgage$7,101,363 $6,986,528 $6,875,872 $6,746,766 $6,561,029 1.6 %8.2 %
Commercial and industrial4,024,879 4,030,750 4,451,228 4,446,750 4,574,047 (0.1)%(12.0)%
Real estate - residential mortgage3,087,529 2,975,516 2,769,682 2,670,019 2,606,136 3.8 %18.5 %
Real estate - home equity1,212,113 1,237,602 1,271,190 1,300,132 1,331,088 (2.1)%(8.9)%
Real estate - construction1,009,284 981,589 941,079 929,529 934,556 2.8 %8.0 %
Consumer468,678 464,851 465,728 466,415 464,606 0.8 %0.9 %
Equipment lease financing279,059 279,217 284,658 284,566 281,451 (0.1)%(0.8)%
Other(1)(18,817)(28,656)13,443 15,890 14,058 (34.3)%N/M
     Loans, net of unearned income before PPP17,164,088 16,927,397 17,072,880 16,860,067 16,766,971 1.4 %2.4 %
PPP1,830,426 1,953,122 1,258,917 — — (6.3)%N/M
Total Loans, net of unearned income$18,994,514 $18,880,519 $18,331,797 $16,860,067 $16,766,971 0.6 %13.3 %
Deposits, by type:
Noninterest-bearing demand$6,477,228 $6,270,683 $5,789,788 $4,307,027 $4,324,568 3.3 %49.8 %
Interest-bearing demand5,762,150 5,591,548 5,103,419 4,649,905 4,699,040 3.1 %22.6 %
Savings5,905,137 5,716,050 5,446,368 5,127,662 5,205,260 3.3 %13.4 %
     Total demand and savings18,144,515 17,578,281 16,339,575 14,084,594 14,228,868 3.2 %27.5 %
Brokered340,451 314,721 312,121 275,359 261,689 8.2 %30.1 %
Time2,306,556 2,495,445 2,624,962 2,761,474 2,959,008 (7.6)%(22.0)%
Total Deposits$20,791,522 $20,388,447 $19,276,658 $17,121,427 $17,449,565 2.0 %19.2 %
Short-term borrowings, by type:
Customer funding$622,623 $613,127 $546,716 $428,240 $377,529 1.5 %64.9 %
Federal funds purchased— — 74,231 186,868 91,467 N/M(100.0)%
Short-term FHLB advances and other borrowings— — 86,824 687,937 248,815 N/M(100.0)%
Total Short-term borrowings$622,623 $613,127 $707,771 $1,303,045 $717,811 1.5 %(13.3)%
(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
20202019
AverageInterestYield/AverageInterestYield/
Balance(1)RateBalance(1)Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income$18,270,390 $662,785 3.63 %$16,430,347 $747,119 4.55 %
Taxable investment securities2,182,410 58,173 2.66 %2,278,448 62,556 2.74 %
Tax-exempt investment securities825,057 26,641 3.22 %500,398 17,998 3.57 %
Total Investment Securities3,007,467 84,814 2.82 %2,778,846 80,554 2.89 %
Loans held for sale60,015 2,077 3.46 %25,795 1,351 5.24 %
Other interest-earning assets1,120,727 5,504 0.49 %445,008 9,249 2.08 %
Total Interest-earning Assets22,458,599 755,181 3.36 %19,679,996 838,273 4.26 %
Noninterest-earning assets:
Cash and due from banks139,146 119,144 
Premises and equipment238,864 239,376 
Other assets1,746,956 1,385,689 
Less: ACL - loans(2)(249,848)(166,165)
Total Assets$24,333,717 $21,258,040 
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits$5,278,941 $11,390 0.22 %$4,384,059 $33,348 0.76 %
Savings deposits5,550,234 14,654 0.26 %5,018,381 41,823 0.83 %
Brokered deposits310,763 2,387 0.77 %245,501 5,779 2.35 %
Time deposits2,546,305 41,615 1.63 %2,869,326 50,825 1.77 %
Total Interest-bearing Deposits13,686,243 70,045 0.51 %12,517,267 131,775 1.05 %
Short-term borrowings810,583 5,227 0.64 %849,679 14,543 1.70 %
FHLB advances and long-term debt1,254,300 38,398 3.06 %942,600 30,599 3.25 %
Total Interest-bearing Liabilities15,751,126 113,671 0.72 %14,309,546 176,917 1.24 %
Noninterest-bearing liabilities:
Demand deposits5,714,803 4,249,294 
Total Deposits/Cost of Deposits19,401,046 0.36 %16,766,561 0.79 %
Other476,139 393,130 
Total Liabilities21,942,068 18,951,970 
Total Interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")21,465,929 0.53 %18,558,840 0.95 %
Shareholders' equity2,391,649 2,306,070 
Total Liabilities and Shareholders' Equity$24,333,717 $21,258,040 
Net interest income/net interest margin (fully taxable equivalent)641,510 2.86 %661,356 3.36 %
Tax equivalent adjustment(12,303)(12,967)
Net interest income$629,207 $648,389 
(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 "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.




FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):
dollars in thousands
Year ended December 31
20202019% Change
Loans, by type:
Real estate - commercial mortgage$6,928,269 $6,463,783 7.2 %
Commercial and industrial4,237,252 4,473,549 (5.3)%
Real estate - residential mortgage2,876,538 2,441,684 17.8 %
Real estate - home equity1,255,094 1,382,908 (9.2)%
Real estate - construction965,534 928,183 4.0 %
Consumer466,419 448,205 4.1 %
Equipment lease financing281,859 279,489 0.8 %
Other(1)(4,640)12,546 N/M
     Loans, net of unearned income before PPP17,006,325 16,430,347 3.5 %
PPP1,264,065 — N/M
Total Loans, net of unearned income$18,270,390 $16,430,347 11.2 %
Deposits, by type:
Noninterest-bearing demand$5,714,803 $4,249,294 34.5 %
Interest-bearing demand5,278,941 4,384,059 20.4 %
Savings5,550,234 5,018,381 10.6 %
   Total demand and savings16,543,978 13,651,734 21.2 %
Brokered310,763 245,501 26.6 %
Time2,546,305 2,869,326 (11.3)%
Total Deposits$19,401,046 $16,766,561 15.7 %
Short-term borrowings, by type:
Customer funding$553,033 $355,983 55.4 %
Federal funds purchased 64,918 132,578 (51.0)%
Short-term FHLB advances and other borrowings192,632 361,118 (46.7)%
Total Short-term Borrowings$810,583 $849,679 (4.6)%
(1) Consists of overdrafts and net origination fees and costs.




FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
Three months endedYear ended
Dec 31Sep 30Jun 30Mar 31Dec 31Dec 31Dec 31
2020202020202020201920202019
Allowance for credit losses related to Loans, net of unearned income:
Balance at beginning of period$266,825 $256,537 $238,508 $163,620 $166,135 $163,622 $160,537 
Impact of adopting CECL— — — 45,724 — 45,724 — 
Loans charged off:
    Commercial and industrial(1,567)(2,969)(3,480)(10,899)(30,547)(18,915)(42,410)
    Real estate - commercial mortgage(300)(746)(2,324)(855)(68)(4,225)(1,837)
    Consumer and home equity(668)(1,093)(1,303)(1,529)(1,416)(4,593)(4,694)
    Real estate - residential mortgage— (198)(235)(187)(223)(620)(1,545)
    Real estate - construction— — (17)— — (17)(143)
    Equipment lease financing and other(483)(483)(688)(533)(727)(2,187)(2,560)
    Total loans charged off(3,018)(5,489)(8,047)(14,003)(32,981)(30,557)(53,189)
Recoveries of loans previously charged off:
    Commercial and industrial4,581 2,103 2,978 1,734 2,487 11,396 8,721 
    Real estate - commercial mortgage588 100 95 244 1,453 1,027 2,202 
    Consumer and home equity594 491 649 646 437 2,380 1,994 
    Real estate - residential mortgage199 95 112 85 206 491 989 
    Real estate - construction179 4,873 — 70 1,098 5,122 2,591 
    Equipment lease financing and other219 185 92 108 182 604 666 
    Recoveries of loans previously charged off6,360 7,847 3,926 2,887 5,863 21,020 17,163 
Net loans recovered (charged off)3,342 2,358 (4,121)(11,116)(27,118)(9,537)(36,026)
Provision for credit losses7,400 7,930 22,150 40,280 24,603 77,760 39,111 
Balance at end of period$277,567 $266,825 $256,537 $238,508 $163,620 $277,569 $163,622 
Net (recoveries) charge-offs to average loans (annualized)(0.07)%(0.05)%0.09 %0.26 %0.65 %0.05 %0.22 %
Allowance credit losses related to OBS Credit Exposures(1)
Balance at beginning of period$15,533 $16,383 $18,963 $2,588 $6,662 
Impact of adopting CECL— — — 12,625 — 
Provision for credit losses (1,160)(850)(2,580)3,750 (4,074)
Balance at end of period$14,373 $15,533 $16,383 $18,963 $2,588 
NON-PERFORMING ASSETS:
Non-accrual loans$137,198 $128,321 $125,037 $120,345 $125,098 
Loans 90 days past due and accruing9,929 13,761 14,767 19,593 16,057 
    Total non-performing loans147,127 142,082 139,804 139,938 141,155 
Other real estate owned4,178 4,565 5,418 6,593 6,831 
Total non-performing assets$151,305 $146,647 $145,222 $146,531 $147,986 
NON-PERFORMING LOANS, BY TYPE:
Commercial and industrial$32,610 $37,224 $39,730 $41,318 $49,491 
Real estate - commercial mortgage52,647 43,426 42,374 36,538 37,279 
Real estate - residential mortgage30,793 28,287 22,887 25,832 22,411 
Consumer and home equity13,090 12,292 11,911 11,226 11,026 
Real estate - construction1,550 4,051 4,525 4,379 4,306 
Equipment lease financing and other16,437 16,802 18,377 20,645 16,642 
Total non-performing loans$147,127 $142,082 $139,804 $139,938 $141,155 
(1) The allowance for credit losses related to OBS Credit Exposures is presented in "other liabilities" on the consolidated balance sheets.




FULTON FINANCIAL CORPORATION
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
in thousands, except per share data and percentages
Explanatory note:This press release contains supplemental financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:
Three months ended
Dec 31Sep 30Jun 30Mar 31Dec 31
20202020202020202019
Common shareholders' equity (tangible), per share
Shareholders' equity$2,616,828 $2,390,261 $2,340,501 $2,285,748 $2,342,176 
Less: Preferred stock(192,878)— — — — 
Less: Goodwill and intangible assets(536,659)(534,907)(535,039)(535,171)(535,303)
Tangible common shareholders' equity (numerator)$1,887,291 $1,855,354 $1,805,462 $1,750,577 $1,806,873 
Shares outstanding, end of period (denominator)162,350 162,134 161,958 161,435 164,218 
Common shareholders' equity (tangible), per share$11.62 $11.44 $11.15 $10.84 $11.00 
Return on average common shareholders' equity (tangible)
Net income available to common shareholders$48,690 $61,610 $39,558 $26,047 $47,789 
Plus: Intangible amortization, net of tax104 103 104 104 112 
(Numerator)$48,794 $61,713 $39,662 $26,151 $47,901 
Average shareholders' equity$2,544,866 $2,374,091 $2,309,133 $2,337,016 $2,341,397 
Less: Average preferred stock(127,639)— — — — 
Less: Average goodwill and intangible assets(535,474)(534,971)(535,103)(535,235)(534,190)
Average tangible common shareholders' equity (denominator)$1,881,753 $1,839,120 $1,774,030 $1,801,781 $1,807,207 
Return on average common shareholders' equity (tangible), annualized10.32 %13.50 %8.99 %5.84 %10.52 %
Tangible common equity to tangible assets (TCE Ratio)
Shareholders' equity$2,616,828 $2,390,261 $2,340,501 $2,285,748 $2,342,176 
Less: Preferred stock(192,878)— — — — 
Less: Goodwill and intangible assets(536,659)(534,907)(535,039)(535,171)(535,303)
Tangible common shareholders' equity (numerator)$1,887,291 $1,855,354 $1,805,462 $1,750,577 $1,806,873 
Total assets$25,906,733 $25,543,281 $24,617,863 $22,929,859 $21,886,040 
Less: Goodwill and intangible assets(536,659)(534,907)(535,039)(535,171)(535,303)
Total tangible assets (denominator)$25,370,074 $25,008,374 $24,082,824 $22,394,688 $21,350,737 
Tangible common equity to tangible assets7.44 %7.42 %7.50 %7.82 %8.46 %
Efficiency ratio
Non-interest expense$154,737 $139,145 $143,006 $142,552 $138,974 
Less: Amortization of tax credit investments(1,532)(1,694)(1,450)(1,450)(1,505)
Less: Intangible amortization(132)(132)(132)(132)(142)
Less: Prepayment penalty on FHLB advances— — (2,878)— — 
Non-interest expense (numerator)$153,073 $137,319 $138,546 $140,970 $137,327 
Net interest income (fully taxable equivalent)$164,578 $157,106 $155,854 $163,970 $162,479 
Plus: Total Non-interest income55,574 63,248 55,922 54,644 55,281 
Less: Investment securities gains, net— (2)(3,005)(46)— 
Total revenue (denominator)$220,151 $220,353 $208,771 $218,568 $217,760 
Efficiency ratio69.5 %62.3 %66.4 %64.5 %63.1 %


Three months ended
Dec 31Sep 30Jun 30Mar 31Dec 31
20202020202020202019
Efficiency ratio, net 2020 cost savings initiatives
Non-interest expense$154,737 $139,145 $143,006 $142,552 $138,974 
Less: Amortization of tax credit investments(1,532)(1,694)(1,450)(1,450)(1,505)
Less: Intangible amortization(132)(132)(132)(132)(142)
Less: 2020 cost savings initiatives(15,400)(800)— — — 
Less: Prepayment penalty on FHLB advances— — (2,878)— — 
Non-interest expense (numerator)$137,673 $136,519 $138,546 $140,970 $137,327 
Net interest income (fully taxable equivalent)$164,578 $157,106 $155,854 $163,970 $162,479 
Plus: Total Non-interest income55,574 63,248 55,922 54,644 55,281 
Less: Investment securities gains, net— (2)(3,005)(46)— 
Total revenue (denominator)$220,151 $220,353 $208,771 $218,568 $217,760 
Efficiency ratio, net 2020 cost savings initiatives62.5 %62.0 %66.4 %64.5 %63.1 %
Non-performing assets to common shareholders' equity (tangible) and ACL - loans(1)
Non-performing assets (numerator)$151,305 $146,647 $145,222 $146,531 $147,986 
Tangible common shareholders' equity$1,887,291 $1,855,354 $1,805,462 $1,750,577 $1,806,873 
Plus: ACL - loans277,567 266,825 256,537 238,508 163,622 
Tangible common shareholders' equity and ACL - loans (denominator)$2,164,858 $2,122,179 $2,061,999 $1,989,085 $1,970,495 
Non-performing assets to tangible common shareholders' equity and ACL - loans6.99 %6.91 %7.04 %7.37 %7.51 %
Asset Quality, excluding PPP
Net loans recovered (charged-off) (numerator)$3,342 $2,358 $(4,121)$(11,116)$(27,118)
Average loans, net of unearned income$18,994,514 $18,880,519 $18,331,797 $16,860,067 $16,766,971 
Less: Average PPP loans(1,830,426)(1,953,122)(1,258,917)— — 
Total adjusted average loans (denominator)$17,164,088 $16,927,397 $17,072,880 $16,860,067 $16,766,971 
Net (recoveries) charge-offs to adjusted average loans (annualized)(0.08)%(0.06)%0.10 %0.26 %0.65 %
Non-performing loans (numerator)$147,127 $142,082 $139,804 $139,938 $141,155 
Loans, net of unearned income$18,900,820 $19,028,621 $18,704,722 $17,077,403 $16,837,526 
Less: PPP loans(1,581,712)(1,960,165)(1,937,034)— — 
Total adjusted loans (denominator)$17,319,108 $17,068,456 $16,767,688 $17,077,403 $16,837,526 
Non-performing loans to adjusted total loans0.85 %0.83 %0.83 %0.82 %0.84 %
ACL - loans (numerator)$277,567 $266,825 256,537 238,508 $163,622 
Loans, net of unearned income$18,900,820 $19,028,621 $18,704,722 $17,077,403 $16,837,526 
Less: PPP loans(1,581,712)(1,960,165)(1,937,034)— — 
Total adjusted loans (denominator)$17,319,108 $17,068,456 $16,767,688 $17,077,403 $16,837,526 
ACL - loans to adjusted total loans1.60 %1.56 %1.53 %1.40 %0.97 %
Note: numbers may not sum due to rounding.
(1) "ACL - loans" relates to the ACL specifically on "Loans, net of unearned income" and does not include the ACL related to OBS credit exposures.