EX-99.1 2 exhibit991123121earningsre.htm EX-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 2021 Results

(January 18, 2022) – Lancaster, PA – Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income available to common shareholders of $59.3 million, or $0.37 per diluted share, for the fourth quarter of 2021 and $265.2 million, or $1.62 per diluted share, for the year ended December 31, 2021.

“2021 was a very good year for Fulton — a result of our continued successful execution of our relationship banking strategy," said E. Philip Wenger, Chairman and CEO of Fulton Financial Corporation. "Despite a difficult operating environment, the Fulton team did an outstanding job in helping our customers through some very challenging times. Our employees served as trusted financial advisors and delivered a wide variety of financial products and services. These activities, coupled with our success in keeping credit costs down and maintaining expenses, translated into record earnings per share for 2021. We are encouraged by many of the core business trends we saw during the year, particularly in the second half of 2021, and believe we are well-positioned to continue to advance our strategic priorities and deliver shareholder value in 2022."

Net Interest Income and Balance Sheet

Net interest income for the fourth quarter of 2021 was $165.6 million, $5.7 million lower than the third quarter of 2021. Net interest margin for the fourth quarter of 2021 decreased 5 basis points, to 2.77%, from 2.82% in the third quarter of 2021. The quarter-over-quarter decreases in net interest income and net interest margin were primarily due to a decrease in loan fees related to Paycheck Protection Program ("PPP") loans, which were $10.0 million in the fourth quarter of 2021 compared to $17.7 million in the third quarter of 2021, partially offset by a lower cost of deposits. The PPP loan balance as of December 31, 2021 was $301.3 million.
For the year ended December 31, 2021, net interest income was $663.7 million, an increase of $34.5 million in comparison to the year ended December 31, 2020. Net interest income for 2021 included $59.0 million in PPP loan fees. The yield on average interest-earning assets and the rate on average interest-bearing liabilities both declined 34 basis points in 2021 in comparison to 2020. The net interest margin in 2021 was 2.78% compared to 2.86% in 2020.

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Total average interest-earning assets for the fourth quarter of 2021 were $24.3 billion, a decrease of $0.3 billion from the third quarter of 2021, driven by decreases in PPP loans of $0.4 billion and deposits with other banks reflected in other interest-earning assets of $0.2 billion, partially offset by increases in residential mortgage loans of $0.1 billion and tax-exempt investment securities of $0.1 billion.

Total average interest-earning assets for the year ended December 31, 2021 were $24.4 billion, an increase of $1.9 billion from 2020. Average loans, net of unearned income, were $18.6 billion, an increase of $0.4 billion from 2020. Included in average loans were PPP loans that had an average balance of $1.1 billion, a decrease of $0.1 billion from 2020. The increase in average loans was mainly driven by a $0.6 billion increase in the residential mortgage loan portfolio.

Total average interest-bearing liabilities decreased $0.3 billion, to $15.5 billion, in the fourth quarter of 2021 compared to the third quarter of 2021, driven by decreases of $0.2 billion in wholesale deposits reflected in demand deposits and $0.1 billion in time deposits. Average noninterest-bearing deposits increased $0.1 billion in the fourth quarter of 2021.

Total average interest-bearing deposits for the year ended December 31, 2021 increased $0.8 billion from 2020, driven by increases in demand and savings deposits. Average noninterest-bearing deposits increased $1.5 billion for the year ended December 31, 2021.

The Corporation repurchased 1.1 million shares and 2.8 million shares of Fulton common stock during the fourth quarter of 2021 and for the year ended December 31, 2021, respectively, at a cost of $17.8 million and $43.9 million, respectively. As of December 31, 2021, up to an additional $31.1 million of Fulton's common stock may be repurchased through March 31, 2022 under the $75 million share repurchase program originally announced in February 2021.

Asset Quality

In the fourth quarter of 2021, a negative provision for credit losses of $5.0 million was recognized, as compared to a negative provision for credit losses of $0.6 million recognized in the third quarter of 2021. The negative provision for credit losses for the fourth quarter of 2021 was recorded to adjust the allowance for credit losses as a result of improved economic conditions. For the year ended December 31, 2021, the negative provision for credit losses was $14.6 million compared to a provision for credit losses of $76.9 million in 2020. A $6.2 million provision for credit losses was recognized in the fourth quarter of 2020.

Non-performing assets were $153.9 million, or 0.60% of total assets, at December 31, 2021, compared to $152.1 million, or 0.58% of total assets, and $151.3 million, or 0.58% of total assets, at September 30, 2021 and December 31, 2020, respectively.

Annualized net charge-offs (recoveries) for the quarter ended December 31, 2021, were 0.07% of total average loans, compared to (0.05)% and (0.07)% for the quarters ended September 30, 2021 and December 31, 2020, respectively.
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Non-interest Income

Non-interest income in the fourth quarter of 2021 was $63.9 million, an increase of $1.3 million, or 2.1%, from the third quarter of 2021. The increase in non-interest income was primarily due to a $1.6 million increase in income from equity method investments reflected in other income.

Compared to the fourth quarter of 2020, non-interest income in the fourth quarter of 2021 increased $8.3 million, or 14.9%, from $55.6 million, primarily due to an increase of $3.9 million in income from equity method investments, a $2.6 million increase in wealth management income due to growth in managed assets, and increases of $1.7 million and $1.3 million in commercial banking income and consumer banking income, respectively. These increases were partially offset with a $2.1 million decrease in mortgage banking income, primarily due to a decline in income from loan sales for the period.

For the year ended December 31, 2021, non-interest income, excluding investment securities gains, was $240.2 million, an increase of $13.9 million, or 6.1%, from 2020. The increase was primarily due to increases of $12.7 million in wealth management, $7.1 million in income from equity method investments and $3.9 million in consumer banking income, offset by declines of $8.7 million in mortgage banking income, due to a $29.2 million decline in income from loan sales, offset by a net favorable pre-tax income change attributable to the mortgage servicing rights valuation allowance as compared to 2020 of $20.4 million. Specifically, Fulton increased the mortgage servicing valuation allowance by $10.5 million in 2020. The Corporation reduced the valuation allowance by $9.9 million in 2021. As of December 31, 2021, the mortgage servicing rights valuation allowance remaining was $0.6 million.

During both 2021 and 2020, Fulton completed balance sheet restructurings involving sales of investment securities and corresponding prepayments of FHLB advances. During 2021, the balance sheet restructuring involved gains on sales of Visa, Inc. Class B restricted shares of $34.0 million that were offset in non-interest expense by debt extinguishment of costs of $33.2 million.

Non-interest Expense

Non-interest expense was $154.0 million in the fourth quarter of 2021, an increase of $9.4 million, or 6.5%, compared to the third quarter of 2021. The increase was primarily due to increases in salaries and employee benefits of $2.8 million during the fourth quarter of 2021 as a result of higher incentive compensation and bonuses, charitable contributions of $2.5 million, reflected in other expense, and other outside services expense of $1.7 million, driven by technology-related services.

Compared to the fourth quarter of 2020, non-interest expense decreased $0.7 million, or 0.5%, in the fourth quarter of 2021, primarily due to a write-off in the prior year period of $4.8 million for fixed assets and $5.8 million of lease termination charges, partially offset by increases of $2.7 million in data processing and software and $1.3 million in other outside services. In addition, salaries and employee benefits increased $1.6 million, primarily due to an increase of $6.8 million for incentive compensation and bonuses, partially offset by a $4.4 million decrease in employee severance expense. During the
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fourth quarter of 2021, the Corporation made a $1.0 million contribution to the Fulton Forward Foundation.

Total non-interest expense increased $38.4 million to $617.8 million, or 6.6%, in 2021 in comparison to 2020. Non-interest expense, excluding debt extinguishment costs of $33.2 million, was $584.6 million, an increase of $21.3 million, or 3.8%, compared to non-interest expenses of $563.2 million in 2020, which excludes expenses associated with cost savings initiatives of $16.2 million. Excluding the net decrease in severance costs of $5.9 million, the increase in non-interest expense over 2020 was primarily due to increases in salaries and employee benefits of $10.6 million, attributable to a $12.7 million increase in incentive compensation and bonuses. Also contributing to the increase in non-interest expense were $8.4 million in data processing and software and $2.8 million in other outside services expense, partially offset by a $3.2 million decrease in professional fees.

Income Tax Expense

For the year ended December 31, 2021, the effective tax rate was 17.6% compared to 12.0% in 2020. The increase was a result of higher income before income taxes.

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

Safe Harbor Statement

This news release may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," “projects,” the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation’s future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation’s business or financial results.
Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, the statements are based on current beliefs, expectations and assumptions regarding the future of the Corporation’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation’s control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2020, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021, and other current and periodic reports, which have been or will be filed with the Securities and Exchange Commission and are or will be available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the Securities and Exchange Commission's website (www.sec.gov).

Non-GAAP Financial Measures

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




























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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
20212021202120212020
Ending Balances
Investments$4,167,774$4,000,760$3,921,658$3,612,010$3,340,424
Net loans18,325,35018,269,40718,586,75618,990,98618,900,820
Total assets25,796,39826,390,83226,079,77425,892,99025,906,733
Deposits21,573,49922,074,04121,724,31221,633,83820,839,207
Shareholders' equity2,712,6802,699,8182,692,9582,629,6552,616,828
Average Balances
Investments$3,980,045$3,914,627$3,670,333$3,448,166$3,221,289
Net loans18,220,55018,414,15318,906,55618,980,58618,994,514
Total assets26,136,53626,440,87626,017,54226,082,81625,749,405
Deposits21,876,93822,123,48021,765,60121,117,02420,791,522
Shareholders' equity2,713,1982,722,8332,669,4132,637,0982,544,866
Income Statement
Net interest income$165,613 $171,270 $162,399 $164,448 $161,591 
Provision for credit losses(5,000)(600)(3,500)(5,500)6,240 
Non-interest income63,881 62,577 51,890 95,397 55,574 
Non-interest expense154,019 144,596 140,831 178,384 154,738 
Income before taxes80,475 89,851 76,958 86,961 56,187 
Net income available to common shareholders59,325 73,021 62,402 70,472 48,690 
Pre-provision net revenue(1)
77,837 90,947 75,575 81,795 64,092 
Per Share
Net income available to common shareholders (basic)$0.37 $0.45 $0.38 $0.43 $0.30 
Net income available to common shareholders (diluted)$0.37 $0.45 $0.38 $0.43 $0.30 
Cash dividends$0.22 $0.14 $0.14 $0.14 $0.17 
Common shareholders' equity$15.70 $15.53 $15.34 $14.99 $14.93 
Common shareholders' equity (tangible)(1)
$12.35 $12.21 $12.05 $11.69 $11.62 
Weighted average shares (basic)161,210 162,506 162,785 162,441 162,242 
Weighted average shares (diluted)162,355 163,456 163,858 163,737 163,071 
(1) Non-GAAP financial measure. Refer to the calculation on the page titled “Reconciliation of Non-GAAP Measures” at the end of this document.
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Three months ended
Dec 31Sep 30Jun 30Mar 31Dec 31
20212021202120212020
Asset Quality
Net charge-offs (recoveries) to average loans (annualized)0.07 %(0.05)%0.15 %0.13 %(0.07)%
Non-performing loans to total loans0.83 %0.82 %0.83 %0.80 %0.78 %
Non-performing assets to total assets0.60 %0.58 %0.60 %0.60 %0.58 %
ACL - loans(2) to total loans
1.36 %1.41 %1.37 %1.40 %1.47 %
ACL - loans(2) to non-performing loans
164 %171 %166 %174 %189 %
Asset Quality, excluding PPP(1)(3)
Net charge-offs (recoveries) to adjusted average loans (annualized)0.07 %(0.05)%0.16 %0.14 %(0.08)%
Non-performing loans to total adjusted loans0.84 %0.85 %0.88 %0.88 %0.85 %
ACL - loans(2) to total adjusted loans
1.38 %1.45 %1.46 %1.54 %1.60 %
Profitability
Return on average assets0.94 %1.13 %1.00 %1.14 %0.79 %
Return on average common shareholders' equity9.34 %11.45 %10.01 %11.73 %8.21 %
Return on average common shareholders' equity (tangible)(1)
11.89 %14.56 %12.93 %15.00 %10.32 %
Net interest margin2.77 %2.82 %2.73 %2.79 %2.75 %
Efficiency ratio(1)
65.2 %60.3 %63.8 %63.0 %62.5 %
Non-interest expenses to total average assets(1)
2.30 %2.14 %2.14 %2.25 %2.13 %
Capital Ratios
Tangible common equity ratio(1)
7.8 %7.6 %7.7 %7.5 %7.4 %
Tier 1 leverage ratio(4)
8.5 %8.4 %8.5 %8.3 %8.2 %
Common equity Tier 1 capital ratio(4)
10.0 %10.1 %10.0 %9.8 %9.5 %
Tier 1 risk-based capital ratio(4)
11.0 %11.1 %11.0 %10.8 %10.5 %
Total risk-based capital ratio(4)
14.3 %14.4 %14.5 %14.2 %14.4 %
(1) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this document.
(2) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet ("OBS") credit exposures.
(3) Asset quality information excluding Paycheck Protection Program ("PPP") loans. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this document.
(4) Regulatory capital ratios as of December 31, 2021 are preliminary and prior periods are actual.

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FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
 % Change from
Dec 31Sep 30Jun 30Mar 31Dec 31Sep 30Dec 31
2021202120212021202020212020
ASSETS
Cash and due from banks$172,276 $260,564 $143,002 $102,570 $120,462 (33.9)%43.0 %
Other interest-earning assets1,523,973 2,271,738 1,823,688 1,625,515 1,819,499 (32.9)%(16.2)%
Loans held for sale35,768 43,123 41,924 34,092 83,886 (17.1)%(57.4)%
Investment securities4,167,774 4,000,760 3,921,658 3,612,010 3,340,424 4.2 %24.8 %
Net loans18,325,350 18,269,407 18,586,756 18,990,986 18,900,820 0.3 %(3.0)%
Less: ACL - loans(1)
(249,001)(256,727)(255,032)(265,986)(277,567)(3.0)%(10.3)%
   Loans, net18,076,349 18,012,680 18,331,724 18,725,000 18,623,253 0.4 %(2.9)%
Net, premises and equipment220,357 228,179 228,353 229,035 231,480 (3.4)%(4.8)%
Accrued interest receivable57,451 57,902 63,232 65,649 72,942 (0.8)%(21.2)%
Goodwill and intangible assets538,053 536,697 536,847 536,544 536,659 0.3 %0.3 %
Other assets1,004,397 979,189 989,346 962,575 1,078,128 2.6 %(6.8)%
    Total Assets$25,796,398 $26,390,832 $26,079,774 $25,892,990 $25,906,733 (2.3)%(0.4)%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits$21,573,499 $22,074,041 $21,724,312 $21,633,838 $20,839,207 (2.3)%3.5 %
Short-term borrowings416,764 468,967 533,749 520,989 630,066 (11.1)%(33.9)%
Other liabilities472,110 520,620 501,542 482,101 524,369 (9.3)%(10.0)%
Long-term borrowings621,345 627,386 627,213 626,407 1,296,263 (1.0)%(52.1)%
    Total Liabilities23,083,718 23,691,014 23,386,816 23,263,335 23,289,905 (2.6)%(0.9)%
Shareholders' equity2,712,680 2,699,818 2,692,958 2,629,655 2,616,828 0.5 %3.7 %
    Total Liabilities and Shareholders' Equity$25,796,398 $26,390,832 $26,079,774 $25,892,990 $25,906,733 (2.3)%(0.4)%
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage$7,279,080 $7,145,115 $7,152,932 $7,142,137 $7,105,092 1.9 %2.4 %
Commercial and industrial3,906,791 3,863,154 3,870,462 3,986,858 4,088,561 1.1 %(4.4)%
Real estate - residential mortgage3,846,750 3,719,684 3,555,897 3,254,058 3,141,915 3.4 %22.4 %
Real estate - home equity1,118,248 1,126,628 1,136,128 1,149,958 1,202,913 (0.7)%(7.0)%
Real estate - construction1,139,779 1,111,487 1,070,755 1,083,494 1,047,218 2.5 %8.8 %
Consumer464,657 458,595 448,433 451,857 466,772 1.3 %(0.5)%
Equipment lease financing236,344 242,967 252,158 260,907 279,118 (2.7)%(15.3)%
Other(2)
32,448 11,330 (14,410)(26,677)(12,481)N/MN/M
     Net loans before PPP18,024,097 17,678,960 17,472,355 17,302,592 17,319,108 2.0 %4.1 %
PPP301,253 590,447 1,114,401 1,688,394 1,581,712 (49.0)%(81.0)%
Total Net Loans$18,325,350 $18,269,407 $18,586,756 $18,990,986 $18,900,820 0.3 %(3.0)%
Deposits, by type:
Noninterest-bearing demand$7,370,963 $7,434,155 $7,442,132 $7,046,116 $6,531,002 (0.9)%12.9 %
Interest-bearing demand5,819,539 6,187,096 5,795,404 5,959,909 5,818,564 (5.9)%— %
Savings6,403,995 6,401,619 6,276,554 6,244,513 5,929,792 — %8.0 %
     Total demand and savings19,594,497 20,022,870 19,514,090 19,250,538 18,279,358 (2.1)%7.2 %
Brokered251,526 262,617 277,444 309,873 335,185 (4.2)%(25.0)%
Time1,727,476 1,788,554 1,932,778 2,073,427 2,224,664 (3.4)%(22.3)%
Total Deposits$21,573,499 $22,074,041 $21,724,312 $21,633,838 $20,839,207 (2.3)%3.5 %
Short-term borrowings, by type:
Customer funding$416,764 $468,967 $533,749 $520,989 $630,066 (11.1)%(33.9)%
Total Short-Term Borrowings$416,764 $468,967 $533,749 $520,989 $630,066 (11.1)%(33.9)%
(1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.
(2) Consists of overdrafts and net origination fees and costs.

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FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands
Three Months Ended % Change fromYear Ended
Dec 31Sep 30Jun 30Mar 31Dec 31Sep 30Dec 31Dec 31
202120212021202120202021202020212020% Change
Interest Income:
Interest income$177,724 $184,079 $176,673 $184,936 $183,645 (3.5)%(3.2)%$723,412 $742,878 (2.6)%
Interest expense12,111 12,809 14,274 20,488 22,054 (5.4)%(45.1)%59,682 113,671 (47.5)%
    Net Interest Income165,613 171,270 162,399 164,448 161,591 (3.3)%2.5 %663,730 629,207 5.5 %
Provision for credit losses(5,000)(600)(3,500)(5,500)6,240 N/MN/M(14,600)76,920 (119.0)%
    Net Interest Income after Provision170,613 171,870 165,899 169,948 155,351 (0.7)%9.8 %678,330 552,287 22.8 %
Non-Interest Income:
Commercial banking:
   Merchant and card6,588 6,979 6,786 5,768 5,953 (5.6)%10.7 %26,121 23,139 12.9 %
   Cash management5,318 5,285 5,341 4,921 4,737 0.6 %12.3 %20,865 18,725 11.4 %
   Capital markets2,982 2,063 1,536 2,800 3,513 44.5 %(15.1)%9,381 18,288 (48.7)%
   Other commercial banking3,592 2,411 3,466 2,853 2,606 49.0 %37.8 %12,322 10,134 21.6 %
     Total commercial banking18,480 16,738 17,129 16,342 16,809 10.4 %9.9 %68,689 70,286 (2.3)%
Consumer banking:
  Card5,953 5,941 5,733 5,878 5,123 0.2 %16.2 %23,505 19,777 18.9 %
  Overdraft3,896 3,474 2,750 2,724 3,376 12.1 %15.4 %12,844 12,556 2.3 %
  Other consumer banking2,280 2,386 2,377 2,152 2,298 (4.4)%(0.8)%9,195 9,265 (0.8)%
     Total consumer banking12,129 11,801 10,860 10,754 10,797 2.8 %12.3 %45,544 41,598 9.5 %
Wealth management18,285 18,532 17,634 17,347 15,653 (1.3)%16.8 %71,798 59,058 21.6 %
Mortgage banking7,243 9,535 2,838 13,960 9,311 (24.0)%(22.2)%33,576 42,309 (20.6)%
Other7,739 5,971 3,393 3,519 3,004 29.6 %N/M20,622 13,084 57.6 %
     Non-interest income before
     investment securities gains		63,876 62,577 51,854 61,922 55,574 2.1 %14.9 %240,229 226,335 6.1 %
Investment securities gains, net5 — 36 33,475 — N/MN/M33,516 3,053 N/M
    Total Non-Interest Income63,881 62,577 51,890 95,397 55,574 2.1 %14.9 %273,745 229,388 19.3 %
Non-Interest Expense:
Salaries and employee benefits85,506 82,679 78,367 82,586 83,929 3.4 %1.9 %329,138 324,395 1.5 %
Data processing and software14,612 14,335 13,932 13,561 11,951 1.9 %22.3 %56,440 48,073 17.4 %
Net occupancy14,366 12,957 12,494 13,982 13,161 10.9 %9.2 %53,799 53,013 1.5 %
Other outside services9,637 7,889 8,178 8,490 8,334 22.2 %15.6 %34,194 31,432 8.8 %
Equipment 3,539 3,416 3,424 3,428 3,563 3.6 %(0.7)%13,807 13,885 (0.6)%
FDIC insurance3,032 2,727 2,282 2,624 2,346 11.2 %29.2 %10,665 8,865 20.3 %
Professional fees1,946 2,271 2,651 2,779 2,424 (14.3)%(19.7)%9,647 12,835 (24.8)%
Amortization of tax credit investments1,547 1,546 1,563 1,531 1,532 0.1 %1.0 %6,187 6,126 1.0 %
Marketing1,477 1,448 1,348 1,002 1,098 2.0 %34.5 %5,275 5,127 2.9 %
Intangible amortization146 150 178 115 132 (2.7)%10.6 %589 529 11.3 %
Debt extinguishment674 — 412 32,163 — N/MN/M33,249 2,878 N/M
Other17,537 15,178 16,002 16,123 26,268 15.5 %(33.2)%64,840 72,282 (10.3)%
    Total Non-Interest Expense154,019 144,596 140,831 178,384 154,738 6.5 %(0.5)%617,830 579,440 6.6 %
    Income Before Income Taxes80,475 89,851 76,958 86,961 56,187 (10.4)%43.2 %334,245 202,235 65.3 %
Income tax expense18,588 14,268 11,994 13,898 5,362 30.3 %N/M58,748 24,195 142.8 %
    Net Income61,887 75,583 64,964 73,063 50,825 (18.1)%21.8 %275,497 178,040 54.7 %
Preferred stock dividends(2,562)(2,562)(2,562)(2,591)(2,135)— %20.0 %(10,277)(2,135)N/M
     Net Income Available to Common
     Shareholders		$59,325 $73,021 $62,402 $70,472 $48,690 (18.8)%21.8 %$265,220 $175,905 50.8 %
PER SHARE:
Net income available to common shareholders:
    Basic$0.37 $0.45 $0.38 $0.43 $0.30 (17.8)%23.3 %$1.63 $1.08 50.9 %
    Diluted$0.37 $0.45 $0.38 $0.43 $0.30 (17.8)%23.3 %$1.62 $1.08 50.0 %
Cash dividends$0.22 $0.14 $0.14 $0.14 $0.17 57.1 %29.4 %$0.64 $0.56 14.3 %
Weighted average shares (basic)161,210 162,506 162,785 162,441 162,242 (0.8)%(0.6)%162,233 162,372 (0.1)%
Weighted average shares (diluted)162,355 163,456 163,858 163,737 163,071 (0.7)%(0.4)%163,307 163,090 0.1 %
N/M - Not meaningful
9

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Three months ended
December 31, 2021September 30, 2021December 31, 2020
AverageInterestYield/AverageInterestYield/AverageInterestYield/
Balance(1)RateBalance(1)RateBalance(1)Rate
ASSETS
Interest-earning assets:
Net loans$18,220,550 $159,057 3.47 %$18,414,153 $163,343 3.53 %$18,994,514 $164,329 3.45 %
Taxable investment securities2,801,934 14,006 1.75 %2,785,828 13,757 1.80 %2,233,730 13,559 2.43 %
Tax-exempt investment securities1,120,263 8,418 3.00 %1,035,685 7,906 3.05 %886,329 7,044 3.17 %
Total Investment Securities3,922,197 22,424 2.29 %3,821,513 21,663 2.27 %3,120,059 20,603 2.64 %
Loans held for sale35,235 333 3.77 %36,427 299 3.28 %76,871 521 2.71 %
Other interest-earning assets2,100,392 (905)0.19 %2,301,326 1,888 0.18 %1,668,454 1,179 0.28 %
Total Interest-Earning Assets24,278,374 180,909 2.96 %24,573,419 187,193 3.03 %23,859,898 186,632 3.12 %
Noninterest-Earning assets:
Cash and due from banks211,958 200,315 126,190 
Premises and equipment226,319 228,861 236,265 
Other assets1,677,028 1,695,767 1,799,381 
Less: ACL - loans(2)
(257,143)(257,486)(272,329)
Total Assets$26,136,536 $26,440,876 $25,749,405 
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-Bearing liabilities:
Demand deposits$5,933,780 $756 0.05 %$6,168,908 $814 0.05 %$5,762,150 $1,457 0.10 %
Savings deposits6,413,638 992 0.06 %6,392,537 1,054 0.07 %5,905,137 1,866 0.13 %
Brokered deposits256,192 220 0.34 %270,168 229 0.34 %340,451 451 0.53 %
Time deposits1,756,672 3,928 0.89 %1,852,223 4,428 0.95 %2,306,556 8,082 1.39 %
Total Interest-Bearing Deposits14,360,282 5,896 0.16 %14,683,836 6,525 0.18 %14,314,294 11,856 0.33 %
Short-term borrowings474,022 128 0.11 %494,811 131 0.11 %622,623 268 0.17 %
Long-term borrowings623,073 6,088 3.91 %627,300 6,153 3.92 %1,296,139 9,930 3.06 %
Total Interest-Bearing Liabilities15,457,377 12,112 0.31 %15,805,947 12,809 0.32 %16,233,056 22,054 0.54 %
Noninterest-Bearing liabilities:
Demand deposits7,516,656 7,439,644 6,477,228 
Other449,305 472,452 494,255 
Total Liabilities23,423,338 23,718,043 23,204,539 
Total Deposits/Cost of Deposits21,876,938 0.11 %22,123,480 0.12 %20,791,522 0.23 %
Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")22,974,033 0.21 %23,245,591 0.22 %22,710,284 0.39 %
Shareholders' equity2,713,198 2,722,833 2,544,866 
Total Liabilities and Shareholders' Equity$26,136,536 $26,440,876 $25,749,405 
Net interest income/net interest margin (fully taxable equivalent)168,797 2.77 %174,384 2.82 %164,578 2.75 %
Tax equivalent adjustment(3,184)(3,114)(2,987)
Net Interest Income$165,613 $171,270 $161,591 
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
(2) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.





10

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
2021202120212021202020212020
Loans, by type:
Real estate - commercial mortgage$7,157,906 $7,134,177 $7,177,622 $7,128,997 $7,101,363 0.3 %0.8 %
Commercial and industrial3,898,559 3,878,767 3,920,771 4,033,367 4,024,879 0.5 %(3.1)%
Real estate - residential mortgage3,773,156 3,642,822 3,396,690 3,183,585 3,087,529 3.6 %22.2 %
Real estate - home equity1,122,042 1,128,076 1,139,558 1,175,218 1,212,113 (0.5)%(7.4)%
Real estate - construction1,117,592 1,085,846 1,054,469 1,054,718 1,009,284 2.9 %10.7 %
Consumer462,346 452,844 451,486 459,038 468,678 2.1 %(1.4)%
Equipment lease financing238,349 247,776 256,248 266,405 279,059 (3.8)%(14.6)%
Other(1)
15,558 (6,773)(14,677)(9,455)(18,817)N/MN/M
     Net loans before PPP17,785,508 17,563,535 17,382,167 17,291,873 17,164,088 1.3 %3.6 %
PPP435,042 850,618 1,524,389 1,688,713 1,830,426 (48.9)%(76.2)%
Total Net Loans$18,220,550 $18,414,153 $18,906,556 $18,980,586 $18,994,514 (1.1)%(4.1)%
Deposits, by type:
Noninterest-bearing demand$7,516,656 $7,439,644 $7,203,696 $6,672,832 $6,477,228 1.0 %16.0 %
Interest-bearing demand5,933,780 6,168,908 5,979,855 5,832,174 5,762,150 (3.8)%3.0 %
Savings6,413,638 6,392,537 6,280,629 6,137,084 5,905,137 0.3 %8.6 %
     Total demand and savings19,864,074 20,001,089 19,464,180 18,642,090 18,144,515 (0.7)%9.5 %
Brokered256,192 270,168 297,815 324,364 340,451 (5.2)%(24.7)%
Time1,756,672 1,852,223 2,003,606 2,150,570 2,306,556 (5.2)%(23.8)%
Total Deposits$21,876,938 $22,123,480 $21,765,601 $21,117,024 $20,791,522 (1.1)%5.2 %
Short-term borrowings, by type:
Customer funding$474,022 $494,811 $514,025 $570,775 $622,623 (4.2)%(23.9)%
Total Short-Term borrowings$474,022 $494,811 $514,025 $570,775 $622,623 (4.2)%(23.9)%
(1) Consists of overdrafts and net origination fees and costs.













11

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
Year ended December 31
20212020
AverageInterestYield/AverageInterestYield/
Balance(1)RateBalance(1)Rate
ASSETS
Interest-earning assets:
Net loans$18,627,787 $644,387 3.46 %$18,270,390 $662,785 3.63 %
Taxable investment securities2,665,416 55,351 1.88 %2,182,410 58,173 2.66 %
Tax-exempt investment securities1,007,834 30,974 3.07 %825,057 26,641 3.22 %
Total Investment Securities3,673,250 86,325 2.35 %3,007,467 84,814 2.82 %
Loans held for sale39,211 1,302 3.32 %60,015 2,077 3.46 %
Other interest-earning assets2,014,954 3,694 0.18 %1,120,727 5,504 0.49 %
Total Interest-Earning Assets24,355,202 735,708 3.02 %22,458,599 755,180 3.36 %
Noninterest-Earning assets:
Cash and due from banks165,942 139,146 
Premises and equipment228,708 238,864 
Other assets1,686,053 1,746,956 
Less: ACL - loans(2)
(265,572)(249,848)
Total Assets$26,170,333 $24,333,717 
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-Bearing liabilities:
Demand deposits$5,979,479 $3,662 0.06 %$5,278,941 $11,390 0.22 %
Savings deposits6,306,967 4,936 0.08 %5,550,234 14,654 0.26 %
Brokered deposits286,901 1,096 0.38 %310,763 2,387 0.77 %
Time deposits1,939,446 20,311 1.05 %2,546,305 41,615 1.63 %
Total Interest-Bearing Deposits14,512,793 30,005 0.21 %13,686,243 70,046 0.51 %
Short-term borrowings513,092 583 0.11 %810,583 5,227 0.64 %
Long-term borrowings784,871 29,094 3.71 %1,254,300 38,398 3.06 %
Total Interest-Bearing Liabilities15,810,756 59,682 0.38 %15,751,126 113,671 0.72 %
Noninterest-Bearing liabilities:
Demand deposits7,211,153 5,714,803 
Other462,478 476,139 
Total Liabilities23,484,387 21,942,068 
Total Deposits/Cost of Deposits21,723,946 0.14 %19,401,046 0.36 %
Total interest-bearing liabilities and non-interest bearing deposits ("Cost of Funds")23,021,909 0.26 %21,465,929 0.53 %
Shareholders' equity2,685,946 2,391,649 
Total Liabilities and Shareholders' Equity$26,170,333 $24,333,717 
Net interest income/net interest margin (fully taxable equivalent)676,026 2.78 %641,509 2.86 %
Tax equivalent adjustment(12,296)(12,302)
Net Interest Income$663,730 $629,207 
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
(2) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.
12

FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL (UNAUDITED):
dollars in thousands
Year ended December 31
20212020% Change
Loans, by type:
Real estate - commercial mortgage$7,149,712 $6,928,269 3.2 %
Commercial and industrial3,932,351 4,237,252 (7.2)%
Real estate - residential mortgage3,501,072 2,876,538 21.7 %
Real estate - home equity1,141,042 1,255,094 (9.1)%
Real estate - construction1,078,350 965,534 11.7 %
Consumer456,427 466,419 (2.1)%
Equipment lease financing252,104 281,859 (10.6)%
Other(1)
(3,776)(4,640)18.6 %
     Net loans before PPP17,507,282 17,006,325 2.9 %
PPP1,120,505 1,264,065 (11.4)%
Total Net Loans$18,627,787 $18,270,390 2.0 %
Deposits, by type:
Noninterest-bearing demand$7,211,153 $5,714,803 26.2 %
Interest-bearing demand5,979,479 5,278,941 13.3 %
Savings6,306,967 5,550,234 13.6 %
   Total demand and savings19,497,599 16,543,978 17.9 %
Brokered286,901 310,763 (7.7)%
Time1,939,446 2,546,305 (23.8)%
Total Deposits$21,723,946 $19,401,046 12.0 %
Short-term borrowings, by type:
Customer funding513,092 553,033 (7.2)%
Federal funds purchased — 64,918 N/M
Short-term FHLB advances and other borrowings— 192,632 N/M
Total Short-Term Borrowings$513,092 $810,583 (36.7)%
N/M - Not meaningful
(1) Consists of overdrafts and net origination fees and costs.

13

FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
Three months endedYear Ended December
Dec 31Sep 30Jun 30Mar 31Dec 31Dec 31Dec 31
2021202120212021202020212020
Allowance for credit losses related to net loans:
Balance at beginning of period$256,727 $255,032 $265,986 $277,567 $266,825 $277,567 $163,621 
Impact of adopting CECL— — — — — — 45,723 
Loans charged off:
    Commercial and industrial(9,417)(647)(954)(4,319)(1,567)(15,337)(18,915)
    Real estate - commercial mortgage(369)(14)(6,506)(1,837)(300)(8,726)(4,225)
    Consumer and home equity(828)(504)(1,130)(847)(668)(3,309)(4,593)
    Real estate - residential mortgage— (602)(496)(192)— (1,290)(620)
    Real estate - construction— — — (39)— (39)(17)
    Equipment lease financing and other(380)(467)(436)(968)(483)(2,251)(2,187)
    Total loans charged off(10,994)(2,234)(9,522)(8,202)(3,018)(30,952)(30,557)
Recoveries of loans previously charged off:
    Commercial and industrial5,795 2,330 693 769 4,581 9,587 11,396 
    Real estate - commercial mortgage1,007 564 729 174 588 2,474 1,027 
    Consumer and home equity767 504 634 440 594 2,345 2,380 
    Real estate - residential mortgage89 86 105 95 199 375 491 
    Real estate - construction77 697 254 384 179 1,412 5,122 
    Equipment lease financing and other283 358 153 159 219 953 604 
    Recoveries of loans previously charged off8,018 4,539 2,568 2,021 6,360 17,146 21,020 
Net loans (charged off) recovered(2,976)2,305 (6,954)(6,181)3,342 (13,806)(9,537)
Provision for credit losses(4,750)(610)(4,000)(5,400)7,400 (14,760)77,760 
Balance at end of period$249,001 $256,727 $255,032 $265,986 $277,567 $249,001 $277,567 
Net charge-offs (recoveries) to average loans (annualized)0.07 %(0.05)%0.15 %0.13 %(0.07)%0.07 %0.05 %
Allowance credit losses related to OBS Credit Exposures(1)
Balance at beginning of period$14,783 $14,773 $14,273 $14,373 $15,533 
Provision for credit losses (250)10 500 (100)(1,160)
Balance at end of period$14,533 $14,783 $14,773 $14,273 $14,373 
NON-PERFORMING ASSETS:
Non-accrual loans$143,666 $138,833 $147,864 $143,889 $137,198 
Loans 90 days past due and accruing8,453 11,389 5,865 8,559 9,929 
    Total non-performing loans152,119 150,222 153,729 152,448 147,127 
Other real estate owned1,817 1,896 2,779 3,664 4,178 
Total non-performing assets$153,936 $152,118 $156,508 $156,112 $151,305 
NON-PERFORMING LOANS, BY TYPE:
Commercial and industrial$30,629 $32,697 $33,522 $31,871 $32,610 
Real estate - commercial mortgage54,044 52,100 53,693 54,164 52,647 
Real estate - residential mortgage39,399 37,077 38,185 36,152 30,793 
Consumer and home equity11,505 11,509 11,408 13,072 13,090 
Real estate - construction901 965 1,016 1,440 1,550 
Equipment lease financing and other15,641 15,874 15,905 15,749 16,437 
Total non-performing loans$152,119 $150,222 $153,729 $152,448 $147,127 
(1) The allowance for credit losses related to OBS Credit Exposures is presented in "other liabilities" on the consolidated balance sheets.
14

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
20212021202120212020
Common shareholders' equity (tangible), per share
Shareholders' equity$2,712,680$2,699,818$2,692,958$2,629,655$2,616,828
Less: Preferred stock(192,878)(192,878)(192,878)(192,878)(192,878)
Less: Goodwill and intangible assets(538,053)(536,697)(536,847)(536,544)(536,659)
Tangible common shareholders' equity (numerator)$1,981,749$1,970,243$1,963,233$1,900,233$1,887,291
Shares outstanding, end of period (denominator)160,490161,429162,988162,518162,350
Common shareholders' equity (tangible), per share$12.35$12.21$12.05$11.69$11.62
Return on average common shareholders' equity (tangible)
Net income available to common shareholders$59,325$73,021$62,402$70,472$48,690
Plus: Intangible amortization, net of tax11411814090104
Net income available to common shareholder's (numerator)$59,439$73,139$62,542$70,562$48,794
Average shareholders' equity$2,713,198$2,722,833$2,669,413$2,637,098$2,544,866
Less: Average preferred stock(192,878)(192,878)(192,878)(192,878)(127,639)
Less: Average goodwill and intangible assets(536,638)(536,772)(536,470)(536,601)(535,474)
Average tangible common shareholders' equity (denominator)$1,983,682$1,993,183$1,940,065$1,907,619$1,881,753
Return on average common shareholders' equity (tangible), annualized11.89%14.56%12.93%15.00%10.32%
Tangible common equity to tangible assets (TCE Ratio)
Shareholders' equity$2,712,680$2,699,818$2,692,958$2,629,655$2,616,828
Less: Preferred stock(192,878)(192,878)(192,878)(192,878)(192,878)
Less: Goodwill and intangible assets(538,053)(536,697)(536,847)(536,544)(536,659)
Tangible common shareholders' equity (numerator)$1,981,749$1,970,243$1,963,233$1,900,233$1,887,291
Total assets$25,796,398$26,390,832$26,079,774$25,892,990$25,906,733
Less: Goodwill and intangible assets(538,053)(536,697)(536,847)(536,544)(536,659)
Total tangible assets (denominator)$25,258,345$25,854,135$25,542,927$25,356,446$25,370,074
Tangible common equity to tangible assets7.85%7.62%7.69%7.49%7.44%
Efficiency ratio
Non-interest expense$154,019$144,596$140,831$178,384$154,738
Less: Amortization of tax credit investments(1,547)(1,546)(1,563)(1,531)(1,532)
Less: Intangible amortization(146)(150)(178)(115)(132)
Less: 2020 cost savings initiatives————(15,400)
Less: Debt extinguishment costs(674)—(412)(32,163)—
Non-interest expense (numerator)$151,652$142,900$138,678$144,575$137,674
Net interest income$165,613$171,270$162,399$164,449$161,591
Tax equivalent adjustment3,1843,1143,0182,9792,987
Plus: Total non-interest income63,88162,57751,89095,39755,574
Less: Investment securities gains, net(5)—(36)(33,475)—
Total revenue (denominator)$232,673$236,961$217,271$229,350$220,152
Efficiency ratio65.2%60.3%63.8%63.0%62.5%
15

Three months ended
Dec 31Sep 30Jun 30Mar 31Dec 31
20212021202120212020
Non-interest expenses to total average assets (annualized)
Non-interest expense$154,019$144,596$140,831$178,384$154,738
Less: Amortization of tax credit investments(1,547)(1,546)(1,563)(1,531)(1,532)
Less: Intangible amortization(146)(150)(178)(115)(132)
Less: 2020 cost savings initiatives————(15,400)
Less: Debt extinguishment costs(674)—(412)(32,163)—
Non-interest expense (numerator)$151,652$142,900$138,678$144,575$137,674
Total average assets (denominator)$26,136,536 $26,440,876 $26,017,542 $26,082,816 $25,749,405 
Non-interest expenses to total average assets, (annualized)2.30 %2.14 %2.14 %2.25 %2.13 %
Asset Quality, excluding PPP
Net loans recovered (charged-off) (numerator)$(2,976)$2,305$(6,954)$(6,181)$3,342
Average net loans$18,220,550$18,414,153$18,906,556$18,980,586$18,994,514
Less: Average PPP loans(435,042)(850,618)(1,524,389)(1,688,713)(1,830,426)
Total adjusted average loans (denominator)$17,785,508$17,563,535$17,382,167$17,291,873$17,164,088
Net charge-offs (recoveries) to adjusted average loans (annualized)0.07%(0.05)%0.16%0.14%(0.08)%
Non-performing loans (numerator)$152,119$150,222$153,729$152,448$147,127
Net loans$18,325,350$18,269,407$18,586,756$18,990,986$18,900,820
Less: PPP loans(301,253)(590,447)(1,114,401)(1,688,394)(1,581,712)
Total adjusted loans (denominator)$18,024,097$17,678,960$17,472,355$17,302,592$17,319,108
Non-performing loans to total adjusted loans0.84%0.85%0.88%0.88%0.85%
ACL - loans (numerator)$249,001$256,727$255,032$265,986$277,567
Net loans$18,325,350$18,269,407$18,586,756$18,990,986$18,900,820
Less: PPP loans(301,253)(590,447)(1,114,401)(1,688,394)(1,581,712)
Total adjusted loans (denominator)$18,024,097$17,678,960$17,472,355$17,302,592$17,319,108
ACL - loans to total adjusted loans1.38%1.45%1.46%1.54%1.60%
Pre-provision net revenue
Net interest income$165,613$171,270$162,399$164,448$161,591
Non-interest income63,88162,57751,89095,39755,574
Less: Investment securities gains, net(5)—(36)(33,475)—
Total revenue$229,489$233,847$214,253$226,370$217,165
Non-interest expense$154,019$144,596$140,831$178,384$154,738
Less: Debt extinguishment(674)—(412)(32,163)—
Less: Amortization on tax credit investments (1,547)(1,546)(1,563)(1,531)(1,532)
Less: Intangible amortization(146)(150)(178)(115)(132)
Total non-interest expense$151,652$142,900$138,678$144,575$153,074
Pre-provision net revenue$77,837$90,947$75,575$81,795$64,091
Note: numbers may not sum due to rounding.

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