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Fulton Financial Corporation Announces First Quarter 2025 Results

1. Fulton's Q1 2025 net income was $90.4 million, up $24.4 million from Q4 2024. 2. Operating net income increased to $95.5 million, or $0.52 per share. 3. Non-interest expense decreased by $27.2 million to $189.5 million. 4. Customer deposits rose by $304.9 million, a 4.9% annualized increase. 5. Common equity tier 1 capital ratio improved to 11.0% from 10.8%.

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Why Bullish?

Increased earnings and reduced expenses improve FULT's financial health, signaling potential growth.

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Strength in earnings and expenses indicates positive investor sentiment and potential stock appreciation.

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Q1 results indicate immediate financial strength, likely to influence stock price soon.

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, /PRNewswire/ -- Fulton Financial Corporation (NASDAQ: FULT) ("Fulton" or the "Corporation") reported net income available to common shareholders of $90.4 million, or $0.49 per diluted share, for the first quarter of 2025, an increase of $24.4 million, or $0.13 per share, in comparison to the fourth quarter of 2024. Operating net income available to common shareholders for the three months ended March 31, 2025 was $95.5 million, or $0.52 per diluted share(1), an increase of $6.5 million, or $0.04 per share, in comparison to the fourth quarter of 2024. Q1 2025 Results "We are pleased with our first quarter operating earnings of $0.52 per diluted share and encouraged by the strong start to the year," said Curtis J. Myers, Chairman and CEO of Fulton. "Our team continues to be disciplined in our approach to creating value for all stakeholders while remaining focused on the long term during this uncertain and dynamic environment." Financial Highlights First quarter of 2025 operating results of $0.52 per diluted share were impacted by the following items: Solid net interest margin of 3.43% with a 12 basis point decrease in total cost of funds compared to the prior quarter. Non-interest expense decreased $27.2 million to $189.5 million compared to $216.6 million in the prior quarter. Operating non-interest expense decreased $7.8 million to $182.9 million(1) compared to $190.7 million in the prior quarter. Provision for credit losses was $13.9 million resulting in an allowance for credit losses attributable to net loans of $379.7 million, or 1.59% of total net loans as of March 31, 2025. Excluding brokered deposits, customer deposits increased $304.9 million, or 4.9% annualized, compared to the prior quarter. Common equity tier 1 capital ratio(2) increased to approximately 11.0% compared to 10.8% in the prior quarter. The following items highlight notable changes in the components of net income and the balance sheet in the first quarter of 2025 compared to the fourth quarter of 2024: Net interest income totaled $251.2 million, a decrease of $2.5 million, primarily due to a decline in short-term interest rates and day count. A decrease in interest income on net loans of $13.0 million was partially offset by a decrease in interest expense on interest-bearing liabilities of $12.2 million. A $4.3 million decrease in interest income on other interest-earning assets was partially offset by a $2.6 million increase in interest income on investment securities. Purchase loan mark accretion from loans acquired in the Acquisition(3) was $13.1 million in the first quarter of 2025 compared to $13.9 million in the prior quarter. Non-interest income before investment securities gains (losses) was $67.2 million compared to $65.9 million in the prior quarter. The $1.3 million increase was primarily due to a $2.7 million reduction in the gain on acquisition (net of tax) recorded in the fourth quarter of 2024 and a $2.4 million increase in income from equity method investments, reflected in other income, partially offset by a $0.6 million decrease in mortgage banking income, a $0.5 million decrease in debit card fee income, a $0.5 million decrease in Small Business Administration loan income, a $0.5 million decrease in merchant fee income, a $0.3 million decrease in commercial customer interest rate derivative fee income, reflected in capital markets income, a $0.3 million decrease in overdraft fee income and a $0.2 million decrease in wealth management revenues. Non-interest expense was $189.5 million compared to $216.6 million in the prior quarter. The $27.2 million decrease was primarily due to a $10.0 million decrease in FultonFirst implementation and asset disposal expense and a $9.3 million decrease in acquisition-related expense. Excluding the FultonFirst implementation and asset disposal-related expense, the decrease in non-interest expense was primarily due to a $4.4 million decrease in professional fees driven by a recovery of previously incurred fees, a $3.7 million decrease in employee salaries and benefits expense primarily related to cost savings realized in connection with the Acquisition and the FultonFirst initiative. Balance Sheet Summary Net loans totaled $23.9 billion, a decrease of $182.3 million, compared to $24.0 billion as of December 31, 2024. The decrease in net loans was due to a $244.3 million net decrease in commercial and other loans(4) partially offset by a $62.0 million increase in consumer loans(4). The decrease in commercial and other loans was partially due to the payoff in the quarter of $94.2 million of special mention loans and substandard loans. Commercial and other loans in non-accrual status decreased during the first quarter. Deposits totaled $26.3 billion, an increase of $199.5 million, compared to $26.1 billion as of December 31, 2024. The increase was primarily due to a $416.4 million increase in savings deposits, partially offset by decreases of $105.4 million in brokered deposits, $63.8 million in noninterest-bearing demand deposits and $39.2 million in interest-bearing demand deposits. Provision for Credit Losses and Asset Quality The provision for credit losses was $13.9 million in the first quarter of 2025 resulting in a $379.7 million allowance for credit losses attributable to net loans, or 1.59% of total net loans as of March 31, 2025, compared to $379.2 million, or 1.58% of total net loans as of December 31, 2024. Non-performing assets were $199.0 million, or 0.62% of total assets, as of March 31, 2025, in comparison to $222.7 million, or 0.69% of total assets, as of December 31, 2024. Annualized net charge-offs for the first quarter of 2025 were 0.21% of total average loans in comparison to 0.22% in the prior quarter. Additional information on Fulton is available on the Internet at www.fultonbank.com. (1) Financial measure derived by methods other than generally accepted accounting principles ("GAAP"). Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of the press release. (2) Regulatory capital ratios as of March 31, 2025, are preliminary estimates and prior periods are actual. (3) On April 26, 2024, the Corporation announced that its wholly owned banking subsidiary, Fulton Bank, National Association ("Fulton Bank"), acquired substantially all of the assets and assumed substantially all of the deposits and certain liabilities of Republic First Bank, doing business as Republic Bank ("Republic Bank"), from the Federal Deposit Insurance Corporation (the "FDIC"), as receiver for Republic Bank (the "Acquisition"), pursuant to the terms of the Purchase and Assumption Agreement - Whole Bank, All Deposits, effective as of April 26, 2024 among the FDIC, as receiver of Republic Bank, the FDIC and Fulton Bank. (4) Commercial loans include real estate - commercial mortgage, commercial and industrial, leases and other loans and includes a $231.2 million decrease in commercial construction loans reflected in real estate - construction. Consumer loans include real estate - residential mortgage, real estate - home equity, consumer and includes an $11.7 million increase in residential construction loans, reflected in real estate - construction. Safe Harbor StatementThis 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, 2024 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 MeasuresThe Corporation uses certain financial measures in this press release that have been derived from methods other than 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) (dollars in thousands, except per share and shares data) Three months ended Mar 31 Dec 31 Sep 30 Jun 30 Mar  31 2025 2024 2024 2024 2024 Ending Balances Investment securities $   5,071,323 $    4,806,468 $   4,545,278 $   4,184,027 $   3,783,392 Net loans 23,862,574 24,044,919 24,176,075 24,106,297 21,444,483 Total assets 32,132,028 32,071,810 32,185,726 31,769,813 27,642,957 Deposits 26,328,972 26,129,433 26,152,144 25,559,654 21,741,950 Shareholders' equity 3,274,321 3,197,325 3,203,943 3,101,609 2,757,679 Average Balances Investment securities(1) 4,906,952 4,771,537 4,237,805 4,043,136 3,672,844 Net loans 24,006,863 24,068,784 24,147,801 23,345,914 21,370,033 Total assets 31,971,601 32,098,852 31,895,235 30,774,891 27,427,626 Deposits 26,169,883 26,313,378 25,778,259 24,642,954 21,378,754 Shareholders' equity 3,254,125 3,219,026 3,160,322 2,952,671 2,766,945 Income Statement Net interest income 251,187 253,659 258,009 241,720 206,937 Provision for credit losses 13,898 16,725 11,929 32,056 10,925 Non-interest income 67,232 65,924 59,673 92,994 57,140 Non-interest expense 189,460 216,615 226,089 199,488 177,600 Income before taxes 115,061 86,243 79,664 103,170 75,552 Net income available to common shareholders 90,425 66,058 60,644 92,413 59,379 Per Share Net income available to common shareholders (basic) $0.50 $0.36 $0.33 $0.53 $0.36 Net income available to common shareholders (diluted) $0.49 $0.36 $0.33 $0.52 $0.36 Operating net income available to common shareholders(2) $0.52 $0.48 $0.50 $0.47 $0.40 Cash dividends $0.18 $0.18 $0.17 $0.17 $0.17 Common shareholders' equity $16.91 $16.50 $16.55 $16.00 $15.82 Common shareholders' equity (tangible)(2) $13.46 $13.01 $13.02 $12.43 $12.37 Weighted average shares (basic) 182,179 182,032 181,905 175,305 162,706 Weighted average shares (diluted) 184,077 183,867 183,609 176,934 164,520 (1) Average balances include related unrealized holding gains (losses) for available for sale ("AFS") securities. (2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release. Three months ended Mar 31 Dec 31 Sep 30 Jun 30 Mar  31 2025 2024 2024 2024 2024 Asset Quality Net charge-offs to average loans 0.21 % 0.22 % 0.18 % 0.19 % 0.16 % Non-performing loans to total net loans 0.82 % 0.92 % 0.84 % 0.72 % 0.73 % Non-performing assets to total assets 0.62 % 0.69 % 0.64 % 0.55 % 0.57 % ACL - loans(1) to total loans 1.59 % 1.58 % 1.56 % 1.56 % 1.39 % ACL - loans(1) to non-performing loans 193 % 172 % 186 % 218 % 191 % Profitability Return on average assets 1.18 % 0.85 % 0.79 % 1.24 % 0.91 % Operating return on average assets(2) 1.25 % 1.14 % 1.17 % 1.11 % 1.00 % Return on average common shareholders' equity 11.98 % 8.68 % 8.13 % 13.47 % 9.28 % Operating return on average common shareholders' equity (tangible)(2) 15.95 % 14.83 % 15.65 % 15.56 % 13.08 % Net interest margin 3.43 % 3.41 % 3.49 % 3.43 % 3.32 % Efficiency ratio(2) 56.7 % 58.4 % 59.6 % 62.6 % 63.2 % Non-interest expense to total average assets 2.40 % 2.68 % 2.82 % 2.61 % 2.60 % Operating non-interest expense to total average assets(2) 2.32 % 2.36 % 2.45 % 2.55 % 2.49 % Capital Ratios(3) Tangible common equity ratio ("TCE")(2) 7.8 % 7.5 % 7.5 % 7.3 % 7.4 % Tier 1 leverage ratio 9.2 % 9.0 % 9.0 % 9.2 % 9.3 % Common equity Tier 1 capital ratio 11.0 % 10.8 % 10.5 % 10.3 % 10.3 % Tier 1 risk-based capital ratio 11.8 % 11.5 % 11.3 % 11.1 % 11.1 % Total risk-based capital ratio 14.4 % 14.3 % 14.0 % 13.8 % 14.0 % (1) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet     ("OBS") credit exposures. (2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release. (3) Regulatory capital ratios as of March 31, 2025 are preliminary estimates and prior periods are actual. FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) (dollars in thousands) Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 2025 2024 2024 2024 2024 ASSETS Cash and due from banks $     388,503 $     279,041 $     296,500 $     333,238 $     247,581 Other interest-earning assets 778,117 924,404 1,287,392 1,188,341 231,389 Loans held for sale 15,965 25,618 17,678 26,822 10,624 Investment securities 5,071,323 4,806,468 4,545,278 4,184,027 3,783,392 Net loans 23,862,574 24,044,919 24,176,075 24,106,297 21,444,483 Less: ACL - loans(1) (379,677) (379,156) (375,961) (375,941) (297,888)    Loans, net 23,482,897 23,665,763 23,800,114 23,730,356 21,146,595 Net premises and equipment 186,873 195,527 171,731 180,642 213,541 Accrued interest receivable 116,215 117,029 115,903 120,752 107,089 Goodwill and intangible assets 629,189 635,458 641,739 648,026 560,114 Other assets 1,462,946 1,422,502 1,309,391 1,357,609 1,342,632     Total Assets $ 32,132,028 $ 32,071,810 $ 32,185,726 $ 31,769,813 $ 27,642,957 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits $ 26,328,972 $ 26,129,433 $ 26,152,144 $ 25,559,654 $ 21,741,950 Borrowings 1,657,200 1,782,048 2,052,227 2,178,597 2,296,040 Other liabilities 871,535 963,004 777,412 929,953 847,288     Total Liabilities 28,857,707 28,874,485 28,981,783 28,668,204 24,885,278 Shareholders' equity 3,274,321 3,197,325 3,203,943 3,101,609 2,757,679     Total Liabilities and Shareholders' Equity $ 32,132,028 $ 32,071,810 $ 32,185,726 $ 31,769,813 $ 27,642,957 LOANS, DEPOSITS AND BORROWINGS DETAIL: Loans, by type: Real estate - commercial mortgage $  9,676,517 $  9,601,858 $  9,493,479 $  9,289,770 $  8,252,117 Commercial and industrial 4,531,266 4,605,589 4,914,734 4,967,796 4,467,589 Real estate - residential mortgage 6,409,657 6,349,643 6,302,624 6,248,856 5,395,720 Real estate - home equity 1,170,470 1,160,616 1,144,402 1,120,878 1,040,335 Real estate - construction 1,175,445 1,394,899 1,332,954 1,463,799 1,249,199 Consumer 597,305 616,856 651,717 692,086 698,421 Leases and other loans(2) 301,914 315,458 336,165 323,112 341,102 Total Net Loans $ 23,862,574 $ 24,044,919 $ 24,176,075 $ 24,106,297 $ 21,444,483 Deposits, by type: Noninterest-bearing demand $  5,435,934 $  5,499,760 $  5,501,699 $  5,609,383 $  5,086,514 Interest-bearing demand 7,804,388 7,843,604 7,779,472 7,478,077 5,521,017 Savings 8,208,526 7,792,114 7,740,595 7,563,495 6,846,038      Total demand and savings 21,448,848 21,135,478 21,021,766 20,650,955 17,453,569 Brokered 738,458 843,857 843,473 995,975 1,152,427 Time 4,141,666 4,150,098 4,286,905 3,912,724 3,135,954 Total Deposits $ 26,328,972 $ 26,129,433 $ 26,152,144 $ 25,559,654 $ 21,741,950 Borrowings, by type: Federal Home Loan Bank advances $     750,000 $     850,000 $     950,000 $     750,000 $     900,000 Senior debt and subordinated debt 367,396 367,316 535,917 535,741 535,566 Other borrowings 539,804 564,732 566,310 892,856 860,474 Total Borrowings $  1,657,200 $  1,782,048 $  2,052,227 $  2,178,597 $  2,296,040 (1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures. (2) Includes equipment lease financing, overdraft and net origination fees and costs. FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (dollars in thousands, except per share and share data) Three months ended Mar 31 Dec 31 Sep 30 Jun 30 Mar  31 2025 2024 2024 2024 2024 Net Interest Income: Interest income $       399,692 $       414,368 $       427,656 $       400,506 $       339,666 Interest expense 148,505 160,709 169,647 158,786 132,729     Net Interest Income 251,187 253,659 258,009 241,720 206,937 Provision for credit losses 13,898 16,725 11,929 32,056 10,925     Net Interest Income after Provision 237,289 236,934 246,080 209,664 196,012 Non-Interest Income: Wealth management 21,785 22,002 21,596 20,990 20,155 Commercial banking:    Merchant and card 6,591 7,082 7,496 7,798 6,808    Cash management 7,799 7,633 7,201 6,966 6,305    Capital markets 2,411 2,797 3,311 2,585 2,341    Other commercial banking 4,528 4,942 4,281 4,061 3,375 Total commercial banking 21,329 22,454 22,289 21,410 18,829 Consumer banking:   Card 7,544 8,064 7,917 8,305 6,628   Overdraft 3,295 3,644 3,957 3,377 2,786   Other consumer banking 2,229 2,601 3,054 2,918 2,254 Total consumer banking 13,068 14,309 14,928 14,600 11,668 Mortgage banking 3,138 3,759 3,142 3,951 3,090 Gain on acquisition, net of tax — (2,689) (7,706) 47,392 — Other 7,914 6,089 5,425 4,933 3,398 Non-interest income before investment securities gains (losses) 67,234 65,924 59,674 113,276 57,140 Investment securities losses, net (2) — (1) (20,282) —     Total Non-Interest Income 67,232 65,924 59,673 92,994 57,140 Non-Interest Expense: Salaries and employee benefits 103,526 107,886 118,824 110,630 95,481 Data processing and software 18,599 19,550 20,314 20,357 17,661 Net occupancy 18,207 16,417 18,999 17,793 16,149 Other outside services 11,837 14,531 15,839 16,933 13,283 Intangible amortization 6,269 6,282 6,287 4,688 573 FDIC insurance 5,597 5,921 5,109 6,696 6,104 Equipment 4,150 4,388 4,860 4,561 4,040 Marketing 2,521 2,695 2,251 2,101 1,912 Professional fees (1,078) 3,387 2,811 2,571 2,088 Acquisition-related expenses 380 9,637 14,195 13,803 — Other 19,452 25,921 16,600 (645) 20,309     Total Non-Interest Expense 189,460 216,615 226,089 199,488 177,600     Income Before Income Taxes 115,061 86,243 79,664 103,170 75,552 Income tax expense 22,074 17,623 16,458 8,195 13,611     Net Income 92,987 68,620 63,206 94,975 61,941 Preferred stock dividends (2,562) (2,562) (2,562) (2,562) (2,562)      Net Income Available to Common  Shareholders $         90,425 $         66,058 $         60,644 $         92,413 $         59,379 Three months ended Mar 31 Dec 31 Sep 30 Jun 30 Mar  31 2025 2024 2024 2024 2024 PER SHARE: Net income available to common shareholders (basic) $0.50 $0.36 $0.33 $0.53 $0.36 Net income available to common shareholders (diluted) $0.49 $0.36 $0.33 $0.52 $0.36 Cash dividends $0.18 $0.18 $0.17 $0.17 $0.17 Weighted average shares (basic) 182,179 182,032 181,905 175,305 162,706 Weighted average shares (diluted) 184,077 183,867 183,609 176,934 164,520 FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) (dollars in thousands) Three months ended March 31, 2025 December 31, 2024 March 31, 2024 Average Yield/ Average Yield/ Average Yield/ Balance Interest(1) Rate Balance Interest(1) Rate Balance Interest(1) Rate ASSETS Interest-earning assets: Net loans(2) $  24,006,863 $ 347,626 5.86 % $  24,068,784 $ 360,642 5.97 % $  21,370,033 $ 313,882 5.90 % Investment securities(3) 5,199,000 47,242 3.63 % 5,033,765 44,616 3.54 % 3,983,753 27,048 2.71 % Other interest-earning assets 793,126 9,164 4.67 % 1,086,536 13,453 4.93 % 249,079 3,328 5.36 % Total Interest-Earning Assets 29,998,989 404,032 5.44 % 30,189,085 418,711 5.53 % 25,602,865 344,258 5.40 % Noninterest-earning assets: Cash and due from banks 301,897 288,867 282,895 Premises and equipment 191,248 183,801 223,375 Other assets 1,864,996 1,816,421 1,614,746 Less: ACL - loans(4) (385,529) (379,322) (296,255) Total Assets $  31,971,601 $  32,098,852 $  27,427,626 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing liabilities: Demand deposits $ 7,753,586 $   34,189 1.79 % $ 7,838,590 $   37,952 1.93 % $ 5,596,725 $   20,500 1.47 % Savings deposits 7,971,728 45,101 2.29 % 7,806,303 47,280 2.41 % 6,669,228 38,797 2.34 % Brokered deposits 904,722 10,038 4.50 % 877,526 10,619 4.81 % 1,083,382 14,655 5.44 % Time deposits 4,127,784 41,564 4.08 % 4,232,849 46,023 4.33 % 2,968,344 29,622 4.01 % Total Interest-Bearing Deposits 20,757,820 130,892 2.56 % 20,755,268 141,874 2.72 % 16,317,679 103,574 2.55 % Borrowings and other interest-bearing liabilities 1,754,900 17,613 4.07 % 1,847,431 18,835 4.06 % 2,608,376 29,155 4.46 % Total Interest-Bearing Liabilities 22,512,720 148,505 2.67 % 22,602,699 160,709 2.83 % 18,926,055 132,729 2.82 % Noninterest-bearing liabilities: Demand deposits 5,412,063 5,558,110 5,061,075 Other liabilities 792,693 719,017 673,551 Total Liabilities 28,717,476 28,879,826 24,660,681 Shareholders' equity 3,254,125 3,219,026 2,766,945 Total Liabilities and Shareholders' Equity $  31,971,601 $  32,098,852 $  27,427,626 Net interest income/net interest margin (fully taxable equivalent) 255,527 3.43 % 258,002 3.41 % 211,529 3.32 % Tax equivalent adjustment (4,340) (4,343) (4,592) Net Interest Income $ 251,187 $ 253,659 $ 206,937 (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances. (2) Average balances include non-performing loans. (3) Average balances include amortized historical cost for available for sale ("AFS") securities; the related unrealized holding gains (losses) are included in other assets. (4) ACL - loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities. FULTON FINANCIAL CORPORATION AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED) (dollars in thousands) Three months ended Mar 31 Dec 31 Sep 30 Jun 30 Mar  31 2025 2024 2024 2024 2024 Loans, by type: Real estate - commercial mortgage $ 9,655,283 $ 9,595,996 $ 9,318,273 $ 8,958,139 $ 8,166,018 Commercial and industrial 4,608,401 4,730,101 4,998,051 4,853,583 4,517,179 Real estate - residential mortgage 6,367,978 6,319,205 6,268,922 5,977,132 5,353,905 Real estate - home equity 1,160,713 1,116,665 1,122,313 1,117,367 1,039,321 Real estate - construction 1,296,090 1,312,245 1,437,907 1,430,057 1,240,640 Consumer 615,741 665,261 682,602 685,183 721,523 Leases and other loans(1) 302,657 329,311 319,733 324,453 331,447 Total Net Loans $  24,006,863 $  24,068,784 $  24,147,801 $  23,345,914 $  21,370,033 Deposits, by type: Noninterest-bearing demand $ 5,412,063 $ 5,558,110 $ 5,495,950 $ 5,460,025 $ 5,061,075 Interest-bearing demand 7,753,586 7,838,590 7,668,583 7,080,302 5,596,725 Savings 7,971,728 7,806,303 7,663,599 7,309,141 6,669,228      Total demand and savings 21,137,377 21,203,003 20,828,132 19,849,468 17,327,028 Brokered 904,722 877,526 842,661 1,123,328 1,083,382 Time 4,127,784 4,232,849 4,107,466 3,670,158 2,968,344 Total Deposits $  26,169,883 $  26,313,378 $  25,778,259 $  24,642,954 $  21,378,754 Borrowings, by type: Federal funds purchased $            — $            54 $            — $      32,637 $    173,659 Federal Home Loan Bank advances 709,367 727,957 754,130 833,726 902,890 Senior debt and subordinated debt 367,357 449,795 535,831 535,656 535,479 Other borrowings and other interest-bearing liabilities 678,176 669,625 939,387 1,039,672 996,348 Total Borrowings $ 1,754,900 $ 1,847,431 $ 2,229,348 $ 2,441,691 $ 2,608,376 (1) Includes equipment lease financing, overdraft and net origination fees and costs. FULTON FINANCIAL CORPORATION ASSET QUALITY INFORMATION (UNAUDITED) (dollars in thousands) Three months ended Mar 31 Dec 31 Sep 30 Jun 30 Mar  31 2025 2024 2024 2024 2024 Allowance for credit losses related to net loans: Balance at beginning of period $      379,156 $      375,961 $      375,941 $      297,888 $      293,404 CECL day 1 provision expense(1) — — — 23,444 — Initial purchased credit deteriorated allowance for credit losses — (136) (1,139) 55,906 — Loans charged off:     Real estate - commercial mortgage (12,106) (2,844) (2,723) (7,853) (26)     Commercial and industrial (3,865) (9,480) (6,256) (2,955) (7,632)     Real estate - residential mortgage (343) (55) (1,131) (35) (251)     Consumer and home equity (2,193) (2,179) (2,308) (1,766) (2,238)     Real estate - construction — — — — —     Leases and other loans(2) (1,527) (1,768) (726) (1,398) (805)     Total loans charged off (20,034) (16,326) (13,144) (14,007) (10,952) Recoveries of loans previously charged off:     Real estate - commercial mortgage 374 199 107 146 152     Commercial and industrial 5,952 1,387 1,008 796 1,248     Real estate - residential mortgage 174 104 130 122 116     Consumer and home equity 660 974 545 1,161 676     Real estate - construction 82 47 103 233 —     Leases and other loans(2) 201 194 129 247 162     Recoveries of loans previously charged off 7,443 2,905 2,022 2,705 2,354 Net loans charged off (12,591) (13,421) (11,122) (11,302) (8,598) Provision for credit losses(1) 13,112 16,752 12,281 10,005 13,082 Balance at end of period $      379,677 $      379,156 $      375,961 $      375,941 $      297,888 Net charge-offs to average loans(3) 0.21 % 0.22 % 0.18 % 0.19 % 0.16 % Provision for credit losses related to OBS Credit Exposures Provision for credit losses(1) $            786 $           (27) $         (352) $       (1,393) $       (2,157) NON-PERFORMING ASSETS: Non-accrual loans $      162,426 $      189,293 $      175,861 $      145,630 $      129,628 Loans 90 days past due and accruing 34,367 30,781 26,286 26,962 26,521     Total non-performing loans 196,793 220,074 202,147 172,592 156,149 Other real estate owned 2,193 2,621 2,844 1,444 277 Total non-performing assets $      198,986 $      222,695 $      204,991 $      174,036 $      156,426 NON-PERFORMING LOANS, BY TYPE: Commercial and industrial $        42,913 $        43,677 $        64,450 $        58,433 $        44,118 Real estate - commercial mortgage 88,081 102,359 71,467 48,615 47,891 Real estate - residential mortgage 46,878 45,901 41,727 41,033 40,685 Consumer and home equity 12,682 14,374 12,830 11,886 10,172 Leases and other loans(2) 2,573 12,017 9,927 9,993 10,135 Real estate - construction 3,666 1,746 1,746 2,632 3,148 Total non-performing loans $      196,793 $      220,074 $      202,147 $      172,592 $      156,149 (1) The sum of these amounts are reflected in the provision for credit losses in the Condensed Consolidated Statements of Income. (2) Includes equipment lease financing, overdraft and net origination fees and costs. (3) Quarterly results are annualized. FULTON FINANCIAL CORPORATION RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (dollars in thousands, except per share and share data) Explanatory note: This press release contains supplemental financial information, as detailed below, that has been derived by methods other than 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 and financial condition. 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 Mar 31 Dec 31 Sep 30 Jun 30 Mar  31 2025 2024 2024 2024 2024 Operating net income available to common shareholders Net income available to common shareholders $        90,425 $       66,058 $       60,644 $       92,413 $       59,379 Less: Other revenue (122) (269) (677) (708) (151) Plus: Gain on acquisition, net of tax — 2,689 7,706 (47,392) — Plus: Loss on securities restructuring — — — 20,282 — Plus: Core deposit intangible amortization 6,155 6,155 6,155 4,556 441 Plus: Acquisition-related expense 380 9,637 14,195 13,803 — Plus: CECL day 1 provision expense — — — 23,444 — Less: Gain on sale-leaseback — — — (20,266) — Plus: FDIC special assessment — — (16) — 956 Plus: FultonFirst implementation and asset disposals (47) 10,001 9,385 6,323 6,329 Less: Tax impact of adjustments (1,337) (5,360) (6,099) (9,961) (1,591) Operating net income available to common shareholders (numerator) $        95,454 $       88,911 $       91,293 $       82,494 $       65,363 Weighted average shares (diluted) (denominator) 184,077 183,867 183,609 176,934 164,520 Operating net income available to common shareholders, per share (diluted) $           0.52 $          0.48 $          0.50 $          0.47 $          0.40 Common shareholders' equity (tangible), per share Shareholders' equity $     3,274,321 $    3,197,325 $    3,203,943 $    3,101,609 $    2,757,679 Less: Preferred stock (192,878) (192,878) (192,878) (192,878) (192,878) Less: Goodwill and intangible assets (629,189) (635,458) (641,739) (648,026) (560,114) Tangible common shareholders' equity (numerator) $     2,452,254 $    2,368,989 $    2,369,326 $    2,260,705 $    2,004,687 Shares outstanding, end of period (denominator) 182,204 182,089 181,957 181,831 162,087 Common shareholders' equity (tangible), per share $          13.46 $         13.01 $         13.02 $         12.43 $         12.37 Three months ended Mar 31 Dec 31 Sep 30 Jun 30 Mar  31 2025 2024 2024 2024 2024 Operating return on average assets(1) Net income $        92,987 $       68,620 $       63,206 $       94,975 $       61,941 Less: Other revenue (122) (269) (677) (708) (151) Less: Gain on acquisition, net of tax — 2,689 7,706 (47,392) — Plus: Loss on securities restructuring — — — 20,282 — Plus: Core deposit intangible amortization 6,155 6,155 6,155 4,556 441 Plus: Acquisition-related expense 380 9,637 14,195 13,803 — Plus: CECL day 1 provision expense — — — 23,444 — Less: Gain on sale-leaseback — — — (20,266) — Plus: FDIC special assessment — — (16) — 956 Plus: FultonFirst implementation and asset disposals (47) 10,001 9,385 6,323 6,329 Less: Tax impact of adjustments (1,337) (5,360) (6,099) (9,961) (1,591) Operating net income (numerator) $        98,016 $       91,473 $       93,855 $       85,056 $       67,925 Total average assets $   31,971,601 $  32,098,852 $  31,895,235 $  30,774,891 $  27,427,626 Less: Average net core deposit intangible (77,039) (83,173) (89,350) (68,234) (4,666) Total operating average assets  (denominator) $   31,894,562 $  32,015,679 $  31,805,885 $  30,706,657 $  27,422,960 Operating return on average assets 1.25 % 1.14 % 1.17 % 1.11 % 1.00 % Operating return on average common shareholders' equity (tangible)(1) Net income available to common shareholders $        90,425 $       66,058 $       60,644 $       92,413 $       59,379 Less: Other revenue (122) (269) (677) (708) (151) Less: Gain on acquisition, net of tax — 2,689 7,706 (47,392) — Plus: Loss on securities restructuring — — — 20,282 — Plus: Intangible amortization 6,269 6,282 6,287 4,688 573 Plus: Acquisition-related expense 380 9,637 14,195 13,803 — Plus: CECL day 1 provision expense — — — 23,444 — Less: Gain on sale-leaseback — — — (20,266) — Plus: FDIC special assessment — — (16) — 956 Plus: FultonFirst implementation and asset disposals (47) 10,001 9,385 6,323 6,329 Less: Tax impact of adjustments (1,361) (5,387) (6,127) (9,989) (1,618) Adjusted net income available to common shareholders (numerator) $        95,544 $       89,011 $       91,397 $       82,598 $       65,468 Average shareholders' equity $     3,254,125 $    3,219,026 $    3,160,322 $    2,952,671 $    2,766,945 Less: Average preferred stock (192,878) (192,878) (192,878) (192,878) (192,878) Less: Average goodwill and intangible assets (632,254) (638,507) (644,814) (624,471) (560,393) Average tangible common shareholders' equity (denominator) $     2,428,993 $    2,387,641 $    2,322,630 $    2,135,322 $    2,013,674 Operating return on average common shareholders' equity (tangible) 15.95 % 14.83 % 15.65 % 15.56 % 13.08 % (1) Results are annualized. Three months ended Mar 31 Dec 31 Sep 30 Jun 30 Mar  31 2025 2024 2024 2024 2024 Tangible common equity to tangible assets (TCE Ratio) Shareholders' equity $     3,274,321 $    3,197,325 $    3,203,943 $    3,101,609 $    2,757,679 Less: Preferred stock (192,878) (192,878) (192,878) (192,878) (192,878) Less: Goodwill and intangible assets (629,189) (635,458) (641,739) (648,026) (560,114) Tangible common shareholders' equity (numerator) $     2,452,254 $    2,368,989 $    2,369,326 $    2,260,705 $    2,004,687 Total assets $   32,132,028 $  32,071,810 $  32,185,726 $  31,769,813 $  27,642,957 Less: Goodwill and intangible assets (629,189) (635,458) (641,739) (648,026) (560,114) Total tangible assets (denominator) $   31,502,839 $  31,436,352 $  31,543,987 $  31,121,787 $  27,082,843 Tangible common equity to tangible assets 7.78 % 7.54 % 7.51 % 7.26 % 7.40 % Efficiency ratio Non-interest expense $      189,460 $     216,615 $     226,089 $     199,488 $     177,600 Less: Acquisition-related expense (380) (9,637) (14,195) (13,803) — Plus: Gain on sale-leaseback — — — 20,266 — Less: FDIC special assessment — — 16 — (956) Less: FultonFirst implementation and asset disposals 47 (10,001) (9,385) (6,323) (6,329) Less: Intangible amortization (6,269) (6,282) (6,287) (4,688) (573) Operating non-interest expense (numerator) $      182,858 $     190,695 $     196,238 $     194,940 $     169,742 Net interest income $      251,187 $     253,659 $     258,009 $     241,720 $     206,937 Tax equivalent adjustment 4,340 4,343 4,424 4,556 4,592 Plus: Total non-interest income 67,232 65,924 59,673 92,994 57,140 Less: Other revenue (122) (269) (677) (708) (151) Less: Gain on acquisition, net of tax — 2,689 7,706 (47,392) — Plus: Investment securities (gains) losses, net 2 — 1 20,282 — Total revenue (denominator) $      322,639 $     326,346 $     329,136 $     311,452 $     268,518 Efficiency ratio 56.7 % 58.4 % 59.6 % 62.6 % 63.2 % Operating non-interest expense to total average assets(1) Non-interest expense $      189,460 $     216,615 $     226,089 $     199,488 $     177,600 Less: Intangible amortization (6,269) (6,282) (6,287) (4,688) (573) Less: Acquisition-related expense (380) (9,637) (14,195) (13,803) — Plus: Gain on sale-leaseback — — — 20,266 — Less: FDIC special assessment — — 16 — (956) Less: FultonFirst implementation and asset disposals 47 (10,001) (9,385) (6,323) (6,329) Operating non-interest expense (numerator) $      182,858 $     190,695 $     196,238 $     194,940 $     169,742 Total average assets (denominator) $   31,971,601 $  32,098,852 $  31,895,235 $  30,774,891 $  27,427,626 Operating non-interest expenses to total average assets 2.32 % 2.36 % 2.45 % 2.55 % 2.49 % (1) Results are annualized. Media Contact: Lacey Dean (717) 735-8688Investor Contact: Matt Jozwiak (717) 327-2657SOURCE Fulton Financial Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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