Fulton Financial Corporation Announces Second Quarter 2024 Results

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

Jun 30

Mar 31

Dec 31

Sep 30

June 30

2024

2023

Operating net income available to common shareholders

Net income available to common shareholders

$ 92,413

$ 59,379

$ 61,701

$ 69,535

$ 77,045

Plus: Core deposit intangible amortization

4,556

441

912

Plus: Acquisition-related expense

13,803

—

Less: Non-PCD credit-related interest income from acquisition

(571)

—

Plus: CECL day 1 provision expense

23,444

—

Plus: Interest rate derivative transition valuation⁽¹⁾

(137)

(151)

(1,102)

2,958

—

Less: Gain on acquisition, net of tax

(47,392)

—

Plus: Loss on securities restructuring

20,282

—

Less: Gain on sale-leaseback

(20,266)

—

Plus: FDIC special assessment

—

956

6,494

—

Plus: FultonFirst implementation and asset disposals

6,323

6,329

3,197

—

Less: Tax impact of adjustments

(9,961)

(1,591)

(1,896)

(714)

(192)

Operating net income available to common shareholders (numerator)

$ 82,494

$ 65,363

$ 68,835

$ 72,220

$ 77,765

Weighted average shares (diluted) (denominator)

176,934

164,520

165,650

166,023

167,191

Operating net income available to common shareholders, per share

(diluted)

$ 0.47

$ 0.40

$ 0.42

$ 0.43

$ 0.47

Common shareholders’ equity (tangible), per share

Shareholders’ equity

$ 3,101,609

$ 2,757,679

$ 2,760,139

$ 2,566,693

$ 2,642,152

Less: Preferred stock

(192,878)

Less: Goodwill and intangible assets

(648,026)

(560,114)

(560,687)

(561,284)

(561,885)

Tangible common shareholders’ equity (numerator)

$ 2,260,705

$ 2,004,687

$ 2,006,574

$ 1,812,531

$ 1,887,389

Shares outstanding, end of period (denominator)

181,831

162,087

163,801

164,084

166,097

Common shareholders’ equity (tangible), per share

$ 12.43

$ 12.37

$ 12.25

$ 11.05

$ 11.36

⁽¹⁾ Resulting from the reference rate transition from LIBOR to SOFR in the Corporation’s commercial customer interest rate swap program.

⁽²⁾ Results are annualized.

Three months ended

Jun 30

Mar 31

Dec 31

Sep 30

June 30

2024

2023

Operating return on average assets⁽²⁾

Net income

$ 94,975

$ 61,941

$ 64,263

$ 72,097

$ 79,607

Plus: Core deposit intangible amortization

4,556

441

912

Plus: Acquisition-related expense

13,803

—

Less: Non-PCD credit-related interest income from acquisition

(571)

—

Plus: CECL day 1 provision expense

23,444

—

Plus: Interest rate derivative transition valuation⁽¹⁾

(137)

(151)

(1,102)

2,958

—

Less: Gain on acquisition, net of tax

(47,392)

—

Plus: Loss on securities restructuring

20,282

—

Less: Gain on sale-leaseback

(20,266)

—

Plus: FDIC special assessment

—

956

6,494

—

Plus: FultonFirst implementation and asset disposals

6,323

6,329

3,197

—

Less: Tax impact of adjustments

(9,961)

(1,591)

(1,896)

(714)

(192)

Operating net income (numerator)

$ 85,056

$ 67,925

$ 71,397

$ 74,782

$ 80,327

Total average assets

$ 30,774,891

$ 27,427,626

$ 27,397,671

$ 27,377,836

$ 27,235,567

Less: Average net core deposit intangible

(68,234)

(4,666)

(5,106)

(5,548)

(6,417)

Total operating average assets (denominator)

$ 30,706,657

$ 27,422,960

$ 27,392,565

$ 27,372,288

$ 27,229,150

Operating return on average assets

1.11 %

1.00 %

1.03 %

1.08 %

1.18 %

Operating return on average common shareholders’ equity (tangible)⁽²⁾

Net income available to common shareholders

$ 92,413

$ 59,379

$ 61,701

$ 69,535

$ 77,045

Plus: Intangible amortization

4,688

573

597

601

1,072

Plus: Acquisition-related expense

13,803

—

Less: Non-PCD credit-related interest income from acquisition

(571)

—

Plus: CECL day 1 provision expense

23,444

—

Plus: Interest rate derivative transition valuation⁽¹⁾

(137)

(151)

(1,102)

2,958

—

Less: Gain on acquisition, net of tax

(47,392)

—

Plus: Loss on securities restructuring

20,282

—

Less: Gain on sale-leaseback

(20,266)

—

Plus: FDIC special assessment

—

956

6,494

—

Plus: FultonFirst implementation and asset disposals

6,323

6,329

3,197

—

Less: Tax impact of adjustments

(9,989)

(1,618)

(1,929)

(747)

(225)

Adjusted net income available to common shareholders (numerator)

$ 82,598

$ 65,468

$ 68,958

$ 72,347

$ 77,892

Average shareholders’ equity

$ 2,952,671

$ 2,766,945

$ 2,618,024

$ 2,645,977

$ 2,647,464

Less: Average preferred stock

(192,878)

Less: Average goodwill and intangible assets

(624,471)

(560,393)

(560,977)

(561,578)

(563,146)

Average tangible common shareholders’ equity (denominator)

$ 2,135,322

$ 2,013,674

$ 1,864,169

$ 1,891,521

$ 1,891,440

Operating return on average common shareholders’ equity (tangible)

15.56 %

13.08 %

14.68 %

15.17 %

16.52 %

⁽¹⁾ Resulting from the reference rate transition from LIBOR to SOFR in the Corporation’s commercial customer interest rate swap program.

⁽²⁾ Results are annualized.

Three months ended

Jun 30

Mar 31

Dec 31

Sep 30

June 30

2024

2023

Tangible common equity to tangible assets (TCE Ratio)

Shareholders’ equity

$ 3,101,609

$ 2,757,679

$ 2,760,139

$ 2,566,693

$ 2,642,152

Less: Preferred stock

(192,878)

Less: Goodwill and intangible assets

(648,026)

(560,114)

(560,687)

(561,284)

(561,885)

Tangible common shareholders’ equity (numerator)

$ 2,260,705

$ 2,004,687

$ 2,006,574

$ 1,812,531

$ 1,887,389

Total assets

$ 31,769,813

$ 27,642,957

$ 27,571,915

$ 27,375,177

$ 27,403,163

Less: Goodwill and intangible assets

(648,026)

(560,114)

(560,687)

(561,284)

(561,885)

Total tangible assets (denominator)

$ 31,121,787

$ 27,082,843

$ 27,011,228

$ 26,813,893

$ 26,841,278

Tangible common equity to tangible assets

7.26 %

7.40 %

7.43 %

6.76 %

7.03 %

Efficiency ratio

Non-interest expense

$ 199,488

$ 177,600

$ 180,552

$ 171,020

$ 168,018

Less: Acquisition-related expense

(13,803)

—

Less: Gain on sale-leaseback

20,266

—

Less: FDIC special assessment

—

(956)

(6,494)

—

Less: FultonFirst implementation and asset disposals

(6,323)

(6,329)

(3,197)

—

Less: Intangible amortization

(4,688)

(573)

(597)

(601)

(1,072)

Less: Debt extinguishment

—

720

—

Non-interest expense (numerator)

$ 194,940

$ 169,742

$ 170,984

$ 170,419

$ 166,946

Net interest income

$ 241,720

$ 206,937

$ 212,006

$ 213,842

$ 212,852

Tax equivalent adjustment

4,556

4,592

4,549

4,442

4,405

Plus: Total non-interest income

92,994

57,140

59,378

55,961

60,585

Plus: Interest rate derivative transition valuation⁽¹⁾

(137)

(151)

(1,102)

2,958

—

Less: Non-PCD credit-related interest income from acquisition

(571)

—

Less: Gain on acquisition, net of tax

(47,392)

—

Plus: Investment securities (gains) losses, net

20,282

—

752

—

Total revenue (denominator)

$ 311,452

$ 268,518

$ 275,583

$ 277,203

$ 277,846

Efficiency ratio

62.6 %

63.2 %

62.0 %

61.5 %

60.1 %

Operating non-interest expense to total average assets

Non-interest expense

$ 199,488

$ 177,600

$ 180,552

$ 171,020

$ 168,018

Less: Amortization of tax credit investments

—

Less: Intangible amortization

(4,688)

(573)

(597)

(601)

(1,072)

Less: Acquisition-related expense

(13,803)

—

Less: Gain on sale-leaseback

20,266

—

Less: FDIC special assessment

—

(956)

(6,494)

—

Less: FultonFirst implementation and asset disposals

(6,323)

(6,329)

(3,197)

—

Non-interest expense (numerator)

$ 194,940

$ 169,742

$ 170,264

$ 170,419

$ 166,946

Total average assets (denominator)

$ 30,774,891

$ 27,427,626

$ 27,397,671

$ 27,377,836

$ 27,235,567

Operating non-interest expenses to total average assets

2.55 %

2.49 %

2.47 %

2.46 %

⁽¹⁾ Resulting from the reference rate transition from LIBOR to SOFR in the Corporation’s commercial customer interest rate swap program.

⁽²⁾ Results are annualized.

Note: numbers in this report may not sum due to rounding.

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