Fulton Financial Announces Fourth Quarter and 2020 Results

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.

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“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, 2020				September 30, 2020				Growth
	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 mortgage	3,087,529		3.65	%	2,975,516		3.73	%	112,013		3.8	%
Real estate - home equity	1,212,113		3.91	%	1,237,602		3.87	%	(25,489)		(2.1)	%
Real estate - construction	1,009,284		3.11	%	981,589		3.84	%	27,695		2.8	%
Consumer	468,678		4.07	%	464,851		4.07	%	3,827		0.8	%
Equipment lease financing	279,059		3.98	%	279,217		3.96	%	(158)		(0.1)	%
Other(3)	(18,817)		N/A		(28,656)		N/A		9,839		(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, 2020				September 30, 2020				Growth
	Balance		Rate		Balance		Rate		$		%
	(dollars in thousands)
Average Deposits, by type:
Noninterest-bearing demand	$	6,477,228	—		$	6,270,683	—		$	206,545	3.3	%
Interest-bearing demand	5,762,150		0.10	%	5,591,548		0.14	%	170,602		3.1	%
Savings	5,905,137		0.13	%	5,716,050		0.16	%	189,087		3.3	%
Total average demand and savings	18,144,515		0.07	%	17,578,281		0.10	%	566,234		3.2	%
Brokered	340,451		0.53	%	314,721		0.56	%	25,730		8.2	%
Time	2,306,556		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 31			Sep 30			Jun 30			Mar 31			Dec 31
	2020			2020			2020			2020			2019
Ending Balances
Investments	$	3,340,424		$	3,097,721		$	2,974,813		$	3,141,440		$	2,867,378
Loans, net of unearned income	18,900,820			19,028,621			18,704,722			17,077,403			16,837,526
Total assets	25,906,733			25,543,281			24,617,863			22,929,859			21,886,040
Deposits	20,839,207			20,730,051			19,884,208			17,365,026			17,393,913
Shareholders' equity	2,616,828			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 income	18,994,514			18,880,519			18,331,797			16,860,067			16,768,057
Total assets	25,749,405			25,169,508			24,139,116			22,252,099			21,812,438
Deposits	20,791,522			20,388,447			19,276,658			17,121,428			17,449,565
Shareholders' equity	2,544,866			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 losses	6,240			7,080			19,570			44,030			20,530
Non-interest income	55,574			63,248			55,922			54,644			55,281
Non-interest expense	154,737			139,147			143,006			142,552			138,974
Income before taxes	56,187			71,137			46,101			28,808			55,047
Net income available to common shareholders	48,690			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 31			Sep 30			Jun 30			Mar 31			Dec 31
	2020			2020			2020			2020			2019
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 loans	0.78		%	0.75		%	0.75		%	0.82		%	0.84		%
Non-performing assets to total assets	0.58		%	0.57		%	0.59		%	0.64		%	0.68		%
ACL - loans(3) to total loans	1.47		%	1.40		%	1.37		%	1.40		%	0.97		%
ACL - loans(3) to non-performing loans	189		%	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 loans	0.85		%	0.83		%	0.83		%	—		%	—		%
ACL - loans(3) to total adjusted loans	1.60		%	1.56		%	1.53		%	—		%	—		%

Profitability
Return on average assets	0.79		%	0.97		%	0.66		%	0.47		%	0.87		%
Return on average shareholders' equity	7.95		%	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 margin	2.75		%	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 31		Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Dec 31
		2020		2020		2020		2020		2019		2020		2019
ASSETS
	Cash and due from banks	$	120,462	$	139,304	$	141,702	$	181,777	$	132,283	(13.5)	%	(8.9)	%
	Other interest-earning assets	1,819,499		1,489,550		1,007,939		793,572		482,930		22.2	%	N/M
	Loans held for sale	83,886		93,621		77,415		40,645		37,828		(10.4)	%	N/M
	Investment securities	3,340,424		3,097,721		2,974,813		3,141,440		2,867,378		7.8	%	16.5	%
	Loans, net of unearned income	18,900,820		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 loans	18,623,253		18,761,796		18,448,185		16,838,895		16,673,904		(0.7)	%	11.7	%
	Premises and equipment	231,480		236,943		239,596		236,908		240,046		(2.3)	%	(3.6)	%
	Accrued interest receivable	72,942		70,766		73,720		59,365		60,898		3.1	%	19.8	%
	Goodwill and intangible assets	536,659		534,907		535,039		535,171		535,303		0.3	%	0.3	%
	Other assets	1,078,128		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 borrowings	630,066		611,727		572,551		1,386,808		883,241		3.0	%	(28.7)	%
	Other liabilities	524,369		515,230		525,407		513,811		384,941		1.8	%	36.2	%
	FHLB advances and long-term debt	1,296,263		1,296,012		1,295,196		1,378,466		881,769		—	%	47.0	%
	Total Liabilities	23,289,905		23,153,020		22,277,362		20,644,111		19,543,864		0.6	%	19.2	%
	Shareholders' equity	2,616,828		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 industrial	4,088,561		4,007,278		4,033,439		4,450,557		4,445,634		2.0	%	(8.0)	%
	Real estate - residential mortgage	3,141,915		3,061,835		2,862,226		2,718,290		2,641,465		2.6	%	18.9	%
	Real estate - home equity	1,202,913		1,222,709		1,251,455		1,292,677		1,314,944		(1.6)	%	(8.5)	%
	Real estate - construction	1,047,218		1,007,534		972,909		947,768		971,079		3.9	%	7.8	%
	Consumer	466,772		469,551		465,610		468,172		463,164		(0.6)	%	0.8	%
	Equipment lease financing	279,118		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 PPP	17,319,108		17,068,456		16,767,688		17,077,403		16,837,526		1.5	%	2.9	%
	PPP	1,581,712		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 demand	5,818,564		5,813,935		5,099,405		4,724,520		4,720,188		0.1	%	23.3	%
	Savings	5,929,792		5,805,431		5,667,893		5,092,865		5,153,941		2.1	%	15.1	%
	Total demand and savings	18,279,358		17,997,443		17,006,353		14,349,257		14,327,453		1.6	%	27.6	%
	Brokered	335,185		317,588		310,689		313,337		264,531		5.5	%	26.7	%
	Time	2,224,664		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/M		N/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 from				Years ended
		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Dec 31		Dec 31
		2020		2020		2020		2020		2019		2020		2019		2020		2019		% 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 expense	22,054		25,043		27,942		38,632		42,889		(11.9)	%	(48.6)	%	113,671		176,917		(35.7)	%
	Net Interest Income	161,591		154,116		152,754		160,746		159,270		4.9	%	1.5	%	629,207		648,389		(3.0)	%
	Provision for credit losses	6,240		7,080		19,570		44,030		20,530		(11.9)	%	(69.6)	%	76,920		32,825		N/M
	Net Interest Income after Provision	155,351		147,036		133,184		116,716		138,740		5.7	%	12.0	%	552,287		615,564		(10.3)	%
Non-Interest Income:
	Wealth management	15,653		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:
	Card	5,123		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 banking	10,798		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 markets	3,513		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)	%
	Other	3,004		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/M		3,053		4,733		(35.5)	%
	Total Non-Interest Income	55,574		63,248		55,922		54,644		55,281		(12.1)	%	0.5	%	229,388		216,160		6.1	%
Non-Interest Expense:
	Salaries and employee benefits	83,929		79,227		81,012		80,228		76,975		5.9	%	9.0	%	324,395		311,934		4.0	%
	Net occupancy	13,161		13,221		13,144		13,486		13,080		(0.5)	%	0.6	%	53,013		52,826		0.4	%
	Data processing and software	11,951		12,285		12,193		11,645		11,468		(2.7)	%	4.2	%	48,073		44,679		7.6	%
	Other outside services	8,334		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 fees	2,424		2,879		3,331		4,202		2,873		(15.8)	%	(15.6)	%	12,835		13,134		(2.3)	%
	Marketing	1,098		1,147		1,303		1,579		1,503		(4.3)	%	(27.0)	%	5,127		9,848		(47.9)	%
	Amortization of tax credit investments	1,532		1,694		1,450		1,450		1,505		(9.6)	%	1.8	%	6,126		6,021		1.7	%
	FDIC insurance	2,346		1,578		2,133		2,808		2,177		48.7	%	7.8	%	8,865		7,780		13.9	%
	Intangible amortization	132		132		132		132		142		0.2	%	(6.8)	%	529		1,427		(63.0)	%
	Prepayment penalty on FHLB advances	—		—		2,878		—		—		N/M		N/M		2,878		4,326		(33.5)	%
	Other	26,268		15,654		14,637		15,723		17,561		67.8	%	49.6	%	72,282		62,197		16.2	%
	Total Non-Interest Expense	154,737		139,145		143,006		142,552		138,974		11.2	%	11.3	%	579,440		567,736		2.1	%
	Income Before Income Taxes	56,187		71,139		46,100		28,808		55,047		(21.0)	%	2.1	%	202,235		263,988		(23.4)	%
	Income tax expense	5,362		9,529		6,542		2,761		7,258		(43.7)	%	(26.1)	%	24,194		37,649		(35.7)	%
	Net Income	50,825		61,610		39,558		26,047		47,789		(17.5)	%	6.4	%	178,040		226,339		(21.3)	%
	Preferred stock dividends	(2,135)		—		—		—		—		N/M		N/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)	%
	Diluted	0.30		0.38		0.24		0.16		0.29		(21.1)	%	3.4	%	1.08		1.35		(20.0)	%
	Cash dividends	0.17		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, 2020						September 30, 2020						December 31, 2019
		Average		Interest		Yield/		Average		Interest		Yield/		Average		Interest		Yield/
		Balance		(1)		Rate		Balance		(1)		Rate		Balance		(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 securities	2,233,730		13,559		2.43	%	2,011,893		13,150		2.61	%	2,198,252			15,621	2.84	%
	Tax-exempt investment securities	886,329		7,044		3.17	%	861,764		6,899		3.19	%	594,487			5,058	3.38	%
	Total Investment Securities	3,120,059		20,603		2.64	%	2,873,657		20,048		2.79	%	2,792,739			20,679	2.96	%
	Loans held for sale	76,871		521		2.71	%	79,999		728		3.64	%	30,062			295	3.93	%
	Other interest-earning assets	1,668,454		1,179		0.28	%	1,387,327		1,028		0.30	%	492,560			2,370	1.92	%
	Total Interest-earning Assets	23,859,898		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 banks	126,190						138,567						128,417
	Premises and equipment	236,265						239,183						239,294
	Other assets	1,799,381						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 deposits	5,905,137		1,866		0.13	%	5,716,050		2,347		0.16	%	5,205,260			10,253	0.78	%
	Brokered deposits	340,451		451		0.53	%	314,721		440		0.56	%	261,689			1,279	1.94	%
	Time deposits	2,306,556		8,082		1.39	%	2,495,445		9,931		1.58	%	2,959,008			13,775	1.86	%
	Total Interest-bearing Deposits	14,314,294		11,856		0.33	%	14,117,764		14,631		0.41	%	13,124,997			33,801	1.02	%

	Short-term borrowings	622,623		268		0.17	%	613,127		370		0.24	%	717,811			2,343	1.29	%
	FHLB advances and long-term debt	1,296,139		9,930		3.06	%	1,295,515		10,042		3.10	%	875,802			6,745	3.07	%
	Total Interest-bearing Liabilities	16,233,056		22,054		0.54	%	16,026,406		25,043		0.62	%	14,718,610			42,889	1.16	%

Noninterest-bearing liabilities:
	Demand deposits	6,477,228						6,270,683						4,324,568
	Total Deposits/Cost of Deposits	20,791,522				0.23	%	20,388,447				0.29	%	17,449,565				0.77	%
	Other	494,255						498,328						427,863
	Total Liabilities	23,204,539						$	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' equity	2,544,866						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 31		Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Dec 31
		2020		2020		2020		2020		2019		2020		2019
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 industrial	4,024,879		4,030,750		4,451,228		4,446,750		4,574,047		(0.1)	%	(12.0)	%
	Real estate - residential mortgage	3,087,529		2,975,516		2,769,682		2,670,019		2,606,136		3.8	%	18.5	%
	Real estate - home equity	1,212,113		1,237,602		1,271,190		1,300,132		1,331,088		(2.1)	%	(8.9)	%
	Real estate - construction	1,009,284		981,589		941,079		929,529		934,556		2.8	%	8.0	%
	Consumer	468,678		464,851		465,728		466,415		464,606		0.8	%	0.9	%
	Equipment lease financing	279,059		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 PPP	17,164,088		16,927,397		17,072,880		16,860,067		16,766,971		1.4	%	2.4	%
	PPP	1,830,426		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 demand	5,762,150		5,591,548		5,103,419		4,649,905		4,699,040		3.1	%	22.6	%
	Savings	5,905,137		5,716,050		5,446,368		5,127,662		5,205,260		3.3	%	13.4	%
	Total demand and savings	18,144,515		17,578,281		16,339,575		14,084,594		14,228,868		3.2	%	27.5	%
	Brokered	340,451		314,721		312,121		275,359		261,689		8.2	%	30.1	%
	Time	2,306,556		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
		2020						2019
		Average		Interest		Yield/		Average		Interest		Yield/
		Balance		(1)		Rate		Balance		(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 securities	2,182,410		58,173		2.66	%	2,278,448		62,556		2.74	%
	Tax-exempt investment securities	825,057		26,641		3.22	%	500,398		17,998		3.57	%
	Total Investment Securities	3,007,467		84,814		2.82	%	2,778,846		80,554		2.89	%
	Loans held for sale	60,015		2,077		3.46	%	25,795		1,351		5.24	%
	Other interest-earning assets	1,120,727		5,504		0.49	%	445,008		9,249		2.08	%
	Total Interest-earning Assets	22,458,599		755,181		3.36	%	19,679,996		838,273		4.26	%

Noninterest-earning assets:
	Cash and due from banks	139,146						119,144
	Premises and equipment	238,864						239,376
	Other assets	1,746,956						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 deposits	5,550,234		14,654		0.26	%	5,018,381		41,823		0.83	%
	Brokered deposits	310,763		2,387		0.77	%	245,501		5,779		2.35	%
	Time deposits	2,546,305		41,615		1.63	%	2,869,326		50,825		1.77	%
	Total Interest-bearing Deposits	13,686,243		70,045		0.51	%	12,517,267		131,775		1.05	%

	Short-term borrowings	810,583		5,227		0.64	%	849,679		14,543		1.70	%
	FHLB advances and long-term debt	1,254,300		38,398		3.06	%	942,600		30,599		3.25	%
	Total Interest-bearing Liabilities	15,751,126		113,671		0.72	%	14,309,546		176,917		1.24	%

Noninterest-bearing liabilities:
	Demand deposits	5,714,803						4,249,294
	Total Deposits/Cost of Deposits	19,401,046				0.36	%	16,766,561				0.79	%
	Other	476,139						393,130
	Total Liabilities	21,942,068						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' equity	2,391,649						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
		2020		2019		% Change
Loans, by type:
	Real estate - commercial mortgage	$	6,928,269	$	6,463,783	7.2	%
	Commercial and industrial	4,237,252		4,473,549		(5.3)	%
	Real estate - residential mortgage	2,876,538		2,441,684		17.8	%
	Real estate - home equity	1,255,094		1,382,908		(9.2)	%
	Real estate - construction	965,534		928,183		4.0	%
	Consumer	466,419		448,205		4.1	%
	Equipment lease financing	281,859		279,489		0.8	%
	Other(1)	(4,640)		12,546		N/M
	Loans, net of unearned income before PPP	17,006,325		16,430,347		3.5	%
	PPP	1,264,065		—		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 demand	5,278,941		4,384,059		20.4	%
	Savings	5,550,234		5,018,381		10.6	%
	Total demand and savings	16,543,978		13,651,734		21.2	%
	Brokered	310,763		245,501		26.6	%
	Time	2,546,305		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 borrowings	192,632		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 ended															Year ended
		Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Dec 31			Dec 31
		2020			2020			2020			2020			2019			2020			2019
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 industrial	4,581			2,103			2,978			1,734			2,487			11,396			8,721
	Real estate - commercial mortgage	588			100			95			244			1,453			1,027			2,202
	Consumer and home equity	594			491			649			646			437			2,380			1,994
	Real estate - residential mortgage	199			95			112			85			206			491			989
	Real estate - construction	179			4,873			—			70			1,098			5,122			2,591
	Equipment lease financing and other	219			185			92			108			182			604			666
	Recoveries of loans previously charged off	6,360			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 losses		7,400			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 accruing	9,929			13,761			14,767			19,593			16,057
	Total non-performing loans	147,127			142,082			139,804			139,938			141,155
	Other real estate owned	4,178			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 mortgage	52,647			43,426			42,374			36,538			37,279
	Real estate - residential mortgage	30,793			28,287			22,887			25,832			22,411
	Consumer and home equity	13,090			12,292			11,911			11,226			11,026
	Real estate - construction	1,550			4,051			4,525			4,379			4,306
	Equipment lease financing and other	16,437			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 31			Sep 30			Jun 30			Mar 31			Dec 31
	2020			2020			2020			2020			2019
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 tax	104			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), annualized	10.32		%	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 assets	7.44		%	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 income	55,574			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	69.5		%	62.3		%	66.4		%	64.5		%	63.1		%


	Three months ended
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
	2020			2020			2020			2020			2019

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 income	55,574			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 initiatives	62.5		%	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 - loans	277,567			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 - loans	6.99		%	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 loans	0.85		%	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 loans	1.60		%	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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210119006092/en/

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