Slide 1: Fourth Quarter 2023 Results
FOURTH QUARTER 2023 RESULTS NASDAQ: FULT Data as of or for the period ended December 31, 2023 unless otherwise noted
Slide 2: Forward-looking statements
This presentation may contain forward-looking statements with respect to Fulton Financial Corporation's (the "Corporation") 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
Slide 3: A stable deposit portfolio that remains granular, tenured and diversified
A STABLE DEPOSIT PORTFOLIO THAT REMAINS GRANULAR, TENURED AND DIVERSIFIED WITH SIGNIFICANT LIQUIDITY COVERAGE Deposit Mix By Customer Deposit Portfolio Highlights” Commercial (Including 744,000 deposit accounts Municipal) 534,000 total households 2018 2019 2020 2021 2022 2023 @ Time Deposits @ Broke
Slide 4: The loan mix is diversified, granular, with low CRE and low office concentrations
THE LOAN MIX IS DIVERSIFIED, GRANULAR, WITH LOW CRE AND LOW OFFICE CONCENTRATIONS Total Loan Portfolio (December 31, 2023) m RE - Commercial Mortgage (excl. office) GRE - Office Only = Commercial and Industrial = RE - Residential Mortgage $21.35 BN m RE - Home Equity = RE - Construction Consumer = L
Slide 5: The office portfolio has been originated over time, will mature over time
THE OFFICE PORTFOLIO HAS BEEN ORIGINATED OVER TIME, WILL MATURE OVER TIME, AND REMAINS GRANULAR AND DIVERSE Granular Loan Portfolio $195 $171 $172 $106 15 5 a Under $1MM $1MM-$5MM_ $5MM - $10MM $10MM - $20MM_ Greater than $20MM m8 Commitments (in millions) Number of Loans Originated Over Time $107 $
Slide 6: Quarterly income statement summary 4Q23 3Q23 4Q22
4Q23 3Q23 4Q22 (dollars in thousands, except per-share data) Net interest income $212,006 $213,842 $225,911 Provision for credit losses 9,808 9,937 14,513 Non-interest income 60,130 55,961 54,322 Securities gains (losses) (752) — (1) Non-interest expense 180,552 171,020 166,568 Merger-related expens
Slide 7: Noninterest-bearing deposit trends
NONINTEREST-BEARING DEPOSIT TRENDS * Growth in the Corporation’s commercial banking business, as well as the historically low levels of interest rates for much of the post-2008 period, led to a generally increasing trend in the percentage of noninterest-bearing deposits. * Prior to 2008, noninterest
Slide 8: Net interest income and margin
NET INTEREST INCOME AND MARGIN 4Q23 Highlights NIM was 3.36% in the fourth quarter of 2023, declining 4 basis points compared to the third quarter of 2023. Loan yield improved by 11 basis points during the fourth quarter of 2023, increasing to 5.83% compared to 5.72% in the third quarter of 2023. Lo
Slide 9: Asset quality
ASSET QUALITY Gollarsinmiions) Non-Performing Loans (“NPLs”) & NPLs to Loans Provision for Credit Losses $25 0.85% 0.90% $25 $175 0.80% 0.80% $172 0.70% 0.72% $20 0.67% = 0.70% 0.60% $15 $150 $153 sis $148 050% $141 0.40% $10 $10 $10 $125 0.30% $5 0.20% 0.10% $- $100 0.00% 4022 1023 2023 3023 4023 4
Slide 10: Excluding investment securities gains
(1) 10 Excluding investment securities gains.
Slide 11: Non-interest expense
NON-INTEREST EXPENSE Non-interest Expense 4023 3023 Change . (dollars in thousands) (percent of total non-interest expense, three months ended December 31, 2023) EEE Salaries and employee benefits $97,275 $96,757 $518 Data processing and software 16,985 16,914 71 |_| Other outside services 14,670 12
Slide 12: Regulatory capital ratios and excess capital
(as of December 31, 2023) (dollars in millions) 17.5% 15.0% 14.1% 12.5% $815 11.2% 10.4% 10.0% 9.5% $621 $767 $1,201 7.5% 5.0% 2.5% —% Tier 1 Leverage CE Tier 1 Tier 1 Risk-Based Total Risk-Based (2) Regulatory Minimums Excess (1) Regulatory capital ratios and excess capital amounts as of December 3
Slide 13: Capital ratios adjusted for unrealized losses
(as of December 31, 2023) (dollars in millions) 12.5% | | 10.0% | 8.8% 8.3% | 7.5% $410 | 7.0% $856 | | 5.0% | | | 2.5% | | —% | Tier 1 Leverage(3) CE Tier 1(3) TCE(4) (1) Regulatory capital ratios and excess capital amounts as of December 31, 2023 are preliminary estimates. (2) Excesses shown are t
Slide 14: (dollars in thousands) (dollars in thousands)
(dollars in thousands) (dollars in thousands) 14
Slide 15: 2024 Outlook
Net interest income: $790 - $820 million(1) Non-interest income: $235 - $250 million(2) Provision for credit losses: $45 - $65 million Non-interest expense: $670 - $690(3) Effective tax rate: 17% - 18% (1) Assumes Fed Funds Rate decreases of 75 bps in the aggregate in the second half of 2024. (2) Ex
Slide 16: Non-GAAP financial measures note
Note: The Corporation has presented the following 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 c
Slide 17: Operating return on average assets
Three months ended (dollars in thousands) Dec 31 Sep 30 Dec 31 2023 2023 2022 Operating return on average assets Net income $64,263 $72,097 $81,833 Plus: Core deposit intangible amortization 441 441 514 Plus: Merger-related expenses — — 1,894 (1) Plus: Interest rate derivative transition valuation (
Slide 18: Return on average common shareholders' equity (tangible)
Three months ended (dollars in thousands) Dec 31 Sep 30 Dec 31 2023 2023 2022 Return on average common shareholders' equity (tangible) Net income available to common shareholders $61,701 $69,535 $79,271 Plus: Intangible amortization 597 601 688 Plus: Merger-related expenses — — 1,894 (1) Plus: Inter
Slide 19: Efficiency ratio
(dollars in thousands) Three months ended Dec 31 Sep 30 Dec 31 Efficiency ratio 2023 2023 2022 Non-interest expense $180,552 $171,020 $168,462 Less: Amortization of tax credit investments — — (696) Less: Intangible amortization (597) (601) (688) Less: Merger-related expenses — — (1,894) Less: FDIC s
Slide 20: Adjusted tangible common equity to tangible assets
Three months ended (dollars in thousands) Dec 31 2023 Adjusted tangible common equity to tangible assets (TCE Ratio) Shareholders' equity $ 2,750,044 Less: Preferred stock (192,878) Less: Goodwill and intangible assets (560,687) Less: Unrealized gain (loss) - HTM (140,277) Less: Tax impact of adjust