Slide 1: Second Quarter 2024 Results
SECOND QUARTER 2024 RESULTS NASDAQ: FULT Data as of or for the period ended June 30, 2024 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: Meaningful Contribution: Similar Lending Products, Services and Markets of Operation
MEANINGFUL CONTRIBUTION: SIMILAR LENDING PRODUCTS, SERVICES AND MARKETS OF OPERATION Transaction Loan Portfolio $21.6B $2.5B $24.1B (June 30,2024) 11 basis point improvement to net interest margin (“NIM”) in 2Q24 Deposit Portfolio (June 30,2024) $21.8B $3.8B $25.6B ~$34.8 million improvement to net
Slide 4: Income Statement Summary
INCOME STATEMENT SUMMARY Linked-Quarter 2Q24 1Q24 Change (dollars in thousands, except per-share data) Net interest income $241,720 $206,937 $34,783 Provision for credit losses 32,056 10,925 21,131 Non-interest income 113,276 57,140 56,136 Securities gains (losses) (20,282) — (20,282) Non-interest e
Slide 5: Second Quarter Purchase Accounting Accretion
SECOND QUARTER PURCHASE ACCOUNTING ACCRETION(1) Republic Transaction - Loan Accretion as of June 30, 2024 $ in thousands Credit Remaining Q2 2024 Accretion Q2 2024 Loan Balance Interest Rate Non- Term Duration Interest Rate Credit- Total Acquired Mark PCD (months) (months) Mark Non-PCD Accretion CRE
Slide 6: Net Interest Income and NIM
NET INTEREST INCOME AND NIM 2Q24 Highlights Average Interest-Earning Assets & Yields (dollars in billions) • NIM was 3.43% in the second quarter of 2024, increasing 11 basis points compared to the first quarter of 2024. • Loan yield improved by 22 basis points during the second quarter of 2024, incr
Slide 7: Asset Quality
ASSET QUALITY Provision for Credit Losses Non-Performing Loans (“NPLs”) & NPLs to Loans Net Charge-offs (“NCOs”) and NCOs to Average Loans ACL(1) to NPLs & Loans (1) The allowance for credit losses (“ACL”) relates specifically to “Loans, net of unearned income” and does not include reserves related
Slide 8: Non-Interest Income
NON-INTEREST INCOME(1) Linked- 2Q24 Fulton 2Q24 Republic 2Q24 Quarter Non-interest Income (dollars in thousands) Organic Transaction Consolidated 1Q24 Change (percentage of total non-interest income, three months ended June 30, 2024) Commercial Banking $ 21,027 $ 383 $ 21,410 $ 18,829 $ 2,581 Wealth
Slide 9: Non-Interest Expense
NON-INTEREST EXPENSE Linked- 2Q24 Fulton 2Q24 Republic 2Q24 Quarter Organic Transaction Consolidated 1Q24 Change Non-interest Expense (dollars in thousands) (percentage of total non-interest expense, three months ended June 30, 2024) Salaries and employee benefits $ 102,117 $ 8,513 $ 110,630 $ 95,48
Slide 10: Capital Ratios
CAPITAL RATIOS(1) (as of June 30, 2024) (dollars in millions) $790 $581 $730 $1,181 (2) (1) Regulatory capital ratios and excess capital amounts as of June 30, 2024 are preliminary estimates. (2) Excesses shown are to regulatory minimums, including the 250 basis point capital conservation buffer, ex
Slide 11: 2024 Outlook
2024 OUTLOOK Net Interest Income: $925 - $950 million(1) Provision for Credit Losses: $40 - $60 million Non-Interest Income: $240 - $260 million(2) Non-Interest Expense: $750 - $770 million(3) Effective Tax Rate: 16% - 18% (1) Assumes Fed Funds Rate decrease of 25 basis points in September 2024. (2)
Slide 12: A Larger Deposit Portfolio That Remains Granular, Tenured and Diversified
A LARGER DEPOSIT PORTFOLIO THAT REMAINS GRANULAR, TENURED AND DIVERSIFIED WITH SIGNIFICANT LIQUIDITY COVERAGE Deposit Mix By Customer Deposit Portfolio Highlights(1) (June 30, 2024) 883,000 deposit accounts $28,770 average account balance ~10 year average account age 23% estimated uninsured deposits
Slide 13: Loan Portfolio Diversified and Granular with Low Office Concentration
THE LOAN PORTFOLIO REMAINS DIVERSIFIED AND GRANULAR WITH LOW OFFICE CONCENTRATION AT 3% OF TOTAL LOANS Total Loan Portfolio Office Only Profile (June 30, 2024) • $896 million in office loan commitments • $824 million in office loans outstanding • representing 3% of total loans • Average loan size is
Slide 14: Acquired Office Portfolio Has Similar Characteristics to Fulton's
THE ACQUIRED OFFICE PORTFOLIO HAS SIMILAR CHARACTERISTICS TO FULTON’S WITH SOME SEASONING AND LONGER MATURITY TERM Granular Loan Portfolio Geographically Diverse by MSA(1) Originated Over Time Maturing Over Time (1) Metropolitan Statistical Areas or “MSA” titled in short name for presentation purpos
Slide 15: Multi-Family Loans Represent 8% of Total Loan Portfolio
MULTI-FAMILY LOANS REPRESENT 8% OF THE TOTAL LOAN PORTFOLIO WITH A SMALL AVERAGE LOAN SIZE, LOW LTV’S AND SOLID DSCR Total Loan Portfolio (June 30, 2024) Multi-Family Profile • $2.4 billion in multi-family loan commitments • $1.9 billion in multi-family loans outstanding • representing 8% of total l
Slide 16: Multi-Family Portfolio Recently Originated and Appraised
THE MAJORITY OF THE MULTI-FAMILY PORTFOLIO HAS BEEN RECENTLY ORIGINATED AND APPRAISED AND HAS A LONG-DATED MATURITY HORIZON Diversified by Size Diversified by Geographical MSA Recently Originated and Appraised Maturing Over Time 16
Slide 17: 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 18: Liquidity Profile
LIQUIDITY PROFILE Available Liquidity June 30, 2024 Estimated Uninsured Deposits June 30, 2024 (dollars in thousands) Cash On-Hand (1) $ 1,133 Total Deposits $25,560 Estimated Uninsured Deposits $8,668 Federal Reserve Capacity 1,859 Estimated Uninsured Deposits to Total Deposits 34% Total Available
Slide 19: 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 20: Operating return on average assets reconciliation
Three months ended (dollars in thousands) Jun 30 Mar 31 2024 2024 Operating return on average assets Net income $94,975 $61,941 Plus: Core deposit intangible amortization 4,556 441 Plus: Acquisition-related expense 13,803 — Less: Non-PCD credit-related interest income from acquisition (571) — Plus:
Slide 21: Operating return on average common equity (tangible) reconciliation
Three months ended (dollars in thousands) Jun 30 Mar 31 2024 2024 Operating return on average common shareholders' equity (tangible), annualized Net income available to common shareholders $92,413 $59,379 Plus: Intangible amortization 4,688 573 Plus: Acquisition-related expense 13,803 — Less: Non-PC
Slide 22: Efficiency ratio reconciliation
(dollars in thousands) Three months ended Jun 30 Mar 31 Efficiency ratio 2024 2024 Non-interest expense $199,488 $177,600 Less: Intangible amortization (4,688) (573) Less: Acquisition-related expenses (13,803) — Less: Gain on sale-leaseback 20,266 — Less: FDIC special assessment — (956) Less: Fulton