Fulton Financial Responds to the COVID-19 Pandemic, “It’s Personal,” and Announces First Quarter Earnings

LANCASTER, Pa.--(BUSINESS WIRE)--Fulton Financial Corporation (NASDAQ:FULT) (“Fulton” or the “Corporation”) reported net income of $26 million, or $0.16 per diluted share, for the first quarter of 2020.

“The COVID-19 pandemic and unprecedented public health response have created extraordinary personal and societal challenges across our nation and world,” said E. Philip Wenger, Chairman and CEO. “Fulton began to experience the effects of these challenges midway through the first quarter and our financial results reflect these challenges. But, as we have seen before, extreme hardship often gives rise to extraordinary efforts, and we have seen that with respect to the heroic efforts of our health care workers, first responders and countless other citizens on the front lines of essential businesses that are enabling us to ‘Stay Together, Apart.’ We are all very thankful for their selfless efforts, including from our own employees.”

“In this crisis, more than ever before, our Fulton brand – ‘It’s Personal’– reflects our own bias for action, rather than just words, and that is exemplified in how Fulton is dealing with COVID-related challenges. We have undertaken a number of measures to help our employees and their families through this difficult time, both to keep them safe and also to reward them for keeping us open for business so that we can continue to provide essential banking services to our customers and communities. I am extremely proud of the efforts our employees have made. One outstanding example is how I have seen our people rally to support the SBA’s efforts to assist small businesses and their employees with the Paycheck Protection Program of the CARES Act. Our employees worked 24/7 the last two weeks to have the SBA approve $1.7 billion in forgiveable loans that Fulton Bank is making to our small business customers so that those businesses can maintain employees on their payrolls and, hopefully, reopen for business sometime in the not-too-distant future.”

“No one can predict when our communities and nation will again enjoy a sense of normalcy, but I can tell you that Fulton Bank is strong – it is ‘well-capitalized,’ it is liquid, and it stands ready to continue to deploy its considerable resources in support of customers and communities across our footprint as we continue to navigate through these difficult times in the days and months ahead.”

Net Interest Income and Balance Sheet

Net interest income for the first quarter of 2020 was $161 million, an increase of $1 million from the fourth quarter of 2019, driven by interest-earning asset growth, primarily in loans and investment securities. Net interest margin for the first quarter of 2020 decreased to 3.21% from 3.22% in the fourth quarter of 2019.

Total average assets for the first quarter of 2020 were $22.3 billion, an increase of $440 million from the fourth quarter of 2019. Average loans, net of unearned income, of $16.9 billion were consistent with the fourth quarter of 2019.

Average loans and yields, by type, for the first quarter of 2020 in comparison to the fourth quarter of 2019 are summarized in the following table:

		Three Months Ended						Increase/(Decrease)
		March 31, 2020			December 31, 2019			in balance
		Balance	Yield (1)		Balance	Yield (1)		$		%
		(dollars in thousands)
Average Loans and Lease, net of unearned income, by type:
	Real estate - commercial mortgage	$ 6,746,766	4.20	%	$ 6,561,029	4.34	%	$185,737		2.8	%
	Commercial and industrial	4,446,750	4.21	%	4,574,047	4.24	%	(127,297	)	(2.8	%)
	Real estate - residential mortgage	2,670,019	3.97	%	2,606,136	4.00	%	63,883		2.5	%
	Real estate - home equity	1,300,132	4.73	%	1,331,088	4.97	%	(30,956	)	(2.3	%)
	Real estate - construction	929,529	4.13	%	934,556	4.37	%	(5,027	)	(0.5	%)
	Consumer	466,415	4.34	%	464,606	4.44	%	1,809		0.4	%
	Equipment lease financing	284,566	4.32	%	281,451	4.35	%	3,115		1.1	%
	Other	15,890	N/A		15,144	N/A		746		4.9	%
	Total Average Loans and leases, net of unearned income	$16,860,067	4.23	%	$16,768,057	4.31	%	$ 92,010		0.5	%

(1)	Presented on a fully-taxable equivalent basis using a 21% Federal tax rate and statutory interest expense disallowances.

Total average liabilities increased $444 million, from the fourth quarter of 2019 driven by increases in borrowings of $773 million, while average deposits decreased $328 million. Average deposits and interest rates, by type, for the first quarter of 2020 in comparison to the fourth quarter of 2019 are summarized in the following table:

		Three Months Ended						Increase/(Decrease)
		March 31, 2020			December 31, 2019			in balance
		Balance	Rate		Balance	Rate		$		%
		(dollars in thousands)
Average Deposits, by type:
	Noninterest-bearing demand	$ 4,307,027	-	%	$ 4,324,568	-	%	$ (17,541	)	(0.4	%)
	Interest-bearing demand	4,649,905	0.49	%	4,699,040	0.72	%	(49,135	)	(1.0	%)
	Savings and money market deposits	5,127,662	0.56	%	5,205,260	0.78	%	(77,598	)	(1.5	%)
Total average demand and savings		14,084,594	0.36	%	14,228,868	0.52	%	(144,274	)	(1.0	%)
	Brokered deposits	275,359	1.57	%	261,689	1.94	%	13,670		5.2	%
	Time deposits	2,761,474	1.84	%	2,959,008	1.86	%	(197,534	)	(6.7	%)
	Total Average Deposits	$17,121,427	0.62	%	$17,449,565	0.77	%	$(328,138	)	(1.9	%)

Asset Quality

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 credit exposures be measured based on expected credit losses, rather than on incurred credit losses as in prior periods. As a result of the adoption of CECL, the allowance for credit losses was increased by $58 million, and retained earnings was decreased by $44 million.

The provision for credit losses for the first quarter of 2020 was $44 million, applying the expected credit losses measurement standard under CECL. The expected credit losses in the first quarter of 2020 were based on forecasted economic assumptions, including the estimated impacts of COVID-19, over the remaining expected lives of financial assets and off-balance-sheet credit exposures.

Non-performing assets were $147 million, or 0.64% of total assets, at March 31, 2020, relatively unchanged from December 31, 2019 and March 31, 2019.

Annualized net charge-offs for the quarter ended March 31, 2020 were 0.26% of total average loans, compared to 0.65% and 0.10% for the quarters ended December 31, 2019 and March 31, 2019, respectively. A $20 million charge-off was recorded for one credit in the fourth quarter of 2019, accounting for most of the difference in this metric for that period in comparison to the first quarter of 2020.

Non-interest Income

Non-interest income in the first quarter of 2020, excluding investment securities gains, was $55 million, relatively unchanged from the fourth quarter of 2019 and an increase of $8 million, or 17%, compared to the first quarter of 2019. Drivers of non-interest income growth in the first quarter of 2020 were mortgage banking and wealth management, offset by decreases in capital markets, consumer card income and merchant and commercial card income compared to the fourth quarter of 2019.

Mortgage banking revenue increased $1 million from the fourth quarter of 2019, reflecting the net result of a $2 million increase in gains on mortgage loan sales, partially offset by a $1 million mortgage servicing rights impairment charge recorded in the first quarter of 2020 as a result of rapidly declining interest rates and related increases in prepayment speeds.

Non-interest Expense

Non-interest expense was $143 million in the first quarter of 2020, an increase of $4 million, or 3%, compared to the fourth quarter of 2019. The increase was driven by salaries and employee benefits, professional fees, and FDIC insurance expense.

Compared to the first quarter of 2019, non-interest expenses increased $5 million, or 3% due primarily to higher salaries and employee benefits, data processing and software and one additional day.

Income Tax Expense

The effective income tax rate for the first quarter of 2020 was 10%, as compared to 13% and 16% for the fourth quarter of 2019 and first quarter of 2019, respectively. The decrease in the effective income tax rate in 2020 was related to a decline in income before income taxes.

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, 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 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). The Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 will address risks and uncertainties associated with the COVID-19 pandemic.

In addition, the COVID-19 pandemic is having an adverse impact on the Corporation, its customers and the communities it serves. The adverse effect of the COVID-19 pandemic on the Corporation, its customers and the communities where it operates may adversely affect the Corporation’s business, results of operations and financial condition for an indefinite period of time.

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
	Mar 31		Dec 31		Sep 30		Jun 30		Mar 31
	2020		2019		2019		2019		2019
Ending Balances
Investments	$	3,141,440	$	2,867,378	$	2,705,610	$	2,853,358	$	2,748,249
Loans, net of unearned income		17,077,403		16,837,526		16,686,866		16,368,458		16,262,633
Total assets		22,929,859		21,886,040		21,703,618		21,308,670		20,974,649
Deposits		17,365,026		17,393,913		17,342,717		16,388,895		16,377,978
Shareholders' equity		2,285,748		2,342,176		2,324,016		2,308,798		2,301,019
Average Balances
Investments	$	3,071,828	$	2,830,999	$	2,829,672	$	2,790,392	$	2,699,130
Loans, net of unearned income		16,860,067		16,768,057		16,436,507		16,316,076		16,194,375
Total assets		22,252,099		21,812,438		21,457,800		21,057,030		20,690,365
Deposits		17,121,427		17,449,565		16,950,667		16,375,456		16,275,633
Shareholders' equity		2,337,016		2,341,397		2,315,585		2,301,258		2,265,097
Income Statement
Net interest income	$	160,746	$	159,270	$	161,260	$	164,544	$	163,315
Provision for credit losses		44,030		20,530		2,170		5,025		5,100
Non-interest income		54,644		55,281		59,813		54,315		46,751
Non-interest expense		142,552		138,974		146,770		144,168		137,824
Income before taxes		28,808		55,047		72,133		69,666		67,142
Net income		26,047		47,789		62,108		59,779		56,663
Pre-provision net revenue^(1)		74,374		77,224		76,741		76,114		73,775
Per Share
Net income (basic)	$	0.16	$	0.29	$	0.38	$	0.36	$	0.33
Net income (diluted)	$	0.16	$	0.29	$	0.37	$	0.35	$	0.33
Cash dividends	$	0.13	$	0.17	$	0.13	$	0.13	$	0.13
Tangible common equity^(1)	$	10.84	$	11.00	$	10.91	$	10.63	$	10.39
Weighted average shares (basic)		163,475		164,135		165,324		168,343		169,884
Weighted average shares (diluted)		164,417		165,039		166,126		169,168		170,909
Asset Quality^(2)
Net charge-offs (recoveries) to average loans (annualized)		0.26%		0.65%		0.15%		-0.04%		0.10%
Non-performing loans to total loans		0.82%		0.84%		0.81%		0.90%		0.85%
Non-performing assets to total assets		0.64%		0.68%		0.66%		0.73%		0.70%
ACL - loans ^(3) to loans outstanding		1.40%		0.97%		1.00%		1.04%		1.00%
ACL - loans ^(3) to non-performing loans		170%		116%		122%		115%		117%
Non-performing assets to tangible shareholders' equity and ACL - loans ^(1)(3)		7.37%		7.51%		7.35%		7.97%		7.66%
Profitability
Return on average assets		0.47%		0.87%		1.15%		1.14%		1.11%
Return on average shareholders' equity		4.48%		8.10%		10.64%		10.42%		10.15%
Return on average shareholders' equity (tangible)^(1)		5.84%		10.52%		14.03%		13.60%		13.28%
Net interest margin		3.21%		3.22%		3.31%		3.44%		3.49%
Efficiency ratio^(1)		64.5%		63.1%		63.6%		64.2%		63.9%
Capital Ratios
Tangible common equity ratio^(1)		7.8%		8.5%		8.5%		8.5%		8.6%
Tier 1 leverage ratio^(4)		7.9%		8.4%		8.5%		8.7%		8.9%
Common equity Tier 1 capital ratio^(4)		9.4%		9.7%		9.6%		10.0%		10.2%
Tier 1 capital ratio^(4)		9.4%		9.7%		9.6%		10.0%		10.2%
Total risk-based capital ratio^(4)		13.8%		11.8%		12.0%		12.4%		12.6%

^(1) Please 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) Regulatory capital ratios as of March 31, 2020 are preliminary and prior periods are actual.

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
																% Change from
	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31		Mar 31
	2020			2019			2019			2019			2019			2019		2019
ASSETS
Cash and due from banks	$	181,777		$	132,283		$	120,671		$	107,091		$	115,884		37.4	%	56.9	%
Other interest-earning assets		793,572			482,930			572,499			488,968			411,037		64.3	%	93.1	%
Loans held for sale		40,645			37,828			33,945			45,754			27,768		7.4	%	46.4	%
Investment securities		3,141,440			2,867,378			2,705,610			2,853,358			2,748,249		9.6	%	14.3	%
Loans, net of unearned income		17,077,403			16,837,526			16,686,866			16,368,458			16,262,633		1.4	%	5.0	%
ACL - loans, net of unearned income^(1)		(238,508	)		(163,622	)		(166,135	)		(170,233	)		(162,109	)	45.8	%	47.1	%
Net loans		16,838,895			16,673,904			16,520,731			16,198,225			16,100,524		1.0	%	4.6	%
Premises and equipment		236,908			240,046			237,344			243,300			239,004		(1.3	%)	(0.9	%)
Accrued interest receivable		59,365			60,898			60,447			62,984			62,207		(2.5	%)	(4.6	%)
Goodwill and intangible assets		535,171			535,303			534,178			535,249			535,356		(0.0	%)	(0.0	%)
Other assets		1,102,086			855,470			918,193			773,741			734,620		28.8	%	50.0	%
Total Assets	$	22,929,859		$	21,886,040		$	21,703,618		$	21,308,670		$	20,974,649		4.8	%	9.3	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits	$	17,365,026		$	17,393,913		$	17,342,717		$	16,388,895		$	16,377,978		(0.2	%)	6.0	%
Short-term borrowings		1,386,808			883,241			832,860			1,188,390			829,016		57.0	%	67.3	%
Other liabilities		513,811			384,941			477,311			435,171			401,324		33.5	%	28.0	%
FHLB advances and long-term debt		1,378,466			881,769			726,714			987,416			1,065,312		56.3	%	29.4	%
Total Liabilities		20,644,111			19,543,864			19,379,602			18,999,872			18,673,630		5.6	%	10.6	%
Shareholders' equity		2,285,748			2,342,176			2,324,016			2,308,798			2,301,019		(2.4	%)	(0.7	%)
Total Liabilities and Shareholders' Equity	$	22,929,859		$	21,886,040		$	21,703,618		$	21,308,670		$	20,974,649		4.8	%	9.3	%
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage	$	6,895,069		$	6,700,776		$	6,604,634		$	6,497,973		$	6,428,688		2.9	%	7.3	%
Commercial and industrial		4,451,239			4,446,701			4,494,496			4,365,248			4,429,538		0.1	%	0.5	%
Real estate - residential mortgage		2,718,290			2,641,465			2,570,793			2,451,966			2,313,908		2.9	%	17.5	%
Real estate - home equity		1,292,677			1,314,944			1,346,115			1,386,974			1,413,500		(1.7	%)	(8.5	%)
Real estate - construction		947,768			971,079			913,644			922,547			953,087		(2.4	%)	(0.6	%)
Consumer		468,172			463,164			464,213			452,874			433,545		1.1	%	8.0	%
Equipment lease financing and other		304,188			299,397			292,971			290,876			290,367		1.6	%	4.8	%
Total Loans, net of unearned income	$	17,077,403		$	16,837,526		$	16,686,866		$	16,368,458		$	16,262,633		1.4	%	5.0	%
Deposits, by type:
Noninterest-bearing demand	$	4,531,872		$	4,453,324		$	4,240,478		$	4,226,404		$	4,255,043		1.8	%	6.5	%
Interest-bearing demand		4,724,520			4,720,188			4,771,109			4,083,615			4,207,442		0.1	%	12.3	%
Savings and money market accounts		5,092,865			5,153,941			5,094,387			4,938,998			4,907,346		(1.2	%)	3.8	%
Total demand and savings		14,349,257			14,327,453			14,105,974			13,249,017			13,369,831		0.2	%	7.3	%
Brokered deposits		313,337			264,531			256,870			246,116			251,395		18.4	%	24.6	%
Time deposits		2,702,432			2,801,929			2,979,873			2,893,762			2,756,752		(3.6	%)	(2.0	%)
Total Deposits	$	17,365,026		$	17,393,913		$	17,342,717		$	16,388,895		$	16,377,978		(0.2	%)	6.0	%
Short-term borrowings, by type:
Customer repurchase agreements	$	52,919		$	56,707		$	58,853		$	56,496		$	54,440		(6.7	%)	(2.8	%)
Customer short-term promissory notes		408,889			326,534			279,007			281,894			299,576		25.2	%	36.5	%
Short-term FHLB advances		725,000			500,000			475,000			650,000			475,000		45.0	%	52.6	%
Federal funds purchased		200,000			-			20,000			200,000			-		N/M		N/M
Total Short-term Borrowings	$	1,386,808		$	883,241		$	832,860		$	1,188,390		$	829,016		57.0	%	67.3	%

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.

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands
	Three Months Ended										% Change from
	Mar 31		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31		Mar 31
	2020		2019		2019		2019		2019		2019		2019
Interest Income:
Interest income	$	199,378	$	202,159	$	208,414	$	210,034	$	204,700	(1.4	%)	(2.6	%)
Interest expense		38,632		42,889		47,153		45,490		41,385	(9.9	%)	(6.7	%)
Net Interest Income		160,746		159,270		161,260		164,544		163,315	0.9	%	(1.6	%)
Provision for credit losses		44,030		20,530		2,170		5,025		5,100	114.5	%	N/M
Net Interest Income after Provision		116,716		138,740		159,090		159,519		158,215	(15.9	%)	(26.2	%)
Non-Interest Income:
Wealth management		15,055		14,419		13,867		14,153		13,239	4.4	%	13.7	%
Mortgage banking		6,234		5,076		6,658		6,593		4,772	22.8	%	30.6	%
Consumer banking:
Card		4,685		4,991		5,791		5,047		4,686	(6.1	%)	(0.0	%)
Overdraft		4,058		4,750		4,682		4,413		4,104	(14.6	%)	(1.1	%)
Other consumer banking		2,496		2,688		2,860		2,907		2,587	(7.1	%)	(3.5	%)
Total consumer banking		11,239		12,429		13,333		12,367		11,377	(9.6	%)	(1.2	%)
Commercial banking:
Merchant and card		5,624		5,841		6,166		6,512		5,558	(3.7	%)	1.2	%
Cash management		4,742		4,697		4,696		4,638		4,361	1.0	%	8.7	%
Capital markets		5,075		5,939		4,448		4,053		2,515	(14.5	%)	101.8	%
Other commercial banking		2,978		3,664		3,478		3,815		2,816	(18.7	%)	5.8	%
Total commercial banking		18,419		20,140		18,788		19,017		15,250	(8.5	%)	20.8	%
Other		3,651		3,217		2,675		2,009		2,048	13.5	%	78.3	%
Non-Interest Income before Investment Securities Gains		54,598		55,281		55,321		54,139		46,686	(1.2	%)	16.9	%
Investment securities gains, net		46		-		4,492		176		65	N/M		(29.2	%)
Total Non-Interest Income		54,644		55,281		59,813		54,315		46,751	(1.2	%)	16.9	%
Non-Interest Expense:
Salaries and employee benefits		80,228		76,975		78,211		78,991		77,757	4.2	%	3.2	%
Net occupancy		13,486		13,080		12,368		14,469		12,909	3.1	%	4.5	%
Data processing and software		11,645		11,468		11,590		11,268		10,353	1.5	%	12.5	%
Other outside services		7,881		8,215		12,163		11,259		8,352	(4.1	%)	(5.6	%)
Professional fees		4,202		2,873		3,331		2,970		3,960	46.3	%	6.1	%
Equipment		3,418		3,475		3,459		3,299		3,342	(1.6	%)	2.3	%
FDIC insurance		2,808		2,177		239		2,755		2,609	29.0	%	7.6	%
Marketing		1,579		1,503		3,322		2,863		2,160	5.1	%	(26.9	%)
Amortization of tax credit investments		1,450		1,505		1,533		1,492		1,491	(3.6	%)	(2.7	%)
Intangible amortization		132		142		1,071		107		107	(6.9	%)	23.5	%
Prepayment penalty on FHLB advances		-		-		4,326		-		-	-		-
Other		15,723		17,561		15,157		14,695		14,784	(10.5	%)	6.3	%
Total Non-Interest Expense		142,552		138,974		146,770		144,168		137,824	2.6	%	3.4	%
Income before Income Taxes		28,808		55,047		72,133		69,666		67,142	(47.7	%)	(57.1	%)
Income tax expense		2,761		7,258		10,025		9,887		10,479	(62.0	%)	(73.7	%)
Net Income	$	26,047	$	47,789	$	62,108	$	59,779	$	56,663	(45.5	%)	(54.0	%)
PER SHARE:
Net income:
Basic	$	0.16	$	0.29	$	0.38	$	0.36	$	0.33	(44.8	%)	(51.5	%)
Diluted		0.16		0.29		0.37		0.35		0.33	(44.8	%)	(51.5	%)
Cash dividends		0.13		0.17		0.13		0.13		0.13	(23.5	%)	-
Weighted average shares (basic)		163,475		164,135		165,324		168,343		169,884	(0.4	%)	(3.8	%)
Weighted average shares (diluted)		164,417		165,039		166,126		169,168		170,909	(0.4	%)	(3.8	%)
N/M - not meaningful

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
	Three Months Ended
	March 31, 2020								December 31, 2019								March 31, 2019
	Average						Yield/		Average						Yield/		Average						Yield/
	Balance			Interest (1)			Rate		Balance			Interest (1)			Rate		Balance			Interest (1)			Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income	$	16,860,067		$	177,496		4.23	%	$	16,768,057		$	182,024		4.31	%	$	16,194,375		$	186,122		4.65	%
Taxable investment securities		2,284,457			16,294		2.85	%		2,198,252			15,621		2.84	%		2,285,724			15,435		2.70	%
Tax-exempt investment securities		720,223			5,960		3.29	%		594,487			5,058		3.38	%		444,132			4,150		3.71	%
Total Investment Securities		3,004,680			22,254		2.96	%		2,792,739			20,679		2.96	%		2,729,856			19,585		2.87	%
Loans held for sale		27,178			320		4.71	%		30,062			295		3.93	%		16,434			240		5.85	%
Other interest-earning assets		602,270			2,532		1.69	%		492,560			2,370		1.92	%		366,175			2,002		2.20	%
Total Interest-earning Assets		20,494,195			202,602		3.97	%		20,083,418			205,368		4.07	%		19,306,840			207,949		4.35	%
Noninterest-earning assets:
Cash and due from banks		138,248								128,417								110,693
Premises and equipment		239,619								239,294								237,124
Other assets		1,590,666								1,528,758								1,197,034
Less: ACL - loans^(2)		(210,629	)							(167,449	)							(161,326	)
Total Assets	$	22,252,099							$	21,812,438							$	20,690,365
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits	$	4,649,905		$	5,643		0.49	%	$	4,699,040		$	8,494		0.72	%	$	4,153,984		$	7,519		0.73	%
Savings deposits		5,127,662			7,110		0.56	%		5,205,260			10,253		0.78	%		4,912,856			9,962		0.82	%
Brokered deposits		275,359			1,073		1.57	%		261,689			1,279		1.94	%		220,115			1,382		2.55	%
Time deposits		2,761,474			12,614		1.84	%		2,959,008			13,775		1.86	%		2,765,803			10,826		1.59	%
Total Interest-bearing Deposits		12,814,400			26,440		0.83	%		13,124,997			33,801		1.02	%		12,052,758			29,689		1.00	%
Short-term borrowings		1,303,047			4,073		1.25	%		717,811			2,343		1.29	%		820,054			3,582		1.76	%
FHLB advances and long-term debt		1,063,214			8,119		3.06	%		875,802			6,745		3.07	%		1,002,463			8,114		3.26	%
Total Interest-bearing Liabilities		15,180,661			38,632		1.02	%		14,718,610			42,889		1.16	%		13,875,275			41,385		1.21	%
Noninterest-bearing liabilities:
Demand deposits		4,307,027								4,324,568								4,222,875
Total Deposits		17,121,427								17,449,565								16,275,633
Other		427,395								427,863								327,118
Total Liabilities		19,915,083								19,471,041								18,425,268
Total Interest-bearing liabilities and non interest-bearing deposits ("Cost of Funds")		19,487,688					0.80	%		19,043,178					0.89	%		18,098,150					0.93	%
Shareholders' equity		2,337,016								2,341,397								2,265,097
Total Liabilities and Shareholders' Equity	$	22,252,099							$	21,812,438							$	20,690,365
Net interest income/net interest margin (fully taxable equivalent)					163,970		3.21	%					162,479		3.22	%					166,564		3.49	%
Tax equivalent adjustment					(3,224	)							(3,209	)							(3,249	)
Net interest income				$	160,746							$	159,270							$	163,315

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
	Three Months Ended										% Change from
	Mar 31		Dec 31		Sep 30		Dec 31		Mar 31		Dec 31		Mar 31
	2020		2019		2019		2019		2019		2019		2019
Loans, by type:
Real estate - commercial mortgage	$	6,746,766	$	6,561,029	$	6,489,456	$	6,424,213	$	6,378,145	2.8	%	5.8	%
Commercial and industrial		4,446,750		4,574,047		4,414,992		4,440,860		4,462,609	(2.8	%)	(0.4	%)
Real estate - residential mortgage		2,670,019		2,606,136		2,512,899		2,366,685		2,276,611	2.5	%	17.3	%
Real estate - home equity		1,300,132		1,331,088		1,364,161		1,404,141		1,433,574	(2.3	%)	(9.3	%)
Real estate - construction		929,529		934,556		905,060		943,080		930,246	(0.5	%)	(0.1	%)
Consumer		466,415		464,606		457,524		445,666		424,480	0.4	%	9.9	%
Equipment lease financing and other		300,457		296,595		292,415		291,431		288,710	1.3	%	4.1	%
Total Loans, net of unearned income	$	16,860,067	$	16,768,057	$	16,436,507	$	16,316,076	$	16,194,375	0.5	%	4.1	%
Deposits, by type:
Noninterest-bearing demand	$	4,307,027	$	4,324,568	$	4,247,820	$	4,200,810	$	4,222,875	(0.4	%)	2.0	%
Interest-bearing demand		4,649,905		4,699,040		4,448,112		4,186,280		4,153,984	(1.0	%)	11.9	%
Savings and money market accounts		5,127,662		5,205,260		5,026,316		4,925,788		4,912,856	(1.5	%)	4.4	%
Total demand and savings		14,084,594		14,228,868		13,722,248		13,312,878		13,289,715	(1.0	%)	6.0	%
Brokered deposits		275,359		261,689		253,426		246,154		220,115	5.2	%	25.1	%
Time deposits		2,761,474		2,959,008		2,974,993		2,816,425		2,765,803	(6.7	%)	(0.2	%)
Total Deposits	$	17,121,427	$	17,449,565	$	16,950,667	$	16,375,457	$	16,275,633	(1.9	%)	5.2	%
Short-term borrowings, by type:
Customer repurchase agreements	$	52,399	$	59,363	$	61,230	$	56,171	$	56,707	(11.7	%)	(7.6	%)
Customer short-term promissory notes		375,841		318,166		271,663		288,696		312,092	18.1	%	20.4	%
Federal funds purchased		186,868		91,467		101,022		181,769		157,122	104.3	%	18.9	%
Short-term FHLB advances and other borrowings		687,939		248,815		485,782		414,868		294,133	176.5	%	133.9	%
Total Short-term Borrowings	$	1,303,047	$	717,811	$	919,697	$	941,504	$	820,054	81.5	%	58.9	%

(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
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
	Three Months Ended
	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
	2020			2019			2019			2019			2019
Allowance for credit losses related to Loans, net of unearned income
Balance at beginning of period	$	163,620		$	166,135		$	170,233		$	162,109		$	160,537
Impact of adopting CECL		45,724			-			-			-			-
Loans charged off:
Commercial and industrial		(10,899	)		(30,547	)		(7,181	)		(1,895	)		(2,787	)
Consumer and home equity		(1,529	)		(1,416	)		(1,375	)		(1,001	)		(902	)
Real estate - commercial mortgage		(855	)		(68	)		(394	)		(230	)		(1,145	)
Equipment lease financing and other		(533	)		(727	)		(600	)		(448	)		(785	)
Real estate - residential mortgage		(187	)		(223	)		(533	)		(134	)		(655	)
Real estate - construction		-			-			(45	)		(3	)		(95	)
Total loans charged off		(14,003	)		(32,981	)		(10,128	)		(3,711	)		(6,369	)
Recoveries of loans previously charged off:
Commercial and industrial		1,734			2,487			2,311			2,680			1,243
Consumer and home equity		646			437			348			802			407
Real estate - commercial mortgage		244			1,453			444			169			136
Equipment lease financing and other		108			182			107			148			229
Real estate - residential mortgage		85			206			440			211			132
Real estate - construction		70			1,098			164			1,245			84
Recoveries of loans previously charged off		2,887			5,863			3,814			5,255			2,231
Net loans charged off (recoveries)		(11,116	)		(27,118	)		(6,314	)		1,544			(4,138	)
Provision for credit losses		40,280			24,603			2,216			6,580			5,710
Balance at end of period	$	238,508		$	163,620		$	166,135		$	170,233		$	162,109
Net charge-offs (recoveries) to average loans (annualized)		0.26	%		0.65	%		0.15	%		(0.04	%)		0.10	%
Allowance credit losses related to OBS Credit Exposures^(1)
Balance at beginning of period	$	2,588		$	6,662		$	6,708		$	8,263		$	8,873
Impact of adopting CECL		12,625			-			-			-			-
Provision for credit losses		3,750			(4,074	)		(46	)		(1,555	)		(610	)
Balance at end of period	$	18,963		$	2,588		$	6,662		$	6,708		$	8,263
NON-PERFORMING ASSETS:
Non-accrual loans	$	120,345		$	125,098		$	124,287		$	133,118		$	127,141
Loans 90 days past due and accruing		19,593			16,057			11,689			14,598			11,540
Total non-performing loans		139,938			141,155			135,976			147,716			138,681
Other real estate owned		6,593			6,831			7,706			7,241			9,012
Total non-performing assets	$	146,531		$	147,986		$	143,682		$	154,957		$	147,693
NON-PERFORMING LOANS, BY TYPE:
Commercial and industrial	$	41,318		$	49,491		$	37,126		$	47,260		$	50,148
Real estate - commercial mortgage		36,536			37,279			45,710			43,850			29,817
Real estate - residential mortgage		25,832			22,411			20,150			21,659			22,299
Consumer and home equity		11,226			11,026			11,012			12,378			10,770
Real estate - construction		4,380			4,306			4,312			4,632			7,039
Leasing		20,646			16,642			17,666			17,937			18,608
Total non-performing loans	$	139,938		$	141,155		$	135,976		$	147,716		$	138,681

(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
	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
	2020			2019			2019			2019			2019
Shareholders' equity (tangible), per share
Shareholders' equity	$	2,285,748		$	2,342,176		$	2,324,016		$	2,308,798		$	2,301,019
Less: Goodwill and intangible assets		(535,171	)		(535,303	)		(534,178	)		(535,249	)		(535,356	)
Tangible shareholders' equity (numerator)	$	1,750,577		$	1,806,873		$	1,789,838		$	1,773,549		$	1,765,663
Shares outstanding, end of period (denominator)		161,435			164,218			164,036			166,903			169,923
Shareholders' equity (tangible), per share	$	10.84		$	11.00		$	10.91		$	10.63		$	10.39
Return on average shareholders' equity (tangible)
Net income	$	26,047		$	47,789		$	62,108		$	59,779		$	56,663
Plus: Intangible amortization, net of tax		104			112			846			85			85
(Numerator)	$	26,152		$	47,901		$	62,954		$	59,865		$	56,748
Average shareholders' equity	$	2,337,016		$	2,341,397		$	2,315,585		$	2,301,258		$	2,265,097
Less: Goodwill and intangible assets		(535,235	)		(534,190	)		(535,184	)		(535,301	)		(531,767	)
Average tangible shareholders' equity (denominator)	$	1,801,781		$	1,807,207		$	1,780,401		$	1,765,957		$	1,733,330
Return on average shareholders' equity (tangible), annualized		5.84	%		10.52	%		14.03	%		13.60	%		13.28	%
Tangible Common Equity to Tangible Assets (TCE Ratio)
Shareholders' equity	$	2,285,748		$	2,342,176		$	2,324,016		$	2,308,798		$	2,301,019
Less: Goodwill and intangible assets		(535,171	)		(535,303	)		(534,178	)		(535,249	)		(535,356	)
Tangible shareholders' equity (numerator)	$	1,750,577		$	1,806,873		$	1,789,838		$	1,773,549		$	1,765,663
Total assets	$	22,929,859		$	21,886,040		$	21,703,618		$	21,308,670		$	20,974,649
Less: Goodwill and intangible assets		(535,171	)		(535,303	)		(534,178	)		(535,249	)		(535,356	)
Total tangible assets (denominator)	$	22,394,688		$	21,350,737		$	21,169,440		$	20,773,421		$	20,439,293
Tangible Common Equity to Tangible Assets		7.82	%		8.46	%		8.45	%		8.54	%		8.64	%
Efficiency ratio
Non-interest expense	$	142,552		$	138,974		$	146,770		$	144,168		$	137,824
Less: Intangible amortization		(132	)		(142	)		(1,071	)		(107	)		(107	)
Less: Amortization of tax credit investments		(1,450	)		(1,505	)		(1,533	)		(1,492	)		(1,491	)
Less: Prepayment penalty on FHLB advances		-			-			(4,326	)		-			-
Non-interest expense (numerator)	$	140,970		$	137,327		$	139,840		$	142,569		$	136,226
Net interest income (fully taxable equivalent)	$	163,970		$	162,479		$	164,517		$	167,794		$	166,564
Plus: Total Non-interest income		54,644			55,281			59,813			54,315			46,751
Less: Investment securities gains		(46	)		-			(4,492	)		(176	)		(65	)
Net interest income (denominator)	$	218,568		$	217,760		$	219,838		$	221,933		$	213,250
Efficiency ratio		64.5	%		63.1	%		63.6	%		64.2	%		63.9	%
Non-performing assets to tangible shareholders' equity and ACL - Loans^(1)
Non-performing assets (numerator)	$	146,531		$	147,986		$	143,682		$	154,957		$	147,693
Tangible shareholders' equity	$	1,750,577		$	1,806,873		$	1,789,838		$	1,773,549		$	1,765,663
Plus: ACL - loans		238,508			163,620			166,135			170,233			162,109
Tangible shareholders' equity and ACL - loans (denominator)	$	1,989,085		$	1,970,493		$	1,955,973		$	1,943,782		$	1,927,772
Non-performing assets to tangible shareholders' equity and ACL - loans		7.37	%		7.51	%		7.35	%		7.97	%		7.66	%
Pre-provision net revenue
Net interest income	$	160,746		$	159,270		$	161,260		$	164,544		$	163,315
Non-interest income		54,644			55,281			59,813			54,315			46,751
Less: Investment securities gains		(46	)		-			(4,492	)		(176	)		(65	)
Total revenue	$	215,344		$	214,551		$	216,581		$	218,683		$	210,001
Non-interest expense	$	142,552		$	138,974		$	146,770		$	144,168		$	137,824
Less: Prepayment penalty on FHLB advances		-			-			(4,326	)		-			-
Less: Amortization of tax credit investments		(1,450	)		(1,505	)		(1,533	)		(1,492	)		(1,491	)
Less: Intangible amortization		(132	)		(142	)		(1,071	)		(107	)		(107	)
Total non-interest expense	$	140,970		$	137,327		$	139,840		$	142,569		$	136,226
Pre-provision net revenue	$	74,374		$	77,224		$	76,741		$	76,114		$	73,775

(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.