Fulton Financial Corporation Announces 2025 Fourth Quarter and Full-Year Results

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FULTON FINANCIAL CORPORATION

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

 

(dollars in thousands, except per share and share data)

Explanatory note:

This press release contains supplemental financial information, as detailed below, that has been derived by methods other than GAAP. The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation’s industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation’s results. Investors should recognize that the Corporation’s presentation of these non-GAAP financial measures might not be comparable to similarly titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:

Three months ended

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

2025

2025

2025

2025

2024

Operating net income available to common shareholders

Net income available to common shareholders

$ 96,408

$ 97,892

$ 96,636

$ 90,425

$ 66,058

Less: Other (1)

(4,989)

(738)

(9)

(122)

(269)

Plus: Gain on acquisition, net of tax

2,689

Plus: Core deposit intangible amortization

5,255

5,255

5,346

6,155

6,155

Plus: Acquisition-related expense

802

380

9,637

Plus: FDIC special assessment

(95)

Plus: FultonFirst implementation and asset disposals

2,795

(207)

(270)

(47)

10,001

Less: Tax impact of adjustments

(791)

(905)

(1,064)

(1,337)

(5,360)

Operating net income available to common shareholders (numerator)

$ 99,385

$ 101,297

$ 100,639

$ 95,454

$ 88,911

Weighted average shares (diluted) (denominator)

182,197

183,349

183,813

184,077

183,867

Operating net income available to common shareholders, per share (diluted)

$ 0.55

$ 0.55

$ 0.55

$ 0.52

$ 0.48

Common shareholders’ equity (tangible), per share

Shareholders’ equity

$ 3,490,447

$ 3,413,598

$ 3,329,246

$ 3,274,321

$ 3,197,325

Less: Preferred stock

(192,878)

(192,878)

(192,878)

(192,878)

(192,878)

Less: Goodwill and intangible assets

(612,996)

(618,361)

(623,729)

(629,189)

(635,458)

Tangible common shareholders’ equity (numerator)

$ 2,684,573

$ 2,602,359

$ 2,512,639

$ 2,452,254

$ 2,368,989

Shares outstanding, end of period (denominator)

179,895

180,865

182,379

182,204

182,089

Common shareholders’ equity (tangible), per share

$ 14.92

$ 14.39

$ 13.78

$ 13.46

$ 13.01

(1) Includes loan recovery adjustments of $5.0 million and $0.6 million in the fourth quarter of 2025 and the third quarter of 2025, respectively, reflected in the provision for credit losses related to a loan acquired in the Acquisition.

Three months ended

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

2025

2025

2025

2025

2024

Operating return on average assets

Net income

$ 98,970

$ 100,454

$ 99,198

$ 92,987

$ 68,620

Less: Other (1)

(4,989)

(738)

(9)

(122)

(269)

Less: Gain on acquisition, net of tax

2,689

Plus: Core deposit intangible amortization

5,255

5,255

5,346

6,155

6,155

Plus: Acquisition-related expense

802

380

9,637

Plus: FDIC special assessment

(95)

Plus: FultonFirst implementation and asset disposals

2,795

(207)

(270)

(47)

10,001

Less: Tax impact of adjustments

(791)

(905)

(1,064)

(1,337)

(5,360)

Operating net income (numerator)

$ 101,947

$ 103,859

$ 103,201

$ 98,016

$ 91,473

Total average assets

$ 32,013,163

$ 31,924,038

$ 31,901,574

$ 31,971,601

$ 32,098,852

Less: Average net core deposit intangible

(60,726)

(65,999)

(71,282)

(77,039)

(83,173)

Total operating average assets (denominator)

$ 31,952,437

$ 31,858,039

$ 31,830,292

$ 31,894,562

$ 32,015,679

Operating return on average assets(2)

1.27 %

1.29 %

1.30 %

1.25 %

1.14 %

Operating return on average common shareholders’ equity (tangible)

Net income available to common shareholders

$ 96,408

$ 97,892

$ 96,636

$ 90,425

$ 66,058

Less: Other (1)

(4,989)

(738)

(9)

(122)

(269)

Less: Gain on acquisition, net of tax

2,689

Plus: Intangible amortization

5,365

5,368

5,460

6,269

6,282

Plus: Acquisition-related expense

802

380

9,637

Plus: FDIC special assessment

(95)

Plus: FultonFirst implementation and asset disposals

2,795

(207)

(270)

(47)

10,001

Less: Tax impact of adjustments

(814)

(929)

(1,088)

(1,361)

(5,387)

Adjusted net income available to common shareholders (numerator)

$ 99,472

$ 101,386

$ 100,729

$ 95,544

$ 89,011

Average shareholders’ equity

$ 3,464,539

$ 3,361,368

$ 3,304,015

$ 3,254,125

$ 3,219,026

Less: Average preferred stock

(192,878)

(192,878)

(192,878)

(192,878)

(192,878)

Less: Average goodwill and intangible assets

(615,600)

(620,986)

(626,383)

(632,254)

(638,507)

Average tangible common shareholders’ equity (denominator)

$ 2,656,061

$ 2,547,504

$ 2,484,754

$ 2,428,993

$ 2,387,641

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

14.86 %

15.79 %

16.26 %

15.95 %

14.83 %

Tangible common equity to tangible assets (TCE Ratio)

Shareholders’ equity

$ 3,490,447

$ 3,413,598

$ 3,329,246

$ 3,274,321

$ 3,197,325

Less: Preferred stock

(192,878)

(192,878)

(192,878)

(192,878)

(192,878)

Less: Goodwill and intangible assets

(612,996)

(618,361)

(623,729)

(629,189)

(635,458)

Tangible common shareholders’ equity (numerator)

$ 2,684,573

$ 2,602,359

$ 2,512,639

$ 2,452,254

$ 2,368,989

Total assets

$ 32,118,400

$ 31,995,086

$ 32,040,448

$ 32,132,028

$ 32,071,810

Less: Goodwill and intangible assets

(612,996)

(618,361)

(623,729)

(629,189)

(635,458)

Total tangible assets (denominator)

$ 31,505,404

$ 31,376,725

$ 31,416,719

$ 31,502,839

$ 31,436,352

Tangible common equity to tangible assets

8.52 %

8.29 %

8.00 %

7.78 %

7.54 %

(1) Results are annualized.

(2) Includes loan recovery adjustments of $5.0 million and $0.6 million in the fourth quarter of 2025 and the third quarter of 2025, respectively, reflected in the provision for credit losses related to a loan acquired in the Acquisition.

Three months ended

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

2025

2025

2025

2025

2024

Efficiency ratio

Non-interest expense

$ 212,986

$ 196,574

$ 192,811

$ 189,460

$ 216,615

Less: Acquisition-related expense

(802)

(380)

(9,637)

Less: FDIC special assessment

95

Less: FultonFirst implementation and asset disposals

(2,795)

207

270

47

(10,001)

Less: Intangible amortization

(5,365)

(5,368)

(5,460)

(6,269)

(6,282)

Operating non-interest expense (numerator)

$ 204,119

$ 191,413

$ 187,621

$ 182,858

$ 190,695

Net interest income

$ 266,042

$ 264,198

$ 254,921

$ 251,187

$ 253,659

Tax equivalent adjustment

4,416

4,436

4,389

4,340

4,343

Plus: Total non-interest income

69,980

70,407

69,148

67,232

65,924

Less: Other revenue

11

(138)

(9)

(122)

(269)

Less: Gain on acquisition, net of tax

2,689

Plus: Investment securities (gains) losses, net

2

Total revenue (denominator)

$ 340,449

$ 338,903

$ 328,449

$ 322,639

$ 326,346

Efficiency ratio

60.0 %

56.5 %

57.1 %

56.7 %

58.4 %

Operating non-interest expense to total average assets

Non-interest expense

$ 212,986

$ 196,574

$ 192,811

$ 189,460

$ 216,615

Less: Intangible amortization

(5,365)

(5,368)

(5,460)

(6,269)

(6,282)

Less: Acquisition-related expense

(802)

(380)

(9,637)

Less: FDIC special assessment

95

Less: FultonFirst implementation and asset disposals

(2,795)

207

270

47

(10,001)

Operating non-interest expense (numerator)

$ 204,119

$ 191,413

$ 187,621

$ 182,858

$ 190,695

Total average assets (denominator)

$ 32,013,163

$ 31,924,038

$ 31,901,574

$ 31,971,601

$ 32,098,852

Operating non-interest expenses to total average assets(1)

2.53 %

2.38 %

2.36 %

2.32 %

2.36 %

(1) Results are annualized.

Year Ended

Dec 31

Dec 31

2025

2024

Operating net income available to common shareholders

Net income available to common shareholders

$ 381,361

$ 278,495

Less: Other (1)

(5,858)

(1,805)

Plus Gain on acquisition, net of tax

(36,996)

Plus: Loss on securities restructuring

20,282

Plus: Core deposit intangible amortization

22,010

17,307

Plus: Acquisition-related expense

1,182

37,635

Plus: CECL Day 1 Provision

23,444

Less: Gain on sale-leaseback

(20,266)

Plus: FDIC special assessment

(95)

940

Plus: FultonFirst implementation and asset disposals

2,271

32,038

Less: Tax impact of adjustments

(4,097)

(23,011)

Operating net income available to common shareholders (numerator)

$ 396,774

$ 328,063

Weighted average shares (diluted) (denominator)

183,289

177,223

Operating net income available to common shareholders, per share (diluted)

$ 2.16

$ 1.85

(1) Includes a loan recovery adjustment of $5.6 million in 2025, reflected in the provision for credit losses related to a loan acquired in the Acquisition.