FULTON FINANCIAL CORP

Three months ended March 31, 2026 compared to the three months ended March 31, 2025

Net Interest Income

FTE net interest income was $266.3 million for the three months ended March 31, 2026, an increase of $10.8 million, compared to $255.5 million for the same period in 2025. For the three months ended March 31, 2026, NIM increased to 3.58%, or 15 bps, compared to the same period in 2025. The Corporation manages the risk associated with changes in interest rates through the techniques described within Part 1, "Item 3. Quantitative and Qualitative Disclosures About Market Risk" in this Quarterly Report on Form 10-Q. The following table provides a comparative average balance sheet and net interest income analysis for the three months ended March 31, 2026 compared to the same period in 2025. Interest income and yields are presented on an FTE basis using a 21% federal tax rate as well as statutory interest expense disallowances. The discussion following this table is based on these taxable-equivalent amounts.

(1)Average balance includes non-performing loans and loan fees.

(2) Average balances include amortized historical cost for AFS investment securities; the related unrealized holding gains (losses) are included in other assets.

(3) ACL - loans relates to the ACL specifically for net loans and does not include the ACL for OBS credit exposures, which is included in other liabilities.

The following table summarizes the changes in FTE interest income and interest expense resulting from changes in average balances (volume) and changes in yields and rates for the three months ended March 31, 2026 compared to the same period in 2025:

(1) Average balance includes non-performing loans.

Note: Changes which are partially attributable to both volume and rate are allocated to the volume and rate components presented above based on the percentage of direct changes that are attributable to each component.

Compared to the first quarter of 2025, FTE total interest income for the first quarter of 2026 decreased $9.7 million, or 2.4%, due to a $10.9 million decrease attributable to changes in yield, partially offset by a $1.3 million increase attributable to changes in volume. The decrease due to changes in yield was primarily due to a decline in interest rates on average net loans. The increase due to changes in volume was largely due to an increase in average net loans offset by a decrease in average investment securities and average other interest-earning assets.

The yield on average total interest-earning assets decreased 13 bps for the three months ended March 31, 2026 compared to the same period in 2025 primarily due to lower interest rates.

In the first quarter of 2026, interest expense decreased $20.5 million compared to the first quarter of 2025, primarily driven by a $19.0 million decrease attributable to changes in rate and a $1.5 million decrease attributable to changes in volume. The decrease in interest expense attributable to changes in rate was primarily due to lower interest rates. The decrease in interest expense attributable to changes in volume was driven by decreases in average borrowings and other interest-bearing liabilities, average time deposits and average brokered deposits, partially offset by an increase in average savings and money market deposits.

The rate on average total interest-bearing liabilities decreased 38 bps for the three months ended March 31, 2026 compared to the same period in 2025 primarily due to lower interest rates.

Average loans and FTE yields, by type, are summarized in the following table:

(1) Consists of equipment lease financing, overdrafts and net origination fees and costs.

During the first quarter of 2026, average net loans increased $218.8 million, or 0.9%, compared to the same period in 2025. The increase in average net loans was primarily due to a $328.7 million increase and a $275.4 million increase in average residential mortgage loans and average commercial mortgage loans, respectively, partially offset by a $370.1 million decrease in average construction loans. The increase in average commercial mortgage loans was in part due to a $207.7 million purchase of in-market loans during the quarter ended March 31, 2026, which primarily consisted of commercial mortgage loans.

The yield on total loans decreased 16 bps to 5.70% for the first quarter of 2026 compared to 5.86% for the same period in 2025.

Average deposits and interest rates, by type, are summarized in the following table:

Average total deposits increased $281.2 million, or 1.1%, in the first quarter of 2026 compared to the same period in 2025. The increase in average total deposits was primarily due to a $712.8 million increase and a $20.5 million increase in average savings and money market deposits and average interest-bearing demand deposits, respectively, partially offset by a $292.0 million decrease and a $112.1 million decrease in average noninterest-bearing demand deposits and average time deposits, respectively.

The cost of deposits decreased 25 bps to 1.78% in the first quarter of 2026 compared to 2.03% for the same period in 2025 primarily due to lower interest rates.

Average borrowings and other interest-bearing liabilities and interest rates, by type, are summarized in the following table:

(1) Includes repurchase agreements, short-term promissory notes, capital leases and collateral liabilities.

Average total borrowings and other interest-bearing liabilities decreased $395.8 million, or 22.6%, in the first quarter of 2026 compared to the same period in 2025. The decrease in average total borrowings and other interest-bearing liabilities was due to a $488.3 million decrease in average FHLB advances, partially offset by a $92.2 million increase in average other borrowings and interest-bearing liabilities.

Provision for Credit Losses

The provision for credit losses was $14.4 million for the three months ended March 31, 2026 resulting in a $367.5 million allowance for credit losses attributable to net loans, or 1.51% of total net loans as of March 31, 2026, compared to a provision for credit losses of $13.9 million for the same period in 2025, resulting in a $379.7 million allowance for credit losses attributable to net loans, or 1.59% of total net loans as of March 31, 2025.

Non-Interest Income

The following table presents the components of non-interest income:

Non-interest income for the three months ended March 31, 2026 increased $2.6 million, or 3.9%, compared to the same period in 2025. The increase in non-interest income was primarily due to a $2.7 million increase in wealth management revenues as a result of an increase in assets under management, a $1.2 million increase in commercial customer derivative fee income reflected in capital markets, and a $1.1 million increase in consumer banking income, partially offset by a $3.4 million decrease in income from equity method investments reflected in other non-interest income.

Non-Interest Expense

The following table presents the components of non-interest expense:

Non-interest expense for the three months ended March 31, 2026 increased $10.8 million, or 5.7%, compared to the same period in 2025. Excluding FultonFirst implementation and asset disposals and acquisition-related expenses, non-interest expense increased $7.0 million, or 3.7%. The increase in non-interest expense before FultonFirst implementation and asset disposals and acquisition-related expenses was primarily due to a $6.2 million increase in salaries and employee benefits expense driven by increases in base salaries and commissions expense and a $3.4 million increase in professional fees primarily due to a prior year recovery of previously incurred fees, partially offset by a $1.3 million decrease in FDIC insurance expense and a $0.9 million decrease in intangible amortization expense.

Income Taxes

Income tax expense for the three months ended March 31, 2026 was $22.4 million, a $0.3 million increase compared to the same period in 2025. The Corporation's ETR was 19.1% for the three months ended March 31, 2026 compared to 19.2% for the same period in 2025.

FINANCIAL CONDITION

The table below presents condensed consolidated ending balance sheets:

Investment Securities

The following table presents the carrying amount of investment securities:

Compared to December 31, 2025, total AFS investment securities at March 31, 2026 decreased $138.9 million, or 4.1%. The decrease in AFS investment securities at March 31, 2026 compared to December 31, 2025 was primarily due to decreases of $59.1 million, $28.7 million and $21.4 million in residential mortgage-backed securities, state and municipal securities and collateralized mortgage obligations, respectively.

Compared to December 31, 2025, total HTM investment securities at March 31, 2026 increased $167.2 million, or 11.7%. The increase in HTM investment securities at March 31, 2026 compared to December 31, 2025 was driven by the purchase of approximately $166.0 million of collateralized mortgage obligations during the quarter ended March 31, 2026.

Loans

The following table presents ending net loans outstanding by type:

(1) Includes unearned income of $41.3 million and $36.8 million as of March 31, 2026 and December 31, 2025, respectively.

During the three months ended March 31, 2026, net loans increased $121.5 million compared to December 31, 2025. The increase in net loans during the three months of 2026 was primarily due to a $164.4 million increase in commercial mortgage loans and a $65.3 million increase in residential mortgage loans, partially offset by a $93.8 million decrease in construction loans and a $45.0 million decrease in commercial and industrial loans. The Bank purchased $207.7 million of in-market loans during the quarter ended March 31, 2026, which consisted primarily of commercial mortgage loans.

The Corporation does not have a significant concentration of credit risk with any single borrower. As of March 31, 2026, approximately $10.9 billion, or 44.8%, of the loan portfolio was comprised of commercial mortgage loans and construction loans.

The Corporation has established lower total lending limits for certain types of commercial lending commitments and lower total lending limits based on the Corporation's internal risk rating of an individual borrower at the time the lending commitment is approved. The Corporation adheres to loan portfolio management practices, which include requiring an annual review of the majority of commercial loans. Additionally, management monitors the loan portfolio throughout the year taking into account, among other things, the size, complexity and risk of loans and individual borrowers. An independent loan review function assesses the portfolio for internal risk rating accuracy and loan servicing policy requirements. The Corporation consolidates risk migrations to identify emerging risks by industry and real estate property types, taking into consideration economic forecasts and industry trends. The Corporation takes a risk-based approach when reviewing a specific loan portfolio, such as the commercial office loan portfolio or multi-family loan portfolio. The Corporation reviews portfolio concentrations and adjusts the lending limits based on asset quality, economic forecasts and industry outlook.

The following table summarizes the industry concentrations within the commercial mortgage and the commercial and industrial loan portfolios:

(1) Includes commercial loans to borrowers engaged in the business of renting, leasing or managing real estate for others, selling and/or buying real estate for

others and appraising real estate.

(2) Includes commercial loans to borrowers engaged in the construction industry.

The commercial mortgage loan portfolio consists of 44.8% owner occupied commercial mortgage loans and 55.2% of non-owner occupied commercial mortgage loans as of March 31, 2026. The following table summarizes the non-owner occupied commercial mortgage loan portfolio outstanding balance and the percent to total net loans.

The following table summarizes the commercial mortgage office non-owner occupied loan portfolio outstanding balance, total commitment and LTV ratio by Metropolitan Statistical Area:

(1)Weighted average LTV as of origination.

(2)Philadelphia-Camden-Wilmington, PA-NJ-DE-MD.

(3)Washington-Arlington-Alexandria, DC-VA-MD-WV.

(4) Baltimore-Columbia-Towson, MD.

(5) New York-Newark-Jersey City, NY-NJ-PA.

The non-owner occupied commercial mortgage office loan portfolio table above excludes commercial construction loans secured by office property collateral with a total outstanding balance of $0.4 million and outstanding loan commitment of $4.1 million as of March 31, 2026.

The following table summarizes the non-owner occupied commercial mortgage multi-family loan portfolio outstanding balance, total commitment and LTV ratio by Metropolitan Statistical Area:

(1) Weighted average LTV as of origination.

(2)Philadelphia-Camden-Wilmington, PA-NJ-DE-MD.

(3) New York-Newark-Jersey City, NY-NJ-PA.

(4) Baltimore-Columbia-Towson, MD.

(5)Washington-Arlington-Alexandria, DC-VA-MD-WV.

The non-owner occupied commercial mortgage multi-family loan table above excludes commercial construction loans secured by multi-family property collateral with a total outstanding loan balance of $175.8 million and outstanding loan commitments of $348.8 million as of March 31, 2026.

The following table presents the changes in non-accrual loans for the three months ended March 31, 2026:

During the three months ended March 31, 2026, non-accrual loans decreased by approximately $11.8 million, or 7.7%, primarily due to $39.7 million in payments and $16.6 million in charge-offs, partially offset by $44.8 million in additions. During the three months ended March 31, 2026, non-accrual loans as a percentage of total net loans decreased to 0.59% compared to 0.64% as of December 31, 2025.

The following table presents non-performing assets for the periods shown below:

(1) Excludes $19.0 million and $19.1 million of residential mortgage properties for which formal foreclosure proceedings were in process as of March 31, 2026 and December 31, 2025, respectively.

Non-performing loans and leases as of March 31, 2026 were $175.9 million, a decrease of $7.9 million, or 4.3%, compared to $183.8 million as of December 31, 2025. The decrease in non-performing loans and leases during the first three months of 2026 was primarily due to payments and charge-offs, partially offset by additions. Non-performing loans and leases as a percentage of total net loans was 0.72% and 0.76% as of March 31, 2026 and December 31, 2025, respectively.

The Corporation's ability to identify potential problem loans in a timely manner is important to maintaining an adequate ACL. For commercial and industrial loans, commercial mortgage loans, commercial construction loans and leases and other loans, an internal risk rating process is used to monitor credit quality. The evaluation of credit risk for residential mortgages, home equity loans, construction loans to individuals and consumer loans is based on payment history through the monitoring of delinquency levels and trends.

Total internally risk-rated loans were $15.5 billion and $15.4 billion as of March 31, 2026 and December 31, 2025, respectively, of which $1.4 billion were criticized and classified loans at March 31, 2026 compared to $1.5 billion at December 31, 2025.

The following table presents criticized and classified loans, or those with internal risk ratings of special mention or substandard or lower for commercial mortgage loans, commercial and industrial loans, construction loans to commercial borrowers and leases and other loans by class segment:

(1) Considered "criticized" loans by banking regulators.

(2) Considered "classified" loans by banking regulators.

(3) Excludes residential real estate - construction.

Compared to December 31, 2025, total criticized and classified loans as of March 31, 2026 decreased $83.5 million driven by a $121.2 million decrease in special mention loans, partially offset by a $37.6 million increase in substandard or lower loans.

The Corporation accounts for the credit risk associated with lending activities through the ACL and the provision for credit losses.

The following table presents the activity in the ACL:

(1) These amounts are reflected in the provision for credit losses in the Consolidated Statements of Income.

(2) Provision for credit losses includes only the portion related to net loans.

(3) Reserve for OBS credit exposures is recorded within other liabilities on the Consolidated Balance Sheets.

The provision for credit losses for the portion related to net loans for the three months ended March 31, 2026 was $14.6 million compared to a provision of $13.1 million for the same period in 2025.

An initial allowance for credit losses on purchased loans of $3.4 million for the three months ended March 31, 2026 was recorded due to the $207.7 million in-market commercial loan portfolio purchase.

The ACL includes qualitative adjustments, as appropriate, intended to capture the impact of uncertainties not reflected in the quantitative models. See "Note 5 - Loans and Allowance for Credit Losses" of the Notes to Consolidated Financial Statements in Part I, "Item 1. Financial Statements" for additional details.

The following table summarizes the allocation of the ACL - loans:

(1) Ending ACL - loan portfolio segment balance as a percentage of total ACL - loans.

(2) Ending loan portfolio segment balances as a percentage of total net loans for the periods presented.

Deposits and Borrowings

The following table presents ending deposits by type:

During the three months ended March 31, 2026, total deposits increased by $178.9 million compared to December 31, 2025. The increase in total deposits was primarily due to a $362.4 million increase in savings and money market deposits and a $78.8 million increase in noninterest-bearing demand deposits, partially offset by a $146.5 million decrease in interest-bearing demand deposits and a $139.2 million decrease in brokered deposits.

Total uninsured deposits (excluding intra-Company deposits) were estimated to be $9.6 billion and $9.7 billion as of March 31, 2026 and December 31, 2025, respectively.

Time deposits of $250 thousand or more were $1.1 billion at March 31, 2026 and December 31, 2025.

The following table presents ending borrowings by type:

(1) Includes repurchase agreements, short-term promissory notes and capital leases.

During the three months ended March 31, 2026, total borrowings decreased $44.8 million, or 3.5%, compared to December 31, 2025. The decrease in total borrowings was primarily due to a $50.0 million decrease in FHLB advances, partially offset by a $5.1 million increase in other borrowings.

Shareholders' Equity

On December 16, 2025, the Corporation announced that its board of directors approved the 2026 Repurchase Program. The 2026 Repurchase Program will expire on January 31, 2027. Under the 2026 Repurchase Program, the Corporation is authorized to repurchase up to$150.0 million of shares of its common stock. Under this authorization, up to $25.0 million of the $150.0 million authorization may be used to repurchase the Corporation's preferred stock and outstanding subordinated notes. The 2026 Repurchase Program may be discontinued at any time.

During the three months ended March 31, 2026, 1,212,650 shares of the Corporation's common stock were repurchased under the 2026 Repurchase Program at a cost of $24.5 million or an average of $20.21 per share.

Regulatory Capital

The Corporation and its wholly owned subsidiary bank, Fulton Bank, are subject to the Capital Rules administered by banking regulators. Failure to meet minimum capital requirements can trigger certain actions by regulators that could have a material effect on the Corporation's financial statements.

The Capital Rules require the Corporation and Fulton Bank to:

•Meet a minimum Common Equity Tier 1 capital ratio of 4.50% of risk-weighted assets;

•Meet a minimum Tier 1 Leverage capital ratio of 4.00% of average assets;

•Meet a minimum Total capital ratio of 8.00% of risk-weighted assets and a minimum Tier 1 capital ratio of 6.00% of risk-weighted assets;

•Maintain a "capital conservation buffer" of 2.50% above the minimum risk-based capital requirements, which must be maintained to avoid restrictions on capital distributions and certain discretionary bonus payments; and

•Comply with a revised definition of capital to improve the ability of regulatory capital instruments to absorb losses. Certain non-qualifying capital instruments, including cumulative preferred stock and TruPS, are excluded as a component of Tier 1 capital for institutions of the Corporation's size.

As of March 31, 2026, the Corporation's capital levels met the minimum capital requirements, including the capital conservation buffers, as prescribed in the Capital Rules.

As of March 31, 2026, Fulton Bank met the well-capitalized requirements under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, a bank must maintain minimum Total risk-based, Tier I risk-based, Common Equity Tier I risk-based and Tier I leverage ratios as set forth in the Capital Rules. There were no other conditions or events since March 31, 2026 that management believes have changed the Corporation's capital categories.

The following table summarizes the Corporation's capital ratios in comparison to regulatory requirements: