FULTON FINANCIAL CORP

Three months ended June 30, 2026 compared to the three months ended June 30, 2025

Net Interest Income

FTE net interest income was $288.6 million for the three months ended June 30, 2026, an increase of $29.3 million, compared to $259.3 million for the same period in 2025. For the three months ended June 30, 2026, NIM increased to 3.60%, or 13 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 June 30, 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 June 30, 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 second quarter of 2025, FTE total interest income for the second quarter of 2026 increased $25.3 million, or 6.2%, due to a $30.6 million increase attributable to changes in volume, partially offset by a $5.2 million decrease attributable to changes in yield. The increase due to changes in volume was largely due to an increase in average net loans and was primarily due to $1.6 billion of loans acquired in the Blue Foundry Merger. The decrease due to changes in yield was primarily due to lower interest rates on average net loans.

The yield on average total interest-earning assets decreased four bps for the three months ended June 30, 2026 compared to the same period in 2025 primarily due to lower interest rates.

In the second quarter of 2026, interest expense decreased $3.9 million compared to the second quarter of 2025, primarily driven by a $16.8 million decrease attributable to changes in rate and a $12.8 million increase attributable to changes in volume. The decrease in interest expense attributable to changes in rate was primarily due to lower interest rates. The increase in interest expense attributable to changes in volume was primarily due to $1.5 billion of deposits acquired in the Blue Foundry Merger.

The rate on average total interest-bearing liabilities decreased 27 bps for the three months ended June 30, 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 second quarter of 2026, average net loans increased $2.0 billion, or 8.3%, compared to the same period in 2025. The increase in average net loans was primarily due to a $1.2 billion increase in average commercial mortgage loans and a $741.5 million increase in average residential mortgage loans, partially offset by a $209.5 million decrease in average construction loans. The increase in average net loans was primarily driven by $1.6 billion of loans acquired in the Blue Foundry Merger. See "Note 2- Business Combinations" in the Notes to Consolidated Financial Statements in Part I, "Item 1. Financial Statements."

The yield on total loans decreased six bps to 5.80% for the second quarter of 2026 compared to 5.86% for the same period in 2025 primarily due to lower interest rates.

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

Average total deposits increased $1.9 billion, or 7.2%, in the second quarter of 2026 compared to the same period in 2025. The increase in average total deposits was primarily due to increases of $908.8 million, $479.1 million and $428.2 million in average savings and money market deposits, average interest-bearing demand deposits and average time deposits, respectively. The increase in average total deposits was primarily driven by $1.5 billion of deposits assumed in the Blue Foundry Merger.

The cost of deposits decreased 17 bps to 1.81% in the second quarter of 2026 compared to 1.98% 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 $11.4 million, or 0.6%, in the second quarter of 2026 compared to the same period in 2025. The decrease in average total borrowings and other interest-bearing liabilities was primarily due to a $236.2 million decrease in average FHLB advances, partially offset by a $142.1 million increase in average senior debt and subordinated debt and a $83.9 million increase in average other borrowings and interest-bearing liabilities.

In May 2026, the Corporation issued $300.0 million aggregate principal amount of 5.950% Fixed-to-Floating Rate Subordinated Notes due 2036. On June 15, 2026, the Corporation redeemed $195.0 million aggregate principal of the Subordinated Notes due 2030. See "Note 8 - Borrowings" in the Notes to Consolidated Financial Statements in Part I, "Item 1. Financial Statements."

Provision for Credit Losses

The provision for credit losses was $4.9 million for the three months ended June 30, 2026 resulting in a $382.6 million ACL attributable to net loans, or 1.48% of total net loans as of June 30, 2026, compared to a provision for credit losses of $8.6 million for the same period in 2025, resulting in a $377.3 million ACL attributable to net loans, or 1.57% of total net loans as of June 30, 2025. A $31.0 million initial ACL on purchased loans was recorded as a result of the Blue Foundry Merger.

Non-Interest Income

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

Non-interest income for the three months ended June 30, 2026 increased $10.2 million, or 14.7%, compared to the same period in 2025. The increase in non-interest income was primarily attributable to a $6.9 million gain related to the sale of an equity method investment, reflected in other non-interest income, a $0.9 million increase in mortgage banking income due to higher loan sales volumes and spreads, a $0.9 million increase in wealth management revenues as a result of an increase in assets under management, a $0.6 million increase in consumer banking card income due to higher transaction volume, and a $0.6 million increase in commercial customer interest rate derivative fee income, reflected in capital markets.

Non-Interest Expense

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

Non-interest expense for the three months ended June 30, 2026 increased $38.1 million, or 19.8%, compared to the same period in 2025. Excluding FultonFirst implementation and asset disposals and acquisition-related expenses, non-interest expense increased $24.2 million, or 12.5%. The increase in non-interest expense before FultonFirst implementation and asset disposals and acquisition-related expenses was primarily driven by a $12.0 million increase as a result of the Blue Foundry Merger. Excluding FultonFirst implementation and asset disposals, acquisition-related expenses and the Blue Foundry Merger impact, the remaining $12.2 million increase in non-interest expense was driven by a $6.6 million increase in salaries and employee benefits expense largely due to annual merit increases and sales commissions expense. The $4.8 million increase in other non-interest expense includes $2.1 million related to the decision to merge the multiemployer pension plan assumed in the Prudential Bancorp Merger with the Pension Plan and $0.8 million of debt extinguishment costs recognized in connection with the redemption of the Subordinated Notes due 2030.

Income Taxes

Income tax expense for the three months ended June 30, 2026 was $25.3 million, a $1.8 million increase compared to the same period in 2025. The Corporation's ETR was 19.8% for the three months ended June 30, 2026 compared to 19.1% for the same period in 2025.

Six months ended June 30, 2026 compared to the six months ended June 30, 2025

Net Interest Income

FTE net interest income was $554.9 million for the six months ended June 30, 2026, an increase of $40.1 million, compared to $514.8 million for the same period in 2025. For the six months ended June 30, 2026, NIM increased to 3.59%, or 14 bps, compared to the same period in 2025. The following table provides a comparative average balance sheet and net interest income analysis for the six months ended June 30, 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 six months ended June 30, 2026 in comparison 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 same period in 2025, FTE total interest income for the six months ended June 30, 2026 increased $15.6 million, or 1.9%, due to a $32.2 million increase attributable to changes in volume, partially offset by a $16.6 million decrease attributable to changes in yield. The increase due to changes in volume was largely due to an increase in average net loans and was primarily due to $1.6 billion of loans acquired in the Blue Foundry Merger. The decrease due to changes in yield was primarily due lower interest rates on average net loans.

The yield on average total interest-earning assets decreased nine bps for the six months ended June 30, 2026 compared to the same period in 2025 primarily due to lower interest rates.

For the six months ended June 30, 2026, interest expense decreased $24.4 million, or 8.2%, compared to the same period in 2025, primarily driven by a $36.3 million decrease attributable to changes in rate, partially offset by a $11.9 million increase attributable to changes in volume. The decrease in interest expense attributable to changes in rate was primarily due to lower interest rates. The increase in interest expense attributable to changes in volume was primarily due to $1.5 billion of deposits assumed in the Blue Foundry Merger.

The rate on average total interest-bearing liabilities decreased 33 bps for the six months ended June 30, 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 six months ended June 30, 2026, average net loans increased $1.1 billion, or 4.6%, comparedto the same period in 2025. The increase in average net loans was primarily due to increases of $750.0 million and $536.2 million in average real estate - commercial mortgage loans and average real estate - residential loans, respectively, partially offset by a $289.5 million decrease in average real estate - construction loans.

The increase in average net loans was largely driven by $1.6 billion of loans acquired in the Blue Foundry Merger. See "Note 2- Business Combinations" in the Notes to Consolidated Financial Statements in Part I, "Item 1. Financial Statements."

The yield on total loans decreased 11 bps for the six months ended June 30, 2026 compared to the same period in 2025 primarily due to lower interest rates.

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

During the six months ended June 30, 2026, average total deposits increased $1.1 billion, or 4.2%, compared to the same period in 2025. The increase in average total deposits was primarily due to increases of $773.3 million, $251.1 million and $197.5 million in average savings and money market deposits, average interest-bearing demand deposits and average time deposits, respectively, partially offset by a decrease of $208.3 million in noninterest-bearing demand deposits. The increase in average total deposits was primarily driven by $1.5 billion of deposits assumed in the Blue Foundry Merger.

The cost of total deposits decreased 21 bps to 1.80% for the first six months of 2026 compared to 2.01% 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 and capital leases and collateral liabilities.

Average total borrowings and other interest-bearing liabilities decreased $202.5 million, or 11.5%, in the first six months of 2026 compared to the same period in 2025. The decrease in average total borrowings and other interest-bearing liabilities was primarily due to a $361.6 million decrease in average FHLB advances, partially offset by increases of $88.0 million and $71.6 million in average other borrowings and interest-bearing liabilities and average senior debt and subordinated debt, respectively.

During the six months ended June 30, 2026 the Corporation issued $300.0 million aggregate principal amount of 5.950% Fixed-to-Floating Rate Subordinated Notes due 2036. On June 15, 2026, the Corporation redeemed $195.0 million aggregate principal of the Subordinated Notes due 2030. See "Note 8 - Borrowings" in the Notes to Consolidated Financial Statements in Part I, "Item 1. Financial Statements."

Provision for Credit Losses

The provision for credit losses was $19.3 million for the six months ended June 30, 2026 resulting in a $382.6 million ACL attributable to net loans, or 1.48% of total net loans as of June 30, 2026, compared to a provision for credit losses of $22.5 million for the same period in 2025, resulting in a $377.3 million ACL attributable to net loans, or 1.57% of total net loans as of June 30, 2025.

Non-Interest Income

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

Non-interest income for the six months ended June 30, 2026 increased $12.8 million, or 9.4%, compared to the same period in 2025. The increase in non-interest income was primarily attributable to a $3.3 million increase in income from equity method investments, reflected in other income, a $3.6 million increase in wealth management revenues as a result of an increase in assets under management, a $1.8 million increase in mortgage banking income due to higher loan sales volumes and spreads, a $1.8 million increase in commercial customer interest rate derivative fee income, reflected in capital markets, and a $1.0 million increase in cash management fee income.

Non-Interest Expense

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

Non-interest expense for the six months ended June 30, 2026 increased $49.0 million, or 12.8%, compared to the same period in 2025. Excluding FultonFirst implementation and asset disposals and acquisition-related expenses, non-interest expense increased $31.2 million, or 8.2%, for the six months ended June 30, 2026 compared to the same period in 2025. The increase in non-interest expense before FultonFirst implementation and asset disposals and acquisition-related expenses was primarily driven by a $12.0 million increase as a result of the Blue Foundry Merger. Excluding FultonFirst implementation and asset disposals, acquisition-related expenses and the Blue Foundry Merger impact, the remaining $19.2 million increase in non-interest expense was driven by a $12.8 million increase in salaries and employee benefits expense largely due to sales commissions expense and annual merit increases and a $3.6 million increase in professional fees due to a $3.5 million recovery during the first quarter of 2025 of previously incurred fees. The $3.9 million increase in other non-interest expense includes $2.1 million related to the decision to merge the multiemployer pension plan assumed in the Prudential Bancorp Merger with the Pension Plan and $0.8 million of debt extinguishment costs recognized in connection with the redemption of the Subordinated Notes due 2030.

Income Taxes

Income tax expense for the six months ended June 30, 2026 was $47.7 million, a $2.1 million increase compared to the same period in 2025. The Corporation's ETR was 19.5% for the six months ended June 30, 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 June 30, 2026 increased $153.2 million, or 4.5%. The increase in AFS investment securities at June 30, 2026 compared to December 31, 2025 was primarily due to increases of $144.2 million in collateralized mortgage obligations and $28.2 million in commercial mortgage-backed securities, partially offset by a decrease of $10.7 million in state and municipal securities. The increase in AFS investment securities was partially driven by $84.3 million of AFS investment securities acquired and retained in the Blue Foundry Merger.

Compared to December 31, 2025, total HTM investment securities at June 30, 2026 increased $135.8 million, or 9.5%. The increase in HTM investment securities at June 30, 2026 compared to December 31, 2025 was driven by a $163.0 million increase in collateralized mortgage obligations, partially offset by a decrease of $57.0 million in residential mortgage-backed securities.

Loans

The following table presents ending net loans outstanding by type:

(1) Includes unearned income of $40.8 million and $36.8 million as of June 30, 2026 and December 31, 2025, respectively.

During the six months ended June 30, 2026, net loans increased $1.8 billion compared to December 31, 2025. The increase in net loans during the six months of 2026 was primarily due to a $1.6 billion increase in loans, based on fair values, as a result of the Blue Foundry Merger. Additionally, 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 June 30, 2026, approximately $11.9 billion, or 45.7%, of the loan portfolio was comprised of commercial mortgage loans and construction loans.

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 41.6% owner occupied commercial mortgage loans and 58.4% of non-owner occupied commercial mortgage loans as of June 30, 2026. The following table summarizes the non-owner occupied commercial mortgage loan portfolio outstanding balance and the percent to total net loans.

Compared to December 31, 2025, non-owner occupied multi-family loans increased $467.3 million, or 29.4%, to $2.1 billion as of June 30, 2026, primarily due to loans acquired in the Blue Foundry Merger.

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

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

(5) Baltimore-Columbia-Towson, MD.

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 June 30, 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 $259.2 million and outstanding loan commitments of $490.1 million as of June 30, 2026.

Compared to December 31, 2025, the non-owner occupied multi-family total loan commitment balance in the New York-Newark-Jersey City Metropolitan Statistical Area increased $493.1 million to $611.9 million as of June 30, 2026, primarily due to loans acquired in the Blue Foundry Merger. Compared to December 31, 2025, the non-owner occupied multi-family loan outstanding balance in the New York-Newark-Jersey City Metropolitan Statistical Area increased $466.0 million to $583.0 million as of June 30, 2026, primarily due to loans acquired in the Blue Foundry Merger.

The following tables present the changes in non-accrual loans for the three and six months ended June 30, 2026:

During the three months ended June 30, 2026, non-accrual loans increased by approximately $4.4 million, or 3.1%, primarily due to $91.8 million in additions, partially offset by $57.0 million in payments and $24.1 million in charge-offs. During the six months ended June 30, 2026, non-accrual loans decreased by approximately $7.4 million, or 4.8%, primarily due to $96.6 million in payments and $40.7 million in charge-offs, partially offset by $136.6 million in additions. During the six months ended June 30, 2026, non-accrual loans as a percentage of total net loans decreased to 0.56% compared to 0.64% as of December 31, 2025. Non-accrual loans as of June 30, 2026 included $12.1 million acquired in the Blue Foundry Merger.

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

(1) Excludes $20.7 million and $19.1 million of residential mortgage properties for which formal foreclosure proceedings were in process as of June 30, 2026 and December 31, 2025, respectively.

Non-performing loans and leases as of June 30, 2026 were $181.3 million, a decrease of $2.5 million, or 1.4%, compared to $183.8 million as of December 31, 2025. The decrease in non-performing loans and leases during the six months ended June 30, 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 0.70% and 0.76% as of June 30, 2026 and December 31, 2025, respectively. Non-performing loans and leases as of June 30, 2026 included $12.1 million acquired in the Blue Foundry Merger.

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 $16.5 billion and $15.4 billion as of June 30, 2026 and December 31, 2025, respectively, of which $1.3 billion were criticized and classified loans at June 30, 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 June 30, 2026 decreased $193.2 million driven by a decrease in substandard or lower and special mention loans of $121.6 million and $71.6 million, respectively.

Total criticized and classified loans as of June 30, 2026 included $52.0 million acquired in the Blue Foundry Merger.

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 June 30, 2026 was $6.3 million compared to $9.4 million for the same period in 2025. The provision for credit losses for the portion related to net loans for the six months ended June 30, 2026 was $20.9 million compared to $22.5 million for the same period in 2025.

A $3.4 million initial ACL on purchased loans was recorded during the first quarter of 2026 due to the $207.7 million in-market commercial loan portfolio purchase. A $31.0 million initial ACL on purchased loans was recorded during the second quarter of 2026, including $4.1 million identified for PCD Loans, in connection with the Blue Foundry Merger.

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 six months ended June 30, 2026, total deposits increased by $1.7 billion compared to December 31, 2025. The increase in total deposits was primarily due to a $764.4 million increase in savings and money market deposits, a $611.0 million increase in time deposits, a $175.9 million increase in interest-bearing demand deposits and a $120.2 million increase in brokered deposits.

The increase in total deposits was primarily driven by a $1.2 billion increase as a result of the Blue Foundry Merger.

Total uninsured deposits (excluding intra-Company deposits) were estimated to be $9.7 billion as of June 30, 2026 and December 31, 2025.

Time deposits of $250 thousand or more were $1.1 billion at June 30, 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 six months ended June 30, 2026, total borrowings increased $416.6 million, or 32.1%, compared to December 31, 2025. The increase in total borrowings was attributable to a $302.5 million increase in FHLB advances driven by $276.0 million of FHLB advances assumed in the Blue Foundry Merger, and a $102.0 million increase in senior debt and subordinated debt, due to the issuance of $300.0 million aggregate principal amount of 5.950% Fixed-to-Floating Rate Subordinated Notes due 2036 in May 2026 and the redemption of $195.0 million aggregate principal amount of the Subordinated Notes due 2030 in June 2026. See "Note 8 - Borrowings" in the Notes to Consolidated Financial Statements in Part I, "Item 1. Financial Statements" for additional details.

Shareholders' Equity

On the Acquisition Date, the Corporation issued 12,435,551 shares of treasury stock as consideration in connection with the Blue Foundry Merger with a fair value of$252.9 million.

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 six months ended June 30, 2026, 1,737,650 shares of the Corporation's common stock were repurchased under the 2026 Repurchase Program at a cost of $35.6 million or an average of $20.51 per share.

Regulatory Capital

The Corporation and its wholly owned subsidiary banks, Fulton Bank and Blue Foundry 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, Fulton Bank and Blue Foundry 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 June 30, 2026, the Corporation's capital levels met the minimum capital requirements, including the capital conservation buffers, as prescribed in the Capital Rules.

As of June 30, 2026, Fulton Bank and Blue Foundry 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 June 30, 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: