Fulton Financial Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Fulton Financial Corporation has submitted its 2023 10-K annual report, detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

FULTON FINANCIAL CORP (FULTP) filed a Annual Report (10-K) with the SEC on March 1, 2024. Fulton Financial Corporation filed its annual report for the fiscal year ending December 31, 2023. The filing is a 10-K report, indicating a comprehensive overview of the company's financial performance and condition. The company is classified under National Commercial Banks (SIC 6021). The report covers the fiscal year from January 1, 2023, to December 31, 2023. Fulton Financial Corp. is incorporated in Pennsylvania (PA).

Why It Matters

For investors and stakeholders tracking FULTON FINANCIAL CORP, this filing contains several important signals. This 10-K filing provides investors with a detailed look at Fulton Financial Corp.'s financial health, strategic initiatives, and risk factors for the past fiscal year. As a National Commercial Bank, the company's performance is closely tied to interest rate environments and economic conditions, making this report crucial for understanding its market position.

Risk Assessment

Risk Level: medium — FULTON FINANCIAL CORP shows moderate risk based on this filing. The filing is a standard 10-K for a publicly traded financial institution, which inherently carries market and regulatory risks, but no specific immediate red flags are apparent from the header information alone.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to assess Fulton Financial Corp.'s performance and outlook for the upcoming fiscal year.

Key Numbers

• 20231231 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 20240301 — Filed As Of Date (FILED AS OF DATE)
• 152 — Public Document Count (PUBLIC DOCUMENT COUNT)
• 001-39680 — SEC File Number (SEC FILE NUMBER)

Key Players & Entities

• FULTON FINANCIAL CORP (company) — COMPANY CONFORMED NAME
• PA (location) — STATE OF INCORPORATION
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240301 (date) — FILED AS OF DATE
• 0000700564 (company) — CENTRAL INDEX KEY
• 6021 (industry) — NATIONAL COMMERCIAL BANKS

FAQ

Industry Context

Fulton Financial Corp. operates within the National Commercial Banks industry, a sector sensitive to interest rate fluctuations and overall economic health.

Regulatory Implications

As a commercial bank, Fulton Financial Corp. is subject to extensive regulation by federal and state authorities, impacting its operations and capital requirements.

What Investors Should Do

1. Analyze the company's revenue streams and expense structure for FY2023.
2. Examine the balance sheet for changes in assets, liabilities, and equity compared to prior periods.
3. Review the Management's Discussion and Analysis (MD&A) section for insights into the company's strategy and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-01: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing for the 2023 fiscal year, providing the first comprehensive look at the company's performance for this period.

Key Financial Figures

• $2.50 — ange on which registered Common Stock, $2.50 par value FULT The Nasdaq Stock Market,
• $100 million — m The authorization to repurchase up to $100 million of the Corporation's common stock comme
• $125 million — December 31, 2024, to repurchase up to $125 million of the Corporation's common stock; unde
• $25 million — stock; under this authorization, up to $25 million of the $125 million authorization may b
• $3.65 — are of Prudential Bancorp common stock, $3.65 in cash and 0.7974 of a share of the Co
• $18.25 M — iplying such fractional share amount by $18.25 MSRs Mortgage servicing rights NDAA Nati
• $150 million — with annual gross revenue of less than $150 million) in our market area. Commercial lending

Filing Documents

• fult-20231231.htm (10-K) — 5108KB
• fult12312023ex21.htm (EX-21) — 15KB
• fult12312023ex23.htm (EX-23) — 3KB
• fult123123-exhibit24xpoa.htm (EX-24) — 47KB
• fult123123-exhibit311.htm (EX-31.1) — 10KB
• fult123123-exhibit312.htm (EX-31.2) — 11KB
• fult123123-exhibit321.htm (EX-32.1) — 4KB
• fult123123-exhibit322.htm (EX-32.2) — 4KB
• fult12312023-ex97clawbackp.htm (EX-97) — 34KB
• fult-20231231_g1.jpg (GRAPHIC) — 126KB
• 0000700564-24-000012.txt (&nbsp;) — 25495KB
• fult-20231231.xsd (EX-101.SCH) — 116KB
• fult-20231231_cal.xml (EX-101.CAL) — 245KB
• fult-20231231_def.xml (EX-101.DEF) — 780KB
• fult-20231231_lab.xml (EX-101.LAB) — 1611KB
• fult-20231231_pre.xml (EX-101.PRE) — 1144KB
• fult-20231231_htm.xml (XML) — 5430KB

Risk Factors

Item 1A. Risk Factors 22

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 32

Cybersecurity

Item 1C. Cybersecurity 33

Properties

Item 2. Properties 34

Legal Proceedings

Item 3. Legal Proceedings 34

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 34 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 35

[Reserved]

Item 6. [Reserved] 38

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 38

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 63

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data: Consolidated Balance Sheets 68 Consolidated Statements of Income 69 Consolidated Statements of Comprehensive Income 70 Consolidated Statements of Shareholders' Equity 71 Consolidated Statements of Cash Flows 72

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 73 Management Report On Internal Control Over Financial Reporting 129 Report of Independent Registered Public Accounting Firm 130

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 133

Controls and Procedures

Item 9A. Controls and Procedures 133

Other Information

Item 9B. Other Information 133

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 133 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 134

Executive Compensation

Item 11. Executive Compensation 134

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 134

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 134

Principal Account ant Fees and Services

Item 14. Principal Account ant Fees and Services 134 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 135

Form 10-K Summary

Item 16. Form 10-K Summary 137

Signatures

Signatures 138 Note: Some numbers contained in this Report may not sum due to rounding 2 FULTON FINANCIAL CORPORATION GLOSSARY OF DEFINED ACRONYMS AND TERMS 2023 Repurchase Program The authorization to repurchase up to $100 million of the Corporation's common stock commencing on January 1, 2023 and expiring on December 31, 2023 2024 Proxy Statement Definitive Proxy Statement for the Corporation's 2024 Annual Meeting of Shareholders 2024 Repurchase Program The authorization, commencing on January 1, 2024 and expiring on December 31, 2024, to repurchase up to $125 million of the Corporation's common stock; under this authorization, up to $25 million of the $125 million authorization may be used to repurchase the Corporation's preferred stock and outstanding subordinated notes ACL Allowance for Credit Losses AFS Available for Sale ALCO Asset/Liability Management Committee AML Anti-Money Laundering AOCI Accumulated other comprehensive (loss) income APR Annual Percentage Rate ASC Accounting Standards Codification ASU Accounting Standards Update ATM Automated Teller Machine Basel Committee Basel Committee on Banking Supervision Basel III Rules Risked-based requirements and rules issued by federal banking agencies BHCA Bank Holding Company Act of 1956, as amended BMA Bank Merger Act BOI Beneficial ownership information bp or bps Basis Point(s) BSA Bank Secrecy Act of 1970, as amended Capital Rules Regulatory capital requirements applicable to the Corporation and Fulton Bank CCPA California Consumer Privacy Act CDI Core Deposit Intangible CECL Current Expected Credit Losses CECL Day 1 Provision Initial provision for credit losses required on non-purchased credit deteriorated loans acquired in the Merger CECL Transition Rule Amendments to the Capital Rules adopted by the federal banking agencies that delay the estimated impact on regulatory capital from the adoption of CECL CET1 Common Equity Tier 1 CFPB Consumer Financial Protection Burea

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS The Corporation has made, and may continue to make, certain forward-looking statements with respect to its 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, including future credit losses, 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, the statements 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. Many factors could affect futu

Business

Item 1. Business General The Corporation was incorporated under the laws of Pennsylvania on February 8, 1982 and became a bank holding company through the acquisition of all of the outstanding stock of Fulton Bank on June 30, 1982. In 2000, we became a financial holding company as defined in the GLBA, which gave us the ability to expand our financial services activities under our holding company structure. See "Item 1. Business - Competition and - Supervision and Regulation. " We directly own 100% of the common stock of Fulton Bank and five non-bank entities. On July 1, 2022, we completed our acquisition of 100% of the outstanding common stock of Prudential Bancorp. Prudential Bancorp's wholly-owned subsidiary, Prudential Bank, became our wholly-owned subsidiary. Prudential Bank merged with and into Fulton Bank on November 5, 2022. Our Internet address is www.fultonbank.com . Electronic copies of our 2023 Annual Report on Form 10-K are available free of charge by visiting "Investor Relations - Documents" at www.fultonbank.com . Electronic copies of quarterly reports on Form 10-Q and current reports on Form 8-K are also available at this Internet address. These reports, as well as any amendments thereto, are posted on our website as soon as reasonably practicable after they are electronically filed with the SEC. The information contained on our website or in any websites linked by our website is not a part of this Annual Report on Form 10-K. Banking and Financial Services Through our banking subsidiary, Fulton Bank, we deliver financial services primarily within our five-state market area, comprised of Pennsylvania, Delaware, Maryland, New Jersey and Virginia, in a personalized, community-oriented style that emphasizes relationship banking. We operate in areas that are home to a wide range of manufacturing, healthcare, agriculture and other service companies. Although a large portion of our loan portfolio is comprised of commercial loans, commercial mor

View Full Filing

View this 10-K filing on SEC EDGAR