Fulton Financial Profile
Fulton Financial Corporation operates as a financial holding company. The company, through its wholly owned banking subsidiary, Fulton Bank, N.A., provides a range of banking and financial services to businesses and consumers.
The company delivers financial services within its five-state market area, consists of Pennsylvania, Delaware, Maryland, New Jersey and Virginia, in a personalized, community-oriented style that emphasizes relationship banking.
The company operates in areas that are home to a wide range of manufacturing, healthcare, agriculture and other service companies. A large portion of the company’s loan portfolio consists of commercial loans, commercial mortgage loans and construction loans.
The company offers a wide range of consumer and commercial banking products and services, as well as wealth management products and services, to its customers and the communities it serves:
Consumer Banking – The company offers a diversified suite of consumer banking products and services in its market area. The company’s consumer banking products and services include various checking account and savings deposit products and certificates of deposit. The company offers home equity loans and lines of credit, as well as a variety of fixed, variable and adjustable rate mortgage products, including construction loans and jumbo residential mortgage loans, all of which are underwritten based upon loan-to-value limits specified in its lending policy. The company’s consumer loan products include automobile loans, personal lines of credit and checking account overdraft protection. The company offers residential mortgages through Fulton Mortgage Company, an operating division of Fulton Bank.
Commercial Banking – The company provides commercial banking products and services primarily to small and medium sized businesses (generally with sales of less than $150 million) in its market area. Commercial lending products include commercial real estate loans, commercial and industrial loans, construction loans and equipment lease financing loans. Variable, adjustable and fixed rate loans are provided, with variable and adjustable rate loans generally tied to an index, such as the Prime Rate or LIBOR, as well as interest rate derivatives. commercial lending policy encourages relationship banking and provides strict guidelines related to customer creditworthiness and collateral requirements for secured loans. In addition, the company offers equipment lease financing, letters of credit, cash management services and traditional deposit products to commercial customers. The company has established lower total lending limits based on its internal risk rating of a borrower and for certain types of lending commitments.
Wealth Management – The company offers wealth management services, which include investment management, trust, brokerage, insurance and investment advisory services, to consumer and commercial customers in its market area through Fulton Financial Advisors and Fulton Private Bank, both operating divisions of Fulton Bank.
The company delivers these products and services through traditional financial center banking, with a network of financial center offices. Electronic delivery channels include a network of ATMs and telephone, mobile and online banking. The variety of available delivery channels allows customers to access their account information and perform certain transactions, such as depositing checks, transferring funds and paying bills, at any time of the day.
Non-Bank Subsidiaries
The company owns 100% of the outstanding equity of five non-bank subsidiaries, which are consolidated for financial reporting purposes: Fulton Financial Realty Company, which holds title to or leases certain properties where its financial centers and other facilities are located; Central Pennsylvania Financial Corp., which owns limited partnership interests in partnerships invested primarily in low- and moderate-income housing projects; FFC Penn Square, Inc., which owns TruPS issued by a subsidiary of Fulton Bank; Fulton Insurance Services Group, Inc., which engages in the sale of various life insurance products; and Fulton Community Partner, LLC, whose mission is to change lives for the better by supporting community and economic development projects in distressed and underserved communities through participation in the NMTC program.
Investment Securities
As of December 31, 2022, the company’s investment portfolio included U.S. Government securities; U.S. Government-sponsored agency securities; state and municipal securities; corporate debt securities; collateralized mortgage obligations; residential mortgage-backed securities; and commercial mortgage-backed securities.
Supervision and Regulation
The company is a registered bank holding company, and has elected to be treated as a financial holding company, under the Bank Holding Company Act of 1956, as amended (BHCA). The company is regulated, supervised and examined by the Board of Governors of the Federal Reserve System (Federal Reserve Board).
The bank is a national banking association chartered under the laws of the United States and is primarily regulated by the Office of the Comptroller of the Currency. In addition, the Consumer Financial Protection Bureau examines the bank for compliance with most federal consumer financial protection laws, including the laws relating to fair lending and prohibiting unfair, deceptive or abusive acts or practices in connection with the offer, sale or provision of consumer financial products or services, and for enforcing such laws with respect to the bank and its affiliates.
Federal statutes that apply to the company and its subsidiaries include the Gramm-Leach-Bliley Act (GLB Act), the BHCA, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Federal Reserve Act, the National Bank Act and the Federal Deposit Insurance Act, among others.
The company is subject to regulation and examination by the Federal Reserve Board, and is required to file periodic reports and to provide additional information that the Federal Reserve Board may require.
As a residential mortgage lender, the company is subject to multiple federal consumer protection statutes and regulations, including the Equal Credit Opportunity Act, the Truth in Lending Act, the Truth in Savings Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act.
The Federal Deposit Insurance Corporation Improvement Act and the Federal Deposit Insurance Corporation (FDIC) regulations limit the ability of an insured depository institution, such as the bank, to accept, renew or roll over brokered deposits unless the institution is well-capitalized under the prompt corrective action framework, or unless it is adequately capitalized and obtains a waiver from the FDIC.
The deposits of the bank are insured up to the applicable limits by the Federal Deposit Insurance Fund, generally up to $250,000 per insured depositor. The bank pays deposit insurance premiums based on assessment rates established by the FDIC.
Under the Community Reinvestment Act of 1977, the bank has a continuing and affirmative obligation, consistent with its safe and sound operation, to ascertain and meet the credit needs of its entire community, including low- and moderate-income areas. As of December 31, 2021, the bank was rated as ‘outstanding’. The bank is subject to regulations implementing the privacy protection provisions of the Gramm-Leach-Bliley Act (GLBA).
The company is subject to the periodic reporting, proxy solicitation, tender offer, insider trading, corporate governance and other requirements under the Securities Exchange Act of 1934.
History
Fulton Financial Corporation was founded in 1882. The company was incorporated under the laws of Pennsylvania in 1982.
