Terms

Series

Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A

Liquidation Preference

$25.00

Rate Type

Fixed

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

January 15, 2026

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness And Other Non-Equity Claims Of The Corporation, Any Capital Stock Expressly Stated To Be Senior To The Series A Preferred Stock; Pari Passu With: Any Class Or Series Of Capital Stock Expressly Stated To Be On Parity With Series A Preferred Stock; Senior To: Common Stock, Any Capital Stock Not Expressly Stated To Be Parity Or Senior To Series A Preferred Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.025

Prospectus Summary

Fulton Financial Corporation, a Pennsylvania-based financial holding company, is offering depositary shares (ticker: FULTP on NASDAQ) each representing a 1/40th interest in a share of its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, with a liquidation preference of $25.00 per depositary share ($1,000 per underlying preferred share). The coupon rate was not yet fixed at the time of this preliminary prospectus (filed October 22, 2020); dividends are payable quarterly on January 15, April 15, July 15, and October 15, beginning January 15, 2021, with an optional call on any dividend payment date on or after January 15, 2026 at $25.00 per depositary share. The Series A is non-cumulative, meaning that if the board does not declare a dividend for any period, that dividend is permanently forfeited — there is no obligation to make up missed payments in future periods. The Series A Preferred Stock sits above Fulton Financial's common stock and any undesignated junior stock in the capital stack, but ranks junior to all existing and future debt obligations and other non-equity claims of the corporation. As a holding company issue, it is also structurally subordinated: Fulton Financial's primary assets are its bank subsidiary (Fulton Bank, N.A.) and non-bank subsidiaries, and dividends on the preferred depend on upstream cash flows from those subsidiaries, which are subject to OCC and Federal Reserve regulatory restrictions. A regulatory capital call provision allows Fulton Financial to redeem the entire Series A (but not partially) within 90 days if a change in law or regulation causes the shares to lose Tier 1 Capital treatment — a meaningful risk for investors expecting a long hold prior to the 2026 optional call. The exact annual dividend rate was not finalized in this preliminary filing; investors should reference the final prospectus supplement for the specific yield. At par ($25.00 per depositary share), dividends are expected to qualify for the preferential 15%/20% qualified dividend income (QDI) rate for non-corporate U.S. holders and for the dividends-received deduction (DRD) for corporate holders, subject to Fulton Financial having sufficient current or accumulated earnings and profits. Dividends are paid quarterly on the 15th of January, April, July, and October. If the Series A Preferred Stock has not received its full dividend for the prior period, Fulton Financial is blocked from paying dividends on or repurchasing common stock and parity/junior securities — protecting Series A holders relative to junior equity, though the non-cumulative feature means any missed Series A dividend itself cannot be recovered.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Fulton Financial has not paid or set aside full dividends on the Series A Preferred Stock for the prior period, it may not pay dividends on or repurchase common stock or other junior/parity securities, except in limited circumstances. Additionally, if any future senior-ranking preferred stock exists and its dividends have not been fully paid, no dividends can be paid on the Series A Preferred Stock.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 65 (Strong)