Fulton Financial (FULT) Q3 2024 earnings summary

Executive summary

• Operating net income available to common shareholders reached a record $91.3 million, or $0.50 per diluted share, while GAAP net income was $60.6 million, or $0.33 per share, reflecting acquisition-related impacts.

• Net interest margin expanded by six basis points to 3.49%, with strong deposit growth of $745 million (excluding brokered deposits) and tangible book value per share up 4.7% to $13.02.

• Efficiency ratio improved to 59.6%, supported by strategic initiatives such as FultonFirst and the Republic First Bank acquisition.

• The Republic First Bank acquisition added $4.8 billion in assets and $5.6 billion in liabilities, expanding presence in Philadelphia and New Jersey.

• A $272.6 million common stock offering was completed to support growth and integration.

Financial highlights

• Net interest income for Q3 2024 was $258.0 million, up $16.3 million sequentially and $44.2 million year-over-year, with loan yields at 6.20%.

• Non-interest income was $59.7 million, impacted by a $7.7 million fair value adjustment to the gain on acquisition; for the nine months, it was $209.8 million, up 24.7%.

• Non-interest expense rose to $226.1 million, up $6.6 million sequentially and 32.2% year-over-year, driven by acquisition and integration costs.

• Provision for credit losses was $11.9 million for Q3 2024, down from $32.1 million in Q2, with $54.9 million for the nine months.

• Deposits totaled $26.2 billion, up 21.4% year-to-date; net loans were $24.2 billion, up 13.2%.

Outlook and guidance

• 2024 net interest income expected at $925–$950 million, provision for credit losses at $40–$60 million (excluding CECL day 1), non-interest income at $240–$260 million, and non-interest expense at $750–$770 million.

• Effective tax rate projected at 16%–18%.

• FultonFirst cost saves estimated at $25 million in 2025, with full annual benefit over $50 million realized in 2026.

• 2025 operating expenses expected to be flat versus 2024, with reinvestment in revenue-generating initiatives planned for 2026 and beyond.

• Interest rate risk is actively managed, with net interest income projected to be resilient to moderate rate changes.