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 items and sequential decline.

• Net interest margin expanded by six basis points to 3.49%, with net interest income rising to $258.0 million.

• Deposit growth was robust at $745 million (excluding brokered deposits), and tangible book value per share increased 4.7% to $13.02.

• Strategic initiatives, including FultonFirst and the Republic Bank acquisition, drove operational transformation, efficiency, and growth focus.

• Efficiency ratio improved to 59.6%, with progress on cost savings and integration.

Financial highlights

• Net interest income was $258.0 million, up $16.3 million sequentially and $44.2 million year-over-year, driven by the Republic Bank acquisition and higher liquidity.

• Non-interest income was $59.7 million, impacted by a $7.7 million fair value adjustment to the gain on acquisition; non-interest income grew 6.6% year-over-year.

• Non-interest expense rose to $226.1 million, up $6.6 million sequentially and 32.2% year-over-year, reflecting higher salaries, severance, and acquisition-related 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, mainly due to the Republic First Transaction.

• 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 (45% in 1H25), 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.

• Management expects continued integration of Republic First Bank assets and realization of anticipated cost savings and strategic gains.