Fulton Financial (FULT) Q4 2024 earnings summary

Executive summary

• Achieved record total revenue of $1.2 billion and record operating earnings per share of $1.85 for 2024, with full-year net income of $278.5M and operating net income of $328.1M, reflecting strong fundamentals and strategic initiatives.

• Net income available to common shareholders was $66.1 million in Q4 2024, up from $60.6 million in Q3, with diluted EPS of $0.36; operating net income per diluted share was $0.48, slightly down sequentially.

• Successfully completed and integrated the Republic transaction, realizing cost savings and financial contributions ahead of expectations.

• Advanced the Fulton First transformation, simplifying the operating model, enhancing productivity, and achieving $5 million in quarterly run-rate cost savings in Q4, targeting $25 million for 2025 and $50 million by 2026.

• Grew customer base to over 750,000 and increased dividends by 6% year-over-year, with Q4 cash dividends per share at $0.18.

Financial highlights

• Net interest income for Q4 2024 was $253.7 million, down $4.4 million sequentially; net interest margin was 3.41% for Q4 and 3.42% for the year.

• Non-interest income (excluding one-time items) grew $31 million (13.4%) to $259 million for the year; Q4 non-interest income was $65.9 million, up $6.3 million sequentially.

• Operating non-interest expense decreased to $190.7 million in Q4, primarily due to Republic integration cost synergies.

• Provision for credit losses was $16.7 million in Q4, with allowance for credit losses at $379.2 million (1.58% of net loans).

• Declared dividends of $0.69 per share for 2024.

Outlook and guidance

• 2025 net interest income expected between $995 million and $1.02 billion, with low to mid single-digit growth in loans and deposits.

• Provision for credit losses projected at $60 million-$80 million; non-interest income guidance of $265 million-$280 million.

• Operating non-interest expense expected at $755 million-$775 million, excluding $14 million in Fulton First charges and $22.5 million in CDI amortization.

• Effective tax rate anticipated at approximately 18%.

• Estimated $25 million in cost saves in 2025 from FultonFirst, with full annualized benefit of $50 million by 2026.