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, reflecting strong fundamentals, strategic initiatives, and operational progress.

• Net income available to common shareholders for Q4 2024 was $66.1 million ($0.36/diluted share), up from Q3; full-year net income was $278.5 million ($1.57/diluted share).

• 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 delivering cost savings.

• Strengthened the balance sheet through sale-leaseback, investment portfolio restructuring, and a successful capital raise.

Financial highlights

• Legacy deposits grew $878 million (4.1%), total deposits including Republic up $4.6 billion (21.3%) year-over-year; Q4 deposits totaled $26.1 billion.

• Legacy loans grew $316 million (1.5%), total loans including Republic up $2.7 billion (12.6%) year-over-year; Q4 net loans were $24.0 billion.

• Net interest income for Q4 2024 was $253.7 million, with net interest margin at 3.41%.

• 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.

• Operating non-interest expense for Q4 was $190.7 million, down $5.5 million sequentially, reflecting cost synergies.

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: $265 million–$280 million; non-interest expense: $755 million–$775 million.

• Effective tax rate expected to be approximately 18%.

• Expects operating efficiency improvements and flat expenses year-over-year from Fulton First, with $25 million in cost saves targeted for 2025 and $50 million by 2026.

• Management expressed confidence in continued success for 2025, citing strong operational and strategic positioning.