Q2 2024 Fulton Financial Corp Earnings Call Transcript
Key Points
- Fulton Financial Corp (FULT) reported strong operating earnings of $0.47 per diluted share, exceeding expectations.
- The company experienced significant balance sheet growth, with organic loans and deposits increasing as anticipated.
- Net interest margin improved by 11 basis points, contributing to a $35 million increase in net interest income.
- The Republic transaction added substantial growth, with deposits growing by $3.8 billion or 17.6% on a linked quarter basis.
- Fulton Financial Corp (FULT) successfully executed a sale-leaseback transaction and investment portfolio restructuring, enhancing its investment portfolio yield and adding an estimated $8.5 million in annual interest income.
- There was some deposit runoff from the acquired Republic deposit portfolio, as several large municipal deposit customers transitioned out.
- The cost of total deposits increased by 19 basis points to 2.14%, primarily due to the higher cost of the acquired portfolio.
- Non-performing loans (NPLs) increased by $6.2 million during the quarter, although the NPL to loans ratio decreased.
- The company is cautious about its credit outlook for 2024, monitoring the acquired portfolio closely.
- Fulton Financial Corp (FULT) anticipates continued migration from non-interest-bearing to interest-bearing deposits, which may pressure net interest margin.
Good day and thank you for standing by, and welcome to the second quarter Fulton Financial Results Call. (Operator Instructions) Again to be advised that today's conference is being recorded, and I have to hand the conference over to your first speaker today, Matthew Jozwiak, Director, Investor Relations. Please go ahead.
Good morning and thanks for joining us for Fulton Financial's conference call and webcast to discuss our earnings for the second quarter ending June 30, 2024.
Your host for today's conference call is Curt Myers, Chairman and Chief Executive Officer, joining her today is Beth Chiviniski Interim Chief Financial Officer, our comments today will refer to the financial information and related slide presentation included with our earnings announcement, which we released yesterday afternoon. These documents can be found on our website at fult.com by clicking on Investor Relations.
And then on news. The slides can also be found on the
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