Q3 2024 Fulton Financial Corp Earnings Call Transcript
Key Points
- Fulton Financial Corp (FULT) reported record operating earnings of $0.50 per diluted share for the third quarter, showcasing strong financial performance.
- Deposit growth exceeded expectations, driven by the Republic deposit portfolio, with a 12% annualized increase excluding brokered deposits.
- Net interest income and net interest margin both exceeded expectations, with a $16 million increase in net interest income and a 6 basis point rise in net interest margin.
- The company successfully integrated Republic Bank, achieving significant cost savings and expecting full integration benefits by year-end.
- Fulton First initiative is progressing well, with strategic realignments and leadership appointments aimed at enhancing growth and efficiency.
- Loan growth was modest at $70 million or 1% annualized, slightly below recent periods, partly due to the exit from the indirect auto lending channel.
- Non-performing loans increased by $30 million, raising concerns about certain borrowers struggling in the higher interest rate environment.
- Operating non-interest expense increased by $1.3 million, reflecting the full quarter of Republic expenses despite a decline in Fulton organic expenses.
- The company anticipates continued pressure on net interest income due to expected interest rate cuts, despite efforts to manage deposit costs.
- Provision expense remained relatively high at $11.9 million, indicating ongoing challenges in credit quality management.
Good day, and thank you for standing by. Welcome to the Fulton Financial third-quarter 2024 results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to Matt Jozwiak, Director of 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 third quarter ending September 30, 2024.
Your host for today's conference call is Curt Myers, Chairman and Chief Executive Officer. Joining Curt today is Rick Kraemer, Chief Financial Officer Designee; and Betsy Chivinski, 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
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