Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q4 2024 Earnings Presentation
28 slides from Fulton Financial's earnings presentation, Jan 22, 2025
Slide 1: Fourth Quarter 2024 Results
FOURTH QUARTER 2024 RESULTS NASDAQ: FULT Data as of or for the period ended December 31, 2024 unless otherwise noted
Slide 2: Forward-looking statements
This presentation may contain forward-looking statements with respect to Fulton Financial Corporation's (the "Corporation“ or “Fulton”) financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use o
Slide 3: Fourth Quarter 2024 Financial Highlights
Fourth Quarter 2024 Financial Highlights GAAP Reported Operating(1) 4Q24 3Q24 4Q24 3Q24 Net Income Available to Common Shareholders ($ in millions) $66.1 $60.6 $88.9 $91.3 Return on Average Assets (annualized) 0.85% 0.79% 1.14% 1.17% Return on Average Tangible Common Equity (annualized; non-GAAP) --
Slide 4: Deepening Our Commitment to Purpose, Vision, & Strategic Execution
Deepening Our Commitment to Purpose, Vision, & Strategic Execution Simplicity in the operating model - Realign value propositions and coverage models by customer size and Focus on Fulton’s core relationships complexity - Redesign end-to-end processes with - Invest in “relationship” products & specia
Slide 5: Income Statement Summary
Income Statement Summary Linked-Quarter 4Q24 3Q24 Change (dollars in thousands, except per-share data) Net interest income $253,659 $258,009 ($4,350) Provision for credit losses 16,725 11,929 4,796 Non-interest income 65,924 59,674 6,250 Securities (losses) - (1) 1 Non-interest expense 216,615 226,0
Slide 6: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin (“NIM”) 4Q24 Highlights Average Interest-Earning Assets & Yields (dollars in billions) • NIM was 3.41% in the fourth quarter of 2024, decreasing eight basis points compared to the third quarter of 2024. • Loan yields decreased by 23 basis points during the
Slide 7: Non-Interest Income
Non-Interest Income 4Q24 3Q24 Linked- (dollars in thousands) 4Q24 Fulton Republic 4Q24 3Q24 Fulton Republic 3Q24 Quarter Organic Transaction Consolidated Organic Transaction Consolidated Change Commercial Banking $21,666 $788 $22,454 $21,905 $384 $22,289 $165 Wealth Management 22,002 - 22,002 21,596
Slide 8: Non-Interest Expense
Non-Interest Expense 4Q24 4Q24 3Q24 3Q24 Linked- (dollars in thousands) Fulton Republic 4Q24 Fulton Republic 3Q24 Quarter Organic Transaction Consolidated Organic Transaction Consolidated Change Salaries and employee benefits $100,423 $7,463 $107,886 $107,986 $10,838 $118,824 ($10,938) Data processi
Slide 9: Success to Date Positions Fulton Well for 2025 & Beyond
Success to Date Positions Fulton Well for 2025 & Beyond Estimated FultonFirst Financial Benefits Positioning for Growth 2025 estimated cost saves of ~$25 million Implementation costs associated with •Anticipate ~45% in 1H25; balance in 2H25 FultonFirst should abate through 2025: • Implementation-to-
Slide 10: Asset Quality
Asset Quality Provision for Credit Losses Non-Performing Assets (“NPAs”) & NPAs to Assets Net Charge-offs (“NCOs”) and NCOs to Average Loans ACL(1) to NPLs & Loans (1) The allowance for credit losses (“ACL”) relates specifically to “Loans, net of unearned income” and does not include reserves relate
Slide 11: Capital Ratios
Capital Ratios(1) (as of December 31, 2024) (dollars in millions) (2) (1) Regulatory capital ratios and excess capital amounts as of December 31, 2024 are preliminary estimates. (2) Excesses shown are to regulatory minimums, including the 250 basis point capital conservation buffer, except for Tier
Slide 12: 2025 Operating Guidance
2025 Operating Guidance Income Statement Line Item Expected Range Outlook and Highlights (1) Non-FTE Net Interest Income ("NII") $995 million - $1.020 billion Low to mid single digit interest earning asset growth [ FTE Adjustment for NIM calculation ] [ ~$17 million annualized ] Provision for Credit
Slide 13: A Larger Deposit Portfolio That Remains Granular, Tenured and Diversified
A Larger Deposit Portfolio That Remains Granular, Tenured and Diversified With Significant Liquidity Coverage Deposit Mix By Customer Deposit Portfolio Highlights(1) (December 31, 2024) 866,000 deposit accounts $28,421 average account balance ~10 year average account age 25% net estimated uninsured
Slide 14: Balance Sheet Maintains Flexibility
Balance Sheet Maintains Flexibility Loan Mix by Rate Type Deposit Mix by Product Type(1) (December 31, 2024) (December 31, 2024) The majority of adjustable-rate loans Time deposits provide gradual tailwind in reprice beyond two years current environment Weighted Average CD Maturities Balance Average
Slide 15: Loan Portfolio Remains Diversified With Low Office Concentration
The Loan Portfolio Remains Diversified and Granular With Low Office Concentration at 3% of Total Loans Total Loan Portfolio Office Only Profile (December 31, 2024) Total Office Loan Commitments: $864 million Total Office Loans Outstanding: $814 million Average Loan Size: $2.3 million (1) Weighted Av
Slide 16: Multi-Family Loans Represent 8% of Total Loan Portfolio
Multi-Family Loans Represent 8% of the Total Loan Portfolio With a Small Average Loan Size, Low LTV and Solid DSCR Total Loan Portfolio Multi-Family Profile (December 31, 2024) Total Multi-Family Loan Commitments: $2.3 billion Total Multi-Family Loans Outstanding: $1.9 billion Average Loan Size: $3.
Slide 17: Noninterest-Bearing Deposit Trends
Noninterest-Bearing Deposit Trends • Growth in the Corporation’s commercial banking business, as well as the historically low levels of interest rates for much of the post-2008 period, led to a generally increasing trend in the percentage of noninterest-bearing deposits. • Growth in commercial custo
Slide 18: Liquidity Profile
Liquidity Profile Available Liquidity December 31, 2024 Estimated Uninsured Deposits December 31, 2024 (dollars in thousands) (dollars in thousands) Cash On-Hand (1) $ 857 Total Deposits $26,129 Estimated Uninsured Deposits $9,690 Federal Reserve Capacity 3,146 Estimated Uninsured Deposits to Total
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-GAAP
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Year Ended (dollars in thousands) Dec 31 Dec 31 2024 2023 Operating net income available to common shareholders Net income available to common shareholders $278,495 $274,032 Less: Other revenue (1,805) 1,855 Plus: Gain on acquisition, net of tax (36,996) - Plus: Loss on secur
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended (dollars in thousands) Dec 31 Sep 30 2024 2024 Operating return on average assets Net income $68,620 $63,206 Less: Other revenue (269) (677) Less: Gain on acquisition, net of tax 2,689 7,706 Plus: Core deposit intangible amortization 6,155 6,155 Plus: Acqui
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Year Ended (dollars in thousands) Dec 31 Dec 31 2024 2023 Operating return on average assets Net income $288,743 $284,280 Less: Other revenue (1,805) 1,855 Less: Gain on acquisition, net of tax (36,996) - Plus: Loss on securities restructuring 20,282 - Plus: Core deposit inta
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended (dollars in thousands) Dec 31 Sep 30 2024 2024 Operating non-interest expense to total average assets Non-interest expense $216,615 $226,089 Less: Intangible amortization (6,282) (6,287) Less: Acquisition-related expense (9,637) (14,195) Less: FDIC special
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended (dollars in thousands) Dec 31 Sep 30 2024 2024 Pre-provision net revenue / average assets Plus: Net interest income $253,659 $258,009 Plus: Non-interest income 65,924 59,673 Less: Non-interest expense (216,615) (226,089) Less: Other revenue (269) (677) Less
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended (dollars in thousands) Dec 31 Sep 30 2024 2024 Operating return on average common shareholders' equity (tangible) Net income available to common shareholders $66,058 $60,644 Less: Other revenue (269) (677) Less: Gain on acquisition, net of tax 2,689 7,706 P
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Year Ended (dollars in thousands) Dec 31 Dec 31 2024 2023 Operating return on average common shareholders' equity (tangible) Net income available to common shareholders $278,495 $274,032 Less: Other revenue (1,805) 1,855 Less: Gain on acquisition, net of tax (36,996) - Plus:
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended (dollars in thousands) Dec 31 Sep 30 Efficiency ratio 2024 2024 Non-interest expense $216,615 $226,089 Less: Acquisition-related expense (9,637) (14,195) Less: FDIC special assessment - 16 Less: FultonFirst implementation and asset disposals (10,001) (9,385
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended (dollars in thousands, except per share data) Dec 31 Sep 30 2024 2024 Tangible book value per share Shareholders' equity $3,197,325 $3,203,943 Less: Goodwill and intangible assets (635,458) (641,739) Less: Preferred stock (192,878) (192,878) Tangible common