In This Article:
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Operating Earnings Per Share: $0.52, a $0.04 increase linked quarter.
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Operating Efficiency Ratio: 56.7%.
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Operating Return on Assets: 1.25%.
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Operating Return on Average Tangible Common Equity: 15.95%.
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Tangible Book Value Per Share Growth: 13.8% annualized.
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Deposit Growth: $200 million or 3% driven by interest-bearing money market products.
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Total Loans Decline: $182 million during the quarter.
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Net Interest Income: $251 million, a $2.5 million decrease linked quarter.
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Net Interest Margin: Increased 2 basis points to 3.43%.
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Loan Yields: Declined 11 basis points to 5.86%.
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Average Cost of Total Deposits: Decreased 11 basis points to 2.03%.
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Noninterest Income: $67.2 million.
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Non-interest Expense: $182.9 million, a decrease of $7.8 million linked quarter.
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Provision Expense: Declined approximately $2.8 million to $13.9 million.
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Allowance for Credit Losses to Total Loans Ratio: Increased to 159%.
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Common Equity Tier 1 (CET1) Ratio: 11%.
Release Date: April 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fulton Financial Corp (NASDAQ:FULT) reported an increase in operating earnings per share to $0.52, a $0.04 rise from the previous quarter.
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The company achieved a reduction in total operating expenses, contributing to an improved operating efficiency ratio of 56.7%.
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FULT maintained strong liquidity and grew its equity base, with tangible book value per share increasing by 13.8% on an annualized basis.
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Customer deposit growth was solid, with a $200 million increase driven by interest-bearing money market products.
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The company reported improvements in asset quality metrics, including a decline in the non-performing loan ratio and net charge-offs.
Negative Points
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Total loans declined by $182 million during the quarter, impacted by strategic decisions and portfolio management activities.
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Loan yields decreased by 11 basis points to 5.86%, contributing to a $2.5 million decrease in net interest income.
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The allowance for credit losses to total loans ratio increased, indicating a cautious outlook on credit quality.
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FULT's non-interest income declined modestly due to day count and transactional activity, with fee income as a percentage of revenue at 21%.
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The company anticipates potential headwinds in net interest income and non-interest income due to a slower growth environment and possible interest rate cuts.
Q & A Highlights
Q: Can you talk more about loan growth and whether you expect it to pick up in the second half of the year? A: (Curtis Myers, CEO) Overall pipelines have increased year-over-year, but we remain cautious about the pull-through rate due to customer uncertainty. We have a good pipeline, but conversion is uncertain given the environment. Most of the first quarter's decline was due to strategic headwinds and specific actions we took.