Yahoo Finance Fulton Financial Corp (FULT) Q1 2024 Earnings Call Transcript Highlights: Key Financial Metrics ...
Operating Earnings Per Share (EPS): $0.4 for Q1 2024
Net Income: $65.4 million for Q1 2024
Loan Growth: Increased by $93 million or 2% annualized
Deposit Growth: Increased by $204 million or 4% annualized
Net Interest Margin: 3.32%, a decrease of four basis points from the previous quarter
Noninterest Income: $57.1 million, with record results in Wealth Management
Provision for Credit Losses: $10.9 million, up from $9.8 million last quarter
Noninterest Expenses: $170 million, consistent with prior guidance
Net Interest Income: $207 million, a decline of $5 million from the previous quarter
Wealth Management Revenues: $20.2 million, surpassing $20 million for the first time
Loan to Deposit Ratio: Ended the quarter at 98.6%
Release Date: April 17, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the Fulton First initiative and its expected impact on expenses and operational efficiencies? A: (Curtis Myers - Chairman & CEO, Fulton Financial Corp) The Fulton First initiative is focused on driving strategic transformation through simplicity, focus, and productivity. We anticipate expense savings in the latter half of the year as we begin implementation. This initiative is an 18 to 24-month journey, and we are currently in the early stages of planning and analysis. The full benefits and details will be shared as the plan progresses.
Q: Regarding the guidance on net interest income (NII), how would the absence of a June rate cut affect it? A: (Betsy Chivinski - Interim CFO, Fulton Financial Corp) If there are no rate cuts, we might see NII trending towards the higher end of our guidance range. The impact of rate changes later in the year would be moderate due to their timing.
Q: Could you provide more details on the loan growth expectations for 2024? A: (Curtis Myers - Chairman & CEO, Fulton Financial Corp) We expect loan growth to be at the lower end of our long-term target of 4% to 6% due to current economic conditions. Our focus remains on prudent credit decisions and disciplined pricing.
Q: What are the trends and expectations around the office loan portfolio, particularly in the central business districts? A: (Curtis Myers - Chairman & CEO, Fulton Financial Corp) The office loan portfolio is stable, with no significant maturities that we are concerned about. The largest exposure is in Philadelphia, but the loans are diversified and granular across various geographies.
Q: How are you managing the deposit mix, especially with the expected shift from non-interest-bearing to interest-bearing accounts? A: (Betsy Chivinski - Interim CFO, Fulton Financial Corp) We anticipate a continued but moderate shift from non-interest-bearing to interest-bearing deposits. Our projections have been conservative, and we expect the mix to stabilize as we move through the year.
Q: Can you elaborate on the potential for M&A activities and your strategy in this area? A: (Curtis Myers - Chairman & CEO, Fulton Financial Corp) Our M&A strategy focuses on acquiring community banks in the $1 to $5 billion range and considering strategic partnerships with banks up to $15 billion. We are actively evaluating opportunities that would enhance shareholder value and fit our strategic goals.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
