FULT — Fulton Financial Corporation

Fulton Financial Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Operating Earnings: $99.7 million, or $0.55 per diluted share, consistent with the previous quarter.
• GAAP Earnings: $0.51 per diluted share.
• Return on Assets: 1.30%.
• Return on Tangible Common Equity: 14.76%.
• Net Interest Income: $262 million, a decrease of $4 million due to day count and lower yields.
• Net Interest Margin: 3.58%, down 1 basis point from Q4 2025.
• Efficiency Ratio: Improved to 56.7%.
• Nonperforming Assets: Decreased to 55 basis points of total assets from 58 basis points in Q4 2025.
• Credit Loss Provision: $14.4 million, with an allowance for credit losses at 1.51% of total loans.
• CET1 Ratio: Increased to approximately 11.9%.
• Share Repurchases: Approximately $24.5 million executed during the quarter.

2. Strategic Updates and Business Highlights

• Continued focus on long-term value creation and community banking model.
• Successful acquisition of Blue Foundry Bancorp, enhancing market presence in Northern New Jersey.
• Strong loan origination activity, particularly in commercial mortgages, with pipelines building.
• Noninterest income steady at over 20% of total revenue, with a 12% year-over-year increase in wealth management revenue.
• Ongoing investments in talent and capabilities to drive growth and customer engagement.

3. Forward Guidance and Outlook

• Full-year 2026 operating guidance reaffirmed, with expectations for mid-single-digit loan growth and controlled expense growth.
• Anticipated a 25 basis point interest rate cut in July, impacting net interest income expectations.
• Integration of Blue Foundry expected to be earnings and tangible book value accretive, with significant revenue enhancement opportunities.

4. Bad News, Challenges, or Points of Concern

• Decline in construction loan balances and planned runoff of the indirect auto portfolio.
• Ongoing geopolitical developments may impact economic conditions and customer sentiment.
• Competitive pressures in the lending market, particularly in construction-to-permanent loans, leading to cautious origination strategies.
• Potential challenges in maintaining deposit growth levels post-acquisition due to changes in deposit composition.

5. Notable Q&A Insights

• Management expressed confidence in maintaining core deposit growth, although fluctuations are expected due to seasonality.
• Classified and criticized loan metrics are trending positively, with nonperforming assets decreasing.
• Future expense growth anticipated to reach approximately $200 million by year-end, factoring in Blue Foundry integration costs.
• Management indicated a balanced approach to capital allocation, with share repurchases dependent on organic growth opportunities and market conditions.
• The acquisition of Blue Foundry is seen as a strategic opportunity to enhance market presence and leverage existing capabilities for growth.

Overall, Fulton Financial demonstrated solid performance in Q1 2026, with a focus on strategic growth initiatives and prudent risk management, despite facing some headwinds in specific loan categories and competitive pressures.