Fulton Financial Q1 2026 Earnings Call Summary

1Key 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.

2Strategic 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.

3Forward 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.

4Bad 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.

5Notable 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.