Summary of Fulton Financial Q1 2026 Earnings Call

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 decline of $4 million from the previous quarter.

Net Interest Margin: 3.58%, down 1 basis point.

Efficiency Ratio: Improved to 56.7%.

Nonperforming Assets: Decreased to 55 basis points of total assets from 58 basis points.

Total Noninterest Income: $69.8 million, flat compared to the prior quarter.

Total Noninterest Expense: $200.3 million, down $12.7 million from the previous quarter.

2Strategic Updates and Business Highlights

Loan Growth: Solid loan activity, particularly in commercial mortgages, with a $200 million portfolio purchase enhancing growth.

Deposit Trends: Positive core deposit growth, with an increase in noninterest-bearing demand deposits.

Wealth Management: Revenue increased by 12% year-over-year, contributing to overall fee income growth of over 9%.

Acquisition of Blue Foundry Bancorp: Completed on April 1, expected to be immediately accretive to earnings and tangible book value, with integration planning progressing well.

3Forward Guidance and Outlook

Full-Year 2026 Guidance: Affirmed with expectations of mid-single-digit loan growth, controlled expense growth, and strong capital generation.

Interest Rate Assumptions: Updated to reflect a 25 basis point cut in July instead of March.

Expense Projections: Anticipated to rise towards $200 million by year-end, including $27 million in expenses related to Blue Foundry.

4Bad News, Challenges, or Points of Concern

Loan Portfolio Dynamics: Decline in construction balances and runoff in the indirect auto portfolio noted as headwinds.

Market Volatility: Ongoing geopolitical developments could impact economic conditions and customer sentiment.

Credit Metrics: While improving, there is caution regarding credit quality and the potential for future economic pressures.

5Notable Q&A Insights

Expense Management: CFO Rick Kraemer indicated that expenses are expected to rise but remain within guidance, with a focus on achieving cost savings from the Blue Foundry acquisition.

Loan Demand: CEO Curt Myers highlighted that while loan pipelines are building, borrower sentiment remains cautious, impacting growth.

Capital Planning: Discussion on maintaining capital flexibility for organic growth and potential acquisitions, with ongoing share repurchases seen as an option depending on market conditions.

NIM Expectations: Anticipated to improve in Q2 due to purchase accounting accretion from the Blue Foundry acquisition and stable asset repricing dynamics. Overall, Fulton Financial reported a strong start to 2026, with solid financial performance and strategic initiatives in place, although challenges in certain loan segments and market conditions were acknowledged.