Fulton Financial (FULT) - 2024 Q3 - Quarterly Results

Financial Performance - Net income available to common shareholders for Q3 2024 was $60.6 million, a decrease of $31.8 million from Q2 2024[1] - Operating net income for Q3 2024 was $91.3 million, an increase of $8.8 million compared to Q2 2024, representing an all-time high of $0.50 per diluted share[2] - Net income available to common shareholders for the quarter ended September 30, 2024, was $60,644 million, a decrease of 34.4% compared to $92,413 million in the previous quarter[37] - Operating net income available to common shareholders increased to $91,293 million from $82,494 million in the previous quarter, reflecting a growth of 9.7%[37] - Basic earnings per share for Q3 2024 was $0.33, down from $0.53 in the previous quarter[25] - Diluted earnings per share rose to $0.50, up from $0.47 in the previous quarter, representing a 6.4% increase[37] - Total revenue for the quarter was $329.14 million, up from $311.45 million in the previous quarter, indicating a 5.8% growth[40] Income and Expenses - Net interest income totaled $258.0 million, an increase of $16.3 million from the previous quarter, driven by the full-quarter impact of the Acquisition[3] - Non-interest income before investment securities gains was $59.7 million, down from $113.3 million in Q2 2024, primarily due to a $55.1 million change in the gain on acquisition[3] - Non-interest expense increased to $226.1 million, primarily due to an $8.2 million rise in salaries and benefits expense[4] - Total non-interest expense increased to $226,089,000 from $199,488,000 in Q2 2024, primarily driven by higher salaries and employee benefits[23] - Operating non-interest expense was $196.24 million, slightly up from $194.94 million in the previous quarter[40] - Non-interest expense, excluding intangible amortization and acquisition-related expenses, was $226.09 million, up from $199.49 million in the previous quarter[40] Assets and Liabilities - Total assets increased to $32.2 billion, up from $31.8 billion as of June 30, 2024[5] - Total assets increased to $32.19 billion from $31.77 billion in the previous quarter[22] - Total liabilities increased to $28.98 billion from $28.67 billion in the previous quarter[22] - Total shareholders' equity increased to $3,160,322 thousand as of September 30, 2024, compared to $2,952,671 thousand in June 2024, reflecting a growth of 7.05%[27] - Total interest-earning assets reached $30,013,278 thousand with a yield of 5.74% for the three months ended September 30, 2024, compared to $28,867,850 thousand and a yield of 5.64% in June 2024[27] Credit Quality - The provision for credit losses was $11.9 million, a decrease from $32.1 million in Q2 2024[8] - Provision for credit losses decreased to $11,929,000 from $32,056,000 in the previous quarter, indicating improved credit quality[23] - Non-performing assets were $205.0 million, or 0.64% of total assets, up from $174.0 million, or 0.55% of total assets, in the previous quarter[8] - Non-performing loans to total net loans increased to 0.84% from 0.72% in the previous quarter[19] - The allowance for credit losses related to net loans increased to $375,961 thousand as of September 30, 2024, compared to $293,404 thousand a year earlier, reflecting a significant increase of 28.2%[34] Deposits and Loans - Customer deposits increased by $745.0 million compared to the prior quarter, excluding brokered deposits[2] - Total deposits increased to $26.15 billion from $25.56 billion in the previous quarter[22] - Net loans increased to $24.18 billion from $24.11 billion in the previous quarter[22] - Total net loans increased to $24,147,801 thousand as of September 30, 2024, up from $23,345,914 thousand in June 2024, representing a growth of 3.44%[28] - Demand deposits rose to $7,668,583 thousand with an interest rate of 2.01% for September 2024, compared to $7,080,302 thousand and 1.80% in June 2024[27] Shareholder Equity - Common equity tier 1 capital rose to 10.5%, up from 10.3% in the prior quarter[2] - Common shareholders' equity increased to $3,203,943 million from $3,101,609 million, marking a growth of 3.3%[37] - Tangible common equity ratio improved to 7.5% from 7.3% in the previous quarter[19] - Tangible common equity to tangible assets ratio increased to 7.51% as of September 30, 2024, up from 7.26% in June 2024[40] Efficiency and Management - Efficiency ratio improved to 59.62%, down from 62.59% in the prior quarter, indicating better cost management[40] - The efficiency ratio for operating non-interest expenses to total average assets was 2.45%, a slight decrease from 2.55% in the previous quarter[40] - The company emphasized the importance of non-GAAP financial measures for assessing trends in its results of operations and financial condition[36]