Fulton Financial (US:FULT)2026-01-22 16:02Financial Data and Key Metrics Changes - Operating earnings per share reached a record $2.16 for 2025, reflecting strong performance compared to 2024 [5] - Customer deposits increased by $449 million, driven by enhanced deposit initiatives and a 25% growth in consumer demand deposit account openings year over year [6] - Operating return on assets improved by 17 basis points to 1.28%, and net interest margin increased by 9 basis points to 3.51% [9][10] Business Line Data and Key Metrics Changes - Non-interest income, excluding certain gains and losses, rose to $277 million, up almost 7% year over year, with commercial fees growing by 8% [7][8] - Wealth assets under management surpassed $17 billion, with a 17% increase in referrals from financial centers to advisors [8] Market Data and Key Metrics Changes - Total deposits grew by $257 million, or 3.9%, with balanced growth across categories [14] - Municipal deposits decreased by $254 million, while commercial deposits remained stable [14] Company Strategy and Development Direction - The company aims to create long-term value by growing the business, effectively serving customers, and maintaining operational excellence [5] - The acquisition of Blue Foundry Bancorp is expected to strengthen the company's footprint and enhance its community banking model [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to historical loan growth rates in the mid-single-digit range for 2026, supported by increased productivity and a strong pipeline [27] - The company anticipates continued strength in 2026, building on momentum and delivering strong results for stakeholders [11] Other Important Information - Operating expenses grew by only 1.9% in 2025, and when normalizing for the full year of Republic First expenses, they would have decreased by 2.7% [9] - The company repurchased $59 million of common stock and increased its dividend, while maintaining the highest capital ratios seen in over a decade [10][19] Q&A Session Summary Question: Loan growth guidance for 2026 - Management noted that over $800 million of headwinds from strategic actions in 2025 are expected to moderate, allowing for a return to mid-single-digit organic growth [26] Question: Pay downs assumptions - Management indicated that they do not foresee significant changes in normal portfolio pay downs and prepayments year over year [28] Question: Loan mix changes with new hires - Management emphasized a diversified loan book strategy, expecting growth across all segments, particularly in commercial and industrial (C&I) and commercial real estate (CRE) [36] Question: Deposit growth and composition - Management highlighted strong momentum in consumer and small business deposits, with a focus on low-cost operating deposits [46] Question: Commercial interest rate swap income - Management stated that swap income correlates with larger originations and is expected to fluctuate accordingly [52] Question: Other fee income expectations - Management noted that volatility in other fee income is driven by equity method investments, with a normalized level expected around $2.5 million [53]