Fulton Financial (US:FULT)2026-01-22 16:02Financial Data and Key Metrics Changes - Operating earnings per share for 2025 reached a record $2.16, reflecting strong performance compared to 2024 [9] - Customer deposits increased by $449 million, with a 25% year-over-year growth in consumer demand deposit account openings [10] - Net interest margin improved by 9 basis points to 3.51%, ending the fourth quarter at 3.59% despite Fed rate cuts [18] - Operating return on assets increased by 17 basis points to 1.28% [17] - Tangible book value per share grew by 15% [19] 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 [13] - Commercial fees increased by 8%, driven by a 17% growth in cash management revenue [14] - Wealth assets under management surpassed $17 billion, with a 17% increase in referrals from financial centers [15] Market Data and Key Metrics Changes - The loan-to-deposit ratio remained stable at 91% [29] - Total deposits grew by $257 million, or 3.9%, with balanced growth across categories [27] - Municipal deposits decreased by $254 million, while other wholesale funding declined by $29 million [28] Company Strategy and Development Direction - The company aims to create long-term value by growing the business and delivering effectively for customers [9] - The acquisition of Blue Foundry Bancorp is expected to strengthen the company's footprint and community banking model [21] - The company plans to return to historical loan growth rates in the mid-single-digit range in 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit loan growth in 2026, citing the moderation of previous headwinds [46] - The company is optimistic about opportunities in 2026, focusing on continued strength and growth [22] - Credit metrics improved, with non-performing assets declining to 0.58% of total assets [37] Other Important Information - Operating expenses grew by 1.9% in 2025, but would have decreased by 2.7% when normalizing for prior year expenses [17] - The company repurchased $59 million of common stock and increased its dividend [19] - The effective tax rate is projected to be between 18.5% and 19.5% for 2026 [40] Q&A Session Summary Question: Loan growth guidance for 2026 - Management indicated that headwinds from strategic actions in 2025 will moderate, allowing for a return to mid-single-digit growth [46] Question: Pay downs assumptions - Management expects normal portfolio pay downs and prepayments to remain consistent year-over-year [50] Question: Loss provision guidance - The allowance for credit losses is expected to drift lower in a stable credit environment, with charge-offs remaining flat [52] Question: Loan mix changes with new hires - Management aims for diversified growth across all loan segments, with opportunities in CRE, C&I, and business banking [60] Question: Deposit growth and composition - Management noted strong momentum in consumer and small business deposits, with a focus on low-cost operating deposits [71] Question: Commercial interest rate swap income - Swap income is expected to correlate with originations, which have shown growth in the fourth quarter [78] Question: Other fee income expectations - Other fee income is expected to normalize around $2.5 million, influenced by quarterly volatility [79]