The following is a summary of the Fulton Financial Corporation (FULT) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Fulton Financial reported operating earnings per share of $0.50 for the quarter, reflecting a record for the company.

• Net interest income increased by $16 million linked-quarter, resulting in a 6 basis point increase in net interest margin to 3.49%.

• Loan growth was modest at $70 million or 1% on an annualized basis with notable performance in both commercial and consumer lending.

• Total deposits increased by $592 million, or 9% linked-quarter, with strong growth in time deposits, money market products, and interest-bearing demand accounts.

Business Progress:

• Fulton Financial Corporation celebrated the integration of Republic Bank and the advancement of the Fulton First initiative which aims to streamline operations and focus on core business areas.

• Leadership appointments in key segments like commercial banking and business banking have been made to align resources more efficiently and support growth.

• The bank has successfully consolidated 16 financial centers as part of these initiatives, exceeding the originally planned number.

• The implementation of Fulton First is set to generate significant cost savings, projected at $50 million annually by 2026, with $25 million expected in 2025.

• The strategic exit from the indirect auto lending channel reflects a focus on higher margin and relational products.

Opportunities:

• The ongoing integration of Republic Bank and the estimated 40% cost-savings illustrate significant potential for enhancing operational efficiency and profitability.

• The transformation under the Fulton First initiative aims to not only optimize operational costs but also to accelerate growth by focusing on higher profitability and customer-centric business segments.

Risks:

• The acknowledgment of challenges in high interest rate environments by some customers indicates potential credit risks.

• Increased non-performing loans, noted across different geographies and loan types, pose a risk under the current economic conditions.

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