FULTON FINANCIAL CORP Q4 FY2024 earnings call

• Completed and integrated the Republic transaction, delivering strong financial results. - Made progress on FultonFirst transformation to simplify operating model. - Strengthened balance sheet via sale-leaseback and investment portfolio restructuring. - 2024 total revenue $1.2 billion (record), operating earnings per share $1.85 (record), dividends $0.69 per share (6% increase). - Fourth quarter: operating earnings $0.48 per share, deposits relatively flat, loans declined $131 million, noninterest income $68.6 million (excluding bargain purchase gain adjustment), provision for credit losses $16.7 million.

For the year, Legacy Fulton deposits grew $878 million (4.1%), with total deposits including Republic growing $4.6 billion (21.3%). Legacy Fulton loans grew $316 million (1.5%), and total loans including Republic grew $2.7 billion (12.6%). Net interest margin was 3.42%. Noninterest income grew 13.4% excluding certain items, with wealth management growing $9.2 million (12.2%).

• 2025 net interest income expected to be in range $995M-$1.02B. - Provision for credit losses range $60M-$80M. - Noninterest income range $265M-$280M. - Noninterest expense range $755M-$775M. - Effective tax rate approximately 18%. - Expect low to mid-single-digit growth on both sides of balance sheet.

• Volatile interest rate environment. - Impact of higher rates and costs on credit environment. - Uncertainties in deposit runoff and loan growth dynamics.

Q: Clarification on average earning asset guidance, balance sheet growth.

A: Focus on NII guidance, low to mid-single-digit growth on balance sheet.

Q: Provision guidance, loss rates.

A: Similar to 2024, stable relative to experience.

Q: NII guide, margin cadence.

A: Staying away from specific margin guidance, cadence with possible initial dip then gradual increase.

Q: Buybacks, capital use.

A: Buybacks third in line, priority remains same.

Q: FultonFirst cost saves, deposit trends.

A: $5M run rate in Q4, deposit base stable, ahead of initial runoff assumptions.

Q: Purchase accounting accretion, loan yields, deposit beta.

A: Accretion ~$13.5M-$14M quarterly, loan yields directionally to rebound, deposit beta approaching goals.

Q: Loan growth, commercial pipelines.

A: Focus on diversification, headwinds in indirect auto, commercial pipeline flat, waiting for borrower confidence.

Q: M&A priorities, FultonFirst revenue.

A: M&A possible, FultonFirst expense-based, growth initiatives over time.