Executive Summary

Q4 2024 delivered solid operating performance: Operating EPS $0.48 (vs $0.50 in Q3), GAAP EPS $0.36 (vs $0.33), with operating efficiency ratio improving to 58.4% (from 59.6%) and PPNR/Avg Assets rising to 1.63% (from 1.61%) .
Net interest margin compressed 8 bps q/q to 3.41% as 2024 rate cuts flowed through; total cost of deposits fell ~10 bps to 2.14%, cushioning NII pressure; noninterest income rose q/q to $65.9M on smaller bargain-purchase gain adjustment .
Credit remained manageable but normalized: NCOs/avg loans up to 0.22% (from 0.18%), NPAs/assets to 0.69% (from 0.64%), and ACL/loans up to 1.58% (from 1.56%) .
2025 operating guidance implies stable earnings power: NII $995M–$1.02B (non-FTE), operating opex $755M–$775M, provision $60M–$80M, noninterest income $265M–$280M, ETR ~18%; FultonFirst and Republic saves expected to keep expenses flat y/y on an operating basis .
Capital actions and catalysts: Dividend increased to $0.18 in Dec. 2024 and a new 2025 repurchase authorization up to $125M; execution of FultonFirst cost saves and CD repricing tailwinds are key stock catalysts into 2025 .

What Went Well and What Went Wrong

What Went Well
- Operating profitability and efficiency improved despite NIM pressure: operating efficiency ratio 58.4% (from 59.6%); PPNR/Avg Assets 1.63% (from 1.61%) .
- Deposit costs declined 10 bps to 2.14%; average NIB deposits increased $62.2M q/q, supporting funding mix resilience .
- Integration execution: Republic systems conversion completed; cost saves “in line” and contributing; FultonFirst run-rate saves ~<$5M> in Q4 with ~$25M planned in 2025 and >$50M annualized by 2026; management: “we are excited to see the full benefits impact our results in 2025” .
What Went Wrong
- NIM contracted 8 bps q/q to 3.41% on rapid Fed easing; loan yields fell 23 bps to 5.97% even as deposit costs fell, pressuring NII (down $4.4M q/q) .
- Credit normalization: NCOs/avg loans up to 0.22% (from 0.18%); NPAs/assets up to 0.69% (from 0.64%); NPLs/loans to 0.92% (from 0.84%) .
- Loan balances declined $131M q/q as planned runoff (indirect auto) and acquired-loan repositioning offset originations; consumer fees modestly softer q/q .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Total Revenue ($M)	$275.6	$329.1	$326.3
Net Interest Income ($M)	$212.0	$258.0	$253.7
Noninterest Income ($M)	$59.4	$59.7	$65.9
GAAP Diluted EPS ($)	$0.37	$0.33	$0.36
Operating Diluted EPS ($)	$0.42	$0.50	$0.48
Net Interest Margin (%)	3.36%	3.49%	3.41%
Operating Efficiency Ratio (%)	62.04%	59.62%	58.43%
ROAA (%)	0.93%	0.79%	0.85%
Operating ROAA (%)	1.03%	1.17%	1.14%

Balance Sheet and Credit

Metric	Q4 2023	Q3 2024	Q4 2024
Total Assets (End, $B)	$27.57	$32.19	$32.07
Deposits (End, $B)	$21.54	$26.15	$26.13
Net Loans (End, $B)	$21.35	$24.18	$24.04
CET1 Ratio (%)	10.3%	10.5%	10.6%
NCOs / Avg Loans (%)	0.15%	0.18%	0.22%
NPAs / Total Assets (%)	0.56%	0.64%	0.69%
ACL / Loans (%)	1.37%	1.56%	1.58%

Selected KPIs

KPI	Q3 2024	Q4 2024
Total Cost of Deposits (%)	~2.24% (declined 10 bps q/q)	2.14%
Operating Noninterest Expense ($M)	$196.2	$190.7
PPNR / Avg Assets (annualized, %)	1.61%	1.63%

Noninterest Income Breakdown (Consolidated)

Category ($000s)	Q3 2024	Q4 2024
Commercial Banking	22,289	22,454
Wealth Management	21,596	22,002
Consumer Banking	14,928	14,309
Mortgage Banking	3,142	3,759
Gain on Acquisition (net of tax)	(7,706)	(2,689)
Other	5,425	6,089
Total Noninterest Income	59,673	65,924

Note on estimates: S&P Global consensus estimates were temporarily unavailable at request time; therefore, no estimate comparisons are presented (S&P Global data unavailable).

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Income (non-FTE)	FY 2025	N/A	$995M–$1.020B	New FY guide
Provision for Credit Losses	FY 2025	N/A	$60M–$80M	New FY guide
Noninterest Income	FY 2025	N/A	$265M–$280M	New FY guide
Operating Noninterest Expense	FY 2025	N/A	$755M–$775M	New FY guide; expenses flat y/y (operating)
Effective Tax Rate	FY 2025	N/A	~18%	New FY guide
CDI Amortization (non-operating)	FY 2025	N/A	~$22.5M (2H step down)	New detail
FultonFirst Implementation (non-operating)	FY 2025	N/A	~$14M	New detail
Common Dividend	Q1 2025	$0.17	$0.18	Raised
Repurchase Authorization	CY 2025	N/A	Up to $125M	New program

Assumptions: Management incorporates two 25 bp Fed cuts (Mar, Jun 2025) in guidance .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024 and Q3 2024)	Current Period (Q4 2024)	Trend
Net Interest Margin / NII	Mgmt avoided explicit NIM guide; asset sensitivity reduced; deposit betas moderating; NII at high end of 2024 guide despite late-year cuts .	NIM down 8 bps; NII cadence: slightly lower in Q1 then drift higher across 2025; added $900M receive-fixed hedges .	Slight near-term pressure, improving trajectory in 2025.
Deposit Costs / Betas	Active repricing of rate-sensitive products; modeled downcycle betas ~10% near term, ~30% LT .	Total deposit cost down 10 bps q/q to 2.14%; aiming for mid-20s NMD cycle betas; sizable CD maturities to reprice lower .	Favorable funding tailwinds.
Republic Integration	40% cost-saves target; Q3 commentary on January 2025 full run-rate .	Systems conversion complete; saves “in line”; visible Q4 contribution; deposit base stable .	Integration executed, benefits building.
FultonFirst Program	$25M 2025 saves, >$50M fully realized by 2026; expense flat in 2025 (ex-CDI) .	~$5M quarterly run-rate saves in Q4; $25M 2025; >$50M 2026; reinvestment for growth (small business) .	Execution progressing; growth reinvestment.
Credit / CRE & Office	Credit stable; watch list in high-rate context; ACL ~1.56% in Q3; diversified NPL increase .	NCOs and NPAs up modestly; ACL/loans 1.58%; Office ~3% of loans, low LTV/DSCR per deck .	Normalization, well reserved; office manageable exposure.
AI / Technology	N/A in prior calls.	Announced adoption of NICE CXone Mpower Copilot/Autopilot for AI-assisted CX to boost efficiency and service .	Strategic digital investment.
Capital & Buybacks	Buybacks third priority; deferred to 2025 .	Same priority; new 2025 repurchase authorization up to $125M .	Optionality added for 2025.

Management Commentary

“2024 was a record year for Fulton. Operating diluted earnings per share of $1.85 represents an 8% increase over the prior year.” – Curtis J. Myers, Chairman & CEO .
“During the quarter, we completed the systems conversion [of Republic]… we are now realizing cost savings in line with our initial assumptions… excited to see the full benefits impact our results in 2025.” – Curtis Myers .
“Net interest income… decreased… while net interest margin declined by 8 bps to 3.41%… primarily driven by the effects of 100 bps of easing by the Fed… average cost of total deposits decreased 10 bps to 2.14%.” – Richard Kraemer, CFO .
“For 2025, our operating guidance… NII $995M-$1.02B; provision $60M-$80M; noninterest income $265M-$280M; operating noninterest expense $755M-$775M; tax rate ~18%.” – Richard Kraemer .

Q&A Highlights

Margin/NII cadence: No explicit NIM guide; NII expected slightly lower in Q1’25 (day count/growth), then trend higher through 2025 as repricing tailwinds accrue .
Deposit betas and CD repricing: Near-term NMD cycle betas mid-20s; ~$4.5B CDs maturing in 2025 at ~4.36% average cost, expected to reprice 50–80 bps lower if market stable .
Accretion income: Purchase accounting accretion expected $13.5–$14.0M per quarter in 2025, drifting slightly lower over time .
Loan growth: Low-to-mid single-digit targeted across categories; headwinds from indirect auto runoff (~$40M/quarter) and acquired-loan repositioning should moderate over 2025 .
Capital deployment: Buybacks remain third priority; 2025 authorization provides flexibility; M&A (community banks $1–$5B) remains strategic but disciplined .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at request time due to temporary access limits; as a result, we do not present beat/miss analysis versus consensus (S&P Global data unavailable).

Key Takeaways for Investors

Operating earnings quality improved: efficiency ratio fell to 58.4% and PPNR/Assets improved, signaling resilient core profitability into 2025 despite NIM headwinds .
Funding tailwinds emerging: total deposit costs fell to 2.14% with more CD repricing ahead; this should offset some asset yield pressure and support NII trajectory .
Expense discipline is the 2025 story: Operating opex guided flat y/y on $755M–$775M with visible FultonFirst and Republic saves, a key driver of operating leverage .
Credit normalization but contained: higher NPAs/NCOs, yet ACL/loans up to 1.58% and office exposure low (3% of loans) with conservative LTV/DSCR; watch continued trends .
Capital return optionality: Dividend raised to $0.18 and new $125M repurchase authorization for 2025; deployment pace will reflect growth needs and market conditions .
2025 outlook: Management embeds two rate cuts; expects NII to build after Q1; stable deposit mix and hedging position should dampen rate sensitivity .
Execution catalyst: Full run-rate realization of FultonFirst and Republic cost saves plus AI-enabled CX efficiency (NICE CXone) offer incremental earnings support beyond rate dynamics .

Management’s narrative: 2024 was a “record” operating year, and 2025 is framed around expense control, stable-to-improving NII cadence, and continued prudent credit management—clear, actionable catalysts for positioning ahead of cost saves and repricing benefits .

FULTON FINANCIAL CORP (FULT)·Q4 2024 Earnings Summary