Fulton Financial Corporation reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable increase in total assets, which rose to $32.2 billion, up from $27.6 billion at the end of 2023. This growth was primarily driven by the acquisition of Republic First Bank, which added approximately $4.8 billion in assets and $5.6 billion in liabilities, enhancing Fulton’s presence in the Philadelphia and New Jersey markets.

As of September 30, 2024, cash and cash equivalents surged to $1.4 billion, compared to $549.7 million at the end of 2023. Investment securities also saw a substantial increase, reaching $3.3 billion, up from $2.4 billion. Net loans increased to $24.2 billion, reflecting a 13.2% rise from $21.4 billion at the end of 2023, largely due to loans acquired in the Republic First Transaction.

For the third quarter of 2024, Fulton reported interest income of $427.7 million, a significant increase from $330.4 million in the same period of 2023. Net interest income for the quarter was $258.0 million, up from $213.8 million year-over-year. However, net income for the quarter decreased to $63.2 million from $72.1 million in Q3 2023, with net income available to common shareholders dropping to $60.6 million from $69.5 million. The diluted earnings per share fell to $0.33 from $0.42.

Non-interest income for the third quarter increased to $59.7 million, compared to $56.0 million in the prior year, driven by growth in wealth management and consumer banking income. However, total non-interest expenses rose sharply to $226.1 million, up from $171.0 million, largely due to acquisition-related costs and increased salaries and benefits.

The provision for credit losses for the third quarter was $12.3 million, up from $10.4 million in Q3 2023, reflecting the impact of the Republic First Transaction. Non-performing loans increased to $202.1 million, up from $153.3 million, indicating a rise in credit risk.

Fulton also undertook strategic initiatives, including the closure of 13 financial center offices, which incurred pre-tax costs of approximately $9.8 million. The company completed a common stock offering in May 2024, raising approximately $272.6 million for general corporate purposes. The efficiency ratio improved to 59.6% from 61.5% in the prior year, indicating better operational efficiency.

Overall, while Fulton Financial Corporation demonstrated strong asset growth and increased interest income, it faced challenges in profitability and rising non-interest expenses, influenced by its recent acquisition and strategic restructuring efforts.