Fulton Financial Corporation Reports $278.5 Million Net Income for 2024, Acquires Republic First Bank

Fulton Financial Corporation (FULT) reported net income available to common shareholders of $278.5 million for the year ended December 31, 2024, a $4.5 million increase compared to 2023. Diluted net income per share was $1.57, a $0.07 decrease from 2023. The 2024 results included a preliminary gain on acquisition of $37 million (net of tax), a core deposit intangible (CDI) of $92.6 million resulting in $15.7 million in amortization expense, a $23.4 million provision for credit losses related to acquired non-purchased credit deteriorated (PCD) loans, $37.6 million in acquisition-related expenses, and $32 million in FultonFirst initiative and asset disposal costs. The company's return on average assets was 0.95%, and return on average common shareholders' equity was 9.83%.

Significant changes from the previous year included a $309.1 million increase in fully taxable-equivalent (FTE) net interest income, primarily due to increases in yield and volume of net loans. Interest expense increased by $202.9 million, mainly due to higher rates on interest-bearing liabilities. Non-interest income increased by $48.1 million (21.1%), driven by growth in wealth management, commercial banking, and consumer banking revenues, partially offset by investment securities losses. Non-interest expense increased by $140.6 million (20.7%), largely due to acquired operations from the Republic First Transaction and increased salaries and benefits.

A key strategic development was the April 26, 2024 acquisition of substantially all assets and liabilities of Republic First Bank from the FDIC. This acquisition added approximately $4.8 billion in assets and $5.6 billion in liabilities, enhancing the company's presence in Philadelphia and New Jersey. Related to this acquisition, the company closed 13 financial center locations, incurring $9.8 million in pre-tax costs. Additionally, the company completed a common stock offering raising approximately $272.6 million in net proceeds and engaged in a sale-leaseback transaction generating a pre-tax gain of $20.3 million. The company also retired $168.8 million in subordinated notes.

As of December 31, 2024, Fulton Financial Corporation employed approximately 3,400 employees and operated 216 financial centers. The company's total assets were $32.1 billion, with deposits totaling $26.1 billion and net loans of $24 billion. Non-performing assets were 0.69% of total assets, and the allowance for credit losses (ACL) was $379.2 million. The company exceeded all regulatory capital requirements.

The company noted several risk factors, including general economic and market conditions, interest rate and credit risks, liquidity and capital risks, operational risks, cybersecurity risks, and risks related to accounting estimates and strategic growth. The company also highlighted its ongoing efforts to manage these risks and emphasized that future results may differ materially from forward-looking statements.