Fulton Financial Corporation (FULT) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call highlighted strong financial performance, with increased deposits, organic loan growth, and improved net interest margin. The company's strategic actions to derisk and focus on growth sectors like CRE and business banking are promising. Despite some unclear guidance in the Q&A, the overall sentiment is positive, supported by raised guidance for net interest income and fee income. The market cap suggests a moderate reaction, leading to a positive prediction of 2% to 8% stock price increase.
Key Financial Performance
Operating earnings per share $2.16, a new record, with reasons including solid balance sheet maintenance and disciplined expense management.
Customer deposits Grew by $449 million, driven by enhanced deposit initiatives, increased customer engagement, and a 25% growth in consumer demand deposit account openings year-over-year.
Business banking deposits Raised over $133 million in lower-cost operating deposits, attributed to the focused and expanded business banking team.
Organic loan growth Despite a $800 million headwind from strategic actions, overall net loan growth was achieved year-over-year, supported by consistent growth in quarterly originations.
Noninterest income $277 million, up almost 7% year-over-year, driven by broad-based growth including an 8% increase in commercial fees and 17% growth in cash management revenue.
Wealth assets under management and administration Surpassed $17 billion, with referrals from financial centers to advisers increasing 17% or almost $50 million year-over-year.
Operating expenses Grew by a modest 1.9% in 2025, but when normalized for Republic First expenses, operating expenses were down 2.7% year-over-year.
Operating return on assets Improved by 17 basis points to 1.28%, attributed to greater efficiencies across the bank.
Loan-to-deposit ratio Ended the year at 91%, allowing for continued balance sheet flexibility.
Net interest margin Increased 9 basis points to 3.51% year-over-year, ending the fourth quarter at 3.59%, despite several Fed rate cuts.
Tangible book value per share Grew by 15%, supported by strong earnings, higher capital ratios, increased dividends, and $59 million in stock repurchases.
Nonperforming assets Declined 11 basis points to 58 basis points of total assets, reflecting improved credit metrics.
Net charge-offs Remained historically low at 21 basis points as a percentage of average loans.
Allowance for loan losses Ended the year at 1.51% of total loans, indicating strong credit positioning.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Noninterest Income Growth: Noninterest income of $277 million was up almost 7% in 2025, driven by commercial fees (8% growth) and cash management revenue (17% growth). Wealth assets under management surpassed $17 billion, with referrals increasing by 17%.
Market Expansion: Acquisition of Blue Foundry Bancorp announced in November 2025, expanding presence in attractive markets and reinforcing the community banking model.
Deposit Growth: Customer deposits grew by $449 million, with a 25% increase in consumer demand deposit account openings year-over-year. Business banking team raised $133 million in lower-cost operating deposits.
Loan Growth: Net loan growth achieved despite $800 million headwind from strategic actions. Loan growth expected to return to mid-single-digit range in 2026.
Expense Management: Operating expenses grew modestly by 1.9% in 2025. Normalized expenses would have been down 2.7% year-over-year, contributing to profitability and efficiency.
Net Interest Margin: Net interest margin increased by 9 basis points to 3.51% in 2025, ending the fourth quarter at 3.59% despite Fed rate cuts.
Strategic Shifts: Strategic actions included the acquisition of Blue Foundry Bancorp and proactive management of loan portfolio, including runoff of $800 million in non-aligned credits.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Loan Portfolio Management: The company faced an $800 million headwind in 2025 due to strategic actions to work certain credits out of the portfolio, including a $30 million runoff in indirect auto loans and $211 million in adversely rated loans. This could impact future loan growth and portfolio stability.
Interest Rate Environment: Despite Fed rate cuts, the company managed to expand its net interest margin. However, declining short-term rates and the repricing of fixed-rate assets could pose challenges to maintaining margins in the future.
Deposit Growth and Costs: While deposits grew, the company faces challenges in balancing deposit growth with managing deposit costs, especially in a declining interest rate environment.
Acquisition Integration: The acquisition of Blue Foundry Bancorp presents integration risks, including potential challenges in aligning operations, systems, and cultures, which could impact efficiency and customer satisfaction.
Expense Management: Operating expenses increased in Q4 2025 due to higher variable compensation, snow removal costs, and elevated healthcare claims. Managing such unexpected costs could strain profitability.
Credit Quality: Although credit metrics improved, the allowance for credit losses decreased from 1.57% to 1.51%, which could pose risks if economic conditions worsen or if there are unexpected credit losses.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Loan Growth: Loan growth is expected to return to historical growth rates in the mid-single-digit range in 2026.
Net Interest Income (NII): Projected to be between $1.120 billion and $1.140 billion for 2026.
Loan Loss Provision Expense: Expected to range from $55 million to $75 million in 2026.
Noninterest Income: Guidance for 2026 is between $285 million and $300 million.
Operating Expense: Expected to range from $800 million to $835 million in 2026.
Effective Tax Rate: Projected to be between 18.5% and 19.5% for 2026.
Nonoperating Expenses: Approximately $60 million, including $22 million of core deposit intangible amortization and $36 million of merger-related costs.
Interest Rate Assumptions: Guidance assumes a 125 basis point Fed rate cut in March 2026.
Blue Foundry Bancorp Acquisition: Assumes the acquisition will close early in the second quarter of 2026.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Dividend Increase: The company increased its dividend during 2025.
Share Repurchase: The company opportunistically repurchased $59 million of common stock during 2025.
New Share Repurchase Authorization: In December, the Board approved a new repurchase authorization of $150 million, effective through January 2027.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Can you quantify the headwinds from 2025 and provide details on lender additions and paydown assumptions?
A:Curtis Myers explained that in 2025, there were over $800 million in headwinds due to strategic actions to derisk the portfolio, which moderated in 2026. Organic growth was about 3.5% after eliminating these headwinds. Lender additions were incremental, with small teams or individuals added each quarter, leading to increased productivity and momentum in originations and pipeline growth. Paydown assumptions remain consistent year-over-year, with no significant changes expected.
Q:Can you clarify the loss provision guidance and how it relates to net charge-offs or reserves?
A:Richard Kraemer stated that with mid-single-digit growth and a stable credit and economic environment, the allowance is expected to drift lower. Charge-offs are anticipated to remain relatively flat compared to the current year.
Q:Will the loan mix distribution change materially in 2026, and which segments will drive growth?
A:Curtis Myers emphasized maintaining a diversified loan book, with growth opportunities in CRE, C&I, and business banking. These segments are expected to drive accelerated organic growth, with the CRE concentration below 200%.
Q:Will there be aggressive hiring in New Jersey markets, and how does this impact expenses?
A:Curtis Myers mentioned ongoing recruitment efforts for talented individuals, with no outsized expenses for new hires included in the guidance. Hiring will continue opportunistically across all markets, including New Jersey.
Q:What are the expectations for deposit growth and composition in 2026?
A:Curtis Myers highlighted momentum in consumer and small business account openings, treasury performance, and cash management. Richard Kraemer noted the December cost of deposits at 1.80%, 6 bps lower than the quarterly average.
Q:What is the status of the commercial pipeline and geographic expansion plans?
A:Curtis Myers reported a more than 10% year-over-year increase in the commercial pipeline, with improved pull-through rates. The company is focused on the Northern New Jersey market and does not plan to expand into the Metro New York City market.
Q:What are the expectations for commercial interest rate swap income and other fee income?
A:Curtis Myers explained that swap income correlates with larger deal originations and fluctuates quarterly. Richard Kraemer noted that other fee income volatility is driven by equity method investments, with a normalized level of around $2.5 million.
Q:Review of Unclear Management Responses
A:Management avoided providing specific quantifications for certain metrics, such as exact paydown assumptions and detailed geographic expansion plans beyond Northern New Jersey. Additionally, responses on fee income and swap income lacked precise forward-looking guidance, relying on general trends and historical correlations.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Advisors contributor
Bancorp move
Blue Foundry
CD retention
Credit asset
Curt Chief
Customer deposit
Events Presentations
Foundry Bancorp
Joining Curt
Lafferty Investor
Manager representative
Officer President
President Joining
Relations Manager
Republic center
Republic contributor
Sales productivity
Wealth asset
ability business
ability cost
account opening
acquisition Blue
action loan
asset basis
capital ratio
community banking
footprint
member
momentum
profile capital
profitability
strength
FULT Transcript
01 Quantum Inc. (ONE:CA) Q4 2025 Earnings Call Transcript
Unknown1-22
The earnings call presents a mixed outlook. Financial performance shows positive trends with increased revenue and reduced cash burn, but the heavy reliance on partnerships and the competitive landscape pose significant risks. The Q&A session revealed uncertainties, particularly around revenue projections and marketing strategies. Despite positive guidance on loan growth and income, the strategic risks, including cybersecurity threats and technological challenges, temper enthusiasm. Given the company's moderate market cap, the stock is likely to see a neutral movement, balancing positive financials with strategic uncertainties.
Fulton Financial Corporation (FULT) Q4 2025 Earnings Call Transcript
Positive1-22
The earnings call highlighted strong financial performance, with increased deposits, organic loan growth, and improved net interest margin. The company's strategic actions to derisk and focus on growth sectors like CRE and business banking are promising. Despite some unclear guidance in the Q&A, the overall sentiment is positive, supported by raised guidance for net interest income and fee income. The market cap suggests a moderate reaction, leading to a positive prediction of 2% to 8% stock price increase.
Fulton Financial Corporation (FULT) Q3 2025 Earnings Call Transcript
Unknown10-22
The earnings call reflects a mixed outlook. Strong financial metrics, improved credit quality, and organic growth opportunities are positive. However, concerns about margin compression due to rate cuts, lack of M&A progress, and unclear management responses temper enthusiasm. The market cap suggests moderate stock reaction, leading to a neutral sentiment prediction.
Fulton Financial Corporation (FULT) Q2 2025 Earnings Call Transcript
Unknown7-16
The earnings call presents a mixed picture. Financial performance is stable with steady credit performance and a strong capital position, but there are challenges such as competitive pressures and market uncertainties impacting loan growth and deposit costs. The Q&A reveals cautious management and vague guidance, which may concern investors. Overall, the sentiment is neutral as positives balance out the negatives, with no strong catalysts for a significant stock price movement.
FULT Slides
FULT Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
