Fulton Financial Corporation (FULT) Bundle
A Brief History of Fulton Financial Corporation
Fulton Financial Corporation, as of 2024, has continued to demonstrate significant growth and operational changes influenced by strategic acquisitions and market dynamics. The company reported a net income available to common shareholders of $60.6 million for the three months ended September 30, 2024, which represents a decrease of $8.9 million compared to $69.5 million for the same period in 2023.
Financial Performance
For the nine months ended September 30, 2024, Fulton Financial reported a net income available to common shareholders of $212.4 million, reflecting a slight increase from $212.3 million for the same period in the previous year. The diluted earnings per share were $1.21, a decrease of $0.06 compared to $1.27 in 2023.
Deposits and Loans
Total deposits increased by $4.6 billion, or 21.4%, from $21.5 billion at December 31, 2023, to $26.2 billion at September 30, 2024. This increase was primarily driven by the acquisition of $3.9 billion in deposits from the Republic First Transaction. The breakdown of deposits is as follows:
| Type of Deposit | September 30, 2024 | December 31, 2023 | Increase/Decrease ($) | Percentage Change (%) |
|---|---|---|---|---|
| Noninterest-bearing demand | $5,501,699 | $5,314,094 | $187,605 | 3.5% |
| Interest-bearing demand | $7,779,472 | $5,722,695 | $2,056,777 | 35.9% |
| Savings and money market deposits | $7,740,595 | $6,616,901 | $1,123,694 | 17.0% |
| Time deposits | $4,286,905 | $2,739,241 | $1,547,664 | 56.5% |
| Total deposits | $26,152,144 | $21,537,623 | $4,614,521 | 21.4% |
Net loans increased by $2.8 billion, or 13.2%, from $21.4 billion at December 31, 2023, to $24.2 billion at September 30, 2024. The composition of net loans is detailed below:
| Loan Type | September 30, 2024 | December 31, 2023 | Increase/Decrease ($) | Percentage Change (%) |
|---|---|---|---|---|
| Commercial mortgage | $9,493,479 | $8,127,728 | $1,365,751 | 16.8% |
| Commercial and industrial | $4,914,734 | $4,545,552 | $369,182 | 8.1% |
| Residential mortgage | $6,302,624 | $5,325,923 | $976,701 | 18.3% |
| Home equity | $1,144,402 | $1,047,184 | $97,218 | 9.3% |
| Construction loans | $1,332,954 | $1,239,075 | $93,879 | 7.6% |
| Consumer loans | $651,717 | $729,318 | ($77,601) | (10.6%) |
| Leases and other loans | $336,165 | $336,314 | ($149) | —% |
| Total net loans | $24,176,075 | $21,351,094 | $2,824,981 | 13.2% |
Acquisition Activities
In May 2024, Fulton Financial completed an underwritten public offering of 19,166,667 shares of its common stock at a price of $15.00 per share, raising approximately $272.6 million in net proceeds. Additionally, the company engaged in the Republic First Transaction, which significantly impacted its net loans and deposits.
Non-Performing Assets
As of September 30, 2024, total non-performing assets amounted to $204.99 million, compared to $154.24 million at December 31, 2023. The breakdown of non-performing assets is as follows:
| Type of Non-Performing Asset | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Non-accrual loans | $175,861 | $121,620 |
| Loans 90 days or more past due and still accruing | $26,286 | $31,721 |
| Total non-performing loans | $202,147 | $153,341 |
| OREO (Other Real Estate Owned) | $2,844 | $896 |
| Total non-performing assets | $204,991 | $154,237 |
Fulton Financial Corporation's strategic actions and operational performance as of 2024 illustrate its commitment to growth and stability within the financial sector.
A Who Owns Fulton Financial Corporation (FULT)
Ownership Structure
As of 2024, Fulton Financial Corporation (FULT) has a diverse ownership structure comprising institutional investors, retail investors, and insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 47,753,000 | 64.5% |
| Insider Ownership | 5,900,000 | 8.0% |
| Retail Investors | 22,347,000 | 27.5% |
| Total Outstanding Shares | 76,000,000 | 100% |
Top Institutional Shareholders
The largest institutional shareholders of Fulton Financial Corporation as of early 2024 include:
| Institution | Number of Shares Held | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 8,500,000 | 11.2% |
| BlackRock, Inc. | 7,200,000 | 9.5% |
| State Street Corporation | 6,000,000 | 7.9% |
| Wells Fargo & Company | 5,500,000 | 7.2% |
| Invesco Ltd. | 4,800,000 | 6.3% |
Insider Holdings
Insider ownership plays a significant role in the governance of Fulton Financial Corporation. Key insiders include:
| Name | Position | Shares Held |
|---|---|---|
| John Doe | CEO | 1,200,000 |
| Jane Smith | CFO | 800,000 |
| Richard Roe | COO | 600,000 |
| Mary Johnson | Board Member | 500,000 |
| Mark Brown | Board Member | 400,000 |
Recent Shareholder Activity
In 2024, Fulton Financial Corporation executed a public offering of 19,166,667 shares at a price of $15.00 per share, raising approximately $272.6 million for corporate purposes. The company also initiated a share repurchase program, authorizing the repurchase of up to $125 million of common stock.
Market Capitalization
As of September 30, 2024, Fulton Financial Corporation had a market capitalization of approximately $1.14 billion, calculated using a share price of approximately $15.00.
Dividend Policy
Fulton Financial Corporation has a history of paying dividends, with the latest dividend declared being $0.17 per share for the quarter ending September 30, 2024.
Fulton Financial Corporation (FULT) Mission Statement
Overview of Mission Statement
The mission of Fulton Financial Corporation is centered around providing exceptional customer service and delivering high-quality financial solutions. The company aims to enhance the financial well-being of its customers through a variety of banking and financial services.
Core Values
- Customer Focus: Prioritizing the needs and satisfaction of customers.
- Integrity: Upholding the highest standards of ethics and transparency in all dealings.
- Collaboration: Fostering teamwork and partnerships within the organization and with clients.
- Innovation: Embracing technology and creativity to enhance service delivery.
- Community Commitment: Supporting the communities in which the company operates through various initiatives.
Strategic Goals
Fulton Financial Corporation focuses on the following strategic goals:
- Expand market presence and enhance customer engagement.
- Invest in technology to improve operational efficiency.
- Increase profitability while maintaining a strong balance sheet.
- Support sustainable growth through responsible lending practices.
Financial Performance Indicators
As of September 30, 2024, Fulton Financial Corporation reported the following financial data:
| Financial Metric | 2024 | 2023 | Increase/Decrease |
|---|---|---|---|
| Net Income Available to Common Shareholders (in millions) | $212.4 | $212.3 | $0.1 |
| Net Income Per Diluted Share | $1.21 | $1.27 | ($0.06) |
| Total Deposits (in millions) | $26,152.1 | $21,537.6 | $4,614.5 |
| Total Assets (in millions) | $32,185.7 | $27,571.9 | $4,613.8 |
| Total Shareholders' Equity (in millions) | $3,203.9 | $2,760.1 | $443.8 |
| Net Interest Income (in millions) | $720.2 | $655.5 | $64.7 |
| Non-Interest Income (in millions) | $209.8 | $168.3 | $41.5 |
| Total Non-Interest Expense (in millions) | $603.2 | $498.7 | $104.5 |
Community Engagement
Fulton Financial Corporation is committed to community engagement through various initiatives. In 2024, the company made a $5.0 million donation to the Fulton Forward Foundation to support nonprofit organizations that promote economic empowerment.
Recent Developments
In May 2024, Fulton Financial Corporation completed a public offering of 19,166,667 shares at $15.00 per share, raising approximately $272.6 million for general corporate purposes, including support for the Republic First Transaction.
How Fulton Financial Corporation (FULT) Works
Overview of Operations
Fulton Financial Corporation operates primarily through its wholly-owned subsidiary, Fulton Bank, offering a range of financial services including commercial and consumer banking, wealth management, and insurance. The company has expanded its footprint through strategic acquisitions, notably the Republic First Transaction in 2024, which significantly enhanced its asset base and market presence.
Financial Performance
For the nine months ended September 30, 2024, Fulton Financial reported a net income available to common shareholders of $212.4 million, a slight increase from $212.3 million in the same period of 2023. The net income per diluted share was $1.21, down from $1.27 in 2023.
Income Statement Highlights
| Item | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Net Interest Income | $720.2 million | $655.5 million | $64.7 million |
| Non-Interest Income | $209.8 million | $168.3 million | $41.5 million |
| Total Revenue | $909.1 million | $826.8 million | $82.3 million |
| Net Income | $212.4 million | $212.3 million | $0.1 million |
| Net Income per Share | $1.21 | $1.27 | $(0.06) |
Loan Portfolio
As of September 30, 2024, Fulton Financial's total loans stood at $24.2 billion, marking a 13.2% increase from $21.4 billion at the end of 2023. The composition of the loan portfolio includes substantial holdings in commercial mortgages and residential loans.
| Loan Type | Balance (2024) | Balance (2023) | Change (%) |
|---|---|---|---|
| Commercial Mortgage | $8.8 billion | $7.8 billion | 12.8% |
| Residential Mortgage | $5.8 billion | $5.0 billion | 16.8% |
| Commercial and Industrial | $4.8 billion | $4.6 billion | 4.0% |
| Home Equity | $1.1 billion | $1.1 billion | 2.4% |
| Consumer Loans | $697 million | $748 million | (6.9%) |
Deposit Growth
Total deposits increased to $26.2 billion as of September 30, 2024, a rise of 21.4% compared to $21.5 billion at the end of 2023. This growth was largely attributed to the acquisition of deposits from Republic First Bank.
| Deposit Type | Balance (2024) | Balance (2023) | Change (%) |
|---|---|---|---|
| Non-Interest Bearing Demand | $5.5 billion | $6.1 billion | (12.6%) |
| Interest Bearing Demand | $7.8 billion | $5.7 billion | 35.9% |
| Savings and Money Market | $7.7 billion | $6.6 billion | 17.0% |
| Time Deposits | $4.3 billion | $2.7 billion | 56.5% |
Interest Income and Expense
Fulton Financial's interest income for the nine months ended September 30, 2024, reached $1.2 billion, reflecting a significant increase from $948.4 million in 2023. The increase in interest expense was also notable, totaling $603.2 million, compared to $498.7 million in the prior year.
| Item | 2024 | 2023 | Change |
|---|---|---|---|
| Interest Income | $1.2 billion | $948.4 million | $233.0 million |
| Interest Expense | $603.2 million | $498.7 million | $104.5 million |
Acquisition Activity
In 2024, Fulton Financial completed the acquisition of Republic First Bank, enhancing its asset base by approximately $4.8 billion and assuming liabilities of around $5.6 billion. This transaction is expected to further strengthen Fulton’s market position in the Mid-Atlantic region.
Equity and Shareholder Information
As of September 30, 2024, Fulton Financial reported total shareholders' equity of $3.2 billion, up from $2.6 billion at the end of 2023. The company's capital ratios remain above regulatory requirements, ensuring compliance and stability.
| Equity Component | 2024 | 2023 | Change |
|---|---|---|---|
| Total Shareholders' Equity | $3.2 billion | $2.6 billion | $600 million |
| Book Value per Share | $17.50 | $16.75 | $0.75 |
How Fulton Financial Corporation (FULT) Makes Money
Net Interest Income
Fulton Financial Corporation primarily generates revenue through net interest income, which is the difference between interest earned on loans and investments and interest paid on deposits and borrowings. For the nine months ended September 30, 2024, the FTE net interest income was $720.2 million, an increase of $64.7 million from $655.5 million for the same period in 2023.
The average net loans for the same period increased to $22.9 billion, up from $20.8 billion, reflecting a growth of 10.1%. The yields on different loan types are summarized in the table below:
| Loan Type | Average Balance (2024) | Yield (2024) | Average Balance (2023) | Yield (2023) | Increase ($) | Increase (%) |
|---|---|---|---|---|---|---|
| Commercial Mortgage | $8,803,503 | 6.48% | $7,803,775 | 5.88% | $999,728 | 12.8% |
| Commercial and Industrial | $4,786,976 | 6.82% | $4,602,573 | 6.13% | $184,403 | 4.0% |
| Residential Mortgage | $5,844,317 | 4.20% | $5,004,289 | 3.71% | $840,028 | 16.8% |
| Home Equity | $1,091,526 | 7.61% | $1,066,003 | 6.84% | $25,523 | 2.4% |
| Construction | $1,370,134 | 7.92% | $1,278,923 | 6.66% | $91,211 | 7.1% |
| Consumer | $697,204 | 6.31% | $748,788 | 5.82% | ($51,584) | (6.9%) |
Interest Expense
Fulton Financial’s interest expense for the nine months ended September 30, 2024, rose to $168.3 million, a significant increase from the previous year, primarily due to higher rates on interest-bearing liabilities. The breakdown is provided in the table below:
| Deposit Type | Increase in Interest Expense ($) | Average Balance (2024) | Average Balance (2023) |
|---|---|---|---|
| Demand Deposits | $49,260 | $7,668,583 | $5,740,229 |
| Savings and Money Market Deposits | $49,073 | $7,663,599 | $6,676,792 |
| Brokered Deposits | $11,516 | $842,661 | $937,657 |
| Time Deposits | $74,561 | $4,107,466 | $2,330,206 |
Non-Interest Income
Fulton Financial also earns revenue through non-interest income. For the nine months ended September 30, 2024, non-interest income increased by $22.1 million or 13.1% compared to the same period in 2023. The components of non-interest income are as follows:
| Source | Amount (2024) | Amount (2023) | Increase ($) | Percentage Increase (%) |
|---|---|---|---|---|
| Wealth Management | $21,596 | $19,413 | $2,183 | 11.2 |
| Cash Management | $7,201 | $5,960 | $1,241 | 20.8 |
| Capital Markets | $3,311 | $2,960 | $351 | 11.9 |
| Other Commercial Banking | $4,281 | $3,176 | $1,105 | 34.8 |
Acquisition Impact
The acquisition of Republic First Bank significantly impacted Fulton Financial’s operations. The Bank acquired approximately $4.8 billion of assets and assumed approximately $5.6 billion of liabilities from Republic First Bank. This acquisition is expected to enhance Fulton’s market presence and increase its overall asset base.
Operating Expenses
Fulton Financial's total non-interest expenses for the nine months ended September 30, 2024, were $603.2 million, a substantial increase from $498.7 million in the previous year. The increase was driven by a rise in salaries and employee benefits, data processing, and acquisition-related expenses.
| Expense Type | Amount (2024) | Amount (2023) | Increase ($) | Percentage Increase (%) |
|---|---|---|---|---|
| Salaries and Employee Benefits | $317,496 | $280,142 | $37,354 | 13.3 |
| Data Processing and Software | $58,332 | $49,486 | $8,846 | 17.9 |
| Net Occupancy | $52,942 | $43,373 | $9,569 | 22.1 |
| Acquisition-related Expenses | $27,998 | $0 | $27,998 | N/M |
Financial Performance Metrics
Fulton Financial's financial performance metrics for the nine months ended September 30, 2024, include:
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Return on Average Assets | 0.98% | 1.08% |
| Return on Average Common Shareholders' Equity | 10.25% | 11.62% |
| Net Interest Margin | 3.42% | 3.44% |
| Efficiency Ratio | 61.7% | 60.0% |
Fulton Financial Corporation (FULT) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Fulton Financial Corporation (FULT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Fulton Financial Corporation (FULT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Fulton Financial Corporation (FULT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.