LANCASTER, PA — Fulton Financial Corporation (NASDAQ: FULT) recorded impressive gains in the second quarter of 2024, posting a net income of $92.4 million, or $0.52 per diluted share. This marks an increase of $33 million, or $0.16 per share, compared to the first quarter of 2024. The company’s operating net income for the quarter reached $82.5 million, or $0.47 per diluted share.
“The second quarter was an extraordinary quarter for Fulton. I want to personally thank both our new Republic teammates and our dedicated Fulton team for an exceptional effort,” said Curtis J. Myers, Chairman and CEO of Fulton Financial Corporation. “Fulton’s solid performance, steady business trends and stable asset quality were supplemented by a meaningful contribution from the Republic transaction.”
On April 26, 2024, Fulton Bank, a subsidiary of Fulton Financial, acquired most of the assets and assumed the deposits and certain liabilities of Republic First Bank from the Federal Deposit Insurance Corporation (FDIC). The acquisition included assets valued at approximately $4.8 billion, with loans and investments totaling $2.5 billion and $1.9 billion, respectively. Fulton Bank also assumed $4.1 billion in deposits without paying a premium.
The acquisition was a strategic move that has already shown financial benefits. Fulton Financial reported a preliminary gain of $47.4 million, net of tax, from the acquisition. The company also realized a pre-tax gain of $20.3 million from a sale-leaseback transaction involving 40 financial center office locations.
Net interest income surged to $241.7 million, an increase of $34.8 million, largely due to the acquisition. The net interest margin rose by 11 basis points to 3.43%. Non-interest income before investment securities gains or losses also saw a significant jump to $113.3 million, driven by gains from the acquisition and contributions from Republic Bank’s operations.
However, the quarter wasn’t free from challenges. Fulton Financial reported a provision for credit losses of $23.4 million related to non-purchased credit deteriorated loans acquired in the acquisition. Additionally, the company faced acquisition-related expenses of $13.8 million and FultonFirst implementation and asset disposal costs of $6.3 million.
Despite these costs, the acquisition has strengthened Fulton’s balance sheet. Net loans increased by $2.7 billion to $24.1 billion, and total deposits grew by $3.8 billion to $25.6 billion. The company’s provision for credit losses rose to $32.1 million, primarily due to the acquisition, but excluding this, the provision actually declined by $2.2 million.
Looking ahead, Fulton Financial is well-positioned for continued growth. The company’s recent financial moves and strategic acquisitions indicate a robust future, driven by solid performance and strategic foresight.
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