Fulton Financial Q3 net income rises sequentially on lower acquisition expenses

By Reuters News


Overview

  • U.S. regional bank's Q3 net income rose from prior quarter

  • Net interest income for Q3 increased compared to previous quarter

  • Company repurchased $56.1 mln of shares in Q3


Outlook

  • Company did not provide specific financial guidance for future quarters or full year


Result Drivers

  • HIGHER INTEREST INCOME - Co attributed net interest income growth to increased interest income from loans and securities, and lower interest expense on borrowings

  • LOWER ACQUISITION EXPENSES - Co said decrease in acquisition-related expenses reduced non-interest expense

  • DEPOSIT GROWTH - Co said deposit growth was driven by commercial deposits and seasonal municipal trends


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Income

$114.10 mln

Q3 Net Interest Income

$290.04 mln

Q3 CET1 Capital Ratio

12.20%

Q3 Credit Loss Provision

$4.06 mln

Q3 Net Interest Margin (%)

3.58%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy."

  • Wall Street's median 12-month price target for Fulton Financial Corporation is $26.00, about 14.9% above its October 20 closing price of $22.63

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%

  • Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality

  • Oct 20 - East West Bancorp Q3 revenue beats estimates on loan and deposit growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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