FULTON FINANCIAL CORP — Call Transcript 2026

Good day and thank you for standing by. Welcome to the Fulton Financial Fourth Quarter 2025 Results Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Pat Lafferty, Investor Relations Manager. Please go ahead. Good morning, and thanks for joining us for Fulton Financial's Conference Call and Webcast to discuss our Earnings for the Fourth Quarter ending December 31st, 2025. Your host for today's conference call is Curt Myers, Chairman, Chief Executive Officer, and President. Joining Curt is Rick Kraemer, Chief Financial Officer. Our comments today will refer to the financial information and related slide presentation included with our earnings announcement, which we released yesterday afternoon. These documents can be found on our website at fulton.com by clicking on Investor Relations and then on News. The slides can also be found on the Events and Presentations page under Investor Relations on our website. On this call, representatives of Fulton may make forward-looking statements with respect to Fulton's financial condition, results of operations, and business. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, and actual results could differ materially. Please refer to the safe harbor statement on forward-looking statements in our earnings release and on slide two of today's presentation for additional information regarding these risks, uncertainties, and other factors. Fulton undertakes no obligation other than as required by law to update or revise any forward-looking statements. In discussing Fulton's performance, representatives of Fulton may refer to certain non-GAAP financial measures. Please refer to the supplemental financial information included with Fulton's earnings announcement released yesterday and slides 28 through 38 of today's presentation for a reconciliation of those non-GAAP financial measures to the most comparable GAAP measures. Now, I would like to turn the call over to your host, Curt Myers. Thanks, Pat, and good morning, everyone. For today's call, I'll be providing a few high-level comments as well as some operating highlights for the full year 2025. Unless I note otherwise, comparisons I discuss are with the full year of 2024 performance. Then Rick will review our quarterly financial results and provide our 2026 operating guidance. After our prepared remarks, we'll be happy to take any questions you may have. ' 2025 was another outstanding year for our company. I want to start by thanking all of our team members for their dedication to advancing our mission to change lives for the better and for generating strong operating results. Last year, we once again successfully executed on our community banking strategy and delivered value for customers, career success for employees, and meaningful operating results for shareholders. Our goal going forward remains the same: creating long-term value by growing the company, delivering effectively for customers, and operating with excellence so that we can continue to serve all of our stakeholders. Our 2025 results were strong. Operating earnings per share of $2.16 set a new record. We also maintained a solid balance sheet and demonstrated disciplined expense management. Customer deposits grew by $449 million, and we're seeing momentum from our enhanced deposit initiatives, which have increased customer engagement and driven a 25% growth in consumer demand deposit account openings year-over-year. Sales productivity is strong, and CD retention remains solid. This has resulted in good deposit growth and an ability to effectively manage cost of funds over time. Our focused and expanded business banking team has generated great results, raising over $133 million in lower-cost operating deposits. Throughout the year, we highlighted some strategic actions that have offset organic loan growth. These actions represented more than an $800 million headwind during 2025. Even with these actions, our organic loan growth originations delivered overall net loan growth on a year-over-year basis. Over the course of 2025, we consistently drove growth in quarterly originations, creating a strong foundation for 2026 and beyond. To support this ongoing loan growth, we've been adding new team members. This expands our ability to serve small businesses and middle-market customers throughout the footprint. Accordingly, in 2026, we expect loan growth to return to our historical growth rates in the mid-single-digit range. We're also pleased with our non-interest income-generating performance in 2025. When excluding the bargain purchase and investment securities gains and losses, non-interest income of $277 million was up almost 7%. Non-interest income continues to represent more than 20% of total revenue and underscores the strength of our diversified revenue model as we've grown both non-interest income and net interest income at a similar pace. The drivers of non-interest income growth were broad-based. Commercial fees grew overall by 8%, led by 17% growth in cash management revenue. Fulton Financial Advisors continues to be a meaningful contributor to overall fee incomes. Wealth assets under management and administration surpassed $17 billion in 2025, and referrals from financial centers to our advisors increased 17%, or almost $50 million year-over-year. This strong level of activity was supported by significant new opportunities from legacy Republic First financial centers. This highlights our strategy to bring new product and value to acquired customers and grow our overall revenue base. Turning to expenses, we continue to realize benefits from strategic initiatives driving positive operating leverage for the year. Our operating expenses grew by a modest 1.9% in 2025. When normalizing for a full year of Republic First expenses in 2024, our operating expenses would have been down 2.7% year-over-year, a meaningful contributor to profitability and efficiency. Our profitability, liquidity profile, and capital position all further improved during 2025. Our operating return on assets improved by 17 basis points to 1.28% as we continue to drive greater efficiencies across the bank. We ended the year with a loan-to-deposit ratio of 91%, allowing for continued balance sheet flexibility. Our teams worked diligently to grow balances while also managing deposit costs. Our net interest margin was strong, increasing 9 basis points to 3.51% from the prior year. Net interest margin ended the fourth quarter at an even stronger position of 3.59% despite several Fed rate cuts. The consistent increase in net interest margin throughout the year demonstrated our relatively neutral interest rate profile. Our strong earnings also supported higher capital ratios, helping to grow tangible book value per share by 15%. Our capital ratios ended the year at the highest level seen in more than a decade, even after we increased our dividend and opportunistically repurchased $59 million of common stock. Credit metrics meaningfully improved throughout 2025. Non-performing assets as a percent of total assets declined 11 basis points, ending the year at 58 basis points. Net charge-offs for the year remained historically low at 21 basis points as a percentage of average loans. Our allowance for loan losses ended the year at 1.51% of total loans. We believe we are well-positioned moving forward. In November, we announced the acquisition of Blue Foundry Bancorp, a strategic move that strengthens our footprint and reinforces our community banking model. We're excited to have our new team members and customers join our organization as we expand our presence in several attractive markets. This expansion positions us to deliver even greater value to our customers and shareholders as we leverage shared strengths and deepen relationships in these communities. Looking forward, we're excited about the opportunities ahead. We focus on making 2026 a year of continued strength, building on our momentum, driving growth, and delivering strong results for all stakeholders. Now I'll turn the call over to Rick to discuss our quarterly financial results and provide our 2026 operating guidance. Thank you, Curt, and good morning. Unless I note otherwise, the quarterly comparisons I discussed are with the third quarter of 2025. Loan and deposit growth numbers I referenced are annualized percentage on a linked quarter basis. Starting on slide five, operating earnings per diluted share were $0.55, or $99.4 million of operating net income available to common shareholders. Net interest income grew 2.8% annualized from the previous quarter, while NIM expanded by two basis points despite 75 basis points of Fed rate cuts from September through December. Modest asset growth and positive credit trends combined with prudent management of deposit costs and a relatively neutral interest rate profile drove much of the linked quarter performance. Total period-end loans increased $103 million during the quarter. Growth was driven across most loan categories and offset by declines in construction balances. As discussed throughout 2025, we continue to proactively work certain credits out of portfolio that don't align to our long-term strategy. During the quarter, we saw runoff of approximately $30 million of indirect auto and resolved an additional $211 million of adversely rated loans. In total, these strategic actions aggregated to a more than $800 million headwind for growth in 2025. Apart from the continued planned runoff of indirect auto, we expect the impact of these activities to moderate as we move into 2026. Accordingly, we expect to revert towards our long-term historical organic loan growth trends of mid-single digits. Total deposits grew $257 million, or 3.9%. Growth was relatively balanced across categories as interest-bearing deposit balances grew by $137 million and non-interest-bearing grew by $120 million. Our consumer business was a key driver of deposit growth. Commercial deposits and the number of commercial accounts remained stable. However, this segment did see a rebound in non-interest-bearing balances of $40 million. Municipal deposits decreased $254 million, while other wholesale funding, including brokers, declined $29 million. Finally, our loan-to-deposit ratio was unchanged, ending the quarter at 91%. Moving to the investment portfolio, securities decreased $212 million as prepayments accelerated from previous periods. Investments as a percentage of total assets were 15%, a level that continues to provide balance sheet optionality moving forward. AOCI improved by $29 million. Net interest income on a non-FTE basis was $266 million, a $1.8 million increase linked quarter as net interest margin expanded 2 basis points to 3.59%. Loan yields declined 11 basis points to 5.82%. Fixed-rate asset repricing continues to provide some benefit to loan yields in the face of declining short-term rates, as illustrated on slide 22 of our earnings presentation. Over the next 12 months, we have approximately $5.7 billion of fixed and adjustable rate earning assets subject to repricing, currently at a blended yield of 5.01%. Of note, accretion interest was down $2.2 million linked quarter to $10.5 million. For the quarter, our average cost of total deposits decreased 10 basis points to 1.86%, while our total cost of funds declined 13 basis points due to quarterly wholesale repositioning aided by customer deposit growth. Through the current rate-cutting cycle, our cumulative interest-bearing deposit beta has been 30%, while our total deposit beta has been 20%. Our deposit pricing strategy continues to balance the desire to fund future balance sheet growth while defending margin. Turning to slide seven, non-interest income for the quarter was stable at $70 million. While consolidated fees were flat, we saw strong linked quarter growth within our wealth, capital markets, and SBA businesses. Non-interest income as a percentage of total revenue equaled 21% for the fourth quarter. Moving to slide eight, non-interest expense on an operating basis was $204 million, an increase of $12.7 million linked quarter. This increase was mostly attributable to salaries and benefits driven by higher accrual expense of $7.5 million related to variable compensation due to continued strong annual performance. Other noteworthy items in the quarter amounted to $2.5 million and included unseasonably high snow removal costs and elevated healthcare claims. Absent these expenses, our quarterly and annual expenses would have been within our previously expected ranges. Of note, core salaries increased less than 1% from the prior quarter. Items excluded from operating expenses as listed on slide eight include charges of $5.4 million of core deposit intangible amortization, $2.8 million of FultonFirst implementation and asset disposals, and $802,000 of acquisition-related expense. Turning to asset quality, provision expense of $2.9 million was lower than last quarter and below our expected range. The quarterly provision was positively impacted by a $5 million recovery from a loan acquired in the Republic First Bank acquisition. As Curt mentioned, we saw positive trends throughout the book. Net charge-offs increased slightly to 24 basis points, while non-performing assets to total assets improved 5 basis points to 0.58%. Our allowance for credit losses to total loans ratio decreased from 1.57% to 1.51%, while our ACL to non-performing loan coverage increased to 198%. Slide 10 shows a snapshot of our capital base. We maintain a healthy capital position that provides us with balance sheet flexibility. During the quarter, we repurchased 1.1 million shares at a weighted average cost of $18.34. In December, our board approved a new repurchase authorization of $150 million, which is in effect through January of 2027. Inclusive of share repurchases, internal capital generation was roughly up to $77 million. Our tangible common equity to tangible asset ratio increased to 8.5%, while CET1 increased to 11.8%. On slide 11, we are providing operating guidance for 2026. Our guidance assumes one 25 basis points Fed cut in March and assumes our previously announced acquisition of Blue Foundry Bancorp closes early in 2Q 2026. Our 2026 guidance is as follows: Net interest income of $1,120 million-$1,140 million. Our NII guide assumes an annual FTE adjustment of $16 million-$18 million. Loan loss provision expense of $55 million-$75 million. Non-interest income of $285 million-$300 million. Operating expense of $800 million-$835 million. An effective tax rate of 18.5%-19.5%. Finally, non-operating expenses of approximately $60 million, which includes $22 million of CDI and $36 million of merger-related costs. With that, we'll now turn the call over to the operator for any questions. Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Daniel Tamayo with Raymond James. Your line is now open. Thank you. Good morning, Curt. Good morning, Rick. Good morning, Dan. Yeah. Maybe starting on the loan growth guide, the mid-single digits in 2026. Appreciate your comments around the lenders that were hired recently and some of the headwinds that were there in 2025 that are no longer there in 2026. Maybe you could quantify that a bit for us, just give us a sense for what that headwind won't be and if there's a way you can quantify the lenders, and then if there's any number you could put around what you're assuming in pay downs as well. Thank you very much. Yeah, Danny, just a little color on that overall. We look back on last year, we had more than $800 million of headwinds around strategic actions that we took, de-risk the portfolio, get the portfolio where we wanted it to be. So we see those things moderating, and I think that's a big if you look back on last year, we feel it was about 3.5% organic growth, eliminating those headwinds. So just that really gets us back close to those long-term trends. And then as we get the increased productivity, additional people in really every area of the company from our FultonFirst initiative, we're really building productivity. So we've added bankers in commercial banking, business banking, SBA. We're moving all of those teams forward just from an overall count, and we're doing that kind of each quarter. So it's not big teams that we're adding. It's a person or two or a small team, and we just continue to build that momentum. If you look at underlying originations for each of the quarters this year, we built momentum. Originations were up each quarter. The pipeline is up year-over-year as well. So as we stand here today, we're confident getting back into that mid-single digit range and then continuing that momentum to move it forward. Thanks, Curt. And any commentary on the pay downs assumptions relative to where you've been? Yeah. So as we look forward, obviously, we roll the maturities forward. We make assumptions on just business happening. So we really don't see just the normal portfolio pay downs and prepayments really any different year-over-year. Again, in 2025, it was really those strategic actions that we took that were the headwinds. So we really don't see underlying changes in those prepayment activities. We feel pretty good about the ability to forecast those. Okay. Terrific. And then maybe just a clarification on the loss provision guidance as to how you're getting there. Quick math for me as I'm working through my model, it looks like either the net charge-offs would need to come down off the fourth quarter level or the reserves would need to come down. Maybe just a little color on how you're thinking about the provision next year. Yeah, Danny, it's Rick. Yeah, look, I think all else equal, obviously, thinking about mid-single digits growth, and you're kind of backing into it, in a stable environment, you'd consider continue to see allowance kind of drift a little bit lower, like I said, assuming a stable credit environment and a stable economic environment. So you're right. I think from a charge-off perspective, relatively flat with what we've seen this year is what we're expecting. Okay. Very helpful. Thanks for all the color, guys. Appreciate it. Thanks, Dan. Our next question comes from the line of David Bishop with Hovde Group LLC. He'll let us know open. Yeah. Good morning, gentlemen. Good morning. Curious, as you talk about or think about the mid-single digit growth rate next year, just curious, do you think the distribution of the loan mix changes materially in terms of the new hire? Do you think that's going to come more out of the C&I book versus CRE? Just curious how you're thinking about production next year. Yeah. So overall, what served us really well over the long term is having a diversified loan book. So our strategy is to grow each of those segments. They do grow at different paces over time. We think we have opportunity in CRE, C&I, business banking, all of those categories. We feel that that could be drivers to the accelerated organic growth. And we have a balance sheet mix that we can really lean in and grow any of those at normal pace or even accelerated pace. You look at our CRE concentration. It's below 200%. We're selective, but it's a good position to be in, and we really want to grow all categories. But we think specifically in those three, we can do a little outsized growth year-over-year. Got it. Then in terms of the OpEx guide, you mentioned some of the hiring you've done here. Sort of excluding the Blue Foundry deal, do you think you're going to be more aggressive maybe in some of the new New Jersey markets in terms of looking to add bankers up in that market relative to maybe some of the legacy Pennsylvania footprint? Well, specifically on the guide on expenses, we're always active in recruiting talented people to join the team. So there's really nothing specific in the guide other than normal opportunistic hires in the marketplace. That's an ongoing effort really in all years. So we have that baked into the normal run rate around continuing to be able to add to the team. So there's nothing in the guide that's outsized in expenses for new hires. Got it. Appreciate the color. Thank you. As a reminder, to ask a question at this time, please press star one one on your touch-tone telephone. Our next question comes from the line of Matthew Breese with Stephens Inc. Your line is open. Hey, good morning. Morning, Matt. Morning, Matt. I was hoping you could help us out with deposits. We'd love your thoughts around deposit growth for this year, including some composition thoughts. And then, Rick, if you have it, either the period end or most recent cost of deposits just to give us some sense of trajectory on the overall cost of funds. Yeah, Matt. Just a little bit on deposit growth. We feel we do have some good momentum. We reference some of the account opening and customer engagement things that we've been doing that are driving momentum. Again, it's consumer, small business are really outsized there. We referenced the Treasury performance. We referenced it in a fee income basis, 17%, but that's a really good generator of low-cost operating deposits. So really, in all those categories, consumer, just core consumer, kind of always building that. Really good momentum in business banking. And then on Treasury and cash management on the corporate side, we have some outpaced momentum there as well. So those are the categories that we feel really good about the team's driving growth. Yeah, Matt. And then just on your spot question, we finished December at 1.80%, so about 6 basis points lower than the quarterly average. Got it. Okay. And then, Curt, I heard you on the pipeline sound strong. I would love any sort of percentage comparison. I think you said it was up year-over-year. And then I heard you talk a little bit about kind of more diversified loan growth as you integrate Blue Foundry. Curious geography-wise, given their geography in northern New Jersey, what are your thoughts on kind of inching into the metro New York City market for commercial real estate and just some of your thoughts around that? Yeah. So, first, on the pipeline, so I was specifically referencing the commercial pipeline, and that's up more than 10% year-over-year. So, it's a marked improvement. We've seen a little improvement in the pull-through rate too. You've heard me talk about that before, not just things in the pipeline, but customers actually spending the money and moving forward with the project or purchase. We see a little positive momentum there as well. So a couple of those factors, I think, really help us be confident in that momentum as we move forward. Then on geography, we really like the northern New Jersey market. We're in that market. This acquisition fills out, gives us a good franchise there. Crossing the state lines there is not within our strategy. Great. And then last one, I guess for Rick or Curt, just a couple of nitpicky questions on fee income. Could you help me out with, first of all, your thoughts around commercial interest rate swap income? It's a bit all over the place, but the fourth quarter was stronger than I was anticipating. What's a good run rate there, or what are you expecting there? And then the other one is just other fee income dropped quite a bit this quarter, and I'm curious what you're expecting for run rate there as well. Matt, first on the swap income, that really tracks with originations, and it's typically the larger deals that would have a swap versus a fixed rate. So that you're right, that does bounce from quarter to quarter, and it really ties and correlates to originations and some larger originations. So it's natural, as you've seen, growth and origination accelerating the fourth quarter. That's pretty in line with what we would expect from the derivatives too. Yeah. And Matt, on the other component, I would say it's a little bit in that other really driving, call it that, quarterly volatility is income from equity method investments. So over the course of the year, we had a couple that improved in valuation, and then the fourth quarter, we had one that declined about, well, the net of it was around $1.7 million. So, probably $2.5 million is a reasonable level for that on a normalized basis. Great. I'll leave it there. Thank you. Thank you. That's it. Thank you. And I'm currently showing no further questions at this time. I now would like to hand the call back over to Curt Myers for closing remarks. Great. Thank you, everyone, for joining us today. Hopefully, you'll be able to be with us when we discuss first quarter results in April. Thank you. This concludes today's conference. Thank you for your participation. You may now disconnect.

Speaker 5: Good day and thank you for standing by. Welcome to the Fulton Financial Fourth Quarter 2025 Results Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. Good day and thank you for standing by. good day and thank you for standing by Welcome to the Fulton Financial Fourth Quarter 2025 Results Conference Call. welcome to the fulton financial fourth quarter 2025 results conference call At this time, all participants are in listen-only mode. at this time all participants are in listen-only mode After the speaker's presentation, there will be a question-and-answer session. after the speaker's presentation there will be a question-and-answer session To ask a question during the session, you will need to press star 11 on your telephone. to ask a question during the session you will need to press star 11 on your telephone You will then hear an automated message advising your hand is raised. you will then hear an automated message advising your hand is raised To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Pat Lafferty, Investor Relations Manager. Please go ahead. To withdraw your question, please press star 11 again. to withdraw your question please press star 11 again Please be advised that today's conference is being recorded. please be advised that today's conference is being recorded I would now like to hand the conference over to your speaker today, Pat Lafferty, Investor Relations Manager. i would now like to hand the conference over to your speaker today pat lafferty investor relations manager Please go ahead. please go ahead

Speaker 6: Good morning, and thanks for joining us for Fulton Financial's Conference Call and Webcast to discuss our Earnings for the Fourth Quarter ending December 31st, 2025. Your host for today's conference call is Curt Myers, Chairman, Chief Executive Officer, and President. Joining Curt is Rick Kraemer, Chief Financial Officer. Our comments today will refer to the financial information and related slide presentation included with our earnings announcement, which we released yesterday afternoon. Good morning, and thanks for joining us for Fulton Financial's Conference Call and Webcast to discuss our Earnings for the Fourth Quarter ending December 31st, 2025. good morning and thanks for joining us for fulton financial's conference call and webcast to discuss our earnings for the fourth quarter ending december 31st 2025 Your host for today's conference call is Curt Myers, Chairman, Chief Executive Officer, and President. your host for today's conference call is curt myers chairman chief executive officer and president Joining Curt is Rick Kraemer, Chief Financial Officer. joining curt is rick kraemer chief financial officer Our comments today will refer to the financial information and related slide presentation included with our earnings announcement, which we released yesterday afternoon. our comments today will refer to the financial information and related slide presentation included with our earnings announcement which we released yesterday afternoon These documents can be found on our website at fulton.com by clicking on Investor Relations and then on News. The slides can also be found on the Events and Presentations page under Investor Relations on our website. On this call, representatives of Fulton may make forward-looking statements with respect to Fulton's financial condition, results of operations, and business. These documents can be found on our website at fulton.com by clicking on Investor Relations and then on News. these documents can be found on our website at fulton.com by clicking on investor relations and then on news The slides can also be found on the Events and Presentations page under Investor Relations on our website. the slides can also be found on the events and presentations page under investor relations on our website On this call, representatives of Fulton may make forward-looking statements with respect to Fulton's financial condition, results of operations, and business. on this call representatives of fulton may make forward-looking statements with respect to fulton's financial condition results of operations and business These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, and actual results could differ materially. Please refer to the safe harbor statement on forward-looking statements in our earnings release and on slide two of today's presentation for additional information regarding these risks, uncertainties, and other factors. Fulton undertakes no obligation other than as required by law to update or revise any forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, and actual results could differ materially. these statements are not guarantees of future performance and are subject to risks uncertainties and other factors and actual results could differ materially Please refer to the safe harbor statement on forward-looking statements in our earnings release and on slide two of today's presentation for additional information regarding these risks, uncertainties, and other factors. please refer to the safe harbor statement on forward-looking statements in our earnings release and on slide two of today's presentation for additional information regarding these risks uncertainties and other factors Fulton undertakes no obligation other than as required by law to update or revise any forward-looking statements. fulton undertakes no obligation other than as required by law to update or revise any forward-looking statements In discussing Fulton's performance, representatives of Fulton may refer to certain non-GAAP financial measures. Please refer to the supplemental financial information included with Fulton's earnings announcement released yesterday and slides 28 through 38 of today's presentation for a reconciliation of those non-GAAP financial measures to the most comparable GAAP measures. Now, I would like to turn the call over to your host, Curt Myers. In discussing Fulton's performance, representatives of Fulton may refer to certain non-GAAP financial measures. in discussing fulton's performance representatives of fulton may refer to certain non-gaap financial measures Please refer to the supplemental financial information included with Fulton's earnings announcement released yesterday and slides 28 through 38 of today's presentation for a reconciliation of those non-GAAP financial measures to the most comparable GAAP measures. please refer to the supplemental financial information included with fulton's earnings announcement released yesterday and slides 28 through 38 of today's presentation for a reconciliation of those non-gaap financial measures to the most comparable gaap measures Now, I would like to turn the call over to your host, Curt Myers. now i would like to turn the call over to your host curt myers

Speaker 1: Thanks, Pat, and good morning, everyone. For today's call, I'll be providing a few high-level comments as well as some operating highlights for the full year 2025. Unless I note otherwise, comparisons I discuss are with the full year of 2024 performance. Then Rick will review our quarterly financial results and provide our 2026 operating guidance. After our prepared remarks, we'll be happy to take any questions you may have. ' Thanks, Pat, and good morning, everyone. thanks pat and good morning everyone For today's call, I'll be providing a few high-level comments as well as some operating highlights for the full year 2025. for today's call i'll be providing a few high-level comments as well as some operating highlights for the full year 2025 Unless I note otherwise, comparisons I discuss are with the full year of 2024 performance. unless i note otherwise comparisons i discuss are with the full year of 2024 performance Then Rick will review our quarterly financial results and provide our 2026 operating guidance. then rick will review our quarterly financial results and provide our 2026 operating guidance After our prepared remarks, we'll be happy to take any questions you may have. ' after our prepared remarks we'll be happy to take any questions you may have.' 2025 was another outstanding year for our company. I want to start by thanking all of our team members for their dedication to advancing our mission to change lives for the better and for generating strong operating results. Last year, we once again successfully executed on our community banking strategy and delivered value for customers, career success for employees, and meaningful operating results for shareholders. 2025 was another outstanding year for our company. 2025 was another outstanding year for our company I want to start by thanking all of our team members for their dedication to advancing our mission to change lives for the better and for generating strong operating results. i want to start by thanking all of our team members for their dedication to advancing our mission to change lives for the better and for generating strong operating results Last year, we once again successfully executed on our community banking strategy and delivered value for customers, career success for employees, and meaningful operating results for shareholders. last year we once again successfully executed on our community banking strategy and delivered value for customers career success for employees and meaningful operating results for shareholders Our goal going forward remains the same: creating long-term value by growing the company, delivering effectively for customers, and operating with excellence so that we can continue to serve all of our stakeholders. Our 2025 results were strong. Operating earnings per share of $2.16 set a new record. We also maintained a solid balance sheet and demonstrated disciplined expense management. Our goal going forward remains the same: creating long-term value by growing the company, delivering effectively for customers, and operating with excellence so that we can continue to serve all of our stakeholders. our goal going forward remains the same creating long-term value by growing the company delivering effectively for customers and operating with excellence so that we can continue to serve all of our stakeholders Our 2025 results were strong. our 2025 results were strong Operating earnings per share of $2.16 set a new record. operating earnings per share of $2.16 set a new record We also maintained a solid balance sheet and demonstrated disciplined expense management. we also maintained a solid balance sheet and demonstrated disciplined expense management Customer deposits grew by $449 million, and we're seeing momentum from our enhanced deposit initiatives, which have increased customer engagement and driven a 25% growth in consumer demand deposit account openings year-over-year. Sales productivity is strong, and CD retention remains solid. Customer deposits grew by $449 million, and we're seeing momentum from our enhanced deposit initiatives, which have increased customer engagement and driven a 25% growth in consumer demand deposit account openings year-over-year. customer deposits grew by $449 million and we're seeing momentum from our enhanced deposit initiatives which have increased customer engagement and driven a 25% growth in consumer demand deposit account openings year-over-year Sales productivity is strong, and CD retention remains solid. sales productivity is strong and cd retention remains solid This has resulted in good deposit growth and an ability to effectively manage cost of funds over time. Our focused and expanded business banking team has generated great results, raising over $133 million in lower-cost operating deposits. This has resulted in good deposit growth and an ability to effectively manage cost of funds over time. this has resulted in good deposit growth and an ability to effectively manage cost of funds over time Our focused and expanded business banking team has generated great results, raising over $133 million in lower-cost operating deposits. our focused and expanded business banking team has generated great results raising over $133 million in lower-cost operating deposits Throughout the year, we highlighted some strategic actions that have offset organic loan growth. These actions represented more than an $800 million headwind during 2025. Even with these actions, our organic loan growth originations delivered overall net loan growth on a year-over-year basis. Over the course of 2025, we consistently drove growth in quarterly originations, creating a strong foundation for 2026 and beyond. Throughout the year, we highlighted some strategic actions that have offset organic loan growth. throughout the year we highlighted some strategic actions that have offset organic loan growth These actions represented more than an $800 million headwind during 2025. these actions represented more than an $800 million headwind during 2025 Even with these actions, our organic loan growth originations delivered overall net loan growth on a year-over-year basis. even with these actions our organic loan growth originations delivered overall net loan growth on a year-over-year basis Over the course of 2025, we consistently drove growth in quarterly originations, creating a strong foundation for 2026 and beyond. over the course of 2025 we consistently drove growth in quarterly originations creating a strong foundation for 2026 and beyond To support this ongoing loan growth, we've been adding new team members. This expands our ability to serve small businesses and middle-market customers throughout the footprint. Accordingly, in 2026, we expect loan growth to return to our historical growth rates in the mid-single-digit range. To support this ongoing loan growth, we've been adding new team members. to support this ongoing loan growth we've been adding new team members This expands our ability to serve small businesses and middle-market customers throughout the footprint. this expands our ability to serve small businesses and middle-market customers throughout the footprint Accordingly, in 2026, we expect loan growth to return to our historical growth rates in the mid-single-digit range. accordingly in 2026 we expect loan growth to return to our historical growth rates in the mid-single-digit range We're also pleased with our non-interest income-generating performance in 2025. When excluding the bargain purchase and investment securities gains and losses, non-interest income of $277 million was up almost 7%. We're also pleased with our non-interest income-generating performance in 2025. we're also pleased with our non-interest income-generating performance in 2025 When excluding the bargain purchase and investment securities gains and losses, non-interest income of $277 million was up almost 7%. when excluding the bargain purchase and investment securities gains and losses non-interest income of $277 million was up almost 7% Non-interest income continues to represent more than 20% of total revenue and underscores the strength of our diversified revenue model as we've grown both non-interest income and net interest income at a similar pace. The drivers of non-interest income growth were broad-based. Commercial fees grew overall by 8%, led by 17% growth in cash management revenue. Non-interest income continues to represent more than 20% of total revenue and underscores the strength of our diversified revenue model as we've grown both non-interest income and net interest income at a similar pace. non-interest income continues to represent more than 20% of total revenue and underscores the strength of our diversified revenue model as we've grown both non-interest income and net interest income at a similar pace The drivers of non-interest income growth were broad-based. the drivers of non-interest income growth were broad-based Commercial fees grew overall by 8%, led by 17% growth in cash management revenue. commercial fees grew overall by 8% led by 17% growth in cash management revenue Fulton Financial Advisors continues to be a meaningful contributor to overall fee incomes. Wealth assets under management and administration surpassed $17 billion in 2025, and referrals from financial centers to our advisors increased 17%, or almost $50 million year-over-year. This strong level of activity was supported by significant new opportunities from legacy Republic First financial centers. Fulton Financial Advisors continues to be a meaningful contributor to overall fee incomes. fulton financial advisors continues to be a meaningful contributor to overall fee incomes Wealth assets under management and administration surpassed $17 billion in 2025, and referrals from financial centers to our advisors increased 17%, or almost $50 million year- over- year. wealth assets under management and administration surpassed $17 billion in 2025 and referrals from financial centers to our advisors increased 17% or almost $50 million year- over- year This strong level of activity was supported by significant new opportunities from legacy Republic First financial centers. this strong level of activity was supported by significant new opportunities from legacy republic first financial centers This highlights our strategy to bring new product and value to acquired customers and grow our overall revenue base. Turning to expenses, we continue to realize benefits from strategic initiatives driving positive operating leverage for the year. This highlights our strategy to bring new product and value to acquired customers and grow our overall revenue base. this highlights our strategy to bring new product and value to acquired customers and grow our overall revenue base Turning to expenses, we continue to realize benefits from strategic initiatives driving positive operating leverage for the year. turning to expenses we continue to realize benefits from strategic initiatives driving positive operating leverage for the year Our operating expenses grew by a modest 1.9% in 2025. When normalizing for a full year of Republic First expenses in 2024, our operating expenses would have been down 2.7% year-over-year, a meaningful contributor to profitability and efficiency. Our profitability, liquidity profile, and capital position all further improved during 2025. Our operating return on assets improved by 17 basis points to 1.28% as we continue to drive greater efficiencies across the bank. Our operating expenses grew by a modest 1.9% in 2025. our operating expenses grew by a modest 1.9% in 2025 When normalizing for a full year of Republic First expenses in 2024, our operating expenses would have been down 2.7% year-over-year, a meaningful contributor to profitability and efficiency. when normalizing for a full year of republic first expenses in 2024 our operating expenses would have been down 2.7% year-over-year a meaningful contributor to profitability and efficiency Our profitability, liquidity profile, and capital position all further improved during 2025. our profitability liquidity profile and capital position all further improved during 2025 Our operating return on assets improved by 17 basis points to 1.28% as we continue to drive greater efficiencies across the bank. our operating return on assets improved by 17 basis points to 1.28% as we continue to drive greater efficiencies across the bank We ended the year with a loan-to-deposit ratio of 91%, allowing for continued balance sheet flexibility. Our teams worked diligently to grow balances while also managing deposit costs. Our net interest margin was strong, increasing 9 basis points to 3.51% from the prior year. Net interest margin ended the fourth quarter at an even stronger position of 3.59% despite several Fed rate cuts. We ended the year with a loan-to-deposit ratio of 91%, allowing for continued balance sheet flexibility. we ended the year with a loan-to-deposit ratio of 91% allowing for continued balance sheet flexibility Our teams worked diligently to grow balances while also managing deposit costs. our teams worked diligently to grow balances while also managing deposit costs Our net interest margin was strong, increasing 9 basis points to 3.51% from the prior year. our net interest margin was strong increasing 9 basis points to 3.51% from the prior year Net interest margin ended the fourth quarter at an even stronger position of 3.59% despite several Fed rate cuts. net interest margin ended the fourth quarter at an even stronger position of 3.59% despite several fed rate cuts The consistent increase in net interest margin throughout the year demonstrated our relatively neutral interest rate profile. Our strong earnings also supported higher capital ratios, helping to grow tangible book value per share by 15%. Our capital ratios ended the year at the highest level seen in more than a decade, even after we increased our dividend and opportunistically repurchased $59 million of common stock. The consistent increase in net interest margin throughout the year demonstrated our relatively neutral interest rate profile. the consistent increase in net interest margin throughout the year demonstrated our relatively neutral interest rate profile Our strong earnings also supported higher capital ratios, helping to grow tangible book value per share by 15%. our strong earnings also supported higher capital ratios helping to grow tangible book value per share by 15% Our capital ratios ended the year at the highest level seen in more than a decade, even after we increased our dividend and opportunistically repurchased $59 million of common stock. our capital ratios ended the year at the highest level seen in more than a decade even after we increased our dividend and opportunistically repurchased $59 million of common stock Credit metrics meaningfully improved throughout 2025. Non-performing assets as a percent of total assets declined 11 basis points, ending the year at 58 basis points. Net charge-offs for the year remained historically low at 21 basis points as a percentage of average loans. Our allowance for loan losses ended the year at 1.51% of total loans. We believe we are well-positioned moving forward. Credit metrics meaningfully improved throughout 2025. credit metrics meaningfully improved throughout 2025 Non-performing assets as a percent of total assets declined 11 basis points, ending the year at 58 basis points. non-performing assets as a percent of total assets declined 11 basis points ending the year at 58 basis points Net charge-offs for the year remained historically low at 21 basis points as a percentage of average loans. net charge-offs for the year remained historically low at 21 basis points as a percentage of average loans Our allowance for loan losses ended the year at 1.51% of total loans. our allowance for loan losses ended the year at 1.51% of total loans We believe we are well-positioned moving forward. we believe we are well-positioned moving forward In November, we announced the acquisition of Blue Foundry Bancorp, a strategic move that strengthens our footprint and reinforces our community banking model. We're excited to have our new team members and customers join our organization as we expand our presence in several attractive markets. In November, we announced the acquisition of Blue Foundry Bancorp, a strategic move that strengthens our footprint and reinforces our community banking model. in november we announced the acquisition of blue foundry bancorp a strategic move that strengthens our footprint and reinforces our community banking model We're excited to have our new team members and customers join our organization as we expand our presence in several attractive markets. we're excited to have our new team members and customers join our organization as we expand our presence in several attractive markets This expansion positions us to deliver even greater value to our customers and shareholders as we leverage shared strengths and deepen relationships in these communities. Looking forward, we're excited about the opportunities ahead. We focus on making 2026 a year of continued strength, building on our momentum, driving growth, and delivering strong results for all stakeholders. This expansion positions us to deliver even greater value to our customers and shareholders as we leverage shared strengths and deepen relationships in these communities. this expansion positions us to deliver even greater value to our customers and shareholders as we leverage shared strengths and deepen relationships in these communities Looking forward, we're excited about the opportunities ahead. looking forward we're excited about the opportunities ahead We focus on making 2026 a year of continued strength, building on our momentum, driving growth, and delivering strong results for all stakeholders. we focus on making 2026 a year of continued strength building on our momentum driving growth and delivering strong results for all stakeholders Now I'll turn the call over to Rick to discuss our quarterly financial results and provide our 2026 operating guidance. Now I'll turn the call over to Rick to discuss our quarterly financial results and provide our 2026 operating guidance. now i'll turn the call over to rick to discuss our quarterly financial results and provide our 2026 operating guidance

Speaker 7: Thank you, Curt, and good morning. Unless I note otherwise, the quarterly comparisons I discussed are with the third quarter of 2025. Loan and deposit growth numbers I referenced are annualized percentage on a linked quarter basis. Starting on slide five, operating earnings per diluted share were $0.55, or $99.4 million of operating net income available to common shareholders. Thank you, Curt, and good morning. thank you curt and good morning Unless I note otherwise, the quarterly comparisons I discussed are with the third quarter of 2025. unless i note otherwise the quarterly comparisons i discussed are with the third quarter of 2025 Loan and deposit growth numbers I referenced are annualized percentage on a linked quarter basis. loan and deposit growth numbers i referenced are annualized percentage on a linked quarter basis Starting on slide five, operating earnings per diluted share were $0.55, or $99.4 million of operating net income available to common shareholders. starting on slide five operating earnings per diluted share were $0.55 or $99.4 million of operating net income available to common shareholders Net interest income grew 2.8% annualized from the previous quarter, while NIM expanded by two basis points despite 75 basis points of Fed rate cuts from September through December. Modest asset growth and positive credit trends combined with prudent management of deposit costs and a relatively neutral interest rate profile drove much of the linked quarter performance. Net interest income grew 2.8% annualized from the previous quarter, while NIM expanded by two basis points despite 75 basis points of Fed rate cuts from September through December. net interest income grew 2.8% annualized from the previous quarter while nim expanded by two basis points despite 75 basis points of fed rate cuts from september through december Modest asset growth and positive credit trends combined with prudent management of deposit costs and a relatively neutral interest rate profile drove much of the linked quarter performance. modest asset growth and positive credit trends combined with prudent management of deposit costs and a relatively neutral interest rate profile drove much of the linked quarter performance Total period-end loans increased $103 million during the quarter. Growth was driven across most loan categories and offset by declines in construction balances. Total period-end loans increased $103 million during the quarter. total period-end loans increased $103 million during the quarter Growth was driven across most loan categories and offset by declines in construction balances. growth was driven across most loan categories and offset by declines in construction balances As discussed throughout 2025, we continue to proactively work certain credits out of portfolio that don't align to our long-term strategy. During the quarter, we saw runoff of approximately $30 million of indirect auto and resolved an additional $211 million of adversely rated loans. In total, these strategic actions aggregated to a more than $800 million headwind for growth in 2025. As discussed throughout 2025, we continue to proactively work certain credits out of portfolio that don't align to our long-term strategy. as discussed throughout 2025 we continue to proactively work certain credits out of portfolio that don't align to our long-term strategy During the quarter, we saw runoff of approximately $30 million of indirect auto and resolved an additional $211 million of adversely rated loans. during the quarter we saw runoff of approximately $30 million of indirect auto and resolved an additional $211 million of adversely rated loans In total, these strategic actions aggregated to a more than $800 million headwind for growth in 2025. in total these strategic actions aggregated to a more than $800 million headwind for growth in 2025 Apart from the continued planned runoff of indirect auto, we expect the impact of these activities to moderate as we move into 2026. Accordingly, we expect to revert towards our long-term historical organic loan growth trends of mid-single digits. Total deposits grew $257 million, or 3.9%. Apart from the continued planned runoff of indirect auto, we expect the impact of these activities to moderate as we move into 2026. apart from the continued planned runoff of indirect auto we expect the impact of these activities to moderate as we move into 2026 Accordingly, we expect to revert towards our long-term historical organic loan growth trends of mid-single digits. accordingly we expect to revert towards our long-term historical organic loan growth trends of mid-single digits Total deposits grew $257 million, or 3.9%. total deposits grew $257 million or 3.9% Growth was relatively balanced across categories as interest-bearing deposit balances grew by $137 million and non-interest-bearing grew by $120 million. Our consumer business was a key driver of deposit growth. Commercial deposits and the number of commercial accounts remained stable. Growth was relatively balanced across categories as interest-bearing deposit balances grew by $137 million and non-interest-bearing grew by $120 million. growth was relatively balanced across categories as interest-bearing deposit balances grew by $137 million and non-interest-bearing grew by $120 million Our consumer business was a key driver of deposit growth. our consumer business was a key driver of deposit growth Commercial deposits and the number of commercial accounts remained stable. commercial deposits and the number of commercial accounts remained stable However, this segment did see a rebound in non-interest-bearing balances of $40 million. Municipal deposits decreased $254 million, while other wholesale funding, including brokers, declined $29 million. Finally, our loan-to-deposit ratio was unchanged, ending the quarter at 91%. However, this segment did see a rebound in non-interest-bearing balances of $40 million. however this segment did see a rebound in non-interest-bearing balances of $40 million Municipal deposits decreased $254 million, while other wholesale funding, including brokers, declined $29 million. municipal deposits decreased $254 million while other wholesale funding including brokers declined $29 million Finally, our loan-to-deposit ratio was unchanged, ending the quarter at 91%. finally our loan-to-deposit ratio was unchanged ending the quarter at 91% Moving to the investment portfolio, securities decreased $212 million as prepayments accelerated from previous periods. Investments as a percentage of total assets were 15%, a level that continues to provide balance sheet optionality moving forward. AOCI improved by $29 million. Net interest income on a non-FTE basis was $266 million, a $1.8 million increase linked quarter as net interest margin expanded 2 basis points to 3.59%. Moving to the investment portfolio, securities decreased $212 million as prepayments accelerated from previous periods. moving to the investment portfolio securities decreased $212 million as prepayments accelerated from previous periods Investments as a percentage of total assets were 15%, a level that continues to provide balance sheet optionality moving forward. investments as a percentage of total assets were 15% a level that continues to provide balance sheet optionality moving forward AOCI improved by $29 million. aoci improved by $29 million Net interest income on a non-FTE basis was $266 million, a $1.8 million increase linked quarter as net interest margin expanded 2 basis points to 3.59%. net interest income on a non-fte basis was $266 million a $1.8 million increase linked quarter as net interest margin expanded 2 basis points to 3.59% Loan yields declined 11 basis points to 5.82%. Fixed-rate asset repricing continues to provide some benefit to loan yields in the face of declining short-term rates, as illustrated on slide 22 of our earnings presentation. Loan yields declined 11 basis points to 5.82%. loan yields declined 11 basis points to 5.82% Fixed-rate asset repricing continues to provide some benefit to loan yields in the face of declining short-term rates, as illustrated on slide 22 of our earnings presentation. fixed-rate asset repricing continues to provide some benefit to loan yields in the face of declining short-term rates as illustrated on slide 22 of our earnings presentation Over the next 12 months, we have approximately $5.7 billion of fixed and adjustable rate earning assets subject to repricing, currently at a blended yield of 5.01%. Of note, accretion interest was down $2.2 million linked quarter to $10.5 million. Over the next 12 months, we have approximately $5.7 billion of fixed and adjustable rate earning assets subject to repricing, currently at a blended yield of 5.01%. over the next 12 months we have approximately $5.7 billion of fixed and adjustable rate earning assets subject to repricing currently at a blended yield of 5.01% Of note, accretion interest was down $2.2 million linked quarter to $10.5 million. of note accretion interest was down $2.2 million linked quarter to $10.5 million For the quarter, our average cost of total deposits decreased 10 basis points to 1.86%, while our total cost of funds declined 13 basis points due to quarterly wholesale repositioning aided by customer deposit growth. For the quarter, our average cost of total deposits decreased 10 basis points to 1.86%, while our total cost of funds declined 13 basis points due to quarterly wholesale repositioning aided by customer deposit growth. for the quarter our average cost of total deposits decreased 10 basis points to 1.86% while our total cost of funds declined 13 basis points due to quarterly wholesale repositioning aided by customer deposit growth Through the current rate-cutting cycle, our cumulative interest-bearing deposit beta has been 30%, while our total deposit beta has been 20%. Our deposit pricing strategy continues to balance the desire to fund future balance sheet growth while defending margin. Through the current rate-cutting cycle, our cumulative interest-bearing deposit beta has been 30%, while our total deposit beta has been 20%. through the current rate-cutting cycle our cumulative interest-bearing deposit beta has been 30% while our total deposit beta has been 20% Our deposit pricing strategy continues to balance the desire to fund future balance sheet growth while defending margin. our deposit pricing strategy continues to balance the desire to fund future balance sheet growth while defending margin Turning to slide seven, non-interest income for the quarter was stable at $70 million. While consolidated fees were flat, we saw strong linked quarter growth within our wealth, capital markets, and SBA businesses. Turning to slide seven, non-interest income for the quarter was stable at $70 million. turning to slide seven non-interest income for the quarter was stable at $70 million While consolidated fees were flat, we saw strong linked quarter growth within our wealth, capital markets, and SBA businesses. while consolidated fees were flat we saw strong linked quarter growth within our wealth capital markets and sba businesses Non-interest income as a percentage of total revenue equaled 21% for the fourth quarter. Moving to slide eight, non-interest expense on an operating basis was $204 million, an increase of $12.7 million linked quarter. This increase was mostly attributable to salaries and benefits driven by higher accrual expense of $7.5 million related to variable compensation due to continued strong annual performance. Non-interest income as a percentage of total revenue equaled 21% for the fourth quarter. non-interest income as a percentage of total revenue equaled 21% for the fourth quarter Moving to slide eight, non-interest expense on an operating basis was $204 million, an increase of $12.7 million linked quarter. moving to slide eight non-interest expense on an operating basis was $204 million an increase of $12.7 million linked quarter This increase was mostly attributable to salaries and benefits driven by higher accrual expense of $7.5 million related to variable compensation due to continued strong annual performance. this increase was mostly attributable to salaries and benefits driven by higher accrual expense of $7.5 million related to variable compensation due to continued strong annual performance Other noteworthy items in the quarter amounted to $2.5 million and included unseasonably high snow removal costs and elevated healthcare claims. Absent these expenses, our quarterly and annual expenses would have been within our previously expected ranges. Of note, core salaries increased less than 1% from the prior quarter. Other noteworthy items in the quarter amounted to $2.5 million and included unseasonably high snow removal costs and elevated healthcare claims. Absent these expenses, our quarterly and annual expenses would have been within our previously expected ranges. other noteworthy items in the quarter amounted to $2.5 million and included unseasonably high snow removal costs and elevated healthcare claims. absent these expenses our quarterly and annual expenses would have been within our previously expected ranges Of note, core salaries increased less than 1% from the prior quarter. of note core salaries increased less than 1% from the prior quarter Items excluded from operating expenses as listed on slide eight include charges of $5.4 million of core deposit intangible amortization, $2.8 million of FultonFirst implementation and asset disposals, and $802,000 of acquisition-related expense. Items excluded from operating expenses as listed on slide eight include charges of $5.4 million of core deposit intangible amortization, $2.8 million of Fulton First implementation and asset disposals, and $802,000 of acquisition-related expense. items excluded from operating expenses as listed on slide eight include charges of $5.4 million of core deposit intangible amortization $2.8 million of fulton first implementation and asset disposals and $802,000 of acquisition-related expense Turning to asset quality, provision expense of $2.9 million was lower than last quarter and below our expected range. The quarterly provision was positively impacted by a $5 million recovery from a loan acquired in the Republic First Bank acquisition. As Curt mentioned, we saw positive trends throughout the book. Net charge-offs increased slightly to 24 basis points, while non-performing assets to total assets improved 5 basis points to 0.58%. Turning to asset quality, provision expense of $2.9 million was lower than last quarter and below our expected range. turning to asset quality provision expense of $2.9 million was lower than last quarter and below our expected range The quarterly provision was positively impacted by a $5 million recovery from a loan acquired in the Republic First Bank acquisition. the quarterly provision was positively impacted by a $5 million recovery from a loan acquired in the republic first bank acquisition As Curt mentioned, we saw positive trends throughout the book. as curt mentioned we saw positive trends throughout the book Net charge-offs increased slightly to 24 basis points, while non-performing assets to total assets improved 5 basis points to 0.58%. net charge-offs increased slightly to 24 basis points while non-performing assets to total assets improved 5 basis points to 0.58% Our allowance for credit losses to total loans ratio decreased from 1.57% to 1.51%, while our ACL to non-performing loan coverage increased to 198%. Slide 10 shows a snapshot of our capital base. We maintain a healthy capital position that provides us with balance sheet flexibility. During the quarter, we repurchased 1.1 million shares at a weighted average cost of $18.34. Our allowance for credit losses to total loans ratio decreased from 1.57% to 1.51%, while our ACL to non-performing loan coverage increased to 198%. our allowance for credit losses to total loans ratio decreased from 1.57% to 1.51% while our acl to non-performing loan coverage increased to 198% Slide 10 shows a snapshot of our capital base. slide 10 shows a snapshot of our capital base We maintain a healthy capital position that provides us with balance sheet flexibility. we maintain a healthy capital position that provides us with balance sheet flexibility During the quarter, we repurchased 1.1 million shares at a weighted average cost of $18.34. during the quarter we repurchased 1.1 million shares at a weighted average cost of $18.34 In December, our board approved a new repurchase authorization of $150 million, which is in effect through January of 2027. Inclusive of share repurchases, internal capital generation was roughly up to $77 million. Our tangible common equity to tangible asset ratio increased to 8.5%, while CET1 increased to 11.8%. On slide 11, we are providing operating guidance for 2026. In December, our board approved a new repurchase authorization of $150 million, which is in effect through January of 2027. in december our board approved a new repurchase authorization of $150 million which is in effect through january of 2027 Inclusive of share repurchases, internal capital generation was roughly up to $77 million. inclusive of share repurchases internal capital generation was roughly up to $77 million Our tangible common equity to tangible asset ratio increased to 8.5%, while CET1 increased to 11.8%. our tangible common equity to tangible asset ratio increased to 8.5% while cet1 increased to 11.8% On slide 11, we are providing operating guidance for 2026. on slide 11 we are providing operating guidance for 2026 Our guidance assumes one 25 basis points Fed cut in March and assumes our previously announced acquisition of Blue Foundry Bancorp closes early in 2Q 2026. Our 2026 guidance is as follows: Net interest income of $1,120 million-$1,140 million. Our NII guide assumes an annual FTE adjustment of $16 million-$18 million. Loan loss provision expense of $55 million-$75 million. Our guidance assumes one 25 basis points Fed cut in March and assumes our previously announced acquisition of Blue Foundry Bancorp closes early in 2Q 2026. our guidance assumes one 25 basis points fed cut in march and assumes our previously announced acquisition of blue foundry bancorp closes early in 2q 2026 Our 2026 guidance is as follows: Net interest income of $1,120 million-$1,140 million. our 2026 guidance is as follows net interest income of $1,120 million-$1,140 million Our NII guide assumes an annual FTE adjustment of $16 million-$18 million. our nii guide assumes an annual fte adjustment of $16 million-$18 million Loan loss provision expense of $55 million-$75 million. loan loss provision expense of $55 million-$75 million Non-interest income of $285 million-$300 million. Operating expense of $800 million-$835 million. An effective tax rate of 18.5%-19.5%. Non-interest income of $285 million-$300 million. non-interest income of $285 million-$300 million Operating expense of $800 million-$835 million. operating expense of $800 million-$835 million An effective tax rate of 18.5%-19.5%. an effective tax rate of 18.5%-19.5% Finally, non-operating expenses of approximately $60 million, which includes $22 million of CDI and $36 million of merger-related costs. With that, we'll now turn the call over to the operator for any questions. Finally, non-operating expenses of approximately $60 million, which includes $22 million of CDI and $36 million of merger-related costs. finally non-operating expenses of approximately $60 million which includes $22 million of cdi and $36 million of merger-related costs With that, we'll now turn the call over to the operator for any questions. with that we'll now turn the call over to the operator for any questions

Speaker 5: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Daniel Tamayo with Raymond James. Your line is now open. Thank you. thank you As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. as a reminder to ask a question please press star one one on your telephone and wait for your name to be announced To withdraw your question, please press star one one again. to withdraw your question please press star one one again Please stand by while we compile the Q&A roster. please stand by while we compile the q&a roster Our first question comes from the line of Daniel Tamayo with Raymond James. our first question comes from the line of daniel tamayo with raymond james Your line is now open. your line is now open

Speaker 2: Thank you. Good morning, Curt. Good morning, Rick. Thank you. thank you Good morning, Curt. good morning curt Good morning, Rick. good morning rick

Speaker 1: Good morning, Dan. Good morning, Dan. good morning dan

Speaker 2: Yeah. Maybe starting on the loan growth guide, the mid-single digits in 2026. Appreciate your comments around the lenders that were hired recently and some of the headwinds that were there in 2025 that are no longer there in 2026. Yeah. yeah Maybe starting on the loan growth guide, the mid-single digits in 2026. maybe starting on the loan growth guide the mid-single digits in 2026 Appreciate your comments around the lenders that were hired recently and some of the headwinds that were there in 2025 that are no longer there in 2026. appreciate your comments around the lenders that were hired recently and some of the headwinds that were there in 2025 that are no longer there in 2026 Maybe you could quantify that a bit for us, just give us a sense for what that headwind won't be and if there's a way you can quantify the lenders, and then if there's any number you could put around what you're assuming in pay downs as well. Thank you very much. Maybe you could quantify that a bit for us, just give us a sense for what that headwind won't be and if there's a way you can quantify the lenders, and then if there's any number you could put around what you're assuming in pay downs as well. maybe you could quantify that a bit for us just give us a sense for what that headwind won't be and if there's a way you can quantify the lenders and then if there's any number you could put around what you're assuming in pay downs as well Thank you very much. thank you very much

Speaker 1: Yeah, Danny, just a little color on that overall. We look back on last year, we had more than $800 million of headwinds around strategic actions that we took, de-risk the portfolio, get the portfolio where we wanted it to be. So we see those things moderating, and I think that's a big if you look back on last year, we feel it was about 3.5% organic growth, eliminating those headwinds. Yeah, Danny, just a little color on that overall. yeah danny just a little color on that overall We look back on last year, we had more than $800 million of headwinds around strategic actions that we took, de-risk the portfolio, get the portfolio where we wanted it to be. we look back on last year we had more than $800 million of headwinds around strategic actions that we took de-risk the portfolio get the portfolio where we wanted it to be So we see those things moderating, and I think that's a big if you look back on last year, we feel it was about 3.5% organic growth, eliminating those headwinds. so we see those things moderating and i think that's a big if you look back on last year we feel it was about 3.5% organic growth eliminating those headwinds So just that really gets us back close to those long-term trends. And then as we get the increased productivity, additional people in really every area of the company from our FultonFirst initiative, we're really building productivity. So we've added bankers in commercial banking, business banking, SBA. We're moving all of those teams forward just from an overall count, and we're doing that kind of each quarter. So it's not big teams that we're adding. So just that really gets us back close to those long-term trends. so just that really gets us back close to those long-term trends And then as we get the increased productivity, additional people in really every area of the company from our Fulton First initiative, we're really building productivity. and then as we get the increased productivity additional people in really every area of the company from our fulton first initiative we're really building productivity So we've added bankers in commercial banking, business banking, SBA. so we've added bankers in commercial banking business banking sba We're moving all of those teams forward just from an overall count, and we're doing that kind of each quarter. we're moving all of those teams forward just from an overall count and we're doing that kind of each quarter So it's not big teams that we're adding. so it's not big teams that we're adding It's a person or two or a small team, and we just continue to build that momentum. If you look at underlying originations for each of the quarters this year, we built momentum. Originations were up each quarter. The pipeline is up year-over-year as well. So as we stand here today, we're confident getting back into that mid-single digit range and then continuing that momentum to move it forward. It's a person or two or a small team, and we just continue to build that momentum. it's a person or two or a small team and we just continue to build that momentum If you look at underlying originations for each of the quarters this year, we built momentum. if you look at underlying originations for each of the quarters this year we built momentum Originations were up each quarter. originations were up each quarter The pipeline is up year-over-year as well. the pipeline is up year-over-year as well So as we stand here today, we're confident getting back into that mid-single digit range and then continuing that momentum to move it forward. so as we stand here today we're confident getting back into that mid-single digit range and then continuing that momentum to move it forward

Speaker 2: Thanks, Curt. And any commentary on the pay downs assumptions relative to where you've been? Thanks, Curt. thanks curt And any commentary on the pay downs assumptions relative to where you've been? and any commentary on the pay downs assumptions relative to where you've been

Speaker 1: Yeah. So as we look forward, obviously, we roll the maturities forward. We make assumptions on just business happening. So we really don't see just the normal portfolio pay downs and prepayments really any different year-over-year. Yeah. yeah So as we look forward, obviously, we roll the maturities forward. so as we look forward obviously we roll the maturities forward We make assumptions on just business happening. we make assumptions on just business happening So we really don't see just the normal portfolio pay downs and prepayments really any different year-over-year. so we really don't see just the normal portfolio pay downs and prepayments really any different year-over-year Again, in 2025, it was really those strategic actions that we took that were the headwinds. So we really don't see underlying changes in those prepayment activities. We feel pretty good about the ability to forecast those. Again, in 2025, it was really those strategic actions that we took that were the headwinds. again in 2025 it was really those strategic actions that we took that were the headwinds So we really don't see underlying changes in those prepayment activities. so we really don't see underlying changes in those prepayment activities We feel pretty good about the ability to forecast those. we feel pretty good about the ability to forecast those

Speaker 2: Okay. Terrific. And then maybe just a clarification on the loss provision guidance as to how you're getting there. Quick math for me as I'm working through my model, it looks like either the net charge-offs would need to come down off the fourth quarter level or the reserves would need to come down. Maybe just a little color on how you're thinking about the provision next year. Okay. okay Terrific. terrific And then maybe just a clarification on the loss provision guidance as to how you're getting there. and then maybe just a clarification on the loss provision guidance as to how you're getting there Quick math for me as I'm working through my model, it looks like either the net charge-offs would need to come down off the fourth quarter level or the reserves would need to come down. quick math for me as i'm working through my model it looks like either the net charge-offs would need to come down off the fourth quarter level or the reserves would need to come down Maybe just a little color on how you're thinking about the provision next year. maybe just a little color on how you're thinking about the provision next year

Speaker 7: Yeah, Danny, it's Rick. Yeah, look, I think all else equal, obviously, thinking about mid-single digits growth, and you're kind of backing into it, in a stable environment, you'd consider continue to see allowance kind of drift a little bit lower, like I said, assuming a stable credit environment and a stable economic environment. So you're right. I think from a charge-off perspective, relatively flat with what we've seen this year is what we're expecting. Yeah, Danny, it's Rick. yeah danny it's rick Yeah, look, I think all else equal, obviously, thinking about mid-single digits growth, and you're kind of backing into it, in a stable environment, you'd consider continue to see allowance kind of drift a little bit lower, like I said, assuming a stable credit environment and a stable economic environment. yeah look i think all else equal obviously thinking about mid-single digits growth and you're kind of backing into it in a stable environment you'd consider continue to see allowance kind of drift a little bit lower like i said assuming a stable credit environment and a stable economic environment So you're right. so you're right I think from a charge-off perspective, relatively flat with what we've seen this year is what we're expecting. i think from a charge-off perspective relatively flat with what we've seen this year is what we're expecting

Speaker 2: Okay. Very helpful. Thanks for all the color, guys. Appreciate it. Okay. okay Very helpful. very helpful Thanks for all the color, guys. thanks for all the color guys Appreciate it. appreciate it

Speaker 7: Thanks, Dan. Thanks, Dan. thanks dan

Speaker 5: Our next question comes from the line of David Bishop with Hovde Group LLC. He'll let us know open. Our next question comes from the line of David Bishop with Hovde Group LLC. our next question comes from the line of david bishop with hovde group llc He'll let us know open. he'll let us know open

Speaker 3: Yeah. Good morning, gentlemen. Yeah. yeah Good morning, gentlemen. good morning gentlemen

Speaker 1: Good morning. Good morning. good morning

Speaker 3: Curious, as you talk about or think about the mid-single digit growth rate next year, just curious, do you think the distribution of the loan mix changes materially in terms of the new hire? Do you think that's going to come more out of the C&I book versus CRE? Just curious how you're thinking about production next year. Curious, as you talk about or think about the mid-single digit growth rate next year, just curious, do you think the distribution of the loan mix changes materially in terms of the new hire? curious as you talk about or think about the mid-single digit growth rate next year just curious do you think the distribution of the loan mix changes materially in terms of the new hire Do you think that's going to come more out of the C&I book versus CRE? do you think that's going to come more out of the c&i book versus cre Just curious how you're thinking about production next year. just curious how you're thinking about production next year

Speaker 1: Yeah. So overall, what served us really well over the long term is having a diversified loan book. So our strategy is to grow each of those segments. They do grow at different paces over time. We think we have opportunity in CRE, C&I, business banking, all of those categories. We feel that that could be drivers to the accelerated organic growth. Yeah. yeah So overall, what served us really well over the long term is having a diversified loan book. so overall what served us really well over the long term is having a diversified loan book So our strategy is to grow each of those segments. so our strategy is to grow each of those segments They do grow at different paces over time. they do grow at different paces over time We think we have opportunity in CRE, C&I, business banking, all of those categories. we think we have opportunity in cre c&i business banking all of those categories We feel that that could be drivers to the accelerated organic growth. we feel that that could be drivers to the accelerated organic growth And we have a balance sheet mix that we can really lean in and grow any of those at normal pace or even accelerated pace. You look at our CRE concentration. It's below 200%. We're selective, but it's a good position to be in, and we really want to grow all categories. But we think specifically in those three, we can do a little outsized growth year-over-year. And we have a balance sheet mix that we can really lean in and grow any of those at normal pace or even accelerated pace. and we have a balance sheet mix that we can really lean in and grow any of those at normal pace or even accelerated pace You look at our CRE concentration. you look at our cre concentration It's below 200%. it's below 200% We're selective, but it's a good position to be in, and we really want to grow all categories. we're selective but it's a good position to be in and we really want to grow all categories But we think specifically in those three, we can do a little outsized growth year-over-year. but we think specifically in those three we can do a little outsized growth year-over-year

Speaker 3: Got it. Then in terms of the OpEx guide, you mentioned some of the hiring you've done here. Sort of excluding the Blue Foundry deal, do you think you're going to be more aggressive maybe in some of the new New Jersey markets in terms of looking to add bankers up in that market relative to maybe some of the legacy Pennsylvania footprint? Got it. got it Then in terms of the OpEx guide, you mentioned some of the hiring you've done here. then in terms of the opex guide you mentioned some of the hiring you've done here Sort of excluding the Blue Foundry deal, do you think you're going to be more aggressive maybe in some of the new New Jersey markets in terms of looking to add bankers up in that market relative to maybe some of the legacy Pennsylvania footprint? sort of excluding the blue foundry deal do you think you're going to be more aggressive maybe in some of the new new jersey markets in terms of looking to add bankers up in that market relative to maybe some of the legacy pennsylvania footprint

Speaker 1: Well, specifically on the guide on expenses, we're always active in recruiting talented people to join the team. So there's really nothing specific in the guide other than normal opportunistic hires in the marketplace. That's an ongoing effort really in all years. So we have that baked into the normal run rate around continuing to be able to add to the team. So there's nothing in the guide that's outsized in expenses for new hires. Well, specifically on the guide on expenses, we're always active in recruiting talented people to join the team. well specifically on the guide on expenses we're always active in recruiting talented people to join the team So there's really nothing specific in the guide other than normal opportunistic hires in the marketplace. so there's really nothing specific in the guide other than normal opportunistic hires in the marketplace That's an ongoing effort really in all years. that's an ongoing effort really in all years So we have that baked into the normal run rate around continuing to be able to add to the team. so we have that baked into the normal run rate around continuing to be able to add to the team So there's nothing in the guide that's outsized in expenses for new hires. so there's nothing in the guide that's outsized in expenses for new hires

Speaker 3: Got it. Appreciate the color. Got it. got it Appreciate the color. appreciate the color

Speaker 5: Thank you. As a reminder, to ask a question at this time, please press star one one on your touch-tone telephone. Our next question comes from the line of Matthew Breese with Stephens Inc. Your line is open. Thank you. thank you As a reminder, to ask a question at this time, please press star one one on your touch-tone telephone. as a reminder to ask a question at this time please press star one one on your touch-tone telephone Our next question comes from the line of Matthew Breese with Stephens Inc. Your line is open. our next question comes from the line of matthew breese with stephens inc your line is open

Speaker 4: Hey, good morning. Hey, good morning. hey good morning

Speaker 1: Morning, Matt. Morning, Matt. morning matt

Speaker 7: Morning, Matt. Morning, Matt. morning matt

Speaker 4: I was hoping you could help us out with deposits. We'd love your thoughts around deposit growth for this year, including some composition thoughts. And then, Rick, if you have it, either the period end or most recent cost of deposits just to give us some sense of trajectory on the overall cost of funds. I was hoping you could help us out with deposits. i was hoping you could help us out with deposits We'd love your thoughts around deposit growth for this year, including some composition thoughts. we'd love your thoughts around deposit growth for this year including some composition thoughts And then, Rick, if you have it, either the period end or most recent cost of deposits just to give us some sense of trajectory on the overall cost of funds. and then rick if you have it either the period end or most recent cost of deposits just to give us some sense of trajectory on the overall cost of funds

Speaker 1: Yeah, Matt. Just a little bit on deposit growth. We feel we do have some good momentum. We reference some of the account opening and customer engagement things that we've been doing that are driving momentum. Again, it's consumer, small business are really outsized there. We referenced the Treasury performance. Yeah, Matt. yeah matt Just a little bit on deposit growth. just a little bit on deposit growth We feel we do have some good momentum. we feel we do have some good momentum We reference some of the account opening and customer engagement things that we've been doing that are driving momentum. we reference some of the account opening and customer engagement things that we've been doing that are driving momentum Again, it's consumer, small business are really outsized there. again it's consumer small business are really outsized there We referenced the Treasury performance. we referenced the treasury performance We referenced it in a fee income basis, 17%, but that's a really good generator of low-cost operating deposits. So really, in all those categories, consumer, just core consumer, kind of always building that. Really good momentum in business banking. We referenced it in a fee income basis, 17%, but that's a really good generator of low-cost operating deposits. we referenced it in a fee income basis 17% but that's a really good generator of low-cost operating deposits So really, in all those categories, consumer, just core consumer, kind of always building that. so really in all those categories consumer just core consumer kind of always building that Really good momentum in business banking. really good momentum in business banking And then on Treasury and cash management on the corporate side, we have some outpaced momentum there as well. So those are the categories that we feel really good about the team's driving growth. And then on Treasury and cash management on the corporate side, we have some outpaced momentum there as well. and then on treasury and cash management on the corporate side we have some outpaced momentum there as well So those are the categories that we feel really good about the team's driving growth. so those are the categories that we feel really good about the team's driving growth

Speaker 7: Yeah, Matt. And then just on your spot question, we finished December at 1.80%, so about 6 basis points lower than the quarterly average. Yeah, Matt. yeah matt And then just on your spot question, we finished December at 1.80%, so about 6 basis points lower than the quarterly average. and then just on your spot question we finished december at 1.80% so about 6 basis points lower than the quarterly average

Speaker 4: Got it. Okay. And then, Curt, I heard you on the pipeline sound strong. I would love any sort of percentage comparison. I think you said it was up year-over-year. And then I heard you talk a little bit about kind of more diversified loan growth as you integrate Blue Foundry. Got it. got it Okay. okay And then, Curt, I heard you on the pipeline sound strong. and then curt i heard you on the pipeline sound strong I would love any sort of percentage comparison. i would love any sort of percentage comparison I think you said it was up year-over-year. i think you said it was up year-over-year And then I heard you talk a little bit about kind of more diversified loan growth as you integrate Blue Foundry. and then i heard you talk a little bit about kind of more diversified loan growth as you integrate blue foundry Curious geography-wise, given their geography in northern New Jersey, what are your thoughts on kind of inching into the metro New York City market for commercial real estate and just some of your thoughts around that? Curious geography-wise, given their geography in northern New Jersey, what are your thoughts on kind of inching into the metro New York City market for commercial real estate and just some of your thoughts around that? curious geography-wise given their geography in northern new jersey what are your thoughts on kind of inching into the metro new york city market for commercial real estate and just some of your thoughts around that

Speaker 1: Yeah. So, first, on the pipeline, so I was specifically referencing the commercial pipeline, and that's up more than 10% year-over-year. So, it's a marked improvement. We've seen a little improvement in the pull-through rate too. You've heard me talk about that before, not just things in the pipeline, but customers actually spending the money and moving forward with the project or purchase. Yeah. yeah So, first, on the pipeline, so I was specifically referencing the commercial pipeline, and that's up more than 10% year-over-year. so first on the pipeline so i was specifically referencing the commercial pipeline and that's up more than 10% year-over-year So, it's a marked improvement. so it's a marked improvement We've seen a little improvement in the pull-through rate too. we've seen a little improvement in the pull-through rate too You've heard me talk about that before, not just things in the pipeline, but customers actually spending the money and moving forward with the project or purchase. you've heard me talk about that before not just things in the pipeline but customers actually spending the money and moving forward with the project or purchase We see a little positive momentum there as well. So a couple of those factors, I think, really help us be confident in that momentum as we move forward. Then on geography, we really like the northern New Jersey market. We're in that market. This acquisition fills out, gives us a good franchise there. Crossing the state lines there is not within our strategy. We see a little positive momentum there as well. we see a little positive momentum there as well So a couple of those factors, I think, really help us be confident in that momentum as we move forward. so a couple of those factors i think really help us be confident in that momentum as we move forward Then on geography, we really like the northern New Jersey market. then on geography we really like the northern new jersey market We're in that market. we're in that market This acquisition fills out, gives us a good franchise there. this acquisition fills out gives us a good franchise there Crossing the state lines there is not within our strategy. crossing the state lines there is not within our strategy

Speaker 4: Great. And then last one, I guess for Rick or Curt, just a couple of nitpicky questions on fee income. Could you help me out with, first of all, your thoughts around commercial interest rate swap income? It's a bit all over the place, but the fourth quarter was stronger than I was anticipating. Great. great And then last one, I guess for Rick or Curt, just a couple of nitpicky questions on fee income. and then last one i guess for rick or curt just a couple of nitpicky questions on fee income Could you help me out with, first of all, your thoughts around commercial interest rate swap income? could you help me out with first of all your thoughts around commercial interest rate swap income It's a bit all over the place, but the fourth quarter was stronger than I was anticipating. it's a bit all over the place but the fourth quarter was stronger than i was anticipating What's a good run rate there, or what are you expecting there? And then the other one is just other fee income dropped quite a bit this quarter, and I'm curious what you're expecting for run rate there as well. What's a good run rate there, or what are you expecting there? what's a good run rate there or what are you expecting there And then the other one is just other fee income dropped quite a bit this quarter, and I'm curious what you're expecting for run rate there as well. and then the other one is just other fee income dropped quite a bit this quarter and i'm curious what you're expecting for run rate there as well

Speaker 1: Matt, first on the swap income, that really tracks with originations, and it's typically the larger deals that would have a swap versus a fixed rate. So that you're right, that does bounce from quarter to quarter, and it really ties and correlates to originations and some larger originations. So it's natural, as you've seen, growth and origination accelerating the fourth quarter. That's pretty in line with what we would expect from the derivatives too. Matt, first on the swap income, that really tracks with originations, and it's typically the larger deals that would have a swap versus a fixed rate. matt first on the swap income that really tracks with originations and it's typically the larger deals that would have a swap versus a fixed rate So that you're right, that does bounce from quarter to quarter, and it really ties and correlates to originations and some larger originations. so that you're right that does bounce from quarter to quarter and it really ties and correlates to originations and some larger originations So it's natural, as you've seen, growth and origination accelerating the fourth quarter. so it's natural as you've seen growth and origination accelerating the fourth quarter That's pretty in line with what we would expect from the derivatives too. that's pretty in line with what we would expect from the derivatives too

Speaker 7: Yeah. And Matt, on the other component, I would say it's a little bit in that other really driving, call it that, quarterly volatility is income from equity method investments. So over the course of the year, we had a couple that improved in valuation, and then the fourth quarter, we had one that declined about, well, the net of it was around $1.7 million. So, probably $2.5 million is a reasonable level for that on a normalized basis. Yeah. yeah And Matt, on the other component, I would say it's a little bit in that other really driving, call it that, quarterly volatility is income from equity method investments. and matt on the other component i would say it's a little bit in that other really driving call it that quarterly volatility is income from equity method investments So over the course of the year, we had a couple that improved in valuation, and then the fourth quarter, we had one that declined about, well, the net of it was around $1.7 million. so over the course of the year we had a couple that improved in valuation and then the fourth quarter we had one that declined about well the net of it was around $1.7 million So, probably $2.5 million is a reasonable level for that on a normalized basis. so probably $2.5 million is a reasonable level for that on a normalized basis

Speaker 4: Great. I'll leave it there. Thank you. Great. great I'll leave it there. i'll leave it there Thank you. thank you

Speaker 7: Thank you. That's it. Thank you. thank you That's it. that's it

Speaker 5: Thank you. And I'm currently showing no further questions at this time. I now would like to hand the call back over to Curt Myers for closing remarks. Thank you. thank you And I'm currently showing no further questions at this time. and i'm currently showing no further questions at this time I now would like to hand the call back over to Curt Myers for closing remarks. i now would like to hand the call back over to curt myers for closing remarks

Speaker 1: Great. Thank you, everyone, for joining us today. Hopefully, you'll be able to be with us when we discuss first quarter results in April. Thank you. Great. great Thank you, everyone, for joining us today. thank you everyone for joining us today Hopefully, you'll be able to be with us when we discuss first quarter results in April. hopefully you'll be able to be with us when we discuss first quarter results in april Thank you. thank you

Speaker 5: This concludes today's conference. Thank you for your participation. You may now disconnect. This concludes today's conference. this concludes today's conference Thank you for your participation. thank you for your participation You may now disconnect. you may now disconnect