Rate-Sensitive Fulton Financial Looks Stuck Without Higher Rates Or M&A

I wasn’t much of a fan of Fulton Financial (FULT), a small ($25B in assets) multistate bank headquartered in Pennsylvania, a year ago, and the pandemic certainly did the company no favors. Forced to shift from focus from growth and efficiency improvements to capital and liquidity, 2020 was basically a lost year for the company, though one that doesn’t seem to have done too much damage to capital or credit.

Fulton shares have generated a negative 12% return over the past year, underperforming a peer group that is basically flat over that period. Although the return potential is a fair bit more interesting now (in the low double-digits on an annualized basis), the potential rides on higher rates boosting spread income in future years and/or management putting some capital to work in accretive M&A.

 

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Rate-Sensitive Fulton Financial Looks Stuck Without Higher Rates Or M&A