Good day, and thank you for standing by. Welcome to the Fulton Financial first quarter 2024 results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Matt Jozwiak, Director of Investor Relations. Please go ahead. Good morning, and thanks for joining us for Fulton Financial's conference call and webcast to discuss our earnings for the first quarter ended March 31st, 2024. Your host for today's conference call is Curt Myers, Chairman and Chief Executive Officer. Joining Curt today is Beth Chivinski, Interim 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 fult.com by clicking on Investor Relations and then on News. The slides can also be found on the 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, in 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 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 17 through 20 of today's presentation for a reconciliation of those non-GAAP financial measures to the most comparable GAAP measures. Now, I'd like to turn the call over to your host, Curt Myers. Well, thanks, Matt, and good morning, everyone. For today's call, I'll be providing high-level thoughts on our performance for the quarter and provide a few comments on the company. Then I'll turn the call over to Beth Chivinski, Interim Chief Financial Officer, to review our financial results in more detail and step through our guidance for 2024. After our prepared remarks, we will be happy to take any questions you may have. We were pleased with our first quarter results. Operating earnings of $0.40 per share were a solid start to the year. We saw both deposit and loan growth. The net interest margin was in line with our expectations. We continue to have stable asset quality metrics, and our capital position remains strong. During the quarter, we also increased our committed liquidity by $1 billion. We repurchased 1.9 million shares of Fulton stock. I'd like to note that with this repurchase, we've now repurchased all 6.2 million shares of common stock issued in connection with the Prudential Bancorp, Inc. acquisition in 2022. As of March 31, 95 million remains from our 125 million 2024 repurchase authorization. Turning to growth for the quarter, first quarter deposits outpaced loan growth at $204 million or 4% annualized. Pricing, growth, and mix remain our focus as we continue to position our product offering to support and grow our customer base. Loan growth, as anticipated, moderated to $93 million or 2% on an annualized basis. Profitable growth and prudent credit decisions remain our focus. Our loan-to-deposit ratio ended the quarter at 98.6%, a linked quarter decline and well within our long-term operating target of 95%-105%. Despite ongoing market pricing pressures, net interest margin remained in line with our expectations, drifting lower by 4 basis points to 3.32%. Our noninterest income was solid at $57.1 million. We delivered record results in wealth management that helped offset a decline in customer interest rate swap income this quarter. Overall, we are pleased with our fee income performance and continue to benefit from the diversification of this revenue stream. Now, let me provide some comments on credit. The provision for credit losses was $10.9 million, up slightly from $9.8 million last quarter and in line with our expectations. While overall credit metrics remain historically strong, we saw some migration in certain credit metrics during the quarter. Criticized and classified loans drifted modestly higher. This migration is not specific to any particular industry, portfolio, or region, and we continue to focus on how higher interest rates and higher costs are impacting our customers. We remain cautious in our outlook for 2024. Now, looking forward, as I mentioned last quarter, our Fulton First initiative is an internal process to evaluate and improve how we operate. Three key tenets of this initiative to drive our strategic transformation are simplicity, focus, and productivity. During the quarter, we made good progress on this initiative with more work ahead of us. We anticipate sharing more details as appropriate in coming quarters. Overall, a solid start to the new year. Now, I'll turn the call over to Bethy to discuss our financial performance and 2024 guidance in more detail. Thank you, Curt, and good morning. Unless I note otherwise, the quarterly comparisons I mention are with the fourth quarter of 2024, and loan-to-deposit numbers I'll be referencing are annualized percentage growth on a linked quarter basis. So starting on slide eight, operating earnings per diluted share this quarter were $0.40. On operating net income available to common shareholders of $65.4 million, this compares to $0.42 of operating EPS in the fourth quarter of 2023. As Curt noted, loan growth was modest during the quarter, increasing $93 million or 2%. Commercial lending contributed $73 million of this growth or 2%. The primary contributors included commercial real estate of $124 million or 6% and construction loan growth of $24 million or 9%, offset by a decline in C&I loans of $78 million, primarily due to slightly lower line utilization. Our CRE growth was not concentrated in any one category or geography, and as shown in our earnings deck, remains well diversified. Consumer lending produced growth of $20 million or 1% during the quarter. An increase of $70 million in residential mortgages, primarily adjustable rate, was offset by decreases in other categories including consumer direct and indirect loans, residential construction, and home equity. Total deposits increased $204 million during the quarter. Growth in time deposits, primarily with maturities less than one year, more than offset the seasonal outflows in our municipal deposits of $137 million. Non-interest-bearing DDA balances ended the quarter at $5.1 billion or 23.4% of total deposits, in line with our expectations. Our net interest income guidance for 2024 assumes we will continue to see migration from non-interest-bearing to interest-bearing products throughout this year, but at a slower pace than we saw last year. Our investment portfolio was up modestly for the quarter, closing at $3.8 billion or 13.7% of assets. During the quarter, we purchased $210 million of MBS and CMO securities. These balance sheet trends are summarized in slide 10. You can see net interest income was $207 million, a $5 million decline linked quarter, primarily driven by the modest change in the mix of our deposit portfolio. As a result, net interest margin declined four basis points to 3.32% versus 3.36% last quarter. Loan yields increased seven basis points during the period, increasing to 5.9% versus 5.83% last quarter. Cycle to- date, our loan beta has been 50%. Our cost of total deposits increased 16 basis points to 195 basis points during the quarter. Cycle to date, our total deposit beta has been 36%. Turning to asset quality on slide 11, NPLs increased $2.8 million during the quarter, resulting in a slight increase in the NPL to loans ratio from 72 basis points at 12/31 to 73 basis points at quarter end. Net charge-offs were $8.6 million or 16 basis points. Gross charge-offs of $11 million were fairly granular, with the largest being $2.5 million on a C&I loan. Our allowance for credit losses as a percentage of loans increased slightly to 1.39% at quarter end. Turning to non-interest income on slide 12, wealth management revenues were $20.2 million, up $766,000 compared to the fourth quarter, passing the $20 million mark for the first time in company history. Wealth management represents about a third of our fee-based revenues, with over 80% of those revenues recurring. Also, the market value of assets under management and administration increased over $700 million to $15.5 billion at March 31st, also a new record for our company. Commercial banking fees declined $2 million to $18.8 million as customer swap revenue, heavily reliant on new originations, declined compared to a strong fourth quarter. Consumer banking fees declined approximately $400,000 to $11.7 million. First quarter seasonality played a part in that linked quarter decline. Our consumer banking business continues to deliver a very consistent income stream. Mortgage banking revenues increased $802,000 - $3.1 million and were driven by a seasonal increase in mortgage originations, as well as gain-on-sale spreads that rebounded from a low last quarter. We have a number of investments that are accounted for under the equity method on which we recorded a loss of $1.6 million reflected in the other income line. Moving to slide 13, non-interest expenses on an operating basis were $170 million, in line with the prior quarter and in line with our guidance. The material items we exclude from operating expenses include the following charges: $1 million for special FDIC assessment, $3.6 million related to the closure of some financial centers, $2.5 million of consulting expense, and $200,000 of severance expense. Slide 14 shows a snapshot of our capital base, and you can see as of March 31st, we maintain solid cushions over the regulatory minimums. Also, both bank and parent company liquidity improved during this quarter. On slide 16, we are reiterating our guidance for 2024. Our guidance assumes that a total of 75 basis points of Fed funds decreases will occur in the second half of 2024. So our guidance is as follows. We expect net interest income on a non-FTE basis to be in the range of $790 million-$820 million. We expect the provision for credit losses to be in the range of $45 million-$65 million. We expect non-interest income, excluding security gains, to be in the range of $235 million-$250 million. We expect non-interest expenses on an operating basis to be in the range of $670 million-$690 million for the year. T o reinforce, that estimate excludes potential non-operating charges we may incur as we move through the year. L astly, we expect our effective tax rate to be in the range of 17%-18% for the year. With that, we'll now turn the call over to Abigail for questions. Thank you. At this time, we'll conduct the question-and-answer session. As a reminder, to ask a question, you will need to 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. One moment for our first question. Our first question comes from Frank Schiraldi with Piper Sandler. Please proceed with your question. Good morning. Morning, Frank. Just on the Fulton First initiative, I got that it's sort of a work in progress and you're looking for efficiencies kind of across the board, but I assume that includes some expense saves as you close financial centers and so forth. So can you just remind us, when we look at the guide, I know there's no, you take out the non-operating stuff, but in terms of run rate expenses, does that include some benefit from Fulton First? Is it sort of your best guess at this point of what you get from Fulton First, or is that something that could, as we go through the year, move that expense guide lower? Yeah, Frank. We have certain expense saves in the back half of the year as we begin to implement Fulton First. So we really are in the analysis stage and building our plan. So the overall plan is really driven to accelerate growth in certain areas as we focus even more in certain areas. But we do expect to see benefits from operating efficiencies and doing things a little differently as well. So there are some expense components to the save. I'd just like to remind everybody that the Fulton First initiative is really an 18-month - 24-month journey, and we're in that 4 or 5 months of that work. So what you're really seeing right now is the investment or spend to develop the plan for implementation. W hen we get to the point of implementing, we'll be able to share more details with you around expected benefits. Okay. T hen on the loan growth, just looking at your guide on NII, is it fair to say does that just assume sort of 1Q-like loan growth spread across the year? T hen as a follow-up to that, if you could just remind us on the deposit side, what the muni outflows were this quarter and how the time frame flows to flow back in. Yeah, let me talk a little bit about loan growth, then I'll give it to Bethy for the municipal outflows, just the seasonality to that. So on loan growth, we've talked about our long-term organic growth targets in the 4%-6% range. I think in this environment, we're going to be at the low end or maybe even under the low end of that long-term range. So I think the growth in the first quarter, we may exceed that as we look forward, but it's going to be in the same ballpark. We are being prudent and disciplined on pricing and credit as we originate loans moving forward. The municipal outflows were $137 million. So with at least in certain of our areas, certain taxes are paid in the second quarter. We should see a blip up, not huge, in the second quarter, and then the third quarter is where we tend to see those spike. Gotcha. Okay. Thanks for the color. Thanks, Frank. One moment for our next question. Our next question comes from Daniel Tamayo with Raymond James. Please proceed with your question. Thanks. Good morning, everyone. Good morning, Danny. Maybe first just on the NII guidance reiterated from last quarter, and you kept the three rate cuts assumed, which I understand given where we were at the end of the quarter. But maybe if you could give us your best guess as to what that guidance might look like without the June cut and if there's any kind of other details in terms of how you're thinking about the impact of fewer rate cuts on that guidance, that would be helpful. So Danny, this is Bethy. We've kind of modeled that out. Really, we can tell on our loans that reprice immediately. It's $25 million on an annualized basis, but the harder thing to protect is deposits. But we've kind of modeled all that out a nd with no cuts, we think we're going to tilt toward the high end of the range, maybe a little bit higher. But again, they're going to occur later in the year, so the impact on the year is going to be moderated. Okay. All right. That's with no cuts, high end of the range. Okay. All right. T hen switching gears here, if I can, just to the office portfolio. Appreciate all the detail you guys put in the deck on that. Just wanted to know if you had, within that group of loans, what the amount that's either substandard or criticized or classified or however you think about the early stage for that a nd just curious how that portfolio is trending relative to the rest of your book. Yeah, Danny. We've seen stability in that overall portfolio. Balances are stable. We've moved some out or paid off. We've had some originations that we did not much this past quarter, but we did some in the fourth quarter. So that portfolio is really stable. We're pretty direct in sharing what we have in classified, criticized there, and it's shown stability as of today. Okay. All right. Understood. All right. Appreciate you taking my questions. You bet, Danny. One moment for our next question. Our next question comes from Feddie Strickland with Janney Montgomery Scott, Research Division. Your line is open. Hey. Good morning, everybody. Morning, Feddie. Just wanted to continue on that last question on the office. Appreciate the detail in the deck, but I see that there's $146 million located in the central business districts. Is that pretty evenly distributed across geographies, or is it more Philly or D.C. or elsewhere? Just trying to get a sense of which central business district those might be in? Yeah. Our largest is Philadelphia, and it's not a lot of loans. We're getting it handy here. It's seven loans, and Philly is the biggest portion. T hen actually, the next biggest portion, as we look at the distribution, is spread throughout. T hen D.C. and Baltimore would be less than half of what we have in Philadelphia. A gain, those numbers overall are pretty granular. Philadelphia is $255 of that total. So none of those are a significant portion. It's pretty diversified and spread out. Got it. That's helpful. S witching gears for a second, it's great to see credit relatively stable this quarter, and your net charge offs are actually lower than what I had modeled. Can you talk about what you're seeing in terms of trends in criticized and classified? Yeah. So criticized and classified is moving up slightly. I think the number is about $77 million linked quarter. So not a significant move, but it is trending up a little. We are adding, so there's generation there, and then there's resolution as well. So we're watching that very closely. When you look at the loans that are moving into criticized and classified, they're pretty diversified and granular around C&I, CRE. So we don't see any specific thing in the migration that gives us concern about any individual portfolio. It really comes down to the individual borrower being able to navigate or being in a position to handle the current economic environment. Got it. Appreciate the color. One last quick one. Forgive me if I missed this, but what was the balance of AOCI this quarter? Let me see if we have that here quick. Sure, we do. We don't have it handy. We'll follow up with you, Feddie, to give you that specific number. We don't have the reconciliation right here in front of us. No problem. Thanks so much for taking my question. Sure. One moment for our next question. Our next question comes from Chris McGratty with KBW. Please proceed with your question. Hey. How's it going? This is Andrew Leischne r on for Chris McGratty. Good morning, Andrew. Hey. How's it going? So just on the NII guide, just wondering what assumptions you're using for deposit mix and down beta on those rate cuts to get to your low and high end of the guide. So on the deposit mix, we are assuming some continued decline in the percentage of non-interest-bearing deposits. We feel like we've been conservative in those projections relative to the longer-term history. The beta on that is probably I don't want to quote that, but I think we're going to see a relatively low beta on that just based on competition. Yeah. We really see a stabilizing on the deposits. As we get to CD rolls, as we look forward, the pressure of pricing up on CD rolls begins to stabilize. It's not as significant, begins to stabilize. So I think there's a lot of stabilizing forces as we kind of look forward. The biggest impact is going to be mix shift non-interest-bearing to interest-bearing a nd that is moderating but is continuing. Okay. Great. Thank you. D o you have the amount of CDs that are maturing this year and what those are rolling off at compared to what you're offering today? Through the end of this year, there's probably about $1.9 billion. That weighted average rate is—I have it for the next 12 months, so I'm doing math in my head here. Apologies. The weighted average rate is probably about roughly 440. I will tell you, on average, that over the past couple of months, we're putting on new CDs at a weighted average rate of about 440. So as we get toward the end of the year, again, absent other changes, which we know there'll be, we're not going to really see an impact from those renewals or new CDs. Yeah. So we feel really good about how we've managed the duration in that book. Each month, as we move forward, we get, again, to that roll being a more stabilizing impact on the overall balance sheet. Got it. Thank you. Appreciate the quick math there. Then just last one, if I can. With that, you repurchased 1.9 million shares, and you have 95 million remaining on the authorization. Are you still comfortable with the operating environment and your current capital levels to continue to contemplate further buybacks? Thanks. Yeah. Great question. We continue to evaluate that. Our priority is to support organic growth first. Second priority would be any corporate initiatives that we have that would require a capital and then buybacks. We would evaluate that environment. We feel that based on our capital levels, we could be active in our buyback throughout the remainder of the year, but we may not depending on the situation. We have the authorization remaining for the $95 million. If you look back over recent history, we've used that almost every quarter to some degree based on the environment that we see. But again, it is the last priority in our capital utilization. All right. Thanks for taking my questions. I'll step back. Thanks, Andrew. One moment for our next question. Our next question comes from David Bishop with Hovde Group. Your line is open. Yeah. Good morning. Good morning, David. Hey. A question circling back to the Fulton First. I know you sort of focused on maybe the expense side of the things, but are there revenue enhancements that could emanate from this project longer term? Yeah. Definitely. The focus part of that initiative is really to accelerate growth in areas where we deliver high value for customers, have more differentiation, and we feel we're doing well and can do even better with some of the initiatives and strategies that we're contemplating. So that is the first priority for us is how to grow the company effectively going forward. So we do think those accelerators exist, but there's also an efficiency and operating environment and tech benefit realization, things like that that will enhance efficiency and productivity too. But that focus part is really on the growth side. Got it. I know there was some noise this quarter with some of the branch closures and such. Did that flow through? I saw occupancy expense was up a smidge. I I don't know if that was weather-related or related to that initiative. I thought those were other expenses, but I don't know if that occurred. Any guidance in terms of the run rate on the occupancy side of the equation? I'll let Beth take this one because she loves this expense item. I'm sorry. We're laughing here. Yes. The increase in occupancy was weather-related, so snow removal costs. That should moderate. It's life in the Northeast. Yeah. We got to love it up here. You never know what's going to hit. Also, maybe a high-level question, Curt, just in terms of capital allocation. Appetite for more M&A? I know the Provident Lakeland deal had some interesting appendages to it. I don't know if that sobers your outlook for additional M&A and maybe how comfortable you'd be maybe looking at maybe some distressed bank sales out there. Just curious your M&A appetite at this point. Thanks. Yeah. So our M&A strategy remains the same. I've talked about looking at it in two buckets, the $1 billion-$5 billion community bank, really additive to our organization, and we're focused on those. We do think we have opportunity in that category. We also focus on the $5 billion-$15 billion. $15 billion probably being the largest. We would consider more strategic partnership. There's a handful of those, but we would consider those as well. So the strategy is the same. The environment is, yeah, we feel we have opportunities for M&A. We evaluate those when we have the opportunities a nd if we can work on something that positively impacts our shareholders over the long haul, we certainly would be active. Got it. Appreciate the color. You bet. One moment for our next question. Our next question comes from Manuel Navas with D.A. Davidson. Please proceed with your question. Hey. Good morning. Could you just go into a little bit more detail on what's kind of driving the bit, I guess, slower end of the guide on loan growth? I understand the pricing side. Does borrow demand at high rates also have an impact, and is deposit gathering also slowing it at all? So deposit gathering, we're doing a great job, I think, in that. That is not hindering our growth at all. If anything, I think it's an opportunity to fuel our growth as we're doing a good job there. The biggest thing on loan growth is our pipeline, commercial loans pipeline, is up, linked quarter and up year-over-year. But what we're seeing is what we call the pull-through rate on that pipeline continues to be challenged. Customers are very cautious, and projects are not happening because costs are up, rates are up, things like that. So the biggest impact is not opportunity. It's either borrowers deciding to move forward on a project or spending or us making sure we get the right pricing, credit terms. I appreciate that. Does that mean that no cuts gets you to the high end of the NII range, but perhaps there would be an increase in loan demand if we did get Fed cuts? Is that kind of a right way to think about it? W hat would be where you would be happiest? We like stability. That's the easiest thing to navigate. So just some level of stability would be good. We really position the company to effectively perform no matter what happens. We have puts and takes on rates up or rates down. Rates up, we benefit in some ways and have more pressure in some ways. Rates down, we benefit in certain ways and have more pressure in certain ways. So there are a lot of different variables, and what we really focus on is having the company in a position that we perform effectively no matter what happens to rates. I have one last kind of more specific modeling question. I had that you expected the non-interest-bearing mix getting around 22% by year-end. Does that change at all with a little bit more outflows this quarter? Is that still right around the same mix that you end the year at? We ended the quarter at 23.4. I think for your modeling, 22% is certainly reasonable. If you look back over the past 15 years, that's a good range. You have to go way back to get much slower than that. Okay. I appreciate that. Thank you very much. Thank you, Manuel. One moment for our next question. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. Our next question comes from Matthew Breese with Stephens. Your line is open. Good morning, everybody. Hey, morning, Matt. Hey. I wanted to go back to Fulton First. How much more in one-time costs do you expect, and over what time frame do you think the majority of those one-time costs are going to occur? Yeah. So we do expect increased one-time costs as we get into implementing the changes that we're designing and working on right now. So right now, we just have the spend to develop the plan. T hen as we implement that plan, there certainly would be one-time costs from contracts and other things that we would consider efficiencies overall. So we do have those planned, and we would be disclosing those as we move forward. Our real goal is to get to showing everyone the plan, what costs we have, and what benefits we're going to derive. We're just not there yet, but we wanted to be transparent with that we're spending money and investing money to figure that plan out. Okay, b ut should we expect kind of this quarter's $6.4 million in one-time costs to recur for at least the near term, or is that an elevated figure in your view? Yeah. We really have those planned out. Again, it's an 18-24-month project overall. The one-time cost would be concentrated more at the front end of that. So thinking over the next couple of quarters, we would have more of the one-time cost, and then we would be getting the benefits then over the full 24 months. So I think you're thinking about it the right way, Matt. Okay. I wanted to go back to the office portfolio. You have eight office relationships over $20 million. You discussed kind of the three in the central business districts. But I was hoping within the eight, you could talk about maybe the three or four largest relationships. What are the sizes there? How are they performing? Maturity schedules and any sort of details on kind of LTVs, debt-to-risk coverage ratios for just overall color on the biggest stuff? Yeah. So the top five borrowers there are in the $25 million-$30 million range in balance. Our largest deals, about $30 million in balances. We don't have any maturities that are coming up that we either aren't comfortable with or don't have a resolution for, so we feel good about the position of those largest borrowers at this point a nd we are paying close attention to every office loan we have from the $400,000 one we originated in the first quarter to our largest one of $30 million. Are they all current? Yes. Okay. T hen you had a $3.1 million loss on asset disposals this quarter. What was in there? Those were five branches that we have committed to close. I believe they're closing the end of this month. Yeah. Next week, they will close. Okay. T hen the last one is just on commercial swap activity. My gut here is with slower growth, that'll remain kind of at a depressed level, b ut I wanted your thoughts on whether we can get back to kind of the north of $3 million one right there. Yeah. It really comes down to mix of origination versus overall growth. So obviously, when you have higher overall growth, your mix is better too. You have volume in every category. So really, what drives those numbers is the larger originations. So large C&I and large CRE originations are what really drive the number. We have a good core kind of recurring business, so that's why you see that there's kind of a floor in that fee income each quarter. But to get to the $3 million and $4 million quarters that we've seen historically, you really have to have a few larger originations that are a derivative or a swap done on those. Got it. Okay. That's all I had. I appreciate you taking my questions. Thank you. Thanks, Matt. That concludes the question-and-answer session. At this time, I would like to turn the call back to Curt Myers for closing remarks. Well, thank you again for joining us today. We hope you'll be able to be with us when we discuss second quarter results in July. Thanks, everyone. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.