In April 2024, Fulton Financial Corporation executed one of the year’s most compelling and forward-thinking bank acquisitions. The Pennsylvania-based lender acquired Republic First Bank through an FDIC-assisted transaction, adding $4.2 billion in deposits and nearly doubling its Philadelphia market presence. The deal’s structure was particularly favorable — Fulton acquired assets at fair market value, with the FDIC absorbing losses on Republic First’s underwater securities, while receiving approximately $800 million in cash. Investors responded enthusiastically, pushing shares up as much as 17%, with Janney Montgomery Scott upgrading the stock to Buy.
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Fast-forward to October 2025, and the acquisition’s impact is clear: total assets have grown to $32.0 billion, deposits stand at $26.1 billion, and the net interest margin has climbed to 3.57% in 3Q25 from 3.41% in 2Q24 due to lower deposit costs. And still, from the stage at the NEXT Forum, Fulton CEO Curtis Myers made clear that funding is one of his primary strategic concerns for the years ahead.
“Funding is really what drives enterprise value for stockholders,” Myers told conference attendees. “It’s what gives us the fuel and energy to grow and make loans. And deposits are going to be tougher and tougher because we have some macro things that are happening within the industry that you really need to be figuring out.” Myers encouraged fellow bank leaders to consider how the composition of their deposit base is going to change in the next 3-5 years. “Where can I lean in and get deposits?” he asked. “What’s going to flow out no matter what I do? Really looking at that deposit base of your bank, I think, is critical.”
The Republic First transaction was strategically sound, but it highlighted a broader industry concern that showed up throughout the Forum: organic deposit growth isn’t always keeping pace with lending ambitions.
Part of what bankers are wrestling with is a fundamental change in deposit behavior. After years of zero interest rates, customers became more rate sensitive. At the same time, a menagerie of fintechs juiced up with venture capital were able to offer enticing yields with nationwide coverage and a frictionless experience. Commercial depositors also became more sophisticated about cash management, actively seeking yield on operating balances.
Speaking in his capacity as Travillian’s Head of Bank Strategy, Andrew Liesch, explains, “From Fulton’s perspective, by pairing its organic capabilities with a strategic acquisition, the bank added substantial liquidity which positioned it well for a return of stronger loan growth.” That growth has yet to materialize (loan balances are flat YTD), but in the meantime, the deposit infusion has provided flexibility to manage deposit costs and defend the net interest margin.
Building for the Long Term
What makes Myers’ focus on deposits particularly notable is the context. He acknowledges that the operating environment is “pretty constructive” for banking.
“When you sit back and think about it, we’ve got margins above historical trends, credits pretty stable and solid,” Myers said. “We have a yield curve that’s actually shaped the right way, right now.” And that’s precisely when strategic planning matters most. “When things are good, if you think about it, you’ve got more downside risk than you do upside opportunities. So you really have to be thinking about what could go the wrong way.”
This long-term orientation extends to how Fulton evaluates M&A opportunities. Myers emphasized that the bank looks beyond quarterly earnings impact. “We’re a 143-year-old company, so we got a long view. We look at M&A like, is our company and the company we’re buying going to be better in two or three years than they are today? Those are the deals that work.” The Fulton approach to deals represents a departure from the pervasive focus on immediate accretion and cost synergies. “The deal math doesn’t make as much of a difference if you have synergies so that you’re going to be better together in a couple years,” Myers explained.
The Human Element
Perhaps most revealing was Myers’ discussion of what Fulton looks for when building its team — whether through organic hiring or acquisition. The bank’s culture is “roll up the sleeves,” he explained, seeking people who are “going to be committed, loyal, talented, smart, bring the skill set that we need.”
But Myers also looks for attributes that are less quantifiable in candidates; namely, people with heart. “As a community banker, you’ve got to care about something other than your career,” he said. “The best way to make your career go really well is caring about the people around you, caring about the customers, caring about the community.”
He shared a story that crystallized this philosophy. During the final dinner interview with an executive candidate several years ago, the conversation touched on an unexpectedly emotional topic. The candidate began to break down. Myers could see the moment of panic in the person’s eyes — the belief that showing vulnerability had just cost them the job.
“For me, it was like, this guy just got the job,” Myers recalled. “He’s got heart. He really cares about things; things really impact him.” It’s the combination of technical competence and emotional depth that Myers believes creates organizational resilience.
Quiet Preparation
There’s a pattern in how Myers describes Fulton’s approach to everything — M&A, hiring, deposit strategy. The bank went from 2006 to 2022 without making an acquisition, growing organically throughout that period. Not because acquisitions were off the table, but because the right opportunities hadn’t materialized.
“We’re always prepared for it, but we never plan on it,” Myers said of M&A. “So it is part of our strategy, and we want to be prepared that we can take advantage of the opportunity to come our way.”
It’s the same mindset he’s applying to deposits now. While other banks are celebrating, Myers is war-gaming the composition of his deposit base three to five years out. Which deposits are sticky? Which will migrate to higher yields regardless of relationship strength? Where can Fulton build new funding sources before it needs them?
This isn’t the flashy work that drives quarterly earnings calls or investor presentations. But it’s the work that matters when the cycle turns. And after 143 years and multiple cycles, Fulton knows the cycle always turns. The banks that recognize this during good times, that build both the deposit infrastructure and the culture to execute on it, will have options when conditions tighten.
