Fulton Financial Corporation Announces 2025 Second Quarter Results

LANCASTER, Pa., July 15, 2025 /PRNewswire/ -- Fulton Financial Corporation (NASDAQ:FULT) ("Fulton" or the "Corporation") reported net income available to common shareholders of $96.6 million, or $0.53 per diluted share, for the second quarter of 2025, an increase of $6.2 million, or $0.04 per diluted share, in comparison to the first quarter of 2025. Operating net income available to common shareholders for the three months ended June 30, 2025 was $100.6 million(1), or $0.55 per diluted share(1), an increase of $5.2 million, or $0.03 per diluted share, in comparison to the first quarter of 2025.

Net income available to common shareholders for the six months ended June 30, 2025 was $187.1 million, or $1.02 per diluted share, an increase of $35.3 million, or $0.13 per diluted share, in comparison to the six months ended June 30, 2024. Operating net income available to common shareholders for the six months ended June 30, 2025, was $196.1 million(1), or $1.07 per diluted share(1), an increase of $48.2 million, or $0.20 per diluted share, in comparison to the six months ended June 30, 2024.

"I'm proud that our team has delivered a new company record, with operating net income of $100.6 million, or $0.55 per diluted share, this past quarter," said Curt Myers, Chairman and CEO of Fulton. "Our community banking strategy continues to provide significant value to customers and has once again resulted in strong bottom-line results for the company."

Financial Highlights

Second quarter of 2025 operating results of $0.55 per diluted share were impacted by the following items:

Solid net interest margin of 3.47%, with a two basis point decrease in total cost of funds compared to the prior quarter.

Non-interest income increased $1.9 million to $69.1 million compared to $67.2 million in the prior quarter.

Non-interest expense increased $3.4 million to $192.8 million compared to $189.5 million in the prior quarter. Operating non-interest expense increased $4.8 million to $187.6 million(1) compared to $182.9 million in the prior quarter.

Provision for credit losses was $8.6 million resulting in an allowance for credit losses attributable to net loans of $377.3 million, or 1.57% of total net loans as of June 30, 2025.

Net loans increased $150.0 million, or 2.5% annualized, compared to the prior quarter.

Common equity tier 1 capital ratio(2) increased to approximately 11.3% compared to 11.1% in the prior quarter.

The following items highlight notable changes in the components of net income in the second quarter of 2025 compared to the first quarter of 2025:

Net interest income totaled $254.9 million, an increase of $3.7 million. Increases of $2.2 million in interest income on investment securities and $1.8 million in interest income on net loans were partially offset by a $1.0 million decrease in interest income on other interest-earning assets. A $1.7 million decrease in interest expense on deposits was partially offset by a $1.0 million increase in interest expense on borrowings and other interest-bearing liabilities. Purchase loan mark accretion from loans acquired in the Acquisition(3) was $11.4 million in the second quarter of 2025 compared to $13.1 million in the prior quarter.

Non-interest income before investment securities gains (losses) was $69.1 million compared to $67.2 million in the prior quarter. The $1.9 million increase was primarily due to increases of $0.9 million in mortgage banking income, $0.8 million in merchant and card fee income, $0.6 million in cash management fee income, $0.5 million in overdraft fee income, $0.5 million in wealth management revenues, $0.5 million in other consumer deposit banking fees, $0.4 million in debit card fee income and $0.4 million in commercial customer interest rate derivative fee income, reflected in capital markets income, partially offset by a $2.7 million decrease in income from equity method investments, reflected in other income.

Non-interest expense was $192.8 million compared to $189.5 million in the prior quarter. The $3.4 million increase in non-interest expense was primarily due to a $3.6 million increase in salaries and employee benefits expense largely due to annual merit increases taking effect at the beginning of the second quarter of 2025, one additional calendar day in the second quarter of 2025 and an increase in incentive compensation expense. Additional drivers of the increase in non-interest expense included a $3.2 million increase in professional fees largely driven by a recovery of previously incurred fees in the first quarter of 2025, partially offset by decreases of $1.8 million in net occupancy costs largely due to a decrease in snow removal expense, $0.7 million in state tax expense, reflected in other expense, $0.6 million in FDIC insurance expense and $0.3 million in data processing and software expense.

Balance Sheet Summary

Net loans totaled $24.0 billion, an increase of $150.0 million, compared to $23.9 billion as of March 31, 2025. The increase in net loans was due to increases of $117.4 million in consumer loans(4) and $32.6 million in commercial and other loans(4).

Deposits totaled $26.1 billion, a decrease of $190.9 million, compared to $26.3 billion as of March 31, 2025. The decrease was primarily due to decreases of $211.3 million in interest-bearing demand deposits, $98.2 million in noninterest-bearing demand deposits and $23.8 million in time deposits, partially offset by increases of $78.9 million in brokered deposits and $63.4 million in savings deposits.

Provision for Credit Losses and Asset Quality

The provision for credit losses was $8.6 million in the second quarter of 2025, resulting in a $377.3 million allowance for credit losses attributable to net loans, or 1.57% of total net loans as of June 30, 2025, compared to $379.7 million, or 1.59% of total net loans as of March 31, 2025.

Non-performing assets were $215.6 million, or 0.67% of total assets, as of June 30, 2025, in comparison to $199.0 million, or 0.62% of total assets, as of March 31, 2025.

Annualized net charge-offs for the second quarter of 2025 were 0.20% of total average loans in comparison to 0.21% in the prior quarter.

Additional information on Fulton is available on the Internet at www.fultonbank.com.

(1)

Financial measure derived by methods other than generally accepted accounting principles ("GAAP"). Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of the press release.

(2)

Regulatory capital ratios as of June 30, 2025, are preliminary estimates and prior periods are actual.

(3)

On April 26, 2024, the Corporation announced that its wholly owned banking subsidiary, Fulton Bank, National Association ("Fulton Bank"), acquired substantially all of the assets and assumed substantially all of the deposits and certain liabilities of Republic First Bank, doing business as Republic Bank ("Republic Bank"), from the Federal Deposit Insurance Corporation (the "FDIC"), as receiver for Republic Bank (the "Acquisition"), pursuant to the terms of the Purchase and Assumption Agreement - Whole Bank, All Deposits, effective as of April 26, 2024 among the FDIC, as receiver of Republic Bank, the FDIC and Fulton Bank..

(4)

Commercial loans include real estate - commercial mortgage, commercial and industrial, leases and other loans and includes a decrease in commercial construction loans of $26.1 million, reflected in real estate - construction. Consumer loans include real estate - residential mortgage, real estate - home equity, consumer and includes an increase of $5.8 million in residential construction loans, reflected in real estate - construction.

 

Safe Harbor Statement

This press release may contain forward-looking statements with respect to the Corporation's financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," "projects," the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation's future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation's business or financial results.

Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, the statements are based on current beliefs, expectations and assumptions regarding the future of the Corporation's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation's control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov).

Non-GAAP Financial Measures

The Corporation uses certain financial measures in this press release that have been derived from methods other than GAAP. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this press release.

FULTON FINANCIAL CORPORATION

SUMMARY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)

(dollars in thousands, except per share and shares data)

Three months ended

Jun 30

Mar  31

Dec 31

Sep 30

Jun 30

2025

2025

2024

2024

2024

Ending Balances

Investment securities(1)

$   5,093,027

$    5,071,323

$   4,806,468

$   4,545,278

$   4,184,027

Net loans

24,012,539

23,862,574

24,044,919

24,176,075

24,106,297

Total assets

32,040,448

32,132,028

32,071,810

32,185,726

31,769,813

Deposits

26,138,067

26,328,972

26,129,433

26,152,144

25,559,654

Shareholders' equity

3,329,246

3,274,321

3,197,325

3,203,943

3,101,609

Average Balances

Investment securities(1)

5,084,371

4,906,952

4,771,537

4,237,805

4,043,136

Net loans

23,899,743

24,006,863

24,068,784

24,147,801

23,345,914

Total assets

31,901,574

31,971,601

32,098,852

31,895,235

30,774,891

Deposits

26,125,602

26,169,883

26,313,378

25,778,259

24,642,954

Shareholders' equity

3,304,015

3,254,125

3,219,026

3,160,322

2,952,671

Income Statement

Net interest income

254,921

251,187

253,659

258,009

241,720

Provision for credit losses

8,607

13,898

16,725

11,929

32,056

Non-interest income

69,148

67,232

65,924

59,673

92,994

Non-interest expense

192,811

189,460

216,615

226,089

199,488

Income before taxes

122,651

115,061

86,243

79,664

103,170

Net income available to common shareholders

96,636

90,425

66,058

60,644

92,413

Per Share

Net income available to common shareholders (basic)

$0.53

$0.50

$0.36

$0.33

$0.53

Net income available to common shareholders (diluted)

$0.53

$0.49

$0.36

$0.33

$0.52

Operating net income available to common shareholders(2)

$0.55

$0.52

$0.48

$0.50

$0.47

Cash dividends

$0.18

$0.18

$0.18

$0.17

$0.17

Common shareholders' equity

$17.20

$16.91

$16.50

$16.55

$16.00

Common shareholders' equity (tangible)(2)

$13.78

$13.46

$13.01

$13.02

$12.43

Weighted average shares (basic)

182,261

182,179

182,032

181,905

175,305

Weighted average shares (diluted)

183,813

184,077

183,867

183,609

176,934

(1) Includes related unrealized holding gains (losses) for available for sale ("AFS") securities.

(2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release.

Three months ended

Jun 30

Mar  31

Dec 31

Sep 30

Jun 30

2025

2025

2024

2024

2024

Asset Quality

Net charge-offs to average loans (annualized)

0.20 %

0.21 %

0.22 %

0.18 %

0.19 %

Non-performing loans to total net loans

0.89 %

0.82 %

0.92 %

0.84 %

0.72 %

Non-performing assets to total assets

0.67 %

0.62 %

0.69 %

0.64 %

0.55 %

ACL - loans(1) to total loans

1.57 %

1.59 %

1.58 %

1.56 %

1.56 %

ACL - loans(1) to non-performing loans

177 %

193 %

172 %

186 %

218 %

Profitability

Return on average assets

1.25 %

1.18 %

0.85 %

0.79 %

1.24 %

Operating return on average assets(2)

1.30 %

1.25 %

1.14 %

1.17 %

1.11 %

Return on average common shareholders' equity

12.46 %

11.98 %

8.68 %

8.13 %

13.47 %

Operating return on average common shareholders' equity (tangible)(2)

16.26 %

15.95 %

14.83 %

15.65 %

15.56 %

Net interest margin

3.47 %

3.43 %

3.41 %

3.49 %

3.43 %

Efficiency ratio(2)

57.1 %

56.7 %

58.4 %

59.6 %

62.6 %

Non-interest expense to total average assets

2.42 %

2.40 %

2.68 %

2.82 %

2.61 %

Operating non-interest expense to total average assets(2)

2.36 %

2.32 %

2.36 %

2.45 %

2.55 %

Capital Ratios(3)

Tangible common equity ratio ("TCE")(2)

8.0 %

7.8 %

7.5 %

7.5 %

7.3 %

Tier 1 leverage ratio

9.3 %

9.2 %

9.0 %

9.0 %

9.2 %

Common equity Tier 1 capital ratio

11.3 %

11.1 %

10.8 %

10.5 %

10.3 %

Tier 1 risk-based capital ratio

12.1 %

11.9 %

11.5 %

11.3 %

11.1 %

Total risk-based capital ratio

14.7 %

14.5 %

14.3 %

14.0 %

13.8 %

(1) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet

    ("OBS") credit exposures.

(2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release.

(3) Regulatory capital ratios as of June 30, 2025 are preliminary estimates and prior periods are actual.

 

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

(dollars in thousands)

Jun 30

Mar  31

Dec 31

Sep 30

Jun 30

2025

2025

2024

2024

2024

ASSETS

Cash and due from banks

$     362,280

$     388,503

$     279,041

$     296,500

$     333,238

Other interest-earning assets

583,899

778,117

924,404

1,287,392

1,188,341

Loans held for sale

23,281

15,965

25,618

17,678

26,822

Investment securities

5,093,027

5,071,323

4,806,468

4,545,278

4,184,027

Net loans

24,012,539

23,862,574

24,044,919

24,176,075

24,106,297

Less: ACL - loans(1)

(377,337)

(379,677)

(379,156)

(375,961)

(375,941)

   Loans, net

23,635,202

23,482,897

23,665,763

23,800,114

23,730,356

Net premises and equipment

184,290

186,873

195,527

171,731

180,642

Accrued interest receivable

117,130

116,215

117,029

115,903

120,752

Goodwill and intangible assets

623,729

629,189

635,458

641,739

648,026

Other assets

1,417,610

1,462,946

1,422,502

1,309,391

1,357,609

    Total Assets

$ 32,040,448

$ 32,132,028

$ 32,071,810

$ 32,185,726

$ 31,769,813

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

$ 26,138,067

$ 26,328,972

$ 26,129,433

$ 26,152,144

$ 25,559,654

Borrowings

1,773,900

1,657,200

1,782,048

2,052,227

2,178,597

Other liabilities

799,235

871,535

963,004

777,412

929,953

    Total Liabilities

28,711,202

28,857,707

28,874,485

28,981,783

28,668,204

Shareholders' equity

3,329,246

3,274,321

3,197,325

3,203,943

3,101,609

    Total Liabilities and Shareholders' Equity

$ 32,040,448

$ 32,132,028

$ 32,071,810

$ 32,185,726

$ 31,769,813

LOANS, DEPOSITS AND BORROWINGS DETAIL:

Loans, by type:

Real estate - commercial mortgage

$  9,678,038

$  9,676,517

$  9,601,858

$  9,493,479

$  9,289,770

Commercial and industrial

4,541,765

4,531,266

4,605,589

4,914,734

4,967,796

Real estate - residential mortgage

6,511,687

6,409,657

6,349,643

6,302,624

6,248,856

Real estate - home equity

1,193,410

1,170,470

1,160,616

1,144,402

1,120,878

Real estate - construction

1,155,099

1,175,445

1,394,899

1,332,954

1,463,799

Consumer

583,949

597,305

616,856

651,717

692,086

Leases and other loans(2)

348,591

301,914

315,458

336,165

323,112

Total Net Loans

$ 24,012,539

$ 23,862,574

$ 24,044,919

$ 24,176,075

$ 24,106,297

Deposits, by type:

Noninterest-bearing demand

$  5,337,771

$  5,435,934

$  5,499,760

$  5,501,699

$  5,609,383

Interest-bearing demand

7,593,083

7,804,388

7,843,604

7,779,472

7,478,077

Savings

8,271,925

8,208,526

7,792,114

7,740,595

7,563,495

     Total demand and savings

21,202,779

21,448,848

21,135,478

21,021,766

20,650,955

Brokered

817,398

738,458

843,857

843,473

995,975

Time

4,117,890

4,141,666

4,150,098

4,286,905

3,912,724

Total Deposits

$ 26,138,067

$ 26,328,972

$ 26,129,433

$ 26,152,144

$ 25,559,654

Borrowings, by type:

Federal Home Loan Bank advances

$     800,000

$     750,000

$     850,000

$     950,000

$     750,000

Senior debt and subordinated debt

367,476

367,396

367,316

535,917

535,741

Other borrowings

606,424

539,804

564,732

566,310

892,856

Total Borrowings

$  1,773,900

$  1,657,200

$  1,782,048

$  2,052,227

$  2,178,597

(1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures.

(2) Includes equipment lease financing, overdraft and net origination fees and costs.

 

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(dollars in thousands, except per share and share data)

Three months ended

Six months ended

Jun 30

Mar  31

Dec 31

Sep 30

Jun 30

Jun 30

2025

2025

2024

2024

2024

2025

2024

Net Interest Income:

Interest income

$ 402,761

$ 399,692

$ 414,368

$ 427,656

$ 400,506

$ 802,452

$ 740,172

Interest expense

147,840

148,505

160,709

169,647

158,786

296,345

291,515

    Net Interest Income

254,921

251,187

253,659

258,009

241,720

506,107

448,657

Provision for credit losses

8,607

13,898

16,725

11,929

32,056

22,505

42,981

    Net Interest Income after Provision

246,314

237,289

236,934

246,080

209,664

483,602

405,676

Non-Interest Income:

Wealth management

22,281

21,785

22,002

21,596

20,990

44,066

41,144

Commercial banking:

   Merchant and card

7,376

6,591

7,082