Fulton Financial Corporation Announces First Quarter 2025 Results

Rhea-AI Summary

Fulton Financial (NASDAQ: FULT) reported strong Q1 2025 results with net income of $90.4 million, or $0.49 per diluted share, marking a $24.4 million increase from Q4 2024. Operating net income reached $95.5 million, or $0.52 per diluted share.

Key highlights include a solid net interest margin of 3.43%, with total cost of funds decreasing by 12 basis points. Non-interest expense decreased by $27.2 million to $189.5 million. Customer deposits grew by $304.9 million (4.9% annualized), excluding brokered deposits. The common equity tier 1 capital ratio improved to 11.0%.

Asset quality metrics showed improvement with non-performing assets decreasing to 0.62% of total assets, down from 0.69% in Q4 2024. The allowance for credit losses stood at $379.7 million, representing 1.59% of total net loans, while net charge-offs were 0.21% of total average loans.

Positive

• Net income increased by $24.4 million to $90.4 million compared to previous quarter
• Customer deposits grew by $304.9 million (4.9% annualized)
• Common equity tier 1 capital ratio improved to 11.0% from 10.8%
• Non-performing assets decreased to 0.62% from 0.69%
• Non-interest expense decreased by $27.2 million to $189.5 million

Negative

• Net interest income decreased by $2.5 million to $251.2 million
• Net loans decreased by $182.3 million to $23.9 billion
• Interest income on net loans declined by $13.0 million

Insights

Financial Analyst

Fulton Financial's Q1 2025 results demonstrate solid performance and improved profitability with earnings of $0.52 per share on an operating basis, increasing $0.04 sequentially. The $90.4 million in net income available to common shareholders shows substantial improvement from Q4 2024.

Key strengths include disciplined expense management, with non-interest expenses decreasing by $27.2 million to $189.5 million. The bank maintained a healthy net interest margin of 3.43% while reducing its total cost of funds by 12 basis points, suggesting effective management of funding costs in a changing rate environment.

Asset quality metrics improved with non-performing assets declining to 0.62% of total assets from 0.69% in the previous quarter. The annualized net charge-off ratio improved slightly to 0.21% from 0.22%, while maintaining a conservative allowance for credit losses at 1.59% of total loans.

The 4.9% annualized growth in customer deposits (excluding brokered deposits) demonstrates continued customer confidence, while the bank's capital position strengthened with the common equity tier 1 ratio improving to 11.0%.

These results reflect successful integration of the Republic Bank acquisition and prudent balance sheet management, positioning Fulton well despite the "uncertain and dynamic environment" noted by CEO Curtis Myers. The improving efficiency and credit metrics create a solid foundation for potential continued growth through 2025.

LANCASTER, Pa., April 15, 2025 /PRNewswire/ -- Fulton Financial Corporation (NASDAQ: FULT) ("Fulton" or the "Corporation") reported net income available to common shareholders of $90.4 million, or $0.49 per diluted share, for the first quarter of 2025, an increase of $24.4 million, or $0.13 per share, in comparison to the fourth quarter of 2024. Operating net income available to common shareholders for the three months ended March 31, 2025 was $95.5 million, or $0.52 per diluted share⁽¹⁾, an increase of $6.5 million, or $0.04 per share, in comparison to the fourth quarter of 2024.

"We are pleased with our first quarter operating earnings of $0.52 per diluted share and encouraged by the strong start to the year," said Curtis J. Myers, Chairman and CEO of Fulton. "Our team continues to be disciplined in our approach to creating value for all stakeholders while remaining focused on the long term during this uncertain and dynamic environment."

Financial Highlights

First quarter of 2025 operating results of $0.52 per diluted share were impacted by the following items:

• Solid net interest margin of 3.43% with a 12 basis point decrease in total cost of funds compared to the prior quarter.
• Non-interest expense decreased $27.2 million to $189.5 million compared to $216.6 million in the prior quarter. Operating non-interest expense decreased $7.8 million to $182.9 million⁽¹⁾ compared to $190.7 million in the prior quarter.
• Provision for credit losses was $13.9 million resulting in an allowance for credit losses attributable to net loans of $379.7 million, or 1.59% of total net loans as of March 31, 2025.
• Excluding brokered deposits, customer deposits increased $304.9 million, or 4.9% annualized, compared to the prior quarter.
• Common equity tier 1 capital ratio⁽²⁾ increased to approximately 11.0% compared to 10.8% in the prior quarter.

The following items highlight notable changes in the components of net income and the balance sheet in the first quarter of 2025 compared to the fourth quarter of 2024:

• Net interest income totaled $251.2 million, a decrease of $2.5 million, primarily due to a decline in short-term interest rates and day count. A decrease in interest income on net loans of $13.0 million was partially offset by a decrease in interest expense on interest-bearing liabilities of $12.2 million. A $4.3 million decrease in interest income on other interest-earning assets was partially offset by a $2.6 million increase in interest income on investment securities. Purchase loan mark accretion from loans acquired in the Acquisition⁽³⁾ was $13.1 million in the first quarter of 2025 compared to $13.9 million in the prior quarter.
• Non-interest income before investment securities gains (losses) was $67.2 million compared to $65.9 million in the prior quarter. The $1.3 million increase was primarily due to a $2.7 million reduction in the gain on acquisition (net of tax) recorded in the fourth quarter of 2024 and a $2.4 million increase in income from equity method investments, reflected in other income, partially offset by a $0.6 million decrease in mortgage banking income, a $0.5 million decrease in debit card fee income, a $0.5 million decrease in Small Business Administration loan income, a $0.5 million decrease in merchant fee income, a $0.3 million decrease in commercial customer interest rate derivative fee income, reflected in capital markets income, a $0.3 million decrease in overdraft fee income and a $0.2 million decrease in wealth management revenues.
• Non-interest expense was $189.5 million compared to $216.6 million in the prior quarter. The $27.2 million decrease was primarily due to a $10.0 million decrease in FultonFirst implementation and asset disposal expense and a $9.3 million decrease in acquisition-related expense. Excluding the FultonFirst implementation and asset disposal-related expense, the decrease in non-interest expense was primarily due to a $4.4 million decrease in professional fees driven by a recovery of previously incurred fees, a $3.7 million decrease in employee salaries and benefits expense primarily related to cost savings realized in connection with the Acquisition and the FultonFirst initiative.

Balance Sheet Summary

• Net loans totaled $23.9 billion, a decrease of $182.3 million, compared to $24.0 billion as of December 31, 2024. The decrease in net loans was due to a $244.3 million net decrease in commercial and other loans⁽⁴⁾ partially offset by a $62.0 million increase in consumer loans⁽⁴⁾. The decrease in commercial and other loans was partially due to the payoff in the quarter of $94.2 million of special mention loans and substandard loans. Commercial and other loans in non-accrual status decreased during the first quarter.
• Deposits totaled $26.3 billion, an increase of $199.5 million, compared to $26.1 billion as of December 31, 2024. The increase was primarily due to a $416.4 million increase in savings deposits, partially offset by decreases of $105.4 million in brokered deposits, $63.8 million in noninterest-bearing demand deposits and $39.2 million in interest-bearing demand deposits.

Provision for Credit Losses and Asset Quality

• The provision for credit losses was $13.9 million in the first quarter of 2025 resulting in a $379.7 million allowance for credit losses attributable to net loans, or 1.59% of total net loans as of March 31, 2025, compared to $379.2 million, or 1.58% of total net loans as of December 31, 2024.
• Non-performing assets were $199.0 million, or 0.62% of total assets, as of March 31, 2025, in comparison to $222.7 million, or 0.69% of total assets, as of December 31, 2024.
• Annualized net charge-offs for the first quarter of 2025 were 0.21% of total average loans in comparison to 0.22% 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 March 31, 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 $231.2 million decrease in commercial construction loans reflected in real estate - construction. Consumer loans include real estate - residential mortgage, real estate - home equity, consumer and includes an $11.7 million increase 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 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
	Mar 31		Dec 31		Sep 30		Jun 30		Mar  31
	2025		2024		2024		2024		2024
Ending Balances
Investment securities	$   5,071,323		$    4,806,468		$   4,545,278		$   4,184,027		$   3,783,392
Net loans	23,862,574		24,044,919		24,176,075		24,106,297		21,444,483
Total assets	32,132,028		32,071,810		32,185,726		31,769,813		27,642,957
Deposits	26,328,972		26,129,433		26,152,144		25,559,654		21,741,950
Shareholders' equity	3,274,321		3,197,325		3,203,943		3,101,609		2,757,679
Average Balances
Investment securities(1)	4,906,952		4,771,537		4,237,805		4,043,136		3,672,844
Net loans	24,006,863		24,068,784		24,147,801		23,345,914		21,370,033
Total assets	31,971,601		32,098,852		31,895,235		30,774,891		27,427,626
Deposits	26,169,883		26,313,378		25,778,259		24,642,954		21,378,754
Shareholders' equity	3,254,125		3,219,026		3,160,322		2,952,671		2,766,945
Income Statement
Net interest income	251,187		253,659		258,009		241,720		206,937
Provision for credit losses	13,898		16,725		11,929		32,056		10,925
Non-interest income	67,232		65,924		59,673		92,994		57,140
Non-interest expense	189,460		216,615		226,089		199,488		177,600
Income before taxes	115,061		86,243		79,664		103,170		75,552
Net income available to common shareholders	90,425		66,058		60,644		92,413		59,379
Per Share
Net income available to common shareholders (basic)	$0.50		$0.36		$0.33		$0.53		$0.36
Net income available to common shareholders (diluted)	$0.49		$0.36		$0.33		$0.52		$0.36
Operating net income available to common shareholders(2)	$0.52		$0.48		$0.50		$0.47		$0.40
Cash dividends	$0.18		$0.18		$0.17		$0.17		$0.17
Common shareholders' equity	$16.91		$16.50		$16.55		$16.00		$15.82
Common shareholders' equity (tangible)(2)	$13.46		$13.01		$13.02		$12.43		$12.37
Weighted average shares (basic)	182,179		182,032		181,905		175,305		162,706
Weighted average shares (diluted)	184,077		183,867		183,609		176,934		164,520
(1) Average balances include 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
	Mar 31		Dec 31		Sep 30		Jun 30		Mar  31
	2025		2024		2024		2024		2024
Asset Quality
Net charge-offs to average loans	0.21 %		0.22 %		0.18 %		0.19 %		0.16 %
Non-performing loans to total net loans	0.82 %		0.92 %		0.84 %		0.72 %		0.73 %
Non-performing assets to total assets	0.62 %		0.69 %		0.64 %		0.55 %		0.57 %
ACL - loans(1) to total loans	1.59 %		1.58 %		1.56 %		1.56 %		1.39 %
ACL - loans(1) to non-performing loans	193 %		172 %		186 %		218 %		191 %
Profitability
Return on average assets	1.18 %		0.85 %		0.79 %		1.24 %		0.91 %
Operating return on average assets(2)	1.25 %		1.14 %		1.17 %		1.11 %		1.00 %
Return on average common shareholders' equity	11.98 %		8.68 %		8.13 %		13.47 %		9.28 %
Operating return on average common shareholders' equity (tangible)(2)	15.95 %		14.83 %		15.65 %		15.56 %		13.08 %
Net interest margin	3.43 %		3.41 %		3.49 %		3.43 %		3.32 %
Efficiency ratio(2)	56.7 %		58.4 %		59.6 %		62.6 %		63.2 %
Non-interest expense to total average assets	2.40 %		2.68 %		2.82 %		2.61 %		2.60 %
Operating non-interest expense to total average assets(2)	2.32 %		2.36 %		2.45 %		2.55 %		2.49 %
Capital Ratios(3)
Tangible common equity ratio ("TCE")(2)	7.8 %		7.5 %		7.5 %		7.3 %		7.4 %
Tier 1 leverage ratio	9.2 %		9.0 %		9.0 %		9.2 %		9.3 %
Common equity Tier 1 capital ratio	11.0 %		10.8 %		10.5 %		10.3 %		10.3 %
Tier 1 risk-based capital ratio	11.8 %		11.5 %		11.3 %		11.1 %		11.1 %
Total risk-based capital ratio	14.4 %		14.3 %		14.0 %		13.8 %		14.0 %
(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 March 31, 2025 are preliminary estimates and prior periods are actual.

 

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31
		2025		2024		2024		2024		2024
ASSETS
	Cash and due from banks	$     388,503		$     279,041		$     296,500		$     333,238		$     247,581
	Other interest-earning assets	778,117		924,404		1,287,392		1,188,341		231,389
	Loans held for sale	15,965		25,618		17,678		26,822		10,624
	Investment securities	5,071,323		4,806,468		4,545,278		4,184,027		3,783,392
	Net loans	23,862,574		24,044,919		24,176,075		24,106,297		21,444,483
	Less: ACL - loans(1)	(379,677)		(379,156)		(375,961)		(375,941)		(297,888)
	Loans, net	23,482,897		23,665,763		23,800,114		23,730,356		21,146,595
	Net premises and equipment	186,873		195,527		171,731		180,642		213,541
	Accrued interest receivable	116,215		117,029		115,903		120,752		107,089
	Goodwill and intangible assets	629,189		635,458		641,739		648,026		560,114
	Other assets	1,462,946		1,422,502		1,309,391		1,357,609		1,342,632
	Total Assets	$ 32,132,028		$ 32,071,810		$ 32,185,726		$ 31,769,813		$ 27,642,957
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits	$ 26,328,972		$ 26,129,433		$ 26,152,144		$ 25,559,654		$ 21,741,950
	Borrowings	1,657,200		1,782,048		2,052,227		2,178,597		2,296,040
	Other liabilities	871,535		963,004		777,412		929,953		847,288
	Total Liabilities	28,857,707		28,874,485		28,981,783		28,668,204		24,885,278
	Shareholders' equity	3,274,321		3,197,325		3,203,943		3,101,609		2,757,679
	Total Liabilities and Shareholders' Equity	$ 32,132,028		$ 32,071,810		$ 32,185,726		$ 31,769,813		$ 27,642,957
LOANS, DEPOSITS AND BORROWINGS DETAIL:
Loans, by type:
	Real estate - commercial mortgage	$  9,676,517		$  9,601,858		$  9,493,479		$  9,289,770		$  8,252,117
	Commercial and industrial	4,531,266		4,605,589		4,914,734		4,967,796		4,467,589
	Real estate - residential mortgage	6,409,657		6,349,643		6,302,624		6,248,856		5,395,720
	Real estate - home equity	1,170,470		1,160,616		1,144,402		1,120,878		1,040,335
	Real estate - construction	1,175,445		1,394,899		1,332,954		1,463,799		1,249,199
	Consumer	597,305		616,856		651,717		692,086		698,421
	Leases and other loans(2)	301,914		315,458		336,165		323,112		341,102
	Total Net Loans	$ 23,862,574		$ 24,044,919		$ 24,176,075		$ 24,106,297		$ 21,444,483
Deposits, by type:
	Noninterest-bearing demand	$  5,435,934		$  5,499,760		$  5,501,699		$  5,609,383		$  5,086,514
	Interest-bearing demand	7,804,388		7,843,604		7,779,472		7,478,077		5,521,017
	Savings	8,208,526		7,792,114		7,740,595		7,563,495		6,846,038
	Total demand and savings	21,448,848		21,135,478		21,021,766		20,650,955		17,453,569
	Brokered	738,458		843,857		843,473		995,975		1,152,427
	Time	4,141,666		4,150,098		4,286,905		3,912,724		3,135,954
	Total Deposits	$ 26,328,972		$ 26,129,433		$ 26,152,144		$ 25,559,654		$ 21,741,950
Borrowings, by type:
	Federal Home Loan Bank advances	$     750,000		$     850,000		$     950,000		$     750,000		$     900,000
	Senior debt and subordinated debt	367,396		367,316		535,917		535,741		535,566
	Other borrowings	539,804		564,732		566,310		892,856		860,474
	Total Borrowings	$  1,657,200		$  1,782,048		$  2,052,227		$  2,178,597		$  2,296,040
(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
			Mar 31		Dec 31		Sep 30		Jun 30		Mar  31
			2025		2024		2024		2024		2024
Net Interest Income:
	Interest income		$       399,692		$       414,368		$       427,656		$       400,506		$       339,666
	Interest expense		148,505		160,709		169,647		158,786		132,729
	Net Interest Income		251,187		253,659		258,009		241,720		206,937
	Provision for credit losses		13,898		16,725		11,929		32,056		10,925
	Net Interest Income after Provision		237,289		236,934		246,080		209,664		196,012
Non-Interest Income:
	Wealth management		21,785		22,002		21,596		20,990		20,155
	Commercial banking:
	Merchant and card		6,591		7,082		7,496		7,798		6,808
	Cash management		7,799		7,633		7,201		6,966		6,305
	Capital markets		2,411		2,797		3,311		2,585		2,341
	Other commercial banking		4,528		4,942		4,281		4,061		3,375
	Total commercial banking		21,329		22,454		22,289		21,410		18,829
	Consumer banking:
	Card		7,544		8,064		7,917		8,305		6,628
	Overdraft		3,295		3,644		3,957		3,377		2,786
	Other consumer banking		2,229		2,601		3,054		2,918		2,254
	Total consumer banking		13,068		14,309		14,928		14,600		11,668
	Mortgage banking		3,138		3,759		3,142		3,951		3,090
	Gain on acquisition, net of tax		—		(2,689)		(7,706)		47,392		—
	Other		7,914		6,089		5,425		4,933		3,398
	Non-interest income before investment securities gains (losses)		67,234		65,924		59,674		113,276		57,140
	Investment securities losses, net		(2)		—		(1)		(20,282)		—
	Total Non-Interest Income		67,232		65,924		59,673		92,994		57,140
Non-Interest Expense:
	Salaries and employee benefits		103,526		107,886		118,824		110,630		95,481
	Data processing and software		18,599		19,550		20,314		20,357		17,661
	Net occupancy		18,207		16,417		18,999		17,793		16,149
	Other outside services		11,837		14,531		15,839		16,933		13,283
	Intangible amortization		6,269		6,282		6,287		4,688		573
	FDIC insurance		5,597		5,921		5,109		6,696		6,104
	Equipment		4,150		4,388		4,860		4,561		4,040
	Marketing		2,521		2,695		2,251		2,101		1,912
	Professional fees		(1,078)		3,387		2,811		2,571		2,088
	Acquisition-related expenses		380		9,637		14,195		13,803		—
	Other		19,452		25,921		16,600		(645)		20,309
	Total Non-Interest Expense		189,460		216,615		226,089		199,488		177,600
	Income Before Income Taxes		115,061		86,243		79,664		103,170		75,552
	Income tax expense		22,074		17,623		16,458		8,195		13,611
	Net Income		92,987		68,620		63,206		94,975		61,941
	Preferred stock dividends		(2,562)		(2,562)		(2,562)		(2,562)		(2,562)
	Net Income Available to Common  Shareholders		$         90,425		$         66,058		$         60,644		$         92,413		$         59,379
			Three months ended
			Mar 31		Dec 31		Sep 30		Jun 30		Mar  31
			2025		2024		2024		2024		2024
PER SHARE:
	Net income available to common shareholders (basic)		$0.50		$0.36		$0.33		$0.53		$0.36
	Net income available to common shareholders (diluted)		$0.49		$0.36		$0.33		$0.52		$0.36
	Cash dividends		$0.18		$0.18		$0.17		$0.17		$0.17
	Weighted average shares (basic)		182,179		182,032		181,905		175,305		162,706
	Weighted average shares (diluted)		184,077		183,867		183,609		176,934		164,520

 

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
(dollars in thousands)
		Three months ended
		March 31, 2025						December 31, 2024						March 31, 2024
		Average				Yield/		Average				Yield/		Average				Yield/
		Balance		Interest(1)		Rate		Balance		Interest(1)		Rate		Balance		Interest(1)		Rate
ASSETS
Interest-earning assets:
	Net loans(2)	$  24,006,863		$ 347,626		5.86 %		$  24,068,784		$ 360,642		5.97 %		$  21,370,033		$ 313,882		5.90 %
	Investment securities(3)	5,199,000		47,242		3.63 %		5,033,765		44,616		3.54 %		3,983,753		27,048		2.71 %
	Other interest-earning assets	793,126		9,164		4.67 %		1,086,536		13,453		4.93 %		249,079		3,328		5.36 %
	Total Interest-Earning Assets	29,998,989		404,032		5.44 %		30,189,085		418,711		5.53 %		25,602,865		344,258		5.40 %
Noninterest-earning assets:
	Cash and due from banks	301,897						288,867						282,895
	Premises and equipment	191,248						183,801						223,375
	Other assets	1,864,996						1,816,421						1,614,746
	Less: ACL - loans(4)	(385,529)						(379,322)						(296,255)
	Total Assets	$  31,971,601						$  32,098,852						$  27,427,626
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits	$ 7,753,586		$   34,189		1.79 %		$ 7,838,590		$   37,952		1.93 %		$ 5,596,725		$   20,500		1.47 %
	Savings deposits	7,971,728		45,101		2.29 %		7,806,303		47,280		2.41 %		6,669,228		38,797		2.34 %
	Brokered deposits	904,722		10,038		4.50 %		877,526		10,619		4.81 %		1,083,382		14,655		5.44 %
	Time deposits	4,127,784		41,564		4.08 %		4,232,849		46,023		4.33 %		2,968,344		29,622		4.01 %
	Total Interest-Bearing Deposits	20,757,820		130,892		2.56 %		20,755,268		141,874		2.72 %		16,317,679		103,574		2.55 %
	Borrowings and other interest-bearing liabilities	1,754,900		17,613		4.07 %		1,847,431		18,835		4.06 %		2,608,376		29,155		4.46 %
	Total Interest-Bearing Liabilities	22,512,720		148,505		2.67 %		22,602,699		160,709		2.83 %		18,926,055		132,729		2.82 %
Noninterest-bearing liabilities:
	Demand deposits	5,412,063						5,558,110						5,061,075
	Other liabilities	792,693						719,017						673,551
	Total Liabilities	28,717,476						28,879,826						24,660,681
	Shareholders' equity	3,254,125						3,219,026						2,766,945
	Total Liabilities and Shareholders' Equity	$  31,971,601						$  32,098,852						$  27,427,626
	Net interest income/net interest margin (fully taxable equivalent)			255,527		3.43 %				258,002		3.41 %				211,529		3.32 %
	Tax equivalent adjustment			(4,340)						(4,343)						(4,592)
	Net Interest Income			$ 251,187						$ 253,659						$ 206,937
	(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.
	(2) Average balances include non-performing loans.
	(3) Average balances include amortized historical cost for available for sale ("AFS") securities; the related unrealized holding gains (losses) are included in other assets.
	(4) ACL - loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities.

 

FULTON FINANCIAL CORPORATION
AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED)
(dollars in thousands)
		Three months ended
		Mar 31		Dec 31		Sep 30		Jun 30		Mar  31
		2025		2024		2024		2024		2024
Loans, by type:
	Real estate - commercial mortgage	$ 9,655,283		$ 9,595,996		$ 9,318,273		$ 8,958,139		$ 8,166,018
	Commercial and industrial	4,608,401		4,730,101		4,998,051		4,853,583		4,517,179
	Real estate - residential mortgage	6,367,978		6,319,205		6,268,922		5,977,132		5,353,905
	Real estate - home equity	1,160,713		1,116,665		1,122,313		1,117,367		1,039,321
	Real estate - construction	1,296,090		1,312,245		1,437,907		1,430,057		1,240,640
	Consumer	615,741		665,261		682,602		685,183		721,523
	Leases and other loans(1)	302,657		329,311		319,733		324,453		331,447
	Total Net Loans	$  24,006,863		$  24,068,784		$  24,147,801		$  23,345,914		$  21,370,033
Deposits, by type:
	Noninterest-bearing demand	$ 5,412,063		$ 5,558,110		$ 5,495,950		$ 5,460,025		$ 5,061,075
	Interest-bearing demand	7,753,586		7,838,590		7,668,583		7,080,302		5,596,725
	Savings	7,971,728		7,806,303		7,663,599		7,309,141		6,669,228
	Total demand and savings	21,137,377		21,203,003		20,828,132		19,849,468		17,327,028
	Brokered	904,722		877,526		842,661		1,123,328		1,083,382
	Time	4,127,784		4,232,849		4,107,466		3,670,158		2,968,344
	Total Deposits	$  26,169,883		$  26,313,378		$  25,778,259		$  24,642,954		$  21,378,754
Borrowings, by type:
	Federal funds purchased	$            —		$            54		$            —		$      32,637		$    173,659
	Federal Home Loan Bank advances	709,367		727,957		754,130		833,726		902,890
	Senior debt and subordinated debt	367,357		449,795		535,831		535,656		535,479
	Other borrowings and other interest-bearing liabilities	678,176		669,625		939,387		1,039,672		996,348
	Total Borrowings	$ 1,754,900		$ 1,847,431		$ 2,229,348		$ 2,441,691		$ 2,608,376
(1) Includes equipment lease financing, overdraft and net origination fees and costs.

 

FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
(dollars in thousands)
		Three months ended
		Mar 31		Dec 31		Sep 30		Jun 30		Mar  31
		2025		2024		2024		2024		2024
Allowance for credit losses related to net loans:
Balance at beginning of period		$      379,156		$      375,961		$      375,941		$      297,888		$      293,404
	CECL day 1 provision expense(1)	—		—		—		23,444		—
	Initial purchased credit deteriorated allowance for credit losses	—		(136)		(1,139)		55,906		—
	Loans charged off:
	Real estate - commercial mortgage	(12,106)		(2,844)		(2,723)		(7,853)		(26)
	Commercial and industrial	(3,865)		(9,480)		(6,256)		(2,955)		(7,632)
	Real estate - residential mortgage	(343)		(55)		(1,131)		(35)		(251)
	Consumer and home equity	(2,193)		(2,179)		(2,308)		(1,766)		(2,238)
	Real estate - construction	—		—		—		—		—
	Leases and other loans(2)	(1,527)		(1,768)		(726)		(1,398)		(805)
	Total loans charged off	(20,034)		(16,326)		(13,144)		(14,007)		(10,952)
Recoveries of loans previously charged off:
	Real estate - commercial mortgage	374		199		107		146		152
	Commercial and industrial	5,952		1,387		1,008		796		1,248
	Real estate - residential mortgage	174		104		130		122		116
	Consumer and home equity	660		974		545		1,161		676
	Real estate - construction	82		47		103		233		—
	Leases and other loans(2)	201		194		129		247		162
	Recoveries of loans previously charged off	7,443		2,905		2,022		2,705		2,354
Net loans charged off		(12,591)		(13,421)		(11,122)		(11,302)		(8,598)
Provision for credit losses(1)		13,112		16,752		12,281		10,005		13,082
Balance at end of period		$      379,677		$      379,156		$      375,961		$      375,941		$      297,888
Net charge-offs to average loans(3)		0.21 %		0.22 %		0.18 %		0.19 %		0.16 %
Provision for credit losses related to OBS Credit Exposures
	Provision for credit losses(1)	$            786		$           (27)		$         (352)		$       (1,393)		$       (2,157)
NON-PERFORMING ASSETS:
	Non-accrual loans	$      162,426		$      189,293		$      175,861		$      145,630		$      129,628
	Loans 90 days past due and accruing	34,367		30,781		26,286		26,962		26,521
	Total non-performing loans	196,793		220,074		202,147		172,592		156,149
	Other real estate owned	2,193		2,621		2,844		1,444		277
	Total non-performing assets	$      198,986		$      222,695		$      204,991		$      174,036		$      156,426
NON-PERFORMING LOANS, BY TYPE:
	Commercial and industrial	$        42,913		$        43,677		$        64,450		$        58,433		$        44,118
	Real estate - commercial mortgage	88,081		102,359		71,467		48,615		47,891
	Real estate - residential mortgage	46,878		45,901		41,727		41,033		40,685
	Consumer and home equity	12,682		14,374		12,830		11,886		10,172
	Leases and other loans(2)	2,573		12,017		9,927		9,993		10,135
	Real estate - construction	3,666		1,746		1,746		2,632		3,148
	Total non-performing loans	$      196,793		$      220,074		$      202,147		$      172,592		$      156,149
(1) The sum of these amounts are reflected in the provision for credit losses in the Condensed Consolidated Statements of Income.
(2) Includes equipment lease financing, overdraft and net origination fees and costs.
(3) Quarterly results are annualized.

 

FULTON FINANCIAL CORPORATION
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
(dollars in thousands, except per share and share data)
Explanatory note:	This press release contains supplemental financial information, as detailed below, that has been derived by methods other than GAAP. The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:

						Three months ended
						Mar 31		Dec 31		Sep 30		Jun 30		Mar  31
						2025		2024		2024		2024		2024
Operating net income available to common shareholders
Net income available to common shareholders						$        90,425		$       66,058		$       60,644		$       92,413		$       59,379
Less: Other revenue						(122)		(269)		(677)		(708)		(151)
Plus: Gain on acquisition, net of tax						—		2,689		7,706		(47,392)		—
Plus: Loss on securities restructuring						—		—		—		20,282		—
Plus: Core deposit intangible amortization						6,155		6,155		6,155		4,556		441
Plus: Acquisition-related expense						380		9,637		14,195		13,803		—
Plus: CECL day 1 provision expense						—		—		—		23,444		—
Less: Gain on sale-leaseback						—		—		—		(20,266)		—
Plus: FDIC special assessment						—		—		(16)		—		956
Plus: FultonFirst implementation and asset disposals						(47)		10,001		9,385		6,323		6,329
Less: Tax impact of adjustments						(1,337)		(5,360)		(6,099)		(9,961)		(1,591)
Operating net income available to common shareholders (numerator)						$        95,454		$       88,911		$       91,293		$       82,494		$       65,363
Weighted average shares (diluted) (denominator)						184,077		183,867		183,609		176,934		164,520
Operating net income available to common shareholders, per share (diluted)						$           0.52		$          0.48		$          0.50		$          0.47		$          0.40
Common shareholders' equity (tangible), per share
Shareholders' equity						$     3,274,321		$    3,197,325		$    3,203,943		$    3,101,609		$    2,757,679
Less: Preferred stock						(192,878)		(192,878)		(192,878)		(192,878)		(192,878)
Less: Goodwill and intangible assets						(629,189)		(635,458)		(641,739)		(648,026)		(560,114)
Tangible common shareholders' equity (numerator)						$     2,452,254		$    2,368,989		$    2,369,326		$    2,260,705		$    2,004,687
Shares outstanding, end of period (denominator)						182,204		182,089		181,957		181,831		162,087
Common shareholders' equity (tangible), per share						$          13.46		$         13.01		$         13.02		$         12.43		$         12.37
						Three months ended
						Mar 31		Dec 31		Sep 30		Jun 30		Mar  31
						2025		2024		2024		2024		2024
Operating return on average assets(1)
Net income						$        92,987		$       68,620		$       63,206		$       94,975		$       61,941
Less: Other revenue						(122)		(269)		(677)		(708)		(151)
Less: Gain on acquisition, net of tax						—		2,689		7,706		(47,392)		—
Plus: Loss on securities restructuring						—		—		—		20,282		—
Plus: Core deposit intangible amortization						6,155		6,155		6,155		4,556		441
Plus: Acquisition-related expense						380		9,637		14,195		13,803		—
Plus: CECL day 1 provision expense						—		—		—		23,444		—
Less: Gain on sale-leaseback						—		—		—		(20,266)		—
Plus: FDIC special assessment						—		—		(16)		—		956
Plus: FultonFirst implementation and asset disposals						(47)		10,001		9,385		6,323		6,329
Less: Tax impact of adjustments						(1,337)		(5,360)		(6,099)		(9,961)		(1,591)
Operating net income (numerator)						$        98,016		$       91,473		$       93,855		$       85,056		$       67,925
Total average assets						$   31,971,601		$  32,098,852		$  31,895,235		$  30,774,891		$  27,427,626
Less: Average net core deposit intangible						(77,039)		(83,173)		(89,350)		(68,234)		(4,666)
Total operating average assets  (denominator)						$   31,894,562		$  32,015,679		$  31,805,885		$  30,706,657		$  27,422,960
Operating return on average assets						1.25 %		1.14 %		1.17 %		1.11 %		1.00 %
Operating return on average common shareholders' equity (tangible)(1)
Net income available to common shareholders						$        90,425		$       66,058		$       60,644		$       92,413		$       59,379
Less: Other revenue						(122)		(269)		(677)		(708)		(151)
Less: Gain on acquisition, net of tax						—		2,689		7,706		(47,392)		—
Plus: Loss on securities restructuring						—		—		—		20,282		—
Plus: Intangible amortization						6,269		6,282		6,287		4,688		573
Plus: Acquisition-related expense						380		9,637		14,195		13,803		—
Plus: CECL day 1 provision expense						—		—		—		23,444		—
Less: Gain on sale-leaseback						—		—		—		(20,266)		—
Plus: FDIC special assessment						—		—		(16)		—		956
Plus: FultonFirst implementation and asset disposals						(47)		10,001		9,385		6,323		6,329
Less: Tax impact of adjustments						(1,361)		(5,387)		(6,127)		(9,989)		(1,618)
Adjusted net income available to common shareholders (numerator)						$        95,544		$       89,011		$       91,397		$       82,598		$       65,468
Average shareholders' equity						$     3,254,125		$    3,219,026		$    3,160,322		$    2,952,671		$    2,766,945
Less: Average preferred stock						(192,878)		(192,878)		(192,878)		(192,878)		(192,878)
Less: Average goodwill and intangible assets						(632,254)		(638,507)		(644,814)		(624,471)		(560,393)
Average tangible common shareholders' equity (denominator)						$     2,428,993		$    2,387,641		$    2,322,630		$    2,135,322		$    2,013,674
Operating return on average common shareholders' equity (tangible)						15.95 %		14.83 %		15.65 %		15.56 %		13.08 %
(1) Results are annualized.
						Three months ended
						Mar 31		Dec 31		Sep 30		Jun 30		Mar  31
						2025		2024		2024		2024		2024
Tangible common equity to tangible assets (TCE Ratio)
Shareholders' equity						$     3,274,321		$    3,197,325		$    3,203,943		$    3,101,609		$    2,757,679
Less: Preferred stock						(192,878)		(192,878)		(192,878)		(192,878)		(192,878)
Less: Goodwill and intangible assets						(629,189)		(635,458)		(641,739)		(648,026)		(560,114)
Tangible common shareholders' equity (numerator)						$     2,452,254		$    2,368,989		$    2,369,326		$    2,260,705		$    2,004,687
Total assets						$   32,132,028		$  32,071,810		$  32,185,726		$  31,769,813		$  27,642,957
Less: Goodwill and intangible assets						(629,189)		(635,458)		(641,739)		(648,026)		(560,114)
Total tangible assets (denominator)						$   31,502,839		$  31,436,352		$  31,543,987		$  31,121,787		$  27,082,843
Tangible common equity to tangible assets						7.78 %		7.54 %		7.51 %		7.26 %		7.40 %
Efficiency ratio
Non-interest expense						$      189,460		$     216,615		$     226,089		$     199,488		$     177,600
Less: Acquisition-related expense						(380)		(9,637)		(14,195)		(13,803)		—
Plus: Gain on sale-leaseback						—		—		—		20,266		—
Less: FDIC special assessment						—		—		16		—		(956)
Less: FultonFirst implementation and asset disposals						47		(10,001)		(9,385)		(6,323)		(6,329)
Less: Intangible amortization						(6,269)		(6,282)		(6,287)		(4,688)		(573)
Operating non-interest expense (numerator)						$      182,858		$     190,695		$     196,238		$     194,940		$     169,742
Net interest income						$      251,187		$     253,659		$     258,009		$     241,720		$     206,937
Tax equivalent adjustment						4,340		4,343		4,424		4,556		4,592
Plus: Total non-interest income						67,232		65,924		59,673		92,994		57,140
Less: Other revenue						(122)		(269)		(677)		(708)		(151)
Less: Gain on acquisition, net of tax						—		2,689		7,706		(47,392)		—
Plus: Investment securities (gains) losses, net						2		—		1		20,282		—
Total revenue (denominator)						$      322,639		$     326,346		$     329,136		$     311,452		$     268,518
Efficiency ratio						56.7 %		58.4 %		59.6 %		62.6 %		63.2 %
Operating non-interest expense to total average assets(1)
Non-interest expense						$      189,460		$     216,615		$     226,089		$     199,488		$     177,600
Less: Intangible amortization						(6,269)		(6,282)		(6,287)		(4,688)		(573)
Less: Acquisition-related expense						(380)		(9,637)		(14,195)		(13,803)		—
Plus: Gain on sale-leaseback						—		—		—		20,266		—
Less: FDIC special assessment						—		—		16		—		(956)
Less: FultonFirst implementation and asset disposals						47		(10,001)		(9,385)		(6,323)		(6,329)
Operating non-interest expense (numerator)						$      182,858		$     190,695		$     196,238		$     194,940		$     169,742
Total average assets (denominator)						$   31,971,601		$  32,098,852		$  31,895,235		$  30,774,891		$  27,427,626
Operating non-interest expenses to total average assets						2.32 %		2.36 %		2.45 %		2.55 %		2.49 %
(1) Results are annualized.

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SOURCE Fulton Financial Corporation

FAQ

What was Fulton Financial's (FULT) earnings per share in Q1 2025?

FULT reported earnings of $0.49 per diluted share, with operating earnings of $0.52 per diluted share in Q1 2025.

How did FULT's deposit base change in Q1 2025?

Customer deposits increased by $304.9 million (4.9% annualized), excluding brokered deposits, reaching a total of $26.3 billion.

What is FULT's current allowance for credit losses ratio?

The allowance for credit losses was $379.7 million, representing 1.59% of total net loans as of March 31, 2025.

How did FULT's non-performing assets ratio change in Q1 2025?

Non-performing assets improved to 0.62% of total assets, down from 0.69% in the previous quarter.