Fulton Financial Reports $90.4M Net Income in Q1 2025, Operating EPS Hits $0.52

Fulton Financial Corporation (NASDAQ: FULT) reported a strong start to the year, posting net income available to common shareholders of $90.4 million, or $0.49 per diluted share, for the first quarter of 2025. Operating net income—which excludes acquisition-related and other non-core items—rose to $95.5 million, or $0.52 per diluted share.

Chairman and CEO Curtis J. Myers highlighted the performance, stating, “We are pleased with our first quarter operating earnings of $0.52 per diluted share and encouraged by the strong start to the year. Our team continues to focus on long-term value creation despite the uncertain economic environment.”

Key Financial Metrics:

Net interest margin stood at 3.43%, supported by a 12 basis point drop in total cost of funds.

Non-interest expense declined sharply to $189.5 million from $216.6 million in Q4 2024.

Provision for credit losses was $13.9 million, with total allowance reaching $379.7 million, or 1.59% of total net loans.

Customer deposits, excluding brokered deposits, increased $304.9 million, annualized at 4.9%.

Common equity Tier 1 capital ratio improved to 11.0% from 10.8% in the previous quarter.

Loan and Deposit Trends:

Total net loans stood at $23.9 billion, reflecting a $182.3 million decrease driven by a $244.3 million drop in commercial and other loans—partially offset by a $62 million rise in consumer loans. Deposits grew by $199.5 million to $26.3 billion, boosted by savings inflows despite declines in brokered and demand deposits.

Asset Quality:

Fulton reported continued stability in asset quality:

Non-performing assets dropped to $199 million (0.62% of total assets), down from $222.7 million in Q4.

Net charge-offs represented 0.21% of average loans, slightly down from 0.22% in the prior quarter.

Efficiency and Profitability:

The company improved its efficiency ratio to 56.7% from 58.4% in Q4. Return on average assets reached 1.18%, and operating return on tangible common equity rose to 15.95%.

Fulton attributes part of its performance to efficiencies gained through the integration of Republic Bank assets acquired in 2024. The bank continues to show resilience amid ongoing industry-wide rate and regulatory shifts.

Fulton Financial Corporation completed its acquisition of Republic First Bank from the Federal Deposit Insurance Corporation (FDIC) on April 26, 2024. Fulton Bank, a wholly owned subsidiary of Fulton Financial, acquired assets with a fair value of $4.8 billion, including $2.5 billion in loans, $1.9 billion in investment securities, and $0.2 billion in cash and interest-earning deposits. The bank also received $809.9 million in cash from the FDIC.

Fulton Bank assumed $5.6 billion in liabilities, including $4.1 billion in customer deposits. The transaction resulted in a preliminary gain on acquisition of $37.0 million after taxes. The acquired investment securities portfolio of $1.9 billion was sold shortly after the acquisition. Additionally, the acquired loan portfolio included both performing and deteriorated credit quality loans, with an allowance for credit losses of $78.1 million recorded at the acquisition date.

Fulton Bank did not enter into a loss-sharing arrangement with the FDIC. The acquisition enhances the bank's presence in Philadelphia, Pennsylvania, and New Jersey. The fair values of the acquired assets and assumed liabilities were determined in accordance with accounting standards for business combinations, and final adjustments will be made within one year of the acquisition date.

Fulton Financial Corporation announced that Karthik Sridharan, Senior Executive Vice President and Chief Operations and Technology Officer, is departing effective January 31, 2025. His departure will be considered a termination without cause under his employment agreement. He will receive his base salary for 12 months, a prorated target bonus for the current fiscal year, any vested but unpaid bonuses, and continued eligibility for health and welfare benefits for 12 months. Time-vested equity awards will vest according to plan terms, while other unvested awards will be forfeited.

Fulton Financial Corporation announced its 2024 fourth-quarter and full-year financial results, reporting net income available to common shareholders of $66.1 million, or $0.36 per diluted share, for the fourth quarter, an increase of $5.4 million compared to the third quarter. Operating net income for the quarter was $88.9 million, or $0.48 per diluted share, reflecting a $2.4 million decrease from the prior quarter. For the full year, net income reached $278.5 million, or $1.57 per diluted share, while operating net income totaled $328.1 million, or $1.85 per diluted share, representing an 8 percent increase in operating earnings per share compared to 2023.

The company noted a strong net interest margin of 3.41 percent for the fourth quarter, supported by lower funding costs. Non-interest expenses declined by $9.5 million compared to the third quarter, driven by reduced employee severance costs and acquisition-related savings. However, FultonFirst implementation and financial center consolidation costs added $10 million to expenses. While total loans and deposits saw slight decreases during the quarter, the company maintained stable asset quality with a provision for credit losses at $16.7 million and non-performing assets at 0.69 percent of total assets.

CEO Curtis J. Myers emphasized the company’s strategic and operational progress, citing record performance and an optimistic outlook for 2025. Fulton Financial's efficiency ratio improved to 58.4 percent, reflecting ongoing efforts to enhance profitability through cost management and operational adjustments, including gains from consolidating financial centers. The report highlights a strong foundation for continued success amid strategic investments and careful management of expenses.