Fulton Financial's Q3 Net Income Jumps 59% on Expense Cuts

Ticker: FULTP · Form: 10-Q · Filed: Nov 7, 2025 · CIK: 700564

Fulton Financial Corp 10-Q Filing Summary
FieldDetail
CompanyFulton Financial Corp (FULTP)
Form Type10-Q
Filed DateNov 7, 2025
Risk Levelmedium
Pages15
Reading Time18 min
Key Dollar Amounts$2.50, $125 million, $25 million
Sentimentbullish

Sentiment: bullish

Topics: Regional Banking, Earnings Growth, Expense Management, Net Interest Income, Credit Quality, Financial Performance, Shareholder Equity

Related Tickers: FULT, FULTP

TL;DR

**FULTON's Q3 numbers are a pleasant surprise, showing strong profit growth driven by smart cost controls – definitely one to watch!**

AI Summary

Fulton Financial Corp (FULTP) reported a robust financial performance for the three months ended September 30, 2025, with net income surging by 58.9% to $100.454 million from $63.206 million in the prior-year quarter. Net interest income also increased by 2.4% to $264.198 million, up from $258.009 million in Q3 2024. This growth was primarily driven by a significant reduction in interest expense, which fell by 13.4% to $146.808 million, despite a 4.0% decrease in total interest income to $411.006 million. Non-interest income saw a substantial rise of 17.9% to $70.407 million, largely due to the absence of the $7.706 million gain on acquisition recorded in Q3 2024. Total non-interest expense decreased by 13.0% to $196.574 million, mainly due to lower acquisition-related expenses, which dropped from $14.195 million in Q3 2024 to zero in Q3 2025. The allowance for credit losses (ACL) on loans slightly decreased to $376.258 million from $379.156 million at December 31, 2024, indicating stable credit quality. Total assets remained relatively stable at $31.995 billion, a slight decrease from $32.072 billion at year-end 2024.

Why It Matters

Fulton Financial's strong Q3 2025 performance, marked by a significant net income increase and reduced expenses, signals effective cost management and improved operational efficiency. This positive trend could attract investors seeking stable regional banking exposure, especially given the competitive landscape where deposit costs are a key differentiator. Employees may benefit from a more secure and profitable company, while customers could see continued investment in services. The broader market will watch if Fulton can sustain this momentum, particularly in managing interest rate sensitivities and integrating past acquisitions like Republic First Bank, setting a benchmark for regional bank resilience.

Risk Assessment

Risk Level: medium — While net income increased significantly, total interest income decreased by 4.0% to $411.006 million in Q3 2025 compared to Q3 2024, primarily due to a $17.742 million drop in loan interest income. This indicates potential pressure on core lending revenue. Additionally, the company's reliance on its subsidiaries for substantially all revenues and its exposure to commercial mortgage, commercial and industrial, and construction loans, which represent a majority of the loan portfolio, expose it to increased credit risk as noted in the forward-looking statements.

Analyst Insight

Investors should consider Fulton Financial's improved profitability and expense management as a positive signal, but remain cautious about the slight decline in total interest income. Monitor future filings for sustained net interest margin improvement and any shifts in loan portfolio credit quality, especially given the concentration in commercial loans. This could be a good entry point for long-term investors if the company demonstrates continued revenue diversification and stable asset quality.

Financial Highlights

revenue
$264.198M
total Assets
$31.995B
total Debt
$1.472B
net Income
$100.454M
eps
$0.54
cash Position
$814.197M
revenue Growth
+2.4%

Revenue Breakdown

SegmentRevenueGrowth
Loans, including fees$355.505M-4.75%
Investment securities$47.944M+31.92%
Other interest income$7.557M-58.17%

Key Numbers

  • $100.454M — Net Income (Q3 2025) (Increased 58.9% from $63.206 million in Q3 2024)
  • $264.198M — Net Interest Income (Q3 2025) (Increased 2.4% from $258.009 million in Q3 2024)
  • $146.808M — Total Interest Expense (Q3 2025) (Decreased 13.4% from $169.647 million in Q3 2024)
  • $70.407M — Total Non-Interest Income (Q3 2025) (Increased 17.9% from $59.673 million in Q3 2024)
  • $196.574M — Total Non-Interest Expense (Q3 2025) (Decreased 13.0% from $226.089 million in Q3 2024)
  • $31.995B — Total Assets (Sept 30, 2025) (Slight decrease from $32.072 billion at Dec 31, 2024)
  • $376.258M — ACL - loans (Sept 30, 2025) (Slight decrease from $379.156 million at Dec 31, 2024)
  • $0.54 — Basic EPS (Q3 2025) (Increased from $0.33 in Q3 2024)

Key Players & Entities

  • FULTON FINANCIAL CORP (company) — registrant
  • Fulton Bank, N.A. (company) — subsidiary bank
  • Republic First Bank (company) — acquired entity
  • FDIC (regulator) — Federal Deposit Insurance Corporation
  • The Nasdaq Stock Market, LLC (company) — exchange where FULT and FULTP are registered
  • Blue Owl Capital Inc. (company) — affiliate involved in Sale-Leaseback Transaction
  • Federal Reserve Board (regulator) — influences money supply and market interest rates
  • SEC (regulator) — United States Securities and Exchange Commission

FAQ

What were Fulton Financial's net income and net interest income for Q3 2025?

Fulton Financial reported a net income of $100.454 million for the three months ended September 30, 2025, a 58.9% increase from $63.206 million in Q3 2024. Net interest income for the same period was $264.198 million, up 2.4% from $258.009 million in Q3 2024.

How did Fulton Financial's expenses change in Q3 2025 compared to Q3 2024?

Total interest expense for Fulton Financial decreased by 13.4% to $146.808 million in Q3 2025 from $169.647 million in Q3 2024. Total non-interest expense also saw a significant reduction, falling by 13.0% to $196.574 million from $226.089 million in Q3 2024, largely due to lower acquisition-related expenses.

What was the change in Fulton Financial's total assets and allowance for credit losses?

As of September 30, 2025, Fulton Financial's total assets were $31.995 billion, a slight decrease from $32.072 billion at December 31, 2024. The allowance for credit losses (ACL) on loans decreased slightly to $376.258 million from $379.156 million over the same period.

What factors contributed to the increase in Fulton Financial's non-interest income?

Fulton Financial's total non-interest income increased by 17.9% to $70.407 million in Q3 2025 from $59.673 million in Q3 2024. This rise was primarily due to growth in wealth management, commercial banking, and consumer banking income, coupled with the absence of a negative gain on acquisition of $7.706 million recorded in the prior year.

What is Fulton Financial's common stock outstanding as of October 30, 2025?

As of October 30, 2025, Fulton Financial Corporation had 180,593,797 shares of common stock outstanding, with a par value of $2.50 per share.

What is the 2025 Repurchase Program for Fulton Financial?

The 2025 Repurchase Program authorizes Fulton Financial to repurchase up to $125 million of its common stock between January 1, 2025, and December 31, 2025. Up to $25 million of this authorization can also be used to repurchase preferred stock and outstanding Subordinated Notes due 2030.

What are the primary risks Fulton Financial faces regarding its loan portfolio?

Fulton Financial's loan portfolio, which primarily consists of commercial mortgage loans, commercial and industrial loans, and construction loans, exposes the Corporation to increased credit risk. This concentration makes the company vulnerable to adverse conditions in these specific market segments.

How has the Republic First Transaction impacted Fulton Financial?

The Republic First Transaction, which was the acquisition of substantially all assets and assumption of deposits and certain liabilities of Republic First Bank by Fulton Bank on April 26, 2024, has been a significant event. While the Q3 2025 filing shows no acquisition-related expenses, the prior year's Q3 2024 included $14.195 million in such expenses, indicating the integration costs are now largely behind them.

What was Fulton Financial's basic earnings per share for Q3 2025?

Fulton Financial's basic earnings per share (EPS) for common shareholders was $0.54 for the three months ended September 30, 2025. This represents a significant increase from $0.33 in the same period of 2024.

What is the current status of Fulton Financial's FHLB advances?

Fulton Financial's FHLB advances decreased to $450.000 million as of September 30, 2025, from $850.000 million at December 31, 2024. This reduction in borrowings indicates a potential improvement in liquidity management or a shift in funding strategy.

Industry Context

Fulton Financial Corp operates within the regional banking sector, characterized by increasing competition from larger national banks and fintech companies. Trends include a focus on digital transformation, personalized customer service, and managing interest rate sensitivity. The industry is also navigating evolving regulatory landscapes and the ongoing impact of economic conditions on loan demand and credit quality.

Regulatory Implications

As a financial institution, Fulton Financial Corp is subject to stringent regulatory oversight from bodies like the Federal Reserve and the FDIC. Compliance with capital adequacy requirements, consumer protection laws, and anti-money laundering regulations is paramount. Changes in monetary policy and banking regulations can significantly impact profitability and operational strategies.

What Investors Should Do

  1. Monitor Net Interest Margin (NIM) trends.
  2. Analyze the drivers of non-interest income growth.
  3. Evaluate the impact of reduced non-interest expenses.

Glossary

ACL - loans
Allowance for Credit Losses on loans. This is a contra-asset account that reduces the carrying amount of loans to their estimated net realizable value. (A slight decrease to $376.258M from $379.156M at year-end 2024 indicates stable credit quality and potentially lower expected loan losses.)
AFS
Available-for-Sale securities. These are debt and equity securities that are not classified as held-to-maturity or trading securities. They are reported at fair value on the balance sheet. (The value of AFS securities increased to $3.594B from $3.411B, contributing to overall asset growth and potentially impacting other comprehensive income.)
HTM
Held-to-Maturity securities. These are debt securities that the entity has the intent and ability to hold until maturity. They are reported at amortized cost. (HTM securities increased to $1.451B from $1.396B, showing a shift in investment strategy or market valuation.)
Noninterest-bearing deposits
Customer deposits that do not earn interest, such as many checking accounts. (These deposits decreased to $5.136B from $5.499B, which could impact the bank's cost of funds.)
Interest-bearing deposits
Customer deposits that earn interest, such as savings accounts, money market accounts, and certificates of deposit. (These deposits increased to $21.196B from $20.630B, indicating growth in core funding sources.)

Year-Over-Year Comparison

Compared to the prior year's quarter, Fulton Financial Corp has demonstrated strong performance with a 58.9% surge in net income to $100.454 million. This was supported by a 2.4% increase in net interest income, primarily driven by a significant 13.4% reduction in interest expense. Non-interest income also saw a robust 17.9% rise, while total non-interest expenses decreased by 13.0%, largely due to lower acquisition-related costs. Total assets remained stable, and the allowance for credit losses showed a slight decrease, indicating a stable credit environment.

Filing Stats: 4,437 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2025-11-07 16:32:00

Key Financial Figures

  • $2.50 — ich registered Common Stock, par value $2.50 FULT The Nasdaq Stock Market, LLC Depo
  • $125 million — December 31, 2025, to repurchase up to $125 million of the Corporation's common stock; unde
  • $25 million — stock; under this authorization, up to $25 million of the $125 million authorization may b

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statement s

Item 1. Financial Statement s : (a) Consolidated Balance Sheets - September 30, 2025 and December 31, 2024 6 (b) Consolidated Statements of Income - Three months and nine months ended September 30, 2025 and 2024 7 (c) Consolidated Statements of Comprehensive Income - Three months and nine months ended September 30, 2025 and 2024 8 (d) Consolidated Statements of Shareholders' Equity - Three months and nine months ended September 30, 2025 and 2024 9 (e) Consolidated Statements of Cash Flows - Nine months ended September 30, 2025 and 2024 10 (f) Notes to Consolidated Financial Statements 11

Management's Discussion and Analysis of Financial Condition and Results of Operations 35

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 35

Quantitative and Qualitative Disclosures A bout Market Risk

Item 3. Quantitative and Qualitative Disclosures A bout Market Risk 61

Controls and Procedures

Item 4. Controls and Procedures 64

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 65

Risk Factors

Item 1A. Risk Factors 65

Unregistered Sales of Equity Securit ies and Use of Proceeds

Item 2. Unregistered Sales of Equity Securit ies and Use of Proceeds 65

Defaults Upon Senior Securities - (not applicable)

Item 3. Defaults Upon Senior Securities - (not applicable)

Mine Safety Disclosures - (not applicable)

Item 4. Mine Safety Disclosures - (not applicable)

Other Information

Item 5. Other Information 65

Exhibits

Item 6. Exhibits 66

Signatures

Signatures 67 Note: Some numbers contained in the document may not sum due to rounding 2 GLOSSARY OF DEFINED ACRONYMS AND TERMS 2025 Repurchase Program The authorization, commencing on January 1, 2025 and expiring on December 31, 2025, to repurchase up to $125 million of the Corporation's common stock; under this authorization, up to $25 million of the $125 million authorization may be used to repurchase the Corporation's preferred stock and outstanding Subordinated Notes due 2030 ACL Allowance for credit losses Acquisition Date April 26, 2024, the date of the Republic First Transaction AFS Available for sale ALCO Asset/Liability Management Committee AOCI Accumulated other comprehensive income (loss) ASC Accounting Standards Codification ASU Accounting Standards Update BHCA Bank Holding Company Act of 1956, as amended bp or bps Basis point(s) Capital Rules Regulatory capital requirements applicable to the Corporation and Fulton Bank CDI Core deposit intangible CECL Day 1 Provision Initial provision for credit losses required on non-PCD Loans acquired in the Republic First Transaction Corporation, Company, we, our or us Fulton Financial Corporation Directors' Plan Amended and Restated 2023 Director Equity Plan Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act Employee Equity Plan 2022 Amended and Restated Equity and Cash Incentive Compensation Plan ESPP Employee Stock Purchase Plan ETR Effective tax rate Exchange Act Securities Exchange Act of 1934, as amended FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation Federal Reserve Board Board of Governors of the Federal Reserve System FHLB Federal Home Loan Bank FRB Federal Reserve Bank FTE Fully taxable-equivalent Fulton Bank or the Bank Fulton Bank, N.A. GAAP U.S. generally accepted accounting principles H.R. 1 The reconciliation bill titled "An Act to provide for reconciliation pursuant to Title II of H. Con. Res. 14," for

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS The Corporation has made, and may continue to make, certain forward-looking statements with respect to its 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. Many factors could affect futu

Financial Statements

Item 1. Financial Statements CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per-share data) September 30, 2025 December 31, 2024 (unaudited) ASSETS Cash and due from banks $ 307,267 $ 279,041 Interest-bearing deposits with other banks 506,930 784,830 Cash and Cash Equivalents 814,197 1,063,871 FRB and FHLB stock 136,181 139,574 Loans held for sale 19,875 25,618 Investment securities: AFS, at estimated fair value 3,594,076 3,410,899 HTM, at amortized cost 1,451,194 1,395,569 Net loans 24,041,489 24,044,919 Less: ACL - loans ( 376,258 ) ( 379,156 ) Loans, Net 23,665,231 23,665,763 Net premises and equipment 178,644 195,527 Accrued interest receivable 114,003 117,029 Goodwill and net intangible assets 618,361 635,458 Other assets 1,403,324 1,422,502 Total Assets $ 31,995,086 $ 32,071,810 LIABILITIES Deposits: Noninterest-bearing $ 5,136,210 $ 5,499,760 Interest-bearing 21,196,280 20,629,673 Total Deposits 26,332,490 26,129,433 Borrowings: FHLB advances 450,000 850,000 Senior debt and subordinated debt 367,557 367,316 Other borrowings 654,404 564,732 Total Borrowings 1,471,961 1,782,048 Accrued interest payable 22,583 31,620 Other liabilities 754,454 931,384 Total Liabilities 28,581,488 28,874,485 SHAREHOLDERS' EQUITY Preferred stock, no par value, 10,000,000 shares authorized; Series A, 200,000 shares issued as of September 30, 2025 and December 31, 2024, liquidation preference of $ 1,000 per share 192,878 192,878 Common stock, $ 2.50 par value, 600,000,000 shares authorized, 247,085,529 shares issued as of September 30, 2025 and 245,946,392 shares issued as of December 31, 2024 617,714 614,866 Additional paid-in capital 1,798,679 1,789,214 Retained earnings 1,962,390 1,775,620 Accumulated other comprehensive loss ( 227,542 ) ( 287,819 ) Treasury stock, at cost, 66,220,076 shares as of September 30, 2025 and 63,857,567 shares as of December 31, 2024 ( 930,521 ) ( 887,434 ) Total Shareholders' Equity 3,413,598

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1 – Basis of Presentation The accompanying unaudited Consolidated Financial Statements of the Corporation have been prepared in conformity with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities as of the date of the financial statements as well as revenues and expenses during the period. Actual results could differ from those estimates. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited Conso

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