#United States #earnings report #Lancaster #Fulton Financial #Q1 2025

Fulton Financial Corporation Q1 2025 Earnings Report

On April 15, 2025, Fulton Financial Corporation (NASDAQ: FULT) announced its earnings results for the first quarter of 2025, showcasing a robust performance with net income available to common shareholders totaling $90.4 million, equivalent to $0.49 per diluted share. This marks a significant increase of $24.4 million, or $0.13 per share, compared to the previous quarter.

Overview of Q1 2025 Financial Performance

The operating net income available to common shareholders reached $95.5 million, or $0.52 per diluted share, indicating a growth of $6.5 million or $0.04 per share from Q4 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," stated Curtis J. Myers, Chairman and CEO of Fulton. He emphasized the team's disciplined approach in generating value for stakeholders while maintaining a long-term focus amidst an evolving and uncertain environment.

Financial Highlights

Several key components influenced the operating results for the first quarter:

• - The net interest margin stood at a solid 3.43%, reflecting a modest 12 basis point decline in total cost of funds from the past quarter.
• - Non-interest expenses decreased significantly by $27.2 million, falling to $189.5 million, down from $216.6 million in the previous quarter.
• - A provision for credit losses of $13.9 million resulted in a $379.7 million allowance, accounting for 1.59% of total net loans as of March 31, 2025.
• - Customer deposits, excluding brokered deposits, surged by $304.9 million or an annualized 4.9% when compared to the prior quarter.
• - The common equity tier 1 capital ratio improved to approximately 11.0%, up from 10.8% in the last quarter.

Detailed Financial Review

In terms of net interest income, Fulton reported a total of $251.2 million, with a decrease of $2.5 million largely driven by lower short-term interest rates and day count adjustments. The company experienced a $13.0 million reduction in interest income from net loans, although this was partially mitigated by a $12.2 million decrease in interest expenses associated with interest-bearing liabilities.

Meanwhile, non-interest income before accounting for investment securities gains and losses increased modestly to $67.2 million, up from $65.9 million in Q4 2024. This enhancement was attributed to a reduction in the gain on acquisition coupled with a $2.4 million uptick in income from equity method investments. However, it was tempered by declines in several revenue streams including mortgage banking and merchant fee income.

A Positive Outlook

The decrease in non-interest expenses can also be traced back to strategic cost management, with the organization demonstrating agile operations in tandem with its FultonFirst initiative. This has led to reductions in both professional fees and employee salaries and benefits expenses.

Fulton Financial's balance sheet showed net loans totaling $23.9 billion, demonstrating a slight decrease compared to the $24.0 billion recorded as of December 31, 2024. While commercial loans dipped due to the payoff of problematic loans, there was a noted increase in consumer loans.

Additionally, total deposits rose to approximately $26.3 billion, reflecting the company's efforts to bolster its deposit base, with savings deposits leading the charge.

As Fulton Financial approaches the remainder of 2025, the management's focus remains on nurturing a robust financial position while adeptly navigating market fluctuations. The corporation remains dedicated to enhancing shareholder value through its disciplined operational practices and strategic growth initiatives, aiming for sustained success in a complex economic climate.

For more detailed information and insights on Fulton Financial's performance, visit their official website at www.fultonbank.com.