LANCASTER, PA — Fulton Financial Corporation (NASDAQ: FULT) reported a 17% increase in third-quarter profit on October 21, 2026, as higher lending income, deposit growth and lower acquisition-related expenses strengthened earnings following its integration of Blue Foundry Bank.
The Lancaster-based bank holding company earned $114.1 million, or 59 cents per diluted share, for the quarter ended September 30, compared with $97.9 million, or 53 cents per share, a year earlier.
Profit increased 14% from the second quarter, when Fulton earned $99.9 million, or 52 cents per share.
Operating earnings, which exclude certain acquisition-related and other expenses, totaled $119.8 million, or 62 cents per diluted share, compared with $115.9 million, or 60 cents per share, in the preceding quarter.
The results reflect a larger banking operation following Fulton’s April acquisition of Blue Foundry Bancorp, along with higher interest income and reduced integration costs.
Fulton completed the integration of Blue Foundry Bank during the third quarter. The acquired bank merged into Fulton Bank on July 11, following completion of the acquisition on April 1.
Net interest income increased to $290 million from $284.3 million in the second quarter and $264.2 million a year earlier.
The quarterly increase reflected higher interest income from loans, investment securities and other earning assets, partially offset by rising deposit costs.
Interest expense on deposits increased $9 million from the preceding quarter, while interest expense on borrowings and other interest-bearing liabilities declined $2.1 million.
Fulton’s net interest margin narrowed slightly to 3.58% from 3.60% in the second quarter, indicating that higher funding costs continued to offset some of the benefit from earning assets.
Total deposits reached $28.8 billion at September 30, an increase of $571 million from June 30 and approximately $2.5 billion from a year earlier.
Savings deposits increased $601 million during the quarter, while interest-bearing demand deposits rose $324.1 million. Those gains were partially offset by a $428.5 million decline in brokered deposits and a $45.8 million reduction in noninterest-bearing demand deposits.
Fulton attributed the overall increase to commercial deposit growth and seasonal activity in municipal accounts.
Total loans remained relatively stable at $26 billion, increasing $43.6 million from the second quarter.
Consumer lending grew $107 million, led by an $81.1 million increase in residential mortgages and a $19.9 million increase in home equity loans.
Commercial loans declined $63.3 million, including a $66.4 million reduction in commercial construction lending.
The shift indicates that residential lending provided most of Fulton’s incremental loan growth during the quarter, while commercial construction balances contracted.
Noninterest income declined to $77.2 million from $79.3 million in the second quarter, largely because the earlier period included income from an equity-method investment that was subsequently sold.
Wealth management revenue increased $2.1 million from the preceding quarter to $25.3 million, partially offsetting the decline.
Noninterest expenses fell $12.4 million to $218.5 million, primarily because acquisition-related costs declined by $12.1 million.
Excluding specified items, operating noninterest expenses increased slightly to $211.2 million from $210.6 million.
Employee compensation costs increased $5.6 million, including higher incentive compensation, recruiting expenses and an additional calendar day during the quarter.
Credit quality improved on several measures.
The provision for credit losses declined to $4.1 million from $4.9 million in the second quarter. Annualized net charge-offs fell to 0.14% of average loans from 0.34%.
Nonperforming assets decreased to $179.4 million from $187.1 million, representing 0.52% of total assets compared with 0.54% three months earlier.
The allowance for credit losses on loans totaled $375.6 million, equivalent to 1.45% of outstanding loans, down from $382.6 million, or 1.48%, at June 30.
Fulton also continued returning capital to shareholders, repurchasing approximately 2.3 million common shares during the quarter for $56.1 million, at an average price of $24.14 per share.
Through September, the company had repurchased approximately 4.1 million shares for $91.8 million under its 2026 program, which authorizes up to $150 million in repurchases and expires January 31, 2027.
The company’s estimated common equity Tier 1 capital ratio stood at 12.2%, unchanged from the second quarter and above the 11.6% reported a year earlier.
Total assets reached $34.8 billion, compared with $34.6 billion at June 30 and $32 billion a year earlier.
For the first nine months of 2026, Fulton reported net income available to common shareholders of $306.1 million, or $1.62 per diluted share, compared with $285 million, or $1.55 per share, during the same period in 2025.
Nine-month operating earnings increased to $335.3 million, or $1.77 per diluted share, from $297.4 million, or $1.62 per share, a year earlier.
The results place Fulton in a stronger earnings position following its latest acquisition, although higher deposit costs and modest organic loan growth remain important factors in its financial performance.
Fulton Financial Corporation operates Fulton Bank, providing consumer and commercial banking services across its regional markets. Additional information is available at www.fultonbank.com.
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