LANCASTER, PA — Fulton Financial Corporation (NASDAQ: FULT) closed out 2025 with sharply higher annual profits, overcoming a modest fourth-quarter slowdown as the regional banking company delivered double-digit earnings growth, strengthened capital levels, and stepped up share repurchases.
Net income available to common shareholders totaled $96.4 million, or $0.53 per diluted share, in the fourth quarter, down slightly from the prior quarter. Operating net income for the period came in at $99.4 million, or $0.55 per diluted share, reflecting higher expenses and continued margin pressure late in the year.
For the full year, however, Fulton posted net income of $381.4 million, or $2.08 per diluted share, a $102.9 million increase from 2024. Operating net income rose to $396.8 million, or $2.16 per diluted share, marking a 17% increase in operating diluted earnings per share.
“The strength of our strategy and the dedication of our team combined to generate a 17% increase in our operating diluted earnings per share,” said Curtis J. Myers, Fulton’s chairman, chief executive officer, and president. He said the company expanded its customer base, grew its workforce, and delivered solid financial performance throughout the year.
In the fourth quarter, Fulton reported a net interest margin of 3.59%, aided by a 13-basis-point decline in the total cost of funds. Net interest income rose $1.8 million to $266.0 million, as lower interest expense on deposits and borrowings partially offset softer loan and investment income.
Non-interest income dipped slightly to $70.0 million, while non-interest expense climbed $16.4 million to $213.0 million. The increase was driven largely by higher salaries and employee benefits, including incentive compensation, healthcare costs, and severance, as well as higher occupancy, maintenance, and technology expenses.
The company set aside $2.9 million for credit losses in the quarter, ending the year with an allowance for credit losses of $364.5 million, or 1.51% of total net loans. Asset quality improved, with non-performing assets falling to $185.2 million, or 0.58% of total assets, from 0.63% in the prior quarter.
Fulton’s balance sheet continued to expand. Total net loans increased to $24.1 billion, while deposits rose $256.9 million to $26.6 billion, driven by growth in brokered deposits, noninterest-bearing demand deposits, and savings accounts.
Capital levels also strengthened, with the common equity tier 1 capital ratio rising to about 11.8%. During the fourth quarter, Fulton repurchased more than 1.08 million shares for $19.9 million under its 2025 repurchase program, bringing total repurchases for the year to $59.0 million. In December, the board approved a new 2026 repurchase program authorizing up to $150 million in buybacks.
Company officials said the strong full-year performance positions Fulton for continued growth, even as economic uncertainty, higher operating costs, and credit conditions remain key factors to watch heading into 2026.
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