LANCASTER, PA — Fulton Financial Corporation (NASDAQ: FULT) posted a strong second quarter, reporting $100.6 million in operating net income available to common shareholders, or $0.55 per diluted share—marking a company record and a notable increase from $95.4 million, or $0.52 per diluted share, in the previous quarter.
Including non-operating adjustments, net income for the quarter stood at $96.6 million, or $0.53 per diluted share, up from $90.4 million, or $0.49 per diluted share, in Q1 2025. The company’s half-year performance also outpaced last year, with $187.1 million in net income, or $1.02 per diluted share, up from $151.8 million, or $0.89 per share, during the first six months of 2024.
“I’m proud that our team has delivered a new company record,” said Curt Myers, Chairman and CEO. “Our community banking strategy continues to provide significant value to customers and has once again resulted in strong bottom-line results for the company.”
Solid Core Performance
Fulton’s net interest income climbed to $254.9 million in Q2, up $3.7 million from the prior quarter, driven by gains in loan and investment income and reduced deposit interest expense. The net interest margin held steady at 3.47%.
Non-interest income rose to $69.1 million, reflecting broad-based increases across mortgage banking, card fees, cash management, and wealth management. However, the gains were partially offset by a $2.7 million decline in equity method investment income.
Operating non-interest expense totaled $187.6 million, up $4.8 million from Q1, largely due to seasonal merit increases and higher incentive compensation. Other increases included professional fees, which rebounded after a recovery booked in the prior quarter.
Loan Growth and Capital Strength
Fulton reported $24.0 billion in net loans as of June 30, 2025—an increase of $150 million from the end of Q1—driven primarily by growth in consumer lending.
Despite loan growth, total deposits fell to $26.1 billion, down $190.9 million quarter-over-quarter. The decline stemmed from reductions in interest-bearing and noninterest-bearing demand accounts, partially offset by increases in brokered and savings deposits.
The bank’s Common Equity Tier 1 capital ratio edged up to 11.3% from 11.1% the previous quarter, signaling continued capital strength.
Credit Quality and Risk Position
The provision for credit losses was $8.6 million for the quarter, resulting in an allowance of $377.3 million, or 1.57% of total net loans. Non-performing assets rose modestly to $215.6 million, or 0.67% of total assets.
Net charge-offs were 0.20% of average loans on an annualized basis, slightly down from 0.21% in Q1.
Outlook
Fulton’s strong second-quarter results reflect disciplined balance sheet management, healthy margins, and resilient credit quality amid a challenging rate environment. With continued investment in its community banking platform and a stable capital base, the bank appears well-positioned for the second half of 2025.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.