LANCASTER, PA — Fulton Financial Corporation (NASDAQ: FULT) has posted robust financial results for the first quarter of 2025, reporting net income available to common shareholders of $90.4 million, or $0.49 per diluted share. This marks a significant improvement over the previous quarter, with an increase of $24.4 million, or $0.13 per share. Operating net income reached $95.5 million, or $0.52 per diluted share, up $6.5 million 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,” said Curtis J. Myers, Chairman and CEO. Myers emphasized the company’s focus on long-term objectives and disciplined stakeholder value creation amidst a dynamic environment.
Financial Highlights
Operating results for Q1 2025 were bolstered by a stable net interest margin of 3.43%, supported by reduced cost of funds. Non-interest expense saw a notable drop, declining $27.2 million to $189.5 million, while customer deposits (excluding brokered deposits) rose by $304.9 million, an annualized 4.9% growth rate. The company’s common equity tier 1 capital ratio also improved, climbing to 11.0% from 10.8% in the prior quarter.
Net interest income totaled $251.2 million, a slight drop of $2.5 million from Q4, following lower short-term interest rates. However, a decrease in interest expense largely compensated for reduced income on loans. Non-interest income grew to $67.2 million, driven by gains from equity method investments, despite minor setbacks in mortgage, debit card, and SBA loan income streams.
Balance Sheet and Credit Quality
Net loans ended at $23.9 billion, reflecting a decline of $182.3 million due to a reduction in commercial and other loans. However, consumer lending grew by $62.0 million within the same period. Deposits rose to $26.3 billion, fueled by a $416.4 million increase in savings deposits.
The provision for credit losses amounted to $13.9 million, sustaining an allowance for credit losses at $379.7 million, representing 1.59% of total net loans. Non-performing assets improved, declining to 0.62% of total assets from 0.69% in Q4 2024, and net charge-offs remained relatively stable at 0.21% of average loans.
Outlook
Fulton Financial’s Q1 performance underscores its resilience and disciplined approach to navigating a complex market landscape. With strong capital levels and credit quality, the company is positioned to capture opportunities and sustain value for shareholders in the quarters ahead.
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