Fulton Financial (FULT) Q1 2025 earnings summary

Executive summary

• Net income available to common shareholders rose to $90.4 million for Q1 2025, up $24.4 million from Q4 2024 and $31.0 million year-over-year, with diluted EPS of $0.49 and operating EPS of $0.52, both up sequentially.

• Tangible book value per share grew to $13.46, up from $13.01, and the company maintained strong liquidity and equity growth.

• Efficiency ratio improved to 56.7%, and operating return on average tangible common equity rose to 15.95%.

• The Republic First Bank acquisition added $4.8 billion in assets, $5.6 billion in liabilities, and a $37.0 million preliminary gain on acquisition, net of taxes.

• Strategic transformation initiatives under Fulton First advanced, focusing on talent alignment, growth reinvestment, and operational simplification.

Financial highlights

• Net interest income was $251.2 million, down $2.5 million sequentially but up $44.3 million year-over-year; net interest margin increased to 3.43%.

• Non-interest income totaled $67.2 million, up $1.3 million sequentially and $10.1 million year-over-year; fee income was 21% of revenue.

• Non-interest expense on an operating basis was $182.9 million, down $7.8 million sequentially; total non-interest expense was $189.5 million, up 6.7% year-over-year.

• Provision for credit losses was $13.9 million, with allowance for credit losses at 1.59% of loans.

• Deposit growth was $200 million (3% annualized), with total loans declining $182 million due to portfolio management actions.

Outlook and guidance

• 2025 net interest income expected between $995 million and $1.02 billion, assuming four 25bp Fed rate cuts starting June 2025.

• Provision for credit losses projected at $60–$80 million; non-interest income at $265–$280 million; operating non-interest expense at $755–$775 million.

• Loan growth is expected in the low single-digit range for the year, with momentum building after strategic headwinds in Q1.

• Effective tax rate expected at 18–19%.

• Guidance assumes continued balance sheet growth and stable net interest margin, with focus on integration of Republic First Bank assets.