Core Insights - The article emphasizes the importance of a ranking system based on earnings estimates and revisions to identify winning stocks, while also acknowledging the diverse strategies investors may adopt [1] - Value investing is highlighted as a popular method for identifying undervalued stocks through fundamental analysis and established metrics [2] Company Analysis - Fulton Financial (FULT) is currently under observation, holding a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong interest from investors [3] - FULT has a Price-to-Sales (P/S) ratio of 1.69, which is lower than the industry average of 1.83, suggesting it may be undervalued [4] - The Price-to-Cash Flow (P/CF) ratio for FULT stands at 12.09, compared to the industry average of 16.70, further indicating potential undervaluation based on cash flow strength [5] - The metrics presented suggest that FULT is likely undervalued, especially when considering its positive earnings outlook, making it an attractive value stock at this time [6]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025, or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-39680 FULTON FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Pennsylvania 23-2195389 (State or o ...

Core Insights - The article emphasizes the importance of value investing, which focuses on identifying undervalued companies in the market [2][3] - Fulton Financial (FULT) is highlighted as a strong value stock, currently holding a Zacks Rank of 2 (Buy) and an A for Value [3][6] Company Metrics - Fulton Financial has a Price-to-Sales (P/S) ratio of 1.73, which is lower than the industry average of 1.86, indicating potential undervaluation [4] - The company's Price-to-Cash Flow (P/CF) ratio stands at 12.09, compared to the industry average of 15.78, further suggesting that FULT may be undervalued [5] - Over the past year, FULT's P/CF has fluctuated between a high of 13.36 and a low of 9.05, with a median of 11.55, reflecting its cash flow performance [5]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Financial Data and Key Metrics Changes - Operating earnings for the third quarter were $101.3 million, or $0.55 per share, reflecting strong profitability and positive operating leverage [4][9] - Total revenue reached an all-time high, driven by increased net interest income and fee income, with an efficiency ratio of 56.5% and an operating ROA of 1.29% [5][7] - The company repurchased 1.65 million shares at a weighted average cost of $18.67 per share, while tangible book value per share grew 18% on a linked quarter annualized basis [5][16] Business Line Data and Key Metrics Changes - Deposit growth outpaced loan growth, with deposits increasing by $194 million, primarily from demand and savings accounts, while total loan balances grew by $29 million [6][10] - Non-interest income for the quarter was $70.4 million, representing 21% of total revenue, with growth driven by wealth and consumer businesses [14] Market Data and Key Metrics Changes - The loan-to-deposit ratio ended the quarter at 91%, with a decline in non-interest-bearing balances to 19.5% of total deposits [11][12] - The net interest margin increased by 10 basis points to 3.57%, with net interest income on a non-FTE basis at $264.2 million, a $9.3 million increase linked quarter [12][13] Company Strategy and Development Direction - The company continues to focus on organic growth and maintaining a diversified balance sheet, with a strategy to pursue acquisitions in the $1 billion to $5 billion community bank segment [31][33] - Management emphasized the importance of managing deposit pricing to balance funding future growth while defending margins [13][14] Management Comments on Operating Environment and Future Outlook - Management expressed caution regarding credit quality due to economic uncertainties but noted steady performance in the loan portfolio, with improvements in non-performing loans and charge-offs [7][15] - The company updated its 2025 operating guidance, increasing net interest income expectations while tightening provisions and operating expenses [16][17] Other Important Information - The allowance for credit losses to total loans ratio remained stable at 1.57%, with an increase in ACL to non-performing loan coverage to 189% [15] - The company has remaining buyback authorization of $86 million under the current plan, indicating ongoing commitment to capital management [16][49] Q&A Session Summary Question: Impact of net interest income guidance revision - Management acknowledged that the revised guidance implies some margin pressure in the fourth quarter due to rate cuts, estimating a $2 million annualized NII headwind for every 25 basis points [20][21] Question: Positive operating leverage in 2026 - Management aims to generate organic growth to drive positive operating leverage, focusing on managing expense and revenue levels [22][23] Question: Cumulative interest-bearing deposit beta expectations - Management targets maintaining the cumulative interest-bearing deposit beta around 30% as the Fed cuts rates [27] Question: Organic growth opportunities in specific markets - Management highlighted opportunities for organic growth in Virginia, Maryland, and Philadelphia, driven by customer acquisition and talent recruitment [33] Question: Capital management and loan growth - Management stated that organic growth remains a priority, followed by corporate activities and buybacks, with $86 million remaining in buyback authorization [49][50]

Financial Data and Key Metrics Changes - Operating earnings for the third quarter were $101.3 million, or $0.55 per share, reflecting strong profitability and positive operating leverage [4][9] - Total revenue reached an all-time high, driven by growth in net interest income and fee income, with an efficiency ratio of 56.5% and an operating ROA of 1.29% [5][7] - The company repurchased 1.65 million shares at a weighted average cost of $18.67, while tangible book value per share grew 18% on a linked quarter annualized basis [5][16] Business Line Data and Key Metrics Changes - Deposit growth outpaced loan growth, with deposits increasing by $194 million, primarily from demand and savings accounts, while total loan balances grew by $29 million [6][10] - Non-interest income for the quarter was $70.4 million, accounting for 21% of total revenue, with significant contributions from the wealth management business [14] Market Data and Key Metrics Changes - The loan-to-deposit ratio ended the quarter at 91%, with a decline in non-interest-bearing balances to 19.5% of total deposits [11][12] - The average cost of total deposits decreased by 2 basis points to 1.96%, while the total cost of funds declined by 4 basis points [13] Company Strategy and Development Direction - The company aims to continue its community banking strategy and regional scale to deliver customer value and strong results for shareholders [4] - There is a focus on organic growth and maintaining a balanced approach to capital deployment, including share repurchases and potential M&A opportunities [16][49] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding credit performance due to economic uncertainties but noted steady performance in the loan portfolio, with improvements in non-performing loans and charge-offs [7][15] - The company updated its 2025 operating guidance, increasing net interest income expectations while tightening provisions and operating expenses [17] Other Important Information - The company anticipates a seasonal outflow of municipal balances in the fourth quarter, which typically sees a 40% to 50% reduction from the third quarter inflows [11][60] - The company maintains a healthy capital position with a tangible common equity to tangible asset ratio of 8.3% and a CET1 ratio of 11.5% [16] Q&A Session Summary Question: Impact of net interest income guidance revision - Management acknowledged that the revised guidance implies some margin pressure in the fourth quarter due to rate cuts, estimating a $2 million annualized NII headwind for every 25 basis points [20][21] Question: Positive operating leverage in 2026 - Management emphasized the focus on generating organic growth to drive positive operating leverage, with a neutral balance sheet position aiding this goal [22][23] Question: Cumulative interest-bearing deposit beta expectations - Management aims to maintain the cumulative interest-bearing deposit beta around 30% as loan growth normalizes [27] Question: Organic growth opportunities in specific markets - Management highlighted opportunities for organic growth in Virginia, Maryland, and Philadelphia, driven by customer acquisition and talent recruitment [33] Question: Capital management and repurchase strategy - Management stated that organic growth remains the priority, followed by corporate activities and then share buybacks, with $86 million remaining in buyback authorization [49][50]

Financial Data and Key Metrics Changes - Operating earnings for Q3 2025 were $101.3 million, or $0.55 per share, reflecting strong profitability and a diversified balance sheet [7][14] - Total revenue reached an all-time high, driven by increased net interest income and fee income, with an efficiency ratio of 56.5% and an operating ROA of 1.29% [7][11] - Tangible book value per share grew 18% on a linked quarter annualized basis despite share repurchases [8][23] Business Line Data and Key Metrics Changes - Deposit growth outpaced loan growth, increasing by $194 million, primarily from demand and savings accounts, while total loan balances grew by $29 million [9][16] - Non-interest income for the quarter was $70.4 million, accounting for 21% of total revenue, with significant contributions from the wealth management business [21] - Non-interest expense increased to $191.4 million, mainly due to higher salaries and benefits [22] Market Data and Key Metrics Changes - The loan-to-deposit ratio ended the quarter at 91%, with non-interest bearing balances declining to 19.5% of total deposits [17] - The average cost of total deposits decreased to 1.96%, while the total cost of funds declined by four basis points [20] Company Strategy and Development Direction - The company continues to focus on organic growth and maintaining positive operating leverage, with a strategy to manage expenses and revenue effectively [33][34] - The company is actively seeking acquisition opportunities in the $1 billion to $5 billion asset bank segment to enhance market penetration [42] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding credit quality due to economic uncertainties but noted steady performance in the loan portfolio [12][22] - The company updated its 2025 operating guidance, increasing net interest income expectations while tightening provisions and operating expenses [24] Other Important Information - The company repurchased 1.65 million shares at an average cost of $18.67, with remaining buyback authorization of $86 million [8][23] - The allowance for credit losses to total loans ratio remained stable at 1.57%, with non-performing assets improving to 0.63% [22] Q&A Session Summary Question: Impact of net interest income guidance revision - Management acknowledged that the revised guidance implies some margin pressure in Q4 due to rate cuts, estimating a $2 million annualized NII headwind for every 25 basis points cut [28][30] Question: Positive operating leverage in 2026 - Management aims to generate positive operating leverage consistently, focusing on organic growth and managing expense levels [32][34] Question: Cumulative interest-bearing deposit beta - Management targets maintaining the cumulative interest-bearing deposit beta around 30% as loan growth normalizes [38] Question: Organic growth opportunities - Management highlighted opportunities for organic growth in Virginia, Maryland, and Philadelphia, focusing on customer acquisition and talent recruitment [44] Question: Current exposure levels to NDFIs - Management reported very low exposure to NDFIs, primarily involving loans to community bank holding companies [70] Question: Deposit costs and brokered CDs - Management indicated that deposit costs decreased due to the runoff of brokered CDs and will manage the loan-deposit ratio effectively in Q4 [76]

Financial Data and Key Metrics Changes - Operating earnings for Q3 2025 were $101.3 million, or $0.55 per share, reflecting strong profitability and positive operating leverage [4][10] - Total revenue reached an all-time high, driven by growth in net interest income and fee income, with an efficiency ratio of 56.5% and an operating ROA of 1.29% [5][10] - The company repurchased 1.65 million shares at a weighted average cost of $18.67, while tangible book value per share grew 18% on a linked quarter annualized basis [5][10] Business Line Data and Key Metrics Changes - Total loan balances increased by $29 million, with residential and commercial mortgages driving growth, despite declines in commercial and industrial loans [10][11] - Deposits grew by $194 million, primarily from demand and savings products, while timed deposits declined [11][12] - Non-interest income for the quarter was $70.4 million, representing 21% of total revenue, with growth driven by wealth and consumer businesses [15] Market Data and Key Metrics Changes - The loan-to-deposit ratio ended the quarter at 91%, with non-interest-bearing balances declining to 19.5% of total deposits [12] - The net interest margin increased by 10 basis points to 3.57%, with net interest income on a non-FTE basis at $264.2 million [12][13] - The provision for loan losses remained stable, with net charge-offs declining to 18 basis points and non-performing assets improving to 0.63% of total assets [16] Company Strategy and Development Direction - The company continues to focus on organic growth and maintaining a diversified balance sheet to drive positive operating leverage [24][44] - Strategic actions taken throughout the year have created headwinds to loan growth, but the company expects these to moderate, allowing for a return to long-term growth trends [7][11] - The company is actively seeking acquisition opportunities within the $1 billion to $5 billion asset bank segment to enhance market penetration [29] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding credit quality due to economic uncertainties but noted steady performance in the loan portfolio [8][9] - The company updated its 2025 operating guidance, increasing net interest income expectations while tightening provisions and operating expenses [17][18] - Management remains focused on generating organic growth and managing expenses to achieve positive operating leverage [24][44] Other Important Information - The company maintains a healthy capital position, with a tangible common equity to tangible asset ratio of 8.3% and a CET1 ratio of 11.5% [16][17] - The company anticipates seasonal outflows in municipal balances in Q4, which could impact deposit levels [12][56] Q&A Session Summary Question: Impact of net interest income guidance revision - Management acknowledged that the revised guidance implies some margin compression in Q4 due to rate cuts, estimating a $2 million annualized NII headwind for every 25 basis points [20][21] Question: Positive operating leverage in 2026 - Management emphasized the goal of generating positive operating leverage consistently, focusing on organic growth and managing expense levels [23][24] Question: Cumulative interest-bearing deposit beta expectations - Management aims to maintain the cumulative interest-bearing deposit beta around 30% as loan growth normalizes [26] Question: Organic growth opportunities in specific markets - Management highlighted opportunities for organic growth in Virginia, Maryland, and Philadelphia, driven by customer acquisition and talent recruitment [31][32] Question: Current exposure levels to NDFIs - Management reported very low exposure to NDFIs, primarily involving loans to community bank holding companies [50][51] Question: Deposit costs and management strategies - Management indicated that they will manage deposit costs effectively, considering seasonal trends and customer deposits [54][56]

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Financial Performance Highlights - Net income available to common shareholders was $97.9 million in 3Q25[9], compared to $96.6 million in 2Q25[9] - Operating net income available to common shareholders reached a record of $101.3 million, or $0.55 per diluted share in 3Q25[9, 11] - The return on average assets (ROAA) was 1.25% in 3Q25, consistent with 2Q25[9, 12] - The operating return on average tangible common equity was 15.79% in 3Q25, compared to 16.26% in 2Q25[9, 12] - The efficiency ratio was 56.5% in 3Q25, improving from 57.1% in 2Q25[9, 12] Income Statement Summary - Net interest income was $264.2 million in 3Q25, an increase of $9.3 million compared to 2Q25[12] - Non-interest income before investment securities gains (losses) was $70.4 million in 3Q25, up $1.3 million from 2Q25[12] - Total non-interest expense was $196.6 million in 3Q25, an increase of $3.8 million compared to 2Q25[12] Net Interest Income and Margin - Net interest margin (NIM) was 3.57% in 3Q25, increasing by 10 basis points compared to 2Q25[21] - Loan yield was 5.93% in 3Q25, an increase of 7 basis points compared to 2Q25[21] - Total cost of deposits was 1.96% in 3Q25, a decrease of 2 basis points compared to 2Q25[21] Balance Sheet and Capital - Tangible capital increased by $90 million linked quarter, net of share repurchases[40] - Accumulated other comprehensive income (AOCI) ended the quarter at ($228) million[40] - $85.6 million remaining share repurchase authorization in place through December 31, 2025[40] 2025 Operating Guidance - Non-FTE Net Interest Income (NII) is expected to be in the range of $1.025 - $1.035 billion[41] - Provision for Credit Losses is expected to be in the range of $45 - $55 million[41] - Non-Interest Income is expected to be in the range of $270 - $280 million[41] - Operating Non-Interest Expense is expected to be in the range of $750 - $760 million[41]