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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]

Core Insights - Fulton Financial reported revenue of $334.61 million for the quarter ended September 2025, marking a year-over-year increase of 3.9% and exceeding the Zacks Consensus Estimate of $332.85 million by 0.53% [1] - The company achieved an EPS of $0.55, up from $0.50 a year ago, and surpassed the consensus EPS estimate of $0.48 by 14.58% [1] Financial Performance Metrics - Net Interest Margin was reported at 3.6%, slightly above the average estimate of 3.5% from two analysts [4] - The Efficiency Ratio stood at 56.5%, better than the estimated 59.9% by two analysts [4] - Total Non-Interest Income reached $70.41 million, exceeding the average estimate of $69.35 million from two analysts [4] - Net Interest Income (FTE) was reported at $268.63 million, surpassing the average estimate of $263.5 million from two analysts [4] Stock Performance - Fulton Financial's shares have returned -7.7% over the past month, contrasting with the Zacks S&P 500 composite's increase of 1.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Fulton Financial (FULT) reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, and showing an increase from $0.5 per share a year ago, representing an earnings surprise of +14.58% [1][2] Financial Performance - The company achieved revenues of $334.61 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.53% and increasing from $322.11 million year-over-year [2] - Over the last four quarters, Fulton Financial has consistently surpassed consensus EPS estimates [2] Stock Performance - Fulton Financial shares have declined approximately 8.5% since the beginning of the year, contrasting with the S&P 500's gain of 14.5% [3] - The current Zacks Rank for Fulton Financial is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $331.95 million, and for the current fiscal year, it is $1.97 on revenues of $1.32 billion [7] - The trend of estimate revisions for Fulton Financial was mixed prior to the earnings release, which may change following the recent report [6] Industry Context - The Banks - Northeast industry, to which Fulton Financial belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Fulton Financial Corporation reported net income available to common shareholders of $97.9 million, or $0.53 per diluted share, for Q3 2025, an increase of $1.3 million compared to Q2 2025[2]. - Operating net income for the nine months ended September 30, 2025, was $297.4 million, or $1.62 per diluted share, an increase of $58.2 million, or $0.25 per diluted share, compared to the same period in 2024[2]. - Net income available to common shareholders for Q3 2025 was $97,892, up 1.3% from $96,636 in Q2 2025 and a significant increase from $90,425 in Q1 2025[19]. - The diluted earnings per share for Q3 2025 was $0.53, consistent with Q2 2025 and an increase from $0.49 in Q1 2025[19]. - The company reported an income before income taxes of $127,786 for Q3 2025, compared to $122,651 in Q2 2025, reflecting a positive trend in profitability[18]. - Net income for the three months ended September 30, 2025, was $100,454 million, an increase from $99,198 million in the previous quarter and $63,206 million in the same quarter last year, representing a year-over-year growth of 58.9%[27]. - Operating net income available to common shareholders for the nine months ended September 30, 2025, was $297,390 million, up from $239,174 million in the same period last year, marking a 24.3% increase[29]. Asset Quality - The provision for credit losses was $10.2 million, resulting in an allowance for credit losses of $376.3 million, or 1.57% of total net loans[10]. - Non-performing assets were $201.0 million, or 0.63% of total assets, down from $215.6 million, or 0.67% of total assets, as of June 30, 2025[10]. - Non-performing loans to total net loans decreased to 0.83% from 0.89% in the previous quarter, showing enhanced asset quality[16]. - Non-performing loans totaled $198,734 thousand as of September 30, 2025, a decrease from $212,891 thousand at June 30, 2025, reflecting a reduction of about 6.6%[25]. - The balance of non-accrual loans was $150,137 thousand as of September 30, 2025, down from $182,942 thousand at June 30, 2025, indicating a decrease of about 17.9%[25]. Capital and Equity - The common equity tier 1 capital ratio increased to approximately 11.5% compared to 11.3% in the prior quarter[6]. - Common shareholders' equity increased to $17.81 from $17.20 in the previous quarter, reflecting a growth of 3.55%[15]. - The tangible common equity ratio increased to 8.3%, up from 7.5% in the previous year, reflecting stronger capital position[16]. - The company reported a total risk-based capital ratio of 14.9%, up from 14.0% year-over-year, demonstrating a solid capital buffer[16]. - Common shareholders' equity (tangible), per share, increased to $14.39 as of September 30, 2025, from $13.78 at June 30, 2025, representing a growth of approximately 4.4%[26]. - Average shareholders' equity increased to $3,361,368 million from $3,304,015 million in the previous quarter, indicating growth in shareholder value[27]. Revenue and Income Sources - Non-interest income increased by $1.3 million to $70.4 million compared to $69.1 million in the prior quarter[3]. - Net interest income for Q3 2025 was $264,198, an increase of 3.0% from $254,921 in Q2 2025 and up 5.2% from $251,187 in Q1 2025[18]. - Total revenue for the quarter was $338,903 million, an increase from $328,449 million in the previous quarter, driven by higher net interest income and non-interest income[28]. - Non-interest income for Q3 2025 totaled $70,407, a slight increase from $69,148 in Q2 2025, but down from $67,234 in Q1 2025[18]. Loans and Deposits - Total net loans reached $24.0 billion as of September 30, 2025, with a nominal increase of $29.0 million from June 30, 2025[5]. - Total deposits totaled $26.3 billion, an increase of $194.4 million compared to $26.1 billion as of June 30, 2025[7]. - Total net loans increased to $24,020,322 thousand in Q3 2025, up from $23,899,742 thousand in Q2 2025, reflecting a growth of 0.5%[22]. - Total deposits reached $26,298,680 thousand in Q3 2025, a slight increase from $26,125,602 thousand in Q2 2025, representing a growth of 0.66%[22]. - Total deposits rose to $26.332 billion, compared to $26.138 billion in the previous quarter, indicating growth in customer deposits[17]. Operational Efficiency - The efficiency ratio improved to 56.5%, down from 59.6% year-over-year, suggesting better operational efficiency[16]. - Total non-interest expense for Q3 2025 was $196,574, up from $192,811 in Q2 2025, indicating increased operational costs[18]. - Non-interest expense for the quarter was $196,574 million, up from $192,811 million in the previous quarter, but down from $226,089 million a year ago[28]. - Operating return on average assets for the quarter was 1.29%, slightly down from 1.30% in the previous quarter but up from 1.17% a year ago[27].