Core Viewpoint - Fulton Financial (FULT) is positioned as a strong investment opportunity due to a significant upward revision in earnings estimates, indicating a positive earnings outlook that may continue to drive stock performance [1][2]. Earnings Estimate Revisions - Analysts have shown growing optimism regarding Fulton Financial's earnings prospects, reflected in the upward trend of estimate revisions, which historically correlates with stock price movements [2]. - For the current quarter, the earnings estimate is $0.48 per share, representing a decrease of 4.0% from the previous year, but the Zacks Consensus Estimate has increased by 9.02% over the last 30 days due to two upward revisions [6]. - The full-year earnings estimate is projected at $1.97 per share, reflecting a 6.5% increase from the prior year, with two estimates moving higher and no negative revisions noted [7][8]. Zacks Rank and Performance - Fulton Financial currently holds a Zacks Rank 2 (Buy), indicating favorable conditions for investment based on the positive estimate revisions [9]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500, suggesting that Fulton Financial may continue to deliver strong returns [9]. Recent Stock Performance - Over the past four weeks, Fulton Financial shares have increased by 9.9%, indicating investor confidence in the company's earnings growth potential [10].

Core Insights - Three stocks are highlighted with strong buy rankings and positive momentum characteristics for investors to consider: Monarch Casino & Resort, South Plains Financial, and Fulton Financial [1][2][4]. Company Summaries Monarch Casino & Resort (MCRI) - The company focuses on delivering exceptional guest experiences through superior services and amenities [1]. - It has a Zacks Rank of 1 (Strong Buy) and a 5.8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1]. - Shares increased by 43.1% over the last three months, outperforming the S&P 500's gain of 22.1% [2]. - The company holds a Momentum Score of A [2]. South Plains Financial (SPFI) - This holding company for City Bank provides financial services to small and medium-sized businesses and individuals [2]. - It also has a Zacks Rank of 1 and a 3.2% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2]. - Shares rose by 29.2% over the last three months, again surpassing the S&P 500's gain of 22.1% [3]. - The company possesses a Momentum Score of A [3]. Fulton Financial (FULT) - This bank holding company offers retail and commercial banking, as well as investment management and trust services in several states [4]. - Fulton Financial has a Zacks Rank of 1 and a 5% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [4]. - Shares gained 25.9% over the last three months, compared to the S&P 500's gain of 22.1% [5]. - The company also has a Momentum Score of A [5].

Group 1: Fulton Financial - Fulton Financial is a bank holding company providing retail and commercial banking and investment management services in central and eastern Pennsylvania, southern New Jersey, northern Maryland, and southern Delaware [1] - The Zacks Consensus Estimate for Fulton Financial's current year earnings has increased by 5% over the last 60 days [1] Group 2: OP Bancorp - OP Bancorp offers commercial banking services to retail and institutional customers [2] - The Zacks Consensus Estimate for OP Bancorp's current year earnings has increased by 1.8% over the last 60 days [2] - OP Bancorp has a dividend yield of 3.5%, compared to the industry average of 1.3% [2] Group 3: Microchip Technology - Microchip Technology develops and manufactures microcontrollers, memory, and analog and interface products for embedded control systems [3] - The Zacks Consensus Estimate for Microchip Technology's current year earnings has increased by 3.9% over the last 60 days [3] - Microchip Technology has a dividend yield of 2.4%, compared to the industry average of 0.0% [3]

Core Insights - The individual has a strong background in Business Administration and has completed CFA level 1, indicating a solid foundation in finance and investment analysis [1] - The investment strategy focuses on fundamental analysis rather than technical analysis, emphasizing the evaluation of actual company performance [1] - The investment approach is long-term and often contrarian, with a preference for US companies but also includes analysis of European and Chinese firms [1] Investment Strategy - The individual primarily invests in stocks and ETFs, showcasing a diversified investment approach [1] - A pragmatic perspective is adopted, moving away from complex trading charts to a more straightforward analysis of company results [1] - The long-term view of investments aligns with a strategy that seeks to capitalize on fundamental strengths of companies [1]

Financial Data and Key Metrics Changes - Operating earnings reached $100.6 million or $0.55 per share, marking a 3% increase linked quarter and a record for the company [6][14] - Total revenue increased due to growth in net interest income and fee income, with a quarterly efficiency ratio of 57.1% [7][8] - Operating return on average assets rose to 1.3%, and operating return on average tangible common equity increased to 16.26% [8] Business Line Data and Key Metrics Changes - Total loans grew by $150 million or 2.5%, primarily in residential mortgage and home equity portfolios, despite strategic runoff in indirect auto and certain commercial loans [9][15] - Non-interest income for the quarter was $69.1 million, with all categories showing linked quarter growth, including record highs in Wealth Management and Commercial Banking fees [10][11][19] Market Data and Key Metrics Changes - Deposits declined by $191 million or 2.9%, influenced by seasonal trends, with a loan to deposit ratio ending at 92% [15][16] - Non-interest bearing balances constituted 20% of total deposits, with expectations for municipal balance inflows in the third quarter [15] Company Strategy and Development Direction - The company continues to focus on its Community Banking strategy, aiming to attract and retain valuable customers while reinvesting in communities [5] - The M&A strategy remains focused on community banks in the $1 billion to $5 billion range, with a disciplined approach to metrics and strategy [46] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding loan growth, with an increase in the loan pipeline but a pull-through rate below historical norms due to economic uncertainties [42][43] - The company updated its 2025 operating guidance, including an increase in net interest income expectations and a decrease in provision expense [22][23] Other Important Information - The company repurchased 522,000 shares at a weighted average price of $16.9, contributing to a tangible book value per share growth of 9.5% on a linked quarter annualized basis [8][22] - The allowance for credit losses to total loans ratio ended at 1.57%, with a coverage ratio of 177% for non-performing loans [21] Q&A Session Summary Question: Expense guidance and timing for the back half of the year - Management indicated that the expense range for the back half of the year is expected to be below the midpoint due to timing and merit increases in the second quarter [27][31] Question: Fee income guidance and potential headwinds - Management expressed confidence in fee income growth, stating that consistent performance across categories could lead to trending towards the top end of the guidance range [34][35] Question: Status of the loan pipeline and impact of economic uncertainty - Management noted an increase in the loan pipeline but highlighted that customers remain cautious about new projects due to economic uncertainties [41][42] Question: Appetite for M&A and geographic focus - The company reiterated its focus on community banks within the specified size range, maintaining a disciplined approach to potential acquisitions [46] Question: Outlook for deposits and NIM - Management acknowledged competitive pressures on deposit costs but expressed a desire to fund future loan growth with customer deposits [53][54] Question: Trends in credit quality and non-performing loans - Management reported stable credit metrics but remained cautious due to economic factors, noting that the uptick in non-performing loans was related to a specific project [84]

Financial Data and Key Metrics Changes - Operating earnings reached $100.6 million or $0.55 per share, marking a 3% linked quarter increase and a record for the company [7][14] - Total revenue increased due to growth in net interest income and fee income, with a quarterly efficiency ratio of 57.1% [8][10] - Operating return on average assets rose to 1.3%, and operating return on average tangible common equity increased to 16.26% [8][14] Business Line Data and Key Metrics Changes - Total loans grew by $150 million or 2.5%, primarily in residential mortgage and home equity portfolios, despite strategic runoff in indirect auto and certain commercial loans [9][15] - Non-interest income for the quarter was $69.1 million, with all categories showing linked quarter growth, particularly in Wealth Management and Commercial Banking fees [11][18] - Non-interest expense on an operating basis was $187.6 million, an increase of $4.8 million linked quarter [19] Market Data and Key Metrics Changes - Deposits declined by $191 million or 2.9%, with seasonal declines in municipal and non-interest bearing balances [15][16] - Non-interest bearing balances accounted for 20% of total deposits at the end of the quarter [15] Company Strategy and Development Direction - The company continues to focus on its Community Banking strategy, aiming to attract and retain valuable customers while reinvesting in communities [6][8] - The M&A strategy remains focused on community banks in the $1 billion to $5 billion range, with a disciplined approach to metrics and strategy [44][45] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the economic and geopolitical environment but sees steady performance in the loan portfolio [12][85] - The company updated its 2025 operating guidance, including an increase in net interest income and a decrease in provision expense [22] Other Important Information - The company repurchased 522,000 shares at a weighted average price of $16.9 during the quarter [21] - The CET1 ratio increased to 11.3%, maintaining a solid capital position [21] Q&A Session Summary Question: Expense guidance for the back half of the year - Management indicated that the expense range for the back half should land below the midpoint due to timing and merit increases in Q2 [30] Question: Fee income guidance and potential headwinds - Management expressed confidence in fee income growth, stating that consistent outperformance could trend towards the top end of the guidance range [33] Question: Status of the loan pipeline and impact of economic uncertainty - The loan pipeline is up, but pull-through rates remain below historical norms due to customer caution [41] Question: M&A appetite post-Republic acquisition - The M&A strategy remains focused on community banks in the $1 billion to $5 billion range, with a disciplined approach [44] Question: Outlook on deposits and NIM - Management noted seasonality in deposits and competition for deposits, indicating a cautious but optimistic outlook [52] Question: Consumer pipelines and seasonality - There is some seasonality in the consumer business, but underlying growth strategies are expected to drive business organically [76] Question: Credit trends and non-performing loans - An uptick in non-performing loans was primarily due to one identified project, with overall credit metrics remaining stable [84]

Financial Performance - Operating net income available to common shareholders reached a record of $1006 million, or $055 per diluted share[9] - GAAP reported net income available to common shareholders was $966 million in 2Q25, compared to $904 million in 1Q25[7] - Return on Average Assets (annualized) increased from 118% in 1Q25 to 125% in 2Q25[7] - The efficiency ratio increased slightly from 567% to 571%[7] Income Statement - Net interest income increased by $3734 thousand from $251187 thousand in 1Q25 to $254921 thousand in 2Q25[10] - Non-interest income before investment securities gains (losses) increased by $1914 thousand from $67234 thousand to $69148 thousand[10] - Non-interest expense increased by $3351 thousand from $189460 thousand to $192811 thousand[10] Net Interest Margin and Cost of Funds - Net Interest Margin (NIM) was 347% in 2Q25, a 4 basis points increase compared to 1Q25[19] - Total cost of deposits decreased by 5 basis points to 198% in 2Q25[19] Loan and Deposit Portfolio - Office loans represent 3% of the total loan portfolio[49] - Multi-Family loans represent 8% of the total loan portfolio[55] - The average deposit account balance is $30099, with approximately 881632 deposit accounts[42] - Net estimated uninsured deposits represent 24% of total deposits[42, 61]

Core Insights - Fulton Financial reported revenue of $328.46 million for the quarter ended June 2025, reflecting a decrease of 3.2% year-over-year, but exceeded the Zacks Consensus Estimate by 1.56% [1] - The earnings per share (EPS) for the quarter was $0.55, an increase from $0.47 in the same quarter last year, resulting in an EPS surprise of 27.91% compared to the consensus estimate of $0.43 [1] Financial Performance Metrics - Efficiency Ratio stood at 57.1%, better than the average estimate of 62% based on two analysts [4] - Net Interest Margin was reported at 3.5%, slightly above the average estimate of 3.4% [4] - Average Balance of Total Interest-Earning Assets was $29.97 billion, significantly higher than the estimated $16.58 billion [4] - Net charge-offs to average loans were 0.2%, lower than the average estimate of 0.3% [4] - Total Non-Interest Income reached $69.15 million, surpassing the estimated $67.38 million [4] - Net Interest Income (FTE) was $259.31 million, exceeding the average estimate of $254.92 million [4] Stock Performance - Fulton Financial's shares have returned +13.9% over the past month, outperforming the Zacks S&P 500 composite's +5% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Fulton Financial (FULT) reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, and showing an increase from $0.47 per share a year ago, resulting in an earnings surprise of +27.91% [1][2] Financial Performance - The company achieved revenues of $328.46 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.56%, although this is a decrease from $339.27 million in the same quarter last year [2] - Over the last four quarters, Fulton Financial has consistently exceeded consensus EPS estimates [2] Stock Performance and Outlook - Fulton Financial shares have increased approximately 1.5% since the beginning of the year, while the S&P 500 has gained 6.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4][6] Earnings Estimate Revisions - The trend for earnings estimate revisions for Fulton Financial was favorable prior to the earnings release, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.44 on revenues of $324.1 million, and for the current fiscal year, it is $1.81 on revenues of $1.29 billion [7] Industry Context - The Banks - Northeast industry, to which Fulton Financial belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Financial Performance - Net income available to common shareholders for Q2 2025 was $96.6 million, or $0.53 per diluted share, an increase of $6.2 million, or $0.04 per diluted share, compared to Q1 2025[2] - Operating net income for Q2 2025 was $100.6 million, or $0.55 per diluted share, an increase of $5.2 million, or $0.03 per diluted share, compared to Q1 2025[2] - The company achieved a record operating net income of $100.6 million in Q2 2025, reflecting the success of its community banking strategy[2] - Net income for Q2 2025 reached $99,198,000, compared to $92,987,000 in Q1 2025 and $63,206,000 in Q2 2024, marking a significant year-over-year increase of 57%[19] - Operating net income available to common shareholders for the three months ended June 30, 2025, was $100,639 thousand, up from $95,454 thousand in the previous quarter, marking an increase of 1.2%[26] - Adjusted net income available to common shareholders for the three months ended June 30, 2025, was $100,729 million, compared to $95,544 million in the previous quarter[27] Income and Expenses - Non-interest income increased by $1.9 million to $69.1 million compared to $67.2 million in the prior quarter[3] - Non-interest expense increased by $3.4 million to $192.8 million compared to $189.5 million in the prior quarter[3] - Total non-interest expense for Q2 2025 was $192,811,000, slightly up from $189,460,000 in Q1 2025, but down from $199,488,000 in Q2 2024[19] - The efficiency ratio improved to 57.1% from 56.7% in the previous quarter, reflecting better operational efficiency[16] Loans and Credit Quality - Net loans increased by $150.0 million, or 2.5% annualized, totaling $24.0 billion as of June 30, 2025[10] - Provision for credit losses was $8.6 million, resulting in an allowance for credit losses of $377.3 million, or 1.57% of total net loans as of June 30, 2025[10] - Annualized net charge-offs for Q2 2025 were 0.20% of total average loans, compared to 0.21% in the prior quarter[10] - The provision for credit losses related to net loans was $9,374 thousand for the three months ended June 30, 2025, down from $13,112 thousand in the previous quarter, a decrease of 28.0%[25] - Non-performing loans to total net loans ratio rose to 0.89% from 0.82% in the prior quarter, indicating a deterioration in asset quality[16] - Total loans charged off amounted to $15,916 thousand for the three months ended June 30, 2025, compared to $20,034 thousand for the previous quarter, representing a decrease of 10.6%[25] Capital and Equity - Common equity tier 1 capital ratio increased to approximately 11.3% compared to 11.1% in the prior quarter[5] - Shareholders' equity increased to $17.20 billion from $16.91 billion in the previous quarter, reflecting a growth of 1.71%[15] - The tangible common equity ratio improved to 8.0% from 7.8% in the previous quarter, indicating a stronger capital position[16] - Tangible common shareholders' equity per share was $13.78 as of June 30, 2025, an increase from $13.46 in the previous quarter, reflecting a growth of 2.4%[26] - Shareholders' equity rose to $3,279,208 thousand in 2025, compared to $2,859,808 thousand in 2024, reflecting a growth of 14.7%[23] Assets and Liabilities - Total assets decreased slightly to $32.04 billion from $32.13 billion in the previous quarter[18] - Total liabilities decreased to $28.71 billion from $28.86 billion in the previous quarter, indicating a reduction in financial obligations[18] - Total deposits decreased to $26.14 billion from $26.33 billion in the previous quarter, reflecting a decline in customer deposits[18] - Total interest-bearing liabilities increased to $22,545,474 thousand in 2025 from $20,275,338 thousand in 2024, a rise of 11.2%[23] Interest Income and Margin - Net interest income for Q2 2025 was $254,921,000, an increase from $251,187,000 in Q1 2025, and $241,720,000 in Q2 2024, reflecting a year-over-year growth of 5.5%[19] - Net interest income for the quarter was $254,921, up from $251,187 in the previous quarter[21] - Net interest income after provision for credit losses was $246,314,000 in Q2 2025, compared to $237,289,000 in Q1 2025, indicating a positive trend in profitability[19] - Net interest margin increased to 3.47% from 3.43% in the prior quarter, suggesting better interest income generation[16] Shareholder Information - Basic net income per share for Q2 2025 was $0.53, up from $0.50 in Q1 2025 and $0.53 in Q2 2024[20] - Cash dividends remained stable at $0.18 per share for both Q2 2025 and Q1 2025, compared to $0.17 in Q2 2024[20] - Weighted average shares outstanding (basic) increased to 182,261,000 in Q2 2025 from 182,179,000 in Q1 2025, reflecting a slight increase in share count[20]