Fulton Financial Corporation Reports Strong Q1 2025 Performance with $90.4M Net Income

Fulton Financial Corporation reported a significant increase in financial performance for the first quarter of 2025, with net income available to common shareholders rising to $90.4 million, up from $59.4 million in the same period last year. This translates to a diluted earnings per share of $0.49, compared to $0.36 in the prior year. The corporation's net interest income also saw a notable increase, reaching $251.2 million, a $44.3 million rise from $206.9 million in the first quarter of 2024. The net interest margin improved to 3.43%, an increase of 11 basis points year-over-year.

The corporation's total assets as of March 31, 2025, stood at $32.1 billion, a slight increase from $32.07 billion at the end of 2024. Total deposits increased by $199.5 million, or 0.8%, primarily due to a rise in savings and money market deposits. However, net loans decreased by $182.3 million, or 0.8%, largely due to a decline in construction loans and commercial and industrial loans. The allowance for credit losses increased to $379.7 million, representing 1.59% of total net loans, reflecting a provision for credit losses of $13.9 million during the quarter.

Strategically, Fulton Financial completed the acquisition of Republic First Bank, enhancing its presence in the Philadelphia and New Jersey markets. This transaction involved acquiring approximately $4.8 billion in assets and assuming $5.6 billion in liabilities, with the corporation receiving $0.8 billion in cash from the FDIC. The integration of Republic First Bank is expected to contribute positively to the corporation's growth and market share in the region.

Operationally, Fulton Financial reported an increase in non-interest income to $67.2 million, up from $57.1 million in the previous year, driven by growth in wealth management and commercial banking services. The corporation's efficiency ratio improved to 56.7%, down from 63.2% a year earlier, indicating better cost management. The total number of employees increased to support the expanded operations following the acquisition, although specific headcount figures were not disclosed.

Looking ahead, Fulton Financial remains optimistic about its growth trajectory, bolstered by the recent acquisition and a strong capital position. The corporation's capital ratios continue to meet regulatory requirements, and it plans to utilize its $125 million share repurchase program to enhance shareholder value. Management anticipates that ongoing strategic initiatives and market conditions will support continued financial performance improvement throughout 2025.