Fulton Financial Q4 Operating EPS $0.55 and 3.59% NIM; $150M Buyback Approved
Fulton delivered Q4 operating net income of $99.4 million, or $0.55 per diluted share, on a 3.59% net interest margin after a 13 bp funding cost reduction. The bank repurchased 1.08 million shares for $19.9 million, raised its CET1 ratio to 11.8%, and grew loans 0.4% quarter-over-quarter to $24.1 billion.
1. Quarterly Earnings and Year-Over-Year Comparison
For the fourth quarter of 2025, Fulton Financial reported net income available to common shareholders of $96.4 million, or $0.53 per diluted share, compared with $91.2 million, or $0.48 per diluted share, in the year-ago quarter. On an operating basis, earnings were $99.4 million, or $0.55 per diluted share, down from $101.3 million, or $0.56 per diluted share, in Q3 2025. Full-year net income rose to $381.4 million, or $2.08 per diluted share, up from $278.5 million, or $1.57 per diluted share, in 2024. Operating net income for 2025 climbed to $396.8 million, or $2.16 per diluted share, reflecting a 17% increase in operating diluted EPS year-over-year.
2. Net Interest Margin and Non-Interest Income
Net interest income for the quarter totaled $266.0 million, a $1.8 million increase sequentially. The company reported a net interest margin of 3.59%, supported by a 13-basis-point reduction in funding costs. Non-interest income held steady at $70.0 million, down just $0.4 million from Q3, driven by modest declines in equity-method investment income and loan sale gains, which were offset by increases in wealth management fees (+$1.2 million), commercial customer derivative fees (+$0.9 million), and SBA income (+$0.6 million).
3. Expense Trends and Credit Quality
Non-interest expense rose by $16.4 million to $213.0 million versus Q3, largely due to a $10.4 million increase in salaries and employee benefits—including $7.5 million in incentive compensation—and higher occupancy and data-processing costs. The provision for credit losses was $2.9 million, resulting in an allowance for credit losses of $364.5 million, or 1.51% of net loans. Non-performing assets declined to $185.2 million, or 0.58% of total assets, while annualized net charge-offs increased slightly to 0.24% of average loans.
4. Balance Sheet Growth and Capital Initiatives
Total net loans grew to $24.1 billion, up $103.4 million sequentially, with consumer loans rising by $73.4 million and commercial loans by $30.0 million. Deposits increased by $256.9 million to $26.6 billion, driven by brokered deposits (+$145.4 million), demand deposits (+$119.9 million) and savings (+$95.2 million). Common Equity Tier 1 capital ratio improved to approximately 11.8% from 11.6%. During Q4, the company repurchased 1,082,678 shares at a cost of $19.9 million and deployed $59.0 million under its 2025 repurchase program. The board has authorized up to $150 million for the 2026 repurchase program.