Fulton Financial Corporation

Fulton reported second-quarter net income available to common shareholders of $99.9 million, or $0.52 per diluted share, and operating earnings of $115.9 million, or $0.60 per diluted share, up from $0.55 in Q1. Net interest income was $284.3 million, up $22.2 million, or about 8% linked quarter, and net interest margin was 3.6%, up 2 bps sequentially and 13 bps from the prior-year period. Ending loans were $25.9 billion, up $1.7 billion from March 31, and deposits were $28.3 billion, up $1.5 billion; operating non-interest income was $79.3 million and total non-interest expense was $231 million, with operating non-interest expense at $210.6 million. Credit metrics remained solid: provision expense was $4.9 million, ACL on loans was $382.6 million or 1.48% of total loans, and annualized net charge-offs were 0.34% of average loans. For 2026, management narrowed net interest income to $1.12 billion-$1.135 billion, lowered loan growth to low single digits, reduced provision guidance to $40 million-$60 million, raised the low end of non-interest income to $290 million, and tightened operating expense guidance to $810 million-$830 million; the tax range was unchanged.

Curt Myers described the quarter as a strong one, emphasizing record operating earnings, solid growth, favorable credit performance, and a stronger capital position. He repeatedly pointed to the Blue Foundry acquisition as a strategic step that expands Fulton in Northern New Jersey and creates opportunities to deepen relationships, broaden products, and support long-term growth. His tone was confident and constructive, with an emphasis on disciplined execution and capturing integration and franchise benefits in the second half of the year.

Rick Kraemer focused on the mechanics behind the quarter: NII increased to $284.3 million, helped largely by about $17.5 million from Blue Foundry and accretion from acquired loans, while NIM reached 3.6%. He noted operating expense of $210.6 million excluding acquisition-related items, intangible amortization, and debt extinguishment costs, and said Blue Foundry-related standalone costs were $10.5 million in the quarter, with cost saves expected to improve materially by year end. Capital was a highlight, with CET1 at about 12.1%, tangible common equity at 8.8%, $300 million of subordinated notes issued, $195 million redeemed, and $35.6 million of repurchases year to date under the 2026 authorization.

Analysts pressed on the lowered loan-growth guide, deposit pricing, Blue Foundry-related balance sheet drag, credit quality, buybacks, and the path of margins. Management said the loan-growth cut mainly reflects first-half results, seasonal patterns, and disciplined pricing, while Blue Foundry integration effects should be immaterial in the back half. On funding, they said deposit competition remains active and costs likely stay on a similar trend, but they also see loan repricing and securities roll-down as tailwinds that could keep the margin stable to slightly higher near term.