Fulton Financial Corp

Fulton Financial posted a notably strong second quarter of 2025, with operating earnings per diluted share of $0.55 beating the $0.45 consensus estimate by 22.22%, while revenue of $324.07 million edged past expectations of $320.83 million by roughly 1%, even as the top line fell 23.8% from a year earlier. The primary engine behind the beat was a steady expansion in net interest income, which climbed to $254.92 million as the net interest margin widened four basis points to 3.47%, supported by a five-basis-point decline in the total cost of deposits to 1.98%. Provision for credit losses dropped sharply to $8.61 million from $13.90 million in Q1, further lifting the bottom line, though rising non-performing assets, now at 0.67% of total assets, point to some credit normalization worth watching. On the deposit front, outflows of $190.90 million kept the loan-to-deposit ratio elevated, a dynamic that analysts have flagged as a constraint on future loan growth. Looking ahead, Fulton narrowed its 2025 net interest income guidance to $1.00 billion to $1.02 billion, assuming only two Fed rate cuts this year, while lowering its provision outlook to $50 million to $70 million.