Fulton Financial Corporation

What they do

Fulton Financial Corporation is a bank holding company whose principal subsidiary is Fulton Bank, a national commercial bank. It takes deposits and makes loans, generating net interest income, supplemented by non-interest income from fees and other banking services. As of June 30, 2026, it reported $34.56 billion in total assets, $30.74 billion in total liabilities and $3.82 billion in shareholder equity.

Revenue drivers

• Net interest income — The largest earnings component: $284.3 million in the second quarter of 2026, up $22.2 million from the prior quarter, with $17.5 million of the increase attributable to the Blue Foundry transaction. Net interest margin was 3.60%, up two basis points from the prior quarter.
• Non-interest income — Fee and other income reached $79.3 million in the second quarter of 2026, up $9.5 million from $69.8 million in the prior quarter. This compares with reported quarterly revenue of $70.4 million, $70.0 million and $69.8 million in the three preceding quarters.
• Acquired loan portfolios — Loans acquired in the Republic First transaction generated purchase loan mark accretion of $9.9 million in the second quarter of 2026, versus $10.3 million in the prior quarter. The Blue Foundry transaction added loans with a preliminary fair value of approximately $1.6 billion.

Recent performance

Second quarter 2026 net income available to common shareholders was $99.9 million, or $0.52 per diluted share, up $7.7 million from the first quarter of 2026, while operating net income available to common shareholders was $115.9 million, or $0.60 per diluted share. For the six months ended June 30, 2026, net income available to common shareholders was $192.1 million, or $1.02 per diluted share, up $5.0 million and unchanged per diluted share versus the first half of 2025. The provision for credit losses was $4.9 million, leaving an allowance for credit losses on net loans of $382.6 million, or 1.48% of total net loans. Common equity tier 1 capital rose to approximately 12.1% from 11.9% in the prior quarter. Full-year 2025 net income was $391.6 million, or $2.08 per diluted share, on revenue of $276.8 million.

Strategy

Management closed the Blue Foundry Bancorp acquisition on April 1, 2026, and merged Blue Foundry Bank into Fulton Bank on July 11, 2026, citing an expanded footprint for deepening relationships and driving growth. Chairman, CEO and President Curtis J. Myers attributed second quarter results to demand for community banking and execution of strategic priorities. The company repurchased 525,000 common shares during the second quarter of 2026 at an average of $21.19 per share, or $11.1 million, and had repurchased $35.6 million under the 2026 Repurchase Program as of June 30, 2026. The 2026 Repurchase Program authorizes up to $150.0 million of common stock repurchases through January 31, 2027, with up to $25.0 million usable for preferred stock and subordinated notes. Non-GAAP operating figures exclude core deposit intangible amortization, acquisition-related expense, FultonFirst implementation and asset disposals, and debt extinguishment costs.

Risks

• Economic and credit conditions — The 10-K states that worsening economic conditions, recessions, higher prevailing interest rates or high unemployment could weaken loan portfolio quality and require increased provision for credit losses.
• Interest rate and margin pressure — The filing notes that interest rate changes affect the business environment, and second quarter 2026 results included a $10.9 million increase in deposit interest expense and a $4.9 million increase in borrowing costs.
• Acquisition integration — The Blue Foundry transaction added approximately $2.1 billion of assets, $1.5 billion of deposits and $276.0 million of borrowings, with $13.8 million of acquisition-related expense in the second quarter of 2026.
• Non-interest expense growth — Non-interest expense rose $30.7 million to $231.0 million in the second quarter of 2026 from $200.3 million in the prior quarter, with operating non-interest expense up $19.9 million to $210.6 million.

Outlook

Management said the successful integration of Blue Foundry Bank, completed in July 2026, leaves the company positioned to deepen existing relationships and drive growth in the expanded footprint. It pointed to demand for its community banking approach and execution of strategic priorities as sources of ongoing performance. The company also reported its common equity tier 1 capital ratio at approximately 12.1% as of June 30, 2026.