Executive Summary

EPS beat on strong operating leverage; operating diluted EPS was $0.52 vs S&P Global consensus $0.43, while GAAP diluted EPS was $0.49 (efficiency ratio improved to 56.7%, PPNR rose) . Q1 EPS (S&P Primary EPS) beat by $0.09 per share*.
Revenue definition matters: company “total revenue” (Net Interest Income + non-interest income) was $318.4M, but S&P Global tracked revenue at $304.5M vs $314.9M consensus, implying a modest miss on S&P’s basis* . For estimate comparisons, we anchor to S&P Global.
Balance sheet and credit improved: NIM rose 2 bps to 3.43% as total deposit costs fell 11 bps to 2.03%; NPAs declined to 0.62% of assets; CET1 climbed to ~11.0% .
2025 operating guidance maintained; rate path assumption updated (now four 25 bp cuts starting June). Effective tax rate guidance raised to 18–19% (from ~18%), and management flagged potential NII/fee trending to the lower half of ranges given slower growth .

What Went Well and What Went Wrong

What Went Well
- Operating efficiency and profitability improved: “Operating earnings per share of $0.52 … positive operating leverage … efficiency ratio dropped to 56.7% … operating ROA 1.25% … operating ROTCE 15.95%” .
- Funding costs eased and NIM ticked up: NIM 3.43% (+2 bps q/q); total cost of deposits fell 11 bps to 2.03% through “disciplined deposit pricing” .
- Credit and liquidity strengthened: NPAs fell to $199.0M (0.62% of assets), ACL/NPLs rose to 193%, and available liquidity covered net estimated uninsured deposits by 276% .
What Went Wrong
- Loans declined $182M linked qtr as risk actions and strategic choices weighed on balances; loan yields fell 11 bps to 5.86% and NII decreased $2.5M with rate/day-count headwinds .
- Near-term NIM pressure items: ~$195M of sub-debt reset from fixed to SOFR+230 bps, adding “$6+ million” annual interest expense; management expects NIM to be “a little pressured” near term .
- Fee revenues showed mixed prints beneath the headline: day count/transactional softness and lower mortgage spreads offset a $2.4M equity-method income benefit; management guides fee income towards the lower half of the range on market sensitivities (wealth, mortgage) .

Financial Results

Income statement trend (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Net Interest Income ($USD Millions)	$258.009	$253.659	$251.187
Non-Interest Income ($USD Millions)	$59.673	$65.924	$67.232
“Total Revenue” = NII + Non-Interest ($USD Millions)	$317.682	$319.583	$318.419
Provision for Credit Losses ($USD Millions)	$11.929	$16.725	$13.898
GAAP Diluted EPS ($)	$0.33	$0.36	$0.49
Operating Diluted EPS ($)	$0.50	$0.48	$0.52
Net Interest Margin (%)	3.49%	3.41%	3.43%
Efficiency Ratio (%)	59.6%	58.4%	56.7%
Net Charge-offs / Avg Loans (annualized, %)	0.18%	0.22%	0.21%

Year-over-year snapshot

Metric	Q1 2024	Q1 2025
Net Interest Income ($USD Millions)	$206.937	$251.187
Non-Interest Income ($USD Millions)	$57.140	$67.232
GAAP Diluted EPS ($)	$0.36	$0.49
Operating Diluted EPS ($)	$0.40	$0.52
Net Interest Margin (%)	3.32%	3.43%
Efficiency Ratio (%)	63.2%	56.7%
Provision for Credit Losses ($USD Millions)	$10.925	$13.898
Non-Performing Assets / Assets (%)	0.57%	0.62%

Consensus vs Actual (S&P Global basis, Q1 2025)

Metric	Actual	Consensus Mean	Surprise
Primary EPS (Operating EPS)	$0.52*	$0.43*	+$0.09*
Revenue ($USD Millions, S&P-defined)	$304.521*	$314.853*	-$10.331*

Note: Company “total revenue” (NII + non-interest income) was $318.419M; S&P Global’s revenue definition for banks can differ (we anchor estimate comparisons to S&P Global methodology) .

Values retrieved from S&P Global.

Non-interest income detail (linked-quarter)

Non-Interest Income Line ($USD Thousands)	Q3 2024	Q4 2024	Q1 2025
Wealth Management	21,596	22,002	21,785
Commercial Banking (Total)	22,289	22,454	21,329
Consumer Banking (Total)	14,928	14,309	13,068
Mortgage Banking	3,142	3,759	3,138
Other	5,425	6,089	7,914 (incl. +$2.4M equity-method)
Investment Securities Gains (Losses), net	(1)	0	(2)
Total Non-Interest Income	59,673	65,924	67,232

KPIs and balance sheet

KPI	Q4 2024	Q1 2025
Loan Yield (%)	5.97%	5.86%
Total Cost of Deposits (%)	2.14% (implied from cohort)	2.03%
Net Loans (End, $USD Billions)	$24.045	$23.863
Deposits (End, $USD Billions)	$26.129	$26.329
Loan-to-Deposit (L/D) Ratio (%)	~92% (calc)	91% (CFO remark)
CET1 Capital Ratio (%)	10.8%	11.0%
Tangible Common Equity (TCE) Ratio (%)	7.5%	7.8%
ACL / Loans (%)	1.58%	1.59%
ACL / NPLs (%)	172%	193%
Available Liquidity / Net Est. Uninsured Deposits (%)	276%	276%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Non-FTE Net Interest Income	FY 2025	$995–$1,020M	$995–$1,020M	Maintained
Provision for Credit Losses	FY 2025	$60–$80M	$60–$80M	Maintained
Non-Interest Income	FY 2025	$265–$280M	$265–$280M (may trend to lower half)	Maintained (tilt lower half)
Operating Non-Interest Expense	FY 2025	$755–$775M	$755–$775M	Maintained
Effective Tax Rate	FY 2025	~18.0% +/-	18%–19%	Raised
FultonFirst Non-Operating Expense	FY 2025	—	~$14M remaining in 2025	New/clarified
CDI Amortization	FY 2025	—	~$22.5M; 2H25 $5.2M/quarter	Clarified run-rate
Rate Path Assumption	2025	2 cuts (Mar & Jun)	4 cuts starting June	More easing in model
Common Dividend	Q1 2025	$0.17 (Q4)	$0.18 declared 3/18/25	Raised in Q4; maintained in Q1

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3–Q4 2024)	Current Period (Q1 2025)	Trend
NIM & Funding Costs	Q4 NIM 3.41%; cost of funds fell 14 bps	NIM 3.43%; total deposit cost down 11 bps to 2.03%; deposit betas slowing; sub-debt reset adds ~$6M annual expense	Improving core costs; near-term NIM pressure from sub-debt
Loan Growth & Mix	Q4 loans -$131M; strategic balance actions	Loans -$182M; specific actions (commercial construction -$231M, indirect auto -$38M), faster troubled asset resolutions; low-single-digit loan growth expected for year	Cautious H1; modest growth later
Credit Quality	Q4 NPAs 0.69% of assets; NCOs 0.22%	NPAs 0.62%; NCOs 0.21%; ACL/NPLs to 193%; remain cautious on outlook	Gradual improvement; vigilance maintained
Fees & Diversification	Q4 non-interest income improved; M&A-related noise	Equity-method income +$2.4M; fee areas seasonal/transactional; guide to lower half of range (wealth/mortgage sensitivity)	Mixed; market-sensitive
Capital & Buybacks	CET1 10.6% in Q4	CET1 11.0%; $25M capacity to repurchase 2030 sub-notes; repurchased ~30k shares late in Q1	Optionality improving
Macro/Tariffs Focus	—	Monitoring tariff impacts; Ag (~$1B) and manufacturing most sensitive; no material impact yet	Watchlist topic

Management Commentary

CEO framing: “Operating earnings per share of $0.52 … positive operating leverage … efficiency ratio dropped to 56.7% … operating ROA 1.25% … operating ROTCE 15.95% … growing our tangible book value per share, 13.8% on an annualized basis” .
Strategic actions: “$38 million decline in indirect auto … $231 million decline in commercial construction as certain projects we elected not to convert … accelerated resolutions of troubled assets … loan growth expected to be in the low single-digit range for the year” .
CFO on NII/NIM: “NII … $251 million … NIM increased 2 bps to 3.43%. Loan yields declined 11 bps to 5.86% … average cost of total deposits decreased 11 bps to 2.03% … cumulative non-maturity deposit beta 29% and total deposit beta 25%” .
Guidance color: “Confirming operating guidance … updated rate forecast to include four 25 bp cuts in 2025 with the first in June … NII and noninterest income could trend towards the lower half of the respective ranges” .

Q&A Highlights

Loan growth trajectory: Pipelines up y/y; originations consistent; Q1 decline driven by strategic headwinds/risk actions; expect low-single-digit growth for 2025 .
NII rate sensitivity: A 25 bp cut is ~-$1.7M annual NII headwind at current positioning .
Expense outlook: Operating expenses expected $190–195M per quarter for the remaining three quarters (timing effects; midpoint comfortable) .
NIM headwinds: $195M sub-debt refi to SOFR+230 bps adds $6M+ annual interest; deposit betas slowing; margin likely “a little pressured” near term .
Capital return: Priorities are organic growth, corporate initiatives, then buybacks; small buyback (~30k shares) late in Q1; valuation supportive .
Credit reserves: ACL influenced by lower balances, construction migration, lower nonaccruals vs. macro forecast; expect Moody’s scenarios to get incrementally negative near term .
Portfolio sensitivities: Monitoring tariffs—Ag (~$1B) and manufacturing are focal; minimal import/export exposure; some auto dealer exits contributing to loan decline .

Estimates Context

EPS beat: S&P Global Primary EPS actual $0.52 vs $0.43 consensus (+$0.09); seven estimates*.
Revenue (S&P-defined) miss: $304.5M actual vs $314.9M consensus (–$10.3M); six estimates*. Company “total revenue” (NII + non-interest income) was $318.4M, reflecting definition differences .

Values retrieved from S&P Global.

Where estimates may adjust:

Management reaffirmed ranges but guided NII and fee income towards the lower half given slower growth and market sensitivity (wealth, mortgage), and flagged near-term NIM pressure from sub-debt reset and CD repricing .

Key Takeaways for Investors

Profitability momentum is intact (operating EPS beat, better efficiency), aided by deposit cost management; however, near-term NIM faces discrete pressure from the sub-debt reset and CD renewals .
Loan balances likely stabilize before inflecting later in 2025; strategic risk management remains a headwind to reported growth but improves asset quality (NPAs down; ACL/NPLs up) .
Guidance is steady with a modestly higher tax-rate band and a more accommodative rate path; management transparently frames NII/fee bias to lower-half of ranges if growth remains slow .
Capital flexibility is improving (CET1 11.0%); small buybacks occurred and authority added to repurchase sub-notes—offering optionality if organic opportunities remain limited .
Fee income quality is mixed under the surface; equity-method uplift offset seasonal/transactional softness—wealth/mortgage remain macro-sensitive into 2H .
Dividend was maintained at $0.18 (declared March 18); cash return remains consistent while pursuing transformation and integration priorities .
Liquidity and deposit profile are strong (coverage of net uninsured at 276%); stable funding supports risk-managed growth and cushions against macro shocks .

FULTON FINANCIAL CORP (FULT)·Q1 2025 Earnings Summary