Fulton Financial Corporation Announces Third Quarter 2026 Results

Fulton delivered record Q3 profits, strong loan and deposit growth, and improved credit quality.

What the company is saying

Fulton Financial Corporation is highlighting record financial results for Q3 2026, with net income available to common shareholders of $114.1 million ($0.59 per diluted share) and operating net income of $119.8 million ($0.62 per diluted share). The company emphasizes sequential and year-over-year growth in both GAAP and operating earnings, pointing to a $14.2 million quarterly and $21.2 million year-to-date increase in net income. Management, led by Chairman, CEO, and President Curtis J. Myers, frames the results as a product of successful integration of Blue Foundry Bank, robust customer and funding growth, and effective execution of strategic priorities. The announcement details drivers of results, including a solid net interest margin of 3.58%, cost discipline with a $12.4 million reduction in non-interest expense, and a $2.1 million decrease in non-interest income primarily due to the absence of a one-time $6.9 million equity method investment gain from the prior quarter. The company also spotlights improved credit quality, with lower non-performing assets and net charge-offs, and a strong capital position with a 12.2% Common Equity Tier 1 ratio. Shareholder returns are underscored by the repurchase of 2,325,000 shares in Q3 for $56.1 million under the 2026 Repurchase Program.

What the data suggests

The disclosed figures show clear operational and financial momentum. Net income and EPS rose both quarter-over-quarter and year-over-year, with operating net income for the nine months reaching $335.3 million ($1.77 per share), up $37.9 million from the prior year. Net interest income increased by $5.8 million to $290.0 million, driven by higher interest income on loans ($6.1 million), investment securities ($4.3 million), and other assets ($2.3 million), partially offset by a $9.0 million increase in deposit interest expense. Non-interest income fell by $2.1 million to $77.2 million, mainly due to the absence of a $6.9 million gain from an equity investment sold last quarter. Non-interest expense dropped $12.4 million to $218.5 million, reflecting lower acquisition-related costs, while operating non-interest expense was stable. Credit quality improved: provision for credit losses was $4.1 million, allowance for credit losses declined to $375.6 million (1.45% of loans), non-performing assets fell to $179.4 million (0.52% of assets), and annualized net charge-offs dropped to 0.14% of loans. Loans grew by $43.6 million to $26.0 billion, with consumer loans up $107.0 million and commercial loans down $63.3 million. Deposits increased by $571.0 million to $28.8 billion, with growth in savings, interest-bearing demand, and time deposits. The company repurchased 2,325,000 shares in Q3 at an average price of $24.14, totaling $56.1 million, and has bought back 4,062,650 shares year-to-date for $91.8 million. All claims are directly substantiated by the disclosed numbers.

Analysis

The announcement is a standard quarterly financial results release, with all key claims directly supported by disclosed numerical data. There are no forward-looking projections or aspirational statements; all results (net income, EPS, operating profit, margin, credit quality, share repurchases) are realised and quantified for the reported period. The tone is positive, but the language is proportionate to the actual improvements in profitability, balance sheet, and credit quality. No exaggerated or unsupported claims are present, and the CEO's reference to 'record financial results' is substantiated by the disclosed figures. There is no evidence of narrative inflation or overstatement relative to the underlying data.

Risk flags

• ●Rising deposit interest expense, which increased by $9.0 million in the quarter, could pressure net interest margins if not offset by higher loan yields or other income sources.
• ●Loan growth was concentrated in consumer lending, while commercial loans declined by $63.3 million, suggesting potential sectoral risk or limited commercial demand.
• ●Non-interest income remains sensitive to one-time items, as shown by the $6.9 million gain from an equity investment sale in the prior quarter, which if not replaced could create volatility in future quarters.
• ●While credit quality improved this quarter, with lower non-performing assets and net charge-offs, any economic downturn or credit cycle reversal could quickly erode these gains, especially with a $375.6 million allowance for credit losses representing 1.45% of loans.
• ●The company is actively deploying capital through share repurchases ($91.8 million year-to-date), which, while accretive to EPS, reduces balance sheet flexibility if market conditions deteriorate.

Bottom line

Fulton's Q3 2026 results are robust, with record net income, rising operating profit, and improved credit quality, all supported by detailed and transparent disclosures. The company is executing on integration of recent acquisitions and returning capital to shareholders through an active buyback program, with $56.1 million spent in Q3 alone. Growth in deposits and consumer loans signals healthy customer demand, though the decline in commercial loans and rising deposit costs warrant monitoring. Credit metrics are strong for now, but the allowance for credit losses and non-performing asset trends should be watched for early signs of stress. The narrative is credible and fully backed by the numbers, with no evidence of overstatement or unsupported claims. The most important takeaway is that Fulton is delivering on profitability and capital return, but future quarters will test the sustainability of margin and credit quality improvements.

Announcement summary

(NASDAQ:FULT) Fulton Financial Corporation reported net income available to common shareholders of $114.1 million, or $0.59 per diluted share, for the third quarter of 2026, representing an increase of $14.2 million, or $0.07 per diluted share, compared to the second quarter of 2026. Operating net income available to common shareholders for the three months ended September 30, 2026 was $119.8 million, or $0.62 per diluted share, an increase of $3.9 million, or $0.02 per diluted share, over the prior quarter. For the nine months ended September 30, 2026, net income available to common shareholders was $306.1 million, or $1.62 per diluted share, up $21.2 million, or $0.07 per diluted share, from the same period in 2025. Operating net income for the nine months ended September 30, 2026 was $335.3 million, or $1.77 per diluted share, an increase of $37.9 million, or $0.15 per diluted share, compared to the nine months ended September 30, 2025. Curtis J. Myers, Chairman, CEO and President, stated that the company achieved record financial results, completed the Blue Foundry Bank integration, and delivered growth in customer base and funding. Net interest margin for the third quarter was 3.58%, a two basis point decrease from the prior quarter. Non-interest income decreased $2.1 million to $77.2 million, primarily due to $6.9 million of income from an equity method investment sold in the prior quarter. Non-interest expense decreased $12.4 million to $218.5 million, while operating non-interest expense increased $0.6 million to $211.2 million. Provision for credit losses was $4.1 million, resulting in an allowance for credit losses of $375.6 million, or 1.45% of total net loans as of September 30, 2026. The Common equity Tier 1 capital ratio was 12.2% as of September 30, 2026. During the third quarter, 2,325,000 shares were repurchased at a cost of $56.1 million, or an average of $24.14 per share, under the 2026 Repurchase Program. As of September 30, 2026, a total of 4,062,650 shares had been repurchased at a cost of $91.8 million, or an average of $22.58 per share. Net interest income increased $5.8 million to $290.0 million, driven by increases in interest income on net loans ($6.1 million), investment securities ($4.3 million), and other interest-earning assets ($2.3 million), and a $2.1 million decrease in interest expense on borrowings and other interest-bearing liabilities, partially offset by a $9.0 million increase in interest expense on deposits. Purchase loan mark accretion from loans acquired in the Republic Transaction was $8.3 million in the third quarter, compared to $9.9 million in the prior quarter. Purchase loan mark accretion from loans acquired in the Blue Foundry Bancorp Transaction was $4.6 million in the third quarter, compared to $5.2 million in the prior quarter. The decrease in interest expense on borrowings and other interest-bearing liabilities was partially due to $2.4 million of interest expense recognized in the second quarter from the Corporation's $195.0 million aggregate principal amount of outstanding 3.250% Fixed-to-Floating Rate Subordinated Notes due 2030 that were redeemed on June 15, 2026. Wealth management revenues increased by $2.1 million compared to the prior quarter. Salaries and employee benefits expense increased $5.6 million, mainly due to a $3.9 million increase in incentive compensation, a $0.8 million increase in base salary from one additional calendar day in the quarter, and a $0.8 million increase in recruiting expenses. Other non-interest expense for the second quarter included a $2.1 million charge related to combining two employee pension plans and $0.8 million of debt extinguishment costs. Total net loans increased $43.6 million to $26.0 billion, due to a $107.0 million increase in consumer loans, partially offset by a $63.3 million decrease in commercial loans. Deposits totaled $28.8 billion, a $571.0 million increase from June 30, 2026, driven by increases in savings, interest-bearing demand, and time deposits, partially offset by decreases in brokered and noninterest-bearing demand deposits. The provision for credit losses totaled $4.1 million in the third quarter, compared to $4.9 million in the second quarter. Allowance for credit losses attributable to net loans was $375.6 million, or 1.45% of total net loans, compared to $382.6 million, or 1.48%, as of June 30, 2026. Non-performing assets were $179.4 million, or 0.52% of total assets, as of September 30, 2026, compared to $187.1 million, or 0.54%, as of June 30, 2026. Annualized net charge-offs for the third quarter were 0.14% of total average loans, compared to 0.34% in the prior quarter. The 2026 Repurchase Program authorizes up to $150 million in repurchases, with up to $25 million available for preferred stock and subordinated notes, commencing January 1, 2026 and expiring January 31, 2027. On April 26, 2024, Fulton Bank acquired substantially all assets and assumed substantially all deposits and certain liabilities of Republic First Bank from the FDIC. On April 1, 2026, the Corporation completed the acquisition of Blue Foundry Bancorp, and on July 11, 2026, Blue Foundry Bank merged with Fulton Bank.

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