Download PDF

1. Company Snapshot

1.a. Company Description

Fulton Financial Corporation operates as a financial holding company that provides consumer and commercial banking products and services.It accepts various checking accounts and savings deposit products, certificates of deposit, and individual retirement accounts.The company also offers secured consumer loans, including home equity loans and lines of credit, automobile loans, personal lines of credit, and checking account overdraft protection; construction and jumbo residential mortgage loans; and commercial lending products comprising commercial real estate, commercial and industrial, and construction loans, as well as equipment lease financing loans.


In addition, it provides letters of credit, cash management services, and traditional deposit products; and wealth management services, including investment management, trust, brokerage, insurance, and investment advisory services.Further, the company owns passive investments, as well as trust preferred securities; and sells various life insurance products.It provides its products and services through traditional financial center banking, as well as through a network of automated teller machines, telephone banking, mobile banking, and online banking.


The company operated branches in Pennsylvania, Maryland, Delaware, New Jersey, and Virginia.Fulton Financial Corporation was incorporated in 1882 and is headquartered in Lancaster, Pennsylvania.

Show Full description

1.b. Last Insights on FULT

Fulton Financial Corporation faced negative drivers, including a cautious stance from brokerages, with a consensus "Hold" rating and an average 12-month price target of $20.90. The company's third-quarter earnings revealed a modest increase in net income, but a proposed sale of Blue Foundry Bancorp to Fulton Financial Corporation raised concerns. Additionally, AE Wealth Management LLC reduced its stake in Fulton Financial Corporation by 17.0% during the second quarter. Despite a quarterly cash dividend declaration, these factors may impact investor sentiment.

1.c. Company Highlights

2. Fulton Financial's Q3 Earnings: A Strong Performance

Fulton Financial Corporation reported robust third-quarter operating results, with operating earnings of $101.3 million or $0.55 per share, surpassing estimates of $0.48. Total revenue increased, driven by growth in net interest income and fee income. The net interest margin expanded 10 basis points to 3.57%, fueled by a stable balance sheet and rising loan yields. The company's efficiency ratio improved to 56.5%, and the operating ROA and ROTCE were 1.29% and 15.79%, respectively. The actual EPS came in at $0.55, beating analyst estimates.

Publication Date: Oct -23

📋 Highlights
  • Strong Operational Performance:: Operating earnings reached $101.3 million ($0.55/share), with efficiency ratio declining to 56.5% and operating ROA/ROTCE at 1.29%/15.79%.
  • Capital Allocation Strategy:: Repurchased 1.65M shares at $18.67/share, with $86M remaining in buyback authorization to enhance shareholder value.
  • Deposit Growth Outpaces Loans:: Deposits rose $194M vs. $29M loan growth, driven by seasonal municipal inflows and targeted campaigns.
  • 2025 Guidance Update:: Raised net interest income to $1.025–1.035B, lowered provision expense to $45–55M, and increased fee income to $270–280M.
  • Balance Sheet Optimization:: Net interest margin climbed 10 bps to 3.57%, with deposit costs down 4 bps QoQ from broker CD payoffs.

Revenue Growth and Margin Expansion

The company's revenue growth was driven by a combination of net interest income and fee income. Net interest income benefited from a 10 basis point expansion in the net interest margin, which reached 3.57%. Fee income, which includes commercial fee income, also grew nicely, with the company reporting a steady performance overall. The non-interest income as a percentage of revenue ended the quarter at 21%.

Capital Management and Share Repurchases

Fulton Financial repurchased 1,650,000 shares during the quarter at a weighted average cost of $18.67 per share and plans to continue using its share repurchase authorization. The company has $86 million remaining on its buyback authorization. The tangible common equity to tangible asset ratio was 8.3%, and CET1 was 11.5%, indicating a healthy capital position.

Outlook and Guidance

The company updated its 2025 operating guidance, increasing net interest income to a range of $1.025 billion to $1.035 billion, lowering provision expense to $45 million to $55 million, and raising the bottom end of fee income to $270 million to $280 million. Analysts estimate next year's revenue growth at 1.8%. The company expects loan growth headwinds to dissipate and revert to longer-term levels of 4-6%.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 0.97, Fulton Financial's valuation appears reasonable. The Dividend Yield stands at 4.08%, providing a relatively attractive return for income investors. Considering the company's strong Q3 performance and updated guidance, the current valuation metrics seem to be fairly priced.

3. NewsRoom

Card image cap

Brokerages Set Fulton Financial Corporation (NASDAQ:FULT) PT at $20.90

Dec -02

Source: defenseworld.net

Card image cap

Meet 33 Ideal "Safer" November Small/MidCap Value DiviBuys Of The S&P600

Nov -26

Source: seekingalpha.com

Card image cap

Fulton Set to Acquire Blue Foundry, Deepens New Jersey Presence

Nov -25

Source: zacks.com

Card image cap

Blue Foundry Corporation Investor Alert By The Former Attorney General Of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Blue Foundry Bancorp - BLFY

Nov -24

Source: businesswire.com

Card image cap

FULTON FINANCIAL CORPORATION AND BLUE FOUNDRY BANCORP COMBINING IN ALL-STOCK MERGER

Nov -24

Source: prnewswire.com

Card image cap

AE Wealth Management LLC Sells 2,968 Shares of Fulton Financial Corporation $FULT

Nov -17

Source: defenseworld.net

Card image cap

Fulton Financial Corporation (FULT) Q3 2025 Earnings Call Transcript

Oct -22

Source: seekingalpha.com

Card image cap

Fulton Financial (FULT) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates

Oct -21

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.55%)

6. Segments

Banking and Related Activities

Expected Growth: 4.55%

Fulton Financial Corporation's 4.55% growth in Banking and Related Activities is driven by increasing loan demand, expansion of commercial banking services, and strategic acquisitions. Additionally, improved credit quality, cost savings initiatives, and a favorable interest rate environment contribute to the growth. Furthermore, investments in digital banking platforms and enhanced customer experience also support the segment's growth.

7. Detailed Products

Consumer Banking

Fulton Financial Corporation offers a range of consumer banking products and services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

The company provides commercial banking services, including cash management, commercial lending, and treasury management solutions, to businesses of all sizes.

Wealth Management

Fulton Financial Corporation offers wealth management services, including investment management, trust services, and retirement planning, to individuals, families, and institutions.

Mortgage Banking

The company provides mortgage banking services, including residential mortgage lending, to individuals and families.

Insurance Services

Fulton Financial Corporation offers insurance services, including property and casualty insurance, life insurance, and employee benefits, to individuals and businesses.

8. Fulton Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Fulton Financial Corporation operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand reputation and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Fulton Financial Corporation's customers have limited bargaining power due to the company's diversified customer base and lack of concentration in a single customer segment.

Bargaining Power Of Suppliers

Fulton Financial Corporation relies on a diverse range of suppliers, reducing the bargaining power of individual suppliers. However, the company's dependence on a few key suppliers for critical services may increase their bargaining power.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and capital requirements, making it difficult for new entrants to compete with established players like Fulton Financial Corporation.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Fulton Financial Corporation faces intense rivalry from other regional banks and larger national banks.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.61%
Debt Cost 6.02%
Equity Weight 52.39%
Equity Cost 7.87%
WACC 6.99%
Leverage 90.86%

11. Quality Control: Fulton Financial Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Bank OZK

A-Score: 7.5/10

Value: 7.7

Growth: 8.3

Quality: 8.0

Yield: 7.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
IBOC

A-Score: 7.0/10

Value: 6.2

Growth: 7.1

Quality: 8.3

Yield: 5.0

Momentum: 6.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Popular

A-Score: 6.9/10

Value: 6.3

Growth: 5.9

Quality: 7.0

Yield: 6.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
First Bank

A-Score: 6.9/10

Value: 6.5

Growth: 6.6

Quality: 8.0

Yield: 7.0

Momentum: 5.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Cathay Bank

A-Score: 6.6/10

Value: 6.3

Growth: 6.1

Quality: 7.4

Yield: 6.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Fulton Financial

A-Score: 6.5/10

Value: 6.1

Growth: 6.3

Quality: 6.0

Yield: 8.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.0$

Current Price

19$

Potential

-0.00%

Expected Cash-Flows