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Investing.com - DA Davidson has reiterated its Neutral rating and $17.00 price target on Fulton Financial (NASDAQ:FULT), a regional bank with a market capitalization of $3.38 billion and P/E ratio of 10.85, following the bank’s second-quarter 2025 results.
The bank delivered strong performance in Q2 with unexpected net interest margin expansion of 4 basis points quarter-over-quarter, alongside improved fees and operational expenses that contributed to a pre-provision net revenue beat. According to InvestingPro, Fulton Financial has maintained dividend payments for 44 consecutive years, currently offering a 3.79% yield.
Fulton Financial reported renewed loan growth of 2.5% while deposits declined by 2.9%, and loan loss provisions fell by 38% compared to the previous quarter.
DA Davidson noted that Fulton Financial shares have underperformed the KRX index year-to-date by 0.5%, but are up 1.5% prior to the earnings announcement, suggesting potential for a positive market reaction to the solid quarterly results.
The bank has raised its 2025 outlook by lowering its operational expense and loan loss provision ranges, while maintaining its net interest income guidance despite the net interest margin beat and an adjusted forecast now incorporating two Federal Reserve rate cuts in the second half of 2025, down from four previously anticipated cuts.
In other recent news, Fulton Financial Corporation reported impressive second-quarter results, with operating earnings reaching $0.55 per diluted share, significantly surpassing analyst expectations of $0.43. The company’s revenue for the quarter was $324.07 million, exceeding the consensus estimate of $321.98 million. Fulton Financial achieved a record operating net income of $100.6 million, marking an increase of $5.2 million from the first quarter of 2025. The net interest margin improved slightly to 3.47%, up from 3.43% in the previous quarter, while the total cost of funds decreased by two basis points. Additionally, the bank’s net loans increased by $150 million, or 2.5% annualized, reaching $24 billion. The common equity tier 1 capital ratio also saw an improvement, rising to 11.3% from 11.1% in the prior quarter. Non-interest income rose by $1.9 million to $69.1 million, driven by growth in mortgage banking, merchant and card fees, and wealth management revenues. Despite these strong financial results, non-performing assets increased to $215.6 million, or 0.67% of total assets, compared to 0.62% in the first quarter.
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