Fulton Completes Blue Foundry Integration

The Tip Desk · October 27, 2026 · 3 min read

Net interest income rose to $290.0 million as deposit costs climbed and the net interest margin slipped 2 bps to 3.58%.

Fulton Financial Corporation (FULT), the community bank based in Lancaster, Pennsylvania, reported net interest income of $290.0 million for the three months ended September 30, 2026, up $5.8 million from the second quarter, as it completed the Blue Foundry Bank integration.

The increase in net interest income was driven by a $6.1 million rise in interest income on net loans, a $4.3 million increase on investment securities, a $2.3 million increase on other interest-earning assets, 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. Net interest margin was 3.58%, a two-basis-point decline from 3.60% in the second quarter, reversing the two-basis-point expansion recorded from the first quarter.

Average net loans were $25.97 billion, compared with $25.88 billion in the prior quarter. Average deposits were $28.77 billion, versus $28.01 billion. Ending net loans increased $43.6 million to $26.0 billion from $25.9 billion at June 30. The company said the increase reflected a $107.0 million rise in consumer loans, including $81.1 million in residential mortgages and $19.9 million in home equity, partially offset by a $63.3 million decline in commercial loans, including $66.4 million in commercial construction.

Deposits totaled $28.8 billion, up $571.0 million from $28.3 billion at June 30. Savings deposits rose $601.0 million, interest-bearing demand deposits $324.1 million, and time deposits $120.3 million, partially offset by a $428.5 million drop in brokered deposits and a $45.8 million decline in noninterest-bearing demand deposits. Fulton attributed the increase to solid commercial deposit growth and seasonal trends in the municipal deposit portfolio.

Chairman, CEO and President Curtis J. Myers said the quarter produced record financial results while the company completed the Blue Foundry Bank integration and delivered growth in the customer base and customer funding. Blue Foundry Bank merged into Fulton Bank on July 11, 2026.

Non-interest income decreased $2.1 million to $77.2 million from $79.3 million, primarily because the prior quarter included $6.9 million of income from an equity-method investment that was sold. Wealth management revenues increased $2.1 million. Non-interest expense decreased $12.4 million to $218.5 million, mainly a $12.1 million drop in acquisition-related expenses. Operating non-interest expense increased $0.6 million to $211.2 million. The efficiency ratio improved to 56.8% from 57.3%.

The provision for credit losses was $4.1 million, down from $4.9 million. Annualized net charge-offs were 0.14% of average loans, compared with 0.34%. The allowance for credit losses attributable to net loans was $375.6 million, or 1.45% of total net loans, down from $382.6 million, or 1.48%. Non-performing assets were $179.4 million, or 0.52% of total assets, compared with $187.1 million, or 0.54%.

Net income available to common shareholders was $114.1 million, or $0.59 a share, up $14.2 million, or $0.07 a share, from the second quarter. Operating net income available to common shareholders was $119.8 million, or $0.62 a share. Return on average common shareholders’ equity was 12.52%, versus 11.14%. Operating return on average tangible common equity was 15.94%.

The common equity Tier 1 capital ratio was 12.2%, unchanged from June 30 after rising from 11.9% at March 31. During the third quarter the company repurchased 2,325,000 shares for $56.1 million, or $24.14 a share, under the 2026 Repurchase Program, versus 525,000 shares for $11.1 million in the second quarter. As of September 30 it had repurchased 4,062,650 shares for $91.8 million under that program.