00:00 Speaker A

I also want to ask about what’s going on with economic data and the Federal Reserve, guys. Um, Ed, what are you hearing there in D.C.? Right? There is now some reporting out there that Kevin Hassett is kind of the front-runner to potentially take Jay Powell’s place at the Federal Reserve. What are you hearing and what’s the kind of vibe in Washington around this decision?

00:43 Ed

So, Julie, the way I’d view this is that President Trump always loves competition. You know, he came to some of his most recent national prominence by having the Apprentice show. And so, my expectation is that President Trump is going to keep multiple people in the running. Kevin Hassett certainly is in there. Kevin Warsh is in there. I’d put Christopher Waller, who’s already on the Fed board, as well as Treasury Secretary Bessant. I’m watching to see if there’s an opening on the Fed. If a governor steps down, like Michael Barr, now that he’s no longer vice chair for supervision, does one of these individuals get onto the board? I’m also watching for Waller as there are rate decisions here in July and September. Is there going to be a dissent? You generally don’t see dissents among Fed governors, but as you’re auditioning for that role, showing that you would be much more dovish is something that President Trump is going to be looking for and could move him up the list of potential Fed chairs come May of next year.

02:26 Speaker A

Yeah, I think the Apprentice Federal Reserve edition is something that no one asked for, uh, guys. I don’t know, Dory, like, in terms of market reaction to all of this, um, you know, we’ve seen rates kind of remain range-bound here as we get numbers like CPI yesterday and PPI today. But do you think at some point that this competition is going to start to really come to bear in the bond market?

03:25 Dory

Uh, yeah, I think we have a showdown coming. Uh, most people in the marketplace want to preserve the independence of the Fed, and when I say that, I mean that both ways, not just from Trump’s standpoint, but from the Fed’s standpoint. I’ve always said the Fed is, in my mind, Powell being a little political in some of his rate cuts early last year. Having said that, the market has always anticipated for the last couple of years anyway, uh, more rate cuts than actually should have happened or did happen. And I think we’re falling into that trap, and so is Trump as well. I’m kind of a wait-and-see kind of guy right now. I do think the next Fed chair is going to be one of those type of interviews, hey, I’m Donald Trump and I believe this, and if you believe this, I’d like to have you as Fed chair. That points to Hassett being the, uh, being, being there. And, uh, I think that’s going to get some criticism from the market. I think we need that independence. We need good independent valuation. Uh, and, and, you know, I think cutting too soon, soon could be, uh, extremely dangerous when we all know that our deficit is out of control, our debt is out of control, and we don’t want to become a Venezuela.

Regional banking company Fulton Financial (NASDAQ:FULT) reported Q2 CY2025 results topping the market’s revenue expectations , but sales fell by 1.9% year on year to $328.4 million. Its GAAP profit of $0.53 per share was 24.7% above analysts’ consensus estimates.

Is now the time to buy Fulton Financial? Find out in our full research report.

• Net Interest Income: $254.9 million vs analyst estimates of $255.1 million (5.5% year-on-year growth, in line)

• Net Interest Margin: 3.5% vs analyst estimates of 3.4% (6.2 basis point beat)

• Revenue: $328.4 million vs analyst estimates of $318 million (1.9% year-on-year decline, 3.3% beat)

• Efficiency Ratio: 57.1% vs analyst estimates of 61% (3.9 percentage point beat)

• EPS (GAAP): $0.53 vs analyst estimates of $0.43 (24.7% beat)

• Market Capitalization: $3.56 billion

“I’m proud that our team has delivered a new company record, with operating net income of $100.6 million, or $0.55 per diluted share, this past quarter,” said Curt Myers, Chairman and CEO of Fulton.

Tracing its roots back to 1882 in the heart of Pennsylvania, Fulton Financial (NASDAQ:FULT) is a financial holding company that provides banking, lending, and wealth management services to consumers and businesses across five Mid-Atlantic states.

In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees.

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Over the last five years, Fulton Financial grew its revenue at a solid 8.4% compounded annual growth rate. Its growth beat the average bank company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Fulton Financial’s annualized revenue growth of 8.3% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong.

Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Fulton Financial’s revenue fell by 1.9% year on year to $328.4 million but beat Wall Street’s estimates by 3.3%.

Net interest income made up 76.1% of the company’s total revenue during the last five years, meaning lending operations are Fulton Financial’s largest source of revenue.

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Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.

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Fulton Financial’s net interest income has grown at a 10.1% annualized rate over the last five years, a step above the broader bank industry and faster than its total revenue.

When analyzing Fulton Financial’s net interest income over the last two years, we can see that growth decelerated to 8.2% annually.

In Q2, Fulton Financial produced $254.9 million of net interest income, up 5.5% year on year and in line with Wall Street Consensus estimates. Net interest margin was 3.5%, beating sell-side expectations by 1.8%.

Looking ahead, sell-side analysts expect net interest income to grow 1.9% over the next 12 months, a deceleration versus the last two years.

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We were impressed by how Fulton Financial blew past analysts’ revenue, net interest margin, efficiency ratio, and EPS expectations this quarter. Zooming out, we think this was a solid print. The stock remained flat at $19.11 immediately after reporting.

Sure, Fulton Financial had a solid quarter, but if we look at the bigger picture, is this stock a buy? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.