Fulton Financial Corporation Announces Pricing of Subordinated Notes Offering

May 2, 2026 - 02:06

Fulton Financial Corporation, the parent company of Fulton Bank, has announced the pricing for its latest public offering of subordinated notes. The Lancaster, Pennsylvania-based financial holding company will issue $300 million in notes, a move aimed at strengthening its capital position.

The notes, which carry a fixed-to-floating rate structure, were priced at par. They will initially pay interest at a fixed annual rate of 6.375% for the first ten years. After that period, the rate will reset quarterly based on a spread over the then-prevailing three-month Secured Overnight Financing Rate, or SOFR.

Proceeds from the sale are intended for general corporate purposes. These include potential investments in the company's banking subsidiary, possible acquisitions, and other standard business activities. The offering is expected to close later this month, subject to customary conditions.

Fulton Financial operates community banks across Pennsylvania, Maryland, Delaware, New Jersey, and Virginia. The company stated that the subordinated notes qualify as Tier 2 capital under regulatory guidelines, which helps bolster its overall capital ratios. This type of debt is junior to senior obligations but ranks ahead of common equity in a liquidation scenario.

The joint book-running managers for the offering include several major financial institutions. The notes are being sold under an effective shelf registration statement filed with the Securities and Exchange Commission.