Tuesday, multi-bank holding company Fulton Financial Corp. (FULT) reported a decline in net income for the third quarter on higher provisions for loan losses and lower interest income compared with last year. Net income per share for the quarter, however, beat Wall Street expectations by 3 cents.
The Lancaster, Pennsylvania-based company reported a 37.1% decrease in third quarter net income available to common shareholders to $18.3 million from $29.08 million reported in the prior-year period. On a per share basis, net income dropped to $0.10 from $0.17 in the the same period last year.
On average, twelve analysts polled by Thomson Reuters expected the company to earn $0.07 per share on revenues of $175.39 million in the third quarter. Analysts' estimates typically exclude one-time items.
The company's net interest income declined 0.9% year-on-year to $132.80 million from $134.02 million. Net interest margin was lower at 3.55% for the third quarter compared with 3.77% for the same period last year.
While the company earned 7.5% lower at $197.86 million from interests in the third quarter compared with $213.81 million last year, interest expenses also declined 18.5% to $65.06 million from $79.79 million in the prior-year quarter.
The provision for loan losses increased $18.3 million or 68.5% for the third quarter to $45 million from $26.7 million in the same quarter last year. However, on a sequential basis, the provision for loan losses reflected a 10% decrease.
Scott Smith Jr, chairman and chief executive officer said "While the past year has been extremely challenging for us, the quarter just completed showed slowing in the rate of credit deterioration within our loan portfolio and, as a result, we were able to decrease the provision from the second quarter"
Non-interest income increased 2.3% in the third quarter to $41.23 million from $40.32 million,helped by a $0.51 million increase in gains on sales of mortgage loans, offset by an $0.86 million decrease in service charges on deposit accounts.
Non-interest expenses also increased 0.5% year-on-year to $99.81 million from $99.36 million reported last year, primarily due to $4.1 million increase in Federal Deposit Insurance Corporation or FDIC insurance expense, partially offset by a $3.1 million decrease in operating risk loss.
While total loans increased $144.7 million or 1.2% to $12.0 billion at September 30, 2009, compared with $11.8 billion at the prior-year, total deposits also increased $2.1 billion or 21.3% to $12.0 billion at September 30, 2009 compared with $9.9 billion last year.
Non-performing assets were $300.9 million or 1.82% of total assets at September 30, 2009, compared to $186.4 million or 1.15% at the same date, year-ago. Annualized net charge-offs for the quarter were 0.81% of average total loans, compared to 0.38% for last-year's quarter. The increase in charge-offs was primarily in construction loans and commercial loans.
For the nine months ended September 30, 2009, net income available to common shareholders decreased 64.2% year-on-year to $34.42 million. On a a per share basis, net income declined to 20 cents from 55 cents reported last year. Net interest income declined 1.8%, while provision for loan losses surged 165.4% year-on-year for the nine-month period.
FULT finished Tuesday's regular trade at $7.25 up by one cent, on the Nasdaq.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.