Fulton Financial Q1 Profit Declines On Higher Loan Loss Provision - Update

Tuesday, Fulton Financial Corp. (FULT) reported that its first quarter profit declined from the corresponding quarter a year ago, hurt by a 345.6% rise in provision for loan losses.

The Lancaster, Pennsylvania-based reported net income for the first quarter of $13.09 million, down from $41.49 million in the first quarter of 2008.

Net income available to common shareholders for the first quarter fell to $805 million or $0.05 per share from $41.49 million or $0.24 per share in the year-ago quarter.

On average, analysts polled by Thomson Reuters expected the company to earn $0.08 per share for the quarter. Analysts' estimates typically exclude special items.

Net interest income for the quarter decreased 1.4% to $124.12 million from $125.89 million in the prior-year quarter.

The company's net interest margin was 3.45%, compared to 3.58% for the first quarter of 2008.

Other income for the quarter totaled $43.99 million, up 20.8% from $36.43 million in the same quarter last year.

During the first quarter, provision for loan losses widened to $50.00 million from $11.22 million in the same quarter a year ago, while gains on investment securities increased to $2.92 million from $1.25 million in the year-ago quarter.

Other expenses increased to $106.37 million from $96.66 million in the year-ago quarter.

FULT closed Tuesday's regular trading session at $7.49, down $0.86 or 12.97% on a volume of 2.548 million shares on the Nasdaq.

by RTTNews Staff Writer

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