Tuesday, Fulton Financial Corp. (FULT) reported a profit for the fourth quarter and fiscal year 2009, compared to a loss last year, primarily due to the absence of a goodwill impairment charge present in the fourth quarter of 2008 as well as a reduction in the provision for loans losses and a decrease in other-than-temporary impairment charges related to investment securities.
According to the company, the net income available to common shareholders for the fourth quarter was $19.3 million or $0.11 per share, compared with net loss available to common shareholders of $102.3 million or $0.58 per share for the fourth quarter of 2008. On average twelve analysts polled by Thomson Reuters estimated earnings of $0.11 per share. Analysts' estimates typically exclude special items.
The company said that the profit was primarily due to the absence of a $90.0 million goodwill impairment charge recorded in the fourth quarter of 2008, a $20.0 million reduction in provision for loan losses, and a $21.9 million decrease in other-than-temporary impairment charges related to investment securities.
Net interest income increased by 2.8% to $136.09 million from $132.34 million a year-ago.
Four Wall Street analysts estimated a revenue of $137.51million for the quarter.
The Lancaster, Pennsylvania-based financial holding company said that the net interest margin was 3.67% for the fourth quarter of 2009, compared with 3.68% for the fourth quarter a year-ago.
The company's provision for loan losses for the fourth quarter decreased to $45.02 million from $65 million for the same period in 2008.
Annualized net charge-offs for the quarter ended December 31, 2009 were 0.97% of average total loans, compared with 0.89% for the quarter ended December 31, 2008
Total loans, net of unearned income at the end of the period declined by 0.6% to $11.97 billion from $12.04 billion during the comparable period a year-ago. Total deposits increased by 14.7% to $12.09 billion from $10.55 billion in the year-ago period. The increase was due to a $1.3 billion, or 24.4% increase in demand and savings deposits and a $215.7 million, or 4.2%, increase in time deposits.
According to the company, non-performing assets at December 31 were $305.0 million or 1.83% of total assets, compared with $219.0 million, or 1.35% of total assets for the prior year period. The 39.3% increase in non-performing assets since December 31, 2008 occurred across all loan types as a result of the weakened economic conditions.
"Our performance in 2009 was characterized by significant deposit growth, good growth in non-interest income helped by our mortgage banking operations, continued tight control of expenses and, particularly in the second half of the year, stabilization of our credit quality metrics," said Scott Smith, Jr., chairman and chief executive officer.
For the full year, net income available to common shareholders was $53.8 million or $0.31 per share, compared with net loss available to common shareholders of $6.1 million or $0.03 per share for 2008. The year-to-date net interest income increased by 0.6% to $520.95 million from $524.14 million a year-ago.
Twelve analysts estimated earnings of $0.31 per share on a revenues of $531.11 million for the entire fiscal year.
FULT closed Tuesday's last trade at $9.54, up $0.31 or 3.36%, on a volume of 1.82 million shares on the Nasdaq.
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