Fulton Financial Reports Third Quarter Earnings Of $0.16 Per Share
Overview of the Third Quarter of 2010
- Diluted earnings per share for the third quarter of 2010 increased two cents, or 14.3 percent, in comparison to the second quarter of 2010. One cent of this increase resulted from a $3.3 million increase in mortgage banking income as a result of a change in the valuation methodology for the Corporation's mortgage pipeline.
- Provision for loan losses of $40.0 million, which remained unchanged from the second quarter of 2010. Non-performing assets increased $30.2 million, or 8.8 percent, over the second quarter of 2010.
- In July 2010, the Corporation redeemed all of its outstanding preferred stock held by the U.S. Department of the Treasury (UST) for $376.5 million. Upon redemption, the Corporation accreted its remaining preferred stock discount, resulting in a $5.5 million, or three cents per diluted share, reduction to third quarter net income available to common shareholders.
- In September 2010, the Corporation repurchased its outstanding common stock warrant for the purchase of 5.5 million shares of its common stock, also held by the UST, for $10.8 million. The repurchase of the warrant had no impact on diluted earnings per share.
LANCASTER, Pa., Oct. 19, 2010 (GLOBE NEWSWIRE) -- Fulton Financial Corporation (Nasdaq:FULT) reported net income available to common shareholders of $31.5 million, or 16 cents per diluted share, for the third quarter ended September 30, 2010, compared to $26.6 million, or 14 cents per diluted share, for the second quarter of 2010.
"Residential mortgage activity along with an increase in our net interest margin contributed to continued earnings improvement in the third quarter. Our strong capital position enabled us to repay our U. S. Treasury TARP funds, in full, and to repurchase the associated warrant," said R. Scott Smith, Jr., Chairman and CEO. "Since the economic recovery has been slower than anticipated, our financial performance continues to reflect asset quality challenges. While deposit growth has been good, loan demand has been comparatively light, as consumer and business spending patterns reflect continued economic uncertainty. Expenses were again well controlled."
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