Fulton Financial in Lancaster, Pa., reported lower first-quarter profit on a decline in net interest income and higher expenses.
Net income at the $17 billion-asset company fell 4% to $40 million, or 22 cents per share, from a year earlier. That was two cents higher than the average estimate of analysts polled by Bloomberg
Net interest income fell 5% to $123.6 million. The net interest margin compressed by 20 basis points to 3.27%.
Noninterest expense rose 8% to $118.6 million on higher salaries and employee benefits.
Fee income offset rose 16% to $44.7 million, primarily due to $4.1 million in investment securities gains. Mortgage income and other service charges also contributed to the increase.
Fulton's board this month approved a $50 million stock buyback, running through the end of the year.