Fulton Financial Corp. disclosed Thursday that it filed an application with the U.S. Department of the Treasury to participate in the voluntary capital-purchase program.
The program is is designed to attract broad participation by healthy institutions to stabilize the financial system and increase lending for the benefit of the U.S. economy and American consumers. The Treasury Department initiated the program under authority provided in the Emergency Economic Stabilization Act of 2008.
Companies accepting federal funds through the agency's financial rescue plan must agree to expand the flow of credit to U.S. consumers and businesses among other stipulations.
In a document filed with the Securities and Exchange Commission, Fulton said it has applied to participate up to the maximum allowable amount of 3% of risk-weighted assets, or about $375 million.
While Fulton is well capitalized, once approved and subject to the program's standardized terms announced by Treasury, the additional capital from the program would further strengthen its capital position.
Shares of the multibank holding company traded recently at $9.53, up 2 cents.
