Shares of Fulton Financial fell early Wednesday after the Lancaster, Pa., company reported second-quarter results that missed expectations.
Fulton, with $17 billion of assets, said after markets closed Tuesday that its second-quarter profit declined 2.4% from the same period last year, to $39.6 million. Its earnings per share of 21 cents fell a penny short of estimates of analysts polled by Bloomberg.
The slight dip in net income could be attributed largely to a sharp drop in fees from mortgage banking. Mortgage banking income fell nearly 48% year over year, to $5.7 million, and that contributed to a 14% decline in noninterest income.
Net interest income rose 5% year over year on modest loan growth and substantially lower provision for loan losses. It set aside $3.5 million for problem loans in the quarter, compared to $13.5 million in the same period in 2013.
In heavy trading, Fulton's shares were down nearly 3.6% at midday Wednesday, to $11.32.