Fulton Financial in Lancaster, Pa., reported lower quarterly earnings after its noninterest income fell.
The $17.2 billion-asset company said in a press release late Tuesday that its third-quarter profit fell 3% from a year earlier, to $38.6 million. Earnings per share of 21 cents beat the average estimate of analysts polled by Bloomberg by 1 cent.
Noninterest income fell 12%, to $41.9 million. This decrease was mainly because of reduced mortgage banking income and fewer securities gains.
Net interest income fell 2%, to $129 million. Total loans increased by 1.7%, to $13.1 billion, but the net interest margin compressed by 6 basis points, to 3.39%.
Fulton recorded a $3.5 million loan-loss provision. Nonperforming assets fell by 16%, to $157 million.
Noninterest expenses were relatively unchanged, at $116 million, even though outside services costs rose by 71% to enhance Fulton's Bank Secrecy Act and anti-money-laundering compliance program. In July, regulators ordered the company to strengthen its BSA and anti-money-laundering controls.