Fulton in Pa. revises 4Q profit after commercial loan becomes uncollectable
Fulton Financial in Lancaster, Pa., has revised its fourth-quarter results downward to reflect more issues with a commercial lending relationship.
The $21.9 billion-asset company said in a press release Thursday that it had already built a $12 million loan-loss allowance to cover potential losses tied to the $29 million relationship when it reported earnings on Jan. 21.
The unnamed borrower’s loans had been placed on nonaccrual status.
Fulton said it recently determined that an additional $8 million loan-loss provision was necessary and that $20 million of loans were uncollectable, prompting a charge-off. The moves lowered its fourth-quarter profit by 11.6%, to $47.8 million.
The company’s 2019 net income was reduced by 2.7%, to $226.3 million.