Fulton in Pa. revises 4Q profit after commercial loan becomes uncollectable

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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.

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