Fulton Financial in Lancaster, Pa., reported a decrease in third-quarter profit, as expenses rose and income from fees and certain securities holdings declined.
The $17.8 billion-asset company's net income shrunk 11% on a year-over-year basis, to $34.3 million. Earnings per share fell 4.8% to 21 cents per share, 2 cents better than the average estimate of analysts polled by Bloomberg.
Net interest income fell 2.9% to $125.7 million. The net interest margin fell 21 basis points to 3.18%.
Noninterest income rose 6.9%, to $44.8 million. Mortgage banking income fell 4% to $3.86 million but was offset by a 20% spike in investment securities gains. Service charges on deposit accounts, investment management and trust services and other service charges and fees lifted slightly.
Noninterest expense increased 7.9% to $124.9 million, mainly due to the redemption of $150 million of trust preferred securities in July which resulted in a loss of $5.6 million. Fulton's efficiency ratio increased 3.02 percentage points to 68.82%.