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Fulton Financial in Lancaster, Pa., will issue $150 million in subordinated debt to fund the redemption of a separate portfolio of debt securities.
June 8
Fulton Financial in Lancaster, Pa., reported lower second-quarter profit, as low interest rates pressured lower yields on earning assets.
The $17.4 billion-asset company's net income fell 7.3% to $36.7 million, or 21 cents per share, from a year earlier, meeting the average estimate of analysts polled by Bloomberg.
Net interest income fell 3.9% to $122.9 million. Average yields on interest-earning assets fell 18 basis points to 3.74%. The net interest margin compressed 21 basis points to 3.20%.
"In light of the current low interest rate environment, we took steps to reduce interest expense over the long term through
Fee income rose 3.6% to $46.5 million on higher service charges on deposit accounts, due to an increase in overdraft fees.
Noninterest expense rose 1.8% to $118.4 million on higher costs for salaries and employee benefits, marketing and for other outside services.