Fulton Financial (FULT) in Lancaster, Pa., reported higher quarterly profit that benefited from a cost-cutting initiative.
The $17 billion-asset companys first-quarter earnings rose 6.5% from a year earlier, to $41.8 million, or 22 cents a share. The average estimate of analysts polled by Bloomberg was 20 cents.
Fulton reported a huge drop in its loan-loss provision for loan losses, which fell 83% to $2.5 million
Noninterest expense fell 1.2% to $109.6 million. Fulton reported lower costs in employee salaries, data processing, professional fees and other items. The company made several changes during the first quarter to lower expenses, including the
Despite cutting costs, Fulton's efficiency ratio rose by 160 basis points, to 63.38%. A low ratio is an indication of an efficiently run bank. Investors have been
Net interest income fell 0.1%, to $129.6 million. Fee income fell 19%, to $38.5 million, in part because mortgage banking income fell 56%. to $3.6 milion.