Fulton Financial on Tuesday reported a 33.8% drop in second quarter net profits, with COVID-19 having “a significant impact” on the results.
Lancaster-based Fulton had net profits of $39.6 million (24 cents a share), down from $59.8 million (35 cents a share) in the 2019 quarter.
Slashing the bottom line was a four-fold increase in the provision for loan losses to $19.6 million, as Fulton estimated the impact of COVID-19 on its loan portfolio.
The higher provision caused net interest income to fall 16.5%, offset slightly by a 3.0% rise in noninterest income, a 0.8% drop in noninterest expense and a 33.8% decline in income tax expense.
Fulton, with assets of $24.6 billion at June 30, is the owner of Fulton Bank, the county’s biggest bank, according to Federal Deposit Insurance Corp. statistics. Fulton is also among the county's largest employers, with more than 1,400 workers here.