Fulton Financial on Tuesday reported a 5.4% drop in third quarter net profits, in part due to the expense of consolidating subsidiary banks into its Fulton Bank.
Lancaster-based Fulton Financial had third quarter net profits of $62.1 million (37 cents a share), down from $65.6 million (also 37 cents a share, on fewer shares outstanding) in 2018's third quarter.
Hurting the bottom line was an 8.4% increase in non-interest expense, a 34.0% jump in the provision for loan losses and an 18.0% hike in income-tax expense, offset in part by a 17.2% rise in non-interest income.
Raising non-interest expense was the $5.2 million cost of consolidating its remaining subsidiary banks and $4.3 million of penalties for pre-paying certain Federal Home Loan Bank advances.
However, the penalties came as part of a balance sheet restructuring that involved the sale of $400 million in securities for a $4.5 million gain, leading to the higher non-interest income.
Fulton Financial had total assets at Sept. 30 of $21.7 billion.