Fulton Financial reported third quarter earnings of $0.20 per share and announces approval for $50 million share repurchase program.
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Diluted earnings per share for the third quarter of 2015 was 20 cents, compared to 21 cents in both the second quarter of 2015 and the third quarter of 2014.
In July 2015, the corporation redeemed $150.0 million of trust preferred securities. In connection with this redemption, a loss of $5.6 million was recognized as a component of non-interest expense. This loss reduced diluted earnings per share for the third quarter of 2015 by approximately 2 cents.
Net interest income for the third quarter of 2015 increased $2.8 million, or 2.3 percent, compared to the second quarter of 2015 and decreased $3.7 million, or 2.8 percent, compared to the third quarter of 2014. The net interest margin of 3.18 percent decreased two basis points compared to the second quarter of 2015, and was down 21 basis points compared to the third quarter of 2014.
Ending loans increased $292.1 million, or 2.2 percent, compared to the second quarter of 2015 and $506.0 million, or 3.9 percent, compared to the third quarter of 2014, while average loans increased 1.3 percent and 3.5 percent, compared to the second quarter of 2015 and the third quarter of 2014, respectively.
Ending deposits increased $578.7 million, or 4.3 percent, compared to the second quarter of 2015 and $750.8 million, or 5.6 percent, compared to the third quarter of 2014, while average deposits increased 3.1 percent and 6.6 percent, compared to the second quarter of 2015 and the third quarter of 2014, respectively.
The provision for credit losses in the third quarter of 2015 was $1.0 million, compared to a $2.2 million provision in the second quarter of 2015 and a $3.5 million provision in the third quarter of 2014.
Non-interest income, excluding investment securities gains, decreased $1.0 million, or 2.3 percent, in comparison to the second quarter of 2015, and increased $1.2 million, or 2.9 percent, in comparison to the third quarter of 2014.
Non-interest expense, excluding the loss on redemption of trust preferred securities, increased $909,000, or 0.8 percent, compared to the second quarter of 2015 and increased $3.5 million, or 3.0 percent, compared to the third quarter of 2014.
In October 2015, the board approved the repurchase of up to $50 million of the corporation's common stock, or approximately 2.3 percent of outstanding shares.
In addition, during the third quarter of 2015, the corporation completed the $50 million share repurchase program announced in April 2015. A total of approximately 4.0 million shares were repurchased under that program at an average cost of $12.57 per share. ■