Fulton Financial 3Q profit slips

LANCASTER, Pa. --Fulton Financial Corp. said Tuesday its profit fell 31 percent in the third quarter, due to the housing market slowdown and charges related to its Resource Mortgage operations.

Fulton recorded income of $33.6 million, or 19 cents per share, from $48.3 million, or 28 cents per share, a year earlier. Analysts polled by Thomson Financial expected earnings of 24 cents per share, on average.

Net interest income fell 3 percent to $122.4 million from $125.9 million. Net interest income refers to the bank's business that deals with interest accounts, like loans and deposits.

Other income rose 4 percent to $36.9 million from $35.5 million. The recent quarter included a $2.1 million gain from settling litigation with Monarch Bank and the sale of Resource Bank assets.

Fulton recorded a $16 million charge related to the closure of Resource Mortgage branches, potential misrepresentation of borrower information and revaluations of loans and real estate.

Most of its mortgage operations have now been closed.

"We continue to deal with the impact of a slowdown in the housing market along with the Resource Mortgage issues," said Chief Executive R. Scott Smith Jr. in a statement.

He said the company is reviewing records related to mortgages originated by Resource Mortgage and may require additional reserves in the future.

Fulton shares fell 44 cents, or 3.2 percent, to $13.45.