Benzinga  Jul 19  Comment 
Fulton Financial Corp (NASDAQ: FULT) recently reported strong second-quarter results thanks to better-than-expected net interest margin expansion and credit results. The Analyst Piper Jaffray analyst Matthew Breese upgraded Fulton Financial...
Benzinga  Jul 17  Comment 
Fulton Financial (NASDAQ: FULT) announces its next round of earnings Tuesday. Here is Benzinga's everything-that-matters guide for the Q2 earnings announcement. Earnings and Revenue Based on Fulton Financial management projections, analysts...
MarketWatch  May 31  Comment 
Fulton Financial Corp. shares declined in the extended session Thursday after the financial holding company reported that potentially fraudulent activities at an unnamed customer will result in a hit to second-quarter earnings. Fulton shares,...


Fulton Financial (NYSE: FULT) is a bank holding company that operates commercial banking operations in the mid-Atlantic United States. Since its operations are focused on standard commercial banking functions in a single geographical region, the company operates through a single reportable segment. In the wake of the 2008 financial crisis, FULT faces unfamiliar challenges as the credit market remains uncertain and the Dodd-Frank Act changes the financial sector.

Business Growth

In 2010, net income more than doubled to $112.0 million from $53.8 million in 2009.[1] The primary driver of this increase was an improvement in the credit market that allowed the company to increase its net interest margin and earn more through its lending practices.[2]

Trends & Forces

Uncertainty in credit market affects lending revenues

FULT's primary source of revenue is its lending practice - like any commercial bank, FULT pays customers interest on their deposits so that it can lend out their money at a higher rate. The net interest margin metric acts as proxy for the bank's ability to earn interest on its assets. In the midst of credit market uncertainty following the 2008 Financial crisis, FULT's ability to lend profitably may be reduced and its net interest margin may decrease.

Dodd-Frank regulation may change investor sentiment

The Dodd-Frank Wall Street Reform and Consumer Protection Act, the government's response to the 2008 financial crisis, significantly impacts the way the financial sector operates. Its allowance for government support of institutions identified as "too big to fail" may increase the value of identified financial institutions while decreasing the prospects and equity value of smaller financial institutions like FULT. In addition, the Act increases financial regulation which may restrict FULT's operations and increase back office expenses related to compliance.


FULT competes with other commercial banks in the Mid-Atlantic including competing regional banks and national competitors:

FULT and its competitors increase revenues and income by increasing their deposit and loan volume. The industry is competitive as companies increase their deposit interest rates while decreasing their loan rates and fees to attract customers.


  1. FULT 2010 10-K pg. 19  
  2. FULT 2010 10-K pg. 21  
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