* Says repayment to hit Q3 profit by 3 cents/share
* Says repayment to eliminate $18.8 mln div expenses
July 14 Fulton Financial Corp (FULT.O), a U.S.
regional bank, said it redeemed the $376.5 million of preferred
stock issued to the U.S. Treasury under the government's
Troubled Asset Relief Program.
The company, which paid $379.6 million to the government
including unpaid dividends, said the redemption will hurt its
third-quarter net income available to shareholders by 3 cents a
The parent company of Fulton Bank N.A. said the U.S.
Treasury still holds a warrant for 5.5 million common shares,
which Fulton intends to purchase after negotiations.
The bank said by repaying the bailout money, it would
eliminate the $18.8 million annual expense of dividends paid to
Fulton had recently raised about $230 million through a
common stock offering to repay the government.
Shares of the company closed at $10.24 Wednesday on
(Reporting by Archana Shankar in Bangalore)