Fulton Financial Corp. is consolidating two of its subsidiary banks into its largest banking subsidiary, Fulton Bank.
The consolidation of the two subsidiaries – FNB Bank in Danville and Swineford National Bank in Middleburg – into Lancaster-based Fulton is expected to be completed in the fourth quarter of this year.
The move first had to be approved by the Office of Comptroller of the Currency, Fulton Financial spokesperson Laura Wakeley said.
Fulton’s other subsidiaries have different regulators, including the Federal Reserve, meaning that Fulton Financial must wait their okays before consolidating its remaining subsidiaries.
“Once those orders are lifted, we can apply to have those consolidated,” Wakeley noted.
The reason for the consolidation, Wakeley said, is to minimize the amount of Securities and Exchange Commission reports Fulton Financial has to file. It will also help from a branding standpoint, she added.
Customers of the banks should see minimal, if any, changes, other than the bank name as a result of the merger, the company said in a news release on Tuesday.
Fulton Financial said its goal is to eventually merge all of its subsidiary banks into Fulton Bank.
It’s remaining subsidiaries include: Lehigh Valley-based Lafayette Ambassador Bank, Fulton Bank of New Jersey based in New Jersey and The Columbia Bank, based in Maryland.
“The OCC’s approval of the merger of these three subsidiary banks is the first step toward accomplishing this goal,” the company said in the release.
Based in Lancaster, Fulton Financial reported earnings of $49.5 million in the first quarter of 2018, up from $43.3 million in the first quarter of 2017.
The corporation has $20 billion in assets and operates more than 240 offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through six, soon to be three, subsidiary banks.