Fulton Financial Corporation’s FULT subsidiary, Fulton Bank, N.A., recently announced that it acquired Camp Hill, PA-based APS Wealth Management. Terms of the transaction, completed on Oct 4, 2019, were not disclosed.
Notably, in September 2014, the Office of the Comptroller of the Currency (“OCC”) imposed enforcement orders on Fulton Financial. Because of this, the company was unable to engage in mergers and acquisitions. The orders were lifted gradually over the last two years and this acquisition is the first that the bank has made since the orders were lifted.
APS Wealth Management was established in 1994 by Mike Chwastyk. At the time of its acquisition by Fulton Financial, it had nearly $67 million in assets under management or administration.
Lancaster, PA-based Fulton Bank’s wealth management division, Fulton Financial Advisors, has nearly $11 billion in assets under management or administration.
Fulton Financial’s president, Curtis J. Myers, stated, “Our purchase of APS Wealth Management is enabling Fulton to enhance our outreach to clients in central Pennsylvania. For 25 years, Mike Chwastyk and his team have built a strong client base by delivering highly personalized financial solutions. We’re delighted to unite to create a winning combination of outstanding service, solid reputation and world-class products.”
Shares of Fulton Financial have gained 11.9% so far this year compared with 16.3% growth of the industry it belongs to.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Of late, consolidation in the banking sector is on the rise, driven by the easing of stringent regulations and lower corporate tax rates that freed up capital. Several mid-sized banks, including Fifth Third Bancorp FITB, SVB Financial Group SIVB and Prosperity Bancshares, Inc PB, have undertaken opportunistic buyouts that will not only lead to geographic expansion but also help diversify revenue base.
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Fifth Third Bancorp (FITB) : Free Stock Analysis Report
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