Fulton Financial Corp., the county's largest banking company, on Tuesday slashed its quarterly common stock dividend by 80 percent.

The cut, to 3 cents per share from 15 cents per share, will take effect with the dividend payable April 15 to shareholders of record March 27.

With the move, Lancaster-based Fulton Financial becomes the latest of many major banking firms to reduce its payout in order to conserve cash in the midst of the recession.

Fulton Financial said the action, approved by its board of directors, will save the company $21 million per quarter.

R. Scott Smith Jr., chairman and chief executive officer, said in a prepared statement that the banking firm is "keenly aware" of the importance of the dividend to its shareholders.

But "in times of economic uncertainty," he continued, "it is essential that we take the necessary steps to protect our company's strong balance sheet and capital base for the long-term benefit of our shareholders, customers and employees."

Among the other banking companies that have decreased dividends this month are two with large presences in Lancaster County - PNC and Wells Fargo.

PNC cut its dividend by 85 percent, to 10 cents a share from 66 cents a share. Wells Fargo, which owns Wachovia, cut its dividend by 85 percent as well, to 5 cents a share from 34 cents a share.

However, dividend reductions are not confined to the banking industry. Firms with local ties that have proposed or enacted smaller or no dividend payouts recently include Alcoa, Flexsteel, General Growth Properties and CNH Global.

(c) 2009 Intelligencer Journal. Provided by ProQuest LLC. All rights Reserved.

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