Apr. 22--Fulton Financial Corp. on Tuesday reported an 80.6 percent drop in net profits for the first quarter.

The Lancaster-based company earned $8.1 million (5 cents a share), down from $41.5 million (24 cents a share) in the 2008 quarter.

Fulton Financial, the county's biggest banking firm, blamed the drop on a $38.8 million increase in its provision for loan losses and $5.0 million of dividends and value adjustment on the preferred stock issued to the U.S. Treasury under the Capital Purchase Program.

At March 31, Fulton Financial had assets of $16.5 billion.

M&T Bank Corp. on Tuesday reported a 68.2 percent drop in net profits for the first quarter.

Buffalo-based M&T posted net profits of $64.2 million (49 cents a share), down from $202.2 million ($1.82 a share) in the 2008 quarter.

The banking firm said its results were hurt by $32 million in pre-tax charges for the impairment of certain investment securities and a $98 million increase in the provision for loan losses.

M&T had assets of $64.9 billion at March 31.

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