Fulton Bancorp Inc. announces third quarter earnings.

FULTON, Mo.--(BUSINESS WIRE)--May 13, 1997--Fulton Bancorp Inc. (Nasdaq Small Cap:FTNB), the holding company for Fulton Savings Bank, FSB, Tuesday reported a net income of $226,000 for the quarter ended March 31, 1997, compared to net income of $172,000 for the quarter ended March 31, 1996.

Net income for the nine months ended March 31, 1997, was $424,000, compared to net income of $457,000 for the nine months ended March 31, 1996. The results for the nine months ended March 31, 1997, were significantly affected by a one-time charge of $427,000, which represented the bank's share of an industry-wide special assessment to recapitalize the Savings Association Insurance Fund (SAIF).

Without this one-time assessment, the company would have reported net income of $693,000, or 44 cents per share for the nine months ended March 31, 1997.

The company completed its initial public offering of 1,719,250 shares of common stock for $16.5 million on Oct. 17, 1996, in connection with the conversion of the bank from the mutual to stock form of ownership. The company had no operations or outstanding common stock prior to Oct. 17, 1996. Accordingly, the results of operations prior to that date reflect only the operations of the bank.

Total assets rose to $99.5 million at March 31, 1997, from $88.8 million at June 30, 1996, while net loans receivable rose to $83.7 million from $78.5 million. Deposits were $67.1 million at March 31, 1997, compared to $71.3 million at June 30, 1996.

"We experienced strong loan demand during the nine months ended March 31, 1997," said Gohring, "and have been able to deploy a significant portion of the proceeds of the public offering."

Nonperforming assets totalled $400,000, or 0.40 percent of total assets, at March 31, 1997, compared to $396,000, or 0.45 percent of total assets at June 30, 1996.

Net interest income for the quarter ended March 31, 1997, rose to $902,000 compared to $629,000 for the same period last year. Interest income increased as a result of growth in the loan portfolio and upward adjustments on ARM loans. Investment of the public offering proceeds also contributed to greater interest income.

Interest expense also increased as a result of increased deposits during the mutual to stock conversion, increased rates and additional borrowing from the Federal Home Loan Bank of Des Moines to meet liquidity and loan demands.

On Nov. 13, 1996, the board of directors of the company changed the company's fiscal year-end from April 30 to June 30. The company began reporting on the basis of its new fiscal year-end beginning with the quarter ending Dec. 31, 1996.

Established in 1912, Fulton Savings Bank operates from offices in Fulton and Holts Summit, Mo. At March 31, 1997, the company had total assets of $99.5 million and total shareholders' equity of $24.9 million. On May 9, 1997, the company's stock closed at $18.875 per share. -0-

                          Fulton Bancorp Inc.
                    Consolidated Financial Highlights
                             (unaudited)
                        (Dollars in thousands)


                           Three Months Ended      Nine months ended
                               March 31,               March 31,
                             1997      1996          1997      1996
                           ------------------      ------------------

Operating Data:

Total interest income       $ 1,865  $ 1,592        $ 5,483   $ 4,630
Total interest expense          963      963          3,026     2,897
                            -------   ------        -------   -------
  Net interest income           902      629          2,457     1,733
Provision for loan losses        60       --             60        25
                            -------   ------        -------   -------
  Net interest income after
   provision for loan losses    842      629          2,397     1,708
Non-interest income             125      127            376       392
Non-interest expense            607      489          2,104     1,373
                            -------   ------        -------   -------
  Income before
   income taxes                 360      267            669       727
Income tax expense              134       95            245       270
                            -------   ------        -------   -------

Net income                  $   226   $  172        $   424   $   457
                            =======   ======        =======   =======

Earnings per share          $  0.14      N/A        $  0.27       N/A
                            =======   ======        =======   =======

Earnings per share, excluding
 SAIF special assessment        N/A      N/A        $  0.44       N/A
                            =======   ======        =======   =======


                           March 31,   June 30,
                              1997       1996
                            --------------------
Financial Condition Data:

Total assets               $ 99,464   $ 88,771
Cash and cash equivalents,
 including interest-bearing
 accounts                    10,019      3,154
Loans receivable, net        83,703     78,541
Investment securities         1,890      3,207
Deposits                     67,096     71,288
Federal Home Loan Bank
 advances                     6,500      7,000
Stockholders' equity         24,875      9,274

CONTACT: Fulton Bancorp Inc.

Kermit D. Gohring, president/CEO, 573/642-6617