SEC Comment Letter for FULTON FINANCIAL CORP (FULT, FULTP) (CIK 0000700564) (FULT) — Sep 19, 2006
FULTON FINANCIAL CORP (FULT, FULTP) (CIK 0000700564)
Date: Sept. 19, 2006 · CIK: 0000700564 · Accession: 0000000000-06-045180
AI Filing Summary & Sentiment
Reasoning
File numbers found in text: 000-10587
Letter
September 19, 2006 Mail Stop 4561 Mr. R. Scott Smith Chairman, President and Chief Executive Officer Fulton Financial Corporation One Penn Square P.O. Box 4887 Lancaster, Pennsylvania 17604
Re: Fulton Financial Corporation Form 10-K for Fiscal Year Ended December 31, 2005 Filed March 16, 2006 Forms 10-Q for Fiscal Quarters Ended March 31, 2006 and June 30, 2006 File Number: 000-10587
Dear Mr. Smith:
We have reviewed your filings and have the following comment. We have limited our review to only your financial stat ements and related disclosures and do not intend to expand our review to other portions of your docum ents. In our comment, we may ask you to provide us with supplemental information so we may better understand your disclosure. Please be as detailed as n ecessary in your explanation. After reviewing this information, we may raise additional comments.
Please understand that the purpose of our re view process is to assist you in your compliance with the applicable disclosure requirements and to enhance the overall disclosure in your filing. We look forward to working with you in these respects. We welcome any questions you may have about our comment or any other aspect of our review. Feel free to call us at the telephone numbers listed at the end of this letter.
* * * * *
Mr. R. Scott Smith Fulton Financial Corporation September 19, 2006 Page 2
Form 10-K, filed March 16, 2006
Note A – Summary of Significant Accounting Policies
Derivative Financial Instruments, page 46 1. We note that in October 2005 you entered into a forward-starting interest rate swap with a notional amount of $150 million in anticipation of the issuance of $150 million of trust preferred securities in January 2006. Please tell us how you determined that this hedging relationshi p meets the criteria for hedge accounting pursuant to paragraphs 28 and 29 of SFAS 133. Specifically address the following:
• the nature and terms of the hedged item or transaction; • the nature and terms of th e derivative instruments; • the specific documented risk being hedged; • the quantitative measures you use to assess effectiveness of each hedge both at inception and on an ongoing basis; and • whether you apply the “shor t-cut” method or “matched terms” approach for assuming no effectiveness for this hedgi ng relationship pursuant to paragraphs 68 or 65, as applicable, of SFAS 133.
* * * * * As appropriate, please respond to this comm ent within 10 business days or tell us when you will provide us with a response. Please furnish a cover letter that keys your response to our comment and provides any re quested supplemental information. Detailed cover letters greatly facilitate our review. Please understand that we may have additional comments after reviewing your response to our comment.
We urge all persons who are responsi ble for the accuracy an d adequacy of the disclosure in the filing review ed by the staff to be certain that they have provided all information investors require for an inform ed decision. Since the company and its management are in possession of all facts re lating to a company’s disclosure, they are responsible for the accuracy and adequacy of the disclosures they have made.
In connection with responding to our comments, please provide, in writing, a statement from the company acknowledging that:
the company is responsible for the adequacy and accuracy of the disclosure in the filing;
Mr. R. Scott Smith Fulton Financial Corporation September 19, 2006 Page 3
staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and
the company may not assert staff comme nts as a defense in any proceeding initiated by the Commission or any person under the federal secu rities laws of the United States.
In addition, please be advise d that the Division of Enfo rcement has access to all information you provide to the staff of the Divi sion of Corporation Fi nance in our review of your filing or in response to our comments on your filing.
You may contact John Spitz, Staff Accountant at (202) 551-3484, or me at (202) 551-3490, if you have questions re garding these comments.
Sincerely,
Don Walker
Senior Assistant Chief Accountant
Show Raw Text
September 19, 2006 Mail Stop 4561 Mr. R. Scott Smith Chairman, President and Chief Executive Officer Fulton Financial Corporation One Penn Square P.O. Box 4887 Lancaster, Pennsylvania 17604 Re: Fulton Financial Corporation Form 10-K for Fiscal Year Ended December 31, 2005 Filed March 16, 2006 Forms 10-Q for Fiscal Quarters Ended March 31, 2006 and June 30, 2006 File Number: 000-10587 Dear Mr. Smith: We have reviewed your filings and have the following comment. We have limited our review to only your financial stat ements and related disclosures and do not intend to expand our review to other portions of your docum ents. In our comment, we may ask you to provide us with supplemental information so we may better understand your disclosure. Please be as detailed as n ecessary in your explanation. After reviewing this information, we may raise additional comments. Please understand that the purpose of our re view process is to assist you in your compliance with the applicable disclosure requirements and to enhance the overall disclosure in your filing. We look forward to working with you in these respects. We welcome any questions you may have about our comment or any other aspect of our review. Feel free to call us at the telephone numbers listed at the end of this letter. * * * * * Mr. R. Scott Smith Fulton Financial Corporation September 19, 2006 Page 2 Form 10-K, filed March 16, 2006 Note A – Summary of Significant Accounting Policies Derivative Financial Instruments, page 46 1. We note that in October 2005 you entered into a forward-starting interest rate swap with a notional amount of $150 million in anticipation of the issuance of $150 million of trust preferred securities in January 2006. Please tell us how you determined that this hedging relationshi p meets the criteria for hedge accounting pursuant to paragraphs 28 and 29 of SFAS 133. Specifically address the following: • the nature and terms of the hedged item or transaction; • the nature and terms of th e derivative instruments; • the specific documented risk being hedged; • the quantitative measures you use to assess effectiveness of each hedge both at inception and on an ongoing basis; and • whether you apply the “shor t-cut” method or “matched terms” approach for assuming no effectiveness for this hedgi ng relationship pursuant to paragraphs 68 or 65, as applicable, of SFAS 133. * * * * * As appropriate, please respond to this comm ent within 10 business days or tell us when you will provide us with a response. Please furnish a cover letter that keys your response to our comment and provides any re quested supplemental information. Detailed cover letters greatly facilitate our review. Please understand that we may have additional comments after reviewing your response to our comment. We urge all persons who are responsi ble for the accuracy an d adequacy of the disclosure in the filing review ed by the staff to be certain that they have provided all information investors require for an inform ed decision. Since the company and its management are in possession of all facts re lating to a company’s disclosure, they are responsible for the accuracy and adequacy of the disclosures they have made. In connection with responding to our comments, please provide, in writing, a statement from the company acknowledging that: the company is responsible for the adequacy and accuracy of the disclosure in the filing; Mr. R. Scott Smith Fulton Financial Corporation September 19, 2006 Page 3 staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and the company may not assert staff comme nts as a defense in any proceeding initiated by the Commission or any person under the federal secu rities laws of the United States. In addition, please be advise d that the Division of Enfo rcement has access to all information you provide to the staff of the Divi sion of Corporation Fi nance in our review of your filing or in response to our comments on your filing. You may contact John Spitz, Staff Accountant at (202) 551-3484, or me at (202) 551-3490, if you have questions re garding these comments. Sincerely, Don Walker Senior Assistant Chief Accountant