What happened

For the week, shares of the Pennsylvania-based regional bank Fulton Financial (FULT -0.40%) traded nearly 10% higher as of 2:25 p.m. ET Thursday after the company reported earnings results for the second quarter of the year.

So what

Fulton reported diluted earnings per share of $0.42 on total revenue of more than $237 million, both of which beat analyst estimates.

Fulton's CEO E. Philip Wenger said in a statement:

Overall, we are pleased with Fulton's performance and results for the second quarter. Loan originations were strong, we began to see the positive impact of rising interest rates, and fee income was solid despite headwinds in mortgage banking and our wealth management businesses.

Period-end loans grew about 2.4% from the first quarter of the year, while fee income grew 5.7%, driven by capital markets and merchant and card fees.

Fulton also raised its full-year guidance. While expenses may rise slightly and fee income may come in slightly less than expected, net interest income (NII) is expected to more than offset expenses and fee income. NII is the profit banks make on loans, securities, and cash after funding those assets.

Management previously expected NII to come in at an upper range of $705 million. Now, it's expecting to see as much as $760 million at the higher end of guidance.

Now what

Fulton had a nice second quarter and significantly revised its guidance higher for NII. Management on the company's earnings call seemed very pleased with loan growth as well, so the bank looks well positioned to take advantage of the rising rate environment this year.