SOURCE: Fulton Financial Corporation

January 22, 2008 16:30 ET

Fulton Financial Reports 2007 Earnings

LANCASTER, PA--(Marketwire - January 22, 2008) - Fulton Financial Corporation (NASDAQ: FULT) earned $38.2 million for the fourth quarter of 2007, an 18.1 percent decrease from the same period in 2006. Diluted net income per share for the fourth quarter of 2007 decreased to 22 cents per share, an 18.5 percent decrease from the 27 cents reported during the same period in 2006. Diluted net income per share for the quarter increased 15.8 percent from the 19 cents reported in the third quarter of 2007.

Net income was $152.7 million for the year ended December 31, 2007, a 17.7 percent decrease from 2006. Diluted net income per share for the year decreased to 88 cents, a 17.0 percent decrease from the $1.06 reported in 2006. Total assets at December 31, 2007 grew 6.7 percent to approximately $15.9 billion.

As previously disclosed, during the first nine months of 2007, the Corporation recorded $24.9 million of charges related to actual and potential repurchases of residential mortgage and home equity loans originated and sold to secondary market investors by Resource Bank (Resource Mortgage). These repurchases resulted from early payment defaults by borrowers or misrepresentations of borrower information. Special counsel was engaged to review whether there were additional potentially material occurrences of misrepresentations of borrower information that should be considered in determining the proper levels of contingent losses and reserves. Based on the results of this special review, which was completed during the fourth quarter of 2007, no additional charges were recorded. Management believes the reserves recorded for actual and potential repurchases as of December 31, 2007 are adequate.

"2007 was a challenging year for the corporation and for our industry. While our earnings performance was impacted by the issues associated with Resource Mortgage, we have worked diligently to position the company for improved performance," said R. Scott Smith Jr., chairman, chief executive officer and president. "Commercial loan growth was strong. While loan quality remains good, the provision for loan losses and the level of non-performing loans are coming off their historical lows as we had anticipated for some time. These trends required a more normal provision for loan losses. Excluding nonrecurring items, other expenses were well-controlled with some key areas showing reductions. Our investment portfolio holds no collateralized debt obligations and only agency-guaranteed mortgage-backed securities. Because our liquidity and capital levels remain strong, we have no short term plans to raise additional capital."

For the year, loans, net of unearned income, increased $830.1 million, or 8.0 percent, to $11.2 billion at December 31, 2007, compared to $10.4 billion at December 31, 2006. The increase was due primarily to commercial loans, which grew $461.9 million, or 15.6 percent, and commercial mortgages, which increased $288.5 million, or 9.0 percent. In comparison to September 30, 2007, loans, net of unearned income, increased $216.1 million, or 2.0 percent, due mainly to an increase in commercial loans of $98.1 million, or 2.9 percent, and growth in commercial mortgages of $94.6 million, or 2.8 percent.

Non-performing assets were $120.9 million, or 0.76 percent, of total assets at December 31, 2007, compared to $57.8 million, or 0.39 percent, at December 31, 2006 and $107.0 million, or 0.69 percent, at September 30, 2007. The $63.0 million, or 108.9 percent, increase in non-performing assets since December 31, 2006 was due in part to the aforementioned repurchase of residential mortgage loans from secondary market purchasers during 2007.

Annualized net charge-offs for the quarter ended December 31, 2007 were 0.15 percent of average total loans, compared to 0.06 percent for the quarter ended December 31, 2006 and 0.08 percent for the quarter ended September 30, 2007. For the year ended December 31, 2007, net charge-offs were 0.09 percent of average total loans, compared to 0.02 percent for the same period in 2006. The provision for loan losses increased $5.7 million, or 536.7 percent for the fourth quarter of 2007, as compared to the same period in 2006. In comparison to the third quarter of 2007, the provision for loan losses increased $2.2 million, or 47.6 percent.

Total deposits decreased $127.0 million, or 1.2 percent, to $10.1 billion at December 31, 2007, compared to $10.2 billion at December 31, 2006. Demand and savings deposits decreased $233.5 million, or 4.0 percent, offset by a $106.5 million, or 2.4 percent, increase in time deposits. In comparison to September 30, 2007, total deposits decreased $185.7 million, or 1.8 percent, due to decreases in both time deposits and demand and savings accounts.

Net interest income for the fourth quarter increased $1.9 million, or 1.6 percent, compared to the fourth quarter of 2006 and increased $1.2 million, or 1.0 percent, from the third quarter of 2007. The Corporation's net interest margin was 3.56 percent for the fourth quarter of 2007, 3.68 percent for the fourth quarter of 2006 and 3.62 percent for the third quarter of 2007.

Other income, excluding investment securities losses and gains, decreased $2.7 million, or 7.0 percent, in the fourth quarter of 2007 compared to the same period in 2006. The decrease was due to a decline in gains on the sales of mortgage loans and a decrease in other income due to gains on sales of branch and office facilities during the fourth quarter of 2006. These decreases were partially offset by increases in service charges on deposit accounts and other service charges and fees. Compared to the third quarter of 2007, other income decreased $1.1 million, or 3.1 percent, due to $2.1 million of gains from the sale of certain mortgage-related assets and the settlement of related lawsuits during the third quarter of 2007, offset by an increase in service charges on deposit accounts, mainly overdraft fees, which increased $1.8 million, or 34.3 percent.

Other expenses increased $3.7 million, or 3.9 percent, compared to the fourth quarter of 2006, to $98.4 million. The increase was due primarily to $1.1 million of charges related to the write-off of tradename intangible assets as a result of actual and pending mergers of certain affiliate banks and $900,000 of professional fees incurred for the Resource Mortgage review. The increase was also due to $1.5 million of charges for the Corporation's affiliate bank's share, as members of Visa USA, of settled and pending litigation incurred by Visa, Inc. (Visa) in various lawsuits. These increases were offset by a $2.4 million, or 4.3 percent, decrease in salaries and employee benefits, due in part to corporate-wide workforce management and centralization initiatives which began during 2007 and decreases in incentive compensation and bonuses.

Compared to the third quarter of 2007, other expenses decreased $9.5 million, or 8.8 percent, due primarily to $16.0 million in charges recorded during the third quarter of 2007 related to the aforementioned mortgage banking operations at Resource Mortgage, offset by the professional fees, tradename write-offs and Visa charges, as detailed above.

Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company which has 3,900 employees and which operates more than 260 banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates: Fulton Bank, Lancaster, PA; Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Easton, PA; FNB Bank, N.A., Danville, PA; Hagerstown Trust, Hagerstown, MD; Delaware National Bank, Georgetown, DE; The Bank, Woodbury, NJ; The Peoples Bank of Elkton, Elkton, MD; Skylands Community Bank, Hackettstown, NJ; Resource Bank, Virginia Beach, VA and The Columbia Bank, Columbia, MD.

The Corporation's financial services affiliates include Fulton Financial Advisors, N.A., Lancaster, PA; Fulton Insurance Services Group, Inc., Lancaster, PA; and Dearden, Maguire, Weaver and Barrett, LLC, West Conshohocken, PA.

Residential mortgage lending is offered by all banks through Fulton Mortgage Company or Resource Mortgage.

Additional information on Fulton Financial Corporation is available on the Internet at www.fult.com.

Safe Harbor Statement:

This news release may contain forward-looking statements with respect to our financial condition, results of operations and business. Forward-looking statements are encouraged by the Private Securities Litigation Reform Act of 1995. When words such as "believes," "expects," "anticipates" or similar expressions are used in this release, the Corporation is making forward-looking statements.

Such forward-looking statements reflect the Corporation's current views and expectations based largely on information currently available to its management, and on its current expectations, assumptions, plan, estimates, judgments, and projections about its business and its industry, and they involve inherent risks, contingencies, uncertainties and other factors. Although the Corporation believes that these forward-looking statements are based on reasonable estimates and assumptions, the Corporation is unable to provide any assurance that its expectations will, in fact, occur or that its estimates or assumptions will be correct and actual results could differ materially from those expressed or implied by such forward-looking statements and such statements are not guarantees of future performance. The Corporation undertakes no obligation to update or revise any forward-looking statements. Accordingly, investors and others are cautioned not to place undue reliance on such forward-looking statements.

Many factors could affect future financial results including, without limitation, acquisition and growth strategies, market risk, the effect of competition and interest rates on net interest margin and net interest income, investment strategy and income growth, investment securities gains, other-than-temporary impairment of investment securities, deposit and loan growth, asset quality, balances of risk-sensitive assets to risk-sensitive liabilities, employee benefits and other expenses, amortization of intangible assets, goodwill impairment, capital and liquidity strategies and other financial and business matters for future periods.

For a more complete discussion of certain risks and uncertainties affecting the Corporation, please see the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations ---- Forward-Looking Statements" set forth in the Corporation's filings with the Securities and Exchange Commission.

FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
dollars in thousands, except per-share data


                    December 31
              ------------------------
BALANCE SHEET                            %
 DATA             2007         2006    Change
              -----------  -----------  -----

Total assets  $15,912,232  $14,918,964    6.7%
Loans, net of
 unearned
 income        11,204,424   10,374,323    8.0%
Investment
 securities     3,153,552    2,878,238    9.6%
Deposits       10,105,445   10,232,469   (1.2%)
Shareholders'
 equity         1,574,062    1,516,310    3.8%

                   Quarter Ended                  Year Ended
                    December 31                   December 31
                --------------------          --------------------
                                        %                            %
INCOME SUMMARY    2007       2006     Change    2007       2006    Change
                ---------  ---------  ------  ---------  --------- ------

Interest income $ 240,069  $ 229,548     4.6% $ 939,577  $ 864,507    8.7%
Interest
 expense         (116,418)  (107,803)    8.0%  (450,833)  (378,944)  19.0%
                ---------  ---------          ---------  ---------
  Net interest
   income         123,651    121,745     1.6%   488,744    485,563    0.7%
Provision for
 loan losses       (6,800)    (1,068)  536.7%   (15,063)    (3,498) 330.6%
Investment
 securities
 (losses) gains      (537)     1,915  (128.0%)    1,740      7,439  (76.6%)
Other income       35,748     38,439    (7.0%)  146,284    142,436    2.7%
Other expenses    (98,447)   (94,757)    3.9%  (405,455)  (365,991)  10.8%
                ---------  ---------          ---------  ---------
  Income before
   income taxes    53,615     66,274   (19.1%)  216,250    265,949  (18.7%)
Income taxes      (15,436)   (19,669)  (21.5%)  (63,532)   (80,422) (21.0%)
                ---------  ---------          ---------  ---------
  Net income    $  38,179  $  46,605   (18.1%)$ 152,718  $ 185,527  (17.7%)
                =========  =========          =========  =========

PER-SHARE DATA:

Net income:
     Basic      $    0.22  $    0.27   (18.5%)$    0.88  $    1.07  (17.8%)
     Diluted         0.22       0.27   (18.5%)     0.88       1.06  (17.0%)
     Cash
      dividends    0.1500     0.1475     1.7%     0.598      0.581    2.9%

Shareholders'
 equity              9.07       8.73     3.9%
Shareholders'
 equity
 (tangible)          5.30       4.91     7.9%

SELECTED
 FINANCIAL
 RATIOS:

Return on
 average assets      0.97%      1.25%              1.01%      1.30%
Return on
 average
 shareholders'
 equity              9.72%     12.29%              9.98%     12.84%
Return on
 average
 shareholders'
 equity
 (tangible)         17.44%     22.55%             18.16%     23.87%
Net interest
 margin              3.56%      3.68%              3.66%      3.82%
Efficiency
 ratio              59.09%     56.83%             61.19%     56.00%
Non-performing
 assets to
 total assets        0.76%      0.39%








FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands

                                                            % Change from
                                                          ----------------
                                              September  December September
                   December 31  December 31      30         31       30
                       2007         2006         2007      2006     2007
                   -----------  -----------  -----------  ------- -------

ASSETS
  Cash and due
   from banks      $   381,283  $   355,018  $   337,306      7.4%   13.0%
  Loans held for
   sale                103,984      239,042      116,451    (56.5%) (10.7%)
  Other
   interest-earning
    assets              21,153       28,188       19,673    (25.0%)   7.5%
  Investment
   securities        3,153,552    2,878,238    2,948,262      9.6%    7.0%
  Loans, net of
   unearned         11,204,424   10,374,323   10,988,307      8.0%    2.0%
  Allowance for
   loan losses        (107,547)    (106,884)    (109,435)     0.6%   (1.7%)
                   -----------  -----------  -----------
       Net Loans    11,096,877   10,267,439   10,878,872      8.1%    2.0%
  Premises and
   equipment           193,296      191,401      190,092      1.0%    1.7%
  Accrued interest
   receivable           73,435       71,825       73,927      2.2%   (0.7%)
  Goodwill and
   intangible
   assets              654,908      663,775      658,274     (1.3%)  (0.5%)
  Other assets         233,744      224,038      215,320      4.3%    8.6%
                   -----------  -----------  -----------
     Total Assets  $15,912,232  $14,918,964  $15,438,177      6.7%    3.1%
                   ===========  ===========  ===========

LIABILITIES AND
 SHAREHOLDERS'
 EQUITY
  Deposits         $10,105,445  $10,232,469  $10,291,186     (1.2%)  (1.8%)
  Short-term
   borrowings        2,383,944    1,680,840    1,773,083     41.8%   34.5%
  Federal Home
   Loan Bank
   advances and
   long-term debt    1,642,133    1,304,148    1,632,980     25.9%    0.6%
  Other
   liabilities         206,648      185,197      186,808     11.6%   10.6%
                   -----------  -----------  -----------
     Total
      Liabilities   14,338,170   13,402,654   13,884,057      7.0%    3.3%
  Shareholders'
   equity            1,574,062    1,516,310    1,554,120      3.8%    1.3%
                   -----------  -----------  -----------
     Total
      Liabilities
      and
      Shareholders'
      Equity       $15,912,232  $14,918,964  $15,438,177      6.7%    3.1%
                   ===========  ===========  ===========

LOANS, DEPOSITS
 AND SHORT-TERM
 BORROWINGS
 DETAIL:
Loans, by type:
  Commercial -
   industrial and
   financial       $ 3,049,923  $ 2,603,224  $ 2,954,204     17.2%    3.2%
  Commercial -
   agricultural        377,162      361,962      374,759      4.2%    0.6%
  Real estate -
   commercial
   mortgage          3,502,282    3,213,809    3,407,715      9.0%    2.8%
  Real estate -
   residential
   mortgage            851,577      696,836      809,148     22.2%    5.2%
  Real estate -
   home equity       1,501,231    1,455,439    1,472,376      3.1%    2.0%
  Real estate -
   construction      1,342,923    1,428,809    1,389,164     (6.0%)  (3.3%)
  Consumer             500,708      523,066      500,021     (4.3%)   0.1%
  Leasing and
   other                78,618       91,178       80,920    (13.8%)  (2.8%)
                   -----------  -----------  -----------
  Total Loans, net
   of unearned
   income          $11,204,424  $10,374,323  $10,988,307      8.0%    2.0%
                   ===========  ===========  ===========
Deposits, by type:
  Noninterest-
   bearing demand  $ 1,722,211  $ 1,831,419  $ 1,696,871     (6.0%)   1.5%
  Interest-bearing
   demand            1,715,315    1,683,857    1,738,605      1.9%   (1.3%)
  Savings deposits   2,131,374    2,287,146    2,195,363     (6.8%)  (2.9%)
  Time deposits      4,536,545    4,430,047    4,660,347      2.4%   (2.7%)
                   -----------  -----------  -----------
  Total Deposits   $10,105,445  $10,232,469  $10,291,186     (1.2%)  (1.8%)
                   ===========  ===========  ===========
Short-term
 borrowings, by
 type:
  Customer
   repurchase
   agreements      $   228,061  $   339,207  $   248,915    (32.8%)  (8.4%)
  Short-term
   promissory
   notes               443,002      279,076      476,249     58.7%   (7.0%)
  Federal funds
   purchased         1,057,335    1,022,351      842,476      3.4%   25.5%
  Other                655,546       40,206      205,443  1,530.5%  219.1%
                   -----------  -----------  -----------
  Total Short-term
   borrowings      $ 2,383,944  $ 1,680,840  $ 1,773,083     41.8%   34.5%
                   ===========  ===========  ===========



FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)
dollars in thousands, except per-share data


                                 Quarter Ended           % Change from
                           --------------------------  ------------------
                           December December September December  September
                              31       31       30        31        30
                             2007     2006     2007      2006      2007
                           -------- -------- --------  --------  --------

Interest Income:
  Interest Income          $240,069 $229,548 $238,740       4.6%      0.6%
  Interest Expense          116,418  107,803  116,330       8.0%      0.1%
                           -------- -------- --------
    Net Interest Income     123,651  121,745  122,410       1.6%      1.0%
  Provision for Loan Losses   6,800    1,068    4,606     536.7%     47.6%
                           -------- -------- --------
    Net Interest Income
     after Provision        116,851  120,677  117,804      (3.2%)    (0.8%)
Other Income:
  Investment management and
   trust services             9,291    9,466    9,291      (1.8%)       -
  Service charges on
   deposit accounts          13,355   11,289   11,293      18.3%     18.3%
  Other service charges and
   fees                       8,405    6,869    8,530      22.4%     (1.5%)
  Gains on sale of mortgage
   loans                      2,181    5,647    2,532     (61.4%)   (13.9%)
  Investment securities
   (losses) gains              (537)   1,915     (134)   (128.0%)  (300.7%)
  Other                       2,516    5,168    5,231     (51.3%)   (51.9%)
                           -------- -------- --------
    Total Other Income       35,211   40,354   36,743     (12.7%)    (4.2%)
Other Expenses:
  Salaries and employee
   benefits                  53,173   55,546   52,505      (4.3%)     1.3%
  Operating risk loss           767    1,334   16,345     (42.5%)   (95.3%)
  Net occupancy expense      10,002    9,637    9,813       3.8%      1.9%
  Equipment expense           3,303    3,460    3,438      (4.5%)    (3.9%)
  Data processing             3,205    3,097    3,131       3.5%      2.4%
  Advertising                 3,465    2,424    2,470      42.9%     40.3%
  Intangible amortization     2,158    2,024    1,995       6.6%      8.2%
  Other                      22,374   17,235   18,299      29.8%     22.3%
                           -------- -------- --------
    Total Other Expenses     98,447   94,757  107,996       3.9%     (8.8%)
                           -------- -------- --------
    Income Before Income
     Taxes                   53,615   66,274   46,551     (19.1%)    15.2%
  Income Taxes               15,436   19,669   12,985     (21.5%)    18.9%
                           -------- -------- --------
    Net Income             $ 38,179 $ 46,605 $ 33,566     (18.1%)    13.7%
                           ======== ======== ========

SHARE AND PER-SHARE INFORMATION:
  Net income:
    Basic                  $   0.22 $   0.27 $   0.19     (18.5%)    15.8%
    Diluted                    0.22     0.27     0.19     (18.5%)    15.8%

  Cash dividends           $ 0.1500 $ 0.1475 $ 0.1500       1.7%        -
  Shareholders' equity         9.07     8.73     8.96       3.9%      1.2%
  Shareholders' equity
   (tangible)                  5.30     4.91     5.17       7.9%      2.5%

  Weighted average shares
   (basic)                  173,416  173,529  173,304      (0.1%)     0.1%
  Weighted average shares
   (diluted)                174,155  175,415  174,370      (0.7%)    (0.1%)
  Shares outstanding, end
   of period                173,503  173,648  173,394      (0.1%)     0.1%

SELECTED FINANCIAL RATIOS:
  Return on average assets     0.97%    1.25%    0.88%
  Return on average
   shareholders' equity        9.72%   12.29%    8.67%
  Return on average
   shareholders' equity
   (tangible)                 17.44%   22.55%   15.76%
  Net interest margin          3.56%    3.68%    3.62%
  Efficiency ratio            59.09%   56.83%   65.17%



                                Year Ended
                               December 31
                            -----------------
                              2007     2006   % Change
                            -------- -------- --------

Interest Income:
  Interest Income           $939,577 $864,507      8.7%
  Interest Expense           450,833  378,944     19.0%
                            -------- --------
    Net Interest Income      488,744  485,563      0.7%
  Provision for Loan Losses   15,063    3,498    330.6%
                            -------- --------
    Net Interest Income
     after Provision         473,681  482,065     (1.7%)
Other Income:
  Investment management and
   trust services             38,665   37,441      3.3%
  Service charges on
   deposit accounts           46,500   43,773      6.2%
  Other service charges and
   fees                       32,151   26,792     20.0%
  Gains on sale of mortgage
   loans                      14,294   21,086    (32.2%)
  Investment securities
   (losses) gains              1,740    7,439    (76.6%)
  Other                       14,674   13,344     10.0%
                            -------- --------
    Total Other Income       148,024  149,875     (1.2%)
Other Expenses:
  Salaries and employee
   benefits                  217,526  213,913      1.7%
  Operating risk loss         27,229    4,818    465.2%
  Net occupancy expense       39,965   36,493      9.5%
  Equipment expense           13,892   14,251     (2.5%)
  Data processing             12,755   12,228      4.3%
  Advertising                 11,334   10,638      6.5%
  Intangible amortization      8,334    7,907      5.4%
  Other                       74,420   65,743     13.2%
                            -------- --------
    Total Other Expenses     405,455  365,991     10.8%
                            -------- --------
    Income Before Income
     Taxes                   216,250  265,949    (18.7%)
  Income Taxes                63,532   80,422    (21.0%)
                            -------- --------
    Net Income              $152,718 $185,527    (17.7%)
                            ======== ========

SHARE AND PER-SHARE INFORMATION:
  Net income:
    Basic                   $   0.88 $   1.07    (17.8%)
    Diluted                     0.88     1.06    (17.0%)

  Cash dividends            $  0.598 $  0.581      2.9%
  Shareholders' equity
  Shareholders' equity
   (tangible)

  Weighted average shares
   (basic)                   173,295  172,830      0.3%
  Weighted average shares
   (diluted)                 174,386  174,872     (0.3%)
  Shares outstanding, end
   of period

SELECTED FINANCIAL RATIOS:
  Return on average assets      1.01%    1.30%
  Return on average
   shareholders' equity         9.98%   12.84%
  Return on average
   shareholders' equity
   (tangible)                  18.16%   23.87%
  Net interest margin           3.66%    3.82%
  Efficiency ratio             61.19%   56.00%


FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands


                                                Quarter Ended
                                  ----------------------------------------
                                              December 31, 2007
                                  ----------------------------------------
                                    Balance     Interest (1)    Rate (1)
                                  ------------  ------------  ------------
ASSETS
Interest-earning assets:
  Loans and leases                $ 11,082,957  $    204,281          7.32%
  Taxable investment securities      2,348,449        28,420          4.84%
  Tax-exempt investment
   securities                          494,790         6,462          5.22%
  Equity securities                    201,554         2,445          4.84%
                                  ------------  ------------  ------------
  Total Investment Securities        3,044,793        37,327          4.90%
  Loans held for sale                  101,788         1,730          6.79%
  Other interest-earning assets         24,136           291          4.78%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     14,253,674       243,629          6.80%
Noninterest-earning assets:
  Cash and due from banks              323,490
  Premises and equipment               191,502
  Other assets                         907,267
  Less: allowance for loan losses     (110,922)
                                  ------------
  Total Assets                    $ 15,565,011
                                  ============


LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
  Demand deposits                 $  1,721,831  $      6,598          1.52%
  Savings deposits                   2,179,753        12,046          2.19%
  Time deposits                      4,603,944        54,341          4.68%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits    8,505,528        72,985          3.40%
  Short-term borrowings              2,020,751        22,249          4.33%
  Federal Home Loan Bank advances
   and long-term debt                1,624,613        21,184          5.19%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                      12,150,892       116,418          3.80%
Noninterest-bearing liabilities:
  Demand deposits                    1,675,528
  Other                                180,907
                                  ------------
  Total Liabilities                 14,007,327
  Shareholders' equity               1,557,684
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 15,565,011
                                  ============

  Net interest income/net
   interest margin (fully taxable
   equivalent)                                       127,211          3.56%
                                                              ============
  Tax equivalent adjustment                           (3,560)
                                                ------------
  Net interest income                           $    123,651
                                                ============


                                                Quarter Ended
                                  ----------------------------------------
                                              December 31, 2006
                                  ----------------------------------------
                                    Balance     Interest (1)    Rate (1)
                                  ------------  ------------  ------------
ASSETS
Interest-earning assets:
  Loans and leases                $ 10,312,354  $    193,776          7.46%
  Taxable investment securities      2,332,116        26,226          4.50%
  Tax-exempt investment
   securities                          472,193         5,889          4.99%
  Equity securities                    165,261         2,209          5.31%
                                  ------------  ------------  ------------
  Total Investment Securities        2,969,570        34,324          4.62%
  Loans held for sale                  212,170         3,876          7.31%
  Other interest-earning assets         44,804           580          5.12%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     13,538,898       232,556          6.83%
Noninterest-earning assets:
  Cash and due from banks              321,246
  Premises and equipment               190,932
  Other assets                         897,979
  Less: allowance for loan losses     (107,842)
                                  ------------
  Total Assets                    $ 14,841,213
                                  ============


LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
  Demand deposits                 $  1,665,453  $      7,000          1.67%
  Savings deposits                   2,339,493        14,213          2.41%
  Time deposits                      4,406,070        49,501          4.46%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits    8,411,016        70,714          3.34%
  Short-term borrowings              1,790,556        22,613          4.96%
  Federal Home Loan Bank advances
   and long-term debt                1,177,177        14,476          4.88%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                      11,378,749       107,803          3.75%
Noninterest-bearing liabilities:
  Demand deposits                    1,776,686
  Other                                180,941
                                  ------------
  Total Liabilities                 13,336,376
  Shareholders' equity               1,504,837
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 14,841,213
                                  ============

  Net interest income/net
   interest margin (fully taxable
   equivalent)                                       124,753          3.68%
                                                              ============
  Tax equivalent adjustment                           (3,008)
                                                ------------
  Net interest income                           $    121,745
                                                ============


                                                Quarter Ended
                                  ----------------------------------------
                                             September 30, 2007
                                  ----------------------------------------
                                    Balance     Interest (1)    Rate (1)
                                  ------------  ------------  ------------
ASSETS
Interest-earning assets:
  Loans and leases                $ 10,857,636  $    205,747          7.52%
  Taxable investment securities      2,116,123        24,583          4.65%
  Tax-exempt investment
   securities                          499,389         6,377          5.11%
  Equity securities                    188,490         2,269          4.80%
                                  ------------  ------------  ------------
  Total Investment Securities        2,804,002        33,229          4.74%
  Loans held for sale                  159,492         2,694          6.76%
  Other interest-earning assets         34,536           432          4.91%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     13,855,666       242,102          6.95%
Noninterest-earning assets:
  Cash and due from banks              338,862
  Premises and equipment               190,175
  Other assets                         890,901
  Less: allowance for loan losses     (108,628)
                                  ------------
  Total Assets                    $ 15,166,976
                                  ============


LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
  Demand deposits                 $  1,729,357  $      7,630          1.75%
  Savings deposits                   2,259,231        13,680          2.40%
  Time deposits                      4,626,160        55,093          4.72%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits    8,614,748        76,403          3.52%
  Short-term borrowings              1,477,288        17,786          4.74%
  Federal Home Loan Bank advances
   and long-term debt                1,655,599        22,141          5.32%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                      11,747,635       116,330          3.93%
Noninterest-bearing liabilities:
  Demand deposits                    1,703,137
  Other                                179,391
                                  ------------
  Total Liabilities                 13,630,163
  Shareholders' equity               1,536,813
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 15,166,976
                                  ============

  Net interest income/net
   interest margin (fully taxable
   equivalent)                                       125,772          3.62%
                                                              ============
  Tax equivalent adjustment                           (3,362)
                                                ------------
  Net interest income                           $    122,410
                                                ============

(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and
    statutory interest expense disallowances.






AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:


                         Quarter Ended                 % Change from
               ----------------------------------- ----------------------
                                       September    December   September
               December 31 December 31     30          31          30
                  2007        2006        2007        2006        2007
               ----------- ----------- ----------- ----------  ----------

Loans, by type:
 Commercial -
  industrial
  and financial $2,988,996 $ 2,578,374 $ 2,908,049       15.9%        2.8%
 Commercial -
  agricultural     375,215     351,112     373,293        6.9%        0.5%
 Real estate -
  commercial
  mortgage       3,438,386   3,194,958   3,383,487        7.6%        1.6%
 Real estate -
  residential
  mortgage         831,825     688,932     769,381       20.7%        8.1%
 Real estate -
  home equity    1,486,367   1,462,912   1,454,947        1.6%        2.2%
 Real estate -
  construction   1,377,391   1,428,034   1,382,951       (3.5%)      (0.4%)
 Consumer          499,253     523,890     502,482       (4.7%)      (0.6%)
 Leasing and
  other             85,524      84,142      83,046        1.6%        3.0%
               ----------- ----------- -----------

 Total Loans,
  net of
  unearned
  income       $11,082,957 $10,312,354 $10,857,636        7.5%        2.1%
               =========== =========== ===========

Deposits, by type:
 Noninterest-
  bearing
  demand       $ 1,675,528 $ 1,776,686 $ 1,703,137       (5.7%)      (1.6%)
 Interest-bearing
  demand         1,721,831   1,665,453   1,729,357        3.4%       (0.4%)
 Savings
  deposits       2,179,753   2,339,493   2,259,231       (6.8%)      (3.5%)
 Time deposits   4,603,944   4,406,070   4,626,160        4.5%       (0.5%)
               ----------- ----------- -----------

 Total
  Deposits     $10,181,056 $10,187,702 $10,317,885       (0.1%)      (1.3%)
               =========== =========== ===========

Short-term borrowings, by type:
 Customer
  repurchase
  agreements   $   237,346 $   335,762 $   242,375      (29.3%)      (2.1%)
 Short-term
  promissory
  notes            478,018     270,864     446,182       76.5%        7.1%
 Federal funds
  purchased        975,732   1,128,439     756,360      (13.5%)      29.0%
 Other             329,655      55,491      32,371      494.1%      918.4%
               ----------- ----------- -----------

 Total Short-term
  borrowings   $ 2,020,751 $ 1,790,556 $ 1,477,288       12.9%       36.8%
               =========== =========== ===========


FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands


                                           Year Ended December 31
                                  ----------------------------------------
                                                    2007
                                  ------------  ------------  ------------
                                    Balance     Interest (1)    Rate (1)
                                  ------------  ------------  ------------
ASSETS
Interest-earning assets:
  Loans and leases                $ 10,736,566  $    805,881          7.51%
  Taxable investment securities      2,157,325        99,621          4.62%
  Tax-exempt investment
   securities                          496,820        25,856          5.20%
  Equity securities                    189,333         9,073          4.79%
                                  ------------  ------------  ------------
  Total Investment Securities        2,843,478       134,550          4.73%
  Loans held for sale                  166,437        11,501          6.91%
  Other interest-earning assets         33,015         1,630          4.90%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     13,779,496       953,562          6.93%
Noninterest-earning assets:
  Cash and due from banks              329,814
  Premises and equipment               190,910
  Other assets                         899,292
  Less: allowance for loan losses     (109,054)
                                  ------------
  Total Assets                    $ 15,090,458
                                  ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
  Demand deposits                 $  1,696,624  $     28,331          1.67%
  Savings deposits                   2,258,113        53,312          2.36%
  Time deposits                      4,553,994       212,752          4.67%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits    8,508,731       294,395          3.46%
  Short-term borrowings              1,574,495        73,983          4.66%
  Federal Home Loan Bank advances
   and long-term debt                1,579,527        82,455          5.22%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                      11,662,753       450,833          3.86%
Noninterest-bearing liabilities:
  Demand deposits                    1,713,863
  Other                                183,229
                                  ------------
  Total Liabilities                 13,559,845
  Shareholders' equity               1,530,613
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 15,090,458
                                  ============

  Net interest income/net
   interest margin (fully taxable
   equivalent)                                       502,729          3.66%
                                                              ============
  Tax equivalent adjustment                          (13,985)
                                                ------------
  Net interest income                           $    488,744
                                                ============




                                           Year Ended December 31
                                  ----------------------------------------
                                                    2006
                                  ------------  ------------  ------------
                                    Balance     Interest (1)    Rate (1)
                                  ------------  ------------  ------------
ASSETS
Interest-earning assets:
  Loans and leases                $  9,892,082  $    731,057          7.39%
  Taxable investment securities      2,268,209        97,652          4.31%
  Tax-exempt investment
   securities                          447,000        21,770          4.87%
  Equity securities                    154,653         7,341          4.75%
                                  ------------  ------------  ------------
  Total Investment Securities        2,869,862       126,763          4.42%
  Loans held for sale                  215,255        15,564          7.23%
  Other interest-earning assets         53,211         2,530          4.73%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     13,030,410       875,914          6.73%
Noninterest-earning assets:
  Cash and due from banks              335,935
  Premises and equipment               185,084
  Other assets                         852,186
  Less: allowance for loan losses     (105,934)
                                  ------------
  Total Assets                    $ 14,297,681
                                  ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
  Demand deposits                 $  1,673,407  $     25,112          1.50%
  Savings deposits                   2,340,402        51,394          2.19%
  Time deposits                      4,134,190       170,435          4.12%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits    8,147,999       246,941          3.03%
  Short-term borrowings              1,653,974        78,043          4.67%
  Federal Home Loan Bank advances
   and long-term debt                1,069,868        53,960          5.04%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                      10,871,841       378,944          3.48%
Noninterest-bearing liabilities:
  Demand deposits                    1,807,248
  Other                                173,799
                                  ------------
  Total Liabilities                 12,852,888
  Shareholders' equity               1,444,793
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 14,297,681
                                  ============

  Net interest income/net
   interest margin (fully taxable
   equivalent)                                       496,970          3.82%
                                                              ============
  Tax equivalent adjustment                          (11,407)
                                                ------------
  Net interest income                           $    485,563
                                                ============

(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and
    statutory interest expense disallowances.






AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:


                                         Year Ended
                                         December 31
                                 ---------------------------
                                     2007          2006        % Change
                                 ------------- ------------- ------------

Loans, by type:
  Commercial - industrial and
   financial                     $   2,844,359 $   2,478,893         14.7%
  Commercial - agricultural            368,998       335,596         10.0%
  Real estate - commercial
   mortgage                          3,337,762     3,073,830          8.6%
  Real estate - residential
   mortgage                            753,789       640,775         17.6%
  Real estate - home equity          1,454,753     1,417,259          2.6%
  Real estate - construction         1,384,548     1,345,191          2.9%
  Consumer                             506,201       522,761         (3.2%)
  Leasing and other                     86,156        77,777         10.8%
                                 ------------- -------------

  Total Loans, net of unearned
   income                        $  10,736,566 $   9,892,082          8.5%
                                 ============= =============

Deposits, by type:
  Noninterest-bearing demand     $   1,713,863 $   1,807,248         (5.2%)
  Interest-bearing demand            1,696,624     1,673,407          1.4%
  Savings deposits                   2,258,113     2,340,402         (3.5%)
  Time deposits                      4,553,994     4,134,190         10.2%
                                 ------------- -------------

  Total Deposits                 $  10,222,594 $   9,955,247          2.7%
                                 ============= =============

Short-term borrowings, by type:
  Customer repurchase agreements $     247,948 $     352,454        (29.7%)
  Short-term promissory notes          404,527       163,199        147.9%
  Federal funds purchased              808,358     1,095,875        (26.2%)
  Other                                113,662        42,446        167.8%
                                 ------------- -------------

  Total Short-term borrowings    $   1,574,495 $   1,653,974         (4.8%)
                                 ============= =============


FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands



                             Quarter Ended
                     -------------------------------      Year Ended
                      December   December   September     December 31
                         31         31         30    --------------------
                       2007       2006       2007       2007       2006
                     ---------  ---------  ---------  ---------  ---------
ALLOWANCE FOR CREDIT
 LOSSES:
  Balance at
   beginning of
   period            $ 109,435  $ 107,422  $ 106,892  $ 106,884  $  92,847
  Loans charged off     (5,068)    (2,722)    (2,805)   (13,739)    (6,969)
  Recoveries of
   loans previously
   charged off           1,042      1,116        742      4,001      4,517
                     ---------  ---------  ---------  ---------  ---------
  Net loans charged
   off                  (4,026)    (1,606)    (2,063)    (9,738)    (2,452)
  Provision for loan
   losses                6,800      1,068      4,606     15,063      3,498
  Allowance
   purchased                 -          -          -          -     12,991
                     ---------  ---------  ---------  ---------  ---------
  Balance at end of
   period            $ 112,209  $ 106,884  $ 109,435  $ 112,209  $ 106,884
                     =========  =========  =========  =========  =========

  Net charge-offs to
   average loans
   (annualized)           0.15%      0.06%      0.08%      0.09%      0.02%
                     =========  =========  =========  =========  =========


COMPONENTS OF
 ALLOWANCE FOR
 CREDIT LOSSES:
  Allowance for loan
   losses            $ 107,547  $ 106,884  $ 109,435
  Reserve for
   unfunded lending
   commitments (1)       4,662          -          -
                     ---------  ---------  ---------
  Allowance for
   credit losses     $ 112,209  $ 106,884  $ 109,435
                     =========  =========  =========

  (1) Reserve for unfunded commitments transferred to other liabilities as
      of December 31, 2007. Prior periods have not been restated.


NON-PERFORMING
 ASSETS:
  Non-accrual loans  $  76,140  $  33,113  $  71,043
  Accruing loans 90+
   days overdue         29,782     20,632     23,406
  Other real estate
   owned                14,934      4,103     12,536
                     ---------  ---------  ---------
  Total
   non-performing
   assets            $ 120,856  $  57,848  $ 106,985
                     =========  =========  =========

ASSET QUALITY
 RATIOS:
  Non-accrual loans
   to total loans         0.68%      0.32%      0.65%
  Non-performing
   assets to total
   loans and OREO         1.08%      0.56%      0.97%
  Non-performing
   assets to total
   assets                 0.76%      0.39%      0.69%
  Allowance for
   credit losses to
   loans outstanding      1.00%      1.03%      1.00%
  Allowance for
   credit losses to
   non-performing
   loans                   106%       199%       116%


Contact Information

  • Contact:
    Laura J. Wakeley
    Office: 717-291-2616