SOURCE: Fulton Financial Corporation

Fulton Financial Corporation

January 19, 2010 16:30 ET

Fulton Financial Reports 2009 Earnings

LANCASTER, PA--(Marketwire - January 19, 2010) - Fulton Financial Corporation (NASDAQ: FULT) reported net income available to common shareholders of $19.3 million, or 11 cents per diluted share, for the fourth quarter ended December 31, 2009, compared to a net loss available to common shareholders of $102.3 million, or 58 cents per diluted share, for the fourth quarter of 2008. Diluted net income per share increased 10.0 percent from the 10 cents reported in the third quarter of 2009.

The $121.7 million increase in the Corporation's earnings for the fourth quarter of 2009 in comparison to the same period in 2008 was primarily due to a $90.0 million goodwill impairment charge recorded in the fourth quarter of 2008, a $20.0 million reduction in provision for loan losses, and a $21.9 million decrease in other-than-temporary impairment charges related to investment securities.

For the year ended December 31, 2009, net income available to common shareholders was $53.8 million, or 31 cents per diluted share, compared to a net loss available to common shareholders of $6.1 million, or 3 cents per diluted share, for 2008.

The $59.8 million increase in the Corporation's earnings for the year ended December 31, 2009 in comparison to 2008 was primarily due to the $90.0 million goodwill impairment charge recorded in 2008 and a $51.9 million decrease in other-than-temporary impairment charges related to investment securities, partially offset by a $70.4 million increase in the provision for loan losses, a $22.0 million increase in Federal Deposit Insurance Corporation (FDIC) insurance expense and a $19.7 million increase in preferred stock dividends and discount accretion.

"Our performance in 2009 was characterized by significant deposit growth, good growth in non-interest income helped by our mortgage banking operations, continued tight control of expenses and, particularly in the second half of the year, stabilization of our credit quality metrics," said R. Scott Smith, Jr., chairman and chief executive officer. "On a linked quarter basis, our net interest margin increased nicely due to continued strong core deposit growth and a reduction in the cost of time deposits. Expenses were flat. The stabilization in our asset quality enabled us to maintain the same level of provision from the third to the fourth quarter. We believe we are positioned well for an upturn in economic activity."

Total assets at December 31, 2009 were $16.6 billion, an increase of 2.8 percent over December 31, 2008. Loans, net of unearned income, decreased $70.2 million, or 0.6 percent, to $12.0 billion, at December 31, 2009. The decrease was primarily due to a $291.1 million, or 22.9 percent, decrease in construction loans, a $51.1 million, or 3.0 percent, decrease in home equity loans and a $51.1 million, or 5.2 percent, decrease in residential mortgages. These decreases were partially offset by a $275.6 million, or 6.9 percent, increase in commercial mortgages and a $63.7 million, or 1.8 percent, increase in commercial loans. In comparison to September 30, 2009, loans, net of unearned income, were essentially unchanged. Increases in commercial mortgages of $105.6 million, or 2.5 percent, were offset by a $50.8 million, or 4.9 percent, decrease in construction loans, a $20.8 million, or 0.6 percent, decrease in commercial loans and a $15.0 million, or 4.0 percent, decrease in consumer loans.

Non-performing assets were $305.0 million, or 1.83 percent of total assets, at December 31, 2009, compared to $219.0 million, or 1.35 percent of total assets, at December 31, 2008 and $300.9 million, or 1.82 percent, at September 30, 2009. The $86.0 million, or 39.3 percent, increase in non-performing assets since December 31, 2008 occurred across all loan types as a result of the weakened economic conditions.

Annualized net charge-offs for the quarter ended December 31, 2009 were 0.97 percent of average total loans compared to 0.89 percent for the quarter ended December 31, 2008 and 0.81 percent for the quarter ended September 30, 2009. For the year ended December 31, 2009, net charge-offs were 0.94 percent of average total loans compared to 0.45 percent for 2008. The provision for loan losses decreased $20.0 million, or 30.7 percent, for the fourth quarter of 2009 as compared to the same period in 2008, and was unchanged from the third quarter of 2009. For the year ended December 31, 2009, the provision for loan losses was $190.0 million, a 58.8 percent increase from the $119.6 million recorded in 2008. The increase in the provision for loan losses compared to 2008 was due to the increase in the level of non-performing assets and net charge-offs, which required additional increases to the allowance for credit losses.

Total deposits increased $1.5 billion, or 14.7 percent, to $12.1 billion at December 31, 2009 compared to $10.6 billion at December 31, 2008. The increase was due to a $1.3 billion, or 24.4 percent, increase in demand and savings deposits and a $215.7 million, or 4.2 percent, increase in time deposits. In comparison to the third quarter of 2009, total deposits increased $65.2 million, or 0.5 percent, due to a $196.7 million, or 3.0 percent, increase in demand and savings deposits, offset by a $131.5 million, or 2.4 percent, decrease in time deposits.

Net interest income for the fourth quarter of 2009 increased $3.8 million, or 2.8 percent, compared to the same period in 2008 and increased $3.3 million, or 2.5 percent, from the third quarter of 2009. The Corporation's net interest margin was 3.67 percent for the fourth quarter of 2009, 3.68 percent for the fourth quarter of 2008 and 3.55 percent for third quarter of 2009.

Other income, excluding investment securities gains (losses), increased $2.4 million, or 6.2 percent, in the fourth quarter of 2009 compared to the same period in 2008. The increase was due to a $795,000 increase in gains on sales of mortgage loans, a $565,000 increase in investment management and trust services income and a $442,000 increase in other service charges and fees. In addition, in the fourth quarter of 2008, a $1.0 million mortgage servicing rights impairment charge was recorded as a decrease to mortgage servicing income. These increases were partially offset by a $1.0 million decrease in service charges on deposit accounts, primarily due to a decrease in cash management accounts. Compared to the third quarter of 2009, other income, excluding investment securities gains (losses), decreased $68,000, or 0.2 percent.

Investment securities losses in the fourth quarter of 2009 were $1.9 million compared to $28.3 million in the fourth quarter of 2008 and $45,000 in the third quarter of 2009. The following table summarizes the net realized gains and other-than-temporary impairment charges by type of security:

                                            Quarter Ended
                            ----------------------------------------------
                             Dec 31, 2009    Dec 31, 2008    Sep 30, 2009
                            --------------  --------------  --------------
                                            (in thousands)
Net realized gains
 (losses):
  Debt securities           $        2,289  $       (2,691) $        3,109
  Equity securities                     26             417            (359)
Other-than-temporary
 impairment charges:
  Debt securities                   (2,995)        (12,842)         (1,846)
  Equity securities                 (1,192)        (13,223)           (949)
                            --------------  --------------  --------------
    Investment securities
     gains (losses)         $       (1,872) $      (28,399) $          (45)
                            ==============  ==============  ==============

Other expenses, excluding the $90.0 million goodwill impairment charge recorded in the fourth quarter of 2008, decreased $504,000, or 0.5 percent, in the fourth quarter of 2009 compared to the same period in 2008. Compared to the third quarter of 2009, other expenses increased $560,000, or 0.6 percent.

Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company which has nearly 3,900 employees and operates more than 270 banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates: Fulton Bank, N.A., Lancaster, PA; Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Easton, PA; FNB Bank, N.A., Danville, PA; Delaware National Bank, Georgetown, DE; The Bank, Woodbury, NJ; Skylands Community Bank, Hackettstown, NJ and The Columbia Bank, Columbia, MD.

The Corporation's investment management and trust services are offered at all banks through Fulton Financial Advisors, a division of Fulton Bank, N.A. Residential mortgage lending is offered by all banks through Fulton Mortgage Company.

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," "intends," "forecasts," "projects," "will" and similar words and expressions are used in its press releases, 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. 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: asset quality and the impact on assets from adverse changes in the economy and in credit and other markets and resulting effects on credit risk and asset values; acquisition and growth strategies; market risk; changes or adverse developments in economic, political or regulatory conditions; a continuation or worsening of the current disruption in credit and other markets, including the lack of or reduced access to, and the abnormal functioning of markets for mortgage and other asset-backed securities and for commercial paper and other short-term borrowings; changes in the levels of FDIC deposit insurance premiums and assessments; the effect of competition and interest rates on net interest margin and net interest income; investment strategy and income growth; investment securities gains and losses; declines in the value of securities which may result in charges to earnings; changes in rates of deposit and loan growth; balances of risk-sensitive assets to risk-sensitive liabilities; salaries and 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" set forth in the Corporation's filings with the Securities and Exchange Commission.

2010

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

                                              December 31
                                      --------------------------
BALANCE SHEET DATA                        2009          2008     % Change
                                      ------------  ------------  -------

Total assets                          $ 16,635,635  $ 16,185,106      2.8%
Loans, net of unearned income           11,972,424    12,042,620     (0.6%)
Investment securities                    3,267,086     2,724,841     19.9%
Deposits                                12,097,914    10,551,916     14.7%
Shareholders' equity                     1,936,482     1,859,647      4.1%

                                            Quarter Ended
                                             December 31
                                      --------------------------
INCOME SUMMARY                            2009          2008     % Change
                                      ------------  ------------  -------

Interest income                       $    194,942  $    209,073     (6.8%)
Interest expense                           (58,849)      (76,732)   (23.3%)
                                      ------------  ------------
  Net interest income                      136,093       132,341      2.8%
Provision for loan losses                  (45,020)      (65,000)   (30.7%)
Investment securities gains (losses)        (1,872)      (28,339)    93.4%
Gain on sale of credit card portfolio            -             -        -
Other income                                41,157        38,750      6.2%
Goodwill impairment                              -       (90,000)     N/A
Other expenses                            (100,370)     (100,874)    (0.5%)
                                      ------------  ------------
  Income (loss) before income taxes         29,988      (113,122)     N/M
Income tax (expense) benefit                (5,606)       11,255      N/M
                                      ------------  ------------
  Net income (loss)                         24,382      (101,867)     N/M
Preferred stock dividends and discount
 accretion                                  (5,046)         (463)     N/M
                                      ------------  ------------
  Net income (loss) available to
   common shareholders                $     19,336  $   (102,330)     N/M
                                      ============  ============

PER COMMON SHARE:

Net income (loss):
     Basic                            $       0.11  $      (0.58)     N/M
     Diluted                                  0.11         (0.58)     N/M
Cash dividends                                0.03          0.15    (80.0%)

Shareholders' equity                          8.88          8.52      4.2%
Shareholders' equity (tangible)               5.75          5.33      7.9%

SELECTED FINANCIAL RATIOS:

Return on average assets                      0.59%        (2.51%)
Return on average common shareholders'
 equity                                       4.91%       (25.56%)
Return on average common shareholders'
 equity (tangible)                            7.96%        (4.71%)
Net interest margin                           3.67%         3.68%
Efficiency ratio                             54.61%        56.57%
Tangible common equity to tangible
 assets                                       6.30%         5.97%
Non-performing assets to total assets         1.83%         1.35%


                                              Year Ended
                                              December 31
                                      --------------------------
INCOME SUMMARY                            2009          2008     % Change
                                      ------------  ------------  -------

Interest income                       $    786,467  $    867,494     (9.3%)
Interest expense                          (265,513)     (343,346)   (22.7%)
                                      ------------  ------------
  Net interest income                      520,954       524,148     (0.6%)
Provision for loan losses                 (190,020)     (119,626)    58.8%
Investment securities gains (losses)         1,079       (58,241)     N/M
Gain on sale of credit card portfolio            -        13,910      N/A
Other income                               171,677       155,387     10.5%
Goodwill impairment                              -       (90,000)     N/A
Other expenses                            (414,358)     (406,625)     1.9%
                                      ------------  ------------
  Income (loss) before income taxes         89,332        18,953    371.3%
Income tax (expense) benefit               (15,408)      (24,570)   (37.3%)
                                      ------------  ------------
  Net income (loss)                         73,924        (5,617)     N/M
Preferred stock dividends and discount
 accretion                                 (20,169)         (463)     N/M
                                      ------------  ------------
  Net income (loss) available to
   common shareholders                $     53,755  $     (6,080)     N/M
                                      ============  ============

PER COMMON SHARE:

Net income (loss):
     Basic                            $       0.31  $      (0.03)     N/M
     Diluted                                  0.31         (0.03)     N/M
Cash dividends                                0.12          0.60    (80.0%)

Shareholders' equity                          8.88          8.52      4.2%
Shareholders' equity (tangible)               5.75          5.33      7.9%

SELECTED FINANCIAL RATIOS:

Return on average assets                      0.45%        (0.04%)
Return on average common shareholders'
 equity                                       3.54%        (0.38%)
Return on average common shareholders'
 equity (tangible)                            5.96%         9.33%
Net interest margin                           3.52%         3.70%
Efficiency ratio                             57.70%        56.31%
Tangible common equity to tangible
 assets                                       6.30%         5.97%
Non-performing assets to total assets         1.83%         1.35%



N/A - Not applicable
N/M - Not meaningful






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

                                     December 31  December 31  September 30
                                         2009         2008        2009
                                     -----------  -----------  -----------

ASSETS
  Cash and due from banks            $   284,508  $   331,164  $   252,004
  Loans held for sale                     85,384       95,840       84,766
  Other interest-earning assets           16,591       21,710       24,048
  Investment securities                3,267,086    2,724,841    3,274,399
  Loans, net of unearned income       11,972,424   12,042,620   11,968,246
  Allowance for loan losses             (256,698)    (173,946)    (234,511)
                                     -----------  -----------  -----------
       Net Loans                      11,715,726   11,868,674   11,733,735
  Premises and equipment                 204,203      202,657      204,520
  Accrued interest receivable             58,515       58,566       60,433
  Goodwill and intangible assets         552,563      557,833      554,041
  Other assets                           451,059      323,821      338,763
                                     -----------  -----------  -----------

         Total Assets                $16,635,635  $16,185,106  $16,526,709
                                     ===========  ===========  ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
  Deposits                           $12,097,914  $10,551,916  $12,032,680
  Short-term borrowings                  868,940    1,762,770      722,618
  Federal Home Loan Bank advances
   and long-term debt                  1,540,773    1,787,797    1,650,870
  Other liabilities                      191,526      222,976      196,778
                                     -----------  -----------  -----------
       Total Liabilities              14,699,153   14,325,459   14,602,946
  Preferred stock                        370,290      368,944      369,950
  Common shareholders' equity          1,566,192    1,490,703    1,553,813
                                     -----------  -----------  -----------
       Total Shareholders' Equity      1,936,482    1,859,647    1,923,763
                                     -----------  -----------  -----------
         Total Liabilities and
          Shareholders' Equity       $16,635,635  $16,185,106  $16,526,709
                                     ===========  ===========  ===========

LOANS, DEPOSITS AND SHORT-TERM
 BORROWINGS DETAIL:
Loans, by type:
  Real estate - commercial mortgage  $ 4,292,300  $ 4,016,700  $ 4,186,654
  Commercial - industrial, financial
   and agricultural                    3,699,198    3,635,544    3,719,966
  Real estate - home equity            1,644,260    1,695,398    1,651,711
  Real estate - construction             978,267    1,269,330    1,029,079
  Real estate - residential mortgage     921,741      972,797      930,207
  Consumer                               360,698      365,692      375,685
  Leasing and other                       75,960       87,159       74,944
                                     -----------  -----------  -----------
  Total Loans, net of unearned
   income                            $11,972,424  $12,042,620  $11,968,246
                                     ===========  ===========  ===========
Deposits, by type:
  Noninterest-bearing demand         $ 2,012,837  $ 1,653,440  $ 1,932,382
  Interest-bearing demand              2,022,746    1,789,833    1,922,648
  Savings deposits                     2,748,467    2,010,526    2,732,284
  Time deposits                        5,313,864    5,098,117    5,445,366
                                     -----------  -----------  -----------
  Total Deposits                     $12,097,914  $10,551,916  $12,032,680
                                     ===========  ===========  ===========
Short-term borrowings, by type:
  Federal funds purchased            $   378,067  $ 1,147,673  $   210,865
  Customer repurchase agreements         259,459      255,796      252,842
  Customer short-term promissory
   notes                                 231,414      356,788      258,911
  Overnight borrowings and other               -        2,513            -
                                     -----------  -----------  -----------
  Total Short-term borrowings        $   868,940  $ 1,762,770  $   722,618
                                     ===========  ===========  ===========


  N/A - Not Applicable



                                         % Change from
                                     ------------------------
                                     December 31 September 30
                                         2008        2009
                                     -----------  -----------

ASSETS
  Cash and due from banks                  (14.1%)       12.9%
  Loans held for sale                      (10.9%)        0.7%
  Other interest-earning assets            (23.6%)      (31.0%)
  Investment securities                     19.9%        (0.2%)
  Loans, net of unearned income             (0.6%)          -
  Allowance for loan losses                 47.6%         9.5%
       Net Loans                            (1.3%)       (0.2%)
  Premises and equipment                     0.8%        (0.2%)
  Accrued interest receivable               (0.1%)       (3.2%)
  Goodwill and intangible assets            (0.9%)       (0.3%)
  Other assets                              39.3%        33.1%
         Total Assets                        2.8%         0.7%

LIABILITIES AND SHAREHOLDERS' EQUITY
  Deposits                                  14.7%         0.5%
  Short-term borrowings                    (50.7%)       20.2%
  Federal Home Loan Bank advances
   and long-term debt                      (13.8%)       (6.7%)
  Other liabilities                        (14.1%)       (2.7%)
       Total Liabilities                     2.6%         0.7%
  Preferred stock                            0.4%         0.1%
  Common shareholders' equity                5.1%         0.8%
       Total Shareholders' Equity            4.1%         0.7%
         Total Liabilities and
          Shareholders' Equity               2.8%         0.7%

LOANS, DEPOSITS AND SHORT-TERM
 BORROWINGS DETAIL:
Loans, by type:
  Real estate - commercial mortgage          6.9%         2.5%
  Commercial - industrial, financial
   and agricultural                          1.8%        (0.6%)
  Real estate - home equity                 (3.0%)       (0.5%)
  Real estate - construction               (22.9%)       (4.9%)
  Real estate - residential mortgage        (5.2%)       (0.9%)
  Consumer                                  (1.4%)       (4.0%)
  Leasing and other                        (12.8%)        1.4%
  Total Loans, net of unearned
   income                                   (0.6%)          -
Deposits, by type:
  Noninterest-bearing demand                21.7%         4.2%
  Interest-bearing demand                   13.0%         5.2%
  Savings deposits                          36.7%         0.6%
  Time deposits                              4.2%        (2.4%)
  Total Deposits                            14.7%         0.5%
Short-term borrowings, by type:
  Federal funds purchased                  (67.1%)       79.3%
  Customer repurchase agreements             1.4%         2.6%
  Customer short-term promissory
   notes                                   (35.1%)      (10.6%)
  Overnight borrowings and other             N/A          N/A
  Total Short-term borrowings              (50.7%)       20.2%


  N/A - Not Applicable




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

                             Quarter Ended              % Change from
                    -------------------------------  --------------------
                     Dec 31     Dec 31     Sep 30     Dec 31     Sep 30
                      2009       2008       2009       2008       2009
                    ---------  ---------  ---------  ---------  ---------

Interest Income:
  Interest income   $ 194,942  $ 209,073  $ 197,861       (6.8%)     (1.5%)
  Interest expense     58,849     76,732     65,060      (23.3%)     (9.5%)
                    ---------  ---------  ---------
    Net Interest
     Income           136,093    132,341    132,801        2.8%       2.5%
  Provision for loan
   losses              45,020     65,000     45,000      (30.7%)        -
                    ---------  ---------  ---------
    Net Interest
     Income after
     Provision         91,073     67,341     87,801       35.2%       3.7%
Other Income:
  Service charges on
   deposit accounts    15,174     16,177     15,321       (6.2%)     (1.0%)
  Other service
   charges and fees     9,369      8,927     10,003        5.0%      (6.3%)
  Investment
   management and
   trust services       8,106      7,541      8,191        7.5%      (1.0%)
  Gains on sales of
   mortgage loans       3,880      3,085      2,778       25.8%      39.7%
  Investment
   securities gains
   (losses)            (1,872)   (28,339)       (45)      93.4%       N/M
  Gain on sale of
   credit card
   portfolio                -          -          -          -          -
  Other                 4,628      3,020      4,932       53.2%      (6.2%)
                    ---------  ---------  ---------
    Total Other
     Income            39,285     10,411     41,180      277.3%      (4.6%)
Other Expenses:
  Salaries and
   employee benefits   53,623     48,771     54,086        9.9%      (0.9%)
  Net occupancy
   expense             10,612     11,240     10,165       (5.6%)      4.4%
  FDIC insurance
   expense              4,841      1,878      5,244      157.8%      (7.7%)
  Equipment expense     3,160      3,425      3,281       (7.7%)     (3.7%)
  Marketing             2,638      3,746      1,982      (29.6%)     33.1%
  Data processing       2,228      3,209      3,121      (30.6%)    (28.6%)
  Intangible
   amortization         1,421      1,776      1,429      (20.0%)     (0.6%)
  Operating risk
   loss                   867      5,200        338      (83.3%)    156.5%
  Goodwill
   impairment               -     90,000          -        N/A          -
  Other                20,980     21,629     20,164       (3.0%)      4.0%
                    ---------  ---------  ---------
    Total Other
     Expenses         100,370    190,874     99,810      (47.4%)      0.6%
                    ---------  ---------  ---------
    Income (Loss)
     Before Income
     Taxes             29,988   (113,122)    29,171        N/M        2.8%
  Income tax expense
   (benefit)            5,606    (11,255)     5,825        N/M       (3.8%)
                    ---------  ---------  ---------
    Net Income
     (Loss)            24,382   (101,867)    23,346        N/M        4.4%
  Preferred stock
   dividends and
   discount
   accretion           (5,046)      (463)    (5,046)       N/M          -
                    ---------  ---------  ---------
    Net Income
     (Loss)
     Available to
     Common
     Shareholders   $  19,336  $(102,330) $  18,300        N/M        5.7%
                    =========  =========  =========

PER COMMON SHARE:
  Net income (loss):
    Basic           $    0.11  $   (0.58) $    0.10        N/M       10.0%
    Diluted              0.11      (0.58)      0.10        N/M       10.0%

  Cash dividends    $    0.03  $    0.15  $    0.03      (80.0%)        -
  Shareholders'
   equity                8.88       8.52       8.82        4.2%       0.7%
  Shareholders'
   equity (tangible)     5.75       5.33       5.68        7.9%       1.2%

  Weighted average
   shares (basic)     175,988    174,889    175,783        0.6%       0.1%
  Weighted average
   shares (diluted)   176,413    174,889    176,078        0.9%       0.2%
  Shares
   outstanding, end
   of period          176,364    175,044    176,149        0.8%       0.1%

SELECTED FINANCIAL
 RATIOS:
  Return on average
   assets                0.59%     (2.51%)     0.56%
  Return on average
   common
   shareholders'
   equity                4.91%    (25.56%)     4.78%
  Return on average
   common
   shareholders'
   equity (tangible)     7.96%     (4.71%)      7.91%
  Net interest
   margin                3.67%      3.68%      3.55%
  Efficiency ratio      54.61%     56.57%     55.33%


N/A - Not applicable
N/M - Not meaningful

                         Year Ended
                        December 31
                    --------------------
                      2009       2008     % Change
                    ---------  ---------  ---------

Interest Income:
  Interest income   $ 786,467  $ 867,494       (9.3%)
  Interest expense    265,513    343,346      (22.7%)
                    ---------  ---------
    Net Interest
     Income           520,954    524,148       (0.6%)
  Provision for loan
   losses             190,020    119,626       58.8%
                    ---------  ---------
    Net Interest
     Income after
     Provision        330,934    404,522      (18.2%)
Other Income:
  Service charges on
   deposit accounts    60,450     61,640       (1.9%)
  Other service
   charges and fees    37,321     36,247        3.0%
  Investment
   management and
   trust services      32,076     32,734       (2.0%)
  Gains on sales of
   mortgage loans      22,644     10,332      119.2%
  Investment
   securities gains
   (losses)             1,079    (58,241)       N/M
  Gain on sale of
   credit card
   portfolio                -     13,910        N/A
  Other                19,186     14,434       32.9%
                    ---------  ---------
    Total Other
     Income           172,756    111,056       55.6%
Other Expenses:
  Salaries and
   employee benefits  218,812    213,557        2.5%
  Net occupancy
   expense             42,040     42,239       (0.5%)
  FDIC insurance
   expense             26,579      4,562      482.6%
  Equipment expense    12,820     13,332       (3.8%)
  Marketing             8,915     13,267      (32.8%)
  Data processing      11,328     12,813      (11.6%)
  Intangible
   amortization         5,747      7,162      (19.8%)
  Operating risk
   loss                 7,550     24,308      (68.9%)
  Goodwill
   impairment               -     90,000        N/A
  Other                80,567     75,385        6.9%
                    ---------  ---------
    Total Other
     Expenses         414,358    496,625      (16.6%)
                    ---------  ---------
    Income (Loss)
     Before Income
     Taxes             89,332     18,953      371.3%
  Income tax expense
   (benefit)           15,408     24,570      (37.3%)
                    ---------  ---------
    Net Income
     (Loss)            73,924     (5,617)       N/M
  Preferred stock
   dividends and
   discount
   accretion          (20,169)      (463)       N/M
                    ---------  ---------            
    Net Income
     (Loss)
     Available to
     Common
     Shareholders   $  53,755  $  (6,080)       N/M
                    =========  =========

PER COMMON SHARE:
  Net income (loss):
    Basic           $    0.31  $   (0.03)       N/M
    Diluted              0.31      (0.03)       N/M

  Cash dividends    $    0.12  $    0.60      (80.0%)
  Shareholders'
   equity                8.88       8.52        4.2%
  Shareholders'
   equity (tangible)     5.75       5.33        7.9%

  Weighted average
   shares (basic)     175,662    174,236        0.8%
  Weighted average
   shares (diluted)   175,943    174,236        1.0%
  Shares
   outstanding, end
   of period          176,364    175,044        0.8%

SELECTED FINANCIAL
 RATIOS:
  Return on average
   assets                0.45%     (0.04%)
  Return on average
   common
   shareholders'
   equity                3.54%     (0.38%)
  Return on average
   common
   shareholders'
   equity (tangible)     5.96%      9.33%
  Net interest
   margin                3.52%      3.70%
  Efficiency ratio      57.70%     56.31%


N/A - Not applicable
N/M - Not meaningful



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

                                               Quarter Ended
                                  ----------------------------------------
                                              December 31, 2009
                                  ----------------------------------------

                                    Average                      Yield/
                                    Balance     Interest (1)      Rate
                                  ------------  ------------  ------------
ASSETS
Interest-earning assets:
  Loans, net of unearned income   $ 11,989,314  $    163,972          5.43%
  Taxable investment securities      2,580,754        27,297          4.23%
  Tax-exempt investment
   securities                          406,088         5,767          5.68%
  Equity securities                    144,071           851          2.35%
                                  ------------  ------------  ------------
  Total Investment Securities        3,130,913        33,915          4.33%
  Loans held for sale                   74,438           951          5.11%
  Other interest-earning assets         22,745            56          0.98%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     15,217,410       198,894          5.20%
Noninterest-earning assets:
  Cash and due from banks              318,472
  Premises and equipment               203,699
  Other assets                         987,094
  Less: allowance for loan losses     (250,871)
                                  ------------
  Total Assets                    $ 16,475,804
                                  ============


LIABILITIES AND SHAREHOLDERS'
 EQUITY
Interest-bearing liabilities:
  Demand deposits                 $  1,969,681  $      2,099          0.42%
  Savings deposits                   2,772,340         5,546          0.79%
  Time deposits                      5,415,169        31,454          2.30%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits   10,157,190        39,099          1.53%
  Short-term borrowings                618,087           584          0.37%
  Federal Home Loan Bank advances
   and long-term debt                1,589,839        19,166          4.78%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                      12,365,116        58,849          1.89%
Noninterest-bearing liabilities:
  Demand deposits                    1,991,210
  Other                                185,817
                                  ------------
  Total Liabilities                 14,542,143
  Shareholders' equity               1,933,661
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 16,475,804
                                  ============

  Net interest income/net
   interest margin (fully taxable
   equivalent)                                       140,045          3.67%
                                                              ============
  Tax equivalent adjustment                           (3,952)
                                                ------------
  Net interest income                           $    136,093
                                                ============




                                               Quarter Ended
                                  ----------------------------------------
                                              December 31, 2008
                                  ----------------------------------------

                                    Average                      Yield/
                                    Balance     Interest (1)      Rate
                                  ------------  ------------  ------------
ASSETS
Interest-earning assets:
  Loans, net of unearned income   $ 11,960,067  $    178,096          5.93%
  Taxable investment securities      2,086,808        26,106          5.00%
  Tax-exempt investment
   securities                          516,045         7,073          5.48%
  Equity securities                    154,660           797          2.05%
                                  ------------  ------------  ------------
  Total Investment Securities        2,757,513        33,976          4.93%
  Loans held for sale                   64,096           975          6.08%
  Other interest-earning assets         23,889           124          2.08%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     14,805,565       213,171          5.74%
Noninterest-earning assets:
  Cash and due from banks              317,571
  Premises and equipment               200,918
  Other assets                         960,606
  Less: allowance for loan losses     (150,266)
                                  ------------
  Total Assets                    $ 16,134,394
                                  ============


LIABILITIES AND SHAREHOLDERS'
 EQUITY
Interest-bearing liabilities:
  Demand deposits                 $  1,727,874  $      2,630          0.61%
  Savings deposits                   2,070,931         6,124          1.18%
  Time deposits                      4,818,068        41,553          3.43%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits    8,616,873        50,307          2.32%
  Short-term borrowings              2,251,571         5,998          1.05%
  Federal Home Loan Bank advances
   and long-term debt                1,798,688        20,427          4.53%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                      12,667,132        76,732          2.41%
Noninterest-bearing liabilities:
  Demand deposits                    1,643,118
  Other                                196,004
                                  ------------
  Total Liabilities                 14,506,254
  Shareholders' equity               1,628,140
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 16,134,394
                                  ============

  Net interest income/net
   interest margin (fully taxable
   equivalent)                                       136,439          3.68%
                                                              ============
  Tax equivalent adjustment                           (4,098)
                                                ------------
  Net interest income                           $    132,341
                                                ============




                                               Quarter Ended
                                  ----------------------------------------
                                             September 30, 2009
                                  ----------------------------------------

                                    Average                      Yield/
                                    Balance     Interest (1)      Rate
                                  ------------  ------------  ------------
ASSETS
Interest-earning assets:
  Loans, net of unearned income   $ 11,913,581  $    163,915          5.46%
  Taxable investment securities      2,722,751        29,376          4.31%
  Tax-exempt investment
   securities                          436,209         6,101          5.59%
  Equity securities                    132,176           632          1.90%
                                  ------------  ------------  ------------
  Total Investment Securities        3,291,136        36,109          4.39%
  Loans held for sale                  102,367         1,550          6.06%
  Other interest-earning assets         24,348            51          0.83%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     15,331,432       201,625          5.23%
Noninterest-earning assets:
  Cash and due from banks              301,875
  Premises and equipment               204,416
  Other assets                         959,628
  Less: allowance for loan losses     (234,446)
                                  ------------
  Total Assets                    $ 16,562,905
                                  ============


LIABILITIES AND SHAREHOLDERS'
 EQUITY
Interest-bearing liabilities:
  Demand deposits                 $  1,883,087  $      2,119          0.45%
  Savings deposits                   2,556,717         5,187          0.80%
  Time deposits                      5,554,349        36,519          2.61%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits    9,994,153        43,825          1.74%
  Short-term borrowings                863,281           835          0.38%
  Federal Home Loan Bank advances
   and long-term debt                1,695,427        20,400          4.77%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                      12,552,861        65,060          2.06%
Noninterest-bearing liabilities:
  Demand deposits                    1,922,460
  Other                                198,314
                                  ------------
  Total Liabilities                 14,673,635
  Shareholders' equity               1,889,270
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 16,562,905
                                  ============

  Net interest income/net
   interest margin (fully taxable
   equivalent)                                       136,565          3.55%
                                                              ============
  Tax equivalent adjustment                           (3,764)
                                                ------------
  Net interest income                           $    132,801
                                                ============

  (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
                                     --------------------------------------
                                     December 31  December 31  September 30
                                         2009         2008         2009
                                     ------------ ------------ ------------

Loans, by type:
  Real estate - commercial mortgage  $  4,240,436 $  3,965,734 $  4,158,802
  Commercial - industrial, financial
   and agricultural                     3,713,926    3,588,657    3,667,854
  Real estate - home equity             1,645,524    1,673,570    1,651,400
  Real estate - construction            1,018,057    1,284,289    1,050,359
  Real estate - residential mortgage      925,660      977,582      933,943
  Consumer                                370,258      378,686      371,676
  Leasing and other                        75,453       91,549       79,547
                                     ------------ ------------ ------------

  Total Loans, net of unearned
   income                            $ 11,989,314 $ 11,960,067 $ 11,913,581
                                     ============ ============ ============

Deposits, by type:
  Noninterest-bearing demand         $  1,991,210 $  1,643,118 $  1,922,460
  Interest-bearing demand               1,969,681    1,727,874    1,883,087
  Savings deposits                      2,772,340    2,070,931    2,556,717
  Time deposits                         5,415,169    4,818,068    5,554,349
                                     ------------ ------------ ------------

  Total Deposits                     $ 12,148,400 $ 10,259,991 $ 11,916,613
                                     ============ ============ ============

Short-term borrowings, by type:
  Federal funds purchased            $    101,349 $  1,426,618 $    348,444
  Customer repurchase agreements          260,962      244,633      254,789
  Customer short-term promissory
   notes                                  255,776      391,781      259,534
  Overnight borrowings and other                -      188,539          514
                                     ------------ ------------ ------------

  Total Short-term borrowings        $    618,087 $  2,251,571 $    863,281
                                     ============ ============ ============




                                           % Change from
                                     ------------------------
                                     December 31  September 30
                                         2008         2009
                                     -----------  -----------

Loans, by type:
  Real estate - commercial mortgage         6.9%         2.0%
  Commercial - industrial, financial
   and agricultural                         3.5%         1.3%
  Real estate - home equity                (1.7%)       (0.4%)
  Real estate - construction              (20.7%)       (3.1%)
  Real estate - residential mortgage       (5.3%)       (0.9%)
  Consumer                                 (2.2%)       (0.4%)
  Leasing and other                       (17.6%)       (5.1%)

  Total Loans, net of unearned
   income                                   0.2%         0.6%

Deposits, by type:
  Noninterest-bearing demand               21.2%         3.6%
  Interest-bearing demand                  14.0%         4.6%
  Savings deposits                         33.9%         8.4%
  Time deposits                            12.4%        (2.5%)

  Total Deposits                           18.4%         1.9%

Short-term borrowings, by type:
  Federal funds purchased                 (92.9%)      (70.9%)
  Customer repurchase agreements            6.7%         2.4%
  Customer short-term promissory
   notes                                  (34.7%)       (1.4%)
  Overnight borrowings and other            N/A          N/A

  Total Short-term borrowings             (72.5%)      (28.4%)

N/A - Not applicable





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

                                            Year Ended December 31
                                  ----------------------------------------
                                                    2009
                                  ----------------------------------------
                                    Average
                                    Balance     Interest (1)   Yield/Rate
                                  ------------  ------------  ------------
ASSETS
Interest-earning assets:
  Loans, net of unearned income   $ 11,975,899  $    655,384          5.47%
  Taxable investment securities      2,548,810       112,945          4.43%
  Tax-exempt investment
   securities                          451,828        25,180          5.57%
  Equity securities                    137,070         2,917          2.13%
                                  ------------  ------------  ------------
  Total Investment Securities        3,137,708       141,042          4.50%
  Loans held for sale                  105,067         5,390          5.13%
  Other interest-earning assets         21,255           196          0.92%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     15,239,929       802,012          5.27%
Noninterest-earning assets:
  Cash and due from banks              305,410
  Premises and equipment               203,865
  Other assets                         952,597
  Less: allowance for loan losses     (221,128)
                                  ------------
  Total Assets                    $ 16,480,673
                                  ============

LIABILITIES AND SHAREHOLDERS'
 EQUITY
Interest-bearing liabilities:
  Demand deposits                 $  1,857,081  $      7,995          0.43%
  Savings deposits                   2,425,864        19,487          0.80%
  Time deposits                      5,507,090       153,344          2.78%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits    9,790,035       180,826          1.85%
  Short-term borrowings              1,043,279         3,777          0.36%
  Federal Home Loan Bank advances
   and long-term debt                1,712,630        80,910          4.72%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                      12,545,944       265,513          2.12%
Noninterest-bearing liabilities:
  Demand deposits                    1,847,090
  Other                                198,078
                                  ------------
  Total Liabilities                 14,591,112
  Shareholders' equity               1,889,561
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 16,480,673
                                  ============

  Net interest income/net
   interest margin (fully taxable
   equivalent)                                       536,499          3.52%
                                                              ============
  Tax equivalent adjustment                          (15,545)
                                                ------------
  Net interest income                           $    520,954
                                                ============



                                            Year Ended December 31
                                  ----------------------------------------
                                                    2008
                                  ----------------------------------------
                                    Average
                                    Balance     Interest (1)   Yield/Rate
                                  ------------  ------------  ------------
ASSETS
Interest-earning assets:
  Loans, net of unearned income   $ 11,595,243  $    732,533          6.32%
  Taxable investment securities      2,228,204       110,220          4.95%
  Tax-exempt investment
   securities                          512,920        27,904          5.44%
  Equity securities                    183,216         6,520          3.56%
                                  ------------  ------------  ------------
  Total Investment Securities        2,924,340       144,644          4.95%
  Loans held for sale                   93,085         5,701          6.12%
  Other interest-earning assets         21,503           586          2.71%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     14,634,171       883,464          6.04%
Noninterest-earning assets:
  Cash and due from banks              318,524
  Premises and equipment               197,967
  Other assets                         951,270
  Less: allowance for loan losses     (125,061)
                                  ------------
  Total Assets                    $ 15,976,871
                                  ============

LIABILITIES AND SHAREHOLDERS'
 EQUITY
Interest-bearing liabilities:
  Demand deposits                 $  1,714,029  $     13,168          0.77%
  Savings deposits                   2,152,158        28,520          1.32%
  Time deposits                      4,502,399       170,426          3.79%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits    8,368,586       212,114          2.53%
  Short-term borrowings              2,336,526        50,091          2.12%
  Federal Home Loan Bank advances
   and long-term debt                1,822,115        81,141          4.45%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                      12,527,227       343,346          2.74%
Noninterest-bearing liabilities:
  Demand deposits                    1,647,942
  Other                                191,874
                                  ------------
  Total Liabilities                 14,367,043
  Shareholders' equity               1,609,828
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 15,976,871
                                  ============

  Net interest income/net
   interest margin (fully taxable
   equivalent)                                       540,118          3.70%
                                                              ============
  Tax equivalent adjustment                          (15,970)
                                                ------------
  Net interest income                           $    524,148
                                                ============

  (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
                                     -------------------------
                                         2009         2008       % Change
                                     ------------ ------------ -----------

Loans, by type:
  Real estate - commercial mortgage  $  4,135,486 $  3,747,240       10.4%
  Commercial - industrial, financial
   and agricultural                     3,673,654    3,525,629        4.2%
  Real estate - home equity             1,665,834    1,597,207        4.3%
  Real estate - construction            1,111,863    1,320,418      (15.8%)
  Real estate - residential mortgage      938,187      918,658        2.1%
  Consumer                                368,651      399,281       (7.7%)
  Leasing and other                        82,224       86,810       (5.3%)
                                     ------------ ------------

  Total Loans, net of unearned
   income                            $ 11,975,899 $ 11,595,243        3.3%
                                     ============ ============

Deposits, by type:
  Noninterest-bearing demand         $  1,847,090 $  1,647,942       12.1%
  Interest-bearing demand               1,857,081    1,714,029        8.3%
  Savings deposits                      2,425,864    2,152,158       12.7%
  Time deposits                         5,507,090    4,502,399       22.3%
                                     ------------ ------------

  Total Deposits                     $ 11,637,125 $ 10,016,528       16.2%
                                     ============ ============

Short-term borrowings, by type:
  Federal funds purchased            $    453,268 $  1,328,888      (65.9%)
  Customer short-term promissory
   notes                                  287,231      454,473      (36.8%)
  Customer repurchase agreements          254,662      227,130       12.1%
  Federal Reserve Bank borrowings          46,137            -        N/A
  Overnight borrowings and other            1,981      326,035      (99.4%)
                                     ------------ ------------

  Total Short-term borrowings        $  1,043,279 $  2,336,526      (55.3%)
                                     ============ ============

  N/A - Not applicable




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


                              Quarter Ended
                     -------------------------------      Year Ended
                     December   December   September      December 31
                        31         31         30      ---------  ---------
                       2009       2008       2009       2009       2008
                     ---------  ---------  ---------  ---------  ---------
ALLOWANCE FOR CREDIT
 LOSSES:
  Balance at
   beginning of
   period            $ 241,721  $ 141,829  $ 220,954  $ 180,137  $ 112,209
  Loans charged off:
    Real estate -
     construction      (12,017)   (11,877)    (9,356)   (44,909)   (14,891)
    Commercial -
     industrial,
     agricultural
     and financial     (10,078)    (6,392)    (7,787)   (34,761)   (18,592)
    Real estate -
     commercial
     mortgage           (2,055)    (4,688)    (3,554)   (15,530)    (7,516)
    Real estate -
     residential
     mortgage and
     home equity        (2,224)    (2,899)    (1,065)    (7,056)    (5,868)
    Consumer            (3,103)    (1,450)    (2,527)   (10,770)    (5,188)
    Leasing and
     other              (1,366)    (1,033)    (1,637)    (6,048)    (4,804)
                     ---------  ---------  ---------  ---------  ---------
    Total loans
     charged off       (30,843)   (28,339)   (25,926)  (119,074)   (56,859)
  Recoveries of
   loans charged
   off:
    Real estate -
     construction          842          -         26      1,194         17
    Commercial -
     industrial,
     agricultural
     and financial          25        770        444      1,679      1,795
    Real estate -
     commercial
     mortgage                8         56        493        536        286
    Real estate -
     residential
     mortgage and
     home equity             1          5          1        150        143
    Consumer               384        465        354      1,678      1,487
    Leasing and
     other                 395        351        375      1,233      1,433
                     ---------  ---------  ---------  ---------  ---------
    Recoveries of
     loans
     previously
     charged off         1,655      1,647      1,693      6,470      5,161
                     ---------  ---------  ---------  ---------  ---------
  Net loans charged
   off                 (29,188)   (26,692)   (24,233)  (112,604)   (51,698)
  Provision for loan
   losses               45,020     65,000     45,000    190,020    119,626
                     ---------  ---------  ---------  ---------  ---------
  Balance at end of
   period            $ 257,553  $ 180,137  $ 241,721  $ 257,553  $ 180,137
                     =========  =========  =========  =========  =========

  Net charge-offs to
   average loans
   (annualized)           0.97%      0.89%      0.81%      0.94%      0.45%
                     =========  =========  =========  =========  =========

NON-PERFORMING
 ASSETS:
  Non-accrual loans  $ 238,360  $ 161,962  $ 228,961
  Loans 90 days past
   due and accruing     43,359     35,177     52,797
                     ---------  ---------  ---------
    Total
     non-performing
     loans             281,719    197,139    281,758
  Other real estate
   owned                23,309     21,855     19,151
                     ---------  ---------  ---------
  Total
   non-performing
   assets            $ 305,028  $ 218,994  $ 300,909
                     =========  =========  =========

NON-PERFORMING
 LOANS, BY TYPE:
  Real estate -
   construction      $  92,841  $  80,083  $ 104,789
  Commercial -
   industrial,
   agricultural and
   financial            69,604     40,294     63,217
  Real estate -
   commercial
   mortgage             61,052     41,745     54,930
  Real estate -
   residential
   mortgage and home
   equity               45,748     26,304     46,192
  Consumer              12,319      8,374     12,292
  Leasing                  155        339        338
                     ---------  ---------  ---------
  Total
   non-performing
   loans             $ 281,719  $ 197,139  $ 281,758
                     =========  =========  =========

ASSET QUALITY
 RATIOS:
  Non-accrual loans
   to total loans         1.99%      1.34%      1.91%
  Non-performing
   assets to total
   loans and OREO         2.54%      1.82%      2.51%
  Non-performing
   assets to total
   assets                 1.83%      1.35%      1.82%
  Allowance for
   credit losses to
   loans outstanding      2.15%      1.50%      2.02%
  Allowance for
   credit losses to
   non-performing
   loans                 91.42%     91.38%     85.79%
  Non-performing
   assets to
   tangible common
   shareholders'
   equity and
   allowance for
   credit losses         23.99%     19.68%     24.24%

Contact Information

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