SOURCE: Fulton Financial Corporation

Fulton Financial Corporation

April 20, 2010 16:30 ET

Fulton Financial Reports First Quarter Earnings of $0.13 per Share

LANCASTER, PA--(Marketwire - April 20, 2010) - Fulton Financial Corporation (NASDAQ: FULT)

Highlights for the First Quarter of 2010
--  An increase of 11 basis points, or 3.0 percent, in net interest
    margin, resulting in a $2.4 million, or 1.8 percent, increase in
    net interest income in comparison the fourth quarter of 2009.
--  A reduction in the provision for loan losses of $5.0 million,
    or 11.2 percent, in comparison to the fourth quarter of 2009.
--  Effective expense management, as shown by an improvement in the
    efficiency ratio and a slight decrease in other expenses in comparison
    to the fourth quarter of 2009.
--  A 2 basis point, or 2.1 percent, improvement in annualized
    net charge-offs to average loans.
--  An improved coverage ratio, allowance for credit losses to
    non-performing loans, from 91.4 percent at December 31, 2009
    to 94.1 percent at March 31, 2010.

Fulton Financial Corporation (NASDAQ: FULT) reported net income available to common shareholders of $22.4 million, or 13 cents per diluted share, for the first quarter ended March 31, 2010, compared to $19.3 million, or 11 cents per diluted share, for the fourth quarter of 2009.

"We were pleased to see the continuation of our positive earnings momentum in the first quarter. The results of our allowance allocation process enabled us to again reduce the provision for loan losses," said R. Scott Smith, Jr., chairman and chief executive officer. "Despite slower loan demand and lower yields on earning assets, we were able to increase net interest income. The net interest margin expanded significantly as funding costs continued to decline. We believe that further stabilization in our credit quality, along with a rebound in overall economic activity, can provide the impetus for further earnings improvement. I want to again express my gratitude to our 3,950-member team for their unwavering commitment and dedication to positioning this company for future growth."

In the first quarter of 2010, net income available to common shareholders increased $14.4 million, or 178.3 percent, in comparison to the first quarter of 2009. The increase in net income available to common shareholders was primarily due to a $14.4 million increase in net interest income, a $10.0 million decrease in the provision for loan losses, and a $7.1 million decrease in other expenses. These improvements were partially offset by a $5.1 million decrease in net gains on investment securities and a $4.3 million decrease in other income.

Asset Quality

The Corporation's credit quality metrics continued to stabilize in the first quarter of 2010, a trend that began in the second half of 2009. Non-performing assets were $312.2 million, or 1.90 percent of total assets, at March 31, 2010, compared to $305.0 million, or 1.83 percent, at December 31, 2009 and $269.2 million, or 1.63 percent of total assets, at March 31, 2009. The $7.2 million, or 2.4 percent, increase in non-performing assets since December 31, 2009 was primarily due to a $4.3 million increase in non-performing loans and a $2.9 million increase in other real estate owned. The increase in non-performing loans was primarily due to a $9.5 million, or 15.6 percent, increase in non-performing commercial mortgages and an $8.8 million, or 12.6 percent, increase in non-performing commercial loans, offset by a $13.3 million, or 14.3 percent, decrease in non-performing construction loans, largely due to $20.2 million of net charge-offs.

Annualized net charge-offs for the quarter ended March 31, 2010 were 0.95 percent of average total loans compared to 0.97 percent for the quarter ended December 31, 2009 and 1.00 percent for the quarter ended March 31, 2009. The allowance for credit losses as a percentage of non-performing loans increased to 94.1 percent at the end of the first quarter of 2010 in comparison to 91.4 percent at the end of the fourth quarter of 2009. The provision for loan losses decreased by $5.0 million, or 11.2 percent, in comparison to the prior quarter.

Net Interest Income and Margin

Net interest income for the first quarter of 2010 increased $2.4 million, or 1.8 percent, from the fourth quarter of 2009 and increased $14.4 million, or 11.6 percent, compared to the same period in 2009. The Corporation's net interest margin was 3.78 percent for the first quarter of 2010, 3.67 percent for fourth quarter of 2009 and 3.45 percent for the first quarter of 2009. The increase in net interest income in comparison to the fourth quarter of 2009 was a result of the 11 basis point, or 3.0 percent, increase in net interest margin, which was mainly driven by the decline in time deposit costs, which decreased from 2.30 percent in the fourth quarter of 2009 to 2.08 percent in the first quarter of 2010. Yields on interest-earning assets decreased 3 basis points, or 0.6 percent, from the fourth quarter of 2009.

Average Balance Sheet

Total average assets for the first quarter of 2010 were $16.5 billion, unchanged from the fourth quarter of 2009 and $224.2 million, or 1.4 percent, higher than the first quarter of 2009.

Average loans, net of unearned income, for the first quarter of 2010 decreased $17.5 million, or 0.1 percent, from the fourth quarter of 2009 and decreased $69.5 million, or 0.6 percent, from the first quarter of 2009.

                               Quarter Ended
                           -----------------------
                             Mar 31      Dec 31      Increase (decrease)
                              2010        2009         $           %
                           ----------- ----------- ----------  ----------
                                 (dollars in thousands)
Loans, by type:
  Real estate - commercial
   mortgage                $ 4,306,270 $ 4,240,436 $   65,834         1.6%
  Commercial - industrial,
   financial and
   agricultural              3,686,405   3,713,926    (27,521)       (0.7%)
  Real estate - home
   equity                    1,640,912   1,645,524     (4,612)       (0.3%)
  Real estate -
   construction                962,175   1,018,057    (55,882)       (5.5%)
  Real estate -
   residential mortgage        940,652     925,660     14,992         1.6%
  Consumer                     362,212     370,258     (8,046)       (2.2%)
  Leasing and other             73,160      75,453     (2,293)       (3.0%)
                           ----------- ----------- ----------  ----------

  Total Loans, net of
   unearned income         $11,971,786 $11,989,314    (17,528)       (0.1%)
                           =========== =========== ==========  ==========

Weak loan demand hampered overall portfolio growth in the first quarter of 2010, continuing a trend which was evidenced throughout the prior year. In comparison to the fourth quarter of 2009, growth in average commercial and residential mortgages was more than offset by a decrease in construction loans as the Corporation actively managed its exposure in this portfolio.

Opportunities for expanding commercial loans continued to be a challenge as economic uncertainty caused business clients to delay expansion plans. The Corporation was able to achieve commercial mortgage growth from both existing customers and new relationships, while maintaining its underwriting standards.

Average investments were $3.2 billion, a $62.1 million, or 2.0 percent, increase from the fourth quarter of 2009. The increase was due primarily to the reinvestment of portfolio cash flows in collateralized mortgage obligations at the end of the fourth quarter of 2009.

Average deposits for the first quarter of 2010 decreased $143.2 million, or 1.2 percent, from the fourth quarter of 2009 and increased $1.1 billion, or 10.1 percent, from the first quarter of 2009.

                               Quarter Ended
                           -----------------------   Increase (decrease)
                             Mar 31      Dec 31    ----------------------
                              2010        2009         $           %
                           ----------- ----------- ----------  ----------
                                 (dollars in thousands)
Deposits, by type:
  Noninterest-bearing
   demand                  $ 1,973,146 $ 1,991,210 $  (18,064)       (0.9%)
  Interest-bearing demand    1,981,653   1,969,681     11,972         0.6%
  Savings deposits           2,847,427   2,772,340     75,087         2.7%
                           ----------- ----------- ----------  ----------
Total, excluding time
 deposits                    6,802,226   6,733,231     68,995         1.0%
  Time deposits              5,202,975   5,415,169   (212,194)       (3.9%)
                           ----------- ----------- ----------  ----------

  Total Deposits           $12,005,201 $12,148,400 $ (143,199)       (1.2%)
                           ----------- ----------- ----------  ----------

During the first quarter of 2010, the Corporation experienced a $69.0 million, or 1.0 percent, increase in demand and savings deposits, offset by a $212.2 million, or 3.9 percent, decrease in time deposits. The increase in core deposits replaced other funding sources such as time deposits, which decreased as a result of lower customer demand.

Non-interest Income

Other income, excluding investment securities gains (losses), decreased $1.5 million, or 3.6 percent, in comparison to the fourth quarter of 2009. Service charges on deposit accounts decreased $907,000, or 6.0 percent, due to a $507,000 decrease in overdraft fees resulting from normal seasonal fluctuations and a $181,000 decrease in cash management fees due to the impact the current rate environment has had on this line of business as customers continue to shift funds to deposit accounts. Gains on sales of mortgage loans decreased $516,000 due to a decrease in refinance volumes.

Compared to the first quarter of 2009, other income, excluding investment securities gains (losses), decreased $4.3 million, or 9.8 percent, primarily due to a $5.2 million decrease in gains on sales of mortgage loans, resulting from a decrease in refinance volumes and a $925,000 decrease in cash management fee income, offset by a $565,000 increase in foreign currency processing revenues and a $442,000 increase in overdraft fees.

Investment securities losses in the first quarter of 2010 were $2.2 million compared to losses of $1.9 million in the fourth quarter of 2009 and gains of $2.9 million in the first quarter of 2009.

The following table summarizes the net realized gains and other-than-temporary impairment charges by type of security:

                                                      Quarter Ended
                                              ----------------------------
                                               Mar 31    Dec 31    Mar 31
                                                2010      2009      2009
                                              --------  --------  --------
                                                     (in thousands)
Net realized gains (losses):
  Debt securities                             $  1,918  $  2,289  $  6,063
  Equity securities                                836        26      (104)
Other-than-temporary impairment charges:
  Debt securities                               (4,153)   (2,995)   (1,978)
  Equity securities                               (824)   (1,192)   (1,062)
                                              --------  --------  --------

  Investment securities gains (losses)        $ (2,223) $ (1,872) $  2,919
                                              ========  ========  ========

Other-than-temporary impairment charges for debt and equity securities above were primarily on the Corporation's investments in pooled trust preferred securities issued by financial institutions and financial institutions stocks, respectively.

Non-interest Expense

Other expenses decreased $1.1 million, or 1.1 percent, in the first quarter of 2010 compared to the fourth quarter of 2009. Salaries and benefits decreased $1.3 million, or 2.4 percent, due to decreases in incentive compensation. Marketing expenses and outside services decreased $1.3 million due to continuing efforts to reduce discretionary spending and the timing of promotional campaigns. Offsetting these decreases was a $1.0 million increase in net occupancy expense, mainly due to snow removal and utilities costs.

Other expenses decreased $7.1 million, or 6.7 percent, in the first quarter of 2010 compared to the same period in 2009. During the first quarter of 2009, the Corporation recorded a $6.2 million charge related to guarantees associated with the purchase of illiquid auction rate securities previously sold to customers. Also contributing to the decrease was a $3.0 million decrease in salaries and benefits, due primarily to decrease in average full-time equivalent employees, a reduction in incentive compensation, a reduction in healthcare costs as claims decreased and a reduction in severance expense.

About Fulton Financial

Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company which has 3,950 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 requirements, 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

                                            March 31
                                    ------------------------
BALANCE SHEET DATA                      2010         2009       % Change
                                    -----------  -----------  -----------

Total assets                        $16,411,523  $16,493,522         (0.5%)
Loans, net of unearned income        11,964,840   12,009,060         (0.4%)
Investment securities                 3,103,628    3,123,687         (0.6%)
Deposits                             12,156,455   11,413,982          6.5%
Shareholders' equity                  1,969,838    1,861,321          5.8%

                                         Quarter Ended
                                            March 31
                                    ------------------------
INCOME SUMMARY                          2010         2009       % Change
                                    -----------  -----------  -----------

Interest income                     $   190,588  $   195,567         (2.5%)
Interest expense                        (52,079)     (71,451)       (27.1%)
                                    -----------  -----------
  Net interest income                   138,509      124,116         11.6%
Provision for loan losses               (40,000)     (50,000)       (20.0%)
Investment securities gains
 (losses)                                (2,223)       2,919          N/M
Other income                             39,690       43,995         (9.8%)
Other expenses                          (99,229)    (106,372)        (6.7%)
                                    -----------  -----------
  Income before income taxes             36,747       14,658        150.7%
Income tax expense                       (9,267)      (1,573)       489.1%
                                    -----------  -----------
  Net income                             27,480       13,085        110.0%
Preferred stock dividends and
 discount accretion                      (5,065)      (5,031)         0.7%
                                    -----------  -----------
  Net income available to common
   shareholders                     $    22,415  $     8,054        178.3%
                                    ===========  ===========

PER COMMON SHARE:

Net income:
     Basic                          $      0.13  $      0.05        160.0%
     Diluted                               0.13         0.05        160.0%
Cash dividends                             0.03         0.03            -

Shareholders' equity                       9.06         8.50          6.6%
Shareholders' equity (tangible)            5.94         5.33         11.4%

SELECTED FINANCIAL RATIOS:

Return on average assets                   0.68%        0.33%
Return on average common
 shareholders' equity                      5.73%        2.18%
Return on average common
 shareholders' equity (tangible)           9.13%        3.88%
Net interest margin                        3.78%        3.45%
Efficiency ratio                          53.77%       60.95%
Tangible common equity to tangible
 assets                                    6.61%        5.87%
Non-performing assets to total
 assets                                    1.90%        1.63%


N/M - Not meaningful






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

                                                           % Change from
                                                         -----------------
                                                          March   December
                    March 31     March 31   December 31    31       31
                      2010         2009         2009      2009     2009
                  -----------  -----------  -----------  -------  -------

ASSETS
  Cash and due
   from banks     $   276,200  $   265,431  $   284,508      4.1%    (2.9%)
  Loans held for
   sale                53,798      102,033       85,384    (47.3%)  (37.0%)
  Other
   interest-
   earning assets       7,842       14,329       16,591    (45.3%)  (52.7%)
  Investment
   securities       3,103,628    3,123,687    3,267,086     (0.6%)   (5.0%)
  Loans, net of
   unearned
   income          11,964,840   12,009,060   11,972,424     (0.4%)   (0.1%)
  Allowance for
   loan losses       (264,915)    (192,410)    (256,698)    37.7%     3.2%
                  -----------  -----------  -----------
     Net Loans     11,699,925   11,816,650   11,715,726     (1.0%)   (0.1%)
  Premises and
   equipment          204,149      205,495      204,203     (0.7%)      -
  Accrued
   interest
   receivable          58,689       59,369       58,515     (1.1%)    0.3%
  Goodwill and
   intangible
   assets             551,537      556,496      552,563     (0.9%)   (0.2%)
  Other assets        455,755      350,032      451,059     30.2%     1.0%
                  -----------  -----------  -----------
       Total
        Assets    $16,411,523  $16,493,522  $16,635,635     (0.5%)   (1.3%)
                  ===========  ===========  ===========

LIABILITIES AND
 SHAREHOLDERS'
 EQUITY
  Deposits        $12,156,455  $11,413,982  $12,097,914      6.5%     0.5%
  Short-term
   borrowings         624,650    1,195,474      868,940    (47.7%)  (28.1%)
  Federal Home
   Loan Bank
   advances and
   long-term debt   1,440,755    1,786,598    1,540,773    (19.4%)   (6.5%)
  Other
   liabilities        219,825      236,147      191,526     (6.9%)   14.8%
                  -----------  -----------  -----------
     Total
      Liabilities  14,441,685   14,632,201   14,699,153     (1.3%)   (1.8%)
  Preferred stock     370,649      369,270      370,290      0.4%     0.1%
  Common
   shareholders'
   equity           1,599,189    1,492,051    1,566,192      7.2%     2.1%
                  -----------  -----------  -----------
     Total
      Shareholders'
      Equity        1,969,838    1,861,321    1,936,482      5.8%     1.7%
                  -----------  -----------  -----------
       Total
        Liabilities
        and
        Shareholders'
        Equity    $16,411,523  $16,493,522  $16,635,635     (0.5%)   (1.3%)
                  ===========  ===========  ===========

LOANS, DEPOSITS
 AND SHORT-TERM
 BORROWINGS
 DETAIL:
Loans, by type:
  Real estate -
   commercial
   mortgage       $ 4,322,774  $ 4,068,342  $ 4,292,300      6.3%     0.7%
  Commercial -
   industrial,
   financial and
   agricultural     3,684,903    3,653,503    3,699,198      0.9%    (0.4%)
  Real estate -
   home equity      1,638,179    1,673,613    1,644,260     (2.1%)   (0.4%)
  Real estate -
   residential
   mortgage           951,381      947,837      921,741      0.4%     3.2%
  Real estate -
   construction       937,279    1,205,256      978,267    (22.2%)   (4.2%)
  Consumer            361,681      378,851      360,698     (4.5%)    0.3%
  Leasing and
   other               68,643       81,658       75,960    (15.8%)   (9.6%)
                  -----------  -----------  -----------
  Total Loans,
   net of
   unearned
   income         $11,964,840  $12,009,060  $11,972,424     (0.4%)   (0.1%)
                  ===========  ===========  ===========
Deposits, by
 type:
  Noninterest-
   bearing demand $ 2,038,199  $ 1,776,169  $ 2,012,837     14.8%     1.3%
  Interest-
   bearing demand   1,987,791    1,799,586    2,022,746     10.5%    (1.7%)
  Savings
   deposits         2,972,621    2,125,297    2,748,467     39.9%     8.2%
  Time deposits     5,157,844    5,712,930    5,313,864     (9.7%)   (2.9%)
                  -----------  -----------  -----------
  Total Deposits  $12,156,455  $11,413,982  $12,097,914      6.5%     0.5%
                  ===========  ===========  ===========
Short-term
 borrowings, by
 type:
  Federal funds
   purchased      $   162,040  $   397,158  $   378,068    (59.2%)  (57.1%)
  Customer
   repurchase
   agreements         245,265      249,256      259,458     (1.6%)   (5.5%)
  Customer
   short-term
   promissory
   notes              217,345      343,845      231,414    (36.8%)   (6.1%)
  Federal Reserve
   Bank
   borrowings and
   other                    -      205,215            -      N/A        -
                  -----------  -----------  -----------
  Total
   Short-term
   borrowings     $   624,650  $ 1,195,474  $   868,940    (47.7%)  (28.1%)
                  ===========  ===========  ===========


  N/A - Not Applicable






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

                         Quarter Ended                 % Change from
               ----------------------------------  ----------------------
                March 31    March 31  December 31   March 31  December 31
                  2010        2009        2009        2009        2009
               ----------  ----------  ----------  ----------  ----------

Interest
 Income:
  Interest
   income      $  190,588  $  195,567  $  194,942        (2.5%)      (2.2%)
  Interest
   expense         52,079      71,451      58,849       (27.1%)     (11.5%)
               ----------  ----------  ----------
    Net
     Interest
     Income       138,509     124,116     136,093        11.6%        1.8%
  Provision
   for loan
   losses          40,000      50,000      45,020       (20.0%)     (11.2%)
               ----------  ----------  ----------
    Net
     Interest
     Income
     after
     Provision     98,509      74,116      91,073        32.9%        8.2%
Other Income:
  Service
   charges on
   deposit
   accounts        14,267      14,894      15,174        (4.2%)      (6.0%)
  Other
   service
   charges and
   fees             9,372       8,354       9,369        12.2%          -
  Investment
   management
   and trust
   services         8,088       7,903       8,106         2.3%       (0.2%)
  Gains on
   sales of
   mortgage
   loans            3,364       8,591       3,880       (60.8%)     (13.3%)
  Investment
   securities
   gains
   (losses)        (2,223)      2,919      (1,872)        N/M        18.8%
  Other             4,599       4,253       4,628         8.1%       (0.6%)
               ----------  ----------  ----------
    Total
     Other
     Income        37,467      46,914      39,285       (20.1%)      (4.6%)
Other
 Expenses:
  Salaries and
   employee
   benefits        52,345      55,304      53,623        (5.4%)      (2.4%)
  Net
   occupancy
   expense         11,650      11,023      10,612         5.7%        9.8%
  FDIC
   insurance
   expense          4,954       4,288       4,841        15.5%        2.3%
  Equipment
   expense          3,091       3,079       3,160         0.4%       (2.2%)
  Data
   processing       2,624       3,072       2,228       (14.6%)      17.8%
  Professional
   fees             2,546       2,228       2,397        14.3%        6.2%
  Telecommuni-
   cations          2,270       2,163       2,125         4.9%        6.8%
  Marketing         1,830       2,571       2,638       (28.8%)     (30.6%)
  Intangible
   amortization     1,314       1,463       1,421       (10.2%)      (7.5%)
  Operating
   risk loss          511       6,201         867       (91.8%)     (41.1%)
  Other            16,094      14,980      16,458         7.4%       (2.2%)
               ----------  ----------  ----------
    Total
     Other
     Expenses      99,229     106,372     100,370        (6.7%)      (1.1%)
               ----------  ----------  ----------
    Income
     Before
     Income
     Taxes         36,747      14,658      29,988       150.7%       22.5%
  Income tax
   expense          9,267       1,573       5,606       489.1%       65.3%
               ----------  ----------  ----------
    Net Income     27,480      13,085      24,382       110.0%       12.7%
  Preferred
   stock
   dividends
   and
   discount
   accretion       (5,065)     (5,031)     (5,046)        0.7%        0.4%
               ----------  ----------  ----------
    Net Income
     Available
     to Common
     Sharehol-
     ders      $   22,415  $    8,054  $   19,336       178.3%       15.9%
               ==========  ==========  ==========

PER COMMON
 SHARE:
  Net income:
    Basic      $     0.13  $     0.05  $     0.11       160.0%       18.2%
    Diluted          0.13        0.05        0.11       160.0%       18.2%

  Cash
   dividends   $     0.03  $     0.03  $     0.03           -           -
  Shareholders'
   equity            9.06        8.50        8.88         6.6%        2.0%
  Shareholders'
   equity
   (tangible)        5.94        5.33        5.75        11.4%        3.3%

  Weighted
   average
   shares
   (basic)        176,174     175,315     175,988         0.5%        0.1%
  Weighted
   average
   shares
   (diluted)      176,681     175,548     176,413         0.6%        0.2%
  Shares
   outstanding,
   end of
   period         176,509     175,507     176,364         0.6%        0.1%

SELECTED
 FINANCIAL
 RATIOS:
  Return on
   average
   assets            0.68%       0.33%       0.59%
  Return on
   average
   common
   shareholders'
   equity            5.73%       2.18%       4.91%
  Return on
   average
   common
   shareholders'
   equity
   (tangible)        9.13%       3.88%       7.96%
  Net interest
   margin            3.78%       3.45%       3.67%
  Efficiency
   ratio            53.77%      60.95%      54.61%


N/M - Not meaningful






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

                                      Quarter Ended
                ----------------------------------------------------------
                       March 31, 2010                March 31, 2009
                ----------------------------  ----------------------------
                  Average              Yield/   Average              Yield/
                  Balance   Interest(1) Rate    Balance   Interest(1) Rate
                -----------  ---------  ----  -----------  ---------  ----
ASSETS
Interest-earning
 assets:
  Loans, net of
   unearned
   income       $11,971,786  $ 159,424  5.39% $12,041,286  $ 163,753  5.51%
  Taxable
   investment
   securities     2,663,127     28,149  4.23%   2,212,639     26,849  4.86%
  Tax-exempt
   investment
   securities       387,971      5,531  5.70%     503,265      6,887  5.47%
  Equity
   securities       141,896        809  2.29%     137,308        774  2.28%
                -----------  ---------  ----  -----------  ---------  ----
  Total
   Investment
   Securities     3,192,994     34,489  4.33%   2,853,212     34,510  4.84%
  Loans held
   for sale          42,938        556  5.18%     104,467      1,261  4.83%
  Other
   interest-
   earning
   assets            10,793         25  0.95%      16,934         50  1.19%
                -----------  ---------  ----  -----------  ---------  ----
  Total
   Interest-
   earning
   Assets        15,218,511    194,494  5.17%  15,015,899    199,574  5.38%
Noninterest-
 earning assets:
  Cash and due
   from banks       263,147                       317,928
  Premises and
   equipment        203,584                       202,875
  Other assets    1,086,635                       924,755
  Less:
   allowance
   for loan
   losses          (273,426)                     (187,183)
                -----------                   -----------
  Total Assets  $16,498,451                   $16,274,274
                ===========                   ===========


LIABILITIES AND
 SHAREHOLDERS'
 EQUITY
Interest-bearing
 liabilities:
  Demand
   deposits     $ 1,981,653  $   1,840  0.38% $ 1,754,003  $   1,776  0.41%
  Savings
   deposits       2,847,427      5,201  0.74%   2,058,021      4,353  0.86%
  Time deposits   5,202,975     26,696  2.08%   5,432,676     43,767  3.27%
                -----------  ---------  ----  -----------  ---------  ----
  Total
   Interest-
   bearing
   Deposits      10,032,055     33,737  1.36%   9,244,700     49,896  2.19%
  Short-term
   borrowings       871,981        549  0.25%   1,517,064      1,436  0.38%
  Federal Home
   Loan Bank
   advances and
   long-term
   debt           1,484,236     17,792  4.86%   1,787,493     20,119  4.55%
                -----------  ---------  ----  -----------  ---------  ----
  Total
   Interest-
   bearing
   Liabilities   12,388,272     52,078  1.70%  12,549,257     71,451  2.31%
Noninterest-
 bearing
 liabilities:
  Demand
   deposits       1,973,146                     1,657,658
  Other             180,528                       201,449
                -----------                   -----------
  Total
   Liabilities   14,541,946                    14,408,364
  Shareholders'
   equity         1,956,505                     1,865,910
                -----------                   -----------
  Total
   Liabilities
   and
   Shareholders'
   Equity       $16,498,451                   $16,274,274
                ===========                   ===========

  Net interest
   income/net
   interest
   margin
   (fully
   taxable
   equivalent)                 142,416  3.78%                128,123  3.45%
                                        ====                          ====
  Tax
   equivalent
   adjustment                   (3,906)                       (4,007)
                             ---------                     ---------
  Net interest
   income                    $ 138,510                     $ 124,116
                             =========                     =========



                        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
                             =========


  (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
                     ----------------------------------- ----------------
                                                          March   December
                      March 31    March 31   December 31    31       31
                        2010        2009        2009       2009     2009
                     ----------- ----------- ----------- -------  -------

Loans, by type:
  Real estate -
   commercial
   mortgage          $ 4,306,270 $ 4,048,847 $ 4,240,436     6.4%     1.6%
  Commercial -
   industrial,
   financial and
   agricultural        3,686,405   3,655,970   3,713,926     0.8%    (0.7%)
  Real estate - home
   equity              1,640,912   1,698,599   1,645,524    (3.4%)   (0.3%)
  Real estate -
   construction          962,175   1,229,841   1,018,057   (21.8%)   (5.5%)
  Real estate -
   residential
   mortgage              940,652     957,556     925,660    (1.8%)    1.6%
  Consumer               362,212     360,919     370,258     0.4%    (2.2%)
  Leasing and other       73,160      89,554      75,453   (18.3%)   (3.0%)
                     ----------- ----------- -----------

  Total Loans, net
   of unearned
   income            $11,971,786 $12,041,286 $11,989,314    (0.6%)   (0.1%)
                     =========== =========== ===========

Deposits, by type:
  Noninterest-
   bearing demand    $ 1,973,146 $ 1,657,658 $ 1,991,210    19.0%    (0.9%)
  Interest-bearing
   demand              1,981,653   1,754,003   1,969,681    13.0%     0.6%
  Savings deposits     2,847,427   2,058,021   2,772,340    38.4%     2.7%
  Time deposits        5,202,975   5,432,676   5,415,169    (4.2%)   (3.9%)
                     ----------- ----------- -----------

  Total Deposits     $12,005,201 $10,902,358 $12,148,400    10.1%    (1.2%)
                     =========== =========== ===========

Short-term
 borrowings, by
 type:
  Federal funds
   purchased         $   399,560 $   792,001 $   101,349   (49.6%)  294.2%
  Customer
   repurchase
   agreements            248,982     246,429     260,962     1.0%    (4.6%)
  Customer
   short-term
   promissory notes      223,439     337,069     255,776   (33.7%)  (12.6%)
  Federal Reserve
   Bank borrowings
   and other                   -     141,565           -     N/A        -
                     ----------- ----------- -----------

  Total Short-term
   borrowings        $   871,981 $ 1,517,064 $   618,087   (42.5%)   41.1%
                     =========== =========== ===========


N/A - Not applicable






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

                                                 Quarter Ended
                                     -------------------------------------
                                       March 31     March 31   December 31
                                         2010         2009         2009
                                     -----------  -----------  -----------
ALLOWANCE FOR CREDIT LOSSES:
  Balance at beginning of period     $   257,553  $   180,137  $   241,721

  Loans charged off:
    Real estate - construction           (20,553)     (12,242)     (12,017)
    Commercial - industrial,
     agricultural and financial           (2,981)     (10,622)     (10,078)
    Real estate - commercial
     mortgage                             (2,344)      (3,960)      (2,055)
    Real estate - residential
     mortgage and home equity             (1,391)      (1,937)      (2,224)
    Consumer                              (2,078)      (2,076)      (3,103)
    Leasing and other                       (645)        (946)      (1,366)
                                     -----------  -----------  -----------
    Total loans charged off              (29,992)     (31,783)     (30,843)
  Recoveries of loans charged off:
    Real estate - construction               315          112          842
    Commercial - industrial,
     agricultural and financial              436          904           25
    Real estate - commercial
     mortgage                                128           10            8
    Real estate - residential
     mortgage and home equity                  1            1            1
    Consumer                                 552          429          384
    Leasing and other                        261          253          395
                                     -----------  -----------  -----------
    Recoveries of loans previously
     charged off                           1,693        1,709        1,655
                                     -----------  -----------  -----------
  Net loans charged off                  (28,299)     (30,074)     (29,188)
  Provision for loan losses               40,000       50,000       45,020
                                     -----------  -----------  -----------
  Balance at end of period           $   269,254  $   200,063  $   257,553
                                     ===========  ===========  ===========

  Net charge-offs to average loans
   (annualized)                             0.95%        1.00%        0.97%
                                     ===========  ===========  ===========

NON-PERFORMING ASSETS:
  Non-accrual loans                  $   242,423  $   198,765  $   238,360
  Loans 90 days past due and
   accruing                               43,603       47,284       43,359
                                     -----------  -----------  -----------
    Total non-performing loans           286,026      246,049      281,719
  Other real estate owned                 26,228       23,189       23,309
                                     -----------  -----------  -----------
  Total non-performing assets        $   312,254  $   269,238  $   305,028
                                     ===========  ===========  ===========

NON-PERFORMING LOANS, BY TYPE:
  Real estate - construction         $    79,527  $    93,425  $    92,841
  Commercial - industrial,
   agricultural and financial             78,365       50,493       69,604
  Real estate - commercial mortgage       70,565       59,899       61,052
  Real estate - residential mortgage
   and home equity                        42,302       31,365       45,748
  Consumer                                15,086       10,316       12,319
  Leasing                                    181          551          155
                                     -----------  -----------  -----------
  Total non-performing loans         $   286,026  $   246,049  $   281,719
                                     ===========  ===========  ===========

ASSET QUALITY RATIOS:
  Non-accrual loans to total loans          2.03%        1.66%        1.99%
  Non-performing assets to total
   loans and OREO                           2.60%        2.24%        2.54%
  Non-performing assets to total
   assets                                   1.90%        1.63%        1.83%
  Allowance for credit losses to
   loans outstanding                        2.25%        1.67%        2.15%
  Allowance for credit losses to
   non-performing loans                    94.14%       81.31%       91.42%
  Non-performing assets to tangible
   common shareholders' equity and
   allowance for credit losses             23.71%       23.71%       24.00%

Contact Information

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