SOURCE: Fulton Financial Corporation

January 16, 2007 16:30 ET

Fulton Financial Reports 2006 Earnings

LANCASTER, PA -- (MARKET WIRE) -- January 16, 2007 -- Fulton Financial Corporation (NASDAQ: FULT) earned $185.5 million for the year ended December 31, 2006, an 11.7 percent increase over 2005. Diluted net income per share for the year increased to $1.06, a 6.0 percent increase over the $1.00 reported in 2005. Total assets at December 31, 2006 were approximately $14.9 billion.

Net income was $46.6 million for the fourth quarter of 2006, a 13.9 percent increase over the same period in 2005. Diluted net income per share for the fourth quarter of 2006 increased to 27 cents per share, an 8.0 percent increase over the 25 cents reported during the same period in 2005.

"We were pleased with the 8 percent growth in earnings per share that we experienced in the fourth quarter of 2006 compared to the same quarter last year," said R. Scott Smith Jr., chairman, chief executive officer and president. "We achieved this growth despite continued challenging economic conditions that contributed to slower loan growth and higher overall funding costs. Our continued close management of expenses played an important role in our fourth quarter earnings growth."

Loans, net of unearned income, increased $1.9 billion, or 23.1 percent, to $10.4 billion at December 31, 2006, compared to $8.4 billion at December 31, 2005. Approximately $1.1 billion of this increase resulted from the February 1, 2006 acquisition of The Columbia Bank (Columbia). The remaining increase was realized mainly in commercial loans, which grew $282.3 million, or 13.8 percent, and commercial mortgages, which increased $245.1 million, or 8.7 percent.

Non-performing assets were 0.39 percent of total assets at December 31, 2006, compared to 0.31 percent at September 30, 2006 and 0.38 percent at December 31, 2005. Annualized net charge-offs for the quarter ended December 31, 2006 were 0.06 percent of average total loans, compared to annualized net recoveries of 0.01 percent for the quarter ended September 30, 2006 and net charge-offs of 0.09 percent for the quarter ended December 31, 2005. For the year ended December 31, 2006, net charge-offs were 0.02 percent of average total loans, compared to 0.04 percent for the same period in 2005. The provision for loan losses increased $288,000, or 36.9 percent, for the fourth quarter of 2006, as compared to the same period in 2005.

Total deposits increased $1.4 billion, or 16.2 percent, to $10.2 billion at December 31, 2006, compared to $8.8 billion at December 31, 2005. Approximately $1.0 billion of this increase resulted from the Columbia acquisition, with the remaining $460 million increase realized in time deposits, which increased $596 million, or 17.7 percent, offset by a $128 million, or 3.9 percent, decrease in demand deposits.

Net interest income for the fourth quarter increased $13.9 million, or 12.8 percent, compared to the fourth quarter of 2005, with approximately $14.8 million attributable to the Columbia acquisition. Net interest income decreased $4.2 million, or 3.3 percent, from the third quarter of 2006. Interest recoveries on nonaccrual loans decreased from $3.3 million in the third quarter to $480,000 in the fourth quarter. Fulton Financial's net interest margin was 3.68 percent for the fourth quarter of 2006, 3.85 percent for the third quarter of 2006 and 3.92 percent for the fourth quarter of 2005. Net interest margin compression has occurred as funding cost increases have exceeded the increase in asset yields. In addition, the decrease in interest recoveries resulted in an eight basis point reduction for the fourth quarter of 2006 as compared to the third quarter.

Other income, excluding investment securities gains, increased $5.5 million, or 16.6 percent, in the fourth quarter of 2006 compared to the same period in 2005. Columbia contributed $1.4 million to other income. The remaining $4.1 million increase resulted from gains on fixed asset sales and internal increases across all fee categories, with the exception of mortgage banking. Compared to the third quarter of 2006, other income increased $3.0 million, or 8.4 percent, primarily due to gains on sales of fixed assets, as well as strong brokerage results.

Other expenses increased $12.0 million, or 14.5 percent, compared to the fourth quarter of 2005, to $94.8 million. Columbia added $10.0 million to other expense during the period. The remaining increase of $2.0 million resulted from increased salaries and employee benefits and occupancy expenses, partially offset by a $2.2 million expense recorded in the fourth quarter of 2005 related to the settlement of a previously disclosed lawsuit. Compared to the third quarter of 2006, other expenses increased $2.3 million, or 2.5 percent. Fulton Financial's efficiency ratio for the fourth quarter of 2006 was 56.8 percent, compared to 55.0 percent for the third quarter of 2006 and 56.7 percent for the fourth quarter of 2005.

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

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

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

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

Safe Harbor Statement:

This news release may contain forward-looking statements about Fulton Financial Corporation's future financial performance. Forward-looking statements are encouraged by the Private Securities Litigation Reform Act of 1995.

Such forward-looking information is based upon certain underlying assumptions, risks and uncertainties. Because of the possibility of change in the underlying assumptions, actual results could differ materially from these forward-looking statements. Risks and uncertainties that may affect future results include: pricing pressures on loans and deposits, actions of bank and non-bank competitors, changes in local and national economic conditions, changes in regulatory requirements, actions of the Federal Reserve Board, creditworthiness of current borrowers, the Corporation's success in merger and acquisition integration, and customers' acceptance of the Corporation's products and services.


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




                      December 31
                -----------------------    %
BALANCE SHEET       2006        2005    Change
DATA            ----------- ----------- ------

Total assets    $14,919,523 $12,401,555   20.3%
Loans, net of
 unearned income 10,374,323   8,424,728   23.1%
Investment
 securities       2,878,238   2,562,145   12.3%
Deposits         10,232,469   8,804,839   16.2%
Shareholders'
 equity           1,515,272   1,282,971   18.1%


                                                     Year Ended
                Quarter Ended December 31            December 31
                -----------------------    %     -------------------    %
INCOME SUMMARY      2006        2005    Change     2006      2005    Change
                ----------- ----------- ------   --------- --------- ------


Interest income $   229,548 $   172,279   33.2%  $ 864,507 $ 625,768  38.2%

Interest expense   (107,804)    (64,387)  67.4%   (378,944) (213,220) 77.7%
                ----------- -----------          --------- ---------
  Net interest
   income           121,744     107,892   12.8%    485,563   412,548  17.7%
Provision for
 loan losses         (1,068)       (780)  36.9%     (3,498)   (3,120) 12.1%
Investment
 securities
 gains                1,915         987   94.0%      7,439     6,625  12.3%
Other income         38,440      32,978   16.6%    142,436   137,673   3.5%
Other expenses      (94,757)    (82,737)  14.5%   (365,991) (316,291) 15.7%
                ----------- -----------          --------- ---------
  Income before
   income taxes      66,274      58,340   13.6%    265,949   237,435  12.0%
Income taxes        (19,669)    (17,434)  12.8%    (80,422)  (71,361) 12.7%
                ----------- -----------          --------- ---------
  Net income    $    46,605 $    40,906   13.9%  $ 185,527 $ 166,074  11.7%
                =========== ===========          ========= =========

PER-SHARE DATA:

Net income:
  Basic         $      0.27 $      0.25    8.0%  $    1.07 $    1.01   5.9%
  Diluted              0.27        0.25    8.0%       1.06      1.00   6.0%
  Cash dividends     0.1475       0.138    6.9%      0.581     0.540   7.6%

Shareholders'
 equity                8.73        7.78   12.2%
Shareholders'
 equity (tangible)     4.90        5.06   (3.2%)

SELECTED FINANCIAL
 RATIOS:

Return on
 average assets        1.25%       1.32%              1.30%     1.41%
Return on average
 shareholders'
 equity               12.29%      12.62%             12.84%    13.24%
Return on average
 shareholders'
 equity
 (tangible)           22.55%      19.82%             23.87%    20.28%
Net interest
 margin                3.68%       3.92%              3.82%     3.93%
Efficiency ratio      56.83%      56.68%             56.00%    55.53%
Average equity to
 average assets       10.14%      10.46%             10.11%    10.65%



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

                                     December 31  December 31 September 30
                                         2006         2005        2006
                                     -----------  ----------- ------------

ASSETS

  Cash and due from banks            $   355,018  $   368,043  $   338,598
  Loans held for sale                    239,042      243,378      236,787
  Other interest-earning assets           28,188       31,932       35,884
  Investment securities                2,878,238    2,562,145    2,950,671
  Loans, net of unearned              10,374,323    8,424,728   10,312,057
  Allowance for loan losses             (106,884)     (92,847)    (107,422)
                                     -----------  -----------  -----------
       Net Loans                      10,267,439    8,331,881   10,204,635
  Premises and equipment                 191,401      170,254      188,403
  Accrued interest receivable             71,825       53,261       70,901
  Goodwill and intangible assets         663,775      448,422      661,594
  Other assets                           224,597      192,239      223,179
                                     -----------  -----------  -----------
         Total Assets                $14,919,523  $12,401,555  $14,910,652
                                     ===========  ===========  ===========

LIABILITIES AND SHAREHOLDERS' EQUITY

  Deposits                           $10,232,469  $ 8,804,839  $10,277,028
  Short-term borrowings                1,680,840    1,298,962    1,833,644
  Long-term debt                       1,304,148      860,345    1,109,220
  Other liabilities                      186,794      154,438      193,067
                                     -----------  -----------  -----------
         Total Liabilities            13,404,251   11,118,584   13,412,959
  Shareholders' equity                 1,515,272    1,282,971    1,497,693
                                     -----------  -----------  -----------
         Total Liabilities and
          Shareholders' Equity       $14,919,523  $12,401,555  $14,910,652
                                     ===========  ===========  ===========

LOANS AND DEPOSITS DETAIL:

Loans, by type:
  Commercial - industrial and
   financial                         $ 2,603,224  $ 2,044,010  $ 2,600,807
  Commercial - agricultural              361,962      331,659      345,332
  Real estate - commercial mortgage    3,213,809    2,831,405    3,174,623
  Real estate - residential mortgage     696,836      567,733      677,994
  Real estate - home equity            1,455,439    1,205,523    1,465,373
  Real estate - construction           1,428,809      851,451    1,431,535
  Consumer                               523,066      520,098      529,741
  Leasing and other                       91,178       72,849       86,652
                                     -----------  -----------  -----------
  Total Loans, net of unearned
   income                            $10,374,323  $ 8,424,728  $10,312,057
                                     ===========  ===========  ===========
Deposits, by type:
  Noninterest-bearing demand         $ 1,831,419  $ 1,672,637  $ 1,886,514
  Interest-bearing demand              1,683,857    1,637,007    1,658,545
  Savings deposits                     2,287,146    2,125,475    2,351,041
  Time deposits                        4,430,047    3,369,720    4,380,928
                                     -----------  -----------  -----------
  Total Deposits                     $10,232,469  $ 8,804,839  $10,277,028
                                     ===========  ===========  ===========

SHORT-TERM BORROWINGS DETAIL:

  Customer repurchase agreements     $   339,207  $   352,937  $   363,561
  Federal funds purchased              1,022,351      939,096    1,183,447
  Commercial paper                       279,076            -      236,701
  Other                                   40,206        6,929       49,935
                                     -----------  -----------  -----------
  Total Short-term borrowings        $ 1,680,840  $ 1,298,962  $ 1,833,644
                                     ===========  ===========  ===========



                                           % Change from
                                     ------------------------
                                     December 31  September 30
                                         2005         2006
                                     -----------  ------------

ASSETS

  Cash and due from banks                   (3.5%)        4.8%
  Loans held for sale                       (1.8%)        1.0%
  Other interest-earning assets            (11.7%)      (21.4%)
  Investment securities                     12.3%        (2.5%)
  Loans, net of unearned                    23.1%         0.6%
  Allowance for loan losses                 15.1%        (0.5%)
       Net Loans                            23.2%         0.6%
  Premises and equipment                    12.4%         1.6%
  Accrued interest receivable               34.9%         1.3%
  Goodwill and intangible assets            48.0%         0.3%
  Other assets                              16.8%         0.6%
         Total Assets                       20.3%         0.1%

LIABILITIES AND SHAREHOLDERS' EQUITY

  Deposits                                  16.2%        (0.4%)
  Short-term borrowings                     29.4%        (8.3%)
  Long-term debt                            51.6%        17.6%
  Other liabilities                         21.0%        (3.2%)
         Total Liabilities                  20.6%        (0.1%)
  Shareholders' equity                      18.1%         1.2%
         Total Liabilities and
          Shareholders' Equity              20.3%         0.1%

LOANS AND DEPOSITS DETAIL:

Loans, by type:
  Commercial - industrial and
   financial                                27.4%         0.1%
  Commercial - agricultural                  9.1%         4.8%
  Real estate - commercial mortgage         13.5%         1.2%
  Real estate - residential mortgage        22.7%         2.8%
  Real estate - home equity                 20.7%        (0.7%)
  Real estate - construction                67.8%        (0.2%)
  Consumer                                   0.6%        (1.3%)
  Leasing and other                         25.2%         5.2%
  Total Loans, net of unearned
   income                                   23.1%         0.6%
Deposits, by type:
  Noninterest-bearing demand                 9.5%        (2.9%)
  Interest-bearing demand                    2.9%         1.5%
  Savings deposits                           7.6%        (2.7%)
  Time deposits                             31.5%         1.1%
  Total Deposits                            16.2%        (0.4%)

SHORT-TERM BORROWINGS DETAIL:

  Customer repurchase agreements            (3.9%)       (6.7%)
  Federal funds purchased                    8.9%       (13.6%)
  Commercial paper                            NM         17.9%
  Other                                       NM        (19.5%)
  Total Short-term borrowings               29.4%        (8.3%)


NM - Not meaningful



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

                                 Quarter Ended           % Change from
                         ----------------------------  ------------------
                         December  December  September December  September
                            31        31        30        31        30
                           2006      2005      2006      2005      2006
                         --------  --------  --------  --------  --------

Interest Income:
  Interest Income        $229,548  $172,279  $229,101      33.2%      0.2%
  Interest Expense        107,804    64,387   103,177      67.4%      4.5%
                         --------  --------  --------
    Net Interest Income   121,744   107,892   125,924      12.8%     (3.3%)
  Provision for Loan
   Losses                   1,068       780       555      36.9%     92.4%
                         --------  --------  --------
    Net Interest Income
     after Provision      120,676   107,112   125,369      12.7%     (3.7%)
Other Income:
  Investment management
   and trust services       9,466     8,954     8,887       5.7%      6.5%
  Service charges on
   deposit accounts        11,289    10,418    11,345       8.4%     (0.5%)
  Other service charges
   and fees                 6,869     5,710     6,693      20.3%      2.6%
  Gain on sale of
   mortgage loans           5,647     5,499     5,480       2.7%      3.0%
  Investment securities
   gains                    1,915       987     1,450      94.0%     32.1%
  Other                     5,169     2,397     3,057     115.6%     69.1%
                         --------  --------  --------
    Total Other Income     40,355    33,965    36,912      18.8%      9.3%
Other Expenses:
  Salaries and employee
   benefits                55,546    45,595    55,048      21.8%      0.9%
  Net occupancy expense     9,637     7,769     9,260      24.0%      4.1%
  Equipment expense         3,460     2,777     3,703      24.6%     (6.6%)
  Data processing           3,097     2,805     3,057      10.4%      1.3%
  Advertising               2,424     2,579     2,934      (6.0%)   (17.4%)
  Intangible amortization   2,024     1,454     2,025      39.2%        -
  Other                    18,569    19,758    16,398      (6.0%)    13.2%
                         --------  --------  --------
    Total Other Expenses   94,757    82,737    92,425      14.5%      2.5%
                         --------  --------  --------
    Income Before Income
     Taxes                 66,274    58,340    69,856      13.6%     (5.1%)
  Income Taxes             19,669    17,434    21,514      12.8%     (8.6%)
                         --------  --------  --------
    Net Income           $ 46,605  $ 40,906  $ 48,342      13.9%     (3.6%)
                         ========  ========  ========

SHARE AND PER-SHARE
 INFORMATION:
  Net income:
    Basic                $   0.27  $   0.25  $   0.28       8.0%     (3.6%)
    Diluted                  0.27      0.25      0.28       8.0%     (3.6%)

  Cash dividends         $ 0.1475  $  0.138  $ 0.1475       6.9%        -
  Shareholders' Equity       8.73      7.78      8.63      12.2%      1.2%
  Shareholders' Equity
   (tangible)                4.90      5.06      4.82      (3.2%)     1.7%

  Weighted average shares
   (basic)                173,529   164,827   173,439       5.3%      0.1%
  Weighted average shares
   (diluted)              175,415   166,859   175,390       5.1%        -
  Shares outstanding, end
   of period              173,648   164,868   173,493       5.3%      0.1%

SELECTED FINANCIAL RATIOS:
  Return on average
   assets                    1.25%     1.32%     1.31%
  Return on average
   equity                   12.29%    12.62%    13.26%
  Return on average
   equity (tangible)        22.55%    19.82%    25.14%
  Net interest margin        3.68%     3.92%     3.85%
  Efficiency ratio          56.83%    56.68%    55.04%



                              Year Ended
                              December 31
                          ------------------
                            2006      2005    % Change
                          --------  --------  --------

Interest Income:
  Interest Income         $864,507  $625,768      38.2%
  Interest Expense         378,944   213,220      77.7%
                          --------  --------
    Net Interest Income    485,563   412,548      17.7%
  Provision for Loan
   Losses                    3,498     3,120      12.1%
                          --------  --------
    Net Interest Income
     after Provision       482,065   409,428      17.7%
Other Income:
  Investment management
   and trust services       37,441    35,669       5.0%
  Service charges on
   deposit accounts         43,773    40,198       8.9%
  Other service charges
   and fees                 26,792    24,229      10.6%
  Gain on sale of
   mortgage loans           21,086    25,032     (15.8%)
  Investment securities
   gains                     7,439     6,625      12.3%
  Other                     13,344    12,545       6.4%
                          --------  --------
    Total Other Income     149,875   144,298       3.9%
Other Expenses:
  Salaries and employee
   benefits                213,913   181,889      17.6%
  Net occupancy expense     36,493    29,275      24.7%
  Equipment expense         14,251    11,938      19.4%
  Data processing           12,228    12,395      (1.3%)
  Advertising               10,638     8,823      20.6%
  Intangible amortization    7,907     5,311      48.9%
  Other                     70,561    66,660       5.9%
                          --------  --------
    Total Other Expenses   365,991   316,291      15.7%
                          --------  --------
    Income Before Income
     Taxes                 265,949   237,435      12.0%
  Income Taxes              80,422    71,361      12.7%
                          --------  --------
    Net Income            $185,527  $166,074      11.7%
                          ========  ========

SHARE AND PER-SHARE
 INFORMATION:
  Net income:
    Basic                 $   1.07  $   1.01       5.9%
    Diluted                   1.06      1.00       6.0%

  Cash dividends          $  0.581  $  0.540       7.6%

  Weighted average shares
   (basic)                 172,830   164,234       5.2%
  Weighted average shares
   (diluted)               174,872   166,260       5.2%

SELECTED FINANCIAL RATIOS:
  Return on average
   assets                     1.30%     1.41%
  Return on average
   equity                    12.84%    13.24%
  Return on average
   equity (tangible)         23.87%    20.28%
  Net interest margin         3.82%     3.93%
  Efficiency ratio           56.00%    55.53%


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

                                                Quarter Ended
                                    -------------------------------------
                                              December 31, 2006
                                    -------------------------------------
                                      Balance      Interest     Rate (1)
                                    -----------  -----------  -----------
ASSETS

Interest-earning assets:
  Loans and leases                  $10,312,354  $   193,776         7.46%
  Taxable investment securities       2,332,116       26,226         4.50%
  Tax-exempt investment securities      472,193        5,888         4.99%
  Equity securities                     165,261        2,209         5.31%
                                    -----------  -----------  -----------
  Total Investment Securities         2,969,570       34,323         4.62%

  Loans held for sale                   212,170        3,876         7.31%
  Other interest-earning assets          44,804          580         5.12%
                                    -----------  -----------  -----------
  Total Interest-earning Assets      13,538,898      232,555         6.83%

Noninterest-earning assets:
  Cash and due from banks               321,246
  Premises and equipment                190,932
  Other assets                          897,979
  Less: allowance for loan losses      (107,842)
                                    -----------
  Total Assets                      $14,841,213
                                    ===========


LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:
  Demand deposits                   $ 1,665,453  $     7,000         1.67%
  Savings deposits                    2,339,493       14,214         2.41%
  Time deposits                       4,406,070       49,501         4.46%
                                    -----------  -----------  -----------
  Total Interest-bearing Deposits     8,411,016       70,715         3.34%

  Short-term borrowings               1,790,556       22,613         4.96%
  Long-term debt                      1,177,177       14,476         4.88%
                                    -----------  -----------  -----------
  Total Interest-bearing Liabilities 11,378,749      107,804         3.75%

Noninterest-bearing liabilities:
  Demand deposits                     1,776,686
  Other                                 180,941
                                    -----------
  Total Liabilities                  13,336,376

  Shareholders' equity                1,504,837
                                    -----------
  Total Liabilities and
   Shareholders' Equity             $14,841,213
                                    ===========

  Net interest income/net interest
   margin (fully taxable equivalent)                 124,751         3.68%
                                                              ===========
  Tax equivalent adjustment                           (3,007)
                                                 -----------
  Net interest income                            $   121,744
                                                 ===========


                                                Quarter Ended
                                    -------------------------------------
                                               December 31, 2005
                                    -------------------------------------
                                       Balance      Interest     Rate (1)
                                    ------------  -----------  ----------
ASSETS

Interest-earning assets:
  Loans and leases                   $ 8,379,369  $   144,469         6.84%
  Taxable investment securities        2,014,984       19,620         3.89%
  Tax-exempt investment securities       410,716        4,726         4.60%
  Equity securities                      139,407        1,502         4.29%
                                     -----------  -----------  -----------
  Total Investment Securities          2,565,107       25,848         4.03%

  Loans held for sale                    237,854        3,967         6.67%
  Other interest-earning assets           54,070          520         3.81%
                                     -----------  -----------  -----------
  Total Interest-earning Assets       11,236,400      174,804         6.19%

Noninterest-earning assets:
  Cash and due from banks                349,665
  Premises and equipment                 168,239
  Other assets                           631,983
  Less: allowance for loan losses        (94,829)
                                     -----------
  Total Assets                       $12,291,458
                                     ===========


LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:
  Demand deposits                    $ 1,623,138  $     4,921         1.20%
  Savings deposits                     2,157,382        9,152         1.68%
  Time deposits                        3,369,231       29,309         3.45%
                                     -----------  -----------  -----------
  Total Interest-bearing Deposits      7,149,751       43,382         2.41%

  Short-term borrowings                1,211,397       11,021         3.57%
  Long-term debt                         872,927        9,983         4.54%
                                     -----------  -----------  -----------
  Total Interest-bearing Liabilities   9,234,075       64,386         2.76%

Noninterest-bearing liabilities:
  Demand deposits                      1,626,565
  Other                                  144,801
                                     -----------
  Total Liabilities                   11,005,441
  Shareholders' equity                 1,286,017
                                     -----------
  Total Liabilities and
   Shareholders' Equity              $12,291,458
                                     ===========

  Net interest income/net interest
   margin (fully taxable equivalent)                  110,418         3.92%
                                                               ===========
  Tax equivalent adjustment                            (2,526)
                                                  -----------
  Net interest income                             $   107,892
                                                  ===========


                                                Quarter Ended
                                    -------------------------------------
                                               September 30, 2006
                                    -------------------------------------
                                       Balance      Interest     Rate (1)
                                    ------------  -----------  ----------
ASSETS

Interest-earning assets:
  Loans and leases                   $10,167,362  $   194,379         7.59%
  Taxable investment securities        2,309,644       25,323         4.39%
  Tax-exempt investment securities       449,181        5,496         4.89%
  Equity securities                      155,894        1,834         4.69%
                                     -----------  -----------  -----------
  Total Investment Securities          2,914,719       32,653         4.48%

  Loans held for sale                    227,038        4,224         7.44%
  Other interest-earning assets           54,424          695         5.03%
                                     -----------  -----------  -----------
  Total Interest-earning Assets       13,363,543      231,951         6.90%

Noninterest-earning assets:
  Cash and due from banks                329,482
  Premises and equipment                 187,876
  Other assets                           859,800
  Less: allowance for loan losses       (107,090)
                                     -----------
  Total Assets                       $14,633,611
                                     ===========


LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:
  Demand deposits                    $ 1,689,386  $     6,529         1.53%
  Savings deposits                     2,370,275       14,257         2.37%
  Time deposits                        4,294,731       46,255         4.27%
                                     -----------  -----------  -----------
  Total Interest-bearing Deposits      8,354,392       67,041         3.18%

  Short-term borrowings                1,730,970       21,697         4.92%
  Long-term debt                       1,093,815       14,439         5.24%
                                     -----------  -----------  -----------
  Total Interest-bearing Liabilities  11,179,177      103,177         3.65%

Noninterest-bearing liabilities:
  Demand deposits                      1,826,800
  Other                                  181,322
                                     -----------
  Total Liabilities                   13,187,299

  Shareholders' equity                 1,446,312
                                     -----------
  Total Liabilities and
   Shareholders' Equity              $14,633,611
                                     ===========

  Net interest income/net interest
   margin (fully taxable equivalent)                  128,774         3.85%
                                                               ===========
  Tax equivalent adjustment                            (2,850)
                                                  -----------
  Net interest income                             $   125,924
                                                  ===========

(1) Presented on a tax-equivalent basis using a 35% Federal tax rate.




AVERAGE LOANS AND DEPOSITS DETAIL:

                                                  Quarter Ended
                                       ------------------------------------
                                       December 31 December 31 September 30
                                           2006        2005        2006
                                       ------------ ----------- -----------

Loans, by type:
  Commercial - industrial and financial $ 2,578,374 $ 2,066,785 $ 2,587,869
  Commercial - agricultural                 351,112     328,771     337,660
  Real estate - commercial mortgage       3,194,958   2,778,906   3,113,086
  Real estate - residential mortgage
   and home equity                        2,151,844   1,761,195   2,108,792
  Real estate - construction              1,428,034     842,987   1,412,678
  Consumer                                  523,890     526,390     527,915
  Leasing and other                          84,142      74,335      79,362
                                        ----------- ----------- -----------

  Total Loans, net of unearned income   $10,312,354 $ 8,379,369 $10,167,362
                                        =========== =========== ===========

Deposits, by type:
  Noninterest-bearing demand            $ 1,776,686 $ 1,626,565 $ 1,826,800
  Interest-bearing demand                 1,665,453   1,623,138   1,689,386
  Savings deposits                        2,339,493   2,157,382   2,370,275
  Time deposits                           4,406,070   3,369,231   4,294,731
                                        ----------- ----------- -----------

  Total Deposits                        $10,187,702 $ 8,776,316 $10,181,192
                                        =========== =========== ===========

SHORT-TERM BORROWINGS DETAIL:
  Customer repurchase agreements        $   335,762 $   377,292 $   334,759
  Federal funds purchased                 1,128,439     807,939   1,143,445
  Commercial paper                          270,864           -     201,282
  Other                                      55,491      26,166      51,484
                                        ----------- ----------- -----------

  Total Short-term borrowings           $ 1,790,556 $ 1,211,397 $ 1,730,970
                                        =========== =========== ===========


                                            % Change from
                                       -------------------------
                                       December 31  September 30
                                           2005        2006
                                       ------------ ------------

Loans, by type:
  Commercial - industrial and financial       24.8%       (0.4%)
  Commercial - agricultural                    6.8%        4.0%
  Real estate - commercial mortgage           15.0%        2.6%
  Real estate - residential mortgage
   and home equity                            22.2%        2.0%
  Real estate - construction                  69.4%        1.1%
  Consumer                                    (0.5%)      (0.8%)
  Leasing and other                           13.2%        6.0%

  Total Loans, net of unearned income         23.1%        1.4%

Deposits, by type:
  Noninterest-bearing demand                   9.2%       (2.7%)
  Interest-bearing demand                      2.6%       (1.4%)
  Savings deposits                             8.4%       (1.3%)
  Time deposits                               30.8%        2.6%

  Total Deposits                              16.1%        0.1%

SHORT-TERM BORROWINGS DETAIL:
  Customer repurchase agreements             (11.0%)       0.3%
  Federal funds purchased                     39.7%       (1.3%)
  Commercial paper                              NM        34.6%
  Other                                      112.1%        7.8%

  Total Short-term borrowings                 47.8%        3.4%


NM - Not meaningful





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


                                           Year Ended  December 31
                                  ----------------------------------------
                                                   2006
                                  ----------------------------------------
                                    Balance     Interest (1)    Rate (1)
                                  ------------  ------------  ------------
ASSETS

Interest-earning assets:
  Loans and leases                $  9,892,082  $    731,057          7.39%
  Taxable investment securities      2,268,209        97,652          4.31%
  Tax-exempt investment
   securities                          447,000        21,770          4.87%
  Equity securities                    154,653         7,341          4.75%
                                  ------------  ------------  ------------
  Total Investment Securities        2,869,862       126,763          4.42%

  Loans held for sale                  215,255        15,564          7.23%
  Other interest-earning assets         53,211         2,530          4.73%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     13,030,410       875,914          6.73%

Noninterest-earning assets:
  Cash and due from banks              335,935
  Premises and equipment               185,084
  Other assets                         852,186
  Less: allowance for loan losses     (105,934)
                                  ------------
  Total Assets                    $ 14,297,681
                                  ============

LIABILITIES AND SHAREHOLDERS'
 EQUITY

Interest-bearing liabilities:
  Demand deposits                 $  1,673,407  $     25,112          1.50%
  Savings deposits                   2,340,402        51,394          2.19%
  Time deposits                      4,134,190       170,435          4.12%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits    8,147,999       246,941          3.03%
  Short-term borrowings              1,653,974        78,043          4.67%
  Long-term debt                     1,069,868        53,960          5.04%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                      10,871,841       378,944          3.48%

Noninterest-bearing liabilities:
  Demand deposits                    1,807,248
  Other                                173,799
                                  ------------
  Total Liabilities                 12,852,888

  Shareholders' equity               1,444,793
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 14,297,681
                                  ============

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


                                          Year Ended  December 31
                                  ----------------------------------------
                                                   2005
                                  ----------------------------------------

                                    Balance     Interest (1)    Rate (1)
                                  ------------  ------------  ------------
ASSETS

Interest-earning assets:
  Loans and leases                $  7,981,604  $    520,565          6.52%
  Taxable investment securities      1,996,240        74,921          3.75%

  Tax-exempt investment
   securities                          368,845        17,971          4.87%
  Equity securities                    133,586         5,562          4.16%
                                  ------------  ------------  ------------
  Total Investment Securities        2,498,671        98,454          3.94%
  Loans held for sale                  241,996        14,940          6.17%
  Other interest-earning assets         48,357         1,586          3.27%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     10,770,628       635,545          5.90%

Noninterest-earning assets:
  Cash and due from banks              346,535
  Premises and equipment               158,526
  Other assets                         598,709
  Less: allowance for loan losses      (92,780)
                                  ------------
  Total Assets                    $ 11,781,618
                                  ============

LIABILITIES AND SHAREHOLDERS'
 EQUITY

Interest-bearing liabilities:
  Demand deposits                 $  1,547,766  $     15,370          0.99%
  Savings deposits                   2,055,503        27,116          1.32%
  Time deposits                      3,171,901        98,288          3.10%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits    6,775,170       140,774          2.08%

  Short-term borrowings              1,186,464        34,414          2.87%
  Long-term debt                       839,827        38,031          4.53%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                       8,801,461       213,219          2.42%

Noninterest-bearing liabilities:
  Demand deposits                    1,589,265
  Other                                136,416
                                  ------------
  Total Liabilities                 10,527,142

  Shareholders' equity               1,254,476
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 11,781,618
                                  ============

  Net interest income/net
   interest margin (fully taxable
   equivalent)                                       422,326          3.93%
                                                              ============
  Tax equivalent adjustment                           (9,778)
                                                ------------
  Net interest income                           $    412,548
                                                ============



 (1) Presented on a tax-equivalent basis using a 35% Federal tax rate.



AVERAGE LOANS AND DEPOSITS
 DETAIL:

                                    Year Ended December 31
                                  --------------------------
                                      2006          2005       % Change
                                  ------------  ------------ ----------

Loans, by type:
  Commercial - industrial and
   financial                     $  2,478,893  $  2,022,615        22.6%
  Commercial - agricultural           335,596       324,637         3.4%
  Real estate - commercial
   mortgage                         3,073,830     2,621,730        17.2%
  Real estate - residential
   mortgage and home equity         2,058,034     1,710,736        20.3%
  Real estate - construction        1,345,191       732,847        83.6%
  Consumer                            522,761       501,926         4.2%
  Leasing and other                    77,777        67,113        15.9%
                                 ------------  ------------

  Total Loans, net of unearned
   income                        $  9,892,082  $  7,981,604        23.9%
                                 ============  ============

Deposits, by type:
  Noninterest-bearing demand     $  1,807,248  $  1,589,265        13.7%
  Interest-bearing demand           1,673,407     1,547,766         8.1%
  Savings deposits                  2,340,402     2,055,503        13.9%
  Time deposits                     4,134,190     3,171,901        30.3%
                                 ------------  ------------

  Total Deposits                 $  9,955,247  $  8,364,435        19.0%
                                 ============  ============

SHORT-TERM BORROWINGS DETAIL:
  Customer repurchase agreements $    352,454  $    385,688        (8.6%)
  Federal funds purchased           1,095,875       731,793        49.8%
  Commercial paper                    163,199             -           NM
  Other                                42,446        68,983       (38.5%)
                                 ------------  ------------

  Total Short-term borrowings    $  1,653,974  $  1,186,464        39.4%
                                 ============  ============


  NM - Not meaningful





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



                              Quarter Ended
                     -------------------------------      Year Ended
                     December   December   September     December 31
                        31         31         30      --------------------
                       2006       2005       2006       2006       2005
                     ---------  ---------  ---------  ---------  ---------
ALLOWANCE FOR LOAN
 LOSSES:

  Balance at
   beginning of
   period            $ 107,422  $  93,936  $ 106,544  $  92,847  $  89,627

  Loans charged off     (2,722)    (3,100)    (1,068)    (6,969)    (8,204)
  Recoveries of
   loans previously
   charged off           1,116      1,231      1,391      4,517      5,196
                     ---------  ---------  ---------  ---------  ---------
  Net loans (charged
   off) recovered       (1,606)    (1,869)       323     (2,452)    (3,008)
  Provision for loan
   losses                1,068        780        555      3,498      3,120
  Allowance
   purchased                 -          -          -     12,991      3,108
                     ---------  ---------  ---------  ---------  ---------
  Balance at end of
   period            $ 106,884  $  92,847  $ 107,422  $ 106,884  $  92,847
                     =========  =========  =========  =========  =========

  Net charge-offs
   (recoveries) to
   average loans
   (annualized)           0.06%      0.09%    (0.01%)      0.02%      0.04%
                     =========  =========  =========  =========  =========

NON-PERFORMING
 ASSETS:

  Non-accrual loans  $  33,113  $  36,560  $  26,591
  Accruing loans 90+
   days overdue         20,632      9,012     16,704
  Other real estate
   owned                 4,103      2,072      3,489
                     ---------  ---------  ---------
  Total
   non-performing
   assets            $  57,848  $  47,644  $  46,784
                     =========  =========  =========

ASSET QUALITY
 RATIOS:

  Non-accrual loans
   to total loans         0.32%      0.43%      0.26%
  Non-performing
   assets to total
   loans and OREO         0.56%      0.57%      0.45%
  Non-performing
   assets to total
   assets                 0.39%      0.38%      0.31%
  Allowance for loan
   losses to loans
   outstanding            1.03%      1.10%      1.04%
  Allowance/
   nonperforming
   loans                   199%       204%       248%

Contact Information

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