SOURCE: Fulton Financial Corporation

April 17, 2007 16:30 ET

Fulton Financial Reports First Quarter Earnings

LANCASTER, PA -- (MARKET WIRE) -- April 17, 2007 -- Fulton Financial Corporation (NASDAQ: FULT) earned $41.1 million for the first quarter ended March 31, 2007, a 6.3 percent decrease from the same period in 2006. Diluted net income per share for the quarter decreased to 24 cents, a 4.0 percent decrease from the 25 cents reported in 2006. Total assets at March 31, 2007 were approximately $14.7 billion.

As previously disclosed, the Corporation recorded a $5.5 million contingent loss during the first quarter of 2007 related to losses that may be incurred due to the repurchase of residential mortgage loans and home equity loans that had been originated and sold in the secondary market. In addition, the Corporation recorded a $3.4 million interest income recovery related to a previously charged off commercial mortgage loan. The net effect of these two items was a $0.01 decrease in diluted net income per share for the quarter ended March 31, 2007.

"Although the continued difficult operating environment in combination with the mortgage-related charges we announced earlier negatively impacted our first quarter results, we continue to focus on productivity improvements and on reducing overhead to position the corporation solidly for the future. Resources are being allocated to areas where we anticipate the best returns. These areas include new branches to ensure continued organic growth and technology to make sure we efficiently deliver competitive financial products to our customers," said R. Scott Smith Jr., Chairman, Chief Executive Officer and President. "Also, our loan portfolios continue to perform very well, with net charge-offs at historic lows."

Loans, net of unearned income, increased $729.5 million, or 7.5 percent, to $10.4 billion at March 31, 2007, compared to $9.7 billion at March 31, 2006. The increase was realized mainly in commercial loans, which grew $357.5 million, or 13.1 percent, and commercial mortgages, which increased $237.5 million, or 7.9 percent.

Non-performing assets were 0.40 percent of total assets at March 31, 2007, compared to 0.39 percent at December 31, 2006 and 0.35 percent at March 31, 2006. Annualized net recoveries for the quarter ended March 31, 2007 were less than one basis point as a percentage of average total loans, compared to annualized net charge-offs of 0.06 percent for the quarter ended December 31, 2006 and 0.03 percent for the quarter ended March 31, 2006. The provision for loan losses decreased $43,000, or 4.3 percent, for the first quarter of 2007, as compared to the same period in 2006.

Total deposits increased $281.7 million, or 2.8 percent, to $10.2 billion at March 31, 2007, compared to $10.0 billion at March 31, 2006. Time deposits increased $513.2 million, or 12.9 percent, offset by a $231.5 million, or 3.9 percent, decrease in demand and savings deposits.

Net interest income for the quarter increased $6.7 million, or 5.9 percent, compared to the first quarter of 2006. Approximately $4.5 million of this increase resulted from a full quarter contribution of The Columbia Bank (Columbia) in 2007 as compared to two months in 2006. Columbia was acquired on February 1, 2006.

In comparison to the fourth quarter of 2006, net interest income was essentially unchanged. During the first quarter of 2007, interest recoveries on non-accrual loans totaled $3.7 million, mainly due to the aforementioned commercial account. This compares to recoveries of $480,000 in the fourth quarter of 2006 and $490,000 in the first quarter of 2006. The Corporation's net interest margin was 3.74 percent for the first quarter of 2007, 3.68 percent for the fourth quarter of 2006 and 3.88 percent for the first quarter of 2006. Interest recoveries and other nonrecurring items added approximately 11 basis points to the net interest margin for the quarter, compared to approximately four basis points in the fourth quarter of 2006.

Other income, excluding investment securities gains, increased $3.3 million, or 9.8 percent, in the first quarter of 2007 compared to the same period in 2006. Columbia contributed $560,000 to the increase in other income. The remaining $2.7 million increase resulted primarily from gains on the sale of real estate and increases in other service charges and fees. Compared to the fourth quarter of 2006, other income, excluding security gains, decreased $1.2 million, or 3.0 percent, primarily due a decrease in gains on sales of fixed assets, as well as decreased service charges on deposit accounts.

Other expenses increased $12.9 million, or 14.6 percent, compared to the first quarter of 2006, to $100.9 million. Columbia added $3.5 million to the increase in other expenses. The remaining increase of $9.4 million resulted from the $5.5 million contingent loss and an increase in salaries and employee benefits. Compared to the fourth quarter of 2006, other expenses increased $6.1 million, or 6.5 percent.

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; 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


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

Total assets                      $ 14,670,336  $ 14,174,485          3.5%
Loans, net of unearned income       10,448,175     9,718,710          7.5%
Investment securities                2,621,608     2,790,622         (6.1%)
Deposits                            10,235,580     9,953,846          2.8%
Shareholders' equity                 1,521,931     1,448,339          5.1%


                                    Quarter Ended March 31
                                  --------------------------
INCOME SUMMARY                        2007          2006         % Change
                                  ------------  ------------  ------------

Interest income                   $    230,656  $    192,652         19.7%
Interest expense                      (108,881)      (77,609)        40.3%
                                  ------------  ------------
  Net interest income                  121,775       115,043          5.9%
Provision for loan losses                 (957)       (1,000)        (4.3%)
Investment securities gains              1,782         2,665        (33.1%)
Other income                            37,283        33,942          9.8%
Other expenses                        (100,905)      (88,016)        14.6%
                                  ------------  ------------
  Income before income taxes            58,978        62,634         (5.8%)
Income taxes                           (17,850)      (18,755)        (4.8%)
                                  ------------  ------------
  Net income                      $     41,128  $     43,879         (6.3%)
                                  ============  ============

PER-SHARE DATA:

Net income:
     Basic                        $       0.24  $       0.26         (7.7%)
     Diluted                              0.24          0.25         (4.0%)
     Cash dividends                     0.1475         0.138          6.9%

Shareholders' equity                      8.79          8.32          5.6%
Shareholders' equity (tangible)           4.97          4.49         10.7%

SELECTED FINANCIAL RATIOS:

Return on average assets                  1.12%         1.32%
Return on average shareholders'
 equity                                  11.06%        12.83%
Return on average shareholders'
 equity (tangible)                       20.34%        23.01%
Net interest margin                       3.74%         3.88%
Efficiency ratio                         60.98%        56.83%
Nonperforming assets to total
 assets                                   0.40%         0.35%

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

                                                            % Change from
                                                          -----------------
                                                            March  December
                  March 31      March 31     December 31     31       31
                    2007          2006          2006        2006     2006
                ------------  ------------  ------------  -------- --------

ASSETS
  Cash and due
   from banks   $    344,969  $    398,111  $    355,018   (13.3%)   (2.8%)
  Loans held
   for sale          206,422       202,751       239,042     1.8%   (13.6%)
  Other
   interest-
   earning assets     17,677        35,657        28,188   (50.4%)  (37.3%)
  Investment
   securities      2,621,608     2,790,622     2,878,238    (6.1%)   (8.9%)
  Loans, net of
   unearned       10,448,175     9,718,710    10,374,323     7.5%     0.7%
  Allowance for
   loan losses      (107,899)     (106,195)     (106,884)    1.6%     0.9%
                ------------  ------------  ------------
       Net
        Loans     10,340,276     9,612,515    10,267,439     7.6%     0.7%
  Premises and
   equipment         190,442       182,115       191,401     4.6%    (0.5%)
  Accrued
   interest
   receivable         67,580        60,145        71,825    12.4%    (5.9%)
  Goodwill and
   intangible
   assets            661,636       667,387       663,775    (0.9%)   (0.3%)
  Other assets       219,726       225,182       224,038    (2.4%)   (1.9%)
                ------------  ------------  ------------
    Total
     Assets     $ 14,670,336  $ 14,174,485  $ 14,918,964     3.5%    (1.7%)
                ============  ============  ============

LIABILITIES AND
 SHAREHOLDERS'
 EQUITY
  Deposits      $ 10,235,580  $  9,953,846  $ 10,232,469     2.8%       -
  Short-term
   borrowings      1,138,443     1,530,381     1,680,840   (25.6%)  (32.3%)
  Long-term
   debt            1,576,283     1,058,800     1,304,148    48.9%    20.9%
  Other
   liabilities       198,099       183,119       185,197     8.2%     7.0%
                ------------  ------------  ------------
    Total
     Liabilities  13,148,405    12,726,146    13,402,654     3.3%    (1.9%)
  Shareholders'
   equity          1,521,931     1,448,339     1,516,310     5.1%     0.4%
                ------------  ------------  ------------
    Total
     Liabilities
     and
     Share-
     holders'
     Equity     $ 14,670,336  $ 14,174,485  $ 14,918,964     3.5%    (1.7%)
                ============  ============  ============

LOANS, DEPOSITS
 AND SHORT-TERM
 BORROWINGS
 DETAIL:

Loans, by type:
  Commercial -
   industrial
   and
   financial    $  2,730,456  $  2,412,836  $  2,603,224    13.2%     4.9%
  Commercial -
   agricultural      365,036       325,140       361,962    12.3%     0.8%
  Real estate -
   commercial
   mortgage        3,257,914     3,020,376     3,213,809     7.9%     1.4%
  Real estate -
   residential
   mortgage          699,528       612,584       696,836    14.2%     0.4%
  Real estate -
   home equity     1,425,948     1,406,076     1,455,439     1.4%    (2.0%)
  Real estate -
   construction    1,377,791     1,343,364     1,428,809     2.6%    (3.6%)
  Consumer           514,007       516,789       523,066    (0.5%)   (1.7%)
  Leasing and
   other              77,495        81,545        91,178    (5.0%)  (15.0%)
                ------------  ------------  ------------
  Total Loans,
   net of
   unearned
   income       $ 10,448,175  $  9,718,710  $ 10,374,323     7.5%     0.7%
                ============  ============  ============
Deposits, by
 type:
  Noninterest-
   bearing
   demand       $  1,795,265  $  1,958,958  $  1,831,419    (8.4%)   (2.0%)
  Interest-
   bearing
   demand          1,683,652     1,684,287     1,683,857       -        -
  Savings
   deposits        2,274,727     2,341,840     2,287,146    (2.9%)   (0.5%)
  Time deposits    4,481,936     3,968,761     4,430,047    12.9%     1.2%
                ------------  ------------  ------------
  Total
   Deposits     $ 10,235,580  $  9,953,846  $ 10,232,469     2.8%       -
                ============  ============  ============

Short-term
 borrowings, by
 type:
  Customer
   repurchase
   agreements   $    278,819  $    379,001  $    339,207   (26.4%)  (17.8%)
  Federal funds
   purchased         442,362     1,001,366     1,022,351   (55.8%)  (56.7%)
  Short-term
   promissory
   notes             359,365       130,604       279,076   175.2%    28.8%
  Other               57,897        19,410        40,206   198.3%    44.0%
                ------------  ------------  ------------
  Total
   Short-term
   borrowings   $  1,138,443  $  1,530,381  $  1,680,840   (25.6%)  (32.3%)
                ============  ============  ============



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


                                  Quarter Ended             % Change from
                         -------------------------------  -----------------
                          March       March    December    March   December
                            31         31         31        31        31
                           2007       2006       2006      2006      2006
                         ---------  ---------  ---------  -------  -------
Interest Income:
  Interest Income        $ 230,656  $ 192,652  $ 229,548     19.7%    0.5%
  Interest Expense         108,881     77,609    107,804     40.3%    1.0%
                         ---------  ---------  ---------
     Net Interest Income   121,775    115,043    121,744      5.9%      -
  Provision for Loan
   Losses                      957      1,000      1,068     (4.3%) (10.4%)
                         ---------  ---------  ---------
     Net Interest Income
      after Provision      120,818    114,043    120,676      5.9%    0.1%
Other Income:
  Investment management
   and trust services        9,810     10,032      9,466     (2.2%)   3.6%
  Service charges on
   deposit accounts         10,627     10,247     11,289      3.7%   (5.9%)
  Other service charges
   and fees                  7,375      6,654      6,869     10.8%    7.4%
  Gain on sale of
   mortgage loans            5,393      4,772      5,647     13.0%   (4.5%)
  Investment securities
   gains                     1,782      2,665      1,915    (33.1%)  (6.9%)
  Other                      4,078      2,237      5,169     82.3%  (21.1%)
                         ---------  ---------  ---------
     Total Other Income     39,065     36,607     40,355      6.7%   (3.2%)
Other Expenses:
  Salaries and employee
   benefits                 56,293     49,929     55,546     12.7%    1.3%
  Net occupancy expense     10,196      8,589      9,637     18.7%    5.8%
  Equipment expense          3,715      3,593      3,460      3.4%    7.4%
  Data processing            3,202      2,909      3,097     10.1%    3.4%
  Advertising                2,409      2,253      2,424      6.9%   (0.6%)
  Intangible
   amortization              1,983      1,852      2,024      7.1%   (2.0%)
  Other                     23,107     18,891     18,569     22.3%   24.4%
                         ---------  ---------  ---------
     Total Other
      Expenses             100,905     88,016     94,757     14.6%    6.5%
                         ---------  ---------  ---------
     Income Before
      Income Taxes          58,978     62,634     66,274     (5.8%) (11.0%)
  Income Taxes              17,850     18,755     19,669     (4.8%)  (9.2%)
                         ---------  ---------  ---------
     Net Income          $  41,128  $  43,879  $  46,605     (6.3%) (11.8%)
                         =========  =========  =========

SHARE AND PER-SHARE
 INFORMATION:
  Net income:
     Basic               $    0.24  $    0.26  $    0.27     (7.7%) (11.1%)
     Diluted                  0.24       0.25       0.27     (4.0%) (11.1%)

  Cash dividends         $  0.1475  $   0.138  $  0.1475      6.9%      -
  Shareholders' equity        8.79       8.32       8.73      5.6%    0.7%
  Shareholders' equity
   (tangible)                 4.97       4.49       4.91     10.7%    1.2%

  Weighted average
   shares (basic)          173,273    170,869    173,529      1.4%   (0.1%)
  Weighted average
   shares (diluted)        174,878    173,166    175,415      1.0%   (0.3%)
  Shares outstanding,
   end of period           173,083    174,033    173,648     (0.5%)  (0.3%)

SELECTED FINANCIAL
 RATIOS:
  Return on average
   assets                     1.12%      1.32%      1.25%
  Return on average
   shareholders' equity      11.06%     12.83%     12.29%
  Return on average
   shareholders' equity
   (tangible)                20.34%     23.01%     22.55%
  Net interest margin         3.74%      3.88%      3.68%
  Efficiency ratio           60.98%     56.83%     56.83%



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

                                               Quarter Ended
                                  ----------------------------------------
                                               March 31, 2007
                                  ----------------------------------------
                                    Balance     Interest (1)    Rate (1)
                                  ------------  ------------  ------------
ASSETS
Interest-earning assets:
  Loans and leases                $ 10,414,698  $    196,558          7.65%
  Taxable investment securities      2,190,230        24,619          4.50%
  Tax-exempt investment
   securities                          492,709         6,228          5.06%
  Equity securities                    178,488         2,129          4.79%
                                  ------------  ------------  ------------
  Total Investment Securities        2,861,427        32,976          4.61%
  Loans held for sale                  207,856         3,684          7.09%
  Other interest-earning assets         48,328           596          4.97%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     13,532,309       233,814          6.99%
Noninterest-earning assets:
  Cash and due from banks              315,969
  Premises and equipment               192,002
  Other assets                         899,843
  Less: allowance for loan losses     (107,683)
                                  ------------
  Total Assets                    $ 14,832,440
                                  ============


LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
  Demand deposits                 $  1,657,714  $      6,904          1.69%
  Savings deposits                   2,295,822        13,811          2.44%
  Time deposits                      4,457,363        50,493          4.59%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits    8,410,899        71,208          3.43%
  Short-term borrowings              1,552,495        19,054          4.93%
  Long-term debt                     1,450,016        18,619          5.14%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                      11,413,410       108,881          3.85%
Noninterest-bearing liabilities:
  Demand deposits                    1,721,135
  Other                                189,297
                                  ------------
  Total Liabilities                 13,323,842
  Shareholders' equity               1,508,598
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 14,832,440
                                  ============

  Net interest income/net
  interest margin (fully taxable
   equivalent)                                       124,933          3.74%
                                                              ============
  Tax equivalent adjustment                           (3,158)
                                                ------------
  Net interest income                           $    121,775
                                                ============


                                               Quarter Ended
                                  ----------------------------------------
                                               March 31, 2006
                                  ----------------------------------------
                                    Balance     Interest (1)    Rate (1)
                                  ------------  ------------  ------------
ASSETS
Interest-earning assets:
  Loans and leases                $  9,227,642  $    161,883          7.11%
  Taxable investment securities      2,186,073        22,539          4.13%
  Tax-exempt investment
   securities                          435,959         5,185          4.76%
  Equity securities                    145,011         1,559          4.33%
                                  ------------  ------------  ------------
  Total Investment Securities        2,767,043        29,283          4.24%
  Loans held for sale                  199,441         3,458          6.94%
  Other interest-earning assets         63,388           663          4.23%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     12,257,514       195,287          6.45%
Noninterest-earning assets:
  Cash and due from banks              358,481
  Premises and equipment               177,761
  Other assets                         786,918
  Less: allowance for loan losses     (101,999)
                                  ------------
  Total Assets                    $ 13,478,675
                                  ============


LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
  Demand deposits                 $  1,666,506  $      5,575          1.36%
  Savings deposits                   2,272,771        10,561          1.88%
  Time deposits                      3,744,503        34,054          3.69%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits    7,683,780        50,190          2.65%
  Short-term borrowings              1,487,295        15,306          4.13%
  Long-term debt                       995,478        12,113          4.93%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                      10,166,553        77,609          3.10%
Noninterest-bearing liabilities:
  Demand deposits                    1,765,897
  Other                                159,401
                                  ------------
  Total Liabilities                 12,091,851
  Shareholders' equity               1,386,824
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 13,478,675
                                  ============

  Net interest income/net
   interest margin (fully taxable
   equivalent)                                       117,678          3.88%
                                                              ============
  Tax equivalent adjustment                           (2,635)
                                                ------------
  Net interest income                           $    115,043
                                                ============


                                               Quarter Ended
                                  ----------------------------------------
                                              December 31, 2006
                                  ----------------------------------------
                                    Balance     Interest (1)    Rate (1)
                                  ------------  ------------  ------------
ASSETS
Interest-earning assets:
  Loans and leases                $ 10,312,354  $    193,776          7.46%
  Taxable investment securities      2,332,116        26,226          4.50%
  Tax-exempt investment
   securities                          472,193         5,888          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
                                                ============

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





AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:


                               Quarter Ended                % Change from
                   -------------------------------------- ----------------
                                                           March  December
                     March 31     March 31   December 31    31       31
                       2007         2006         2006       2006     2006
                   ------------ ------------ ------------ -------  -------

Loans, by type:
  Commercial -
   industrial and
   financial       $  2,670,641 $  2,278,597 $  2,578,374    17.2%    3.6%
  Commercial -
   agricultural         360,601      327,929      351,112    10.0%    2.7%
  Real estate -
   commercial
   mortgage           3,239,179    2,944,676    3,194,958    10.0%    1.4%
  Real estate -
   residential
   mortgage             701,918      589,665      688,932    19.0%    1.9%
  Real estate -
   home equity        1,441,741    1,333,897    1,462,912     8.1%   (1.4%)
  Real estate -
   construction       1,396,527    1,163,368    1,428,034    20.0%   (2.2%)
  Consumer              516,335      518,330      523,890    (0.4%)  (1.4%)
  Leasing and
   other                 87,756       71,180       84,142    23.3%    4.3%
                   ------------ ------------ ------------

  Total Loans, net
   of unearned
   income          $ 10,414,698 $  9,227,642 $ 10,312,354    12.9%    1.0%
                   ============ ============ ============

Deposits, by type:
  Noninterest-bea-
   ring demand     $  1,721,135 $  1,765,897 $  1,776,686    (2.5%)  (3.1%)
  Interest-bearing
   demand             1,657,714    1,666,506    1,665,453    (0.5%)  (0.5%)
  Savings deposits    2,295,822    2,272,771    2,339,493     1.0%   (1.9%)
  Time deposits       4,457,363    3,744,503    4,406,070    19.0%    1.2%
                   ------------ ------------ ------------

  Total Deposits   $ 10,132,034 $  9,449,677 $ 10,187,702     7.2%   (0.5%)
                   ============ ============ ============

Short-term
 borrowings, by
 type:
  Customer
   repurchase
   agreements      $    256,658 $    382,620 $    335,762   (32.9%) (23.6%)
  Federal funds
   purchased            915,241    1,037,533    1,128,439   (11.8%) (18.9%)
  Short-term
   promissory
   notes                315,515       44,024      270,864   616.7%   16.5%
  Other                  65,081       23,118       55,491   181.5%   17.3%
                   ------------ ------------ ------------

  Total Short-term
   borrowings      $  1,552,495 $  1,487,295 $  1,790,556     4.4%  (13.3%)
                   ============ ============ ============




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

                                                    Quarter Ended
                                           -------------------------------
                                           March 31   March 31  December 31
                                             2007       2006       2006
                                           ---------  ---------  ---------
ALLOWANCE FOR LOAN LOSSES:
  Balance at beginning of period           $ 106,884  $  92,847  $ 107,422
  Loans charged off                           (1,360)    (1,500)    (2,722)
  Recoveries of loans previously charged
   off                                         1,418        857      1,116
                                           ---------  ---------  ---------
  Net loans recovered (charged off)               58       (643)    (1,606)
  Provision for loan losses                      957      1,000      1,068
  Allowance purchased                              -     12,991          -
                                           ---------  ---------  ---------
  Balance at end of period                 $ 107,899  $ 106,195  $ 106,884
                                           =========  =========  =========

  Net (recoveries) charge-offs to average
   loans (annualized)                              -       0.03%      0.06%
                                           =========  =========  =========

NON-PERFORMING ASSETS:
  Non-accrual loans                        $  37,914  $  34,716  $  33,113
  Accruing loans 90+ days overdue             13,467     13,126     20,632
  Other real estate owned                      6,576      2,011      4,103
                                           ---------  ---------  ---------
  Total non-performing assets              $  57,957  $  49,853  $  57,848
                                           =========  =========  =========

ASSET QUALITY RATIOS:
  Non-accrual loans to total loans              0.36%      0.36%      0.32%
  Non-performing assets to total loans and
   OREO                                         0.55%      0.51%      0.56%
  Non-performing assets to total assets         0.40%      0.35%      0.39%
  Allowance for loan losses to loans
   outstanding                                  1.03%      1.09%      1.03%
  Allowance/nonperforming loans                  210%       222%       199%

Contact Information

  • Media Contact:
    Laura J. Wakeley
    717-291-2739