SOURCE: Fulton Financial Corporation

April 22, 2008 16:30 ET

Fulton Financial Reports First Quarter Earnings

LANCASTER, PA--(Marketwire - April 22, 2008) - Fulton Financial Corporation (NASDAQ: FULT) earned $41.5 million for the first quarter ended March 31, 2008, a 0.9 percent increase from the same period in 2007. Diluted net income per share for the quarter increased to 24 cents, unchanged from 2007. Diluted net income per share for the quarter increased 9.1 percent from the 22 cents reported in the fourth quarter of 2007. Total assets at March 31, 2008 were approximately $16.1 billion.

"Strong loan growth and new revenue producing initiatives in combination with tight expense control enabled us to produce improved results despite continued economic uncertainty," said R. Scott Smith Jr., chairman, chief executive officer and president. "With the lower interest rate environment, growing our net interest margin will remain a challenge even though we saw a slight improvement this quarter. We continue to aggressively seek core deposits and market share growth through corporate-wide promotional initiatives and continued de novo branch expansion in our strongest markets. We are closely monitoring our loan quality metrics. As would be expected in an economic downturn, we experienced an increase in our non-performing loans."

Loans, net of unearned income, increased $940.5 million, or 9.0 percent, to $11.4 billion at March 31, 2008, compared to $10.4 billion at March 31, 2007. The increase was primarily realized in commercial loans, which grew $397.9 million, or 12.9 percent, and commercial mortgages, which increased $361.5 million, or 11.1 percent. In comparison to the fourth quarter of 2007, loans, net of unearned income, increased $184.2 million, or 1.6 percent, which was mainly due to growth in commercial loans of $66.3 million, or 1.9 percent, and an increase in commercial mortgages of $117.1 million, or 3.3 percent.

Non-performing assets were $145.3 million, or 0.90 percent of total assets, at March 31, 2008, compared to $58.0 million, or 0.40 percent, at March 31, 2007 and $120.9 million, or 0.76 percent, at December 31, 2007. The $87.3 million, or 150.7 percent, increase in non-performing assets since March 31, 2007 was due to worsening general economic conditions and the repurchase of delinquent residential mortgages from investors during the second half of 2007.

Annualized net charge-offs for the quarter ended March 31, 2008 were 0.15 percent of average total loans, compared to annualized net recoveries of less than one basis point for the quarter ended March 31, 2007 and annualized net charge-offs of 0.15 percent for the quarter ended December 31, 2007. The provision for loan losses increased $10.3 million for the first quarter of 2008, as compared to the same period in 2007, and increased $4.4 million from the fourth quarter of 2007. The increase in the provision for loan losses was due mainly to the increase in the level of non-performing assets, which required additional allocations of the allowance for credit losses.

Total deposits decreased $186.7 million, or 1.8 percent, to $10.0 billion at March 31, 2008 compared to $10.2 billion at March 31, 2007. The decrease was primarily due to a $145.9 million, or 2.5 percent, decrease in demand and savings deposits and partially due to a $40.8 million, or 0.9 percent, decrease in time deposits. In comparison to the fourth quarter of 2007, total deposits decreased $56.5 million, or 0.6 percent, due to a $95.4 million, or 2.1 percent, decrease in time deposits, offset by a $38.9 million, or 0.7 percent, increase in demand and savings deposits.

Net interest income for the first quarter increased $4.1 million, or 3.4 percent, compared to the first quarter of 2007 and increased $2.2 million, or 1.8 percent, from the fourth quarter of 2007. The Corporation's net interest margin was 3.58 percent for the first quarter of 2008, 3.74 percent for the first quarter of 2007 and 3.56 percent for the fourth quarter of 2007. During the first quarter of 2007, interest recoveries on loans and other nonrecurring items added approximately 13 basis points to net interest margin, compared to two basis points in the fourth quarter of 2007.

Other income, excluding investment securities gains, decreased $849,000, or 2.3 percent, in the first quarter of 2008 compared to the same period in 2007. Gains on sales of mortgage loans decreased $3.1 million, or 57.1 percent, and investment management and trust services income declined $1.1 million, or 10.7 percent. The decrease in gains on sales of mortgage loans was largely due to lower volumes as the Corporation exited the national wholesale residential mortgage business in 2007. These decreases were partially offset by a $3.3 million, or 31.4 percent, increase in service charges on deposit accounts. Compared to the fourth quarter of 2007, other income, excluding security gains (losses), increased $686,000, or 1.9 percent.

Investment securities gains (losses) decreased $536,000, or 30.1 percent in the first quarter of 2008 compared to the same period in 2007. In comparison to the fourth quarter of 2007, investment securities gains (losses) increased $1.8 million. The gains in the first quarter of 2008 included $3.6 million from the redemption of Class B shares of Visa, Inc. (Visa) in connection with Visa's initial public offering, and $1.0 million from the sale of Mastercard, Inc. shares. These gains were offset by $3.6 million in charges related to bank stocks held by the Corporation that were considered to be other-than-temporarily impaired as of the end of the quarter.

Other expenses decreased $4.2 million, or 4.2 percent, compared to the first quarter of 2007, to $96.7 million. The decrease was due primarily to a $4.7 million reduction in contingent losses related to the Corporation's mortgage banking activities. Also contributing to the decline in other expenses was a $1.4 million reversal of legal reserves that were no longer necessary due to the aforementioned initial public offering of Visa and a $1.1 million reduction in salaries and employee benefits, due in part to corporate-wide workforce management and centralization initiatives which began during 2007. These decreases were offset by an increase of $834,000 in costs associated with the disposition and maintenance of foreclosed real estate and a $496,000 increase in advertising expense. Compared to the fourth quarter of 2007, other expenses decreased $1.8 million, or 1.8 percent.

Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company which has over 3,900 employees and operates more than 265 banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates: Fulton Bank, Lancaster, PA; Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Easton, PA; FNB Bank, N.A., Danville, PA; Hagerstown Trust, Hagerstown, MD; Delaware National Bank, Georgetown, DE; The Bank, Woodbury, NJ; The Peoples Bank of Elkton, Elkton, MD; Skylands Community Bank, Hackettstown, NJ 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.

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

Safe Harbor Statement:

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

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

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

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

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


                                             March 31
                                    --------------------------
BALANCE SHEET DATA                      2008          2007      % Change
                                    ------------  ------------  ---------

Total assets                        $ 16,052,867  $ 14,670,336        9.4%
Loans, net of unearned income         11,388,653    10,448,175        9.0%
Investment securities                  3,104,827     2,621,608       18.4%
Deposits                              10,048,928    10,235,580       (1.8%)
Shareholders' equity                   1,611,720     1,521,931        5.9%


                                      Quarter Ended March 31
                                    --------------------------
INCOME SUMMARY                          2008          2007      % Change
                                    ------------  ------------  ---------

Interest income                     $    229,220  $    230,656       (0.6%)
Interest expense                        (103,321)     (108,881)      (5.1%)
                                    ------------  ------------
  Net interest income                    125,899       121,775        3.4%
Provision for loan losses                (11,220)         (957)   1,072.4%
Investment securities gains                1,246         1,782      (30.1%)
Other income                              36,434        37,283       (2.3%)
Other expenses                           (96,660)     (100,905)      (4.2%)
                                    ------------  ------------
  Income before income taxes              55,699        58,978       (5.6%)
Income taxes                             (14,203)      (17,850)     (20.4%)
                                    ------------  ------------
  Net income                        $     41,496  $     41,128        0.9%
                                    ============  ============

PER-SHARE DATA:

Net income:
     Basic                          $       0.24  $       0.24          -
     Diluted                                0.24          0.24          -
     Cash dividends                       0.1500        0.1475        1.7%

Shareholders' equity                        9.28          8.79        5.6%
Shareholders' equity (tangible)             5.52          4.97       11.1%

SELECTED FINANCIAL RATIOS:

Return on average assets                    1.05%         1.12%
Return on average shareholders'
 equity                                    10.53%        11.06%
Return on average shareholders'
 equity (tangible)                         18.45%        20.34%
Net interest margin                         3.58%         3.74%
Efficiency ratio                           57.10%        60.98%
Non-performing assets to total
 assets                                     0.90%         0.40%





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


                                                           % Change from
                                                         ----------------
                                                          March   December
                       March 31    March 31  December 31    31       31
                         2008        2007        2007      2007     2007
                     ----------- ----------- ----------- -------  -------

ASSETS

  Cash and due from
   banks             $   406,601 $   344,969 $   381,283    17.9%     6.6%
  Loans held for sale     95,144     206,422     103,984   (53.9%)   (8.5%)
  Other
   interest-earning
   assets                 13,240      17,677      21,153   (25.1%)  (37.4%)
  Investment
   securities          3,104,827   2,621,608   3,153,552    18.4%    (1.5%)
  Loans, net of
   unearned           11,388,653  10,448,175  11,204,424     9.0%     1.6%
  Allowance for loan
   losses               (115,257)   (107,899)   (107,547)    6.8%     7.2%
                     ----------- ----------- -----------
      Net Loans       11,273,396  10,340,276  11,096,877     9.0%     1.6%
  Premises and
   equipment             197,424     190,442     193,296     3.7%     2.1%
  Accrued interest
   receivable             65,865      67,580      73,435    (2.5%)  (10.3%)
  Goodwill and
   intangible assets     653,038     662,085     654,908    (1.4%)   (0.3%)
  Other assets           243,332     219,277     244,610    11.0%    (0.5%)
                     ----------- ----------- -----------
    Total Assets     $16,052,867 $14,670,336 $15,923,098     9.4%     0.8%
                     =========== =========== ===========

LIABILITIES AND SHAREHOLDERS' EQUITY

  Deposits           $10,048,928 $10,235,580 $10,105,445    (1.8%)   (0.6%)
  Short-term
   borrowings          2,229,127   1,138,443   2,383,944    95.8%    (6.5%)
  Federal Home Loan
   Bank advances and
   long-term debt      1,890,969   1,576,283   1,642,133    20.0%    15.2%
  Other liabilities      272,123     198,099     216,656    37.4%    25.6%
                     ----------- ----------- -----------
    Total Liabilities 14,441,147  13,148,405  14,348,178     9.8%     0.6%
  Shareholders'
   equity              1,611,720   1,521,931   1,574,920     5.9%     2.3%
                     ----------- ----------- -----------
    Total Liabilities
     and
     Shareholders'
     Equity          $16,052,867 $14,670,336 $15,923,098     9.4%     0.8%
                     =========== =========== ===========

LOANS, DEPOSITS AND
 SHORT-TERM BORROWINGS DETAIL:

Loans, by type:
  Commercial -
   industrial,
   financial and
   agricultural      $ 3,493,352 $ 3,095,492 $ 3,427,085    12.9%     1.9%
  Real estate -
   commercial
   mortgage            3,619,391   3,257,914   3,502,282    11.1%     3.3%
  Real estate -
   residential
   mortgage              882,977     699,528     851,577    26.2%     3.7%
  Real estate - home
   equity              1,547,323   1,425,948   1,501,231     8.5%     3.1%
  Real estate -
   construction        1,303,232   1,377,791   1,342,923    (5.4%)   (3.0%)
  Consumer               451,037     514,007     500,708   (12.3%)   (9.9%)
  Leasing and other       91,341      77,495      78,618    17.9%    16.2%
                     ----------- ----------- -----------
  Total Loans, net of
   unearned income   $11,388,653 $10,448,175 $11,204,424     9.0%     1.6%
                     =========== =========== ===========
Deposits, by type:
  Noninterest-bearing
   demand            $ 1,737,442 $ 1,795,265 $ 1,722,211    (3.2%)    0.9%
  Interest-bearing
   demand              1,712,601   1,683,652   1,715,315     1.7%    (0.2%)
  Savings deposits     2,157,749   2,274,727   2,131,374    (5.1%)    1.2%
  Time deposits        4,441,136   4,481,936   4,536,545    (0.9%)   (2.1%)
                     ----------- ----------- -----------
  Total Deposits     $10,048,928 $10,235,580 $10,105,445    (1.8%)   (0.6%)
                     =========== =========== ===========
Short-term borrowings,
 by type:
  Customer repurchase
   agreements        $   223,649 $   278,819 $   228,061   (19.8%)   (1.9%)
  Short-term
   promissory notes      496,706     359,365     443,002    38.2%    12.1%
  Federal funds
   purchased           1,103,804     442,362   1,057,335   149.5%     4.4%
  Other                  404,968      57,897     655,546   599.5%   (38.2%)
                     ----------- ----------- -----------
  Total Short-term
   borrowings        $ 2,229,127 $ 1,138,443 $ 2,383,944    95.8%    (6.5%)
                     =========== =========== ===========





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


                                 Quarter Ended           % Change from
                         ----------------------------  ------------------
                                             December            December
                         March 31  March 31     31     March 31     31
                           2008      2007      2007      2007      2007
                         --------  --------  --------  --------  --------

Interest Income:
  Interest Income        $229,220  $230,656  $240,069      (0.6%)    (4.5%)
  Interest Expense        103,321   108,881   116,418      (5.1%)   (11.2%)
                         --------  --------  --------
    Net Interest Income   125,899   121,775   123,651       3.4%      1.8%
  Provision for Loan
   Losses                  11,220       957     6,800   1,072.4%     65.0%
                         --------  --------  --------
    Net Interest Income
     after Provision      114,679   120,818   116,851      (5.1%)    (1.9%)
Other Income:
  Investment management
   and trust services       8,759     9,810     9,291     (10.7%)    (5.7%)
  Service charges on
   deposit accounts        13,967    10,627    13,355      31.4%      4.6%
  Other service charges
   and fees                 8,591     7,375     8,405      16.5%      2.2%
  Gains on sale of
   mortgage loans           2,311     5,393     2,181     (57.1%)     6.0%
  Investment securities
   gains (losses)           1,246     1,782      (537)    (30.1%)   332.0%
  Other                     2,806     4,078     2,516     (31.2%)    11.5%
                         --------  --------  --------
    Total Other Income     37,680    39,065    35,211      (3.5%)     7.0%
Other Expenses:
  Salaries and employee
   benefits                55,195    56,293    53,173      (2.0%)     3.8%
  Net occupancy expense    10,524    10,196    10,002       3.2%      5.2%
  Equipment expense         3,448     3,715     3,303      (7.2%)     4.4%
  Data processing           3,246     3,202     3,205       1.4%      1.3%
  Advertising               2,905     2,409     3,465      20.6%    (16.2%)
  Intangible amortization   1,857     1,983     2,158      (6.4%)   (13.9%)
  Operating risk loss       1,243     5,914       767     (79.0%)    62.1%
  Other                    18,242    17,193    22,374       6.1%    (18.5%)
                         --------  --------  --------
    Total Other Expenses   96,660   100,905    98,447      (4.2%)    (1.8%)
                         --------  --------  --------
    Income Before Income
     Taxes                 55,699    58,978    53,615      (5.6%)     3.9%
  Income Taxes             14,203    17,850    15,436     (20.4%)    (8.0%)
                         --------  --------  --------
    Net Income           $ 41,496  $ 41,128  $ 38,179       0.9%      8.7%
                         ========  ========  ========

SHARE AND PER-SHARE INFORMATION:

  Net income:
    Basic                $   0.24  $   0.24  $   0.22         -       9.1%
    Diluted                  0.24      0.24      0.22         -       9.1%

  Cash dividends         $ 0.1500  $ 0.1475  $ 0.1500       1.7%        -
  Shareholders' equity       9.28      8.79      9.08       5.6%      2.2%
  Shareholders' equity
   (tangible)                5.52      4.97      5.30      11.1%      4.2%

  Weighted average shares
   (basic)                173,624   173,273   173,416       0.2%      0.1%
  Weighted average shares
   (diluted)              174,209   174,878   174,155      (0.4%)       -
  Shares outstanding, end
   of period              173,722   173,083   173,503       0.4%      0.1%

SELECTED FINANCIAL RATIOS:

  Return on average
   assets                    1.05%     1.12%     0.97%
  Return on average
   shareholders' equity     10.53%    11.06%     9.72%
  Return on average
   shareholders' equity
   (tangible)               18.45%    20.34%    17.44%
  Net interest margin        3.58%     3.74%     3.56%
  Efficiency ratio          57.10%    60.98%    59.09%





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


                                                 Quarter Ended
                                     -------------------------------------
                                                 March 31, 2008
                                     -------------------------------------
                                       Balance    Interest(1)   Yield/Rate
                                     -----------  -----------  -----------
ASSETS

Interest-earning assets:
   Loans, net of unearned income     $11,295,531  $   192,422         6.85%
   Taxable investment securities       2,407,189       29,561         4.91%
   Tax-exempt investment securities      515,856        6,761         5.24%
   Equity securities                     213,004        2,380         4.48%
                                     -----------  -----------  -----------
   Total Investment Securities         3,136,049       38,702         4.94%

   Loans held for sale                    98,676        1,577         6.39%
   Other interest-earning assets          26,784          218         3.25%
                                     -----------  -----------  -----------
   Total Interest-earning Assets      14,557,040      232,919         6.43%

Noninterest-earning assets:
   Cash and due from banks               310,719
   Premises and equipment                196,037
   Other assets                          927,260
   Less: allowance for loan losses      (109,914)
                                     -----------

   Total Assets                      $15,881,142
                                     ===========


LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:
   Demand deposits                   $ 1,685,620  $     4,405         1.05%
   Savings deposits                    2,137,704        9,163         1.72%
   Time deposits                       4,520,004       49,918         4.44%
                                     -----------  -----------  -----------

   Total Interest-bearing Deposits     8,343,328       63,486         3.06%
   Short-term borrowings               2,347,463       18,828         3.19%
   Federal Home Loan Bank advances
    and long-term debt                 1,798,508       21,007         4.69%
                                     -----------  -----------  -----------
   Total Interest-bearing
    Liabilities                       12,489,299      103,321         3.32%

Noninterest-bearing liabilities:
   Demand deposits                     1,616,283
   Other                                 190,496
                                     -----------
   Total Liabilities                  14,296,078
   Shareholders' equity                1,585,064
                                     -----------
   Total Liabilities and
    Shareholders' Equity             $15,881,142
                                     ===========

   Net interest income/net interest
    margin (fully taxable
    equivalent)                                       129,598         3.58%
                                                               ===========
   Tax equivalent adjustment                           (3,699)
                                                  -----------
   Net interest income                            $   125,899
                                                  ===========



                                                 Quarter Ended
                                     -------------------------------------
                                                 March 31, 2007
                                     -------------------------------------
                                       Balance    Interest(1)   Yield/Rate
                                     -----------  -----------  -----------
ASSETS

Interest-earning assets:
   Loans, net of unearned income     $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%
   Federal Home Loan Bank advances
    and 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
                                     -------------------------------------
                                               December 31, 2007
                                     -------------------------------------
                                       Balance    Interest(1)  Yield/Rate
                                     -----------  -----------  -----------
ASSETS

Interest-earning assets:
   Loans, net of unearned income     $11,082,957  $   204,281         7.32%
   Taxable investment securities       2,348,449       28,420         4.84%
   Tax-exempt investment securities      494,790        6,462         5.22%
   Equity securities                     201,554        2,445         4.84%
                                     -----------  -----------  -----------
   Total Investment Securities         3,044,793       37,327         4.90%

   Loans held for sale                   101,788        1,730         6.79%
   Other interest-earning assets          24,136          291         4.78%
                                     -----------  -----------  -----------
   Total Interest-earning Assets      14,253,674      243,629         6.80%
Noninterest-earning assets:
   Cash and due from banks               323,490
   Premises and equipment                191,502
   Other assets                          907,267
   Less: allowance for loan losses      (110,922)
                                     -----------

   Total Assets                      $15,565,011
                                     ===========


LIABILITIES AND SHAREHOLDERS' EQUITY

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

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

(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 31    March 31   December 31  March 31 December 31
                    2008        2007        2007       2007       2007
                 ----------- ----------- ----------- ---------  ---------

Loans, by type:
  Commercial -
   industrial,
   financial and
   agricultural  $ 3,472,443 $ 3,031,242 $ 3,364,211      14.6%       3.2%
  Real estate -
   commercial
   mortgage        3,547,507   3,239,179   3,438,386       9.5%       3.2%
  Real estate -
   residential
   mortgage          861,054     701,918     831,825      22.7%       3.5%
  Real estate -
   home equity     1,526,475   1,441,741   1,486,367       5.9%       2.7%
  Real estate -
   construction    1,328,718   1,396,527   1,377,391      (4.9%)     (3.5%)
  Consumer           473,245     516,335     499,253      (8.3%)     (5.2%)
  Leasing and
   other              86,089      87,756      85,524      (1.9%)       0.7%
                 ----------- ----------- -----------

  Total Loans,
   net of
   unearned
   income        $11,295,531 $10,414,698 $11,082,957       8.5%       1.9%
                 =========== =========== ===========

Deposits, by type:
  Noninterest-
   bearing
   demand        $ 1,616,283 $ 1,721,135 $ 1,675,528      (6.1%)     (3.5%)
  Interest-
   bearing demand  1,685,620   1,657,714   1,721,831       1.7%      (2.1%)
  Savings deposits 2,137,704   2,295,822   2,179,753      (6.9%)     (1.9%)
  Time deposits    4,520,004   4,457,363   4,603,944       1.4%      (1.8%)
                 ----------- ----------- -----------

  Total Deposits $ 9,959,611 $10,132,034 $10,181,056      (1.7%)     (2.2%)
                 =========== =========== ===========

Short-term borrowings, by type:
  Customer
   repurchase
   agreements    $   226,921 $   256,658 $   237,346     (11.6%)     (4.4%)
  Short-term
   promissory
   notes             471,470     315,515     478,018      49.4%      (1.4%)
  Federal funds
   purchased       1,184,370     915,241     975,732      29.4%      21.4%
  Other              464,702      65,081     329,655     614.0%      41.0%
                 ----------- ----------- -----------

  Total Short-term
   borrowings    $ 2,347,463 $ 1,552,495 $ 2,020,751      51.2%      16.2%
                 =========== =========== ===========





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


                                                    Quarter Ended
                                           -------------------------------
                                           March 31   March 31  December 31
                                             2008       2007       2007
                                           ---------  ---------  ---------
ALLOWANCE FOR CREDIT LOSSES:

   Balance at beginning of period          $ 112,209  $ 106,884  $ 109,435

   Loans charged off                          (5,626)    (1,360)    (5,068)
   Recoveries of loans previously charged
    off                                        1,266      1,418      1,042
                                           ---------  ---------  ---------
   Net loans (charged off) recovered          (4,360)        58     (4,026)
   Provision for loan losses                  11,220        957      6,800
                                           ---------  ---------  ---------
   Balance at end of period                $ 119,069  $ 107,899  $ 112,209
                                           =========  =========  =========

   Net charge-offs (recoveries) to average
    loans (annualized)                          0.15%         -       0.15%
                                           =========  =========  =========


COMPONENTS OF ALLOWANCE FOR CREDIT LOSSES:
   Allowance for loan losses               $ 115,257  $ 107,899  $ 107,547
   Reserve for unfunded lending
    commitments (1)                            3,812          -      4,662
                                           ---------  ---------  ---------
   Allowance for credit losses             $ 119,069  $ 107,899  $ 112,209
                                           =========  =========  =========

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


NON-PERFORMING ASSETS:
   Non-accrual loans                       $  97,212  $  37,914  $  76,150
   Accruing loans 90+ days overdue            29,733     13,467     29,782
   Other real estate owned                    18,333      6,576     14,934
                                           ---------  ---------  ---------
   Total non-performing assets             $ 145,278  $  57,957  $ 120,866
                                           =========  =========  =========

ASSET QUALITY RATIOS:
   Non-accrual loans to total loans             0.85%      0.36%      0.68%
   Non-performing assets to total loans
    and OREO                                    1.27%      0.55%      1.08%
   Non-performing assets to total assets        0.90%      0.40%      0.76%
   Allowance for credit losses to loans
    outstanding                                 1.05%      1.03%      1.00%
   Allowance for loan losses to loans
    outstanding                                 1.01%      1.03%      0.96%
   Allowance for credit losses to
    non-performing loans                          94%       210%       106%

Contact Information

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