SOURCE: Fulton Financial Corporation

July 17, 2007 16:30 ET

Fulton Financial Reports Second Quarter Earnings

LANCASTER, PA--(Marketwire - July 17, 2007) - Fulton Financial Corporation (NASDAQ: FULT) earned $39.8 million for the second quarter ended June 30, 2007, a 14.7 percent decrease from the same period in 2006. Diluted net income per share for the quarter decreased to 23 cents, a 14.8 percent decrease from the 27 cents reported in 2006. Diluted net income per share decreased to 23 cents, a 4.2 percent decrease from the 24 cents reported in the first quarter of 2007.

The Corporation recorded a $3.4 million contingent loss during the second quarter of 2007 related to losses expected to be incurred due to the potential repurchase of residential mortgage loans and home equity loans that had been originated and sold in the secondary market. The Corporation also recorded a $1.5 million severance expense related to corporate-wide workforce management and centralization initiatives.

Net income was $81.0 million for the six months ended June 30, 2007, a 10.6 percent decrease from the same period in 2006. Diluted net income per share for the first six months of 2007 decreased to 46 cents, an 11.5 percent decrease from the 52 cents reported in 2006. Total assets at June 30, 2007 were approximately $15.1 billion.

"We have taken significant, aggressive steps to reduce expenses and increase revenue in response to the continued challenging business environment," said R. Scott Smith Jr., Chairman, Chief Executive Officer and President. "We expect to see the positive impact of these steps materialize in the last half of 2007 and into 2008. Commercial loan growth and deposit growth were stronger than we have seen in prior quarters. Growth in lower cost core deposits, combined with improved loan yields, contributed to an increase in normalized net interest margin."

"Overall," Smith continued, "we are seeing the development of more positive trends in a number of key areas that give us reason to be optimistic about our core banking business."

Loans, net of unearned income, increased $661.9 million, or 6.6 percent, to $10.7 billion at June 30, 2007, compared to $10.1 billion at June 30, 2006. The increase was realized mainly in commercial loans, which grew $350.1 million, or 12.1 percent, and commercial mortgages, which increased $267.8 million, or 8.7 percent. In comparison to the first quarter of 2007, loans, net of unearned income, increased $265.6 million, or 2.5 percent, which was mainly due to growth in commercial loans of $138.0 million, or 4.5 percent, and commercial mortgages, which increased $73.8 million, or 2.3 percent.

Non-performing assets were 0.49 percent of total assets at June 30, 2007, compared to 0.29 percent at June 30, 2006 and 0.40 percent at March 31, 2007. Annualized net charge-offs for the quarter ended June 30, 2007 were 0.14 percent of average total loans, compared to 0.02 percent for the quarter ended June 30, 2006 and annualized net recoveries of less than one basis point as a percentage of average total loans for the quarter ended March 31, 2007. For the six months ended June 30, 2007, annualized net charge-offs were 0.07 percent of average total loans, compared to 0.02 percent for the same period in 2006. The provision for loan losses increased $1.8 million, or 208.6 percent, for the second quarter of 2007, as compared to the same period in 2006, mainly as a result of the increase in net charge-offs.

Total deposits increased $171.6 million, or 1.7 percent, from June 30, 2006 to June 30, 2007, to $10.3 billion. Time deposits increased $336.8 million, or 8.0 percent, offset by a $165.2 million, or 2.8 percent, decrease in demand and savings deposits. In comparison to the first quarter of 2007, total deposits increased $82.7 million, or 0.8 percent, due to increases in both time deposits and demand and savings deposits.

Net interest income for the second quarter decreased $1.9 million, or 1.6 percent, compared to the second quarter of 2006. The decrease from the first quarter of 2007 was $867,000, or 0.7 percent. Fulton Financial's net interest margin was 3.70 percent for the second quarter of 2007, 3.90 for the second quarter of 2006 and 3.74 percent for first quarter of 2007. Interest recoveries and other nonrecurring items added approximately 11 basis points to the net interest margin in the first quarter of 2007. As a result, on a normalized basis net interest margin improved.

Other income, excluding investment securities gains, increased $1.8 million, or 5.2 percent, in the second quarter of 2007 compared to the same period in 2006. The increase resulted primarily from increases in investment management and trust services and in other service charges and fees, offset by a decline in gains on sales of mortgage loans. Compared to the first quarter of 2007, other income, excluding security gains, decreased $907,000, or 2.4 percent, primarily due to a decrease in gains on sales of fixed assets and mortgage loans, offset by an increase in service charges on deposit accounts.

Other expenses increased $7.3 million, or 8.1 percent, compared to the second quarter of 2006, to $98.1 million. A non-recurring item contributing to the increase was the additional $3.4 million contingent loss related to the potential repurchase of residential mortgage and home equity loans that had been originated and sold in the secondary market by Resource Mortgage. Compared to the first quarter of 2007, other expenses decreased $2.8 million, or 2.8 percent.

Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company which operates 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 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


                                             June 30
                                     -------------------------
BALANCE SHEET DATA                       2007         2006       % Change
                                     ------------ ------------ -----------

Total assets                         $ 15,080,415 $ 14,561,545         3.6%
Loans, net of unearned income          10,713,819   10,051,957         6.6%
Investment securities                   2,750,394    2,743,777         0.2%
Deposits                               10,318,239   10,146,652         1.7%
Shareholders' equity                    1,531,660    1,440,188         6.4%



                 Quarter Ended                 Six Months Ended
                    June 30                        June 30
              --------------------           --------------------
INCOME                                 %                              %
 SUMMARY        2007       2006     Change     2007       2006     Change
              ---------  ---------  -------  ---------  ---------  -------

Interest
 income       $ 230,112  $ 213,206     7.9%  $ 460,768  $ 405,858    13.5%
Interest
 expense       (109,204)   (90,355)   20.9%   (218,085)  (167,964)   29.8%
              ---------  ---------           ---------  ---------
  Net
   interest
   income       120,908    122,851    (1.6%)   242,683    237,894     2.0%
Provision for
 loan losses     (2,700)      (875)  208.6%     (3,657)    (1,875)   95.0%
Investment
 securities
 gains              629      1,409   (55.4%)     2,411      4,074   (40.8%)
Other income     36,376     34,593     5.2%     73,659     68,535     7.5%
Other
 expenses       (98,107)   (90,793)    8.1%   (199,012)  (178,809)   11.3%
              ---------  ---------           ---------  ---------
  Income
   before
   income
   taxes         57,106     67,185   (15.0%)   116,084    129,819   (10.6%)
Income taxes    (17,261)   (20,484)  (15.7%)   (35,111)   (39,239)  (10.5%)
              ---------  ---------           ---------  ---------
  Net income  $  39,845  $  46,701   (14.7%) $  80,973  $  90,580   (10.6%)
              =========  =========           =========  =========

PER-SHARE
 DATA:

Net income:
   Basic      $    0.23  $    0.27   (14.8%) $    0.47  $    0.53   (11.3%)
   Diluted         0.23       0.27   (14.8%)      0.46       0.52   (11.5%)
   Cash
    dividends    0.1500     0.1475     1.7%      0.298      0.286     4.2%

Shareholders'
 equity            8.84       8.31     6.4%
Shareholders'
 equity
 (tangible)        5.03       4.48    12.3%

SELECTED
 FINANCIAL
 RATIOS:

Return on
 average
 assets            1.08%      1.32%               1.10%      1.32%
Return on
 average
 shareholders'
 equity           10.52%     13.01%              10.79%     12.92%
Return on
 average
 shareholders'
 equity
 (tangible)       19.30%     24.87%              19.81%     23.93%
Net interest
 margin            3.70%      3.90%               3.72%      3.89%
Efficiency
 ratio            59.72%     55.37%              60.35%     56.08%
Non-performing
 assets to
 total assets      0.49%      0.29%




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

                                                            % Change from
                                                          ----------------
                                                                    March
                  June 30       June 30       March 31    June 30    31
                    2007          2006          2007        2006     2007
                ------------  ------------  ------------  -------  -------

ASSETS
  Cash and due
   from banks   $    381,714  $    410,563  $    344,969     (7.0%)  10.7%
  Loans held
   for sale          185,471       268,966       206,422    (31.0%) (10.1%)
  Other
   interest-
   earning
   assets             14,367        39,364        17,677    (63.5%) (18.7%)
  Investment
   securities      2,750,394     2,743,777     2,621,608      0.2%    4.9%
  Loans, net of
   unearned       10,713,819    10,051,957    10,448,175      6.6%    2.5%
  Allowance for
   loan losses      (106,892)     (106,544)     (107,899)     0.3%   (0.9%)
                ------------  ------------  ------------
       Net
        Loans     10,606,927     9,945,413    10,340,276      6.7%    2.6%
  Premises and
   equipment         188,893       185,677       190,442      1.7%   (0.8%)
  Accrued
   interest
   receivable         71,785        63,589        67,580     12.9%    6.2%
  Goodwill and
   intangible
   assets            659,739       663,951       662,085     (0.6%)  (0.4%)
  Other assets       221,125       240,245       219,277     (8.0%)   0.8%
                ------------  ------------  ------------
       Total
        Assets  $ 15,080,415  $ 14,561,545  $ 14,670,336      3.6%    2.8%
                ============  ============  ============

LIABILITIES AND
 SHAREHOLDERS'
 EQUITY
  Deposits      $ 10,318,239  $ 10,146,652  $ 10,235,580      1.7%    0.8%
  Short-term
   borrowings      1,496,407     1,765,723     1,138,443    (15.3%)  31.4%
  Long-term
   debt            1,555,351     1,024,144     1,576,283     51.9%   (1.3%)
  Other
   liabilities       178,758       184,838       198,099     (3.3%)  (9.8%)
                ------------  ------------  ------------
   Total
    Liabilities   13,548,755    13,121,357    13,148,405      3.3%    3.0%
  Shareholders'
   equity          1,531,660     1,440,188     1,521,931      6.4%    0.6%
                ------------  ------------  ------------
   Total
    Liabilities
    and
    Shareholders'
    Equity      $ 15,080,415  $ 14,561,545  $ 14,670,336      3.6%    2.8%
                ============  ============  ============

LOANS, DEPOSITS
 AND SHORT-TERM
 BORROWINGS
 DETAIL:
Loans, by type:
  Commercial -
   industrial
   and
   financial    $  2,864,939  $  2,553,375  $  2,730,456     12.2%    4.9%
  Commercial -
   agricultural      368,591       330,063       365,036     11.7%    1.0%
  Real estate -
   commercial
   mortgage        3,331,676     3,063,863     3,257,914      8.7%    2.3%
  Real estate -
   residential
   mortgage          731,966       647,776       699,528     13.0%    4.6%
  Real estate -
   home equity     1,447,058     1,442,241     1,425,948      0.3%    1.5%
  Real estate -
   construction    1,379,449     1,408,144     1,377,791     (2.0%)   0.1%
  Consumer           505,365       521,378       514,007     (3.1%)  (1.7%)
  Leasing and
   other              84,775        85,117        77,495     (0.4%)   9.4%
                ------------  ------------  ------------
  Total Loans,
   net of
   unearned
   income       $ 10,713,819  $ 10,051,957  $ 10,448,175      6.6%    2.5%
                ============  ============  ============
Deposits, by
 type:
  Noninterest-
   bearing
   demand       $  1,818,862  $  1,910,565  $  1,795,265     (4.8%)   1.3%
  Interest-
   bearing
   demand          1,667,455     1,649,681     1,683,652      1.1%   (1.0%)
  Savings
   deposits        2,292,257     2,383,533     2,274,727     (3.8%)   0.8%
  Time deposits    4,539,665     4,202,873     4,481,936      8.0%    1.3%
                ------------  ------------  ------------
  Total
   Deposits     $ 10,318,239  $ 10,146,652  $ 10,235,580      1.7%    0.8%
                ============  ============  ============
Short-term
 borrowings, by
 type:
  Customer
   repurchase
   agreements   $    261,568  $    356,440  $    278,819    (26.6%)  (6.2%)
  Federal funds
   purchased         830,327     1,236,941       442,362    (32.9%)  87.7%
  Short-term
   promissory
   notes             399,317       141,307       359,365    182.6%   11.1%
  Other                5,195        31,035        57,897    (83.3%) (91.0%)
                ------------  ------------  ------------
  Total
   Short-term
   borrowings   $  1,496,407  $  1,765,723  $  1,138,443    (15.3%)  31.4%
                ============  ============  ============





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


                              Quarter Ended               % Change from
                     -------------------------------  --------------------
                      June 30    June 30   March 31    June 30   March 31
                       2007       2006       2007       2006       2007
                     ---------  ---------  ---------  ---------  ---------

Interest Income:
  Interest Income    $ 230,112  $ 213,206  $ 230,656        7.9%     (0.2%)
  Interest Expense     109,204     90,355    108,881       20.9%      0.3%
                     ---------  ---------  ---------
   Net Interest
    Income             120,908    122,851    121,775       (1.6%)    (0.7%)
  Provision for Loan
   Losses                2,700        875        957      208.6%    182.1%
                     ---------  ---------  ---------
   Net Interest
    Income after
    Provision          118,208    121,976    120,818       (3.1%)    (2.2%)
Other Income:
  Investment
   management and
   trust services       10,273      9,056      9,810       13.4%      4.7%
  Service charges on
   deposit accounts     11,225     10,892     10,627        3.1%      5.6%
  Other service
   charges and fees      7,841      6,576      7,375       19.2%      6.3%
  Gains on sale of
   mortgage loans        4,188      5,187      5,393      (19.3%)   (22.3%)
  Investment
   securities gains        629      1,409      1,782      (55.4%)   (64.7%)
  Other                  2,849      2,882      4,078       (1.1%)   (30.1%)
                     ---------  ---------  ---------
   Total Other
    Income              37,005     36,002     39,065        2.8%     (5.3%)
Other Expenses:
  Salaries and
   employee benefits    55,555     53,390     56,293        4.1%     (1.3%)
  Net occupancy
   expense               9,954      9,007     10,196       10.5%     (2.4%)
  Equipment expense      3,436      3,495      3,715       (1.7%)    (7.5%)
  Data processing        3,217      3,165      3,202        1.6%      0.5%
  Advertising            2,990      3,027      2,409       (1.2%)    24.1%
  Intangible
   amortization          2,198      2,006      1,983        9.6%     10.8%
  Other                 20,757     16,703     23,107       24.3%    (10.2%)
                     ---------  ---------  ---------
   Total Other
    Expenses            98,107     90,793    100,905        8.1%     (2.8%)
                     ---------  ---------  ---------
   Income Before
    Income Taxes        57,106     67,185     58,978      (15.0%)    (3.2%)
  Income Taxes          17,261     20,484     17,850      (15.7%)    (3.3%)
                     ---------  ---------  ---------
   Net Income        $  39,845  $  46,701  $  41,128      (14.7%)    (3.1%)
                     =========  =========  =========

SHARE AND PER-SHARE
 INFORMATION:
  Net income:
   Basic             $    0.23  $    0.27  $    0.24      (14.8%)    (4.2%)
   Diluted                0.23       0.27       0.24      (14.8%)    (4.2%)

  Cash dividends     $  0.1500  $  0.1475  $  0.1475        1.7%      1.7%
  Shareholders'
   equity                 8.84       8.31       8.79        6.4%      0.6%
  Shareholders'
   equity (tangible)      5.03       4.48       4.97       12.3%      1.2%

  Weighted average
   shares (basic)      173,184    173,449    173,273       (0.2%)    (0.1%)
  Weighted average
   shares (diluted)    174,417    175,484    174,878       (0.6%)    (0.3%)
  Shares
   outstanding, end
   of period           173,270    173,279    173,083          -       0.1%

SELECTED FINANCIAL
 RATIOS:
  Return on average
   assets                 1.08%      1.32%      1.12%
  Return on average
   shareholders'
   equity                10.52%     13.01%     11.06%
  Return on average
   shareholders'
   equity (tangible)     19.30%     24.87%     20.34%
  Net interest
   margin                 3.70%      3.90%      3.74%
  Efficiency ratio       59.72%     55.37%     60.98%
                     =========  =========  =========



                       Six Months Ended
                           June 30
                     --------------------
                       2007       2006     % Change
                     ---------  ---------  ---------

Interest Income:
  Interest Income    $ 460,768  $ 405,858       13.5%
  Interest Expense     218,085    167,964       29.8%
                     ---------  ---------
   Net Interest
    Income             242,683    237,894        2.0%
  Provision for Loan
   Losses                3,657      1,875       95.0%
                     ---------  ---------
   Net Interest
    Income after
    Provision          239,026    236,019        1.3%
Other Income:
  Investment
   management and
   trust services       20,083     19,088        5.2%
  Service charges on
   deposit accounts     21,852     21,139        3.4%
  Other service
   charges and fees     15,216     13,230       15.0%
  Gains on sale of
   mortgage loans        9,581      9,959       (3.8%)
  Investment
   securities gains      2,411      4,074      (40.8%)
  Other                  6,927      5,119       35.3%
                     ---------  ---------
   Total Other
    Income              76,070     72,609        4.8%
Other Expenses:
  Salaries and
   employee benefits   111,848    103,319        8.3%
  Net occupancy
   expense              20,150     17,596       14.5%
  Equipment expense      7,151      7,088        0.9%
  Data processing        6,419      6,074        5.7%
  Advertising            5,399      5,280        2.3%
  Intangible
   amortization          4,181      3,858        8.4%
  Other                 43,864     35,594       23.2%
                     ---------  ---------
   Total Other
    Expenses           199,012    178,809       11.3%
                     ---------  ---------
   Income Before
    Income Taxes       116,084    129,819      (10.6%)
  Income Taxes          35,111     39,239      (10.5%)
                     ---------  ---------
   Net Income        $  80,973  $  90,580      (10.6%)
                     =========  =========

SHARE AND PER-SHARE
 INFORMATION:
  Net income:
   Basic             $    0.47  $    0.53      (11.3%)
   Diluted                0.46       0.52      (11.5%)

  Cash dividends     $   0.298  $   0.286        4.2%
  Shareholders'
   equity
  Shareholders'
   equity (tangible)

  Weighted average
   shares (basic)      173,228    172,166        0.6%
  Weighted average
   shares (diluted)    174,595    174,335        0.1%
  Shares
   outstanding, end
   of period

SELECTED FINANCIAL
 RATIOS:
  Return on average
   assets                 1.10%      1.32%
  Return on average
   shareholders'
   equity                10.79%     12.92%
  Return on average
   shareholders'
   equity (tangible)     19.81%     23.93%
  Net interest
   margin                 3.72%      3.89%
  Efficiency ratio       60.35%     56.08%
                     =========  =========



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

                                      Quarter Ended
              ------------------------------------------------------------
                      June 30, 2007                  June 30, 2006
              -----------------------------  -----------------------------
                            Interest   Rate                Interest   Rate
                Balance        (1)     (1)     Balance        (1)     (1)
              ------------  ---------  ----  ------------  ---------  ----
ASSETS
Interest-
 earning
 assets:
  Loans and
   leases     $ 10,582,300  $ 199,085  7.54% $  9,846,025  $ 181,019  7.37%
  Taxable
   investment
   securities    1,973,214     21,999  4.46%    2,242,945     23,564  4.20%
  Tax-exempt
   investment
   securities      500,341      6,405  5.12%      430,246      5,200  4.83%
  Equity
   securities      188,558      2,230  4.74%      152,210      1,740  4.58%
              ------------  ---------  ----  ------------  ---------  ----
  Total
   Investment
   Securities    2,662,113     30,634  4.60%    2,825,401     30,504  4.32%
  Loans held
   for sale        197,852      3,393  6.86%      222,103      4,006  7.21%
  Other
   interest-
   earning
   assets           25,311        311  4.90%       50,422        592  4.69%
              ------------  ---------  ----  ------------  ---------  ----
  Total
   Interest-
   earning
   Assets       13,467,576    233,423  6.95%   12,943,951    216,121  6.70%
Noninterest-
 earning
 assets:
  Cash and
   due from
   banks           340,752                        335,009
  Premises
   and
   equipment       189,975                        183,587
  Other
   assets          899,160                        862,739
  Less:
   allowance
   for loan
   losses         (108,952)                      (106,727)
              ------------                   ------------
  Total
   Assets     $ 14,788,511                   $ 14,218,559
              ============                   ============


LIABILITIES
 AND
 SHAREHOLDERS'
 EQUITY
Interest-
 bearing
 liabilities:
  Demand
   deposits   $  1,676,528  $   7,198  1.72% $  1,672,116  $   6,008  1.44%
  Savings
   deposits      2,298,910     13,776  2.40%    2,378,005     12,363  2.08%
  Time
   deposits      4,526,107     52,825  4.68%    4,082,429     40,625  3.99%
              ------------  ---------  ----  ------------  ---------  ----
  Total
   Interest-
   bearing
   Deposits      8,501,545     73,799  3.48%    8,132,550     58,996  2.91%
  Short-term
   borrowings    1,243,370     14,894  4.77%    1,602,894     18,427  4.56%
  Long-term
   debt          1,585,125     20,511  5.19%    1,010,744     12,932  5.13%
              ------------  ---------  ----  ------------  ---------  ----
  Total
   Interest-
   bearing
   Liabilities  11,330,040    109,204  3.86%   10,746,188     90,355 3.36%
Noninterest-
 bearing
 liabilities:
  Demand
   deposits      1,756,271                      1,859,273
  Other            183,449                        173,213
              ------------                   ------------
  Total
   Liabilities  13,269,760                     12,778,674
  Shareholders'
   equity        1,518,751                      1,439,885
              ------------                   ------------
  Total
   Liabilities
   and
   Shareholders'
   Equity     $ 14,788,511                   $ 14,218,559
              ============                   ============

  Net
   interest
   income/net
   interest
   margin
   (fully
   taxable
   equivalent)                124,219  3.70%                 125,766  3.90%
                                       ====                           ====
  Tax
   equivalent
   adjustment                  (3,311)                        (2,915)
                            ---------                      ---------
  Net
   interest
   income                   $ 120,908                      $ 122,851
                            =========                      =========




                      Quarter Ended
              -----------------------------
                      March 31, 2007
              -----------------------------
                            Interest   Rate
                Balance        (1)     (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
   Iiabilities  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
                            =========

  (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
                     June 30      June 30      March 31   June 30    31
                       2007         2006         2007       2006     2007
                   ------------ ------------ ------------ -------  -------
Loans, by type:
  Commercial -
   industrial and
   financial       $  2,805,554 $  2,466,241 $  2,670,641    13.8%    5.1%
  Commercial -
   agricultural         366,679      325,409      360,601    12.7%    1.7%
  Real estate -
   commercial
   mortgage           3,287,308    3,039,417    3,239,179     8.2%    1.5%
  Real estate -
   residential
   mortgage             710,433      624,681      701,918    13.7%    1.2%
  Real estate -
   home equity        1,435,467    1,420,194    1,441,741     1.1%   (0.4%)
  Real estate -
   construction       1,381,552    1,373,038    1,396,527     0.6%   (1.1%)
  Consumer              506,965      520,792      516,335    (2.7%)  (1.8%)
  Leasing and
   other                 88,342       76,253       87,756    15.9%    0.7%
                   ------------ ------------ ------------

  Total Loans, net
   of unearned
   income          $ 10,582,300 $  9,846,025 $ 10,414,698     7.5%    1.6%
                   ============ ============ ============

Deposits, by type:
  Noninterest-
   bearing demand  $  1,756,271 $  1,859,273 $  1,721,135    (5.5%)   2.0%
  Interest-bearing
   demand             1,676,528    1,672,116    1,657,714     0.3%    1.1%
  Savings deposits    2,298,910    2,378,005    2,295,822    (3.3%)   0.1%
  Time deposits       4,526,107    4,082,429    4,457,363    10.9%    1.5%
                   ------------ ------------ ------------

  Total Deposits   $ 10,257,816 $  9,991,823 $ 10,132,034     2.7%    1.2%
                   ============ ============ ============

Short-term
 borrowings, by
 type:
  Customer
   repurchase
   agreements      $    255,685 $    357,384 $    256,658   (28.5%)  (0.4%)
  Federal funds
   purchased            586,007    1,072,560      915,241   (45.4%) (36.0%)
  Short-term
   promissory
   notes                376,149      133,716      315,515   181.3%   19.2%
  Other                  25,529       39,234       65,081   (34.9%) (60.8%)
                   ------------ ------------ ------------

  Total Short-term
   borrowings      $  1,243,370 $  1,602,894 $  1,552,495   (22.4%) (19.9%)
                   ============ ============ ============





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

                                          Six Months Ended June 30
                                  ----------------------------------------
                                                    2007
                                  ------------  ------------  ------------
                                    Balance     Interest (1)    Rate (1)
                                  ------------  ------------  ------------
ASSETS
Interest-earning assets:
  Loans and leases                $ 10,498,962  $    395,643          7.59%
  Taxable investment securities      2,081,123        46,618          4.48%
  Tax-exempt investment
   securities                          496,546        12,633          5.09%
  Equity securities                    183,550         4,359          4.76%
                                  ------------  ------------  ------------
  Total Investment Securities        2,761,219        63,610          4.61%
  Loans held for sale                  202,826         7,077          6.98%
  Other interest-earning assets         36,756           907          4.94%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     13,499,763       467,237          6.97%
Noninterest-earning assets:
  Cash and due from banks              328,429
  Premises and equipment               190,984
  Other assets                         899,499
  Less: allowance for loan losses     (108,321)
                                  ------------
  Total Assets                    $ 14,810,354
                                  ============

LIABILITIES AND SHAREHOLDERS'
 EQUITY
Interest-bearing liabilities:
  Demand deposits                 $  1,667,173  $     14,103          1.71%
  Savings deposits                   2,297,374        27,586          2.42%
  Time deposits                      4,491,926       103,318          4.64%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits    8,456,473       145,007          3.46%
  Short-term borrowings              1,397,080        33,948          4.86%
  Long-term debt                     1,517,944        39,130          5.19%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                      11,371,497       218,085          3.86%
Noninterest-bearing liabilities:
  Demand deposits                    1,738,799
  Other                                186,355
                                  ------------
  Total Liabilities                 13,296,651
  Shareholders' equity               1,513,703
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 14,810,354
                                  ============

  Net interest income/net
   interest margin (fully taxable
   equivalent)                                       249,152          3.72%
                                                              ============
  Tax equivalent adjustment                           (6,469)
                                                ------------
  Net interest income                           $    242,683
                                                ============




                                          Six Months Ended June 30
                                  ----------------------------------------
                                                    2006
                                  ------------  ------------  ------------
                                    Balance     Interest (1)    Rate (1)
                                  ------------  ------------  ------------
ASSETS
Interest-earning assets:
  Loans and leases                $  9,538,542  $    342,902          7.24%
  Taxable investment securities      2,214,666        46,103          4.16%
  Tax-exempt investment
   securities                          433,087        10,385          4.80%
  Equity securities                    148,630         3,299          4.45%
                                  ------------  ------------  ------------
  Total Investment Securities        2,796,383        59,787          4.28%
  Loans held for sale                  210,834         7,464          7.08%
  Other interest-earning assets         56,870         1,255          4.43%
                                  ------------  ------------  ------------
  Total Interest-earning Assets     12,602,629       411,408          6.57%
Noninterest-earning assets:
  Cash and due from banks              346,681
  Premises and equipment               180,690
  Other assets                         825,037
  Less: allowance for loan losses     (104,376)
                                  ------------
  Total Assets                    $ 13,850,661
                                  ============

LIABILITIES AND SHAREHOLDERS'
 EQUITY
Interest-bearing liabilities:
  Demand deposits                 $  1,669,327  $     11,583          1.40%
  Savings deposits                   2,325,678        22,923          1.99%
  Time deposits                      3,914,400        74,680          3.85%
                                  ------------  ------------  ------------
  Total Interest-bearing Deposits    7,909,405       109,186          2.78%
  Short-term borrowings              1,545,414        33,733          4.36%
  Long-term debt                     1,003,152        25,045          5.03%
                                  ------------  ------------  ------------
  Total Interest-bearing
   Liabilities                      10,457,971       167,964          3.23%
Noninterest-bearing liabilities:
  Demand deposits                    1,812,843
  Other                                166,346
                                  ------------
  Total Liabilities                 12,437,160
  Shareholders' equity               1,413,501
                                  ------------
  Total Liabilities and
   Shareholders' Equity           $ 13,850,661
                                  ============

  Net interest income/net
   interest margin (fully taxable
   equivalent)                                       243,444          3.89%
                                                              ============
  Tax equivalent adjustment                           (5,550)
                                                ------------
  Net interest income                           $    237,894
                                                ============

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


AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

                                         Six Months Ended
                                             June 30
                                     -------------------------
                                         2007         2006       % Change
                                     ------------ ------------ -----------

Loans, by type:
  Commercial - industrial and
   financial                         $  2,738,471 $  2,372,936       15.4%
  Commercial - agricultural               363,656      326,662       11.3%
  Real estate - commercial mortgage     3,263,376    2,992,308        9.1%
  Real estate - residential mortgage      706,199      607,269       16.3%
  Real estate - home equity             1,438,586    1,377,285        4.5%
  Real estate - construction            1,388,998    1,268,781        9.5%
  Consumer                                511,625      519,567       (1.5%)
  Leasing and other                        88,051       73,734       19.4%
                                     ------------ ------------

  Total Loans, net of unearned
   income                            $ 10,498,962 $  9,538,542       10.1%
                                     ============ ============

Deposits, by type:
  Noninterest-bearing demand         $  1,738,799 $  1,812,843       (4.1%)
  Interest-bearing demand               1,667,173    1,669,327       (0.1%)
  Savings deposits                      2,297,374    2,325,678       (1.2%)
  Time deposits                         4,491,926    3,914,400       14.8%
                                     ------------ ------------

  Total Deposits                     $ 10,195,272 $  9,722,248        4.9%
                                     ============ ============

Short-term borrowings, by type:
  Customer repurchase agreements     $    256,170 $    369,933      (30.8%)
  Federal funds purchased                 749,715    1,055,144      (28.9%)
  Short-term promissory notes             345,999       89,117      288.3%
  Other                                    45,196       31,220       44.8%
                                     ------------ ------------

  Total Short-term borrowings        $  1,397,080 $  1,545,414       (9.6%)
                                     ============ ============






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


                              Quarter Ended             Six Months Ended
                     -------------------------------        June 30
                      June 30    June 30   March 31   --------------------
                       2007       2006       2007       2007       2006
                     ---------  ---------  ---------  ---------  ---------
ALLOWANCE FOR LOAN
 LOSSES:
  Balance at
   beginning of
   period            $ 107,899  $ 106,195  $ 106,884  $ 106,884  $  92,847
  Loans charged off     (4,506)    (1,679)    (1,360)    (5,866)    (3,179)
  Recoveries of
   loans previously
   charged off             799      1,153      1,418      2,217      2,010
                     ---------  ---------  ---------  ---------  ---------
  Net loans
   (charged off)
   recovered            (3,707)      (526)        58     (3,649)    (1,169)
  Provision for loan
   losses                2,700        875        957      3,657      1,875
  Allowance
   purchased                 -          -          -          -     12,991
                     ---------  ---------  ---------  ---------  ---------
  Balance at end of
   period            $ 106,892  $ 106,544  $ 107,899  $ 106,892  $ 106,544
                     =========  =========  =========  =========  =========

  Net charge-offs
   (recoveries) to
   average loans
   (annualized)           0.14%      0.02%         -       0.07%      0.02%
                     =========  =========  =========  =========  =========

NON-PERFORMING
 ASSETS:
  Non-accrual loans  $  46,683  $  26,299  $  37,914
  Accruing loans 90+
   days overdue         21,559     13,421     13,467
  Other real estate
   owned                 5,899      3,125      6,576
                     ---------  ---------  ---------
  Total
   non-performing
   assets            $  74,141  $  42,845  $  57,957
                     =========  =========  =========

ASSET QUALITY
 RATIOS:
  Non-accrual loans
   to total loans         0.44%      0.26%      0.36%
  Non-performing
   assets to total
   loans and OREO         0.69%      0.43%      0.55%
  Non-performing
   assets to total
   assets                 0.49%      0.29%      0.40%
  Allowance for loan
   losses to loans
   outstanding            1.00%      1.06%      1.03%
  Allowance/non-per-
   forming loans           157%       268%       210%

Contact Information

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