8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report: October 17, 2006

(Date of earliest event reported): October 17, 2006

Commission File No. 0-10587

FULTON FINANCIAL CORPORATION

(Exact name of Registrant as specified in its Charter)

Pennsylvania (State or other jurisdiction of incorporation)	23-2195389 (IRS Employer Identification Number)
One Penn Square Lancaster, Pennsylvania (Address of principal executive offices)	17602 (Zip Code)

Registrant’s telephone number, including area code: 717-291-2411

Former name or former address, if changed since last Report: N/A

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

o Pre-commencement to communications pursuant to Rule 13e-4(c) under the Exchange Act

Item 2.02 — Results of Operations and Financial Condition

On October 17, 2006 Fulton Financial Corporation announced its results of operations for the third quarter ended September 30, 2006. A copy of the earnings release is attached as Exhibit 99.1 to this Form 8-K. Supplemental financial information included with the earnings release is attached as Exhibit 99.2 to this report.

Item 9.01 Financial Statements And Exhibits

(d) Exhibits.

Exhibit No.	Description
99.1	Earnings Release dated October 18, 2006.
99.2	Supplemental financial information for the quarter ended September 30, 2006

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: October 17, 2006	FULTON FINANCIAL CORPORATION
	By:	/s/ Charles J. Nugent
		Charles J. Nugent
		Senior Executive Vice President and Chief Financial Officer

3

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE	Contact:	Laura J. Wakeley
	Office:	717-291-2739

Fulton Financial reports 14.8 percent increase
in third quarter 2006 earnings

     (October 17) – Lancaster, PA — Fulton Financial Corporation (Nasdaq: FULT) earned $48.3 million for the third quarter ended September 30, 2006, a 14.8 percent increase over the same period in 2005. Diluted net income per share for the quarter increased to 28 cents, a 12.0 percent increase over the 25 cents reported in 2005.

     Net income was $138.9 million for the nine months ended September 30, 2006, an 11.0 percent increase over the same period in 2005. Diluted net income per share for the first nine months of 2006 increased to 80 cents, a 6.7 percent increase over the 75 cents reported in 2005. Total assets at September 30, 2006 were approximately $14.9 billion.

     “During the third quarter, we experienced strong loan growth while maintaining our historically strong asset quality,” said R. Scott Smith Jr., chairman, chief executive officer and president. “The positive impact to earnings caused by loan growth was tempered somewhat by the challenge associated with declining margins due to higher overall funding costs.”

     Loans, net of unearned income, increased $2.0 billion, or 24.6 percent, to $10.3 billion at September 30, 2006, compared to $8.3 billion at September 30, 2005. Approximately $1.1 billion of this increase resulted from the February 1, 2006 acquisition of The Columbia Bank (Columbia). The remaining increase was realized mainly in commercial mortgages, which grew $302.9 million, or 11.1 percent, commercial loans, which increased $275.5 million, or 13.4 percent, and construction loans, which increased $202.9 million, or 25.6 percent.

     Nonperforming assets were 0.31 percent of total assets at September 30, 2006, compared to 0.29 percent at June 30, 2006 and 0.39 percent at September 30, 2005. Annualized net recoveries for the quarter ended September 30, 2006 were 0.01 percent of average total loans, compared to annualized net charge-offs of 0.02 percent for both the quarter ended June 30, 2006 and the quarter ended September 30, 2005. For the nine months ended September 30, 2006, annualized net charge-offs were 0.01 percent of average total loans, compared to 0.02 percent for

-MORE-

Page 2 . . . Fulton Financial reports 14.8 percent increase in third quarter 2006 earnings

the same period in 2005. The provision for loan losses decreased $260,000, or 31.9 percent, for the third quarter of 2006 as compared to the same period in 2005.

     Total deposits increased $1.5 billion, or 16.6 percent, from September 30, 2005 to September 30, 2006, to $10.3 billion. Approximately $1.0 billion of this increase resulted from the Columbia acquisition, with the remaining $500 million increase realized in time deposits, which increased $560 million, or 16.7 percent, offset by a $90 million, or 2.8 percent, decrease in demand deposits.

     Net interest income for the third quarter increased $19.4 million, or 18.3 percent, compared to the third quarter of 2005, with approximately $14.4 million attributable to the Columbia acquisition. The increase from the second quarter of 2006 was $3.1 million, or 2.5 percent. Fulton Financial’s net interest margin was 3.85 percent for third quarter of 2006, 3.90 percent for the second quarter of 2006 and 3.91 percent for the third quarter of 2005. During the third quarter of 2006, $3.3 million of interest recoveries on loans added 10 basis points to net interest margin. Interest recoveries of $837,000 in the second quarter of 2006 and $578,000 in the third quarter of 2005 added two basis points to net interest margin in these periods, respectively.

     Other income, excluding investment securities gains, increased $204,000, or 0.6 percent, in the third quarter of 2006 compared to the same period in 2005. Columbia contributed $1.2 million to other income. The remaining $1.0 million net decrease resulted from decreases in gains on mortgage loan sales. Compared to the second quarter of 2006, other income increased $869,000, or 2.5 percent.

     Other expenses increased $10.9 million, or 13.4 percent, compared to the third quarter of 2005, to $92.4 million. Columbia added $10.1 million to other expense during the period. The remaining increase of $835,000 resulted from increased salaries and employee benefits and occupancy expenses. Compared to the second quarter of 2006, other expenses increased $1.6 million, or 1.8 percent. Fulton Financial’s efficiency ratio for the third quarter of 2006 was 55.0 percent, compared to 55.4 percent for the second quarter of 2006 and 55.5 percent for the third quarter of 2005.

     Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company which operates 259 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; Premier Bank, Doylestown, PA; Resource Bank, Virginia

Page 3 . . . Fulton Financial reports 14.8 percent increase in third quarter 2006 earnings

Beach, VA; First Washington State Bank, Windsor, NJ; Somerset Valley Bank, Somerville, NJ and The Columbia Bank, Columbia, MD.

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

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

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

Safe Harbor Statement:

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

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

# # #

2006

EX-99.2

Exhibit 99.2

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

	September 30
BALANCE SHEET DATA	2006		2005		% Change
Total assets	$	14,910,652	$	12,304,200		21.2	%
Loans, net of unearned income		10,312,057		8,275,710		24.6	%
Investment securities		2,950,671		2,489,575		18.5	%
Deposits		10,277,028		8,811,217		16.6	%
Shareholders’ equity		1,497,693		1,278,328		17.2	%

										Nine Months Ended
	Quarter Ended September 30									September 30
INCOME SUMMARY	2006			2005			% Change			2006			2005			% Change
Interest income	$	229,101		$	164,070			39.6	%	$	634,959		$	453,489			40.0	%
Interest expense		(103,177	)		(57,585	)		79.2	%		(271,141	)		(148,833	)		82.2	%
Net interest income		125,924			106,485			18.3	%		363,818			304,656			19.4	%
Provision for loan losses		(555	)		(815	)		(31.9	%)		(2,430	)		(2,340	)		3.8	%
Investment securities gains		1,450			905			60.2	%		5,524			5,638			(2.0	%)
Other income		35,462			35,258			0.6	%		103,997			104,695			(0.7	%)
Other expenses		(92,425	)		(81,537	)		13.4	%		(271,234	)		(233,554	)		16.1	%
Income before income taxes		69,856			60,296			15.9	%		199,675			179,095			11.5	%
Income taxes		(21,514	)		(18,168	)		18.4	%		(60,753	)		(53,927	)		12.7	%
Net income	$	48,342		$	42,128			14.8	%	$	138,922		$	125,168			11.0	%
PER-SHARE DATA:
Net income:
Basic	$	0.28		$	0.26			7.7	%	$	0.80		$	0.76			5.3	%
Diluted		0.28			0.25			12.0	%		0.80			0.75			6.7	%
Cash Dividends		0.1475			0.138			6.9	%		0.433			0.402			7.7	%
Shareholders’ equity		8.63			7.76			11.3	%
Shareholders’ equity (tangible)		4.82			5.03			(4.3	%)
SELECTED FINANCIAL RATIOS:
Return on average assets		1.31	%		1.37	%					1.32	%		1.44	%
Return on average shareholders’ equity		13.26	%		13.06	%					13.04	%		13.45	%
Return on average shareholders’ equity (tangible)		25.14	%		20.60	%					24.34	%		20.44	%
Net interest margin		3.85	%		3.91	%					3.88	%		3.93	%
Efficiency ratio		55.04	%		55.46	%					55.72	%		55.14	%
Average equity to average assets		9.88	%		10.50	%					10.09	%		10.71	%

1

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

										% Change from
	September 30			September 30			June 30			September 30			June 30
	2006			2005			2006			2005			2006
ASSETS
Cash and due from banks	$	338,598		$	403,032		$	410,563			(16.0	%)		(17.5	%)
Loans held for sale		236,787			283,950			268,966			(16.6	%)		(12.0	%)
Other interest-earning assets		35,884			95,472			39,364			(62.4	%)		(8.8	%)
Investment securities		2,950,671			2,489,575			2,743,777			18.5	%		7.5	%
Loans, net of unearned		10,312,057			8,275,710			10,051,957			24.6	%		2.6	%
Allowance for loan losses		(107,422	)		(93,936	)		(106,544	)		14.4	%		0.8	%
Net Loans		10,204,635			8,181,774			9,945,413			24.7	%		2.6	%
Premises and equipment		188,403			166,991			185,677			12.8	%		1.5	%
Accrued interest receivable		70,901			47,353			63,589			49.7	%		11.5	%
Goodwill and intangible assets		661,594			448,573			663,951			47.5	%		(0.4	%)
Other assets		223,179			187,480			240,245			19.0	%		(7.1	%)
Total Assets	$	14,910,652		$	12,304,200		$	14,561,545			21.2	%		2.4	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	10,277,028		$	8,811,217		$	10,146,652			16.6	%		1.3	%
Short-term borrowings		1,833,644			1,165,293			1,765,723			57.4	%		3.8	%
Long-term debt		1,109,220			897,944			1,024,144			23.5	%		8.3	%
Other liabilities		193,067			151,418			184,838			27.5	%		4.5	%
Total Liabilities		13,412,959			11,025,872			13,121,357			21.6	%		2.2	%
Shareholders’ equity		1,497,693			1,278,328			1,440,188			17.2	%		4.0	%
Total Liabilities and Shareholders’ Equity	$	14,910,652		$	12,304,200		$	14,561,545			21.2	%		2.4	%
LOANS AND DEPOSITS DETAIL:
Loans, by type:
Commercial — industrial and financial	$	2,600,807		$	2,049,330		$	2,553,375			26.9	%		1.9	%
Commercial — agricultural		345,332			327,249			330,063			5.5	%		4.6	%
Real estate — commercial mortgage		3,174,623			2,734,432			3,063,863			16.1	%		3.6	%
Real estate — residential mortgage and home equity		2,143,367			1,774,317			2,090,017			20.8	%		2.6	%
Real estate — construction		1,431,535			793,697			1,408,144			80.4	%		1.7	%
Consumer		529,741			531,921			521,378			(0.4	%)		1.6	%
Leasing and other		86,652			64,764			85,117			33.8	%		1.8	%
Total Loans, net of unearned income	$	10,312,057		$	8,275,710		$	10,051,957			24.6	%		2.6	%
Deposits, by type:
Noninterest-bearing demand	$	1,886,514		$	1,678,923		$	1,910,565			12.4	%		(1.3	%)
Interest-bearing demand		1,658,545			1,624,208			1,649,681			2.1	%		0.5	%
Savings deposits		2,351,041			2,152,771			2,383,533			9.2	%		(1.4	%)
Time deposits		4,380,928			3,355,315			4,202,873			30.6	%		4.2	%
Total Deposits	$	10,277,028		$	8,811,217		$	10,146,652			16.6	%		1.3	%
SHORT-TERM BORROWINGS DETAIL:
Customer repurchase agreements	$	363,561		$	416,883		$	356,440			(12.8	%)		2.0	%
Federal funds purchased		1,183,447			736,376			1,236,941			60.7	%		(4.3	%)
Other		286,636			12,034			172,342			N/M			66.3	%
Total Short-term borrowings	$	1,833,644		$	1,165,293		$	1,765,723			57.4	%		3.8	%

N/M – Not Meaningful

2

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

	Quarter Ended									% Change from						Nine Months Ended
	September 30			September 30			June 30			September 30			June 30			September 30
	2006			2005			2006			2005			2006			2006			2005			% Change
Interest Income:
Interest Income	$	229,101		$	164,070		$	213,206			39.6	%		7.5	%	$	634,959		$	453,489			40.0	%
Interest Expense		103,177			57,585			90,355			79.2	%		14.2	%		271,141			148,833			82.2	%
Net Interest Income		125,924			106,485			122,851			18.3	%		2.5	%		363,818			304,656			19.4	%
Provision for Loan Losses		555			815			875			(31.9	%)		(36.6	%)		2,430			2,340			3.8	%
Net Interest Income after Provision		125,369			105,670			121,976			18.6	%		2.8	%		361,388			302,316			19.5	%
Other Income:
Investment management and trust services		8,887			8,730			9,056			1.8	%		(1.9	%)		27,975			26,715			4.7	%
Service charges on deposit accounts		11,345			10,488			10,892			8.2	%		4.2	%		32,484			29,780			9.1	%
Other service charges and fees		6,693			5,818			6,576			15.0	%		1.8	%		19,923			18,519			7.6	%
Gain on sale of mortgage loans		5,480			7,586			5,187			(27.8	%)		5.6	%		15,439			19,533			(21.0	%)
Investment securities gains		1,450			905			1,409			60.2	%		2.9	%		5,524			5,638			(2.0	%)
Other		3,057			2,636			2,882			16.0	%		6.1	%		8,176			10,148			(19.4	%)
Total Other Income		36,912			36,163			36,002			2.1	%		2.5	%		109,521			110,333			(0.7	%)
Other Expenses:
Salaries and employee benefits		55,048			46,761			53,390			17.7	%		3.1	%		158,367			136,294			16.2	%
Net occupancy expense		9,260			7,459			9,007			24.1	%		2.8	%		26,856			21,506			24.9	%
Equipment expense		3,703			3,203			3,495			15.6	%		6.0	%		10,791			9,161			17.8	%
Data processing		3,057			3,100			3,165			(1.4	%)		(3.4	%)		9,131			9,590			(4.8	%)
Advertising		2,934			1,995			3,027			47.1	%		(3.1	%)		8,214			6,244			31.6	%
Intangible amortization		2,025			1,510			2,006			34.1	%		0.9	%		5,883			3,857			52.5	%
Other		16,398			17,509			16,703			(6.3	%)		(1.8	%)		51,992			46,902			10.9	%
Total Other Expenses		92,425			81,537			90,793			13.4	%		1.8	%		271,234			233,554			16.1	%
Income Before Income Taxes		69,856			60,296			67,185			15.9	%		4.0	%		199,675			179,095			11.5	%
Income Taxes		21,514			18,168			20,484			18.4	%		5.0	%		60,753			53,927			12.7	%
Net Income	$	48,342		$	42,128		$	46,701			14.8	%		3.5	%	$	138,922		$	125,168			11.0	%
SHARE AND PER-SHARE INFORMATION:
Net income:
Basic	$	0.28		$	0.26		$	0.27			7.7	%		3.7	%	$	0.80		$	0.76			5.3	%
Diluted		0.28			0.25			0.27			12.0	%		3.7	%		0.80			0.75			6.7	%
Cash dividends	$	0.1475		$	0.138		$	0.1475			6.9	%		—		$	0.433		$	0.402			7.7	%
Book value		8.63			7.76			8.31			11.3	%		3.9	%
Tangible book value		4.82			5.03			4.48			(4.3	%)		7.6	%
Weighted average shares (basic)		173,439			164,656			173,449			5.3	%		—			172,595			164,034			5.2	%
Weighted average shares (diluted)		175,390			166,611			175,484			5.3	%		(0.1	%)		174,689			166,049			5.2	%
Shares outstanding, end of period		173,493			164,801			173,279			5.3	%		0.1	%
SELECTED FINANCIAL RATIOS:
Return on average assets		1.31	%		1.37	%		1.32	%								1.32	%		1.44	%
Return on average equity		13.26	%		13.06	%		13.01	%								13.04	%		13.45	%
Return on average equity (tangible)		25.14	%		20.60	%		24.87	%								24.34	%		20.44	%
Net interest margin		3.85	%		3.91	%		3.90	%								3.88	%		3.93	%
Efficiency ratio		55.04	%		55.46	%		55.37	%								55.72	%		55.14	%

3

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

	Quarter Ended
	September 30, 2006									September 30, 2005									June 30, 2006
	Balance			Interest (1)			Rate (1)			Balance			Interest (1)			Rate (1)			Balance			Interest (1)			Rate (1)
ASSETS
Interest-earning assets:
Loans and leases	$	10,167,362		$	194,379			7.59	%	$	8,186,974		$	136,143			6.60	%	$	9,846,025		$	181,019			7.37	%
Taxable investment securities		2,309,644			25,323			4.39	%		2,016,879			18,863			3.74	%		2,242,945			23,564			4.20	%
Tax-exempt investment securities		449,181			5,496			4.89	%		387,233			4,761			4.92	%		430,246			5,200			4.83	%
Equity securities		155,894			1,834			4.69	%		139,097			1,369			3.92	%		152,210			1,740			4.58	%
Total Investment Securities		2,914,719			32,653			4.48	%		2,543,209			24,993			3.93	%		2,825,401			30,504			4.32	%
Loans held for sale		227,038			4,224			7.44	%		314,145			4,955			6.31	%		222,103			4,005			7.21	%
Other interest-earning assets		54,424			695			5.03	%		62,406			542			3.43	%		50,422			593			4.69	%
Total Interest-earning Assets		13,363,543			231,951			6.90	%		11,106,734			166,633			5.97	%		12,943,951			216,121			6.70	%
Noninterest-earning assets:
Cash and due from banks		329,482									370,531									335,009
Premises and equipment		187,876									164,447									183,587
Other assets		859,800									637,682									862,739
Less: allowance for loan losses		(107,090	)								(94,527	)								(106,727	)
Total Assets	$	14,633,611								$	12,184,867								$	14,218,559
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,689,386		$	6,529			1.53	%	$	1,586,338		$	4,169			1.04	%	$	1,672,116		$	6,008			1.44	%
Savings deposits		2,385,811			14,257			2.37	%		2,162,030			7,640			1.40	%		2,386,287			12,363			2.08	%
Time deposits		4,294,731			46,255			4.27	%		3,301,661			26,671			3.20	%		4,082,429			40,625			3.99	%
Total Interest-bearing Deposits		8,369,928			67,041			3.18	%		7,050,029			38,480			2.17	%		8,140,832			58,996			2.91	%
Short-term borrowings		1,730,970			21,697			4.92	%		1,115,122			8,655			3.05	%		1,602,894			18,427			4.56	%
Long-term debt		1,093,815			14,439			5.24	%		955,096			10,450			4.34	%		1,010,744			12,932			5.13	%
Total Interest-bearing Deposits		11,194,713			103,177			3.65	%		9,120,247			57,585			2.50	%		10,754,470			90,355			3.36	%
Noninterest-bearing liabilities:
Demand deposits		1,811,264									1,651,787									1,850,991
Other		181,322									133,704									173,213
Total Liabilities		13,187,299									10,905,738									12,778,674
Shareholders’ equity		1,446,312									1,279,129									1,439,885
Total Liabilities and Shareholders’ Equity	$	14,633,611								$	12,184,867								$	14,218,559
Net interest income/net interest margin (fully taxable equivalent)					128,774			3.85	%					109,048			3.91	%					125,766			3.90	%
Tax equivalent adjustment					(2,850	)								(2,563	)								(2,915	)
Net interest income				$	125,924								$	106,485								$	122,851

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

AVERAGE LOANS AND DEPOSITS DETAIL:

	Quarter Ended						% Change from
	September 30		September 30		June 30		September 30			June 30
	2006		2005		2006		2005			2006
Loans, by type:
Commercial — industrial and financial	$	2,587,869	$	2,046,919	$	2,466,241		26.4	%		4.9	%
Commercial — agricultural		337,660		323,216		325,409		4.5	%		3.8	%
Real estate — commercial mortgage		3,113,086		2,725,748		3,039,417		14.2	%		2.4	%
Real estate — residential mortgage and home equity		2,108,792		1,751,744		2,044,876		20.4	%		3.1	%
Real estate — construction		1,412,678		756,102		1,373,038		86.8	%		2.9	%
Consumer		527,915		515,327		520,791		2.4	%		1.4	%
Leasing and other		79,362		67,918		76,253		16.8	%		4.1	%
Total Loans, net of unearned income	$	10,167,362	$	8,186,974	$	9,846,025		24.2	%		3.3	%
Deposits, by type:
Noninterest-bearing demand	$	1,811,264	$	1,651,789	$	1,850,991		9.7	%		(2.1	%)
Interest-bearing demand		1,689,386		1,586,338		1,672,117		6.5	%		1.0	%
Savings deposits		2,385,811		2,162,030		2,386,287		10.4	%		—
Time deposits		4,294,731		3,301,658		4,082,428		30.1	%		5.2	%
Total Deposits	$	10,181,192	$	8,701,815	$	9,991,823		17.0	%		1.9	%
SHORT-TERM BORROWINGS DETAIL:
Customer repurchase agreements	$	334,759	$	387,936	$	357,385		(13.7	%)		(6.3	%)
Federal funds purchased		1,143,445		652,743		1,072,560		75.2	%		6.6	%
Other		252,766		74,443		172,949		239.5	%		46.2	%
Total Short-term borrowings	$	1,730,970	$	1,115,122	$	1,602,894		55.2	%		8.0	%

4

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

	Nine Months Ended September 30
	2006									2005
	Balance			Interest (1)			Rate (1)			Balance			Interest (1)			Rate (1)
ASSETS
Interest-earning assets:
Loans and leases	$	9,750,452		$	537,281			7.37	%	$	7,847,559		$	376,095			6.41	%
Taxable investment securities		2,246,672			71,426			4.24	%		1,989,612			55,301			3.71	%
Tax-exempt investment securities		438,510			15,881			4.83	%		354,734			13,243			4.98	%
Equity securities		151,078			5,132			4.53	%		131,692			4,060			4.12	%
Total Investment Securities		2,836,260			92,439			4.35	%		2,476,038			72,604			3.91	%
Loans held for sale		216,295			11,688			7.21	%		243,391			10,973			6.01	%
Other interest-earning assets		56,045			1,950			4.63	%		46,432			1,066			3.05	%
Total Interest-earning Assets		12,859,052			643,358			6.69	%		10,613,420			460,738			5.80	%
Noninterest-earning assets:
Cash and due from banks		340,885									345,480
Premises and equipment		183,112									155,253
Other assets		836,754									587,533
Less: allowance for loan losses		(105,291	)								(92,089	)
Total Assets	$	14,114,512								$	11,609,597
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,676,087		$	18,112			1.44	%	$	1,522,366		$	10,448			0.92	%
Savings deposits		2,348,710			37,181			2.12	%		2,021,169			17,964			1.19	%
Time deposits		4,042,569			120,934			4.00	%		3,105,403			68,980			2.97	%
Total Interest-bearing Deposits		8,067,366			176,227			2.92	%		6,648,938			97,392			1.96	%
Short-term borrowings		1,607,946			55,430			4.56	%		1,178,061			23,393			2.63	%
Long-term debt		1,033,706			39,484			5.11	%		828,427			28,048			4.53	%
Total Interest-bearing Liabilities		10,709,018			271,141			3.38	%		8,655,426			148,833			2.30	%
Noninterest-bearing liabilities:
Demand deposits		1,809,545									1,576,695
Other		171,391									133,628
Total Liabilities		12,689,954									10,365,749
Shareholders’ equity		1,424,558									1,243,848
Total Liabilities and Shareholders’ Equity	$	14,114,512								$	11,609,597
Net interest income/net interest margin (fully taxable equivalent)					372,217			3.88	%					311,905			3.93	%
Tax equivalent adjustment					(8,399	)								(7,249	)
Net interest income				$	363,818								$	304,656

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

AVERAGE LOANS AND DEPOSITS DETAIL:

	Nine Months Ended
	September 30
	2006		2005		% Change
Loans, by type:
Commercial — industrial and financial	$	2,445,367	$	2,007,730		21.8	%
Commercial — agricultural		330,368		323,244		2.2	%
Real estate — commercial mortgage		3,033,010		2,568,766		18.1	%
Real estate — residential mortgage and home equity		2,026,406		1,693,731		19.6	%
Real estate — construction		1,317,274		695,729		89.3	%
Consumer		522,396		493,681		5.8	%
Leasing and other		75,631		64,678		16.9	%
Total Loans, net of unearned income	$	9,750,452	$	7,847,559		24.2	%
Deposits, by type:
Noninterest-bearing demand	$	1,809,545	$	1,576,695		14.8	%
Interest-bearing demand		1,676,087		1,522,366		10.1	%
Savings deposits		2,348,710		2,021,169		16.2	%
Time deposits		4,042,569		3,105,403		30.2	%
Total Deposits	$	9,876,911	$	8,225,633		20.1	%
SHORT-TERM BORROWINGS DETAIL:
Customer repurchase agreements	$	358,079	$	388,517		(7.8	%)
Federal funds purchased		1,084,901		706,132		53.6	%
Other		164,966		83,412		97.8	%
Total Short-term borrowings	$	1,607,946	$	1,178,061		36.5	%

5

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

	Quarter Ended									Nine Months Ended
	September 30			September 30			June 30			September 30
	2006			2005			2006			2006			2005
ALLOWANCE FOR LOAN LOSSES:
Balance at beginning of period	$	106,544		$	90,402		$	106,195		$	92,847		$	89,627
Loans charged off		(1,068	)		(1,625	)		(1,679	)		(4,247	)		(5,104	)
Recoveries of loans previously charged off		1,391			1,236			1,153			3,401			3,965
Net loans recovered (charged-off)		323			(389	)		(526	)		(846	)		(1,139	)
Provision for loan losses		555			815			875			2,430			2,340
Allowance purchased		—			3,108			—			12,991			3,108
Balance at end of period	$	107,422		$	93,936		$	106,544		$	107,422		$	93,936
Net (recoveries) charge-offs to average loans (annualized)		(0.01	%)		0.02	%		0.02	%		0.01	%		0.02	%
NON-PERFORMING ASSETS:
Non-accrual loans	$	26,591		$	30,669		$	26,299
Accruing loans 90+ days overdue		16,704			13,350			13,421
Other real estate owned		3,489			4,042			3,125
Total non-performing assets	$	46,784		$	48,061		$	42,845
ASSET QUALITY RATIOS:
Non-accrual loans to total loans		0.26	%		0.37	%		0.26	%
Non-performing assets to total loans and OREO		0.45	%		0.58	%		0.43	%
Non-performing assets to total assets		0.31	%		0.39	%		0.29	%
Allowance for loan losses to loans outstanding		1.04	%		1.14	%		1.06	%
Allowance/nonperforming loans		248	%		213	%		268	%

6