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: July 17, 2007

(Date of earliest event reported): July 17, 2007

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 July 17, 2007 Fulton Financial Corporation announced its results of operations for the second quarter ended June 30, 2007. 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 July 17, 2007.
99.2	Supplemental financial information for the quarter ended June 30, 2007.

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: July 17, 2007	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	Media Contact :	Laura J. Wakeley
		717-291-2739

Fulton Financial reports second quarter earnings

     (July 17) — Lancaster, PA — 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

- MORE -

Page 2 . . . Fulton Financial reports second quarter earnings

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

Page 3 . . . Fulton Financial reports second quarter earnings

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.

# # #

2007

EX-99.2

Exhibit 99.2

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

	June 30
	2007		2006		% Change
BALANCE SHEET DATA
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	%

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

1

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

										% Change from
	June 30			June 30			March 31			June 30			March 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	%

2

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

	Quarter Ended									% Change from						Six Months Ended
	June 30			June 30			March 31			June 30			March 31			June 30
	2007			2006			2007			2006			2007			2007			2006			% Change
Interest Income:
Interest Income	$	230,112		$	213,206		$	230,656			7.9	%		(0.2	%)	$	460,768		$	405,858			13.5	%
Interest Expense		109,204			90,355			108,881			20.9	%		0.3	%		218,085			167,964			29.8	%
Net Interest Income		120,908			122,851			121,775			(1.6	%)		(0.7	%)		242,683			237,894			2.0	%
Provision for Loan Losses		2,700			875			957			208.6	%		182.1	%		3,657			1,875			95.0	%
Net Interest Income after Provision		118,208			121,976			120,818			(3.1	%)		(2.2	%)		239,026			236,019			1.3	%
Other Income:
Investment management and trust services		10,273			9,056			9,810			13.4	%		4.7	%		20,083			19,088			5.2	%
Service charges on deposit accounts		11,225			10,892			10,627			3.1	%		5.6	%		21,852			21,139			3.4	%
Other service charges and fees		7,841			6,576			7,375			19.2	%		6.3	%		15,216			13,230			15.0	%
Gains on sale of mortgage loans		4,188			5,187			5,393			(19.3	%)		(22.3	%)		9,581			9,959			(3.8	%)
Investment securities gains		629			1,409			1,782			(55.4	%)		(64.7	%)		2,411			4,074			(40.8	%)
Other		2,849			2,882			4,078			(1.1	%)		(30.1	%)		6,927			5,119			35.3	%
Total Other Income		37,005			36,002			39,065			2.8	%		(5.3	%)		76,070			72,609			4.8	%
Other Expenses:
Salaries and employee benefits		55,555			53,390			56,293			4.1	%		(1.3	%)		111,848			103,319			8.3	%
Net occupancy expense		9,954			9,007			10,196			10.5	%		(2.4	%)		20,150			17,596			14.5	%
Equipment expense		3,436			3,495			3,715			(1.7	%)		(7.5	%)		7,151			7,088			0.9	%
Data processing		3,217			3,165			3,202			1.6	%		0.5	%		6,419			6,074			5.7	%
Advertising		2,990			3,027			2,409			(1.2	%)		24.1	%		5,399			5,280			2.3	%
Intangible amortization		2,198			2,006			1,983			9.6	%		10.8	%		4,181			3,858			8.4	%
Other		20,757			16,703			23,107			24.3	%		(10.2	%)		43,864			35,594			23.2	%
Total Other Expenses		98,107			90,793			100,905			8.1	%		(2.8	%)		199,012			178,809			11.3	%
Income Before Income Taxes		57,106			67,185			58,978			(15.0	%)		(3.2	%)		116,084			129,819			(10.6	%)
Income Taxes		17,261			20,484			17,850			(15.7	%)		(3.3	%)		35,111			39,239			(10.5	%)
Net Income	$	39,845		$	46,701		$	41,128			(14.7	%)		(3.1	%)	$	80,973		$	90,580			(10.6	%)
SHARE AND PER-SHARE INFORMATION:
Net income:
Basic	$	0.23		$	0.27		$	0.24			(14.8	%)		(4.2	%)	$	0.47		$	0.53			(11.3	%)
Diluted		0.23			0.27			0.24			(14.8	%)		(4.2	%)		0.46			0.52			(11.5	%)
Cash dividends	$	0.1500		$	0.1475		$	0.1475			1.7	%		1.7	%	$	0.298		$	0.286			4.2	%
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	%)		173,228			172,166			0.6	%
Weighted average shares (diluted)		174,417			175,484			174,878			(0.6	%)		(0.3	%)		174,595			174,335			0.1	%
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	%								1.10	%		1.32	%
Return on average shareholders’ equity		10.52	%		13.01	%		11.06	%								10.79	%		12.92	%
Return on average shareholders’ equity (tangible)		19.30	%		24.87	%		20.34	%								19.81	%		23.93	%
Net interest margin		3.70	%		3.90	%		3.74	%								3.72	%		3.89	%
Efficiency ratio		59.72	%		55.37	%		60.98	%								60.35	%		56.08	%

3

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

	Quarter Ended
	June 30, 2007									June 30, 2006									March 31, 2007
	Balance			Interest (1)			Rate (1)			Balance			Interest (1)			Rate (1)			Balance			Interest (1)			Rate (1)
ASSETS
Interest-earning assets:
Loans and leases	$	10,582,300		$	199,085			7.54	%	$	9,846,025		$	181,019			7.37	%	$	10,414,698		$	196,558			7.65	%
Taxable investment securities		1,973,214			21,999			4.46	%		2,242,945			23,564			4.20	%		2,190,230			24,619			4.50	%
Tax-exempt investment securities		500,341			6,405			5.12	%		430,246			5,200			4.83	%		492,709			6,228			5.06	%
Equity securities		188,558			2,230			4.74	%		152,210			1,740			4.58	%		178,488			2,129			4.79	%
Total Investment Securities		2,662,113			30,634			4.60	%		2,825,401			30,504			4.32	%		2,861,427			32,976			4.61	%
Loans held for sale		197,852			3,393			6.86	%		222,103			4,006			7.21	%		207,856			3,684			7.09	%
Other interest-earning assets		25,311			311			4.90	%		50,422			592			4.69	%		48,328			596			4.97	%
Total Interest-earning Assets		13,467,576			233,423			6.95	%		12,943,951			216,121			6.70	%		13,532,309			233,814			6.99	%
Noninterest-earning assets:
Cash and due from banks		340,752									335,009									315,969
Premises and equipment		189,975									183,587									192,002
Other assets		899,160									862,739									899,843
Less: allowance for loan losses		(108,952	)								(106,727	)								(107,683	)
Total Assets	$	14,788,511								$	14,218,559								$	14,832,440
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,676,528		$	7,198			1.72	%	$	1,672,116		$	6,008			1.44	%	$	1,657,714		$	6,904			1.69	%
Savings deposits		2,298,910			13,776			2.40	%		2,378,005			12,363			2.08	%		2,295,822			13,811			2.44	%
Time deposits		4,526,107			52,825			4.68	%		4,082,429			40,625			3.99	%		4,457,363			50,493			4.59	%
Total Interest-bearing Deposits		8,501,545			73,799			3.48	%		8,132,550			58,996			2.91	%		8,410,899			71,208			3.43	%
Short-term borrowings		1,243,370			14,894			4.77	%		1,602,894			18,427			4.56	%		1,552,495			19,054			4.93	%
Long-term debt		1,585,125			20,511			5.19	%		1,010,744			12,932			5.13	%		1,450,016			18,619			5.14	%
Total Interest-bearing Liabilities		11,330,040			109,204			3.86	%		10,746,188			90,355			3.36	%		11,413,410			108,881			3.85	%
Noninterest-bearing liabilities:
Demand deposits		1,756,271									1,859,273									1,721,135
Other		183,449									173,213									189,297
Total Liabilities		13,269,760									12,778,674									13,323,842
Shareholders’ equity		1,518,751									1,439,885									1,508,598
Total Liabilities and Shareholders’ Equity	$	14,788,511								$	14,218,559								$	14,832,440
Net interest income/net interest margin (fully taxable equivalent)					124,219			3.70	%					125,766			3.90	%					124,933			3.74	%
Tax equivalent adjustment					(3,311	)								(2,915	)								(3,158	)
Net interest income				$	120,908								$	122,851								$	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
	June 30		June 30		March 31		June 30			March 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	%)

4

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

	Six Months Ended June 30
				2007										2006
	Balance				Interest (1)			Rate (1)			Balance				Interest (1)			Rate (1)
ASSETS
Interest-earning assets:
Loans and leases	$	10,498,962			$	395,643			7.59	%	$	9,538,542			$	342,902			7.24	%
Taxable investment securities		2,081,123				46,618			4.48	%		2,214,666				46,103			4.16	%
Tax-exempt investment securities		496,546				12,633			5.09	%		433,087				10,385			4.80	%
Equity securities		183,550				4,359			4.76	%		148,630				3,299			4.45	%
Total Investment Securities		2,761,219				63,610			4.61	%		2,796,383				59,787			4.28	%
Loans held for sale		202,826				7,077			6.98	%		210,834				7,464			7.08	%
Other interest-earning assets		36,756				907			4.94	%		56,870				1,255			4.43	%
Total Interest-earning Assets		13,499,763				467,237			6.97	%		12,602,629				411,408			6.57	%
Noninterest-earning assets:
Cash and due from banks		328,429										346,681
Premises and equipment		190,984										180,690
Other assets		899,499										825,037
Less: allowance for loan losses		(108,321	)									(104,376	)
Total Assets	$	14,810,354									$	13,850,661
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,667,173			$	14,103			1.71	%	$	1,669,327			$	11,583			1.40	%
Savings deposits		2,297,374				27,586			2.42	%		2,325,678				22,923			1.99	%
Time deposits		4,491,926				103,318			4.64	%		3,914,400				74,680			3.85	%
Total Interest-bearing Deposits		8,456,473				145,007			3.46	%		7,909,405				109,186			2.78	%
Short-term borrowings		1,397,080				33,948			4.86	%		1,545,414				33,733			4.36	%
Long-term debt		1,517,944				39,130			5.19	%		1,003,152				25,045			5.03	%
Total Interest-bearing Liabilities		11,371,497				218,085			3.86	%		10,457,971				167,964			3.23	%
Noninterest-bearing liabilities:
Demand deposits		1,738,799										1,812,843
Other		186,355										166,346
Total Liabilities		13,296,651										12,437,160
Shareholders’ equity		1,513,703										1,413,501
Total Liabilities and Shareholders’ Equity	$	14,810,354									$	13,850,661
Net interest income/net interest margin (fully taxable equivalent)						249,152			3.72	%						243,444			3.89	%
Tax equivalent adjustment						(6,469	)									(5,550	)
Net interest income					$	242,683									$	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	%)

5

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

	Quarter Ended									Six Months Ended
	June 30			June 30			March 31			June 30
	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-performing loans		157	%		268	%		210	%

6